##### 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, 2004


or




|    |                                                                        
|--- | -----------------------------------------------------------------------
|[ ] | TRANSITION 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




x o


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                                                       |     |      | 21  | 
|Item 5.                                                                            |  | Operating and Financial Review and
    Prospects                                 |     |      | 46  | 
|Item 6.                                                                            |  | Directors, Senior Management and
    Employees                                   |     |      | 82  | 
|Item 7.                                                                            |  | Major Shareholders and Related Party
    Transactions                            |     |      | 92  | 
|Item 8.                                                                            |  | Financial Information                                                            |     |      | 95  | 
|Item 9.                                                                            |  | The Offer and Listing                                                            |     |      | 95  | 
|Item 10.                                                                           |  | Additional Information                                                           |     |      | 96  | 
|Item 11.                                                                           |  | Quantitative and Qualitative Disclosures
    About Market Risk                   |     |      | 107 | 
|Item 12.                                                                           |  | Description of Securities Other than Equity
    Securities                       |     |      | 109 | 
|PART II                                                                           
|Item 13.                                                                           |  | Defaults, Dividend Arrearages and
    Delinquencies                              |     |      | 109 | 
|Item 14.                                                                           |  | Material Modifications to the Rights of
    Security Holders and Use of Proceeds |     |      | 109 | 
|Item 15.                                                                           |  | Controls and Procedures                                                          |     |      | 110 | 
|Item 16A.                                                                          |  | Audit Committee Financial Expert                                                 |     |      | 110 | 
|Item 16B.                                                                          |  | Code of Ethics                                                                   |     |      | 110 | 
|Item 16C.                                                                          |  | Principal Accountant Fees and Services                                           |     |      | 110 | 
|Item 16D.                                                                          |  | Exemptions from the Listing Standards for
    Audit Committees                   |     |      | 111 | 
|Item 16E.                                                                          |  | Purchase of Equity Securities by the Issuer
    and Affiliated Purchasers        |     |      | 111 | 
|PART III                                                                          
|Item 17.                                                                           |  | Financial Statements                                                             |     |      | 111 | 
|Item 18.                                                                           |  | Financial Statements                                                             |     |      | 112 | 
|Item 19.                                                                           |  | Exhibits                                                                         |     |      | 112 | 
|Index to Consolidated Financial
    Statements                                     |  |                                                                                  | F-1 |     
|Amendment to Outside Directors' Compensation Plan                                 
|Long-Term Incentive Programunder the Equity Incentive Plan                        
|Top Hat Plan                                                                      
|Deferred Compensation Plan                                                        
|List of Subsidiaries                                                              
|Fourth Amendment to the Amended and Restated Transfer and Administration Agreement
|Fifth Amendment to the Amended and Restated Transfer and Administration Agreement 
|Section 302 Certification                                                         
|Section 302 Certification                                                         
|Certification                                                                     
|Consent of Deloitte and Touche L.L.P.                                             
|Preferability Letter                                                              



2



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##### Table of Contents



PRESENTATION OF FINANCIAL AND CERTAIN OTHER INFORMATION
















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,     |       
|                                                                                             |                                                                                                            |                                      |       
|                                                                                             |                                                                                                            | 2004                                 |        |      | 2003   |   |        | 2002  |        |   | 2001  |       |       | 2000 |      
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |       |        |   |       |       |       |      |      
|                                                                                             |                                                                                                            | (in millions, except per share data) |       
|Consolidated Statements of Operations Data:                                                  |                                                                                                            |                                      |        |      |        |   |        |       |        |   |       |       |       |      |       |       |       |   |       |      
|Revenues:                                                                                    |                                                                                                            |                                      |        |      |        |   |        |       |        |   |       |       |       |      |       |       |       |   |       |      
|Net sales                                                                                    |                                                                                                            | $                                    | 11,545 |      |        | $ | 10,069 |       |        | $ | 9,331 |       |       | $    | 9,030 |       |       | $ | 9,337 |      
|Finance and interest income                                                                  |                                                                                                            |                                      | 634    |      |        |   | 597    |       |        |   | 609   |       |       |      | 685   |       |       |   | 704   |      
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |       |        |   |       |       |       |      |      
|                                                                                             |                                                                                                            | Total revenues                       |        | $    | 12,179 |   |        | $     | 10,666 |   |       | $     | 9,940 |      |       | $     | 9,715 |   |       | $     | 10,041 | 
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |       |        |   |       |       |       |      |      
|Net income (loss) before cumulative effect of change in
    accounting principle, net of tax |                                                                                                            | $                                    | 125    |      |        | $ | (157   | )     |        | $ | (101  | )     |       | $    | (332  | )     |       | $ | (381  | )    
|Cumulative effect of change in accounting principle, net of tax                              |                                                                                                            |                                      |       |      |        |   |       |       |        |   | (325  | )     |       |      |      |       |       |   |      |      
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |       |        |   |       |       |       |      |      
|Net income (loss)                                                                            |                                                                                                            | $                                    | 125    |      |        | $ | (157   | )     |        | $ | (426  | )     |       | $    | (332  | )     |       | $ | (381  | )    
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |       |        |   |       |       |       |      |      
|Per share data:                                                                              |                                                                                                            |                                      |        |      |        |   |        |       |        |   |       |       |       |      |       |       |       |   |       |      
|                                                                                             | Basic earnings (loss) per share before cumulative effect of
    change in accounting principle, net of tax |                                      | $      | 0.94 |        |   | $      | (1.19 | )      |   | $     | (1.05 | )     |      | $     | (6.00 | )     |   | $     | (8.95 | )     
|                                                                                             | Cumulative effect of change in accounting principle, net of tax                                            |                                      |        |     |        |   |        |      |        |   |       | (3.35 | )     |      |       |      |       |   |       |      |       
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |       |        |   |       |       |       |      |      
|                                                                                             | Basic earnings (loss) per share                                                                            |                                      | $      | 0.94 |        |   | $      | (1.19 | )      |   | $     | (4.40 | )     |      | $     | (6.00 | )     |   | $     | (8.95 | )     
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |       |        |   |       |       |       |      |      
|                                                                                             | Diluted earnings (loss) per share before cumulative effect
    of change in accounting principle           |                                      | $      | 0.54 |        |   | $      | (1.19 | )      |   | $     | (1.05 | )     |      | $     | (6.00 | )     |   | $     | (8.95 | )     
|                                                                                             | Cumulative effect of change in accounting principle, net of tax                                            |                                      |        |     |        |   |        |      |        |   |       | (3.35 | )     |      |       |      |       |   |       |      |       
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |       |        |   |       |       |       |      |      
|                                                                                             | Diluted earnings (loss) per share                                                                          |                                      | $      | 0.54 |        |   | $      | (1.19 | )      |   | $     | (4.40 | )     |      | $     | (6.00 | )     |   | $     | (8.95 | )     
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |       |        |   |       |       |       |      |      
|Cash dividends declared per common share                                                     |                                                                                                            | $                                    | 0.25   |      |        | $ | 0.25   |       |        | $ | 0.50  |       |       | $    | 0.50  |       |       | $ | 2.75  |      
|                                                                                             |                                                                                                            |                                      |        |      |        |   |        |       |        |   |       |       |       |      |      

5



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|                                             |  |                    |        |  |      |   |        |      |  |   |        |  |  |      |        |  |  |   |        | 
|-------------------------------------------- |  | ------------------ | ------ |  | ---- | - | ------ | ---- |  | - | ------ |  |  | ---- | ------ |  |  | - | ------ | 
|                                             |  | As of December 31, |       
|                                             |  |                    |       
|                                             |  | 2004               |        |  | 2003 |   |        | 2002 |  |   | 2001   |  |  | 2000 |       
|                                             |  |                    |        |  |      |   |        |      |  |   |        |  |  |      |       
|                                             |  | (in millions)      |       
|Consolidated Balance Sheet Data:             |  |                    |        |  |      |   |        |      |  |   |        |  |  |      |        |  |  |   |        | 
|Total assets                                 |  | $                  | 18,080 |  |      | $ | 17,727 |      |  | $ | 16,760 |  |  | $    | 17,212 |  |  | $ | 17,577 | 
|                                             |  |                    |        |  |      |   |        |      |  |   |        |  |  |      |       
|Short-term debt                              |  | $                  | 2,057  |  |      | $ | 2,110  |      |  | $ | 2,749  |  |  | $    | 3,217  |  |  | $ | 4,186  | 
|                                             |  |                    |        |  |      |   |        |      |  |   |        |  |  |      |       
|Long-term debt, including current maturities |  | $                  | 4,906  |  |      | $ | 4,886  |      |  | $ | 5,115  |  |  | $    | 6,646  |  |  | $ | 5,539  | 
|                                             |  |                    |        |  |      |   |        |      |  |   |        |  |  |      |       
|Common shares,
    2.25 par value           |  | $                  | 312    |  |      | $ | 309    |      |  | $ | 305    |  |  | $    | 143    |  |  | $ | 143    | 
|                                             |  |                    |        |  |      |   |        |      |  |   |        |  |  |      |       
|Common shares outstanding                    |  |                    | 134    |  |      |   | 133    |      |  |   | 131    |  |  |      | 55     |  |  |   | 55     | 
|                                             |  |                    |        |  |      |   |        |      |  |   |        |  |  |      |       
|Shareholders equity                         |  | $                  | 5,029  |  |      | $ | 4,874  |      |  | $ | 2,761  |  |  | $    | 1,909  |  |  | $ | 2,514  | 
|                                             |  |                    |        |  |      |   |        |      |  |   |        |  |  |      |       



| |                                    
| | -----------------------------------
| | 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.







| |   |                                                                                         
| | - | ----------------------------------------------------------------------------------------
| |  | Strengthening our support for our customers and dealers;                                
|
| |  | Ongoing improvements in product features, quality and
    reliability;                  
|
| |  | Continuing efforts to develop new products;                                             
|
| |  | Continuing efforts to reduce the costs of developing and
    manufacturing our products;
|
| |  | Reducing the amount of capital employed in the business; and                            
|
| |  | Continuing to develop our Financial Services activities.                               





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.







| |                                                                                                                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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.













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



8



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| |                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------
| | 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.







| |                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Compliance with changing regulation of corporate
    governance and public disclosure may result in additional
    expense and make it more difficult to recruit directors and
    officers.



9



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##### Table of Contents







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.                                                        

10



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





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









12



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













13



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







| |                                                                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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 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 instruments 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;                    
|
| |  | restrict 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.                   

1 4




| |   |                                                                                     
| | - | ------------------------------------------------------------------------------------
| |  | sales and leaseback of assets above certain levels of tangible
    assets;          
|
| |  | the creation of certain liens; and                                                  
|
| |  | consolidations, mergers and transfers of all or substantially
    all of our assets.





| |                                                                                                          
| | ---------------------------------------------------------------------------------------------------------
| | 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.







18



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| |                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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.





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.  



19



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| |                                                                                                 
| | ------------------------------------------------------------------------------------------------
| | 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.









20



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| |                                                                                                                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | In the event that Fiat is unable to continue to finance
    our operations or provide us with financial products and
    services, our costs could increase, which would adversely affect
    our financial position and results of operations.






Item 4. Information on the Company




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





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

General








21



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Industry Overview




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







22



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


23



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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.



24



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25



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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.









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



26



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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.



28



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Our Competitive Strengths




Well-Recognized Brands.


Full Range of Competitive Products.


Global Presence and Distribution Network.


Strong Financial Services Capabilities.


Support of the Fiat Group.


29



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##### Table of Contents





CNH Business Strategy








| |   |                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | generate cash through improved earnings, reduced working capital
    and improved asset utilization, and use that cash to reduce our
    debt and strengthen our consolidated balance sheet;                                                                                                                                                                                                       
|
| |  | deliver profitability throughout the cycle and achieve higher
    margins than either Case or New Holland earned prior to the
    merger by strengthening our dealer and customer support and
    achieving best-in-class product quality and reliability,
    realizing product cost reductions and profit improvements,
    continuing sales growth and increasing customer
    satisfaction; and
|
| |  | continue to position CNH to take advantage of future
    opportunities for product and market expansion, both in the
    short to medium-term in areas such as Latin America and Eastern
    Europe and, in the longer-term, in areas such as China and India
    and through our global construction equipment alliance with
    Kobelco Japan.                                                   



| |                                            
| | -------------------------------------------
| | Merger Integration over the Last Five Years





Establishment of Dual Brand Families:


30



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##### Table of Contents



Development of Common Components/ Platforms for New
Products:


Restructured our Manufacturing Process and Reduced
Manufacturing Capacity:


Consolidated our Parts Distribution Network:


Integrated Systems and Processes to Create a Lean
Structure:


Refocused Financial Services Operations and Restored
Profitability:


31



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| |                
| | ---------------
| | Looking Forward







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Strengthen our customer and dealer support: The overall
    quality and reliability of any local dealership is a very
    important consideration in our end customers decision to
    purchase one brand of equipment compared with any other brand.
    We believe that, in our competitive marketplace, our dealer
    networks worldwide are one of the most important facets of our
    business. We are allocating new resources to provide additional
    dedicated sales and marketing personnel and materials, and
    additional technical support and training to our dealers. We
    believe these additional resources will allow our dealers to
    provide enhanced levels of service to our customers. 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. Our depot and parts system rationalization, with the
    concurrent investment in a new global parts system, which began
    in 2003, should also lead to improved parts availability and
    customer satisfaction.                                                                                                                          
|
| |  | Ongoing product improvements: As discussed above, during
    the past five years we have sustained a significant product
    development effort leading to a completely renewed product
    lineup across all of our brands. We are now shifting our product
    development, management and manufacturing efforts to focus on
    improving product quality through key quality improvement
    activities embedded in our process, with the goal of achieving
    best-in-class product quality and reliability. In addition, we
    intend to introduce greater differentiation between the two
    brands to increase their market attractiveness. These actions
    are expected to take place while targeting research and
    development (R&D) costs at 3% of net sales
    through the continued use of common platforms; this also
    includes our continuing engine development efforts through our
    joint ventures as we introduce new engines to meet new emissions
    requirements. Improved product quality and reliability should
    lead to reduced future warranty and repair costs, and allow us
    to more fully capitalize on our market leadership positions to
    command better pricing for our products.

32



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Continuing efforts to reduce costs: Throughout the
    manufacturing capacity rationalization process our primary focus
    was on improving capacity utilization through the closing of
    manufacturing facilities, while shifting production among the
    remaining plants to further rationalize manufacturing costs by
    sharing facilities between the two brands and specializing sites
    on specific product ranges. With the completion of these major
    actions, the systems, processes and flows of our production and
    distribution systems now need to be fine-tuned for maximum
    efficiency. This includes such actions as (a) achieving
    product cost reductions through re-engineering efforts;
    (b) increasing manufacturing efficiencies within each
    production facility; (c) finding lower cost sources for
    purchased parts and components by continuing to extend supplier
    re-sourcing activities on additional parts and components to
    lower cost countries (including those where we already have a
    manufacturing presence and can work with the local suppliers to
    develop their capabilities for supplying us on a global basis);
    and (d) achieving freight and logistics savings through
    distribution process improvements. Additionally, we should
    benefit from additional savings related to actions taken during
    2004, from which we did not receive a full years worth of
    benefit in 2004. In total, by the end of 2007, we anticipate
    that these actions will result in approximately an additional
    $500 million in profit improvements as compared with the
    base levels of revenues and costs incurred by us for the full
    year 2004.
|
| |  | Reduce capital employed in the business: We expect that
    our continued investment in supply chain systems will allow us
    to shorten delivery lead times. We also believe that our depot
    and parts system rationalization, availability of a new global
    parts system and our continued efforts on increasing
    manufacturing efficiencies should allow us to improve both our
    raw materials and finished goods inventory efficiency in the
    system. In addition, we have started pilot programs in some of
    our plants to reduce work-in-process inventory levels.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | Continue developing Financial Services: Our Financial
    Services operations are now firmly focused on the core
    business of supporting agricultural and construction equipment
    sales to our base of equipment dealers and retail customers
    throughout the world. We have separated our Financial
    Services marketing efforts into dedicated, specialized
    agricultural and construction equipment teams to develop
    solutions specifically tailored to the different needs of these
    customers and to capture a larger share of our customers
    financing requirements, including operating leases, rental,
    credit cards and insurance. We are continuing actions expected
    to improve our underwriting processes and remarketing efforts,
    in order to maintain the highest possible quality of receivables
    in our portfolio, and to enhance our ability to efficiently fund
    these portfolios. 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 to our operations
    in Western Europe and Brazil the business model developed in
    North America of centralizing management of all dealer
    receivables within our Financial Services business, with
    the goal of ensuring better financial control and funding
    optimization of all our receivables.                                                                                                                



Competition






33



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Products and Markets




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





Tractors


Combine Harvesters


Other Key Product Lines


34



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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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Skid Steer Loaders


Mini-Excavators


Other Key Products


Parts Support




| |                         
| | ------------------------
| | New Products and Markets







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



---



##### Table of Contents





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





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





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





43



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| |                                   
| | ----------------------------------
| | 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                                                   |  |               | 219   |  |                  |  | Owned        |   
|Burlington, IA   |  | Backhoe Loaders; Fork Lift Trucks                                       |  |               | 989   |  |                  |  | Owned        |   
|Burr Ridge, IL   |  | Technology (Engineering) Center                                         |  |               | 549   |  |                  |  | Owned        |   
|Calhoun, GA      |  | Crawler Excavators and Dozers                                           |  |               | 267   |  |                  |  | Owned        | **
|Dublin, GA       |  | Compact Tractors                                                        |  |               | 60    |  |                  |  | Owned        |   
|Fargo, ND        |  | Tractors; Wheel Loaders                                                 |  |               | 531   |  |                  |  | Owned        |   
|Goodfield, IL    |  | Soil Management (Tillage Equipment)                                     |  |               | 233   |  |                  |  | Owned        |   
|Grand Island, NE |  | Combine Harvesters                                                      |  |               | 680   |  |                  |  | Owned        |   
|Lake Forest, IL  |  | Global Management Offices                                               |  |               | 65    |  |                  |  | Leased       |   
|New Holland, PA  |  | Administrative Facilities; Hay and Forage; Engineering Center           |  |               | 1,190 |  |                  |  | Owned        |   
|Racine, WI       |  | Administrative Facilities; Tractor Assembly; Transmissions              |  |               | 2,015 |  |                  |  | Owned/Leased |   
|Wichita, KS      |  | Skid Steer Loaders                                                      |  |               | 455   |  |                  |  | Owned        |   
|Italy            |  |                                                                         |  |               |       |  |                  |  |              |   
|Imola            |  | Backhoe Loaders; Engineering Center                                     |  |               | 384   |  |                  |  | Owned        |   
|Jesi             |  | Tractors                                                                |  |               | 710   |  |                  |  | Owned        |   
|Lecce            |  | Construction Equipment; Engineering Center                              |  |               | 1,550 |  |                  |  | Owned        |   
|Modena           |  | Components                                                              |  |               | 1,150 |  |                  |  | Owned        |   
|San Matteo       |  | Engineering Center                                                      |  |               | 540   |  |                  |  | Owned        |   
|San Mauro        |  | Crawler Excavators                                                      |  |               | 590   |  |                  |  | Owned        | **
|France           |  |                                                                         |  |               |       |  |                  |  |              |   
|Coex             |  | Grape Harvesters; Engineering Center                                    |  |               | 280   |  |                  |  | Owned        |   
|Croix            |  | Cabs                                                                    |  |               | 466   |  |                  |  | Owned        |   
|Tracy-Le-Mont    |  | Hydraulic Cylinders                                                     |  |               | 204   |  |                  |  | Owned        |   
|United Kingdom   |  |                                                                         |  |               |       |  |                  |  |              |   
|Basildon         |  | Tractors; Components; Engineering Center; Administrative
    Facilities |  |               | 1,390 |  |                  |  | Owned        |   

44



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|                           |  |                                                                |  |               |       |  |                  |  |        |   
|-------------------------- |  | -------------------------------------------------------------- |  | ------------- | ----- |  | ---------------- |  | ------ | --
|                           |  |                                                                |  | Approximate   |       |  |                 
|Location                   |  | Primary Functions                                              |  | Covered Area* |       |  | Ownership Status | 
|                           |  |                                                                |  |               |       |  |                  | 
|Germany                    |  |                                                                |  |               |       |  |                  |  |        |   
|Berlin                     |  | Construction Equipment; Engineering Center                     |  |               | 1,113 |  |                  |  | Leased |   
|Dortmund                   |  | Administrative Facilities; Test and Parts Centers              |  |               | 348   |  |                  |  | Leased |   
|Heidelberg                 |  | Administrative and Warehouse Facilities                        |  |               | 162   |  |                  |  | Owned  |   
|Brazil                     |  |                                                                |  |               |       |  |                  |  |        |   
|Belo Horizonte             |  | Construction Equipment; Engineering Center                     |  |               | 510   |  |                  |  | Owned  |   
|Curitiba                   |  | Tractors; Combine Harvesters; Engineering Center               |  |               | 760   |  |                  |  | Owned  |   
|Piracicaba                 |  | Sugar Cane Harvesters                                          |  |               | 108   |  |                  |  | Owned  |   
|Canada                     |  |                                                                |  |               |       |  |                  |  |        |   
|Saskatoon                  |  | Planting and Seeding Equipment; Components; Engineering Center |  |               | 750   |  |                  |  | Owned  |   
|Belgium                    |  |                                                                |  |               |       |  |                  |  |        |   
|Antwerp                    |  | Components                                                     |  |               | 645   |  |                  |  | Leased |   
|Zedelgem                   |  | Combine Harvesters; Hay and Forage; Engineering Center         |  |               | 1,655 |  |                  |  | Owned  |   
|Others                     |  |                                                                |  |               |       |  |                  |  |        |   
|St. Valentin, Austria      |  | Tractors                                                       |  |               | 398   |  |                  |  | Leased |   
|Shanghai, China            |  | Tractors                                                       |  |               | 775   |  |                  |  | Leased | **
|New Delhi, India           |  | Tractors; Engineering Center                                   |  |               | 360   |  |                  |  | Owned  |   
|Plock, Poland              |  | Combine Harvesters                                             |  |               | 1,020 |  |                  |  | Owned  |   
|Queretao, Mexico           |  | Components                                                     |  |               | 205   |  |                  |  | Leased |   
|Amsterdam, The Netherlands |  | Administrative                                                 |  |               | 2     |  |                  |  | Leased |   




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



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



Environmental Matters






45



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##### Table of Contents





de minimis.











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



46



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



| |                      
| | ---------------------
| | 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 | 
|          |                |                 |   |       |        | 

47



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##### 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 | 
|          |                |                 |   |       |       | 











48



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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 | 
|          |                |                 |   |       |       | 









49



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





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









50



---



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|                              |  |               |     |  |      |   |     |      |  |   |     | 
|----------------------------- |  | ------------- | --- |  | ---- | - | --- | ---- |  | - | --- | 
|                              |  | 2004          |     |  | 2003 |   |     | 2002 | 
|                              |  |               |     |  |      |   |     |      | 
|                              |  | (in millions) |    
|Non-core portfolio            |  | $             | 131 |  |      | $ | 330 |      |  | $ | 570 | 
|                              |  |               |     |  |      |   |     |      | 
|Percentage of total portfolio |  |               | 1%  |  |      |   | 3%  |      |  |   | 5%  | 
|                              |  |               |     |  |      |   |     |      | 
|Delinquency percentage(1)     |  |               | 25% |  |      |   | 29% |      |  |   | 28% | 
|                              |  |               |     |  |      |   |     |      | 
|Annual loss percentage(2)     |  |               | 4%  |  |      |   | 15% |      |  |   | 9%  | 
|                              |  |               |     |  |      |   |     |      | 
|Loss provision provided       |  | $             | 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.          















51



---



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





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





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





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









| |                      
| | ---------------------
| | 2003 Compared to 2002



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



52



---



##### Table of Contents







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



|          |                |                 |   |       |        |  |   |       |       | 
|--------- | -------------- | --------------- | - | ----- | ------ |  | - | ----- | ----- | 
|          |                | 2003            |   |       | 2002   | 
|          |                |                 |   |       |        | 
|          |                | (in millions)   |  
|Net sales |                |                 |   |       |        |  |   |      
|          | North America  |                 | $ | 4,206 |        |  | $ | 4,140 |      
|          | Western Europe |                 |   | 3,739 |        |  |   | 3,317 |      
|          | Latin America  |                 |   | 712   |        |  |   | 638   |      
|          | Rest of World  |                 |   | 1,412 |        |  |   | 1,236 |      
|          |                |                 |   |       |        | 
|          |                | Total net sales |   | $     | 10,069 |  |   | $     | 9,331 | 
|          |                |                 |   |       |        | 





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

|          |                |                 |   |       |       |  |   |       |       | 
|--------- | -------------- | --------------- | - | ----- | ----- |  | - | ----- | ----- | 
|          |                | 2003            |   |       | 2002  | 
|          |                |                 |   |       |       | 
|          |                | (in millions)   |  
|Net sales |                |                 |   |       |       |  |   |      
|          | North America  |                 | $ | 2,893 |       |  | $ | 2,803 |      
|          | Western Europe |                 |   | 2,543 |       |  |   | 2,141 |      
|          | Latin America  |                 |   | 579   |       |  |   | 486   |      
|          | Rest of World  |                 |   | 1,110 |       |  |   | 975   |      
|          |                |                 |   |       |       | 
|          |                | Total net sales |   | $     | 7,125 |  |   | $     | 6,405 | 
|          |                |                 |   |       |       | 





53



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

|          |                |                 |   |       |       |  |   |       |       | 
|--------- | -------------- | --------------- | - | ----- | ----- |  | - | ----- | ----- | 
|          |                | 2003            |   |       | 2002  | 
|          |                |                 |   |       |       | 
|          |                | (in millions)   |  
|Net sales |                |                 |   |       |       |  |   |      
|          | North America  |                 | $ | 1,313 |       |  | $ | 1,337 |      
|          | Western Europe |                 |   | 1,196 |       |  |   | 1,176 |      
|          | Latin America  |                 |   | 133   |       |  |   | 152   |      
|          | Rest of World  |                 |   | 302   |       |  |   | 261   |      
|          |                |                 |   |       |       | 
|          |                | Total net sales |   | $     | 2,944 |  |   | $     | 2,926 | 
|          |                |                 |   |       |       | 



54



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



55



---



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









|                              |  |               |     |  |      |   |     |      |  |   |     | 
|----------------------------- |  | ------------- | --- |  | ---- | - | --- | ---- |  | - | --- | 
|                              |  | 2003          |     |  | 2002 |   |     | 2001 | 
|                              |  |               |     |  |      |   |     |      | 
|                              |  | (in millions) |    
|Non-core portfolio            |  | $             | 330 |  |      | $ | 570 |      |  | $ | 939 | 
|                              |  |               |     |  |      |   |     |      | 
|Percentage of total portfolio |  |               | 3%  |  |      |   | 5%  |      |  |   | 10% | 
|                              |  |               |     |  |      |   |     |      | 
|Delinquency percentage(1)     |  |               | 29% |  |      |   | 28% |      |  |   | 25% | 
|                              |  |               |     |  |      |   |     |      | 
|Annual loss percentage(2)     |  |               | 15% |  |      |   | 9%  |      |  |   | 6%  | 
|                              |  |               |     |  |      |   |     |      | 
|Loss provision provided       |  | $             | 68  |  |      | $ | 63  |      |  | $ | 110 | 
|                              |  |               |     |  |      |   |     |      | 




|    |                                                                                                
|--- | -----------------------------------------------------------------------------------------------
|(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.          



56



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1 4


1 4








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



57



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





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







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







Application of Critical Accounting Estimates




58



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| |                                
| | -------------------------------
| | Allowance for Doubtful Accounts









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









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



59



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|                             |  |                  |       |               |        |   |     |        |  |   |     |  |  |  |  |  |  |  |  |  |  |  |  | 
|---------------------------- |  | ---------------- | ----- | ------------- | ------ | - | --- | ------ |  | - | --- |  |  |  |  |  |  |  |  |  |  |  |  | 
|                             |  | Weighted Average |       |               | 10%    |   |     | 20%    |  |   |     |  |  |  | 
|                             |  | Assumptions      |       |               | Change |   |     | Change |  |   |     |  |  |  | 
|                             |  |                  |       |               |        |   |     |        |  |   |     |  |  |  | 
|                             |  |                  |       | (in millions) |        |   |     |        |  |   |    
|Constant prepayment rate     |  |                  | 16.56 | %             |        | $ | 1.9 |        |  | $ | 3.5 |  |  |  |  |  |  |  |  |  |  |  |  | 
|Annual credit loss rate      |  |                  | 0.69  | %             |        | $ | 2.4 |        |  | $ | 4.9 |  |  |  |  |  |  |  |  |  |  |  |  | 
|Discount rate                |  |                  | 9.37  | %             |        | $ | 4.0 |        |  | $ | 6.9 |  |  |  |  |  |  |  |  |  |  |  |  | 
|Remaining maturity in months |  |                  | 17    |               |        |   |     |        |  |   |     |  |  |  |  |  |  |  |  |  |  |  |  | 





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









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





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









| |               
| | --------------
| | Warranty Costs











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



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|                                  |                                                            |                   |   |       |                             |  |   |                 |   |  |                 |        |   |  |   |        |  
|--------------------------------- | ---------------------------------------------------------- | ----------------- | - | ----- | --------------------------- |  | - | --------------- | - |  | --------------- | ------ | - |  | - | ------ | -
|                                  |                                                            | 2004 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                                      |                   | $ | (7.9  | )                           |  | $ | 8.3             |   |  | $               | (108.0 | ) |  | $ | 123.8  |  
|                                  | Expected long-term rate of return on plan assets           |                   |   | (6.6  | )                           |  |   | 6.6             |   |  |                 | N/A    |   |  |   | N/A    |  
|Pension benefits  International: |                                                            |                   |   |       |                             |  |   |                 |   |  |                 |        |   |  |   |       
|                                  | Assumed discount rate                                      |                   |   | (13.1 | )                           |  |   | 13.3            |   |  |                 | (239.1 | ) |  |   | 297.2  |  
|                                  | Expected rate of compensation increase                     |                   |   | 8.5   |                             |  |   | (6.5            | ) |  |                 | 56.4   |   |  |   | (50.6  | )
|                                  | Expected long-term rate of return on plan assets           |                   |   | (8.8  | )                           |  |   | 8.8             |   |  |                 | N/A    |   |  |   | N/A    |  
|Other postretirement benefits:    |                                                            |                   |   |       |                             |  |   |                 |   |  |                 |        |   |  |   |       
|                                  | Assumed discount rate                                      |                   |   | (13.0 | )                           |  |   | 15.9            |   |  |                 | (158.6 | ) |  |   | 193.1  |  
|                                  | Assumed health care cost trend rate (initial and ultimate) |                   |   | 25.7  |                             |  |   | (21.1           | ) |  |                 | 177.7  |   |  |   | (148.1 | )





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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 | 
|                                            |            |               |       |       |                      |   |       |                    | 
|                                            |            | 2004          |       |       | 2003                 |   |       | 2004               |  |   | 2003  |       |  | 2004 |       |       | 2003 |  
|                                            |            |               |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |  
|                                            |            | (in millions) |      
|Long-term debt excluding current maturities |            | $             | 4,020 |       |                      | $ | 4,043 |                    |  | $ | 2,827 |       |  | $    | 3,105 |       |      | $ | 1,893 |       |  | $ | 1,638 |      
|Current maturities of long-term debt        |            |               | 886   |       |                      |   | 843   |                    |  |   | 257   |       |  |      | 88    |       |      |   | 629   |       |  |   | 755   |      
|Short-term debt                             |            |               | 2,057 |       |                      |   | 2,110 |                    |  |   | 1,088 |       |  |      | 1,522 |       |      |   | 1,407 |       |  |   | 900   |      
|                                            |            |               |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |  
|                                            | Total debt |               | $     | 6,963 |                      |   | $     | 6,996              |  |   | $     | 4,172 |  |      | $     | 4,715 |      |   | $     | 3,929 |  |   | $     | 3,293 | 
|                                            |            |               |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |  





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|                               |                                |                                   |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |   |       |     |  |   |       |     | 
|------------------------------ | ------------------------------ | --------------------------------- | ----- | ----- | -------------------- | - | ----- | ------------------ |  | - | ----- | ----- |  | ---- | ----- | ----- | ---- | - | ----- | --- |  | - | ----- | --- | 
|                               |                                | Consolidated                      |       |       | Equipment Operations |   |       | Financial Services | 
|                               |                                |                                   |       |       |                      |   |       |                    | 
|                               |                                | 2004                              |       |       | 2003                 |   |       | 2004               |  |   | 2003  |       |  | 2004 |       |       | 2003 |  
|                               |                                |                                   |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |  
|                               |                                | (in millions, except percentages) |      
|Total debt                     |                                | $                                 | 6,963 |       |                      | $ | 6,996 |                    |  | $ | 4,172 |       |  | $    | 4,715 |       |      | $ | 3,929 |     |  | $ | 3,293 |    
|Less:                          |                                |                                   |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |   |       |     |  |   |       |    
|                               | Cash and cash equivalents      |                                   |       | 931   |                      |   |       | 619                |  |   |       | 637   |  |      |       | 486   |      |   |       | 294 |  |   |       | 133 | 
|                               | Deposits with Fiat             |                                   |       | 1,151 |                      |   |       | 1,325              |  |   |       | 1,136 |  |      |       | 1,315 |      |   |       | 15  |  |   |       | 10  | 
|                               | Intersegment notes receivables |                                   |       |      |                      |   |       |                   |  |   |       | 1,114 |  |      |       | 1,012 |      |   |       | 24  |  |   |       |    | 
|                               |                                |                                   |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |  
|Net debt                       |                                |                                   | 4,881 |       |                      |   | 5,052 |                    |  |   | 1,285 |       |  |      | 1,902 |       |      |   | 3,596 |     |  |   | 3,150 |    
|Total shareholders equity     |                                |                                   | 5,029 |       |                      |   | 4,874 |                    |  |   | 5,029 |       |  |      | 4,874 |       |      |   | 1,419 |     |  |   | 1,241 |    
|                               |                                |                                   |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |  
|Net capitalization             |                                | $                                 | 9,910 |       |                      | $ | 9,926 |                    |  | $ | 6,314 |       |  | $    | 6,776 |       |      | $ | 5,015 |     |  | $ | 4,391 |    
|                               |                                |                                   |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |  
|Net debt to net capitalization |                                |                                   | 49%   |       |                      |   | 51%   |                    |  |   | 20%   |       |  |      | 28%   |       |      |   | 72%   |     |  |   | 72%   |    
|                               |                                |                                   |       |       |                      |   |       |                    |  |   |       |       |  |      |       |       |      |  



|                                   |  |                                   |        |  |                      |   |        |                    |  |   |       |  |  |      |       |  |      |   |       |  |  |   |       | 
|---------------------------------- |  | --------------------------------- | ------ |  | -------------------- | - | ------ | ------------------ |  | - | ----- |  |  | ---- | ----- |  | ---- | - | ----- |  |  | - | ----- | 
|                                   |  | Consolidated                      |        |  | Equipment Operations |   |        | Financial Services | 
|                                   |  |                                   |        |  |                      |   |        |                    | 
|                                   |  | 2004                              |        |  | 2003                 |   |        | 2004               |  |   | 2003  |  |  | 2004 |       |  | 2003 |  
|                                   |  |                                   |        |  |                      |   |        |                    |  |   |       |  |  |      |       |  |      |  
|                                   |  | (in millions, except percentages) |       
|Total debt                         |  | $                                 | 6,963  |  |                      | $ | 6,996  |                    |  | $ | 4,172 |  |  | $    | 4,715 |  |      | $ | 3,929 |  |  | $ | 3,293 | 
|Total shareholders equity         |  |                                   | 5,029  |  |                      |   | 4,874  |                    |  |   | 5,029 |  |  |      | 4,874 |  |      |   | 1,419 |  |  |   | 1,241 | 
|                                   |  |                                   |        |  |                      |   |        |                    |  |   |       |  |  |      |       |  |      |  
|Total capitalization               |  | $                                 | 11,992 |  |                      | $ | 11,870 |                    |  | $ | 9,201 |  |  | $    | 9,589 |  |      | $ | 5,348 |  |  | $ | 4,534 | 
|                                   |  |                                   |        |  |                      |   |        |                    |  |   |       |  |  |      |       |  |      |  
|Total debt to total capitalization |  |                                   | 58%    |  |                      |   | 59%    |                    |  |   | 45%   |  |  |      | 49%   |  |      |   | 73%   |  |  |   | 73%   | 
|                                   |  |                                   |        |  |                      |   |        |                    |  |   |       |  |  |      |       |  |      |  







Cash Flows




| |                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------
| | Reclassification of cash flows related to retail receivables
    and change in accounting policy for Deposits with Fiat

Reclassification of cash flows related to retail receivables:


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Change in accounting policy for Deposits with Fiat:






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

|                     |  |                     |      |   |      |   |     |      |  |   |     |  
|-------------------- |  | ------------------- | ---- | - | ---- | - | --- | ---- |  | - | --- | -
|                     |  | For the Years Ended |     
|                     |  | December 31,        |     
|                     |  |                     |     
|                     |  | 2004                |      |   | 2003 |   |     | 2002 | 
|                     |  |                     |      |   |      |   |     |      | 
|                     |  | (in millions)       |     
|Equipment Operations |  | $                   | 879  |   |      | $ | 66  |      |  | $ | 485 |  
|Financial Services   |  |                     | 200  |   |      |   | 752 |      |  |   | 495 |  
|Eliminations         |  |                     | (109 | ) |      |   | (22 | )    |  |   | (3  | )
|                     |  |                     |      |   |      |   |     |      | 
|Consolidated         |  | $                   | 970  |   |      | $ | 796 |      |  | $ | 977 |  
|                     |  |                     |      |   |      |   |     |      | 





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

|                     |  |                              |      |   |      |   |        |      |  |   |      |  
|-------------------- |  | ---------------------------- | ---- | - | ---- | - | ------ | ---- |  | - | ---- | -
|                     |  | For the Years Ended December |     
|                     |  | 31,                          |     
|                     |  |                              |     
|                     |  | 2004                         |      |   | 2003 |   |        | 2002 | 
|                     |  |                              |      |   |      |   |        |      | 
|                     |  | (in millions)                |     
|Equipment Operations |  | $                            | 22   |   |      | $ | (1,136 | )    |  | $ | (666 | )
|Financial Services   |  |                              | (503 | ) |      |   | 102    |      |  |   | (65  | )
|Eliminations         |  |                              | 85   |   |      |   | 54     |      |  |   | 72   |  
|                     |  |                              |      |   |      |   |        |      | 
|Consolidated         |  | $                            | (396 | ) |      | $ | (980   | )    |  | $ | (659 | )
|                     |  |                              |      |   |      |   |        |      | 









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

|                     |  |                     |      |   |      |   |       |      |  |   |      |  
|-------------------- |  | ------------------- | ---- | - | ---- | - | ----- | ---- |  | - | ---- | -
|                     |  | For the Years Ended |     
|                     |  | December 31,        |     
|                     |  |                     |     
|                     |  | 2004                |      |   | 2003 |   |       | 2002 | 
|                     |  |                     |      |   |      |   |       |      | 
|                     |  | (in millions)       |     
|Equipment Operations |  | $                   | (754 | ) |      | $ | 1,403 |      |  | $ | 87   |  
|Financial Services   |  |                     | 453  |   |      |   | (833  | )    |  |   | (593 | )
|Eliminations         |  |                     | 24   |   |      |   | (32   | )    |  |   | (70  | )
|                     |  |                     |      |   |      |   |       |      | 
|Consolidated         |  | $                   | (277 | ) |      | $ | 538   |      |  | $ | (576 | )
|                     |  |                     |      |   |      |   |       |      | 



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1 4


1 4






Credit Ratings




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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | On June 26, 2003, Fiat announced its Relaunch Plan.
    Following this announcement, S&P announced that it was
    placing the BB corporate credit ratings of CNH, Case and
    Fiats BB+ corporate credit rating, on credit watch with
    negative implications.                                                                                                                                                                                                                                                         
|
| |  | On July 7, 2003, Moodys downgraded Fiats
    long-term senior unsecured debt ratings to Ba3 from Ba1, with a
    negative outlook. At the same time, Moodys assigned Fiat a
    Ba3 senior implied rating, also with a negative outlook. Also on
    July 7, 2003, Moodys lowered the senior debt ratings
    of Case and Case Credit Corporation to Ba3 from Ba2, with a
    negative outlook. On July 8, Fitch Ratings downgraded
    Fiats senior unsecured debt rating to BB from BB+, with a
    negative outlook.
|
| |  | On July 11, 2003, S&P lowered its corporate credit
    ratings on CNH and related entities to BB- from BB, with a
    stable outlook, and removed them from credit watch. Also on
    July 11, S&P lowered Fiats long-term corporate
    credit rating to BB- from BB+, with a stable outlook, and
    removed it from credit watch.                                                                                                                                                                                       





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, predominantly through uncommitted credit facilities
    and receivables discounting lines. 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.

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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 have relied in the past and may,
    from time to time, continue to rely on our relationship with
    Fiat to obtain term funding to complement our access to funding
    from banks and capital markets.                                                                         
|
| |  | 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.                                                                                                                   
|
| |  | Financial Services has relied in the past on intersegment notes
    from Equipment Operations to offset the unavailability of
    commercial paper funding in certain jurisdictions following our
    credit ratings downgrades; however, it is our policy to reduce
    such dependency over time and pursue direct funding for
    Financial Services.                                                                                                                                                                  









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| |               
| | --------------
| | Long-term Debt













| |                                             
| | --------------------------------------------
| | Commercial Paper and Certificates of Deposit





| |                                
| | -------------------------------
| | Credit and Liquidity Facilities

1 4


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|                                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           |  |   |       |       |  |  |      |  | 
|---------------------------------------------------------------------------------- | ----------------------- | ------------- | ------- |  | ------ | --------- | ----- | ---------- | --------- | - | -------- | ----- |  | ----- | ----- | ----- | --------- | - | ----- | --------- |  | - | ----- | ----- |  |  | ---- |  | 
|                                                                                   |                         |               |         |  |        | Drawn     |       |            |           |   |         
|                                                                                   |                         |               |         |  |        |           |       |            |           |   |         
|                                                                                   |                         |               |         |  |        | Equipment |       |            | Financial |   |          |       |  |       |       |      
|                                                                                   |                         | Maturity      |         |  | Amount |           |       | Operations |           |   | Services |       |  | Total |       |       | Available |   |       | Guarantor | 
|                                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           | 
|                                                                                   |                         | (in millions) |        
|Committed lines:                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           |  |   |       |       |  |  |      | 
|Revolving syndicated backup credit facility                                        |                         |               | 2005    |  |        | $         | 1,800 |            |           | $ |         |       |  | $     |      |       |           | $ |      |           |  | $ | 1,800 |       |  |  | Fiat | 
|Backup credit facilities with third parties shared with some
    Fiat subsidiaries |                         |               | 2005    |  |        |           | 125   |            |           |   |         |       |  |       |      |       |           |   |      |           |  |   | 125   |       |  |  | Fiat | 
|Other backup facilities with third parties                                         |                         |               | 2005    |  |        |           | 100   |            |           |   |         |       |  |       |      |       |           |   |      |           |  |   | 100   |       |  |  | Fiat | 
|Other committed lines guaranteed by Fiat                                           |                         |               | various |  |        |           | 162   |            |           |   | 62       |       |  |       | 109   |       |           |   | 171   |           |  |   | (9    | )(1)  |  |  | Fiat | 
|Other committed lines (Financial Services, Brazil)                                 |                         |               | various |  |        |           | 1,086 |            |           |   |         |       |  |       | 1,000 |       |           |   | 1,000 |           |  |   | 86    |       |  |  | Fiat | 
|Revolving credit facility with Fiat affiliate                                      |                         |               | 2005    |  |        |           | 1,000 |            |           |   | 248      |       |  |       | 193   |       |           |   | 441   |           |  |   | 559   |       |  |  | Fiat | 
|Other committed lines                                                              |                         |               |         |  |        |           | 298   |            |           |   | 188      |       |  |       |      |       |           |   | 188   |           |  |   | 110   |       |  |  |      | 
|                                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           | 
|                                                                                   | Total committed lines   |               |         |  |        |           |       | 4,571      |           |   |          | 498   |  |       |       | 1,302 |           |   |       | 1,800     |  |   |       | 2,771 |  |  |      |  | 
|Uncommitted lines                                                                  |                         |               |         |  |        |           | 692   |            |           |   | 537      |       |  |       | 102   |       |           |   | 639   |           |  |   | 53    |       |  |  |      | 
|Asset-backed programs                                                              |                         |               | various |  |        |           | 1,699 |            |           |   |         |       |  |       | 448   |       |           |   | 448   |           |  |   | 1,251 |       |  |  |      | 
|                                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           | 
|                                                                                   | Total credit facilities |               |         |  |        |           | $     | 6,962      |           |   | $        | 1,035 |  |       | $     | 1,852 |           |   | $     | 2,887     |  |   | $     | 4,075 |  |  |      |  | 
|                                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           | 
|Drawn short-term debt                                                              |                         |               |         |  |        |           |       |            |           | $ | 973      |       |  | $     | 754   |       |           | $ | 1,727 |           |  |   |       |       |  |  |      | 
|                                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           | 
|Drawn long-term debt                                                               |                         |               |         |  |        |           |       |            |           | $ | 62       |       |  | $     | 1,098 |       |           | $ | 1,160 |           |  |   |       |       |  |  |      | 
|                                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           | 
|Total credit facilities with Fiat affiliates or guaranteed by
    Fiat affiliates  |                         |               |         |  |        | $         | 4,273 |            |           | $ | 310      |       |  | $     | 1,302 |       |           | $ | 1,612 |           |  | $ | 2,661 |       |  |  |      | 
|                                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           | 
|BCI debt guaranteed by Fiat                                                        |                         |               |         |  |        |           |       |            |           | $ | 169      |       |  |       |       |       |           | $ | 169   |           |  |   |       |       |  |  |      | 
|                                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           | 






|    |                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes translation to USD of draw-downs in other currencies.
    The draw-downs are within the limits when stated in the
    contractual currency.



| |                          
| | -------------------------
| | Committed Lines of Credit











| |                            
| | ---------------------------
| | Uncommitted Lines of Credit



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| |                      
| | ---------------------
| | Asset-Backed Programs





|                                                    |       |               |       |       |              |   |     |       | 
|--------------------------------------------------- | ----- | ------------- | ----- | ----- | ------------ | - | --- | ----- | 
|                                                    |       | Program       |       |       |             
|                                                    |       | Size          |       |       | Availability |  
|                                                    |       |               |       |       |              |  
|                                                    |       | (in millions) |      
|United States (expiring in January 2005)            |       | $             | 1,200 |       |              | $ | 904 |      
|United States  credit card (expiring in June 2007) |       |               | 250   |       |              |   | 120 |      
|Canada (expiring in June 2005)                      |       |               | 249   |       |              |   | 227 |      
|                                                    |       |               |       |       |              |  
|                                                    | Total |               | $     | 1,699 |              |   | $   | 1,251 | 
|                                                    |       |               |       |       |              |  





| |                                                                                 
| | --------------------------------------------------------------------------------
| | Cash, Cash Equivalents, Deposits with Fiat and Intersegment
    Notes Receivable



|                                     |            |               |       |           |            |   |           |          |  |   |       |     |  |      |       |     |      |   |     |    |  |   |     |   | 
|------------------------------------ | ---------- | ------------- | ----- | --------- | ---------- | - | --------- | -------- |  | - | ----- | --- |  | ---- | ----- | --- | ---- | - | --- | -- |  | - | --- | - | 
|                                     |            |               |       | Equipment |            |   | Financial |         
|                                     |            | Consolidated  |       |           | Operations |   |           | Services | 
|                                     |            |               |       |           |            |   |           |          | 
|                                     |            | 2004          |       |           | 2003       |   |           | 2004     |  |   | 2003  |     |  | 2004 |       |     | 2003 |  
|                                     |            |               |       |           |            |   |           |          |  |   |       |     |  |      |       |     |      |  
|                                     |            | (in millions) |      
|Cash and cash equivalents            |            | $             | 931   |           |            | $ | 619       |          |  | $ | 637   |     |  | $    | 486   |     |      | $ | 294 |    |  | $ | 133 |  
|                                     |            |               |       |           |            |   |           |          |  |   |       |     |  |      |       |     |      |  
|Deposits with Fiat                   |            | $             | 1,151 |           |            | $ | 1,325     |          |  | $ | 1,136 |     |  | $    | 1,315 |     |      | $ | 15  |    |  | $ | 10  |  
|                                     |            |               |       |           |            |   |           |          |  |   |       |     |  |      |       |     |      |  
|Intersegment notes receivable:       |            |               |       |           |            |   |           |          |  |   |       |     |  |      |       |     |      |   |     |    |  |   |     |  
|                                     | Short-term |               | $     |          |            |   | $         |         |  |   | $     | 414 |  |      | $     | 312 |      |   | $   | 24 |  |   | $   |  | 
|                                     | Long-term  |               |       |          |            |   |           |         |  |   |       | 700 |  |      |       | 700 |      |   |     |   |  |   |     |  | 
|                                     |            |               |       |           |            |   |           |          |  |   |       |     |  |      |       |     |      |  
|Total intersegment notes receivables |            | $             |      |           |            | $ |          |          |  | $ | 1,114 |     |  | $    | 1,012 |     |      | $ | 24  |    |  | $ |    |  
|                                     |            |               |       |           |            |   |           |          |  |   |       |     |  |      |       |     |      |  







73



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



|                                                      |                      |               |        |       |                      |   |        |                    |  |   |        |       |  |      |        |       |      |   |     |     |  |   |     |     | 
|----------------------------------------------------- | -------------------- | ------------- | ------ | ----- | -------------------- | - | ------ | ------------------ |  | - | ------ | ----- |  | ---- | ------ | ----- | ---- | - | --- | --- |  | - | --- | --- | 
|                                                      |                      | Consolidated  |        |       | Equipment Operations |   |        | Financial Services | 
|                                                      |                      |               |        |       |                      |   |        |                    | 
|                                                      |                      | 2004          |        |       | 2003                 |   |        | 2004               |  |   | 2003   |       |  | 2004 |        |       | 2003 |  
|                                                      |                      |               |        |       |                      |   |        |                    |  |   |        |       |  |      |        |       |      |  
|                                                      |                      | (in millions) |       
|Long-term debt with Fiat excluding current maturities |                      | $             | 1,021  |       |                      | $ | 1,669  |                    |  | $ | 873    |       |  | $    | 1,363  |       |      | $ | 148 |     |  | $ | 306 |    
|Current maturities of long-term debt with Fiat        |                      |               | 90     |       |                      |   | 62     |                    |  |   | 19     |       |  |      | 17     |       |      |   | 71  |     |  |   | 45  |    
|Short-term debt with Fiat                             |                      |               | 672    |       |                      |   | 698    |                    |  |   | 331    |       |  |      | 403    |       |      |   | 341 |     |  |   | 295 |    
|                                                      |                      |               |        |       |                      |   |        |                    |  |   |        |       |  |      |        |       |      |  
|                                                      | Total debt with Fiat |               |        | 1,783 |                      |   |        | 2,429              |  |   |        | 1,223 |  |      |        | 1,783 |      |   |     | 560 |  |   |     | 646 | 
|Less Deposits with Fiat                               |                      |               | (1,151 | )     |                      |   | (1,325 | )                  |  |   | (1,136 | )     |  |      | (1,315 | )     |      |   | (15 | )   |  |   | (10 | )  
|                                                      |                      |               |        |       |                      |   |        |                    |  |   |        |       |  |      |        |       |      |  
|Net Debt with Fiat                                    |                      | $             | 632    |       |                      | $ | 1,104  |                    |  | $ | 87     |       |  | $    | 468    |       |      | $ | 545 |     |  | $ | 636 |    
|                                                      |                      |               |        |       |                      |   |        |                    |  |   |        |       |  |      |        |       |      |  









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Securitization




|                                          |       |               |       |       |      |   |       |       | 
|----------------------------------------- | ----- | ------------- | ----- | ----- | ---- | - | ----- | ----- | 
|                                          |       | 2004          |       |       | 2003 |  
|                                          |       |               |       |       |      |  
|                                          |       | (in millions) |      
|Wholesale receivables                     |       | $             | 2,342 |       |      | $ | 1,550 |      
|Retail and other notes and finance leases |       |               | 4,475 |       |      |   | 4,503 |      
|Receivables discounted without recourse   |       |               | 108   |       |      |   | 174   |      
|                                          |       |               |       |       |      |  
|                                          | Total |               | $     | 6,925 |      |   | $     | 6,227 | 
|                                          |       |               |       |       |      |  





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









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









76



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 




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







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.





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Patents and Trademarks


Agricultural Equipment


Construction Equipment








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

Agricultural equipment market outlook for
2005


Construction equipment market outlook for
2005






CNH outlook for 2005




| |                                  
| | ---------------------------------
| | 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                        |                                    | $                      | 4,906 |           |        | $             | 886 |           |  | $ | 1,907     |       |  | $             | 791 |       |  | $ | 1,322 |      
|Interest on fixed rate debt           |                                    |                        | 939   |           |        |               | 151 |           |  |   | 411       |       |  |               | 239 |       |  |   | 138   |      
|Interest on floating rate
    debt(1) |                                    |                        | 806   |           |        |               | 135 |           |  |   | 405       |       |  |               | 266 |       |  |   |      |      
|Operating
    leases(2)               |                                    |                        | 183   |           |        |               | 38  |           |  |   | 50        |       |  |               | 31  |       |  |   | 64    |      
|Joint venture funding requirements    |                                    |                        | 43    |           |        |               | 10  |           |  |   | 33        |       |  |               |    |       |  |   |      |      
|                                      |                                    |                        |       |           |        |               |     |           |  |   |           |       |  |               |    
|                                      | Total contractual cash obligations |                        | $     | 6,877     |        |               | $   | 1,220     |  |   | $         | 2,806 |  |               | $   | 1,327 |  |   | $     | 1,524 | 
|                                      |                                    |                        |       |           |        |               |     |           |  |   |           |       |  |               |    






|    |                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The interest funding requirements are based on the 2004 interest
    rates and the assumption that short-term and maturing debt will
    be renewed for the next five years.
|   
|(2) | Minimum rental commitments.                                                                                                                                                 



Other Long-term Liabilities
















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Purchase Obligations










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







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Item 6. Directors, Senior Management and
Employees




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



|                     |  |                                                                                          |  |               |      | 
|-------------------- |  | ---------------------------------------------------------------------------------------- |  | ------------- | ---- | 
|                     |  |                                                                                          |  | Director/     |     
|                     |  |                                                                                          |  | Executive     |     
|Name                 |  | Position with CNH                                                                        |  | Officer Since |     
|                     |  |                                                                                          |  |               |     
|Katherine M. Hudson  |  | Director; Chairman of the Board                                                          |  |               | 1999 | 
|Luigi Gubitosi       |  | Director                                                                                 |  |               | 2004 | 
|Edward A. Hiler      |  | Director                                                                                 |  |               | 2002 | 
|Kenneth Lipper       |  | Director                                                                                 |  |               | 1996 | 
|Sergio Marchionne    |  | Director                                                                                 |  |               | 2004 | 
|Paolo Monferino      |  | Director                                                                                 |  |               | 2000 | 
|Michael E. Murphy    |  | Director                                                                                 |  |               | 2002 | 
|James L.C. Provan    |  | Director                                                                                 |  |               | 1995 | 
|Eugenio Razelli      |  | Director                                                                                 |  |               | 2004 | 
|Harold D. Boyanovsky |  | President and Chief Executive Officer and President,
    Construction Equipment Business |  |               | 1999 | 
|Michel Lecomte       |  | Chief Financial Officer                                                                  |  |               | 2000 | 
|Mario Ferla          |  | President of CNH Capital LLC                                                             |  |               | 2003 | 
|Richard J. Hoffman   |  | Corporate Controller and Chief Accounting Officer                                        |  |               | 2004 | 
|Howard Levy          |  | Senior Vice President, Purchasing                                                        |  |               | 2004 | 
|Roberto Miotto       |  | Senior Vice President, General Counsel and Secretary                                     |  |               | 1991 | 
|Giovanni B. Ravina   |  | Senior Vice President, Human Resources                                                   |  |               | 2000 | 
|Roland Sundén        |  | President, Agricultural Equipment Business                                               |  |               | 2004 | 









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83



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84



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

Directors Compensation




|                               |              |       |   |       |          |   |        |              |  |   |         |        |  |            |        |        |           |   |        |            |  |   |             |        |  |           |        |        |       |   |         |         |  |   |           |           |  |   |           |           | 
|------------------------------ | ------------ | ----- | - | ----- | -------- | - | ------ | ------------ |  | - | ------- | ------ |  | ---------- | ------ | ------ | --------- | - | ------ | ---------- |  | - | ----------- | ------ |  | --------- | ------ | ------ | ----- | - | ------- | ------- |  | - | --------- | --------- |  | - | --------- | --------- | 
|                               |              | Grant |   |       | Alfredo  |   |        | Katherine M. |  |   | Kenneth |        |  | James L.C. |        |        | Edward A. |   |        | Michael E. |  |   | Jean-Pierre |        |  | Paolo     |        |        |      
|                               |              | Price |   |       | Diana(1) |   |        | Hudson       |  |   | Lipper  |        |  | Provan     |        |        | Hiler     |   |        | Murphy     |  |   | Rosso(2)    |        |  | Monferino |        |        | Total |  
|                               |              |       |   |       |          |   |        |              |  |   |         |        |  |            |        |        |           |   |        |            |  |   |             |        |  |           |        |        |       |  
|Periodic Remuneration in Cash: |              |       |   |       |          |   |        |              |  |   |         |        |  |            |        |        |           |   |        |            |  |   |             |        |  |           |        |        |       |   |         |         |  |   |           |           |  |   |           |          
|                               | Salary       |       |   |       |          |   | $      |             |  |   | $       |       |  |            | $      |       |           |   | $      |           |  |   | $           |       |  |           | $      |       |       |   | $       | 489,197 |  |   | $         | 1,640,451 |  |   | $         | 2,129,648 | 
|                               | Meeting Fees |       |   |       |          |   |        | 11,250       |  |   |         | 15,000 |  |            |        | 8,750  |           |   |        | 18,750     |  |   |             | 12,500 |  |           |        | 12,500 |       |   |         |        |  |   |           |          |  |   |           | 78,750    | 
|                               | Annual Fees  |       |   |       |          |   |        | 11,222       |  |   |         | 75,000 |  |            |        | 20,000 |           |   |        |           |  |   |             | 40,000 |  |           |        | 17,000 |       |   |         |        |  |   |           |          |  |   |           | 163,222   | 
|Common Shares Granted:         |              |       |   |       |          |   |        |              |  |   |         |        |  |            |        |        |           |   |        |            |  |   |             |        |  |           |        |        |       |   |         |         |  |   |           |           |  |   |           |          
|                               | 2/1/2004.    |       | $ | 16.54 |          |   |        | 4,995        |  |   |         |       |  |            |        |       |           |   |        | 10,007     |  |   |             |       |  |           |        | 6,004  |       |   |         |        |  |   |           |          |  |   |           | 21,006    | 
|                               | 4/25/2004.   |       |   | 20.66 |          |   |        | 5,000        |  |   |         |       |  |            |        |       |           |   |        | 9,999      |  |   |             |       |  |           |        | 5,991  |       |   |         |        |  |   |           |          |  |   |           | 20,990    | 
|                               | 7/24/2004.   |       |   | 20.44 |          |   |        |             |  |   |         |       |  |            |        |       |           |   |        | 11,242     |  |   |             |       |  |           |        | 6,745  |       |   |         |        |  |   |           |          |  |   |           | 17,987    | 
|                               | 10/22/2004.  |       |   | 17.41 |          |   |        |             |  |   |         |       |  |            |        |       |           |   |        | 11,247     |  |   |             |       |  |           |        | 6,755  |       |   |         |        |  |   |           |          |  |   |           | 18,002    | 
|Future Remuneration:           |              |       |   |       |          |   |        |              |  |   |         |        |  |            |        |        |           |   |        |            |  |   |             |        |  |           |        |        |       |   |         |         |  |   |           |           |  |   |           |          
|                               | Pension Plan |       |   |       |          |   |        |             |  |   |         |       |  |            |        |       |           |   |        |           |  |   |             |       |  |           |        |       |       |   |         | 7,673   |  |   |           | 61,520    |  |   |           | 69,193    | 
|Allowance Upon Termination     |              |       |   |       |          |   |       |              |  |   |        |        |  |            |       |        |           |   |       |            |  |   |            |        |  |           |       |        |       |   |        |         |  |   | 124,676   |           |  |   | 124,676   |          
|Bonus:                         |              |       |   |       |          |   |        |              |  |   |         |        |  |            |        |        |           |   |        |            |  |   |             |        |  |           |        |        |       |   |         |         |  |   |           |           |  |   |           |          
|                               | Cash         |       |   |       |          |   |        |             |  |   |         |       |  |            |        |       |           |   |        |           |  |   |             |       |  |           |        |       |       |   |         |        |  |   |           | 309,000   |  |   |           | 309,000   | 
|                               |              |       |   |       |          |   |        |              |  |   |         |        |  |            |        |        |           |   |        |            |  |   |             |        |  |           |        |        |       |  
|Total                          |              |       |   |       |          | $ | 32,467 |              |  | $ | 90,000  |        |  | $          | 28,750 |        |           | $ | 61,245 |            |  | $ | 52,500      |        |  | $         | 54,995 |        |       | $ | 496,870 |         |  | $ | 2,135,647 |           |  | $ | 2,952,474 |          
|                               |              |       |   |       |          |   |        |              |  |   |         |        |  |            |        |        |           |   |        |            |  |   |             |        |  |           |        |        |       |  




|    |                                                                        
|--- | -----------------------------------------------------------------------
|(1) | Mr. Diana, a former director, retired in May 2004.                     
|   
|(2) | Mr. Rosso, the former Chairman of the Board, retired in
    April 2004.



Other Executive Officers Compensation






CNH Outside Directors Compensation Plan




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|                                 |           |        |         |          |        |   |       |        |          |  |         |        |  |          |       |       |        |  |        |        |   |   |       |       | 
|-------------------------------- | --------- | ------ | ------- | -------- | ------ | - | ----- | ------ | -------- |  | ------- | ------ |  | -------- | ----- | ----- | ------ |  | ------ | ------ | - | - | ----- | ----- | 
|                                 |           | 2004   |         |          | 2003   |   |       | 2002   |         
|                                 |           |        |         |          |        |   |       |        |         
|                                 |           |        |         | Exercise |        |   |       |        | Exercise |  |         |        |  | Exercise |      
|                                 |           | Shares |         |          | Price* |   |       | Shares |          |  | Price*  |        |  | Shares   |       |       | Price* | 
|                                 |           |        |         |          |        |   |       |        |          |  |         |        |  |          |       |       |        | 
|Outstanding at beginning of year |           |        | 142,500 |          |        | $ | 23.39 |        |          |  | 82,464  |        |  | $        | 33.10 |       |        |  | 48,314 |        |   | $ | 42.00 |      
|                                 | Granted   |        |         | 39,065   |        |   |       | 19.12  |          |  |         | 60,036 |  |          |       | 10.28 |        |  |        | 39,322 |   |   |       | 21.35 | 
|                                 | Forfeited |        |         | (18,877  | )      |   |       | 35.18  |          |  |         |       |  |          |       |      |        |  |        | (5,172 | ) |   |       | 29.35 | 
|                                 | Exercised |        |         | (20,683  | )      |   |       | 11.23  |          |  |         |       |  |          |       |      |        |  |        |       |   |   |       |      | 
|                                 |           |        |         |          |        |   |       |        |          |  |         |        |  |          |       |       |        | 
|Outstanding at end of year       |           |        | 142,005 |          |        |   | 22.41 |        |          |  | 142,500 |        |  |          | 22.76 |       |        |  | 82,464 |        |   |   | 33.10 |      
|                                 |           |        |         |          |        |   |       |        |          |  |         |        |  |          |       |       |        | 
|Exercisable at end of year       |           |        | 112,714 |          |        |   | 23.45 |        |          |  | 95,009  |        |  |          | 25.68 |       |        |  | 61,954 |        |   |   | 31.80 |      
|                                 |           |        |         |          |        |   |       |        |          |  |         |        |  |          |       |       |        | 




|  |                 
|- | ----------------
|* | 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 |  |                     |  | 8.3 |          |  | $ | 11.16       |  |  |          | 51,699 |  |  | $ | 12.10 | 
|$15.71 - $26.20.        |  |                     | 44,018 |  |                     |  | 8.7 |          |  |   | 21.52       |  |  |          | 27,376 |  |  |   | 23.18 | 
|$26.21 - $40.00.        |  |                     | 18,654 |  |                     |  | 6.5 |          |  |   | 30.31       |  |  |          | 18,654 |  |  |   | 30.31 | 
|$40.01 - $56.00.        |  |                     | 4,460  |  |                     |  | 5.9 |          |  |   | 49.31       |  |  |          | 4,460  |  |  |   | 49.31 | 
|$56.01 - $77.05.        |  |                     | 10,525 |  |                     |  | 5.3 |          |  |   | 63.03       |  |  |          | 10,525 |  |  |   | 63.03 | 




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



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



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|                                 |           |        |           |          |        |   |       |        |          |  |           |          |   |          |       |       |        |  |           |           |   |   |       |       | 
|-------------------------------- | --------- | ------ | --------- | -------- | ------ | - | ----- | ------ | -------- |  | --------- | -------- | - | -------- | ----- | ----- | ------ |  | --------- | --------- | - | - | ----- | ----- | 
|                                 |           | 2004   |           |          | 2003   |   |       | 2002   |         
|                                 |           |        |           |          |        |   |       |        |         
|                                 |           |        |           | Exercise |        |   |       |        | Exercise |  |           |          |   | Exercise |      
|                                 |           | Shares |           |          | Price* |   |       | Shares |          |  | Price*    |          |   | Shares   |       |       | Price* | 
|                                 |           |        |           |          |        |   |       |        |          |  |           |          |   |          |       |       |        | 
|Outstanding at beginning of year |           |        | 2,719,842 |          |        | $ | 32.92 |        |          |  | 3,219,995 |          |   | $        | 34.35 |       |        |  | 1,907,182 |           |   | $ | 48.65 |      
|                                 | Granted   |        |           | 20,000   |        |   |       | 18.21  |          |  |           | 3,000    |   |          |       | 19.25 |        |  |           | 1,424,140 |   |   |       | 16.20 | 
|                                 | Exercised |        |           | (62,690  | )      |   |       | 16.18  |          |  |           |         |   |          |       |      |        |  |           |          |   |   |       |      | 
|                                 | Forfeited |        |           | (212,577 | )      |   |       | 51.80  |          |  |           | (503,153 | ) |          |       | 41.97 |        |  |           | (111,327  | ) |   |       | 46.60 | 
|                                 |           |        |           |          |        |   |       |        |          |  |           |          |   |          |       |       |        | 
|Outstanding at end of year       |           |        | 2,464,575 |          |        |   | 33.68 |        |          |  | 2,719,842 |          |   |          | 32.94 |       |        |  | 3,219,995 |           |   |   | 34.35 |      
|                                 |           |        |           |          |        |   |       |        |          |  |           |          |   |          |       |       |        | 
|Exercisable at end of year       |           |        | 1,655,585 |          |        |   | 39.38 |        |          |  | 1,216,093 |          |   |          | 42.43 |       |        |  | 774,780   |           |   |   | 57.10 |      
|                                 |           |        |           |          |        |   |       |        |          |  |           |          |   |          |       |       |        | 




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



|                        |  |                     |           |  |                     |  |     |          |  |   |             |  |  |          |         |  |  |   |       | 
|----------------------- |  | ------------------- | --------- |  | ------------------- |  | --- | -------- |  | - | ----------- |  |  | -------- | ------- |  |  | - | ----- | 
|                        |  | Options Outstanding |           |  | Options Exercisable | 
|                        |  |                     |           |  |                     | 
|                        |  | Shares              |           |  | Contractual         |  |     | Exercise |  |   | Shares      |  |  | Exercise |        
|Range of Exercise Price |  | Outstanding         |           |  | Life*               |  |     | Price*   |  |   | Exercisable |  |  | Price*   |        
|                        |  |                     |           |  |                     |  |     |          |  |   |             |  |  |          |        
|$15.20 - $26.20.        |  |                     | 1,136,935 |  |                     |  | 7.6 |          |  | $ | 16.22       |  |  |          | 543,255 |  |  | $ | 16.19 | 
|$26.21 - $40.00.        |  |                     | 722,500   |  |                     |  | 6.6 |          |  |   | 31.70       |  |  |          | 543,300 |  |  |   | 31.70 | 
|$40.01 - $77.05.        |  |                     | 605,140   |  |                     |  | 5.1 |          |  |   | 68.85       |  |  |          | 569,030 |  |  |   | 68.85 | 




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





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| |                          
| | -------------------------
| | 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  |  |             |  | 24,900 |           |  |  | (22,300     | ) |  |             |  |  |  |  | 55,900  |  |  |  | 55,900  | 
|2/18/2000     |  |               | 33.00  |  |          |                | 30.63  |         |         |  | 28.12   |  |  |           | 102,500 |  |             |  | 72,000 |           |  |  | (8,000      | ) |  |             |  |  |  |  | 166,500 |  |  |  | 166,500 | 
|2/27/2001     |  |               | 26.77  |  |          |                | 27.07  |         |         |  | 24.85   |  |  |           | 50,000  |  |             |  | 30,000 |           |  |  |            |   |  |             |  |  |  |  | 80,000  |  |  |  | 60,000  | 
|10/31/2001    |  |               | 18.06  |  |          |                | 18.00  |         |         |  | 16.52   |  |  |           | 249,000 |  |             |  | 81,000 |           |  |  | (68,000     | ) |  |             |  |  |  |  | 262,000 |  |  |  | 196,500 | 
|9/12/2002     |  |               | 11.88  |  |          |                | 11.16  |         |         |  | 10.39   |  |  |           | 513,000 |  |             |  | 76,000 |           |  |  | (90,000     | ) |  |             |  |  |  |  | 499,000 |  |  |  | 249,500 | 





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











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





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





|                                          |                       |       |            |            |          |  |       |          |  |  |              |        |  |         |        |        |            |  |        |           |  |  |            |        |  |           |        |        |       |  |       |       |  |  |        |        |  |  |         |         | 
|----------------------------------------- | --------------------- | ----- | ---------- | ---------- | -------- |  | ----- | -------- |  |  | ------------ | ------ |  | ------- | ------ | ------ | ---------- |  | ------ | --------- |  |  | ---------- | ------ |  | --------- | ------ | ------ | ----- |  | ----- | ----- |  |  | ------ | ------ |  |  | ------- | ------- | 
|                                          |                       | Grant |            |            | Exercise |  |       | Alfredo  |  |  | Katherine M. |        |  | Kenneth |        |        | James L.C. |  |        | Edward A. |  |  | Michael E. |        |  | Paolo     |        |        |      
|                                          |                       | Date  |            |            | Price    |  |       | Diana(1) |  |  | Hudson       |        |  | Lipper  |        |        | Provan     |  |        | Hiler     |  |  | Murphy     |        |  | Monferino |        |        | Total | 
|                                          |                       |       |            |            |          |  |       |          |  |  |              |        |  |         |        |        |            |  |        |           |  |  |            |        |  |           |        |        |       | 
|Opening Balance as of
    January 1, 2004 |                       |       |            |            |          |  |       |          |  |  |              |        |  |         |        |        |            |  |        |           |  |  |            |        |  |           |        |        |       |  |       |       |  |  |        |        |  |  |         |        
|                                          | (automatic option)    |       |            | 11/12/1999 |          |  | $     | 77.05    |  |  |              | 750    |  |         |        | 750    |            |  |        | 750       |  |  |            | 750    |  |           |        |       |       |  |       |      |  |  |        |       |  |  |         | 3,000   | 
|                                          |                       |       | 2/29/2000  |            |          |  | 56.09 |          |  |  | 624          |        |  |         | 624    |        |            |  | 713    |           |  |  | 624        |        |  |           |       |        |       |  |      |       |  |  |       |        |  |  | 2,585   |        
|                                          |                       |       | 4/18/2000  |            |          |  | 68.85 |          |  |  |             |        |  |         |       |        |            |  |       |           |  |  |           |        |  |           |       |        |       |  |      |       |  |  | 45,000 |        |  |  | 45,000  |        
|                                          |                       |       | 6/6/2000   |            |          |  | 60.63 |          |  |  | 577          |        |  |         | 577    |        |            |  | 660    |           |  |  | 577        |        |  |           |       |        |       |  |      |       |  |  |       |        |  |  | 2,391   |        
|                                          | (automatic option)    |       |            | 6/7/2000   |          |  |       | 60.00    |  |  |              | 1,500  |  |         |        | 1,500  |            |  |        | 1,500     |  |  |            | 1,500  |  |           |        |       |       |  |       |      |  |  |        |       |  |  |         | 6,000   | 
|                                          |                       |       | 9/4/2000   |            |          |  | 49.55 |          |  |  | 706          |        |  |         | 706    |        |            |  | 807    |           |  |  | 706        |        |  |           |       |        |       |  |      |       |  |  |       |        |  |  | 2,925   |        
|                                          |                       |       | 12/3/2000  |            |          |  | 49.08 |          |  |  | 713          |        |  |         | 713    |        |            |  | 815    |           |  |  | 713        |        |  |           |       |        |       |  |      |       |  |  |       |        |  |  | 2,954   |        
|                                          |                       |       | 3/2/2001   |            |          |  | 38.63 |          |  |  | 906          |        |  |         | 906    |        |            |  | 1,036  |           |  |  | 906        |        |  |           |       |        |       |  |      |       |  |  |       |        |  |  | 3,754   |        
|                                          |                       |       | 5/2/2001   |            |          |  | 26.90 |          |  |  | 1,301        |        |  |         | 1,301  |        |            |  | 1,487  |           |  |  | 1,301      |        |  |           |       |        |       |  |      |       |  |  |       |        |  |  | 5,390   |        
|                                          | (automatic option)    |       |            | 5/3/2001   |          |  |       | 27.88    |  |  |              | 1,500  |  |         |        | 1,500  |            |  |        | 1,500     |  |  |            | 1,500  |  |           |        |       |       |  |       |      |  |  |        |       |  |  |         | 6,000   | 
|                                          |                       |       | 7/31/2001  |            |          |  | 36.35 |          |  |  | 963          |        |  |         | 963    |        |            |  | 1,101  |           |  |  | 963        |        |  |           |       |        |       |  |      |       |  |  |       |        |  |  | 3,990   |        
|                                          |                       |       | 10/29/2001 |            |          |  | 26.25 |          |  |  | 1,333        |        |  |         | 1,333  |        |            |  | 1,524  |           |  |  | 1,333      |        |  |           |       |        |       |  |      |       |  |  |       |        |  |  | 5,523   |        
|                                          |                       |       | 1/27/2002  |            |          |  | 29.48 |          |  |  | 1,188        |        |  |         | 1,188  |        |            |  | 1,357  |           |  |  | 1,188      |        |  |           |       |        |       |  |      |       |  |  |       |        |  |  | 4,921   |        
|                                          |                       |       | 5/6/2002   |            |          |  | 26.60 |          |  |  | 1,316        |        |  |         | 1,436  |        |            |  | 1,368  |           |  |  | 1,316      |        |  |           |       |        |       |  |      |       |  |  |       |        |  |  | 5,436   |        
|                                          | (automatic option)    |       |            | 5/7/2002   |          |  |       | 26.45    |  |  |              | 1,500  |  |         |        | 1,500  |            |  |        | 1,500     |  |  |            | 1,500  |  |           |        | 1,500  |       |  |       |      |  |  |        |       |  |  |         | 7,500   | 
|                                          |                       |       | 7/22/2002  |            |          |  | 16.18 |          |  |  |             |        |  |         |       |        |            |  |       |           |  |  |           |        |  |           |       |        |       |  |      |       |  |  | 34,000 |        |  |  | 34,000  |        
|                                          |                       |       | 8/2/2002   |            |          |  | 15.23 |          |  |  | 2,299        |        |  |         | 2,627  |        |            |  | 2,299  |           |  |  |           |        |  |           | 2,299  |        |       |  |      |       |  |  |       |        |  |  | 9,524   |        
|                                          | (automatic option)    |       |            | 9/3/2002   |          |  |       | 18.53    |  |  |              |       |  |         |        |       |            |  |        |          |  |  |            |       |  |           |        |       |       |  |       | 1,011 |  |  |        |       |  |  |         | 1,011   | 
|                                          |                       |       | 11/4/2002  |            |          |  | 15.18 |          |  |  | 2,307        |        |  |         | 2,636  |        |            |  | 2,307  |           |  |  |           |        |  |           | 2,307  |        |       |  |      |       |  |  |       |        |  |  | 9,557   |        
|                                          |                       |       | 1/31/2003  |            |          |  | 15.70 |          |  |  | 2,229        |        |  |         | 2,547  |        |            |  | 2,229  |           |  |  |           |        |  |           | 2,229  |        |       |  |      |       |  |  |       |        |  |  | 9,234   |        
|                                          |                       |       | 5/7/2003   |            |          |  | 9.15  |          |  |  | 3,827        |        |  |         | 4,374  |        |            |  | 3,827  |           |  |  |           |        |  |           | 3,827  |        |       |  |      |       |  |  |       |        |  |  | 15,855  |        
|                                          | (automatic option)    |       |            | 5/8/2003   |          |  |       | 9.23     |  |  |              | 6,194  |  |         |        | 6,212  |            |  |        | 6,380     |  |  |            | 6,194  |  |           |        | 4,000  |       |  |       | 4,000 |  |  |        |       |  |  |         | 32,980  | 
|                                          |                       |       | 8/4/2003   |            |          |  | 9.90  |          |  |  |             |        |  |         | 1,136  |        |            |  |       |           |  |  |           |        |  |           |       |        |       |  |      |       |  |  |       |        |  |  | 1,136   |        
|                                          |                       |       | 11/3/2003  |            |          |  | 13.49 |          |  |  |             |        |  |         | 834    |        |            |  |       |           |  |  |           |        |  |           |       |        |       |  |      |       |  |  |       |        |  |  | 834     |        
|                                          |                       |       |            |            |          |  |       |          |  |  |              |        |  |         |        |        |            |  |        |           |  |  |            |        |  |           |        |        |       | 
|Opening Total                             |                       |       |            |            |          |  |       |          |  |  | 31,733       |        |  |         | 35,363 |        |            |  | 33,160 |           |  |  | 21,071     |        |  |           | 16,162 |        |       |  | 5,011 |       |  |  | 79,000 |        |  |  | 221,500 |        
|                                          |                       |       |            |            |          |  |       |          |  |  |              |        |  |         |        |        |            |  |        |           |  |  |            |        |  |           |        |        |       | 
|                                          | Vested/ Not Exercised |       |            |            |          |  |       |          |  |  |              | 22,539 |  |         |        | 26,151 |            |  |        | 23,780    |  |  |            | 11,877 |  |           |        | 10,662 |       |  |       |      |  |  |        | 45,796 |  |  |         | 140,805 | 
|                                          | Not Vested            |       |            |            |          |  |       |          |  |  |              | 9,194  |  |         |        | 9,212  |            |  |        | 9,380     |  |  |            | 9,194  |  |           |        | 5,500  |       |  |       | 5,011 |  |  |        | 33,204 |  |  |         | 80,695  | 

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|                                    |                       |       |            |           |          |   |       |          |  |  |              |       |  |         |       |        |            |  |       |           |  |  |            |        |  |           |       |        |       |  |   |       |  |  |   |        |  |  |        |         | 
|----------------------------------- | --------------------- | ----- | ---------- | --------- | -------- | - | ----- | -------- |  |  | ------------ | ----- |  | ------- | ----- | ------ | ---------- |  | ----- | --------- |  |  | ---------- | ------ |  | --------- | ----- | ------ | ----- |  | - | ----- |  |  | - | ------ |  |  | ------ | ------- | 
|                                    |                       | Grant |            |           | Exercise |   |       | Alfredo  |  |  | Katherine M. |       |  | Kenneth |       |        | James L.C. |  |       | Edward A. |  |  | Michael E. |        |  | Paolo     |       |        |      
|                                    |                       | Date  |            |           | Price    |   |       | Diana(1) |  |  | Hudson       |       |  | Lipper  |       |        | Provan     |  |       | Hiler     |  |  | Murphy     |        |  | Monferino |       |        | Total | 
|                                    |                       |       |            |           |          |   |       |          |  |  |              |       |  |         |       |        |            |  |       |           |  |  |            |        |  |           |       |        |       | 
|Options Granted in 2004.            |                       |       | 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  |       |  |   | 4,000 |  |  |   |       |  |  |        | 24,000  | 
|                                    |                       |       | 7/24/2004  |           |          |   | 20.44 |          |  |  |             |       |  |         |      |        |            |  | 1,957 |           |  |  |           |        |  |           |      |        |       |  |  |       |  |  |  |        |  |  | 1,957  |        
|                                    |                       |       | 10/22/2004 |           |          |   | 17.41 |          |  |  |             |       |  |         |      |        |            |  | 2,298 |           |  |  |           |        |  |           |      |        |       |  |  |       |  |  |  |        |  |  | 2,298  |        
|                                    |                       |       |            |           |          |   |       |          |  |  |              |       |  |         |       |        |            |  |       |           |  |  |            |        |  |           |       |        |       | 
|                                    | 2004 Sub-Total        |       |            |           |          |   |       |          |  |  |              | 4,000 |  |         |       | 14,810 |            |  |       | 8,255     |  |  |            | 4,000  |  |           |       | 4,000  |       |  |   | 4,000 |  |  |   |       |  |  |        | 39,065  | 
|Options Exercised in 2004.          |                       |       | 5/21/2004  |           |          |   | 9.15  |          |  |  |             |       |  |         |      |        |            |  |      |           |  |  |           |        |  |           | 3,827 |        |       |  |  |       |  |  |  |        |  |  | 3,827  |        
|                                    |                       |       | 7/28/2004  |           |          |   | 15.23 |          |  |  | 2,299        |       |  |         |      |        |            |  |      |           |  |  |           |        |  |           |      |        |       |  |  |       |  |  |  |        |  |  | 2,299  |        
|                                    |                       |       | 7/28/2004  |           |          |   | 15.18 |          |  |  | 2,307        |       |  |         |      |        |            |  |      |           |  |  |           |        |  |           |      |        |       |  |  |       |  |  |  |        |  |  | 2,307  |        
|                                    |                       |       | 7/28/2004  |           |          |   | 15.70 |          |  |  | 2,229        |       |  |         |      |        |            |  |      |           |  |  |           |        |  |           |      |        |       |  |  |       |  |  |  |        |  |  | 2,229  |        
|                                    |                       |       | 7/28/2004  |           |          |   | 9.15  |          |  |  | 3,827        |       |  |         |      |        |            |  |      |           |  |  |           |        |  |           |      |        |       |  |  |       |  |  |  |        |  |  | 3,827  |        
|                                    |                       |       | 7/28/2004  |           |          |   | 9.23  |          |  |  | 6,194        |       |  |         |      |        |            |  |      |           |  |  |           |        |  |           |      |        |       |  |  |       |  |  |  |        |  |  | 6,194  |        
|                                    |                       |       |            |           |          |   |       |          |  |  |              |       |  |         |       |        |            |  |       |           |  |  |            |        |  |           |       |        |       | 
|Total Exercised                     |                       |       |            |           |          |   |       |          |  |  | 16,856       |       |  |         |      |        |            |  |      |           |  |  |           |        |  |           | 3,827 |        |       |  |  |       |  |  |  |        |  |  | 20,683 |        
|                                    |                       |       |            |           |          |   |       |          |  |  |              |       |  |         |       |        |            |  |       |           |  |  |            |        |  |           |       |        |       | 
|Options Terminated in 2004.         |                       |       | 5/6/2004   |           |          |   |       |          |  |  | 4,000        |       |  |         |      |        |            |  |      |           |  |  |           |        |  |           |      |        |       |  |  |       |  |  |  |        |  |  | 4,000  |        
|                                    |                       |       | 11/6/2004  |           |          |   |       |          |  |  | 14,877       |       |  |         |      |        |            |  |      |           |  |  |           |        |  |           |      |        |       |  |  |       |  |  |  |        |  |  | 14,877 |        
|                                    |                       |       |            |           |          |   |       |          |  |  |              |       |  |         |       |        |            |  |       |           |  |  |            |        |  |           |       |        |       | 
|Total Terminated                    |                       |       |            |           |          |   |       |          |  |  | 18,877       |       |  |         |      |        |            |  |      |           |  |  |           |        |  |           |      |        |       |  |  |       |  |  |  |        |  |  | 18,877 |        
|                                    |                       |       |            |           |          |   |       |          |  |  |              |       |  |         |       |        |            |  |       |           |  |  |            |        |  |           |       |        |       | 
|Closing Balance as 12/31/04 Closing |                       |       |            |           |          |   |       |          |  |  |              |       |  |         |       |        |            |  |       |           |  |  |            |        |  |           |       |        |       |  |   |       |  |  |   |        |  |  |        |        
|                                    | Total                 |       |            |           |          |   |       |          |  |  |              |      |  |         |       | 50,173 |            |  |       | 41,415    |  |  |            | 25,071 |  |           |       | 16,335 |       |  |   | 9,011 |  |  |   | 79,000 |  |  |        | 221,005 | 
|                                    |                       |       |            |           |          |   |       |          |  |  |              |       |  |         |       |        |            |  |       |           |  |  |            |        |  |           |       |        |       | 
|                                    | Vested/ Not Exercised |       |            |           |          |   |       |          |  |  |              |      |  |         |       | 38,461 |            |  |       | 29,535    |  |  |            | 13,377 |  |           |       | 6,835  |       |  |   |      |  |  |   | 54,296 |  |  |        | 142,504 | 
|                                    |                       |       |            |           |          |   |       |          |  |  |              |       |  |         |       |        |            |  |       |           |  |  |            |        |  |           |       |        |       | 
|                                    | Not Vested            |       |            |           |          |   |       |          |  |  |              |      |  |         |       | 11,712 |            |  |       | 11,880    |  |  |            | 11,694 |  |           |       | 9,500  |       |  |   | 9,011 |  |  |   | 24,704 |  |  |        | 78,501  | 
|                                    |                       |       |            |           |          |   |       |          |  |  |              |       |  |         |       |        |            |  |       |           |  |  |            |        |  |           |       |        |       | 






|    |                                                   
|--- | --------------------------------------------------
|(1) | Mr. Diana, a former director, retired in May 2004.






Item 7. Major Shareholders and Related Party
Transactions




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

 


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|                   |  |             |             |  |            |  |     |  
|------------------ |  | ----------- | ----------- |  | ---------- |  | --- | -
|                   |  | Number of   |             |  |           
|                   |  | Outstanding |             |  | Percentage | 
|                   |  | Common      |             |  | Ownership  | 
|Shareholders       |  | Shares      |             |  | Interest   | 
|                   |  |             |             |  |            | 
|Fiat Netherlands   |  |             | 111,866,037 |  |            |  | 83  | %
|Other shareholders |  |             | 22,155,520  |  |            |  | 17  |  
|                   |  |             |             |  |            | 
|Total              |  |             | 134,021,557 |  |            |  | 100 | %
|                   |  |             |             |  |            | 







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









93



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94



---



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






Item 8. Financial Information




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





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






Item 9. The Offer and Listing




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





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

|                             |                |      |       |       |     |   |       |       | 
|---------------------------- | -------------- | ---- | ----- | ----- | --- | - | ----- | ----- | 
|                             |                | High |       |       | Low |  
|                             |                |      |       |       |     |  
|Most recent six months:      |                |      |       |       |     |   |       |      
|                             | March 2005     |      | $     | 18.85 |     |   | $     | 17.94 | 
|                             | February 2005  |      |       | 18.67 |     |   |       | 16.70 | 
|                             | January 2005   |      |       | 19.06 |     |   |       | 17.75 | 
|                             | December 2004  |      |       | 19.38 |     |   |       | 18.05 | 
|                             | November 2004  |      |       | 19.09 |     |   |       | 16.22 | 
|                             | October 2004   |      |       | 19.90 |     |   |       | 16.95 | 
|Year ended December 31, 2004 |                |      |       |       |     |   |       |      
|                             | First Quarter  |      | $     | 18.62 |     |   | $     | 16.15 | 
|                             | Second Quarter |      |       | 21.09 |     |   |       | 17.99 | 
|                             | Third Quarter  |      |       | 20.80 |     |   |       | 16.55 | 
|                             | Fourth Quarter |      |       | 19.90 |     |   |       | 16.22 | 
|                             | Full Year      |      |       | 21.09 |     |   |       | 16.15 | 
|Year ended December 31, 2003 |                |      |       |       |     |   |       |      
|                             | First Quarter  |      | $     | 19.00 |     |   | $     | 5.95  | 
|                             | Second Quarter |      |       | 10.05 |     |   |       | 7.25  | 
|                             | Third Quarter  |      |       | 14.42 |     |   |       | 8.34  | 
|                             | Fourth Quarter |      |       | 17.02 |     |   |       | 12.47 | 
|                             | Full Year      |      |       | 19.00 |     |   |       | 5.95  | 
|2002                         |                | $    | 32.15 |       |     | $ | 14.00 |      
|2001                         |                | $    | 48.75 |       |     | $ | 25.50 |      
|2000                         |                | $    | 74.05 |       |     | $ | 37.80 |      





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





| |            
| | -----------
| | 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


 


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Dividends








Shareholder Meetings and Voting Rights






97



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##### Table of Contents









Board of Directors; Adoption of Annual Accounts










Liquidation Rights




Issue of Shares; Preference Rights




98



---



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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                                                                                             
|
| |  | 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




99



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Disclosure of Holdings


2 3


Limitations on Right to Hold or Vote Shares






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



1 4 1 4 1 4 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.                 

1 4


100



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





| |             
| | ------------
| | 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 U.S. person.



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



101



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





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



Netherlands Taxation






102



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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 the
    total issued and our 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 the total
    issued and our outstanding capital (or the issued and
    outstanding capital of any class of our shares) or the ownership
    of profit participating certificates that relate to 5% or more
    of our annual profit or to 5% or more of our 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                             



103



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





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | he derives profits 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 or 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.                                                                                                                                                                                                                                                                                                                                                                                          





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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.



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





104



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| |          
| | ---------
| | 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                                                                                                                           
|
| |  | 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.                                                                  



105



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





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





| |                                 
| | --------------------------------
| | U.S. Withholding Tax on Interest





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





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





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



106



---



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






Item 11. Quantitative and Qualitative Disclosures
About Market Risk






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











107



---



##### Table of Contents







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









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





108



---



##### Table of Contents









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





| |                                                    
| | ---------------------------------------------------
| | Changes in Market Risk Exposure as Compared to 2003






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


 




109



---



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Item 15. Controls and Procedures







Item 16A. Audit Committee Financial Expert







Item 16B. Code of Ethics


wwinvestorrelations@cnh.com





Item 16C. Principal Accountant Fees and Services




|                       |  |      |           |  |      |   |           | 
|---------------------- |  | ---- | --------- |  | ---- | - | --------- | 
|                       |  | 2004 |           |  | 2003 |  
|                       |  |      |           |  |      |  
|Audit Services         |  | $    | 4,208,000 |  |      | $ | 3,943,000 | 
|Audit-Related Services |  |      | 758,000   |  |      |   | 786,000   | 
|Tax Services           |  |      | 1,100,000 |  |      |   | 1,386,000 | 
|All Other Services     |  |      | 80,000    |  |      |   | 67,000    | 
|                       |  |      |           |  |      |  
|Total                  |  | $    | 6,146,000 |  |      | $ | 6,182,000 | 
|                       |  |      |           |  |      |  



Audit Committees pre-approval policies and
procedures




110



---



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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




111



---



##### Table of Contents






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, 2004, 2003, and 2002                     |  |      | F-3 | 
|Consolidated balance sheets as of December 31, 2004 and 2003                                                        |  |      | F-4 | 
|Consolidated statements of cash flows for the years ended
    December 31, 2004, 2003 and 2002                      |  |      | F-5 | 
|Consolidated statements of changes in shareholders equity
    for the years ended December 31, 2004, 2003 and 2002 |  |      | F-6 | 
|Notes to consolidated financial statements                                                                          |  |      | F-7 | 




Item 19. Exhibits




112



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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, 2004, 2003, and 2002                     |  |      | F-3 | 
|Consolidated balance sheets as of December 31, 2004 and 2003                                                        |  |      | F-4 | 
|Consolidated statements of cash flows for the years ended
    December 31, 2004, 2003 and 2002                      |  |      | F-5 | 
|Consolidated statements of changes in shareholders equity
    for the years ended December 31, 2004, 2003 and 2002 |  |      | F-6 | 
|Notes to consolidated financial statements                                                                          |  |      | F-7 | 

F-1



---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM














/s/ Deloitte & Touche
LLP






F-2



---



##### Table of Contents



CNH GLOBAL N.V.


CONSOLIDATED STATEMENTS OF OPERATIONS


For the Years Ended December 31, 2004, 2003, and 2002


(and Supplemental Information)


|                                                                                                                                                                                     |                                             |                                      |        |        |                      |   |        |                          |  |   |        |       |  |      |        |        |      |   |        |        |  |   |       |       |  |      |     |     |  |   |     |     |  |   |     |     | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------- | ------------------------------------ | ------ | ------ | -------------------- | - | ------ | ------------------------ |  | - | ------ | ----- |  | ---- | ------ | ------ | ---- | - | ------ | ------ |  | - | ----- | ----- |  | ---- | --- | --- |  | - | --- | --- |  | - | --- | --- | 
|                                                                                                                                                                                     |                                             |                                      |        |        |                      |   |        | Supplemental Information | 
|                                                                                                                                                                                     |                                             |                                      |        |        |                      |   |        |                          | 
|                                                                                                                                                                                     |                                             | Consolidated                         |        |        | Equipment Operations |   |        | Financial Services       | 
|                                                                                                                                                                                     |                                             |                                      |        |        |                      |   |        |                          | 
|                                                                                                                                                                                     |                                             | 2004                                 |        |        | 2003                 |   |        | 2002                     |  |   | 2004   |       |  | 2003 |        |        | 2002 |   |        | 2004   |  |   | 2003  |       |  | 2002 |    
|                                                                                                                                                                                     |                                             |                                      |        |        |                      |   |        |                          |  |   |        |       |  |      |        |        |      |   |        |        |  |   |       |       |  |      |    
|                                                                                                                                                                                     |                                             | (in millions, except per share data) |       
|Revenues:                                                                                                                                                                            |                                             |                                      |        |        |                      |   |        |                          |  |   |        |       |  |      |        |        |      |   |        |        |  |   |       |       |  |      |     |     |  |   |     |     |  |   |     |    
|                                                                                                                                                                                     | Net sales                                   |                                      | $      | 11,545 |                      |   | $      | 10,069                   |  |   | $      | 9,331 |  |      | $      | 11,545 |      |   | $      | 10,069 |  |   | $     | 9,331 |  |      | $   |    |  |   | $   |    |  |   | $   |    | 
|                                                                                                                                                                                     | Finance and interest income                 |                                      |        | 634    |                      |   |        | 597                      |  |   |        | 609   |  |      |        | 82     |      |   |        | 83     |  |   |       | 100   |  |      |     | 672 |  |   |     | 621 |  |   |     | 641 | 
|                                                                                                                                                                                     |                                             |                                      |        |        |                      |   |        |                          |  |   |        |       |  |      |        |        |      |   |        |        |  |   |       |       |  |      |    
|                                                                                                                                                                                     |                                             |                                      | 12,179 |        |                      |   | 10,666 |                          |  |   | 9,940  |       |  |      | 11,627 |        |      |   | 10,152 |        |  |   | 9,431 |       |  |      | 672 |     |  |   | 621 |     |  |   | 641 |    
|Costs and Expenses:                                                                                                                                                                  |                                             |                                      |        |        |                      |   |        |                          |  |   |        |       |  |      |        |        |      |   |        |        |  |   |       |       |  |      |     |     |  |   |     |     |  |   |     |    
|                                                                                                                                                                                     | Cost of goods sold                          |                                      |        | 9,782  |                      |   |        | 8,590                    |  |   |        | 7,902 |  |      |        | 9,782  |      |   |        | 8,590  |  |   |       | 7,902 |  |      |     |    |  |   |     |    |  |   |     |    | 
|                                                                                                                                                                                     | Selling, general and administrative         |                                      |        | 1,110  |                      |   |        | 1,042                    |  |   |        | 1,094 |  |      |        | 929    |      |   |        | 839    |  |   |       | 884   |  |      |     | 181 |  |   |     | 203 |  |   |     | 210 | 
|                                                                                                                                                                                     | Research, development and engineering       |                                      |        | 267    |                      |   |        | 259                      |  |   |        | 283   |  |      |        | 267    |      |   |        | 259    |  |   |       | 283   |  |      |     |    |  |   |     |    |  |   |     |    | 
|                                                                                                                                                                                     | Restructuring                               |                                      |        | 104    |                      |   |        | 271                      |  |   |        | 51    |  |      |        | 102    |      |   |        | 268    |  |   |       | 50    |  |      |     | 2   |  |   |     | 3   |  |   |     | 1   | 
|                                                                                                                                                                                     | Interest expense  Fiat affiliates          |                                      |        | 88     |                      |   |        | 113                      |  |   |        | 236   |  |      |        | 63     |      |   |        | 85     |  |   |       | 198   |  |      |     | 25  |  |   |     | 28  |  |   |     | 38  | 
|                                                                                                                                                                                     | Interest expense  other                    |                                      |        | 404    |                      |   |        | 368                      |  |   |        | 318   |  |      |        | 255    |      |   |        | 236    |  |   |       | 192   |  |      |     | 183 |  |   |     | 182 |  |   |     | 204 | 
|                                                                                                                                                                                     | Interest compensation to Financial Services |                                      |        |       |                      |   |        |                         |  |   |        |      |  |      |        | 113    |      |   |        | 79     |  |   |       | 76    |  |      |     |    |  |   |     |    |  |   |     |    | 
|                                                                                                                                                                                     | Other, net                                  |                                      |        | 265    |                      |   |        | 241                      |  |   |        | 182   |  |      |        | 186    |      |   |        | 149    |  |   |       | 62    |  |      |     | 52  |  |   |     | 71  |  |   |     | 98  | 
|                                                                                                                                                                                     |                                             |                                      |        |        |                      |   |        |                          |  |   |        |       |  |      |        |        |      |   |        |        |  |   |       |       |  |      |    
|                                                                                                                                                                                     |                                             |                                      | 12,020 |        |                      |   | 10,884 |                          |  |   | 10,066 |       |  |      | 11,697 |        |      |   | 10,505 |        |  |   | 9,647 |       |  |      | 443 |     |  |   | 487 |     |  |   | 551 |    
|Income (loss) before taxes, minority interest, equity in
    income (loss) of unconsolidated subsidiaries and affiliates
    and cumulative effect of change in accounting principle |                                             |                                      | 159    |        |                      |   | (218   | )                        |  |   | (126   | )     |  |      | (70    | )      |      |   | (353   | )      |  |   | (216  | )     |  |      | 229 |     |  |   | 134 |     |  |   | 90  |    
|Income tax provision (benefit)                                                                                                                                                       |                                             |                                      | 39     |        |                      |   | (49    | )                        |  |   | (14    | )     |  |      | (39    | )      |      |   | (97    | )      |  |   | (48   | )     |  |      | 78  |     |  |   | 47  |     |  |   | 34  |    
|Minority interest                                                                                                                                                                    |                                             |                                      | 23     |        |                      |   | 7      |                          |  |   | 8      |       |  |      | 23     |        |      |   | 7      |        |  |   | 8     |       |  |      |    |     |  |   |    |     |  |   |    |    
|Equity in income (loss) of unconsolidated subsidiaries and
    affiliates:                                                                                                           |                                             |                                      |        |        |                      |   |        |                          |  |   |        |       |  |      |        |        |      |   |        |        |  |   |       |       |  |      |     |     |  |   |     |     |  |   |     |    
|                                                                                                                                                                                     | Financial Services                          |                                      |        | 8      |                      |   |        | 6                        |  |   |        | 4     |  |      |        | 159    |      |   |        | 93     |  |   |       | 60    |  |      |     | 8   |  |   |     | 6   |  |   |     | 4   | 
|                                                                                                                                                                                     | Equipment Operations                        |                                      |        | 20     |                      |   |        | 13                       |  |   |        | 15    |  |      |        | 20     |      |   |        | 13     |  |   |       | 15    |  |      |     |    |  |   |     |    |  |   |     |    | 
|                                                                                                                                                                                     |                                             |                                      |        |        |                      |   |        |                          |  |   |        |       |  |      |        |        |      |   |        |        |  |   |       |       |  |      |    
|Net income (loss) before cumulative effect of change in
    accounting principle                                                                                                     |                                             |                                      | 125    |        |                      |   | (157   | )                        |  |   | (101   | )     |  |      | 125    |        |      |   | (157   | )      |  |   | (101  | )     |  |      | 159 |     |  |   | 93  |     |  |   | 60  |    
|Cumulative effect of change in accounting principle, net of tax                                                                                                                      |                                             |                                      |       |        |                      |   |       |                          |  |   | (325   | )     |  |      |       |        |      |   |       |        |  |   | (325  | )     |  |      |    |     |  |   |    |     |  |   |    |    
|                                                                                                                                                                                     |                                             |                                      |        |        |                      |   |        |                          |  |   |        |       |  |      |        |        |      |   |        |        |  |   |       |       |  |      |    
|Net income (loss)                                                                                                                                                                    |                                             | $                                    | 125    |        |                      | $ | (157   | )                        |  | $ | (426   | )     |  | $    | 125    |        |      | $ | (157   | )      |  | $ | (426  | )     |  | $    | 159 |     |  | $ | 93  |     |  | $ | 60  |    
|                                                                                                                                                                                     |                                             |                                      |        |        |                      |   |        |                          |  |   |        |       |  |      |        |        |      |   |        |        |  |   |       |       |  |      |    
|Per Share Data:                                                                                                                                                                      |                                             |                                      |        |        |                      |   |        |                          |  |   |        |       |  |      |        |        |      |   |        |        |  |   |       |       |  |      |     |     |  |   |     |     |  |   |     |    
|Basic earnings (loss) per share before cumulative effect of
    change in accounting principle                                                                                       |                                             | $                                    | 0.94   |        |                      | $ | (1.19  | )                        |  | $ | (1.05  | )     |  |      |        |        |      |   |        |        |  |   |       |       |  |      |     |     |  |   |     |     |  |   |     |    
|Cumulative effect of change in accounting principle, net of tax                                                                                                                      |                                             |                                      |       |        |                      |   |       |                          |  |   | (3.35  | )     |  |      |        |        |      |   |        |        |  |   |       |       |  |      |     |     |  |   |     |     |  |   |     |    
|                                                                                                                                                                                     |                                             |                                      |        |        |                      |   |        |                          |  |   |        |       |  |      |        |        |      |   |        |        |  |   |       |       |  |      |    
|Basic earnings (loss) per share                                                                                                                                                      |                                             | $                                    | 0.94   |        |                      | $ | (1.19  | )                        |  | $ | (4.40  | )     |  |      |        |        |      |   |        |        |  |   |       |       |  |      |     |     |  |   |     |     |  |   |     |    
|                                                                                                                                                                                     |                                             |                                      |        |        |                      |   |        |                          |  |   |        |       |  |      |        |        |      |   |        |        |  |   |       |       |  |      |    
|Diluted earnings (loss) per share before cumulative effect
    of change in accounting principle                                                                                     |                                             | $                                    | 0.54   |        |                      | $ | (1.19  | )                        |  | $ | (1.05  | )     |  |      |        |        |      |   |        |        |  |   |       |       |  |      |     |     |  |   |     |     |  |   |     |    
|Cumulative effect of change in accounting principle, net of tax                                                                                                                      |                                             |                                      |       |        |                      |   |       |                          |  |   | (3.35  | )     |  |      |        |        |      |   |        |        |  |   |       |       |  |      |     |     |  |   |     |     |  |   |     |    
|                                                                                                                                                                                     |                                             |                                      |        |        |                      |   |        |                          |  |   |        |       |  |      |        |        |      |   |        |        |  |   |       |       |  |      |    
|Diluted earnings (loss) per share                                                                                                                                                    |                                             | $                                    | 0.54   |        |                      | $ | (1.19  | )                        |  | $ | (4.40  | )     |  |      |        |        |      |   |        |        |  |   |       |       |  |      |     |     |  |   |     |     |  |   |     |    
|                                                                                                                                                                                     |                                             |                                      |        |        |                      |   |        |                          |  |   |        |       |  |      |        |        |      |   |        |        |  |   |       |       |  |      |    



F-3



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##### Table of Contents



CNH GLOBAL N.V.


CONSOLIDATED BALANCE SHEETS


As of December 31, 2004 and 2003


(and Supplemental Information)


|                                        |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        |  |       |       |       |  |       |       |       | 
|--------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------- | ----- | --------- | ---------- | ------------------------ | --------- | -------- | ------ |  | ----- | ------ | ------ | ---- | ----- | ------ | ------ |  | ----- | ----- | ----- |  | ----- | ----- | ----- | 
|                                        |                                                                                                                                                                  |                                  |       |           |            | Supplemental Information |          
|                                        |                                                                                                                                                                  |                                  |       |           |            |                          |          
|                                        |                                                                                                                                                                  |                                  |       | Equipment |            |                          | Financial |         
|                                        |                                                                                                                                                                  | Consolidated                     |       |           | Operations |                          |           | Services |       
|                                        |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |       
|                                        |                                                                                                                                                                  | 2004                             |       |           | 2003       |                          |           | 2004     |        |  | 2003  |        |        | 2004 |       |        | 2003   | 
|                                        |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        | 
|                                        |                                                                                                                                                                  | (in millions, except share data) |      
|ASSETS                                  |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        |  |       |       |       |  |       |      
|Current Assets:                         |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        |  |       |       |       |  |       |      
|                                        | Cash and cash equivalents                                                                                                                                        |                                  | $     | 931       |            |                          | $         | 619      |        |  | $     | 637    |        |      | $     | 486    |        |  | $     | 294   |       |  | $     | 133   |      
|                                        | Deposits in Fiat affiliates cash management pools                                                                                                                |                                  |       | 1,151     |            |                          |           | 1,325    |        |  |       | 1,136  |        |      |       | 1,315  |        |  |       | 15    |       |  |       | 10    |      
|                                        | Accounts and notes receivable, net                                                                                                                               |                                  |       | 3,171     |            |                          |           | 3,797    |        |  |       | 1,493  |        |      |       | 2,077  |        |  |       | 1,772 |       |  |       | 2,074 |      
|                                        | Intersegment notes receivable                                                                                                                                    |                                  |       |          |            |                          |           |         |        |  |       | 414    |        |      |       | 312    |        |  |       | 24    |       |  |       |      |      
|                                        | Inventories, net                                                                                                                                                 |                                  |       | 2,515     |            |                          |           | 2,478    |        |  |       | 2,515  |        |      |       | 2,478  |        |  |       |      |       |  |       |      |      
|                                        | Deferred income taxes                                                                                                                                            |                                  |       | 374       |            |                          |           | 331      |        |  |       | 301    |        |      |       | 282    |        |  |       | 73    |       |  |       | 48    |      
|                                        | Prepayments and other                                                                                                                                            |                                  |       | 93        |            |                          |           | 80       |        |  |       | 91     |        |      |       | 76     |        |  |       | 2     |       |  |       | 4     |      
|                                        |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        | 
|                                        |                                                                                                                                                                  | Total current assets             |       |           | 8,235      |                          |           |          | 8,630  |  |       |        | 6,587  |      |       |        | 7,026  |  |       |       | 2,180 |  |       |       | 2,269 | 
|                                        |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        | 
|Long-term receivables                   |                                                                                                                                                                  |                                  | 2,724 |           |            |                          | 2,199     |          |        |  | 103   |        |        |      | 270   |        |        |  | 2,621 |       |       |  | 1,929 |      
|Intersegment long-term notes receivable |                                                                                                                                                                  |                                  |      |           |            |                          |          |          |        |  | 700   |        |        |      | 700   |        |        |  |      |       |       |  |      |      
|Property, plant and equipment, net      |                                                                                                                                                                  |                                  | 1,478 |           |            |                          | 1,528     |          |        |  | 1,470 |        |        |      | 1,518 |        |        |  | 8     |       |       |  | 10    |      
|Other Assets:                           |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        |  |       |       |       |  |       |      
|                                        | Investments in unconsolidated subsidiaries and affiliates                                                                                                        |                                  |       | 457       |            |                          |           | 429      |        |  |       | 373    |        |      |       | 364    |        |  |       | 84    |       |  |       | 65    |      
|                                        | Investment in Financial Services                                                                                                                                 |                                  |       |          |            |                          |           |         |        |  |       | 1,419  |        |      |       | 1,241  |        |  |       |      |       |  |       |      |      
|                                        | Equipment on operating leases, net                                                                                                                               |                                  |       | 215       |            |                          |           | 353      |        |  |       |       |        |      |       |       |        |  |       | 215   |       |  |       | 353   |      
|                                        | Goodwill                                                                                                                                                         |                                  |       | 2,402     |            |                          |           | 2,554    |        |  |       | 2,258  |        |      |       | 2,409  |        |  |       | 144   |       |  |       | 145   |      
|                                        | Intangible assets, net                                                                                                                                           |                                  |       | 834       |            |                          |           | 839      |        |  |       | 834    |        |      |       | 839    |        |  |       |      |       |  |       |      |      
|                                        | Other                                                                                                                                                            |                                  |       | 1,735     |            |                          |           | 1,195    |        |  |       | 1,250  |        |      |       | 1,015  |        |  |       | 526   |       |  |       | 287   |      
|                                        |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        | 
|                                        |                                                                                                                                                                  | Total other assets               |       |           | 5,643      |                          |           |          | 5,370  |  |       |        | 6,134  |      |       |        | 5,868  |  |       |       | 969   |  |       |       | 850   | 
|                                        |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        | 
|                                        |                                                                                                                                                                  | Total                            |       | $         | 18,080     |                          |           | $        | 17,727 |  |       | $      | 14,994 |      |       | $      | 15,382 |  |       | $     | 5,778 |  |       | $     | 5,058 | 
|                                        |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        | 
|LIABILITIES AND SHAREHOLDERS EQUITY    |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        |  |       |       |       |  |       |      
|Current Liabilities:                    |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        |  |       |       |       |  |       |      
|                                        | Current maturities of long-term debt  Fiat affiliates                                                                                                           |                                  | $     | 90        |            |                          | $         | 62       |        |  | $     | 19     |        |      | $     | 17     |        |  | $     | 71    |       |  | $     | 45    |      
|                                        | Current maturities of long-term debt  other                                                                                                                     |                                  |       | 796       |            |                          |           | 781      |        |  |       | 238    |        |      |       | 71     |        |  |       | 558   |       |  |       | 710   |      
|                                        | Short-term debt  Fiat affiliates                                                                                                                                |                                  |       | 672       |            |                          |           | 698      |        |  |       | 331    |        |      |       | 403    |        |  |       | 341   |       |  |       | 295   |      
|                                        | Short-term debt  other                                                                                                                                          |                                  |       | 1,385     |            |                          |           | 1,412    |        |  |       | 733    |        |      |       | 1,119  |        |  |       | 652   |       |  |       | 293   |      
|                                        | Intersegment short-term debt                                                                                                                                     |                                  |       |          |            |                          |           |         |        |  |       | 24     |        |      |       |       |        |  |       | 414   |       |  |       | 312   |      
|                                        | Accounts payable                                                                                                                                                 |                                  |       | 1,657     |            |                          |           | 1,635    |        |  |       | 1,679  |        |      |       | 1,836  |        |  |       | 66    |       |  |       | 139   |      
|                                        | Restructuring liability                                                                                                                                          |                                  |       | 47        |            |                          |           | 72       |        |  |       | 46     |        |      |       | 71     |        |  |       | 1     |       |  |       | 1     |      
|                                        | Other accrued liabilities                                                                                                                                        |                                  |       | 1,718     |            |                          |           | 1,628    |        |  |       | 1,521  |        |      |       | 1,484  |        |  |       | 204   |       |  |       | 157   |      
|                                        |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        | 
|                                        |                                                                                                                                                                  | Total current liabilities        |       |           | 6,365      |                          |           |          | 6,288  |  |       |        | 4,591  |      |       |        | 5,001  |  |       |       | 2,307 |  |       |       | 1,952 | 
|                                        |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        | 
|Long-term debt  Fiat affiliates        |                                                                                                                                                                  |                                  | 1,021 |           |            |                          | 1,669     |          |        |  | 873   |        |        |      | 1,363 |        |        |  | 148   |       |       |  | 306   |      
|Long-term debt  other                  |                                                                                                                                                                  |                                  | 2,999 |           |            |                          | 2,374     |          |        |  | 1,954 |        |        |      | 1,742 |        |        |  | 1,045 |       |       |  | 632   |      
|Intersegment long-term debt             |                                                                                                                                                                  |                                  |      |           |            |                          |          |          |        |  |      |        |        |      |      |        |        |  | 700   |       |       |  | 700   |      
|Other Liabilities:                      |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        |  |       |       |       |  |       |      
|                                        | Pension, postretirement and postemployment benefits                                                                                                              |                                  |       | 2,224     |            |                          |           | 2,040    |        |  |       | 2,204  |        |      |       | 2,021  |        |  |       | 20    |       |  |       | 19    |      
|                                        | Other                                                                                                                                                            |                                  |       | 336       |            |                          |           | 407      |        |  |       | 238    |        |      |       | 307    |        |  |       | 138   |       |  |       | 207   |      
|                                        |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        | 
|                                        |                                                                                                                                                                  | Total other liabilities          |       |           | 2,560      |                          |           |          | 2,447  |  |       |        | 2,442  |      |       |        | 2,328  |  |       |       | 158   |  |       |       | 226   | 
|                                        |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        | 
|Commitments and contingencies (Note 15) |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        |  |       |       |       |  |       |      
|Minority interest                       |                                                                                                                                                                  |                                  | 106   |           |            |                          | 75        |          |        |  | 105   |        |        |      | 74    |        |        |  | 1     |       |       |  | 1     |      
|Shareholders equity:                   |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        |  |       |       |       |  |       |      
|                                        | Preference shares,
    2.25 par
    value; authorized 200,000,000 shares in 2004 and 2003;
    issued 8,000,000 shares in 2004 and 2003                         |                                  |       | 19        |            |                          |           | 19       |        |  |       | 19     |        |      |       | 19     |        |  |       |      |       |  |       |      |      
|                                        | Common shares,
    2.25 par
    value; authorized 400,000,000 shares in 2004 and 2003,
    issued 133,937,488 shares in 2004 and
    132,913,714 shares in 2003 |                                  |       | 312       |            |                          |           | 309      |        |  |       | 312    |        |      |       | 309    |        |  |       | 170   |       |  |       | 135   |      
|                                        | Paid-in capital                                                                                                                                                  |                                  |       | 6,328     |            |                          |           | 6,310    |        |  |       | 6,328  |        |      |       | 6,310  |        |  |       | 1,186 |       |  |       | 947   |      
|                                        | Treasury stock, 154,813 shares in 2004 and
    116,706 shares in 2003, at cost                                                                                   |                                  |       | (8        | )          |                          |           | (7       | )      |  |       | (8     | )      |      |       | (7     | )      |  |       |      |       |  |       |      |      
|                                        | Retained earnings (deficit)                                                                                                                                      |                                  |       | (1,125    | )          |                          |           | (1,217   | )      |  |       | (1,125 | )      |      |       | (1,217 | )      |  |       | (12   | )     |  |       | 120   |      
|                                        | Accumulated other comprehensive income (loss)                                                                                                                    |                                  |       | (496      | )          |                          |           | (539     | )      |  |       | (496   | )      |      |       | (539   | )      |  |       | 75    |       |  |       | 39    |      
|                                        | Unearned compensation on restricted shares and options                                                                                                           |                                  |       | (1        | )          |                          |           | (1       | )      |  |       | (1     | )      |      |       | (1     | )      |  |       |      |       |  |       |      |      
|                                        |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        | 
|                                        |                                                                                                                                                                  | Total shareholders equity       |       |           | 5,029      |                          |           |          | 4,874  |  |       |        | 5,029  |      |       |        | 4,874  |  |       |       | 1,419 |  |       |       | 1,241 | 
|                                        |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        | 
|                                        |                                                                                                                                                                  | Total                            |       | $         | 18,080     |                          |           | $        | 17,727 |  |       | $      | 14,994 |      |       | $      | 15,382 |  |       | $     | 5,778 |  |       | $     | 5,058 | 
|                                        |                                                                                                                                                                  |                                  |       |           |            |                          |           |          |        |  |       |        |        |      |       |        |        | 



F-4



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##### Table of Contents



CNH GLOBAL N.V.


CONSOLIDATED STATEMENTS OF CASH FLOWS


For the Years Ended December 31, 2004, 2003 and 2002


(and Supplemental Information)


|                                                                         |                                                                                                                                       |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |      |      |      |      |      |      |        |       |      |      |      |      |      |      |      |        |     |      |      |        |     |      |      |        |     |     |  
|------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------ | ----------------------------------------------------------- | ------ | -------------------- | ---- | ---- | ------------------------ | --- | ---- | ---- | ------ | ---- | ---- | ---- | ---- | ---- | ---- | ------ | ----- | ---- | ---- | ---- | ---- | ---- | ---- | ---- | ------ | --- | ---- | ---- | ------ | --- | ---- | ---- | ------ | --- | --- | -
|                                                                         |                                                                                                                                       |                                                                    |                                                             |        |                      |      |      | Supplemental Information |    
|                                                                         |                                                                                                                                       |                                                                    |                                                             |        |                      |      |      |                          |    
|                                                                         |                                                                                                                                       | Consolidated                                                       |                                                             |        | Equipment Operations |      |      | Financial Services       |    
|                                                                         |                                                                                                                                       |                                                                    |                                                             |        |                      |      |      |                          |    
|                                                                         |                                                                                                                                       | 2004                                                               |                                                             |        | 2003                 |      |      | 2002                     |     |      | 2004 |        |      | 2003 |      |      | 2002 |      |        | 2004  |      |      | 2003 |      |      | 2002 |     
|                                                                         |                                                                                                                                       |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |      |      |      |      |      |      |        |       |      |      |      |      |      |      |     
|                                                                         |                                                                                                                                       | (in millions)                                                      |                                                            
|Operating activities:                                                    |                                                                                                                                       |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |      |      |      |      |      |      |        |       |      |      |      |      |      |      |      |        |     |      |      |        |     |      |      |       
|                                                                         | Net income (loss)                                                                                                                     |                                                                    | $                                                           | 125    |                      |      | $    | (157                     | )   |      | $    | (426   | )    |      | $    | 125  |      |      | $      | (157  | )    |      | $    | (426 | )    |      | $    | 159    |     |      | $    | 93     |     |      | $    | 60     |    
|                                                                         | Adjustments to reconcile net income (loss) to net cash
    provided (used) by operating activities:                                   |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |      |      |      |      |      |      |        |       |      |      |      |      |      |      |      |        |     |      |      |        |     |      |      |        |    
|                                                                         |                                                                                                                                       | Cumulative effect of change in accounting principle                |                                                             |        |                     |      |      |                          |    |      |      |        | 325  |      |      |      |     |      |        |       |     |      |      |      | 325  |      |      |        |    |      |      |        |    |      |      |        |    |    
|                                                                         |                                                                                                                                       | Depreciation and amortization                                      |                                                             |        | 325                  |      |      |                          | 346 |      |      |        | 346  |      |      |      | 261  |      |        |       | 246  |      |      |      | 228  |      |      |        | 64  |      |      |        | 100 |      |      |        | 118 |    
|                                                                         |                                                                                                                                       | Deferred income tax expense (benefit)                              |                                                             |        | 4                    |      |      |                          | (72 | )    |      |        | (277 | )    |      |      | 64   |      |        |       | (125 | )    |      |      | (195 | )    |      |        | (60 | )    |      |        | 53  |      |      |        | (82 | )  
|                                                                         |                                                                                                                                       | (Gain) loss on disposal of fixed assets                            |                                                             |        | (21                  | )    |      |                          | (1  | )    |      |        | (15  | )    |      |      | (21  | )    |        |       | (1   | )    |      |      | (15  | )    |      |        |    |      |      |        |    |      |      |        |    |    
|                                                                         |                                                                                                                                       | Undistributed (earnings) losses of unconsolidated
    subsidiaries |                                                             |        | 2                    |      |      |                          | 10  |      |      |        | 10   |      |      |      | (43  | )    |        |       | (61  | )    |      |      | (42  | )    |      |        | (5  | )    |      |        |    |      |      |        | (4  | )  
|                                                                         |                                                                                                                                       | Changes in operating assets and liabilities:                       |                                                             |        |                      |      |      |                          |     |      |      |        |      |      |      |      |      |      |        |       |      |      |      |      |      |      |      |        |     |      |      |        |     |      |      |        |     |    
|                                                                         |                                                                                                                                       |                                                                    | (Increase) decrease in intersegment activities              |        |                      |     |      |                          |     |     |      |        |      |     |      |      |      | (97  | )      |       |      | 138  |      |      |      | 16   |      |        |     | 97   |      |        |     | (138 | )    |        |     | (16 | )
|                                                                         |                                                                                                                                       |                                                                    | (Increase) decrease in wholesale and other notes receivable |        |                      | 911  |      |                          |     | 593  |      |        |      | 340  |      |      |      | 712  |        |       |      | (26  | )    |      |      | 101  |      |        |     | 199  |      |        |     | 619  |      |        |     | 239 |  
|                                                                         |                                                                                                                                       |                                                                    | (Increase) decrease in inventories                          |        |                      | 85   |      |                          |     | (139 | )    |        |      | 335  |      |      |      | 85   |        |       |      | (139 | )    |      |      | 335  |      |        |     |     |      |        |     |     |      |        |     |    |  
|                                                                         |                                                                                                                                       |                                                                    | (Increase) decrease in prepayments and other current assets |        |                      | (10  | )    |                          |     | 36   |      |        |      | (4   | )    |      |      | (12  | )      |       |      | 34   |      |      |      | (1   | )    |        |     | 2    |      |        |     | 2    |      |        |     | (3  | )
|                                                                         |                                                                                                                                       |                                                                    | (Increase) decrease in other assets                         |        |                      | (369 | )    |                          |     | (14  | )    |        |      | 380  |      |      |      | (122 | )      |       |      | (17  | )    |      |      | 226  |      |        |     | (247 | )    |        |     | 3    |      |        |     | 154 |  
|                                                                         |                                                                                                                                       |                                                                    | Increase (decrease) in accounts payable                     |        |                      | (59  | )    |                          |     | (4   | )    |        |      | 49   |      |      |      | (58  | )      |       |      | (5   | )    |      |      | 52   |      |        |     | (1   | )    |        |     | 1    |      |        |     | (3  | )
|                                                                         |                                                                                                                                       |                                                                    | Increase (decrease) in other accrued liabilities            |        |                      | 26   |      |                          |     | (173 | )    |        |      | (228 | )    |      |      | (10  | )      |       |      | (213 | )    |      |      | (235 | )    |        |     | 36   |      |        |     | 40   |      |        |     | 7   |  
|                                                                         |                                                                                                                                       |                                                                    | Increase (decrease) in other liabilities                    |        |                      | (24  | )    |                          |     | 204  |      |        |      | 8    |      |      |      | (7   | )      |       |      | 209  |      |      |      | 22   |      |        |     | (17  | )    |        |     | (5   | )    |        |     | (14 | )
|                                                                         | Other, net                                                                                                                            |                                                                    |                                                             | (25    | )                    |      |      | 167                      |     |      |      | 134    |      |      |      | 2    |      |      |        | 183   |      |      |      | 94   |      |      |      | (27    | )   |      |      | (16    | )   |      |      | 39     |    
|                                                                         |                                                                                                                                       |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |      |      |      |      |      |      |        |       |      |      |      |      |      |      |     
|Net cash (used) provided by operating activities                         |                                                                                                                                       |                                                                    | 970                                                         |        |                      |      | 796  |                          |     |      | 977  |        |      |      | 879  |      |      |      | 66     |       |      |      | 485  |      |      |      | 200  |        |     |      | 752  |        |     |      | 495  |       
|                                                                         |                                                                                                                                       |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |      |      |      |      |      |      |        |       |      |      |      |      |      |      |     
|Investing activities:                                                    |                                                                                                                                       |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |      |      |      |      |      |      |        |       |      |      |      |      |      |      |      |        |     |      |      |        |     |      |      |       
|                                                                         | Acquisitions and investments, net of cash acquired                                                                                    |                                                                    |                                                             | (38    | )                    |      |      | (40                      | )   |      |      | (234   | )    |      |      | (113 | )    |      |        | (83   | )    |      |      | (296 | )    |      |      | (10    | )   |      |      | (11    | )   |      |      | (11    | )  
|                                                                         | Additions to retail receivables                                                                                                       |                                                                    |                                                             | (5,183 | )                    |      |      | (4,463                   | )   |      |      | (3,854 | )    |      |      |     |      |      |        |      |      |      |      |     |      |      |      | (5,183 | )   |      |      | (4,463 | )   |      |      | (3,854 | )  
|                                                                         | Proceeds from new retail securitizations                                                                                              |                                                                    |                                                             | 2,218  |                      |      |      | 2,857                    |     |      |      | 2,598  |      |      |      |     |      |      |        |      |      |      |      |     |      |      |      | 2,218  |     |      |      | 2,857  |     |      |      | 2,598  |    
|                                                                         | Collections of retail receivables                                                                                                     |                                                                    |                                                             | 2,281  |                      |      |      | 1,263                    |     |      |      | 1,268  |      |      |      |     |      |      |        |      |      |      |      |     |      |      |      | 2,281  |     |      |      | 1,263  |     |      |      | 1,268  |    
|                                                                         | Collections of retained interests in securitized retail
    receivables                                                               |                                                                    |                                                             | 115    |                      |      |      | 151                      |     |      |      | 186    |      |      |      |     |      |      |        |      |      |      |      |     |      |      |      | 115    |     |      |      | 151    |     |      |      | 186    |    
|                                                                         | Proceeds from sale of businesses and assets                                                                                           |                                                                    |                                                             | 255    |                      |      |      | 212                      |     |      |      | 182    |      |      |      | 93   |      |      |        | 54    |      |      |      | 60   |      |      |      | 162    |     |      |      | 158    |     |      |      | 122    |    
|                                                                         | Expenditures for property, plant and equipment                                                                                        |                                                                    |                                                             | (180   | )                    |      |      | (194                     | )   |      |      | (241   | )    |      |      | (179 | )    |      |        | (192  | )    |      |      | (237 | )    |      |      | (1     | )   |      |      | (2     | )   |      |      | (4     | )  
|                                                                         | Expenditures for equipment on operating leases                                                                                        |                                                                    |                                                             | (81    | )                    |      |      | (51                      | )   |      |      | (166   | )    |      |      |     |      |      |        |      |      |      |      |     |      |      |      | (81    | )   |      |      | (51    | )   |      |      | (166   | )  
|                                                                         |                                                                                                                                       |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |      |      |      |      |      |      |        |       |      |      |      |      |      |      |     
|                                                                         | Net cash (used) provided by investing activities, before
    (deposits in) withdrawals from Fiat affiliates cash management
    pools |                                                                    |                                                             | (613   | )                    |      |      | (265                     | )   |      |      | (261   | )    |      |      | (199 | )    |      |        | (221  | )    |      |      | (473 | )    |      |      | (499   | )   |      |      | (98    | )   |      |      | 139    |    
|                                                                         | (Deposits in) withdrawals from Fiat affiliates cash management
    pools                                                              |                                                                    |                                                             | 217    |                      |      |      | (715                     | )   |      |      | (398   | )    |      |      | 221  |      |      |        | (915  | )    |      |      | (193 | )    |      |      | (4     | )   |      |      | 200    |     |      |      | (204   | )  
|                                                                         |                                                                                                                                       |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |      |      |      |      |      |      |        |       |      |      |      |      |      |      |     
|Net cash (used) provided by investing activities                         |                                                                                                                                       |                                                                    | (396                                                        | )      |                      |      | (980 | )                        |     |      | (659 | )      |      |      | 22   |      |      |      | (1,136 | )     |      |      | (666 | )    |      |      | (503 | )      |     |      | 102  |        |     |      | (65  | )     
|                                                                         |                                                                                                                                       |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |      |      |      |      |      |      |        |       |      |      |      |      |      |      |     
|Financing activities:                                                    |                                                                                                                                       |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |      |      |      |      |      |      |        |       |      |      |      |      |      |      |      |        |     |      |      |        |     |      |      |       
|                                                                         | Intersegment activity                                                                                                                 |                                                                    |                                                             |       |                      |      |      |                         |     |      |      |       |      |      |      | (72  | )    |      |        | 484   |      |      |      | (116 | )    |      |      | 72     |     |      |      | (484   | )   |      |      | 116    |    
|                                                                         | Proceeds from issuance of long-term debt  Fiat
    affiliates                                                                        |                                                                    |                                                             | 5      |                      |      |      | 147                      |     |      |      |       |      |      |      | 5    |      |      |        | 147   |      |      |      |     |      |      |      |       |     |      |      |       |     |      |      |       |    
|                                                                         | Proceeds from issuance of long-term debt  other                                                                                      |                                                                    |                                                             | 1,452  |                      |      |      | 1,282                    |     |      |      | 738    |      |      |      | 497  |      |      |        | 1,053 |      |      |      | 9    |      |      |      | 955    |     |      |      | 229    |     |      |      | 729    |    
|                                                                         | Payment of long-term debt  Fiat affiliates                                                                                           |                                                                    |                                                             | (634   | )                    |      |      | (16                      | )   |      |      | (544   | )    |      |      | (490 | )    |      |        |      |      |      |      | (487 | )    |      |      | (144   | )   |      |      | (16    | )   |      |      | (57    | )  
|                                                                         | Payment of long-term debt  other                                                                                                     |                                                                    |                                                             | (923   | )                    |      |      | (800                     | )   |      |      | (1,022 | )    |      |      | (130 | )    |      |        | (535  | )    |      |      | (137 | )    |      |      | (793   | )   |      |      | (265   | )   |      |      | (885   | )  
|                                                                         | Net increase (decrease) in short-term revolving credit
    facilities                                                                 |                                                                    |                                                             | (143   | )                    |      |      | (23                      | )   |      |      | 79     |      |      |      | (530 | )    |      |        | 306   |      |      |      | 645  |      |      |      | 387    |     |      |      | (329   | )   |      |      | (566   | )  
|                                                                         | Issuance of common shares                                                                                                             |                                                                    |                                                             |       |                      |      |      |                         |     |      |      | 201    |      |      |      |     |      |      |        |      |      |      |      | 201  |      |      |      |       |     |      |      | 54     |     |      |      | 73     |    
|                                                                         | Dividends paid                                                                                                                        |                                                                    |                                                             | (33    | )                    |      |      | (33                      | )   |      |      | (28    | )    |      |      | (33  | )    |      |        | (33   | )    |      |      | (28  | )    |      |      | (109   | )   |      |      | (22    | )   |      |      | (3     | )  
|                                                                         | Other, net                                                                                                                            |                                                                    |                                                             | (1     | )                    |      |      | (19                      | )   |      |      |       |      |      |      | (1   | )    |      |        | (19   | )    |      |      |     |      |      |      | 85     |     |      |      |       |     |      |      |       |    
|                                                                         |                                                                                                                                       |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |      |      |      |      |      |      |        |       |      |      |      |      |      |      |     
|Net cash (used) provided by financing activities                         |                                                                                                                                       |                                                                    | (277                                                        | )      |                      |      | 538  |                          |     |      | (576 | )      |      |      | (754 | )    |      |      | 1,403  |       |      |      | 87   |      |      |      | 453  |        |     |      | (833 | )      |     |      | (593 | )     
|                                                                         |                                                                                                                                       |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |      |      |      |      |      |      |        |       |      |      |      |      |      |      |     
|Effect of foreign exchange rate changes on cash and cash
    equivalents |                                                                                                                                       |                                                                    | 15                                                          |        |                      |      | 34   |                          |     |      | (78  | )      |      |      | 4    |      |      |      | 20     |       |      |      | (55  | )    |      |      | 11   |        |     |      | 14   |        |     |      | (24  | )     
|                                                                         |                                                                                                                                       |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |      |      |      |      |      |      |        |       |      |      |      |      |      |      |     
|Increase (decrease) in cash and cash equivalents                         |                                                                                                                                       |                                                                    | 312                                                         |        |                      |      | 388  |                          |     |      | (336 | )      |      |      | 151  |      |      |      | 353    |       |      |      | (149 | )    |      |      | 161  |        |     |      | 35   |        |     |      | (187 | )     
|Cash and cash equivalents, beginning of year                             |                                                                                                                                       |                                                                    | 619                                                         |        |                      |      | 231  |                          |     |      | 567  |        |      |      | 486  |      |      |      | 133    |       |      |      | 282  |      |      |      | 133  |        |     |      | 98   |        |     |      | 285  |       
|                                                                         |                                                                                                                                       |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |      |      |      |      |      |      |        |       |      |      |      |      |      |      |     
|Cash and cash equivalents, end of year                                   |                                                                                                                                       | $                                                                  | 931                                                         |        |                      | $    | 619  |                          |     | $    | 231  |        |      | $    | 637  |      |      | $    | 486    |       |      | $    | 133  |      |      | $    | 294  |        |     | $    | 133  |        |     | $    | 98   |       
|                                                                         |                                                                                                                                       |                                                                    |                                                             |        |                      |      |      |                          |     |      |      |        |      |      |      |      |      |      |        |       |      |      |      |      |      |      |     





F-5



---



##### Table of Contents



CNH GLOBAL N.V.


CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS
EQUITY


For the Years Ended December 31, 2004, 2003 and 2002


|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |      |        |        |    |   |   |   |       |      |     |   |   |      |     |      |  
|----------------------------------------------------------------- | -------------------------------------------------------------------------------- | ------------------------------------------- | ----- | - | ------ | - | --- | ------- | - | -------- | -------- | ----------- | ------------- | --------- | -- | - | ------ | - | ------ | ------------- | - | - | ----- | ---- | ------ | ------ | -- | - | - | - | ----- | ---- | --- | - | - | ---- | --- | ---- | -
|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          | 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, 2002                                          |                                                                                  | $                                           |      |   |        | $ | 143 |         |   | $        | 2,995    |             |               | $         | (7 | ) |        | $ | (573   | )             |   | $ | (646  | )    |        | $      | (3 | ) |   | $ | 1,909 |      |     |   |   |     
|Comprehensive loss:                                               |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |      |        |        |    |   |   |   |       |      |     |   |   |     
|                                                                  | Net loss                                                                         |                                             |       |  |        |   |     |        |   |          |          |            |               |           |    |  |        |   |        | (426          | ) |   |       |     |        |        |    |  |   |   |       | (426 | )   |   | $ | (426 | )  
|                                                                  | Translation adjustment                                                           |                                             |       |  |        |   |     |        |   |          |          |            |               |           |    |  |        |   |        |              |   |   |       | 88   |        |        |    |  |   |   |       | 88   |     |   |   | 88   |    
|                                                                  | Pension liability adjustment (net of tax of $134 million)                        |                                             |       |  |        |   |     |        |   |          |          |            |               |           |    |  |        |   |        |              |   |   |       | (278 | )      |        |    |  |   |   |       | (278 | )   |   |   | (278 | )  
|Derivative financial instruments:                                 |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |      |        |        |    |   |   |   |       |      |     |   |   |     
|                                                                  |                                                                                  | Losses deferred (net of tax of $16 million) |       |   |       |   |     |         |  |          |          |             |              |           |    |   |       |   |        |               |  |   |       |      | (30    | )      |    |   |  |   |       |      | (30 | ) |   |      | (30 | )   
|                                                                  |                                                                                  | Losses reclassified to earnings             |       |   |       |   |     |         |  |          |          |             |              |           |    |   |       |   |        |               |  |   |       |      | 31     |        |    |   |  |   |       |      | 31  |   |   |      | 31  |     
|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |      |        |        |   
|                                                                  |                                                                                  |                                             | Total |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |      |        |        |    |   |   |   |       |      |     |   |   |      | $   | (615 | )
|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |      |        |        |   
|Issuance of common shares                                         |                                                                                  |                                             |      |   |        |   | 23  |         |   |          | 178      |             |               |           |   |   |        |   |       |               |   |   |      |      |        |        |   |   |   |   | 201   |      |     |   |   |     
|Conversion of debt to equity                                      |                                                                                  |                                             |      |   |        |   | 139 |         |   |          | 1,154    |             |               |           |   |   |        |   |       |               |   |   |      |      |        |        |   |   |   |   | 1,293 |      |     |   |   |     
|Dividends declared                                                |                                                                                  |                                             |      |   |        |   |    |         |   |          |         |             |               |           |   |   |        |   | (28    | )             |   |   |      |      |        |        |   |   |   |   | (28   | )    |     |   |   |     
|Recognition of compensation on restricted stock and stock options |                                                                                  |                                             |      |   |        |   |    |         |   |          |         |             |               |           |   |   |        |   |       |               |   |   |      |      |        |        | 1  |   |   |   | 1     |      |     |   |   |     
|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |      |        |        |   
|Balance, December 31, 2002                                        |                                                                                  |                                             |      |   |        |   | 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 |      |     |   |   |     
|                                                                  |                                                                                  |                                             |       |   |        |   |     |         |   |          |          |             |               |           |    |   |        |   |        |               |   |   |       |      |        |        |   





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





| |                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Reclassification of cash flows related to retail
    receivables and change in accounting policy for deposits in Fiat
    affiliates cash management pools (Deposits with
    Fiat)

Reclassification of cash flows related to retail receivables:






Change in accounting policy for Deposits with Fiat:


F-8



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






F-9



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                      |                                                                          |               |   |       |                  |  |   |            |   |  |              |        |    |            |   |        |                  |  |           |            |   |  |              |        |   |  |   |      |   |  |   |        |  
|------------------------------------- | ------------------------------------------------------------------------ | ------------- | - | ----- | ---------------- |  | - | ---------- | - |  | ------------ | ------ | -- | ---------- | - | ------ | ---------------- |  | --------- | ---------- | - |  | ------------ | ------ | - |  | - | ---- | - |  | - | ------ | -
|                                      |                                                                          | 2003          |   |       | 2002             | 
|                                      |                                                                          |               |   |       |                  | 
|                                      |                                                                          | As            |   |       | Retail           |  |   | Change in  |   |  |              |        | As |            |   | Retail |                  |  | Change in |            |   | 
|                                      |                                                                          | Previously    |   |       | Receivables      |  |   | Accounting |   |  | As Currently |        |    | Previously |   |        | Receivables      |  |           | Accounting |   |  | As Currently |       
|                                      |                                                                          | Reported      |   |       | Reclassification |  |   | Policy     |   |  | Reported     |        |    | Reported   |   |        | Reclassification |  |           | Policy     |   |  | Reported     |       
|                                      |                                                                          |               |   |       |                  |  |   |            |   |  |              |        |    |            |   |        |                  |  |           |            |   |  |              |       
|                                      |                                                                          | (in millions) |  
|Consolidated
    Balance Sheets       |                                                                          |               |   |       |                  |  |   |            |   |  |              |        |    |            |   |        |                  |  |           |            |   |  |              |        |   |  |   |      |   |  |   |       
|                                      | Cash and cash equivalents  Fiat affiliates                              |               | $ | 1,325 |                  |  | $ |           |   |  | $            | (1,325 | )  |            | $ |       |                  |  |           |            |   |  |              |        |   |  |   |      |   |  |   |        |  
|                                      | Cash and cash equivalents  Other                                        |               |   | 619   |                  |  |   |           |   |  |              |        |    |            |   | 619    |                  |  |           |            |   |  |              |        |   |  |   |      |   |  |   |        |  
|                                      | Total cash and cash equivalents                                          |               |   | 1,944 |                  |  |   |           |   |  |              | (1,325 | )  |            |   | 619    |                  |  |           |            |   |  |              |        |   |  |   |      |   |  |   |        |  
|                                      | Deposits in Fiat affiliates cash management pools                        |               |   |      |                  |  |   |           |   |  |              | 1,325  |    |            |   | 1,325  |                  |  |           |            |   |  |              |        |   |  |   |      |   |  |   |        |  
|Consolidated Statements of Cash Flows |                                                                          |               |   |       |                  |  |   |            |   |  |              |        |    |            |   |        |                  |  |           |            |   |  |              |        |   |  |   |      |   |  |   |       
|                                      | Operating Activities                                                     |               |   |       |                  |  |   |            |   |  |              |        |    |            |   |        |                  |  |           |            |   |  |              |        |   |  |   |      |   |  |   |        |  
|                                      | (Increase) decrease in receivables                                       |               |   | 367   |                  |  |   | (367       | ) |  |              |       |    |            |   |       |                  |  | $         | 580        |   |  | $            | (580   | ) |  | $ |     |   |  | $ |       |  
|                                      | (Increase) decrease in wholesale and other notes receivable              |               |   |      |                  |  |   | 593        |   |  |              |       |    |            |   | 593    |                  |  |           |           |   |  |              | 340    |   |  |   |     |   |  |   | 340    |  
|                                      | (Increase) decrease in other assets                                      |               |   | 4     |                  |  |   | (18        | ) |  |              |       |    |            |   | (14    | )                |  |           | 368        |   |  |              | 12     |   |  |   |     |   |  |   | 380    |  
|                                      | Other, net                                                               |               |   | 183   |                  |  |   | (16        | ) |  |              |       |    |            |   | 167    |                  |  |           | 104        |   |  |              | 30     |   |  |   |     |   |  |   | 134    |  
|                                      | Net cash (used) provided by operating activities                         |               |   | 604   |                  |  |   | 192        |   |  |              |        |    |            |   | 796    |                  |  |           | 1,175      |   |  |              | (198   | ) |  |   |     |   |  |   | 977    |  
|                                      | Investing Activities                                                     |               |   |       |                  |  |   |            |   |  |              |        |    |            |   |        |                  |  |           |            |   |  |              |        |   |  |   |      |   |  |   |        |  
|                                      | Additions to retail receivables                                          |               |   |      |                  |  |   | (4,463     | ) |  |              |       |    |            |   | (4,463 | )                |  |           |           |   |  |              | (3,854 | ) |  |   |     |   |  |   | (3,854 | )
|                                      | Proceeds from new retail securitizations                                 |               |   |      |                  |  |   | 2,857      |   |  |              |       |    |            |   | 2,857  |                  |  |           |           |   |  |              | 2,598  |   |  |   |     |   |  |   | 2,598  |  
|                                      | Collections of retail receivables                                        |               |   |      |                  |  |   | 1,263      |   |  |              |       |    |            |   | 1,263  |                  |  |           |           |   |  |              | 1,268  |   |  |   |     |   |  |   | 1,268  |  
|                                      | Collections of retained interests in securitized retail
    receivables  |               |   |      |                  |  |   | 151        |   |  |              |       |    |            |   | 151    |                  |  |           |           |   |  |              | 186    |   |  |   |     |   |  |   | 186    |  
|                                      | (Deposits in) withdrawals from Fiat affiliates cash management
    pools |               |   |      |                  |  |   |            |   |  |              | (715   | )  |            |   | (715   | )                |  |           |           |   |  |              |       |   |  |   | (398 | ) |  |   | (398   | )
|                                      | Net cash (used) provided by investing activities                         |               |   | (73   | )                |  |   | (192       | ) |  |              | (715   | )  |            |   | (980   | )                |  |           | (459       | ) |  |              | 198    |   |  |   | (398 | ) |  |   | (659   | )
|                                      | Effect of foreign exchange rate changes on cash and cash
    equivalents |               |   | 100   |                  |  |   |           |   |  |              | (66    | )  |            |   | 34     |                  |  |           | (28        | ) |  |              |       |   |  |   | (50  | ) |  |   | (78    | )
|                                      | Increase (decrease) in cash and cash equivalents                         |               |   | 1,169 |                  |  |   |           |   |  |              | (781   | )  |            |   | 388    |                  |  |           | 112        |   |  |              |       |   |  |   | (448 | ) |  |   | (336   | )
|                                      | Cash and cash equivalents, beginning of year                             |               |   | 775   |                  |  |   |           |   |  |              | (544   | )  |            |   | 231    |                  |  |           | 663        |   |  |              |       |   |  |   | (96  | ) |  |   | 567    |  
|                                      | Cash and cash equivalents, end of year                                   |               |   | 1,944 |                  |  |   |           |   |  |              | (1,325 | )  |            |   | 619    |                  |  |           | 775        |   |  |              |       |   |  |   | (544 | ) |  |   | 231    |  

F-10



---



##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                              |                                                                          |               |   |       |                  |  |            |   |  |              |   |        |            |  |        |                  |           |            |   |      |              |  |   |   |  |  |   |      |   |  |   |      |  
|--------------------------------------------- | ------------------------------------------------------------------------ | ------------- | - | ----- | ---------------- |  | ---------- | - |  | ------------ | - | ------ | ---------- |  | ------ | ---------------- | --------- | ---------- | - | ---- | ------------ |  | - | - |  |  | - | ---- | - |  | - | ---- | -
|                                              |                                                                          | 2003          |   |       | 2002             | 
|                                              |                                                                          |               |   |       |                  | 
|                                              |                                                                          | As            |   |       | Retail           |  | Change in  |   |  |              |   | As     |            |  | Retail |                  | Change in |            |   |     
|                                              |                                                                          | Previously    |   |       | Receivables      |  | Accounting |   |  | As Currently |   |        | Previously |  |        | Receivables      |           | Accounting |   |      | As Currently | 
|                                              |                                                                          | Reported      |   |       | Reclassification |  | Policy     |   |  | Reported     |   |        | Reported   |  |        | Reclassification |           | Policy     |   |      | Reported     | 
|                                              |                                                                          |               |   |       |                  |  |            |   |  |              |   |        |            |  |        |                  |           |            |   |      |              | 
|                                              |                                                                          | (in millions) |  
|Equipment Operations                          |                                                                          |               |   |       |                  |  |            |   |  |              |   |        |            |  |        |                  |           |            |   |      |              |  |   |   |  |  |   |      |   |  |   |     
|Balance Sheets                                |                                                                          |               |   |       |                  |  |            |   |  |              |   |        |            |  |        |                  |           |            |   |      |              |  |   |   |  |  |   |      |   |  |   |     
|                                              | Cash and cash equivalents  Fiat affiliates                              |               | $ | 1,315 |                  |  | $          |  |  |              | $ | (1,315 | )          |  | $      |                 |           |            |   |      |              |  |   |   |  |  |   |      |   |  |   |      |  
|                                              | Cash and cash equivalents  Other                                        |               |   | 486   |                  |  |            |  |  |              |   |       |            |  |        | 486              |           |            |   |      |              |  |   |   |  |  |   |      |   |  |   |      |  
|                                              | Total cash and cash equivalents                                          |               |   | 1,801 |                  |  |            |  |  |              |   | (1,315 | )          |  |        | 486              |           |            |   |      |              |  |   |   |  |  |   |      |   |  |   |      |  
|                                              | Deposits in Fiat affiliates cash management pools                        |               |   |      |                  |  |            |  |  |              |   | 1,315  |            |  |        | 1,315            |           |            |   |      |              |  |   |   |  |  |   |      |   |  |   |      |  
|Equipment Operations Statements of Cash Flows |                                                                          |               |   |       |                  |  |            |   |  |              |   |        |            |  |        |                  |           |            |   |      |              |  |   |   |  |  |   |      |   |  |   |     
|                                              | Investing Activities                                                     |               |   |       |                  |  |            |   |  |              |   |        |            |  |        |                  |           |            |   |      |              |  |   |   |  |  |   |      |   |  |   |      |  
|                                              | (Deposits in) withdrawals from Fiat affiliates cash management
    pools |               |   |      |                  |  |            |  |  |              |   | (915   | )          |  |        | (915             | )         |            | $ |     |              |  | $ |  |  |  | $ | (193 | ) |  | $ | (193 | )
|                                              | Net cash (used) provided by investing activities                         |               |   | (221  | )                |  |            |  |  |              |   | (915   | )          |  |        | (1,136           | )         |            |   | (473 | )            |  |   |  |  |  |   | (193 | ) |  |   | (666 | )
|                                              | Effect of foreign exchange rate changes on cash and cash
    equivalents |               |   | 84    |                  |  |            |  |  |              |   | (64    | )          |  |        | 20               |           |            |   | (8   | )            |  |   |  |  |  |   | (47  | ) |  |   | (55  | )
|                                              | Increase (decrease) in cash and cash equivalents                         |               |   | 1,332 |                  |  |            |  |  |              |   | (979   | )          |  |        | 353              |           |            |   | 91   |              |  |   |  |  |  |   | (240 | ) |  |   | (149 | )
|                                              | Cash and cash equivalents, beginning of year                             |               |   | 469   |                  |  |            |  |  |              |   | (336   | )          |  |        | 133              |           |            |   | 378  |              |  |   |  |  |  |   | (96  | ) |  |   | 282  |  
|                                              | Cash and cash equivalents, end of year                                   |               |   | 1,801 |                  |  |            |  |  |              |   | (1,315 | )          |  |        | 486              |           |            |   | 469  |              |  |   |  |  |  |   | (336 | ) |  |   | 133  |  

F-11



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                            |                                                                          |               |   |      |                  |  |   |            |   |  |              |      |    |            |   |        |                  |  |           |            |   |  |              |        |   |  |   |      |   |  |   |        |  
|------------------------------------------- | ------------------------------------------------------------------------ | ------------- | - | ---- | ---------------- |  | - | ---------- | - |  | ------------ | ---- | -- | ---------- | - | ------ | ---------------- |  | --------- | ---------- | - |  | ------------ | ------ | - |  | - | ---- | - |  | - | ------ | -
|                                            |                                                                          | 2003          |   |      | 2002             | 
|                                            |                                                                          |               |   |      |                  | 
|                                            |                                                                          | As            |   |      | Retail           |  |   | Change in  |   |  |              |      | As |            |   | Retail |                  |  | Change in |            |   | 
|                                            |                                                                          | Previously    |   |      | Receivables      |  |   | Accounting |   |  | As Currently |      |    | Previously |   |        | Receivables      |  |           | Accounting |   |  | As Currently |       
|                                            |                                                                          | Reported      |   |      | Reclassification |  |   | Policy     |   |  | Reported     |      |    | Reported   |   |        | Reclassification |  |           | Policy     |   |  | Reported     |       
|                                            |                                                                          |               |   |      |                  |  |   |            |   |  |              |      |    |            |   |        |                  |  |           |            |   |  |              |       
|                                            |                                                                          | (in millions) |  
|Financial Services                          |                                                                          |               |   |      |                  |  |   |            |   |  |              |      |    |            |   |        |                  |  |           |            |   |  |              |        |   |  |   |      |   |  |   |       
|Balance Sheets                              |                                                                          |               |   |      |                  |  |   |            |   |  |              |      |    |            |   |        |                  |  |           |            |   |  |              |        |   |  |   |      |   |  |   |       
|                                            | Cash and cash equivalents  Fiat affiliates                              |               | $ | 10   |                  |  | $ |           |   |  | $            | (10  | )  |            | $ |       |                  |  |           |            |   |  |              |        |   |  |   |      |   |  |   |        |  
|                                            | Cash and cash equivalents  Other                                        |               |   | 133  |                  |  |   |           |   |  |              |     |    |            |   | 133    |                  |  |           |            |   |  |              |        |   |  |   |      |   |  |   |        |  
|                                            | Total cash and cash equivalents                                          |               |   | 143  |                  |  |   |           |   |  |              | (10  | )  |            |   | 133    |                  |  |           |            |   |  |              |        |   |  |   |      |   |  |   |        |  
|                                            | Deposits in Fiat affiliates cash management pools                        |               |   |     |                  |  |   |            |   |  |              | 10   |    |            |   | 10     |                  |  |           |            |   |  |              |        |   |  |   |      |   |  |   |        |  
|Financial Services Statements of Cash Flows |                                                                          |               |   |      |                  |  |   |            |   |  |              |      |    |            |   |        |                  |  |           |            |   |  |              |        |   |  |   |      |   |  |   |       
|                                            | Operating Activities                                                     |               |   |      |                  |  |   |            |   |  |              |      |    |            |   |        |                  |  |           |            |   |  |              |        |   |  |   |      |   |  |   |        |  
|                                            | (Increase) decrease in receivables                                       |               |   | 393  |                  |  |   | (393       | ) |  |              |     |    |            |   |       |                  |  | $         | 479        |   |  | $            | (479   | ) |  | $ |     |   |  | $ |       |  
|                                            | (Increase) decrease in wholesale and other notes receivable              |               |   |     |                  |  |   | 619        |   |  |              |     |    |            |   | 619    |                  |  |           |           |   |  |              | 239    |   |  |   |     |   |  |   | 239    |  
|                                            | (Increase) decrease in other assets                                      |               |   | 21   |                  |  |   | (18        | ) |  |              |     |    |            |   | 3      |                  |  |           | 142        |   |  |              | 12     |   |  |   |     |   |  |   | 154    |  
|                                            | Other, net                                                               |               |   |     |                  |  |   | (16        | ) |  |              |     |    |            |   | (16    | )                |  |           | 9          |   |  |              | 30     |   |  |   |     |   |  |   | 39     |  
|                                            | Net cash (used) provided by operating activities                         |               |   | 560  |                  |  |   | 192        |   |  |              |     |    |            |   | 752    |                  |  |           | 693        |   |  |              | (198   | ) |  |   |     |   |  |   | 495    |  
|                                            | Investing Activities                                                     |               |   |      |                  |  |   |            |   |  |              |      |    |            |   |        |                  |  |           |            |   |  |              |        |   |  |   |      |   |  |   |        |  
|                                            | Additions to retail receivables                                          |               |   |     |                  |  |   | (4,463     | ) |  |              |     |    |            |   | (4,463 | )                |  |           |           |   |  |              | (3,854 | ) |  |   |     |   |  |   | (3,854 | )
|                                            | Proceeds from new retail securitizations                                 |               |   |     |                  |  |   | 2,857      |   |  |              |     |    |            |   | 2,857  |                  |  |           |           |   |  |              | 2,598  |   |  |   |     |   |  |   | 2,598  |  
|                                            | Collections of retail receivables                                        |               |   |     |                  |  |   | 1,263      |   |  |              |     |    |            |   | 1,263  |                  |  |           |           |   |  |              | 1,268  |   |  |   |     |   |  |   | 1,268  |  
|                                            | Collections of retained interests in securitized retail
    receivables  |               |   |     |                  |  |   | 151        |   |  |              |     |    |            |   | 151    |                  |  |           |           |   |  |              | 186    |   |  |   |     |   |  |   | 186    |  
|                                            | (Deposits in) withdrawals from Fiat affiliates cash management
    pools |               |   |     |                  |  |   |           |   |  |              | 200  |    |            |   | 200    |                  |  |           |           |   |  |              |       |   |  |   | (204 | ) |  |   | (204   | )
|                                            | Net cash (used) provided by investing activities                         |               |   | 94   |                  |  |   | (192       | ) |  |              | 200  |    |            |   | 102    |                  |  |           | (59        | ) |  |              | 198    |   |  |   | (204 | ) |  |   | (65    | )
|                                            | Effect of foreign exchange rate changes on cash and cash
    equivalents |               |   | 16   |                  |  |   |           |   |  |              | (2   | )  |            |   | 14     |                  |  |           | (20        | ) |  |              |       |   |  |   | (4   | ) |  |   | (24    | )
|                                            | Increase (decrease) in cash and cash equivalents                         |               |   | (163 | )                |  |   |           |   |  |              | 198  |    |            |   | 35     |                  |  |           | 21         |   |  |              |       |   |  |   | (208 | ) |  |   | (187   | )
|                                            | Cash and cash equivalents, beginning of year                             |               |   | 306  |                  |  |   |           |   |  |              | (208 | )  |            |   | 98     |                  |  |           | 285        |   |  |              |       |   |  |   |     |   |  |   | 285    |  
|                                            | Cash and cash equivalents, end of year                                   |               |   | 143  |                  |  |   |           |   |  |              | (10  | )  |            |   | 133    |                  |  |           | 306        |   |  |              |       |   |  |   | (208 | ) |  |   | 98     |  

F-12



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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









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





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





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



F-13



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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





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





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





| |                                                  
| | -------------------------------------------------
| | Deposits in Fiat Affiliates Cash Management Pools





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







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



F-14



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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



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







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





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







F-15



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                                
| | -----------------------------------------------
| | Software Acquired or Developed for Internal Use





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





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





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





F-16



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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







|                                                                                                                  |              |         |     |   |      |   |      |      |       |   |      |   |       |  
|----------------------------------------------------------------------------------------------------------------- | ------------ | ------- | --- | - | ---- | - | ---- | ---- | ----- | - | ---- | - | ----- | -
|                                                                                                                  |              | 2004    |     |   | 2003 |   |      | 2002 |      
|                                                                                                                  |              |         |     |   |      |   |      |      |      
|Net income (loss), as reported                                                                                    |              | $       | 125 |   |      | $ | (157 | )    |       | $ | (426 | )
|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  | ) |      |   | (5   | )    |       |   | (4   | )
|                                                                                                                  |              |         |     |   |      |   |      |      |      
|Pro forma net income (loss)                                                                                       |              | $       | 121 |   |      | $ | (161 | )    |       | $ | (429 | )
|                                                                                                                  |              |         |     |   |      |   |      |      |      
|Earnings (loss) per share:                                                                                        |              |         |     |   |      |   |      |      |       |   |      |  
|                                                                                                                  | As reported: |         |     |   |      |   |      |      |       |   |      |   |      
|                                                                                                                  |              | Basic   |     | $ | 0.94 |   |      | $    | (1.19 | ) |      | $ | (4.40 | )
|                                                                                                                  |              | Diluted |     | $ | 0.54 |   |      | $    | (1.19 | ) |      | $ | (4.40 | )
|                                                                                                                  | Pro Forma:   |         |     |   |      |   |      |      |       |   |      |   |      
|                                                                                                                  |              | Basic   |     | $ | 0.91 |   |      | $    | (1.22 | ) |      | $ | (4.45 | )
|                                                                                                                  |              | Diluted |     | $ | 0.52 |   |      | $    | (1.22 | ) |      | $ | (4.45 | )



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





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



F-17



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)














F-18



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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









| |                       
| | ----------------------
| | CNH Capital Europe SAS





F-19



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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





:


|                                          |                                  |               |        |       |      |   |        |       | 
|----------------------------------------- | -------------------------------- | ------------- | ------ | ----- | ---- | - | ------ | ----- | 
|                                          |                                  | 2004          |        |       | 2003 |  
|                                          |                                  |               |        |       |      |  
|                                          |                                  | (in millions) |       
|Wholesale notes and accounts              |                                  | $             | 1,920  |       |      | $ | 2,574  |      
|Retail and other notes and finance leases |                                  |               | 3,441  |       |      |   | 2,938  |      
|Other notes                               |                                  |               | 745    |       |      |   | 674    |      
|                                          |                                  |               |        |       |      |  
|                                          | Gross receivables                |               |        | 6,106 |      |   |        | 6,186 | 
|Less:                                     |                                  |               |        |       |      |   |        |      
|Allowance for credit losses               |                                  |               | (211   | )     |      |   | (190   | )    
|Current portion                           |                                  |               | (3,171 | )     |      |   | (3,797 | )    
|                                          |                                  |               |        |       |      |  
|                                          | Total long-term receivables, net |               | $      | 2,724 |      |   | $      | 2,199 | 
|                                          |                                  |               |        |       |      |  



|                    |                                  |               |       |       | 
|------------------- | -------------------------------- | ------------- | ----- | ----- | 
|                    |                                  | Amount        |      
|                    |                                  |               |      
|                    |                                  | (in millions) |      
|2006                |                                  | $             | 1,347 |      
|2007                |                                  |               | 571   |      
|2008                |                                  |               | 505   |      
|2009                |                                  |               | 229   |      
|2010 and thereafter |                                  |               | 72    |      
|                    |                                  |               |      
|                    | Total long-term receivables, net |               | $     | 2,724 | 
|                    |                                  |               |      

F-20



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                            |  |               |     |   |      |   |      |      |  |   |      |  
|--------------------------- |  | ------------- | --- | - | ---- | - | ---- | ---- |  | - | ---- | -
|                            |  | 2004          |     |   | 2003 |   |      | 2002 | 
|                            |  |               |     |   |      |   |      |      | 
|                            |  | (in millions) |    
|Balance, beginning of year  |  | $             | 190 |   |      | $ | 229  |      |  | $ | 300  |  
|Provision for credit losses |  |               | 76  |   |      |   | 98   |      |  |   | 104  |  
|Receivables written off     |  |               | (69 | ) |      |   | (172 | )    |  |   | (141 | )
|Other, net                  |  |               | 14  |   |      |   | 35   |      |  |   | (34  | )
|                            |  |               |     |   |      |   |      |      | 
|Balance, end of year        |  | $             | 211 |   |      | $ | 190  |      |  | $ | 229  |  
|                            |  |               |     |   |      |   |      |      | 



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



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







F-21



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                                     |  |               |       |  |      |   |       | 
|---------------------------------------------------- |  | ------------- | ----- |  | ---- | - | ----- | 
|                                                     |  | 2004          |       |  | 2003 |  
|                                                     |  |               |       |  |      |  
|                                                     |  | (in millions) |      
|Proceeds from new securitizations                    |  | $             | 874   |  |      | $ | 1,518 | 
|Repurchase of receivables                            |  |               | 605   |  |      |   | 1,066 | 
|Proceeds from collections reinvested in the facility |  |               | 6,618 |  |      |   | 4,736 | 









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







F-22



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








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



|              |                                      |                                                              |   |     |       |  |   |     |     | 
|------------- | ------------------------------------ | ------------------------------------------------------------ | - | --- | ----- |  | - | --- | --- | 
|              |                                      | 2004                                                         |   |     | 2003  | 
|              |                                      |                                                              |   |     |       | 
|              |                                      | (in millions)                                                |  
|Receivables:  |                                      |                                                              |   |     |       |  |   |    
|              | Collateralized wholesale receivables |                                                              | $ | 448 |       |  | $ | 319 |    
|              | Interest only strips                 |                                                              |   | 103 |       |  |   | 92  |    
|              | Spread and other                     |                                                              |   | 389 |       |  |   | 268 |    
|              |                                      |                                                              |   |     |       | 
|              |                                      | Total amount included in Accounts and notes
    receivable |   |     | 940   |  |   |     | 679 | 
|Other assets: |                                      |                                                              |   |     |       |  |   |    
|              | ABS certificates                     |                                                              |   | 241 |       |  |   | 231 |    
|              | Undivided retained interest          |                                                              |   | 225 |       |  |   |    |    
|              |                                      |                                                              |   |     |       | 
|              |                                      | Total amount included in Other assets                      |   |     | 466   |  |   |     | 231 | 
|              |                                      |                                                              |   |     |       | 
|              |                                      | Total retained interests                                     |   | $   | 1,406 |  |   | $   | 910 | 
|              |                                      |                                                              |   |     |       | 





|                             |  |       |               |          |         |  |               |      |  |  |       |   |  |  |       |  
|---------------------------- |  | ----- | ------------- | -------- | ------- |  | ------------- | ---- |  |  | ----- | - |  |  | ----- | -
|                             |  |       |               | Weighted |        
|                             |  | Range |               |          | Average | 
|                             |  |       |               |          |         | 
|                             |  | 2004  |               |          | 2003    |  |               | 2004 |  |  | 2003  |  
|                             |  |       |               |          |         |  |               |      |  |  |       |  
|Constant prepayment rate     |  |       | 17.00  20.00 | %        |         |  | 17.00  20.00 | %    |  |  | 17.39 | % |  |  | 17.48 | %
|Annual credit loss rate      |  |       | 0.37   0.83  | %        |         |  | 0.26   1.58  | %    |  |  | 0.48  | % |  |  | 0.52  | %
|Discount rate                |  |       | 8.50  10.00  | %        |         |  | 4.37   6.97  | %    |  |  | 9.52  | % |  |  | 5.16  | %
|Remaining maturity in months |  |       | 20  22       |          |         |  | 17  22       |      |  |  | 22    |   |  |  | 21    |  



F-23



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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



|                             |  |                  |       |   |                  |   |     |        |  |   |              |  |  |        |       |   |        |   |     |  |  |   |      | 
|---------------------------- |  | ---------------- | ----- | - | ---------------- | - | --- | ------ |  | - | ------------ |  |  | ------ | ----- | - | ------ | - | --- |  |  | - | ---- | 
|                             |  | 2004             |       |   | 2003             |  
|                             |  |                  |       |   |                  |  
|                             |  | December 31,     |       |   | 10%              |   |     | 20%    |  |   | December 31, |  |  | 10%    |       |   | 20%    |  
|                             |  | Assumption       |       |   | Change           |   |     | Change |  |   | Assumption   |  |  | Change |       |   | Change |  
|                             |  |                  |       |   |                  |   |     |        |  |   |              |  |  |        |       |   |        |  
|                             |  | Weighted Average |       |   | Weighted Average |  
|Constant prepayment rate     |  |                  | 16.56 | % |                  | $ | 1.9 |        |  | $ | 3.5          |  |  |        | 19.31 | % |        | $ | 1.0 |  |  | $ | 2.0  | 
|Annual credit loss rate      |  |                  | 0.69  | % |                  | $ | 2.4 |        |  | $ | 4.9          |  |  |        | 0.68  | % |        | $ | 6.9 |  |  | $ | 12.7 | 
|Discount rate                |  |                  | 9.37  | % |                  | $ | 4.0 |        |  | $ | 6.9          |  |  |        | 5.62  | % |        | $ | 2.0 |  |  | $ | 4.0  | 
|Remaining maturity in months |  |                  | 17    |   |                  |   |     |        |  |   |              |  |  |        | 16    |   |        |   |     |  |  |   |      | 





|                        |  |                            |      |   |      |  |      |      |  |  |      |   |  |  |      |  
|----------------------- |  | -------------------------- | ---- | - | ---- |  | ---- | ---- |  |  | ---- | - |  |  | ---- | -
|                        |  | Receivables Securitized in |     
|                        |  |                            |     
|                        |  | 2001                       |      |   | 2002 |  |      | 2003 |  |  | 2004 |  
|                        |  |                            |      |   |      |  |      |      |  |  |      |  
|As of December 31, 2004 |  |                            | 0.76 | % |      |  | 0.58 | %    |  |  | 0.89 | % |  |  | 0.57 | %
|As of December 31, 2003 |  |                            | 0.74 | % |      |  | 0.66 | %    |  |  | 0.65 | % |  |  |      |  
|As of December 31, 2002 |  |                            | 0.78 | % |      |  | 1.04 | %    |  |  |      |   |  |  |      |  





|                                          |  |               |       |  |      |   |       |      |  |   |       | 
|----------------------------------------- |  | ------------- | ----- |  | ---- | - | ----- | ---- |  | - | ----- | 
|                                          |  | 2004          |       |  | 2003 |   |       | 2002 | 
|                                          |  |               |       |  |      |   |       |      | 
|                                          |  | (in millions) |      
|Proceeds from new retail securitizations  |  | $             | 2,218 |  |      | $ | 2,857 |      |  | $ | 2,598 | 
|Servicing fees received                   |  |               | 37    |  |      |   | 51    |      |  |   | 37    | 
|Cash received on other retained interests |  |               | 85    |  |      |   | 70    |      |  |   | 56    | 
|Cash paid upon cleanup call               |  |               | 77    |  |      |   | 213   |      |  |   | 162   | 



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





F-24



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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)  |       
|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 |  |                | 1,068  |  |                |   |     |                |  |   |     | 
|Receivables serviced for Joint Venture        |  |                | 1,654  |  |                |   |     |                |  |   |     | 
|Securitized                                   |  |                | 6,384  |  |                |   |     |                |  |   |     | 
|                                              |  |                |        |  |                |   |     |                | 
|Total managed                                 |  | $              | 13,259 |  |                |   |     |                |  |   |     | 
|                                              |  |                |        |  |                |   |     |                | 
|2003                                          |  |                |        |  |                |   |     |                |  |   |     | 
|                                              |  |                |        |  |                |   |     |                | 
|Type of receivable:                           |  |                |        |  |                |   |     |                |  |   |     | 
|Wholesale notes and accounts                  |  | $              | 3,334  |  |                | $ | 95  |                |  | $ | 8   | 
|Retail and other notes and finance leases     |  |                | 9,095  |  |                |   | 315 |                |  |   | 141 | 
|                                              |  |                |        |  |                |   |     |                | 
|Total managed                                 |  | $              | 12,429 |  |                | $ | 410 |                |  | $ | 149 | 
|                                              |  |                |        |  |                |   |     |                | 
|Comprised of:                                 |  |                |        |  |                |   |     |                |  |   |     | 
|Receivables held in portfolio                 |  | $              | 3,796  |  |                |   |     |                |  |   |     | 
|Receivables serviced for Equipment Operations |  |                | 1,179  |  |                |   |     |                |  |   |     | 
|Receivables serviced for Joint Venture        |  |                | 1,401  |  |                |   |     |                |  |   |     | 
|Securitized                                   |  |                | 6,053  |  |                |   |     |                |  |   |     | 
|                                              |  |                |        |  |                |   |     |                | 
|Total managed                                 |  | $              | 12,429 |  |                |   |     |                |  |   |     | 
|                                              |  |                |        |  |                |   |     |                | 



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



F-25



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 5: Inventories




|                |                   |               |       |       |      |   |       |       | 
|--------------- | ----------------- | ------------- | ----- | ----- | ---- | - | ----- | ----- | 
|                |                   | 2004          |       |       | 2003 |  
|                |                   |               |       |       |      |  
|                |                   | (in millions) |      
|Raw materials   |                   | $             | 501   |       |      | $ | 416   |      
|Work-in-process |                   |               | 212   |       |      |   | 243   |      
|Finished goods  |                   |               | 1,802 |       |      |   | 1,819 |      
|                |                   |               |       |       |      |  
|                | Total inventories |               | $     | 2,515 |      |   | $     | 2,478 | 
|                |                   |               |       |       |      |  

Note 6: Property, Plant and Equipment




|                                 |                                   |               |        |       |      |   |        |       | 
|-------------------------------- | --------------------------------- | ------------- | ------ | ----- | ---- | - | ------ | ----- | 
|                                 |                                   | 2004          |        |       | 2003 |  
|                                 |                                   |               |        |       |      |  
|                                 |                                   | (in millions) |       
|Land, buildings and improvements |                                   | $             | 873    |       |      | $ | 861    |      
|Plant and machinery              |                                   |               | 2,083  |       |      |   | 1,941  |      
|Other equipment                  |                                   |               | 465    |       |      |   | 435    |      
|Construction in progress         |                                   |               | 80     |       |      |   | 89     |      
|                                 |                                   |               |        |       |      |  
|                                 |                                   |               | 3,501  |       |      |   | 3,326  |      
|Accumulated depreciation         |                                   |               | (2,023 | )     |      |   | (1,798 | )    
|                                 |                                   |               |        |       |      |  
|                                 | Net property, plant and equipment |               | $      | 1,478 |      |   | $      | 1,528 | 
|                                 |                                   |               |        |       |      |  



Note 7: Investments in Unconsolidated Subsidiaries and
Affiliates




|                     |       |               |     |     |      |   |     |     | 
|-------------------- | ----- | ------------- | --- | --- | ---- | - | --- | --- | 
|Method of Accounting |       | 2004          |     |     | 2003 |  
|                     |       |               |     |     |      |  
|                     |       | (in millions) |    
|Equity method        |       | $             | 450 |     |      | $ | 422 |    
|Cost method          |       |               | 7   |     |      |   | 7   |    
|                     |       |               |     |     |      |  
|                     | Total |               | $   | 457 |      |   | $   | 429 | 
|                     |       |               |     |     |      |  





|           |  |                    |       |  |      |   |       |      |  |   |       | 
|---------- |  | ------------------ | ----- |  | ---- | - | ----- | ---- |  | - | ----- | 
|           |  | As of December 31, |      
|           |  |                    |      
|Operations |  | 2004               |       |  | 2003 |   |       | 2002 | 
|           |  |                    |       |  |      |   |       |      | 
|           |  | (in millions)      |      
|Sales      |  | $                  | 3,341 |  |      | $ | 2,301 |      |  | $ | 1,682 | 
|           |  |                    |       |  |      |   |       |      | 
|Net Income |  | $                  | 110   |  |      | $ | 67    |      |  | $ | 29    | 
|           |  |                    |       |  |      |   |       |      | 

F-26



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                   |  |                    |       |  |      |   |       | 
|------------------ |  | ------------------ | ----- |  | ---- | - | ----- | 
|                   |  | As of December 31, |      
|                   |  |                    |      
|Financial Position |  | 2004               |       |  | 2003 |  
|                   |  |                    |       |  |      |  
|                   |  | (in millions)      |      
|Total Assets       |  | $                  | 4,705 |  |      | $ | 3,931 | 
|                   |  |                    |       |  |      |  

Note 8: Equipment on Operating Leases




|                                  |  |               |      |   |      |   |      |  
|--------------------------------- |  | ------------- | ---- | - | ---- | - | ---- | -
|                                  |  | 2004          |      |   | 2003 |  
|                                  |  |               |      |   |      |  
|                                  |  | (in millions) |     
|Equipment on operating leases     |  | $             | 341  |   |      | $ | 525  |  
|Accumulated depreciation          |  |               | (126 | ) |      |   | (172 | )
|                                  |  |               |      |   |      |  
|Net equipment on operating leases |  | $             | 215  |   |      | $ | 353  |  
|                                  |  |               |      |   |      |  





|                    |  |               |     | 
|------------------- |  | ------------- | --- | 
|                    |  | Amount        |    
|                    |  |               |    
|                    |  | (in millions) |    
|2005                |  | $             | 68  | 
|2006                |  |               | 33  | 
|2007                |  |               | 14  | 
|2008                |  |               | 6   | 
|2009 and thereafter |  |               | 1   | 
|                    |  |               |    
|Total               |  | $             | 122 | 
|                    |  |               |    

Note 9: Goodwill and Intangibles








F-27



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                               |  |               |       |   |              |   |     |           |  |   |       |   |  |   |       |  
|------------------------------ |  | ------------- | ----- | - | ------------ | - | --- | --------- |  | - | ----- | - |  | - | ----- | -
|                               |  | Agricultural  |       |   | Construction |   |     | Financial |  |   |      
|                               |  | Equipment     |       |   | Equipment    |   |     | Services  |  |   | Total |  
|                               |  |               |       |   |              |   |     |           |  |   |       |  
|                               |  | (in millions) |      
|Balance at January 1, 2003.    |  | $             | 1,764 |   |              | $ | 631 |           |  | $ | 138   |   |  | $ | 2,533 |  
|Divestitures                   |  |               |      |   |              |   | (3  | )         |  |   |      |   |  |   | (3    | )
|Impact of foreign exchange     |  |               | 11    |   |              |   | 6   |           |  |   | 7     |   |  |   | 24    |  
|                               |  |               |       |   |              |   |     |           |  |   |       |  
|Balance at December 31, 2003   |  |               | 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 |  
|                               |  |               |       |   |              |   |     |           |  |   |       |  



F-28



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                               |                      |               |  |         |       |   |             |              |  |   |     |    |  |             |     |     |              |   |       |     |  |   |     |    |  |   |     |     | 
|---------------------------------------------- | -------------------- | ------------- |  | ------- | ----- | - | ----------- | ------------ |  | - | --- | -- |  | ----------- | --- | --- | ------------ | - | ----- | --- |  | - | --- | -- |  | - | --- | --- | 
|                                               |                      |               |  | 2004    |       |   | 2003        |             
|                                               |                      |               |  |         |       |   |             |             
|                                               |                      | Weighted      |  |         |       |   | Accumulated |              |  |   |     |    |  | Accumulated |     |     |             
|                                               |                      | Avg. Life     |  |         | Gross |   |             | Amortization |  |   | Net |    |  | Gross       |     |     | Amortization |   |       | Net | 
|                                               |                      |               |  |         |       |   |             |              |  |   |     |    |  |             |     |     |              |   |       |     | 
|                                               |                      | (in millions) | 
|Intangible assets subject to Amortization:     |                      |               |  |         |       |   |             |              |  |   |     |    |  |             |     |     |              |   |       |     |  |   |     |    |  |   |     |    
|                                               | Engineering Drawings |               |  | 20      |       |   | $           | 335          |  |   | $   | 86 |  |             | $   | 249 |              |   | $     | 335 |  |   | $   | 69 |  |   | $   | 266 | 
|                                               | Dealer Networks      |               |  | 25      |       |   |             | 216          |  |   |     | 44 |  |             |     | 172 |              |   |       | 216 |  |   |     | 35 |  |   |     | 181 | 
|                                               | Software             |               |  | 5       |       |   |             | 53           |  |   |     | 27 |  |             |     | 26  |              |   |       | 24  |  |   |     | 9  |  |   |     | 15  | 
|                                               | Other                |               |  | 10  30 |       |   |             | 123          |  |   |     | 46 |  |             |     | 77  |              |   |       | 147 |  |   |     | 60 |  |   |     | 87  | 
|                                               |                      |               |  |         |       |   |             |              |  |   |     |    |  |             |     |     |              |   |       |     | 
|                                               |                      |               |  |         |       |   | 727         |              |  |   | 203 |    |  |             | 524 |     |              |   | 722   |     |  |   | 173 |    |  |   | 549 |    
|                                               |                      |               |  |         |       |   |             |              |  |   |     |    |  |             |     |     |              |   |       |     | 
|Intangible assets not subject to amortization: |                      |               |  |         |       |   |             |              |  |   |     |    |  |             |     |     |              |   |       |     |  |   |     |    |  |   |     |    
|                                               | Trademarks           |               |  |         |       |   |             | 273          |  |   |     |   |  |             |     | 273 |              |   |       | 273 |  |   |     |   |  |   |     | 273 | 
|                                               | Pension              |               |  |         |       |   |             | 37           |  |   |     |   |  |             |     | 37  |              |   |       | 17  |  |   |     |   |  |   |     | 17  | 
|                                               |                      |               |  |         |       |   |             |              |  |   |     |    |  |             |     |     |              |   |       |     | 
|                                               |                      |               |  |         |       | $ | 1,037       |              |  | $ | 203 |    |  | $           | 834 |     |              | $ | 1,012 |     |  | $ | 173 |    |  | $ | 839 |    
|                                               |                      |               |  |         |       |   |             |              |  |   |     |    |  |             |     |     |              |   |       |     | 





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



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







F-29



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           |  |   |       |       |  |  |      |  | 
|---------------------------------------------------------------------------------- | ----------------------- | ------------- | ------- |  | ------ | --------- | ----- | ---------- | --------- | - | -------- | ----- |  | ----- | ----- | ----- | --------- | - | ----- | --------- |  | - | ----- | ----- |  |  | ---- |  | 
|                                                                                   |                         |               |         |  |        | Drawn     |       |            |           |   |         
|                                                                                   |                         |               |         |  |        |           |       |            |           |   |         
|                                                                                   |                         |               |         |  |        | Equipment |       |            | Financial |   |          |       |  |       |       |      
|                                                                                   |                         | Maturity      |         |  | Amount |           |       | Operations |           |   | Services |       |  | Total |       |       | Available |   |       | Guarantor | 
|                                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           | 
|                                                                                   |                         | (In millions) |         |  |       
|Committed Lines:                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           |  |   |       |       |  |  |      | 
|Revolving syndicated backup credit facility                                        |                         |               | 2005    |  |        | $         | 1,800 |            |           | $ |         |       |  | $     |      |       |           | $ |      |           |  | $ | 1,800 |       |  |  | Fiat | 
|Backup credit facilities with third parties shared with some
    Fiat subsidiaries |                         |               | 2005    |  |        |           | 125   |            |           |   |         |       |  |       |      |       |           |   |      |           |  |   | 125   |       |  |  | Fiat | 
|Other backup facilities with third parties                                         |                         |               | 2005    |  |        |           | 100   |            |           |   |         |       |  |       |      |       |           |   |      |           |  |   | 100   |       |  |  | Fiat | 
|Other committed lines guaranteed by Fiat                                           |                         |               | various |  |        |           | 162   |            |           |   | 62       |       |  |       | 109   |       |           |   | 171   |           |  |   | (9    | )(1)  |  |  | Fiat | 
|Other committed lines (Financial Services, Brazil)                                 |                         |               | various |  |        |           | 1,086 |            |           |   |         |       |  |       | 1,000 |       |           |   | 1,000 |           |  |   | 86    |       |  |  | Fiat | 
|Revolving credit facility with Fiat affiliate                                      |                         |               | 2005    |  |        |           | 1,000 |            |           |   | 248      |       |  |       | 193   |       |           |   | 441   |           |  |   | 559   |       |  |  | Fiat | 
|Other committed lines                                                              |                         |               |         |  |        |           | 298   |            |           |   | 188      |       |  |       | 0     |       |           |   | 188   |           |  |   | 110   |       |  |  |      | 
|                                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           | 
|                                                                                   | Total committed lines   |               |         |  |        |           |       | 4,571      |           |   |          | 498   |  |       |       | 1,302 |           |   |       | 1,800     |  |   |       | 2,771 |  |  |      |  | 
|Uncommitted Lines                                                                  |                         |               |         |  |        |           | 692   |            |           |   | 537      |       |  |       | 102   |       |           |   | 639   |           |  |   | 53    |       |  |  |      | 
|Asset-backed Programs                                                              |                         |               | various |  |        |           | 1,699 |            |           |   |         |       |  |       | 448   |       |           |   | 448   |           |  |   | 1,251 |       |  |  |      | 
|                                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           | 
|                                                                                   | Total credit facilities |               |         |  |        |           | $     | 6,962      |           |   | $        | 1,035 |  |       | $     | 1,852 |           |   | $     | 2,887     |  |   | $     | 4,075 |  |  |      |  | 
|                                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           | 
|Drawn short-term debt                                                              |                         |               |         |  |        |           |       |            |           | $ | 973      |       |  | $     | 754   |       |           | $ | 1,727 |           |  |   |       |       |  |  |      | 
|                                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           | 
|Drawn long-term debt                                                               |                         |               |         |  |        |           |       |            |           | $ | 62       |       |  | $     | 1,098 |       |           | $ | 1,160 |           |  |   |       |       |  |  |      | 
|                                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           | 
|Total Credit facilities with Fiat affiliates or guaranteed by
    Fiat affiliates  |                         |               |         |  |        | $         | 4,273 |            |           | $ | 310      |       |  | $     | 1,302 |       |           | $ | 1,612 |           |  | $ | 2,661 |       |  |  |      | 
|                                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           | 
|BCI debt guaranteed by Fiat                                                        |                         |               |         |  |        |           |       |            |           | $ | 169      |       |  |       |       |       |           | $ | 169   |           |  |   |       |       |  |  |      | 
|                                                                                   |                         |               |         |  |        |           |       |            |           |   |          |       |  |       |       |       |           |   |       |           | 






|    |                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes translation to USD of draw-downs in other currencies.
    The draw downs are within the limits when stated in the
    contractual currency.

F-30



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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



|                                                  |                       |                                 |     |       |           |   |     |              |     |           |            |       |           |          |       |       |              |   |     |     |     |   |       |       |       | 
|------------------------------------------------- | --------------------- | ------------------------------- | --- | ----- | --------- | - | --- | ------------ | --- | --------- | ---------- | ----- | --------- | -------- | ----- | ----- | ------------ | - | --- | --- | --- | - | ----- | ----- | ----- | 
|                                                  |                       | 2004                            |     |       | 2003      |  
|                                                  |                       |                                 |     |       |           |  
|                                                  |                       | Equipment                       |     |       | Financial |   |     |              |     | Equipment |            |       | Financial |          |       |      
|                                                  |                       | Operations                      |     |       | Services  |   |     | Consolidated |     |           | Operations |       |           | Services |       |       | Consolidated |  
|                                                  |                       |                                 |     |       |           |   |     |              |     |           |            |       |           |          |       |       |              |  
|                                                  |                       | (in millions)                   |    
|Drawings under ABCP liquidity facilities          |                       | $                               |    |       |           | $ | 448 |              |     | $         | 448        |       |           | $        |      |       |              | $ | 83  |     |     | $ | 83    |      
|Drawings under other credit lines  third parties |                       |                                 | 725 |       |           |   | 113 |              |     |           | 838        |       |           |          | 1,119 |       |              |   | 184 |     |     |   | 1,303 |      
|Drawings under credit lines  Fiat affiliates     |                       |                                 | 248 |       |           |   | 193 |              |     |           | 441        |       |           |          | 403   |       |              |   | 295 |     |     |   | 698   |      
|                                                  |                       |                                 |     |       |           |   |     |              |     |           |            |       |           |          |       |       |              |  
|                                                  |                       | Drawn under credit lines & ABCP |     |       | 973       |   |     |              | 754 |           |            |       | 1,727     |          |       |       | 1,522        |   |     |     | 562 |   |       |       | 2,084 | 
|Other short-term debt  third parties             |                       |                                 | 8   |       |           |   | 91  |              |     |           | 99         |       |           |          |      |       |              |   | 26  |     |     |   | 26    |      
|Other short-term debt  Fiat affiliates           |                       |                                 | 83  |       |           |   | 148 |              |     |           | 231        |       |           |          |      |       |              |   |    |     |     |   |      |      
|Intersegment short-term debt                      |                       |                                 | 24  |       |           |   | 414 |              |     |           |           |       |           |          |      |       |              |   | 312 |     |     |   |      |      
|                                                  |                       |                                 |     |       |           |   |     |              |     |           |            |       |           |          |       |       |              |  
|                                                  | Total short-term debt |                                 | $   | 1,088 |           |   | $   | 1,407        |     |           | $          | 2,057 |           |          | $     | 1,522 |              |   | $   | 900 |     |   | $     | 2,110 |      
|                                                  |                       |                                 |     |       |           |   |     |              |     |           |            |       |           |          |       |       |              |  











| |   |                                                                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the initial maturity of the facility/credit line;                                                                                                                                                                                                         
|
| |  | the rating of short-term/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/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-31



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                                     |                                                                                            |                                                   |    |       |           |  |       |              |       |           |            |       |           |          |    |       |              |  |       |      |       |  |       |       |       | 
|---------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------ | ------------------------------------------------- | -- | ----- | --------- |  | ----- | ------------ | ----- | --------- | ---------- | ----- | --------- | -------- | -- | ----- | ------------ |  | ----- | ---- | ----- |  | ----- | ----- | ----- | 
|                                                                                                     |                                                                                            | 2004                                              |    |       | 2003      | 
|                                                                                                     |                                                                                            |                                                   |    |       |           | 
|                                                                                                     |                                                                                            | Equipment                                         |    |       | Financial |  |       |              |       | Equipment |            |       | Financial |          |    |      
|                                                                                                     |                                                                                            | Operations                                        |    |       | Services  |  |       | Consolidated |       |           | Operations |       |           | Services |    |       | Consolidated | 
|                                                                                                     |                                                                                            |                                                   |    |       |           |  |       |              |       |           |            |       |           |          |    |       |              | 
|                                                                                                     |                                                                                            | (in millions)                                     |   
|Public Notes:                                                                                        |                                                                                            |                                                   |    |       |           |  |       |              |       |           |            |       |           |          |    |       |              |  |       |      |       |  |       |      
|                                                                                                     | Payable in 2005, interest rate of 7.25%                                                    |                                                   | $  | 218   |           |  | $     |             |       |           | $          | 218   |           |          | $  | 244   |              |  | $     |     |       |  | $     | 244   |      
|                                                                                                     | Payable in 2007, interest rate of 6.75%                                                    |                                                   |    |      |           |  |       | 127          |       |           |            | 127   |           |          |    |      |              |  |       | 127  |       |  |       | 127   |      
|                                                                                                     | Payable in 2009, interest rate of 6.00%                                                    |                                                   |    | 474   |           |  |       |             |       |           |            | 474   |           |          |    |      |              |  |       |     |       |  |       |      |      
|                                                                                                     | Payable in 2011, average interest rate of 9.22%                                            |                                                   |    | 1,052 |           |  |       |             |       |           |            | 1,052 |           |          |    | 1,052 |              |  |       |     |       |  |       | 1,052 |      
|                                                                                                     | Payable in 2016, interest rate of 7.25%                                                    |                                                   |    | 254   |           |  |       |             |       |           |            | 254   |           |          |    | 254   |              |  |       |     |       |  |       | 254   |      
|Third Party Loan:                                                                                    |                                                                                            |                                                   |    |       |           |  |       |              |       |           |            |       |           |          |    |       |              |  |       |      |       |  |       |      
|                                                                                                     | Payable in 2007, interest rate of 1.61% (floating rate)                                    |                                                   |    | 169   |           |  |       |             |       |           |            | 169   |           |          |    | 188   |              |  |       |     |       |  |       | 188   |      
|Notes with Fiat affiliates:                                                                          |                                                                                            |                                                   |    |       |           |  |       |              |       |           |            |       |           |          |    |       |              |  |       |      |       |  |       |      
|                                                                                                     | Payable in 2005, interest rate of 3.50%                                                    |                                                   |    |      |           |  |       |             |       |           |            |      |           |          |    | 300   |              |  |       |     |       |  |       | 300   |      
|                                                                                                     | Payable in 2006, interest rate of 3.59% (floating rate)                                    |                                                   |    | 700   |           |  |       |             |       |           |            | 700   |           |          |    | 700   |              |  |       |     |       |  |       | 700   |      
|                                                                                                     | Payable in 2006, interest rate of 3.33% (floating rate)                                    |                                                   |    | 109   |           |  |       |             |       |           |            | 109   |           |          |    | 101   |              |  |       |     |       |  |       | 101   |      
|                                                                                                     | Other affiliated notes, weighted average interest rate of 5.75%
    and 7.51% respectively |                                                   |    | 21    |           |  |       |             |       |           |            | 21    |           |          |    | 262   |              |  |       |     |       |  |       | 262   |      
|                                                                                                     | Other affiliate notes, weighted-average interest rate of 4.86%
    and 4.11% respectively  |                                                   |    |      |           |  |       | 219          |       |           |            | 219   |           |          |    |      |              |  |       | 306  |       |  |       | 306   |      
|Long-term drawings under credit lines                                                                |                                                                                            |                                                   | 62 |       |           |  | 1,098 |              |       |           | 1,160      |       |           |          | 92 |       |              |  | 1,219 |      |       |  | 1,311 |      
|Other debt                                                                                           |                                                                                            |                                                   | 25 |       |           |  | 378   |              |       |           | 403        |       |           |          |   |       |              |  | 41    |      |       |  | 41    |      
|Intersegment debt with Equipment Operations payable 2006,
    interest rate of 2.44% (floating rate) |                                                                                            |                                                   |   |       |           |  | 700   |              |       |           |           |       |           |          |   |       |              |  | 700   |      |       |  |      |      
|                                                                                                     |                                                                                            |                                                   |    |       |           |  |       |              |       |           |            |       |           |          |    |       |              | 
|                                                                                                     |                                                                                            | Total long-term debt                              |    |       | 3,084     |  |       |              | 2,522 |           |            |       | 4,906     |          |    |       | 3,193        |  |       |      | 2,393 |  |       |       | 4,886 | 
|                                                                                                     | Less-current maturities                                                                    |                                                   |    | (257  | )         |  |       | (629         | )     |           |            | (886  | )         |          |    | (88   | )            |  |       | (755 | )     |  |       | (843  | )    
|                                                                                                     |                                                                                            |                                                   |    |       |           |  |       |              |       |           |            |       |           |          |    |       |              | 
|                                                                                                     |                                                                                            | Total long-term debt excluding current maturities |    | $     | 2,827     |  |       | $            | 1,893 |           |            | $     | 4,020     |          |    | $     | 3,105        |  |       | $    | 1,638 |  |       | $     | 4,043 | 
|                                                                                                     |                                                                                            |                                                   |    |       |           |  |       |              |       |           |            |       |           |          |    |       |              | 

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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                    |       |               |       |       |           |   |       |              |  |   |       |       | 
|------------------- | ----- | ------------- | ----- | ----- | --------- | - | ----- | ------------ |  | - | ----- | ----- | 
|                    |       | Equipment     |       |       | Financial |   |       |             
|                    |       | Operations    |       |       | Services  |   |       | Consolidated | 
|                    |       |               |       |       |           |   |       |              | 
|                    |       | (in millions) |      
|2006                |       | $             | 947   |       |           | $ | 1,179 |              |  | $ | 1,426 |      
|2007                |       |               | 65    |       |           |   | 416   |              |  |   | 481   |      
|2008                |       |               | 9     |       |           |   | 215   |              |  |   | 224   |      
|2009                |       |               | 503   |       |           |   | 64    |              |  |   | 567   |      
|2010 and thereafter |       |               | 1,303 |       |           |   | 19    |              |  |   | 1,322 |      
|                    |       |               |       |       |           |   |       |              | 
|                    | Total |               | $     | 2,827 |           |   | $     | 1,893        |  |   | $     | 4,020 | 
|                    |       |               |       |       |           |   |       |              | 

1 4 1 4 1 4








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





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



|                                                                                                                                                                                     |  |      |     |               |      |   |      |      |  |   |      |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ---- | --- | ------------- | ---- | - | ---- | ---- |  | - | ---- | -
|                                                                                                                                                                                     |  | 2004 |     |               | 2003 |   |      | 2002 | 
|                                                                                                                                                                                     |  |      |     |               |      |   |      |      | 
|                                                                                                                                                                                     |  |      |     | (in millions) |     
|The Netherlands source                                                                                                                                                               |  | $    | (25 | )             |      | $ | (80  | )    |  | $ | (43  | )
|Foreign sources                                                                                                                                                                      |  |      | 184 |               |      |   | (138 | )    |  |   | (83  | )
|                                                                                                                                                                                     |  |      |     |               |      |   |      |      | 
|Income (loss) before taxes, minority interest, equity in income
    (loss) of unconsolidated subsidiaries and affiliates and
    cumulative effect of change in accounting principle |  | $    | 159 |               |      | $ | (218 | )    |  | $ | (126 | )
|                                                                                                                                                                                     |  |      |     |               |      |   |      |      | 

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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                      |                               |               |    |    |      |   |     |      |   |   |     |     |  
|--------------------- | ----------------------------- | ------------- | -- | -- | ---- | - | --- | ---- | - | - | --- | --- | -
|                      |                               | 2004          |    |    | 2003 |   |     | 2002 |  
|                      |                               |               |    |    |      |   |     |      |  
|                      |                               | (in millions) |   
|Current income taxes  |                               | $             | 35 |    |      | $ | 23  |      |   | $ | 13  |    
|Deferred income taxes |                               |               | 4  |    |      |   | (72 | )    |   |   | (27 | )  
|                      |                               |               |    |    |      |   |     |      |  
|                      | Total tax provision (benefit) |               | $  | 39 |      |   | $   | (49  | ) |   | $   | (14 | )
|                      |                               |               |    |    |      |   |     |      |  



|                                                     |                               |      |     |    |      |  |     |      |    |  |     |     |   
|---------------------------------------------------- | ----------------------------- | ---- | --- | -- | ---- |  | --- | ---- | -- |  | --- | --- | --
|                                                     |                               | 2004 |     |    | 2003 |  |     | 2002 |   
|                                                     |                               |      |     |    |      |  |     |      |   
|Tax provision (benefit) at the Netherlands statutory |                               |      | 35  | %  |      |  | (35 | )%   |    |  | (35 | )% 
|Foreign income taxed at different rates              |                               |      | 13  |    |      |  | 2   |      |    |  | 10  |    
|Change in tax status of certain entities             |                               |      | 6   |    |      |  |    |      |    |  |    |    
|Effect of tax loss carryforwards                     |                               |      | (10 | )  |      |  | (5  | )    |    |  | (6  | )  
|Change in valuation allowance                        |                               |      | 39  |    |      |  | 6   |      |    |  | 36  |    
|Dividend withholding taxes and credits               |                               |      | 1   |    |      |  | 1   |      |    |  | (15 | )  
|Reversal of tax contingency reserves                 |                               |      | (11 | )  |      |  |    |      |    |  |    |    
|Stock deduction from legal entity rationalization    |                               |      | (41 | )  |      |  |    |      |    |  |    |    
|Other                                                |                               |      | (7  | )  |      |  | 9   |      |    |  | (1  | )  
|                                                     |                               |      |     |    |      |  |     |      |   
|                                                     | Total tax provision (benefit) |      |     | 25 | %    |  |     | (22  | )% |  |     | (11 | )%
|                                                     |                               |      |     |    |      |  |     |      |   

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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                          |                                     |                                |                         |        |       |       |   |        |       |     | 
|------------------------- | ----------------------------------- | ------------------------------ | ----------------------- | ------ | ----- | ----- | - | ------ | ----- | --- | 
|                          |                                     | 2004                           |                         |        | 2003  |      
|                          |                                     |                                |                         |        |       |      
|                          |                                     | (in millions)                  |                        
|Deferred tax assets:      |                                     |                                |                         |        |       |       |   |       
|                          | Marketing and selling incentives    |                                | $                       | 136    |       |       | $ | 127    |      
|                          | Bad debt reserves                   |                                |                         | 41     |       |       |   | 40     |      
|                          | Pension and postretirement benefits |                                |                         | 677    |       |       |   | 536    |      
|                          | Inventories                         |                                |                         | 32     |       |       |   | 32     |      
|                          | Warranty reserves                   |                                |                         | 94     |       |       |   | 79     |      
|                          | Restructuring reserves              |                                |                         | 10     |       |       |   | 55     |      
|                          | Other reserves                      |                                |                         | 426    |       |       |   | 513    |      
|                          | Tax loss carryforwards              |                                |                         | 1,521  |       |       |   | 1,585  |      
|                          | Less: Valuation allowance           |                                |                         | (1,025 | )     |       |   | (1,167 | )    
|                          |                                     |                                |                         |        |       |      
|                          |                                     | Total deferred tax assets      |                         |        | 1,912 |       |   |        | 1,800 |    
|                          |                                     |                                |                         |        |       |      
|Deferred tax liabilities: |                                     |                                |                         |        |       |       |   |       
|                          | Property, plant and equipment, net  |                                |                         | 67     |       |       |   | 190    |      
|                          | Intangibles                         |                                |                         | 261    |       |       |   | 274    |      
|                          | Inventories                         |                                |                         | 75     |       |       |   | 35     |      
|                          | Other                               |                                |                         | 349    |       |       |   | 396    |      
|                          |                                     |                                |                         |        |       |      
|                          |                                     | Total deferred tax liabilities |                         |        | 752   |       |   |        | 895   |    
|                          |                                     |                                |                         |        |       |      
|                          |                                     |                                | Net deferred tax assets |        | $     | 1,160 |   |        | $     | 905 | 
|                          |                                     |                                |                         |        |       |      



|                                 |                        |               |     |       |      |   |      |     | 
|-------------------------------- | ---------------------- | ------------- | --- | ----- | ---- | - | ---- | --- | 
|                                 |                        | 2004          |     |       | 2003 |  
|                                 |                        |               |     |       |      |  
|                                 |                        | (in millions) |    
|Current deferred tax asset       |                        | $             | 374 |       |      | $ | 331  |    
|Long-term deferred tax asset     |                        |               | 858 |       |      |   | 682  |    
|Current deferred tax liability   |                        |               | (5  | )     |      |   | (4   | )  
|Long-term deferred tax liability |                        |               | (67 | )     |      |   | (104 | )  
|                                 |                        |               |     |       |      |  
|                                 | Net deferred tax asset |               | $   | 1,160 |      |   | $    | 905 | 
|                                 |                        |               |     |       |      |  





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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)














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



F-37



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












| |   |                                                                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | closing of CNHs East Moline, United States combine
    manufacturing plant and moving production to the Grand Island,
    United States plant;                                                                                                         
|
| |  | rationalization of the crawler excavator product line produced
    at the Crepy, France facility;                                                                                                                                                       
|
| |  | transfer of production of the loader/backhoe product line
    produced at the Crepy, France facility to the Imola, Italy
    facility;                                                                                                                  
|
| |  | closing of CNHs Neustadt, Germany manufacturing facility;                                                                                                                                                                                              
|
| |  | rationalization of O&K Dealer Network; 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-38



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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, 2002   |  | $             | 52   |   |                  | $ | 5   |             |  | $ |              |   |  | $     | 17  |   |  | $ | 74   |  
|Additions                    |  |               | 29   |   |                  |   | 9   |             |  |   | 13            |   |  |       | 10  |   |  |   | 61   |  
|Reserves utilized: cash      |  |               | (48  | ) |                  |   | (1  | )           |  |   |              |   |  |       | (13 | ) |  |   | (62  | )
|Reserves utilized: non-cash  |  |               |     |   |                  |   |    |             |  |   | (10           | ) |  |       | (3  | ) |  |   | (13  | )
|Changes in estimates         |  |               | (3   | ) |                  |   | (7  | )           |  |   |              |   |  |       |    |   |  |   | (10  | )
|                             |  |               |      |   |                  |   |     |             |  |   |               |   |  |       |    
|Balance at December 31, 2002 |  |               | 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   |  
|                             |  |               |      |   |                  |   |     |             |  |   |               |   |  |       |    





|         |                                                   
|-------- | --------------------------------------------------
|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)












|                                                           |  |       |       |  |          |  |       |       |  |  |          |  |  |       |       |  |          |  |       |  |  |  |       | 
|---------------------------------------------------------- |  | ----- | ----- |  | -------- |  | ----- | ----- |  |  | -------- |  |  | ----- | ----- |  | -------- |  | ----- |  |  |  | ----- | 
|                                                           |  | 2004  |       |  | 2003     |  |       | 2002  | 
|                                                           |  |       |       |  |          |  |       |       | 
|                                                           |  | 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            |  |       | 5.75% |  |          |  | 5.07% |       |  |  | 6.25%    |  |  |       | 5.31% |  |          |  | 6.75% |  |  |  | 5.58% | 
|Weighted-average discount rates for expense                |  |       | 6.25% |  |          |  | 5.31% |       |  |  | 6.75%    |  |  |       | 5.58% |  |          |  | 7.25% |  |  |  | 5.91% | 
|Rate of increase in future compensation                    |  |       | N/A   |  |          |  | 3.45% |       |  |  | N/A      |  |  |       | 3.43% |  |          |  | N/A   |  |  |  | 3.42% | 
|Weighted-average, long-term rates of return on plan assets |  |       | 8.75% |  |          |  | 7.16% |       |  |  | 8.75%    |  |  |       | 7.33% |  |          |  | 9.00% |  |  |  | 7.33% | 





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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                                               |  |       |       |   |          |  |      |       |  |  |          |   |  |       |      |   |          |  |       |   |  |  |      |  
|-------------------------------------------------------------- |  | ----- | ----- | - | -------- |  | ---- | ----- |  |  | -------- | - |  | ----- | ---- | - | -------- |  | ----- | - |  |  | ---- | -
|                                                               |  | 2004  |       |   | 2003     |  |      | 2002  | 
|                                                               |  |       |       |   |          |  |      |       | 
|                                                               |  | U.S.  |       |   | Canadian |  |      | U.S.  |  |  | Canadian |   |  | U.S.  |      |   | Canadian | 
|                                                               |  | Plans |       |   | Plan     |  |      | Plans |  |  | Plan     |   |  | Plans |      |   | Plan     | 
|                                                               |  |       |       |   |          |  |      |       |  |  |          |   |  |       |      |   |          | 
|Weighted-average discount rates for obligations                |  |       | 5.75  | % |          |  | 5.75 | %     |  |  | 6.25     | % |  |       | 6.00 | % |          |  | 6.75  | % |  |  | 6.75 | %
|Weighted-average discount rates for expense                    |  |       | 6.25  | % |          |  | 6.00 | %     |  |  | 6.75     | % |  |       | 6.75 | % |          |  | 7.25  | % |  |  | 6.50 | %
|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 |  |       | 2009  |   |          |  | 2012 |       |  |  | 2008     |   |  |       | 2011 |   |          |  | 2007  |   |  |  | 2010 |  





|                |                   |            |  |               |              |  |  |             |               |  |              |    |   |               |  |     |              |  |  |      |   |  |      |    |   |      |  |    |   |  |  |    |   |  |  |    |  
|--------------- | ----------------- | ---------- |  | ------------- | ------------ |  |  | ----------- | ------------- |  | ------------ | -- | - | ------------- |  | --- | ------------ |  |  | ---- | - |  | ---- | -- | - | ---- |  | -- | - |  |  | -- | - |  |  | -- | -
|                |                   | 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, | 
|                |                   | 2005       |  |               | 2004         |  |  | 2003        |               |  | 2005         |    |   | 2004          |  |     | 2003         |  |  | 2005 |   |  | 2004 |    |   | 2003 | 
|                |                   |            |  |               |              |  |  |             |               |  |              |    |   |               |  |     |              |  |  |      |   |  |      |    |   |      | 
|Asset category: |                   |            |  |               |              |  |  |             |               |  |              |    |   |               |  |     |              |  |  |      |   |  |      |    |   |      |  |    |   |  |  |    |   |  |  |   
|                | Equity securities |            |  | 53            | %            |  |  | 54          | %             |  |              | 54 | % |               |  | 60% |              |  |  | 59   | % |  |      | 68 | % |      |  | 45 | % |  |  | 65 | % |  |  | 71 | %
|                | Debt securities   |            |  | 47            | %            |  |  | 46          | %             |  |              | 45 | % |               |  | 40% |              |  |  | 41   | % |  |      | 32 | % |      |  | 28 | % |  |  | 12 | % |  |  | 13 | %
|                | Cash/ Other       |            |  | 0             | %            |  |  | 0           | %             |  |              | 1  | % |               |  | 0%  |              |  |  | 0    | % |  |      | 0  | % |      |  | 27 | % |  |  | 23 | % |  |  | 16 | %





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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                              |                 |                  |     |                |          |       |        |               |          |   |          |     |  |       |    |    |  |   |    |     | 
|--------------------------------------------- | --------------- | ---------------- | --- | -------------- | -------- | ----- | ------ | ------------- | -------- | - | -------- | --- |  | ----- | -- | -- |  | - | -- | --- | 
|                                              |                 |                  |     |                |          | 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:                       |                 |                  |     |                |          |       |        |               |          |   |          |     |  |       |    |    |  |   |    |    
|                                              | 2005 (expected) |                  | $   | 90             |          |       | $      | 70            |          |   | $        | 70  |  |       | $  | 4  |  |   | $  | N/A | 
|                                              |                 |                  |     |                |          |       |        |               |          |   |          |     |  |       |   
|Expected benefit payments and reimbursements: |                 |                  |     |                |          |       |        |               |          |   |          |     |  |       |    |    |  |   |    |    
|                                              | 2005            |                  | $   | 57             |          |       | $      | 90            |          |   | $        | 83  |  |       | $  | 2  |  |   | $  |    | 
|                                              | 2006            |                  |     | 58             |          |       |        | 86            |          |   |          | 89  |  |       |    | 3  |  |   |    | 3   | 
|                                              | 2007            |                  |     | 60             |          |       |        | 86            |          |   |          | 95  |  |       |    | 3  |  |   |    | 3   | 
|                                              | 2008            |                  |     | 61             |          |       |        | 88            |          |   |          | 99  |  |       |    | 3  |  |   |    | 3   | 
|                                              | 2009            |                  |     | 63             |          |       |        | 90            |          |   |          | 103 |  |       |    | 3  |  |   |    | 4   | 
|                                              | 2010  2014     |                  |     | 341            |          |       |        | 507           |          |   |          | 555 |  |       |    | 14 |  |   |    | 18  | 
|                                              |                 |                  |     |                |          |       |        |               |          |   |          |     |  |       |   
|Total                                         |                 | $                | 640 |                |          | $     | 947    |               |          | $ | 1,024    |     |  | $     | 28 |    |  | $ | 31 |    
|                                              |                 |                  |     |                |          |       |        |               |          |   |          |     |  |       |   

F-42



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                              |  |                  |        |                      |          |   |        |      |  |   |        |   |  |   |        |  
|--------------------------------------------------------------------------------------------- |  | ---------------- | ------ | -------------------- | -------- | - | ------ | ---- |  | - | ------ | - |  | - | ------ | -
|                                                                                              |  |                  |        | Other Postretirement |         
|                                                                                              |  | Pension Benefits |        |                      | Benefits |  
|                                                                                              |  |                  |        |                      |          |  
|                                                                                              |  | 2004             |        |                      | 2003     |   |        | 2004 |  |   | 2003   |  
|                                                                                              |  |                  |        |                      |          |   |        |      |  |   |        |  
|                                                                                              |  | (in millions)    |       
|Change in benefit obligations:                                                                |  |                  |        |                      |          |   |        |      |  |   |        |   |  |   |        |  
|Actuarial present value of benefit obligation at beginning of
    measurement period          |  | $                | 2,426  |                      |          | $ | 2,027  |      |  | $ | 1,494  |   |  | $ | 1,019  |  
|Service cost                                                                                  |  |                  | 26     |                      |          |   | 27     |      |  |   | 15     |   |  |   | 17     |  
|Interest cost                                                                                 |  |                  | 142    |                      |          |   | 123    |      |  |   | 83     |   |  |   | 71     |  
|Plan participants contributions                                                              |  |                  | 5      |                      |          |   | 5      |      |  |   | 7      |   |  |   | 5      |  
|Actuarial loss                                                                                |  |                  | 276    |                      |          |   | 131    |      |  |   | 197    |   |  |   | 366    |  
|Currency translation adjustments                                                              |  |                  | 127    |                      |          |   | 185    |      |  |   | 3      |   |  |   | 7      |  
|Gross benefits paid                                                                           |  |                  | (156   | )                    |          |   | (125   | )    |  |   | (75    | ) |  |   | (63    | )
|Plan amendments                                                                               |  |                  | (30    | )                    |          |   |       |      |  |   | (34    | ) |  |   | (21    | )
|Acquisitions/divestitures                                                                     |  |                  |       |                      |          |   | (5     | )    |  |   |       |   |  |   |       |  
|Curtailment loss                                                                              |  |                  |       |                      |          |   | 58     |      |  |   |       |   |  |   | 93     |  
|Medicare Part D                                                                               |  |                  |       |                      |          |   |       |      |  |   | (74    | ) |  |   |       |  
|                                                                                              |  |                  |        |                      |          |   |        |      |  |   |        |  
|Actuarial present value of benefit obligation at end of
    measurement period                |  |                  | 2,816  |                      |          |   | 2,426  |      |  |   | 1,616  |   |  |   | 1,494  |  
|                                                                                              |  |                  |        |                      |          |   |        |      |  |   |        |  
|Change in plan assets:                                                                        |  |                  |        |                      |          |   |        |      |  |   |        |   |  |   |        |  
|Plan assets at fair value at beginning of measurement period                                  |  |                  | 1,393  |                      |          |   | 1,130  |      |  |   |       |   |  |   |       |  
|Actual return on plan assets                                                                  |  |                  | 164    |                      |          |   | 182    |      |  |   |       |   |  |   |       |  
|Currency translation adjustments                                                              |  |                  | 71     |                      |          |   | 92     |      |  |   |       |   |  |   |       |  
|Employer contributions                                                                        |  |                  | 208    |                      |          |   | 114    |      |  |   | 68     |   |  |   | 58     |  
|Plan participants contributions                                                              |  |                  | 5      |                      |          |   | 5      |      |  |   | 7      |   |  |   | 5      |  
|Gross benefits paid                                                                           |  |                  | (156   | )                    |          |   | (125   | )    |  |   | (75    | ) |  |   | (63    | )
|Acquisitions/divestitures                                                                     |  |                  |       |                      |          |   | (5     | )    |  |   |       |   |  |   |       |  
|                                                                                              |  |                  |        |                      |          |   |        |      |  |   |        |  
|Plan assets at fair value at end of measurement period                                        |  |                  | 1,685  |                      |          |   | 1,393  |      |  |   |       |   |  |   |       |  
|                                                                                              |  |                  |        |                      |          |   |        |      |  |   |        |  
|Funded status:                                                                                |  |                  | (1,131 | )                    |          |   | (1,033 | )    |  |   | (1,616 | ) |  |   | (1,494 | )
|Unrecognized prior service cost                                                               |  |                  | 15     |                      |          |   | 17     |      |  |   | (55    | ) |  |   | (46    | )
|Unrecognized net loss resulting from plan experience and changes
    in actuarial assumptions |  |                  | 892    |                      |          |   | 718    |      |  |   | 783    |   |  |   | 709    |  
|Remaining unrecognized net asset at initial application                                       |  |                  |       |                      |          |   |       |      |  |   | 26     |   |  |   | 37     |  
|                                                                                              |  |                  |        |                      |          |   |        |      |  |   |        |  
|Net amount recognized at end of year                                                          |  | $                | (224   | )                    |          | $ | (298   | )    |  | $ | (862   | ) |  | $ | (794   | )
|                                                                                              |  |                  |        |                      |          |   |        |      |  |   |        |  

F-43



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                                      |  |                  |        |                |          |       |        |      |  |   |      |   |  |   |      |  
|--------------------------------------------------------------------- |  | ---------------- | ------ | -------------- | -------- | ----- | ------ | ---- |  | - | ---- | - |  | - | ---- | -
|                                                                      |  |                  |        |                |          | Other |       
|                                                                      |  |                  |        | Postretirement |         
|                                                                      |  | Pension Benefits |        |                | Benefits |      
|                                                                      |  |                  |        |                |          |      
|                                                                      |  | 2004             |        |                | 2003     |       |        | 2004 |  |   | 2003 |  
|                                                                      |  |                  |        |                |          |       |        |      |  |   |      |  
|                                                                      |  | (in millions)    |       
|Amounts recognized in the consolidated balance sheets consist
    of: |  |                  |        |                |          |       |        |      |  |   |      |   |  |   |      |  
|Prepaid benefit cost                                                  |  | $                | 218    |                |          | $     | 79     |      |  | $ |     |   |  | $ |     |  
|Investments in unconsolidated subsidiaries and affiliates             |  |                  | (8     | )              |          |       | (8     | )    |  |   |     |   |  |   |     |  
|Accrued benefit liability                                             |  |                  | (1,213 | )              |          |       | (1,006 | )    |  |   | (862 | ) |  |   | (794 | )
|Intangible asset                                                      |  |                  | 37     |                |          |       | 17     |      |  |   |     |   |  |   |     |  
|Deferred tax assets                                                   |  |                  | 280    |                |          |       | 222    |      |  |   |     |   |  |   |     |  
|Accumulated other comprehensive loss                                  |  |                  | 462    |                |          |       | 398    |      |  |   |     |   |  |   |     |  
|                                                                      |  |                  |        |                |          |       |        |      |  |   |      |  
|Net amount recognized at end of year                                  |  | $                | (224   | )              |          | $     | (298   | )    |  | $ | (862 | ) |  | $ | (794 | )
|                                                                      |  |                  |        |                |          |       |        |      |  |   |      |  



|                                         |                    |                  |      |                      |          |   |     |      |     |   |      |    |    |      |     |     |      |   |     |     |     |   |    |     |    | 
|---------------------------------------- | ------------------ | ---------------- | ---- | -------------------- | -------- | - | --- | ---- | --- | - | ---- | -- | -- | ---- | --- | --- | ---- | - | --- | --- | --- | - | -- | --- | -- | 
|                                         |                    |                  |      | Other Postretirement |         
|                                         |                    | Pension Benefits |      |                      | Benefits |  
|                                         |                    |                  |      |                      |          |  
|                                         |                    | 2004             |      |                      | 2003     |   |     | 2002 |     |   | 2004 |    |    | 2003 |     |     | 2002 |  
|                                         |                    |                  |      |                      |          |   |     |      |     |   |      |    |    |      |     |     |      |  
|                                         |                    | (in millions)    |     
|Components of net periodic benefit cost: |                    |                  |      |                      |          |   |     |      |     |   |      |    |    |      |     |     |      |   |     |     |     |   |    |    
|Service cost                             |                    | $                | 26   |                      |          | $ | 27  |      |     | $ | 25   |    |    | $    | 15  |     |      | $ | 17  |     |     | $ | 15 |    
|Interest cost                            |                    |                  | 142  |                      |          |   | 123 |      |     |   | 115  |    |    |      | 83  |     |      |   | 71  |     |     |   | 58 |    
|Expected return on assets                |                    |                  | (121 | )                    |          |   | (95 | )    |     |   | (110 | )  |    |      |    |     |      |   |    |     |     |   |   |    
|Amortization of:                         |                    |                  |      |                      |          |   |     |      |     |   |      |    |    |      |     |     |      |   |     |     |     |   |    |    
|                                         | Transition asset   |                  |      |                     |          |   |     |     |     |   |      |   |    |      |     | 9   |      |   |     | 9   |     |   |    | 9   |   
|                                         | Prior service cost |                  |      | 3                    |          |   |     | 3    |     |   |      | 4  |    |      |     | (23 | )    |   |     | (17 | )   |   |    | (14 | ) 
|                                         | Actuarial loss     |                  |      | 47                   |          |   |     | 49   |     |   |      | 22 |    |      |     | 50  |      |   |     | 35  |     |   |    | 16  |   
|                                         |                    |                  |      |                      |          |   |     |      |     |   |      |    |    |      |     |     |      |  
|Net periodic benefit cost                |                    |                  | 97   |                      |          |   | 107 |      |     |   | 56   |    |    |      | 134 |     |      |   | 115 |     |     |   | 84 |    
|Curtailment loss                         |                    |                  |     |                      |          |   | 58  |      |     |   | 2    |    |    |      |    |     |      |   | 93  |     |     |   |   |    
|                                         |                    |                  |      |                      |          |   |     |      |     |   |      |    |    |      |     |     |      |  
|                                         |                    | Total expense    |      | $                    | 97       |   |     | $    | 165 |   |      | $  | 58 |      |     | $   | 134  |   |     | $   | 208 |   |    | $   | 84 | 
|                                         |                    |                  |      |                      |          |   |     |      |     |   |      |    |    |      |     |     |      |  







F-44



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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









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









F-45



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Note 14: Other Accrued Liabilities




|                                          |                                 |               |     |       |      |   |     |       | 
|----------------------------------------- | ------------------------------- | ------------- | --- | ----- | ---- | - | --- | ----- | 
|                                          |                                 | 2004          |     |       | 2003 |  
|                                          |                                 |               |     |       |      |  
|                                          |                                 | (in millions) |    
|Marketing and sales incentive programs    |                                 | $             | 407 |       |      | $ | 371 |      
|Warranty and modification programs        |                                 |               | 198 |       |      |   | 183 |      
|Accrued payroll                           |                                 |               | 161 |       |      |   | 130 |      
|Value-added taxes and other taxes payable |                                 |               | 165 |       |      |   | 167 |      
|Other accrued expenses                    |                                 |               | 787 |       |      |   | 777 |      
|                                          |                                 |               |     |       |      |  
|                                          | Total other accrued liabilities |               | $   | 1,718 |      |   | $   | 1,628 | 
|                                          |                                 |               |     |       |      |  

Note 15: Commitments and Contingencies






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



F-46



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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





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



F-47



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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



|           |                                  |               |    |     | 
|---------- | -------------------------------- | ------------- | -- | --- | 
|           |                                  | Amount        |   
|           |                                  |               |   
|           |                                  | (in millions) |   
|2005       |                                  | $             | 38 |    
|2006       |                                  |               | 28 |    
|2007       |                                  |               | 22 |    
|2008       |                                  |               | 17 |    
|2009       |                                  |               | 14 |    
|Thereafter |                                  |               | 64 |    
|           |                                  |               |   
|           | Total minimum rental commitments |               | $  | 183 | 
|           |                                  |               |   





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







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



|                                  |  |               |      |   |      |   |      |  
|--------------------------------- |  | ------------- | ---- | - | ---- | - | ---- | -
|                                  |  | 2004          |      |   | 2003 |  
|                                  |  |               |      |   |      |  
|                                  |  | (in millions) |     
|Balance, beginning of year        |  | $             | 183  |   |      | $ | 169  |  
|Current year provision            |  |               | 287  |   |      |   | 247  |  
|Claims paid and other adjustments |  |               | (272 | ) |      |   | (233 | )
|                                  |  |               |      |   |      |  
|Balance, end of year              |  | $             | 198  |   |      | $ | 183  |  
|                                  |  |               |      |   |      |  

F-48



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 16: Financial Instruments


A. Fair Market Value of Financial Instruments




|                                                             |  |               |       |  |       |   |       |          |  |   |            |   |  |   |       |  
|------------------------------------------------------------ |  | ------------- | ----- |  | ----- | - | ----- | -------- |  | - | ---------- | - |  | - | ----- | -
|                                                             |  | 2004          |       |  | 2003  |  
|                                                             |  |               |       |  |       |  
|                                                             |  | Carrying      |       |  | Fair  |   |       | Carrying |  |   |           
|                                                             |  | Amount        |       |  | Value |   |       | Amount   |  |   | Fair Value |  
|                                                             |  |               |       |  |       |   |       |          |  |   |            |  
|                                                             |  | (in millions) |      
|Accounts and notes receivable, net and long term receivables |  | $             | 5,895 |  |       | $ | 5,906 |          |  | $ | 5,996      |   |  | $ | 6,055 |  
|Long-term debt                                               |  | $             | 4,020 |  |       | $ | 4,152 |          |  | $ | 4,043      |   |  | $ | 4,190 |  
|Derivative contracts, net asset (liability)                  |  | $             | 8     |  |       | $ | 8     |          |  | $ | (15        | ) |  | $ | (15   | )



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





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





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



B. Derivatives






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



F-49



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










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







F-50



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






Note 17: Shareholders Equity


 










F-51



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CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                                         |                                                          |                |         |          |                   |  |         |       |  |  |         |        |  |      |       |   |      |  |       |   |  |  |   |   | 
|---------------------------------------- | -------------------------------------------------------- | -------------- | ------- | -------- | ----------------- |  | ------- | ----- |  |  | ------- | ------ |  | ---- | ----- | - | ---- |  | ----- | - |  |  | - | - | 
|                                         |                                                          |                |         | Series A |                  
|                                         |                                                          | Common Shares  |         |          | Preference Shares | 
|                                         |                                                          |                |         |          |                   | 
|                                         |                                                          | 2004           |         |          | 2003              |  |         | 2002  |  |  | 2004    |        |  | 2003 |       |   | 2002 | 
|                                         |                                                          |                |         |          |                   |  |         |       |  |  |         |        |  |      |       |   |      | 
|                                         |                                                          | (in thousands) |        
|Issued as of beginning of year           |                                                          |                | 132,914 |          |                   |  | 131,238 |       |  |  | 55,537  |        |  |      | 8,000 |   |      |  |      |   |  |  |  |  
|Issuances of CNH Common Shares:          |                                                          |                |         |          |                   |  |         |       |  |  |         |        |  |      |       |   |      |  |       |   |  |  |   |  
|                                         | Contributions to CNH benefit plans                       |                |         | 918      |                   |  |         | 1,463 |  |  |         |       |  |      |       |  |      |  |       |  |  |  |   |  | 
|                                         | Restricted shares issued under the equity incentive plan |                |         |         |                   |  |         | 207   |  |  |         |       |  |      |       |  |      |  |       |  |  |  |   |  | 
|                                         | Public offering                                          |                |         |         |                   |  |         |      |  |  |         | 10,700 |  |      |       |  |      |  |       |  |  |  |   |  | 
|                                         | Fiat conversion of debt to equity                        |                |         |         |                   |  |         |      |  |  |         | 65,000 |  |      |       |  |      |  |       |  |  |  |   |  | 
|                                         | Stock-based compensation for directors                   |                |         | 25       |                   |  |         | 6     |  |  |         | 1      |  |      |       |  |      |  |       |  |  |  |   |  | 
|                                         | Stock-based compensation for employees                   |                |         | 80       |                   |  |         |      |  |  |         |       |  |      |       |  |      |  |       |  |  |  |   |  | 
|Issuance of CNH Series A Preferred Stock |                                                          |                |        |          |                   |  |        |       |  |  |        |        |  |      |      |   |      |  | 8,000 |   |  |  |  |  
|                                         |                                                          |                |         |          |                   |  |         |       |  |  |         |        |  |      |       |   |      | 
|Issued as of end of year                 |                                                          |                | 133,937 |          |                   |  | 132,914 |       |  |  | 131,238 |        |  |      | 8,000 |   |      |  | 8,000 |   |  |  |  |  
|                                         |                                                          |                |         |          |                   |  |         |       |  |  |         |        |  |      |       |   |      | 



Note 18: Option and Incentive Plans




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



F-52



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                 |           |        |         |          |        |   |       |        |          |  |         |        |  |          |       |       |        |  |        |        |   |   |       |       | 
|-------------------------------- | --------- | ------ | ------- | -------- | ------ | - | ----- | ------ | -------- |  | ------- | ------ |  | -------- | ----- | ----- | ------ |  | ------ | ------ | - | - | ----- | ----- | 
|                                 |           | 2004   |         |          | 2003   |   |       | 2002   |         
|                                 |           |        |         |          |        |   |       |        |         
|                                 |           |        |         | Exercise |        |   |       |        | Exercise |  |         |        |  | Exercise |      
|                                 |           | Shares |         |          | Price* |   |       | Shares |          |  | Price*  |        |  | Shares   |       |       | Price* | 
|                                 |           |        |         |          |        |   |       |        |          |  |         |        |  |          |       |       |        | 
|Outstanding at beginning of year |           |        | 142,500 |          |        | $ | 23.39 |        |          |  | 82,464  |        |  | $        | 33.10 |       |        |  | 48,314 |        |   | $ | 42.00 |      
|                                 | Granted   |        |         | 39,065   |        |   |       | 19.12  |          |  |         | 60,036 |  |          |       | 10.28 |        |  |        | 39,322 |   |   |       | 21.35 | 
|                                 | Forfeited |        |         | (18,877  | )      |   |       | 35.18  |          |  |         |       |  |          |       |      |        |  |        | (5,172 | ) |   |       | 29.35 | 
|                                 | Exercised |        |         | (20,683  | )      |   |       | 11.23  |          |  |         |       |  |          |       |      |        |  |        |       |   |   |       |      | 
|                                 |           |        |         |          |        |   |       |        |          |  |         |        |  |          |       |       |        | 
|Outstanding at end of year       |           |        | 142,005 |          |        |   | 22.41 |        |          |  | 142,500 |        |  |          | 22.76 |       |        |  | 82,464 |        |   |   | 33.10 |      
|                                 |           |        |         |          |        |   |       |        |          |  |         |        |  |          |       |       |        | 
|Exercisable at end of year       |           |        | 112,714 |          |        |   | 23.45 |        |          |  | 95,009  |        |  |          | 25.68 |       |        |  | 61,954 |        |   |   | 31.80 |      
|                                 |           |        |         |          |        |   |       |        |          |  |         |        |  |          |       |       |        | 




|  |                 
|- | ----------------
|* | 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 |  |                     |  | 8.3 |          |  | $ | 11.16       |  |  |          | 51,699 |  |  | $ | 12.10 | 
|$15.71 - $26.20         |  |                     | 44,018 |  |                     |  | 8.7 |          |  |   | 21.52       |  |  |          | 27,376 |  |  |   | 23.18 | 
|$26.21 - $40.00         |  |                     | 18,654 |  |                     |  | 6.5 |          |  |   | 30.31       |  |  |          | 18,654 |  |  |   | 30.31 | 
|$40.01 - $56.00         |  |                     | 4,460  |  |                     |  | 5.9 |          |  |   | 49.31       |  |  |          | 4,460  |  |  |   | 49.31 | 
|$56.01 - $77.05         |  |                     | 10,525 |  |                     |  | 5.3 |          |  |   | 63.03       |  |  |          | 10,525 |  |  |   | 63.03 | 




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



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



F-53



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                 |           |        |           |          |        |   |       |        |          |  |           |          |   |          |       |       |        |  |           |           |   |   |       |       | 
|-------------------------------- | --------- | ------ | --------- | -------- | ------ | - | ----- | ------ | -------- |  | --------- | -------- | - | -------- | ----- | ----- | ------ |  | --------- | --------- | - | - | ----- | ----- | 
|                                 |           | 2004   |           |          | 2003   |   |       | 2002   |         
|                                 |           |        |           |          |        |   |       |        |         
|                                 |           |        |           | Exercise |        |   |       |        | Exercise |  |           |          |   | Exercise |      
|                                 |           | Shares |           |          | Price* |   |       | Shares |          |  | Price*    |          |   | Shares   |       |       | Price* | 
|                                 |           |        |           |          |        |   |       |        |          |  |           |          |   |          |       |       |        | 
|Outstanding at beginning of year |           |        | 2,719,842 |          |        | $ | 32.92 |        |          |  | 3,219,995 |          |   | $        | 34.35 |       |        |  | 1,907,182 |           |   | $ | 48.65 |      
|                                 | Granted   |        |           | 20,000   |        |   |       | 18.21  |          |  |           | 3,000    |   |          |       | 19.25 |        |  |           | 1,424,140 |   |   |       | 16.20 | 
|                                 | Exercised |        |           | (62,690  | )      |   |       | 16.18  |          |  |           |         |   |          |       |      |        |  |           |          |   |   |       |      | 
|                                 | Forfeited |        |           | (212,577 | )      |   |       | 51.80  |          |  |           | (503,153 | ) |          |       | 41.97 |        |  |           | (111,327  | ) |   |       | 46.60 | 
|                                 |           |        |           |          |        |   |       |        |          |  |           |          |   |          |       |       |        | 
|Outstanding at end of year       |           |        | 2,464,575 |          |        |   | 33.68 |        |          |  | 2,719,842 |          |   |          | 32.94 |       |        |  | 3,219,995 |           |   |   | 34.35 |      
|                                 |           |        |           |          |        |   |       |        |          |  |           |          |   |          |       |       |        | 
|Exercisable at end of year       |           |        | 1,655,585 |          |        |   | 39.38 |        |          |  | 1,216,093 |          |   |          | 42.43 |       |        |  | 774,780   |           |   |   | 57.10 |      
|                                 |           |        |           |          |        |   |       |        |          |  |           |          |   |          |       |       |        | 




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



|                        |  |                     |           |  |                     |  |     |          |  |   |             |  |  |          |         |  |  |   |       | 
|----------------------- |  | ------------------- | --------- |  | ------------------- |  | --- | -------- |  | - | ----------- |  |  | -------- | ------- |  |  | - | ----- | 
|                        |  | Options Outstanding |           |  | Options Exercisable | 
|                        |  |                     |           |  |                     | 
|                        |  | Shares              |           |  | Contractual         |  |     | Exercise |  |   | Shares      |  |  | Exercise |        
|Range of Exercise Price |  | Outstanding         |           |  | Life*               |  |     | Price*   |  |   | Exercisable |  |  | Price*   |        
|                        |  |                     |           |  |                     |  |     |          |  |   |             |  |  |          |        
|$15.20 - $26.20         |  |                     | 1,136,935 |  |                     |  | 7.6 |          |  | $ | 16.22       |  |  |          | 543,255 |  |  | $ | 16.19 | 
|$26.21 - $40.00         |  |                     | 722,500   |  |                     |  | 6.6 |          |  |   | 31.70       |  |  |          | 543,300 |  |  |   | 31.70 | 
|$40.01 - $77.05         |  |                     | 605,140   |  |                     |  | 5.1 |          |  |   | 68.85       |  |  |          | 569,030 |  |  |   | 68.85 | 




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





F-54



---



##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |                          
| | -------------------------
| | 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  |  |             |  | 24,900 |           |  |  | (22,300     | ) |  |             |  |  |  |  | 55,900  |  |  |  | 55,900  | 
|2/18/2000     |  |               | 33.00  |                |          |  | 30.63   |         |  |  | 28.12   |  |  |           | 102,500 |  |             |  | 72,000 |           |  |  | (8,000      | ) |  |             |  |  |  |  | 166,500 |  |  |  | 166,500 | 
|2/27/2001     |  |               | 26.77  |                |          |  | 27.07   |         |  |  | 24.85   |  |  |           | 50,000  |  |             |  | 30,000 |           |  |  |            |   |  |             |  |  |  |  | 80,000  |  |  |  | 60,000  | 
|10/31/2001    |  |               | 18.06  |                |          |  | 18.00   |         |  |  | 16.52   |  |  |           | 249,000 |  |             |  | 81,000 |           |  |  | (68,000     | ) |  |             |  |  |  |  | 262,000 |  |  |  | 196,500 | 
|9/12/2002     |  |               | 11.88  |                |          |  | 11.16   |         |  |  | 10.39   |  |  |           | 513,000 |  |             |  | 76,000 |           |  |  | (90,000     | ) |  |             |  |  |  |  | 499,000 |  |  |  | 249,500 | 





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



|                    |  |      |       |  |      |   |       |      |  |   |      | 
|------------------- |  | ---- | ----- |  | ---- | - | ----- | ---- |  | - | ---- | 
|                    |  | 2004 |       |  | 2003 |   |       | 2002 | 
|                    |  |      |       |  |      |   |       |      | 
|CNH Directors Plan |  | $    | 9.94  |  |      | $ | 5.87  |      |  | $ | 8.95 | 
|CNH EIP             |  | $    | 10.61 |  |      | $ | 11.04 |      |  | $ | 6.65 | 



|                        |  |            |      |   |      |  |            |      |  |  |      |            |  |      |      |   |     |  |      |   |  |  |      |  
|----------------------- |  | ---------- | ---- | - | ---- |  | ---------- | ---- |  |  | ---- | ---------- |  | ---- | ---- | - | --- |  | ---- | - |  |  | ---- | -
|                        |  | 2004       |      |   | 2003 |  |            | 2002 | 
|                        |  |            |      |   |      |  |            |      | 
|                        |  | Directors |      |   |      |  | Directors |      |  |  |      | Directors |  |      |     
|                        |  | Plan       |      |   | EIP  |  |            | Plan |  |  | EIP  |            |  | Plan |      |   | EIP | 
|                        |  |            |      |   |      |  |            |      |  |  |      |            |  |      |      |   |     | 
|Risk-free interest rate |  |            | 3.4  | % |      |  | 3.5        | %    |  |  | 2.7  | %          |  |      | 3.0  | % |     |  | 3.9  | % |  |  | 3.8  | %
|Dividend yield          |  |            | 1.3  | % |      |  | 1.3        | %    |  |  | 2.1  | %          |  |      | 2.1  | % |     |  | 2.4  | % |  |  | 2.4  | %
|Stock price volatility  |  |            | 75.0 | % |      |  | 75.3       | %    |  |  | 79.8 | %          |  |      | 79.8 | % |     |  | 51.0 | % |  |  | 51.0 | %
|Option life (years)     |  |            | 5.0  |   |      |  | 5.0        |      |  |  | 5.0  |            |  |      | 5.0  |   |     |  | 5.0  |   |  |  | 5.5  |  

F-55



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Note 19: Earnings (Loss) per Share




|                                                                                                 |  |                                |      |  |      |   |       |      |  |   |       |  
|------------------------------------------------------------------------------------------------ |  | ------------------------------ | ---- |  | ---- | - | ----- | ---- |  | - | ----- | -
|                                                                                                 |  | 2004                           |      |  | 2003 |   |       | 2002 | 
|                                                                                                 |  |                                |      |  |      |   |       |      | 
|                                                                                                 |  | (in millions, except per share |     
|                                                                                                 |  | data)                          |     
|Basic                                                                                            |  |                                |      |  |      |   |       |      |  |   |       |  
|Net income (loss)                                                                                |  | $                              | 125  |  |      | $ | (157  | )    |  | $ | (426  | )
|                                                                                                 |  |                                |      |  |      |   |       |      | 
|Weighted-average shares outstanding                                                              |  |                                | 133  |  |      |   | 132   |      |  |   | 97    |  
|                                                                                                 |  |                                |      |  |      |   |       |      | 
|Basic earnings (loss) per share before cumulative effect of
    change in accounting principle   |  | $                              | 0.94 |  |      | $ | (1.19 | )    |  | $ | (1.05 | )
|Cumulative effect of change in accounting principle                                              |  |                                |     |  |      |   |      |      |  |   | (3.35 | )
|                                                                                                 |  |                                |      |  |      |   |       |      | 
|Basic earnings (loss) per share                                                                  |  | $                              | 0.94 |  |      | $ | (1.19 | )    |  | $ | (4.40 | )
|                                                                                                 |  |                                |      |  |      |   |       |      | 
|Diluted                                                                                          |  |                                |      |  |      |   |       |      |  |   |       |  
|Net income (loss)                                                                                |  | $                              | 125  |  |      | $ | (157  | )    |  | $ | (426  | )
|Effect of dilutive securities (when dilutive)                                                    |  |                                |     |  |      |   |      |      |  |   |      |  
|                                                                                                 |  |                                |      |  |      |   |       |      | 
|Net income (loss) after adjustment for dilutive conversions                                      |  | $                              | 125  |  |      | $ | (157  | )    |  | $ | (426  | )
|                                                                                                 |  |                                |      |  |      |   |       |      | 
|Weighted-average shares outstanding  Basic                                                      |  |                                | 133  |  |      |   | 132   |      |  |   | 97    |  
|Effect of dilutive securities (when dilutive)                                                    |  |                                | 100  |  |      |   |      |      |  |   |      |  
|                                                                                                 |  |                                |      |  |      |   |       |      | 
|Weighted-average shares outstanding  Diluted                                                    |  |                                | 233  |  |      |   | 132   |      |  |   | 97    |  
|                                                                                                 |  |                                |      |  |      |   |       |      | 
|Diluted earnings (loss) per share before cumulative effect of
    change in accounting principle |  | $                              | 0.54 |  |      | $ | (1.19 | )    |  | $ | (1.05 | )
|Cumulative effect of change in accounting principle                                              |  |                                |     |  |      |   |      |      |  |   | (3.35 | )
|                                                                                                 |  |                                |      |  |      |   |       |      | 
|Diluted earnings (loss) per share                                                                |  | $                              | 0.54 |  |      | $ | (1.19 | )    |  | $ | (4.40 | )
|                                                                                                 |  |                                |      |  |      |   |       |      | 



F-56



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 20: Accumulated Other Comprehensive Income
(Loss)




|                                                                                                          |       |               |      |      |      |   |      |      |  
|--------------------------------------------------------------------------------------------------------- | ----- | ------------- | ---- | ---- | ---- | - | ---- | ---- | -
|                                                                                                          |       | 2004          |      |      | 2003 |  
|                                                                                                          |       |               |      |      |      |  
|                                                                                                          |       | (in millions) |     
|Cumulative translation adjustment                                                                         |       | $             | (70  | )    |      | $ | (156 | )   
|Minimum pension liability adjustment, net of taxes ($280 and
    $222, respectively)                      |       |               | (462 | )    |      |   | (398 | )   
|Deferred gains (losses) on derivative financial instruments, net
    of taxes ($(9) and $7, respectively) |       |               | 18   |      |      |   | (5   | )   
|Unrealized gain on available for sale securities, net of taxes
    ($11 and $13, respectively)            |       |               | 18   |      |      |   | 20   |     
|                                                                                                          |       |               |      |      |      |  
|                                                                                                          | Total |               | $    | (496 | )    |   | $    | (539 | )
|                                                                                                          |       |               |      |      |      |  

Note 21: Segment and Geographical Information




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





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





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





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





F-57



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                                                     |                                                                                                              |                                                                                      |   |     |      |   |   |      |      |   |   |      |      |  
|---------------------------------------------------- | ------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------ | - | --- | ---- | - | - | ---- | ---- | - | - | ---- | ---- | -
|                                                     |                                                                                                              | 2004                                                                                 |   |     | 2003 |   |   | 2002 |     
|                                                     |                                                                                                              |                                                                                      |   |     |      |   |   |      |     
|                                                     |                                                                                                              | (in millions)                                                                        |  
|Reconciliation of net income (loss) per U.S. GAAP to |                                                                                                              |                                                                                      |   |     |      |   |   |      |      |   |   |     
|                                                     | results of operations reported to Fiat:                                                                      |                                                                                      |   |     |      |   |   |      |      |   |   |      |     
|                                                     | Net income (loss) per U.S. GAAP                                                                              |                                                                                      | $ | 125 |      |   | $ | (157 | )    |   | $ | (426 | )   
|                                                     | Adjustments to convert from U.S. GAAP to accounting Principles
    followed by Fiat:                         |                                                                                      |   |     |      |   |   |      |      |   |   |      |     
|                                                     |                                                                                                              | Cumulative effect of change in accounting principle, net of tax                      |   |     |     |   |   |      |     |   |   |      | 325  |  
|                                                     |                                                                                                              | Amortization of goodwill and other intangibles                                       |   |     | (170 | ) |   |      | (166 | ) |   |      | (158 | )
|                                                     |                                                                                                              | Tax adjustments related to purchase accounting and legal entity
    rationalizations |   |     | 135  |   |   |      |     |   |   |      |     |  
|                                                     |                                                                                                              | Restructuring charge                                                                 |   |     | 20   |   |   |      | 111  |   |   |      | 34   |  
|                                                     |                                                                                                              | Other                                                                                |   |     | 33   |   |   |      | (12  | ) |   |      | 17   |  
|                                                     |                                                                                                              |                                                                                      |   |     |      |   |   |      |     
|                                                     | Net income (loss) per accounting principles followed by Fiat                                                 |                                                                                      |   | 143 |      |   |   | (224 | )    |   |   | (208 | )   
|                                                     | Reconciliation of net income (loss) per accounting
    principles followed by Fiat to results of operations: |                                                                                      |   |     |      |   |   |      |      |   |   |      |     
|                                                     |                                                                                                              | Minority interest                                                                    |   |     | 23   |   |   |      | 7    |   |   |      | 8    |  
|                                                     |                                                                                                              | Income tax provision (benefit)                                                       |   |     | (107 | ) |   |      | (25  | ) |   |      | (35  | )
|                                                     |                                                                                                              | Restructuring charge                                                                 |   |     | 84   |   |   |      | 160  |   |   |      | 17   |  
|                                                     |                                                                                                              | Net financial expense                                                                |   |     | 387  |   |   |      | 354  |   |   |      | 390  |  
|                                                     |                                                                                                              | Equity in (income) loss of unconsolidated subsidiaries and
    affiliates            |   |     | (24  | ) |   |      | (13  | ) |   |      | (16  | )
|                                                     |                                                                                                              | Other non-operating income                                                           |   |     |     |   |   |      |     |   |   |      | (2   | )
|                                                     |                                                                                                              |                                                                                      |   |     |      |   |   |      |     
|                                                     | Results of operations as defined by Fiat                                                                     |                                                                                      | $ | 506 |      |   | $ | 259  |      |   | $ | 154  |     
|                                                     |                                                                                                              |                                                                                      |   |     |      |   |   |      |     
|Results of operations by segment:                    |                                                                                                              |                                                                                      |   |     |      |   |   |      |      |   |   |     
|                                                     | Agricultural equipment                                                                                       |                                                                                      | $ | 196 |      |   | $ | 181  |      |   | $ | 201  |     
|                                                     | Construction equipment                                                                                       |                                                                                      |   | 74  |      |   |   | (78  | )    |   |   | (159 | )   
|                                                     | Financial services                                                                                           |                                                                                      |   | 242 |      |   |   | 163  |      |   |   | 122  |     
|                                                     | Eliminations                                                                                                 |                                                                                      |   | (6  | )    |   |   | (7   | )    |   |   | (10  | )   
|                                                     |                                                                                                              |                                                                                      |   |     |      |   |   |      |     
|                                                     |                                                                                                              | Results of operations                                                                |   | $   | 506  |   |   | $    | 259  |   |   | $    | 154  |  
|                                                     |                                                                                                              |                                                                                      |   |     |      |   |   |      |     
|Depreciation and amortization:                       |                                                                                                              |                                                                                      |   |     |      |   |   |      |      |   |   |     
|                                                     | Agricultural equipment                                                                                       |                                                                                      | $ | 289 |      |   | $ | 279  |      |   | $ | 261  |     
|                                                     | Construction equipment                                                                                       |                                                                                      |   | 124 |      |   |   | 121  |      |   |   | 124  |     
|                                                     | Financial services                                                                                           |                                                                                      |   | 72  |      |   |   | 108  |      |   |   | 126  |     
|                                                     |                                                                                                              |                                                                                      |   |     |      |   |   |      |     
|                                                     |                                                                                                              | Total                                                                                |   | $   | 485  |   |   | $    | 508  |   |   | $    | 511  |  
|                                                     |                                                                                                              |                                                                                      |   |     |      |   |   |      |     

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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                    |                                 |                        |       |                 |       |        |        |       |       |        |        |       |       |        |       | 
|----------------------------------------------------------------------------------- | ------------------------------- | ---------------------- | ----- | --------------- | ----- | ------ | ------ | ----- | ----- | ------ | ------ | ----- | ----- | ------ | ----- | 
|                                                                                    |                                 | 2004                   |       |                 | 2003  |        |        | 2002  |      
|                                                                                    |                                 |                        |       |                 |       |        |        |       |      
|                                                                                    |                                 | (in millions)          |      
|Revenues:                                                                           |                                 |                        |       |                 |       |        |        |       |       |        |        |      
|                                                                                    | Net sales:                      |                        |       |                 |       |        |        |       |       |        |        |       |      
|                                                                                    |                                 | Agricultural equipment |       | $               | 8,000 |        |        | $     | 7,125 |        |        | $     | 6,405 |       
|                                                                                    |                                 | Construction equipment |       |                 | 3,545 |        |        |       | 2,944 |        |        |       | 2,926 |       
|                                                                                    |                                 |                        |       |                 |       |        |        |       |      
|                                                                                    |                                 |                        |       | Total net sales |       |        | 11,545 |       |       |        | 10,069 |       |       |        | 9,331 | 
|                                                                                    | External financial services     |                        |       | 634             |       |        |        | 597   |       |        |        | 609   |      
|                                                                                    | Intersegment financial services |                        |       | 38              |       |        |        | 24    |       |        |        | 32    |      
|                                                                                    | Eliminations                    |                        |       | (38             | )     |        |        | (24   | )     |        |        | (32   | )    
|                                                                                    |                                 |                        |       |                 |       |        |        |       |      
|                                                                                    |                                 |                        | Total |                 | $     | 12,179 |        |       | $     | 10,666 |        |       | $     | 9,940  |      
|                                                                                    |                                 |                        |       |                 |       |        |        |       |      
|Depreciation and amortization:                                                      |                                 |                        |       |                 |       |        |        |       |       |        |        |      
|                                                                                    | Agricultural equipment          |                        | $     | 190             |       |        | $      | 176   |       |        | $      | 161   |      
|                                                                                    | Construction equipment          |                        |       | 71              |       |        |        | 70    |       |        |        | 67    |      
|                                                                                    | Financial services              |                        |       | 64              |       |        |        | 100   |       |        |        | 118   |      
|                                                                                    |                                 |                        |       |                 |       |        |        |       |      
|                                                                                    |                                 |                        | Total |                 | $     | 325    |        |       | $     | 346    |        |       | $     | 346    |      
|                                                                                    |                                 |                        |       |                 |       |        |        |       |      
|Investments in unconsolidated subsidiaries and affiliates (at
    the end of year): |                                 |                        |       |                 |       |        |        |       |       |        |        |      
|                                                                                    | Agricultural equipment          |                        | $     | 184             |       |        | $      | 186   |       |        | $      | 184   |      
|                                                                                    | Construction equipment          |                        |       | 189             |       |        |        | 178   |       |        |        | 144   |      
|                                                                                    | Financial services              |                        |       | 84              |       |        |        | 65    |       |        |        | 47    |      
|                                                                                    |                                 |                        |       |                 |       |        |        |       |      
|                                                                                    |                                 |                        | Total |                 | $     | 457    |        |       | $     | 429    |        |       | $     | 375    |      
|                                                                                    |                                 |                        |       |                 |       |        |        |       |      
|Segment assets (at the end of year):                                                |                                 |                        |       |                 |       |        |        |       |       |        |        |      
|                                                                                    | Agricultural equipment          |                        | $     | 6,790           |       |        | $      | 6,897 |       |        | $      | 6,380 |      
|                                                                                    | Construction equipment          |                        |       | 3,656           |       |        |        | 3,714 |       |        |        | 3,430 |      
|                                                                                    | Financial services              |                        |       | 5,778           |       |        |        | 5,058 |       |        |        | 5,875 |      
|                                                                                    | Eliminations and other          |                        |       | 1,856           |       |        |        | 2,058 |       |        |        | 1,075 |      
|                                                                                    |                                 |                        |       |                 |       |        |        |       |      
|                                                                                    |                                 |                        | Total |                 | $     | 18,080 |        |       | $     | 17,727 |        |       | $     | 16,760 |      
|                                                                                    |                                 |                        |       |                 |       |        |        |       |      
|Expenditures for additions to long-lived assets*:                                   |                                 |                        |       |                 |       |        |        |       |       |        |        |      
|                                                                                    | Agricultural equipment          |                        | $     | 143             |       |        | $      | 152   |       |        | $      | 198   |      
|                                                                                    | Construction equipment          |                        |       | 36              |       |        |        | 40    |       |        |        | 39    |      
|                                                                                    | Financial services              |                        |       | 82              |       |        |        | 53    |       |        |        | 170   |      
|                                                                                    |                                 |                        |       |                 |       |        |        |       |      
|                                                                                    |                                 |                        | Total |                 | $     | 261    |        |       | $     | 245    |        |       | $     | 407    |      
|                                                                                    |                                 |                        |       |                 |       |        |        |       |      




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

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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, 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  | 
|                                                   |  |               |       |  |        |   |        |         |  |   |       |  |  |         |       |  |       |   |       |       | 
|At December 31, 2002, and for the year then ended: |  |               |       |  |        |   |        |         |  |   |       |  |  |         |       |  |       |   |       |       |  |   |       |  |  |   |        | 
|Total revenues                                     |  | $             | 4,073 |  |        | $ | 659    |         |  | $ | 1,343 |  |  | $       | 1,717 |  |       | $ | 772   |       |  | $ | 1,376 |  |  | $ | 9,940  | 
|                                                   |  |               |       |  |        |   |        |         |  |   |       |  |  |         |       |  |       |   |       |       | 
|Long-lived assets*                                 |  | $             | 1,091 |  |        | $ | 93     |         |  | $ | 116   |  |  | $       | 224   |  |       | $ | 126   |       |  | $ | 343   |  |  | $ | 1,993  | 
|                                                   |  |               |       |  |        |   |        |         |  |   |       |  |  |         |       |  |       |   |       |       | 




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



Note 22: Related Party Information










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CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)














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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                  |                           |               |     |     |      |   |     |      |  |   |     |     | 
|----------------------------------------------------------------- | ------------------------- | ------------- | --- | --- | ---- | - | --- | ---- |  | - | --- | --- | 
|                                                                  |                           | 2004          |     |     | 2003 |   |     | 2002 | 
|                                                                  |                           |               |     |     |      |   |     |      | 
|                                                                  |                           | (in millions) |    
|Sales of equipment                                                |                           | $             | 9   |     |      | $ | 6   |      |  | $ | 7   |    
|Sales to affiliated companies and joint ventures                  |                           |               | 115 |     |      |   | 179 |      |  |   | 183 |    
|                                                                  |                           |               |     |     |      |   |     |      | 
|                                                                  | Total sales to affiliates |               | $   | 124 |      |   | $   | 185  |  |   | $   | 190 | 
|                                                                  |                           |               |     |     |      |   |     |      | 
|Purchase of materials, production parts, merchandise and services |                           | $             | 565 |     |      | $ | 584 |      |  | $ | 416 |    
|                                                                  |                           |               |     |     |      |   |     |      | 
|Finance and interest income                                       |                           | $             | 28  |     |      | $ | 25  |      |  | $ | 40  |    
|                                                                  |                           |               |     |     |      |   |     |      | 



Note 23: Subsequent Event




Note 24: 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, 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          |   |  |              | 118   |   |              |       | 346   |              |  |        | (137   | ) |  |        | 492    | 
|                   | Interest compensation to Financial Services                                                                                                                                        |                                      |    |    |              |  |     |             |   |  |              | 111   |   |              |       |      |              |  |        | (111   | ) |  |        |       | 
|                   | 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    | 
|                   |                                                                                                                                                                                    |                                      |    |     |              |  |     |              |   |  |              |       |   |              |       |       |              | 

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##### 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           |       |  |              | 1,064 |        |              |       | 5,537 |              |  |         | (811    | )       |   |        | 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           |       |  |              | 1,295 |        |              |       | 1,011 |              |  |         | (122    | )       |   |        | 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-64



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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  |  
|                                                 |                                                                                                     |                                                                                                                                       |      |     |              |   |        |              |        |   |              |     |        |              |      |    |              |  
|                                                 |                                                                                                     | Net cash (used) provided by investing activities, before
    (deposits in) withdrawals from Fiat affiliates cash management
    pools |      |     | (583         | ) |        |              | (1,526 | ) |              |     | (140   | )            |      |    | (812         | ) |        |      | 2,448  |   |      |     | (613 | )
|                                                 |                                                                                                     | (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-65



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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-66



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##### Table of Contents



CNH GLOBAL N.V.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              |  |        |        |         |   |        |       |        | 
|----------------------- | ---------------------------------------------------------------------------------- | ---------------------------- | ----- | ----- | ------------ |  | ----- | ------------ | ----- |  | ------------ | ----- | ------ | ------------ | ----- | ----- | ------------ |  | ------ | ------ | ------- | - | ------ | ----- | ------ | 
|                        |                                                                                    | Condensed Balance Sheets     |      
|                        |                                                                                    | As of December 31, 2003      |      
|                        |                                                                                    |                              |      
|                        |                                                                                    | CNH                          |       |       |             
|                        |                                                                                    | Global                       |       |       | Case New     |  |       | Guarantor    |       |  | All Other    |       |        |             
|                        |                                                                                    | N.V.                         |       |       | Holland Inc. |  |       | Subsidiaries |       |  | Subsidiaries |       |        | Eliminations |       |       | Consolidated | 
|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              | 
|                        |                                                                                    | (in millions)                |      
|Assets:                 |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              |  |        |        |         |   |        |      
|                        | Cash and cash equivalents                                                          |                              | $     |      |              |  | $     | 313          |       |  | $            | 85    |        |              | $     | 221   |              |  | $      |       |         |   | $      | 619   |       
|                        | Deposits in Fiat affiliates cash management pools                                  |                              |       | 33    |              |  |       |             |       |  |              | 989   |        |              |       | 303   |              |  |        |       |         |   |        | 1,325 |       
|                        | Accounts, notes receivable and other, net                                          |                              |       | 53    |              |  |       | 6            |       |  |              | 1,337 |        |              |       | 5,210 |              |  |        | (610   | )       |   |        | 5,996 |       
|                        | Intercompany notes receivable                                                      |                              |       | 1,322 |              |  |       | 2,196        |       |  |              | 656   |        |              |       | 72    |              |  |        | (4,246 | )       |   |        |      |       
|                        | Inventories                                                                        |                              |       |      |              |  |       |             |       |  |              | 1,322 |        |              |       | 1,156 |              |  |        |       |         |   |        | 2,478 |       
|                        | Property, plant and equipment, net                                                 |                              |       |      |              |  |       |             |       |  |              | 959   |        |              |       | 569   |              |  |        |       |         |   |        | 1,528 |       
|                        | Equipment on operating leases, net                                                 |                              |       |      |              |  |       |             |       |  |              |      |        |              |       | 353   |              |  |        |       |         |   |        | 353   |       
|                        | Investments in unconsolidated affiliates                                           |                              |       | 208   |              |  |       |             |       |  |              | 94    |        |              |       | 127   |              |  |        |       |         |   |        | 429   |       
|                        | Investments in consolidated subsidiaries accounted for under the
    equity method |                              |       | 4,769 |              |  |       | 2,137        |       |  |              | 761   |        |              |       | 134   |              |  |        | (7,801 | )       |   |        |      |       
|                        | Goodwill and intangible assets, net                                                |                              |       | 3     |              |  |       |             |       |  |              | 3,152 |        |              |       | 238   |              |  |        |       |         |   |        | 3,393 |       
|                        | Other assets                                                                       |                              |       |      |              |  |       | 18           |       |  |              | 1,315 |        |              |       | 506   |              |  |        | (233   | )       |   |        | 1,606 |       
|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              | 
|                        |                                                                                    | Total Assets                 |       | $     | 6,388        |  |       | $            | 4,670 |  |              | $     | 10,670 |              |       | $     | 8,889        |  |        | $      | (12,890 | ) |        | $     | 17,727 | 
|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              | 
|Liabilities and Equity: |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              |  |        |        |         |   |        |      
|                        | Short-term debt                                                                    |                              | $     | 16    |              |  | $     |             |       |  | $            | 944   |        |              | $     | 1,150 |              |  | $      |       |         |   | $      | 2,110 |       
|                        | Intercompany short-term debt                                                       |                              |       | 71    |              |  |       |             |       |  |              | 2,068 |        |              |       | 551   |              |  |        | (2,690 | )       |   |        |      |       
|                        | Accounts payable                                                                   |                              |       | 110   |              |  |       | 4            |       |  |              | 669   |        |              |       | 1,432 |              |  |        | (580   | )       |   |        | 1,635 |       
|                        | Long-term debt                                                                     |                              |       | 1,000 |              |  |       | 1,052        |       |  |              | 961   |        |              |       | 1,873 |              |  |        |       |         |   |        | 4,886 |       
|                        | Intercompany long-term debt                                                        |                              |       | 301   |              |  |       |             |       |  |              | 279   |        |              |       | 976   |              |  |        | (1,556 | )       |   |        |      |       
|                        | Accrued and other liabilities                                                      |                              |       | 16    |              |  |       | 28           |       |  |              | 3,034 |        |              |       | 1,407 |              |  |        | (263   | )       |   |        | 4,222 |       
|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              | 
|                        |                                                                                    |                              | 1,514 |       |              |  | 1,084 |              |       |  | 7,955        |       |        |              | 7,389 |       |              |  | (5,089 | )      |         |   | 12,853 |      
|Equity                  |                                                                                    |                              | 4,874 |       |              |  | 3,586 |              |       |  | 2,715        |       |        |              | 1,500 |       |              |  | (7,801 | )      |         |   | 4,874  |      
|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              | 
|                        |                                                                                    | Total Liabilities and Equity |       | $     | 6,388        |  |       | $            | 4,670 |  |              | $     | 10,670 |              |       | $     | 8,889        |  |        | $      | (12,890 | ) |        | $     | 17,727 | 
|                        |                                                                                    |                              |       |       |              |  |       |              |       |  |              |       |        |              |       |       |              | 

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  |  
|                                                 |                                                                                                     |                                                                                                                                      |        |      |              |   |        |              |        |   |              |      |       |              |        |    |              |  
|                                                 |                                                                                                     | Net cash (used) provided by investing activities, before
    (deposits in) withdrawals from Fiat affiliate cash management
    pools |        |      | (1,977       | ) |        |              | (1,115 | ) |              |      | (112  | )            |        |    | (176         | ) |        |     | 3,115  |   |      |      | (265 | )
|                                                 |                                                                                                     | (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)


|                   |                                                                                                                                                                                                                                             |                                      |     |      |              |  |   |              |   |  |              |       |   |              |       |       |              |  |        |        |   |  |        |       |  
|------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------ | --- | ---- | ------------ |  | - | ------------ | - |  | ------------ | ----- | - | ------------ | ----- | ----- | ------------ |  | ------ | ------ | - |  | ------ | ----- | -
|                   |                                                                                                                                                                                                                                             | Condensed Statements of Operations   |    
|                   |                                                                                                                                                                                                                                             | For the Year Ended December 31, 2002 |    
|                   |                                                                                                                                                                                                                                             |                                      |    
|                   |                                                                                                                                                                                                                                             | CNH                                  |     |      |             
|                   |                                                                                                                                                                                                                                             | Global                               |     |      | Case New     |  |   | Guarantor    |   |  | All Other    |       |   |             
|                   |                                                                                                                                                                                                                                             | N.V.                                 |     |      | Holland Inc. |  |   | Subsidiaries |   |  | Subsidiaries |       |   | Eliminations |       |       | Consolidated | 
|                   |                                                                                                                                                                                                                                             |                                      |     |      |              |  |   |              |   |  |              |       |   |              |       |       |              | 
|                   |                                                                                                                                                                                                                                             | (in millions)                        |    
|Revenues:          |                                                                                                                                                                                                                                             |                                      |     |      |              |  |   |              |   |  |              |       |   |              |       |       |              |  |        |        |   |  |        |      
|                   | Net sales                                                                                                                                                                                                                                   |                                      | $   |     |              |  | $ |             |   |  | $            | 6,988 |   |              | $     | 4,463 |              |  | $      | (2,120 | ) |  | $      | 9,331 |  
|                   | Finance and interest income                                                                                                                                                                                                                 |                                      |     | 184  |              |  |   |             |   |  |              | 49    |   |              |       | 681   |              |  |        | (305   | ) |  |        | 609   |  
|                   |                                                                                                                                                                                                                                             |                                      |     |      |              |  |   |              |   |  |              |       |   |              |       |       |              | 
|                   |                                                                                                                                                                                                                                             |                                      | 184 |      |              |  |  |              |   |  | 7,037        |       |   |              | 5,144 |       |              |  | (2,425 | )      |   |  | 9,940  |      
|Cost and Expenses: |                                                                                                                                                                                                                                             |                                      |     |      |              |  |   |              |   |  |              |       |   |              |       |       |              |  |        |        |   |  |        |      
|                   | Cost of goods sold                                                                                                                                                                                                                          |                                      |     |     |              |  |   |             |   |  |              | 6,029 |   |              |       | 4,005 |              |  |        | (2,132 | ) |  |        | 7,902 |  
|                   | Selling, general and administrative                                                                                                                                                                                                         |                                      |     | 10   |              |  |   | 2            |   |  |              | 522   |   |              |       | 558   |              |  |        | 2      |   |  |        | 1,094 |  
|                   | Research, development and engineering                                                                                                                                                                                                       |                                      |     |     |              |  |   |             |   |  |              | 201   |   |              |       | 82    |              |  |        |       |   |  |        | 283   |  
|                   | Restructuring                                                                                                                                                                                                                               |                                      |     |     |              |  |   |             |   |  |              | 32    |   |              |       | 19    |              |  |        |       |   |  |        | 51    |  
|                   | Interest expense                                                                                                                                                                                                                            |                                      |     | 170  |              |  |   |             |   |  |              | 242   |   |              |       | 382   |              |  |        | (240   | ) |  |        | 554   |  
|                   | Interest compensation to Financial Services                                                                                                                                                                                                 |                                      |     |     |              |  |   |             |   |  |              | 76    |   |              |       |      |              |  |        | (76    | ) |  |        |      |  
|                   | Other, net                                                                                                                                                                                                                                  |                                      |     | 2    |              |  |   | (2           | ) |  |              | 89    |   |              |       | 72    |              |  |        | 21     |   |  |        | 182   |  
|                   |                                                                                                                                                                                                                                             |                                      |     |      |              |  |   |              |   |  |              |       |   |              |       |       |              | 
|                   |                                                                                                                                                                                                                                             |                                      | 182 |      |              |  |  |              |   |  | 7,191        |       |   |              | 5,118 |       |              |  | (2,425 | )      |   |  | 10,066 |      
|                   | Income (loss) before taxes, minority interest, equity in income
    (loss) of unconsolidated affiliates and consolidated
    subsidiaries accounted for under the equity method and
    cumulative effect of change in accounting principle |                                      |     | 2    |              |  |   |             |   |  |              | (154  | ) |              |       | 26    |              |  |        |       |   |  |        | (126  | )
|                   | Income tax provision (benefit)                                                                                                                                                                                                              |                                      |     | 2    |              |  |   |             |   |  |              | (7    | ) |              |       | (9    | )            |  |        |       |   |  |        | (14   | )
|                   | Minority interest                                                                                                                                                                                                                           |                                      |     |     |              |  |   |             |   |  |              |      |   |              |       | 8     |              |  |        |       |   |  |        | 8     |  
|                   | Equity in income (loss) of unconsolidated affiliates and
    consolidated subsidiaries accounted for under the equity method                                                                                                                |                                      |     | (101 | )            |  |   | 278          |   |  |              | 35    |   |              |       | 41    |              |  |        | (234   | ) |  |        | 19    |  
|                   |                                                                                                                                                                                                                                             |                                      |     |      |              |  |   |              |   |  |              |       |   |              |       |       |              | 
|                   | Net income (loss) before cumulative effect of change in
    accounting principle                                                                                                                                                            |                                      |     | (101 | )            |  |   | 278          |   |  |              | (112  | ) |              |       | 68    |              |  |        | (234   | ) |  |        | (101  | )
|                   | Cumulative effect of change in accounting principle, net
    of tax                                                                                                                                                                         |                                      |     | (325 | )            |  |   | (325         | ) |  |              | (325  | ) |              |       | (6    | )            |  |        | 656    |   |  |        | (325  | )
|                   |                                                                                                                                                                                                                                             |                                      |     |      |              |  |   |              |   |  |              |       |   |              |       |       |              | 
|                   | Net income (loss)                                                                                                                                                                                                                           |                                      | $   | (426 | )            |  | $ | (47          | ) |  | $            | (437  | ) |              | $     | 62    |              |  | $      | 422    |   |  | $      | (426  | )
|                   |                                                                                                                                                                                                                                             |                                      |     |      |              |  |   |              |   |  |              |       |   |              |       |       |              | 

F-69



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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, 2002                                                                                                  |       
|                                                 |                                                                                                     |                                                                                                                                       |       
|                                                 |                                                                                                     | CNH                                                                                                                                   |        |      |             
|                                                 |                                                                                                     | Global                                                                                                                                |        |      | Case New     |   |        | Guarantor    |        |   | All Other    |      |        |             
|                                                 |                                                                                                     | N.V.                                                                                                                                  |        |      | Holland Inc. |   |        | Subsidiaries |        |   | Subsidiaries |      |        | Eliminations |      |    | Consolidated |  
|                                                 |                                                                                                     |                                                                                                                                       |        |      |              |   |        |              |        |   |              |      |        |              |      |    |              |  
|                                                 |                                                                                                     | (in millions)                                                                                                                         |       
|Operating Activities:                            |                                                                                                     |                                                                                                                                       |        |      |              |   |        |              |        |   |              |      |        |              |      |    |              |   |        |      |        |   |      |     
|                                                 | Net income (loss)                                                                                   |                                                                                                                                       | $      | (426 | )            |   | $      | (47          | )      |   | $            | (437 | )      |              | $    | 62 |              |   | $      | 422  |        |   | $    | (426 | )   
|                                                 | Adjustments to reconcile net income (loss) to net cash provided
    (used) by operating activities: |                                                                                                                                       |        | 325  |              |   |        | 325          |        |   |              | 325  |        |              |      | 6  |              |   |        | (656 | )      |   |      | 325  |     
|                                                 |                                                                                                     | Depreciation and amortization                                                                                                         |        |      |             |   |        |              |       |   |              |      | 153    |              |      |    | 193          |   |        |      |       |   |      |      | 346  |  
|                                                 |                                                                                                     | Intercompany activity                                                                                                                 |        |      | 196          |   |        |              | (1     | ) |              |      | (113   | )            |      |    | (82          | ) |        |      |       |   |      |      |     |  
|                                                 |                                                                                                     | Changes in operating assets and liabilities                                                                                           |        |      | (145         | ) |        |              | 1      |   |              |      | 346    |              |      |    | 678          |   |        |      |       |   |      |      | 880  |  
|                                                 |                                                                                                     | Other, net                                                                                                                            |        |      | 414          |   |        |              | (187   | ) |              |      | 402    |              |      |    | (93          | ) |        |      | (684   | ) |      |      | (148 | )
|                                                 |                                                                                                     |                                                                                                                                       |        |      |              |   |        |              |        |   |              |      |        |              |      |    |              |  
|Net cash provided (used) by operating activities |                                                                                                     |                                                                                                                                       | 364    |      |              |   | 91     |              |        |   | 676          |      |        |              | 764  |    |              |   | (918   | )    |        |   | 977  |     
|                                                 |                                                                                                     |                                                                                                                                       |        |      |              |   |        |              |        |   |              |      |        |              |      |    |              |  
|Investing activities:                            |                                                                                                     |                                                                                                                                       |        |      |              |   |        |              |        |   |              |      |        |              |      |    |              |   |        |      |        |   |      |     
|                                                 |                                                                                                     | Expenditures for property, plant and equipment                                                                                        |        |      |             |   |        |              |       |   |              |      | (161   | )            |      |    | (80          | ) |        |      |       |   |      |      | (241 | )
|                                                 |                                                                                                     | Expenditures for equipment on operating leases                                                                                        |        |      |             |   |        |              |       |   |              |      |       |              |      |    | (166         | ) |        |      |       |   |      |      | (166 | )
|                                                 |                                                                                                     | Net (additions) collections from retail receivables and related
    securitizations                                                   |        |      |             |   |        |              |       |   |              |      |       |              |      |    | 198          |   |        |      |       |   |      |      | 198  |  
|                                                 |                                                                                                     | Other, net (primarily acquisitions and divestitures)                                                                                  |        |      | (2,052       | ) |        |              | (1,861 | ) |              |      | (336   | )            |      |    | (142         | ) |        |      | 4,339  |   |      |      | (52  | )
|                                                 |                                                                                                     |                                                                                                                                       |        |      |              |   |        |              |        |   |              |      |        |              |      |    |              |  
|                                                 |                                                                                                     | Net cash (used) provided by investing activities, before
    (deposits in) withdrawals from Fiat affiliates cash management
    pools |        |      | (2,052       | ) |        |              | (1,861 | ) |              |      | (497   | )            |      |    | (190         | ) |        |      | 4,339  |   |      |      | (261 | )
|                                                 |                                                                                                     | (Deposits in) withdrawals from Fiat affiliates cash management
    pools                                                              |        |      |             |   |        |              |       |   |              |      | (38    | )            |      |    | (360         | ) |        |      |       |   |      |      | (398 | )
|                                                 |                                                                                                     |                                                                                                                                       |        |      |              |   |        |              |        |   |              |      |        |              |      |    |              |  
|Net cash provided (used) by investing activities |                                                                                                     |                                                                                                                                       | (2,052 | )    |              |   | (1,861 | )            |        |   | (535         | )    |        |              | (550 | )  |              |   | 4,339  |      |        |   | (659 | )   
|                                                 |                                                                                                     |                                                                                                                                       |        |      |              |   |        |              |        |   |              |      |        |              |      |    |              |  
|Financing Activities:                            |                                                                                                     |                                                                                                                                       |        |      |              |   |        |              |        |   |              |      |        |              |      |    |              |   |        |      |        |   |      |     
|                                                 |                                                                                                     | Intercompany activity                                                                                                                 |        |      | 1,920        |   |        |              | 577    |   |              |      | (1,981 | )            |      |    | (516         | ) |        |      |       |   |      |      |     |  
|                                                 |                                                                                                     | Net increase (decrease) in indebtedness                                                                                               |        |      | (405         | ) |        |              | (1,155 | ) |              |      | 553    |              |      |    | 258          |   |        |      |       |   |      |      | (749 | )
|                                                 |                                                                                                     | Dividends paid                                                                                                                        |        |      | (28          | ) |        |              |       |   |              |      |       |              |      |    | (262         | ) |        |      | 262    |   |      |      | (28  | )
|                                                 |                                                                                                     | Other, net                                                                                                                            |        |      | 201          |   |        |              | 2,348  |   |              |      | 1,335  |              |      |    |             |   |        |      | (3,683 | ) |      |      | 201  |  
|                                                 |                                                                                                     |                                                                                                                                       |        |      |              |   |        |              |        |   |              |      |        |              |      |    |              |  
|Net cash provided (used) by financing activities |                                                                                                     |                                                                                                                                       | 1,688  |      |              |   | 1,770  |              |        |   | (93          | )    |        |              | (520 | )  |              |   | (3,421 | )    |        |   | (576 | )   
|                                                 |                                                                                                     |                                                                                                                                       |        |      |              |   |        |              |        |   |              |      |        |              |      |    |              |  
|                                                 |                                                                                                     | Other, net                                                                                                                            |        |      |             |   |        |              |       |   |              |      | (21    | )            |      |    | (57          | ) |        |      |       |   |      |      | (78  | )
|                                                 |                                                                                                     |                                                                                                                                       |        |      |              |   |        |              |        |   |              |      |        |              |      |    |              |  
|Increase (decrease) in cash and cash equivalents |                                                                                                     |                                                                                                                                       |       |      |              |   |       |              |        |   | 27           |      |        |              | (363 | )  |              |   |       |      |        |   | (336 | )   
|Cash and cash equivalents, beginning of year     |                                                                                                     |                                                                                                                                       |       |      |              |   |       |              |        |   | 7            |      |        |              | 560  |    |              |   |       |      |        |   | 567  |     
|                                                 |                                                                                                     |                                                                                                                                       |        |      |              |   |        |              |        |   |              |      |        |              |      |    |              |  
|Cash and cash equivalents, end of year           |                                                                                                     | $                                                                                                                                     |       |      |              | $ |       |              |        | $ | 34           |      |        | $            | 197  |    |              | $ |       |      |        | $ | 231  |     
|                                                 |                                                                                                     |                                                                                                                                       |        |      |              |   |        |              |        |   |              |      |        |              |      |    |              |  

F-70



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##### Table of Contents



SIGNATURE






| |                        
| | -----------------------
| | 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. (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.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|        | 1  | .3   |             | Resolution of the Board of Directors of CNH Global N.V. dated
    March 31, 2003 (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.**                                                                                                                                                                                                                                                                                                                                                                                                                                       
|        | 4  | .1   |             | Outside Directors Compensation Plan of CNH Global N.V. as
    amended and restated May 8, 2003.***                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|        | 4  | .1.1 |             | Amendment to Outside Directors Compensation Plan of CNH
    Global N.V.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|        | 4  | .2   |             | Equity Incentive Plan of CNH Global N.V. as amended and restated
    on July 23, 2001 (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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | 4  | .3   |             | Form of Top Hat Plan Letter.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|        | 4  | .4   |             | Case New Holland Inc. Deferred Compensation Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|        | 8  | .1   |             | List of subsidiaries of registrant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|        | 10 | .2.1 |             | 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 (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).
|        | 10 | .2.2 |             | First Amendment, dated as of January 15, 2002, to the Amended
    and Restated Transfer and Administration Agreement.***                                                                                                                                                                                                                                                                                                                                                                                                                                         
|        | 10 | .2.3 |             | Second Amendment, dated as of January 14, 2003, to the Amended
    and Restated Transfer and Administration Agreement.***                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        | 10 | .2.4 |             | Third Amendment, dated as of January 13, 2004, to the Amended
    and Restated Transfer and Administration Agreement.***                                                                                                                                                                                                                                                                                                                                                                                                                                         
|        | 10 | .2.5 |             | Fourth Amendment, dated as of April 19, 2004, to the Amended and
    Restated Transfer and Administration Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                             
|        | 10 | .2.6 |             | Fifth Amendment, dated as of January 11, 2005, to the Amended
    and Restated Transfer and Administration Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                            
|        | 10 | .5.1 |             | 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.***                                                                                                                                                                                                                                                                                                                                                                                                   
|        | 10 | .5.2 |             | 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.***                                                                                                                                                                                                                                                                                                                                                                            



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##### Table of Contents



|        |    |      |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|------- | -- | ---- | ----------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |      | Description
|        |    |      |            
|        | 10 | .5.3 |             | Indenture dated as of May 18, 2004 between Case New Holland
    Inc., a subsidiary of CNH Global N.V., as Issuer, the Guarantors
    and J.P. Morgan Chase Bank, as Trustee, regarding 6% Senior
    Notes due 2009, Series A and 6% Senior Notes due 2009,
    Series B (filed as Exhibit 3 to Form 6-K of CNH
    Global N.V. on July 23, 2004 and incorporated herein by
    reference).                                                         
|        |    |      |             | 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.
|        | 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).                                                                                                                                                                                                                                                                                       
|        | 14 |      |             | Consent of Deloitte & Touche LLP                                                                                                                                                                                                                                                                                                                                                                                                                    
|        | 18 |      |             | Preferability letter, dated April 27, 2005, from Deloitte
    & Touche LLP to CNH Global N.V.                                                                                                                                                                                                                                                                                                                                                       




|    |                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
|*   | Previously filed as an exhibit to the annual report on
    Form 20-F of the registrant for the year ended
    December 31, 1999 and incorporated herein by reference.
|   
|**  | Previously filed as an exhibit to the annual report on
    Form 20-F of the registrant for the year ended
    December 31, 2002 and incorporated herein by reference.
|   
|*** | Previously filed as an exhibit to the annual report on
    Form 20-F of the registrant for the year ended
    December 31, 2003 and incorporated herein by reference.