CNH Industrial Capital 10-Q2 Aug 232023 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2023 shares
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Entity File Number	000-55510
Entity Registrant Name	CNH INDUSTRIAL CAPITAL LLC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	39-1937630
Entity Address, Address Line One	5729 Washington Avenue
Entity Address, City or Town	Racine
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53406
City Area Code	262
Local Phone Number	636-6011
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	0
Entity Central Index Key	0001552493
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
REVENUES
Interest income on retail notes and finance leases	$ 69,626	$ 49,048	$ 137,850	$ 95,749
Rental income on operating leases	57,451	62,765	114,500	126,586
Revolving charge account income	9,996		18,326
Interest income on wholesale notes	13,336	6,197	23,931	11,688
Interest and other income from affiliates	95,569	65,232	179,673	127,539
Other income	1,136	6,034	1,352	15,123
Total revenues	247,114	189,276	475,632	376,685
Interest expense:
Interest expense to third parties	117,103	46,205	212,359	85,292
Interest expense to affiliates	4,985	1,366	13,433	1,699
Total interest expense	122,088	47,571	225,792	86,991
Administrative and operating expenses:
Fees charged by affiliates	13,112	12,157	26,987	23,573
Provision for credit losses	2,649	1,944	4,568	4,769
Depreciation of equipment on operating leases	44,675	49,801	89,727	103,358
Other expenses, net	4,706	(1,257)	8,239	(3,980)
Total administrative and operating expenses	65,142	62,645	129,521	127,720
Total expenses	187,230	110,216	355,313	214,711
INCOME BEFORE TAXES	59,884	79,060	120,319	161,974
Income tax provision	12,186	19,166	26,320	38,593
NET INCOME	$ 47,698	$ 59,894	$ 93,999	$ 123,381

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
NET INCOME	$ 47,698	$ 59,894	$ 93,999	$ 123,381
Other comprehensive income (loss):
Foreign currency translation adjustment	13,366	(19,746)	13,072	(10,592)
Pension liability adjustment	(186)	(168)	(367)	(354)
Change in derivative financial instruments	(387)	3,908	(2,780)	10,359
Total other comprehensive income (loss)	12,793	(16,006)	9,925	(587)
COMPREHENSIVE INCOME	$ 60,491	$ 43,888	$ 103,924	$ 122,794

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
ASSETS
Cash	$ 198,036	$ 262,244
Restricted cash and cash equivalents	397,272	446,335
Receivables, less allowance for credit losses of $115,120 and $125,012, respectively	11,918,352	10,741,820
Affiliated accounts and notes receivable	59,091	53,509
Equipment on operating leases, net	1,429,645	1,472,973
Equipment held for sale	13,400	11,685
Goodwill	109,088	108,567
Other intangible assets, net	17,449	18,388
Other assets	74,329	63,958
TOTAL	14,216,662	13,179,479
Liabilities:
Short-term debt (including current maturities of long-term debt)	4,697,990	4,096,426
Accounts payable and other accrued liabilities	929,442	1,046,688
Affiliated debt	262,405	341,531
Long-term debt	6,914,753	6,387,135
Total liabilities	12,804,590	11,871,780
Commitments and contingent liabilities (Note 11)
Stockholder's equity:
Member's capital
Paid-in capital	844,471	844,022
Accumulated other comprehensive loss	(127,908)	(137,833)
Retained earnings	695,509	601,510
Total stockholder's equity	1,412,072	1,307,699
TOTAL	$ 14,216,662	$ 13,179,479

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Allowance for credit losses	$ 115,120	$ 125,012
Restricted cash and cash equivalents	397,272	446,335
Receivables, less allowance for credit losses of $52,080 and $55,645, respectively	11,918,352	10,741,820
TOTAL	14,216,662	13,179,479
Short-term debt (including current maturities of long-term debt)	4,697,990	4,096,426
Long-term debt	6,914,753	6,387,135
Total liabilities	12,804,590	11,871,780
Consolidated variable interest entities ("VIEs")
Allowance for credit losses	52,080	55,645
Restricted cash and cash equivalents	397,272	446,335
Receivables, less allowance for credit losses of $52,080 and $55,645, respectively	7,013,037	6,927,032
TOTAL	7,410,309	7,373,367
Short-term debt (including current maturities of long-term debt)	3,236,036	3,120,860
Long-term debt	3,532,674	3,599,575
Total liabilities	$ 6,768,710	$ 6,720,435

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 47,698	$ 46,301	$ 59,894	$ 63,487	$ 93,999	$ 123,381
Adjustments to reconcile net income to net cash from (used in) operating activities:
Depreciation on property and equipment and equipment on operating leases					89,731	103,362
Amortization of intangibles					1,400	1,093
Provision for credit losses	2,649		1,944		4,568	4,769	$ 11,241
Deferred income tax expense (benefit)					(9,589)	(14,343)
Changes in components of working capital:
Change in affiliated accounts and notes receivables					(5,582)	165,366
Change in other assets and equipment held for sale					(14,881)	3,465
Change in accounts payable and other accrued liabilities					(109,013)	(320)
Net cash from (used in) operating activities					50,633	386,773
CASH FLOWS FROM INVESTING ACTIVITIES
Cost of receivables acquired					(8,440,653)	(6,610,535)
Collections of receivables					7,305,071	5,889,389
Purchase of equipment on operating leases	(124,530)		(124,296)		(227,809)	(246,514)
Proceeds from disposal of equipment on operating leases					190,007	267,151
Change in property, equipment and software					(462)	(1,707)
Net cash from (used in) investing activities					(1,173,846)	(702,216)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of affiliated debt					609,482	539,854
Payment of affiliated debt					(692,997)	(351,779)
Proceeds from issuance of long-term debt					2,368,436	1,777,487
Payment of long-term debt					(1,361,216)	(2,154,222)
Change in committed asset-backed facilities, net					115,685	133,379
Change in short-term borrowings, net					(29,448)	111,561
Dividends paid to CNH Industrial America LLC						(90,000)
Net cash from (used in) financing activities					1,009,942	(33,720)
DECREASE IN CASH AND RESTRICTED CASH AND CASH EQUIVALENTS					(113,271)	(349,163)
CASH AND RESTRICTED CASH AND CASH EQUIVALENTS
Beginning of period		$ 708,579		$ 1,028,659	708,579	1,028,659	1,028,659
End of period	$ 595,308		$ 679,496		595,308	679,496	$ 708,579
CASH PAID DURING THE PERIOD FOR INTEREST					222,746	90,707
CASH PAID DURING THE PERIOD FOR TAXES					$ 46,464	$ 63,774

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, 2021	$ 843,469	$ (111,457)	$ 517,388	$ 1,249,400
Increase (Decrease) in Stockholder's Equity
Net income			63,487	63,487
Dividends paid to CNH Industrial America LLC			(25,000)	(25,000)
Foreign currency translation adjustment		9,154		9,154
Stock compensation	101			101
Pension liability adjustment, net of tax		(186)		(186)
Change in derivative financial instruments, net of tax		6,451		6,451
BALANCE at Mar. 31, 2022	843,570	(96,038)	555,875	1,303,407
BALANCE at Dec. 31, 2021	843,469	(111,457)	517,388	1,249,400
Increase (Decrease) in Stockholder's Equity
Net income				123,381
Foreign currency translation adjustment				(10,592)
Pension liability adjustment, net of tax				(354)
Change in derivative financial instruments, net of tax				10,359
BALANCE at Jun. 30, 2022	843,704	(112,044)	550,769	1,282,429
BALANCE at Mar. 31, 2022	843,570	(96,038)	555,875	1,303,407
Increase (Decrease) in Stockholder's Equity
Net income			59,894	59,894
Dividends paid to CNH Industrial America LLC			(65,000)	(65,000)
Foreign currency translation adjustment		(19,746)		(19,746)
Stock compensation	134			134
Pension liability adjustment, net of tax		(168)		(168)
Change in derivative financial instruments, net of tax		3,908		3,908
BALANCE at Jun. 30, 2022	843,704	(112,044)	550,769	1,282,429
BALANCE at Dec. 31, 2022	844,022	(137,833)	601,510	1,307,699
Increase (Decrease) in Stockholder's Equity
Net income			46,301	46,301
Foreign currency translation adjustment		(294)		(294)
Stock compensation	196			196
Pension liability adjustment, net of tax		(181)		(181)
Change in derivative financial instruments, net of tax		(2,393)		(2,393)
BALANCE at Mar. 31, 2023	844,218	(140,701)	647,811	1,351,328
BALANCE at Dec. 31, 2022	844,022	(137,833)	601,510	1,307,699
Increase (Decrease) in Stockholder's Equity
Net income				93,999
Foreign currency translation adjustment				13,072
Pension liability adjustment, net of tax				(367)
Change in derivative financial instruments, net of tax				(2,780)
BALANCE at Jun. 30, 2023	844,471	(127,908)	695,509	1,412,072
BALANCE at Mar. 31, 2023	844,218	(140,701)	647,811	1,351,328
Increase (Decrease) in Stockholder's Equity
Net income			47,698	47,698
Foreign currency translation adjustment		13,366		13,366
Stock compensation	253			253
Pension liability adjustment, net of tax		(186)		(186)
Change in derivative financial instruments, net of tax		(387)		(387)
BALANCE at Jun. 30, 2023	$ 844,471	$ (127,908)	$ 695,509	$ 1,412,072

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
BASIS OF PRESENTATION	Jun. 30, 2023
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 Basildon, 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 of America (“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, 2022. 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 these estimates. Certain reclassifications have been made to prior period amounts to conform to current period presentation. These reclassifications did not have an impact on the Company’s results of operations or financial position as of December 31, 2022 or June 30, 2022.

NEW ACCOUNTING PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS	6 Months Ended
NEW ACCOUNTING PRONOUNCEMENTS	Jun. 30, 2023
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS	NOTE 2: NEW ACCOUNTING PRONOUNCEMENTS New Accounting Pronouncements Adopted In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME	6 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME	Jun. 30, 2023
ACCUMULATED OTHER COMPREHENSIVE INCOME
ACCUMULATED OTHER COMPREHENSIVE INCOME	NOTE 3: ACCUMULATED OTHER COMPREHENSIVE INCOME Accumulated other comprehensive income (“AOCI”) includes net income plus other comprehensive income, which includes foreign currency translation gains and losses, certain changes in pension plans and changes in fair value of certain derivatives designated as cash flow hedges. 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, 2023: Currency Unrealized Translation Pension (Losses) Gains Adjustment Liability on Derivatives Total Beginning balance, gross $ (151,548) $ 2,323 $ 12,061 $ (137,164) Tax liability — (561) (2,976) (3,537) Beginning balance, net of tax (151,548) 1,762 9,085 (140,701) Other comprehensive income (loss) before reclassifications 13,366 (111) (56) 13,199 Amounts reclassified from accumulated other comprehensive income (loss) — (135) (400) (535) Tax effects — 60 69 129 Net current-period other comprehensive income (loss) 13,366 (186) (387) 12,793 Total $ (138,182) $ 1,576 $ 8,698 $ (127,908) 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, 2023: Currency Unrealized Translation Pension (Losses) Gains Adjustment Liability on Derivatives Total Beginning balance, gross $ (151,254) $ 2,563 $ 15,288 $ (133,403) Tax liability — (620) (3,810) (4,430) Beginning balance, net of tax (151,254) 1,943 11,478 (137,833) Other comprehensive income (loss) before reclassifications 13,072 (216) (2,621) 10,235 Amounts reclassified from accumulated other comprehensive income (loss) — (270) (1,062) (1,332) Tax effects — 119 903 1,022 Net current-period other comprehensive income (loss) 13,072 (367) (2,780) 9,925 Total $ (138,182) $ 1,576 $ 8,698 $ (127,908) 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, 2022: Currency Unrealized Translation Pension (Losses) Gains Adjustment Liability Derivatives Total Beginning balance, gross $ (103,464) $ 2,205 $ 7,667 $ (93,592) Tax liability — (527) (1,919) (2,446) Beginning balance, net of tax (103,464) 1,678 5,748 (96,038) Other comprehensive income (loss) before reclassifications (19,746) (73) 8,783 (11,036) Amounts reclassified from accumulated other comprehensive income (loss) — (148) (3,539) (3,687) Tax effects — 53 (1,336) (1,283) Net current-period other comprehensive income (loss) (19,746) (168) 3,908 (16,006) Total $ (123,210) $ 1,510 $ 9,656 $ (112,044) 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, 2022: Currency Unrealized Translation Pension (Losses) Gains Adjustment Liability Derivatives Total Beginning balance, gross $ (112,618) $ 2,451 $ (956) $ (111,123) Tax asset (liability) — (587) 253 (334) Beginning balance, net of tax (112,618) 1,864 (703) (111,457) Other comprehensive income (loss) before reclassifications (10,592) (170) 14,082 3,320 Amounts reclassified from accumulated other comprehensive income (loss) — (297) (215) (512) Tax effects — 113 (3,508) (3,395) Net current-period other comprehensive income (loss) (10,592) (354) 10,359 (587) Total $ (123,210) $ 1,510 $ 9,656 $ (112,044) The reclassifications out of AOCI were immaterial for the three and six months ended June 30, 2023 and 2022.

RECEIVABLES

RECEIVABLES	6 Months Ended
RECEIVABLES	Jun. 30, 2023
RECEIVABLES
RECEIVABLES	NOTE 4: RECEIVABLES A summary of receivables included in the consolidated balance sheets as of June 30, 2023 and December 31, 2022 is as follows: June 30, December 31, 2023 2022 Retail notes $ 1,356,544 $ 1,241,775 Revolving charge accounts 233,695 207,744 Finance leases 194,973 198,064 Wholesale 1,144,211 875,628 Restricted receivables 9,104,049 8,343,621 Gross receivables 12,033,472 10,866,832 Less: Allowance for credit losses (115,120) (125,012) Total receivables, net $ 11,918,352 $ 10,741,820 Restricted Receivables and Securitization As part of its overall funding strategy, the Company periodically transfers certain receivables into 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, 2023 and December 31, 2022: June 30, December 31, 2023 2022 Retail notes $ 5,817,567 $ 5,835,445 Wholesale 3,286,482 2,508,176 Total restricted receivables $ 9,104,049 $ 8,343,621 Within the U.S. retail notes securitization programs, qualifying retail notes are sold to bankruptcy-remote SPEs. In turn, these SPEs establish separate trusts, which are VIEs, to either transfer receivables in exchange for proceeds from asset-backed securities issued by the trusts, or pledge the receivables as collateral in exchange for proceeds from a committed asset-backed facility. In Canada, qualifying retail notes are transferred directly to trusts, which are also VIEs. The VIEs are consolidated since the Company has both the power to direct the activities that most significantly impact the VIEs’ economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. With regard to the wholesale receivable securitization programs, the Company sells eligible receivables on a revolving basis to structured master trust facilities, which are bankruptcy-remote SPEs. 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 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, the Company has consolidated these wholesale trusts. Allowance for Credit Losses The allowance for credit losses is the Company’s estimate of the lifetime expected credit losses inherent in the receivables owned by the Company. Retail customer receivables primarily include retail notes and finance leases to end-use customers. Revolving charge accounts represent financing for customers to purchase parts, service, rentals, implements and attachments from CNH Industrial North America dealers. Wholesale receivables include dealer floorplan financing, and to a lesser extent, the financing of dealer operations. Typically, the Company’s receivables within a geographic area have similar risk profiles and methods for assessing and monitoring risk. Retail customer receivables that share the same risk characteristics, such as collateralization levels, geography, product type and other relevant factors, are reviewed on a collective basis using measurement models and management judgment. The allowance for credit losses on retail customer receivables is based on loss forecast models that consider a variety of factors that include, but are not limited to, historical loss experience, collateral value, portfolio balance and delinquency. The loss forecast models are updated on a quarterly basis. The calculation is adjusted for forward-looking macroeconomic factors, such as GDP and Net Farm Income. The forward-looking macroeconomic factors are updated quarterly. In addition, qualitative factors that are not fully captured in the loss forecast models 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. Wholesale receivables that share the same risk characteristics, such as collateralization levels, term, geography and other relevant factors, are reviewed on a collective basis using measurement models and management judgment. The allowance for 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, collateral value, portfolio balance and delinquency. The loss forecast models are updated on a quarterly basis. The calculation is adjusted for forward-looking macroeconomic factors, such as industry sales volumes. The forward-looking macroeconomic factors are updated quarterly. In addition, qualitative factors that are not fully captured in the loss forecast models 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. Retail customer receivables and wholesale receivables that do not have similar risk characteristics are individually reviewed based on, among other items, amounts outstanding, days past due and prior collection history. Expected credit losses are measured by considering: the probability-weighted estimates of cash flows and collateral value; the time value of money; current conditions and forecasts of future economic conditions. Expected credit losses are measured as the probability-weighted present value of all cash shortfalls (including the value of the collateral, if appropriate) over the expected life of each financial asset. 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. Revolving charge accounts are generally deemed to be uncollectible and charged-off to the allowance for credit losses when delinquency reaches 120 days. Allowance for credit losses activity for the three months ended June 30, 2023 is as follows: Revolving Retail Charge Customer Accounts Wholesale Total Allowance for credit losses: Beginning balance $ 103,442 $ 7,345 $ 6,685 $ 117,472 Charge-offs (5,358) (447) — (5,805) Recoveries 521 1 5 527 Provision (benefit) 1,119 1,749 (219) 2,649 Foreign currency translation and other 241 14 22 277 Ending balance $ 99,965 $ 8,662 $ 6,493 $ 115,120 Allowance for credit losses activity for the six months ended June 30, 2023 is as follows: Revolving Retail Charge Customer Accounts Wholesale Total Allowance for credit losses: Beginning balance $ 110,341 $ 8,519 $ 6,152 $ 125,012 Charge-offs (10,970) (4,685) — (15,655) Recoveries 913 1 16 930 Provision (benefit) (550) 4,814 304 4,568 Foreign currency translation and other 231 13 21 265 Ending balance $ 99,965 $ 8,662 $ 6,493 $ 115,120 Receivables: Ending balance $ 7,369,084 $ 233,695 $ 4,430,693 $ 12,033,472 At June 30, 2023, the allowance for credit losses included a decrease in reserves primarily due lower specific reserve needs. Allowance for credit losses activity for the three months ended June 30, 2022 is as follows: Retail Customer Wholesale Total Allowance for credit losses: Beginning balance, as previously reported $ 108,650 $ 9,724 $ 118,374 Charge-offs (4,578) (4,631) (9,209) Recoveries 596 4 600 Provision 1,549 395 1,944 Foreign currency translation and other (280) (25) (305) Ending balance $ 105,937 $ 5,467 $ 111,404 Allowance for credit losses activity for the six months ended June 30, 2022 is as follows: Retail Customer Wholesale Total Allowance for credit losses: Beginning balance $ 109,742 $ 6,211 $ 115,953 Charge-offs (5,475) (4,631) (10,106) Recoveries 893 15 908 Provision 883 3,886 4,769 Foreign currency translation and other (106) (14) (120) Ending balance $ 105,937 $ 5,467 $ 111,404 Receivables: Ending balance $ 7,040,072 $ 2,704,394 $ 9,744,466 At June 30, 2022, the allowance for credit losses included decreases in reserves primarily due to charge-offs and a reduction in the expected impact on credit conditions from the COVID-19 pandemic, partially offset by specific reserve needs. Allowance for credit losses activity for the year ended December 31, 2022 is as follows: Revolving Retail Charge Customer Accounts Wholesale Total Allowance for credit losses: Beginning balance $ 109,742 $ — $ 6,211 $ 115,953 Charge-offs (8,202) (49) (4,631) (12,882) Recoveries 2,262 — 526 2,788 Provision (benefit) 7,311 (169) 4,099 11,241 Foreign currency translation and other (772) 8,737 (53) 7,912 Ending balance $ 110,341 $ 8,519 $ 6,152 $ 125,012 Receivables: Ending balance $ 7,275,284 $ 207,744 $ 3,383,804 $ 10,866,832 At December 31, 2022, the allowance for credit losses included increases in reserves primarily due to the addition of revolving charge accounts. The Company assesses and monitors the credit quality of its receivables based on past due information. 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. As the terms for the retail customer receivables are greater than one year, the past due information is presented by year of origination. The aging of receivables and charge-offs as of June 30, 2023 are as follows: Greater 31 – 60 Days 61 – 90 Days Than Total Total Net Past Due Past Due 90 Days Past Due Current Receivables Charge-offs Retail customer United States 2023 $ 904 $ 36 $ — $ 940 $ 1,317,217 $ 1,318,157 $ 24 2022 7,807 3,524 1,913 13,244 2,208,165 2,221,409 1,464 2021 6,668 2,685 2,291 11,644 1,333,763 1,345,407 1,797 2020 3,390 1,110 31,970 36,470 618,860 655,330 2,113 2019 1,896 542 1,974 4,412 269,111 273,523 2,541 Prior to 2019 751 628 4,264 5,643 142,153 147,796 2,221 Total $ 21,416 $ 8,525 $ 42,412 $ 72,353 $ 5,889,269 $ 5,961,622 $ 10,160 Canada 2023 $ — $ — $ — $ — $ 234,771 $ 234,771 $ — 2022 1,502 852 272 2,626 538,752 541,378 290 2021 956 428 1,446 2,830 368,242 371,072 408 2020 654 139 722 1,515 159,422 160,937 (299) 2019 41 198 407 646 70,088 70,734 115 Prior to 2019 126 29 675 830 27,740 28,570 296 Total $ 3,279 $ 1,646 $ 3,522 $ 8,447 $ 1,399,015 $ 1,407,462 $ 810 Revolving charge accounts United States $ 6,933 $ 2,267 $ 1,186 $ 10,386 $ 205,934 $ 216,320 $ 4,425 Canada $ 425 $ 154 $ 89 $ 668 $ 16,707 $ 17,375 $ 260 Wholesale United States $ — $ — $ 3 $ 3 $ 3,579,050 $ 3,579,053 $ — Canada $ — $ — $ — $ — $ 851,640 $ 851,640 $ — Total Retail customer $ 24,695 $ 10,171 $ 45,934 $ 80,800 $ 7,288,284 $ 7,369,084 $ 10,970 Revolving charge accounts $ 7,358 $ 2,421 $ 1,275 $ 11,054 $ 222,641 $ 233,695 $ 4,685 Wholesale $ — $ — $ 3 $ 3 $ 4,430,690 $ 4,430,693 $ — The aging of receivables as of December 31, 2022 is as follows: Greater 31 – 60 Days 61 – 90 Days Than Total Total Past Due Past Due 90 Days Past Due Current Receivables Retail customer United States 2022 $ 6,258 $ 976 $ 350 $ 7,584 $ 2,728,247 $ 2,735,831 2021 6,610 1,269 3,701 11,580 1,610,175 1,621,755 2020 4,490 1,503 32,505 38,498 807,990 846,488 2019 2,365 1,034 4,114 7,513 382,168 389,681 2018 1,579 465 1,493 3,537 186,897 190,434 Prior to 2018 765 131 4,955 5,851 54,566 60,417 Total $ 22,067 $ 5,378 $ 47,118 $ 74,563 $ 5,770,043 $ 5,844,606 Canada 2022 $ 1,544 $ 22 $ 387 $ 1,953 $ 652,576 $ 654,529 2021 2,420 502 2,371 5,293 436,138 441,431 2020 810 128 960 1,898 190,905 192,803 2019 197 114 615 926 90,968 91,894 2018 388 178 262 828 38,477 39,305 Prior to 2018 123 25 257 405 10,311 10,716 Total $ 5,482 $ 969 $ 4,852 $ 11,303 $ 1,419,375 $ 1,430,678 Revolving charge accounts United States $ 12,979 $ 9,965 $ — $ 22,944 $ 169,851 $ 192,795 Canada $ 1,237 $ 759 $ — $ 1,996 $ 12,953 $ 14,949 Wholesale United States $ 7 $ — $ 4 $ 11 $ 2,721,282 $ 2,721,293 Canada $ — $ — $ — $ — $ 662,511 $ 662,511 Total Retail customer $ 27,549 $ 6,347 $ 51,970 $ 85,866 $ 7,189,418 $ 7,275,284 Revolving charge accounts $ 14,216 $ 10,724 $ — $ 24,940 $ 182,804 $ 207,744 Wholesale $ 7 $ — $ 4 $ 11 $ 3,383,793 $ 3,383,804 Included in the receivables balance at June 30, 2023 and December 31, 2022 is accrued interest of $71,560 and $57,831, respectively. The Company does not include accrued interest in its allowance for credit losses. Recognition of income is generally suspended when management determines that collection of future finance income is not probable or when an account becomes 90 days past due, whichever occurs first. Accrued interest is charged-off to interest income. Interest income charged-off was not material for the three and six months ended June 30, 2023 and 2022. Interest accrual is resumed if the receivable becomes contractually current and collection becomes probable. Previously suspended income is recognized at that time. The retail customer receivables on nonaccrual status as of June 30, 2023 and December 31, 2022 are as follows: June 30, December 31, 2023 2022 United States $ 43,536 $ 48,690 Canada $ 4,219 $ 4,852 As of June 30, 2023, total revolving charge account receivables on nonaccrual status were immaterial and there were no revolving charge account receivables on nonaccrual status as of December 31, 2022. As of June 30, 2023 and December 31, 2022, there were no wholesale receivables on nonaccrual status. As of June 30, 2023 and December 31, 2022, the Company’s receivables on non-accrual status without an allowance were immaterial. Interest income recognized for receivables on non-accrual status for the three and six months ended June 30, 2023 and 2022 was immaterial. Troubled Debt Restructurings A restructuring of a receivable constitutes a TDR when the lender grants a concession it would not otherwise consider to a borrower that is experiencing financial difficulties. As a collateral-based lender, the Company typically will repossess collateral in lieu of restructuring receivables. As such, for retail customer 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. As of June 30, 2023 and 2022, the Company’s TDRs were immaterial.

EQUIPMENT ON OPERATING LEASES

EQUIPMENT ON OPERATING LEASES	6 Months Ended
EQUIPMENT ON OPERATING LEASES	Jun. 30, 2023
EQUIPMENT ON OPERATING LEASES
EQUIPMENT ON OPERATING LEASES	NOTE 5: EQUIPMENT ON OPERATING LEASES Lease payments owed to the Company for equipment under non-cancelable operating leases (excluding deferred operating lease subsidy of $73,676) as of June 30, 2023 are as follows: 2023 $ 108,068 2024 166,654 2025 103,942 2026 44,308 2027 and thereafter 18,228 Total lease payments $ 441,200

CREDIT FACILITIES AND DEBT

CREDIT FACILITIES AND DEBT	6 Months Ended
CREDIT FACILITIES AND DEBT	Jun. 30, 2023
CREDIT FACILITIES AND DEBT
CREDIT FACILITIES AND DEBT	NOTE 6: CREDIT FACILITIES AND DEBT On April 10, 2023, the Company completed an offering of $600,000 in aggregate principal amount of its 4.550% unsecured notes due 2028, with an issue price of 98.857%. On April 24, 2023, the Company borrowed $412,233 through an amortizing loan secured by U.S. operating leases. The final maturity date is December 2028. On April 25, 2023, the Company, through a bankruptcy-remote trust, issued $817,010 of amortizing asset-backed notes secured by U.S. retail receivables. On May 24, 2023, the Company, through a trust, issued C$459,650 ($337,981) of amortizing asset-backed notes secured by Canadian retail receivables. Committed unsecured facilities with banks as of June 30, 2023, totaled $685,635. These credit facilities, which are eligible for renewal at various future dates, are used primarily for working capital and other general corporate purposes. As of June 30, 2023, the Company had $285,635 outstanding under these credit facilities. The remaining available credit commitments are maintained primarily to provide backup liquidity for commercial paper borrowings. The Company’s outstanding commercial paper totaled $269,107 as of June 30, 2023.

INCOME TAXES

INCOME TAXES	6 Months Ended
INCOME TAXES	Jun. 30, 2023
INCOME TAXES
INCOME TAXES	NOTE 7: INCOME TAXES The effective tax rates for the three months ended June 30, 2023 and 2022 were 20.3% and 24.2%, respectively. The effective tax rate was 21.9% for the six months ended June 30, 2023, compared to 23.8% for the same period in 2022.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	6 Months Ended
FINANCIAL INSTRUMENTS	Jun. 30, 2023
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS	NOTE 8: FINANCIAL INSTRUMENTS The Company may elect to measure financial instruments and certain other items at fair value. This fair value option would 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 has not elected the fair value measurement option for eligible items. Fair-Value Hierarchy The hierarchy of valuation techniques for financial instruments is 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 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 use 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. The Company designates derivatives that are effective at reducing the risk associated with the exposure being hedged as accounting hedges at the inception of the contract and does not hold or enter into derivative or other financial instruments for speculative purposes. The credit and market risk related to derivatives is reduced through diversification among various counterparties, utilizing mandatory termination clauses and/or collateral support agreements. Derivative instruments are generally classified as Level 2 in 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 as cash flow hedges are being used by the Company to mitigate the risk of rising interest rates related to existing debt and anticipated issuance of fixed-rate debt in future periods. Gains and losses on these instruments 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. As of June 30, 2023, the maximum length of time over which the Company is hedging its interest rate exposure through the use of derivative instruments designated in cash flow hedge relationships is 63 months. As of June 30, 2023, the after-tax gains deferred in accumulated other comprehensive income (loss) that will be recognized in interest expense over the next 12 months are approximately ($2,156). The Company also enters into offsetting interest rate derivatives with substantially similar terms that are not designated as hedging instruments to mitigate interest rate risk related to the Company’s committed asset-backed facilities. 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, 2023 and 2022. All of the Company’s interest rate derivatives as of June 30, 2023 and December 31, 2022 are considered Level 2. The fair market value of these derivatives is calculated using market data input and can be compared to actively traded derivatives. The total notional amount of the Company’s interest rate derivatives was $3,591,246 and $3,628,725 at June 30, 2023 and December 31, 2022, respectively. The seven-month average notional amounts for the six months ended June 30, 2023 and 2022 were $3,687,713 and $3,797,375, respectively. As a result of the reform and replacement of specific benchmark interest rates, the Company elected to make the replacement using the optional expedient under ASC 848, which allows the change in critical terms without dedesignation and the Company also elected the optional expedient to apply a spread adjustment to hedged items cash flows that resulted in no change to the cumulative basis adjustment reflected in earnings. 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, net” 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, 2023 and December 31, 2022 in the consolidated balance sheets are recorded as follows: June 30, December 31, 2023 2022 Derivatives Designated as Hedging Instruments Other assets: Interest rate derivatives $ 2,411 $ 3,597 Accounts payable and other accrued liabilities: Interest rate derivatives $ 46,103 $ 42,936 Derivatives Not Designated as Hedging Instruments Other assets: Interest rate derivatives $ 34,330 $ 27,862 Foreign exchange contracts 2,967 4,116 Total $ 37,297 $ 31,978 Accounts payable and other accrued liabilities: Interest rate derivatives $ 34,330 $ 27,862 Foreign exchange contracts 321 435 Total $ 34,651 $ 28,297 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, 2023 and 2022 are recorded in the following accounts: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Cash Flow Hedges Recognized in accumulated other comprehensive income (loss): Interest rate derivatives $ (56) $ 8,783 $ (2,621) $ 14,082 Reclassified from accumulated other comprehensive income (loss): Interest rate derivatives—Interest expense to third parties $ 400 $ 3,539 $ 1,062 $ 215 Not Designated as Hedges Foreign exchange contracts—Other expenses, net $ 2,220 $ (3,710) $ 2,251 $ (863) 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, 2023 and December 31, 2022, all of which are measured as Level 2: June 30, December 31, 2023 2022 Assets Interest rate derivatives $ 36,741 $ 31,459 Foreign exchange contracts 2,967 4,116 Total assets $ 39,708 $ 35,575 Liabilities Interest rate derivatives $ 80,433 $ 70,798 Foreign exchange contracts 321 435 Total liabilities $ 80,754 $ 71,233 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, restricted cash and cash equivalents, 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 restricted cash and cash equivalents 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, 2023 and December 31, 2022 are as follows: June 30, 2023 December 31, 2022 Carrying Estimated Carrying Estimated Amount Fair Value * Amount Fair Value * Receivables $ 11,918,352 $ 11,715,166 $ 10,741,820 $ 10,433,949 Long-term debt $ 6,914,753 $ 6,594,315 $ 6,387,135 $ 6,032,997 ______________ * Under the fair value hierarchy, receivables measurements are classified as Level 3 and long-term debt measurements are classified as Level 2. Receivables The fair value of receivables was determined by discounting the estimated future payments using a discount rate which includes an estimate for credit risk. Long-term debt The fair values of long-term debt were based on current market quotes for identical or similar borrowings and credit risk.

GEOGRAPHICAL INFORMATION

GEOGRAPHICAL INFORMATION	6 Months Ended
GEOGRAPHICAL INFORMATION	Jun. 30, 2023
GEOGRAPHICAL INFORMATION
GEOGRAPHICAL INFORMATION	NOTE 9: GEOGRAPHICAL INFORMATION A summary of the Company’s geographical information is as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenues United States $ 197,024 $ 146,628 $ 379,919 $ 296,464 Canada 50,630 43,866 96,738 82,928 Eliminations (540) (1,218) (1,025) (2,707) Total $ 247,114 $ 189,276 $ 475,632 $ 376,685 Interest expense United States $ 101,441 $ 38,046 $ 187,093 $ 69,763 Canada 21,187 10,743 39,724 19,935 Eliminations (540) (1,218) (1,025) (2,707) Total $ 122,088 $ 47,571 $ 225,792 $ 86,991 Net income United States $ 35,823 $ 47,280 $ 72,082 $ 97,967 Canada 11,875 12,614 21,917 25,414 Total $ 47,698 $ 59,894 $ 93,999 $ 123,381 Depreciation and amortization United States $ 32,432 $ 37,874 $ 65,261 $ 79,431 Canada 12,978 12,476 25,870 25,024 Total $ 45,410 $ 50,350 $ 91,131 $ 104,455 Expenditures for equipment on operating leases United States $ 90,878 $ 88,855 $ 166,119 $ 178,562 Canada 33,652 35,441 61,690 67,952 Total $ 124,530 $ 124,296 $ 227,809 $ 246,514 Provision (benefit) for credit losses United States $ 3,279 $ 804 $ 6,438 $ 5,199 Canada (630) 1,140 (1,870) (430) Total $ 2,649 $ 1,944 $ 4,568 $ 4,769 As of As of June 30, December 31, 2023 2022 Total assets United States $ 11,551,683 $ 10,712,413 Canada 2,844,999 2,683,722 Eliminations (180,020) (216,656) Total $ 14,216,662 $ 13,179,479 Managed receivables United States $ 9,756,995 $ 8,758,694 Canada 2,276,477 2,108,138 Total $ 12,033,472 $ 10,866,832

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	6 Months Ended
RELATED-PARTY TRANSACTIONS	Jun. 30, 2023
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS	NOTE 10: RELATED-PARTY TRANSACTIONS The Company receives compensation from CNH Industrial North America for retail notes and finance leases, 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, 2023 and 2022 is as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Subsidy from CNH Industrial North America Retail notes and finance leases $ 29,389 $ 31,045 $ 57,864 $ 63,488 Operating lease 9,835 12,272 20,158 24,851 Revolving charge accounts 1,106 — 1,965 — Wholesale 53,953 21,704 97,366 38,747 Income from affiliated receivables CNH Industrial North America 83 143 83 329 Banco CNH Industrial Capital Brazil 779 — 1,417 — Other affiliates 424 68 820 124 Total interest and other income from affiliates $ 95,569 $ 65,232 $ 179,673 $ 127,539 Interest expense to affiliates was $4,985 and $1,366, respectively, for the three months ended June 30, 2023 and 2022 and $13,433 and $1,699, respectively, for the six months ended June 30, 2023 and 2022. Fees charged by affiliates were $13,112 and $12,157, respectively, for the three months ended June 30, 2023 and 2022, and $26,987 and $23,573, respectively, for the six months ended June 30, 2023 and 2022, which amounts consist of payroll and other human resource services CNH Industrial America performs on behalf of the Company. As of June 30, 2023 and December 31, 2022, the Company had various accounts and notes receivable and debt with the following affiliates: June 30, December 31, 2023 2022 Affiliated receivables CNH Industrial America $ — $ 10 Banco CNH Industrial Capital Brazil 46,551 40,983 Other affiliates 12,540 12,516 Total affiliated receivables $ 59,091 $ 53,509 Affiliated debt CNH Industrial America $ 44,092 $ 100,195 CNH Industrial Canada Ltd. 241,036 Other affiliates — 300 Total affiliated debt $ 262,405 $ 341,531 Accounts payable and other accrued liabilities, including tax payables, of $159,928 and $212,167 were payable to related parties as of June 30, 2023 and December 31, 2022, respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
COMMITMENTS AND CONTINGENCIES	Jun. 30, 2023
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 11: 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. Guarantees The Company provides payment guarantees on the financial debt of various foreign financial services subsidiaries of CNHI for approximately $50,400. The guarantees are in effect for the term of the underlying funding facilities. Commitments As of June 30, 2023, the Company had various agreements, on an uncommitted basis, to extend credit for the following portfolios: Total Credit Limit Utilized Not Utilized Wholesale and dealer financing $ 6,186,068 $ 4,390,106 $ 1,795,962 Revolving charge accounts $ 2,511,699 $ 234,403 $ 2,277,296

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
SUBSEQUENT EVENTS	Jun. 30, 2023
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 12: SUBSEQUENT EVENTS On July 3, 2023, the Company repaid $600,000 of its 1.950% unsecured notes due 2023.

NEW ACCOUNTING PRONOUNCEMENTS (

NEW ACCOUNTING PRONOUNCEMENTS (Policies)	6 Months Ended
NEW ACCOUNTING PRONOUNCEMENTS (Policies)	Jun. 30, 2023
NEW ACCOUNTING PRONOUNCEMENTS.
New Accounting Pronouncements Adopted	New Accounting Pronouncements Adopted In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	6 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	Jun. 30, 2023
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, 2023: Currency Unrealized Translation Pension (Losses) Gains Adjustment Liability on Derivatives Total Beginning balance, gross $ (151,548) $ 2,323 $ 12,061 $ (137,164) Tax liability — (561) (2,976) (3,537) Beginning balance, net of tax (151,548) 1,762 9,085 (140,701) Other comprehensive income (loss) before reclassifications 13,366 (111) (56) 13,199 Amounts reclassified from accumulated other comprehensive income (loss) — (135) (400) (535) Tax effects — 60 69 129 Net current-period other comprehensive income (loss) 13,366 (186) (387) 12,793 Total $ (138,182) $ 1,576 $ 8,698 $ (127,908) 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, 2023: Currency Unrealized Translation Pension (Losses) Gains Adjustment Liability on Derivatives Total Beginning balance, gross $ (151,254) $ 2,563 $ 15,288 $ (133,403) Tax liability — (620) (3,810) (4,430) Beginning balance, net of tax (151,254) 1,943 11,478 (137,833) Other comprehensive income (loss) before reclassifications 13,072 (216) (2,621) 10,235 Amounts reclassified from accumulated other comprehensive income (loss) — (270) (1,062) (1,332) Tax effects — 119 903 1,022 Net current-period other comprehensive income (loss) 13,072 (367) (2,780) 9,925 Total $ (138,182) $ 1,576 $ 8,698 $ (127,908) 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, 2022: Currency Unrealized Translation Pension (Losses) Gains Adjustment Liability Derivatives Total Beginning balance, gross $ (103,464) $ 2,205 $ 7,667 $ (93,592) Tax liability — (527) (1,919) (2,446) Beginning balance, net of tax (103,464) 1,678 5,748 (96,038) Other comprehensive income (loss) before reclassifications (19,746) (73) 8,783 (11,036) Amounts reclassified from accumulated other comprehensive income (loss) — (148) (3,539) (3,687) Tax effects — 53 (1,336) (1,283) Net current-period other comprehensive income (loss) (19,746) (168) 3,908 (16,006) Total $ (123,210) $ 1,510 $ 9,656 $ (112,044) 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, 2022: Currency Unrealized Translation Pension (Losses) Gains Adjustment Liability Derivatives Total Beginning balance, gross $ (112,618) $ 2,451 $ (956) $ (111,123) Tax asset (liability) — (587) 253 (334) Beginning balance, net of tax (112,618) 1,864 (703) (111,457) Other comprehensive income (loss) before reclassifications (10,592) (170) 14,082 3,320 Amounts reclassified from accumulated other comprehensive income (loss) — (297) (215) (512) Tax effects — 113 (3,508) (3,395) Net current-period other comprehensive income (loss) (10,592) (354) 10,359 (587) Total $ (123,210) $ 1,510 $ 9,656 $ (112,044)

RECEIVABLES (Tables)

RECEIVABLES (Tables)	6 Months Ended
RECEIVABLES (Tables)	Jun. 30, 2023
RECEIVABLES
Summary of receivables	June 30, December 31, 2023 2022 Retail notes $ 1,356,544 $ 1,241,775 Revolving charge accounts 233,695 207,744 Finance leases 194,973 198,064 Wholesale 1,144,211 875,628 Restricted receivables 9,104,049 8,343,621 Gross receivables 12,033,472 10,866,832 Less: Allowance for credit losses (115,120) (125,012) Total receivables, net $ 11,918,352 $ 10,741,820
Summary of restricted receivables	June 30, December 31, 2023 2022 Retail notes $ 5,817,567 $ 5,835,445 Wholesale 3,286,482 2,508,176 Total restricted receivables $ 9,104,049 $ 8,343,621
Schedule of allowance for credit losses activity	Allowance for credit losses activity for the three months ended June 30, 2023 is as follows: Revolving Retail Charge Customer Accounts Wholesale Total Allowance for credit losses: Beginning balance $ 103,442 $ 7,345 $ 6,685 $ 117,472 Charge-offs (5,358) (447) — (5,805) Recoveries 521 1 5 527 Provision (benefit) 1,119 1,749 (219) 2,649 Foreign currency translation and other 241 14 22 277 Ending balance $ 99,965 $ 8,662 $ 6,493 $ 115,120 Allowance for credit losses activity for the six months ended June 30, 2023 is as follows: Revolving Retail Charge Customer Accounts Wholesale Total Allowance for credit losses: Beginning balance $ 110,341 $ 8,519 $ 6,152 $ 125,012 Charge-offs (10,970) (4,685) — (15,655) Recoveries 913 1 16 930 Provision (benefit) (550) 4,814 304 4,568 Foreign currency translation and other 231 13 21 265 Ending balance $ 99,965 $ 8,662 $ 6,493 $ 115,120 Receivables: Ending balance $ 7,369,084 $ 233,695 $ 4,430,693 $ 12,033,472 At June 30, 2023, the allowance for credit losses included a decrease in reserves primarily due lower specific reserve needs. Allowance for credit losses activity for the three months ended June 30, 2022 is as follows: Retail Customer Wholesale Total Allowance for credit losses: Beginning balance, as previously reported $ 108,650 $ 9,724 $ 118,374 Charge-offs (4,578) (4,631) (9,209) Recoveries 596 4 600 Provision 1,549 395 1,944 Foreign currency translation and other (280) (25) (305) Ending balance $ 105,937 $ 5,467 $ 111,404 Allowance for credit losses activity for the six months ended June 30, 2022 is as follows: Retail Customer Wholesale Total Allowance for credit losses: Beginning balance $ 109,742 $ 6,211 $ 115,953 Charge-offs (5,475) (4,631) (10,106) Recoveries 893 15 908 Provision 883 3,886 4,769 Foreign currency translation and other (106) (14) (120) Ending balance $ 105,937 $ 5,467 $ 111,404 Receivables: Ending balance $ 7,040,072 $ 2,704,394 $ 9,744,466 At June 30, 2022, the allowance for credit losses included decreases in reserves primarily due to charge-offs and a reduction in the expected impact on credit conditions from the COVID-19 pandemic, partially offset by specific reserve needs. Allowance for credit losses activity for the year ended December 31, 2022 is as follows: Revolving Retail Charge Customer Accounts Wholesale Total Allowance for credit losses: Beginning balance $ 109,742 $ — $ 6,211 $ 115,953 Charge-offs (8,202) (49) (4,631) (12,882) Recoveries 2,262 — 526 2,788 Provision (benefit) 7,311 (169) 4,099 11,241 Foreign currency translation and other (772) 8,737 (53) 7,912 Ending balance $ 110,341 $ 8,519 $ 6,152 $ 125,012 Receivables: Ending balance $ 7,275,284 $ 207,744 $ 3,383,804 $ 10,866,832
Schedule of aging of financing receivables	The aging of receivables and charge-offs as of June 30, 2023 are as follows: Greater 31 – 60 Days 61 – 90 Days Than Total Total Net Past Due Past Due 90 Days Past Due Current Receivables Charge-offs Retail customer United States 2023 $ 904 $ 36 $ — $ 940 $ 1,317,217 $ 1,318,157 $ 24 2022 7,807 3,524 1,913 13,244 2,208,165 2,221,409 1,464 2021 6,668 2,685 2,291 11,644 1,333,763 1,345,407 1,797 2020 3,390 1,110 31,970 36,470 618,860 655,330 2,113 2019 1,896 542 1,974 4,412 269,111 273,523 2,541 Prior to 2019 751 628 4,264 5,643 142,153 147,796 2,221 Total $ 21,416 $ 8,525 $ 42,412 $ 72,353 $ 5,889,269 $ 5,961,622 $ 10,160 Canada 2023 $ — $ — $ — $ — $ 234,771 $ 234,771 $ — 2022 1,502 852 272 2,626 538,752 541,378 290 2021 956 428 1,446 2,830 368,242 371,072 408 2020 654 139 722 1,515 159,422 160,937 (299) 2019 41 198 407 646 70,088 70,734 115 Prior to 2019 126 29 675 830 27,740 28,570 296 Total $ 3,279 $ 1,646 $ 3,522 $ 8,447 $ 1,399,015 $ 1,407,462 $ 810 Revolving charge accounts United States $ 6,933 $ 2,267 $ 1,186 $ 10,386 $ 205,934 $ 216,320 $ 4,425 Canada $ 425 $ 154 $ 89 $ 668 $ 16,707 $ 17,375 $ 260 Wholesale United States $ — $ — $ 3 $ 3 $ 3,579,050 $ 3,579,053 $ — Canada $ — $ — $ — $ — $ 851,640 $ 851,640 $ — Total Retail customer $ 24,695 $ 10,171 $ 45,934 $ 80,800 $ 7,288,284 $ 7,369,084 $ 10,970 Revolving charge accounts $ 7,358 $ 2,421 $ 1,275 $ 11,054 $ 222,641 $ 233,695 $ 4,685 Wholesale $ — $ — $ 3 $ 3 $ 4,430,690 $ 4,430,693 $ — The aging of receivables as of December 31, 2022 is as follows: Greater 31 – 60 Days 61 – 90 Days Than Total Total Past Due Past Due 90 Days Past Due Current Receivables Retail customer United States 2022 $ 6,258 $ 976 $ 350 $ 7,584 $ 2,728,247 $ 2,735,831 2021 6,610 1,269 3,701 11,580 1,610,175 1,621,755 2020 4,490 1,503 32,505 38,498 807,990 846,488 2019 2,365 1,034 4,114 7,513 382,168 389,681 2018 1,579 465 1,493 3,537 186,897 190,434 Prior to 2018 765 131 4,955 5,851 54,566 60,417 Total $ 22,067 $ 5,378 $ 47,118 $ 74,563 $ 5,770,043 $ 5,844,606 Canada 2022 $ 1,544 $ 22 $ 387 $ 1,953 $ 652,576 $ 654,529 2021 2,420 502 2,371 5,293 436,138 441,431 2020 810 128 960 1,898 190,905 192,803 2019 197 114 615 926 90,968 91,894 2018 388 178 262 828 38,477 39,305 Prior to 2018 123 25 257 405 10,311 10,716 Total $ 5,482 $ 969 $ 4,852 $ 11,303 $ 1,419,375 $ 1,430,678 Revolving charge accounts United States $ 12,979 $ 9,965 $ — $ 22,944 $ 169,851 $ 192,795 Canada $ 1,237 $ 759 $ — $ 1,996 $ 12,953 $ 14,949 Wholesale United States $ 7 $ — $ 4 $ 11 $ 2,721,282 $ 2,721,293 Canada $ — $ — $ — $ — $ 662,511 $ 662,511 Total Retail customer $ 27,549 $ 6,347 $ 51,970 $ 85,866 $ 7,189,418 $ 7,275,284 Revolving charge accounts $ 14,216 $ 10,724 $ — $ 24,940 $ 182,804 $ 207,744 Wholesale $ 7 $ — $ 4 $ 11 $ 3,383,793 $ 3,383,804
Schedule of receivables on nonaccrual status	June 30, December 31, 2023 2022 United States $ 43,536 $ 48,690 Canada $ 4,219 $ 4,852

EQUIPMENT ON OPERATING LEASES (

EQUIPMENT ON OPERATING LEASES (Tables)	6 Months Ended
EQUIPMENT ON OPERATING LEASES (Tables)	Jun. 30, 2023
EQUIPMENT ON OPERATING LEASES
Schedule of lease payments owed to the Company for equipment under non-cancelable operating leases	2023 $ 108,068 2024 166,654 2025 103,942 2026 44,308 2027 and thereafter 18,228 Total lease payments $ 441,200

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
FINANCIAL INSTRUMENTS (Tables)	Jun. 30, 2023
FINANCIAL INSTRUMENTS
Schedule of fair values of derivatives in the consolidated balance sheets	June 30, December 31, 2023 2022 Derivatives Designated as Hedging Instruments Other assets: Interest rate derivatives $ 2,411 $ 3,597 Accounts payable and other accrued liabilities: Interest rate derivatives $ 46,103 $ 42,936 Derivatives Not Designated as Hedging Instruments Other assets: Interest rate derivatives $ 34,330 $ 27,862 Foreign exchange contracts 2,967 4,116 Total $ 37,297 $ 31,978 Accounts payable and other accrued liabilities: Interest rate derivatives $ 34,330 $ 27,862 Foreign exchange contracts 321 435 Total $ 34,651 $ 28,297
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, 2023 2022 2023 2022 Cash Flow Hedges Recognized in accumulated other comprehensive income (loss): Interest rate derivatives $ (56) $ 8,783 $ (2,621) $ 14,082 Reclassified from accumulated other comprehensive income (loss): Interest rate derivatives—Interest expense to third parties $ 400 $ 3,539 $ 1,062 $ 215 Not Designated as Hedges Foreign exchange contracts—Other expenses, net $ 2,220 $ (3,710) $ 2,251 $ (863)
Schedule of assets and liabilities measured at fair value on a recurring basis	June 30, December 31, 2023 2022 Assets Interest rate derivatives $ 36,741 $ 31,459 Foreign exchange contracts 2,967 4,116 Total assets $ 39,708 $ 35,575 Liabilities Interest rate derivatives $ 80,433 $ 70,798 Foreign exchange contracts 321 435 Total liabilities $ 80,754 $ 71,233
Schedule of carrying amount and estimated fair value of assets and liabilities considered financial instruments	June 30, 2023 December 31, 2022 Carrying Estimated Carrying Estimated Amount Fair Value * Amount Fair Value * Receivables $ 11,918,352 $ 11,715,166 $ 10,741,820 $ 10,433,949 Long-term debt $ 6,914,753 $ 6,594,315 $ 6,387,135 $ 6,032,997 ______________ * Under the fair value hierarchy, receivables measurements are classified as Level 3 and long-term debt measurements are classified as Level 2.

GEOGRAPHICAL INFORMATION (Table

GEOGRAPHICAL INFORMATION (Tables)	6 Months Ended
GEOGRAPHICAL INFORMATION (Tables)	Jun. 30, 2023
GEOGRAPHICAL INFORMATION
Summary of geographic information	Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenues United States $ 197,024 $ 146,628 $ 379,919 $ 296,464 Canada 50,630 43,866 96,738 82,928 Eliminations (540) (1,218) (1,025) (2,707) Total $ 247,114 $ 189,276 $ 475,632 $ 376,685 Interest expense United States $ 101,441 $ 38,046 $ 187,093 $ 69,763 Canada 21,187 10,743 39,724 19,935 Eliminations (540) (1,218) (1,025) (2,707) Total $ 122,088 $ 47,571 $ 225,792 $ 86,991 Net income United States $ 35,823 $ 47,280 $ 72,082 $ 97,967 Canada 11,875 12,614 21,917 25,414 Total $ 47,698 $ 59,894 $ 93,999 $ 123,381 Depreciation and amortization United States $ 32,432 $ 37,874 $ 65,261 $ 79,431 Canada 12,978 12,476 25,870 25,024 Total $ 45,410 $ 50,350 $ 91,131 $ 104,455 Expenditures for equipment on operating leases United States $ 90,878 $ 88,855 $ 166,119 $ 178,562 Canada 33,652 35,441 61,690 67,952 Total $ 124,530 $ 124,296 $ 227,809 $ 246,514 Provision (benefit) for credit losses United States $ 3,279 $ 804 $ 6,438 $ 5,199 Canada (630) 1,140 (1,870) (430) Total $ 2,649 $ 1,944 $ 4,568 $ 4,769 As of As of June 30, December 31, 2023 2022 Total assets United States $ 11,551,683 $ 10,712,413 Canada 2,844,999 2,683,722 Eliminations (180,020) (216,656) Total $ 14,216,662 $ 13,179,479 Managed receivables United States $ 9,756,995 $ 8,758,694 Canada 2,276,477 2,108,138 Total $ 12,033,472 $ 10,866,832

RELATED-PARTY TRANSACTIONS (Tab

RELATED-PARTY TRANSACTIONS (Tables)	6 Months Ended
RELATED-PARTY TRANSACTIONS (Tables)	Jun. 30, 2023
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, 2023 2022 2023 2022 Subsidy from CNH Industrial North America Retail notes and finance leases $ 29,389 $ 31,045 $ 57,864 $ 63,488 Operating lease 9,835 12,272 20,158 24,851 Revolving charge accounts 1,106 — 1,965 — Wholesale 53,953 21,704 97,366 38,747 Income from affiliated receivables CNH Industrial North America 83 143 83 329 Banco CNH Industrial Capital Brazil 779 — 1,417 — Other affiliates 424 68 820 124 Total interest and other income from affiliates $ 95,569 $ 65,232 $ 179,673 $ 127,539
Schedule of various accounts and notes receivable and debt with the affiliates	June 30, December 31, 2023 2022 Affiliated receivables CNH Industrial America $ — $ 10 Banco CNH Industrial Capital Brazil 46,551 40,983 Other affiliates 12,540 12,516 Total affiliated receivables $ 59,091 $ 53,509 Affiliated debt CNH Industrial America $ 44,092 $ 100,195 CNH Industrial Canada Ltd. 241,036 Other affiliates — 300 Total affiliated debt $ 262,405 $ 341,531

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
COMMITMENTS AND CONTINGENCIES (Tables)	Jun. 30, 2023
COMMITMENTS AND CONTINGENCIES
Commitments to Extend Credit	Total Credit Limit Utilized Not Utilized Wholesale and dealer financing $ 6,186,068 $ 4,390,106 $ 1,795,962 Revolving charge accounts $ 2,511,699 $ 234,403 $ 2,277,296

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME - Change in Components of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Changes in accumulated other comprehensive income by component
Beginning balance, gross					$ (137,164)	$ (133,403)	$ (93,592)	$ (111,123)
Tax asset (liability)					(3,537)	(4,430)	(2,446)	(334)
Beginning balance, net of tax	$ (140,701)	$ (96,038)	$ (137,833)	$ (111,457)
Other comprehensive income (loss) before reclassifications	13,199	(11,036)	10,235	3,320
Amounts reclassified from accumulated other comprehensive income (loss)	(535)	(3,687)	(1,332)	(512)
Tax effects	129	(1,283)	1,022	(3,395)
Total other comprehensive income (loss)	12,793	(16,006)	9,925	(587)
Ending balance	(127,908)	(112,044)	(127,908)	(112,044)
Currency Translation Adjustment
Changes in accumulated other comprehensive income by component
Beginning balance, gross					(151,548)	(151,254)	(103,464)	(112,618)
Beginning balance, net of tax	(151,548)	(103,464)	(151,254)	(112,618)
Other comprehensive income (loss) before reclassifications	13,366	(19,746)	13,072	(10,592)
Total other comprehensive income (loss)	13,366	(19,746)	13,072	(10,592)
Ending balance	(138,182)	(123,210)	(138,182)	(123,210)
Pension Liability
Changes in accumulated other comprehensive income by component
Beginning balance, gross					2,323	2,563	2,205	2,451
Tax asset (liability)					(561)	(620)	(527)	(587)
Beginning balance, net of tax	1,762	1,678	1,943	1,864
Other comprehensive income (loss) before reclassifications	(111)	(73)	(216)	(170)
Amounts reclassified from accumulated other comprehensive income (loss)	(135)	(148)	(270)	(297)
Tax effects	60	53	119	113
Total other comprehensive income (loss)	(186)	(168)	(367)	(354)
Ending balance	1,576	1,510	1,576	1,510
Unrealized (Losses) Gains on Derivatives
Changes in accumulated other comprehensive income by component
Beginning balance, gross					12,061	15,288	7,667	(956)
Tax asset (liability)					$ (2,976)	$ (3,810)	$ (1,919)	$ 253
Beginning balance, net of tax	9,085	5,748	11,478	(703)
Other comprehensive income (loss) before reclassifications	(56)	8,783	(2,621)	14,082
Amounts reclassified from accumulated other comprehensive income (loss)	(400)	(3,539)	(1,062)	(215)
Tax effects	69	(1,336)	903	(3,508)
Total other comprehensive income (loss)	(387)	3,908	(2,780)	10,359
Ending balance	$ 8,698	$ 9,656	$ 8,698	$ 9,656

RECEIVABLES - Summary of Receiv

RECEIVABLES - Summary of Receivables (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Receivables
Gross receivables	$ 12,033,472		$ 10,866,832	$ 9,744,466
Less: Allowance for credit losses	(115,120)	$ (117,472)	(125,012)	$ (111,404)	$ (118,374)	$ (115,953)
Total receivables, net	11,918,352		10,741,820
Restricted receivables	9,104,049		8,343,621
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
Retail notes
Receivables
Gross receivables	1,356,544		1,241,775
Restricted receivables	5,817,567		5,835,445
Revolving charge accounts
Receivables
Gross receivables	233,695		207,744
Finance leases
Receivables
Gross receivables	194,973		198,064
Wholesale
Receivables
Gross receivables	1,144,211		875,628
Restricted receivables	3,286,482		2,508,176
Restricted receivables
Receivables
Restricted receivables	$ 9,104,049		$ 8,343,621

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, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Allowance for credit losses:
Beginning balance	$ 117,472	$ 118,374	$ 125,012	$ 115,953	$ 115,953
Charge-offs	(5,805)	(9,209)	(15,655)	(10,106)	(12,882)
Recoveries	527	600	930	908	2,788
Provision (benefit)	2,649	1,944	4,568	4,769	11,241
Foreign currency translation and other	277	(305)	265	(120)	7,912
Ending balance	115,120	111,404	115,120	111,404	125,012
Receivables:
Ending balance	12,033,472	9,744,466	$ 12,033,472	9,744,466	10,866,832
Minimum account delinquency period for revolving charge accounts to be classified as past due			120 days
Retail customer
Allowance for credit losses:
Beginning balance	103,442	108,650	$ 110,341	109,742	109,742
Charge-offs	(5,358)	(4,578)	(10,970)	(5,475)	(8,202)
Recoveries	521	596	913	893	2,262
Provision (benefit)	1,119	1,549	(550)	883	7,311
Foreign currency translation and other	241	(280)	231	(106)	(772)
Ending balance	99,965	105,937	99,965	105,937	110,341
Receivables:
Ending balance	7,369,084	7,040,072	7,369,084	7,040,072	7,275,284
Revolving charge accounts
Allowance for credit losses:
Beginning balance	7,345		8,519
Charge-offs	(447)		(4,685)		(49)
Recoveries	1		1
Provision (benefit)	1,749		4,814		(169)
Foreign currency translation and other	14		13		8,737
Ending balance	8,662		8,662		8,519
Receivables:
Ending balance	233,695		233,695		207,744
Wholesale.
Allowance for credit losses:
Beginning balance	6,685	9,724	6,152	6,211	6,211
Charge-offs		(4,631)		(4,631)	(4,631)
Recoveries	5	4	16	15	526
Provision (benefit)	(219)	395	304	3,886	4,099
Foreign currency translation and other	22	(25)	21	(14)	(53)
Ending balance	6,493	5,467	6,493	5,467	6,152
Receivables:
Ending balance	$ 4,430,693	$ 2,704,394	$ 4,430,693	$ 2,704,394	$ 3,383,804

RECEIVABLES - Aging of Receivab

RECEIVABLES - Aging of Receivables (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Financing receivable, recorded investment
Restricted receivables	$ 9,104,049	$ 8,343,621
Minimum account delinquency period for an account to be classified as past due	30 days	30 days
Retail customer
Financing receivable, recorded investment
Total	$ 7,369,084	$ 7,275,284
Charge-offs
Total	10,970
Retail customer \| Total Past Due
Financing receivable, recorded investment
Total	80,800	85,866
Retail customer \| 31-60 Days Past Due
Financing receivable, recorded investment
Total	24,695	27,549
Retail customer \| 61-90 Days Past Due
Financing receivable, recorded investment
Total	10,171	6,347
Retail customer \| Greater than 90 Days
Financing receivable, recorded investment
Total	45,934	51,970
Retail customer \| Current
Financing receivable, recorded investment
Total	7,288,284	7,189,418
Retail customer \| United States
Financing receivable, recorded investment
Originated in current fiscal year	1,318,157	2,735,831
Originated in fiscal year before latest fiscal year	2,221,409	1,621,755
Originated two years before latest fiscal year	1,345,407	846,488
Originated three years before latest fiscal year	655,330	389,681
Originated four years before latest fiscal year	273,523	190,434
Originated five years before latest fiscal year	147,796	60,417
Total	5,961,622	5,844,606
Charge-offs
2023/2022	24
2022/2021	1,464
2021/2020	1,797
2020/2019	2,113
2019/2018	2,541
Prior to 2019/Prior to 2018	2,221
Total	10,160
Retail customer \| United States \| Total Past Due
Financing receivable, recorded investment
Originated in current fiscal year	940	7,584
Originated in fiscal year before latest fiscal year	13,244	11,580
Originated two years before latest fiscal year	11,644	38,498
Originated three years before latest fiscal year	36,470	7,513
Originated four years before latest fiscal year	4,412	3,537
Originated five years before latest fiscal year	5,643	5,851
Total	72,353	74,563
Retail customer \| United States \| 31-60 Days Past Due
Financing receivable, recorded investment
Originated in current fiscal year	904	6,258
Originated in fiscal year before latest fiscal year	7,807	6,610
Originated two years before latest fiscal year	6,668	4,490
Originated three years before latest fiscal year	3,390	2,365
Originated four years before latest fiscal year	1,896	1,579
Originated five years before latest fiscal year	751	765
Total	21,416	22,067
Retail customer \| United States \| 61-90 Days Past Due
Financing receivable, recorded investment
Originated in current fiscal year	36	976
Originated in fiscal year before latest fiscal year	3,524	1,269
Originated two years before latest fiscal year	2,685	1,503
Originated three years before latest fiscal year	1,110	1,034
Originated four years before latest fiscal year	542	465
Originated five years before latest fiscal year	628	131
Total	8,525	5,378
Retail customer \| United States \| Greater than 90 Days
Financing receivable, recorded investment
Originated in current fiscal year		350
Originated in fiscal year before latest fiscal year	1,913	3,701
Originated two years before latest fiscal year	2,291	32,505
Originated three years before latest fiscal year	31,970	4,114
Originated four years before latest fiscal year	1,974	1,493
Originated five years before latest fiscal year	4,264	4,955
Total	42,412	47,118
Retail customer \| United States \| Current
Financing receivable, recorded investment
Originated in current fiscal year	1,317,217	2,728,247
Originated in fiscal year before latest fiscal year	2,208,165	1,610,175
Originated two years before latest fiscal year	1,333,763	807,990
Originated three years before latest fiscal year	618,860	382,168
Originated four years before latest fiscal year	269,111	186,897
Originated five years before latest fiscal year	142,153	54,566
Total	5,889,269	5,770,043
Retail customer \| Canada
Financing receivable, recorded investment
Originated in current fiscal year	234,771	654,529
Originated in fiscal year before latest fiscal year	541,378	441,431
Originated two years before latest fiscal year	371,072	192,803
Originated three years before latest fiscal year	160,937	91,894
Originated four years before latest fiscal year	70,734	39,305
Originated five years before latest fiscal year	28,570	10,716
Total	1,407,462	1,430,678
Charge-offs
2022/2021	290
2021/2020	408
2020/2019	(299)
2019/2018	115
Prior to 2019/Prior to 2018	296
Total	810
Retail customer \| Canada \| Total Past Due
Financing receivable, recorded investment
Originated in current fiscal year		1,953
Originated in fiscal year before latest fiscal year	2,626	5,293
Originated two years before latest fiscal year	2,830	1,898
Originated three years before latest fiscal year	1,515	926
Originated four years before latest fiscal year	646	828
Originated five years before latest fiscal year	830	405
Total	8,447	11,303
Retail customer \| Canada \| 31-60 Days Past Due
Financing receivable, recorded investment
Originated in current fiscal year		1,544
Originated in fiscal year before latest fiscal year	1,502	2,420
Originated two years before latest fiscal year	956	810
Originated three years before latest fiscal year	654	197
Originated four years before latest fiscal year	41	388
Originated five years before latest fiscal year	126	123
Total	3,279	5,482
Retail customer \| Canada \| 61-90 Days Past Due
Financing receivable, recorded investment
Originated in current fiscal year		22
Originated in fiscal year before latest fiscal year	852	502
Originated two years before latest fiscal year	428	128
Originated three years before latest fiscal year	139	114
Originated four years before latest fiscal year	198	178
Originated five years before latest fiscal year	29	25
Total	1,646	969
Retail customer \| Canada \| Greater than 90 Days
Financing receivable, recorded investment
Originated in current fiscal year		387
Originated in fiscal year before latest fiscal year	272	2,371
Originated two years before latest fiscal year	1,446	960
Originated three years before latest fiscal year	722	615
Originated four years before latest fiscal year	407	262
Originated five years before latest fiscal year	675	257
Total	3,522	4,852
Retail customer \| Canada \| Current
Financing receivable, recorded investment
Originated in current fiscal year	234,771	652,576
Originated in fiscal year before latest fiscal year	538,752	436,138
Originated two years before latest fiscal year	368,242	190,905
Originated three years before latest fiscal year	159,422	90,968
Originated four years before latest fiscal year	70,088	38,477
Originated five years before latest fiscal year	27,740	10,311
Total	1,399,015	1,419,375
Wholesale.
Financing receivable, recorded investment
Total	4,430,693	3,383,804
Wholesale. \| Total Past Due
Financing receivable, recorded investment
Total	3	11
Wholesale. \| 31-60 Days Past Due
Financing receivable, recorded investment
Total		7
Wholesale. \| Greater than 90 Days
Financing receivable, recorded investment
Total	3	4
Wholesale. \| Current
Financing receivable, recorded investment
Total	4,430,690	3,383,793
Wholesale. \| United States
Financing receivable, recorded investment
Total	3,579,053	2,721,293
Wholesale. \| United States \| Total Past Due
Financing receivable, recorded investment
Total	3	11
Wholesale. \| United States \| 31-60 Days Past Due
Financing receivable, recorded investment
Total		7
Wholesale. \| United States \| Greater than 90 Days
Financing receivable, recorded investment
Total	3	4
Wholesale. \| United States \| Current
Financing receivable, recorded investment
Total	3,579,050	2,721,282
Wholesale. \| Canada
Financing receivable, recorded investment
Total	851,640	662,511
Wholesale. \| Canada \| Current
Financing receivable, recorded investment
Total	851,640	662,511
Revolving charge accounts
Financing receivable, recorded investment
Total	233,695	207,744
Charge-offs
Total	4,685
Revolving charge accounts \| Total Past Due
Financing receivable, recorded investment
Total	11,054	24,940
Revolving charge accounts \| 31-60 Days Past Due
Financing receivable, recorded investment
Total	7,358	14,216
Revolving charge accounts \| 61-90 Days Past Due
Financing receivable, recorded investment
Total	2,421	10,724
Revolving charge accounts \| Greater than 90 Days
Financing receivable, recorded investment
Total	1,275
Revolving charge accounts \| Current
Financing receivable, recorded investment
Total	222,641	182,804
Revolving charge accounts \| United States
Financing receivable, recorded investment
Total	216,320	192,795
Charge-offs
Total	4,425
Revolving charge accounts \| United States \| Total Past Due
Financing receivable, recorded investment
Total	10,386	22,944
Revolving charge accounts \| United States \| 31-60 Days Past Due
Financing receivable, recorded investment
Total	6,933	12,979
Revolving charge accounts \| United States \| 61-90 Days Past Due
Financing receivable, recorded investment
Total	2,267	9,965
Revolving charge accounts \| United States \| Greater than 90 Days
Financing receivable, recorded investment
Total	1,186
Revolving charge accounts \| United States \| Current
Financing receivable, recorded investment
Total	205,934	169,851
Revolving charge accounts \| Canada
Financing receivable, recorded investment
Total	17,375	14,949
Charge-offs
Total	260
Revolving charge accounts \| Canada \| Total Past Due
Financing receivable, recorded investment
Total	668	1,996
Revolving charge accounts \| Canada \| 31-60 Days Past Due
Financing receivable, recorded investment
Total	425	1,237
Revolving charge accounts \| Canada \| 61-90 Days Past Due
Financing receivable, recorded investment
Total	154	759
Revolving charge accounts \| Canada \| Greater than 90 Days
Financing receivable, recorded investment
Total	89
Revolving charge accounts \| Canada \| Current
Financing receivable, recorded investment
Total	$ 16,707	$ 12,953

RECEIVABLES - Impaired Receivab

RECEIVABLES - Impaired Receivables (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Financing receivable, impaired
Accrued interest	$ 71,560	$ 57,831
Delinquency period of accounts considered for recognition of income	90 days	90 days
Retail customer \| United States
Financing receivable, impaired
Receivables on nonaccrual status	$ 43,536	$ 48,690
Retail customer \| Canada
Financing receivable, impaired
Receivables on nonaccrual status	4,219	4,852
Wholesale.
Financing receivable, impaired
Receivables on nonaccrual status	$ 0	0
Revolving charge accounts
Financing receivable, impaired
Receivables on nonaccrual status		$ 0

EQUIPMENT ON OPERATING LEASES_2

EQUIPMENT ON OPERATING LEASES (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Lease payments owed to the company for equipment under non-cancelable operating leases
Deferred operating lease subsidy	$ 73,676
2023	108,068
2024	166,654
2025	103,942
2026	44,308
2027 and thereafter	18,228
Total lease payments	$ 441,200

CREDIT FACILITIES AND DEBT (Det

CREDIT FACILITIES AND DEBT (Details) $ in Thousands, $ in Thousands	Apr. 10, 2023 USD ($)	Jun. 30, 2023 USD ($)	May 24, 2023 USD ($)	May 24, 2023 CAD ($)	Apr. 25, 2023 USD ($)	Apr. 24, 2023 USD ($)
Unsecured Facilities \| Revolving credit facilities
Debt
Maximum borrowing capacity		$ 685,635
Line of credit, outstanding amount		285,635
Unsecured Facilities \| Commercial paper
Debt
Short-Term Outstanding		$ 269,107
Secured Debt \| Other ABS Financing
Debt
Debt amount						$ 412,233
Secured Debt \| Amortizing Retail Term ABS
Debt
Debt amount			$ 337,981	$ 459,650	$ 817,010
Unsecured Senior Notes \| 4.550 % unsecured notes, due 2028 \| CNH Industrial Capital LLC
Debt
Debt issued	$ 600,000
Interest rate (as a percent)	4.55%
Issue price of debt (as a percent)	98.857%

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended		6 Months Ended
INCOME TAXES (Details)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Reconciliation of statutory and effective income tax rate
Effective tax rate (as a percent)	20.30%	24.20%	21.90%	23.80%

FINANCIAL INSTRUMENTS - General

FINANCIAL INSTRUMENTS - General Information (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Interest Rate Derivatives
Maximum length of time of interest rate derivative instruments designated in cash flow hedge relationships	63 months
After-tax losses deferred in accumulated other comprehensive income (loss) that will be recognized in interest expense over the next 12 months	$ (2,156)

FINANCIAL INSTRUMENTS - Fair Ma

FINANCIAL INSTRUMENTS - Fair Market Value of Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Fair market value of derivatives
Derivative assets designated as hedging instruments, classified in other assets	$ 2,411		$ 2,411		$ 3,597
Derivative liabilities designated as hedging instruments, classified in accounts payable and other accrued liabilities	46,103		46,103		42,936
Interest rate derivatives, derivative assets not designated as hedging instruments, classified in other assets	34,330		34,330		27,862
Foreign exchange contracts, derivatives not designated as hedging instruments, classified in other assets	2,967		2,967		4,116
Derivative assets not designated as hedging instruments, classified in other assets	37,297		37,297		31,978
Interest rate derivatives, derivative not designated as hedging instruments, classified in accounts payable and other accrued liabilities	34,330		34,330		27,862
Foreign exchange contracts, derivatives not designated as hedging instruments, classified in accounts payable and other accrued liabilities	321		321		435
Derivative liabilities not designated as hedging instruments, classified in accounts payable and other accrued liabilities	34,651		34,651		28,297
Cash Flow Hedges, Recognized in accumulated other comprehensive income (loss), Interest rate derivatives	(56)	$ 8,783	(2,621)	$ 14,082
Cash Flow Hedges, Reclassified from accumulated other comprehensive Income (loss), Interest rate derivatives - Interest expense to third parties	400	3,539	1,062	215
Foreign exchange contracts, other expenses, net, not designated as hedges	2,220	$ (3,710)	2,251	(863)
Interest rate derivatives
Fair market value of derivatives
Total notional amount of interest rate derivatives	$ 3,591,246		3,591,246		$ 3,628,725
Seven-month average notional amounts of interest rate derivatives			$ 3,687,713	$ 3,797,375

FINANCIAL INSTRUMENTS - Items M

FINANCIAL INSTRUMENTS - Items Measured at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets
Foreign exchange contracts	$ 2,967	$ 4,116
Liabilities
Foreign exchange contracts	321	435
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	36,741	31,459
Foreign exchange contracts	2,967	4,116
Total assets	39,708	35,575
Liabilities
Interest rate derivatives	80,433	70,798
Foreign exchange contracts	321	435
Total liabilities	$ 80,754	$ 71,233

FINANCIAL INSTRUMENTS - Carryin

FINANCIAL INSTRUMENTS - Carrying Amount and Estimated Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financial Instruments Not Carried at Fair Value
Receivables	$ 11,918,352	$ 10,741,820
Long-term debt	6,914,753	6,387,135
Carrying Amount
Financial Instruments Not Carried at Fair Value
Receivables	11,918,352	10,741,820
Long-term debt	6,914,753	6,387,135
Estimated Fair Value
Financial Instruments Not Carried at Fair Value
Receivables	11,715,166	10,433,949
Long-term debt	$ 6,594,315	$ 6,032,997

GEOGRAPHICAL INFORMATION (Detai

GEOGRAPHICAL INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
GEOGRAPHICAL INFORMATION (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Geographical Information
Revenues	$ 247,114		$ 189,276		$ 475,632	$ 376,685
Interest expense	122,088		47,571		225,792	86,991
Net income	47,698	$ 46,301	59,894	$ 63,487	93,999	123,381
Depreciation and amortization	45,410		50,350		91,131	104,455
Expenditures for equipment on operating leases	124,530		124,296		227,809	246,514
Provision for credit losses	2,649		1,944		4,568	4,769	$ 11,241
Additional disclosures
Total assets	14,216,662				14,216,662		13,179,479
Managed receivables	12,033,472				12,033,472		10,866,832
Eliminations
Geographical Information
Revenues	(540)		(1,218)		(1,025)	(2,707)
Interest expense	(540)		(1,218)		(1,025)	(2,707)
Additional disclosures
Total assets	(180,020)				(180,020)		(216,656)
United States.
Geographical Information
Net income	35,823		47,280		72,082	97,967
Depreciation and amortization	32,432		37,874		65,261	79,431
Expenditures for equipment on operating leases	90,878		88,855		166,119	178,562
Provision for credit losses	3,279		804		6,438	5,199
Additional disclosures
Managed receivables	9,756,995				9,756,995		8,758,694
United States. \| Operating segment
Geographical Information
Revenues	197,024		146,628		379,919	296,464
Interest expense	101,441		38,046		187,093	69,763
Additional disclosures
Total assets	11,551,683				11,551,683		10,712,413
Canada.
Geographical Information
Net income	11,875		12,614		21,917	25,414
Depreciation and amortization	12,978		12,476		25,870	25,024
Expenditures for equipment on operating leases	33,652		35,441		61,690	67,952
Provision for credit losses	(630)		1,140		(1,870)	(430)
Additional disclosures
Managed receivables	2,276,477				2,276,477		2,108,138
Canada. \| Operating segment
Geographical Information
Revenues	50,630		43,866		96,738	82,928
Interest expense	21,187		$ 10,743		39,724	$ 19,935
Additional disclosures
Total assets	$ 2,844,999				$ 2,844,999		$ 2,683,722

RELATED-PARTY TRANSACTIONS (Det

RELATED-PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
RELATED-PARTY TRANSACTIONS
Revolving charge accounts	$ 9,996		$ 18,326
Total interest and other income from affiliates	95,569	$ 65,232	179,673	$ 127,539
Affiliated receivables	59,091		59,091		$ 53,509
Affiliated debt	262,405		262,405		341,531
Other information
Interest expense to related affiliates	4,985	1,366	13,433	1,699
Fees charged by affiliates	13,112	12,157	26,987	23,573
Accounts payable and other accrued liabilities payable to related parties	159,928		159,928		212,167
CNH Industrial North America
RELATED-PARTY TRANSACTIONS
Retail notes and finance leases	29,389	31,045	57,864	63,488
Operating lease	9,835	12,272	20,158	24,851
Revolving charge accounts	1,106		1,965
Wholesale	53,953	21,704	97,366	38,747
Lending funds	83	143	83	329
CNH Industrial America
RELATED-PARTY TRANSACTIONS
Affiliated receivables					10
Affiliated debt	44,092		44,092		100,195
CNH Industrial Canada Ltd.
RELATED-PARTY TRANSACTIONS
Affiliated debt	218,313		218,313		241,036
Banco CNH Industrial Capital Brazil
RELATED-PARTY TRANSACTIONS
Lending funds	779		1,417
Affiliated receivables	46,551		46,551		40,983
Other affiliates
RELATED-PARTY TRANSACTIONS
Lending funds	424	$ 68	820	$ 124
Affiliated receivables	$ 12,540		$ 12,540		12,516
Affiliated debt					$ 300

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Guarantees
Payment guarantees on the financial debt of various foreign financial services subsidiaries	$ 50,400
Wholesale and dealer financing
Guarantees
Total credit limit	6,186,068
Utilized	4,390,106
Not Utilized	1,795,962
Revolving charge accounts
Guarantees
Total credit limit	2,511,699
Utilized	234,403
Not Utilized	$ 2,277,296

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Unsecured Senior Notes - Subsequent event - 1.950 % unsecured notes due 2023 - CNH Industrial Capital LLC $ in Thousands	Jul. 03, 2023 USD ($)
Subsequent Events
Repayment of debt	$ 600,000
Interest rate (as a percent)	1.95%