4 unchanged sentences
• interest rate risk.
−Removed: We attempt to actively manage these risks.
+Added: We seek to monitor and manage these risks through established policies, procedures, and risk‑mitigation practices.
The quantitative data reported in the following sections does not have any predictive value.
3 unchanged sentences
Considered from a global point of view, however, there is a concentration of credit risk in trade receivables and receivables from financing activities, in particular dealer financing in the European Union market and in North America, as well as in South America for Agriculture and Construction.
−Removed: Financial assets are recognized in the statement of financial position net of write-downs for the risk that counterparties may be unable to fulfill their contractual obligations, determined on the basis of the available information as to the creditworthiness of the customer and historical data.
+Added: Financial assets are recognized in the statement of financial position net of write-downs for the risk that counterparties may be unable to fulfill their contractual obligations, determined using available information on customer creditworthiness and historical data.
The maximum credit risk to which we were theoretically exposed at December 31, 2025 is represented by the carrying amounts stated for financial assets in the statement of financial position and the nominal value of the guarantees provided on debt or commitments of third parties.
2 unchanged sentences
These guarantees are further secured, where possible, by retention of title clauses or specific guarantees on financed equipment sales to the distribution network and on equipment under finance or leasing agreements.
−Removed: Balances which are objectively uncollectible either in part or for the whole amount are written down on a specific basis if they are individually significant.
−Removed: The amount of the write-down takes into account an estimate of the recoverable cash flows and the date of receipt, the costs of recovery, and the fair value of any guarantees received.
+Added: Balances that are determined to be uncollectible, in whole or in part, are written down on an individual basis when they are significant.
+Added: The amount of the write-down is based on an estimate of the recoverable cash flows and the date of receipt, the costs of recovery, and the fair value of any guarantees received.
Impairment losses are recognized for receivables that are not written down on a specific basis, but rather determined based on historical experience and statistical information.
Receivables for financing activities amounted to $23,105 million at December 31, 2025 ($23,085 million at December 31, 2024) containing balances totaling $572 million ($424 million at December 31, 2024) that have been written down.
−Removed: In addition, balances
−Removed: totaling $235 million ($184 million at December 31, 2023) were either past due or in nonaccrual status.
+Added: In addition, balances totaling $430 million ($235 million at December 31, 2024) were either past due or in nonaccrual status.
In the event of installment payments, even if only one installment is overdue, the whole amount of the receivable is classified as such.
8 unchanged sentences
• AUD/USD, mainly in relation to sales made by Agriculture and Construction in Australia;
−Removed: • EUR/GBP, predominately in relation to sales on the U.K.
+Added: • USD/INR, in relation to manufacturing operations in India;
+Added: • EUR/GBP, predominantly in relation to sales on the U.K.
Trade flows exposed to changes in these exchange rates in 2025 made up approximately 74% of the exposure to currency risk from trade transactions.
−Removed: It is our policy to use derivative financial instruments to hedge a certain percentage, on average between 55% and 85%, of the forecasted trading transaction exchange risk exposure for the coming 12 months with additional flexibility to reach 0% or 100% (including forecasted risk exposure beyond that timeframe where it is believed to be appropriate) and to hedge completely the exposure resulting from firm commitments.
+Added: It is our policy to use derivative financial instruments to hedge a percentage of our forecasted trading transactions exchange-rate exposure within a target range of 55% to 85% for the coming 12 months (or beyond that timeframe where deemed appropriate), with flexibility to adjust between 0% or 100% as circumstances warrant, and to fully hedge exposures resulting from firm commitments.
Certain subsidiaries may hold trade receivables or payables denominated in a currency different from the subsidiary's functional currency.
36 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.