1. Result from investments

Following is a breakdown of result of investments:

(€ thousand)20132012
Share of the profit/(loss) of investees998,909905,530
Gains/(Losses) on sale of investments(18,942)-
Total result of investments979,967905,530

Share of the profit/(loss) of investees

The item includes the Company’s share in the net profit or loss of the investees.

Gains/(Losses) on sale of investments

Effective as of December 31, 2012, the initial phase of the global construction equipment alliance between CNH Industrial N.V. (the former CNH Global N.V.) (CNH or the Company), on the one hand, and Kobelco Construction Machinery Co, Ltd. (KCM) and Kobe Steel Ltd (KSL), on the other hand, terminated.  In connection with the termination of the initial phase of the global alliance, CNH was required to sell to KSL and KSL was required to repurchase from CNH its 20% ownership interest in KCM (the “KCM Interest”). In connection with the required repurchase, a dispute arose with respect to the price to be paid by KSL to CNH in consideration for the KCM Interest under the Shareholders’ Agreement, dated December 9, 2001 (the “KCM Shareholders Agreement”), by and between CNH, KSL and New Holland Italia S.p.A. Despite the dispute regarding the amount to be paid by KSL to CNH in consideration for the 20% interest in KCM, KSL and CNH agreed to enter into an escrow agreement (the “Escrow Agreement”), with Citibank N.A., as escrow agent, to facilitate a sale of the 20% ownership interest by December 31, 2012. Pursuant to the Escrow Agreement CNH delivered to Citibank, as escrow agent, the share certificates representing CNH’s 20% ownership interest in KCM as well as resignation letters signed by CNH’s representatives to the KCM Board (the “CNH Documents”). KSL transferred to Citibank, as escrow agent, approximately $83 million (the “CNH Price”); such amount being the amount calculated by CNH as the consideration to be paid by KSL for the 20% interest in KCM. On December 31, 2012 Citibank delivered to KSL the CNH Documents. At the same time, Citibank transferred to CNH approximately US$57 million (the “KSL Price”); such amount being the amount calculated by KSL as the consideration to be paid by KSL for the 20% interest in KCM. Pursuant to the Escrow Agreement Citibank was to hold in escrow the difference between the CNH Price and the KSL Price and to distribute such funds pursuant to the terms of the arbitration award (or as jointly directed by CNH and KSL). As a result CNH recognized €19.1 million (USD 26 million) receivable on the statement of financial position as of December 31, 2012.

On November 21, 2013, the London Court of Arbitration ruled in favor of KSL and, as a consequence, the Company had to release the full amount held by Citibank on account of the escrow arrangement and wrote off the receivable of €19.1 million.