CNH Industrial Capital 10-Q 4 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2017shares
Document and Entity Information
Entity Registrant Name	CNH INDUSTRIAL CAPITAL LLC
Entity Central Index Key	1,552,493
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	0
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
REVENUES
Interest income on retail notes and finance leases	$ 48,378	$ 52,729	$ 99,191	$ 106,732
Interest income on wholesale notes	16,039	18,468	32,055	33,484
Interest and other income from affiliates	97,800	102,677	194,263	202,703
Rental income on operating leases	62,531	60,177	125,725	119,459
Other income	5,115	6,588	11,463	12,179
Total revenues	229,863	240,639	462,697	474,557
Interest expense:
Interest expense to third parties	76,134	76,578	146,389	147,662
Interest expense to affiliates	2,663	2,481	7,136	3,368
Total interest expense	78,797	79,059	153,525	151,030
Administrative and operating expenses:
Fees charged by affiliates	10,942	11,119	22,641	22,836
Provision for credit losses	10,617	7,260	23,098	13,657
Depreciation of equipment on operating leases	67,133	60,100	135,302	117,384
Other expenses	7,302	12,529	16,629	15,513
Total administrative and operating expenses	95,994	91,008	197,670	169,390
Total expenses	174,791	170,067	351,195	320,420
INCOME BEFORE TAXES	55,072	70,572	111,502	154,137
Income tax provision	16,885	24,143	34,922	50,487
NET INCOME	$ 38,187	$ 46,429	$ 76,580	$ 103,650

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
NET INCOME	$ 38,187	$ 46,429	$ 76,580	$ 103,650
Other comprehensive income (loss):
Foreign currency translation adjustment	16,912	(626)	21,406	41,623
Pension liability adjustment	103	124	210	224
Change in derivative financial instruments	732	855	648	888
Total other comprehensive income	17,747	353	22,264	42,735
COMPREHENSIVE INCOME	$ 55,934	$ 46,782	$ 98,844	$ 146,385

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 158,753	$ 164,247
Restricted cash	540,848	712,845
Receivables, less allowance for credit losses of $85,174 and $84,895, respectively	10,507,204	10,882,070
Affiliated accounts and notes receivable	50,354	83,843
Equipment on operating leases, net	1,861,178	1,858,443
Equipment held for sale	189,006	199,983
Goodwill	109,709	108,715
Other intangible assets, net	6,448	7,366
Other assets	30,488	25,747
TOTAL	13,453,988	14,043,259
Liabilities:
Short-term debt (including current maturities of long-term debt)	4,423,007	4,262,629
Accounts payable and other accrued liabilities	753,178	806,743
Affiliated debt	4,305	132,851
Long-term debt	6,948,049	7,474,318
Total liabilities	12,128,539	12,676,541
Commitments and contingent liabilities (Note 10)
Stockholder's equity:
Member's capital
Paid-in capital	843,987	844,100
Accumulated other comprehensive loss	(121,872)	(144,136)
Retained earnings	603,334	666,754
Total stockholder's equity	1,325,449	1,366,718
TOTAL	$ 13,453,988	$ 14,043,259

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Allowance for credit losses	$ 85,174	$ 84,895
Restricted cash	540,848	712,845
Receivables, less allowance for credit losses of $65,017 and $66,084, respectively	10,507,204	10,882,070
TOTAL	13,453,988	14,043,259
Short-term debt (including current maturities of long-term debt)	4,423,007	4,262,629
Long-term debt	6,948,049	7,474,318
Total liabilities	12,128,539	12,676,541
Consolidated variable interest entities ("VIEs")
Allowance for credit losses	65,017	66,084
Restricted cash	540,748	712,745
Receivables, less allowance for credit losses of $65,017 and $66,084, respectively	7,468,967	7,682,488
TOTAL	8,009,715	8,395,233
Short-term debt (including current maturities of long-term debt)	3,675,064	3,717,340
Long-term debt	3,694,979	4,149,524
Total liabilities	$ 7,370,043	$ 7,866,864

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 76,580	$ 103,650
Adjustments to reconcile net income to net cash from (used in) operating activities:
Depreciation on property and equipment and equipment on operating leases	135,317	117,402
Amortization of intangibles	1,031	962
Provision for credit losses	23,098	13,657
Deferred income tax expense (benefit)	(2,595)	11,939
Stock compensation expense (income)	(113)	298
Changes in components of working capital:
Change in affiliated accounts and notes receivables	34,316	82,466
Change in other assets and equipment held for sale	(9,583)	18,687
Change in accounts payable and other accrued liabilities	(58,184)	2,326
Net cash from (used in) operating activities	199,867	351,387
CASH FLOWS FROM INVESTING ACTIVITIES
Cost of receivables acquired	(4,808,133)	(4,904,288)
Collections of receivables	5,232,321	5,223,286
Change in restricted cash	175,854	6,417
Purchase of equipment on operating leases	(342,871)	(322,704)
Proceeds from disposal of equipment on operating leases	234,816	170,565
Change in property and equipment and software, net	(113)	(182)
Net cash from (used in) investing activities	491,874	173,094
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of affiliated debt	512,471	655,911
Payment of affiliated debt	(641,017)	(678,553)
Proceeds from issuance of long-term debt	1,901,883	2,609,372
Payment of long-term debt	(2,330,572)	(2,658,250)
Change in short-term borrowings, net		(436,193)
Dividend paid to CNH Industrial America LLC	(140,000)	(150,000)
Net cash from (used in) financing activities	(697,235)	(657,713)
DECREASE IN CASH AND CASH EQUIVALENTS	(5,494)	(133,232)
CASH AND CASH EQUIVALENTS
Beginning of period	164,247	302,148
End of period	158,753	168,916
CASH PAID DURING THE PERIOD FOR INTEREST	154,208	145,764
CASH PAID (RECEIVED) DURING THE PERIOD FOR TAXES	$ 44,661	$ (45,830)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY - USD ($) $ in Thousands	Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total
BALANCE at Dec. 31, 2015	$ 843,728	$ (161,538)	$ 769,242	$ 1,451,432
Increase (Decrease) in Stockholder's Equity
Net income			103,650	103,650
Dividend paid to CNH Industrial America LLC			(150,000)	(150,000)
Foreign currency translation adjustment		41,623		41,623
Stock compensation	298			298
Pension liability adjustment, net of tax		224		224
Change in derivative financial instruments, net of tax		888		888
BALANCE at Jun. 30, 2016	844,026	(118,803)	722,892	1,448,115
BALANCE at Dec. 31, 2016	844,100	(144,136)	666,754	1,366,718
Increase (Decrease) in Stockholder's Equity
Net income			76,580	76,580
Dividend paid to CNH Industrial America LLC			(140,000)	(140,000)
Foreign currency translation adjustment		21,406		21,406
Stock compensation	(113)			(113)
Pension liability adjustment, net of tax		210		210
Change in derivative financial instruments, net of tax		648		648
BALANCE at Jun. 30, 2017	$ 843,987	$ (121,872)	$ 603,334	$ 1,325,449

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2017
BASIS OF PRESENTATION
BASIS OF PRESENTATION	NOTE 1: BASIS OF PRESENTATION CNH Industrial Capital LLC and its primary operating subsidiaries, including New Holland Credit Company, LLC (“New Holland Credit”), CNH Industrial Capital America LLC (“CNH Industrial Capital America”), and CNH Industrial Capital Canada Ltd. (“CNH Industrial Capital Canada”) (collectively, “CNH Industrial Capital” or the “Company”), are each a subsidiary of CNH Industrial America LLC (“CNH Industrial America”), which is an indirect wholly-owned subsidiary of CNH Industrial N.V. (“CNHI” and, together with its consolidated subsidiaries, “CNH Industrial”). CNH Industrial America and CNH Industrial Canada Ltd. (collectively, “CNH Industrial North America”) design, manufacture, and sell agricultural and construction equipment. CNH Industrial Capital provides financial services for CNH Industrial North America dealers and end-use customers primarily located in the United States and Canada. CNHI is incorporated in and under the laws of The Netherlands. CNHI has its corporate seat in Amsterdam, The Netherlands, and its principal office in London, England. The common shares of CNHI are listed on the New York Stock Exchange under the symbol “CNHI,” as well as on the Mercato Telematico Azionario managed by Borsa Italiana S.p.A. The Company has prepared the accompanying consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information, which should be read in conjunction with the audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2016. Certain financial information that is normally included in annual financial statements prepared in conformity with U.S. GAAP, which is not required for interim reporting purposes, has been condensed or omitted. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of our interim unaudited financial statements have been reflected. The consolidated financial statements include the Company and its consolidated subsidiaries. The consolidated financial statements are expressed in U.S. dollars. The consolidated financial statements include the accounts of the Company’s subsidiaries in which the Company has a controlling financial interest and reflect the noncontrolling interests of the minority owners of the subsidiaries that are not fully owned for the periods presented, as applicable. A controlling financial interest may exist based on ownership of a majority of the voting interest of a subsidiary, or based on the Company’s determination that it is the primary beneficiary of a variable interest entity (“VIE”). The primary beneficiary of a VIE is the party that has the power to direct the activities that most significantly impact the economic performance of the entity and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity. The Company assesses whether it is the primary beneficiary on an ongoing basis, as prescribed by the accounting guidance on the consolidation of VIEs. The consolidated status of the VIEs with which the Company is involved may change as a result of such reassessments. The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and reported amounts of revenues and expenses. Significant estimates in these consolidated financial statements include the allowance for credit losses and residual values of equipment on operating leases. Actual results could differ from those estimates.

NEW ACCOUNTING PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2017
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS	NOTE 2: NEW ACCOUNTING PRONOUNCEMENTS New Accounting Pronouncements Adopted in 2017 In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (“ASU 2016-05”) and ASU No. 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments (“ASU 2016-06”). ASU 2016-05 clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require designation of that hedging relationship if all other hedge accounting criteria continue to be met. ASU 2016-06 clarifies the steps required to determine bifurcation of an embedded derivative. Both ASU 2016-05 and ASU 2016-06 have been adopted and neither had a material effect on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The Company elected to early adopt ASU 2017-04 on a prospective basis as of January 1, 2017, which did not have a material impact on its consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606) (“ASU 2014-09”), which supersedes existing revenue recognition guidance under current U.S. GAAP. The new standard requires an entity to recognize revenue upon transfer of control of goods or services to a customer at an amount that reflects the consideration that the entity expects to receive. This new revenue recognition model defines a five-step process to achieve this objective. The new standard also requires additional disclosures to enable users to understand the nature, amount, timing and uncertainty of revenue and cash flow arising from contracts with customers. In August 2015, the FASB amended the effective date to be the first quarter of fiscal year 2018 with early adoption permitted in 2017. The FASB subsequently issued several amendments in 2016 clarifying various aspects of ASU 2014-09, including revenue transactions that involve a third party, goods or services that are immaterial in the context of the contract, licensing arrangements, certain transition practical expedients, disclosure of performance obligation and provisions for losses on construction-type and production-type contracts. Entities have the option to apply the new guidance under a retrospective approach to each prior reporting period presented, or a modified retrospective approach with the cumulative effect of initially applying the new guidance recognized at the date of initial application within the consolidated statement of changes in equity. The Company is still evaluating the overall effect of the adoption of this standard. Based upon the implementation efforts to date, the Company has not identified any matters that it currently believes would result in a material effect on its consolidated financial statements. The Company expects to make additional disclosures related to the revenues arising from contracts with customers as required by the new standard. The Company currently plans to adopt the new standard effective January 1, 2018 using the retrospective approach. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which amends ASC 825-10, Financial Instruments – Overall . This ASU changes the treatment for available-for-sale equity investments by recognizing unrealized fair value changes directly in net income, and no longer in other comprehensive income. The ASU is effective January 1, 2018, with the cumulative-effect adjustment from initially applying the new standard recognized in the consolidated statement of financial position as of January 1, 2018. The impact of the adjustments on the Company’s consolidated financial statements is expected to be immaterial. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which supersedes ASC 840, Leases . The ASU’s most prominent change is the requirement for lessees to recognize leased assets and liabilities classified as operating leases under previous GAAP. The ASU does not significantly change the lessee’s recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors’ accounting under the ASC is largely unchanged from the previous accounting standard. ASU 2016-02 also will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. It is effective for annual reporting periods beginning after December 15, 2018 including interim periods within those fiscal years, but early adoption is permitted. The ASU requires a modified retrospective transition approach and provides certain optional transition relief. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which establishes ASC 326, Financial Instruments – Credit Losses . The ASU introduced a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. Additional disclosures about significant estimates and credit quality are also required. The ASU is effective for annual periods beginning after December 15, 2019, with early adoption permitted for annual periods beginning after December 15, 2018. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). This standard provides guidance clarification to reduce diversity in classification of certain cash flow payments and receipts in the statement of cash flows. ASU 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 on a retrospective transition basis to each period presented, and may be early adopted. The Company does not believe the adoption of this standard will have a material impact on its consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”), which amends ASC 740, Income Taxes . The ASU requires that the income tax consequences of an intra-entity asset transfer other than inventory are recognized at the time of transfer. The ASU is effective for annual reporting periods, and interim periods within those annual reporting periods, beginning after December 15, 2017 and early adoption is permitted. The amendments will be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”) that changes the presentation of restricted cash and cash equivalents on the statement of cash flows. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statement of cash flows. ASU 2016-18 is effective for annual reporting periods beginning after December 15, 2017, and early adoption is permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME	6 Months Ended
	Jun. 30, 2017
ACCUMULATED OTHER COMPREHENSIVE INCOME
ACCUMULATED OTHER COMPREHENSIVE INCOME	NOTE 3: ACCUMULATED OTHER COMPREHENSIVE INCOME Accumulated other comprehensive income (“AOCI”) is comprised of net income and other adjustments, including foreign currency translation adjustments, pension plan adjustments, changes in fair value of the retained interests in the off-book retail transactions and changes in the fair value of certain derivative financial instruments qualifying as cash flow hedges. The Company does not provide income taxes on currency translation adjustments (“CTA”), as the historical earnings from the Company’s foreign subsidiaries are considered to be permanently reinvested. The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the three months ended June 30, 2017: Currency Unrealized Translation Pension Losses on Adjustment Liability Derivatives Total Beginning balance, gross $ (135,091) $ (5,598) $ (1,328) $ (142,017) Tax asset — 2,044 354 2,398 Beginning balance, net of tax (135,091) (3,554) (974) (139,619) Other comprehensive income (loss) before reclassifications 16,912 (67) 823 17,668 Amounts reclassified from accumulated other comprehensive income (loss) — 232 173 405 Tax effects — (62) (264) (326) Net current-period other comprehensive income (loss) 16,912 103 732 17,747 Total $ (118,179) $ (3,451) $ (242) $ (121,872) The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the six months ended June 30, 2017: Currency Unrealized Translation Pension Losses on Adjustment Liability Derivatives Total Beginning balance, gross $ (139,585) $ (5,768) $ (1,213) $ (146,566) Tax asset — 2,107 323 2,430 Beginning balance, net of tax (139,585) (3,661) (890) (144,136) Other comprehensive income (loss) before reclassifications 21,406 (128) 542 21,820 Amounts reclassified from accumulated other comprehensive income (loss) — 463 340 803 Tax effects — (125) (234) (359) Net current-period other comprehensive income (loss) 21,406 210 648 22,264 Total $ (118,179) $ (3,451) $ (242) $ (121,872) The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the three months ended June 30, 2016: Currency Unrealized Translation Pension Losses on Adjustment Liability Derivatives Total Beginning balance, gross $ (113,092) $ (5,917) $ (3,139) $ (122,148) Tax asset — 2,159 833 2,992 Beginning balance, net of tax (113,092) (3,758) (2,306) (119,156) Other comprehensive income (loss) before reclassifications (626) (56) 1,000 318 Amounts reclassified from accumulated other comprehensive income (loss) — 254 163 417 Tax effects — (74) (308) (382) Net current-period other comprehensive income (loss) (626) 124 855 353 Total $ (113,718) $ (3,634) $ (1,451) $ (118,803) The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the six months ended June 30, 2016: Currency Unrealized Translation Pension Losses on Adjustment Liability Derivatives Total Beginning balance, gross $ (155,341) $ (6,084) $ (3,184) $ (164,609) Tax asset — 2,226 845 3,071 Beginning balance, net of tax (155,341) (3,858) (2,339) (161,538) Other comprehensive income (loss) before reclassifications 41,623 (141) 881 42,363 Amounts reclassified from accumulated other comprehensive income (loss) — 506 327 833 Tax effects — (141) (320) (461) Net current-period other comprehensive income (loss) 41,623 224 888 42,735 Total $ (113,718) $ (3,634) $ (1,451) $ (118,803) The reclassifications out of AOCI and the location on the consolidated statements of income for the three and six months ended June 30, 2017 and 2016 are as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Affected Line Item Amortization of defined benefit pension items: $ (232) $ (254) $ (463) $ (506) Various line items individually insignificant (232) (254) (463) (506) Income before taxes 87 94 173 195 Income tax benefit $ (145) $ (160) $ (290) $ (311) Net of tax Unrealized losses on derivatives: $ (173) $ (163) $ (340) $ (327) Interest expense to third parties (173) (163) Income before taxes 45 43 90 87 Income tax benefit $ (128) $ (120) $ (250) $ (240) Net of tax

RECEIVABLES

RECEIVABLES	6 Months Ended
	Jun. 30, 2017
RECEIVABLES
RECEIVABLES	NOTE 4: RECEIVABLES A summary of receivables included in the consolidated balance sheets as of June 30, 2017 and December 31, 2016 is as follows: June 30, December 31, 2017 2016 Retail note receivables $ 671,886 $ 854,777 Wholesale receivables 672,140 677,371 Finance lease receivables 48,120 42,291 Restricted receivables 9,200,232 9,392,526 Gross receivables 10,592,378 10,966,965 Less: Allowance for credit losses (85,174) (84,895) Total receivables, net $ 10,507,204 $ 10,882,070 Restricted Receivables and Securitization As part of its overall funding strategy, the Company periodically transfers certain receivables into VIEs that are special purpose entities (“SPEs”) as part of its asset-backed securitization (“ABS”) programs. SPEs utilized in the securitization programs differ from other entities included in the Company’s consolidated financial statements because the assets they hold are legally isolated from the Company’s assets. For bankruptcy analysis purposes, the Company has sold the receivables to the SPEs in a true sale and the SPEs are separate legal entities. Upon transfer of the receivables to the SPEs, the receivables and certain cash flows derived from them become restricted for use in meeting obligations to the SPEs’ creditors. The SPEs have ownership of cash balances that also have restrictions for the benefit of the SPEs’ investors. The Company’s interests in the SPEs’ receivables are subordinate to the interests of third-party investors. None of the receivables that are directly or indirectly sold or transferred in any of these transactions are available to pay the Company’s creditors until all obligations of the SPE have been fulfilled or the receivables are removed from the SPE. The secured borrowings related to the restricted receivables are obligations that are payable as the receivables are collected. The following table summarizes the restricted receivables as of June 30, 2017 and December 31, 2016: June 30, December 31, 2017 2016 Retail note receivables $ 6,361,591 $ 6,500,949 Wholesale receivables 2,838,641 2,891,577 Total restricted receivables $ 9,200,232 $ 9,392,526 Within the U.S. retail receivables securitization programs, qualifying retail receivables are sold to limited purpose, bankruptcy remote SPEs. In turn, these SPEs establish separate trusts to which the receivables are transferred in exchange for proceeds from asset backed securities issued by the trusts. In Canada, the receivables are transferred directly to the trusts. These trusts were determined to be VIEs. In its role as servicer, the Company has the power to direct the trusts’ activities. Through its retained interests, the Company has an obligation to absorb certain losses, or the right to receive certain benefits, that could potentially be significant to the trusts. Consequently, the Company has consolidated these retail trusts. With regard to the wholesale receivable securitization programs, the Company sells eligible receivables on a revolving basis to structured master trust facilities, which are limited-purpose, bankruptcy-remote SPEs. These trusts were determined to be VIEs. In its role as servicer, CNH Industrial Capital has the power to direct the trusts’ activities. Through its retained interests, the Company provides security to investors in the event that cash collections from the receivables are not sufficient to make principal and interest payments on the securities. Consequently, CNH Industrial Capital has consolidated these wholesale trusts. Allowance for Credit Losses The allowance for credit losses is the Company’s estimate of losses for receivables owned by the Company and consists of two components, depending on whether the receivable has been individually identified as being impaired. The first component of the allowance for credit losses covers the receivables specifically reviewed by management for which the Company has determined it is probable that it will not collect all the principal and interest payments as per the terms of the contract. Receivables are individually reviewed for impairment based on, among other items, amounts outstanding, days past due and prior collection history. These receivables are subject to impairment measurement at the loan level based either on the fair value of the collateral for collateral-dependent receivables or on the present value of expected future cash flows discounted at the receivables’ effective interest rate. The second component of the allowance for credit losses covers all receivables that have not been individually reviewed for impairment. The allowance for these receivables is based on aggregated portfolio evaluations, generally by financial product. The allowance for retail and wholesale credit losses is based on loss forecast models that consider a variety of factors that include, but are not limited to, historical loss experience, portfolio balance and delinquency. The loss forecast models are updated on a quarterly basis. In addition, qualitative factors that are not fully captured in the loss forecast models, including industry trends, and macroeconomic factors are considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective and require a degree of management judgment. Charge-offs of principal amounts of receivables outstanding are deducted from the allowance at the point when it is estimated that amounts due are deemed uncollectible. The Company’s allowance for credit losses is segregated into two portfolio segments: retail and wholesale. A portfolio segment is the level at which the Company develops a systematic methodology for determining its allowance for credit losses. The retail segment includes retail notes and finance lease receivables. The wholesale segment includes wholesale financing to CNH Industrial North America dealers. Further, the Company evaluates its portfolio segments by class of receivable: United States and Canada. Typically, the Company’s receivables within a geographic area have similar risk profiles and methods for assessing and monitoring risk. These classes align with management reporting. Allowance for credit losses activity for the three months ended June 30, 2017 is as follows: Retail Wholesale Total Allowance for credit losses: Beginning balance $ 79,859 $ 5,317 $ 85,176 Charge-offs (10,184) (1,228) (11,412) Recoveries 962 1 963 Provision 9,986 631 10,617 Foreign currency translation and other (183) 13 (170) Ending balance $ 80,440 $ 4,734 $ 85,174 Allowance for credit losses activity for the six months ended June 30, 2017 is as follows: Retail Wholesale Total Allowance for credit losses: Beginning balance $ 78,047 $ 6,848 $ 84,895 Charge-offs (22,275) (2,016) (24,291) Recoveries 1,996 8 2,004 Provision (benefit) 23,221 (123) 23,098 Foreign currency translation and other (549) 17 (532) Ending balance $ 80,440 $ 4,734 $ 85,174 Ending balance: individually evaluated for impairment $ 21,708 $ 2,170 $ 23,878 Ending balance: collectively evaluated for impairment $ 58,732 $ 2,564 $ 61,296 Receivables: Ending balance $ 7,081,597 $ 3,510,781 $ 10,592,378 Ending balance: individually evaluated for impairment $ 42,225 $ 34,160 $ 76,385 Ending balance: collectively evaluated for impairment $ 7,039,372 $ 3,476,621 $ 10,515,993 Allowance for credit losses activity for the three months ended June 30, 2016 is as follows: Retail Wholesale Total Allowance for credit losses: Beginning balance $ 86,667 $ 6,569 $ 93,236 Charge-offs (13,513) — (13,513) Recoveries 568 513 1,081 Provision (benefit) 7,424 (164) 7,260 Foreign currency translation and other (460) 32 (428) Ending balance $ 80,686 $ 6,950 $ 87,636 Allowance for credit losses activity for the six months ended June 30, 2016 is as follows: Retail Wholesale Total Allowance for credit losses: Beginning balance $ 88,405 $ 6,319 $ 94,724 Charge-offs (22,897) (1) (22,898) Recoveries 1,518 517 2,035 Provision 13,641 16 13,657 Foreign currency translation and other 19 99 118 Ending balance $ 80,686 $ 6,950 $ 87,636 Ending balance: individually evaluated for impairment $ 17,812 $ 3,728 $ 21,540 Ending balance: collectively evaluated for impairment $ 62,874 $ 3,222 $ 66,096 Receivables: Ending balance $ 7,739,799 $ 3,780,577 $ 11,520,376 Ending balance: individually evaluated for impairment $ 61,724 $ 60,801 $ 122,525 Ending balance: collectively evaluated for impairment $ 7,678,075 $ 3,719,776 $ 11,397,851 Allowance for credit losses activity for the year ended December 31, 2016 is as follows: Retail Wholesale Total Allowance for credit losses: Beginning balance $ 88,405 $ 6,319 $ 94,724 Charge-offs (42,949) (1) (42,950) Recoveries 3,228 522 3,750 Provision (benefit) 30,915 (69) 30,846 Foreign currency translation and other (1,552) 77 (1,475) Ending balance $ 78,047 $ 6,848 $ 84,895 Ending balance: individually evaluated for impairment $ 18,113 $ 4,250 $ 22,363 Ending balance: collectively evaluated for impairment $ 59,934 $ 2,598 $ 62,532 Receivables: Ending balance $ 7,398,017 $ 3,568,948 $ 10,966,965 Ending balance: individually evaluated for impairment $ 31,383 $ 43,659 $ 75,042 Ending balance: collectively evaluated for impairment $ 7,366,634 $ 3,525,289 $ 10,891,923 Utilizing an internal credit scoring model, which considers customers’ attributes, prior credit history and each retail transaction’s attributes, the Company assigns a credit quality rating to each retail customer, by specific transaction, as part of the retail underwriting process. This rating is used in setting the terms on the transaction, including the interest rate. A description of the general characteristics of the customers’ risk grades is as follows: Titanium— Customers from whom the Company expects no collection or loss activity. Platinum— Customers from whom the Company expects minimal, if any, collection or loss activity. Gold, Silver, Bronze— Customers defined as those with the potential for collection or loss activity. A breakdown of the retail portfolio by the customer’s risk grade at the time of origination as of June 30, 2017 and December 31, 2016 is as follows: June 30, December 31, 2017 2016 Titanium $ 3,929,883 $ 4,117,736 Platinum 1,983,892 2,045,684 Gold 990,541 1,042,918 Silver 144,467 157,170 Bronze 32,814 34,509 Total $ 7,081,597 $ 7,398,017 As part of the ongoing monitoring of the credit quality of the wholesale portfolio, the Company utilizes an internal credit-scoring model that assigns a risk grade for each dealer. The scoring model considers the strength of the dealer’s financial condition and payment history. The Company considers the dealers’ ratings in the quarterly credit allowance analysis. A description of the general characteristics of the dealer risk grades is as follows: Grades A and B – Includes receivables due from dealers that have significant capital strength, moderate leverage, stable earnings and growth, and excellent payment performance. Grade C – Includes receivables due from dealers with moderate credit risk. Dealers of this grade are differentiated from higher grades on a basis of leverage or payment performance. Grade D – Includes receivables due from dealers with additional credit risk. These dealers require additional monitoring due to their weaker financial condition or payment performance. A breakdown of the wholesale portfolio by its credit quality grades as of June 30, 2017 and December 31, 2016 is as follows: June 30, December 31, 2017 2016 A $ 1,246,559 $ 1,330,159 B 1,484,736 1,603,893 C 441,296 322,652 D 338,190 312,244 Total $ 3,510,781 $ 3,568,948 The following tables present information at the level at which management assesses and monitors its credit risk. Receivables are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Delinquency is reported on receivables greater than 30 days past due. The aging of receivables as of June 30, 2017 and December 31, 2016 is as follows: June 30, 2017 Recorded Investment Greater > 90 Days 31 – 60 Days 61 – 90 Days Than Total Total and Past Due Past Due 90 Days Past Due Current Receivables Accruing Retail United States $ 26,454 $ 8,196 $ 36,044 $ 70,694 $ 5,804,519 $ 5,875,213 $ 4,268 Canada $ 3,399 $ 1,865 $ 2,483 $ 7,747 $ 1,198,637 $ 1,206,384 $ 878 Wholesale United States $ 562 $ 251 $ 284 $ 1,097 $ 2,778,938 $ 2,780,035 $ 23 Canada $ — $ — $ 8 $ 8 $ 730,738 $ 730,746 $ — Total Retail $ 29,853 $ 10,061 $ 38,527 $ 78,441 $ 7,003,156 $ 7,081,597 $ 5,146 Wholesale $ 562 $ 251 $ 292 $ 1,105 $ 3,509,676 $ 3,510,781 $ 23 December 31, 2016 Recorded Investment Greater > 90 Days 31 – 60 Days 61 – 90 Days Than Total Total and Past Due Past Due 90 Days Past Due Current Receivables Accruing Retail United States $ 25,416 $ 6,743 $ 40,500 $ 72,659 $ 6,146,129 $ 6,218,788 $ 7,377 Canada $ 2,828 $ 765 $ 1,038 $ 4,631 $ 1,174,598 $ 1,179,229 $ 736 Wholesale United States $ 823 $ 88 $ 444 $ 1,355 $ 2,862,222 $ 2,863,577 $ — Canada $ — $ 1 $ 4 $ 5 $ 705,366 $ 705,371 $ — Total Retail $ 28,244 $ 7,508 $ 41,538 $ 77,290 $ 7,320,727 $ 7,398,017 $ 8,113 Wholesale $ 823 $ 89 $ 448 $ 1,360 $ 3,567,588 $ 3,568,948 $ — Impaired receivables are receivables for which the Company has determined it will not collect all the principal and interest payments as per the terms of the contract. As of June 30, 2017 and December 31, 2016, the Company’s recorded investment in impaired receivables individually evaluated for impairment and the related unpaid principal balances, allowances and average recorded investment (based on a seven-month average and thirteen-month average, respectively) are as follows: June 30, 2017 Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment Retail United States $ 41,883 $ 39,955 $ 21,499 $ 44,925 Canada $ 342 $ 330 $ 209 $ 331 Wholesale United States $ 34,160 $ 33,893 $ 2,170 $ 38,411 Canada $ — $ — $ — $ — Total Retail $ 42,225 $ 40,285 $ 21,708 $ 45,256 Wholesale $ 34,160 $ 33,893 $ 2,170 $ 38,411 December 31, 2016 Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment Retail United States $ 31,360 $ 30,031 $ 18,102 $ 31,268 Canada $ 23 $ 23 $ 11 $ 28 Wholesale United States $ 43,659 $ 43,369 $ 4,250 $ 46,482 Canada $ — $ — $ — $ — Total Retail $ 31,383 $ 30,054 $ 18,113 $ 31,296 Wholesale $ 43,659 $ 43,369 $ 4,250 $ 46,482 As of June 30, 2017 and December 31, 2016, the Company’s impaired receivables individually evaluated for impairment without an allowance were immaterial. Interest income recognized for the three and six months ended June 30, 2017 and 2016 was immaterial. Recognition of income is generally suspended when management determines that collection of future finance income is not probable or when an account becomes 120 days delinquent, whichever occurs first. Interest accrual is resumed if the receivable becomes contractually current and collection becomes probable. Previously suspended income is recognized at that time. The receivables on nonaccrual status as of June 30, 2017 and December 31, 2016 are as follows: June 30, 2017 December 31, 2016 Retail Wholesale Total Retail Wholesale Total United States $ 37,798 $ 33,893 $ 71,691 $ 49,998 $ 43,369 $ 93,367 Canada $ 1,623 $ — $ 1,623 $ 325 $ — $ 325 Troubled Debt Restructurings A restructuring of a receivable constitutes a troubled debt restructuring (“TDR”) when the lender grants a concession it would not otherwise consider to a borrower experiencing financial difficulties. As a collateral-based lender, the Company typically will repossess collateral in lieu of restructuring receivables. As such, for retail receivables, concessions are typically provided based on bankruptcy court proceedings. For wholesale receivables, concessions granted may include extended contract maturities, inclusion of interest-only periods, modification of a contractual interest rate to a below market interest rate and waiving of interest and principal. TDRs are reviewed along with other receivables as part of management’s ongoing evaluation of the adequacy of the allowance for credit losses. The allowance for credit losses attributable to TDRs is based on the most probable source of repayment, which is normally the liquidation of collateral. In determining collateral value, the Company estimates the current fair market value of the equipment collateral and considers credit enhancements such as additional collateral and third-party guarantees. As of June 30, 2017, the Company had 243 retail and finance lease contracts classified as TDRs where a court has determined the concession. The pre-modification value of these contracts was $5,512 and the post-modification value was $4,816. Additionally, the Company had 455 accounts with a balance of $26,304 undergoing bankruptcy proceedings where a concession has not yet been determined. As of June 30, 2016, the Company had 256 retail and finance lease contracts classified as TDRs where a court has determined the concession. The pre-modification value of these contracts was $3,897 and the post-modification value was $3,212. Additionally, the Company had 492 accounts with a balance of $33,913 undergoing bankruptcy proceedings where a concession has not yet been determined. As the outcome of the bankruptcy cases is determined by a court based on available assets, subsequent re-defaults are unusual and were not material for retail and finance lease contracts that were modified in a TDR during the previous 12 months ended June 30, 2017 and 2016. As of June 30, 2017 and 2016, the Company’s wholesale TDRs were immaterial.

CREDIT FACILITIES AND DEBT

CREDIT FACILITIES AND DEBT	6 Months Ended
	Jun. 30, 2017
CREDIT FACILITIES AND DEBT
CREDIT FACILITIES AND DEBT	NOTE 5: CREDIT FACILITIES AND DEBT In April 2017, the Company repaid $100,000 under its U.S. wholesale committed asset-backed facility, decreased the facility limit to $300,000 and renewed the facility with an automatic renewal every three months. On May 18, 2017, the Company renewed its $500,000 U.S. wholesale committed asset-backed facility, with a final maturity in May 2018. On June 26, 2017, the Company repaid its $100,000 unsecured term loan. Also on that date, the Company entered into a $100,000 unsecured revolving credit facility, with a final maturity in June 2020, and a $100,000 uncommitted credit line, with a final maturity in June 2018. As of June 30, 2017, the uncommitted credit line was fully drawn. On June 27, 2017, the Company replaced its undrawn $100,000 unsecured revolving credit facility with a C$200,000 ($151,602) unsecured revolving credit facility, with a final maturity in June 2020. The facility was fully drawn as of June 30, 2017.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2017
INCOME TAXES
INCOME TAXES	NOTE 6: INCOME TAXES The effective tax rates for the three months ended June 30, 2017 and 2016 were 30.7% and 34.2%, respectively. The effective tax rate was 31.3% for the six-month period ended June 30, 2017, compared to 32.8% for the same period in 2016. The Company’s provision for income taxes is based on an estimated tax rate for the year applied to the year-to-date federal, state and foreign income. The 2017 estimated annual tax rate is expected to be lower than the U.S. federal corporate income tax rate of 35% primarily due to profits in tax jurisdictions with lower rates, including Canada.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2017
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS	NOTE 7: FINANCIAL INSTRUMENTS The Company may elect to measure many financial instruments and certain other items at fair value. This fair value option must be applied on an instrument-by-instrument basis with changes in fair value reported in earnings. The election can be made at the acquisition of an eligible financial asset, financial liability, or firm commitment or when certain specified reconsideration events occur. The fair value election may not be revoked once made. The Company did not elect the fair value measurement option for eligible items. Fair-Value Hierarchy U.S. GAAP specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s internally-developed market assumptions. These two types of inputs have created the following fair-value hierarchy: Level 1— Quoted prices for identical instruments in active markets. Level 2— Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3— Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires the use of observable market data when available. Determination of Fair Value When available, the Company uses quoted market prices to determine fair value and classifies such items in Level 1. In some cases where a market price is not available, the Company will make use of observable market-based inputs to calculate fair value, in which case the items are classified in Level 2. If quoted or observable market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters such as interest rates, currency rates, or yield curves. Items valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable. The following section describes the valuation methodologies used by the Company to measure various financial instruments at fair value, including an indication of the level in the fair value hierarchy in which each instrument is generally classified. Where appropriate, the description includes details of the valuation models and the key inputs to those models, as well as any significant assumptions. Derivatives The Company utilizes derivative instruments to mitigate its exposure to interest rate and foreign currency exposures. Derivatives used as hedges are effective at reducing the risk associated with the exposure being hedged and are designated as a hedge at the inception of the derivative contract. The Company does not hold or issue derivative or other financial instruments for speculative purposes. The credit risk for the interest rate hedges is reduced through diversification among counterparties, utilizing mandatory termination clauses and/or collateral support agreements. Derivative instruments are generally classified in Level 2 or 3 of the fair value hierarchy. The cash flows underlying all derivative contracts were recorded in operating activities in the consolidated statements of cash flows. Interest Rate Derivatives The Company has entered into interest rate derivatives in order to manage interest rate exposures arising in the normal course of business. Interest rate derivatives that have been designated in cash flow hedging relationships are being used by the Company to mitigate the risk of rising interest rates related to debt and anticipated issuance of fixed-rate debt in future periods. Gains and losses on these instruments, to the extent that the hedge relationship has been effective, are deferred in accumulated other comprehensive income (loss) and recognized in interest expense over the period in which the Company recognizes interest expense on the related debt. Ineffectiveness recognized related to these hedging relationships was not significant for the three and six months ended June 30, 2017 and 2016. These amounts are recorded in “Other expenses” in the consolidated statements of income. As of June 30, 2017, the after-tax losses deferred in accumulated other comprehensive income (loss) that will be recognized in interest expense over the next 12 months are approximately $518. The Company also enters into interest rate derivatives with substantially similar economic terms that are not designated as hedging instruments to mitigate interest rate risk related to the Company’s committed asset-backed facilities. These facilities require the Company to enter into interest rate derivatives. To ensure that these transactions do not result in the Company being exposed to this risk, the Company enters into an offsetting position. Unrealized and realized gains and losses resulting from fair value changes in these instruments are recognized directly in income and were insignificant for the three and six months ended June 30, 2017 and 2016. Most of the Company’s interest rate derivatives are considered Level 2. The fair market value of these derivatives is calculated using market data input for forecasted benchmark interest rates and can be compared to actively traded derivatives. If the future notional amount of the Company’s interest rate derivatives is not known in advance, the derivatives are considered Level 3 derivatives. The fair market value of these derivatives is calculated using market data input and a forecasted future notional balance. The total notional amount of the Company’s interest rate derivatives was approximately $3,426,412 and $2,954,424 at June 30, 2017 and December 31, 2016, respectively. The seven-month average notional amounts for the six months ended June 30, 2017 and 2016 were $3,188,873 and $3,168,190, respectively. Foreign Exchange Contracts The Company uses forward contracts to hedge certain assets and liabilities denominated in foreign currencies. Such derivatives are considered economic hedges and are not designated as hedging instruments. The changes in the fair value of these instruments are recognized directly as income in “Other expenses” and are expected to offset the foreign exchange gains or losses on the exposures being managed. All of the Company’s foreign exchange derivatives are considered Level 2 as the fair value is calculated using market data input and can be compared to actively traded derivatives. Financial Statement Impact of the Company’s Derivatives The fair values of the Company’s derivatives as of June 30, 2017 and December 31, 2016 in the consolidated balance sheets are recorded as follows: June 30, December 31, 2017 2016 Derivatives Designated as Hedging Instruments Other assets: Interest rate derivatives $ 2,489 $ 1,631 Accounts payable and other accrued liabilities: Interest rate derivatives $ 4,908 $ 5,646 Derivatives Not Designated as Hedging Instruments Other assets: Interest rate derivatives $ 3,632 $ 3,977 Foreign exchange contracts — 58 Total $ 3,632 $ 4,035 Accounts payable and other accrued liabilities: Interest rate derivatives $ 3,632 $ 3,977 Foreign exchange contracts 660 1,183 Total $ 4,292 $ 5,160 Pre-tax gains (losses) on the consolidated statements of income and comprehensive income related to the Company’s derivatives for the three and six months ended June 30, 2017 and 2016 are recorded in the following accounts: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Cash Flow Hedges Recognized in accumulated other comprehensive income (loss) (effective portion): Interest rate derivatives $ 823 $ 1,000 $ 542 $ 881 Reclassified from accumulated other comprehensive income (loss) (effective portion): Interest rate derivatives—Interest expense to third parties (173) (163) (340) (327) Not Designated as Hedges Foreign exchange contracts—Other expenses $ 660 $ 1,721 $ $ 1,877 Items Measured at Fair Value on a Recurring Basis The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016, all of which are classified as Level 2: June 30, December 31, 2017 2016 Assets Interest rate derivatives $ 6,121 $ 5,608 Foreign exchange contracts — 58 Total assets $ 6,121 $ 5,666 Liabilities Interest rate derivatives $ 8,540 $ 9,623 Foreign exchange contracts 660 1,183 Total liabilities $ 9,200 $ 10,806 There were no transfers between Level 1, Level 2 and Level 3 hierarchy levels during the periods presented. Fair Value of Other Financial Instruments The carrying amount of cash and cash equivalents, restricted cash, floating-rate affiliated accounts and notes receivable, floating-rate short-term debt, interest payable and short-term affiliated debt was assumed to approximate its fair value. Under the fair value hierarchy, cash and cash equivalents and restricted cash are classified as Level 1 and the remainder of the financial instruments listed is classified as Level 2. Financial Instruments Not Carried at Fair Value The carrying amount and estimated fair value of assets and liabilities considered financial instruments as of June 30, 2017 and December 31, 2016 are as follows: June 30, 2017 December 31, 2016 Carrying Estimated Carrying Estimated Amount Fair Value * Amount Fair Value * Receivables $ 10,507,204 $ 10,456,958 $ 10,882,070 $ 10,885,595 Long-term debt $ 6,948,049 $ 6,945,359 $ 7,474,318 $ 7,364,581 ______________ * Under the fair value hierarchy, receivables measurements are classified as Level 3 and long‑term debt measurements are classified as Level 2. Financial Assets The fair value of receivables was determined by discounting the estimated future payments using a discount rate, which includes an estimate for credit risk. Financial Liabilities The fair values of long-term debt were based on current market quotes for identical or similar borrowings and credit risk.

SEGMENT AND GEOGRAPHICAL INFORM

SEGMENT AND GEOGRAPHICAL INFORMATION	6 Months Ended
	Jun. 30, 2017
SEGMENT AND GEOGRAPHICAL INFORMATION
SEGMENT AND GEOGRAPHICAL INFORMATION	NOTE 8: SEGMENT AND GEOGRAPHICAL INFORMATION The Company’s segment data is based on disclosure requirements of accounting guidance on segment reporting, which requires financial information be reported on the basis that is used internally for measuring segment performance. The Company’s reportable segments are strategic business units that are organized around differences in geographic areas. Each segment is managed separately as they require different knowledge of regulatory environments and marketing strategies. The operating segments offer primarily the same services within each of the respective segments. A summary of the Company’s reportable segment information is as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Revenues United States $ $ 196,830 $ 378,668 $ 392,103 Canada 42,140 44,840 86,028 84,487 Eliminations (957) (1,031) (1,999) (2,033) Total $ $ 240,639 $ 462,697 $ 474,557 Interest expense United States $ 68,703 $ 69,299 $ 133,136 $ 133,403 Canada 11,051 10,791 22,388 19,660 Eliminations (957) (1,031) (1,999) (2,033) Total $ 78,797 $ 79,059 $ 153,525 $ 151,030 Segment net income United States $ 24,102 $ 28,958 $ 48,332 $ 69,851 Canada 14,085 17,471 28,248 33,799 Total $ 38,187 $ 46,429 $ 76,580 $ 103,650 Depreciation and amortization United States $ 56,780 $ 50,360 $ 114,496 $ 98,924 Canada 10,880 10,235 21,852 19,440 Total $ 67,660 $ 60,595 $ 136,348 $ 118,364 Expenditures for equipment on operating leases United States $ $ $ $ Canada 31,094 48,624 55,872 74,457 Total $ $ 173,444 $ 342,871 $ 322,704 Provision for credit losses United States $ 10,993 $ 8,823 $ 22,917 $ 16,806 Canada (376) (1,563) 181 (3,149) Total $ 10,617 $ 7,260 $ 23,098 $ 13,657 As of As of June 30, December 31, 2017 2016 Segment assets United States $ 11,171,744 $ 12,016,606 Canada 2,496,251 2,400,814 Eliminations (214,007) (374,161) Total $ 13,453,988 $ 14,043,259 Managed receivables United States $ 8,655,248 $ 9,082,365 Canada 1,937,130 1,884,600 Total $ 10,592,378 $ 10,966,965

RELATED - PARTY TRANSACTIONS

RELATED - PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2017
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS	NOTE 9: RELATED-PARTY TRANSACTIONS The Company receives compensation from CNH Industrial North America for retail, wholesale and operating lease sales programs offered by CNH Industrial North America on which finance charges are waived or below market rate financing programs are offered. The Company receives compensation from CNH Industrial North America based on the Company’s estimated costs and a targeted return on equity. The Company is also compensated for lending funds to CNH Industrial North America. The summary of sources included in “Interest and other income from affiliates” in the accompanying consolidated statements of income for the three and six months ended June 30, 2017 and 2016 is as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Subsidy from CNH Industrial North America: Retail $ $ 44,723 $ 77,160 $ 88,732 Wholesale 39,909 82,930 78,384 Operating lease 17,789 34,107 34,954 Income from affiliated receivables: CNH Industrial North America 24 256 66 633 Total interest and other income from affiliates $ $ 102,677 $ $ 202,703 Fees charged by affiliates represent payroll and other human resource services CNH Industrial America performs on behalf of the Company. As of June 30, 2017 and December 31, 2016, the Company had various accounts and notes receivable and debt with the following affiliates: June 30, December 31, 2017 2016 Affiliated receivables from: CNH Industrial America $ 15,967 $ CNH Industrial Canada Ltd. 22,085 Other affiliates 12,302 Total affiliated receivables $ 50,354 $ Affiliated debt owed to: CNH Industrial America $ 4,305 $ Accounts payable and other accrued liabilities, including tax payables, of $24,138 and $3,792, respectively, as of June 30, 2017 and December 31, 2016, were payable to related parties. Interest expense to affiliates was $2,663 and $2,481, respectively, for the three months ended June 30, 2017 and 2016 and $7,136 and $3,368, respectively, for the six months ended June 30, 2017 and 2016.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2017
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 10: COMMITMENTS AND CONTINGENCIES Legal Matters The Company is party to various litigation matters and claims arising from its operations. Management believes that the outcome of these proceedings, individually and in the aggregate, will not have a material adverse effect on the Company’s financial position or results of operations. Commitments The Company has various agreements to extend credit for the wholesale and dealer financing managed portfolio. At June 30, 2017, the total credit limit available was $6,351,234, of which $3,452,183 was utilized.

SUPPLEMENTAL CONDENSED CONSOLID

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION	6 Months Ended
	Jun. 30, 2017
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION	NOTE 11: SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION CNH Industrial Capital America and New Holland Credit, which are 100%-owned subsidiaries of CNH Industrial Capital LLC (the “Guarantor Entities”), guarantee certain indebtedness of CNH Industrial Capital LLC. As the guarantees are full, unconditional, and joint and several and because the Guarantor Entities are 100%-owned by CNH Industrial Capital LLC, the Company has included the following condensed consolidating financial information as of June 30, 2017 and December 31, 2016 and for the three and six months ended June 30, 2017 and 2016. The condensed consolidating financial information reflects investments in consolidated subsidiaries under the equity method of accounting. Condensed Statements of Comprehensive Income for the Three Months Ended June 30, 2017 CNH Industrial Guarantor All Other Capital LLC Entities Subsidiaries Eliminations Consolidated REVENUES Interest income on retail notes and finance leases $ — $ 3,962 $ 44,416 $ — $ 48,378 Interest income on wholesale notes — (278) 16,317 — 16,039 Interest and other income from affiliates 25,783 61,306 79,962 (69,251) 97,800 Rental income on operating leases — 49,506 13,025 — 62,531 Other income — 23,612 423 (18,920) 5,115 Total revenues 25,783 138,108 (88,171) EXPENSES Interest expense: Interest expense to third parties 38,945 1,861 35,328 — 76,134 Interest expense to affiliates — 60,476 11,438 (69,251) 2,663 Total interest expense 38,945 62,337 46,766 (69,251) 78,797 Administrative and operating expenses: Fees charged by affiliates — 10,577 19,285 (18,920) 10,942 Provision for credit losses — 1,219 9,398 — 10,617 Depreciation of equipment on operating leases — 56,256 10,877 — 67,133 Other expenses — 4,652 2,650 — 7,302 Total administrative and operating expenses — 72,704 42,210 (18,920) 95,994 Total expenses 38,945 135,041 88,976 (88,171) Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method (13,162) 3,067 65,167 — 55,072 Income tax provision (benefit) (4,912) 1,186 20,611 — 16,885 Equity in income of consolidated subsidiaries accounted for under the equity method 46,437 44,556 — (90,993) — NET INCOME $ 38,187 $ 46,437 $ 44,556 $ (90,993) $ 38,187 COMPREHENSIVE INCOME $ 55,934 $ 64,184 $ 59,732 $ $ Condensed Statements of Comprehensive Income for the Six Months Ended June 30, 2017 CNH Industrial Guarantor All Other Capital LLC Entities Subsidiaries Eliminations Consolidated REVENUES Interest income on retail notes and finance leases $ — $ $ $ — $ 99,191 Interest income on wholesale notes — (574) 32,629 — 32,055 Interest and other income from affiliates 194,263 Rental income on operating leases — 99,730 25,995 — 125,725 Other income — 48,884 705 (38,126) 11,463 Total revenues 48,450 276,762 309,415 462,697 EXPENSES Interest expense: Interest expense to third parties 78,673 (671) 68,387 — 146,389 Interest expense to affiliates — 22,774 7,136 Total interest expense 78,673 91,161 153,525 Administrative and operating expenses: Fees charged by affiliates — 21,749 39,018 (38,126) 22,641 Provision for credit losses — 5,996 17,102 — 23,098 Depreciation of equipment on operating leases — 113,456 21,846 — 135,302 Other expenses — 12,528 4,101 — 16,629 Total administrative and operating expenses — 153,729 82,067 (38,126) 197,670 Total expenses 78,673 173,228 351,195 Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method (30,223) 5,538 136,187 — 111,502 Income tax provision (benefit) (11,279) 2,166 44,035 — 34,922 Equity in income of consolidated subsidiaries accounted for under the equity method 95,524 92,152 — (187,676) — NET INCOME $ 76,580 $ 95,524 $ 92,152 $ $ 76,580 COMPREHENSIVE INCOME $ 98,844 $ $ 111,024 $ $ 98,844 Condensed Balance Sheets as of June 30, 2017 CNH Industrial Guarantor All Other Capital LLC Entities Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ — $ 67,823 $ 90,930 $ — $ 158,753 Restricted cash — 100 540,748 — 540,848 Receivables, less allowance for credit losses — 1,310,545 9,196,659 — 10,507,204 Affiliated accounts and notes receivable 2,981,452 2,204,091 1,909,147 (7,044,336) 50,354 Equipment on operating leases, net — 1,505,934 355,244 — 1,861,178 Equipment held for sale — 172,631 16,375 — 189,006 Investments in consolidated subsidiaries accounted for under the equity method 2,404,253 2,443,692 — (4,847,945) — Goodwill and intangible assets, net — 88,020 28,137 — 116,157 Other assets 1,748 (9,992) 42,505 (3,773) 30,488 TOTAL $ 5,387,453 $ 7,782,844 $ 12,179,745 $ (11,896,054) $ 13,453,988 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities: Short-term debt, including current maturities of long-term debt $ 700,610 $ 47,333 $ 3,675,064 $ — $ 4,423,007 Accounts payable and other accrued liabilities 293,791 2,661,704 1,241,040 (3,443,357) 753,178 Affiliated debt — 2,638,383 970,674 (3,604,752) 4,305 Long-term debt 3,067,603 31,171 3,849,275 — 6,948,049 Total liabilities 4,062,004 5,378,591 9,736,053 (7,048,109) 12,128,539 Stockholder’s equity 1,325,449 2,404,253 2,443,692 (4,847,945) 1,325,449 TOTAL $ 5,387,453 $ 7,782,844 $ 12,179,745 $ (11,896,054) $ 13,453,988 Condensed Statements of Cash Flows for the Six Months Ended June 30, 2017 CNH Industrial Guarantor All Other Capital LLC Entities Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash from (used in) operating activities $ 138,595 $ 177,932 $ 198,702 $ (315,362) $ 199,867 CASH FLOWS FROM INVESTING ACTIVITIES: Cost of receivables acquired — (3,776,561) (4,239,265) 3,207,693 (4,808,133) Collections of receivables — 3,913,846 4,526,691 (3,208,216) 5,232,321 Change in restricted cash — — 175,854 — 175,854 Purchase of equipment on operating leases, net — (75,969) (32,086) — (108,055) Change in property and equipment and software, net — (113) — — (113) Net cash from (used in) investing activities — 61,203 431,194 (523) 491,874 CASH FLOWS FROM FINANCING ACTIVITIES: Intercompany activity — (298,095) (146,336) 315,885 (128,546) Net change in indebtedness 1,405 (24,770) (405,324) — (428,689) Dividends paid to CNH Industrial America LLC (140,000) — — — (140,000) Net cash from (used in) financing activities (138,595) (322,865) (551,660) 315,885 (697,235) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS — (83,730) 78,236 — (5,494) CASH AND CASH EQUIVALENTS: Beginning of period — 151,553 12,694 — 164,247 End of period $ — $ 67,823 $ 90,930 $ — $ 158,753 Condensed Statements of Comprehensive Income for the Three Months Ended June 30, 2016 CNH Industrial Guarantor All Other Capital LLC Entities Subsidiaries Eliminations Consolidated REVENUES Interest income on retail notes and finance leases $ — $ 4,014 $ 48,715 $ — $ 52,729 Interest income on wholesale notes — 30 18,438 — 18,468 Interest and other income from affiliates 24,203 57,907 83,967 (63,400) 102,677 Rental income on operating leases — 48,443 11,734 — 60,177 Other income — 26,729 706 (20,847) 6,588 Total revenues 24,203 137,123 163,560 (84,247) 240,639 EXPENSES Interest expense: Interest expense to third parties 43,562 1,398 31,618 — 76,578 Interest expense to affiliates — 56,442 9,439 (63,400) 2,481 Total interest expense 43,562 57,840 41,057 (63,400) 79,059 Administrative and operating expenses: Fees charged by affiliates — 10,657 21,309 (20,847) 11,119 Provision for credit losses — 3,845 3,415 — 7,260 Depreciation of equipment on operating leases — 49,870 10,230 — 60,100 Other expenses — 9,783 2,746 — 12,529 Total administrative and operating expenses — 74,155 37,700 (20,847) 91,008 Total expenses 43,562 131,995 78,757 (84,247) 170,067 Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method (19,359) 5,128 84,803 — 70,572 Income tax provision (benefit) (6,976) 3,650 27,469 — 24,143 Equity in income of consolidated subsidiaries accounted for under the equity method 58,812 57,334 — (116,146) — NET INCOME $ 46,429 $ 58,812 $ 57,334 $ (116,146) $ 46,429 COMPREHENSIVE INCOME $ 46,782 $ 59,165 $ 57,640 $ (116,805) $ 46,782 Condensed Statements of Comprehensive Income for the Six Months Ended June 30, 2016 CNH Industrial Guarantor All Other Capital LLC Entities Subsidiaries Eliminations Consolidated REVENUES Interest income on retail notes and finance leases $ — $ 7,558 $ 99,174 $ — $ 106,732 Interest income on wholesale notes — 24 33,460 — 33,484 Interest and other income from affiliates 44,844 114,135 166,336 (122,612) 202,703 Rental income on operating leases — 97,260 22,199 — 119,459 Other income — 52,863 1,322 (42,006) 12,179 Total revenues 44,844 271,840 322,491 (164,618) 474,557 EXPENSES Interest expense: Interest expense to third parties 84,023 (1,097) 64,736 — 147,662 Interest expense to affiliates — 109,089 16,891 (122,612) 3,368 Total interest expense 84,023 107,992 81,627 (122,612) 151,030 Administrative and operating expenses: Fees charged by affiliates — 21,921 42,921 (42,006) 22,836 Provision for credit losses — 3,696 9,961 — 13,657 Depreciation of equipment on operating leases — 97,952 19,432 — 117,384 Other expenses — 10,580 4,933 — 15,513 Total administrative and operating expenses — 134,149 77,247 (42,006) 169,390 Total expenses 84,023 242,141 158,874 (164,618) 320,420 Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method (39,179) 29,699 163,617 — 154,137 Income tax provision (benefit) (14,621) 11,256 53,852 — 50,487 Equity in income of consolidated subsidiaries accounted for under the equity method 128,208 109,765 — (237,973) — NET INCOME $ 103,650 $ 128,208 $ 109,765 $ (237,973) $ 103,650 COMPREHENSIVE INCOME $ 146,385 $ 170,943 $ 146,586 $ (317,529) $ 146,385 Condensed Balance Sheets as of December 31, 2016 CNH Industrial Guarantor All Other Capital LLC Entities Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ — $ 151,553 $ 12,694 $ — $ 164,247 Restricted cash — 100 712,745 — 712,845 Receivables, less allowance for credit losses — 1,453,303 9,428,767 — 10,882,070 Affiliated accounts and notes receivable 3,138,443 2,293,055 1,878,093 (7,225,748) 83,843 Equipment on operating leases, net — 1,526,746 331,697 — 1,858,443 Equipment held for sale — 182,636 17,347 — 199,983 Investments in consolidated subsidiaries accounted for under the equity method 2,286,578 2,332,668 — (4,619,246) — Goodwill and intangible assets, net — 88,938 27,143 — 116,081 Other assets 3,870 (14,344) 40,517 (4,296) 25,747 TOTAL $ 5,428,891 $ 8,014,655 $ 12,449,003 $ (11,849,290) $ 14,043,259 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities: Short-term debt, including current maturities of long-term debt $ 500,000 $ 45,289 $ 3,717,340 $ — $ 4,262,629 Accounts payable and other accrued liabilities 295,365 2,688,323 1,132,462 (3,309,407) 806,743 Affiliated debt — 2,936,479 1,117,009 (3,920,637) 132,851 Long-term debt 3,266,808 57,986 4,149,524 — 7,474,318 Total liabilities 4,062,173 5,728,077 10,116,335 (7,230,044) 12,676,541 Stockholder’s equity 1,366,718 2,286,578 2,332,668 (4,619,246) 1,366,718 TOTAL $ 5,428,891 $ 8,014,655 $ 12,449,003 $ (11,849,290) $ 14,043,259 Condensed Statements of Cash Flows for the Six Months Ended June 30, 2016 CNH Industrial Guarantor All Other Capital LLC Entities Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash from (used in) operating activities $ (349,422) $ (263,783) $ 584,004 $ 380,588 $ 351,387 CASH FLOWS FROM INVESTING ACTIVITIES: Cost of receivables acquired — (3,939,125) (4,324,298) 3,359,135 (4,904,288) Collections of receivables — 3,970,019 4,612,278 (3,359,011) 5,223,286 Change in restricted cash — — 6,417 — 6,417 Purchase of equipment on operating leases, net — (107,175) (44,964) — (152,139) Change in property and equipment and software, net — (180) (2) — (182) Net cash from (used in) investing activities — (76,461) 249,431 124 173,094 CASH FLOWS FROM FINANCING ACTIVITIES: Intercompany activity — 315,294 42,777 (380,712) (22,641) Net change in indebtedness 499,422 (11,121) (973,373) — (485,072) Dividends paid to CNH Industrial America LLC (150,000) — — — (150,000) Net cash from (used in) financing activities 349,422 304,173 (930,596) (380,712) (657,713) DECREASE IN CASH AND CASH EQUIVALENTS — (36,071) (97,161) — (133,232) CASH AND CASH EQUIVALENTS: Beginning of period — 181,740 120,408 — 302,148 End of period $ — $ 145,669 $ 23,247 $ — $ 168,916

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2017
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 12: SUBSEQUENT EVENTS On July 25, 2017, the Company, through a bankruptcy-remote trust, issued $747,560 of amortizing asset-backed notes securitized by U.S. retail note receivables.

ACCUMULATED OTHER COMPREHENSI20

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	6 Months Ended
	Jun. 30, 2017
ACCUMULATED OTHER COMPREHENSIVE INCOME
Schedule of changes in the components of AOCI and related tax effects	The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the three months ended June 30, 2017: Currency Unrealized Translation Pension Losses on Adjustment Liability Derivatives Total Beginning balance, gross $ (135,091) $ (5,598) $ (1,328) $ (142,017) Tax asset — 2,044 354 2,398 Beginning balance, net of tax (135,091) (3,554) (974) (139,619) Other comprehensive income (loss) before reclassifications 16,912 (67) 823 17,668 Amounts reclassified from accumulated other comprehensive income (loss) — 232 173 405 Tax effects — (62) (264) (326) Net current-period other comprehensive income (loss) 16,912 103 732 17,747 Total $ (118,179) $ (3,451) $ (242) $ (121,872) The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the six months ended June 30, 2017: Currency Unrealized Translation Pension Losses on Adjustment Liability Derivatives Total Beginning balance, gross $ (139,585) $ (5,768) $ (1,213) $ (146,566) Tax asset — 2,107 323 2,430 Beginning balance, net of tax (139,585) (3,661) (890) (144,136) Other comprehensive income (loss) before reclassifications 21,406 (128) 542 21,820 Amounts reclassified from accumulated other comprehensive income (loss) — 463 340 803 Tax effects — (125) (234) (359) Net current-period other comprehensive income (loss) 21,406 210 648 22,264 Total $ (118,179) $ (3,451) $ (242) $ (121,872) The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the three months ended June 30, 2016: Currency Unrealized Translation Pension Losses on Adjustment Liability Derivatives Total Beginning balance, gross $ (113,092) $ (5,917) $ (3,139) $ (122,148) Tax asset — 2,159 833 2,992 Beginning balance, net of tax (113,092) (3,758) (2,306) (119,156) Other comprehensive income (loss) before reclassifications (626) (56) 1,000 318 Amounts reclassified from accumulated other comprehensive income (loss) — 254 163 417 Tax effects — (74) (308) (382) Net current-period other comprehensive income (loss) (626) 124 855 353 Total $ (113,718) $ (3,634) $ (1,451) $ (118,803) The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the six months ended June 30, 2016: Currency Unrealized Translation Pension Losses on Adjustment Liability Derivatives Total Beginning balance, gross $ (155,341) $ (6,084) $ (3,184) $ (164,609) Tax asset — 2,226 845 3,071 Beginning balance, net of tax (155,341) (3,858) (2,339) (161,538) Other comprehensive income (loss) before reclassifications 41,623 (141) 881 42,363 Amounts reclassified from accumulated other comprehensive income (loss) — 506 327 833 Tax effects — (141) (320) (461) Net current-period other comprehensive income (loss) 41,623 224 888 42,735 Total $ (113,718) $ (3,634) $ (1,451) $ (118,803)
Schedule of reclassifications out of AOCI and the location on the consolidated statements of income	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Affected Line Item Amortization of defined benefit pension items: $ (232) $ (254) $ (463) $ (506) Various line items individually insignificant (232) (254) (463) (506) Income before taxes 87 94 173 195 Income tax benefit $ (145) $ (160) $ (290) $ (311) Net of tax Unrealized losses on derivatives: $ (173) $ (163) $ (340) $ (327) Interest expense to third parties (173) (163) Income before taxes 45 43 90 87 Income tax benefit $ (128) $ (120) $ (250) $ (240) Net of tax

RECEIVABLES (Tables)

RECEIVABLES (Tables)	6 Months Ended
	Jun. 30, 2017
Receivables
Summary of receivables	June 30, December 31, 2017 2016 Retail note receivables $ 671,886 $ 854,777 Wholesale receivables 672,140 677,371 Finance lease receivables 48,120 42,291 Restricted receivables 9,200,232 9,392,526 Gross receivables 10,592,378 10,966,965 Less: Allowance for credit losses (85,174) (84,895) Total receivables, net $ 10,507,204 $ 10,882,070
Summary of restricted receivables	June 30, December 31, 2017 2016 Retail note receivables $ 6,361,591 $ 6,500,949 Wholesale receivables 2,838,641 2,891,577 Total restricted receivables $ 9,200,232 $ 9,392,526
Schedule of allowance for credit losses activity	Allowance for credit losses activity for the three months ended June 30, 2017 is as follows: Retail Wholesale Total Allowance for credit losses: Beginning balance $ 79,859 $ 5,317 $ 85,176 Charge-offs (10,184) (1,228) (11,412) Recoveries 962 1 963 Provision 9,986 631 10,617 Foreign currency translation and other (183) 13 (170) Ending balance $ 80,440 $ 4,734 $ 85,174 Allowance for credit losses activity for the six months ended June 30, 2017 is as follows: Retail Wholesale Total Allowance for credit losses: Beginning balance $ 78,047 $ 6,848 $ 84,895 Charge-offs (22,275) (2,016) (24,291) Recoveries 1,996 8 2,004 Provision (benefit) 23,221 (123) 23,098 Foreign currency translation and other (549) 17 (532) Ending balance $ 80,440 $ 4,734 $ 85,174 Ending balance: individually evaluated for impairment $ 21,708 $ 2,170 $ 23,878 Ending balance: collectively evaluated for impairment $ 58,732 $ 2,564 $ 61,296 Receivables: Ending balance $ 7,081,597 $ 3,510,781 $ 10,592,378 Ending balance: individually evaluated for impairment $ 42,225 $ 34,160 $ 76,385 Ending balance: collectively evaluated for impairment $ 7,039,372 $ 3,476,621 $ 10,515,993 Allowance for credit losses activity for the three months ended June 30, 2016 is as follows: Retail Wholesale Total Allowance for credit losses: Beginning balance $ 86,667 $ 6,569 $ 93,236 Charge-offs (13,513) — (13,513) Recoveries 568 513 1,081 Provision (benefit) 7,424 (164) 7,260 Foreign currency translation and other (460) 32 (428) Ending balance $ 80,686 $ 6,950 $ 87,636 Allowance for credit losses activity for the six months ended June 30, 2016 is as follows: Retail Wholesale Total Allowance for credit losses: Beginning balance $ 88,405 $ 6,319 $ 94,724 Charge-offs (22,897) (1) (22,898) Recoveries 1,518 517 2,035 Provision 13,641 16 13,657 Foreign currency translation and other 19 99 118 Ending balance $ 80,686 $ 6,950 $ 87,636 Ending balance: individually evaluated for impairment $ 17,812 $ 3,728 $ 21,540 Ending balance: collectively evaluated for impairment $ 62,874 $ 3,222 $ 66,096 Receivables: Ending balance $ 7,739,799 $ 3,780,577 $ 11,520,376 Ending balance: individually evaluated for impairment $ 61,724 $ 60,801 $ 122,525 Ending balance: collectively evaluated for impairment $ 7,678,075 $ 3,719,776 $ 11,397,851 Allowance for credit losses activity for the year ended December 31, 2016 is as follows:
Schedule of aging of financing receivables	The aging of receivables as of June 30, 2017 and December 31, 2016 is as follows: June 30, 2017 Recorded Investment Greater > 90 Days 31 – 60 Days 61 – 90 Days Than Total Total and Past Due Past Due 90 Days Past Due Current Receivables Accruing Retail United States $ 26,454 $ 8,196 $ 36,044 $ 70,694 $ 5,804,519 $ 5,875,213 $ 4,268 Canada $ 3,399 $ 1,865 $ 2,483 $ 7,747 $ 1,198,637 $ 1,206,384 $ 878 Wholesale United States $ 562 $ 251 $ 284 $ 1,097 $ 2,778,938 $ 2,780,035 $ 23 Canada $ — $ — $ 8 $ 8 $ 730,738 $ 730,746 $ — Total Retail $ 29,853 $ 10,061 $ 38,527 $ 78,441 $ 7,003,156 $ 7,081,597 $ 5,146 Wholesale $ 562 $ 251 $ 292 $ 1,105 $ 3,509,676 $ 3,510,781 $ 23 December 31, 2016 Recorded Investment Greater > 90 Days 31 – 60 Days 61 – 90 Days Than Total Total and Past Due Past Due 90 Days Past Due Current Receivables Accruing Retail United States $ 25,416 $ 6,743 $ 40,500 $ 72,659 $ 6,146,129 $ 6,218,788 $ 7,377 Canada $ 2,828 $ 765 $ 1,038 $ 4,631 $ 1,174,598 $ 1,179,229 $ 736 Wholesale United States $ 823 $ 88 $ 444 $ 1,355 $ 2,862,222 $ 2,863,577 $ — Canada $ — $ 1 $ 4 $ 5 $ 705,366 $ 705,371 $ — Total Retail $ 28,244 $ 7,508 $ 41,538 $ 77,290 $ 7,320,727 $ 7,398,017 $ 8,113 Wholesale $ 823 $ 89 $ 448 $ 1,360 $ 3,567,588 $ 3,568,948 $ —
Schedule of recorded investment in impaired receivables and the related unpaid principal balances, allowances and average recorded investment	June 30, 2017 Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment Retail United States $ 41,883 $ 39,955 $ 21,499 $ 44,925 Canada $ 342 $ 330 $ 209 $ 331 Wholesale United States $ 34,160 $ 33,893 $ 2,170 $ 38,411 Canada $ — $ — $ — $ — Total Retail $ 42,225 $ 40,285 $ 21,708 $ 45,256 Wholesale $ 34,160 $ 33,893 $ 2,170 $ 38,411 December 31, 2016 Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment Retail United States $ 31,360 $ 30,031 $ 18,102 $ 31,268 Canada $ 23 $ 23 $ 11 $ 28 Wholesale United States $ 43,659 $ 43,369 $ 4,250 $ 46,482 Canada $ — $ — $ — $ — Total Retail $ 31,383 $ 30,054 $ 18,113 $ 31,296 Wholesale $ 43,659 $ 43,369 $ 4,250 $ 46,482
Schedule of receivables on nonaccrual status	June 30, 2017 December 31, 2016 Retail Wholesale Total Retail Wholesale Total United States $ 37,798 $ 33,893 $ 71,691 $ 49,998 $ 43,369 $ 93,367 Canada $ 1,623 $ — $ 1,623 $ 325 $ — $ 325
Retail
Receivables
Schedule of breakdown of the portfolio by its credit quality indicators	June 30, December 31, 2017 2016 Titanium $ 3,929,883 $ 4,117,736 Platinum 1,983,892 2,045,684 Gold 990,541 1,042,918 Silver 144,467 157,170 Bronze 32,814 34,509 Total $ 7,081,597 $ 7,398,017
Wholesale
Receivables
Schedule of breakdown of the portfolio by its credit quality indicators	June 30, December 31, 2017 2016 A $ 1,246,559 $ 1,330,159 B 1,484,736 1,603,893 C 441,296 322,652 D 338,190 312,244 Total $ 3,510,781 $ 3,568,948

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2017
FINANCIAL INSTRUMENTS
Schedule of fair values of derivatives in the consolidated balance sheets	June 30, December 31, 2017 2016 Derivatives Designated as Hedging Instruments Other assets: Interest rate derivatives $ 2,489 $ 1,631 Accounts payable and other accrued liabilities: Interest rate derivatives $ 4,908 $ 5,646 Derivatives Not Designated as Hedging Instruments Other assets: Interest rate derivatives $ 3,632 $ 3,977 Foreign exchange contracts — 58 Total $ 3,632 $ 4,035 Accounts payable and other accrued liabilities: Interest rate derivatives $ 3,632 $ 3,977 Foreign exchange contracts 660 1,183 Total $ 4,292 $ 5,160
Schedule of pre-tax gains (losses) on the consolidated statements of income related to the Company's derivatives	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Cash Flow Hedges Recognized in accumulated other comprehensive income (loss) (effective portion): Interest rate derivatives $ 823 $ 1,000 $ 542 $ 881 Reclassified from accumulated other comprehensive income (loss) (effective portion): Interest rate derivatives—Interest expense to third parties (173) (163) (340) (327) Not Designated as Hedges Foreign exchange contracts—Other expenses $ 660 $ 1,721 $ $ 1,877
Schedule of assets and liabilities measured at fair value on a recurring basis	June 30, December 31, 2017 2016 Assets Interest rate derivatives $ 6,121 $ 5,608 Foreign exchange contracts — 58 Total assets $ 6,121 $ 5,666 Liabilities Interest rate derivatives $ 8,540 $ 9,623 Foreign exchange contracts 660 1,183 Total liabilities $ 9,200 $ 10,806
Schedule of carrying amount and estimated fair value of assets and liabilities considered financial instruments	June 30, 2017 December 31, 2016 Carrying Estimated Carrying Estimated Amount Fair Value * Amount Fair Value * Receivables $ 10,507,204 $ 10,456,958 $ 10,882,070 $ 10,885,595 Long-term debt $ 6,948,049 $ 6,945,359 $ 7,474,318 $ 7,364,581 ______________ * Under the fair value hierarchy, receivables measurements are classified as Level 3 and long‑term debt measurements are classified as Level 2.

SEGMENT AND GEOGRAPHICAL INFO23

SEGMENT AND GEOGRAPHICAL INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2017
SEGMENT AND GEOGRAPHICAL INFORMATION
Summary of reportable segment information	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Revenues United States $ $ 196,830 $ 378,668 $ 392,103 Canada 42,140 44,840 86,028 84,487 Eliminations (957) (1,031) (1,999) (2,033) Total $ $ 240,639 $ 462,697 $ 474,557 Interest expense United States $ 68,703 $ 69,299 $ 133,136 $ 133,403 Canada 11,051 10,791 22,388 19,660 Eliminations (957) (1,031) (1,999) (2,033) Total $ 78,797 $ 79,059 $ 153,525 $ 151,030 Segment net income United States $ 24,102 $ 28,958 $ 48,332 $ 69,851 Canada 14,085 17,471 28,248 33,799 Total $ 38,187 $ 46,429 $ 76,580 $ 103,650 Depreciation and amortization United States $ 56,780 $ 50,360 $ 114,496 $ 98,924 Canada 10,880 10,235 21,852 19,440 Total $ 67,660 $ 60,595 $ 136,348 $ 118,364 Expenditures for equipment on operating leases United States $ $ $ $ Canada 31,094 48,624 55,872 74,457 Total $ $ 173,444 $ 342,871 $ 322,704 Provision for credit losses United States $ 10,993 $ 8,823 $ 22,917 $ 16,806 Canada (376) (1,563) 181 (3,149) Total $ 10,617 $ 7,260 $ 23,098 $ 13,657 As of As of June 30, December 31, 2017 2016 Segment assets United States $ 11,171,744 $ 12,016,606 Canada 2,496,251 2,400,814 Eliminations (214,007) (374,161) Total $ 13,453,988 $ 14,043,259 Managed receivables United States $ 8,655,248 $ 9,082,365 Canada 1,937,130 1,884,600 Total $ 10,592,378 $ 10,966,965

RELATED-PARTY TRANSACTIONS (Tab

RELATED-PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 2017
RELATED-PARTY TRANSACTIONS
Summary of the sources included in "Interest and other income from affiliates" in the accompanying consolidated statements of income	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Subsidy from CNH Industrial North America: Retail $ $ 44,723 $ 77,160 $ 88,732 Wholesale 39,909 82,930 78,384 Operating lease 17,789 34,107 34,954 Income from affiliated receivables: CNH Industrial North America 24 256 66 633 Total interest and other income from affiliates $ $ 102,677 $ $ 202,703
Schedule of various accounts and notes receivable and debt with the affiliates	June 30, December 31, 2017 2016 Affiliated receivables from: CNH Industrial America $ 15,967 $ CNH Industrial Canada Ltd. 22,085 Other affiliates 12,302 Total affiliated receivables $ 50,354 $ Affiliated debt owed to: CNH Industrial America $ 4,305 $

SUPPLEMENTAL CONDENSED CONSOL25

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2017
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION
Schedule of condensed statements of comprehensive income	Condensed Statements of Comprehensive Income for the Three Months Ended June 30, 2017 CNH Industrial Guarantor All Other Capital LLC Entities Subsidiaries Eliminations Consolidated REVENUES Interest income on retail notes and finance leases $ — $ 3,962 $ 44,416 $ — $ 48,378 Interest income on wholesale notes — (278) 16,317 — 16,039 Interest and other income from affiliates 25,783 61,306 79,962 (69,251) 97,800 Rental income on operating leases — 49,506 13,025 — 62,531 Other income — 23,612 423 (18,920) 5,115 Total revenues 25,783 138,108 (88,171) EXPENSES Interest expense: Interest expense to third parties 38,945 1,861 35,328 — 76,134 Interest expense to affiliates — 60,476 11,438 (69,251) 2,663 Total interest expense 38,945 62,337 46,766 (69,251) 78,797 Administrative and operating expenses: Fees charged by affiliates — 10,577 19,285 (18,920) 10,942 Provision for credit losses — 1,219 9,398 — 10,617 Depreciation of equipment on operating leases — 56,256 10,877 — 67,133 Other expenses — 4,652 2,650 — 7,302 Total administrative and operating expenses — 72,704 42,210 (18,920) 95,994 Total expenses 38,945 135,041 88,976 (88,171) Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method (13,162) 3,067 65,167 — 55,072 Income tax provision (benefit) (4,912) 1,186 20,611 — 16,885 Equity in income of consolidated subsidiaries accounted for under the equity method 46,437 44,556 — (90,993) — NET INCOME $ 38,187 $ 46,437 $ 44,556 $ (90,993) $ 38,187 COMPREHENSIVE INCOME $ 55,934 $ 64,184 $ 59,732 $ $ Condensed Statements of Comprehensive Income for the Six Months Ended June 30, 2017 CNH Industrial Guarantor All Other Capital LLC Entities Subsidiaries Eliminations Consolidated REVENUES Interest income on retail notes and finance leases $ — $ $ $ — $ 99,191 Interest income on wholesale notes — (574) 32,629 — 32,055 Interest and other income from affiliates 194,263 Rental income on operating leases — 99,730 25,995 — 125,725 Other income — 48,884 705 (38,126) 11,463 Total revenues 48,450 276,762 309,415 462,697 EXPENSES Interest expense: Interest expense to third parties 78,673 (671) 68,387 — 146,389 Interest expense to affiliates — 22,774 7,136 Total interest expense 78,673 91,161 153,525 Administrative and operating expenses: Fees charged by affiliates — 21,749 39,018 (38,126) 22,641 Provision for credit losses — 5,996 17,102 — 23,098 Depreciation of equipment on operating leases — 113,456 21,846 — 135,302 Other expenses — 12,528 4,101 — 16,629 Total administrative and operating expenses — 153,729 82,067 (38,126) 197,670 Total expenses 78,673 173,228 351,195 Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method (30,223) 5,538 136,187 — 111,502 Income tax provision (benefit) (11,279) 2,166 44,035 — 34,922 Equity in income of consolidated subsidiaries accounted for under the equity method 95,524 92,152 — (187,676) — NET INCOME $ 76,580 $ 95,524 $ 92,152 $ $ 76,580 COMPREHENSIVE INCOME $ 98,844 $ $ 111,024 $ $ 98,844 Condensed Statements of Comprehensive Income for the Three Months Ended June 30, 2016 CNH Industrial Guarantor All Other Capital LLC Entities Subsidiaries Eliminations Consolidated REVENUES Interest income on retail notes and finance leases $ — $ 4,014 $ 48,715 $ — $ 52,729 Interest income on wholesale notes — 30 18,438 — 18,468 Interest and other income from affiliates 24,203 57,907 83,967 (63,400) 102,677 Rental income on operating leases — 48,443 11,734 — 60,177 Other income — 26,729 706 (20,847) 6,588 Total revenues 24,203 137,123 163,560 (84,247) 240,639 EXPENSES Interest expense: Interest expense to third parties 43,562 1,398 31,618 — 76,578 Interest expense to affiliates — 56,442 9,439 (63,400) 2,481 Total interest expense 43,562 57,840 41,057 (63,400) 79,059 Administrative and operating expenses: Fees charged by affiliates — 10,657 21,309 (20,847) 11,119 Provision for credit losses — 3,845 3,415 — 7,260 Depreciation of equipment on operating leases — 49,870 10,230 — 60,100 Other expenses — 9,783 2,746 — 12,529 Total administrative and operating expenses — 74,155 37,700 (20,847) 91,008 Total expenses 43,562 131,995 78,757 (84,247) 170,067 Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method (19,359) 5,128 84,803 — 70,572 Income tax provision (benefit) (6,976) 3,650 27,469 — 24,143 Equity in income of consolidated subsidiaries accounted for under the equity method 58,812 57,334 — (116,146) — NET INCOME $ 46,429 $ 58,812 $ 57,334 $ (116,146) $ 46,429 COMPREHENSIVE INCOME $ 46,782 $ 59,165 $ 57,640 $ (116,805) $ 46,782 Condensed Statements of Comprehensive Income for the Six Months Ended June 30, 2016 CNH Industrial Guarantor All Other Capital LLC Entities Subsidiaries Eliminations Consolidated REVENUES Interest income on retail notes and finance leases $ — $ 7,558 $ 99,174 $ — $ 106,732 Interest income on wholesale notes — 24 33,460 — 33,484 Interest and other income from affiliates 44,844 114,135 166,336 (122,612) 202,703 Rental income on operating leases — 97,260 22,199 — 119,459 Other income — 52,863 1,322 (42,006) 12,179 Total revenues 44,844 271,840 322,491 (164,618) 474,557 EXPENSES Interest expense: Interest expense to third parties 84,023 (1,097) 64,736 — 147,662 Interest expense to affiliates — 109,089 16,891 (122,612) 3,368 Total interest expense 84,023 107,992 81,627 (122,612) 151,030 Administrative and operating expenses: Fees charged by affiliates — 21,921 42,921 (42,006) 22,836 Provision for credit losses — 3,696 9,961 — 13,657 Depreciation of equipment on operating leases — 97,952 19,432 — 117,384 Other expenses — 10,580 4,933 — 15,513 Total administrative and operating expenses — 134,149 77,247 (42,006) 169,390 Total expenses 84,023 242,141 158,874 (164,618) 320,420 Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method (39,179) 29,699 163,617 — 154,137 Income tax provision (benefit) (14,621) 11,256 53,852 — 50,487 Equity in income of consolidated subsidiaries accounted for under the equity method 128,208 109,765 — (237,973) — NET INCOME $ 103,650 $ 128,208 $ 109,765 $ (237,973) $ 103,650 COMPREHENSIVE INCOME $ 146,385 $ 170,943 $ 146,586 $ (317,529) $ 146,385
Schedule of condensed balance sheets	Condensed Balance Sheets as of June 30, 2017 CNH Industrial Guarantor All Other Capital LLC Entities Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ — $ 67,823 $ 90,930 $ — $ 158,753 Restricted cash — 100 540,748 — 540,848 Receivables, less allowance for credit losses — 1,310,545 9,196,659 — 10,507,204 Affiliated accounts and notes receivable 2,981,452 2,204,091 1,909,147 (7,044,336) 50,354 Equipment on operating leases, net — 1,505,934 355,244 — 1,861,178 Equipment held for sale — 172,631 16,375 — 189,006 Investments in consolidated subsidiaries accounted for under the equity method 2,404,253 2,443,692 — (4,847,945) — Goodwill and intangible assets, net — 88,020 28,137 — 116,157 Other assets 1,748 (9,992) 42,505 (3,773) 30,488 TOTAL $ 5,387,453 $ 7,782,844 $ 12,179,745 $ (11,896,054) $ 13,453,988 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities: Short-term debt, including current maturities of long-term debt $ 700,610 $ 47,333 $ 3,675,064 $ — $ 4,423,007 Accounts payable and other accrued liabilities 293,791 2,661,704 1,241,040 (3,443,357) 753,178 Affiliated debt — 2,638,383 970,674 (3,604,752) 4,305 Long-term debt 3,067,603 31,171 3,849,275 — 6,948,049 Total liabilities 4,062,004 5,378,591 9,736,053 (7,048,109) 12,128,539 Stockholder’s equity 1,325,449 2,404,253 2,443,692 (4,847,945) 1,325,449 TOTAL $ 5,387,453 $ 7,782,844 $ 12,179,745 $ (11,896,054) $ 13,453,988 Condensed Balance Sheets as of December 31, 2016 CNH Industrial Guarantor All Other Capital LLC Entities Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ — $ 151,553 $ 12,694 $ — $ 164,247 Restricted cash — 100 712,745 — 712,845 Receivables, less allowance for credit losses — 1,453,303 9,428,767 — 10,882,070 Affiliated accounts and notes receivable 3,138,443 2,293,055 1,878,093 (7,225,748) 83,843 Equipment on operating leases, net — 1,526,746 331,697 — 1,858,443 Equipment held for sale — 182,636 17,347 — 199,983 Investments in consolidated subsidiaries accounted for under the equity method 2,286,578 2,332,668 — (4,619,246) — Goodwill and intangible assets, net — 88,938 27,143 — 116,081 Other assets 3,870 (14,344) 40,517 (4,296) 25,747 TOTAL $ 5,428,891 $ 8,014,655 $ 12,449,003 $ (11,849,290) $ 14,043,259 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities: Short-term debt, including current maturities of long-term debt $ 500,000 $ 45,289 $ 3,717,340 $ — $ 4,262,629 Accounts payable and other accrued liabilities 295,365 2,688,323 1,132,462 (3,309,407) 806,743 Affiliated debt — 2,936,479 1,117,009 (3,920,637) 132,851 Long-term debt 3,266,808 57,986 4,149,524 — 7,474,318 Total liabilities 4,062,173 5,728,077 10,116,335 (7,230,044) 12,676,541 Stockholder’s equity 1,366,718 2,286,578 2,332,668 (4,619,246) 1,366,718 TOTAL $ 5,428,891 $ 8,014,655 $ 12,449,003 $ (11,849,290) $ 14,043,259
Schedule of condensed statements of cash flows	Condensed Statements of Cash Flows for the Six Months Ended June 30, 2017 CNH Industrial Guarantor All Other Capital LLC Entities Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash from (used in) operating activities $ 138,595 $ 177,932 $ 198,702 $ (315,362) $ 199,867 CASH FLOWS FROM INVESTING ACTIVITIES: Cost of receivables acquired — (3,776,561) (4,239,265) 3,207,693 (4,808,133) Collections of receivables — 3,913,846 4,526,691 (3,208,216) 5,232,321 Change in restricted cash — — 175,854 — 175,854 Purchase of equipment on operating leases, net — (75,969) (32,086) — (108,055) Change in property and equipment and software, net — (113) — — (113) Net cash from (used in) investing activities — 61,203 431,194 (523) 491,874 CASH FLOWS FROM FINANCING ACTIVITIES: Intercompany activity — (298,095) (146,336) 315,885 (128,546) Net change in indebtedness 1,405 (24,770) (405,324) — (428,689) Dividends paid to CNH Industrial America LLC (140,000) — — — (140,000) Net cash from (used in) financing activities (138,595) (322,865) (551,660) 315,885 (697,235) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS — (83,730) 78,236 — (5,494) CASH AND CASH EQUIVALENTS: Beginning of period — 151,553 12,694 — 164,247 End of period $ — $ 67,823 $ 90,930 $ — $ 158,753 Condensed Statements of Cash Flows for the Six Months Ended June 30, 2016 CNH Industrial Guarantor All Other Capital LLC Entities Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash from (used in) operating activities $ (349,422) $ (263,783) $ 584,004 $ 380,588 $ 351,387 CASH FLOWS FROM INVESTING ACTIVITIES: Cost of receivables acquired — (3,939,125) (4,324,298) 3,359,135 (4,904,288) Collections of receivables — 3,970,019 4,612,278 (3,359,011) 5,223,286 Change in restricted cash — — 6,417 — 6,417 Purchase of equipment on operating leases, net — (107,175) (44,964) — (152,139) Change in property and equipment and software, net — (180) (2) — (182) Net cash from (used in) investing activities — (76,461) 249,431 124 173,094 CASH FLOWS FROM FINANCING ACTIVITIES: Intercompany activity — 315,294 42,777 (380,712) (22,641) Net change in indebtedness 499,422 (11,121) (973,373) — (485,072) Dividends paid to CNH Industrial America LLC (150,000) — — — (150,000) Net cash from (used in) financing activities 349,422 304,173 (930,596) (380,712) (657,713) DECREASE IN CASH AND CASH EQUIVALENTS — (36,071) (97,161) — (133,232) CASH AND CASH EQUIVALENTS: Beginning of period — 181,740 120,408 — 302,148 End of period $ — $ 145,669 $ 23,247 $ — $ 168,916

ACCUMULATED OTHER COMPREHENSI26

ACCUMULATED OTHER COMPREHENSIVE INCOME - Change in Components of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Changes in accumulated other comprehensive income by component
Beginning balance, gross					$ (142,017)	$ (146,566)	$ (122,148)	$ (164,609)
Tax asset (liability)					2,398	2,430	2,992	3,071
Beginning balance, net of tax	$ (139,619)	$ (119,156)	$ (144,136)	$ (161,538)
Other comprehensive income (loss) before reclassifications	17,668	318	21,820	42,363
Amounts reclassified from accumulated other comprehensive income (loss)	405	417	803	833
Tax effects	(326)	(382)	(359)	(461)
Total other comprehensive income	17,747	353	22,264	42,735
Ending balance	(121,872)	(118,803)	(121,872)	(118,803)
Currency Translation Adjustment
Changes in accumulated other comprehensive income by component
Beginning balance, gross					(135,091)	(139,585)	(113,092)	(155,341)
Beginning balance, net of tax	(135,091)	(113,092)	(139,585)	(155,341)
Other comprehensive income (loss) before reclassifications	16,912	(626)	21,406	41,623
Total other comprehensive income	16,912	(626)	21,406	41,623
Ending balance	(118,179)	(113,718)	(118,179)	(113,718)
Pension Liability
Changes in accumulated other comprehensive income by component
Beginning balance, gross					(5,598)	(5,768)	(5,917)	(6,084)
Tax asset (liability)					2,044	2,107	2,159	2,226
Beginning balance, net of tax	(3,554)	(3,758)	(3,661)	(3,858)
Other comprehensive income (loss) before reclassifications	(67)	(56)	(128)	(141)
Amounts reclassified from accumulated other comprehensive income (loss)	232	254	463	506
Tax effects	(62)	(74)	(125)	(141)
Total other comprehensive income	103	124	210	224
Ending balance	(3,451)	(3,634)	(3,451)	(3,634)
Unrealized losses on derivatives
Changes in accumulated other comprehensive income by component
Beginning balance, gross					(1,328)	(1,213)	(3,139)	(3,184)
Tax asset (liability)					$ 354	$ 323	$ 833	$ 845
Beginning balance, net of tax	(974)	(2,306)	(890)	(2,339)
Other comprehensive income (loss) before reclassifications	823	1,000	542	881
Amounts reclassified from accumulated other comprehensive income (loss)	173	163	340	327
Tax effects	(264)	(308)	(234)	(320)
Total other comprehensive income	732	855	648	888
Ending balance	$ (242)	$ (1,451)	$ (242)	$ (1,451)

ACCUMULATED OTHER COMPREHENSI27

ACCUMULATED OTHER COMPREHENSIVE INCOME - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Reclassifications out of accumulated other comprehensive income and the location on the consolidated statements of income
Interest expense to third parties	$ (76,134)	$ (76,578)	$ (146,389)	$ (147,662)
Income before taxes	55,072	70,572	111,502	154,137
Income tax benefit	(16,885)	(24,143)	(34,922)	(50,487)
Net income	38,187	46,429	76,580	103,650
Pension Liability | Amounts Reclassified from AOCI
Reclassifications out of accumulated other comprehensive income and the location on the consolidated statements of income
Various line items individually insignificant	(232)	(254)	(463)	(506)
Income before taxes	(232)	(254)	(463)	(506)
Income tax benefit	87	94	173	195
Net income	(145)	(160)	(290)	(311)
Unrealized losses on derivatives | Amounts Reclassified from AOCI
Reclassifications out of accumulated other comprehensive income and the location on the consolidated statements of income
Interest expense to third parties	(173)	(163)	(340)	(327)
Income before taxes	(173)	(163)	(340)	(327)
Income tax benefit	45	43	90	87
Net income	$ (128)	$ (120)	$ (250)	$ (240)

RECEIVABLES - Summary of Receiv

RECEIVABLES - Summary of Receivables (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)item	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Receivables
Gross receivables	$ 10,592,378		$ 10,966,965	$ 11,520,376
Less: Allowance for credit losses	(85,174)	$ (85,176)	(84,895)	$ (87,636)	$ (93,236)	$ (94,724)
Total receivables, net	10,507,204		10,882,070
Restricted Receivables	9,200,232		9,392,526
Receivables directly or indirectly sold or transferred and available to pay the entity's creditors prior to all obligations of the SPE having been fulfilled	$ 0
Number of components of allowance for credit losses | item	2
Number of portfolio segments in which allowance for credit losses is segregated | item	2
Retail
Receivables
Gross receivables	$ 671,886		854,777
Restricted Receivables	6,361,591		6,500,949
Wholesale
Receivables
Gross receivables	672,140		677,371
Restricted Receivables	2,838,641		2,891,577
Finance lease receivables
Receivables
Gross receivables	$ 48,120		$ 42,291

RECEIVABLES - Allowance for Cre

RECEIVABLES - Allowance for Credit Losses Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Allowance for credit losses:
Beginning balance	$ 85,176	$ 93,236	$ 84,895	$ 94,724	$ 94,724
Charge-offs	(11,412)	(13,513)	(24,291)	(22,898)	(42,950)
Recoveries	963	1,081	2,004	2,035	3,750
Provision (benefit)	10,617	7,260	23,098	13,657	30,846
Foreign currency translation and other	(170)	(428)	(532)	118	(1,475)
Ending balance	85,174	87,636	85,174	87,636	84,895
Ending balance: individually evaluated for impairment	23,878	21,540	23,878	21,540	22,363
Ending balance: collectively evaluated for impairment	61,296	66,096	61,296	66,096	62,532
Receivables:
Ending balance	10,592,378	11,520,376	10,592,378	11,520,376	10,966,965
Ending balance: individually evaluated for impairment	76,385	122,525	76,385	122,525	75,042
Ending balance: collectively evaluated for impairment	10,515,993	11,397,851	10,515,993	11,397,851	10,891,923
Retail
Allowance for credit losses:
Beginning balance	79,859	86,667	78,047	88,405	88,405
Charge-offs	(10,184)	(13,513)	(22,275)	(22,897)	(42,949)
Recoveries	962	568	1,996	1,518	3,228
Provision (benefit)	9,986	7,424	23,221	13,641	30,915
Foreign currency translation and other	(183)	(460)	(549)	19	(1,552)
Ending balance	80,440	80,686	80,440	80,686	78,047
Ending balance: individually evaluated for impairment	21,708	17,812	21,708	17,812	18,113
Ending balance: collectively evaluated for impairment	58,732	62,874	58,732	62,874	59,934
Receivables:
Ending balance	7,081,597	7,739,799	7,081,597	7,739,799	7,398,017
Ending balance: individually evaluated for impairment	42,225	61,724	42,225	61,724	31,383
Ending balance: collectively evaluated for impairment	7,039,372	7,678,075	7,039,372	7,678,075	7,366,634
Wholesale
Allowance for credit losses:
Beginning balance	5,317	6,569	6,848	6,319	6,319
Charge-offs	(1,228)		(2,016)	(1)	(1)
Recoveries	1	513	8	517	522
Provision (benefit)	631	(164)	(123)	16	(69)
Foreign currency translation and other	13	32	17	99	77
Ending balance	4,734	6,950	4,734	6,950	6,848
Ending balance: individually evaluated for impairment	2,170	3,728	2,170	3,728	4,250
Ending balance: collectively evaluated for impairment	2,564	3,222	2,564	3,222	2,598
Receivables:
Ending balance	3,510,781	3,780,577	3,510,781	3,780,577	3,568,948
Ending balance: individually evaluated for impairment	34,160	60,801	34,160	60,801	43,659
Ending balance: collectively evaluated for impairment	$ 3,476,621	$ 3,719,776	$ 3,476,621	$ 3,719,776	$ 3,525,289

RECEIVABLES - Breakdown of Rece

RECEIVABLES - Breakdown of Receivables by Credit Quality Indicators (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016
Financing receivable, recorded investment
Gross receivables	$ 10,592,378	$ 10,966,965	$ 11,520,376
Retail
Financing receivable, recorded investment
Gross receivables	7,081,597	7,398,017	7,739,799
Retail | Titanium
Financing receivable, recorded investment
Gross receivables	3,929,883	4,117,736
Retail | Platinum
Financing receivable, recorded investment
Gross receivables	1,983,892	2,045,684
Retail | Gold
Financing receivable, recorded investment
Gross receivables	990,541	1,042,918
Retail | Silver
Financing receivable, recorded investment
Gross receivables	144,467	157,170
Retail | Bronze
Financing receivable, recorded investment
Gross receivables	32,814	34,509
Wholesale
Financing receivable, recorded investment
Gross receivables	3,510,781	3,568,948	$ 3,780,577
Wholesale | Grade A
Financing receivable, recorded investment
Gross receivables	1,246,559	1,330,159
Wholesale | Grade B
Financing receivable, recorded investment
Gross receivables	1,484,736	1,603,893
Wholesale | Grade C
Financing receivable, recorded investment
Gross receivables	441,296	322,652
Wholesale | Grade D
Financing receivable, recorded investment
Gross receivables	$ 338,190	$ 312,244

RECEIVABLES - Aging of Receivab

RECEIVABLES - Aging of Receivables (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016
Financing receivable, recorded investment
Total Receivables	$ 10,592,378	$ 10,966,965	$ 11,520,376
Retail
Financing receivable, recorded investment
Total Past Due	78,441	77,290
Current	7,003,156	7,320,727
Total Receivables	7,081,597	7,398,017	7,739,799
Recorded Investment > 90 Days and Accruing	5,146	8,113
Retail | 31-60 Days Past Due
Financing receivable, recorded investment
Total Past Due	29,853	28,244
Retail | 61-90 Days Past Due
Financing receivable, recorded investment
Total Past Due	10,061	7,508
Retail | Greater than 90 Days
Financing receivable, recorded investment
Total Past Due	38,527	41,538
Retail | United States
Financing receivable, recorded investment
Total Past Due	70,694	72,659
Current	5,804,519	6,146,129
Total Receivables	5,875,213	6,218,788
Recorded Investment > 90 Days and Accruing	4,268	7,377
Retail | United States | 31-60 Days Past Due
Financing receivable, recorded investment
Total Past Due	26,454	25,416
Retail | United States | 61-90 Days Past Due
Financing receivable, recorded investment
Total Past Due	8,196	6,743
Retail | United States | Greater than 90 Days
Financing receivable, recorded investment
Total Past Due	36,044	40,500
Retail | Canada
Financing receivable, recorded investment
Total Past Due	7,747	4,631
Current	1,198,637	1,174,598
Total Receivables	1,206,384	1,179,229
Recorded Investment > 90 Days and Accruing	878	736
Retail | Canada | 31-60 Days Past Due
Financing receivable, recorded investment
Total Past Due	3,399	2,828
Retail | Canada | 61-90 Days Past Due
Financing receivable, recorded investment
Total Past Due	1,865	765
Retail | Canada | Greater than 90 Days
Financing receivable, recorded investment
Total Past Due	2,483	1,038
Wholesale
Financing receivable, recorded investment
Total Past Due	1,105	1,360
Current	3,509,676	3,567,588
Total Receivables	3,510,781	3,568,948	$ 3,780,577
Recorded Investment > 90 Days and Accruing	23
Wholesale | 31-60 Days Past Due
Financing receivable, recorded investment
Total Past Due	562	823
Wholesale | 61-90 Days Past Due
Financing receivable, recorded investment
Total Past Due	251	89
Wholesale | Greater than 90 Days
Financing receivable, recorded investment
Total Past Due	292	448
Wholesale | United States
Financing receivable, recorded investment
Total Past Due	1,097	1,355
Current	2,778,938	2,862,222
Total Receivables	2,780,035	2,863,577
Recorded Investment > 90 Days and Accruing	23
Wholesale | United States | 31-60 Days Past Due
Financing receivable, recorded investment
Total Past Due	562	823
Wholesale | United States | 61-90 Days Past Due
Financing receivable, recorded investment
Total Past Due	251	88
Wholesale | United States | Greater than 90 Days
Financing receivable, recorded investment
Total Past Due	284	444
Wholesale | Canada
Financing receivable, recorded investment
Total Past Due	8	5
Current	730,738	705,366
Total Receivables	730,746	705,371
Wholesale | Canada | 61-90 Days Past Due
Financing receivable, recorded investment
Total Past Due		1
Wholesale | Canada | Greater than 90 Days
Financing receivable, recorded investment
Total Past Due	$ 8	$ 4

RECEIVABLES - Impaired Receivab

RECEIVABLES - Impaired Receivables (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Dec. 31, 2016	Jun. 30, 2017	Dec. 31, 2016
Average Recorded Investment
Delinquency period of accounts considered for recognition of income		120 days	120 days
Minimum account delinquency period for an account to be classified as past due		30 days	30 days
United States
Average Recorded Investment
Receivables on nonaccrual status	$ 93,367	$ 71,691	$ 93,367
Canada
Average Recorded Investment
Receivables on nonaccrual status	325	1,623	325
Retail | United States
Average Recorded Investment
Receivables on nonaccrual status	49,998	37,798	49,998
Retail | Canada
Average Recorded Investment
Receivables on nonaccrual status	325	1,623	325
Wholesale | United States
Average Recorded Investment
Receivables on nonaccrual status	$ 43,369	$ 33,893	43,369
Individually evaluated for impairment
Unpaid Principal Balance
Period considered for average recorded investment	13 months	7 months
Individually evaluated for impairment | Retail
Recorded Investment
With an allowance recorded	$ 31,383		31,383
Total		$ 42,225
Unpaid Principal Balance
With an allowance recorded	30,054		30,054
Total		40,285
Related Allowance	18,113	21,708	18,113
Average Recorded Investment
With an allowance recorded		45,256	31,296
Individually evaluated for impairment | Retail | United States
Recorded Investment
With an allowance recorded	31,360	41,883	31,360
Unpaid Principal Balance
With an allowance recorded	30,031	39,955	30,031
Related Allowance	18,102	21,499	18,102
Average Recorded Investment
With an allowance recorded		44,925	31,268
Individually evaluated for impairment | Retail | Canada
Recorded Investment
With an allowance recorded	23	342	23
Unpaid Principal Balance
With an allowance recorded	23	330	23
Related Allowance	11	209	11
Average Recorded Investment
With an allowance recorded		331	28
Individually evaluated for impairment | Wholesale
Recorded Investment
With an allowance recorded	43,659		43,659
Total		34,160
Unpaid Principal Balance
With an allowance recorded	43,369		43,369
Total		33,893
Related Allowance	4,250	2,170	4,250
Average Recorded Investment
With an allowance recorded		38,411	46,482
Individually evaluated for impairment | Wholesale | United States
Recorded Investment
With an allowance recorded	43,659	34,160	43,659
Unpaid Principal Balance
With an allowance recorded	43,369	33,893	43,369
Related Allowance	$ 4,250	2,170	4,250
Average Recorded Investment
With an allowance recorded		$ 38,411	$ 46,482

RECEIVABLES - Troubled Debt Res

RECEIVABLES - Troubled Debt Restructuring of Receivables (Details) - Retail $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)item	Jun. 30, 2016USD ($)item
Troubled Debt Restructurings
Number of contracts classified as TDRs | item	243	256
Pre-modification value	$ 5,512	$ 3,897
Post-modification value	$ 4,816	$ 3,212
Number of cases in which the court has not yet determined the concession | item	455	492
Pre-modification value for cases in which the court has not yet determined the concession	$ 26,304	$ 33,913

CREDIT FACILITIES AND DEBT (Det

CREDIT FACILITIES AND DEBT (Details) CAD in Thousands, $ in Thousands	Jun. 26, 2017USD ($)	Apr. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Jun. 27, 2017CAD	Jun. 27, 2017USD ($)	May 18, 2017USD ($)	Dec. 31, 2016USD ($)
Debt
Long-term debt			$ 6,948,049				$ 7,474,318
Revolving credit facilities
Debt
Termination of debt					$ 100,000
Maximum borrowing capacity	$ 100,000			CAD 200,000	$ 151,602
Long-term debt			151,602
Uncommitted credit line due June 2018
Debt
Maximum borrowing capacity	100,000
Short-Term Outstanding			$ 100,000
Wholesale VFN | United States
Debt
Repayment of debt		$ 100,000
Maximum borrowing capacity		$ 300,000				$ 500,000
Term of credit agreement		3 months
Term loan
Debt
Repayment of debt	$ 100,000

INCOME TAXES (Details) 10Q

INCOME TAXES (Details) 10Q	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Reconciliation of statutory and effective income tax rate
Effective tax rate (as a percent)	30.70%	34.20%	31.30%	32.80%
Tax provision at statutory rate (as a percent)			35.00%

FINANCIAL INSTRUMENTS - Generia

FINANCIAL INSTRUMENTS - Generial Information (Details) $ in Thousands	Jun. 30, 2017USD ($)
Interest Rate Derivatives
After-tax losses deferred in accumulated other comprehensive income that will be recognized in interest expense over the next 12 months	$ 518

FINANCIAL INSTRUMENTS - Fair Ma

FINANCIAL INSTRUMENTS - Fair Market Value of Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Fair market value of derivatives
Derivative assets designated as hedging instruments, classified in other assets	$ 2,489		$ 2,489		$ 1,631
Derivative liabilities designated as hedging instruments, classified in accounts payable and other accrued liabilities	4,908		4,908		5,646
Interest rate derivatives, derivative assets not designated as hedging instruments, classified in other assets	3,632		3,632		3,977
Foreign exchange contracts, derivatives not designated as hedging instruments, classified in other assets					58
Derivative assets not designated as hedging instruments, classified in other assets	3,632		3,632		4,035
Interest rate derivatives, derivative not designated as hedging instruments, classified in accounts payable and other accrued liabilities	3,632		3,632		3,977
Foreign exchange contracts, derivatives not designated as hedging instruments, classified in accounts payable and other accrued liabilities	660		660		1,183
Derivative liabilities not designated as hedging instruments, classified in accounts payable and other accrued liabilities	4,292		4,292		5,160
Cash Flow Hedges, Recognized in accumulated other comprehensive income (loss) (effective portion), Interest rate derivatives	823	$ 1,000	542	$ 881
Cash Flow Hedges, Reclassified from accumulated other comprehensive Income (loss) (effective portion), Interest rate derivatives - Interest expense to third parties	(173)	(163)	(340)	(327)
Foreign exchange contracts, other expenses, not designated as hedges	660	$ 1,721	1,014	1,877
Interest Rate Derivatives
Fair market value of derivatives
Total notional amount of interest rate derivatives	$ 3,426,412		3,426,412		$ 2,954,424
Seven-month average notional amounts of interest rate derivatives			$ 3,188,873	$ 3,168,190

FINANCIAL INSTRUMENTS - Items M

FINANCIAL INSTRUMENTS - Items Measured at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Assets
Foreign exchange contracts		$ 58
Liabilities
Foreign exchange contracts	$ 660	1,183
Assets transferred between Level 1, Level 2 and Level 3	0	0
Liabilities transferred between Level 1, Level 2 and Level 3	0	0
Recurring | Level 2
Assets
Interest rate derivatives	6,121	5,608
Foreign exchange contracts		58
Total assets	6,121	5,666
Liabilities
Interest rate derivatives	8,540	9,623
Foreign exchange contracts	660	1,183
Total liabilities	$ 9,200	$ 10,806

FINANCIAL INSTRUMENTS - Carryin

FINANCIAL INSTRUMENTS - Carrying Amount and Estimated Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financial Instruments Not Carried at Fair Value
Receivables	$ 10,507,204	$ 10,882,070
Long-term debt	6,948,049	7,474,318
Carrying Amount
Financial Instruments Not Carried at Fair Value
Receivables	10,507,204	10,882,070
Long-term debt	6,948,049	7,474,318
Estimated Fair Value
Financial Instruments Not Carried at Fair Value
Receivables	10,456,958	10,885,595
Long-term debt	$ 6,945,359	$ 7,364,581

SEGMENT AND GEOGRAPHICAL INFO40

SEGMENT AND GEOGRAPHICAL INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Segment And Geographical Information
Revenues	$ 229,863	$ 240,639	$ 462,697	$ 474,557
Interest expense	78,797	79,059	153,525	151,030
Net income	38,187	46,429	76,580	103,650
Depreciation and amortization	67,660	60,595	136,348	118,364
Expenditures for equipment on operating leases	182,088	173,444	342,871	322,704
Provision (benefit) for credit losses	10,617	7,260	23,098	13,657	$ 30,846
Additional disclosures
Segment assets	13,453,988		13,453,988		14,043,259
Managed receivables	10,592,378		10,592,378		10,966,965
Eliminations.
Segment And Geographical Information
Revenues	(957)	(1,031)	(1,999)	(2,033)
Interest expense	(957)	(1,031)	(1,999)	(2,033)
Additional disclosures
Segment assets	(214,007)		(214,007)		(374,161)
United States
Segment And Geographical Information
Net income	24,102	28,958	48,332	69,851
Depreciation and amortization	56,780	50,360	114,496	98,924
Expenditures for equipment on operating leases	150,994	124,820	286,999	248,247
Provision (benefit) for credit losses	10,993	8,823	22,917	16,806
Additional disclosures
Managed receivables	8,655,248		8,655,248		9,082,365
United States | Operating segment
Segment And Geographical Information
Revenues	188,680	196,830	378,668	392,103
Interest expense	68,703	69,299	133,136	133,403
Additional disclosures
Segment assets	11,171,744		11,171,744		12,016,606
Canada
Segment And Geographical Information
Net income	14,085	17,471	28,248	33,799
Depreciation and amortization	10,880	10,235	21,852	19,440
Expenditures for equipment on operating leases	31,094	48,624	55,872	74,457
Provision (benefit) for credit losses	(376)	(1,563)	181	(3,149)
Additional disclosures
Managed receivables	1,937,130		1,937,130		1,884,600
Canada | Operating segment
Segment And Geographical Information
Revenues	42,140	44,840	86,028	84,487
Interest expense	11,051	$ 10,791	22,388	$ 19,660
Additional disclosures
Segment assets	$ 2,496,251		$ 2,496,251		$ 2,400,814

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
RELATED-PARTY TRANSACTIONS
Total interest and other income from affiliates	$ 97,800	$ 102,677	$ 194,263	$ 202,703
Affiliated receivables	50,354		50,354		$ 83,843
Affiliated debt	4,305		4,305		132,851
Other information
Accounts payable and other accrued liabilities payable to related parties	24,138		24,138		3,792
Interest expense to related affiliates	2,663	2,481	7,136	3,368
CNH Industrial North America
RELATED-PARTY TRANSACTIONS
Retail	38,286	44,723	77,160	88,732
Wholesale	42,644	39,909	82,930	78,384
Operating lease	16,846	17,789	34,107	34,954
Lending funds	24	$ 256	66	$ 633
CNH Industrial America
RELATED-PARTY TRANSACTIONS
Affiliated receivables	15,967		15,967		49,526
Affiliated debt	4,305		4,305		132,851
CNH Industrial Canada Ltd.
RELATED-PARTY TRANSACTIONS
Affiliated receivables	22,085		22,085		21,398
Other affiliates
RELATED-PARTY TRANSACTIONS
Affiliated receivables	$ 12,302		$ 12,302		$ 12,919

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Jun. 30, 2017USD ($)
COMMITMENTS AND CONTINGENCIES
Total credit limit	$ 6,351,234
Utilized	$ 3,452,183

SUPPLEMENTAL CONDENSED CONSOL43

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Statements of Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
REVENUES
Interest income on retail notes and finance leases	$ 48,378	$ 52,729	$ 99,191	$ 106,732
Interest income on wholesale notes	16,039	18,468	32,055	33,484
Interest and other income from affiliates	97,800	102,677	194,263	202,703
Rental income on operating leases	62,531	60,177	125,725	119,459
Other income	5,115	6,588	11,463	12,179
Total revenues	229,863	240,639	462,697	474,557
Interest expense:
Interest expense to third parties	76,134	76,578	146,389	147,662
Interest expense to affiliates	2,663	2,481	7,136	3,368
Total interest expense	78,797	79,059	153,525	151,030
Administrative and operating expenses:
Fees charged by affiliates	10,942	11,119	22,641	22,836
Provision (benefit) for credit losses	10,617	7,260	23,098	13,657	$ 30,846
Depreciation of equipment on operating leases	67,133	60,100	135,302	117,384
Other expenses	7,302	12,529	16,629	15,513
Total administrative and operating expenses	95,994	91,008	197,670	169,390
Total expenses	174,791	170,067	351,195	320,420
Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method	55,072	70,572	111,502	154,137
Income tax provision (benefit)	16,885	24,143	34,922	50,487
NET INCOME	38,187	46,429	76,580	103,650
COMPREHENSIVE INCOME	55,934	46,782	98,844	146,385
Eliminations
REVENUES
Interest and other income from affiliates	(69,251)	(63,400)	(133,804)	(122,612)
Other income	(18,920)	(20,847)	(38,126)	(42,006)
Total revenues	(88,171)	(84,247)	(171,930)	(164,618)
Interest expense:
Interest expense to affiliates	(69,251)	(63,400)	(133,804)	(122,612)
Total interest expense	(69,251)	(63,400)	(133,804)	(122,612)
Administrative and operating expenses:
Fees charged by affiliates	(18,920)	(20,847)	(38,126)	(42,006)
Total administrative and operating expenses	(18,920)	(20,847)	(38,126)	(42,006)
Total expenses	(88,171)	(84,247)	(171,930)	(164,618)
Equity in income of consolidated subsidiaries accounted for under the equity method	(90,993)	(116,146)	(187,676)	(237,973)
NET INCOME	(90,993)	(116,146)	(187,676)	(237,973)
COMPREHENSIVE INCOME	(123,916)	(116,805)	(228,812)	(317,529)
CNH Industrial Capital LLC
REVENUES
Interest and other income from affiliates	25,783	24,203	48,450	44,844
Total revenues	25,783	24,203	48,450	44,844
Interest expense:
Interest expense to third parties	38,945	43,562	78,673	84,023
Total interest expense	38,945	43,562	78,673	84,023
Administrative and operating expenses:
Total expenses	38,945	43,562	78,673	84,023
Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method	(13,162)	(19,359)	(30,223)	(39,179)
Income tax provision (benefit)	(4,912)	(6,976)	(11,279)	(14,621)
Equity in income of consolidated subsidiaries accounted for under the equity method	46,437	58,812	95,524	128,208
NET INCOME	38,187	46,429	76,580	103,650
COMPREHENSIVE INCOME	55,934	46,782	98,844	146,385
Guarantor Entities
REVENUES
Interest income on retail notes and finance leases	3,962	4,014	7,662	7,558
Interest income on wholesale notes	(278)	30	(574)	24
Interest and other income from affiliates	61,306	57,907	121,060	114,135
Rental income on operating leases	49,506	48,443	99,730	97,260
Other income	23,612	26,729	48,884	52,863
Total revenues	138,108	137,123	276,762	271,840
Interest expense:
Interest expense to third parties	1,861	1,398	(671)	(1,097)
Interest expense to affiliates	60,476	56,442	118,166	109,089
Total interest expense	62,337	57,840	117,495	107,992
Administrative and operating expenses:
Fees charged by affiliates	10,577	10,657	21,749	21,921
Provision (benefit) for credit losses	1,219	3,845	5,996	3,696
Depreciation of equipment on operating leases	56,256	49,870	113,456	97,952
Other expenses	4,652	9,783	12,528	10,580
Total administrative and operating expenses	72,704	74,155	153,729	134,149
Total expenses	135,041	131,995	271,224	242,141
Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method	3,067	5,128	5,538	29,699
Income tax provision (benefit)	1,186	3,650	2,166	11,256
Equity in income of consolidated subsidiaries accounted for under the equity method	44,556	57,334	92,152	109,765
NET INCOME	46,437	58,812	95,524	128,208
COMPREHENSIVE INCOME	$ 64,184	59,165	$ 117,788	170,943
CNH Industrial Capital America LLC
Condensed Statements of Comprehensive Income
Ownership percentage	100.00%		100.00%
New Holland Credit Company LLC
Condensed Statements of Comprehensive Income
Ownership percentage	100.00%		100.00%
All Other Subsidiaries
REVENUES
Interest income on retail notes and finance leases	$ 44,416	48,715	$ 91,529	99,174
Interest income on wholesale notes	16,317	18,438	32,629	33,460
Interest and other income from affiliates	79,962	83,967	158,557	166,336
Rental income on operating leases	13,025	11,734	25,995	22,199
Other income	423	706	705	1,322
Total revenues	154,143	163,560	309,415	322,491
Interest expense:
Interest expense to third parties	35,328	31,618	68,387	64,736
Interest expense to affiliates	11,438	9,439	22,774	16,891
Total interest expense	46,766	41,057	91,161	81,627
Administrative and operating expenses:
Fees charged by affiliates	19,285	21,309	39,018	42,921
Provision (benefit) for credit losses	9,398	3,415	17,102	9,961
Depreciation of equipment on operating leases	10,877	10,230	21,846	19,432
Other expenses	2,650	2,746	4,101	4,933
Total administrative and operating expenses	42,210	37,700	82,067	77,247
Total expenses	88,976	78,757	173,228	158,874
Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method	65,167	84,803	136,187	163,617
Income tax provision (benefit)	20,611	27,469	44,035	53,852
NET INCOME	44,556	57,334	92,152	109,765
COMPREHENSIVE INCOME	$ 59,732	$ 57,640	$ 111,024	$ 146,586

SUPPLEMENTAL CONDENSED CONSOL44

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Balance Sheets (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
ASSETS
Cash and cash equivalents	$ 158,753	$ 164,247	$ 168,916	$ 302,148
Restricted cash	540,848	712,845
Receivables, less allowance for credit losses	10,507,204	10,882,070
Affiliated accounts and notes receivable	50,354	83,843
Equipment on operating leases, net	1,861,178	1,858,443
Equipment held for sale	189,006	199,983
Goodwill and intangible assets, net	116,157	116,081
Other assets	30,488	25,747
TOTAL	13,453,988	14,043,259
Liabilities:
Short-term debt, including current maturities of long-term debt	4,423,007	4,262,629
Accounts payable and other accrued liabilities	753,178	806,743
Affiliated debt	4,305	132,851
Long-term debt	6,948,049	7,474,318
Total liabilities	12,128,539	12,676,541
Stockholder's equity	1,325,449	1,366,718	1,448,115	1,451,432
TOTAL	13,453,988	14,043,259
Eliminations
ASSETS
Affiliated accounts and notes receivable	(7,044,336)	(7,225,748)
Investments in consolidated subsidiaries accounted for under the equity method	(4,847,945)	(4,619,246)
Other assets	(3,773)	(4,296)
TOTAL	(11,896,054)	(11,849,290)
Liabilities:
Accounts payable and other accrued liabilities	(3,443,357)	(3,309,407)
Affiliated debt	(3,604,752)	(3,920,637)
Total liabilities	(7,048,109)	(7,230,044)
Stockholder's equity	(4,847,945)	(4,619,246)
TOTAL	(11,896,054)	(11,849,290)
CNH Industrial Capital LLC
ASSETS
Affiliated accounts and notes receivable	2,981,452	3,138,443
Investments in consolidated subsidiaries accounted for under the equity method	2,404,253	2,286,578
Other assets	1,748	3,870
TOTAL	5,387,453	5,428,891
Liabilities:
Short-term debt, including current maturities of long-term debt	700,610	500,000
Accounts payable and other accrued liabilities	293,791	295,365
Long-term debt	3,067,603	3,266,808
Total liabilities	4,062,004	4,062,173
Stockholder's equity	1,325,449	1,366,718
TOTAL	5,387,453	5,428,891
Guarantor Entities
ASSETS
Cash and cash equivalents	67,823	151,553	145,669	181,740
Restricted cash	100	100
Receivables, less allowance for credit losses	1,310,545	1,453,303
Affiliated accounts and notes receivable	2,204,091	2,293,055
Equipment on operating leases, net	1,505,934	1,526,746
Equipment held for sale	172,631	182,636
Investments in consolidated subsidiaries accounted for under the equity method	2,443,692	2,332,668
Goodwill and intangible assets, net	88,020	88,938
Other assets	(9,992)	(14,344)
TOTAL	7,782,844	8,014,655
Liabilities:
Short-term debt, including current maturities of long-term debt	47,333	45,289
Accounts payable and other accrued liabilities	2,661,704	2,688,323
Affiliated debt	2,638,383	2,936,479
Long-term debt	31,171	57,986
Total liabilities	5,378,591	5,728,077
Stockholder's equity	2,404,253	2,286,578
TOTAL	7,782,844	8,014,655
All Other Subsidiaries
ASSETS
Cash and cash equivalents	90,930	12,694	$ 23,247	$ 120,408
Restricted cash	540,748	712,745
Receivables, less allowance for credit losses	9,196,659	9,428,767
Affiliated accounts and notes receivable	1,909,147	1,878,093
Equipment on operating leases, net	355,244	331,697
Equipment held for sale	16,375	17,347
Goodwill and intangible assets, net	28,137	27,143
Other assets	42,505	40,517
TOTAL	12,179,745	12,449,003
Liabilities:
Short-term debt, including current maturities of long-term debt	3,675,064	3,717,340
Accounts payable and other accrued liabilities	1,241,040	1,132,462
Affiliated debt	970,674	1,117,009
Long-term debt	3,849,275	4,149,524
Total liabilities	9,736,053	10,116,335
Stockholder's equity	2,443,692	2,332,668
TOTAL	$ 12,179,745	$ 12,449,003

SUPPLEMENTAL CONDENSED CONSOL45

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Statements of Cash Flows (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash from (used in) operating activities	$ 199,867	$ 351,387
CASH FLOWS FROM INVESTING ACTIVITIES:
Cost of receivables acquired	(4,808,133)	(4,904,288)
Collections of receivables	5,232,321	5,223,286
Change in restricted cash	175,854	6,417
Purchase of equipment on operating leases, net	(108,055)	(152,139)
Change in property and equipment and software, net	(113)	(182)
Net cash from (used in) investing activities	491,874	173,094
CASH FLOWS FROM FINANCING ACTIVITIES:
Intercompany activity	(128,546)	(22,641)
Net change in indebtedness	(428,689)	(485,072)
Dividend paid to CNH Industrial America LLC	(140,000)	(150,000)
Net cash from (used in) financing activities	(697,235)	(657,713)
DECREASE IN CASH AND CASH EQUIVALENTS	(5,494)	(133,232)
CASH AND CASH EQUIVALENTS
Beginning of period	164,247	302,148
End of period	158,753	168,916
Eliminations
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash from (used in) operating activities	(315,362)	380,588
CASH FLOWS FROM INVESTING ACTIVITIES:
Cost of receivables acquired	3,207,693	3,359,135
Collections of receivables	(3,208,216)	(3,359,011)
Net cash from (used in) investing activities	(523)	124
CASH FLOWS FROM FINANCING ACTIVITIES:
Intercompany activity	315,885	(380,712)
Net cash from (used in) financing activities	315,885	(380,712)
CNH Industrial Capital LLC
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash from (used in) operating activities	138,595	(349,422)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in indebtedness	1,405	499,422
Dividend paid to CNH Industrial America LLC	(140,000)	(150,000)
Net cash from (used in) financing activities	(138,595)	349,422
Guarantor Entities
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash from (used in) operating activities	177,932	(263,783)
CASH FLOWS FROM INVESTING ACTIVITIES:
Cost of receivables acquired	(3,776,561)	(3,939,125)
Collections of receivables	3,913,846	3,970,019
Purchase of equipment on operating leases, net	(75,969)	(107,175)
Change in property and equipment and software, net	(113)	(180)
Net cash from (used in) investing activities	61,203	(76,461)
CASH FLOWS FROM FINANCING ACTIVITIES:
Intercompany activity	(298,095)	315,294
Net change in indebtedness	(24,770)	(11,121)
Net cash from (used in) financing activities	(322,865)	304,173
DECREASE IN CASH AND CASH EQUIVALENTS	(83,730)	(36,071)
CASH AND CASH EQUIVALENTS
Beginning of period	151,553	181,740
End of period	67,823	145,669
All Other Subsidiaries
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash from (used in) operating activities	198,702	584,004
CASH FLOWS FROM INVESTING ACTIVITIES:
Cost of receivables acquired	(4,239,265)	(4,324,298)
Collections of receivables	4,526,691	4,612,278
Change in restricted cash	175,854	6,417
Purchase of equipment on operating leases, net	(32,086)	(44,964)
Change in property and equipment and software, net		(2)
Net cash from (used in) investing activities	431,194	249,431
CASH FLOWS FROM FINANCING ACTIVITIES:
Intercompany activity	(146,336)	42,777
Net change in indebtedness	(405,324)	(973,373)
Net cash from (used in) financing activities	(551,660)	(930,596)
DECREASE IN CASH AND CASH EQUIVALENTS	78,236	(97,161)
CASH AND CASH EQUIVALENTS
Beginning of period	12,694	120,408
End of period	$ 90,930	$ 23,247

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) $ in Thousands	Jul. 25, 2017USD ($)
Subsequent event | Amortizing Retail Term ABS
Subsequent Events
Debt issued	$ 747,560