Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2015shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Trading Symbol | CNHI |
Entity Registrant Name | CNH Industrial N.V. |
Entity Central Index Key | 1,567,094 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 1,362,048,989 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | |||
Net sales | $ 24,677 | $ 31,196 | $ 32,632 |
Finance and interest income | 1,235 | 1,359 | 1,204 |
Total Revenues | 25,912 | 32,555 | 33,836 |
Costs and Expenses | |||
Cost of goods sold | 20,357 | 25,534 | 26,551 |
Selling, general and administrative expenses | 2,317 | 2,925 | 3,094 |
Research and development expenses | 856 | 1,106 | 1,222 |
Restructuring expenses | 84 | 184 | 71 |
Interest expense | 1,106 | 1,318 | 1,196 |
Other, net | 625 | 399 | 328 |
Total Costs and Expenses | 25,345 | 31,466 | 32,462 |
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates | 567 | 1,089 | 1,374 |
Income taxes | 360 | 467 | 671 |
Equity in income of unconsolidated subsidiaries and affiliates | 41 | 86 | 125 |
Net income | 248 | 708 | 828 |
Net income (loss) attributable to noncontrolling interests | (5) | (2) | 151 |
Net income attributable to CNH Industrial N.V. | $ 253 | $ 710 | $ 677 |
Earnings per share attributable to common shareholders | |||
Basic | $ 0.19 | $ 0.52 | $ 0.54 |
Diluted | 0.19 | 0.52 | 0.54 |
Cash dividends declared per common share | $ 0.214 | $ 0.277 | $ 0.293 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 248 | $ 708 | $ 828 |
Other comprehensive income (loss), net of tax | |||
Unrealized gain (loss) on cash flow hedges | 120 | (166) | 94 |
Changes in retirement plans’ funded status | 158 | (282) | 87 |
Foreign currency translation | (359) | 125 | (510) |
Unrealized loss on available for sale securities | (1) | ||
Share of other comprehensive loss of entities using the equity method | (47) | (44) | (23) |
Other comprehensive loss, net of tax | (128) | (367) | (353) |
Comprehensive income | 120 | 341 | 475 |
Less: comprehensive income (loss) attributable to noncontrolling interests | (7) | (6) | 132 |
Comprehensive income attributable to CNH Industrial N.V. | $ 127 | $ 347 | $ 343 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and cash equivalents | $ 5,384 | $ 5,163 |
Restricted cash | 927 | 978 |
Trade receivables, net | 580 | 1,054 |
Financing receivables, net | 19,001 | 21,472 |
Inventories, net | 5,690 | 7,008 |
Property, plant and equipment, net | 6,481 | 6,865 |
Investments in unconsolidated subsidiaries and affiliates | 527 | 605 |
Equipment under operating leases | 1,835 | 1,518 |
Goodwill | 2,447 | 2,484 |
Other intangible assets, net | 810 | 850 |
Deferred tax assets | 1,250 | 1,747 |
Derivative assets | 211 | 205 |
Other assets | 1,603 | 1,964 |
TOTAL ASSETS | 46,746 | 51,913 |
Debt | 26,388 | 29,594 |
Trade payables | 5,342 | 5,982 |
Deferred tax liabilities | 334 | 452 |
Pension, postretirement and other postemployment benefits | 2,282 | 2,614 |
Derivative liabilities | 69 | 235 |
Other liabilities | 7,470 | 8,059 |
Total Liabilities | 41,885 | 46,936 |
Redeemable noncontrolling interest | 18 | 16 |
Common shares, € 0.01, par value; outstanding 1,362,048,989 common shares and 413,249,206 special voting shares in 2015; and outstanding 1,355,319,640 common shares and 415,399,503 special voting shares in 2014 | 25 | 25 |
Additional paid in capital | 4,399 | 4,342 |
Retained earnings | 2,241 | 2,291 |
Accumulated other comprehensive loss | (1,863) | (1,736) |
Noncontrolling interests | 41 | 39 |
Equity | 4,843 | 4,961 |
TOTAL EQUITY AND LIABILITIES | 46,746 | 51,913 |
Variable Interest Entities [Member] | ||
Restricted cash | 849 | 971 |
Financing receivables, net | 11,361 | 11,563 |
Equipment under operating leases | 83 | |
TOTAL ASSETS | 12,210 | 12,617 |
Debt | 11,592 | 11,962 |
Total Liabilities | $ 11,592 | $ 11,962 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - € / shares | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Statement Of Financial Position [Abstract] | ||||
Common shares, par value | € 0.01 | € 0.01 | € 0.01 | |
Special voting shares, shares outstanding | 413,249,206 | 415,399,503 | 468,994,386 | |
Common shares, shares outstanding | 1,362,048,989 | 1,355,319,640 | 1,350,073,530 | 1,348,867,772 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net income | $ 248 | $ 708 | $ 828 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Depreciation and amortization expense, net of assets under operating lease and assets sold under buy-back commitments | 699 | 731 | 690 |
Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments | 447 | 409 | 413 |
(Gain) loss from disposal of assets | (2) | 8 | 25 |
Undistributed income (loss) of unconsolidated subsidiaries | 40 | 3 | (44) |
Other non-cash items | 331 | 254 | 196 |
Changes in operating assets and liabilities: | |||
Provisions | (48) | 121 | 107 |
Deferred income taxes | 119 | (39) | (59) |
Trade and financing receivables related to sales, net | 279 | (810) | (658) |
Inventories, net | 473 | (172) | (1,205) |
Trade payables | (161) | (862) | 963 |
Other assets and liabilities | 357 | 330 | 266 |
Net cash provided by operating activities | 2,782 | 681 | 1,522 |
Investing activities: | |||
Additions to retail receivables | (4,498) | (6,467) | (7,511) |
Collections of retail receivables | 5,146 | 6,506 | 6,043 |
Proceeds from the sale of assets, net of assets under operating leases and assets sold under buy-back commitments | 11 | 25 | 7 |
Proceeds from the sale of assets previously under operating leases and assets sold under buy-back commitments | 726 | 577 | 466 |
Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and assets sold under buy-back commitments | (656) | (1,022) | (1,227) |
Expenditures for assets under operating leases and assets sold under buy-back commitments | (1,851) | (1,814) | (1,439) |
Other | 190 | 236 | (127) |
Net cash used by investing activities | (932) | (1,959) | (3,788) |
Financing activities: | |||
Proceeds from long-term debt | 9,927 | 17,377 | 12,464 |
Payments of long-term debt | (10,668) | (15,323) | (9,988) |
Net increase (decrease) in other financial liabilities | 84 | (325) | 514 |
Dividends paid | (297) | (382) | (368) |
Other | 23 | 18 | (6) |
Net cash provided (used) by financing activities | (931) | 1,365 | 2,616 |
Effect of foreign exchange rate changes on cash and cash equivalents | (698) | (491) | 18 |
Increase (decrease) in cash and cash equivalents | 221 | (404) | 368 |
Cash and cash equivalents, beginning of year | 5,163 | 5,567 | 5,199 |
Cash and cash equivalents, end of year | $ 5,384 | $ 5,163 | $ 5,567 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common Shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests [Member] | Redeemable Noncontrolling Interest [Member] |
Beginning balance at Dec. 31, 2012 | $ 4,825 | $ 2,565 | $ 577 | $ 1,693 | $ (911) | $ 901 | |
Beginning balance at Dec. 31, 2012 | $ 7 | ||||||
Net income (loss), excluding redeemable non controlling interests | 821 | 677 | 144 | ||||
Net income (loss), redeemable non controlling interests | 7 | ||||||
Other comprehensive loss, net of tax | (353) | (334) | (19) | ||||
Dividend paid | (366) | (366) | (2) | ||||
Increase in noncontrolling interest due to change in ownership | 20 | (44) | 64 | ||||
Share-based compensation expense | 21 | 29 | (8) | ||||
Other changes | (13) | (30) | 17 | ||||
Impact from the merger | |||||||
—Cancellation of Fiat Industrial S.p.A. share capital and issuance of CNH Industrial N.V. share capital | (2,541) | 2,541 | |||||
—Purchase of ownership interests in CNH Global N.V. from non-controlling interests | 1 | 1,180 | (128) | (1,053) | |||
Ending balance at Dec. 31, 2013 | 4,955 | 25 | 4,283 | 1,966 | (1,373) | 54 | |
Ending balance at Dec. 31, 2013 | 12 | ||||||
Net income (loss), excluding redeemable non controlling interests | 700 | 710 | (10) | ||||
Net income (loss), redeemable non controlling interests | 8 | ||||||
Other comprehensive loss, net of tax | (367) | (363) | (4) | ||||
Dividend paid | (378) | (375) | (3) | (4) | |||
Share-based compensation expense | 49 | 49 | |||||
Issuance of common shares | 10 | 10 | |||||
Other changes | (8) | (10) | 2 | ||||
Ending balance at Dec. 31, 2014 | 4,961 | 25 | 4,342 | 2,291 | (1,736) | 39 | |
Ending balance at Dec. 31, 2014 | 16 | 16 | |||||
Net income (loss), excluding redeemable non controlling interests | 241 | 253 | (12) | ||||
Net income (loss), redeemable non controlling interests | 7 | ||||||
Other comprehensive loss, net of tax | (128) | (127) | (1) | ||||
Dividend paid | (292) | (291) | (1) | (5) | |||
Share-based compensation expense | 49 | 49 | |||||
Capital increase | 24 | 8 | 16 | ||||
Other changes | (12) | (12) | |||||
Ending balance at Dec. 31, 2015 | 4,843 | $ 25 | $ 4,399 | $ 2,241 | $ (1,863) | $ 41 | |
Ending balance at Dec. 31, 2015 | $ 18 | $ 18 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of Operations | Note 1: Nature of Operations CNH Industrial N.V. (“CNH Industrial” or the “Company”) is incorporated in, and under the laws of, the Netherlands. CNH Industrial is a leading company in the capital goods sector that, through its various businesses, designs, produces and sells agricultural equipment and construction equipment, trucks, commercial vehicles, buses and specialty vehicles for firefighting, defense and other uses, as well as engines, transmissions and axles for those vehicles and engines for marine and power generation applications (see “Note 19: Segment Reporting”). In addition, CNH Industrial’s Financial Services segment offers an array of financial products and services, including retail financing for the purchase or lease of new and used CNH Industrial and other manufacturers’ products and other retail financing programs and wholesale financing to dealers. The Company was formed as a result of the business combination transaction between Fiat Industrial S.p.A. (“Fiat Industrial” and, together with its subsidiaries, the “Fiat Industrial Group”) and CNH Global N.V. (“CNH Global”). The deeds of merger for the mergers of Fiat Industrial and CNH Global with and into CNH Industrial (the “Merger”) were executed, respectively, on September 27 and 28, 2013. The effective date of the Merger was September 29, 2013. A primary objective of the Merger was to simplify the capital structure of Fiat Industrial (CNH Industrial subsequent to the Merger) by creating a single class of liquid stock listed on the NYSE and on the MTA. The principal steps in the Merger were: · the cross-border merger of Fiat Netherlands Holding N.V. (“FNH”) with and into Fiat Industrial (the “FNH Merger”), which occurred on August 1, 2013; · the cross-border reverse merger of Fiat Industrial with and into FI CBM Holdings N.V. (now known as CNH Industrial) (the “FI Merger”); and · the Dutch merger of CNH Global with and into FI CBM Holdings N.V. (the “CNH Merger”). All the companies (i.e., Fiat Industrial, FI CBM Holdings N.V. (now known as CNH Industrial), FNH and CNH Global) involved in the Merger were part of Fiat Industrial. In particular: · (i) FNH was a wholly-owned direct subsidiary of Fiat Industrial; · (ii) FI CBM Holdings N.V. (now known as CNH Industrial) was a wholly-owned direct subsidiary of Fiat Industrial; and · (iii) CNH Global was an indirect subsidiary of Fiat Industrial (controlled through FNH which owned approximately 87% of CNH Global’s capital stock). In connection with the FI Merger, Fiat Industrial shareholders received one newly issued common share in CNH Industrial (having a nominal value of €0.01 each) for each ordinary share held in Fiat Industrial (having a nominal value of €1.57 each). In connection with the CNH Merger, CNH Global shareholders received 3.828 newly issued CNH Industrial common shares (having a nominal value of €0.01 each) for each common share held in CNH Global (having a nominal value of €2.25 each). Prior to the Merger, Fiat Industrial owned approximately 87% of CNH Global’s outstanding common shares through FNH. As the Merger represents a “business combination involving entities or businesses under common control”, it is outside the scope of application of Accounting Standards Codification 805— Business Combinations On January 1, 2011, Fiat S.p.A. (which effective October 12, 2014 was merged into Fiat Chrysler Automobiles N.V. or “FCA”) effected a “demerger” under Article 2506 of the Italian Civil Code (the “Demerger”). Pursuant to the Demerger, Fiat transferred its ownership interest in FNH to a new holding company, Fiat Industrial, including Fiat’s indirect ownership of CNH Global, as well as Fiat’s truck and commercial vehicles business and its industrial and marine powertrain business. Consequently, as of January 1, 2011, CNH Global became a subsidiary of Fiat Industrial. In connection with the Demerger, shareholders of Fiat received shares of capital stock of Fiat Industrial. Accordingly, as of January 1, 2011, Fiat Industrial owned approximately 89% of CNH Global’s outstanding common shares through FNH. Fiat Industrial was a corporation organized under the laws of the Republic of Italy whose stock was traded on the Milan stock exchange. Following the Merger between Fiat Industrial and CNH Global, the Company realigned its reportable segments reflecting the five businesses now directly managed by CNH Industrial N.V., consisting of: (i) Agricultural Equipment, which designs, produces and sells agricultural equipment (ii) Construction Equipment, which designs, produces and sells construction equipment (iii) Commercial Vehicles, which designs, produces and sell trucks, commercial vehicles, buses, and specialty vehicles (iv) Powertrain, which produces and sells engines, transmissions and axles for those vehicles and engines for marine and power generation applications; and (v) Financial Services, which provides financial services to the customers of our products. The Company’s worldwide agricultural equipment, construction equipment, commercial vehicles, powertrain operations as well as corporate functions are collectively referred to as “Industrial Activities”. F-1 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2: Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation CNH Industrial has prepared the accompanying consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include CNH Industrial N.V. and its consolidated subsidiaries. The consolidated financial statements are expressed in U.S. dollars and, unless otherwise indicated, all financial data set forth in these consolidated financial statements are expressed in U.S. dollars. The consolidated financial statements include the accounts of CNH Industrial’s subsidiaries in which CNH Industrial 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 an entity or based on CNH Industrial’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. Investments in unconsolidated subsidiaries and affiliates are accounted for using the equity method when CNH Industrial does not have a controlling interest, but exercises significant influence. Under this method, the investment is initially recorded at cost and is increased or decreased by CNH Industrial’s proportionate share of the entity’s respective net income or loss. Dividends received from these entities reduce the carrying value of the investments. Business Combinations Business combinations are accounted for by applying the acquisition method. Under this method, the consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred and liabilities assumed by the Company and the equity interests issued in exchange for control of the acquiree. Acquisition-related costs are generally recognized in profit or loss as incurred. On November 26, 2014, the Company completed the acquisition of substantially all of the assets of Miller-St. Nazianz, Inc. (“Miller”) for a total consideration of $106 million. The acquisition was funded using existing cash balances. Miller is a leading manufacturer of precision spraying equipment. The results of the acquired business for the period from the acquisition date are included in the accompanying consolidated financial statements and are reported in the Agricultural Equipment segment. Pro forma results of operations related to this acquisition have not been presented because they are not material to the Company’s consolidated statements of operations. Of the $106 million purchase price, $12 million was attributable to accounts receivable, $18 million to inventory, $16 million to property, plant, and equipment, $8 million to goodwill, $62 million to other intangible assets and $10 million to liabilities assumed. For the intangible assets acquired, the dealer network has a useful life of 20 years, trademarks have a useful life of 3 years, the order backlog has a useful life of 1 year, the patent portfolio has a useful life of 10 years, and developed technology has a useful life of 10 years. Goodwill generated from the business acquisition is primarily attributable to access to Miller technology and expected synergies from geographic and network expansion, utilization of Powertrain engines in Miller sprayers and cost savings as a result of increased purchasing power and operational synergies. Goodwill of $8 million was deductible for tax purposes. There were no significant business combinations in 2015. Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and reported amounts of revenues and expenses. Significant estimates in these consolidated financial statements include the realizable value of property, plant and equipment, goodwill and other intangibles; residual values of equipment on operating leases; allowance for credit losses; tax contingencies; liabilities for warranties; sales allowances; and assets and obligations related to employee benefits. Revenue Recognition Industrial Activities record sales of equipment and replacement parts when title and all risks of ownership have transferred to the independent dealer or other customer according to the terms of sale, generally upon shipment or delivery of goods. Revenue for certain transactions is recognized when the special order goods are available for a limited pickup period when requested in advance by a qualifying customer and risks and rewards of ownership have transferred. Dealers may not return equipment while the applicable dealer contract remains in place. Replacement parts may be returned on a limited basis. In the U.S. and Canada, if a dealer contract is terminated for any reason, CNH Industrial may be obligated to repurchase new equipment from the dealer. For all sales, no significant uncertainty exists surrounding the purchaser’s obligation to pay for the equipment and replacement parts. CNH Industrial records appropriate allowance for credit losses and anticipated returns as necessary. Receivables are due upon the earlier of payment terms discussed below or sale to the retail customer. Fixed payment schedules exist for all sales to dealers, but payment terms vary by geographic market and product line. In connection with these payment terms, CNH Industrial offers wholesale financing to many of its dealers including “interest-free” financing for specified periods of time which also vary by geographic market and product line. Interest is charged to dealers after the end of the “interest-free” period. Sales to dealers that do not qualify for an “interest-free” period are generally subject to payment terms of 30 days or less. New vehicle sales with a buy-back commitment are not recognized at the time of delivery but are accounted for as operating leases. More specifically, vehicles sold with a buy-back commitment by Commercial Vehicles are accounted for as property, plant and equipment because agreements usually have a long-term buy-back commitment. The difference between the carrying value (corresponding to the manufacturing cost) and the estimated resale value (net of refurbishing costs) at the end of the buy-back period is depreciated on a straight-line basis over the same period. The initial sale price received is recognized as an advance payment in “Other liabilities”. The difference between the initial sale price and the buy-back price is recognized as rental revenue on a straight-line basis over the term of the operating lease. Revenues from the sale of extended warranties and maintenance contracts are recognized over the life of the contract and matched to related costs. Given their nature, profit on these contracts is recognized only when all associated costs can be estimated reliably, which is generally in the final period of the contractual term. In the event that estimated costs to fulfill the contract obligations exceed contract revenues, the estimated contract loss is recognized as soon as it is identified and recorded in “Other liabilities.” Shipping and other transportation costs are recorded in “Cost of goods sold.” Finance and interest income on retail and other notes receivables and finance leases is recorded using the effective yield method. Deferred costs on the origination of financing receivables are recognized as a reduction in finance revenue over the expected lives of the receivables using the effective yield method. Recognition of income on loans is suspended when management determines that collection of future income is not probable or when an account becomes 120 days delinquent, whichever occurs earlier. Interest accrual is resumed when and if the receivable becomes contractually current and collection becomes probable. Previously suspended income is recognized at that time. The Company applies cash received on nonaccrual financing receivables to first reduce any unrecognized interest and then the recorded investment and any other fees. 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. Charge-offs of principal amounts of receivables outstanding are deducted from the allowance at the point when it is determined to be probable that all amounts due will not be collected. Income from operating leases is recognized over the term of the lease on a straight-line basis. Sales Allowances CNH Industrial grants certain sales incentives to support sales of its products to retail customers. The expense for such incentive programs is recorded as a deduction in arriving at the net sales amount at the time of the sale of the product to the dealer. The expense for new programs is accrued at the inception of the program. The amounts of incentives to be paid are estimated based upon historical data, estimated future market demand for products, field inventory levels, announced incentive programs, competitive pricing and interest rates, among other things. Warranty Costs At the time a sale of equipment or parts to a dealer is recognized, CNH Industrial records the estimated future warranty costs for the product, primarily basic warranty coverage. CNH Industrial determines its total warranty liability by applying historical claims rate experience, while considering specific contractual terms, to the park of equipment that has been sold and is still under warranty. Campaigns are formal post-production modification programs approved by management. The liabilities for such programs are recognized when approved, based on an estimate of the total cost of the program. Advertising CNH Industrial expenses advertising costs as incurred. Advertising expense totaled $155 million, $218 million, and $241 million for the years ended December 31, 2015, 2014, and 2013, respectively. Research and Development Research and development costs are expensed as incurred. Borrowing Costs Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are capitalized and amortized over the useful life of the class of assets to which they refer. All other borrowing costs are expensed when incurred. Government Grants Government grants are recognized in the financial statements when there is reasonable assurance that the company concerned will comply with the conditions for receiving such grants and that the grants themselves will be received. Government grants are recognized as income over the periods necessary to match them with the related costs which they are intended to offset. The benefit of a government loan at a below-market rate of interest is treated as a government grant. The benefit of the below-market rate of interest is measured as the difference between the initial carrying amount of the loan (fair value plus transaction costs) and the proceeds received, and is accounted for in accordance with the policies already used for the recognition of government grants. Foreign Currency Certain of CNH Industrial’s non-U.S. subsidiaries and affiliates maintain their books and accounting records using local currency as the functional currency. Assets and liabilities of these non-U.S. subsidiaries are translated into U.S. dollars at period-end exchange rates, and net exchange gains or losses resulting from such translation are included in “Accumulated other comprehensive income (loss)” in the accompanying consolidated balance sheets. Income and expense accounts of these non-U.S. subsidiaries are translated at the average exchange rates for the period. Gains and losses from foreign currency transactions are included in net income in the period during which they arise. Net foreign currency transaction gains and losses are reflected in “Other, net” in the accompanying consolidated statements of operations. For the years ended December 31, 2015, 2014, and 2013, the Company recorded a net loss of $581 million, $340 million and $68 million, respectively. Included in the net loss in 2015 and 2014 was the re-measurement charges of $150 million and $71 million, respectively, on the Venezuelan bolivar fuerte (“Bs.F., or “bolivars”) rate described below, as well as a charge of $40 million due to the devaluation of net monetary assets of Argentinian subsidiaries. As described in “Note 14: Financial Instruments”, the Company uses hedging instruments to mitigate foreign currency risk. Net of the gains realized on foreign currency hedging instruments, the Company recorded a loss of $289 million, $132 million and $40 million for the three years ended December 31, 2015, 2014 and 2013, respectively. The functional currency of CNH Industrial’s Venezuelan subsidiary is the U.S. dollar. At the end of each period, CNH Industrial re-measures the net monetary assets of its Venezuelan subsidiary from the bolivars to the U.S. dollar at the rate it believes is legally available to the Company. As of December 31, 2015, there was a three-tiered exchange rate mechanism in Venezuela for exchanging bolivars into U.S. dollars: (1) the government-operated National Center of Foreign Commerce (CENCOEX), which has a fixed exchange rate of 6.3 bolivars per U.S. dollar mainly intended for the import of essential goods and services by designated industry sectors; (2) the auction-based Supplementary Foreign Currency Administration System (SICAD), which is intended for certain transactions, including foreign investments with a rate of 13.5 Bs.F. per U.S. dollar; and (3) an open market Marginal Foreign Exchange System (SIMADI), established in February 2015, which is available to companies and individuals to exchange foreign currency based on supply and demand, with a rate of 198.70 Bs.F. per U.S. dollar. Based on changes to the way Venezuela’s exchange rate mechanism operated, in 2014 CNH Industrial changed the Bs.F. rate used to re-measure its Venezuelan subsidiary’s financial statements in U.S. dollars. Effective March 31, 2014, CNH Industrial began using the exchange rate determined by U.S. dollar auctions conducted under the SICAD I. As a result, in the first quarter of 2014, CNH Industrial recorded a pre- and after-tax re-measurement charge of $64 million. Until June 30, 2015, CNH Industrial considered the SICAD rate the appropriate rate to use to convert the net monetary assets denominated in bolivars of its Venezuelan subsidiary. The SICAD exchange rate used at June 30, 2015 was 12.8 Bs.F. to the U.S. dollar, the latest rate at which, at the beginning of July 2015, bolivars were exchanged for U.S. dollars in a SICAD auction to which the Venezuelan subsidiary was admitted. During the third quarter of 2015, due to the progressively deteriorating economic conditions in Venezuela, and the limited availability of U.S. dollars, CNH Industrial determined that the SIMADI exchange rate is the most appropriate rate to use as of September 30, 2015. As a result, the Company adopted the SIMADI exchange rate in the third quarter to re-measure the net monetary assets denominated in bolivars and to convert revenues and expenses of its Venezuelan subsidiary adopting the SIMADI rate of Bs.F 199.42 per U.S. dollar. The Company now considers the SIMADI rate more reflective of the current economic environment in Venezuela and future transactions at the SICAD rate appear highly unlikely. As a result, CNH Industrial recorded in “Other, net” in the consolidated statement of operations, for the three and nine months ended September 30, 2015, a pre- and after-tax charge of $150 million primarily related to this re-measurement. In this context, the Company assessed the non-monetary assets of its Venezuelan operations for impairment, which resulted in no additional charges. Following the adoption of the SIMADI rate and related re-measurement, CNH Industrial’s results of operations in Venezuela in the six months ended December 31, 2015 generated less than 1% of both the Company’s net revenues and operating profit. As of December 31, 2015, the Company continues to control and therefore consolidate its Venezuelan operations. Despite the significant macroeconomic challenges in the country, CNH Industrial intends to continue its presence in the Venezuelan market for the foreseeable future. CNH Industrial continues to monitor the Venezuelan economic situation and is actively engaged in discussions with the Venezuelan government agencies concerning its ongoing business activities. If, in the future, it concludes that it no longer maintains control over its operations in Venezuela, CNH Industrial may need to de-consolidate its operations in Venezuela, which would result in a pre- and after-tax charge of approximately $130 million using the December 31, 2015 rate of 198.70 Bs.F. per U.S. dollar. On February 17, 2016, the Venezuelan government devalued its currency and introduced further changes to its exchange rate mechanism. See “Note 23: Subsequent Events” for further information. The functional currency of CNH Industrial’s Argentinian subsidiaries is the U.S. dollar. At the end of each period, CNH Industrial translates the net monetary assets of its Argentinian subsidiaries from the Argentine Peso into the U.S. dollar. During the month of December 2015, CNH Industrial recorded a $40 million charge following the devaluation of Argentine Peso. Additionally in December 2015, CNH Industrial subscribed $50 million bonds offered to importers by the Argentinian government in order to help importers settle their backlog of payments that had ballooned under the previous government's capital controls. These bonds yield a 6% interest rate and will be repaid in eight monthly installments between May 2016 and December 2016. These financial instruments should facilitate the settlement, by CNH Industrial’s Argentinian subsidiaries, of payables due to other non-Argentinian subsidiaries, having fixed the exchange rate at the bond issuance. Cash and Cash Equivalents Cash equivalents are highly liquid investments with an original maturity of three months or less. The carrying value of cash equivalents approximates fair value because of the short maturity of these investments. Restricted Cash Restricted cash includes principal and interest payments from retail notes, wholesale receivables and commercial revolving accounts receivable owned by the consolidated VIEs that are payable to the VIEs’ investors, and cash pledged as a credit enhancement to the same investors. These amounts are held by depository banks in order to comply with contractual agreements. Cash Flow Information All cash flows from the changes in trade accounts and notes receivable are classified as operating activities in the consolidated statements of cash flows as these receivables arise from sales to CNH Industrial’s customers. Cash flows from financing receivables that are related to sales to CNH Industrial’s dealers are also included in operating activities. CNH Industrial’s financing of receivables related to equipment sold by dealers is included in investing activities. CNH Industrial paid interest of $945 million, $944 million, and $1,013 million for the years ended December 31, 2015, 2014, and 2013, respectively. CNH Industrial paid taxes of $345 million, $744 million, and $521 million in 2015, 2014, and 2013, respectively. Receivables Receivables are recorded at amortized cost, net of allowances for credit losses and deferred fees and costs. Periodically, the Company sells or transfers retail notes, wholesale receivables and commercial revolving accounts receivable to funding facilities or in securitization transactions. In accordance with the accounting guidance regarding transfers of financial assets and the consolidation of VIEs, the retail notes, wholesale receivables and commercial revolving accounts receivable sold in securitizations do not qualify as sales and are recorded as secured borrowings with no gains or losses recognized at the time of securitization. Receivables associated with these securitization transactions and receivables that the Company has the ability and intent to hold for the foreseeable future are classified as held for investment. The substantial majority of our receivables, which include unrestricted receivables and restricted receivables for securitization investors, are classified as held for investment. Allowance for Credit Losses The allowance for credit losses is the Company’s estimate of probable losses on receivables owned by the Company and consists of two components, depending on whether the receivable has been individually identified as being impaired. The first component of the allowance for credit losses covers the receivables specifically reviewed by management for which the Company has determined it is probable that it will not collect all of the contractual principal and interest. Receivables are individually reviewed for impairment based on, among other items, amounts outstanding, days past due and prior collection history. These receivables are subject to impairment measurement at the loan level based either on the present value of expected future cash flows discounted at the receivables’ effective interest rate or the fair value of the collateral for collateral-dependent receivables. The second component of the allowance for credit losses covers all receivables that have not been individually reviewed for impairment. The allowance for these receivables is based on aggregated portfolio evaluations, generally by financial product. The allowance for retail 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 allowance for wholesale credit losses is based on loss forecast models that consider the same factors as the retail models plus dealer risk ratings. The loss forecast models are updated on a quarterly basis. In addition, qualitative factors that are not fully captured in the loss forecast models, including industry trends, and macroeconomic factors, are considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective and require a degree of management judgment. Charge-offs of principal amounts of receivables outstanding are deducted from the allowance at the point when it is determined to be probable that all amounts due will not be collected. Inventories Inventories are stated at the lower of cost or market. Cost is determined by the first-in, first-out method. The cost of finished goods and work-in-progress includes the cost of raw materials, other direct costs and production overheads. Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation. Expenditures for maintenance and repairs are expensed as incurred. Property, plant and equipment also include vehicles sold with a buy-back commitment, which are recognized under the method described in the paragraph Revenue Recognition Assets held under capital leases, which the Company assumes substantially all the risks and rewards of ownership, are recognized as assets of the Company at the lower of fair value or present value of the minimum lease payments. The corresponding liability to the lessor is included in the financial statements as debt. Depreciation is recorded on a straight-line basis over the estimated useful lives of the respective assets as follows: Category Lives Buildings and improvements 10 — 40 years Plant, machinery and equipment 5 — 25 years Other equipment 3 — 10 years CNH Industrial evaluates the recoverability of the carrying amount of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. If circumstances require a long-lived asset to be tested for possible impairment, CNH Industrial compares the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If the carrying amount of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Equipment on Operating Leases Financial Services purchases leases and equipment from CNH Industrial dealers and other independent third parties that have leased equipment to retail customers under operating leases. Financial Services’ investment in operating leases is based on the purchase price paid for the equipment. Income from these operating leases is recognized over the term of the lease. The equipment is depreciated on a straight-line basis over the term of the lease to the estimated residual value at lease termination, which is estimated at the inception of the lease. Realization of the residual values is dependent on Financial Services’ future ability to re-market the equipment under then prevailing market conditions. Model changes and updates, as well as market strength and product acceptance, are monitored and adjustments are made to residual values in accordance with the significance of any such changes. Management believes that the estimated residual values are realizable. Expenditures for maintenance and repairs of the applicable equipment are the responsibility of the lessee. Equipment returned to the Company upon termination of leases and held for subsequent sale or lease is recorded in inventory at the lower of net book value or estimated fair value of the equipment, less cost to sell, and is not depreciated. Goodwill and Other Intangibles Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired. Goodwill and indefinite-lived intangible assets are reviewed for impairment at least annually. During 2015 and 2014, the Company performed its annual impairment review as of December 31 and concluded that there was no impairment in either year. Other intangibles consist primarily of acquired dealer networks, trademarks, product drawings, patents, and software. Other intangibles with indefinite lives principally consist of acquired trademarks which have no legal, regulatory, contractual, competitive, economic, or other factor that limits their useful life. Intangible assets with an indefinite useful life are not amortized. Other intangible assets with definite lives are being amortized on a straight-line basis over 5 to 25 years. Reference is made to “Note 8: Goodwill and Other Intangibles” for further information regarding goodwill and other intangible assets. Income Taxes The provision for income taxes is determined using the asset and liability method. CNH Industrial recognizes a current tax liability or asset for the estimated taxes payable or refundable on tax returns for the current year and tax contingencies estimated to be settled with taxing authorities within one year. A deferred tax liability or asset is recognized for the estimated future tax effects attributable to temporary differences and tax loss carry forwards. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized based on available evidence. Retirement and Postemployment Benefits CNH Industrial sponsors numerous defined benefit and defined contribution pension plans, the assets of which are held in separate trustee-administered funds. The pension plans are funded by payments from CNH Industrial. The cost of providing defined benefit pension and other postretirement benefits is calculated based upon actuarial valuations. The liability for termination indemnities is accrued in accordance with labor legislation in each country where such benefits are required. CNH Industrial contributions to defined contribution plans are charged to the income statement during the period of the employee’s service. Derivatives CNH Industrial’s policy is to enter into derivative transactions to manage exposures that arise in the normal course of business and not for trading or speculative purposes. CNH Industrial records derivative financial instruments in the consolidated balance sheets as either an asset or a liability measured at fair value. The fair value of CNH Industrial’s foreign exchange derivatives is based on quoted market exchange rates, adjusted for the respective interest rate differentials (premiums or discounts). The fair value of CNH Industrial’s interest rate derivatives is based on discounting expected cash flows, using market interest rates, over the remaining term of the instrument. Changes in the fair value of derivative financial instruments are recognized in current income unless specific hedge accounting criteria are met. For derivative financial instruments designated to hedge exposure to changes in the fair value of a recognized asset or liability, the gain or loss is recognized in income in the period of change together with the offsetting loss or gain on the related hedged item. For derivative financial instruments designated to hedge exposure to variable cash flows of a forecasted transaction, the effective portion of the derivative financial instrument’s gain or loss is initially reported in other comprehensive income (loss) and is subsequently reclassified into income when the forecasted transaction affects income. The ineffective portion of the gain or loss is recorded in income immediately. For derivative financial instruments that are not designated as hedges but held as economic hedges, the gain or loss is recognized immediately in income. For derivative financial instruments designated as hedges, CNH Industrial formally documents the hedging relationship to the hedged item and its risk management strategy for all derivatives designated as hedges. This includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities contained in the consolidated balance sheets and linking cash flow hedges to specific forecasted transactions or variability of cash flow. CNH Industrial assesses the effectiveness of its hedging instruments both at inception and on an ongoing basis. If a derivative is determined not to be highly effective as a hedge, or the underlying hedged transaction is no longer probable of occurring, or the derivative is terminated, the hedge accounting described above is discontinued and the derivative is marked to fair value and recorded in income through the remainder of its term. Reference is made to “Note 14: Financial Instruments,” for further information regarding CNH Industrial’s use of derivative financial instruments. Share-Based Compensation Plans CNH Industrial recognizes all share-based compensation as an expense based on the fair value of each award on the grant date. CNH Industrial recognizes share-based compensation costs on a straight-line basis over the requisite service period for each separately vesting portion of an award. Earnings per Share Basic earnings per share is based on the weighted average number of shares outstanding during each period. Diluted earnings per share is based on the weighted average number of shares and dilutive share equivalents outstanding during each period. Unvested performance-based awards are considered outstanding and included in the computation of diluted earnings per share based on the number of shares that would vest if the end of the reporting period were the end of the contingency period. New Accounting Pronouncements Adopted Comprehensive Income In February 2013, the Financial Accounting Standards Boar |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Receivables | Note 3: Receivables Trade Receivables, net As of December 31, 2015 and 2014, the Company had trade receivables of $580 million and $1,054 million, respectively. Trade receivables are shown net of allowances for doubtful accounts of $174 million and $207 million at December 31, 2015 and 2014 respectively. Trade accounts have significant concentrations of credit risk in the Agricultural Equipment, Construction Equipment and Commercial Vehicles segments. On a geographic basis, there is not a disproportionate concentration of credit risk in any area. The Industrial Activities businesses sell a significant portion of their trade receivables to Financial Services and provide compensation to Financial Services at approximate market interest rates. Financing Receivables, net A summary of financing receivables included in the consolidated balance sheets as of December 31, 2015 and 2014 is as follows: 2015 2014 (in millions) Retail $ 10,344 $ 11,978 Wholesale 8,611 9,400 Other 46 94 Total $ 19,001 $ 21,472 CNH Industrial provides and administers financing for retail purchases of new and used equipment sold through its dealer network. The terms of retail and other notes and finance leases generally range from two to six years, and interest rates on retail and other notes and finance leases vary depending on prevailing market interest rates and certain incentive programs offered by Industrial Activities. Wholesale receivables arise primarily from the sale of goods to dealers and distributors and, to a lesser extent, the financing of dealer operations. Under the standard terms of the wholesale receivable agreements, these receivables typically have “interest-free” periods of up to twelve months and stated original maturities of up to twenty-four months, with repayment accelerated upon the sale of the underlying equipment by the dealer. During the “interest free” period, Financial Services is compensated by Industrial Activities for the difference between market interest rates and the amount paid by the dealer. After the expiration of any “interest-free” period, interest is charged to dealers on outstanding balances until CNH Industrial receives payment in full. The “interest-free” periods are determined based on the type of equipment sold and the time of year of the sale. Interest rates are set based on market factors and based on Euribor or the equivalent financial market rate (e.g. FHBR, Finance House Base Rate for UK). CNH Industrial evaluates and assesses dealers on an ongoing basis as to their credit worthiness. CNH Industrial may be obligated to repurchase the dealer’s equipment upon cancellation or termination of the dealer’s contract for such causes as change in ownership, closeout of the business, or default. There were no significant losses in 2015, 2014 or 2013 relating to the termination of dealer contracts. Financing receivables generally have significant concentrations of credit risk in the agriculture, construction and truck industries. On a geographic basis, there is not a disproportionate concentration of credit risk in any area. The Company typically retains as collateral a security interest in the equipment associated with retail notes, wholesale notes and finance leases. As part of our overall funding strategy, the Company periodically transfers certain receivables into VIEs that are special purposes entities (“SPEs”) as part of its asset-back securitization program and are not available to the Company’s general creditors. Please see the securitization discussion at the end of this footnote. Contractual maturities of financing receivables as of December 31, 2015 are as follows: Amount (in millions) 2016 $ 11,475 2017 2,895 2018 2,209 2019 1,377 2020 781 2021 and thereafter 264 Total $ 19,001 It has been the Company’s experience that substantial portions of retail receivables are repaid before their contractual maturity dates. As a result, the above table should not be regarded as a forecast of future cash collections. Past due balances of financing receivables still accruing finance income represent the total balance held (principal plus accrued interest) with any payment amounts 30 days or more past the contractual payment due date. Non-performing financing receivables represent loans for which the Company has ceased accruing finance income. These receivables are generally 120 days delinquent. Finance income for non-performing receivables is recognized on a cash basis. Accrual of finance income is resumed when the receivable becomes contractually current and collections are reasonably assured. The aging of financing receivables as of December 31, 2015 and 2014 is as follows (in millions): 2015 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Performing Non Performing Total Retail NAFTA $ 17 $ — $ — $ 17 $ 7,869 $ 7,886 $ 36 $ 7,922 EMEA — — — — 572 572 1 573 LATAM 6 — — 6 1,286 1,292 44 1,336 APAC 1 3 — 4 509 513 — 513 Total Retail $ 24 $ 3 $ — $ 27 $ 10,236 $ 10,263 $ 81 $ 10,344 Wholesale NAFTA $ — $ — $ — $ — $ 3,656 $ 3,656 $ 79 $ 3,735 EMEA 33 2 — 35 3,613 3,648 26 3,674 LATAM 3 — — 3 595 598 4 602 APAC 6 4 26 36 518 554 46 600 Total Wholesale $ 42 $ 6 $ 26 $ 74 $ 8,382 $ 8,456 $ 155 $ 8,611 2014 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Performing Non Performing Total Retail NAFTA $ 31 $ 2 $ — $ 33 $ 8,596 $ 8,629 $ 10 $ 8,639 EMEA 14 8 — 22 881 903 58 961 LATAM 3 — — 3 1,762 1,765 37 1,802 APAC 2 — 2 4 572 576 — 576 Total Retail $ 50 $ 10 $ 2 $ 62 $ 11,811 $ 11,873 $ 105 $ 11,978 Wholesale NAFTA $ 1 $ — $ — $ 1 $ 4,079 $ 4,080 $ 52 $ 4,132 EMEA 72 4 — 76 3,874 3,950 6 3,956 LATAM 1 — — 1 861 862 — 862 APAC 16 3 30 49 372 421 29 450 Total Wholesale $ 90 $ 7 $ 30 $ 127 $ 9,186 $ 9,313 $ 87 $ 9,400 Allowance for credit losses activity for the three years ended December 31, 2015, 2014 and 2013 is as follows (in millions): December 31, 2015 Retail Wholesale Other Total Opening balance $ 468 $ 182 $ — $ 650 Provision 81 27 — 108 Charge-offs, net of recoveries (92 ) (13 ) — (105 ) Foreign currency translation and other (63 ) (38 ) — (101 ) Ending balance 394 158 — 552 Ending balance: Individually evaluated for impairment 187 125 — 312 Ending balance: Collectively evaluated for impairment 207 33 — 240 Receivables: Ending balance 10,344 8,611 46 19,001 Ending balance: Individually evaluated for impairment 416 767 — 1,183 Ending balance: Collectively evaluated for impairment $ 9,928 $ 7,844 $ 46 $ 17,818 December 31, 2014 Retail Wholesale Other Total Opening balance $ 613 $ 112 $ 1 $ 726 Provision 86 71 2 159 Charge-offs, net of recoveries (135 ) (24 ) (2 ) (161 ) Foreign currency translation and other (96 ) 23 (1 ) (74 ) Ending balance 468 182 — 650 Ending balance: Individually evaluated for impairment 233 115 — 348 Ending balance: Collectively evaluated for impairment 235 67 — 302 Receivables: Ending balance 11,978 9,400 94 21,472 Ending balance: Individually evaluated for impairment 484 758 — 1,242 Ending balance: Collectively evaluated for impairment $ 11,494 $ 8,642 $ 94 $ 20,230 December 31, 2013 Retail Wholesale Other Total Opening balance $ 661 $ 120 $ 1 $ 782 Provision 62 1 — 63 Charge-offs, net of recoveries (111 ) (8 ) — (119 ) Foreign currency translation and other 1 (1 ) — — Ending balance 613 112 1 726 Ending balance: Individually evaluated for impairment 292 101 — 393 Ending balance: Collectively evaluated for impairment 321 11 1 333 Receivables: Ending balance 12,730 9,111 135 21,976 Ending balance: Individually evaluated for impairment 569 742 — 1,311 Ending balance: Collectively evaluated for impairment $ 12,161 $ 8,369 $ 135 $ 20,665 Financing receivables are considered impaired when it is probable the Company will be unable to collect all amounts due according to the contractual terms. Receivables reviewed for impairment generally include those that are either past due, or have provided bankruptcy notification, or require significant collection efforts. Receivables, which are impaired, are generally classified as non-performing. 2015 2014 Recorded Investment Unpaid Principal Balance Related Allowance Average Investment Recorded Investment Unpaid Principal Balance Related Allowance Average Investment (in millions) With no related allowance Retail NAFTA $ 41 $ 40 $ — $ 37 $ 24 $ 24 $ — $ 22 EMEA $ 74 $ 74 $ — $ 79 $ 91 $ 91 $ — $ 95 LATAM $ — $ — $ — $ — $ — $ — $ — $ — APAC $ — $ — $ — $ — $ — $ — $ — $ — Wholesale NAFTA $ — $ — $ — $ — $ 12 $ 12 $ — $ 21 EMEA $ 33 $ 33 $ — $ 35 $ 35 $ 35 $ — $ 39 LATAM $ — $ — $ — $ — $ — $ — $ — $ — APAC $ — $ — $ — $ — $ — $ — $ — $ — With an allowance recorded Retail NAFTA $ 54 $ 53 $ 18 $ 52 $ 33 $ 32 $ 13 $ 34 EMEA $ 238 $ 238 $ 167 $ 263 $ 311 $ 311 $ 212 $ 312 LATAM $ — $ — $ — $ — $ — $ — $ — $ — APAC $ 9 $ 9 $ 2 $ 12 $ 25 $ 25 $ 8 $ 26 Wholesale NAFTA $ 82 $ 82 $ 3 $ 92 $ 60 $ 60 $ 3 $ 63 EMEA $ 607 $ 607 $ 95 $ 657 $ 608 $ 608 $ 98 $ 708 LATAM $ 25 $ 21 $ 7 $ 22 $ 25 $ 20 $ 8 $ 20 APAC $ 20 $ 20 $ 20 $ 18 $ 18 $ 18 $ 6 $ 13 Total Retail $ 416 $ 414 $ 187 $ 443 $ 484 $ 483 $ 233 $ 489 Wholesale $ 767 $ 763 $ 125 $ 824 $ 758 $ 753 $ 115 $ 864 Troubled Debt Restructurings A troubled debt restructuring (“TDR”) is generally the modification of debt in which a lender grants a concession it would not otherwise consider to a borrower that is experiencing financial difficulties. These modifications may include extended contract maturities, inclusion of interest-only periods, modification of a contractual interest rate to a below market interest rate, extended skip payment period and waving interest and principal. As a collateral based lender, the Company typically will repossess collateral in lieu of restructuring receivables. As such, for retail receivables, concessions are typically provided based on bankruptcy or other court proceedings. TDRs are reviewed along with other receivables as part of management’s ongoing evaluation of the adequacy of the allowance for credit losses. The allowance for credit losses attributable to TDRs is based on the most probable source of repayment, which is normally the liquidation of the collateral. In determining collateral value, the Company estimates the current fair market value of the equipment collateral and considers credit enhancements such as additional collateral and third party guarantees. Before removing a receivable from TDR classification, a review of the borrower is conducted. If concerns exist about the future ability of the borrower to meet its obligations under the loans based on a credit review, the TDR classification is not removed from the receivable. For the year ended December 31, 2015, the Company had approximately 601 retail and finance lease receivable contracts classified as TDRs in NAFTA, of which the pre-modification value was $22 million and the post-modification value was $21 million. The court has determined the concession in 283 of these cases. The pre-modification value of these contracts was $5 million and the post-modification value was $4 million. For the year ended December 31, 2014, the Company had approximately 660 retail and finance lease receivable contracts classified as TDRs in NAFTA, of which the pre-modification value was $17 million and the post-modification value was $16 million. The court has determined the concession in 411 of these cases. The pre-modification value of these contracts was $7 million and the post-modification value was $6 million. As the outcome of the bankruptcy cases is determined by the court based on available assets, subsequent re-defaults are unusual and were not material for retail and finance lease receivable contracts that were modified in a TDR during the twelve months ended December 31, 2015 and 2014. For the years ended December 31, 2015 and 2014, the Company had approximately $77 million and $108 million, respectively, in retail and finance lease receivable contracts classified as TDRs in EMEA. The primary concession was skipped payments and extended contract maturities, and as such, the post-modification value approximates the pre-modification value. Subsequent re-defaults were not material for retail and finance lease receivable contracts that were modified in a TDR during the twelve months ended December 31, 2015 and 2014. For the years ended December 31, 2015 and 2014, the Company had approximately $25 million and $53 million, respectively, in retail and finance lease receivable contracts classified as TDRs in LATAM. The concessions granted on these receivables are primarily skipped payments and extended contract maturities. Subsequent re-defaults were not material for retail and finance lease receivable contracts that were modified in a TDR during the twelve months ended December 31, 2015 and 2014. As of December 31, 2015 and 2014, the Company’s wholesale TDRs were immaterial. Transfers of Financial Assets The Company transfers a number of its financing receivables under securitization programs or factoring transactions. A securitization transaction entails the sale of a portfolio of receivables to a securitization vehicle. This SPE finances the purchase of the receivables by issuing asset-backed securities (i.e. securities whose repayment and interest flow depend upon the cash flow generated by the portfolio). SPEs utilized in securitizations differ from other entities included in the Company’s consolidated financial statements because the assets they hold are legally isolated. 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. These trusts were determined to be VIEs and, consequently, the Company has consolidated these trusts. In its role as servicer, the Company has the power to direct the trusts’ activities. Through its retained interests, the Company has an obligation to absorb certain losses or the right to receive certain benefits that could potentially be significant to the trusts. No recourse provisions exist that allow holders of the asset-backed securities issued by the trusts to put those securities back to the Company, although the Company provides customary representations and warranties that could give rise to an obligation to repurchase from the trusts any receivables for which there is a breach of the representations and warranties. Moreover, the Company does not guarantee any securities issued by the trusts. The trusts have a limited life and generally terminate upon final distribution of amounts owed to investors or upon exercise of a cleanup-call option by the Company in its role as servicer. Furthermore, factoring transactions may be either with recourse or without recourse; certain without recourse transfers include deferred payment clauses (for example, when the payment by the factor of a minor part of the purchase price is dependent on the total amount collected from the receivables), requiring first loss cover, meaning that the transferor takes priority participation in the losses, or require a significant exposure to the cash flows arising from the transferred receivables to be retained. These types of transactions do not qualify for the derecognition of the assets since the risks and rewards connected with collection are not substantially transferred, and accordingly the Company continues to recognize the receivables transferred by this means in its balance sheet and a financial liability of the same amount under asset-backed financing. At December 31, 2015 and 2014, the carrying amount of such restricted assets included in financing receivables above are the following (in millions): Restricted Receivables 2015 2014 Retail note and finance lease receivables $ 7,695 $ 8,718 Wholesale receivables 6,189 6,005 Total $ 13,884 $ 14,723 At December 31 2014, the Company had $116 million of VAT receivables included in other assets that were used as collateral in certain borrowings. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4: Inventories Inventories (stated at the lower of cost or market, cost being determined on a FIFO basis) as of December 31, 2015, and 2014 consist of the following: 2015 2014 (in millions) Raw materials $ 1,254 $ 1,672 Work-in-process 747 552 Finished goods 3,689 4,784 Total inventories $ 5,690 $ 7,008 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 5: Property, Plant and Equipment A summary of property, plant and equipment as of December 31, 2015, and 2014 is as follows: 2015 2014 (in millions) Land and industrial buildings $ 3,056 $ 3,306 Plant, machinery and equipment 7,857 8,357 Assets sold with buy-back commitment 2,775 2,750 Construction in progress 191 213 Other 799 868 Gross property, plant and equipment 14,678 15,494 Accumulated depreciation (8,197 ) (8,629 ) Net property, plant and equipment $ 6,481 $ 6,865 A summary of property, plant and equipment recorded under capital leases ¹ as of December 31, 2015, and 2014 is as follows: 2015 2014 (in millions) Gross capital leases ² $ 139 $ 148 Accumulated depreciation (50 ) (41 ) Net capital leases $ 89 $ 107 ¹ Included in property, plant and equipment table above ² Consists of industrial buildings, plant, machinery and equipment Depreciation expense on the above property, plant and equipment totaled $824 million, $873 million, and $854 million for the years ended December 31, 2015, 2014, and 2013, respectively. Excluding depreciation for assets sold with buy-back commitments, depreciation expenses totaled $592 million, $623 million, and $581 million for the years ended December 31, 2015, 2014, and 2013, respectively. Commercial Vehicles recognized an impairment loss of $18 million, $22 million and $37 million on assets sold with a buy-back commitment for the years ended December 31, 2015, 2014 and 2013, respectively. The losses are recognized in “Cost of goods sold.” The Company had contractual commitments of $124 million and $397 million for the acquisition of property, plant and equipment at December 31, 2015 and 2014, respectively. |
Investments in Unconsolidated S
Investments in Unconsolidated Subsidiaries and Affiliates | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Subsidiaries and Affiliates | Note 6: Investments in Unconsolidated Subsidiaries and Affiliates A summary of investments in unconsolidated subsidiaries and affiliates as of December 31, 2015, and 2014 is as follows: 2015 2014 (in millions) Equity method $ 519 $ 593 Cost method 8 12 Total $ 527 $ 605 A summary of the combined results of operations and financial position as reported by the investees that CNH Industrial accounts for using the equity method is as follows: For the Years Ended December 31, 2015 2014 2013 (in millions) Net revenue $ 3,911 $ 4,849 $ 5,211 Income before taxes $ 127 $ 251 $ 321 Net income $ 68 $ 194 $ 289 As of December 31, 2015 2014 (in millions) Total Assets $ 6,867 $ 7,448 Total Liabilities $ 5,545 $ 5,877 Total Equity $ 1,322 $ 1,571 The investees included in these tables primarily consists of Al Ghazi Tractors Ltd. (43.2% ownership), Turk Traktor re Ziraat Makineteri A.S. (37.5% ownership), New Holland HFT Japan Inc. (50.0% ownership), CNH de Mexico S.A. de C.V. (50.0% ownership), CNH Industrial Capital Europe S.A.S. (50.0% ownership), Naveco (Nanjing Iveco Motor Co.) Ltd (50.0% ownership), SAIC Iveco Commercial Vehicle Investment Company Limited (50.0% ownership) and Transolver Finance Establecimiento Financiero de Credito S.A. (50.0% ownership). Effective December 31, 2012, the initial term of CNH Global’s global alliance with one of its Japanese joint ventures, Kobelco Construction Machinery Co., Ltd. (“KCM”) expired and CNH Global and KCM entered a new phase of the relationship. As a result, CNH Global sold its 20% ownership in KCM to Kobe Steel, Ltd (“KSL”) and recognized a loss of approximately $35 million in 2012. The dispute regarding the amount to be paid by KSL to CNH Global was resolved by binding arbitration pursuant to London Court of International Arbitration (“LCIA”) rules, as provided by the KCM Shareholders Agreement. In November 2013, the arbitrator issued his award and opinion, effectively ruling in favor of KSL. As a result, CNH Industrial recognized an additional loss of $26 million on the sale of investment in its consolidated statements of operations for the year ended December 31, 2013. Please see “Note 13: Commitments and Contingencies” for additional information. |
Equipment on Operating Leases
Equipment on Operating Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Equipment on Operating Leases | Note 7: Equipment on Operating Leases Equipment on operating leases primarily include products leased to customers by Agricultural Equipment, Construction Equipment and Commercial Vehicles. A summary of equipment on operating leases as of December 31, 2015, and 2014 is as follows: 2015 2014 (in millions) Equipment on operating leases $ 2,127 $ 1,814 Accumulated depreciation (292 ) (296 ) Net equipment on operating leases $ 1,835 $ 1,518 Depreciation expense on equipment on operating leases is recorded in “Other, net” and amounted to $215 million, $159 million and $140 million for the years ended December 31, 2015, 2014 and 2013, respectively. Lease payments owed to CNH Industrial for equipment under non-cancelable operating leases as of December 31, 2015, are as follows: Amount (in millions) 2016 $ 187 2017 112 2018 46 2019 14 2020 29 Beyond 5 years 1 Total $ 389 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Note 8: Goodwill and Other Intangibles Changes in the carrying amount of goodwill, for the years ended December 31, 2015, and 2014 are as follows: Agricultural Equipment Construction Equipment Commercial Vehicles Powertrain Financial Services Total (in millions) Balance at January 1, 2014 $ 1,657 $ 606 $ 71 $ 6 $ 164 $ 2,504 Acquisition 8 — — — — 8 Impact of foreign exchange (3 ) (11 ) (10 ) (1 ) (3 ) (28 ) Balance at December 31, 2014 1,662 595 61 5 161 2,484 Impact of foreign exchange (17 ) (7 ) (4 ) — (9 ) (37 ) Balance at December 31, 2015 $ 1,645 $ 588 $ 57 $ 5 $ 152 $ 2,447 Goodwill and other indefinite-lived intangible assets are tested for impairment annually or more frequently if a triggering event occurs. In 2015 and 2014, CNH Industrial performed its annual impairment review as of December 31 and concluded that there were no impairments in either year. Impairment testing for goodwill is done at a reporting unit level using a two-step test. Under the first step of the goodwill impairment test, CNH Industrial’s estimate of the fair value of the reporting unit is compared with its carrying value. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and CNH Industrial must perform step two of the impairment test (measurement). Step two of the impairment test, when necessary, requires the identification and estimation of the fair value of the reporting unit’s individual assets, including intangible assets with definite and indefinite lives regardless of whether such intangible assets are currently recorded as an asset of the reporting unit, and liabilities in order to calculate the implied fair value of the reporting unit’s goodwill. Under step two, an impairment loss is recognized to the extent the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of goodwill. The vast majority of goodwill, representing approximately 97% of the total, as of December 31, 2015 related to Agricultural Equipment (67%), Construction Equipment (24%) and Financial Services (6%) and as such, the impairment testing of these reporting units is discussed in detail below. The carrying values for each reporting unit include material allocations of the Company’s assets and liabilities and costs and expenses that are common to all of the reporting units. CNH Industrial believes that the basis for such allocations has been consistently applied and is reasonable. CNH Industrial determines the fair value of its reporting units using multiple valuation methodologies, relying largely on an income approach but also incorporating value indicators from a market approach, with reference to the reporting units with the most significant allocated goodwill. Under the income approach, CNH Industrial calculates the fair value of a reporting unit based on the present value of estimated future cash flows. The income approach is dependent on several critical management assumptions, including estimates of future sales, gross margins, operating costs, income tax rates, terminal value growth rates, capital expenditures, changes in working capital requirements, and the weighted average cost of capital (discount rate). Discount rate assumptions include an assessment of the risk inherent in the future cash flows of the respective reporting units. Expected cash flows used under the income approach are developed in conjunction with CNH Industrial budgeting and forecasting process. Under the market approach, CNH Industrial estimates the fair value of the Agricultural Equipment and Construction Equipment reporting units using revenue and EBITDA multiples and estimates the fair value of the Financial Services reporting unit using book value, tangible book value and interest margin multiples. The multiples are derived from comparable publicly-traded companies with similar operating and investment characteristics as the respective reporting units. The guideline company method makes use of market price data of corporations whose stock is actively traded in a public, free and open market, either on an exchange or over-the counter basis. Although it is clear no two companies are entirely alike, the corporations selected as guideline companies must be engaged in the same, or a similar, line of business or be subject to similar financial and business risks, including the opportunity for growth. As of December 31, 2015, the estimated fair values of the Agricultural Equipment and Financial Services reporting units exceeded the carrying values by approximately 17% and 29%, respectively. The Construction Equipment reporting unit had an excess of fair value over carrying value of approximately 12%. This reporting unit is considered to be at higher risk of potential failure of step one of the impairment test in future reporting periods, due primarily to declines in market demand for construction equipment. Holding all other assumptions constant, a 1.3 p.p. increase in the discount rate could result in an impairment loss in future reporting periods. The sum of the fair values of CNH Industrial’s reporting units was in excess of CNH Industrial’s market capitalization. CNH Industrial believes that the difference between the fair value and market capitalization is reasonable (in the context of assessing whether any asset impairment exists) when market-based control premiums are taken into consideration. As of December 31, 2015, and 2014, the Company’s other intangible assets and related accumulated amortization consisted of the following: 2015 2014 Weighted Avg. Life Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in millions) Other intangible assets subject to amortization: Dealer networks 15 $ 289 $ 143 $ 146 $ 285 $ 131 $ 154 Patents, concessions and licenses and other 5-25 1,569 1,187 382 1,701 1,281 420 1,858 1,330 528 1,986 1,412 574 Other intangible assets not subject to amortization: Trademarks 282 — 282 276 — 276 Total Other intangible assets $ 2,140 $ 1,330 $ 810 $ 2,262 $ 1,412 $ 850 CNH Industrial recorded amortization expense of $107 million, $108 million, and $109 million during 2015, 2014, and 2013, respectively. Based on the current amount of other intangible assets subject to amortization, the estimated annual amortization expense for each of the succeeding 5 years is expected to be as follows: $79 million in 2016; $75 million in 2017; $68 million in 2018, $57 million in 2019; and $65 million in 2020. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Note 9: Debt Credit Facilities Lenders of committed credit facilities have the obligation to make advances up to the facility amount. Lenders of uncommitted facilities have the right to terminate the agreement with prior notice to CNH Industrial. At December 31, 2015, available committed lines of credit expiring after twelve months amounted to $3.0 billion. The Company has credit facilities available in varying currencies that have various maturity dates up to 2019. In 2014, the Company signed a five-year committed revolving credit facility for €1.75 billion, replacing an existing three-year €2 billion committed revolving credit facility, which was scheduled to mature in February 2016. The €1.75 billion ($2.1 billion) facility includes financial convents that require Industrial Activities to maintain Net debt/EBITDA and EBITDA/Net interest ratios. The failure to comply with the financial covenants can lead to the requirement to make early repayment of the outstanding advances. At December 31, 2015, the Company was in compliance with all covenants in the revolving credit facility. Debt A summary of debt as of December 31, 2015 and 2014, including drawings under credit lines, is as follows: 2015 2014 Industrial Activities Financial Services Consolidated Industrial Activities Financial Services Consolidated (in millions) Bonds (*): Matured in 2015, interest rate of 5.250% $ — $ — $ — $ 1,214 $ — $ 1,214 Payable in 2018, interest rate of 6.250% 1,306 — 1,306 1,457 — 1,457 Payable in 2019, interest rate of 2.750% 1,089 — 1,089 1,214 — 1,214 Payable in 2021, interest rate of 2.875% 762 — 762 850 — 850 Payable in 2025, interest rate of 3.500% 109 — 109 — — — Payable in 2016, interest rate of 7.250% 254 — 254 253 — 253 Payable in 2017, interest rate of 7.875% 1,526 — 1,526 1,535 — 1,535 Payable in 2016, interest rate of 6.250% — 500 500 — 500 500 Matured in 2015, interest rate of 3.875% — — — — 750 750 Payable in 2018, interest rate of 3.625% — 600 600 — 598 598 Payable in 2017, interest rate of 3.250% — 500 500 — 500 500 Payable in 2019, interest rate of 3.375% — 500 500 — 500 500 Payable in 2018, interest rate of 3.875% — 600 600 — — — Payable in 2020, interest rate of 4.375% — 600 600 — — — Other Debt: Asset-backed debt 13 12,986 12,999 26 13,561 13,587 Other debt 2,199 2,844 5,043 3,630 3,006 6,636 Intersegment debt 1,046 2,089 — 1,341 4,671 — Total Debt $ 8,304 $ 21,219 $ 26,388 $ 11,520 $ 24,086 $ 29,594 (*) Includes unamortized debt discounts/premiums and fair value hedge adjustments. The weighted-average interest rate on consolidated debt at December 31, 2015, and 2014 was 3.3% and 3.7%, respectively. In March 2011, CNH Industrial Finance Europe S.A. issued €1.0 billion of notes, due in 2015 and bearing fixed interest at a rate of 5.250% (the “5.250% CIFE Notes”). The 5.250% CIFE Notes were issued under the €10 billion Global Medium Term Note Programme unconditionally and irrevocably guaranteed by CNH Industrial N.V. In 2015, these notes matured and were repaid. In March 2011, CNH Industrial Finance Europe S.A. issued €1.2 billion of notes, due in 2018 and bearing fixed interest at a rate of 6.250% (the “6.250% CIFE Notes”). The 6.250% CIFE Notes have been issued under the €10 billion Global Medium Term Note Programme unconditionally and irrevocably guaranteed by CNH Industrial N.V. In March 2014, CNH Industrial Finance Europe S.A. issued €1.0 billion of notes, due in 2019 and bearing fixed interest at a rate of 2.750% (the “2.750% CIFE Notes”). The 2.750% CIFE Notes have been issued under the €10 billion Global Medium Term Note Programme unconditionally and irrevocably guaranteed by CNH Industrial N.V. In September 2014, CNH Industrial Finance Europe S.A. issued €700 million of notes, due in 2021 and bearing fixed interest at a rate of 2.875% (the “2.875% CIFE Notes”). The 2.875% CIFE Notes have been issued under the €10 billion Global Medium Term Note Programme unconditionally and irrevocably guaranteed by CNH Industrial N.V. In November 2015, CNH Industrial Finance Europe S.A. issued €100 million of notes, due in 2025 and bearing fixed interest at a rate of 3.500% (the “3.500% CIFE Notes”). The 3.500% CIFE Notes have been issued under the €10 billion Global Medium Term Note Programme unconditionally and irrevocably guaranteed by CNH Industrial N.V. In January 1996, CNH Industrial America LLC issued $254 million 7.25% Senior Notes (the “7.250% Senior Notes”), due in 2016. The 7.250% Senior Notes were redeemable in whole or in part at any time at the option of CNH Industrial America LLC at a price equal to the greater of (i) 100% of the principal amount of the notes being redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the date of redemption on a semi-annual basis at the Treasury Rate (as defined in the notes) plus 20 basis points. Since 1999, the 7.250% Senior Notes had been fully guaranteed by CNH Global (and now by its successor CNH Industrial N.V.). These notes matured and were repaid in January 2016. In June 2010, Case New Holland Industrial Inc. issued $1.5 billion of debt securities at an annual fixed rate of 7.875% (the “7.875% Senior Notes”) due in 2017. The 7.875% Senior Notes are fully and unconditionally guaranteed by CNH Industrial N.V. (as successor to CNH Global N.V.) and certain of its direct and indirect subsidiaries. The 7.875% Senior Notes contain certain covenants that limit the ability of CNH Industrial N.V. and its restricted subsidiaries to, among other things, incur secured funded debt or enter into certain leaseback transactions; the ability of CNH Industrial non-guarantor restricted subsidiaries other than Case New Holland Industrial Inc. or any credit subsidiaries to incur additional funded debt and the ability of CNH Industrial, Case New Holland Industrial Inc. and CNH Industrial guarantor subsidiaries to consolidate, merge, convey, transfer or lease out properties and assets. The 7.875% Senior Notes are redeemable at Case New Holland Industrial Inc.’s option at any time at a price equal to 100% of the principal amount of the notes plus a make-whole premium defined in the respective indentures. In November 2011, CNH Industrial Capital LLC issued $500 million of debt securities at an annual fixed rate of 6.250% (the “6.250% Notes”) due in 2016. The 6.250% Notes are fully and unconditionally guaranteed by certain wholly owned subsidiaries of the issuer. In October 2012, CNH Industrial Capital LLC issued $750 million of debt securities at an annual fixed rate of 3.875% (the “3.875% Notes”) due in 2015. The 3.875% Notes were fully and unconditionally guaranteed by certain wholly owned subsidiaries of the issuer. In 2015, these notes matured and were repaid. In April 2013, CNH Industrial Capital LLC issued $600 million of debt securities at an annual fixed rate of 3.625% (the “3.625% Notes”) due in 2018. The 3.625% Notes are fully and unconditionally guaranteed by certain wholly owned subsidiaries of the issuer. In October 2013, CNH Industrial Capital LLC issued $500 million of debt securities at an annual fixed rate of 3.250% (the “3.250% Notes”) due in 2017. The 3.250% Notes are fully and unconditionally guaranteed by certain wholly owned subsidiaries of the issuer. In June 2014, CNH Industrial Capital LLC issued $500 million of debt securities at an annual fixed rate of 3.375% (the “3.375% Notes”) due in 2019. The 3.375% Notes are fully and unconditionally guaranteed by certain wholly owned subsidiaries of the issuer. In June 2015, CNH Industrial Capital LLC issued $600 million of debt securities at an annual fixed rate of 3.875% (the “3.875% Notes”) due in 2018. The 3.875% Notes are fully and unconditionally guaranteed by certain wholly owned subsidiaries of the issuer. In November 2015, CNH Industrial Capital LLC issued $600 million of debt securities at an annual fixed interest rate of 4.375% (the “4.375% Notes”) due in 2020. The 4.375% Notes are fully and unconditionally guaranteed by certain wholly owned subsidiaries of the issuer. The notes issued by CNH Industrial Finance Europe S.A., CNH Industrial Capital LLC and Case New Holland Industrial Inc. contain customary covenants that, among other things, restrict our ability to secure debt or other obligations with a pledge of collateral. In addition, the notes guaranteed by CNH Industrial N.V. under the Global Medium Term Note Programme, contain clauses, that could lead to early repayment if there is a change of control of CNH Industrial N.V. leading to a rating downgrade. A summary of the minimum annual repayments of debt as of December 31, 2015, for 2016 and thereafter is as follows: Industrial Activities Financial Services Consolidated (in millions) 2016 $ 1,252 $ 8,355 $ 9,607 2017 1,892 3,999 5,891 2018 1,773 3,777 5,550 2019 1,318 1,949 3,267 2020 59 898 957 2021 and thereafter 964 152 1,116 Intersegment 1,046 2,089 — Total $ 8,304 $ 21,219 $ 26,388 Please refer to “Note 14: Financial Instruments” for fair value information on debt. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10: Income Taxes In 2012, the Company announced the planned tax domicile of CNH Industrial N.V. in the United Kingdom. On August 13, 2013, the Dutch and United Kingdom competent authorities completed a mutual agreement procedure and issued a ruling that as of November 24, 2012, CNH Industrial N.V. should be treated solely as a tax resident in the United Kingdom for the application of the Netherlands-U.K. tax treaty and is subject to the United Kingdom corporate income tax system. As a result of the United Kingdom tax residence, the Company does not expect a significant impact on its corporate income tax liabilities. However, dividend distributions by CNH Industrial N.V. to its shareholders are not subject to withholding tax, as the United Kingdom currently does not levy a withholding tax on dividend distributions. Dividend distributions by CNH Industrial N.V. to its Dutch resident shareholders may be subject to Dutch dividend withholding tax. CNH Industrial N.V., through its subsidiaries, has substantial world-wide operations. Taxes are primarily paid on the earnings generated in various jurisdictions, including the United States, Brazil, Canada, Australia and other countries. The Company’s subsidiaries incur tax obligations in the jurisdictions in which they operate. The Company’s provision for income taxes as reported in its consolidated statements of operations for the year ended December 31, 2015 of $360 million consists almost entirely of the income taxes owed by the subsidiaries of CNH Industrial N.V. The sources of income before taxes and equity in income of unconsolidated subsidiaries and affiliates for the years ended December 31, 2015, 2014, and 2013 are as follows: 2015 2014 2013 (in millions) Parent country source $ 11 $ (12 ) $ 14 Foreign sources 556 1,101 1,360 Income before taxes and equity in income of unconsolidated subsidiaries and affiliates $ 567 $ 1,089 $ 1,374 The provision for income taxes for the years ended December 31, 2015, 2014 and 2013 consisted of the following: 2015 2014 2013 (in millions) Current income taxes $ 263 $ 489 $ 755 Deferred income taxes 97 (22 ) (84 ) Total income tax provision $ 360 $ 467 $ 671 CNH Industrial N.V. is incorporated in the Netherlands, but the Company is a tax resident of the United Kingdom as indicated above. The reconciliation of the differences between the provision for income taxes and the statutory rate is presented on the basis of the weighted average of the United Kingdom statutory main corporation tax rates in force over each of the Company’s calendar year reporting periods of 23% in 2013, 22% in 2014 and 20% in 2015. A reconciliation of CNH Industrial’s statutory and effective income tax rate for the years ended December 31, 2015, 2014 and 2013 is as follows: 2015 2014 2013 (in percentages) Tax provision at the parent statutory rate 20 % 22 % 23 % Foreign income taxed at different rates 10 14 11 Change in valuation allowance 19 14 13 Italian IRAP taxes 1 3 2 Tax contingencies 5 (6 ) 3 Tax credits and incentives (8 ) (8 ) (7 ) Tax effect of permanent difference due to Venezuelan net monetary assets re-measurement 9 — — Change in tax rate or law 4 — — Withholding taxes 2 — — Other 1 4 4 Total income tax provision 63 % 43 % 49 % The amount reported for foreign income taxed at different rates relates to the taxes on earnings generated in various jurisdictions outside of the United Kingdom, including the United States. The components of net deferred tax assets as of December 31, 2015 and 2014 are as follows: 2015 2014 (in millions) Deferred tax assets: Inventories $ 89 $ 89 Warranty and campaigns 156 202 Allowance for credit losses 162 212 Marketing and sales incentive programs 347 445 Other risk and future charges reserve 200 173 Pension, postretirement and postemployment benefits 580 634 Measurement of derivative financial instruments — 37 Research and development costs 395 343 Other reserves 400 413 Tax loss carry forwards 712 836 Less: Valuation allowances (1,361 ) (1,484 ) Total deferred tax assets $ 1,680 $ 1,900 Deferred tax liabilities: Property, plant and equipment 432 271 Measurement of derivative financial instruments 2 — Other 330 334 Total deferred tax liabilities 764 605 Net deferred tax assets $ 916 $ 1,295 Net deferred tax assets are reflected in the accompanying consolidated balance sheets as of December 31, 2015 and 2014 as follows: 2015 2014 (in millions) Deferred tax assets $ 1,250 $ 1,747 Deferred tax liabilities (334 ) (452 ) Net deferred tax assets $ 916 $ 1,295 CNH Industrial has gross tax loss carry forwards in a number of tax jurisdictions. The years in which these tax losses expire are as follows: $50 million in 2016; $40 million in 2017; $140 million in 2018; $160 million in 2019; $786 million in 2020 and beyond. CNH Industrial also has tax loss carry forwards of more than $2 billion with indefinite lives. A reconciliation of the gross amounts of tax contingencies at the beginning and end of the year is as follows: 2015 2014 (in millions) Balance, beginning of year $ 343 $ 555 Additions based on tax positions related to the current year 31 42 Additions for tax positions of prior years 46 81 Reductions for tax positions of prior years (72 ) (304 ) Reductions for tax positions as a result of lapse of statute (10 ) (12 ) Settlements (13 ) (19 ) Balance, end of year $ 325 $ 343 As of December 31, 2015, there are $146 million of unrecognized tax benefits that if recognized would affect the effective tax rate. The remaining tax contingencies included in the balance sheet at December 31, 2015 are principally related to tax positions for which there are offsetting tax receivables or tax contingencies related to timing items. Based on worldwide tax audits which are scheduled to close over the next twelve months, the Company expects to have decreases of approximately $123 million and increases of approximately $43 million to tax contingencies primarily related to transfer pricing. These changes in tax contingencies are not expected to have a material impact on the effective tax rate due to compensating adjustments to related tax receivables. Included in the balance sheet at December 31, 2015, are $22 million of tax positions for which the ultimate deductibility is highly certain, but for which there is uncertainty about the timing of such deductibility. The disallowance of a shorter deductibility period would accelerate the payment of cash to the taxing authority to an earlier period. The Company recognizes interest and penalties accrued related to tax contingencies as part of the income tax provision. During the years ended December 31, 2015, 2014 and 2013, the Company recognized approximately $2 million, $(8) million and $(13) million in interest and penalties, respectively. The Company had approximately $16 million, $17 million and $26 million for the payment of interest and penalties accrued at December 31, 2015, 2014 and 2013, respectively. On December 18, 2015, President Obama signed The Protecting Americans from Tax Hikes (PATH) Act, which made permanent several lapsed business incentives, such as the R&D tax credit and subpart F exception for active financing income. For financial reporting purposes, the tax impact of this legislation is taken into account in the quarter in which the legislation is enacted by Congress and signed into law by the President. Since President Obama signed the bill on December 18, 2015, the financial reporting for these legislative changes occurred in the fourth quarter of 2015. The Company recorded a discrete tax benefit of $6 million in the fourth quarter related to the 2015 R&D tax credit. On December 19, 2014, President Obama signed The Tax Increase Prevention Act of 2014, legislation which extended many of the tax provisions that expired in 2013. For financial reporting purposes, the tax impact of this legislation is taken into account in the quarter in which the legislation is enacted by Congress and signed into law by the President. Since President Obama signed the bill on December 19, 2014, the financial reporting for these legislative changes occurred in the fourth quarter of 2014. In the fourth quarter of 2014, the full 2014 R&D tax credit was recorded as a discrete tax benefit and the reduction of the 2014 active financing income was recorded. The total tax benefit in the fourth quarter of 2014 was approximately $12 million. On January 2, 2013, President Obama signed The American Taxpayer Relief Act of 2012, legislation which extended many of the tax provisions that expired in 2011 or 2012. For financial reporting purposes, the tax impact of this legislation is taken into account in the quarter in which the legislation is enacted by Congress and signed into law by the President. Since President Obama signed the bill on January 2, 2013, the financial reporting for these legislative changes occurred in the first quarter of 2013. In the first quarter of 2013, the full 2012 R&D tax credit was recorded as a discrete tax benefit and the reduction of the 2012 active financing income was recorded. The total tax impact in the first quarter of 2013 was approximately $9 million. The U.K. 2015 Finance Bill received Royal Assent in the fourth quarter of 2015, which resulted in the enactment of the United Kingdom corporate tax rate change from 20% in 2015 to 19% in 2017, then to 18% in 2020. This resulted in an $8 million discrete tax charge in the fourth quarter of 2015 for the write-down of the United Kingdom net deferred tax asset. On July 17, 2012, the U.K. Finance Act 2012 received Royal Assent passing into law a number of tax measures including the tax rate reduction, Controlled Foreign Corporation (CFC) reform and the introduction of the “patent box” regime. The key measure is a phased-in 2% reduction to the corporate income tax rate. A reduction to 21% for the year beginning April 1, 2014 and a reduction to 20% for the year beginning April 1, 2015 were included in the Finance Act 2013 and enacted in 2013. Pursuant to ASC 740-10-25-47, deferred taxes are required to be measured using the tax laws and rates that are fully enacted as of the balance sheet date. The effect of changes in tax laws, including those with retroactive application, should be recorded in the financial reporting period that includes the enactment date with the entire tax effect of a change allocated to continuing operations. The deferred tax balances have been adjusted for the enacted 20% tax rate change. On October 6, 2015, the Brazilian President signed into law a temporary increase in social contribution tax on net profits for financial institutions from 15% to 20%. The tax rate will return to 15% on January 1, 2019. As such, the Company recorded a $6 million discrete tax benefit for the write-up of CNH Banco Capital’s net deferred tax asset in the fourth quarter. The French government did not extend the additional contribution tax for 2016, which resulted in a decrease in the France tax rate from 38% to 34.43%. As a result, there was a $14 million discrete tax charge in the fourth quarter for the write-down of the French tax unit’s net deferred tax asset. In December 2015, the Italian President approved the reduction of the Italian federal IRES tax rate from the current rate of 27.5% to 24% in 2017. There was no tax impact for the tax rate change under U.S. GAAP as the Italian tax unit net deferred tax asset is offset by a full valuation. The Company files income tax returns in various foreign jurisdictions, of which the United States, Canada and Italy represent the major tax jurisdictions. The Company is currently under tax examinations by various taxing authorities for the years 2001 through 2014 that are anticipated to be completed by the end of 2018. During 2015, the Company settled various tax examinations and has made cash payments to the United States of approximately $15 million. Certain taxing authorities have proposed adjustments to the Company for certain tax positions and the Company is currently engaged in competent authority proceedings. The Company reached a settlement with the United States and Canada competent authorities in 2013 settling transfer pricing disputes for the years 2005 through 2012 resulting in cash tax payments of $44 million in 2014, offset by cash tax refunds of $50 million received in 2014 and another $20 million expected in 2016. The potential tax deficiency assessment relating to other tax examinations could result in cash payments in the range of $6 to $11 million. The Company has provided for tax contingencies and related competent authority recovery. The Company does not believe that the resolution of the tax examinations will have a material adverse effect on the Company’s financial position or its results of operations. At December 31, 2015, undistributed earnings in certain subsidiaries outside the United Kingdom totaled $5.3 billion for which no deferred tax has been recorded because the remittance of earnings from certain jurisdictions would incur no tax or such earnings are permanently reinvested. The Company has determined that the amount of unrecognized deferred tax liability relating to the $5.3 billion undistributed earnings is approximately $78 million and attributable to foreign withholding taxes in certain jurisdictions. Further, the Company evaluated the undistributed earnings from its joint ventures in which it owned 50% or less, and recorded $9 million of deferred taxes as of December 31, 2015. The repatriation of undistributed earnings to the United Kingdom is generally exempt from United Kingdom income taxes under a full participation exemption. |
Employee Benefit Plans and Post
Employee Benefit Plans and Postretirement Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans and Postretirement Benefits | Note 11: Employee Benefit Plans and Postretirement Benefits CNH Industrial provides pension, healthcare and insurance plans and other postemployment benefits to their employees and retirees under defined contribution and defined benefit plans. In the case of defined contribution plans, CNH Industrial makes contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. Once the contributions have been made, the Company has no further payment obligations. CNH Industrial recognizes the contribution cost when the employees have rendered their service and includes this cost by function in cost of goods sold, SG&A expense, and R&D expense. During the years ended December 31, 2015, 2014, and 2013, CNH Industrial recorded expense of $185 million, $244 million, and $194 million, respectively, for its defined contribution plans. Defined benefit plans are classified by CNH Industrial on the basis of the type of benefit provided as follows: pension plans, healthcare plans, and other postemployment benefit plans. Pension Plans Pension obligations primarily comprise the obligations of the Company’s pension plans in the United States, the United Kingdom, and Germany. Under these plans, contributions are made to a separate fund (trust) that independently administers the plan assets. The Company’s funding policy is to meet the minimum funding requirements pursuant to the laws of the applicable jurisdictions. The Company may also choose to make discretionary contributions. Healthcare Postretirement Benefit Plans Healthcare postretirement benefit plan obligations comprise obligations for healthcare and insurance plans granted to employees working in the U.S. and Canada. These plans generally cover employees retiring on or after reaching the age of 55 who have completed at least 10 years of employment. CNH Industrial U.S. salaried and non-represented hourly employees and Canadian employees hired after January 1, 2001 and January 1, 2002, respectively, are not eligible for postretirement healthcare and life insurance benefits under the CNH Industrial plans. These benefits may be subject to deductibles, co-payment provisions and other limitations, and CNH Industrial has reserved the right to change or terminate these benefits, subject to the provisions of any collective bargaining agreement. These plans are not required to be funded. However, beginning in 2007, the Company began making contributions on a voluntary basis to a separate and independently managed fund established to finance the North American healthcare plans. Other Postemployment Benefits Other postemployment benefits consist of obligations for Italian Employee Leaving Entitlements up to December 31, 2006, loyalty bonus in Italy and various other similar plans in France, Germany and Belgium. Until December 31, 2006, Italian companies with more than 50 employees were required to accrue for benefits paid to employees upon them leaving the Company. The scheme has since changed to a defined contribution plan. The obligation on our consolidated balance sheet represents the residual reserve for years until December 31, 2006. Loyalty bonus is accrued for employees who have reached certain service seniority and are generally settled when employees leave the Company. These plans are not required to be funded and, therefore, have no plan assets. Obligations and Funded Status The following summarizes data from CNH Industrial’s defined benefit pension, healthcare and other postemployment plans for the years ended December 31, 2015 and 2014: Pension Healthcare ˡ Other ˡ 2015 2014 2015 2014 2015 2014 (in millions) Change in benefit obligations: Beginning benefit obligation $ 3,619 $ 3,441 $ 1,243 $ 1,117 $ 526 $ 565 Service cost 30 27 8 9 15 18 Interest cost 112 134 48 51 5 10 Plan participants’ contributions 3 3 9 8 — — Actuarial (gain) loss (159 ) 442 (64 ) 150 (37 ) 58 Gross benefits paid (190 ) (233 ) (80 ) (78 ) (45 ) (40 ) Plan amendments — 1 — (12 ) — (24 ) Currency translation adjustments and other (134 ) (196 ) (7 ) (2 ) (41 ) (61 ) Ending benefit obligation 3,281 3,619 1,157 1,243 423 526 Change in the fair value of plan assets: Beginning plan assets 2,686 2,665 107 98 — — Actual return on plan assets (9 ) 288 — 11 — — Employer contributions 27 28 — — — — Plan participants’ contributions 3 3 — — — — Gross benefits paid (161 ) (199 ) (2 ) (2 ) — — Currency translation adjustments and other (66 ) (99 ) — — — — Ending plan assets 2,480 2,686 105 107 — — Funded status: $ (801 ) $ (933 ) $ (1,052 ) $ (1,136 ) $ (423 ) $ (526 ) ˡ The healthcare and other postemployment plans are not required to be prefunded. The following summarizes data from CNH Industrial’s defined benefit pension plans by significant geographical area for the years ended December 31, 2015 and 2014: U.S. U.K Germany ˡ Other Countries ˡ 2015 2014 2015 2014 2015 2014 2015 2014 (in millions) Change in benefit obligations: Beginning benefit obligation $ 1,291 $ 1,223 $ 1,468 $ 1,360 $ 523 $ 537 $ 337 $ 321 Service cost 6 5 7 5 4 4 13 13 Interest cost 48 55 50 56 8 14 6 9 Plan participants’ contributions — — — — — — 3 3 Actuarial (gain) loss (54 ) 128 (74 ) 199 (16 ) 71 (15 ) 44 Gross benefits paid (83 ) (120 ) (64 ) (62 ) (29 ) (34 ) (14 ) (17 ) Plan amendments — — — — — — — 1 Currency translation adjustments and other — — (55 ) (90 ) (52 ) (69 ) (27 ) (37 ) Ending benefit obligation 1,208 1,291 1,332 1,468 438 523 303 337 Change in the fair value of plan assets: Beginning plan assets 1,295 1,269 1,105 1,099 5 6 281 291 Actual return on plan assets (30 ) 146 13 119 — — 8 23 Employer contributions — — 17 17 — — 10 11 Plan participants’ contributions — — — — — — 3 3 Gross benefits paid (83 ) (120 ) (64 ) (62 ) — — (14 ) (17 ) Currency translation adjustments and other — — (43 ) (68 ) — (1 ) (23 ) (30 ) Ending plan assets 1,182 1,295 1,028 1,105 5 5 265 281 Funded status: $ (26 ) $ 4 $ (304 ) $ (363 ) $ (433 ) $ (518 ) $ (38 ) $ (56 ) ˡ Pension benefits in Germany and some other countries are not required to be prefunded. Net amounts recognized in the consolidated balance sheets as of December 31, 2015 and 2014 consist of: Pension Healthcare Other 2015 2014 2015 2014 2015 2014 (in millions) Other assets $ 6 $ 19 $ — $ — $ — $ — Pension, postretirement and other postemployment benefits (807 ) (952 ) (1,052 ) (1,136 ) (423 ) (526 ) Net liability recognized at end of year $ (801 ) $ (933 ) $ (1,052 ) $ (1,136 ) $ (423 ) $ (526 ) Pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 2015 consist of: Pension Healthcare Other (in millions) Unrecognized actuarial losses $ 970 $ 195 $ 66 Unrecognized prior service credit (3 ) (10 ) (4 ) Accumulated other comprehensive loss $ 967 $ 185 $ 62 The following table summarizes the aggregate pension accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets: Pension 2015 2014 (in millions) Accumulated benefit obligation $ 3,182 $ 2,103 Fair value of plan assets $ 2,404 $ 1,191 The following table summarizes CNH Industrial’s pension and other postemployment plans with projected benefit obligations in excess of plan assets: Pension Healthcare Other 2015 2014 2015 2014 2015 2014 (in millions) Projected benefit obligation $ 3,211 $ 2,149 $ 1,157 $ 1,243 $ 423 $ 526 Fair value of plan assets $ 2,404 $ 1,191 $ 105 $ 107 $ — $ — The total accumulated benefit obligation for pension was $3,252 million and $3,570 million as of December 31, 2015 and 2014, respectively. Net Periodic Benefit Cost The following summarizes the components of net periodic benefit cost of CNH Industrial’s defined benefit for the years ended December 31, 2015, 2014, and 2014: Pension Healthcare Other 2015 2014 2013 2015 2014 2013 2015 2014 2013 (in millions) Service cost $ 30 $ 27 $ 27 $ 8 $ 9 $ 9 $ 15 $ 18 $ 16 Interest cost 112 134 126 48 51 45 5 10 12 Expected return on assets (140 ) (151 ) (166 ) (7 ) (7 ) (7 ) — — — Amortization of: Prior service cost (credit) — 1 2 (10 ) (12 ) (12 ) 1 2 1 Actuarial loss (gain) 83 64 78 26 5 22 (7 ) 13 (5 ) Settlement loss and other — — 1 — — — — 1 1 Net periodic benefit cost $ 85 $ 75 $ 68 $ 65 $ 46 $ 57 $ 14 $ 44 $ 25 Net periodic benefit cost recognized in net income and other changes in plan assets and benefit obligations that are recognized in other comprehensive loss during 2015 consist of: Pension Healthcare Other (in millions) Net periodic benefit cost $ 85 $ 65 $ 14 Benefit adjustments included in other comprehensive (income) loss: Net actuarial gains (10 ) (57 ) (37 ) Amortization of actuarial gains (losses) (83 ) (26 ) 7 Amortization of prior service (cost) credit — 10 (1 ) Currency translation adjustments and other (38 ) (1 ) (9 ) Total recognized in other comprehensive loss (131 ) (74 ) (40 ) Total recognized in comprehensive loss $ (46 ) $ (9 ) $ (26 ) Pre-tax amounts expected to be amortized in 2016 from accumulated other comprehensive loss consist of: Pension Healthcare Other (in millions) Actuarial losses $ (79 ) $ (15 ) $ — Prior service (cost) credit — 4 (1 ) Total $ (79 ) $ (11 ) $ (1 ) Actuarial gains and losses are recorded in accumulated other comprehensive income (loss). To the extent unamortized gains and losses exceed 10% of the higher of the market-related value of assets or the benefit obligation, the excess is amortized as a component of net periodic cost over the remaining service period of the active participants. For plans in which all or almost all of the plan's participants are inactive, the amortization period is the remaining life expectancy of the inactive participants. Assumptions The following assumptions were utilized in determining the funded status as at December 31, 2015 and 2014, and the net periodic benefit cost of CNH Industrial’s defined benefit plans for the years ended December 31, 2015, 2014, and 2013: Pension plans Healthcare plans Other (in %) 2015 2014 2013 2015 2014 2013 2015 2014 2013 Assumptions used to determine funded status at December 31 Weighted-average discount rates 3.49 3.22 n/a 4.27 3.96 n/a 2.06 1.81 n/a Weighted-average rate of compensation increase 2.98 3.25 n/a 2.50 3.00 n/a 1.33 2.27 n/a Weighted-average, initial healthcare cost trend rate n/a n/a n/a 6.98 7.23 n/a n/a n/a n/a Weighted-average, ultimate healthcare cost trend rate(*) n/a n/a n/a 5.00 5.00 n/a n/a n/a n/a Assumptions used to determine expense for the years ended December 31 Weighted-average discount rates 3.22 4.05 3.75 3.96 4.67 3.79 1.81 3.00 3.27 Weighted-average rate of compensation increase 3.25 3.35 2.99 3.00 3.42 3.42 2.27 2.63 2.75 Weighted-average long-term rates of return on plan assets 5.38 5.85 5.95 6.75 6.75 7.00 n/a n/a n/a Weighted-average, initial healthcare cost trend rate n/a n/a n/a 7.23 8.19 7.04 n/a n/a n/a Weighted-average, ultimate healthcare cost trend rate(*) n/a n/a n/a 5.00 5.00 5.00 n/a n/a n/a * CNH Industrial expects to achieve the ultimate healthcare cost trend rate in 2024 and 2018 for U.S. and Canada plans, respectively. Assumed discount rates are used in measurements of pension, healthcare and other postemployment benefit obligations and interest cost components of net periodic cost. CNH Industrial selects its assumed discount rates based on the consideration of equivalent yields on high-quality fixed income investments at the measurement date. The assumed discount rate is used to discount future benefit obligations back to today’s dollars. The discount rates for the U.S., European, U.K. and Canadian obligations are based on a benefit cash flow-matching approach and represent the rates at which the benefit obligations could effectively be settled as of the measurement date, December 31. The benefit cash flow-matching approach involves analyzing CNH Industrial’s projected cash flows against a high quality bond yield curve, mainly calculated using a wide population of AA-grade corporate bonds subject to minimum amounts outstanding and meeting other defined selection criteria. The discount rates for the CNH Industrial’s remaining obligations are based on benchmark yield data of high-quality fixed income investments for which the timing and amounts of payments approximate the timing and amounts of projected benefit payments. The expected long-term rate of return on plan assets reflects management’s expectations on long-term average rates of return on funds invested to provide for benefits included in the projected benefit obligations. The expected return is based on the outlook for inflation, fixed income returns and equity returns, while also considering asset allocation and investment strategy, premiums for active management to the extent asset classes are actively managed, and plan expenses. Return patterns and correlations, consensus return forecasts, and other relevant financial factors are analyzed to check for reasonability and appropriateness. The assumed healthcare trend rate represents the rate at which healthcare costs are assumed to increase. Rates are determined based on company-specific experience, consultation with actuaries and outside consultants, and various trend factors including general and healthcare sector-specific inflation projections from the United States Department of Health and Human Services Healthcare Financing Administration. The initial trend is a short-term assumption based on recent experience and prevailing market conditions. The ultimate trend is a long-term assumption of healthcare cost inflation based on general inflation, incremental medical inflation, technology, new medicine, government cost-shifting, utilization changes, an aging population, and a changing mix of medical services. In October 2014, the Society of Actuaries (“SOA”) in the United States issued updated mortality table (“RP-2014”) and mortality improvement scale (“MP-2014”). Accordingly, CNH Industrial reviewed the historical mortality experience and demographic characteristics of its U.S. pension and Healthcare plan participants and have decided to adopt the variants of Blue Collar tables of RP-2014 as the base mortality tables and Male Scale BB as opposed to MP-2014 as the mortality improvement scale. CNH Industrial management believes the new mortality assumptions most appropriately represent its plans’ experience and characteristics. The adoption of the new mortality assumptions resulted in a total increase of $69 million to the Company’s benefit obligations at December 31, 2014, of which, $37 million was related to Pension plans and $32 million to Healthcare plans. Beginning in 2016, the Company will change the method used to estimate the service and interest cost components of the net periodic pension and other postretirement benefit costs. The new method uses the spot yield curve approach to estimate the service and interest costs by applying the specific spot rates along the yield curve used to determine the benefit obligations to relevant projected cash outflows. Previously, those costs were determined using a single weighted-average discount rate. The change does not affect the measurement of the Company’s benefit obligations and it is accounted for as a change in accounting estimate, which is applied prospectively beginning in the first quarter of 2016. A one percentage point change in the assumed healthcare cost trend rates would have the following effect: One Percentage- Point Increase One Percentage- Point Decrease (in millions) Total increase/(decrease) in service cost and interest cost components of 2015 Healthcare Plan benefit expense $ 8 $ (7 ) Total increase/(decrease) in accumulated Healthcare benefit obligations as of December 31, 2015 $ 149 $ (121 ) Plan Assets The investment strategy for the plan assets depends on the features of the plan and on the maturity of the obligations. Typically, less mature plan benefit obligations are funded by using more equity securities as they are expected to achieve long-term growth exceeding the rate of inflation. More mature plan benefit obligations are funded using more fixed income securities as they are expected to produce current income with limited volatility. Risk management practices include the use of multiple asset classes and investment managers within each asset class for diversification purposes. Specific guidelines for each asset class and investment manager are implemented and monitored. Weighted average target asset allocation for all plans for 2015 are as follows: All Plans Asset category: Equity securities 22 % Debt securities 67 % Cash/Other 11 % CNH Industrial determines the fair value of plan assets using observable market data obtained from independent sources when available. CNH Industrial classifies its plan assets according to the fair value hierarchy: Level 1—Quoted prices for identical Level 2—Quoted prices for similar Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The following summarizes the fair value of plan assets by asset category and level within the fair value hierarchy as of December 31, 2015: Total Level 1 Level 2 Level 3 (in millions) Equity securities: U.S. equities—large cap $ 53 $ 15 $ 38 $ — U.S. equities—mid cap — — — — U.S. equities—small cap — — — — Non-U.S. equities 289 — 289 — Total Equity securities 342 15 327 — Fixed income securities: U.S. government bonds 305 302 3 — U.S. corporate bonds 504 — 504 — Non-U.S. government bonds 611 17 594 — Non-U.S. corporate bonds 112 — 112 — Mortgage backed securities 1 — 1 — Other fixed income 12 — 12 — Total Fixed income securities 1,545 319 1,226 — Other types of investments: Mutual funds (A) 537 — 537 — Insurance contracts 133 — — 133 Derivatives—credit contracts — — — — Real estate — — — — Other (B) 8 — 8 — Total Other types of investments 678 — 545 133 Cash: 20 1 19 — Total $ 2,585 $ 335 $ 2,117 $ 133 (A) This category includes mutual funds, which primarily invest in non-U.S. equities and non-U.S. corporate bonds. (B) This category includes primarily commingled funds, which invest in both U.S. and non-U.S. equity securities. The following table presents the changes in the Level 3 plan assets for the year ended December 31, 2015: Insurance Contracts Balance at December 31, 2014 $ 125 Actual return on plan assets relating to assets still held at reporting date 2 Purchases 7 Settlements (6 ) Transfers in and/or out of level 3 6 Currency impact (1 ) Balance at December 31, 2015 $ 133 The following summarizes the fair value of plan assets by asset category and level within the fair value hierarchy as of December 31, 2014: Total Level 1 Level 2 Level 3 (in millions) Equity securities: U.S. equities—large cap $ — $ — $ — $ — U.S. equities—mid cap — — — — U.S. equities—small cap — — — — Non-U.S. equities—large cap 15 15 — — Total Equity securities 15 15 — — Fixed income securities: U.S. government bonds 346 336 10 — U.S. corporate bonds 534 — 534 — Non-U.S. government bonds 682 17 665 — Non-U.S. corporate bonds 116 — 116 — Mortgage backed securities 1 — 1 — Other fixed income 31 — 31 — Total Fixed income securities 1,710 353 1,357 — Other types of investments: Mutual funds(A) 556 — 556 — Insurance contracts 125 — — 125 Derivatives—credit contracts 4 4 — — Real estate — — — — Other (B) 350 — 350 — Total Other types of investments 1,035 4 906 125 Cash: 33 — 33 — Total $ 2,793 $ 372 $ 2,296 $ 125 (A) This category includes mutual funds, which primarily invest in non-U.S. equities and non-U.S. corporate bonds. (B) This category includes primarily commingled funds, which invest in both U.S. and non-U.S. equity securities. The following table presents the changes in the Level 3 plan assets for the year ended December 31, 2014: Insurance Contracts Balance at December 31, 2013 $ 33 Actual return on plan assets relating to assets still held at reporting date 6 Purchases 105 Settlements (3 ) Currency impact (16 ) Balance at December 31, 2014 $ 125 Contributions CNH Industrial expects to contribute (including through direct benefit payments) approximately $64 million to its pension plans, $70 million to its healthcare plans and $30 million to its other postemployment plans in 2016. The benefit expected to be paid from the benefit plans, which reflect expected future years of service, and the Medicare subsidy expected to be received are as follows: Pension Plans Healthcare Medicare Part D Reimbursement Other (in millions) 2016 $ 189 $ 74 $ (1 ) $ 30 2017 189 72 — 30 2018 188 71 — 35 2019 189 71 — 33 2020 193 70 — 35 2021 - 2025 964 341 (2 ) 146 Total $ 1,912 $ 699 $ (3 ) $ 309 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Note 12: Other Liabilities A summary of “Other liabilities” as of December 31, 2015 and 2014 is as follows: 2015 2014 (in millions) Advances on buy-back agreements $ 2,147 $ 1,962 Warranty and campaign programs 908 1,020 Marketing and sales incentive programs 1,166 1,413 Tax payables 528 680 Accrued expenses and deferred income 577 731 Accrued employee benefits 572 669 Legal reserves and other provisions 389 410 Contract reserve 396 390 Restructuring reserve 51 95 Other 736 689 Total $ 7,470 $ 8,059 Warranty and Campaign Program As described in “Note 2: Summary of Significant Accounting Policies”, CNH Industrial pays for basic warranty and other service action costs. A summary of recorded activity for the years ended December 31, 2015 and 2014 for the basic warranty and accruals for campaign programs are as follows: 2015 2014 (in millions) Balance, beginning of year $ 1,020 $ 1,111 Current year additions 738 866 Claims paid (723 ) (837 ) Currency translation adjustment and other (127 ) (120 ) Balance, end of year $ 908 $ 1,020 Advance on Buy-back Agreements As described in “Note 2: Summary of Significant Accounting Policies”, the initial sale price received for new vehicle sales with a buy-back commitment by Commercial Vehicles is recognized as Advances on buy-back agreements. The difference between the initial sale price and the buy-back price is recognized as rental revenue on a straight-line basis over the term of the operating lease. The balance of Advances on buy-back agreements at December 31, 2015 and 2014 represented a sum of the deferred rental revenue and the guaranteed buy-back price. Restructuring Provision The Company incurred restructuring costs of $84 million, $184 million and $71 million for the years ended December 31, 2015, 2014 and 2013, respectively. These costs were as follows: · Restructuring expenses were $84 million in 2015 compared to $184 million in 2014. In 2015, Commercial Vehicles recorded $44 million mainly due to actions to reduce SG&A and business support costs as a result of the transition to CNH Industrial’s regional structure and costs related to the completion of manufacturing product specialization programs. Construction Equipment and Agricultural Equipment recorded $19 million and $18 million, respectively, mainly as a result of footprint rationalization actions included in the efficiency program of the Company launched in 2014. · In 2014, the Company incurred restructuring expenses of $184 million. Commercial Vehicles recorded $102 million mainly due to actions put in place to reduce SG&A and business support costs as a result of the transition to CNH Industrial’s regional structure. Construction Equipment recorded $39 million mainly due to the realignment of the dealer network in EMEA as a result of the re-positioning of the Case and New Holland brand offerings and the announced closure of an assembly plant in Calhoun, Georgia. Agricultural Equipment recorded $43 million primarily for the planned closure of a 60% owned joint venture in China. · In 2013, the Company continued its reorganization of Commercial Vehicles’ manufacturing activities in Europe, which began in 2012, by moving the heavy truck production at Ulm, Germany to Madrid, Spain in an effort to consolidate the heavy truck production. Additionally, the Company closed four European fire-fighting vehicle plants and moved their production to Ulm, Germany. The following table sets forth restructuring activity for the years ended December 31, 2015, 2014 and 2013: Severance and Other Employee Costs Facility Related Costs Other Restructuring Total (in millions) Balance at January 1, 2013 $ 131 $ — $ 24 $ 155 Restructuring charges 67 1 3 71 Reserves utilized: cash (122 ) — (16 ) (138 ) Reserves utilized: non-cash (8 ) — (3 ) (11 ) Currency translation adjustments 1 — (1 ) — Balance at December 31, 2013 69 1 7 77 Restructuring charges 118 32 34 184 Reserves utilized: cash (74 ) — (8 ) (82 ) Reserves utilized: non-cash (13 ) (26 ) (24 ) (63 ) Currency translation adjustments (14 ) (1 ) (6 ) (21 ) Balance at December 31, 2014 86 6 3 95 Restructuring charges 66 — 18 84 Reserves utilized: cash (112 ) (3 ) (1 ) (116 ) Reserves utilized: non-cash (5 ) — — (5 ) Currency translation adjustments (5 ) 2 (4 ) (7 ) Balance at December 31, 2015 $ 30 $ 5 $ 16 $ 51 At December 31, 2015, the remaining cost expected to be incurred for existing restructuring plans is approximately $80 million, which is expected to be incurred primarily in 2016. The Company now estimates a total cumulative charge of approximately $360 million between 2014-2016 for the Company’s efficiency program, as additional restructuring actions have been identified. The combined benefits of the efficiency program’s actions will result in estimated savings of approximately $200 million per year. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13: Commitments and Contingencies As a global company with a diverse business portfolio, CNH Industrial is exposed to numerous legal risks, including dealer and supplier litigation, intellectual property right disputes, product warranty and defective product claims, product performance, asbestos, personal injury, emissions and/or fuel economy and contractual issues and environmental claims that arise in the ordinary course of our business. The most significant of these matters are described below. The outcome of any current or future proceedings, claims or investigations cannot be predicted with certainty. Adverse decisions in one or more of these proceedings, claims or investigations could require the Company to pay substantial damages, or undertake service actions, recall campaigns or other costly actions. It is therefore possible that legal judgments could give rise to expenses that are not covered, or not fully covered, by insurers’ compensation payments and could affect CNH Industrial’s financial position and results. When it is probable that such a loss has been incurred and the amount can be reasonably estimated, an accrual has been made against our earnings and included in “Other liabilities” on the consolidated balance sheets. Although the ultimate outcome of legal matters pending against CNH Industrial and its subsidiaries cannot be predicted, the Company believes the reasonable possible range of losses for these unresolved legal matters in addition to the amounts accrued would not have a material effect on its consolidated financial statements. Environmental Pursuant to the U.S. Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), which imposes strict and, under certain circumstances, joint and several liability for remediation and liability for natural resource damages, and other federal and state laws that impose similar liabilities, CNH Industrial has received inquiries for information or notices of its potential liability regarding 65 non-owned U.S. sites at which regulated materials allegedly generated by CNH Industrial were released or disposed (“Waste Sites”). Of the Waste Sites, 15 are on the National Priority List (“NPL”) promulgated pursuant to CERCLA. For 59 of the Waste Sites, the monetary amount or extent of the Company’s liability has either been resolved; it has not been named as a potentially responsible party (“PRP”); or its liability is likely de minimis Because estimates of remediation costs are subject to revision as more information becomes available about the extent and cost of remediation and because settlement agreements can be reopened under certain circumstances, the Company’s potential liability for remediation costs associated with the 65 Waste Sites could change. Moreover, because liability under CERCLA and similar laws can be joint and several, CNH Industrial could be required to pay amounts in excess of its pro rata share of remediation costs. However, when appropriate, the financial strength of other PRPs has been considered in the determination of the Company’s potential liability. CNH Industrial believes that the costs associated with the Waste Sites will not have a material effect on the Company’s business, financial position or results of operations. The Company is conducting environmental investigatory or remedial activities at certain properties that are currently or were formerly owned and/or operated or which are being decommissioned. The Company believes that the outcome of these activities will not have a material adverse effect on its business, financial position or results of operations. The actual costs for environmental matters could differ materially from those costs currently anticipated due to the nature of historical handling and disposal of hazardous substances typical of manufacturing and related operations, the discovery of currently unknown conditions, and as a result of more aggressive enforcement by regulatory authorities and changes in existing laws and regulations. As in the past, CNH Industrial plans to continue funding its costs of environmental compliance from operating cash flows. Investigation, analysis and remediation of environmental sites is a time consuming activity. The Company expects such costs to be incurred and claims to be resolved over an extended period of time which could exceed 30 years for some sites. As of December 31, 2015 and 2014, environmental reserves of approximately $37 million and $38 million, respectively, were established to address these specific estimated potential liabilities. Such reserves are undiscounted and do not include anticipated recoveries, if any, from insurance companies. After considering these reserves, management is of the opinion that the outcome of these matters will not have a material adverse effect on the Company’s financial position or results of operations. Other Litigation and Investigation Ligon European Commission anti-competition investigation: On November 20, 2014, Iveco received a Statement of Objections from the Commission alleging that Iveco and other companies in the heavy and medium truck industry had breached EU antitrust rules. The Commission indicated that it would seek to impose significant fines on the manufacturers. The Statement of Objections is a formal step in the Commission’s investigative process and details the Commission’s preliminary view of the conduct of the companies involved. The Statement of Objections is not a final decision and, as such, it does not prejudice the final outcome of the proceedings. Under the applicable procedural rules, the Commission will review the manufacturers’ responses before issuing a decision and any decision would be subject to further appeals. Iveco is evaluating the Statement of Objections and the documents on the Commission’s case file, and intends to issue its response to the Commission in due course and to avail itself of any opportunity allowed by the procedure to clarify its position in this matter. Given the numerous uncertainties in the next stages of the investigation, the Company is unable to predict the outcome or to estimate the potential fine at this time. Commitments CNH Industrial has entered operating lease contracts for the right to use industrial buildings and equipment with an average term of 10-20 years and 3-5 years, respectively. Total future minimum lease payments under non-cancellable lease contracts are as follows: Amount (in millions) 2016 $ 73 2017 59 2018 43 2019 33 2020 27 2021 and beyond 34 Total minimum rental commitments $ 269 Total rental expense for all operating leases was $69 million, $58 million, and $64 million for the years ended December 31, 2015, 2014, and 2013, respectively. At December 31, 2015, Financial Services has various agreements to extend credit for the following financing arrangements: Facility Total Credit Limit Utilized Not Utilized (in millions) Wholesale and dealer financing $ 7,007 $ 3,770 $ 3,237 Guarantees CNH Industrial provided loan guarantees on the debt or commitments of third parties and performance guarantees to non-consolidated affiliates as of December 31, 2015 and 2014 totaling $316 million and $383 million, respectively. Other Contingencies CNH Industrial is successor to Fiat Industrial, a company formed as a result of the demerger of Fiat S.p.A. (which, effective October 12, 2014, was merged into FCA) in favor of Fiat Industrial. As such, CNH Industrial continues to be liable jointly with FCA for the liabilities of FCA that arose prior to the effective date of the Demerger (January 1, 2011) and were still outstanding at that date (the “Liabilities”). This statutory provision is limited to the value of the net assets transferred to Fiat Industrial in the Demerger and survives until the Liabilities are satisfied in full. Furthermore, CNH Industrial may be responsible jointly with FCA in relation to tax liabilities, even if such tax liabilities exceed the value of the net assets transferred to Fiat Industrial in the Demerger. At December 31, 2015, the outstanding Liabilities amounted to approximately $1.3 billion (of which $1.1 billion consisted of bonds guaranteed by FCA). CNH Industrial evaluated as extremely remote the risk of FCA’s insolvency, and therefore no specific provision has been accrued in respect of the above mentioned potential joint liability. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Investments All Other Investments [Abstract] | |
Financial Instruments | Note 14: 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 did not elect 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 Level 2—Quoted prices for similar Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires the use of observable market data when available. Determination of Fair Value When available, the Company uses quoted market prices to determine fair value and classifies such items in Level 1. In some cases where a market price is not available, the Company will make use of observable market based inputs to calculate fair value, in which case the items are classified in Level 2. If quoted or observable market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters such as interest rates, currency rates, or yield curves. Items valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable. The following section describes the valuation methodologies used by the Company to measure various financial instruments at fair value, including an indication of the level in the fair value hierarchy in which each instrument is generally classified. Where appropriate, the description includes details of the valuation models, and the key inputs to those models, as well as any significant assumptions. Derivatives CNH Industrial utilizes derivative instruments to mitigate its exposure to interest rate and foreign currency exposures. Derivatives used as hedges are effective at reducing the risk associated with the exposure being hedged and are designated as a hedge at the inception of the derivative contract. CNH Industrial does not hold or issue derivative or other financial instruments for speculative purposes. The credit and market risk for interest rate hedges is reduced through diversification among various counterparties, utilizing mandatory termination clauses and/or collateral support agreements. Derivative instruments are generally classified as Level 2 or 3 in the fair value hierarchy. The cash flows underlying all derivative contracts were recorded in operating activities in the consolidated statements of cash flows. Foreign Exchange Contracts and Cross Currency Swaps CNH Industrial has entered into foreign exchange forward contracts, swaps, and options in order to manage and preserve the economic value of cash flows in non-functional currencies. CNH Industrial conducts its business on a global basis in a wide variety of foreign currencies and hedges foreign currency exposures arising from various receivables, liabilities and expected inventory purchases and sales. Derivative instruments that are utilized to hedge the foreign currency risk associated with anticipated inventory purchases and sales in foreign currencies are designated as cash flow hedges. Gains and losses on these instruments are deferred in accumulated other comprehensive income (loss) and recognized in earnings when the related transaction occurs. Ineffectiveness related to these hedge relationships is recognized currently in the consolidated statements of operations in the line “Other, net” and was not significant for all periods presented. The maturity of these instruments does not exceed 17 months and the after-tax gains (losses) deferred in accumulated other comprehensive income (loss) that will be recognized in net sales and cost of goods sold over the next twelve months assuming foreign exchange rates remain unchanged is approximately $20 million. If a derivative instrument is terminated because the hedge relationship is no longer effective or because the hedged item is a forecasted transaction that is no longer determined to be probable, the cumulative amount recorded in accumulated other comprehensive income (loss) is recognized immediately in earnings. Such amounts were insignificant in all periods presented. CNH Industrial also uses forwards and swaps to hedge certain assets and liabilities denominated in foreign currencies. Such derivatives are considered economic hedges and not designated as hedging instruments. The changes in the fair values of these instruments are recognized directly in income in “Other, net” and are expected to offset the foreign exchange gains or losses on the exposures being managed. All of CNH Industrial’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. The total notional amount of CNH Industrial’s foreign exchange derivatives was $7.3 billion and $8.6 billion at December 31, 2015 and 2014, respectively. Additionally, CNH Industrial employs cross currency swaps to convert fixed-rate foreign currency denominated debt to floating rate debt denominated in the functional currency of the borrowing entity. Cross currency swaps combine the elements of a foreign exchange contract and an interest rate swap into a single financial instrument. These instruments are designated as cash flow hedges and thus accounted for similarly to the foreign exchange contracts and interest rate swaps disclosed in this footnote. The maturity of these instruments does not exceed 12 months and the after-tax gains (losses) deferred in accumulated other comprehensive income (loss) are insignificant. The total notional amount of CNH Industrial’s cross currency swaps was $165 million at December 31, 2015. Interest Rate Derivatives CNH Industrial has entered into interest rate derivatives (swaps and caps) in order to manage interest rate exposures arising in the normal course of business. Interest rate derivatives that have been designated in cash flow hedging relationships are being used by the Company to mitigate the risk of rising interest rates related to existing debt and anticipated issuance of fixed-rate debt in future periods. Gains and losses on these instruments, to the extent that the hedge relationship has been effective, are deferred in accumulated other comprehensive income (loss) and recognized in interest expense over the period in which CNH Industrial recognizes interest expense on the related debt. Any ineffectiveness is recorded in “Other, net” in the consolidated statements of operations and was insignificant for all periods presented. The maximum length of time over which CNH Industrial is hedging its interest rate exposure through the use of derivative instruments designated in cash flow hedge relationships is 48 months. The after-tax gains (losses) deferred in accumulated other comprehensive income (loss) that will be recognized in interest expense over the next twelve months is approximately $(2) million. Interest rate derivatives that have been designated as fair value hedge relationships have been used by CNH Industrial to mitigate the risk of reductions in the fair value of existing fixed rate bonds and medium-term notes due to increases in LIBOR based interest rates. Gains and losses on these instruments are recorded in “Interest expense” in the period in which they occur and an offsetting gain or loss is also reflected in “Interest expense” based on changes in the fair value of the debt instrument being hedged due to changes in LIBOR based interest rates. Costs relating to the ineffectiveness of such transactions were insignificant in 2015, 2014 and 2013, respectively. CNH Industrial 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 CNH Industrial’s committed asset-backed facilities. Unrealized and realized gains and losses resulting from fair value changes in these instruments are recognized directly in income. These facilities require CNH Industrial to enter into interest rate derivatives. To ensure that these transactions do not result in the Company being exposed to this risk, CNH Industrial enters into a compensating position. Net gains and losses on these instruments were insignificant for the years ending December 31, 2015, 2014, and 2013. All of CNH Industrial’s interest rate derivatives outstanding as of December 31, 2015 and 2014 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 CNH Industrial’s interest rate derivatives was approximately $4.6 billion and $5.6 billion at December 31, 2015 and 2014, respectively. Financial Statement impact of CNH Industrial Derivatives The fair values of CNH Industrial’s derivatives as of December 31, 2015 and 2014 in the consolidated balance sheets are recorded as follows: 2015 2014 (in millions) Derivatives Designated as Hedging Instruments: Assets: Foreign exchange contracts: $ 61 $ 75 Interest rate derivatives: 30 37 Cross currency swaps: 16 — Total Assets $ 107 $ 112 Liabilities Foreign exchange contracts: $ (29 ) $ (178 ) Interest rate derivatives: (6 ) (12 ) Total Liabilities $ (35 ) $ (190 ) Derivatives Not Designated as Hedging Instruments: Assets: Foreign exchange contracts: $ 100 $ 86 Interest rate derivatives: 4 7 Total Assets $ 104 $ 93 Liabilities Foreign exchange contracts: $ (30 ) $ (37 ) Interest rate derivatives: (4 ) (8 ) Total Liabilities $ (34 ) $ (45 ) Pre-tax gains (losses) on the consolidated statements of operations related to CNH Industrial’s derivatives for the year ended December 31, 2015, 2014 and 2013 are recorded in the following accounts: 2015 2014 2013 (in millions) Fair Value Hedges Interest rate derivatives—Interest expense $ 9 $ (8 ) $ (45 ) Gains/(losses) on hedged items—Interest expense (9 ) 8 45 Cash Flow Hedges Recognized in accumulated other comprehensive income (effective portion): Foreign exchange contracts—accumulated other comprehensive income $ (19 ) $ (251 ) $ 208 Interest rate derivatives—accumulated other comprehensive income (39 ) 1 (7 ) Reclassified from accumulated other comprehensive income (effective portion): Foreign exchange contracts—Net sales $ 16 $ 14 $ 15 Foreign exchange contracts—Cost of goods sold (211 ) (7 ) 7 Foreign exchange contracts—Other, net (10 ) (30 ) 59 Interest rate derivatives—Interest expense (7 ) (12 ) (14 ) Not Designated as Hedges Foreign exchange contracts—Other, net $ 115 $ (14 ) $ 64 Items Measured at Fair Value on a Recurring Basis The following tables present for each of the fair-value hierarchy levels the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2015 and 2014: Level 1 Level 2 Total 2015 2014 2015 2014 2015 2014 (in millions) Assets Foreign exchange derivatives $ — $ — $ 161 $ 161 $ 161 $ 161 Interest rate derivatives — — 34 44 34 44 Cross currency swaps — — 16 — 16 — Available for sale securities 1 1 — — 1 1 Total Assets $ 1 $ 1 $ 211 $ 205 $ 212 $ 206 Liabilities Foreign exchange derivatives $ — $ — $ (59 ) $ (215 ) $ (59 ) $ (215 ) Interest rate derivatives — — (10 ) (20 ) (10 ) (20 ) Total Liabilities $ — $ — $ (69 ) $ (235 ) $ (69 ) $ (235 ) Fair Value of Other Financial Instruments The carrying value of cash and cash equivalents, restricted cash, trade accounts receivable and accounts payable included in the consolidated balance sheets approximates their fair value. Financial Instruments Not Carried at Fair Value The estimated fair market values of financial instruments not carried at fair value in the consolidated balance sheets as of December 31, 2015 and 2014 are as follows: 2015 2014 Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Financing receivables $ 19,001 $ 18,868 $ 21,472 $ 21,427 Debt $ 26,388 $ 26,371 $ 29,594 $ 29,883 Financing Receivables The fair value of financing receivables is based on the discounted values of their related cash flows at current market interest rates and they are classified as a Level 3 fair value measurement. Debt All debt is classified as a Level 2 fair value measurement, with the exception of the bonds issued by CNH Industrial Finance Europe S.A. which are classified as a Level 1 fair value measurement. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | Note 15: Shareholders’ Equity The Articles of Association of CNH Industrial provide for authorized share capital of €40 million, divided into 2 billion common shares and 2 billion special voting shares, each with a per share par value of €0.01. As of December 31, 2015, the Company’s share capital was €18 million (equivalent to $25 million), fully paid-in, and consisted of 1,362,048,989 common shares and 413,249,206 special voting shares. Upon the completion of the mergers of Fiat Industrial and CNH Global with and into CNH Industrial, CNH Industrial issued 1,348,867,772 common shares with a par value of €0.01 each, which were allotted to Fiat Industrial and CNH Global shareholders on the basis of the established exchange ratios of one common share of CNH Industrial for each share of Fiat Industrial and 3.828 common shares of CNH Industrial for each share of CNH Global. CNH Industrial also issued special voting shares (non-tradable) to eligible Fiat Industrial and CNH Global shareholders who maintained their ownership of the shares through the closing of the Merger and elected to receive special voting shares. On the basis of the requests received, CNH Industrial issued a total of 474,474,276 special voting shares with a par value of €0.01 each. Special Voting Shares In order to reward long-term ownership of CNH Industrial common shares and promote stability of CNH Industrial’s shareholder base, CNH Industrial’s Articles of Association provide for a loyalty voting structure that grants eligible long-term shareholders the equivalent of two votes for each CNH Industrial N.V. common share that they hold, through the issuance of special voting shares. After closing of the Merger, a shareholder may at any time elect to participate in the loyalty voting structure by requesting the registration of all or some of the common shares held by such shareholder in a separate register (the “Loyalty Register”) of the Company. If such common shares have been registered in the Loyalty Register for an uninterrupted period of three years in the name of the same shareholder, such shares will become “Qualifying Common Shares” and the relevant shareholder will be entitled to receive one special voting share for each such Qualifying Common Share. As mentioned above, CNH Industrial issued special voting shares with a nominal value of €0.01 each to those eligible shareholders who elected to receive such special voting shares upon completion of the merger of Fiat Industrial and of CNH Global respectively with and into CNH Industrial. The electing shareholders are not required to pay any amount to the Company in connection with the allocation of the special voting shares. CNH Industrial common shares are freely transferable, while, special voting shares are transferable exclusively in limited circumstances and they are not listed on the NYSE or the MTA. In particular, at any time, a holder of common shares that are Qualifying Common Shares who wants to transfer such common shares other than in limited specified circumstances (e.g., transfers to affiliates or relatives through succession, donation or other transfers) must request a de-registration of such Qualifying Common Shares from the Loyalty Register. After de-registration from the Loyalty Register, such common shares no longer qualify as Qualifying Common Shares and, as a result, the holder of such common shares is required to transfer the special voting shares associated with the transferred common shares to the Company for no consideration. The special voting shares have minimal economic entitlements as the purpose of the special voting shares is to grant long-term shareholders with an extra voting right by means of granting an additional special voting share, without granting such shareholders with any additional economic rights. However, as a matter of Dutch law, such special voting shares cannot be fully excluded from economic entitlements. Therefore, the Articles of Association provide that only a minimal dividend accrues to the special voting shares, which is not distributed, but allocated to a separate special dividend reserve. The impact of this special voting dividend reserve on the earnings per share of the common shares is not material. The following table shows a reconciliation between the composition of the share capital of CNH Industrial N.V. at September 30, 2013 on the basis of the shares issued according to the exchange ratios with Fiat Industrial and CNH Global shares upon the completion of the mergers, and the composition of the share capital of CNH Industrial at December 31, 2015, 2014, and 2013: (number of shares) Common shares pre-merger CNH Industrial N.V. Common Shares CNH N.V. Special Voting Shares Total CNH Industrial N.V. Shares Fiat Industrial S.p.A. common shares 1,222,560,247 (a) 1,222,560,247 (*) 451,262,083 (**) 1,673,822,330 CNH Global N.V. common shares (noncontrolling interests) 32,995,696 126,307,525 (*) 23,212,193 (**) 149,519,718 Total CNH Industrial N.V. shares at September 30, 2013 1,348,867,772 474,474,276 1,823,342,048 Capital increase 1,205,758 — 1,205,758 Retirement of special voting shares — (5,479,890 ) (5,479,890 ) Total CNH Industrial N.V. shares at December 31, 2013 1,350,073,530 468,994,386 1,819,067,916 Capital increase 5,246,110 — 5,246,110 Retirement of special voting shares — (53,594,883 ) (53,594,883 ) Total CNH Industrial N.V. shares at December 31, 2014 1,355,319,640 415,399,503 1,770,719,143 Capital increase 6,729,349 — 6,729,349 Retirement of special voting shares — (2,150,297 ) (2,150,297 ) Total CNH Industrial N.V. shares at December 31, 2015 1,362,048,989 413,249,206 1,775,298,195 (a) Total n. 1,222,568,882 Fiat Industrial S.p.A. common shares are shown net of 8,635 treasury shares that have been cancelled at the closing of the merger. (*) Allotted on the basis of the established exchange ratios of one common share of CNH Industrial N.V. for each share of Fiat Industrial S.p.A. and 3.828 common shares of CNH Industrial N.V for each share of CNH Global N.V. (**) Allotted to eligible Fiat Industrial N.V. and CNH Global N.V. shareholders who had elected to receive special voting shares. During the years ended December 31, 2015 and December 31, 2014, 2 million and 54 million special voting shares were acquired by the Company following the de-registration of the corresponding number of qualifying common shares from the Loyalty Register, respectively. Furthermore, during the years ended December 31, 2015 and December 31, 2014, the Company issued 6.7 million and 5.2 million new common shares primarily due to the vesting or exercise of share-based awards. See “Note 16: Share Based Compensation” for further discussion. Dividend On March 4, 2016, the Board of Directors of CNH Industrial N.V. recommended to the Company’s shareholders that the Company declare a dividend of €0.13 per common share, totaling approximately €177 million (equivalent to approximately $195 million, translated at the exchange rate reported by the European Central Bank on February 26, 2016). The proposal is subject to the approval of the Company’s shareholders at the Annual General Meeting of shareholders to be held on April 15, 2016. At the Annual General Meeting of shareholders held by CNH Industrial on April 15, 2015, shareholders approved the payment of a dividend of €0.20 per common share, translated at the exchange rate reported by the European Central Bank on February 27, 2015). The dividend was paid in April 2015 for a total amount of €272 million ($291 million). At the Annual General Meeting of shareholders held by CNH Industrial on April 16, 2014, shareholders approved the payment of a dividend of €0.20 per common share. The dividend was paid in April 2014 for a total amount of €271 million ($375 million). |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 16: Share-Based Compensation For the years ended December 31, 2015, 2014 and 2013, CNH Industrial recognized total share-based compensation expense of $49 million, $49 million and $39 million, respectively. For the years ended December 31, 2015, 2014, and 2013, CNH Industrial recognized a total tax benefit relating to share-based compensation expense of $3 million, $4 million, and $8 million, respectively. As of December 31, 2015, CNH Industrial had unrecognized share-based compensation expense related to nonvested awards of approximately $76 million based on current assumptions related to achievement of specified performance objectives, when applicable. Unrecognized share-based compensation costs will be recognized over a weighted-average period of 2.1 years. CNH Industrial’s equity awards are governed by several plans: i) CNH Industrial N.V. Equity Incentive Plan (“CNH Industrial EIP”); ii) CNH Industrial N.V. Directors’ Compensation Plan (“CNH Industrial DCP”); iii) CNH Global N.V. Equity Incentive Plan (“CNH EIP”); iv) CNH Global N.V. Directors’ Compensation Plan (“CNH DCP”); and, v) Fiat Industrial Long-Term Incentive Plan (“Fiat Industrial Plan”). CNH Industrial N.V. Equity Incentive Plan (“CNH Industrial EIP”) At the Annual General Meeting of Shareholders (“AGM”) held on April 16, 2014, the Company’s shareholders approved the adoption of the CNH Industrial EIP, an umbrella program defining the terms and conditions for any subsequent long-term incentive program, whose main features are as follows: • The EIP allows grants of the following specific types of equity awards to any current or prospective executive director, officer or employee of, or service provider to, CNH Industrial: stock options, stock appreciation rights, restricted share units, restricted stock, performance shares or performance share units and other stock-based awards that are payable in cash, common shares or any combination thereof subject to the terms and conditions established by the Compensation Committee. • The EIP authorizes 25 million common shares over a five-year period, of which a maximum of 7 million would be authorized for awards to executive directors. These shares may be newly issued shares or treasury shares. • The EIP will terminate at, and no more awards will be permitted to be granted thereunder ten years after its adoption by the Board of Directors of CNH Industrial. The termination of the EIP will not affect previously granted awards. Performance Share Units In 2014 and 2015, CNH Industrial issued to its Chief Executive Officer and selected key employees approximately 12 million and 1 million Performance Share Units (“PSUs”), respectively, with financial performance goals covering a five-year period from January 1, 2014 to December 31, 2018. The performance goals include a performance condition as well as a market condition, with each weighted at 50% and paying out independently of the other. Half of the award will vest if the performance condition is met; whereas the other half, which is based on the market condition, has a payout scale ranging from 0% to 150%. Accordingly, the total number of shares that will eventually be granted may vary from the original estimate of 12 million shares. One third of total grant will vest in February 2017, a cumulative two-thirds in February 2018, and a cumulative 100% in February 2019 if the respective financial goals for 2014 to 2016, 2014 to 2017 and 2014 to 2018 are achieved. The fair values of the awards that are contingent upon the achievement of the performance condition were measured using stock prices on respective grant dates adjusted for the present value of future dividends that employees will not receive during the vesting period. The weighted average fair value for the PSUs based on the performance condition that were issued in 2014 and 2015 is $9.48 and $9.33 per share, respectively. The fair values of the awards that are based on the market condition were calculated using the Monte Carlo Simulation model. The weighted average fair value for the awards that were issued in 2014 and 2015 is $8.19 and $7.95 per share, respectively. As a significant majority of the awards (approximately 90% of total awards as of December 31, 2015) was issued on June 9 and 25, 2014, the key assumptions utilized to calculate the grant-date fair values for awards issued on these two grant dates are listed below: Key Assumptions for awards issued on June 9, 2014 June 25, 2014 Expected Volatility 44.5% 44.1% Dividend yield 2.6% 2.7% Risk-free rate 1.69% 1.68% The expected volatility is based on a weighted average of historical volatility experienced by the common shares of CNH Global, Fiat Industrial and CNH Industrial over a five-year period ending on the grant date. The expected dividend yield was based on CNH Industrial’s historical dividend payout as management expected the dividend payout for future years to be consistent. The risk-free interest rate was based on the yields of five-year U.S. Treasury bonds. The following table reflects the activity of performance-based share units under CNH Industrial EIP for the year ended December 31, 2015: 2015 Performance Shares Weighted Average Grant-Date Fair Value Nonvested at beginning of year 12,101,760 $ 8.84 Granted 980,400 $ 6.25 Forfeited (1,490,900 ) $ 8.69 Vested — $ — Nonvested at end of year 11,591,260 $ 8.64 Restricted Share Units In 2014 and 2015, CNH Industrial issued to selected employees approximately 1 million and 2 million shares of Restricted Share Units (“RSUs) with a weighted average fair value of $9.21 and $8.60 per share, respectively. These shares will vest in three equal tranches over a three-year period. The fair value of the award is measured using the stock price on the grant date adjusted for the present value of future dividends that employees will not receive during the vesting period. Additionally, CNH Industrial issued 3 million restricted share units to the Chairman of CNH Industrial, in June 2014. The weighted average fair value of these shares is $10.41 per share, measured using the stock price on the grant date adjusted for the present value of future dividends that the Chairman will not receive during the vesting period. These shares are service based and will vest in five tranches at the end of each year. The first tranche and second tranche of 750 thousand shares each vested on December 31, 2014 and December 31, 2015, respectively, which were exercised on February 23, 2015 and February 8, 2016, respectively. The following table reflects the activity of restricted share units under CNH Industrial EIP for the year ended December 31, 2015: 2015 Restricted Shares Weighted Average Grant-Date Fair Value Nonvested at beginning of year 3,512,139 $ 9.88 Granted 1,531,900 $ 8.08 Forfeited (158,186 ) $ 9.29 Vested (1,140,333 ) $ 10.21 Nonvested at end of year 3,745,520 $ 9.67 CNH Industrial N.V. Directors’ Compensation Plan (“CNH Industrial DCP”) On September 9, 2013, the CNH Industrial DCP was approved by the shareholders and adopted by the Board of Directors of CNH Industrial. The CNH Industrial DCP provides for the payment of the following to eligible members of the CNH Industrial Board in the form of cash, and/or common shares of CNH Industrial, and/or options to purchase common shares of CNH Industrial, provided that such members do not receive salary or other employment compensation from CNH Industrial or FCA., and their subsidiaries and affiliates: · $125,000 annual retainer fee for each Non-Executive Director · An additional $25,000 for each member of the Audit Committee and $35,000 for the Audit Committee Chairman. · An additional $20,000 for each member of every other Board committee and $25,000 for the committee chairman. (collectively, the “fees”). Each quarter of the CNH Industrial DCP year, the eligible directors elect the form of payment of their fees. If the elected form is common shares, the eligible director will receive as many common shares as equal to the amount of fees the director elects to be paid in common shares, divided by the fair market value of a CNH Industrial common share on the date that the quarterly payment is made. Common shares issued to the eligible director vest immediately upon grant. If an eligible director elects to receive all or a portion of fees in the form of a stock option, the number of common shares underlying the stock option is determined by dividing (i) by (ii) where (i) equals the dollar amount of the quarterly payment that the eligible director elects to receive in the form of stock options multiplied by four and (ii) the fair market value of the common shares on the date that the quarterly payment is made. The CNH Industrial DCP defines fair market value, as applied to each ordinary share, to be equal to the average of the highest and lowest sale price of a CNH Industrial common share during normal trading hours on the last trading day of each plan quarter in which sales of common shares on the New York Stock Exchange are recorded. Stock options granted as a result of such an election vest immediately, but shares purchased under options cannot be sold for six months following the date of exercise. Stock options terminate upon the earlier of: (1) ten years after the grant date; or (2) six months after the date an individual ceases to be a director. There were 0.2 million common shares authorized for issuance under the CNH Industrial DCP. As of December 31, 2015, 0.05 million stock options were issued under the CNH Industrial DCP at a weighted average exercise price of $9.42 per share and weighted average fair value of $2.87 per share. CNH Global Directors’ Compensation Plan (“CNH DCP”) CNH Global Directors’ Compensation Plan stipulates the right for directors of former CNH Global to be compensated in the form of cash, and/or common shares of CNH Global N.V., and/or options to purchase common shares of CNH Global. On September 29, 2013, CNH Industrial assumed the sponsorship of the CNH DCP in connection with the Merger. Stock options issued under the CNH DCP were converted using the CNH Global exchange ratio of 3.828 CNH Industrial shares for each CNH Global common share and exercisable for common shares of CNH Industrial N.V. upon September 29, 2013. As of December 31, 2015, approximately 0.03 million stock options from the CNH DCP were still outstanding. The CNH DCP was terminated effective as of the Merger and no new equity awards will be issued under the CNH DCP. CNH Global Equity Incentive Plan (the “CNH EIP”) The CNH Global Equity Incentive Plan provides for grants of stock options, restricted share units and performance share units to former officers and employees of CNH Global. On September 29, 2013, CNH Industrial assumed the sponsorship of the CNH EIP in connection with the Merger. CNH Industrial can not issue any new equity awards under the CNH EIP; however, CNH Industrial is required to issue shares under the CNH EIP to settle the exercise or vesting of the existing equity awards. On September 29, 2013, outstanding stock options, unvested restricted share units and performance share units under the CNH EIP became exercisable or convertible for common shares of CNH Industrial N.V. The number of shares of outstanding equity awards was increased and exercise price of stock options reduced to take into account the CNH Global exchange ratio of 3.828 CNH Industrial shares for each CNH Global common share. The conversion did not change the aggregate fair value of the outstanding equity awards and, therefore, resulted in no additional share-based compensation expense in 2013. Stock Option Plan In September 2012, approximately 2.7 million performance-based stock options (at target award levels) were issued under the CNH EIP (the “2012 Grant”). Upon the achievement of CNH Global’s 2012 target performance objective, approximately 4 million of options were granted. These options vested in three equal tranches in February 2012, 2013 and 2014. Options granted under the CNH EIP have a contractual life of five years from the initial vesting date. No stock options were issued in 2013, 2014, and 2015 under the CNH EIP. The following table summarizes outstanding stock options under the CNH EIP at December 31, 2015: Options Outstanding Options Exercisable Range of Exercise Price Shares Outstanding Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Aggregate Intrinsic Value(A) Shares Exercisable Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Aggregate Intrinsic Value(A) $5.01–$10.00 4,491,907 1.6 $ 8.32 $ 30,755 4,491,907 1.6 $ 8.32 $ 30,755 $10.01–$15.00 4,278,010 1.2 $ 10.15 $ — 4,278,010 1.2 $ 10.15 $ — $ 30,755 $ 30,755 (A) The Black-Scholes pricing model was used to calculate the fair value of stock options for options granted in 2012 under the CNH EIP. The assumptions used under the Black-Scholes pricing model were as follows: 2012 Risk-free interest rate 0.40 % Expected dividend yield 0.00 % Price volatility of CNH Global N.V. shares 51.70 % Option life (years) 3.39 The risk-free interest rate was based on the U.S. Treasury rate for a bond of approximately the expected life of the options. The expected volatility was based on the historical activity of common shares of CNH Global N.V. over a period at least equal to the expected life of the options. The expected life for the CNH EIP grant was based on the average of the vesting period of each tranche and the original contract term of 65 to 70 months. The expected dividend yield was determined to be zero as management did not expect CNH Global to pay ordinary dividends. Based on this model, the fair value of stock options awarded under the CNH EIP was $3.60. The following table reflects the stock option activity under the CNH EIP for the year ended December 31, 2015: 2015 Shares Weighted- Average Exercise Price Outstanding at beginning of year 10,861,553 $ 9.03 Forfeited (1,033,560 ) $ 9.58 Expired — $ — Exercised (1,058,075 ) $ 6.95 Outstanding at end of year 8,769,918 $ 9.21 Exercisable at end of year 8,769,918 $ 9.21 Performance Share Units In 2012, CNH Global issued several grants of performance-based share units. The total number of shares granted in 2012 was 0.5 million with a weighted average fair value of $10.62 per share. These shares were originally designed to cliff vest in February 2015 based on the achievement of their respective performance targets of CNH Global. In connection with the Merger, the performance targets for these awards had been deemed to be met and the outstanding shares continued to vest in February 2015 when employees have provided the required service. Awards that were modified in the same manner included the third tranche of several performance-based share units issued prior to 2012 which were scheduled to vest in February 2015 upon the achievement of certain performance targets of CNH Global. Overall, approximately 3 million of performance-based share units were converted to service based restricted shares, which resulted in no performance-based share units outstanding as of December 31, 2014. This modification did not result in any additional compensation cost in 2014. No performance-based shares were granted in 2013, 2014, and 2015 under the CNH EIP. Restricted Share Units In 2012, 0.7 million restricted share units were granted under the CNH EIP with a weighted average fair value of $11.40 per share. Restricted share units are service based and vest in three equal installments over three years starting from the grant date. Compensation cost for the restricted share units is recognized on a straight-line basis over the requisite service period for each separate vesting portion of the award as of the award was, in substance, multiple awards. No restricted shares units were granted in 2013, 2014, and 2015 under the CNH EIP. The following table reflects the activity of restricted share units under CNH EIP for the year ended December 31, 2015: 2015 Restricted Shares Weighted Average Grant-Date Fair Value Nonvested at beginning of year 3,191,444 $ 7.82 Granted — $ — Forfeited (78,869 ) $ 8.79 Vested (3,112,575 ) $ 7.79 Nonvested at end of year — $ — The fair value of performance-based shares and restricted shares under the CNH EIP was based on the market value of CNH Global’s common shares on the date of the grant. Special Dividend On December 28, 2012, CNH Global had paid a special dividend of $10 per common share to its minority shareholders of record as of December 20, 2012, as part of the merger agreement with Fiat Industrial. In accordance with the anti-dilutive provisions of both the CNH EIP and CNH DCP, on January 28, 2013, the CNH Global Corporate Governance and Compensation Committee approved required equitable adjustments to outstanding equity awards. The adjustments were retrospectively made to outstanding options under the CNH EIP and CNH DCP, unvested performance share units and unvested restricted share units under the CNH EIP, as of the ex-dividend date on December 18, 2012. The exercise price was reduced and the number of outstanding shares increased for stock options, and the number of unvested share units was increased for performance share units and restricted share units, to maintain the pre-dividend fair value. The weighted average exercise price of outstanding options decreased from $40.45 to $33.34, the number of outstanding options increased from 4.6 million to 5.6 million, the number of unvested performance share units increased from 1.9 million to 2.3 million and the number of unvested restricted share units increased from 0.45 million to 0.55 million. These additional shares were issued in January 2013. The aggregate fair value, the aggregate intrinsic value and the ratio of the exercise price to the market price are approximately equal immediately before and after the adjustment. Therefore, no additional compensation expense was recognized in 2013. Fiat Industrial Plan In the AGM held on April 5, 2012, Fiat Industrial shareholders approved the adoption of a Long Term Incentive Plan consisting of two components (Company Performance LTI and Retention LTI) taking the form of stock grants. According to the Fiat Industrial Plan, Fiat Industrial granted the Chairman of Fiat Industrial 1 million rights as part of the Company Performance LTI and 1.1 million rights as part of the Retention LTI. On September 29, 2013, CNH Industrial assumed the sponsorship of Fiat Industrial Long-Term Incentive Plan (the “Fiat Industrial Plan”). On the Effective Date, the unvested equity awards under the former Fiat Industrial Plan became convertible for common shares of CNH Industrial N.V. on a one-for-one basis. The conversion did not change the aggregate fair value of the outstanding equity awards and, therefore, resulted in no additional share-based compensation expense in 2013. 1.1 million rights from the Retention LTI vested ratably over three years on February 22, 2013, 2014 and 2015. The last tranche of rights was exercised on February 23, 2015. Under the terms of the Long Term Incentive Plan, the rights to the Company Performance LTI will vest on condition that predetermined financial performance targets for the period from January 1, 2012 to December 31, 2014 are met and on condition that the beneficiary remains in office up to the date of approval of the consolidated financial statements at December 31, 2014 by the Board of Directors; the rights will become exercisable and may be exercised in a single installment subsequent to the date of approval of the consolidated financial statements at December 31, 2014 by the Board of Directors. In connection with the Merger, upon recommendation of the Compensation Committee, the Board of Directors of CNH Industrial resolved to consider the performance conditions met for the Chairman’s Company performance share units. This modification did not result in any additional compensation expenses. The units vested on February 1, 2015 and were exercised on February 23, 2015. The two awards were settled by issuing new shares. The following table reflects the share activity under the Company Performance LTI for the year ended December 31, 2015: 2015 Number of Shares Grant-Date Fair Value (in €) Nonvested at beginning of year 1,000,000 € 7.795 Granted — € — Forfeited — € — Vested (1,000,000 ) € 7.795 Nonvested at end of year — € — The following table reflects the share activity under the Retention LTI for the year ended December 31, 2015: 2015 Number of Shares Grant-Date Fair Value (in €) Nonvested at beginning of year 366,666 € 7.795 Granted — € — Forfeited — € — Vested (366,666 ) € 7.795 Nonvested at end of year — € — The fair value of these awards was based on the market value of Fiat Industrial’s common shares on the date of the grant. Additional Share-Based Compensation Information The table below provides additional share-based compensation information for the years ended December 31, 2015, 2014 and 2013: 2015 2014 2013 (in millions) Total intrinsic value of options exercised $ 1 $ 5 $ 30 Fair value of shares vested $ 36 $ 32 $ 50 Cash received from share award exercises $ 8 $ 10 $ 63 Tax benefit of options exercised and shares vested $ — $ — $ 3 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 17: Earnings per Share The Company’s basic earnings per share (“EPS”) is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. For 2013, net income available to common shareholders included the impact from the acquisition of the CNH Global’s noncontrolling interest on September 29, 2013. Accordingly, newly issued CNH Industrial common shares were weighted for the period of three months when they were outstanding in 2013. The basic EPS for 2013 reflected the net income and weighted-average number of all classes of shares outstanding of Fiat Industrial. The diluted EPS takes into consideration potential common share outstanding when inclusion is not anti-dilutive. The effect of dilutive securities is calculated using the treasury stock method. In connection with the Mergers, CNH Industrial assumed the sponsorship of the share-based payment awards pursuant to which shares of Fiat Industrial or CNH Global were to be issued. The diluted weighted-average number of common shares outstanding for 2013 was determined by including the potential common shares from these equity awards pro-rated for the three-month period when they were outstanding. Before the mergers, Fiat Industrial did not have any equity instruments with potential dilutive effect. The following table sets forth the computation of basic EPS and diluted EPS for the years ended December 31, 2015, 2014 and 2013. 2015 2014 2013 (in millions, except per share data) Basic: Net income attributable to CNH Industrial $ 253 $ 710 $ 677 Weighted average common shares outstanding—basic 1,361 1,354 1,255 Basic earnings per share $ 0.19 $ 0.52 $ 0.54 Diluted: Net income attributable to CNH Industrial $ 253 $ 710 $ 677 Weighted average common shares outstanding—basic 1,361 1,354 1,255 Effect of dilutive securities (when dilutive): Stock compensation plans (A) 2 6 2 Weighted average common shares outstanding—diluted 1,363 1,360 1,257 Diluted earnings per share $ 0.19 $ 0.52 $ 0.54 ___________________________ (A) For the twelve months ended December 31, 2015, there were no shares outstanding excluded from the calculation of diluted earnings per share due to anti-dilutive impact. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 18: Accumulated Other Comprehensive Income (Loss) The Company’s share of comprehensive income (loss) includes net income plus other comprehensive income, which includes changes in fair value of certain derivatives designated as cash flow hedges, certain changes in pension and other retirement benefit plans, foreign currency translations gains and losses, changes in the fair value of available-for-sale securities, the Company’s share of other comprehensive income of entities accounted for using the equity method, and reclassifications for amounts included in net income less net income and other comprehensive income attributable to the noncontrolling interest. For more information on our derivative instruments, see “Note 14: Financial Instruments”. For more information on our pensions and retirement benefit obligations, see “Note 11: Employee Benefit Plans and Postretirement Benefits”. The Company’s other comprehensive income (loss) amounts are aggregated within accumulated other comprehensive income (loss). The tax effect for each component of other comprehensive income (loss) consisted of the following: Year ended December 31, 2015 Gross Amount Income Taxes Net Amount Unrealized gain (loss) on cash flow hedges $ 154 $ (34 ) $ 120 Changes in retirement plans’ funded status 191 (33 ) 158 Foreign currency translation (359 ) — (359 ) Unrealized gain (loss) on available for sale securities — — — Share of other comprehensive loss of entities using the equity method (47 ) — (47 ) Other comprehensive loss $ (61 ) $ (67 ) $ (128 ) Year ended December 31, 2014 Gross Amount Income Taxes Net Amount Unrealized gain (loss) on cash flow hedges $ (215 ) $ 49 $ (166 ) Changes in retirement plans’ funded status (337 ) 55 (282 ) Foreign currency translation 125 — 125 Unrealized gain (loss) on available for sale securities — — — Share of other comprehensive loss of entities using the equity method (44 ) — (44 ) Other comprehensive income (loss) $ (471 ) $ 104 $ (367 ) Year ended December 31, 2013 Gross Amount Income Taxes Net Amount Unrealized gain (loss) on cash flow hedges $ 134 $ (40 ) $ 94 Changes in retirement plans’ funded status 197 (110 ) 87 Foreign currency translation (510 ) — (510 ) Unrealized gain (loss) on available for sale securities (2 ) 1 (1 ) Share of other comprehensive loss of entities using the equity method (23 ) — (23 ) Other comprehensive loss $ (204 ) $ (149 ) $ (353 ) The changes, net of tax, in each component of accumulated other comprehensive income (loss) consisted of the following: Unrealized Gain (Loss) Cash Flow Hedges Change in Retirement Plans’ Funded Status Foreign Currency Translation Unrealized Gain Available For Sale Securities Share of Other Comprehensive Income of Entities Using the Equity Method Total Balance, December 31, 2012 $ (41 ) $ (810 ) $ (70 ) $ 2 $ 8 $ (911 ) Other comprehensive income (loss), before reclassifications 144 53 (492 ) — (20 ) (315 ) Amounts reclassified from other comprehensive income (loss) (55 ) 38 — (2 ) — (19 ) Other comprehensive income (loss)¹ 89 91 (492 ) (2 ) (20 ) (334 ) Purchase of noncontrolling interest 1 (107 ) (12 ) — (10 ) (128 ) Balance, December 31, 2013 49 (826 ) (574 ) — (22 ) (1,373 ) Other comprehensive income (loss), before reclassifications (201 ) (337 ) 126 — (44 ) (456 ) Amounts reclassified from other comprehensive income 35 58 — — — 93 Other comprehensive income (loss)¹ (166 ) (279 ) 126 — (44 ) (363 ) Balance, December 31, 2014 (117 ) (1,105 ) (448 ) — (66 ) (1,736 ) Other comprehensive income (loss), before reclassifications (28 ) 76 (358 ) — (47 ) (357 ) Amounts reclassified from other comprehensive income 148 82 — — — 230 Other comprehensive income (loss)¹ 120 158 (358 ) — (47 ) (127 ) Balance, December 31, 2015 $ 3 $ (947 ) $ (806 ) $ — $ (113 ) $ (1,863 ) ¹ Excluded from the table above is other comprehensive loss allocated to noncontrolling interests of $(1), $(4) and $(19) for the years ended December 31, 2015, 2014 and 2013, respectively. Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in 2015 and 2014 consisted of the following: Amount Reclassified from Other Comprehensive Income (Loss) Consolidated Statement of Operations line 2015 2014 (in millions) Cash flow hedges $ (16 ) $ (14 ) Net sales 211 7 Cost of goods sold 10 30 Other, net 7 12 Interest expense (64 ) — Income taxes $ 148 $ 35 Change in retirement plans’ funded status: Amortization of actuarial losses $ 102 $ 82 * Amortization of prior service cost (9 ) (9 ) * (11 ) (15 ) Income taxes $ 82 $ 58 Total reclassifications, net of tax $ 230 $ 93 * These amounts are included in net periodic pension and other postretirement benefit cost. See “Note 11: Employee Benefit Plans and Postretirement Benefits” for addition information. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 19: Segment Reporting The operating segments through which the Company manages its operations are based on the internal reporting used by the Company’s Chief Operating Decision Maker (“CODM”) to assess performance and make decisions about resource allocation. The segments are organized based on products and services provided by the Company. Following the Merger between Fiat Industrial and CNH Global, the Company has realigned its reportable segments reflecting the five businesses now directly managed by CNH Industrial N.V., consisting of: (i) Agricultural Equipment, (ii) Construction Equipment, (iii) Commercial Vehicles, (iv) Powertrain, and (v) Financial Services. CNH Industrial has five operating segments: Agricultural Equipment designs, manufactures and distributes a full line of farm machinery and implements, including two-wheel and four-wheel drive tractors, crawler tractors (Quadtrac ® ), combines, cotton pickers, grape and sugar cane harvesters, hay and forage equipment, planting and seeding equipment, soil preparation and cultivation implements and material handling equipment. Agricultural equipment is sold under the New Holland Agriculture and Case IH Agriculture brands, as well as the Steyr brand in Europe. Following our acquisition of substantially all of the assets of Miller-St. Nazianz Inc. (“Miller”) in November 2014, certain agricultural equipment products are also sold under the Miller brand, primarily in North America. Construction Equipment designs, manufactures and distributes a full line of construction equipment including excavators, crawler dozers, graders, wheel loaders, backhoe loaders, skid steer loaders, compact track loaders and telehandlers. Construction equipment is sold under the New Holland Construction and Case Construction Equipment brands. Commercial Vehicles designs, produces and sells a full range of light, medium and heavy vehicles for the transportation and distribution of goods, under the Iveco brand, commuter buses and touring coaches under the Iveco Bus (previously Iveco Irisbus) and Heuliez Bus brands, quarry and mining equipment under the Iveco Astra brand, firefighting vehicles under the Magirus brand and vehicles for civil defense and peace-keeping missions under the Iveco Defence Vehicles brand. Powertrain designs, manufactures and offers a range of propulsion and transmission systems and axles for on- and off-road applications, as well as engines for marine application and power generation under the FPT Industrial brand. Financial Services offers a range of financial services to dealers and customers. Financial Services provides and administers retail financing to customers for the purchase or lease of new and used industrial equipment or vehicles and other equipment sold by CNH Industrial dealers. In addition, Financial Services provides wholesale financing to CNH Industrial dealers. Wholesale financing consists primarily of floor plan financing and allows the dealers to purchase and maintain a representative inventory of products. Revenues for each reported segment are those directly generated by or attributable to the segment as a result of its usual business activities and include revenues from transactions with third parties as well as those deriving from transactions with other segments, recognized at normal market prices. Segment expenses represent expenses deriving from each segment’s business activities both with third parties and other operating segments or which may otherwise be directly attributable to it. Expenses deriving from business activities with other segments are recognized at normal market prices. Historically and through 2014, the CODM assessed the performance of the operating segments mainly on the basis of trading profit/(loss), earned by those segments, prepared in accordance with International Financial Reporting Standards. Trading profit was defined as income before restructuring, gains/(losses) on disposal of investments and other unusual items, interest expense of Industrial Activities, income taxes, equity in income (loss) of unconsolidated subsidiaries and affiliates, and noncontrolling interests. Due to the Company’s transition to reporting under U.S. GAAP during 2014, the CODM also reviewed the 2014 performance of operating segments using operating profit calculated using U.S. GAAP. Beginning in 2015, the CODM began reviewing the performance of operating segments using only Operating Profit of Industrial Activities calculated using U.S. GAAP measures. Operating Profit of Industrial Activities is defined as net sales less cost of goods sold, SG&A expenses, and R&D expenses. Operating Profit of Financial Services is defined as revenues, less SG&A expenses, interest expenses and certain other operating expenses. In addition, with reference to Financial Services, the CODM assesses the performance of the segment on the basis of net income prepared in accordance with U.S. GAAP. Furthermore, the CODM reviews expenditures for long-lived assets; however, other operating segment asset information is not readily available. A reconciliation from consolidated operating profit to income before income taxes and equity in income of unconsolidated subsidiaries and affiliates under U.S. GAAP for the years ended December 31, 2015, 2014 and 2013 are provided below. Years Ended December 31, 2015 2014 2013 (in millions) Operating profit $ 1,635 $ 2,199 $ 2,277 Adjustments/reclassifications to convert from operating profit to U.S. GAAP income before income taxes and equity in income of unconsolidated subsidiaries: Restructuring expenses (84 ) (184 ) (71 ) Interest expenses of Industrial Activities, net of interest income and eliminations (479 ) (613 ) (548 ) Other, net (505 ) (313 ) (284 ) Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates under U.S. GAAP $ 567 $ 1,089 $ 1,374 Segment Information The following summarizes operating profit by reportable segment: Years Ended December 31, 2015 2014 2013 (in millions) Agricultural Equipment $ 952 $ 1,770 $ 2,008 Construction Equipment 90 79 (97 ) Commercial Vehicles 283 29 74 Powertrain 186 223 187 Eliminations and other (79 ) (113 ) (77 ) Total Operating profit of Industrial Activities $ 1,432 $ 1,988 $ 2,095 Financial Services 515 554 514 Eliminations and other (312 ) (343 ) (332 ) Operating profit $ 1,635 $ 2,199 $ 2,277 A summary of additional operating segment information as of and for the years ended December 31, 2015, 2014 and 2013 is as follows: Years Ended December 31, 2015 2014 2013 (in millions) Revenues: Agricultural Equipment $ 11,025 $ 15,204 $ 16,763 Construction Equipment 2,542 3,346 3,258 Commercial Vehicles 9,542 10,888 11,278 Powertrain 3,560 4,464 4,412 Eliminations and other (1,992 ) (2,704 ) (3,050 ) Net sales of Industrial Activities 24,677 31,198 32,661 Financial Services 1,603 1,828 1,679 Eliminations and other (368 ) (471 ) (504 ) Total Revenues $ 25,912 $ 32,555 $ 33,836 Depreciation and Amortization (*): Agricultural Equipment $ 303 $ 288 $ 269 Construction Equipment 70 85 77 Commercial Vehicles 198 209 185 Powertrain 123 144 159 Other activities and adjustments — (1 ) (4 ) Depreciation and amortization of Industrial Activities 694 725 686 Financial Services 5 6 4 Depreciation and amortization $ 699 $ 731 $ 690 Expenditures for long-lived assets (*): Agricultural Equipment $ 308 $ 408 $ 542 Construction Equipment 47 65 72 Commercial Vehicles 182 391 458 Powertrain 112 136 148 Other activities 4 5 — Expenditures for long-lived assets of Industrial Activities 653 1,005 1,220 Financial Services 3 17 7 Expenditures for long-lived assets $ 656 $ 1,022 $ 1,227 * Excluding assets sold with buy-back commitments and equipment on operating leases Geographic Information CNH Industrial has its principal office in London, England, U.K. Revenues earned in the U.K. from external customers were $1,008 million, $1,054 million, and $993 million for the years ended December 31, 2015, 2014, and 2013, respectively. Revenues earned in the rest of the world from external customers were $24,904 million, $31,501 million, and $32,843 million for the years ended December 31, 2015, 2014, and 2013, respectively. The following highlights revenues earned from external customers in the rest of the world by destination: 2015 2014 2013 (in million) United States $ 5,533 $ 7,472 $ 7,687 France 2,580 2,913 3,030 Italy 2,524 2,854 2,688 Brazil 1,670 3,708 4,750 Germany 1,565 1,845 1,677 Canada 1,229 1,606 1,687 Australia 846 926 1,015 Spain 810 807 666 Argentina 768 570 937 Poland 479 562 504 Other 6,900 8,238 8,202 Total Revenues from external customers in the rest of world $ 24,904 $ 31,501 $ 32,843 Total long-lived tangible and intangible assets located in the U.K. were $253 million and $244 million at December 31, 2015 and 2014, respectively, and the total of such assets located in the rest of the world totaled $11,320 million and $11,473 million at December 31, 2015 and 2014, respectively. The following highlights long-lived tangible and intangible assets by geographic in the rest of the world: At December 31, 2015 2014 ($ million) United States $ 5,202 $ 4,913 Italy 1,580 1,965 France 794 810 Spain 579 546 Germany 849 816 Brazil 371 490 Canada 441 482 China 313 292 Other 1,191 1,159 Total Long-lived assets in the rest of the world $ 11,320 $ 11,473 In 2015, 2014 and 2013, no single external customer of CNH Industrial accounted for 10 percent or more of consolidated revenues. |
Related Party Information
Related Party Information | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Information | Note 20: Related Party Information CNH Industrial’s related parties are primarily EXOR S.p.A. and the companies that EXOR S.p.A. controls or has significant influence over, including FCA and its subsidiaries and affiliates and Ferrari N.V. and its subsidiaries and affiliates. As of December 31, 2015, EXOR S.p.A. held 41.3% of CNH Industrial’s voting power and had the ability to significantly influence the decisions submitted to a vote of CNH Industrial’s shareholders, including approval of annual dividends, the election and removal of directors, mergers or other business combinations, the acquisition or disposition of assets and issuances of equity and the incurrence of indebtedness. The percentage above has been calculated as the ratio of (i) the aggregate number of common shares and special voting shares beneficially owned by EXOR S.p.A. and to (ii) the aggregate number of outstanding common shares and special voting shares of CNH Industrial as of December 31, 2015. In addition, CNH Industrial engages in transactions with its unconsolidated subsidiaries and affiliates over which CNH Industrial has significant influence or which it jointly controls. The Company’s Audit Committee reviews and evaluates all significant related party transactions. Transactions with EXOR S.p.A. and its Subsidiaries and Affiliates In connection with the Demerger, Fiat (now known as FCA) and Fiat Industrial entered into a Master Services Agreement (“MSA”) which sets forth the primary terms and conditions pursuant to which the various service provider subsidiaries of such entities provide services (such as purchasing, tax, accounting and other back office services, security and training) to the various service receiving subsidiaries. As structured, the applicable service provider and service receiver subsidiaries become parties to the MSA through the execution of an Opt-In letter which may contain additional terms and conditions. Pursuant to the MSA, service receivers are required to pay to service providers the actual cost of the services plus a negotiated margin. Subsidiaries of FCA provide CNH Industrial with administrative services such as accounting, cash management, maintenance of plant and equipment, security, information systems and training under the terms and conditions of the MSA and the applicable Opt-in Letters. Additionally, CNH Industrial sells engines and light commercial vehicles to, and purchases engine blocks and other components from, FCA Group companies. These transactions with FCA are reflected on our consolidated statements of operations as follows: 2015 2014 2013 (in millions) Net sales $ 762 $ 943 $ 904 Cost of goods sold $ 463 $ 551 $ 631 Selling, general and administrative expenses $ 161 $ 234 $ 275 12/31/2015 12/31/2014 (in millions) Trade receivables $ 14 $ 27 Trade payables $ 136 $ 139 EXOR S.p.A. is a major investment holding company in Europe. Among other things, EXOR S.p.A. manages a portfolio that includes investments in FCA. On September 1, 2015, EXOR S.p.A. closed the sale of its interest in Cushman & Wakefield to DTZ. During the year ended December 31, 2015 and 2014, CNH Industrial purchased real estate services from Cushman & Wakefield. The related transaction amounts were insignificant during 2015 and 2014. Transactions with the Unconsolidated Subsidiaries and Affiliates CNH Industrial sells commercial vehicles, agricultural equipment, and construction equipment, and provides technical services to unconsolidated subsidiaries and affiliates such as Iveco Oto Melara Societa consortile ARL, CNH de Mexico SA de CV, Turk Traktor ve Ziraat Makineleri A.S. and New Holland HFT Japan Inc. CNH Industrial also purchases equipment from unconsolidated subsidiaries and affiliates, such as Turk Traktor ve Ziraat Makineleri A.S. These transactions primarily affected revenues, finance and interest income, cost of goods sold, trade receivables and payables and are presented as follows: 2015 2014 2013 (in millions) Net sales $ 700 $ 843 $ 718 Cost of goods sold $ 430 $ 564 $ 505 12/31/2015 12/31/2014 (in millions) Trade receivables $ 72 $ 155 Trade payables $ 156 $ 144 At December 31, 2015 and 2014, CNH Industrial had pledged guarantees on commitments of its joint venture for an amount of $203 million and $277 million, respectively, mainly related to Iveco—Oto Melara Società consortile. Transactions with Other Related Parties For the year ended December 31, 2013, the Company’s cost of goods sold includes $25 million, related to purchases of components from the Brembo Group which is controlled by Alberto Bombassei, a member of the Fiat Industrial Board of Directors until September 30, 2013. |
Supplemental Information
Supplemental Information | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Supplemental Information | Note 21: Supplemental Information The operations and key financial measures and financial analysis differ significantly for manufacturing and distribution businesses and financial services businesses; therefore, management believes that certain supplemental disclosures are important in understanding the consolidated operations and financial results of CNH Industrial. This supplemental information does not purport to represent the operations of each group as if each group were to operate on a standalone basis. For example, Industrial Activities presents the cost of “interest free” periods for wholesale receivables as Interest Compensation to Financial Services, and not as a reduction of sales in their Statements of Operations. This supplemental data is as follows: Industrial Activities —The financial information captioned “Industrial Activities” reflects the consolidation of all majority-owned subsidiaries except for Financial Services business. Financial Services business has been included using the equity method of accounting whereby the net income and net assets of Financial Services business are reflected, respectively, in “Equity in income of unconsolidated subsidiaries and affiliates” in the accompanying consolidated statements of operations, and in “Investment in Financial Services” in the accompanying consolidated balance sheets. Financial Services —The financial information captioned “Financial Services” reflects the consolidation or combination of Financial Services business. Transactions between the “Industrial Activities” and “Financial Services” have been eliminated to arrive at the consolidated financial statements. Statement of Operations Industrial Activities Financial Services 2015 2014 2013 2015 2014 2013 (in millions, except share data) Revenues Net sales $ 24,677 $ 31,198 $ 32,661 $ — $ — $ — Finance and interest income 201 258 271 1,603 1,828 1,679 Total Revenues $ 24,878 $ 31,456 $ 32,932 $ 1,603 $ 1,828 $ 1,679 Costs and Expenses Cost of goods sold $ 20,357 $ 25,536 $ 26,580 $ — $ — $ — Selling, general & administrative expenses 2,032 2,568 2,764 285 357 330 Research and development expenses 856 1,106 1,222 — — — Restructuring expenses 82 184 71 2 — — Interest expense 678 857 799 576 705 658 Interest compensation to Financial Services 314 357 352 — — — Other, net 497 290 251 235 235 210 Total Costs and Expenses 24,816 30,898 32,039 1,098 1,297 1,198 Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates 62 558 893 505 531 481 Income taxes 202 280 518 158 187 153 Equity income of unconsolidated subsidiaries and affiliates 20 68 110 21 18 15 Results from intersegment investments 368 362 343 — 2 (1 ) Net income $ 248 $ 708 $ 828 $ 368 $ 364 $ 342 Balance Sheets Industrial Activities Financial Services 2015 2014 2015 2014 (in millions, except share data) ASSETS Cash and cash equivalents $ 4,551 $ 4,122 $ 833 $ 1,041 Restricted cash 15 1 912 977 Trade receivables 555 1,025 52 92 Financing receivables 2,162 4,767 19,974 22,717 Inventories, net 5,513 6,845 177 163 Property, plant and equipment, net 6,479 6,862 2 3 Investments in unconsolidated subsidiaries and affiliates 2,846 3,063 136 136 Equipment under operating leases 10 20 1,825 1,498 Goodwill 2,295 2,324 152 160 Other intangible assets, net 793 828 17 22 Deferred tax assets 1,087 1,508 163 239 Derivative assets 205 198 6 9 Other assets 1,303 1,502 527 781 TOTAL ASSETS $ 27,814 $ 33,065 $ 24,776 $ 27,838 LIABILITIES AND EQUITY Debt $ 8,304 $ 11,520 $ 21,219 $ 24,086 Trade payables 5,176 5,850 197 197 Deferred tax liabilities 60 202 274 250 Pension, postretirement and other postemployment benefits 2,263 2,594 19 20 Derivative liability 62 221 7 16 Other liabilities 7,088 7,701 605 675 TOTAL LIABILITIES $ 22,953 $ 28,088 $ 22,321 $ 25,244 Equity 4,843 4,961 2,455 2,594 Redeemable noncontrolling interest 18 16 — — TOTAL EQUITY AND LIABILITIES $ 27,814 $ 33,065 $ 24,776 $ 27,838 Cash Flow Statements Industrial Activities Financial Services 2015 2014 2013 2015 2014 2013 (in millions) Operating activities: Net income $ 248 $ 708 $ 828 $ 368 $ 364 $ 342 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization expense, net of assets under operating lease and assets sold under buy-back commitments 694 725 686 5 6 4 Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments 238 257 286 209 152 127 Loss (gain) from disposal of assets (2 ) (1 ) 25 — 9 — Undistributed income of unconsolidated subsidiaries (104 ) (181 ) (108 ) (17 ) (20 ) (8 ) Other non-cash items 213 101 72 118 153 124 Changes in operating assets and liabilities: Provisions (61 ) 110 104 13 11 3 Deferred income taxes 59 (110 ) (62 ) 60 71 3 Trade and financing receivables related to sales, net 354 285 306 (50 ) (1,101 ) (943 ) Inventories, net 507 (187 ) (1,225 ) (34 ) 15 20 Trade payables (162 ) (790 ) 903 4 (66 ) 39 Other assets and liabilities 114 (104 ) 395 214 434 (129 ) Net cash provided (used) by operating activities 2,098 813 2,210 890 28 (418 ) Investing activities: Additions to retail receivables — — — (4,498 ) (6,467 ) (7,511 ) Collections of retail receivables — — — 5,146 6,506 6,043 Proceeds from sale of assets, net of assets sold under operating leases and assets sold under buy-back commitments 11 25 7 — — — Proceeds from sale of assets under operating leases and assets sold under buy-back commitments 320 319 194 406 258 272 Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and sold under buy-back commitments (653 ) (1,005 ) (1,220 ) (3 ) (17 ) (7 ) Expenditures for assets under operating lease and assets sold under buy-back commitments (875 ) (797 ) (805 ) (976 ) (1,017 ) (634 ) Other 2,164 498 525 (2,016 ) (275 ) (663 ) Net cash provided (used) by investing activities 967 (960 ) (1,299 ) (1,941 ) (1,012 ) (2,500 ) Financing activities: Proceeds from long-term debt 650 3,356 1,339 9,277 14,021 11,125 Payments of long-term debt (2,483 ) (2,145 ) (2,049 ) (8,185 ) (13,178 ) (7,939 ) Net increase (decrease) in other financial liabilities 36 (198 ) 265 48 (127 ) 249 Dividends paid (297 ) (382 ) (368 ) (207 ) (160 ) (270 ) Other 23 18 (6 ) 43 13 11 Net cash provided (used) by financing activities (2,071 ) 649 (819 ) 976 569 3,176 Effect of foreign exchange rate changes on cash and cash equivalents (565 ) (390 ) 28 (133 ) (101 ) (10 ) Increase (decrease) in cash and cash equivalents 429 112 120 (208 ) (516 ) 248 Cash and cash equivalents, beginning of year 4,122 4,010 3,890 1,041 1,557 1,309 Cash and cash equivalents, end of year $ 4,551 $ 4,122 $ 4,010 $ 833 $ 1,041 $ 1,557 |
Supplemental Condensed Consolid
Supplemental Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Supplemental Condensed Consolidating Financial Information | Note 22: Supplemental Condensed Consolidating Financial Information CNH Industrial and certain 100% owned subsidiaries of CNH Industrial (the “Guarantor Subsidiaries”) guarantee the 7.875% Senior Notes issued by Case New Holland Industrial Inc. (formerly Case New Holland Inc.) in 2010. As the guarantees are fully unconditional, irrevocable and joint and several with all other guarantees and as the Guarantor Subsidiaries are all 100% owned by CNH Industrial, the Company has included the following condensed consolidating financial information as of December 31, 2015, and 2014 and for the three years ended December 31, 2015. The condensed consolidating financial information reflects investments in consolidated subsidiaries on the equity method of accounting. The goodwill and other intangible assets are allocated to reporting units and are primarily reported by the Guarantor Subsidiaries, except for the portion related to Financial Services which is reported by All Other Subsidiaries. It is not practicable to allocate goodwill and other intangibles to the individual Guarantor Subsidiaries and All Other Subsidiaries. Prior to the merger, CNH Global was the parent company of Case New Holland Industrial Inc. Effective September 30, 2013, CNH Global, Fiat Industrial and Fiat Netherlands merged with and into CNH Industrial N.V., which succeeded to all of the assets and liabilities of the three companies. Following the merger, CNH Industrial became the parent company of Case New Holland Industrial Inc. In an effort to reduce the complexity of the Company’s legal structure and as a part of the Company’s tax planning strategies, CNH Industrial has actively eliminated and transferred legal entities. During 2015, the parent company acquired the assets and operations of a subsidiary related to Agricultural Equipment and Construction Equipment. For comparative purposes, results of prior periods have been restated to include the results and financial position of the subsidiary with the parent entity. These transactions between entities under common control are accounted for at historical cost in accordance with existing accounting guidance. As a consequence, any material future transactions related to CNH Industrial’s legal entity rationalization activities and tax planning strategies may result in a retroactive restatement of the information contained in this note as these transactions are completed. The following condensed financial statements present CNH Industrial, Case New Holland Industrial Inc., the Guarantor Subsidiaries, and all other subsidiaries as of December 31, 2015, and 2014, and for the years ended December 31, 2015, 2014, and 2013. Condensed Statements of Operations For the Year Ended December 31, 2015 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Total Revenues $ 1,541 $ 9 $ 10,860 $ 19,509 $ (6,007 ) $ 25,912 Cost and Expenses: Cost of goods sold 1,283 — 9,039 15,339 (5,304 ) 20,357 Selling, general and administrative expenses 133 — 495 1,689 — 2,317 Research and development expenses 11 — 281 564 — 856 Restructuring expenses 2 — 16 66 — 84 Interest expense 130 246 162 1,076 (508 ) 1,106 Interest compensation to Financial Services 11 — 184 — (195 ) — Other, net 36 (2 ) 199 392 — 625 1,606 244 10,376 19,126 (6,007 ) 25,345 Income (loss) before income taxes and equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method (65 ) (235 ) 484 383 — 567 Income taxes 13 (85 ) 114 318 — 360 Equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method 331 425 264 62 (1,041 ) 41 Net income 253 275 634 127 (1,041 ) 248 Net loss attributable to noncontrolling interests — — — (5 ) — (5 ) Net income attributable to owners of the parent $ 253 $ 275 $ 634 $ 132 $ (1,041 ) $ 253 Condensed Statements of Comprehensive Income For the Year Ended December 31, 2015 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Comprehensive income (loss) $ 126 $ 190 $ 398 $ (653 ) $ 59 $ 120 Comprehensive loss attributable to noncontrolling interests — — — (7 ) — (7 ) Comprehensive income (loss) attributable to parent $ 126 $ 190 $ 398 $ (646 ) $ 59 $ 127 Condensed Balance Sheets As of December 31, 2015 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Assets: Cash and cash equivalents $ 3 $ — $ 144 $ 5,237 $ — $ 5,384 Deposits in subsidiaries’ cash management pools 116 — 4,753 — (4,869 ) — Receivables 584 986 4,970 27,401 (14,360 ) 19,581 Inventories, net 138 — 1,364 4,188 — 5,690 Property, plant and equipment, net 80 — 1,108 5,293 — 6,481 Equipment on operating leases — — — 1,835 — 1,835 Investments in unconsolidated subsidiaries and affiliates 250 — — 277 — 527 Investments in consolidated subsidiaries 9,166 7,191 1,607 794 (18,758 ) — Goodwill and intangibles 12 — 2,786 459 — 3,257 Other 176 108 1,292 2,619 (204 ) 3,991 Total Assets $ 10,525 $ 8,285 $ 18,024 $ 48,103 $ (38,191 ) $ 46,746 Liabilities and Equity: Debt $ 5,045 $ 5,194 $ 3,302 $ 30,067 $ (17,220 ) $ 26,388 Trade payables 221 112 2,083 4,954 (2,028 ) 5,342 Other liabilities 457 (82 ) 3,365 6,618 (185 ) 10,173 Total Equity 4,802 3,061 9,274 6,464 (18,758 ) 4,843 Total Equity and Liabilities $ 10,525 $ 8,285 $ 18,024 $ 48,103 $ (38,191 ) $ 46,746 Condensed Statements of Cash Flow For the Year Ended December 31, 2015 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Operating Activities: Net income $ 253 $ 275 $ 634 $ 127 $ (1,041 ) $ 248 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 10 — 207 929 — 1,146 Other, net 52 (494 ) (284 ) 1,586 528 1,388 Net cash provided (used) by operating activities 315 (219 ) 557 2,642 (513 ) 2,782 Investing activities: Expenditures for property, plant and equipment, equipment on operating lease, equipment sold under a buy-back commitment and intangible assets (25 ) — (145 ) (2,337 ) — (2,507 ) Net collections from retail receivables and related securitizations — — — 648 — 648 (Deposits in) withdrawals from subsidiaries’ cash management pools 92 — (715 ) — 623 — Other, net (114 ) 288 1,025 676 (948 ) 927 Net cash provided (used) by investing activities (47 ) 288 165 (1,013 ) (325 ) (932 ) Financing Activities: Net increase (decrease) in indebtedness — (7 ) 11 (661 ) — (657 ) Dividends paid (291 ) (1 ) (187 ) (329 ) 511 (297 ) Other, net 26 (61 ) (437 ) 168 327 23 Net cash used by financing activities (265 ) (69 ) (613 ) (822 ) 838 (931 ) Effect of foreign exchange rate changes on cash and cash equivalents (7 ) — (4 ) (687 ) — (698 ) Increase (decrease) in cash and cash equivalents (4 ) — 105 120 — 221 Cash and cash equivalents, beginning of year 7 — 39 5,117 — 5,163 Cash and cash equivalents, end of year $ 3 $ — $ 144 $ 5,237 $ — $ 5,384 Condensed Statements of Operations For the Year Ended December 31, 2014 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Total revenues $ 2,034 $ 10 $ 12,898 $ 24,283 $ (6,670 ) $ 32,555 Cost and Expenses: Cost of goods sold 1,750 — 10,269 19,422 (5,907 ) 25,534 Selling, general and administrative expenses 136 — 652 2,137 — 2,925 Research and development expenses 13 — 388 705 — 1,106 Restructuring expenses 3 — 29 152 — 184 Interest expense 210 234 140 1,284 (550 ) 1,318 Interest compensation to Financial Services 12 — 201 — (213 ) — Other, net 15 (4 ) 185 203 — 399 2,139 230 11,864 23,903 (6,670 ) 31,466 Income (loss) before income taxes and equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method (105 ) (220 ) 1,034 380 — 1,089 Income taxes (101 ) (71 ) 268 371 — 467 Equity in income (loss) of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method 714 918 364 (32 ) (1,878 ) 86 Net income (loss) 710 769 1,130 (23 ) (1,878 ) 708 Net loss attributable to noncontrolling interests — — — (2 ) — (2 ) Net income (loss) attributable to owners of the parent $ 710 $ 769 $ 1,130 $ (21 ) $ (1,878 ) $ 710 Condensed Statements of Comprehensive Income For the Year Ended December 31, 2014 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Comprehensive income (loss) $ 347 $ 769 $ 454 $ (794 ) $ (435 ) $ 341 Comprehensive loss attributable to noncontrolling interests — — — (6 ) — (6 ) Comprehensive income (loss) attributable to parent $ 347 $ 769 $ 454 $ (788 ) $ (435 ) $ 347 Condensed Balance Sheets As of December 31, 2014 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Assets: Cash and cash equivalents $ 7 $ — $ 39 $ 5,117 $ — $ 5,163 Deposits in subsidiaries’ cash management pools 230 — 4,135 — (4,365 ) — Receivables 658 1,034 5,479 33,393 (18,038 ) 22,526 Inventories, net 233 — 1,711 5,064 — 7,008 Property, plant and equipment, net 75 — 1,186 5,604 — 6,865 Equipment on operating leases — — — 1,518 — 1,518 Investments in unconsolidated subsidiaries and affiliates 245 — 1 359 — 605 Investments in consolidated subsidiaries 10,877 6,965 2,110 1,530 (21,482 ) — Goodwill and intangibles 50 — 2,824 460 — 3,334 Other 258 (55 ) 696 5,164 (1,169 ) 4,894 Total Assets $ 12,633 $ 7,944 $ 18,181 $ 58,209 $ (45,054 ) $ 51,913 Liabilities and Equity: Debt $ 5,622 $ 5,011 $ 3,275 $ 34,947 $ (19,261 ) $ 29,594 Trade payables 307 18 2,257 6,145 (2,745 ) 5,982 Other liabilities 1,782 (69 ) 3,272 7,957 (1,566 ) 11,376 Total Equity 4,922 2,984 9,377 9,160 (21,482 ) 4,961 Total Equity and Liabilities $ 12,633 $ 7,944 $ 18,181 $ 58,209 $ (45,054 ) $ 51,913 Condensed Statements of Cash Flow For the Year Ended December 31, 2014 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Operating Activities: Net income (loss) $ 710 $ 769 $ 1,130 $ (23 ) $ (1,878 ) $ 708 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 14 — 212 914 — 1,140 Other, net (429 ) (735 ) (574 ) (1,078 ) 1,649 (1,167 ) Net cash provided (used) by operating activities 295 34 768 (187 ) (229 ) 681 Investing activities: Expenditures for property, plant and equipment, equipment on operating lease, equipment sold under a buy-back commitment and intangible assets (26 ) — (163 ) (2,647 ) — (2,836 ) Net collections from retail receivables and related securitizations — — — 39 — 39 (Deposits in) withdrawals from subsidiaries’ cash management pools — — (757 ) — 757 — Other, net 294 — (121 ) (251 ) 916 838 Net cash provided (used) by investing activities 268 — (1,041 ) (2,859 ) 1,673 (1,959 ) Financing Activities: Net increase (decrease) in indebtedness (205 ) 208 (339 ) 3,028 (963 ) 1,729 Dividends paid (360 ) (249 ) (337 ) (1,386 ) 1,950 (382 ) Other, net 18 7 977 1,447 (2,431 ) 18 Net cash provided (used) by financing activities (547 ) (34 ) 301 3,089 (1,444 ) 1,365 Effect of foreign exchange rate changes on cash and cash equivalents (14 ) — (27 ) (450 ) — (491 ) Increase (decrease) in cash and cash equivalents 2 — 1 (407 ) — (404 ) Cash and cash equivalents, beginning of year 5 — 38 5,524 — 5,567 Cash and cash equivalents, end of year $ 7 $ — $ 39 $ 5,117 $ — $ 5,163 Condensed Statements of Operations For the Year Ended December 31, 2013 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Total Revenues $ 1,940 $ 10 $ 13,831 $ 25,516 $ (7,461 ) $ 33,836 Cost and Expenses: Cost of goods sold 1,633 — 11,016 20,655 (6,753 ) 26,551 Selling, general and administrative expenses 136 2 706 2,250 — 3,094 Research and development expenses 12 — 439 771 — 1,222 Restructuring expenses — — 1 70 — 71 Interest expense 173 262 136 1,127 (502 ) 1,196 Interest compensation to Financial Services 12 — 194 — (206 ) — Other, net 487 1 (195 ) 35 — 328 2,453 265 12,297 24,908 (7,461 ) 32,462 Income (loss) before income taxes and equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method (513 ) (255 ) 1,534 608 — 1,374 Income taxes 56 (95 ) 357 353 — 671 Equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method 1,246 1,056 354 522 (3,053 ) 125 Net income 677 896 1,531 777 (3,053 ) 828 Net income attributable to noncontrolling interests — — — 151 — 151 Net income attributable to owners of the parent $ 677 $ 896 $ 1,531 $ 626 $ (3,053 ) $ 677 Condensed Statements of Comprehensive Income For the Year Ended December 31, 2013 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Comprehensive income $ 343 $ 896 $ 1,764 $ 473 $ (3,001 ) $ 475 Comprehensive income attributable to noncontrolling interests — — — 132 — 132 Comprehensive income attributable to parent $ 343 $ 896 $ 1,764 $ 341 $ (3,001 ) $ 343 Condensed Statements of Cash Flow For the Year Ended December 31, 2013 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Operating Activities: Net income $ 677 $ 896 $ 1,531 $ 777 $ (3,053 ) $ 828 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 10 — 180 913 — 1,103 Other, net (392 ) (1,154 ) 696 (1,276 ) 1,717 (409 ) Net cash provided (used) by operating activities 295 (258 ) 2,407 414 (1,336 ) 1,522 Investing activities: Expenditures for property, plant and equipment, equipment on operating lease, equipment sold under a buy-back commitment and intangible assets (10 ) — (225 ) (2,431 ) — (2,666 ) Net additions from retail receivables and related securitizations — — — (1,468 ) — (1,468 ) (Deposits in) withdrawals from subsidiaries’ cash management pools (3 ) — (770 ) — 773 — Other, net (1,929 ) — (502 ) 785 1,992 346 Net cash used by investing activities (1,942 ) — (1,497 ) (3,114 ) 2,765 (3,788 ) Financing Activities: Net increase (decrease) in indebtedness 1,602 58 (310 ) 1,722 (82 ) 2,990 Dividends paid (365 ) — (589 ) (1,384 ) 1,970 (368 ) Other, net 306 — — 3,005 (3,317 ) (6 ) Net cash provided (used) by financing activities 1,543 58 (899 ) 3,343 (1,429 ) 2,616 Effect of foreign exchange rate changes on cash and cash equivalents — — (1 ) 19 — 18 Increase (decrease) in cash and cash equivalents (104 ) (200 ) 10 662 — 368 Cash and cash equivalents, beginning of year 109 200 28 4,862 — 5,199 Cash and cash equivalents, end of year $ 5 $ — $ 38 $ 5,524 $ — $ 5,567 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 23: Subsequent Events On January 29, 2016, the Company announced a buy-back program to repurchase up to $300 million in common shares from time to time, subject to market and business conditions, as previously authorized at the Annual General Meeting held on April 15, 2015. The purchases are carried out on the MTA, in compliance with applicable rules and regulations, subject to (i) a maximum price per common share equal to the average of the highest price on each of the five trading days prior to the date of acquisition, as shown in the Official Price List of the MTA plus 10% (maximum price) and to (ii) a minimum price per common share equal to the average of the lowest price on each of the five trading days prior to the date of acquisition, as shown in the Official Price List of the MTA minus 10% (minimum price). As of February 26, 2016, the Company has repurchased 800 thousand common shares on the MTA under this buy-back program. On February 17, 2016, the Venezuelan government devalued its currency and changed its official and most preferential exchange rate to the CENCOEX rate, which will continue to be used for purchases of certain essential goods, from 6.3 Bs.F. to 10 Bs.F. per U.S. dollar. Venezuela reduced its three-tier system of exchange rates to two tiers by eliminating the intermediate exchange rate (i.e., the SICAD rate), which last sold U.S. dollars for 13.5 Bs.F. Effective February 18, 2016, the SIMADI exchange rate was allowed to float freely beginning at a rate of 202.9 bolivars to the U.S. dollar. The |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation CNH Industrial has prepared the accompanying consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include CNH Industrial N.V. and its consolidated subsidiaries. The consolidated financial statements are expressed in U.S. dollars and, unless otherwise indicated, all financial data set forth in these consolidated financial statements are expressed in U.S. dollars. The consolidated financial statements include the accounts of CNH Industrial’s subsidiaries in which CNH Industrial 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 an entity or based on CNH Industrial’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. Investments in unconsolidated subsidiaries and affiliates are accounted for using the equity method when CNH Industrial does not have a controlling interest, but exercises significant influence. Under this method, the investment is initially recorded at cost and is increased or decreased by CNH Industrial’s proportionate share of the entity’s respective net income or loss. Dividends received from these entities reduce the carrying value of the investments. |
Business Combinations | Business Combinations Business combinations are accounted for by applying the acquisition method. Under this method, the consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred and liabilities assumed by the Company and the equity interests issued in exchange for control of the acquiree. Acquisition-related costs are generally recognized in profit or loss as incurred. On November 26, 2014, the Company completed the acquisition of substantially all of the assets of Miller-St. Nazianz, Inc. (“Miller”) for a total consideration of $106 million. The acquisition was funded using existing cash balances. Miller is a leading manufacturer of precision spraying equipment. The results of the acquired business for the period from the acquisition date are included in the accompanying consolidated financial statements and are reported in the Agricultural Equipment segment. Pro forma results of operations related to this acquisition have not been presented because they are not material to the Company’s consolidated statements of operations. Of the $106 million purchase price, $12 million was attributable to accounts receivable, $18 million to inventory, $16 million to property, plant, and equipment, $8 million to goodwill, $62 million to other intangible assets and $10 million to liabilities assumed. For the intangible assets acquired, the dealer network has a useful life of 20 years, trademarks have a useful life of 3 years, the order backlog has a useful life of 1 year, the patent portfolio has a useful life of 10 years, and developed technology has a useful life of 10 years. Goodwill generated from the business acquisition is primarily attributable to access to Miller technology and expected synergies from geographic and network expansion, utilization of Powertrain engines in Miller sprayers and cost savings as a result of increased purchasing power and operational synergies. Goodwill of $8 million was deductible for tax purposes. There were no significant business combinations in 2015. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and reported amounts of revenues and expenses. Significant estimates in these consolidated financial statements include the realizable value of property, plant and equipment, goodwill and other intangibles; residual values of equipment on operating leases; allowance for credit losses; tax contingencies; liabilities for warranties; sales allowances; and assets and obligations related to employee benefits. |
Revenue Recognition | Revenue Recognition Industrial Activities record sales of equipment and replacement parts when title and all risks of ownership have transferred to the independent dealer or other customer according to the terms of sale, generally upon shipment or delivery of goods. Revenue for certain transactions is recognized when the special order goods are available for a limited pickup period when requested in advance by a qualifying customer and risks and rewards of ownership have transferred. Dealers may not return equipment while the applicable dealer contract remains in place. Replacement parts may be returned on a limited basis. In the U.S. and Canada, if a dealer contract is terminated for any reason, CNH Industrial may be obligated to repurchase new equipment from the dealer. For all sales, no significant uncertainty exists surrounding the purchaser’s obligation to pay for the equipment and replacement parts. CNH Industrial records appropriate allowance for credit losses and anticipated returns as necessary. Receivables are due upon the earlier of payment terms discussed below or sale to the retail customer. Fixed payment schedules exist for all sales to dealers, but payment terms vary by geographic market and product line. In connection with these payment terms, CNH Industrial offers wholesale financing to many of its dealers including “interest-free” financing for specified periods of time which also vary by geographic market and product line. Interest is charged to dealers after the end of the “interest-free” period. Sales to dealers that do not qualify for an “interest-free” period are generally subject to payment terms of 30 days or less. New vehicle sales with a buy-back commitment are not recognized at the time of delivery but are accounted for as operating leases. More specifically, vehicles sold with a buy-back commitment by Commercial Vehicles are accounted for as property, plant and equipment because agreements usually have a long-term buy-back commitment. The difference between the carrying value (corresponding to the manufacturing cost) and the estimated resale value (net of refurbishing costs) at the end of the buy-back period is depreciated on a straight-line basis over the same period. The initial sale price received is recognized as an advance payment in “Other liabilities”. The difference between the initial sale price and the buy-back price is recognized as rental revenue on a straight-line basis over the term of the operating lease. Revenues from the sale of extended warranties and maintenance contracts are recognized over the life of the contract and matched to related costs. Given their nature, profit on these contracts is recognized only when all associated costs can be estimated reliably, which is generally in the final period of the contractual term. In the event that estimated costs to fulfill the contract obligations exceed contract revenues, the estimated contract loss is recognized as soon as it is identified and recorded in “Other liabilities.” Shipping and other transportation costs are recorded in “Cost of goods sold.” Finance and interest income on retail and other notes receivables and finance leases is recorded using the effective yield method. Deferred costs on the origination of financing receivables are recognized as a reduction in finance revenue over the expected lives of the receivables using the effective yield method. Recognition of income on loans is suspended when management determines that collection of future income is not probable or when an account becomes 120 days delinquent, whichever occurs earlier. Interest accrual is resumed when and if the receivable becomes contractually current and collection becomes probable. Previously suspended income is recognized at that time. The Company applies cash received on nonaccrual financing receivables to first reduce any unrecognized interest and then the recorded investment and any other fees. 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. Charge-offs of principal amounts of receivables outstanding are deducted from the allowance at the point when it is determined to be probable that all amounts due will not be collected. Income from operating leases is recognized over the term of the lease on a straight-line basis. |
Sales Allowances | Sales Allowances CNH Industrial grants certain sales incentives to support sales of its products to retail customers. The expense for such incentive programs is recorded as a deduction in arriving at the net sales amount at the time of the sale of the product to the dealer. The expense for new programs is accrued at the inception of the program. The amounts of incentives to be paid are estimated based upon historical data, estimated future market demand for products, field inventory levels, announced incentive programs, competitive pricing and interest rates, among other things. |
Warranty Costs | Warranty Costs At the time a sale of equipment or parts to a dealer is recognized, CNH Industrial records the estimated future warranty costs for the product, primarily basic warranty coverage. CNH Industrial determines its total warranty liability by applying historical claims rate experience, while considering specific contractual terms, to the park of equipment that has been sold and is still under warranty. Campaigns are formal post-production modification programs approved by management. The liabilities for such programs are recognized when approved, based on an estimate of the total cost of the program. |
Advertising | Advertising CNH Industrial expenses advertising costs as incurred. Advertising expense totaled $155 million, $218 million, and $241 million for the years ended December 31, 2015, 2014, and 2013, respectively. |
Research and Development | Research and Development Research and development costs are expensed as incurred. |
Borrowing Costs | Borrowing Costs Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are capitalized and amortized over the useful life of the class of assets to which they refer. All other borrowing costs are expensed when incurred. |
Government Grants | Government Grants Government grants are recognized in the financial statements when there is reasonable assurance that the company concerned will comply with the conditions for receiving such grants and that the grants themselves will be received. Government grants are recognized as income over the periods necessary to match them with the related costs which they are intended to offset. The benefit of a government loan at a below-market rate of interest is treated as a government grant. The benefit of the below-market rate of interest is measured as the difference between the initial carrying amount of the loan (fair value plus transaction costs) and the proceeds received, and is accounted for in accordance with the policies already used for the recognition of government grants. |
Foreign Currency | Foreign Currency Certain of CNH Industrial’s non-U.S. subsidiaries and affiliates maintain their books and accounting records using local currency as the functional currency. Assets and liabilities of these non-U.S. subsidiaries are translated into U.S. dollars at period-end exchange rates, and net exchange gains or losses resulting from such translation are included in “Accumulated other comprehensive income (loss)” in the accompanying consolidated balance sheets. Income and expense accounts of these non-U.S. subsidiaries are translated at the average exchange rates for the period. Gains and losses from foreign currency transactions are included in net income in the period during which they arise. Net foreign currency transaction gains and losses are reflected in “Other, net” in the accompanying consolidated statements of operations. For the years ended December 31, 2015, 2014, and 2013, the Company recorded a net loss of $581 million, $340 million and $68 million, respectively. Included in the net loss in 2015 and 2014 was the re-measurement charges of $150 million and $71 million, respectively, on the Venezuelan bolivar fuerte (“Bs.F., or “bolivars”) rate described below, as well as a charge of $40 million due to the devaluation of net monetary assets of Argentinian subsidiaries. As described in “Note 14: Financial Instruments”, the Company uses hedging instruments to mitigate foreign currency risk. Net of the gains realized on foreign currency hedging instruments, the Company recorded a loss of $289 million, $132 million and $40 million for the three years ended December 31, 2015, 2014 and 2013, respectively. The functional currency of CNH Industrial’s Venezuelan subsidiary is the U.S. dollar. At the end of each period, CNH Industrial re-measures the net monetary assets of its Venezuelan subsidiary from the bolivars to the U.S. dollar at the rate it believes is legally available to the Company. As of December 31, 2015, there was a three-tiered exchange rate mechanism in Venezuela for exchanging bolivars into U.S. dollars: (1) the government-operated National Center of Foreign Commerce (CENCOEX), which has a fixed exchange rate of 6.3 bolivars per U.S. dollar mainly intended for the import of essential goods and services by designated industry sectors; (2) the auction-based Supplementary Foreign Currency Administration System (SICAD), which is intended for certain transactions, including foreign investments with a rate of 13.5 Bs.F. per U.S. dollar; and (3) an open market Marginal Foreign Exchange System (SIMADI), established in February 2015, which is available to companies and individuals to exchange foreign currency based on supply and demand, with a rate of 198.70 Bs.F. per U.S. dollar. Based on changes to the way Venezuela’s exchange rate mechanism operated, in 2014 CNH Industrial changed the Bs.F. rate used to re-measure its Venezuelan subsidiary’s financial statements in U.S. dollars. Effective March 31, 2014, CNH Industrial began using the exchange rate determined by U.S. dollar auctions conducted under the SICAD I. As a result, in the first quarter of 2014, CNH Industrial recorded a pre- and after-tax re-measurement charge of $64 million. Until June 30, 2015, CNH Industrial considered the SICAD rate the appropriate rate to use to convert the net monetary assets denominated in bolivars of its Venezuelan subsidiary. The SICAD exchange rate used at June 30, 2015 was 12.8 Bs.F. to the U.S. dollar, the latest rate at which, at the beginning of July 2015, bolivars were exchanged for U.S. dollars in a SICAD auction to which the Venezuelan subsidiary was admitted. During the third quarter of 2015, due to the progressively deteriorating economic conditions in Venezuela, and the limited availability of U.S. dollars, CNH Industrial determined that the SIMADI exchange rate is the most appropriate rate to use as of September 30, 2015. As a result, the Company adopted the SIMADI exchange rate in the third quarter to re-measure the net monetary assets denominated in bolivars and to convert revenues and expenses of its Venezuelan subsidiary adopting the SIMADI rate of Bs.F 199.42 per U.S. dollar. The Company now considers the SIMADI rate more reflective of the current economic environment in Venezuela and future transactions at the SICAD rate appear highly unlikely. As a result, CNH Industrial recorded in “Other, net” in the consolidated statement of operations, for the three and nine months ended September 30, 2015, a pre- and after-tax charge of $150 million primarily related to this re-measurement. In this context, the Company assessed the non-monetary assets of its Venezuelan operations for impairment, which resulted in no additional charges. Following the adoption of the SIMADI rate and related re-measurement, CNH Industrial’s results of operations in Venezuela in the six months ended December 31, 2015 generated less than 1% of both the Company’s net revenues and operating profit. As of December 31, 2015, the Company continues to control and therefore consolidate its Venezuelan operations. Despite the significant macroeconomic challenges in the country, CNH Industrial intends to continue its presence in the Venezuelan market for the foreseeable future. CNH Industrial continues to monitor the Venezuelan economic situation and is actively engaged in discussions with the Venezuelan government agencies concerning its ongoing business activities. If, in the future, it concludes that it no longer maintains control over its operations in Venezuela, CNH Industrial may need to de-consolidate its operations in Venezuela, which would result in a pre- and after-tax charge of approximately $130 million using the December 31, 2015 rate of 198.70 Bs.F. per U.S. dollar. On February 17, 2016, the Venezuelan government devalued its currency and introduced further changes to its exchange rate mechanism. See “Note 23: Subsequent Events” for further information. The functional currency of CNH Industrial’s Argentinian subsidiaries is the U.S. dollar. At the end of each period, CNH Industrial translates the net monetary assets of its Argentinian subsidiaries from the Argentine Peso into the U.S. dollar. During the month of December 2015, CNH Industrial recorded a $40 million charge following the devaluation of Argentine Peso. Additionally in December 2015, CNH Industrial subscribed $50 million bonds offered to importers by the Argentinian government in order to help importers settle their backlog of payments that had ballooned under the previous government's capital controls. These bonds yield a 6% interest rate and will be repaid in eight monthly installments between May 2016 and December 2016. These financial instruments should facilitate the settlement, by CNH Industrial’s Argentinian subsidiaries, of payables due to other non-Argentinian subsidiaries, having fixed the exchange rate at the bond issuance. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents are highly liquid investments with an original maturity of three months or less. The carrying value of cash equivalents approximates fair value because of the short maturity of these investments. |
Restricted Cash | Restricted Cash Restricted cash includes principal and interest payments from retail notes, wholesale receivables and commercial revolving accounts receivable owned by the consolidated VIEs that are payable to the VIEs’ investors, and cash pledged as a credit enhancement to the same investors. These amounts are held by depository banks in order to comply with contractual agreements. |
Cash Flow Information | Cash Flow Information All cash flows from the changes in trade accounts and notes receivable are classified as operating activities in the consolidated statements of cash flows as these receivables arise from sales to CNH Industrial’s customers. Cash flows from financing receivables that are related to sales to CNH Industrial’s dealers are also included in operating activities. CNH Industrial’s financing of receivables related to equipment sold by dealers is included in investing activities. CNH Industrial paid interest of $945 million, $944 million, and $1,013 million for the years ended December 31, 2015, 2014, and 2013, respectively. CNH Industrial paid taxes of $345 million, $744 million, and $521 million in 2015, 2014, and 2013, respectively. |
Receivables | Receivables Receivables are recorded at amortized cost, net of allowances for credit losses and deferred fees and costs. Periodically, the Company sells or transfers retail notes, wholesale receivables and commercial revolving accounts receivable to funding facilities or in securitization transactions. In accordance with the accounting guidance regarding transfers of financial assets and the consolidation of VIEs, the retail notes, wholesale receivables and commercial revolving accounts receivable sold in securitizations do not qualify as sales and are recorded as secured borrowings with no gains or losses recognized at the time of securitization. Receivables associated with these securitization transactions and receivables that the Company has the ability and intent to hold for the foreseeable future are classified as held for investment. The substantial majority of our receivables, which include unrestricted receivables and restricted receivables for securitization investors, are classified as held for investment. |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses is the Company’s estimate of probable losses on receivables owned by the Company and consists of two components, depending on whether the receivable has been individually identified as being impaired. The first component of the allowance for credit losses covers the receivables specifically reviewed by management for which the Company has determined it is probable that it will not collect all of the contractual principal and interest. Receivables are individually reviewed for impairment based on, among other items, amounts outstanding, days past due and prior collection history. These receivables are subject to impairment measurement at the loan level based either on the present value of expected future cash flows discounted at the receivables’ effective interest rate or the fair value of the collateral for collateral-dependent receivables. The second component of the allowance for credit losses covers all receivables that have not been individually reviewed for impairment. The allowance for these receivables is based on aggregated portfolio evaluations, generally by financial product. The allowance for retail 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 allowance for wholesale credit losses is based on loss forecast models that consider the same factors as the retail models plus dealer risk ratings. The loss forecast models are updated on a quarterly basis. In addition, qualitative factors that are not fully captured in the loss forecast models, including industry trends, and macroeconomic factors, are considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective and require a degree of management judgment. Charge-offs of principal amounts of receivables outstanding are deducted from the allowance at the point when it is determined to be probable that all amounts due will not be collected. |
Inventories | Inventories Inventories are stated at the lower of cost or market. Cost is determined by the first-in, first-out method. The cost of finished goods and work-in-progress includes the cost of raw materials, other direct costs and production overheads. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation. Expenditures for maintenance and repairs are expensed as incurred. Property, plant and equipment also include vehicles sold with a buy-back commitment, which are recognized under the method described in the paragraph Revenue Recognition Assets held under capital leases, which the Company assumes substantially all the risks and rewards of ownership, are recognized as assets of the Company at the lower of fair value or present value of the minimum lease payments. The corresponding liability to the lessor is included in the financial statements as debt. Depreciation is recorded on a straight-line basis over the estimated useful lives of the respective assets as follows: Category Lives Buildings and improvements 10 — 40 years Plant, machinery and equipment 5 — 25 years Other equipment 3 — 10 years CNH Industrial evaluates the recoverability of the carrying amount of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. If circumstances require a long-lived asset to be tested for possible impairment, CNH Industrial compares the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If the carrying amount of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. |
Equipment on Operating Leases | Equipment on Operating Leases Financial Services purchases leases and equipment from CNH Industrial dealers and other independent third parties that have leased equipment to retail customers under operating leases. Financial Services’ investment in operating leases is based on the purchase price paid for the equipment. Income from these operating leases is recognized over the term of the lease. The equipment is depreciated on a straight-line basis over the term of the lease to the estimated residual value at lease termination, which is estimated at the inception of the lease. Realization of the residual values is dependent on Financial Services’ future ability to re-market the equipment under then prevailing market conditions. Model changes and updates, as well as market strength and product acceptance, are monitored and adjustments are made to residual values in accordance with the significance of any such changes. Management believes that the estimated residual values are realizable. Expenditures for maintenance and repairs of the applicable equipment are the responsibility of the lessee. Equipment returned to the Company upon termination of leases and held for subsequent sale or lease is recorded in inventory at the lower of net book value or estimated fair value of the equipment, less cost to sell, and is not depreciated. |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired. Goodwill and indefinite-lived intangible assets are reviewed for impairment at least annually. During 2015 and 2014, the Company performed its annual impairment review as of December 31 and concluded that there was no impairment in either year. Other intangibles consist primarily of acquired dealer networks, trademarks, product drawings, patents, and software. Other intangibles with indefinite lives principally consist of acquired trademarks which have no legal, regulatory, contractual, competitive, economic, or other factor that limits their useful life. Intangible assets with an indefinite useful life are not amortized. Other intangible assets with definite lives are being amortized on a straight-line basis over 5 to 25 years. Reference is made to “Note 8: Goodwill and Other Intangibles” for further information regarding goodwill and other intangible assets. |
Income Taxes | Income Taxes The provision for income taxes is determined using the asset and liability method. CNH Industrial recognizes a current tax liability or asset for the estimated taxes payable or refundable on tax returns for the current year and tax contingencies estimated to be settled with taxing authorities within one year. A deferred tax liability or asset is recognized for the estimated future tax effects attributable to temporary differences and tax loss carry forwards. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized based on available evidence. |
Retirement and Postemployment Benefits | Retirement and Postemployment Benefits CNH Industrial sponsors numerous defined benefit and defined contribution pension plans, the assets of which are held in separate trustee-administered funds. The pension plans are funded by payments from CNH Industrial. The cost of providing defined benefit pension and other postretirement benefits is calculated based upon actuarial valuations. The liability for termination indemnities is accrued in accordance with labor legislation in each country where such benefits are required. CNH Industrial contributions to defined contribution plans are charged to the income statement during the period of the employee’s service. |
Derivatives | Derivatives CNH Industrial’s policy is to enter into derivative transactions to manage exposures that arise in the normal course of business and not for trading or speculative purposes. CNH Industrial records derivative financial instruments in the consolidated balance sheets as either an asset or a liability measured at fair value. The fair value of CNH Industrial’s foreign exchange derivatives is based on quoted market exchange rates, adjusted for the respective interest rate differentials (premiums or discounts). The fair value of CNH Industrial’s interest rate derivatives is based on discounting expected cash flows, using market interest rates, over the remaining term of the instrument. Changes in the fair value of derivative financial instruments are recognized in current income unless specific hedge accounting criteria are met. For derivative financial instruments designated to hedge exposure to changes in the fair value of a recognized asset or liability, the gain or loss is recognized in income in the period of change together with the offsetting loss or gain on the related hedged item. For derivative financial instruments designated to hedge exposure to variable cash flows of a forecasted transaction, the effective portion of the derivative financial instrument’s gain or loss is initially reported in other comprehensive income (loss) and is subsequently reclassified into income when the forecasted transaction affects income. The ineffective portion of the gain or loss is recorded in income immediately. For derivative financial instruments that are not designated as hedges but held as economic hedges, the gain or loss is recognized immediately in income. For derivative financial instruments designated as hedges, CNH Industrial formally documents the hedging relationship to the hedged item and its risk management strategy for all derivatives designated as hedges. This includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities contained in the consolidated balance sheets and linking cash flow hedges to specific forecasted transactions or variability of cash flow. CNH Industrial assesses the effectiveness of its hedging instruments both at inception and on an ongoing basis. If a derivative is determined not to be highly effective as a hedge, or the underlying hedged transaction is no longer probable of occurring, or the derivative is terminated, the hedge accounting described above is discontinued and the derivative is marked to fair value and recorded in income through the remainder of its term. Reference is made to “Note 14: Financial Instruments,” for further information regarding CNH Industrial’s use of derivative financial instruments. |
Share-Based Compensation Plans | Share-Based Compensation Plans CNH Industrial recognizes all share-based compensation as an expense based on the fair value of each award on the grant date. CNH Industrial recognizes share-based compensation costs on a straight-line basis over the requisite service period for each separately vesting portion of an award. |
Earnings per Share | Earnings per Share Basic earnings per share is based on the weighted average number of shares outstanding during each period. Diluted earnings per share is based on the weighted average number of shares and dilutive share equivalents outstanding during each period. Unvested performance-based awards are considered outstanding and included in the computation of diluted earnings per share based on the number of shares that would vest if the end of the reporting period were the end of the contingency period. |
New Accounting Pronouncements | New Accounting Pronouncements Adopted Comprehensive Income In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU 2013-02”), Comprehensive Income (Topic 220), Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income Not Yet Adopted Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Revenue Recognition Going Concern In August 2014, the FASB issued ASU 2014-15, Uncertainties About an Entity’s Ability to Continue as a Going Concern 2016 Consolidation In February 2015, the FASB issued ASU 2015-02, Consolidation Debt Issuance Costs In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (“ASU 2015-15”), which amends ASC 835-30, Interest – Imputation of Interest. ASU 2015-15 clarifies the presentation and subsequent measurement of debt issuance costs associated with lines of credit. These costs may be presented as an asset and amortized ratably over the term of the line of credit arrangement, regardless of whether there are outstanding borrowings on the arrangement. ASU 2015-15 should be adopted concurrent with adoption of ASU 2015-03, which is effective for annual and interim periods beginning after December 15, 2015. The Company does not believe the adoption of this standard will have a material impact on its consolidated financial statements. Fair Value Disclosures In May 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share Inventory In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory Defined Contribution Pension Plans In July 2015, the FASB issued ASU 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965) Financial Instruments In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Respective Assets | Depreciation is recorded on a straight-line basis over the estimated useful lives of the respective assets as follows: Category Lives Buildings and improvements 10 — 40 years Plant, machinery and equipment 5 — 25 years Other equipment 3 — 10 years |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Summary of Financing Receivables | A summary of financing receivables included in the consolidated balance sheets as of December 31, 2015 and 2014 is as follows: 2015 2014 (in millions) Retail $ 10,344 $ 11,978 Wholesale 8,611 9,400 Other 46 94 Total $ 19,001 $ 21,472 |
Maturities of Financing Receivables | Contractual maturities of financing receivables as of December 31, 2015 are as follows: Amount (in millions) 2016 $ 11,475 2017 2,895 2018 2,209 2019 1,377 2020 781 2021 and thereafter 264 Total $ 19,001 |
Summary of Aging of Receivables | The aging of financing receivables as of December 31, 2015 and 2014 is as follows (in millions): 2015 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Performing Non Performing Total Retail NAFTA $ 17 $ — $ — $ 17 $ 7,869 $ 7,886 $ 36 $ 7,922 EMEA — — — — 572 572 1 573 LATAM 6 — — 6 1,286 1,292 44 1,336 APAC 1 3 — 4 509 513 — 513 Total Retail $ 24 $ 3 $ — $ 27 $ 10,236 $ 10,263 $ 81 $ 10,344 Wholesale NAFTA $ — $ — $ — $ — $ 3,656 $ 3,656 $ 79 $ 3,735 EMEA 33 2 — 35 3,613 3,648 26 3,674 LATAM 3 — — 3 595 598 4 602 APAC 6 4 26 36 518 554 46 600 Total Wholesale $ 42 $ 6 $ 26 $ 74 $ 8,382 $ 8,456 $ 155 $ 8,611 2014 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Performing Non Performing Total Retail NAFTA $ 31 $ 2 $ — $ 33 $ 8,596 $ 8,629 $ 10 $ 8,639 EMEA 14 8 — 22 881 903 58 961 LATAM 3 — — 3 1,762 1,765 37 1,802 APAC 2 — 2 4 572 576 — 576 Total Retail $ 50 $ 10 $ 2 $ 62 $ 11,811 $ 11,873 $ 105 $ 11,978 Wholesale NAFTA $ 1 $ — $ — $ 1 $ 4,079 $ 4,080 $ 52 $ 4,132 EMEA 72 4 — 76 3,874 3,950 6 3,956 LATAM 1 — — 1 861 862 — 862 APAC 16 3 30 49 372 421 29 450 Total Wholesale $ 90 $ 7 $ 30 $ 127 $ 9,186 $ 9,313 $ 87 $ 9,400 |
Allowance for Credit Losses Activity | Allowance for credit losses activity for the three years ended December 31, 2015, 2014 and 2013 is as follows (in millions): December 31, 2015 Retail Wholesale Other Total Opening balance $ 468 $ 182 $ — $ 650 Provision 81 27 — 108 Charge-offs, net of recoveries (92 ) (13 ) — (105 ) Foreign currency translation and other (63 ) (38 ) — (101 ) Ending balance 394 158 — 552 Ending balance: Individually evaluated for impairment 187 125 — 312 Ending balance: Collectively evaluated for impairment 207 33 — 240 Receivables: Ending balance 10,344 8,611 46 19,001 Ending balance: Individually evaluated for impairment 416 767 — 1,183 Ending balance: Collectively evaluated for impairment $ 9,928 $ 7,844 $ 46 $ 17,818 December 31, 2014 Retail Wholesale Other Total Opening balance $ 613 $ 112 $ 1 $ 726 Provision 86 71 2 159 Charge-offs, net of recoveries (135 ) (24 ) (2 ) (161 ) Foreign currency translation and other (96 ) 23 (1 ) (74 ) Ending balance 468 182 — 650 Ending balance: Individually evaluated for impairment 233 115 — 348 Ending balance: Collectively evaluated for impairment 235 67 — 302 Receivables: Ending balance 11,978 9,400 94 21,472 Ending balance: Individually evaluated for impairment 484 758 — 1,242 Ending balance: Collectively evaluated for impairment $ 11,494 $ 8,642 $ 94 $ 20,230 December 31, 2013 Retail Wholesale Other Total Opening balance $ 661 $ 120 $ 1 $ 782 Provision 62 1 — 63 Charge-offs, net of recoveries (111 ) (8 ) — (119 ) Foreign currency translation and other 1 (1 ) — — Ending balance 613 112 1 726 Ending balance: Individually evaluated for impairment 292 101 — 393 Ending balance: Collectively evaluated for impairment 321 11 1 333 Receivables: Ending balance 12,730 9,111 135 21,976 Ending balance: Individually evaluated for impairment 569 742 — 1,311 Ending balance: Collectively evaluated for impairment $ 12,161 $ 8,369 $ 135 $ 20,665 |
Summary of Financing Receivable Impairment | Financing receivables are considered impaired when it is probable the Company will be unable to collect all amounts due according to the contractual terms. Receivables reviewed for impairment generally include those that are either past due, or have provided bankruptcy notification, or require significant collection efforts. Receivables, which are impaired, are generally classified as non-performing. 2015 2014 Recorded Investment Unpaid Principal Balance Related Allowance Average Investment Recorded Investment Unpaid Principal Balance Related Allowance Average Investment (in millions) With no related allowance Retail NAFTA $ 41 $ 40 $ — $ 37 $ 24 $ 24 $ — $ 22 EMEA $ 74 $ 74 $ — $ 79 $ 91 $ 91 $ — $ 95 LATAM $ — $ — $ — $ — $ — $ — $ — $ — APAC $ — $ — $ — $ — $ — $ — $ — $ — Wholesale NAFTA $ — $ — $ — $ — $ 12 $ 12 $ — $ 21 EMEA $ 33 $ 33 $ — $ 35 $ 35 $ 35 $ — $ 39 LATAM $ — $ — $ — $ — $ — $ — $ — $ — APAC $ — $ — $ — $ — $ — $ — $ — $ — With an allowance recorded Retail NAFTA $ 54 $ 53 $ 18 $ 52 $ 33 $ 32 $ 13 $ 34 EMEA $ 238 $ 238 $ 167 $ 263 $ 311 $ 311 $ 212 $ 312 LATAM $ — $ — $ — $ — $ — $ — $ — $ — APAC $ 9 $ 9 $ 2 $ 12 $ 25 $ 25 $ 8 $ 26 Wholesale NAFTA $ 82 $ 82 $ 3 $ 92 $ 60 $ 60 $ 3 $ 63 EMEA $ 607 $ 607 $ 95 $ 657 $ 608 $ 608 $ 98 $ 708 LATAM $ 25 $ 21 $ 7 $ 22 $ 25 $ 20 $ 8 $ 20 APAC $ 20 $ 20 $ 20 $ 18 $ 18 $ 18 $ 6 $ 13 Total Retail $ 416 $ 414 $ 187 $ 443 $ 484 $ 483 $ 233 $ 489 Wholesale $ 767 $ 763 $ 125 $ 824 $ 758 $ 753 $ 115 $ 864 |
Carrying Amount of Restricted Assets Included In Financing Receivables | At December 31, 2015 and 2014, the carrying amount of such restricted assets included in financing receivables above are the following (in millions): Restricted Receivables 2015 2014 Retail note and finance lease receivables $ 7,695 $ 8,718 Wholesale receivables 6,189 6,005 Total $ 13,884 $ 14,723 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories (stated at the lower of cost or market, cost being determined on a FIFO basis) as of December 31, 2015, and 2014 consist of the following: 2015 2014 (in millions) Raw materials $ 1,254 $ 1,672 Work-in-process 747 552 Finished goods 3,689 4,784 Total inventories $ 5,690 $ 7,008 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment | A summary of property, plant and equipment as of December 31, 2015, and 2014 is as follows: 2015 2014 (in millions) Land and industrial buildings $ 3,056 $ 3,306 Plant, machinery and equipment 7,857 8,357 Assets sold with buy-back commitment 2,775 2,750 Construction in progress 191 213 Other 799 868 Gross property, plant and equipment 14,678 15,494 Accumulated depreciation (8,197 ) (8,629 ) Net property, plant and equipment $ 6,481 $ 6,865 |
Summary of Property, Plant and Equipment Recorded under Finance Leases | A summary of property, plant and equipment recorded under capital leases ¹ as of December 31, 2015, and 2014 is as follows: 2015 2014 (in millions) Gross capital leases ² $ 139 $ 148 Accumulated depreciation (50 ) (41 ) Net capital leases $ 89 $ 107 ¹ Included in property, plant and equipment table above ² Consists of industrial buildings, plant, machinery and equipment |
Investments in Unconsolidated36
Investments in Unconsolidated Subsidiaries and Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Summary of Investments in Unconsolidated Subsidiaries and Affiliates | A summary of investments in unconsolidated subsidiaries and affiliates as of December 31, 2015, and 2014 is as follows: 2015 2014 (in millions) Equity method $ 519 $ 593 Cost method 8 12 Total $ 527 $ 605 |
Summary of Results of Operations and Financial Position Using Equity Method | A summary of the combined results of operations and financial position as reported by the investees that CNH Industrial accounts for using the equity method is as follows: For the Years Ended December 31, 2015 2014 2013 (in millions) Net revenue $ 3,911 $ 4,849 $ 5,211 Income before taxes $ 127 $ 251 $ 321 Net income $ 68 $ 194 $ 289 As of December 31, 2015 2014 (in millions) Total Assets $ 6,867 $ 7,448 Total Liabilities $ 5,545 $ 5,877 Total Equity $ 1,322 $ 1,571 |
Equipment on Operating Leases (
Equipment on Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Summary of Equipment on Operating Leases | A summary of equipment on operating leases as of December 31, 2015, and 2014 is as follows: 2015 2014 (in millions) Equipment on operating leases $ 2,127 $ 1,814 Accumulated depreciation (292 ) (296 ) Net equipment on operating leases $ 1,835 $ 1,518 |
Lease Payments Owed for Equipment Under Operating Leases | Lease payments owed to CNH Industrial for equipment under non-cancelable operating leases as of December 31, 2015, are as follows: Amount (in millions) 2016 $ 187 2017 112 2018 46 2019 14 2020 29 Beyond 5 years 1 Total $ 389 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill | Changes in the carrying amount of goodwill, for the years ended December 31, 2015, and 2014 are as follows: Agricultural Equipment Construction Equipment Commercial Vehicles Powertrain Financial Services Total (in millions) Balance at January 1, 2014 $ 1,657 $ 606 $ 71 $ 6 $ 164 $ 2,504 Acquisition 8 — — — — 8 Impact of foreign exchange (3 ) (11 ) (10 ) (1 ) (3 ) (28 ) Balance at December 31, 2014 1,662 595 61 5 161 2,484 Impact of foreign exchange (17 ) (7 ) (4 ) — (9 ) (37 ) Balance at December 31, 2015 $ 1,645 $ 588 $ 57 $ 5 $ 152 $ 2,447 |
Other Intangible Assets and Related Accumulated Amortization | As of December 31, 2015, and 2014, the Company’s other intangible assets and related accumulated amortization consisted of the following: 2015 2014 Weighted Avg. Life Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in millions) Other intangible assets subject to amortization: Dealer networks 15 $ 289 $ 143 $ 146 $ 285 $ 131 $ 154 Patents, concessions and licenses and other 5-25 1,569 1,187 382 1,701 1,281 420 1,858 1,330 528 1,986 1,412 574 Other intangible assets not subject to amortization: Trademarks 282 — 282 276 — 276 Total Other intangible assets $ 2,140 $ 1,330 $ 810 $ 2,262 $ 1,412 $ 850 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Debt | A summary of debt as of December 31, 2015 and 2014, including drawings under credit lines, is as follows: 2015 2014 Industrial Activities Financial Services Consolidated Industrial Activities Financial Services Consolidated (in millions) Bonds (*): Matured in 2015, interest rate of 5.250% $ — $ — $ — $ 1,214 $ — $ 1,214 Payable in 2018, interest rate of 6.250% 1,306 — 1,306 1,457 — 1,457 Payable in 2019, interest rate of 2.750% 1,089 — 1,089 1,214 — 1,214 Payable in 2021, interest rate of 2.875% 762 — 762 850 — 850 Payable in 2025, interest rate of 3.500% 109 — 109 — — — Payable in 2016, interest rate of 7.250% 254 — 254 253 — 253 Payable in 2017, interest rate of 7.875% 1,526 — 1,526 1,535 — 1,535 Payable in 2016, interest rate of 6.250% — 500 500 — 500 500 Matured in 2015, interest rate of 3.875% — — — — 750 750 Payable in 2018, interest rate of 3.625% — 600 600 — 598 598 Payable in 2017, interest rate of 3.250% — 500 500 — 500 500 Payable in 2019, interest rate of 3.375% — 500 500 — 500 500 Payable in 2018, interest rate of 3.875% — 600 600 — — — Payable in 2020, interest rate of 4.375% — 600 600 — — — Other Debt: Asset-backed debt 13 12,986 12,999 26 13,561 13,587 Other debt 2,199 2,844 5,043 3,630 3,006 6,636 Intersegment debt 1,046 2,089 — 1,341 4,671 — Total Debt $ 8,304 $ 21,219 $ 26,388 $ 11,520 $ 24,086 $ 29,594 (*) Includes unamortized debt discounts/premiums and fair value hedge adjustments. |
Minimum Annual Repayment of Debt | A summary of the minimum annual repayments of debt as of December 31, 2015, for 2016 and thereafter is as follows: Industrial Activities Financial Services Consolidated (in millions) 2016 $ 1,252 $ 8,355 $ 9,607 2017 1,892 3,999 5,891 2018 1,773 3,777 5,550 2019 1,318 1,949 3,267 2020 59 898 957 2021 and thereafter 964 152 1,116 Intersegment 1,046 2,089 — Total $ 8,304 $ 21,219 $ 26,388 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes - Sources of Income (Loss) Before Taxes and Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates | The sources of income before taxes and equity in income of unconsolidated subsidiaries and affiliates for the years ended December 31, 2015, 2014, and 2013 are as follows: 2015 2014 2013 (in millions) Parent country source $ 11 $ (12 ) $ 14 Foreign sources 556 1,101 1,360 Income before taxes and equity in income of unconsolidated subsidiaries and affiliates $ 567 $ 1,089 $ 1,374 |
Income Taxes - Provision for Income Taxes | The provision for income taxes for the years ended December 31, 2015, 2014 and 2013 consisted of the following: 2015 2014 2013 (in millions) Current income taxes $ 263 $ 489 $ 755 Deferred income taxes 97 (22 ) (84 ) Total income tax provision $ 360 $ 467 $ 671 |
Income Taxes - Reconciliation of Statutory and Effective Income Tax Rate | 2015 2014 2013 (in percentages) Tax provision at the parent statutory rate 20 % 22 % 23 % Foreign income taxed at different rates 10 14 11 Change in valuation allowance 19 14 13 Italian IRAP taxes 1 3 2 Tax contingencies 5 (6 ) 3 Tax credits and incentives (8 ) (8 ) (7 ) Tax effect of permanent difference due to Venezuelan net monetary assets re-measurement 9 — — Change in tax rate or law 4 — — Withholding taxes 2 — — Other 1 4 4 Total income tax provision 63 % 43 % 49 % |
Components of Net deferred Tax Assets | The amount reported for foreign income taxed at different rates relates to the taxes on earnings generated in various jurisdictions outside of the United Kingdom, including the United States. The components of net deferred tax assets as of December 31, 2015 and 2014 are as follows: 2015 2014 (in millions) Deferred tax assets: Inventories $ 89 $ 89 Warranty and campaigns 156 202 Allowance for credit losses 162 212 Marketing and sales incentive programs 347 445 Other risk and future charges reserve 200 173 Pension, postretirement and postemployment benefits 580 634 Measurement of derivative financial instruments — 37 Research and development costs 395 343 Other reserves 400 413 Tax loss carry forwards 712 836 Less: Valuation allowances (1,361 ) (1,484 ) Total deferred tax assets $ 1,680 $ 1,900 Deferred tax liabilities: Property, plant and equipment 432 271 Measurement of derivative financial instruments 2 — Other 330 334 Total deferred tax liabilities 764 605 Net deferred tax assets $ 916 $ 1,295 Net deferred tax assets are reflected in the accompanying consolidated balance sheets as of December 31, 2015 and 2014 as follows: 2015 2014 (in millions) Deferred tax assets $ 1,250 $ 1,747 Deferred tax liabilities (334 ) (452 ) Net deferred tax assets $ 916 $ 1,295 |
Income Taxes - Reconciliation of Gross Amounts of Tax Contingencies | A reconciliation of the gross amounts of tax contingencies at the beginning and end of the year is as follows: 2015 2014 (in millions) Balance, beginning of year $ 343 $ 555 Additions based on tax positions related to the current year 31 42 Additions for tax positions of prior years 46 81 Reductions for tax positions of prior years (72 ) (304 ) Reductions for tax positions as a result of lapse of statute (10 ) (12 ) Settlements (13 ) (19 ) Balance, end of year $ 325 $ 343 |
Employee Benefit Plans and Po41
Employee Benefit Plans and Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Postemployment Benefits [Abstract] | |
Defined Benefit Pension, Healthcare and Other Plans | The following summarizes data from CNH Industrial’s defined benefit pension, healthcare and other postemployment plans for the years ended December 31, 2015 and 2014: Pension Healthcare ˡ Other ˡ 2015 2014 2015 2014 2015 2014 (in millions) Change in benefit obligations: Beginning benefit obligation $ 3,619 $ 3,441 $ 1,243 $ 1,117 $ 526 $ 565 Service cost 30 27 8 9 15 18 Interest cost 112 134 48 51 5 10 Plan participants’ contributions 3 3 9 8 — — Actuarial (gain) loss (159 ) 442 (64 ) 150 (37 ) 58 Gross benefits paid (190 ) (233 ) (80 ) (78 ) (45 ) (40 ) Plan amendments — 1 — (12 ) — (24 ) Currency translation adjustments and other (134 ) (196 ) (7 ) (2 ) (41 ) (61 ) Ending benefit obligation 3,281 3,619 1,157 1,243 423 526 Change in the fair value of plan assets: Beginning plan assets 2,686 2,665 107 98 — — Actual return on plan assets (9 ) 288 — 11 — — Employer contributions 27 28 — — — — Plan participants’ contributions 3 3 — — — — Gross benefits paid (161 ) (199 ) (2 ) (2 ) — — Currency translation adjustments and other (66 ) (99 ) — — — — Ending plan assets 2,480 2,686 105 107 — — Funded status: $ (801 ) $ (933 ) $ (1,052 ) $ (1,136 ) $ (423 ) $ (526 ) ˡ The healthcare and other postemployment plans are not required to be prefunded. |
Defined Benefit Pension Plans by Geographical Area | The following summarizes data from CNH Industrial’s defined benefit pension plans by significant geographical area for the years ended December 31, 2015 and 2014: U.S. U.K Germany ˡ Other Countries ˡ 2015 2014 2015 2014 2015 2014 2015 2014 (in millions) Change in benefit obligations: Beginning benefit obligation $ 1,291 $ 1,223 $ 1,468 $ 1,360 $ 523 $ 537 $ 337 $ 321 Service cost 6 5 7 5 4 4 13 13 Interest cost 48 55 50 56 8 14 6 9 Plan participants’ contributions — — — — — — 3 3 Actuarial (gain) loss (54 ) 128 (74 ) 199 (16 ) 71 (15 ) 44 Gross benefits paid (83 ) (120 ) (64 ) (62 ) (29 ) (34 ) (14 ) (17 ) Plan amendments — — — — — — — 1 Currency translation adjustments and other — — (55 ) (90 ) (52 ) (69 ) (27 ) (37 ) Ending benefit obligation 1,208 1,291 1,332 1,468 438 523 303 337 Change in the fair value of plan assets: Beginning plan assets 1,295 1,269 1,105 1,099 5 6 281 291 Actual return on plan assets (30 ) 146 13 119 — — 8 23 Employer contributions — — 17 17 — — 10 11 Plan participants’ contributions — — — — — — 3 3 Gross benefits paid (83 ) (120 ) (64 ) (62 ) — — (14 ) (17 ) Currency translation adjustments and other — — (43 ) (68 ) — (1 ) (23 ) (30 ) Ending plan assets 1,182 1,295 1,028 1,105 5 5 265 281 Funded status: $ (26 ) $ 4 $ (304 ) $ (363 ) $ (433 ) $ (518 ) $ (38 ) $ (56 ) |
Net Amounts Recognized in Consolidated Balance Sheets | Net amounts recognized in the consolidated balance sheets as of December 31, 2015 and 2014 consist of: Pension Healthcare Other 2015 2014 2015 2014 2015 2014 (in millions) Other assets $ 6 $ 19 $ — $ — $ — $ — Pension, postretirement and other postemployment benefits (807 ) (952 ) (1,052 ) (1,136 ) (423 ) (526 ) Net liability recognized at end of year $ (801 ) $ (933 ) $ (1,052 ) $ (1,136 ) $ (423 ) $ (526 ) |
Pre-tax Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | Pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 2015 consist of: Pension Healthcare Other (in millions) Unrecognized actuarial losses $ 970 $ 195 $ 66 Unrecognized prior service credit (3 ) (10 ) (4 ) Accumulated other comprehensive loss $ 967 $ 185 $ 62 |
Accumulated Benefit Obligations in Excess of Plan Assets | The following table summarizes the aggregate pension accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets: Pension 2015 2014 (in millions) Accumulated benefit obligation $ 3,182 $ 2,103 Fair value of plan assets $ 2,404 $ 1,191 |
Projected Benefit Obligations in Excess of Plan Assets | The following table summarizes CNH Industrial’s pension and other postemployment plans with projected benefit obligations in excess of plan assets: Pension Healthcare Other 2015 2014 2015 2014 2015 2014 (in millions) Projected benefit obligation $ 3,211 $ 2,149 $ 1,157 $ 1,243 $ 423 $ 526 Fair value of plan assets $ 2,404 $ 1,191 $ 105 $ 107 $ — $ — |
Net Periodic Benefit Cost | The following summarizes the components of net periodic benefit cost of CNH Industrial’s defined benefit for the years ended December 31, 2015, 2014, and 2014: Pension Healthcare Other 2015 2014 2013 2015 2014 2013 2015 2014 2013 (in millions) Service cost $ 30 $ 27 $ 27 $ 8 $ 9 $ 9 $ 15 $ 18 $ 16 Interest cost 112 134 126 48 51 45 5 10 12 Expected return on assets (140 ) (151 ) (166 ) (7 ) (7 ) (7 ) — — — Amortization of: Prior service cost (credit) — 1 2 (10 ) (12 ) (12 ) 1 2 1 Actuarial loss (gain) 83 64 78 26 5 22 (7 ) 13 (5 ) Settlement loss and other — — 1 — — — — 1 1 Net periodic benefit cost $ 85 $ 75 $ 68 $ 65 $ 46 $ 57 $ 14 $ 44 $ 25 |
Net Periodic Benefit Cost Recognized in Net Income and Other Changes in Plan Assets and Benefit Obligation | Net periodic benefit cost recognized in net income and other changes in plan assets and benefit obligations that are recognized in other comprehensive loss during 2015 consist of: Pension Healthcare Other (in millions) Net periodic benefit cost $ 85 $ 65 $ 14 Benefit adjustments included in other comprehensive (income) loss: Net actuarial gains (10 ) (57 ) (37 ) Amortization of actuarial gains (losses) (83 ) (26 ) 7 Amortization of prior service (cost) credit — 10 (1 ) Currency translation adjustments and other (38 ) (1 ) (9 ) Total recognized in other comprehensive loss (131 ) (74 ) (40 ) Total recognized in comprehensive loss $ (46 ) $ (9 ) $ (26 ) |
Pre-tax Amounts Expected to be Amortized from Accumulated Other Comprehensive Income (Loss) | Pre-tax amounts expected to be amortized in 2016 from accumulated other comprehensive loss consist of: Pension Healthcare Other (in millions) Actuarial losses $ (79 ) $ (15 ) $ — Prior service (cost) credit — 4 (1 ) Total $ (79 ) $ (11 ) $ (1 ) |
Assumptions Utilized in Determining the Funded Status and Net Periodic Cost of Defined Benefit Pension Plans and Other Postretirement Benefit Plans | The following assumptions were utilized in determining the funded status as at December 31, 2015 and 2014, and the net periodic benefit cost of CNH Industrial’s defined benefit plans for the years ended December 31, 2015, 2014, and 2013: Pension plans Healthcare plans Other (in %) 2015 2014 2013 2015 2014 2013 2015 2014 2013 Assumptions used to determine funded status at December 31 Weighted-average discount rates 3.49 3.22 n/a 4.27 3.96 n/a 2.06 1.81 n/a Weighted-average rate of compensation increase 2.98 3.25 n/a 2.50 3.00 n/a 1.33 2.27 n/a Weighted-average, initial healthcare cost trend rate n/a n/a n/a 6.98 7.23 n/a n/a n/a n/a Weighted-average, ultimate healthcare cost trend rate(*) n/a n/a n/a 5.00 5.00 n/a n/a n/a n/a Assumptions used to determine expense for the years ended December 31 Weighted-average discount rates 3.22 4.05 3.75 3.96 4.67 3.79 1.81 3.00 3.27 Weighted-average rate of compensation increase 3.25 3.35 2.99 3.00 3.42 3.42 2.27 2.63 2.75 Weighted-average long-term rates of return on plan assets 5.38 5.85 5.95 6.75 6.75 7.00 n/a n/a n/a Weighted-average, initial healthcare cost trend rate n/a n/a n/a 7.23 8.19 7.04 n/a n/a n/a Weighted-average, ultimate healthcare cost trend rate(*) n/a n/a n/a 5.00 5.00 5.00 n/a n/a n/a * CNH Industrial expects to achieve the ultimate healthcare cost trend rate in 2024 and 2018 for U.S. and Canada plans, respectively. |
Effect of One Percentage Point Change in Assumed Healthcare Cost Trend Rates | A one percentage point change in the assumed healthcare cost trend rates would have the following effect: One Percentage- Point Increase One Percentage- Point Decrease (in millions) Total increase/(decrease) in service cost and interest cost components of 2015 Healthcare Plan benefit expense $ 8 $ (7 ) Total increase/(decrease) in accumulated Healthcare benefit obligations as of December 31, 2015 $ 149 $ (121 ) |
Weighted Average Target Asset Allocation for All Plans | Weighted average target asset allocation for all plans for 2015 are as follows: All Plans Asset category: Equity securities 22 % Debt securities 67 % Cash/Other 11 % |
Summary of Fair Value of Plan Assets by Asset Category and Level Within Fair Value Hierarchy | The following summarizes the fair value of plan assets by asset category and level within the fair value hierarchy as of December 31, 2015: Total Level 1 Level 2 Level 3 (in millions) Equity securities: U.S. equities—large cap $ 53 $ 15 $ 38 $ — U.S. equities—mid cap — — — — U.S. equities—small cap — — — — Non-U.S. equities 289 — 289 — Total Equity securities 342 15 327 — Fixed income securities: U.S. government bonds 305 302 3 — U.S. corporate bonds 504 — 504 — Non-U.S. government bonds 611 17 594 — Non-U.S. corporate bonds 112 — 112 — Mortgage backed securities 1 — 1 — Other fixed income 12 — 12 — Total Fixed income securities 1,545 319 1,226 — Other types of investments: Mutual funds (A) 537 — 537 — Insurance contracts 133 — — 133 Derivatives—credit contracts — — — — Real estate — — — — Other (B) 8 — 8 — Total Other types of investments 678 — 545 133 Cash: 20 1 19 — Total $ 2,585 $ 335 $ 2,117 $ 133 (A) This category includes mutual funds, which primarily invest in non-U.S. equities and non-U.S. corporate bonds. (B) This category includes primarily commingled funds, which invest in both U.S. and non-U.S. equity securities. The following summarizes the fair value of plan assets by asset category and level within the fair value hierarchy as of December 31, 2014: Total Level 1 Level 2 Level 3 (in millions) Equity securities: U.S. equities—large cap $ — $ — $ — $ — U.S. equities—mid cap — — — — U.S. equities—small cap — — — — Non-U.S. equities—large cap 15 15 — — Total Equity securities 15 15 — — Fixed income securities: U.S. government bonds 346 336 10 — U.S. corporate bonds 534 — 534 — Non-U.S. government bonds 682 17 665 — Non-U.S. corporate bonds 116 — 116 — Mortgage backed securities 1 — 1 — Other fixed income 31 — 31 — Total Fixed income securities 1,710 353 1,357 — Other types of investments: Mutual funds(A) 556 — 556 — Insurance contracts 125 — — 125 Derivatives—credit contracts 4 4 — — Real estate — — — — Other (B) 350 — 350 — Total Other types of investments 1,035 4 906 125 Cash: 33 — 33 — Total $ 2,793 $ 372 $ 2,296 $ 125 (A) This category includes mutual funds, which primarily invest in non-U.S. equities and non-U.S. corporate bonds. (B) This category includes primarily commingled funds, which invest in both U.S. and non-U.S. equity securities. |
Changes in Level 3 Plan Assets | The following table presents the changes in the Level 3 plan assets for the year ended December 31, 2015: Insurance Contracts Balance at December 31, 2014 $ 125 Actual return on plan assets relating to assets still held at reporting date 2 Purchases 7 Settlements (6 ) Transfers in and/or out of level 3 6 Currency impact (1 ) Balance at December 31, 2015 $ 133 The following table presents the changes in the Level 3 plan assets for the year ended December 31, 2014: Insurance Contracts Balance at December 31, 2013 $ 33 Actual return on plan assets relating to assets still held at reporting date 6 Purchases 105 Settlements (3 ) Currency impact (16 ) Balance at December 31, 2014 $ 125 |
Cash Flows Related to Total Benefits Expected to be Paid | The benefit expected to be paid from the benefit plans, which reflect expected future years of service, and the Medicare subsidy expected to be received are as follows: Pension Plans Healthcare Medicare Part D Reimbursement Other (in millions) 2016 $ 189 $ 74 $ (1 ) $ 30 2017 189 72 — 30 2018 188 71 — 35 2019 189 71 — 33 2020 193 70 — 35 2021 - 2025 964 341 (2 ) 146 Total $ 1,912 $ 699 $ (3 ) $ 309 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Liabilities | A summary of “Other liabilities” as of December 31, 2015 and 2014 is as follows: 2015 2014 (in millions) Advances on buy-back agreements $ 2,147 $ 1,962 Warranty and campaign programs 908 1,020 Marketing and sales incentive programs 1,166 1,413 Tax payables 528 680 Accrued expenses and deferred income 577 731 Accrued employee benefits 572 669 Legal reserves and other provisions 389 410 Contract reserve 396 390 Restructuring reserve 51 95 Other 736 689 Total $ 7,470 $ 8,059 |
Summary of Recorded Activity for Basic Warranty and Accruals for Campaign Programs | A summary of recorded activity for the years ended December 31, 2015 and 2014 for the basic warranty and accruals for campaign programs are as follows: 2015 2014 (in millions) Balance, beginning of year $ 1,020 $ 1,111 Current year additions 738 866 Claims paid (723 ) (837 ) Currency translation adjustment and other (127 ) (120 ) Balance, end of year $ 908 $ 1,020 |
Schedule Of Restructuring Activity | The following table sets forth restructuring activity for the years ended December 31, 2015, 2014 and 2013: Severance and Other Employee Costs Facility Related Costs Other Restructuring Total (in millions) Balance at January 1, 2013 $ 131 $ — $ 24 $ 155 Restructuring charges 67 1 3 71 Reserves utilized: cash (122 ) — (16 ) (138 ) Reserves utilized: non-cash (8 ) — (3 ) (11 ) Currency translation adjustments 1 — (1 ) — Balance at December 31, 2013 69 1 7 77 Restructuring charges 118 32 34 184 Reserves utilized: cash (74 ) — (8 ) (82 ) Reserves utilized: non-cash (13 ) (26 ) (24 ) (63 ) Currency translation adjustments (14 ) (1 ) (6 ) (21 ) Balance at December 31, 2014 86 6 3 95 Restructuring charges 66 — 18 84 Reserves utilized: cash (112 ) (3 ) (1 ) (116 ) Reserves utilized: non-cash (5 ) — — (5 ) Currency translation adjustments (5 ) 2 (4 ) (7 ) Balance at December 31, 2015 $ 30 $ 5 $ 16 $ 51 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Minimum Rental Commitments Under Non Cancelable Operating Leases with Lease Terms in excess of One Year | Total future minimum lease payments under non-cancellable lease contracts are as follows: Amount (in millions) 2016 $ 73 2017 59 2018 43 2019 33 2020 27 2021 and beyond 34 Total minimum rental commitments $ 269 |
Financial Services has Various Agreements to Extend Credit | At December 31, 2015, Financial Services has various agreements to extend credit for the following financing arrangements: Facility Total Credit Limit Utilized Not Utilized (in millions) Wholesale and dealer financing $ 7,007 $ 3,770 $ 3,237 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments All Other Investments [Abstract] | |
Fair Values of Derivatives | The fair values of CNH Industrial’s derivatives as of December 31, 2015 and 2014 in the consolidated balance sheets are recorded as follows: 2015 2014 (in millions) Derivatives Designated as Hedging Instruments: Assets: Foreign exchange contracts: $ 61 $ 75 Interest rate derivatives: 30 37 Cross currency swaps: 16 — Total Assets $ 107 $ 112 Liabilities Foreign exchange contracts: $ (29 ) $ (178 ) Interest rate derivatives: (6 ) (12 ) Total Liabilities $ (35 ) $ (190 ) Derivatives Not Designated as Hedging Instruments: Assets: Foreign exchange contracts: $ 100 $ 86 Interest rate derivatives: 4 7 Total Assets $ 104 $ 93 Liabilities Foreign exchange contracts: $ (30 ) $ (37 ) Interest rate derivatives: (4 ) (8 ) Total Liabilities $ (34 ) $ (45 ) |
Pre Tax Gains losses on Consolidated Statements of Operations | Pre-tax gains (losses) on the consolidated statements of operations related to CNH Industrial’s derivatives for the year ended December 31, 2015, 2014 and 2013 are recorded in the following accounts: 2015 2014 2013 (in millions) Fair Value Hedges Interest rate derivatives—Interest expense $ 9 $ (8 ) $ (45 ) Gains/(losses) on hedged items—Interest expense (9 ) 8 45 Cash Flow Hedges Recognized in accumulated other comprehensive income (effective portion): Foreign exchange contracts—accumulated other comprehensive income $ (19 ) $ (251 ) $ 208 Interest rate derivatives—accumulated other comprehensive income (39 ) 1 (7 ) Reclassified from accumulated other comprehensive income (effective portion): Foreign exchange contracts—Net sales $ 16 $ 14 $ 15 Foreign exchange contracts—Cost of goods sold (211 ) (7 ) 7 Foreign exchange contracts—Other, net (10 ) (30 ) 59 Interest rate derivatives—Interest expense (7 ) (12 ) (14 ) Not Designated as Hedges Foreign exchange contracts—Other, net $ 115 $ (14 ) $ 64 |
Fair Value Hierarchy Levels of Assets and Liabilities Value on Recurring Basis | The following tables present for each of the fair-value hierarchy levels the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2015 and 2014: Level 1 Level 2 Total 2015 2014 2015 2014 2015 2014 (in millions) Assets Foreign exchange derivatives $ — $ — $ 161 $ 161 $ 161 $ 161 Interest rate derivatives — — 34 44 34 44 Cross currency swaps — — 16 — 16 — Available for sale securities 1 1 — — 1 1 Total Assets $ 1 $ 1 $ 211 $ 205 $ 212 $ 206 Liabilities Foreign exchange derivatives $ — $ — $ (59 ) $ (215 ) $ (59 ) $ (215 ) Interest rate derivatives — — (10 ) (20 ) (10 ) (20 ) Total Liabilities $ — $ — $ (69 ) $ (235 ) $ (69 ) $ (235 ) |
Estimated Fair Market Values of Financial Instruments Not Carried at Fair Value in Consolidated Balance Sheets | The estimated fair market values of financial instruments not carried at fair value in the consolidated balance sheets as of December 31, 2015 and 2014 are as follows: 2015 2014 Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Financing receivables $ 19,001 $ 18,868 $ 21,472 $ 21,427 Debt $ 26,388 $ 26,371 $ 29,594 $ 29,883 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Changes in Common Shares Issued According to the Exchange Ratio | The following table shows a reconciliation between the composition of the share capital of CNH Industrial N.V. at September 30, 2013 on the basis of the shares issued according to the exchange ratios with Fiat Industrial and CNH Global shares upon the completion of the mergers, and the composition of the share capital of CNH Industrial at December 31, 2015, 2014, and 2013: (number of shares) Common shares pre-merger CNH Industrial N.V. Common Shares CNH N.V. Special Voting Shares Total CNH Industrial N.V. Shares Fiat Industrial S.p.A. common shares 1,222,560,247 (a) 1,222,560,247 (*) 451,262,083 (**) 1,673,822,330 CNH Global N.V. common shares (noncontrolling interests) 32,995,696 126,307,525 (*) 23,212,193 (**) 149,519,718 Total CNH Industrial N.V. shares at September 30, 2013 1,348,867,772 474,474,276 1,823,342,048 Capital increase 1,205,758 — 1,205,758 Retirement of special voting shares — (5,479,890 ) (5,479,890 ) Total CNH Industrial N.V. shares at December 31, 2013 1,350,073,530 468,994,386 1,819,067,916 Capital increase 5,246,110 — 5,246,110 Retirement of special voting shares — (53,594,883 ) (53,594,883 ) Total CNH Industrial N.V. shares at December 31, 2014 1,355,319,640 415,399,503 1,770,719,143 Capital increase 6,729,349 — 6,729,349 Retirement of special voting shares — (2,150,297 ) (2,150,297 ) Total CNH Industrial N.V. shares at December 31, 2015 1,362,048,989 413,249,206 1,775,298,195 (a) Total n. 1,222,568,882 Fiat Industrial S.p.A. common shares are shown net of 8,635 treasury shares that have been cancelled at the closing of the merger. (*) Allotted on the basis of the established exchange ratios of one common share of CNH Industrial N.V. for each share of Fiat Industrial S.p.A. and 3.828 common shares of CNH Industrial N.V for each share of CNH Global N.V. (**) Allotted to eligible Fiat Industrial N.V. and CNH Global N.V. shareholders who had elected to receive special voting shares. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Weighted-Average Assumptions Used under Black-Scholes/Monte Carlo | As a significant majority of the awards (approximately 90% of total awards as of December 31, 2015) was issued on June 9 and 25, 2014, the key assumptions utilized to calculate the grant-date fair values for awards issued on these two grant dates are listed below: Key Assumptions for awards issued on June 9, 2014 June 25, 2014 Expected Volatility 44.5% 44.1% Dividend yield 2.6% 2.7% Risk-free rate 1.69% 1.68% |
Performance-Based Share Activity | The following table reflects the share activity under the Company Performance LTI for the year ended December 31, 2015: 2015 Number of Shares Grant-Date Fair Value (in €) Nonvested at beginning of year 1,000,000 € 7.795 Granted — € — Forfeited — € — Vested (1,000,000 ) € 7.795 Nonvested at end of year — € — The following table reflects the share activity under the Retention LTI for the year ended December 31, 2015: 2015 Number of Shares Grant-Date Fair Value (in €) Nonvested at beginning of year 366,666 € 7.795 Granted — € — Forfeited — € — Vested (366,666 ) € 7.795 Nonvested at end of year — € — |
Additional Share Based Compensation Information | The table below provides additional share-based compensation information for the years ended December 31, 2015, 2014 and 2013: 2015 2014 2013 (in millions) Total intrinsic value of options exercised $ 1 $ 5 $ 30 Fair value of shares vested $ 36 $ 32 $ 50 Cash received from share award exercises $ 8 $ 10 $ 63 Tax benefit of options exercised and shares vested $ — $ — $ 3 |
CNH EIP [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Weighted-Average Assumptions Used under Black-Scholes/Monte Carlo | The Black-Scholes pricing model was used to calculate the fair value of stock options for options granted in 2012 under the CNH EIP. The assumptions used under the Black-Scholes pricing model were as follows: 2012 Risk-free interest rate 0.40 % Expected dividend yield 0.00 % Price volatility of CNH Global N.V. shares 51.70 % Option life (years) 3.39 |
Summary of Outstanding Stock Options | The following table summarizes outstanding stock options under the CNH EIP at December 31, 2015: Options Outstanding Options Exercisable Range of Exercise Price Shares Outstanding Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Aggregate Intrinsic Value(A) Shares Exercisable Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Aggregate Intrinsic Value(A) $5.01–$10.00 4,491,907 1.6 $ 8.32 $ 30,755 4,491,907 1.6 $ 8.32 $ 30,755 $10.01–$15.00 4,278,010 1.2 $ 10.15 $ — 4,278,010 1.2 $ 10.15 $ — $ 30,755 $ 30,755 (A) |
Stock Option Activity | The following table reflects the stock option activity under the CNH EIP for the year ended December 31, 2015: 2015 Shares Weighted- Average Exercise Price Outstanding at beginning of year 10,861,553 $ 9.03 Forfeited (1,033,560 ) $ 9.58 Expired — $ — Exercised (1,058,075 ) $ 6.95 Outstanding at end of year 8,769,918 $ 9.21 Exercisable at end of year 8,769,918 $ 9.21 |
CNH EIP [Member] | Performance Shares [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Schedule of Performance-Based Share Activity | The following table reflects the activity of performance-based share units under CNH Industrial EIP for the year ended December 31, 2015: 2015 Performance Shares Weighted Average Grant-Date Fair Value Nonvested at beginning of year 12,101,760 $ 8.84 Granted 980,400 $ 6.25 Forfeited (1,490,900 ) $ 8.69 Vested — $ — Nonvested at end of year 11,591,260 $ 8.64 |
CNH EIP [Member] | Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Schedule of Restricted-Based Share Activity | The following table reflects the activity of restricted share units under CNH Industrial EIP for the year ended December 31, 2015: 2015 Restricted Shares Weighted Average Grant-Date Fair Value Nonvested at beginning of year 3,512,139 $ 9.88 Granted 1,531,900 $ 8.08 Forfeited (158,186 ) $ 9.29 Vested (1,140,333 ) $ 10.21 Nonvested at end of year 3,745,520 $ 9.67 The following table reflects the activity of restricted share units under CNH EIP for the year ended December 31, 2015: 2015 Restricted Shares Weighted Average Grant-Date Fair Value Nonvested at beginning of year 3,191,444 $ 7.82 Granted — $ — Forfeited (78,869 ) $ 8.79 Vested (3,112,575 ) $ 7.79 Nonvested at end of year — $ — |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Reconciles Numerator and Denominator of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic EPS and diluted EPS for the years ended December 31, 2015, 2014 and 2013. 2015 2014 2013 (in millions, except per share data) Basic: Net income attributable to CNH Industrial $ 253 $ 710 $ 677 Weighted average common shares outstanding—basic 1,361 1,354 1,255 Basic earnings per share $ 0.19 $ 0.52 $ 0.54 Diluted: Net income attributable to CNH Industrial $ 253 $ 710 $ 677 Weighted average common shares outstanding—basic 1,361 1,354 1,255 Effect of dilutive securities (when dilutive): Stock compensation plans (A) 2 6 2 Weighted average common shares outstanding—diluted 1,363 1,360 1,257 Diluted earnings per share $ 0.19 $ 0.52 $ 0.54 ___________________________ (A) For the twelve months ended December 31, 2015, there were no shares outstanding excluded from the calculation of diluted earnings per share due to anti-dilutive impact. |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Components of Other Comprehensive Income (Loss) | The tax effect for each component of other comprehensive income (loss) consisted of the following: Year ended December 31, 2015 Gross Amount Income Taxes Net Amount Unrealized gain (loss) on cash flow hedges $ 154 $ (34 ) $ 120 Changes in retirement plans’ funded status 191 (33 ) 158 Foreign currency translation (359 ) — (359 ) Unrealized gain (loss) on available for sale securities — — — Share of other comprehensive loss of entities using the equity method (47 ) — (47 ) Other comprehensive loss $ (61 ) $ (67 ) $ (128 ) Year ended December 31, 2014 Gross Amount Income Taxes Net Amount Unrealized gain (loss) on cash flow hedges $ (215 ) $ 49 $ (166 ) Changes in retirement plans’ funded status (337 ) 55 (282 ) Foreign currency translation 125 — 125 Unrealized gain (loss) on available for sale securities — — — Share of other comprehensive loss of entities using the equity method (44 ) — (44 ) Other comprehensive income (loss) $ (471 ) $ 104 $ (367 ) Year ended December 31, 2013 Gross Amount Income Taxes Net Amount Unrealized gain (loss) on cash flow hedges $ 134 $ (40 ) $ 94 Changes in retirement plans’ funded status 197 (110 ) 87 Foreign currency translation (510 ) — (510 ) Unrealized gain (loss) on available for sale securities (2 ) 1 (1 ) Share of other comprehensive loss of entities using the equity method (23 ) — (23 ) Other comprehensive loss $ (204 ) $ (149 ) $ (353 ) |
Components of Accumulated Other Comprehensive Income (Loss) | The changes, net of tax, in each component of accumulated other comprehensive income (loss) consisted of the following: Unrealized Gain (Loss) Cash Flow Hedges Change in Retirement Plans’ Funded Status Foreign Currency Translation Unrealized Gain Available For Sale Securities Share of Other Comprehensive Income of Entities Using the Equity Method Total Balance, December 31, 2012 $ (41 ) $ (810 ) $ (70 ) $ 2 $ 8 $ (911 ) Other comprehensive income (loss), before reclassifications 144 53 (492 ) — (20 ) (315 ) Amounts reclassified from other comprehensive income (loss) (55 ) 38 — (2 ) — (19 ) Other comprehensive income (loss)¹ 89 91 (492 ) (2 ) (20 ) (334 ) Purchase of noncontrolling interest 1 (107 ) (12 ) — (10 ) (128 ) Balance, December 31, 2013 49 (826 ) (574 ) — (22 ) (1,373 ) Other comprehensive income (loss), before reclassifications (201 ) (337 ) 126 — (44 ) (456 ) Amounts reclassified from other comprehensive income 35 58 — — — 93 Other comprehensive income (loss)¹ (166 ) (279 ) 126 — (44 ) (363 ) Balance, December 31, 2014 (117 ) (1,105 ) (448 ) — (66 ) (1,736 ) Other comprehensive income (loss), before reclassifications (28 ) 76 (358 ) — (47 ) (357 ) Amounts reclassified from other comprehensive income 148 82 — — — 230 Other comprehensive income (loss)¹ 120 158 (358 ) — (47 ) (127 ) Balance, December 31, 2015 $ 3 $ (947 ) $ (806 ) $ — $ (113 ) $ (1,863 ) ¹ Excluded from the table above is other comprehensive loss allocated to noncontrolling interests of $(1), $(4) and $(19) for the years ended December 31, 2015, 2014 and 2013, respectively. |
Schedule of Reclassification Out of Accumulated Other Comprehensive Income | Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in 2015 and 2014 consisted of the following: Amount Reclassified from Other Comprehensive Income (Loss) Consolidated Statement of Operations line 2015 2014 (in millions) Cash flow hedges $ (16 ) $ (14 ) Net sales 211 7 Cost of goods sold 10 30 Other, net 7 12 Interest expense (64 ) — Income taxes $ 148 $ 35 Change in retirement plans’ funded status: Amortization of actuarial losses $ 102 $ 82 * Amortization of prior service cost (9 ) (9 ) * (11 ) (15 ) Income taxes $ 82 $ 58 Total reclassifications, net of tax $ 230 $ 93 * These amounts are included in net periodic pension and other postretirement benefit cost. See “Note 11: Employee Benefit Plans and Postretirement Benefits” for addition information. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Reconciliation of Profit Under US GAAP | A reconciliation from consolidated operating profit to income before income taxes and equity in income of unconsolidated subsidiaries and affiliates under U.S. GAAP for the years ended December 31, 2015, 2014 and 2013 are provided below. Years Ended December 31, 2015 2014 2013 (in millions) Operating profit $ 1,635 $ 2,199 $ 2,277 Adjustments/reclassifications to convert from operating profit to U.S. GAAP income before income taxes and equity in income of unconsolidated subsidiaries: Restructuring expenses (84 ) (184 ) (71 ) Interest expenses of Industrial Activities, net of interest income and eliminations (479 ) (613 ) (548 ) Other, net (505 ) (313 ) (284 ) Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates under U.S. GAAP $ 567 $ 1,089 $ 1,374 |
Summary of Operating Segment Information | A summary of additional operating segment information as of and for the years ended December 31, 2015, 2014 and 2013 is as follows: Years Ended December 31, 2015 2014 2013 (in millions) Revenues: Agricultural Equipment $ 11,025 $ 15,204 $ 16,763 Construction Equipment 2,542 3,346 3,258 Commercial Vehicles 9,542 10,888 11,278 Powertrain 3,560 4,464 4,412 Eliminations and other (1,992 ) (2,704 ) (3,050 ) Net sales of Industrial Activities 24,677 31,198 32,661 Financial Services 1,603 1,828 1,679 Eliminations and other (368 ) (471 ) (504 ) Total Revenues $ 25,912 $ 32,555 $ 33,836 Depreciation and Amortization (*): Agricultural Equipment $ 303 $ 288 $ 269 Construction Equipment 70 85 77 Commercial Vehicles 198 209 185 Powertrain 123 144 159 Other activities and adjustments — (1 ) (4 ) Depreciation and amortization of Industrial Activities 694 725 686 Financial Services 5 6 4 Depreciation and amortization $ 699 $ 731 $ 690 Expenditures for long-lived assets (*): Agricultural Equipment $ 308 $ 408 $ 542 Construction Equipment 47 65 72 Commercial Vehicles 182 391 458 Powertrain 112 136 148 Other activities 4 5 — Expenditures for long-lived assets of Industrial Activities 653 1,005 1,220 Financial Services 3 17 7 Expenditures for long-lived assets $ 656 $ 1,022 $ 1,227 * Excluding assets sold with buy-back commitments and equipment on operating leases |
Schedule Of Revenue By Geographical Area | The following highlights revenues earned from external customers in the rest of the world by destination: 2015 2014 2013 (in million) United States $ 5,533 $ 7,472 $ 7,687 France 2,580 2,913 3,030 Italy 2,524 2,854 2,688 Brazil 1,670 3,708 4,750 Germany 1,565 1,845 1,677 Canada 1,229 1,606 1,687 Australia 846 926 1,015 Spain 810 807 666 Argentina 768 570 937 Poland 479 562 504 Other 6,900 8,238 8,202 Total Revenues from external customers in the rest of world $ 24,904 $ 31,501 $ 32,843 |
Schedule Of Long-lived Assets By Geographical Area | The following highlights long-lived tangible and intangible assets by geographic in the rest of the world: At December 31, 2015 2014 ($ million) United States $ 5,202 $ 4,913 Italy 1,580 1,965 France 794 810 Spain 579 546 Germany 849 816 Brazil 371 490 Canada 441 482 China 313 292 Other 1,191 1,159 Total Long-lived assets in the rest of the world $ 11,320 $ 11,473 |
Operating Segments [Member] | |
Schedule of Profit by Reportable Segment | The following summarizes operating profit by reportable segment: Years Ended December 31, 2015 2014 2013 (in millions) Agricultural Equipment $ 952 $ 1,770 $ 2,008 Construction Equipment 90 79 (97 ) Commercial Vehicles 283 29 74 Powertrain 186 223 187 Eliminations and other (79 ) (113 ) (77 ) Total Operating profit of Industrial Activities $ 1,432 $ 1,988 $ 2,095 Financial Services 515 554 514 Eliminations and other (312 ) (343 ) (332 ) Operating profit $ 1,635 $ 2,199 $ 2,277 |
Related Party Information (Tabl
Related Party Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | These transactions with FCA are reflected on our consolidated statements of operations as follows: 2015 2014 2013 (in millions) Net sales $ 762 $ 943 $ 904 Cost of goods sold $ 463 $ 551 $ 631 Selling, general and administrative expenses $ 161 $ 234 $ 275 12/31/2015 12/31/2014 (in millions) Trade receivables $ 14 $ 27 Trade payables $ 136 $ 139 EXOR S.p.A. is a major investment holding company in Europe. Among other things, EXOR S.p.A. manages a portfolio that includes investments in FCA. On September 1, 2015, EXOR S.p.A. closed the sale of its interest in Cushman & Wakefield to DTZ. During the year ended December 31, 2015 and 2014, CNH Industrial purchased real estate services from Cushman & Wakefield. The related transaction amounts were insignificant during 2015 and 2014. 2015 2014 2013 (in millions) Net sales $ 700 $ 843 $ 718 Cost of goods sold $ 430 $ 564 $ 505 12/31/2015 12/31/2014 (in millions) Trade receivables $ 72 $ 155 Trade payables $ 156 $ 144 |
Supplemental Information (Table
Supplemental Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Supplemental Information of Income Statement | Statement of Operations Industrial Activities Financial Services 2015 2014 2013 2015 2014 2013 (in millions, except share data) Revenues Net sales $ 24,677 $ 31,198 $ 32,661 $ — $ — $ — Finance and interest income 201 258 271 1,603 1,828 1,679 Total Revenues $ 24,878 $ 31,456 $ 32,932 $ 1,603 $ 1,828 $ 1,679 Costs and Expenses Cost of goods sold $ 20,357 $ 25,536 $ 26,580 $ — $ — $ — Selling, general & administrative expenses 2,032 2,568 2,764 285 357 330 Research and development expenses 856 1,106 1,222 — — — Restructuring expenses 82 184 71 2 — — Interest expense 678 857 799 576 705 658 Interest compensation to Financial Services 314 357 352 — — — Other, net 497 290 251 235 235 210 Total Costs and Expenses 24,816 30,898 32,039 1,098 1,297 1,198 Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates 62 558 893 505 531 481 Income taxes 202 280 518 158 187 153 Equity income of unconsolidated subsidiaries and affiliates 20 68 110 21 18 15 Results from intersegment investments 368 362 343 — 2 (1 ) Net income $ 248 $ 708 $ 828 $ 368 $ 364 $ 342 |
Supplemental Information of Balance Sheet | Balance Sheets Industrial Activities Financial Services 2015 2014 2015 2014 (in millions, except share data) ASSETS Cash and cash equivalents $ 4,551 $ 4,122 $ 833 $ 1,041 Restricted cash 15 1 912 977 Trade receivables 555 1,025 52 92 Financing receivables 2,162 4,767 19,974 22,717 Inventories, net 5,513 6,845 177 163 Property, plant and equipment, net 6,479 6,862 2 3 Investments in unconsolidated subsidiaries and affiliates 2,846 3,063 136 136 Equipment under operating leases 10 20 1,825 1,498 Goodwill 2,295 2,324 152 160 Other intangible assets, net 793 828 17 22 Deferred tax assets 1,087 1,508 163 239 Derivative assets 205 198 6 9 Other assets 1,303 1,502 527 781 TOTAL ASSETS $ 27,814 $ 33,065 $ 24,776 $ 27,838 LIABILITIES AND EQUITY Debt $ 8,304 $ 11,520 $ 21,219 $ 24,086 Trade payables 5,176 5,850 197 197 Deferred tax liabilities 60 202 274 250 Pension, postretirement and other postemployment benefits 2,263 2,594 19 20 Derivative liability 62 221 7 16 Other liabilities 7,088 7,701 605 675 TOTAL LIABILITIES $ 22,953 $ 28,088 $ 22,321 $ 25,244 Equity 4,843 4,961 2,455 2,594 Redeemable noncontrolling interest 18 16 — — TOTAL EQUITY AND LIABILITIES $ 27,814 $ 33,065 $ 24,776 $ 27,838 |
Supplemental Information of Cash Flow | Cash Flow Statements Industrial Activities Financial Services 2015 2014 2013 2015 2014 2013 (in millions) Operating activities: Net income $ 248 $ 708 $ 828 $ 368 $ 364 $ 342 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization expense, net of assets under operating lease and assets sold under buy-back commitments 694 725 686 5 6 4 Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments 238 257 286 209 152 127 Loss (gain) from disposal of assets (2 ) (1 ) 25 — 9 — Undistributed income of unconsolidated subsidiaries (104 ) (181 ) (108 ) (17 ) (20 ) (8 ) Other non-cash items 213 101 72 118 153 124 Changes in operating assets and liabilities: Provisions (61 ) 110 104 13 11 3 Deferred income taxes 59 (110 ) (62 ) 60 71 3 Trade and financing receivables related to sales, net 354 285 306 (50 ) (1,101 ) (943 ) Inventories, net 507 (187 ) (1,225 ) (34 ) 15 20 Trade payables (162 ) (790 ) 903 4 (66 ) 39 Other assets and liabilities 114 (104 ) 395 214 434 (129 ) Net cash provided (used) by operating activities 2,098 813 2,210 890 28 (418 ) Investing activities: Additions to retail receivables — — — (4,498 ) (6,467 ) (7,511 ) Collections of retail receivables — — — 5,146 6,506 6,043 Proceeds from sale of assets, net of assets sold under operating leases and assets sold under buy-back commitments 11 25 7 — — — Proceeds from sale of assets under operating leases and assets sold under buy-back commitments 320 319 194 406 258 272 Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and sold under buy-back commitments (653 ) (1,005 ) (1,220 ) (3 ) (17 ) (7 ) Expenditures for assets under operating lease and assets sold under buy-back commitments (875 ) (797 ) (805 ) (976 ) (1,017 ) (634 ) Other 2,164 498 525 (2,016 ) (275 ) (663 ) Net cash provided (used) by investing activities 967 (960 ) (1,299 ) (1,941 ) (1,012 ) (2,500 ) Financing activities: Proceeds from long-term debt 650 3,356 1,339 9,277 14,021 11,125 Payments of long-term debt (2,483 ) (2,145 ) (2,049 ) (8,185 ) (13,178 ) (7,939 ) Net increase (decrease) in other financial liabilities 36 (198 ) 265 48 (127 ) 249 Dividends paid (297 ) (382 ) (368 ) (207 ) (160 ) (270 ) Other 23 18 (6 ) 43 13 11 Net cash provided (used) by financing activities (2,071 ) 649 (819 ) 976 569 3,176 Effect of foreign exchange rate changes on cash and cash equivalents (565 ) (390 ) 28 (133 ) (101 ) (10 ) Increase (decrease) in cash and cash equivalents 429 112 120 (208 ) (516 ) 248 Cash and cash equivalents, beginning of year 4,122 4,010 3,890 1,041 1,557 1,309 Cash and cash equivalents, end of year $ 4,551 $ 4,122 $ 4,010 $ 833 $ 1,041 $ 1,557 |
Supplemental Condensed Consol52
Supplemental Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Statements of Operations | The following condensed financial statements present CNH Industrial, Case New Holland Industrial Inc., the Guarantor Subsidiaries, and all other subsidiaries as of December 31, 2015, and 2014, and for the years ended December 31, 2015, 2014, and 2013. Condensed Statements of Operations For the Year Ended December 31, 2015 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Total Revenues $ 1,541 $ 9 $ 10,860 $ 19,509 $ (6,007 ) $ 25,912 Cost and Expenses: Cost of goods sold 1,283 — 9,039 15,339 (5,304 ) 20,357 Selling, general and administrative expenses 133 — 495 1,689 — 2,317 Research and development expenses 11 — 281 564 — 856 Restructuring expenses 2 — 16 66 — 84 Interest expense 130 246 162 1,076 (508 ) 1,106 Interest compensation to Financial Services 11 — 184 — (195 ) — Other, net 36 (2 ) 199 392 — 625 1,606 244 10,376 19,126 (6,007 ) 25,345 Income (loss) before income taxes and equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method (65 ) (235 ) 484 383 — 567 Income taxes 13 (85 ) 114 318 — 360 Equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method 331 425 264 62 (1,041 ) 41 Net income 253 275 634 127 (1,041 ) 248 Net loss attributable to noncontrolling interests — — — (5 ) — (5 ) Net income attributable to owners of the parent $ 253 $ 275 $ 634 $ 132 $ (1,041 ) $ 253 Condensed Statements of Operations For the Year Ended December 31, 2014 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Total revenues $ 2,034 $ 10 $ 12,898 $ 24,283 $ (6,670 ) $ 32,555 Cost and Expenses: Cost of goods sold 1,750 — 10,269 19,422 (5,907 ) 25,534 Selling, general and administrative expenses 136 — 652 2,137 — 2,925 Research and development expenses 13 — 388 705 — 1,106 Restructuring expenses 3 — 29 152 — 184 Interest expense 210 234 140 1,284 (550 ) 1,318 Interest compensation to Financial Services 12 — 201 — (213 ) — Other, net 15 (4 ) 185 203 — 399 2,139 230 11,864 23,903 (6,670 ) 31,466 Income (loss) before income taxes and equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method (105 ) (220 ) 1,034 380 — 1,089 Income taxes (101 ) (71 ) 268 371 — 467 Equity in income (loss) of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method 714 918 364 (32 ) (1,878 ) 86 Net income (loss) 710 769 1,130 (23 ) (1,878 ) 708 Net loss attributable to noncontrolling interests — — — (2 ) — (2 ) Net income (loss) attributable to owners of the parent $ 710 $ 769 $ 1,130 $ (21 ) $ (1,878 ) $ 710 Condensed Statements of Operations For the Year Ended December 31, 2013 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Total Revenues $ 1,940 $ 10 $ 13,831 $ 25,516 $ (7,461 ) $ 33,836 Cost and Expenses: Cost of goods sold 1,633 — 11,016 20,655 (6,753 ) 26,551 Selling, general and administrative expenses 136 2 706 2,250 — 3,094 Research and development expenses 12 — 439 771 — 1,222 Restructuring expenses — — 1 70 — 71 Interest expense 173 262 136 1,127 (502 ) 1,196 Interest compensation to Financial Services 12 — 194 — (206 ) — Other, net 487 1 (195 ) 35 — 328 2,453 265 12,297 24,908 (7,461 ) 32,462 Income (loss) before income taxes and equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method (513 ) (255 ) 1,534 608 — 1,374 Income taxes 56 (95 ) 357 353 — 671 Equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method 1,246 1,056 354 522 (3,053 ) 125 Net income 677 896 1,531 777 (3,053 ) 828 Net income attributable to noncontrolling interests — — — 151 — 151 Net income attributable to owners of the parent $ 677 $ 896 $ 1,531 $ 626 $ (3,053 ) $ 677 |
Condensed Statements of Comprehensive Income | Condensed Statements of Comprehensive Income For the Year Ended December 31, 2015 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Comprehensive income (loss) $ 126 $ 190 $ 398 $ (653 ) $ 59 $ 120 Comprehensive loss attributable to noncontrolling interests — — — (7 ) — (7 ) Comprehensive income (loss) attributable to parent $ 126 $ 190 $ 398 $ (646 ) $ 59 $ 127 Condensed Statements of Comprehensive Income For the Year Ended December 31, 2014 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Comprehensive income (loss) $ 347 $ 769 $ 454 $ (794 ) $ (435 ) $ 341 Comprehensive loss attributable to noncontrolling interests — — — (6 ) — (6 ) Comprehensive income (loss) attributable to parent $ 347 $ 769 $ 454 $ (788 ) $ (435 ) $ 347 Condensed Statements of Comprehensive Income For the Year Ended December 31, 2013 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Comprehensive income $ 343 $ 896 $ 1,764 $ 473 $ (3,001 ) $ 475 Comprehensive income attributable to noncontrolling interests — — — 132 — 132 Comprehensive income attributable to parent $ 343 $ 896 $ 1,764 $ 341 $ (3,001 ) $ 343 |
Condensed Balance Sheets | Condensed Balance Sheets As of December 31, 2015 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Assets: Cash and cash equivalents $ 3 $ — $ 144 $ 5,237 $ — $ 5,384 Deposits in subsidiaries’ cash management pools 116 — 4,753 — (4,869 ) — Receivables 584 986 4,970 27,401 (14,360 ) 19,581 Inventories, net 138 — 1,364 4,188 — 5,690 Property, plant and equipment, net 80 — 1,108 5,293 — 6,481 Equipment on operating leases — — — 1,835 — 1,835 Investments in unconsolidated subsidiaries and affiliates 250 — — 277 — 527 Investments in consolidated subsidiaries 9,166 7,191 1,607 794 (18,758 ) — Goodwill and intangibles 12 — 2,786 459 — 3,257 Other 176 108 1,292 2,619 (204 ) 3,991 Total Assets $ 10,525 $ 8,285 $ 18,024 $ 48,103 $ (38,191 ) $ 46,746 Liabilities and Equity: Debt $ 5,045 $ 5,194 $ 3,302 $ 30,067 $ (17,220 ) $ 26,388 Trade payables 221 112 2,083 4,954 (2,028 ) 5,342 Other liabilities 457 (82 ) 3,365 6,618 (185 ) 10,173 Total Equity 4,802 3,061 9,274 6,464 (18,758 ) 4,843 Total Equity and Liabilities $ 10,525 $ 8,285 $ 18,024 $ 48,103 $ (38,191 ) $ 46,746 Condensed Balance Sheets As of December 31, 2014 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Assets: Cash and cash equivalents $ 7 $ — $ 39 $ 5,117 $ — $ 5,163 Deposits in subsidiaries’ cash management pools 230 — 4,135 — (4,365 ) — Receivables 658 1,034 5,479 33,393 (18,038 ) 22,526 Inventories, net 233 — 1,711 5,064 — 7,008 Property, plant and equipment, net 75 — 1,186 5,604 — 6,865 Equipment on operating leases — — — 1,518 — 1,518 Investments in unconsolidated subsidiaries and affiliates 245 — 1 359 — 605 Investments in consolidated subsidiaries 10,877 6,965 2,110 1,530 (21,482 ) — Goodwill and intangibles 50 — 2,824 460 — 3,334 Other 258 (55 ) 696 5,164 (1,169 ) 4,894 Total Assets $ 12,633 $ 7,944 $ 18,181 $ 58,209 $ (45,054 ) $ 51,913 Liabilities and Equity: Debt $ 5,622 $ 5,011 $ 3,275 $ 34,947 $ (19,261 ) $ 29,594 Trade payables 307 18 2,257 6,145 (2,745 ) 5,982 Other liabilities 1,782 (69 ) 3,272 7,957 (1,566 ) 11,376 Total Equity 4,922 2,984 9,377 9,160 (21,482 ) 4,961 Total Equity and Liabilities $ 12,633 $ 7,944 $ 18,181 $ 58,209 $ (45,054 ) $ 51,913 |
Condensed Statements of Cash Flow | Condensed Statements of Cash Flow For the Year Ended December 31, 2015 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Operating Activities: Net income $ 253 $ 275 $ 634 $ 127 $ (1,041 ) $ 248 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 10 — 207 929 — 1,146 Other, net 52 (494 ) (284 ) 1,586 528 1,388 Net cash provided (used) by operating activities 315 (219 ) 557 2,642 (513 ) 2,782 Investing activities: Expenditures for property, plant and equipment, equipment on operating lease, equipment sold under a buy-back commitment and intangible assets (25 ) — (145 ) (2,337 ) — (2,507 ) Net collections from retail receivables and related securitizations — — — 648 — 648 (Deposits in) withdrawals from subsidiaries’ cash management pools 92 — (715 ) — 623 — Other, net (114 ) 288 1,025 676 (948 ) 927 Net cash provided (used) by investing activities (47 ) 288 165 (1,013 ) (325 ) (932 ) Financing Activities: Net increase (decrease) in indebtedness — (7 ) 11 (661 ) — (657 ) Dividends paid (291 ) (1 ) (187 ) (329 ) 511 (297 ) Other, net 26 (61 ) (437 ) 168 327 23 Net cash used by financing activities (265 ) (69 ) (613 ) (822 ) 838 (931 ) Effect of foreign exchange rate changes on cash and cash equivalents (7 ) — (4 ) (687 ) — (698 ) Increase (decrease) in cash and cash equivalents (4 ) — 105 120 — 221 Cash and cash equivalents, beginning of year 7 — 39 5,117 — 5,163 Cash and cash equivalents, end of year $ 3 $ — $ 144 $ 5,237 $ — $ 5,384 Condensed Statements of Cash Flow For the Year Ended December 31, 2014 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Operating Activities: Net income (loss) $ 710 $ 769 $ 1,130 $ (23 ) $ (1,878 ) $ 708 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 14 — 212 914 — 1,140 Other, net (429 ) (735 ) (574 ) (1,078 ) 1,649 (1,167 ) Net cash provided (used) by operating activities 295 34 768 (187 ) (229 ) 681 Investing activities: Expenditures for property, plant and equipment, equipment on operating lease, equipment sold under a buy-back commitment and intangible assets (26 ) — (163 ) (2,647 ) — (2,836 ) Net collections from retail receivables and related securitizations — — — 39 — 39 (Deposits in) withdrawals from subsidiaries’ cash management pools — — (757 ) — 757 — Other, net 294 — (121 ) (251 ) 916 838 Net cash provided (used) by investing activities 268 — (1,041 ) (2,859 ) 1,673 (1,959 ) Financing Activities: Net increase (decrease) in indebtedness (205 ) 208 (339 ) 3,028 (963 ) 1,729 Dividends paid (360 ) (249 ) (337 ) (1,386 ) 1,950 (382 ) Other, net 18 7 977 1,447 (2,431 ) 18 Net cash provided (used) by financing activities (547 ) (34 ) 301 3,089 (1,444 ) 1,365 Effect of foreign exchange rate changes on cash and cash equivalents (14 ) — (27 ) (450 ) — (491 ) Increase (decrease) in cash and cash equivalents 2 — 1 (407 ) — (404 ) Cash and cash equivalents, beginning of year 5 — 38 5,524 — 5,567 Cash and cash equivalents, end of year $ 7 $ — $ 39 $ 5,117 $ — $ 5,163 Condensed Statements of Cash Flow For the Year Ended December 31, 2013 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Operating Activities: Net income $ 677 $ 896 $ 1,531 $ 777 $ (3,053 ) $ 828 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 10 — 180 913 — 1,103 Other, net (392 ) (1,154 ) 696 (1,276 ) 1,717 (409 ) Net cash provided (used) by operating activities 295 (258 ) 2,407 414 (1,336 ) 1,522 Investing activities: Expenditures for property, plant and equipment, equipment on operating lease, equipment sold under a buy-back commitment and intangible assets (10 ) — (225 ) (2,431 ) — (2,666 ) Net additions from retail receivables and related securitizations — — — (1,468 ) — (1,468 ) (Deposits in) withdrawals from subsidiaries’ cash management pools (3 ) — (770 ) — 773 — Other, net (1,929 ) — (502 ) 785 1,992 346 Net cash used by investing activities (1,942 ) — (1,497 ) (3,114 ) 2,765 (3,788 ) Financing Activities: Net increase (decrease) in indebtedness 1,602 58 (310 ) 1,722 (82 ) 2,990 Dividends paid (365 ) — (589 ) (1,384 ) 1,970 (368 ) Other, net 306 — — 3,005 (3,317 ) (6 ) Net cash provided (used) by financing activities 1,543 58 (899 ) 3,343 (1,429 ) 2,616 Effect of foreign exchange rate changes on cash and cash equivalents — — (1 ) 19 — 18 Increase (decrease) in cash and cash equivalents (104 ) (200 ) 10 662 — 368 Cash and cash equivalents, beginning of year 109 200 28 4,862 — 5,199 Cash and cash equivalents, end of year $ 5 $ — $ 38 $ 5,524 $ — $ 5,567 |
Nature of Operations - Addition
Nature of Operations - Additional Information (Detail) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013€ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2015€ / shares | Dec. 31, 2014€ / shares | Jan. 01, 2011 | |
Nature Of Operations [Line Items] | |||||
Nominal value per share | € 0.01 | € 0.01 | € 0.01 | ||
Noncontrolling interests reclassified to equity attributable to parent | $ | $ 1,053 | ||||
CNH Global N.V. [Member] | |||||
Nature Of Operations [Line Items] | |||||
Share exchange ratio with new entity | 3.828 | ||||
Nominal value per share | € 2.25 | ||||
Fiat Industrial [Member] | |||||
Nature Of Operations [Line Items] | |||||
Ownership percentage by parent | 87.00% | 89.00% | |||
Share exchange ratio with new entity | 1 | ||||
Nominal value per share | € 1.57 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - Additional Information (Detail) | Nov. 26, 2014USD ($) | Sep. 30, 2015USD ($)VEF / $ | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)VEF / $ | Sep. 30, 2015USD ($)VEF / $ | Dec. 31, 2015USD ($)InstallmentVEF / $ | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jun. 30, 2015VEF / $ |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||
Goodwill | $ 8,000,000 | ||||||||
Maximum Period of Payment terms for which sales to dealers do not qualify for an "interest free" period | 30 days | ||||||||
Delinquent period in which recognition of income on loans is suspended | 120 days | ||||||||
Minimum period of delinquency reported on receivables past due date | 30 days | ||||||||
Advertising expense | $ 155,000,000 | 218,000,000 | $ 241,000,000 | ||||||
Foreign currency transaction net loss | 581,000,000 | 340,000,000 | 68,000,000 | ||||||
Net loss realized on foreign currency | 289,000,000 | 132,000,000 | 40,000,000 | ||||||
Impairment of non-monetary assets | $ 0 | ||||||||
Bonds subscribed | $ 50,000,000 | $ 50,000,000 | |||||||
Bonds yield interest rate | 6.00% | 6.00% | |||||||
Number of installments for repayments of bond yield | Installment | 8 | ||||||||
CNH paid interest | $ 945,000,000 | 944,000,000 | 1,013,000,000 | ||||||
CNH paid taxes | 345,000,000 | 744,000,000 | $ 521,000,000 | ||||||
Gain Loss at the time of securitization | 0 | ||||||||
Impairment of goodwill and other intangible assets | $ 0 | 0 | |||||||
Maximum [Member] | |||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||
Weighted Average Life | 25 years | ||||||||
Minimum [Member] | |||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||
Weighted Average Life | 5 years | ||||||||
Venezuelan Subsidiary [Member] | Maximum [Member] | |||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||
Results of operations for remainder of fiscal year percentage | 1.00% | ||||||||
Venezuelan Bolivar Fuerte [Member] | |||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||
Foreign currency transaction net loss | $ 150,000,000 | $ 71,000,000 | |||||||
ARGENTINA | |||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||
Foreign currency transaction net loss | 40,000,000 | ||||||||
Venezuelan Bolivar Fuerte [Member] | |||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||
Exchange rate adjustment pre- and after tax re-measurement charge | $ 150,000,000 | $ 64,000,000 | 150,000,000 | ||||||
Exchange rate adjustment after-tax re-measurement charge | $ 150,000,000 | $ 150,000,000 | |||||||
Venezuelan Bolivar Fuerte [Member] | Venezuelan Subsidiary [Member] | |||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||
Bolivar fuerte re-measurement exchange rate | VEF / $ | 199.42 | 199.42 | |||||||
Future de-consolidate operations charge before tax | 130,000,000 | ||||||||
Future de-consolidate operations charge after tax | $ 130,000,000 | ||||||||
Future control over operation, Description | If, in the future, it concludes that it no longer maintains control over its operations in Venezuela, CNH Industrial may need to de-consolidate its operations in Venezuela, which would result in a pre- and after-tax charge of approximately $130 million using the December 31, 2015 rate of 198.70 Bs.F. per U.S. dollar. | ||||||||
Venezuelan Bolivar Fuerte [Member] | Venezuelan Subsidiary [Member] | SICAD Exchange Rate [Member] | |||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||
Bolivar fuerte re-measurement exchange rate | VEF / $ | 12.8 | ||||||||
Venezuelan Bolivar Fuerte [Member] | Venezuelan Subsidiary [Member] | CENCOEX Exchange Rate [Member] | |||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||
Bolivar fuerte re-measurement exchange rate | VEF / $ | 6.3 | 6.3 | |||||||
Venezuelan Bolivar Fuerte [Member] | Venezuelan Subsidiary [Member] | SICAD Exchange Rate [Member] | |||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||
Bolivar fuerte re-measurement exchange rate | VEF / $ | 13.5 | 13.5 | |||||||
Venezuelan Bolivar Fuerte [Member] | Venezuelan Subsidiary [Member] | SIMADI Exchange Rate [Member] | |||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||
Bolivar fuerte re-measurement exchange rate | VEF / $ | 198.70 | 198.70 | |||||||
Dealer Networks [Member] | |||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||
Weighted Average Life | 15 years | ||||||||
Miller-St. Nazianz,Inc. [Member] | |||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||
Total cash consideration paid on acquisition | $ 106,000,000 | ||||||||
Accounts receivable | 12,000,000 | ||||||||
Inventory | 18,000,000 | ||||||||
Property, plant and equipment | 16,000,000 | ||||||||
Goodwill | 8,000,000 | ||||||||
Other intangible assets | 62,000,000 | ||||||||
Assumed liabilities | 10,000,000 | ||||||||
Goodwill deduction for tax purpose | $ 8,000,000 | ||||||||
Miller-St. Nazianz,Inc. [Member] | Dealer Networks [Member] | |||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||
Useful life of intangible assets acquired | 20 years | ||||||||
Miller-St. Nazianz,Inc. [Member] | Trademarks [Member] | |||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||
Useful life of intangible assets acquired | 3 years | ||||||||
Miller-St. Nazianz,Inc. [Member] | Order Backlog[Member] | |||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||
Useful life of intangible assets acquired | 1 year | ||||||||
Miller-St. Nazianz,Inc. [Member] | Patent Portfolio[Member] | |||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||
Useful life of intangible assets acquired | 10 years | ||||||||
Miller-St. Nazianz,Inc. [Member] | Developed Technology[Member] | |||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||
Useful life of intangible assets acquired | 10 years |
Summary of Significant Accoun55
Summary of Significant Accounting Policies - Estimated Useful Lives of Respective Assets (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Buildings and improvements [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 10 years |
Buildings and improvements [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 40 years |
Plant, machinery and equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Plant, machinery and equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 25 years |
Other equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Other equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 10 years |
Receivables - Additional Inform
Receivables - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)Contract | Dec. 31, 2014USD ($)Contract | Dec. 31, 2013USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade receivables | $ 580 | $ 1,054 | |
Allowances for doubtful accounts | $ 174 | 207 | |
Wholesale receivables interest free period | 12 months | ||
Wholesale receivables stated original maturities | 24 months | ||
Significant losses | $ 0 | 0 | $ 0 |
Contractual payments period | 30 days | ||
Receivables delinquency period | 120 days | ||
VAT receivables included in other assets | $ 116 | ||
NAFTA [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance lease receivable, contracts | Contract | 601 | 660 | |
Finance lease receivable, pre-modification value | $ 22 | $ 17 | |
Finance lease receivable, post-modification value | $ 21 | $ 16 | |
Concession cases by court | Contract | 283 | 411 | |
Pre-modification value of retail and finance lease receivable contracts | $ 5 | $ 7 | |
Post-modification value of retail and finance lease receivable contracts | 4 | 6 | |
EMEA [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retail and finance lease receivable contracts that are classified as trouble debt restructuring | 77 | 108 | |
LATAM [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retail and finance lease receivable contracts that are classified as trouble debt restructuring | $ 25 | $ 53 | |
Minimum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance leases, term | 2 years | ||
Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance leases, term | 6 years |
Receivables - Summary of Accoun
Receivables - Summary of Accounts and Notes Receivables (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, net | $ 19,001 | $ 21,472 | $ 21,976 |
Retail [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, net | 10,344 | 11,978 | 12,730 |
Wholesale [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, net | 8,611 | 9,400 | 9,111 |
Other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, net | $ 46 | $ 94 | $ 135 |
Receivables - Maturities of Fin
Receivables - Maturities of Financing Receivables (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Receivables [Abstract] | |||
2,016 | $ 11,475 | ||
2,017 | 2,895 | ||
2,018 | 2,209 | ||
2,019 | 1,377 | ||
2,020 | 781 | ||
2021 and thereafter | 264 | ||
Total | $ 19,001 | $ 21,472 | $ 21,976 |
Receivables - Summary of Aging
Receivables - Summary of Aging of Receivables (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | $ 19,001 | $ 21,472 | $ 21,976 |
Retail [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 27 | 62 | |
Current | 10,236 | 11,811 | |
Total | 10,344 | 11,978 | 12,730 |
Retail [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 10,263 | 11,873 | |
Retail [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 81 | 105 | |
Retail [Member] | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 24 | 50 | |
Retail [Member] | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3 | 10 | |
Retail [Member] | Greater Than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2 | ||
Retail [Member] | NAFTA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 17 | 33 | |
Current | 7,869 | 8,596 | |
Total | 7,922 | 8,639 | |
Retail [Member] | NAFTA [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 7,886 | 8,629 | |
Retail [Member] | NAFTA [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 36 | 10 | |
Retail [Member] | NAFTA [Member] | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 17 | 31 | |
Retail [Member] | NAFTA [Member] | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2 | ||
Retail [Member] | EMEA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 22 | ||
Current | 572 | 881 | |
Total | 573 | 961 | |
Retail [Member] | EMEA [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 572 | 903 | |
Retail [Member] | EMEA [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 1 | 58 | |
Retail [Member] | EMEA [Member] | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 14 | ||
Retail [Member] | EMEA [Member] | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 8 | ||
Retail [Member] | LATAM [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 6 | 3 | |
Current | 1,286 | 1,762 | |
Total | 1,336 | 1,802 | |
Retail [Member] | LATAM [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 1,292 | 1,765 | |
Retail [Member] | LATAM [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 44 | 37 | |
Retail [Member] | LATAM [Member] | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 6 | 3 | |
Retail [Member] | APAC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4 | 4 | |
Current | 509 | 572 | |
Total | 513 | 576 | |
Retail [Member] | APAC [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 513 | 576 | |
Retail [Member] | APAC [Member] | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1 | 2 | |
Retail [Member] | APAC [Member] | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3 | ||
Retail [Member] | APAC [Member] | Greater Than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2 | ||
Wholesale [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 74 | 127 | |
Current | 8,382 | 9,186 | |
Total | 8,611 | 9,400 | $ 9,111 |
Wholesale [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 8,456 | 9,313 | |
Wholesale [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 155 | 87 | |
Wholesale [Member] | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 42 | 90 | |
Wholesale [Member] | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 6 | 7 | |
Wholesale [Member] | Greater Than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 26 | 30 | |
Wholesale [Member] | NAFTA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1 | ||
Current | 3,656 | 4,079 | |
Total | 3,735 | 4,132 | |
Wholesale [Member] | NAFTA [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 3,656 | 4,080 | |
Wholesale [Member] | NAFTA [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 79 | 52 | |
Wholesale [Member] | NAFTA [Member] | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1 | ||
Wholesale [Member] | EMEA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 35 | 76 | |
Current | 3,613 | 3,874 | |
Total | 3,674 | 3,956 | |
Wholesale [Member] | EMEA [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 3,648 | 3,950 | |
Wholesale [Member] | EMEA [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 26 | 6 | |
Wholesale [Member] | EMEA [Member] | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 33 | 72 | |
Wholesale [Member] | EMEA [Member] | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2 | 4 | |
Wholesale [Member] | LATAM [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3 | 1 | |
Current | 595 | 861 | |
Total | 602 | 862 | |
Wholesale [Member] | LATAM [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 598 | 862 | |
Wholesale [Member] | LATAM [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 4 | ||
Wholesale [Member] | LATAM [Member] | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3 | 1 | |
Wholesale [Member] | APAC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 36 | 49 | |
Current | 518 | 372 | |
Total | 600 | 450 | |
Wholesale [Member] | APAC [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 554 | 421 | |
Wholesale [Member] | APAC [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 46 | 29 | |
Wholesale [Member] | APAC [Member] | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 6 | 16 | |
Wholesale [Member] | APAC [Member] | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4 | 3 | |
Wholesale [Member] | APAC [Member] | Greater Than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 26 | $ 30 |
Receivables - Allowance for Cre
Receivables - Allowance for Credit Losses Activity (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Opening balance | $ 650 | $ 726 | $ 782 |
Provision | 108 | 159 | 63 |
Charge-offs, net of recoveries | (105) | (161) | (119) |
Foreign currency translation and other | (101) | (74) | |
Ending balance | 552 | 650 | 726 |
Ending balance: Individually evaluated for impairment | 312 | 348 | 393 |
Ending balance: Collectively evaluated for impairment | 240 | 302 | 333 |
Financing receivables, net | 19,001 | 21,472 | 21,976 |
Ending balance: Individually evaluated for impairment | 1,183 | 1,242 | 1,311 |
Ending balance: Collectively evaluated for impairment | 17,818 | 20,230 | 20,665 |
Retail [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Opening balance | 468 | 613 | 661 |
Provision | 81 | 86 | 62 |
Charge-offs, net of recoveries | (92) | (135) | (111) |
Foreign currency translation and other | (63) | (96) | 1 |
Ending balance | 394 | 468 | 613 |
Ending balance: Individually evaluated for impairment | 187 | 233 | 292 |
Ending balance: Collectively evaluated for impairment | 207 | 235 | 321 |
Financing receivables, net | 10,344 | 11,978 | 12,730 |
Ending balance: Individually evaluated for impairment | 416 | 484 | 569 |
Ending balance: Collectively evaluated for impairment | 9,928 | 11,494 | 12,161 |
Wholesale [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Opening balance | 182 | 112 | 120 |
Provision | 27 | 71 | 1 |
Charge-offs, net of recoveries | (13) | (24) | (8) |
Foreign currency translation and other | (38) | 23 | (1) |
Ending balance | 158 | 182 | 112 |
Ending balance: Individually evaluated for impairment | 125 | 115 | 101 |
Ending balance: Collectively evaluated for impairment | 33 | 67 | 11 |
Financing receivables, net | 8,611 | 9,400 | 9,111 |
Ending balance: Individually evaluated for impairment | 767 | 758 | 742 |
Ending balance: Collectively evaluated for impairment | 7,844 | 8,642 | 8,369 |
Other [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Opening balance | 1 | 1 | |
Provision | 2 | ||
Charge-offs, net of recoveries | (2) | ||
Foreign currency translation and other | (1) | ||
Ending balance | 1 | ||
Ending balance: Collectively evaluated for impairment | 1 | ||
Financing receivables, net | 46 | 94 | 135 |
Ending balance: Collectively evaluated for impairment | $ 46 | $ 94 | $ 135 |
Receivables - Investment in Imp
Receivables - Investment in Impaired Receivables (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Retail [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | $ 187 | $ 233 |
Recorded Investment, Total | 416 | 484 |
Unpaid Principal Balance, Total | 414 | 483 |
Average recorded investment, Total | 443 | 489 |
Retail [Member] | NAFTA [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance recorded, Recorded Investment | 41 | 24 |
With no related allowance recorded, Unpaid Principal Balance | 40 | 24 |
Related Allowance, Total | 18 | 13 |
With no related allowance recorded, Average recorded investment | 37 | 22 |
With an allowance recorded, Recorded Investment | 54 | 33 |
With an allowance recorded, Unpaid Principal Balance | 53 | 32 |
With an allowance recorded, Average recorded investment | 52 | 34 |
Retail [Member] | EMEA [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance recorded, Recorded Investment | 74 | 91 |
With no related allowance recorded, Unpaid Principal Balance | 74 | 91 |
Related Allowance, Total | 167 | 212 |
With no related allowance recorded, Average recorded investment | 79 | 95 |
With an allowance recorded, Recorded Investment | 238 | 311 |
With an allowance recorded, Unpaid Principal Balance | 238 | 311 |
With an allowance recorded, Average recorded investment | 263 | 312 |
Retail [Member] | APAC [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | 2 | 8 |
With an allowance recorded, Recorded Investment | 9 | 25 |
With an allowance recorded, Unpaid Principal Balance | 9 | 25 |
With an allowance recorded, Average recorded investment | 12 | 26 |
Wholesale [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | 125 | 115 |
Recorded Investment, Total | 767 | 758 |
Unpaid Principal Balance, Total | 763 | 753 |
Average recorded investment, Total | 824 | 864 |
Wholesale [Member] | NAFTA [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance recorded, Recorded Investment | 12 | |
With no related allowance recorded, Unpaid Principal Balance | 12 | |
Related Allowance, Total | 3 | 3 |
With no related allowance recorded, Average recorded investment | 21 | |
With an allowance recorded, Recorded Investment | 82 | 60 |
With an allowance recorded, Unpaid Principal Balance | 82 | 60 |
With an allowance recorded, Average recorded investment | 92 | 63 |
Wholesale [Member] | EMEA [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance recorded, Recorded Investment | 33 | 35 |
With no related allowance recorded, Unpaid Principal Balance | 33 | 35 |
Related Allowance, Total | 95 | 98 |
With no related allowance recorded, Average recorded investment | 35 | 39 |
With an allowance recorded, Recorded Investment | 607 | 608 |
With an allowance recorded, Unpaid Principal Balance | 607 | 608 |
With an allowance recorded, Average recorded investment | 657 | 708 |
Wholesale [Member] | LATAM [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | 7 | 8 |
With an allowance recorded, Recorded Investment | 25 | 25 |
With an allowance recorded, Unpaid Principal Balance | 21 | 20 |
With an allowance recorded, Average recorded investment | 22 | 20 |
Wholesale [Member] | APAC [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | 20 | 6 |
With an allowance recorded, Recorded Investment | 20 | 18 |
With an allowance recorded, Unpaid Principal Balance | 20 | 18 |
With an allowance recorded, Average recorded investment | $ 18 | $ 13 |
Receivable - Carrying Amount of
Receivable - Carrying Amount of Receivables (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Restricted Receivables | $ 13,884 | $ 14,723 |
Retail note and finance lease receivables [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Restricted Receivables | 7,695 | 8,718 |
Wholesale [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Restricted Receivables | $ 6,189 | $ 6,005 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,254 | $ 1,672 |
Work-in-process | 747 | 552 |
Finished goods | 3,689 | 4,784 |
Total inventories | $ 5,690 | $ 7,008 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | $ 14,678 | $ 15,494 |
Accumulated depreciation | (8,197) | (8,629) |
Net property, plant and equipment | 6,481 | 6,865 |
Land and industrial buildings [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | 3,056 | 3,306 |
Plant, machinery and equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | 7,857 | 8,357 |
Assets sold with buy-back commitment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | 2,775 | 2,750 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | 191 | 213 |
Other [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | $ 799 | $ 868 |
Property, Plant and Equipment65
Property, Plant and Equipment - Summary of Property, Plant and Equipment Recorded under Finance Leases (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Capital Leases Balance Sheet Assets By Major Class Net Lessee Balance Sheet [Abstract] | |||
Gross capital leases | [1],[2] | $ 139 | $ 148 |
Accumulated depreciation | (50) | (41) | |
Net capital leases | $ 89 | $ 107 | |
[1] | Consists of industrial buildings, plant, machinery and equipment | ||
[2] | Included in property, plant and equipment table above |
Property, Plant and Equipment66
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property Plant And Equipment [Line Items] | |||
Depreciation expense | $ 824 | $ 873 | $ 854 |
Acquisition of property, plant and equipment | 124 | 397 | |
Property, Plant and Equipment, Excluding Assets Sold Under a Buy-Back Commitment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Depreciation expense | 592 | 623 | 581 |
Assets sold with buy-back commitment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Impairment losses on assets sold with a buy-back commitment | $ 18 | $ 22 | $ 37 |
Investments in Unconsolidated67
Investments in Unconsolidated Subsidiaries and Affiliates - Summary of Investments in Unconsolidated Subsidiaries and Affiliates (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Investments In And Advances To Affiliates Schedule Of Investments [Abstract] | ||
Equity method | $ 519 | $ 593 |
Cost method | 8 | 12 |
Total | $ 527 | $ 605 |
Investments in Unconsolidated68
Investments in Unconsolidated Subsidiaries and Affiliates - Summary of Combined Results of Operations and Financial Position Reported By Investees Accounted Using Equity Method (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments In And Advances To Affiliates Schedule Of Investments [Abstract] | |||
Net revenue | $ 3,911 | $ 4,849 | $ 5,211 |
Income before taxes | 127 | 251 | 321 |
Net income | 68 | 194 | $ 289 |
Total Assets | 6,867 | 7,448 | |
Total Liabilities | 5,545 | 5,877 | |
Total Equity | $ 1,322 | $ 1,571 |
Investments in Unconsolidated69
Investments in Unconsolidated Subsidiaries and Affiliates - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 | |
Schedule Of Equity Method Investments [Line Items] | |||
Recognized loss on the sale of investment | $ (26) | $ (35) | |
Al Ghazi Tractors Ltd. [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 43.20% | ||
Turk Traktor re Ziraat Makineteri A.S. [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 37.50% | ||
New Holland HFT Japan Inc. [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
CNH de Mexico S.A. de C.V. [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
CNH Industrial Capital Europe S.A.S. [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
Naveco (Nanjing Iveco Motor Co.) Ltd [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
SAIC Iveco Commercial Vehicle Investment Company Limited [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
Transolver Finance Establecimiento Financiero de Credito S.A. [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
Kobelco Construction Machinery Co Ltd | |||
Schedule Of Equity Method Investments [Line Items] | |||
Ownership interest sold | 20.00% |
Equipment on Operating Leases -
Equipment on Operating Leases - Summary of Equipment on Operating Leases (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Property Subject To Or Available For Operating Lease Net [Abstract] | ||
Equipment on operating leases | $ 2,127 | $ 1,814 |
Accumulated depreciation | (292) | (296) |
Net equipment on operating leases | $ 1,835 | $ 1,518 |
Equipment on Operating Leases71
Equipment on Operating Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property Subject To Or Available For Operating Lease Net [Abstract] | |||
Depreciation expense on equipment on operating leases | $ 215 | $ 159 | $ 140 |
Equipment on Operating Leases72
Equipment on Operating Leases - Lease Payments Owed for Equipment Under Operating Leases (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Operating Leases Future Minimum Payments Receivable [Abstract] | |
2,016 | $ 187 |
2,017 | 112 |
2,018 | 46 |
2,019 | 14 |
2,020 | 29 |
Beyond 5 years | 1 |
Total | $ 389 |
Goodwill and Other Intangible73
Goodwill and Other Intangibles - Changes in the Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | ||
Balance at beginning | $ 2,484 | $ 2,504 |
Acquisition | 8 | |
Impact of foreign exchange | (37) | (28) |
Balance at ending | 2,447 | 2,484 |
Agricultural equipment [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 1,662 | 1,657 |
Acquisition | 8 | |
Impact of foreign exchange | (17) | (3) |
Balance at ending | 1,645 | 1,662 |
Construction Equipment [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 595 | 606 |
Impact of foreign exchange | (7) | (11) |
Balance at ending | 588 | 595 |
Commercial Vehicles Segment [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 61 | 71 |
Impact of foreign exchange | (4) | (10) |
Balance at ending | 57 | 61 |
Powertrain [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 5 | 6 |
Acquisition | 0 | |
Impact of foreign exchange | (1) | |
Balance at ending | 5 | 5 |
Financial Services Segment [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 161 | 164 |
Impact of foreign exchange | (9) | (3) |
Balance at ending | $ 152 | $ 161 |
Goodwill and Other Intangible74
Goodwill and Other Intangibles - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Line Items] | |||
Impairment of goodwill and other intangible assets | $ 0 | $ 0 | |
Percentage of goodwill used for impairment testing | 97.00% | ||
Amortization of Intangible Assets, Total | $ 107,000,000 | $ 108,000,000 | $ 109,000,000 |
Amortization expense in 2016 | 79,000,000 | ||
Amortization expense in 2017 | 75,000,000 | ||
Amortization expense in 2018 | 68,000,000 | ||
Amortization expense in 2019 | 57,000,000 | ||
Amortization expense in 2020 | $ 65,000,000 | ||
Agricultural equipment [Member] | |||
Goodwill [Line Items] | |||
Indefinite-lived intangible assets, excess of fair value over carrying value percentage | 17.00% | ||
Financial Services Segment [Member] | |||
Goodwill [Line Items] | |||
Indefinite-lived intangible assets, excess of fair value over carrying value percentage | 29.00% | ||
Agricultural Equipment Segment | |||
Goodwill [Line Items] | |||
Percentage of goodwill used for impairment testing | 67.00% | ||
Construction Equipment Segment [Member] | |||
Goodwill [Line Items] | |||
Percentage of goodwill used for impairment testing | 24.00% | ||
Indefinite-lived intangible assets, excess of fair value over carrying value percentage | 12.00% | ||
Percentage Points Increase in Discount Rate | 1.30% | ||
Financial Services Segment [Member] | |||
Goodwill [Line Items] | |||
Percentage of goodwill used for impairment testing | 6.00% |
Goodwill and Other Intangible75
Goodwill and Other Intangibles - Other Intangible Assets and Related Accumulated Amortization (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, Gross | $ 1,858 | $ 1,986 |
Other intangible assets subject to amortization, Accumulated Amortization | 1,330 | 1,412 |
Other intangible assets subject to amortization, Net | 528 | 574 |
Total other intangible assets, Gross | 2,140 | 2,262 |
Total other intangible assets, Net | $ 810 | 850 |
Minimum [Member] | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, Weighted Average Life | 5 years | |
Maximum [Member] | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, Weighted Average Life | 25 years | |
Trademarks [Member] | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets not subject to amortization | $ 282 | 276 |
Dealer Networks [Member] | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, Gross | 289 | 285 |
Other intangible assets subject to amortization, Accumulated Amortization | 143 | 131 |
Other intangible assets subject to amortization, Net | $ 146 | 154 |
Other intangible assets subject to amortization, Weighted Average Life | 15 years | |
Patents, concessions and licenses and other [Member] | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, Gross | $ 1,569 | 1,701 |
Other intangible assets subject to amortization, Accumulated Amortization | 1,187 | 1,281 |
Other intangible assets subject to amortization, Net | $ 382 | $ 420 |
Patents, concessions and licenses and other [Member] | Minimum [Member] | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, Weighted Average Life | 5 years | |
Patents, concessions and licenses and other [Member] | Maximum [Member] | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, Weighted Average Life | 25 years |
Debt - Additional Information (
Debt - Additional Information (Detail) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||||
Nov. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2014EUR (€) | Jun. 30, 2014USD ($) | Mar. 31, 2014EUR (€) | Oct. 31, 2013USD ($) | Apr. 30, 2013USD ($) | Oct. 31, 2012USD ($) | Nov. 30, 2011USD ($) | Mar. 31, 2011EUR (€) | Jun. 30, 2010USD ($) | Jan. 31, 1996USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Nov. 30, 2015EUR (€) | Dec. 31, 2014EUR (€) | |
Debt Instrument [Line Items] | ||||||||||||||||
Credit facility | $ | $ 3,000 | |||||||||||||||
Weighted-average interest rate on consolidated debt | 3.30% | 3.70% | 3.70% | |||||||||||||
5.250% CIFE Notes [Member] | Global Medium Term Note Programme [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument borrowing capacity amount | € 10,000 | |||||||||||||||
5.250% CIFE Notes [Member] | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) [Member] | Global Medium Term Note Programme [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Revolving credit facility, amount | € 1,000 | |||||||||||||||
Bonds, maturity year | 2,015 | |||||||||||||||
Bonds, interest rate | 5.25% | |||||||||||||||
6.250% CIFE Notes [Member] | Global Medium Term Note Programme [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument borrowing capacity amount | € 10,000 | |||||||||||||||
6.250% CIFE Notes [Member] | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) [Member] | Global Medium Term Note Programme [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Revolving credit facility, amount | € 1,200 | |||||||||||||||
Bonds, maturity year | 2,018 | |||||||||||||||
Bonds, interest rate | 6.25% | |||||||||||||||
6.250% CIFE Notes [Member] | CNH Industrial Capital LLC (formerly CNH Capital LLC) [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Revolving credit facility, amount | $ | $ 500 | |||||||||||||||
Bonds, maturity year | 2,016 | |||||||||||||||
Bonds, interest rate | 6.25% | |||||||||||||||
2.750% Notes [Member] | Global Medium Term Note Programme [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument borrowing capacity amount | € 10,000 | |||||||||||||||
2.750% Notes [Member] | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) [Member] | Global Medium Term Note Programme [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Revolving credit facility, amount | € 1,000 | |||||||||||||||
Bonds, maturity year | 2,019 | |||||||||||||||
Bonds, interest rate | 2.75% | |||||||||||||||
2.875% Senior Notes [Member] | Global Medium Term Note Programme [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument borrowing capacity amount | € 10,000 | |||||||||||||||
2.875% Senior Notes [Member] | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) [Member] | Global Medium Term Note Programme [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Revolving credit facility, amount | € 700 | |||||||||||||||
Bonds, maturity year | 2,021 | |||||||||||||||
Bonds, interest rate | 2.875% | |||||||||||||||
3.500% Senior Notes [Member] | Global Medium Term Note Programme [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument borrowing capacity amount | € 10 | |||||||||||||||
3.500% Senior Notes [Member] | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) [Member] | Global Medium Term Note Programme [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Revolving credit facility, amount | € 100 | |||||||||||||||
Bonds, maturity year | 2,025 | |||||||||||||||
Bonds, interest rate | 3.50% | 3.50% | ||||||||||||||
Seven Point Two Five Percent Senior Notes [Member] | Case Corp. (now CNH Industrial America LLC) [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Revolving credit facility, amount | $ | $ 254 | |||||||||||||||
Bonds, maturity year | 2,016 | |||||||||||||||
Bonds, interest rate | 7.25% | |||||||||||||||
Debt, redemption description | The 7.250% Senior Notes were redeemable in whole or in part at any time at the option of CNH Industrial America LLC at a price equal to the greater of (i) 100% of the principal amount of the notes being redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the date of redemption on a semi-annual basis at the Treasury Rate (as defined in the notes) plus 20 basis points. | |||||||||||||||
Seven Point Two Five Percent Senior Notes [Member] | Case Corp. (now CNH Industrial America LLC) [Member] | Minimum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt, redemption price as a percentage of principal amount | 100.00% | |||||||||||||||
7.875% Senior Notes [Member] | Case New Holland Industrial Inc. (formerly Case New Holland Inc.) [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Revolving credit facility, amount | $ | $ 1,500 | |||||||||||||||
Bonds, maturity year | 2,017 | |||||||||||||||
Bonds, interest rate | 7.875% | |||||||||||||||
Debt, redemption price as a percentage of principal amount | 100.00% | |||||||||||||||
3.875% Notes [Member] | CNH Industrial Capital LLC (formerly CNH Capital LLC) [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Revolving credit facility, amount | $ | $ 600 | $ 750 | ||||||||||||||
Bonds, maturity year | 2,018 | 2,015 | ||||||||||||||
Bonds, interest rate | 3.875% | 3.875% | ||||||||||||||
3.625% Notes [Member] | CNH Industrial Capital LLC (formerly CNH Capital LLC) [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Revolving credit facility, amount | $ | $ 600 | |||||||||||||||
Bonds, maturity year | 2,018 | |||||||||||||||
Bonds, interest rate | 3.625% | |||||||||||||||
3.250% Notes [Member] | CNH Industrial Capital LLC (formerly CNH Capital LLC) [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Revolving credit facility, amount | $ | $ 500 | |||||||||||||||
Bonds, maturity year | 2,017 | |||||||||||||||
Bonds, interest rate | 3.25% | |||||||||||||||
3.375% Notes [Member] | CNH Industrial Capital LLC (formerly CNH Capital LLC) [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Revolving credit facility, amount | $ | $ 500 | |||||||||||||||
Bonds, maturity year | 2,019 | |||||||||||||||
Bonds, interest rate | 3.375% | |||||||||||||||
4.375% Notes [Member] | CNH Industrial Capital LLC (formerly CNH Capital LLC) [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Revolving credit facility, amount | $ | $ 600 | |||||||||||||||
Bonds, maturity year | 2,020 | |||||||||||||||
Bonds, interest rate | 4.375% | 4.375% | ||||||||||||||
Revolving Credit Facility [Member] | New Credit Facility [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Credit facility, term | 5 years | |||||||||||||||
Revolving credit facility, amount | $ 2,100 | € 1,750 | ||||||||||||||
Debt instrument, EBITDA to interest ratio, minimum | 3 | 3 | ||||||||||||||
Revolving Credit Facility [Member] | Old Credit Facility [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Credit facility, term | 3 years | |||||||||||||||
Revolving credit facility, amount | € 2,000 | |||||||||||||||
Debt instrument, maturity date | Feb. 29, 2016 |
Debt - Summary of Debt, Includi
Debt - Summary of Debt, Including Drawings Under Credit Lines (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Debt | $ 26,388 | $ 29,594 | |
Matured in 2015, interest rate of 5.250% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 1,214 | |
Payable in 2018, interest rate of 6.250% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 1,306 | 1,457 |
Payable in 2019, interest rate of 2.750% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 1,089 | 1,214 |
Payable in 2021, interest rate of 2.875% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 762 | 850 |
Payable in 2025, interest rate of 3.500% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 109 | |
Payable in 2016, interest rate of 7.250% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 254 | 253 |
Payable in 2017, interest rate of 7.875% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 1,526 | 1,535 |
Payable in 2016, interest rate of 6.250% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 500 | 500 |
Matured in 2015, interest rate of 3.875% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 750 | |
Payable in 2018, interest rate of 3.625% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 600 | 598 |
Payable in 2017, interest rate of 3.250% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 500 | 500 |
Payable in 2019, interest rate of 3.375% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 500 | 500 |
Payable in 2018, interest rate of 3.875% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 600 | |
Payable in 2020, interest rate of 4.375% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 600 | |
Asset-backed debt [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 12,999 | 13,587 | |
Other debt [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 5,043 | 6,636 | |
Industrial Activities [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 8,304 | 11,520 | |
Industrial Activities [Member] | Intersegment Debt [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 1,046 | 1,341 | |
Industrial Activities [Member] | Matured in 2015, interest rate of 5.250% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 1,214 | |
Industrial Activities [Member] | Payable in 2018, interest rate of 6.250% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 1,306 | 1,457 |
Industrial Activities [Member] | Payable in 2019, interest rate of 2.750% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 1,089 | 1,214 |
Industrial Activities [Member] | Payable in 2021, interest rate of 2.875% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 762 | 850 |
Industrial Activities [Member] | Payable in 2025, interest rate of 3.500% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 109 | |
Industrial Activities [Member] | Payable in 2016, interest rate of 7.250% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 254 | 253 |
Industrial Activities [Member] | Payable in 2017, interest rate of 7.875% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 1,526 | 1,535 |
Industrial Activities [Member] | Asset-backed debt [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 13 | 26 | |
Industrial Activities [Member] | Other debt [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 2,199 | 3,630 | |
Financial services [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 21,219 | 24,086 | |
Financial services [Member] | Intersegment Debt [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 2,089 | 4,671 | |
Financial services [Member] | Payable in 2016, interest rate of 6.250% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 500 | 500 |
Financial services [Member] | Matured in 2015, interest rate of 3.875% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 750 | |
Financial services [Member] | Payable in 2018, interest rate of 3.625% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 600 | 598 |
Financial services [Member] | Payable in 2017, interest rate of 3.250% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 500 | 500 |
Financial services [Member] | Payable in 2019, interest rate of 3.375% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 500 | 500 |
Financial services [Member] | Payable in 2018, interest rate of 3.875% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 600 | |
Financial services [Member] | Payable in 2020, interest rate of 4.375% [Member] | |||
Debt Instrument [Line Items] | |||
Debt | [1] | 600 | |
Financial services [Member] | Asset-backed debt [Member] | |||
Debt Instrument [Line Items] | |||
Debt | 12,986 | 13,561 | |
Financial services [Member] | Other debt [Member] | |||
Debt Instrument [Line Items] | |||
Debt | $ 2,844 | $ 3,006 | |
[1] | Includes unamortized debt discounts/premiums and fair value hedge adjustments. |
Debt - Summary of Debt, Inclu78
Debt - Summary of Debt, Including Drawings Under Credit Lines (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Matured in 2015, interest rate of 5.250% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,015 |
Bonds, interest rate | 5.25% |
Payable in 2018, interest rate of 6.250% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,018 |
Bonds, interest rate | 6.25% |
Payable in 2019, interest rate of 2.750% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,019 |
Bonds, interest rate | 2.75% |
Payable in 2021, interest rate of 2.875% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,021 |
Bonds, interest rate | 2.875% |
Payable in 2025, interest rate of 3.500% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,025 |
Bonds, interest rate | 3.50% |
Payable in 2016, interest rate of 7.250% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,016 |
Bonds, interest rate | 7.25% |
Payable in 2017, interest rate of 7.875% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,017 |
Bonds, interest rate | 7.875% |
Payable in 2016, interest rate of 6.250% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,016 |
Bonds, interest rate | 6.25% |
Matured in 2015, interest rate of 3.875% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,015 |
Bonds, interest rate | 3.875% |
Payable in 2018, interest rate of 3.625% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,018 |
Bonds, interest rate | 3.625% |
Payable in 2017, interest rate of 3.250% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,017 |
Bonds, interest rate | 3.25% |
Payable in 2019, interest rate of 3.375% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,019 |
Bonds, interest rate | 3.375% |
Payable in 2018, interest rate of 3.875% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,018 |
Bonds, interest rate | 3.875% |
Payable in 2020, interest rate of 4.375% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,020 |
Bonds, interest rate | 4.375% |
Debt - Minimum Annual Repayment
Debt - Minimum Annual Repayments of Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
2,016 | $ 9,607 | |
2,017 | 5,891 | |
2,018 | 5,550 | |
2,019 | 3,267 | |
2,020 | 957 | |
2021 and thereafter | 1,116 | |
Total | 26,388 | $ 29,594 |
Industrial Activities [Member] | ||
Debt Instrument [Line Items] | ||
2,016 | 1,252 | |
2,017 | 1,892 | |
2,018 | 1,773 | |
2,019 | 1,318 | |
2,020 | 59 | |
2021 and thereafter | 964 | |
Total | 8,304 | 11,520 |
Industrial Activities [Member] | Intersegment Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total | 1,046 | 1,341 |
Financial services [Member] | ||
Debt Instrument [Line Items] | ||
2,016 | 8,355 | |
2,017 | 3,999 | |
2,018 | 3,777 | |
2,019 | 1,949 | |
2,020 | 898 | |
2021 and thereafter | 152 | |
Total | 21,219 | 24,086 |
Financial services [Member] | Intersegment Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 2,089 | $ 4,671 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Jan. 01, 2019 | Oct. 06, 2015 | Apr. 01, 2015 | Apr. 01, 2014 | Jul. 17, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Line Items] | ||||||||||||
Provision for income taxes | $ 360,000,000 | $ 467,000,000 | $ 671,000,000 | |||||||||
Statutory federal income tax rate | 20.00% | 21.00% | 20.00% | 22.00% | 23.00% | |||||||
Unrecognized tax benefits, that would affect effective tax rate, if recognized | $ 146,000,000 | $ 146,000,000 | ||||||||||
Decrease to tax contingencies expected over the next twelve months | 123,000,000 | 123,000,000 | ||||||||||
Increase to tax contingencies expected over the next twelve months | 43,000,000 | 43,000,000 | ||||||||||
Tax positions for which the ultimate deductibility is highly certain | 22,000,000 | 22,000,000 | ||||||||||
Interest and penalties recognized | 2,000,000 | $ (8,000,000) | $ (13,000,000) | |||||||||
Payment of interest and penalties accrued | 16,000,000 | $ 17,000,000 | $ 16,000,000 | $ 17,000,000 | $ 26,000,000 | |||||||
Discrete tax benefit related to research and development credit | 6,000,000 | |||||||||||
Reduction to corporate income tax rate | 4.00% | |||||||||||
Undistributed earnings in subsidiaries | 5,300,000,000 | $ 5,300,000,000 | ||||||||||
Deferred tax liability on total undistributed earnings | 78,000,000 | $ 78,000,000 | ||||||||||
Joint venture ownership percentage | 50.00% | |||||||||||
Deferred taxes | 9,000,000 | $ 9,000,000 | ||||||||||
Minimum [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Gross tax loss carry forwards with indefinite lives | 2,000,000,000 | $ 2,000,000,000 | ||||||||||
Income tax examination year | 2,001 | |||||||||||
Cash payment resulting from potential tax deficiency assessment relating to other tax examinations | $ 6,000,000 | |||||||||||
Maximum [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income tax examination year | 2,014 | |||||||||||
Cash payment resulting from potential tax deficiency assessment relating to other tax examinations | $ 11,000,000 | |||||||||||
2016 [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Gross tax loss carry forwards, subject to expiration | 50,000,000 | 50,000,000 | ||||||||||
2017 [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Gross tax loss carry forwards, subject to expiration | 40,000,000 | 40,000,000 | ||||||||||
2018 [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Gross tax loss carry forwards, subject to expiration | 140,000,000 | 140,000,000 | ||||||||||
2019 [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Gross tax loss carry forwards, subject to expiration | 160,000,000 | 160,000,000 | ||||||||||
2020 and beyond [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Gross tax loss carry forwards, subject to expiration | 786,000,000 | $ 786,000,000 | ||||||||||
U.K. | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Statutory federal income tax rate | 20.00% | 22.00% | 23.00% | |||||||||
Discrete tax charge for the write down of net deferred tax asset | $ 8,000,000 | |||||||||||
U.K. | Corporate Tax Rate 2015 [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Reduction in corporate tax rate | 20.00% | |||||||||||
U.K. | Corporate Tax Rate 2017 [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Reduction in corporate tax rate | 19.00% | |||||||||||
U.K. | Corporate Tax Rate 2020 [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Reduction in corporate tax rate | 18.00% | |||||||||||
US Income Tax [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Total tax benefit of extended tax provisions | $ 12,000,000 | $ 9,000,000 | ||||||||||
US Income Tax [Member] | 2001 through 2014 [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Payments for tax examination settlements | $ 15,000,000 | |||||||||||
UK Income Tax [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Reduction to corporate income tax rate | 2.00% | |||||||||||
Brazil [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Discrete tax benefit for the write up of net deferred tax asset | $ 6,000,000 | |||||||||||
Brazil [Member] | Scenario Forecast [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Social contribution tax percentage on net profits | 15.00% | |||||||||||
Brazil [Member] | Minimum [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Social contribution tax percentage on net profits | 15.00% | |||||||||||
Brazil [Member] | Maximum [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Social contribution tax percentage on net profits | 20.00% | |||||||||||
France [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Discrete tax charge for the write down of net deferred tax asset | $ 14,000,000 | |||||||||||
France [Member] | Minimum [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Reduction of tax rate | 34.43% | |||||||||||
France [Member] | Maximum [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Reduction of tax rate | 38.00% | |||||||||||
ITALY | Minimum [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Reduction of tax rate | 24.00% | |||||||||||
ITALY | Maximum [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Reduction of tax rate | 27.50% | |||||||||||
US and Canada Income Tax [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Cash tax refunds that should be received in 2014 | $ 50,000,000 | |||||||||||
US and Canada Income Tax [Member] | 2005 through 2012 [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Payments for tax examination settlements | $ 44,000,000 | |||||||||||
US and Canada Income Tax [Member] | Scenario Forecast [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Cash tax refunds that should be received in 2014 | $ 20,000,000 |
Income Taxes - Sources of Incom
Income Taxes - Sources of Income (Loss) Before Taxes and Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Parent country source | $ 11 | $ (12) | $ 14 |
Foreign sources | 556 | 1,101 | 1,360 |
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates | $ 567 | $ 1,089 | $ 1,374 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Current income taxes | $ 263 | $ 489 | $ 755 |
Deferred income taxes | 97 | (22) | (84) |
Total income tax provision | $ 360 | $ 467 | $ 671 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory and Effective Income Tax Rate (Detail) | Apr. 01, 2015 | Apr. 01, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | |||||
Tax provision at the parent statutory rate | 20.00% | 21.00% | 20.00% | 22.00% | 23.00% |
Foreign income taxed at different rates | 10.00% | 14.00% | 11.00% | ||
Change in valuation allowance | 19.00% | 14.00% | 13.00% | ||
Italian IRAP taxes | 1.00% | 3.00% | 2.00% | ||
Tax contingencies | 5.00% | (6.00%) | 3.00% | ||
Tax credits and incentives | (8.00%) | (8.00%) | (7.00%) | ||
Tax effect of permanent difference due to Venezuelan net monetary assets re-measurement | 9.00% | ||||
Change in tax rate or law | 4.00% | ||||
Withholding taxes | 2.00% | ||||
Other | 1.00% | 4.00% | 4.00% | ||
Total income tax provision | 63.00% | 43.00% | 49.00% |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Inventories | $ 89 | $ 89 |
Warranty and campaigns | 156 | 202 |
Allowance for credit losses | 162 | 212 |
Marketing and sales incentive programs | 347 | 445 |
Other risk and future charges reserve | 200 | 173 |
Pension, postretirement and postemployment benefits | 580 | 634 |
Measurement of derivative financial instruments | 37 | |
Research and development costs | 395 | 343 |
Other reserves | 400 | 413 |
Tax loss carry forwards | 712 | 836 |
Less: Valuation allowances | (1,361) | (1,484) |
Total deferred tax assets | 1,680 | 1,900 |
Deferred tax liabilities: | ||
Property, plant and equipment | 432 | 271 |
Measurement of derivative financial instruments | 2 | |
Other | 330 | 334 |
Total deferred tax liabilities | 764 | 605 |
Net deferred tax assets | $ 916 | $ 1,295 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets Reflected in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 1,250 | $ 1,747 |
Deferred tax liabilities | (334) | (452) |
Net deferred tax assets | $ 916 | $ 1,295 |
Income Taxes - Reconciliation86
Income Taxes - Reconciliation of Gross Amounts of Tax Contingencies (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Balance, beginning of year | $ 343 | $ 555 |
Additions based on tax positions related to the current year | 31 | 42 |
Additions for tax positions of prior years | 46 | 81 |
Reductions for tax positions of prior years | (72) | (304) |
Reductions for tax positions as a result of lapse of statute | (10) | (12) |
Settlements | (13) | (19) |
Balance, end of year | $ 325 | $ 343 |
Employee Benefit Plans and Po87
Employee Benefit Plans and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expense on defined contribution plan | $ 185 | $ 244 | $ 194 |
Description of health care and insurance plan | Healthcare postretirement benefit plan obligations comprise obligations for healthcare and insurance plans granted to employees working in the U.S. and Canada. These plans generally cover employees retiring on or after reaching the age of 55 who have completed at least 10 years of employment. CNH Industrial U.S. salaried and non-represented hourly employees and Canadian employees hired after January 1, 2001 and January 1, 2002, respectively, are not eligible for postretirement healthcare and life insurance benefits under the CNH Industrial plans | ||
Unamortized gains and losses | 10.00% | ||
Increase due to benefit obligations of new mortality table | 69 | ||
Pension plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total accumulated benefit obligation | $ 3,252 | 3,570 | |
Increase due to benefit obligations of new mortality table | 37 | ||
Employer contributions | 64 | ||
Healthcare plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Increase due to benefit obligations of new mortality table | $ 32 | ||
Employer contributions | 70 | ||
Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ 30 |
Employee Benefit Plans and Po88
Employee Benefit Plans and Postretirement Benefits - Defined Benefit Pension, Healthcare and Other Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Change in the fair value of plan assets: | ||||||
Beginning plan assets | $ 2,793 | |||||
Ending plan assets | 2,585 | $ 2,793 | ||||
Pension [Member] | ||||||
Change in benefit obligations: | ||||||
Beginning benefit obligation | 3,619 | 3,441 | ||||
Service cost | 30 | 27 | $ 27 | |||
Interest cost | 112 | 134 | 126 | |||
Plan participants’ contributions | 3 | 3 | ||||
Actuarial (gain) loss | (159) | 442 | ||||
Gross benefits paid | (190) | (233) | ||||
Plan amendments | 1 | |||||
Currency translation adjustments and other | (134) | (196) | ||||
Ending benefit obligation | 3,281 | 3,619 | 3,441 | |||
Change in the fair value of plan assets: | ||||||
Beginning plan assets | 2,686 | 2,665 | ||||
Actual return on plan assets | (9) | 288 | ||||
Employer contributions | 27 | 28 | ||||
Plan participants’ contributions | 3 | 3 | ||||
Gross benefits paid | (161) | (199) | ||||
Currency translation adjustments and other | (66) | (99) | ||||
Ending plan assets | 2,480 | 2,686 | 2,665 | |||
Funded status: | (801) | (933) | ||||
Healthcare [Member] | ||||||
Change in benefit obligations: | ||||||
Beginning benefit obligation | [1] | 1,243 | 1,117 | |||
Service cost | 8 | [1] | 9 | [1] | 9 | |
Interest cost | 48 | [1] | 51 | [1] | 45 | |
Plan participants’ contributions | [1] | 9 | 8 | |||
Actuarial (gain) loss | [1] | (64) | 150 | |||
Gross benefits paid | [1] | (80) | (78) | |||
Plan amendments | [1] | (12) | ||||
Currency translation adjustments and other | [1] | (7) | (2) | |||
Ending benefit obligation | [1] | 1,157 | 1,243 | 1,117 | ||
Change in the fair value of plan assets: | ||||||
Beginning plan assets | [1] | 107 | 98 | |||
Actual return on plan assets | [1] | 11 | ||||
Plan participants’ contributions | [1] | 9 | 8 | |||
Gross benefits paid | [1] | (2) | (2) | |||
Ending plan assets | [1] | 105 | 107 | 98 | ||
Funded status: | [1] | (1,052) | (1,136) | |||
Other [Member] | ||||||
Change in benefit obligations: | ||||||
Beginning benefit obligation | [1] | 526 | 565 | |||
Service cost | 15 | [1] | 18 | [1] | 16 | |
Interest cost | 5 | [1] | 10 | [1] | 12 | |
Actuarial (gain) loss | [1] | (37) | 58 | |||
Gross benefits paid | [1] | (45) | (40) | |||
Plan amendments | [1] | (24) | ||||
Currency translation adjustments and other | [1] | (41) | (61) | |||
Ending benefit obligation | [1] | 423 | 526 | $ 565 | ||
Change in the fair value of plan assets: | ||||||
Funded status: | [1] | $ (423) | $ (526) | |||
[1] | The healthcare and other postemployment plans are not required to be prefunded. |
Employee Benefit Plans and Po89
Employee Benefit Plans and Postretirement Benefits - Defined Benefit Pension Plans by Geographical Area (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Change in the fair value of plan assets: | |||
Beginning plan assets | $ 2,793 | ||
Ending plan assets | 2,585 | $ 2,793 | |
US [Member] | |||
Change in benefit obligations: | |||
Beginning benefit obligation | 1,291 | 1,223 | |
Service cost | 6 | 5 | |
Interest cost | 48 | 55 | |
Actuarial (gain) loss | (54) | 128 | |
Gross benefits paid | (83) | (120) | |
Ending benefit obligation | 1,208 | 1,291 | |
Change in the fair value of plan assets: | |||
Beginning plan assets | 1,295 | 1,269 | |
Actual return on plan assets | (30) | 146 | |
Gross benefits paid | (83) | (120) | |
Ending plan assets | 1,182 | 1,295 | |
Funded status: | (26) | 4 | |
UK [Member] | |||
Change in benefit obligations: | |||
Beginning benefit obligation | 1,468 | 1,360 | |
Service cost | 7 | 5 | |
Interest cost | 50 | 56 | |
Actuarial (gain) loss | (74) | 199 | |
Gross benefits paid | (64) | (62) | |
Currency translation adjustments and other | (55) | (90) | |
Ending benefit obligation | 1,332 | 1,468 | |
Change in the fair value of plan assets: | |||
Beginning plan assets | 1,105 | 1,099 | |
Actual return on plan assets | 13 | 119 | |
Employer contributions | 17 | 17 | |
Gross benefits paid | (64) | (62) | |
Currency translation adjustments and other | (43) | (68) | |
Ending plan assets | 1,028 | 1,105 | |
Funded status: | (304) | (363) | |
Germany [Member] | |||
Change in benefit obligations: | |||
Beginning benefit obligation | [1] | 523 | 537 |
Service cost | [1] | 4 | 4 |
Interest cost | [1] | 8 | 14 |
Actuarial (gain) loss | [1] | (16) | 71 |
Gross benefits paid | [1] | (29) | (34) |
Currency translation adjustments and other | [1] | (52) | (69) |
Ending benefit obligation | [1] | 438 | 523 |
Change in the fair value of plan assets: | |||
Beginning plan assets | [1] | 5 | 6 |
Currency translation adjustments and other | [1] | (1) | |
Ending plan assets | [1] | 5 | 5 |
Funded status: | [1] | (433) | (518) |
Other Countries [Member] | |||
Change in benefit obligations: | |||
Beginning benefit obligation | [1] | 337 | 321 |
Service cost | [1] | 13 | 13 |
Interest cost | [1] | 6 | 9 |
Plan participants’ contributions | [1] | 3 | 3 |
Actuarial (gain) loss | [1] | (15) | 44 |
Gross benefits paid | [1] | (14) | (17) |
Plan amendments | [1] | 1 | |
Currency translation adjustments and other | [1] | (27) | (37) |
Ending benefit obligation | [1] | 303 | 337 |
Change in the fair value of plan assets: | |||
Beginning plan assets | [1] | 281 | 291 |
Actual return on plan assets | [1] | 8 | 23 |
Employer contributions | [1] | 10 | 11 |
Plan participants’ contributions | [1] | 3 | 3 |
Gross benefits paid | [1] | (14) | (17) |
Currency translation adjustments and other | [1] | (23) | (30) |
Ending plan assets | [1] | 265 | 281 |
Funded status: | [1] | $ (38) | $ (56) |
[1] | Pension benefits in Germany and some other countries are not required to be prefunded. |
Employee Benefit Plans and Po90
Employee Benefit Plans and Postretirement Benefits - Net Amounts Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension, postretirement and other postemployment benefits | $ (2,282) | $ (2,614) |
Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | 6 | 19 |
Pension, postretirement and other postemployment benefits | (807) | (952) |
Net liability recognized at end of year | (801) | (933) |
Healthcare [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension, postretirement and other postemployment benefits | (1,052) | (1,136) |
Net liability recognized at end of year | (1,052) | (1,136) |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension, postretirement and other postemployment benefits | (423) | (526) |
Net liability recognized at end of year | $ (423) | $ (526) |
Employee Benefit Plans and Po91
Employee Benefit Plans and Postretirement Benefits - Pre-tax Amounts Recognized in Accumulated Other Comprehensive Income (Loss) (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized actuarial losses | $ 970 |
Unrecognized prior service credit | (3) |
Accumulated other comprehensive loss | 967 |
Healthcare [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized actuarial losses | 195 |
Unrecognized prior service credit | (10) |
Accumulated other comprehensive loss | 185 |
Other [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized actuarial losses | 66 |
Unrecognized prior service credit | (4) |
Accumulated other comprehensive loss | $ 62 |
Employee Benefit Plans and Po92
Employee Benefit Plans and Postretirement Benefits - Accumulated Benefit Obligations in Excess of Plan Assets (Detail) - Pension [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 3,182 | $ 2,103 |
Fair value of plan assets | $ 2,404 | $ 1,191 |
Employee Benefit Plans and Po93
Employee Benefit Plans and Postretirement Benefits - Projected Benefit Obligations in Excess of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 3,211 | $ 2,149 |
Fair value of plan assets | 2,404 | 1,191 |
Healthcare [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 1,157 | 1,243 |
Fair value of plan assets | 105 | 107 |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 423 | $ 526 |
Employee Benefit Plans and Po94
Employee Benefit Plans and Postretirement Benefits - Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Pension [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 30 | $ 27 | $ 27 | ||
Interest cost | 112 | 134 | 126 | ||
Expected return on assets | (140) | (151) | (166) | ||
Amortization of: | |||||
Prior service cost (credit) | 1 | 2 | |||
Actuarial loss (gain) | 83 | 64 | 78 | ||
Settlement loss and other | 1 | ||||
Net periodic benefit cost | 85 | 75 | 68 | ||
Healthcare [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 8 | [1] | 9 | [1] | 9 |
Interest cost | 48 | [1] | 51 | [1] | 45 |
Expected return on assets | (7) | (7) | (7) | ||
Amortization of: | |||||
Prior service cost (credit) | (10) | (12) | (12) | ||
Actuarial loss (gain) | 26 | 5 | 22 | ||
Net periodic benefit cost | 65 | 46 | 57 | ||
Other [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 15 | [1] | 18 | [1] | 16 |
Interest cost | 5 | [1] | 10 | [1] | 12 |
Amortization of: | |||||
Prior service cost (credit) | 1 | 2 | 1 | ||
Actuarial loss (gain) | (7) | 13 | (5) | ||
Settlement loss and other | 1 | 1 | |||
Net periodic benefit cost | $ 14 | $ 44 | $ 25 | ||
[1] | The healthcare and other postemployment plans are not required to be prefunded. |
Employee Benefit Plans and Po95
Employee Benefit Plans and Postretirement Benefits - Net Periodic Benefit Cost Recognized in Net Income and Other Changes in Plan Assets and Benefit Obligation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Benefit adjustments included in other comprehensive (income) loss: | |||
Currency translation adjustments and other | $ 359 | $ (125) | $ 510 |
Total recognized in other comprehensive loss | (191) | 337 | (197) |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | 85 | 75 | 68 |
Benefit adjustments included in other comprehensive (income) loss: | |||
Net actuarial gains | (10) | ||
Amortization of actuarial gains (losses) | (83) | ||
Currency translation adjustments and other | (38) | ||
Total recognized in other comprehensive loss | (131) | ||
Total recognized in comprehensive loss | (46) | ||
Healthcare [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | 65 | 46 | 57 |
Benefit adjustments included in other comprehensive (income) loss: | |||
Net actuarial gains | (57) | ||
Amortization of actuarial gains (losses) | (26) | ||
Amortization of prior service (cost) credit | 10 | ||
Currency translation adjustments and other | (1) | ||
Total recognized in other comprehensive loss | (74) | ||
Total recognized in comprehensive loss | (9) | ||
Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | 14 | $ 44 | $ 25 |
Benefit adjustments included in other comprehensive (income) loss: | |||
Net actuarial gains | (37) | ||
Amortization of actuarial gains (losses) | 7 | ||
Amortization of prior service (cost) credit | (1) | ||
Currency translation adjustments and other | (9) | ||
Total recognized in other comprehensive loss | (40) | ||
Total recognized in comprehensive loss | $ (26) |
Employee Benefit Plans and Po96
Employee Benefit Plans and Postretirement Benefits - Pre-tax Amounts Expected to be Amortized from Accumulated Other Comprehensive Income (Loss) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial losses | $ (79) |
Total | (79) |
Healthcare [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial losses | (15) |
Prior service (cost) credit | 4 |
Total | (11) |
Other [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service (cost) credit | (1) |
Total | $ (1) |
Employee Benefit Plans and Po97
Employee Benefit Plans and Postretirement Benefits - Assumptions Utilized in Determining the Funded Status and Net Periodic Cost of Defined Benefit Pension Plans and Other Postretirement Benefit Plans (Detail) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Pension plans [Member] | ||||
Assumptions used to determine funded status at December 31 | ||||
Weighted-average discount rates | 3.49% | 3.22% | ||
Weighted-average rate of compensation increase | 2.98% | 3.25% | ||
Assumptions used to determine expense for the years ended December 31 | ||||
Weighted-average discount rates | 3.22% | 4.05% | 3.75% | |
Weighted-average rate of compensation increase | 3.25% | 3.35% | 2.99% | |
Weighted-average long-term rates of return on plan assets | 5.38% | 5.85% | 5.95% | |
Healthcare plans [Member] | ||||
Assumptions used to determine funded status at December 31 | ||||
Weighted-average discount rates | 4.27% | 3.96% | ||
Weighted-average rate of compensation increase | 2.50% | 3.00% | ||
Weighted-average, initial healthcare cost trend rate | 6.98% | 7.23% | ||
Weighted-average, ultimate healthcare cost trend rate | [1] | 5.00% | 5.00% | |
Assumptions used to determine expense for the years ended December 31 | ||||
Weighted-average discount rates | 3.96% | 4.67% | 3.79% | |
Weighted-average rate of compensation increase | 3.00% | 3.42% | 3.42% | |
Weighted-average long-term rates of return on plan assets | 6.75% | 6.75% | 7.00% | |
Weighted-average, initial healthcare cost trend rate | 7.23% | 8.19% | 7.04% | |
Weighted-average, ultimate healthcare cost trend rate | [1] | 5.00% | 5.00% | 5.00% |
Other [Member] | ||||
Assumptions used to determine funded status at December 31 | ||||
Weighted-average discount rates | 2.06% | 1.81% | ||
Weighted-average rate of compensation increase | 1.33% | 2.27% | ||
Assumptions used to determine expense for the years ended December 31 | ||||
Weighted-average discount rates | 1.81% | 3.00% | 3.27% | |
Weighted-average rate of compensation increase | 2.27% | 2.63% | 2.75% | |
[1] | CNH Industrial expects to achieve the ultimate healthcare cost trend rate in 2024 and 2018 for U.S. and Canada plans, respectively. |
Employee Benefit Plans and Po98
Employee Benefit Plans and Postretirement Benefits - Effect of One Percentage Point Change in Assumed Healthcare Cost Trend Rates (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Total increase/(decrease) in service cost and interest cost components of 2014 Healthcare Plan benefit expense, One Percentage-Point Increase | $ 8 |
Total increase/(decrease) in accumulated Healthcare benefit obligations as of end period, One Percentage-Point Increase | 149 |
Total increase/(decrease) in service cost and interest cost components of 2014 Healthcare Plan benefit expense, One Percentage-Point Decrease | (7) |
Total increase/(decrease) in accumulated Healthcare benefit obligations as of end period, One Percentage-Point Decrease | $ (121) |
Employee Benefit Plans and Po99
Employee Benefit Plans and Postretirement Benefits - Weighted Average Target Asset Allocation For All Plans (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Equity securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation for all plans in asset categories | 22.00% |
Debt securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation for all plans in asset categories | 67.00% |
Cash/Other [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation for all plans in asset categories | 11.00% |
Employee Benefit Plans and P100
Employee Benefit Plans and Postretirement Benefits - Summary of Fair Value of Plan Assets by Asset Category and Level Within Fair Value Hierarchy (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | $ 2,585 | $ 2,793 | ||
Equity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 342 | 15 | ||
Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 1,545 | 1,710 | ||
Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 678 | 1,035 | ||
Cash [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 20 | 33 | ||
Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 335 | 372 | ||
Level 1 [Member] | Equity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 15 | 15 | ||
Level 1 [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 319 | 353 | ||
Level 1 [Member] | Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 4 | |||
Level 1 [Member] | Cash [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 1 | |||
Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 2,117 | 2,296 | ||
Level 2 [Member] | Equity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 327 | |||
Level 2 [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 1,226 | 1,357 | ||
Level 2 [Member] | Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 545 | 906 | ||
Level 2 [Member] | Cash [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 19 | 33 | ||
Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 133 | 125 | ||
Level 3 [Member] | Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 133 | 125 | ||
U.S. government bonds [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 305 | 346 | ||
U.S. government bonds [Member] | Level 1 [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 302 | 336 | ||
U.S. government bonds [Member] | Level 2 [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 3 | 10 | ||
U.S. corporate bonds [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 504 | 534 | ||
U.S. corporate bonds [Member] | Level 2 [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 504 | 534 | ||
Non-U.S. government bonds [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 611 | 682 | ||
Non-U.S. government bonds [Member] | Level 1 [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 17 | 17 | ||
Non-U.S. government bonds [Member] | Level 2 [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 594 | 665 | ||
Non-U.S. corporate bonds [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 112 | 116 | ||
Non-U.S. corporate bonds [Member] | Level 2 [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 112 | 116 | ||
Mortgage backed securities [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 1 | 1 | ||
Mortgage backed securities [Member] | Level 2 [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 1 | 1 | ||
Other Fixed Income Securities [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 12 | 31 | ||
Other Fixed Income Securities [Member] | Level 2 [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 12 | 31 | ||
Mutual funds [Member] | Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | [1] | 537 | 556 | |
Mutual funds [Member] | Level 2 [Member] | Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | [1] | 537 | 556 | |
Insurance contracts [Member] | Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 133 | 125 | ||
Insurance contracts [Member] | Level 3 [Member] | Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 133 | 125 | $ 33 | |
Derivatives-credit contracts [Member] | Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 4 | |||
Derivatives-credit contracts [Member] | Level 1 [Member] | Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 4 | |||
Other [Member] | Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | [2] | 8 | 350 | |
Other [Member] | Level 2 [Member] | Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | [2] | 8 | 350 | |
US [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 1,182 | 1,295 | $ 1,269 | |
US [Member] | Equities-Large cap [Member] | Equity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 53 | |||
US [Member] | Equities-Large cap [Member] | Level 1 [Member] | Equity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 15 | |||
US [Member] | Equities-Large cap [Member] | Level 2 [Member] | Equity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 38 | |||
Non-US [Member] | Equities-Large cap [Member] | Equity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 289 | 15 | ||
Non-US [Member] | Equities-Large cap [Member] | Level 1 [Member] | Equity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | $ 15 | |||
Non-US [Member] | Equities-Large cap [Member] | Level 2 [Member] | Equity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | $ 289 | |||
[1] | This category includes mutual funds, which primarily invest in non-U.S. equities and non-U.S. corporate bonds. | |||
[2] | This category includes primarily commingled funds, which invest in both U.S. and non-U.S. equity securities. |
Employee Benefit Plans and P101
Employee Benefit Plans and Postretirement Benefits - Changes in Level 3 Plan Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning plan assets | $ 2,793 | |
Ending plan assets | 2,585 | $ 2,793 |
Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning plan assets | 125 | |
Ending plan assets | 133 | 125 |
Other types of investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning plan assets | 1,035 | |
Ending plan assets | 678 | 1,035 |
Other types of investments [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning plan assets | 125 | |
Ending plan assets | 133 | 125 |
Other types of investments [Member] | Insurance contracts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning plan assets | 125 | |
Ending plan assets | 133 | 125 |
Other types of investments [Member] | Insurance contracts [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning plan assets | 125 | 33 |
Actual return on plan assets relating to assets still held at reporting date | 2 | 6 |
Purchases | 7 | 105 |
Settlements | (6) | (3) |
Transfers in and/or out of level 3 | 6 | |
Currency impact | (1) | (16) |
Ending plan assets | $ 133 | $ 125 |
Employee Benefit Plans and P102
Employee Benefit Plans and Postretirement Benefits - Cash Flows Related to Total Benefits Expected to be Paid (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Medicare Part D Reimbursement [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ (1) |
2021 - 2025 | (2) |
Total | (3) |
Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 189 |
2,017 | 189 |
2,018 | 188 |
2,019 | 189 |
2,020 | 193 |
2021 - 2025 | 964 |
Total | 1,912 |
Healthcare [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 74 |
2,017 | 72 |
2,018 | 71 |
2,019 | 71 |
2,020 | 70 |
2021 - 2025 | 341 |
Total | 699 |
Other [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 30 |
2,017 | 30 |
2,018 | 35 |
2,019 | 33 |
2,020 | 35 |
2021 - 2025 | 146 |
Total | $ 309 |
Other Liabilities - Summary of
Other Liabilities - Summary of Other Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Liabilities Disclosure [Abstract] | ||||
Advances on buy-back agreements | $ 2,147 | $ 1,962 | ||
Warranty and campaign programs | 908 | 1,020 | $ 1,111 | |
Marketing and sales incentive programs | 1,166 | 1,413 | ||
Tax payables | 528 | 680 | ||
Accrued expenses and deferred income | 577 | 731 | ||
Accrued employee benefits | 572 | 669 | ||
Legal reserves and other provisions | 389 | 410 | ||
Contract reserve | 396 | 390 | ||
Restructuring reserve | 51 | 95 | $ 77 | $ 155 |
Other | 736 | 689 | ||
Total | $ 7,470 | $ 8,059 |
Other Liabilities - Summary 104
Other Liabilities - Summary of Recorded Activity for Basic Warranty and Accruals for Campaign Programs (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at beginning of period | $ 1,020 | $ 1,111 |
Additions | 738 | 866 |
Claims paid | (723) | (837) |
Currency translation adjustment and other | (127) | (120) |
Balance at end of period | $ 908 | $ 1,020 |
Other Liabilities - Additional
Other Liabilities - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | $ 84 | $ 184 | $ 71 |
Joint venture ownership percentage | 50.00% | ||
Remaining cost expected to be incurred for existing restructuring plans | $ 80 | ||
Cumulative charges net | 360 | ||
Estimated saving amount | 200 | ||
Commercial Vehicles [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | 44 | 102 | |
Construction Equipment Segment [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | 19 | 39 | |
Agriculture Equipment [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | $ 18 | $ 43 | |
Agriculture Equipment [Member] | CHINA | |||
Restructuring Cost And Reserve [Line Items] | |||
Joint venture ownership percentage | 60.00% |
Other Liabilities - Restructuri
Other Liabilities - Restructuring Activity (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | $ 95 | $ 77 | $ 155 |
Restructuring charges | 84 | 184 | 71 |
Reserves utilized cash | (116) | (82) | (138) |
Reserves utilized non-cash | (5) | (63) | (11) |
Currency translation adjustments | (7) | (21) | |
Ending balance | 51 | 95 | 77 |
Employee Severance [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | 86 | 69 | 131 |
Restructuring charges | 66 | 118 | 67 |
Reserves utilized cash | (112) | (74) | (122) |
Reserves utilized non-cash | (5) | (13) | (8) |
Currency translation adjustments | (5) | (14) | 1 |
Ending balance | 30 | 86 | 69 |
Facility Related Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | 6 | 1 | |
Restructuring charges | 32 | 1 | |
Reserves utilized cash | (3) | ||
Reserves utilized non-cash | (26) | ||
Currency translation adjustments | 2 | (1) | |
Ending balance | 5 | 6 | 1 |
Other Restructuring [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | 3 | 7 | 24 |
Restructuring charges | 18 | 34 | 3 |
Reserves utilized cash | (1) | (8) | (16) |
Reserves utilized non-cash | (24) | (3) | |
Currency translation adjustments | (4) | (6) | (1) |
Ending balance | $ 16 | $ 3 | $ 7 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Jan. 07, 2014USD ($) | Dec. 31, 2015USD ($)site | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2011USD ($) |
Loss Contingencies [Line Items] | |||||
Number of non owned sites | site | 65 | ||||
Number of national priority list | site | 15 | ||||
Number of sites not named as a potentially responsible party (PRP) the company's liability has been resolved or has been deemed de minimis | site | 59 | ||||
Incurred and claims to be resolved over extended period of time | 30 years | ||||
Environmental reserves | $ 37 | $ 38 | |||
Rental expense for all operating leases | 69 | 58 | $ 64 | ||
Guarantees at carrying value | $ 316 | $ 383 | |||
Building [Member] | Minimum [Member] | |||||
Loss Contingencies [Line Items] | |||||
Operating lease term | 10 years | ||||
Building [Member] | Maximum [Member] | |||||
Loss Contingencies [Line Items] | |||||
Operating lease term | 20 years | ||||
Equipment [Member] | Minimum [Member] | |||||
Loss Contingencies [Line Items] | |||||
Operating lease term | 3 years | ||||
Equipment [Member] | Maximum [Member] | |||||
Loss Contingencies [Line Items] | |||||
Operating lease term | 5 years | ||||
Ligon [Member] | |||||
Loss Contingencies [Line Items] | |||||
Consideration for settlement payment | $ 12.8 | ||||
Ligon [Member] | Compensatory Damages [Member] | |||||
Loss Contingencies [Line Items] | |||||
Damages awarded to plaintiff's | $ 3.8 | ||||
Ligon [Member] | Punitive Damages [Member] | |||||
Loss Contingencies [Line Items] | |||||
Damages awarded to plaintiff's | $ 7.6 | ||||
Fiat Chrysler Automobiles N.V. | |||||
Loss Contingencies [Line Items] | |||||
Other contingencies | $ 1,300 | ||||
Bonds guaranteed by FCA | $ 1,100 |
Commitments and Contingencie108
Commitments and Contingencies - Minimum Rental Commitments Under Non Cancelable Operating Leases with Lease Terms in Excess of One Year (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,016 | $ 73 |
2,017 | 59 |
2,018 | 43 |
2,019 | 33 |
2,020 | 27 |
2021 and beyond | 34 |
Total minimum rental commitments | $ 269 |
Commitments and Contingencie109
Commitments and Contingencies - Financial Services has Various Agreements to Extend Credit (Detail) - Wholesale and dealer financing [Member] $ in Millions | Dec. 31, 2015USD ($) |
Line Of Credit Facility [Line Items] | |
Total Credit Limit | $ 7,007 |
Utilized | 3,770 |
Not Utilized | $ 3,237 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Maturity of foreign exchange contracts | 17 months | |
After-tax gains (losses) deferred in AOCI of foreign exchange contracts to be reclassified to earnings over the next 12 months | $ 20 | |
Maximum time for hedging interest rate cash flow hedge | 48 months | |
After-tax gains (losses) deferred in AOCI of interest rate derivatives to be reclassified to earnings over the next 12 months | $ (2) | |
Foreign Exchange Derivatives [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Notional amount | $ 7,300 | $ 8,600 |
Cross Currency Swaps [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Maturity of foreign exchange contracts | 12 months | |
Notional amount | $ 165 | |
Interest Rate Derivatives [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Notional amount | $ 4,600 | $ 5,600 |
Financial Instruments - Fair Va
Financial Instruments - Fair Values of Derivatives (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | $ 211 | $ 205 |
Derivative Liabilities, Total | (69) | (235) |
Derivatives Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | 107 | 112 |
Derivative Liabilities, Total | (35) | (190) |
Derivatives Designated as Hedging Instruments [Member] | Foreign Exchange Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | 61 | 75 |
Derivative Liabilities, Total | (29) | (178) |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | 30 | 37 |
Derivative Liabilities, Total | (6) | (12) |
Derivatives Designated as Hedging Instruments [Member] | Cross Currency Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | 16 | |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | 104 | 93 |
Derivative Liabilities, Total | (34) | (45) |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Exchange Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | 100 | 86 |
Derivative Liabilities, Total | (30) | (37) |
Derivatives Not Designated as Hedging Instruments [Member] | Interest Rate Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | 4 | 7 |
Derivative Liabilities, Total | $ (4) | $ (8) |
Financial Instruments - Pre Tax
Financial Instruments - Pre Tax Gains losses on Consolidated Statements of Operation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flow Hedges | |||
Foreign exchange contracts-accumulated other comprehensive income (effective portion) | $ (19) | $ (251) | $ 208 |
Foreign exchange contracts-accumulated other comprehensive income (effective portion) | (39) | 1 | (7) |
Interest Expense [Member] | |||
Fair Value Hedges | |||
Interest rate derivatives | 9 | (8) | (45) |
Gains/(losses) on hedged items | (9) | 8 | 45 |
Cash Flow Hedges | |||
Interest rate derivatives-Reclassified from accumulated other comprehensive income (effective portion) | (7) | (12) | (14) |
Net sales [Member] | |||
Cash Flow Hedges | |||
Foreign exchange contracts, Reclassified from accumulated other comprehensive income (effective portion) | 16 | 14 | 15 |
Cost of Goods Sold [Member] | |||
Cash Flow Hedges | |||
Foreign exchange contracts, Reclassified from accumulated other comprehensive income (effective portion) | (211) | (7) | 7 |
Other, Net [Member] | |||
Cash Flow Hedges | |||
Foreign exchange contracts, Reclassified from accumulated other comprehensive income (effective portion) | (10) | (30) | 59 |
Not Designated as Hedges | |||
Non Designated as Hedges, Foreign exchange contracts | $ 115 | $ (14) | $ 64 |
Financial Instruments - Fair113
Financial Instruments - Fair Value Hierarchy Levels of Assets and Liabilities Value on Recurring Basis (Detail) - Fair Value Measurements Recurring [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | $ 212 | $ 206 |
Total Liabilities | (69) | (235) |
Available for Sale Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 1 | 1 |
Foreign Exchange Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 161 | 161 |
Total Liabilities | (59) | (215) |
Interest Rate Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 34 | 44 |
Total Liabilities | (10) | (20) |
Cross Currency Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 16 | |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 1 | 1 |
Level 1 [Member] | Available for Sale Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 1 | 1 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 211 | 205 |
Total Liabilities | (69) | (235) |
Level 2 [Member] | Foreign Exchange Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 161 | 161 |
Total Liabilities | (59) | (215) |
Level 2 [Member] | Interest Rate Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 34 | 44 |
Total Liabilities | (10) | $ (20) |
Level 2 [Member] | Cross Currency Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | $ 16 |
Financial Instruments - Estimat
Financial Instruments - Estimated Fair Market Values of Financial Instruments Not Carried at Fair Value in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivables | $ 19,001 | $ 21,472 |
Debt | 26,388 | 29,594 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivables | 18,868 | 21,427 |
Debt | $ 26,371 | $ 29,883 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) € / shares in Units, $ in Millions | Mar. 04, 2016USD ($) | Mar. 04, 2016EUR (€)€ / shares | Apr. 15, 2015USD ($) | Apr. 15, 2015EUR (€)€ / shares | Apr. 16, 2014USD ($) | Apr. 16, 2014EUR (€)€ / shares | Dec. 31, 2013shares | Sep. 30, 2013€ / sharesshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | Dec. 31, 2015EUR (€)€ / sharesshares | Dec. 31, 2014€ / sharesshares | |
Class Of Stock [Line Items] | ||||||||||||||
Authorized share capital amount | € | € 40,000,000 | |||||||||||||
Common and special voting shares | $ 25 | € 18,000,000 | ||||||||||||
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | ||||||||||||
Common shares, shares outstanding | 1,350,073,530 | 1,348,867,772 | 1,362,048,989 | 1,350,073,530 | 1,362,048,989 | 1,355,319,640 | ||||||||
Common shares, par value | € / shares | € 0.01 | € 0.01 | € 0.01 | |||||||||||
Special voting shares, shares issued | 474,474,276 | 413,249,206 | 413,249,206 | |||||||||||
Special voting shares, shares authorized | 2,000,000,000 | 2,000,000,000 | ||||||||||||
Special voting shares, per share par value | € / shares | € 0.01 | |||||||||||||
Voting Right | In order to reward long-term ownership of CNH Industrial common shares and promote stability of CNH Industrial’s shareholder base, CNH Industrial’s Articles of Association provide for a loyalty voting structure that grants eligible long-term shareholders the equivalent of two votes for each CNH Industrial N.V. common share that they hold, through the issuance of special voting shares. | |||||||||||||
Common Shares, Registered | Three years | |||||||||||||
Capital increase | 1,205,758 | 6,729,349 | 5,246,110 | |||||||||||
Dividend declared per share | € / shares | € 0.20 | € 0.20 | ||||||||||||
Dividend declared amount | $ 291 | € 272,000,000 | $ 375 | € 271,000,000 | $ 292 | $ 378 | $ 366 | |||||||
Dividends Payable, Date to be Paid | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2014 | ||||||||||
Subsequent Event [Member] | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Dividend declared per share | € / shares | € 0.13 | |||||||||||||
Dividend declared amount | $ 195 | € 177,000,000 | ||||||||||||
Special Voting Shares [Member] | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Special Voting Shares | Shares will become “Qualifying Common Shares” and the relevant shareholder will be entitled to receive one special voting share for each such Qualifying Common Share. | |||||||||||||
Retirement of special voting shares | 5,479,890 | 2,150,297 | 53,594,883 | |||||||||||
CNH Global N.V. [Member] | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Common shares, shares outstanding | [1] | 126,307,525 | ||||||||||||
Special voting shares, shares issued | [2] | 23,212,193 | ||||||||||||
Common shares, shares issued | 1,348,867,772 | |||||||||||||
Share exchange ratio with new entity | 3.828 | 3.828 | ||||||||||||
Fiat Industrial [Member] | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Common shares, shares outstanding | [1] | 1,222,560,247 | ||||||||||||
Common shares, par value | € / shares | € 1.57 | |||||||||||||
Special voting shares, shares issued | [2] | 451,262,083 | ||||||||||||
Common shares, shares issued | 1,222,568,882 | |||||||||||||
Share exchange ratio with new entity | 1 | |||||||||||||
[1] | Allotted on the basis of the established exchange ratios of one common share of CNH Industrial N.V. for each share of Fiat Industrial S.p.A. and 3.828 common shares of CNH Industrial N.V for each share of CNH Global N.V. | |||||||||||||
[2] | Allotted to eligible Fiat Industrial N.V. and CNH Global N.V. shareholders who had elected to receive special voting shares. |
Shareholders Equity - Changes i
Shareholders Equity - Changes in Common Shares Issued According to Exchange Ratio (Detail) - shares | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2013 | ||
Business Acquisition Equity Interests Issued Or Issuable [Line Items] | |||||
Common shares, shares outstanding | 1,350,073,530 | 1,362,048,989 | 1,355,319,640 | 1,348,867,772 | |
Capital increase | 1,205,758 | 6,729,349 | 5,246,110 | ||
Special voting shares, shares issued | 413,249,206 | 474,474,276 | |||
Special voting shares, shares outstanding | 468,994,386 | 413,249,206 | 415,399,503 | ||
Common and special voting shares, shares issued | 1,823,342,048 | ||||
Common and special voting shares, shares outstanding | 1,819,067,916 | 1,775,298,195 | 1,770,719,143 | ||
Fiat Industrial [Member] | |||||
Business Acquisition Equity Interests Issued Or Issuable [Line Items] | |||||
Common shares, shares outstanding | [1] | 1,222,560,247 | |||
Special voting shares, shares issued | [2] | 451,262,083 | |||
Common and special voting shares, shares issued | 1,673,822,330 | ||||
Fiat Industrial [Member] | Before Merger [Member] | |||||
Business Acquisition Equity Interests Issued Or Issuable [Line Items] | |||||
Common shares, shares outstanding | [3] | 1,222,560,247 | |||
CNH Global N.V. [Member] | |||||
Business Acquisition Equity Interests Issued Or Issuable [Line Items] | |||||
Common shares, shares outstanding | [1] | 126,307,525 | |||
Special voting shares, shares issued | [2] | 23,212,193 | |||
Common and special voting shares, shares issued | 149,519,718 | ||||
CNH Global N.V. [Member] | Before Merger [Member] | |||||
Business Acquisition Equity Interests Issued Or Issuable [Line Items] | |||||
Common shares, shares outstanding | 32,995,696 | ||||
Special Voting Shares [Member] | |||||
Business Acquisition Equity Interests Issued Or Issuable [Line Items] | |||||
Retirement of special voting shares | (5,479,890) | (2,150,297) | (53,594,883) | ||
[1] | Allotted on the basis of the established exchange ratios of one common share of CNH Industrial N.V. for each share of Fiat Industrial S.p.A. and 3.828 common shares of CNH Industrial N.V for each share of CNH Global N.V. | ||||
[2] | Allotted to eligible Fiat Industrial N.V. and CNH Global N.V. shareholders who had elected to receive special voting shares. | ||||
[3] | Total n. 1,222,568,882 Fiat Industrial S.p.A. common shares are shown net of 8,635 treasury shares that have been cancelled at the closing of the merger. |
Shareholders Equity - Change117
Shareholders Equity - Changes in Common Shares Issued According to Exchange Ratio (Parenthetical) (Detail) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013shares | Dec. 31, 2015 | |
Fiat Industrial [Member] | ||
Business Acquisition Equity Interests Issued Or Issuable [Line Items] | ||
Common shares, shares issued | 1,222,568,882 | |
Treasury shares cancelled | 8,635 | |
Share exchange ratio with new entity | 1 | |
CNH Global N.V. [Member] | ||
Business Acquisition Equity Interests Issued Or Issuable [Line Items] | ||
Common shares, shares issued | 1,348,867,772 | |
Share exchange ratio with new entity | 3.828 | 3.828 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) | Jun. 25, 2014 | Jun. 09, 2014 | Dec. 28, 2012$ / shares | Apr. 05, 2012Incentive_Planshares | Sep. 30, 2012shares | Sep. 30, 2013 | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)shares | Dec. 31, 2012Installment$ / sharesshares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | $ | $ 49,000,000 | $ 49,000,000 | $ 39,000,000 | |||||||
Tax benefit relating to share-based compensation expense | $ | 3,000,000 | $ 4,000,000 | 8,000,000 | |||||||
Unrecognized share-based compensation expense | $ | $ 76,000,000 | |||||||||
Unrecognized share-based compensation costs weighted-average period | 2 years 1 month 6 days | |||||||||
Shares authorizes | 25,000,000 | |||||||||
Common shares authorized period | 5 years | |||||||||
Dividend per share paid by subsidiary's to minority share holder | $ / shares | $ 10 | |||||||||
Additional compensation expense | $ | $ 0 | |||||||||
Number of long term incentive plan | Incentive_Plan | 2 | |||||||||
Conversion basis | On the Effective Date, the unvested equity awards under the former Fiat Industrial Plan became convertible for common shares of CNH Industrial N.V. on a one-for-one basis. | |||||||||
CNH Global N.V. [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Share exchange ratio with new entity | 3.828 | 3.828 | ||||||||
Performance Shares, Converted to RSU | 3,000,000 | |||||||||
CNH EIP [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Common shares authorized period | 5 years | |||||||||
Number of outstanding options | 8,769,918 | 10,861,553 | ||||||||
Expected Dividend yield | 0.00% | |||||||||
Weighted average exercise price of outstanding options | $ / shares | $ 9.21 | $ 9.03 | ||||||||
CNH DCP [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Number of outstanding options | 30,000 | |||||||||
CNH DCP [Member] | CNH Industrial [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Share exchange ratio with new entity | 3.828 | |||||||||
CNH DCP [Member] | Annual Retainer [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Annual board of directors member fee | $ | $ 125,000 | |||||||||
CNH DCP [Member] | Audit Committee Membership [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Annual board of directors member fee | $ | 25,000 | |||||||||
CNH DCP [Member] | Audit Committee Chair [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Annual board of directors member fee | $ | 35,000 | |||||||||
CNH DCP [Member] | Governance [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Annual board of directors member fee | $ | 20,000 | |||||||||
CNH DCP [Member] | Governance And Sustainability Committee Chair [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Annual board of directors member fee | $ | $ 25,000 | |||||||||
CNH Industrial DCP [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Lock in Period for sale of common shares | 6 months | |||||||||
Stock options terminate after grant date | 10 years | |||||||||
Stock option termination date after individual ceases to director | 6 months | |||||||||
Common shares available for issuance | 200,000 | |||||||||
Common shares issued | 50,000 | |||||||||
Share based compensation, exercise price | $ / shares | $ 9.42 | |||||||||
Share based compensation, weighted average fair value | $ / shares | $ 2.87 | |||||||||
Fiat Industrial, Performance LTI [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Number of unvested shares | 1,000,000 | 1,000,000 | ||||||||
Fiat Industrial, Retention LTI [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | |||||||||
Number of unvested shares | 1,100,000 | 366,666 | ||||||||
Performance Shares [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Granted | 1,000,000 | 12,000,000 | ||||||||
Share-based award period | five-year period from January 1, 2014 to December 31, 2018 | |||||||||
Share-based award, performance goal description | The performance goals include a performance condition as well as a market condition, with each weighted at 50% and paying out independently of the other. | |||||||||
Percentage of grants to be vested in February 2017 | 33.00% | |||||||||
Cumulative percentage of grants to be vested in February 2018 | 67.00% | |||||||||
Cumulative percentage of grants to be vested in February 2019 | 100.00% | |||||||||
Fair value of stock awarded | $ / shares | $ 9.33 | $ 9.48 | ||||||||
Expected weighted average grant date | 5 years | |||||||||
Expected Dividend yield | 2.70% | 2.60% | ||||||||
Performance Shares [Member] | CNH EIP [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Granted | 0 | 0 | 0 | 500,000 | ||||||
Fair value of stock awarded | $ / shares | $ 10.62 | |||||||||
Number of unvested shares | 0 | |||||||||
Performance Shares [Member] | Minimum [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Payout scale | 0.00% | |||||||||
Performance Shares [Member] | Maximum [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Payout scale | 150.00% | |||||||||
Market Condition Award [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Fair value of stock options awarded | $ / shares | $ 7.95 | $ 8.19 | ||||||||
Percentage of awards issued on grant dates | 90.00% | |||||||||
Restricted Stock Units [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Granted | 2,000,000 | 1,000,000 | ||||||||
Fair value of stock awarded | $ / shares | $ 8.60 | $ 9.21 | ||||||||
Vesting period | 3 years | 3 years | ||||||||
Restricted Stock Units [Member] | CNH EIP [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Granted | 0 | 0 | 0 | 700,000 | ||||||
Fair value of stock awarded | $ / shares | $ 11.40 | |||||||||
Vesting period | 3 years | |||||||||
Number of unvested shares | 3,191,444 | |||||||||
Number of installments | Installment | 3 | |||||||||
Stock Option Plan [Member] | CNH EIP [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Fair value of stock options awarded | $ / shares | $ 3.60 | |||||||||
Original contract term of option | 5 years | |||||||||
Shares issued during period | 0 | 0 | 0 | |||||||
Expected Dividend yield | 0.00% | |||||||||
Stock Option Plan [Member] | CNH EIP [Member] | Target Grant [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Common shares issued | 2,700,000 | |||||||||
Stock Option Plan [Member] | CNH EIP [Member] | Actual Grant [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Common shares issued | 4,000,000 | |||||||||
Stock Option Plan [Member] | Minimum [Member] | CNH EIP [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Original contract term of option | 65 months | |||||||||
Stock Option Plan [Member] | Maximum [Member] | CNH EIP [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Original contract term of option | 70 months | |||||||||
CNH Global Stock Options Outstanding Pre-modification [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Number of outstanding options | 4,600,000 | |||||||||
Weighted average exercise price of outstanding options | $ / shares | $ 40.45 | |||||||||
CNH Global Stock Options Outstanding Post-modification [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Number of outstanding options | 5,600,000 | |||||||||
Weighted average exercise price of outstanding options | $ / shares | $ 33.34 | |||||||||
CNH Global Performance Shares Pre-modification [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Number of unvested shares | 1,900,000 | |||||||||
CNH Global Performance Shares Post-modification [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Number of unvested shares | 2,300,000 | |||||||||
CNH Global Restricted Shares Pre-modification [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Number of unvested shares | 450,000 | |||||||||
CNH Global Restricted Shares Post-modification [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Number of unvested shares | 550,000 | |||||||||
Executive Director [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Shares authorizes | 7,000,000 | |||||||||
Board of Directors Chairman [Member] | Restricted Stock Units [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Granted | 3,000,000 | |||||||||
Fair value of stock awarded | $ / shares | $ 10.41 | |||||||||
Board of Directors Chairman [Member] | Restricted Stock Units [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Restricted share unit vested | 750,000 | |||||||||
Board of Directors Chairman [Member] | Restricted Stock Units [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Restricted share unit vested | 750,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Weighted-Average Assumptions Used under Black-Scholes/Monte Carlo (Detail) | Jun. 25, 2014 | Jun. 09, 2014 | Dec. 31, 2012 |
CNH EIP [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected Volatility | 51.70% | ||
Dividend yield | 0.00% | ||
Risk-free rate | 0.40% | ||
Option life (years) | 3 years 4 months 21 days | ||
Performance Shares [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected Volatility | 44.10% | 44.50% | |
Dividend yield | 2.70% | 2.60% | |
Risk-free rate | 1.68% | 1.69% |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Performance-Based Share Activity (Detail) - Performance Shares [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Shares | ||
Granted | 1,000,000 | 12,000,000 |
Weighted Average Grant-Date Fair Value | ||
Granted | $ 9.33 | $ 9.48 |
CNH Industrial EIP [Member] | ||
Shares | ||
Nonvested at beginning of year | 12,101,760 | |
Granted | 980,400 | |
Forfeited | (1,490,900) | |
Nonvested at end of year | 11,591,260 | 12,101,760 |
Weighted Average Grant-Date Fair Value | ||
Nonvested at beginning of year | $ 8.84 | |
Granted | 6.25 | |
Forfeited | 8.69 | |
Nonvested at end of year | $ 8.64 | $ 8.84 |
Share-Based Compensation - S121
Share-Based Compensation - Schedule of Restricted-Based Share Activity (Detail) - Restricted Stock Units [Member] - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Shares | ||||
Granted | 2,000,000 | 1,000,000 | ||
Weighted Average Grant-Date Fair Value | ||||
Granted | $ 8.60 | $ 9.21 | ||
CNH Industrial EIP [Member] | ||||
Shares | ||||
Nonvested at beginning of year | 3,512,139 | |||
Granted | 1,531,900 | |||
Forfeited | (158,186) | |||
Vested | (1,140,333) | |||
Nonvested at end of year | 3,745,520 | 3,512,139 | ||
Weighted Average Grant-Date Fair Value | ||||
Nonvested at beginning of year | $ 9.88 | |||
Granted | 8.08 | |||
Forfeited | 9.29 | |||
Vested | 10.21 | |||
Nonvested at end of year | $ 9.67 | $ 9.88 | ||
CNH EIP [Member] | ||||
Shares | ||||
Nonvested at beginning of year | 3,191,444 | |||
Granted | 0 | 0 | 0 | 700,000 |
Forfeited | (78,869) | |||
Vested | (3,112,575) | |||
Nonvested at end of year | 3,191,444 | |||
Weighted Average Grant-Date Fair Value | ||||
Nonvested at beginning of year | $ 7.82 | |||
Granted | $ 11.40 | |||
Forfeited | 8.79 | |||
Vested | $ 7.79 | |||
Nonvested at end of year | $ 7.82 |
Share-Based Compensation - Outs
Share-Based Compensation - Outstanding Stock Options (Detail) - CNH EIP [Member] | 12 Months Ended | |
Dec. 31, 2015USD ($)$ / sharesshares | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Options Outstanding, Aggregate Intrinsic Value | $ | $ 30,755 | [1] |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 30,755 | [1] |
Range of Exercise Price, $5.01-$10.00 [Member] | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Minimum Exercise Price | $ 5.01 | |
Maximum Exercise Price | $ 10 | |
Shares Outstanding | shares | 4,491,907 | |
Options Outstanding, Weighted-Average Contractual Life | 1 year 7 months 6 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 8.32 | |
Options Outstanding, Aggregate Intrinsic Value | $ | $ 30,755 | [1] |
Shares Exercisable | shares | 4,491,907 | |
Options Exercisable, Weighted-Average Contractual Life | 1 year 7 months 6 days | |
Options Exercisable, Weighted-Average Exercise Price | $ 8.32 | |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 30,755 | [1] |
Range of Exercise Price, $10.01-$15.00 [Member] | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Minimum Exercise Price | $ 10.01 | |
Maximum Exercise Price | $ 15 | |
Shares Outstanding | shares | 4,278,010 | |
Options Outstanding, Weighted-Average Contractual Life | 1 year 2 months 12 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 10.15 | |
Shares Exercisable | shares | 4,278,010 | |
Options Exercisable, Weighted-Average Contractual Life | 1 year 2 months 12 days | |
Options Exercisable, Weighted-Average Exercise Price | $ 10.15 | |
[1] | The difference between the exercise price of share-based compensation and the year-end market price of CNH Industrial common shares of $6.84. No amount is shown for awards with an exercise price that is greater than the year-end market price. |
Share-Based Compensation - O123
Share-Based Compensation - Outstanding Stock Options (Parenthetical) (Detail) | Dec. 31, 2015$ / shares |
CNH EIP [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Year-end market price of common shares | $ 6.84 |
Share-Based Compensation - S124
Share-Based Compensation - Schedule of Stock Option Activity (Detail) - CNH EIP [Member] | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Shares | |
Outstanding at beginning of year | shares | 10,861,553 |
Forfeited | shares | (1,033,560) |
Exercised | shares | (1,058,075) |
Outstanding at end of year | shares | 8,769,918 |
Exercisable at end of year | shares | 8,769,918 |
Weighted-Average Exercise Price | |
Outstanding at beginning of year | $ / shares | $ 9.03 |
Forfeited | $ / shares | 9.58 |
Exercised | $ / shares | 6.95 |
Outstanding at end of year | $ / shares | 9.21 |
Exercisable at end of year | $ / shares | $ 9.21 |
Share-Based Compensation - Shar
Share-Based Compensation - Share Activity Performance LTI (Detail) - Fiat Industrial, Performance LTI [Member] | 12 Months Ended |
Dec. 31, 2015€ / sharesshares | |
Shares | |
Nonvested at beginning of year | shares | 1,000,000 |
Vested | shares | (1,000,000) |
Nonvested at end of year | shares | |
Grant-Date Fair Value | |
Nonvested at beginning of year | € / shares | € 7.795 |
Vested | € / shares | € 7.795 |
Nonvested at end of year | € / shares |
Share-Based Compensation - S126
Share-Based Compensation - Share Activity Retention LTI (Detail) - Fiat Industrial, Retention LTI [Member] | 12 Months Ended |
Dec. 31, 2015€ / sharesshares | |
Shares | |
Nonvested at beginning of year | shares | 366,666 |
Vested | shares | (366,666) |
Nonvested at end of year | shares | |
Grant-Date Fair Value | |
Nonvested at beginning of year | € / shares | € 7.795 |
Vested | € / shares | € 7.795 |
Nonvested at end of year | € / shares |
Share-Based Compensation - A127
Share-Based Compensation - Additional Share Based Compensation Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Total intrinsic value of options exercised | $ 1 | $ 5 | $ 30 |
Fair value of shares vested | 36 | 32 | 50 |
Cash received from share award exercises | $ 8 | $ 10 | 63 |
Tax benefit of options exercised and shares vested | $ 3 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic EPS and Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Basic: | ||||
Net income attributable to CNH Industrial | $ 253 | $ 710 | $ 677 | |
Weighted average common shares outstanding—basic | 1,361 | 1,354 | 1,255 | |
Basic earnings per share | $ 0.19 | $ 0.52 | $ 0.54 | |
Diluted: | ||||
Net income attributable to CNH Industrial | $ 253 | $ 710 | $ 677 | |
Weighted average common shares outstanding—basic | 1,361 | 1,354 | 1,255 | |
Effect of dilutive securities (when dilutive): | ||||
Stock compensation plans | [1] | 2 | 6 | 2 |
Weighted average common shares outstanding—diluted | 1,363 | 1,360 | 1,257 | |
Diluted earnings per share | $ 0.19 | $ 0.52 | $ 0.54 | |
[1] | For the twelve months ended December 31, 2015, there were no shares outstanding excluded from the calculation of diluted earnings per share due to anti-dilutive impact. |
Earnings Per Share - Computa129
Earnings Per Share - Computation of Basic EPS and Diluted EPS (Parenthetical) (Detail) shares in Millions | 12 Months Ended |
Dec. 31, 2015shares | |
Earnings Per Share [Abstract] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 |
Accumulated Other Comprehens130
Accumulated Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | |||
Unrealized gain (loss) on cash flow hedges, Gross Amount | $ 154 | $ (215) | $ 134 |
Changes in retirement plans' funded status, Gross Amount | 191 | (337) | 197 |
Foreign currency translation, Gross Amount | (359) | 125 | (510) |
Unrealized gain (loss) on available for sale securities, Gross Amount | (2) | ||
Share of other comprehensive income (loss) of entities using the equity method, Gross Amount | (47) | (44) | (23) |
Other comprehensive income (loss), Gross Amount | (61) | (471) | (204) |
Unrealized gain (loss) on cash flow hedges, Income Taxes | (34) | 49 | (40) |
Changes in retirement plans' funded status, Income Taxes | (33) | 55 | (110) |
Unrealized gain (loss) on available for sale securities, Income Taxes | 1 | ||
Other comprehensive income (loss), Income Taxes | (67) | 104 | (149) |
Unrealized gain (loss) on cash flow hedges, Net Amount | 120 | (166) | 94 |
Changes in retirement plans’ funded status | 158 | (282) | 87 |
Foreign currency translation, Net Amount | (359) | 125 | (510) |
Unrealized gain (loss) on available for sale securities, Net Amount | (1) | ||
Share of other comprehensive income (loss) of entities using the equity method, Net Amount | (47) | (44) | (23) |
Other comprehensive loss, net of tax | $ (128) | $ (367) | $ (353) |
Accumulated Other Comprehens131
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | $ (1,736) | $ (1,373) | $ (911) | |
Other comprehensive income (loss), before reclassifications | (357) | (456) | (315) | |
Amounts reclassified from other comprehensive income (loss) | 230 | 93 | (19) | |
Other comprehensive income (loss) | [1] | (127) | (363) | (334) |
Purchase of noncontrolling interest | (128) | |||
Ending balance | (1,863) | (1,736) | (1,373) | |
Unrealized Gain (Loss) on Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (117) | 49 | (41) | |
Other comprehensive income (loss), before reclassifications | (28) | (201) | 144 | |
Amounts reclassified from other comprehensive income (loss) | 148 | 35 | (55) | |
Other comprehensive income (loss) | [1] | 120 | (166) | 89 |
Purchase of noncontrolling interest | 1 | |||
Ending balance | 3 | (117) | 49 | |
Change in Retirement Plans' Funded Status [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (1,105) | (826) | (810) | |
Other comprehensive income (loss), before reclassifications | 76 | (337) | 53 | |
Amounts reclassified from other comprehensive income (loss) | 82 | 58 | 38 | |
Other comprehensive income (loss) | [1] | 158 | (279) | 91 |
Purchase of noncontrolling interest | (107) | |||
Ending balance | (947) | (1,105) | (826) | |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (448) | (574) | (70) | |
Other comprehensive income (loss), before reclassifications | (358) | 126 | (492) | |
Other comprehensive income (loss) | [1] | (358) | 126 | (492) |
Purchase of noncontrolling interest | (12) | |||
Ending balance | (806) | (448) | (574) | |
Unrealized Gain (Loss) on Available for Sale Securities [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 2 | |||
Amounts reclassified from other comprehensive income (loss) | (2) | |||
Other comprehensive income (loss) | [1] | (2) | ||
Share of Other Comprehensive Income of Entities Using the Equity Method [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (66) | (22) | 8 | |
Other comprehensive income (loss), before reclassifications | (47) | (44) | (20) | |
Other comprehensive income (loss) | [1] | (47) | (44) | (20) |
Purchase of noncontrolling interest | (10) | |||
Ending balance | $ (113) | $ (66) | $ (22) | |
[1] | Excluded from the table above is other comprehensive loss allocated to noncontrolling interests of $(1), $(4) and $(19) for the years ended December 31, 2015, 2014 and 2013, respectively. |
Accumulated Other Comprehens132
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | |||
Other comprehensive income (loss) allocated to noncontrolling interests | $ (1) | $ (4) | $ (19) |
Accumulated Other Comprehens133
Accumulated Other Comprehensive Income (Loss) - Schedule of Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net sales | $ 24,677 | $ 31,196 | $ 32,632 |
Cost of goods sold | 20,357 | 25,534 | 26,551 |
Other, net | 625 | 399 | 328 |
Interest expense | 1,106 | 1,318 | 1,196 |
Income taxes | 360 | 467 | 671 |
Net income | 248 | 708 | $ 828 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income | 230 | 93 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Cash Flow Hedges [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net sales | (16) | (14) | |
Cost of goods sold | 211 | 7 | |
Other, net | 10 | 30 | |
Interest expense | 7 | 12 | |
Income taxes | (64) | ||
Net income | 148 | 35 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Change in Retirement Plans' Funded Status [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of actuarial losses | 102 | 82 | |
Amortization of prior service cost | (9) | (9) | |
Income taxes | (11) | (15) | |
Net income | $ 82 | $ 58 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)SegmentCustomer | Dec. 31, 2014USD ($)Customer | Dec. 31, 2013USD ($)Customer | |
Segment Reporting Information [Line Items] | |||
Number of segments | Segment | 5 | ||
Total revenues, Net | $ 25,912 | $ 32,555 | $ 33,836 |
Number of customer | Customer | 0 | 0 | 0 |
U.K. | |||
Segment Reporting Information [Line Items] | |||
Total revenues, Net | $ 1,008 | $ 1,054 | $ 993 |
Total long-lived assets | 253 | 244 | |
Rest of World and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues, Net | 24,904 | 31,501 | $ 32,843 |
Total long-lived assets | $ 11,320 | $ 11,473 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation from Operating Profit to Income Before Income Taxes of Unconsolidated Subsidiaries and Affiliates Under US GAAP (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting [Abstract] | |||
Operating profit | $ 1,635 | $ 2,199 | $ 2,277 |
Restructuring expenses | (84) | (184) | (71) |
Interest expenses of Industrial Activities, net of interest income and eliminations | (479) | (613) | (548) |
Other, net | (505) | (313) | (284) |
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates | $ 567 | $ 1,089 | $ 1,374 |
Segment Reporting - Reconcil136
Segment Reporting - Reconciliation from Operating Profit (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Operating profit | $ 1,635 | $ 2,199 | $ 2,277 |
Industrial Activities [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | 1,432 | 1,988 | 2,095 |
Industrial Activities [Member] | Operating Segments [Member] | Agricultural equipment [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | 952 | 1,770 | 2,008 |
Industrial Activities [Member] | Operating Segments [Member] | Construction Equipment [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | 90 | 79 | (97) |
Industrial Activities [Member] | Operating Segments [Member] | Commercial Vehicles Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | 283 | 29 | 74 |
Industrial Activities [Member] | Operating Segments [Member] | Powertrain [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | 186 | 223 | 187 |
Industrial Activities [Member] | Eliminations and other | |||
Segment Reporting Information [Line Items] | |||
Operating profit | (79) | (113) | (77) |
Financial services [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | 515 | 554 | 514 |
Financial services [Member] | Eliminations and other | |||
Segment Reporting Information [Line Items] | |||
Operating profit | $ (312) | $ (343) | $ (332) |
Segment Reporting - Revenue fro
Segment Reporting - Revenue from Operating Segments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | $ 24,677 | $ 31,196 | $ 32,632 |
Finance and interest income | 1,235 | 1,359 | 1,204 |
Net revenues | 25,912 | 32,555 | 33,836 |
Depreciation and amortization | 699 | 731 | 690 |
Expenditures for long-lived assets | 656 | 1,022 | 1,227 |
Agricultural equipment [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | 11,025 | 15,204 | 16,763 |
Depreciation and amortization | 303 | 288 | 269 |
Expenditures for long-lived assets | 308 | 408 | 542 |
Construction Equipment [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | 2,542 | 3,346 | 3,258 |
Depreciation and amortization | 70 | 85 | 77 |
Expenditures for long-lived assets | 47 | 65 | 72 |
Commercial Vehicles Segment [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | 9,542 | 10,888 | 11,278 |
Depreciation and amortization | 198 | 209 | 185 |
Expenditures for long-lived assets | 182 | 391 | 458 |
Powertrain [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | 3,560 | 4,464 | 4,412 |
Depreciation and amortization | 123 | 144 | 159 |
Expenditures for long-lived assets | 112 | 136 | 148 |
Industrial Activities [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | 24,677 | 31,198 | 32,661 |
Finance and interest income | 201 | 258 | 271 |
Net revenues | 24,878 | 31,456 | 32,932 |
Depreciation and amortization | 694 | 725 | 686 |
Expenditures for long-lived assets | 653 | 1,005 | 1,220 |
Industrial Activities [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | 24,677 | 31,198 | 32,661 |
Depreciation and amortization | 694 | 725 | 686 |
Expenditures for long-lived assets | 653 | 1,005 | 1,220 |
Industrial Activities [Member] | Eliminations and other | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | (1,992) | (2,704) | (3,050) |
Industrial Activities [Member] | Corporate Non Segment | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | (1) | (4) | |
Expenditures for long-lived assets | 4 | 5 | |
Financial services [Member] | |||
Segment Reporting Information [Line Items] | |||
Finance and interest income | 1,603 | 1,828 | 1,679 |
Net revenues | 1,603 | 1,828 | 1,679 |
Depreciation and amortization | 5 | 6 | 4 |
Expenditures for long-lived assets | 3 | 17 | 7 |
Financial services [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Finance and interest income | 1,603 | 1,828 | 1,679 |
Depreciation and amortization | 5 | 6 | 4 |
Expenditures for long-lived assets | 3 | 17 | 7 |
Financial services [Member] | Eliminations and other | |||
Segment Reporting Information [Line Items] | |||
Finance and interest income | $ (368) | $ (471) | $ (504) |
Segment Reporting - Revenue by
Segment Reporting - Revenue by Geographical Segments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Total revenues, Net | $ 25,912 | $ 32,555 | $ 33,836 |
UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Total revenues, Net | 5,533 | 7,472 | 7,687 |
FRANCE | |||
Segment Reporting Information [Line Items] | |||
Total revenues, Net | 2,580 | 2,913 | 3,030 |
ITALY | |||
Segment Reporting Information [Line Items] | |||
Total revenues, Net | 2,524 | 2,854 | 2,688 |
BRAZIL | |||
Segment Reporting Information [Line Items] | |||
Total revenues, Net | 1,670 | 3,708 | 4,750 |
GERMANY | |||
Segment Reporting Information [Line Items] | |||
Total revenues, Net | 1,565 | 1,845 | 1,677 |
CANADA | |||
Segment Reporting Information [Line Items] | |||
Total revenues, Net | 1,229 | 1,606 | 1,687 |
AUSTRALIA | |||
Segment Reporting Information [Line Items] | |||
Total revenues, Net | 846 | 926 | 1,015 |
SPAIN | |||
Segment Reporting Information [Line Items] | |||
Total revenues, Net | 810 | 807 | 666 |
ARGENTINA | |||
Segment Reporting Information [Line Items] | |||
Total revenues, Net | 768 | 570 | 937 |
POLAND | |||
Segment Reporting Information [Line Items] | |||
Total revenues, Net | 479 | 562 | 504 |
Others Countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues, Net | 6,900 | 8,238 | 8,202 |
Rest of World and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues, Net | $ 24,904 | $ 31,501 | $ 32,843 |
Segment Reporting - Long-lived
Segment Reporting - Long-lived Assets by Geographical Segments (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
US [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 5,202 | $ 4,913 |
ITALY | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 1,580 | 1,965 |
FRANCE | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 794 | 810 |
SPAIN | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 579 | 546 |
GERMANY | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 849 | 816 |
BRAZIL | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 371 | 490 |
CANADA | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 441 | 482 |
CHINA | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 313 | 292 |
Others Countries [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 1,191 | 1,159 |
Rest of World and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 11,320 | $ 11,473 |
Related Party Information - Add
Related Party Information - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 | |
EXOR S.p.A | |||
Related Party Transaction [Line Items] | |||
Percentage of common shares outstanding held by related parties | 41.30% | ||
Iveco-Oto Melara Societa Consortile [Member] | |||
Related Party Transaction [Line Items] | |||
Pledged guarantees on commitments | $ 203 | $ 277 | |
Brembo Group [Member] | |||
Related Party Transaction [Line Items] | |||
Cost of goods sold | $ 25 |
Related Party Information - Sch
Related Party Information - Schedule of Related Party Transactions (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
FCA Group [Member] | |||
Related Party Transaction [Line Items] | |||
Net sales | $ 762 | $ 943 | $ 904 |
Cost of goods sold | 463 | 551 | 631 |
Selling, general and administrative expenses | 161 | 234 | 275 |
Trade receivables | 14 | 27 | |
Trade payables | 136 | 139 | |
Subsidiaries and Affiliates [Member] | |||
Related Party Transaction [Line Items] | |||
Net sales | 700 | 843 | 718 |
Cost of goods sold | 430 | 564 | $ 505 |
Trade receivables | 72 | 155 | |
Trade payables | $ 156 | $ 144 |
Supplemental Information - Supp
Supplemental Information - Supplemental Information of Income Statement (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | |||
Net sales | $ 24,677 | $ 31,196 | $ 32,632 |
Finance and interest income | 1,235 | 1,359 | 1,204 |
Total Revenues | 25,912 | 32,555 | 33,836 |
Costs and Expenses | |||
Cost of goods sold | 20,357 | 25,534 | 26,551 |
Selling, general & administrative expenses | 2,317 | 2,925 | 3,094 |
Research and development expenses | 856 | 1,106 | 1,222 |
Restructuring expenses | 84 | 184 | 71 |
Interest expense | 1,106 | 1,318 | 1,196 |
Other, net | 625 | 399 | 328 |
Total Costs and Expenses | 25,345 | 31,466 | 32,462 |
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates | 567 | 1,089 | 1,374 |
Income taxes | 360 | 467 | 671 |
Equity income of unconsolidated subsidiaries and affiliates | 41 | 86 | 125 |
Net income | 248 | 708 | 828 |
Industrial Activities [Member] | |||
Revenues | |||
Net sales | 24,677 | 31,198 | 32,661 |
Finance and interest income | 201 | 258 | 271 |
Total Revenues | 24,878 | 31,456 | 32,932 |
Costs and Expenses | |||
Cost of goods sold | 20,357 | 25,536 | 26,580 |
Selling, general & administrative expenses | 2,032 | 2,568 | 2,764 |
Research and development expenses | 856 | 1,106 | 1,222 |
Restructuring expenses | 82 | 184 | 71 |
Interest expense | 678 | 857 | 799 |
Interest compensation to Financial Services | 314 | 357 | 352 |
Other, net | 497 | 290 | 251 |
Total Costs and Expenses | 24,816 | 30,898 | 32,039 |
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates | 62 | 558 | 893 |
Income taxes | 202 | 280 | 518 |
Equity income of unconsolidated subsidiaries and affiliates | 20 | 68 | 110 |
Results from intersegment investments | 368 | 362 | 343 |
Net income | 248 | 708 | 828 |
Financial services [Member] | |||
Revenues | |||
Finance and interest income | 1,603 | 1,828 | 1,679 |
Total Revenues | 1,603 | 1,828 | 1,679 |
Costs and Expenses | |||
Selling, general & administrative expenses | 285 | 357 | 330 |
Restructuring expenses | 2 | ||
Interest expense | 576 | 705 | 658 |
Other, net | 235 | 235 | 210 |
Total Costs and Expenses | 1,098 | 1,297 | 1,198 |
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates | 505 | 531 | 481 |
Income taxes | 158 | 187 | 153 |
Equity income of unconsolidated subsidiaries and affiliates | 21 | 18 | 15 |
Results from intersegment investments | 2 | (1) | |
Net income | $ 368 | $ 364 | $ 342 |
Supplemental Information - S143
Supplemental Information - Supplemental Information of Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ||||
Cash and cash equivalents | $ 5,384 | $ 5,163 | $ 5,567 | $ 5,199 |
Restricted cash | 927 | 978 | ||
Trade receivables | 580 | 1,054 | ||
Financing receivables | 19,001 | 21,472 | 21,976 | |
Inventories, net | 5,690 | 7,008 | ||
Property, plant and equipment, net | 6,481 | 6,865 | ||
Investments in unconsolidated subsidiaries and affiliates | 527 | 605 | ||
Equipment under operating leases | 1,835 | 1,518 | ||
Goodwill | 2,447 | 2,484 | 2,504 | |
Other intangible assets, net | 810 | 850 | ||
Deferred tax assets | 1,250 | 1,747 | ||
Derivative assets | 211 | 205 | ||
Other assets | 1,603 | 1,964 | ||
TOTAL ASSETS | 46,746 | 51,913 | ||
LIABILITIES AND EQUITY | ||||
Debt | 26,388 | 29,594 | ||
Trade payables | 5,342 | 5,982 | ||
Deferred tax liabilities | 334 | 452 | ||
Pension, postretirement and other postemployment benefits | 2,282 | 2,614 | ||
Derivative liabilities | 69 | 235 | ||
Other liabilities | 7,470 | 8,059 | ||
Total Liabilities | 41,885 | 46,936 | ||
Equity | 4,843 | 4,961 | 4,955 | 4,825 |
Redeemable noncontrolling interest | 18 | 16 | ||
TOTAL EQUITY AND LIABILITIES | 46,746 | 51,913 | ||
Industrial Activities [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 4,551 | 4,122 | 4,010 | 3,890 |
Restricted cash | 15 | 1 | ||
Trade receivables | 555 | 1,025 | ||
Financing receivables | 2,162 | 4,767 | ||
Inventories, net | 5,513 | 6,845 | ||
Property, plant and equipment, net | 6,479 | 6,862 | ||
Investments in unconsolidated subsidiaries and affiliates | 2,846 | 3,063 | ||
Equipment under operating leases | 10 | 20 | ||
Goodwill | 2,295 | 2,324 | ||
Other intangible assets, net | 793 | 828 | ||
Deferred tax assets | 1,087 | 1,508 | ||
Derivative assets | 205 | 198 | ||
Other assets | 1,303 | 1,502 | ||
TOTAL ASSETS | 27,814 | 33,065 | ||
LIABILITIES AND EQUITY | ||||
Debt | 8,304 | 11,520 | ||
Trade payables | 5,176 | 5,850 | ||
Deferred tax liabilities | 60 | 202 | ||
Pension, postretirement and other postemployment benefits | 2,263 | 2,594 | ||
Derivative liabilities | 62 | 221 | ||
Other liabilities | 7,088 | 7,701 | ||
Total Liabilities | 22,953 | 28,088 | ||
Equity | 4,843 | 4,961 | ||
Redeemable noncontrolling interest | 18 | 16 | ||
TOTAL EQUITY AND LIABILITIES | 27,814 | 33,065 | ||
Financial services [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 833 | 1,041 | $ 1,557 | $ 1,309 |
Restricted cash | 912 | 977 | ||
Trade receivables | 52 | 92 | ||
Financing receivables | 19,974 | 22,717 | ||
Inventories, net | 177 | 163 | ||
Property, plant and equipment, net | 2 | 3 | ||
Investments in unconsolidated subsidiaries and affiliates | 136 | 136 | ||
Equipment under operating leases | 1,825 | 1,498 | ||
Goodwill | 152 | 160 | ||
Other intangible assets, net | 17 | 22 | ||
Deferred tax assets | 163 | 239 | ||
Derivative assets | 6 | 9 | ||
Other assets | 527 | 781 | ||
TOTAL ASSETS | 24,776 | 27,838 | ||
LIABILITIES AND EQUITY | ||||
Debt | 21,219 | 24,086 | ||
Trade payables | 197 | 197 | ||
Deferred tax liabilities | 274 | 250 | ||
Pension, postretirement and other postemployment benefits | 19 | 20 | ||
Derivative liabilities | 7 | 16 | ||
Other liabilities | 605 | 675 | ||
Total Liabilities | 22,321 | 25,244 | ||
Equity | 2,455 | 2,594 | ||
TOTAL EQUITY AND LIABILITIES | $ 24,776 | $ 27,838 |
Supplemental Information - S144
Supplemental Information - Supplemental Information of Cash Flow (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net income | $ 248 | $ 708 | $ 828 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Depreciation and amortization expense, net of assets under operating lease and assets sold under buy-back commitments | 699 | 731 | 690 |
Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments | 447 | 409 | 413 |
(Gain) loss from disposal of assets | (2) | 8 | 25 |
Undistributed income of unconsolidated subsidiaries | 40 | 3 | (44) |
Other non-cash items | 331 | 254 | 196 |
Changes in operating assets and liabilities: | |||
Provisions | (48) | 121 | 107 |
Deferred income taxes | 119 | (39) | (59) |
Trade and financing receivables related to sales, net | 279 | (810) | (658) |
Inventories, net | 473 | (172) | (1,205) |
Trade payables | (161) | (862) | 963 |
Other assets and liabilities | 357 | 330 | 266 |
Net cash provided by operating activities | 2,782 | 681 | 1,522 |
Investing activities: | |||
Additions to retail receivables | (4,498) | (6,467) | (7,511) |
Collections of retail receivables | 5,146 | 6,506 | 6,043 |
Proceeds from sale of assets, net of assets sold under operating leases and assets sold under buy-back commitments | 11 | 25 | 7 |
Proceeds from sale of assets under operating leases and assets sold under buy-back commitments | 726 | 577 | 466 |
Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and sold under buy-back commitments | (656) | (1,022) | (1,227) |
Expenditures for assets under operating lease and assets sold under buy-back commitments | (1,851) | (1,814) | (1,439) |
Other | 190 | 236 | (127) |
Net cash used by investing activities | (932) | (1,959) | (3,788) |
Financing activities: | |||
Proceeds from long-term debt | 9,927 | 17,377 | 12,464 |
Payments of long-term debt | (10,668) | (15,323) | (9,988) |
Net increase (decrease) in other financial liabilities | 84 | (325) | 514 |
Dividends paid | (297) | (382) | (368) |
Other | 23 | 18 | (6) |
Net cash provided (used) by financing activities | (931) | 1,365 | 2,616 |
Effect of foreign exchange rate changes on cash and cash equivalents | (698) | (491) | 18 |
Increase (decrease) in cash and cash equivalents | 221 | (404) | 368 |
Cash and cash equivalents, beginning of year | 5,163 | 5,567 | 5,199 |
Cash and cash equivalents, end of year | 5,384 | 5,163 | 5,567 |
Industrial Activities [Member] | |||
Operating activities: | |||
Net income | 248 | 708 | 828 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Depreciation and amortization expense, net of assets under operating lease and assets sold under buy-back commitments | 694 | 725 | 686 |
Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments | 238 | 257 | 286 |
(Gain) loss from disposal of assets | (2) | (1) | 25 |
Undistributed income of unconsolidated subsidiaries | (104) | (181) | (108) |
Other non-cash items | 213 | 101 | 72 |
Changes in operating assets and liabilities: | |||
Provisions | (61) | 110 | 104 |
Deferred income taxes | 59 | (110) | (62) |
Trade and financing receivables related to sales, net | 354 | 285 | 306 |
Inventories, net | 507 | (187) | (1,225) |
Trade payables | (162) | (790) | 903 |
Other assets and liabilities | 114 | (104) | 395 |
Net cash provided by operating activities | 2,098 | 813 | 2,210 |
Investing activities: | |||
Proceeds from sale of assets, net of assets sold under operating leases and assets sold under buy-back commitments | 11 | 25 | 7 |
Proceeds from sale of assets under operating leases and assets sold under buy-back commitments | 320 | 319 | 194 |
Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and sold under buy-back commitments | (653) | (1,005) | (1,220) |
Expenditures for assets under operating lease and assets sold under buy-back commitments | (875) | (797) | (805) |
Other | 2,164 | 498 | 525 |
Net cash used by investing activities | 967 | (960) | (1,299) |
Financing activities: | |||
Proceeds from long-term debt | 650 | 3,356 | 1,339 |
Payments of long-term debt | (2,483) | (2,145) | (2,049) |
Net increase (decrease) in other financial liabilities | 36 | (198) | 265 |
Dividends paid | (297) | (382) | (368) |
Other | 23 | 18 | (6) |
Net cash provided (used) by financing activities | (2,071) | 649 | (819) |
Effect of foreign exchange rate changes on cash and cash equivalents | (565) | (390) | 28 |
Increase (decrease) in cash and cash equivalents | 429 | 112 | 120 |
Cash and cash equivalents, beginning of year | 4,122 | 4,010 | 3,890 |
Cash and cash equivalents, end of year | 4,551 | 4,122 | 4,010 |
Financial services [Member] | |||
Operating activities: | |||
Net income | 368 | 364 | 342 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Depreciation and amortization expense, net of assets under operating lease and assets sold under buy-back commitments | 5 | 6 | 4 |
Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments | 209 | 152 | 127 |
(Gain) loss from disposal of assets | 9 | ||
Undistributed income of unconsolidated subsidiaries | (17) | (20) | (8) |
Other non-cash items | 118 | 153 | 124 |
Changes in operating assets and liabilities: | |||
Provisions | 13 | 11 | 3 |
Deferred income taxes | 60 | 71 | 3 |
Trade and financing receivables related to sales, net | (50) | (1,101) | (943) |
Inventories, net | (34) | 15 | 20 |
Trade payables | 4 | (66) | 39 |
Other assets and liabilities | 214 | 434 | (129) |
Net cash provided by operating activities | 890 | 28 | (418) |
Investing activities: | |||
Additions to retail receivables | (4,498) | (6,467) | (7,511) |
Collections of retail receivables | 5,146 | 6,506 | 6,043 |
Proceeds from sale of assets under operating leases and assets sold under buy-back commitments | 406 | 258 | 272 |
Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and sold under buy-back commitments | (3) | (17) | (7) |
Expenditures for assets under operating lease and assets sold under buy-back commitments | (976) | (1,017) | (634) |
Other | (2,016) | (275) | (663) |
Net cash used by investing activities | (1,941) | (1,012) | (2,500) |
Financing activities: | |||
Proceeds from long-term debt | 9,277 | 14,021 | 11,125 |
Payments of long-term debt | (8,185) | (13,178) | (7,939) |
Net increase (decrease) in other financial liabilities | 48 | (127) | 249 |
Dividends paid | (207) | (160) | (270) |
Other | 43 | 13 | 11 |
Net cash provided (used) by financing activities | 976 | 569 | 3,176 |
Effect of foreign exchange rate changes on cash and cash equivalents | (133) | (101) | (10) |
Increase (decrease) in cash and cash equivalents | (208) | (516) | 248 |
Cash and cash equivalents, beginning of year | 1,041 | 1,557 | 1,309 |
Cash and cash equivalents, end of year | $ 833 | $ 1,041 | $ 1,557 |
Supplemental Condensed Conso145
Supplemental Condensed Consolidating Financial Information - Condensed Statements of Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Income Statements Captions [Line Items] | |||
Total Revenues | $ 25,912 | $ 32,555 | $ 33,836 |
Cost and Expenses: | |||
Cost of goods sold | 20,357 | 25,534 | 26,551 |
Selling, general and administrative expenses | 2,317 | 2,925 | 3,094 |
Research and development expenses | 856 | 1,106 | 1,222 |
Restructuring expenses | 84 | 184 | 71 |
Interest expense | 1,106 | 1,318 | 1,196 |
Other, net | 625 | 399 | 328 |
Total Costs and Expenses | 25,345 | 31,466 | 32,462 |
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates | 567 | 1,089 | 1,374 |
Income taxes | 360 | 467 | 671 |
Equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method | 41 | 86 | 125 |
Net income | 248 | 708 | 828 |
Net income (loss) attributable to noncontrolling interests | (5) | (2) | 151 |
Net income attributable to CNH Industrial N.V. | 253 | 710 | 677 |
CNH Industrial N.V. [Member] | |||
Condensed Income Statements Captions [Line Items] | |||
Total Revenues | 1,541 | 2,034 | 1,940 |
Cost and Expenses: | |||
Cost of goods sold | 1,283 | 1,750 | 1,633 |
Selling, general and administrative expenses | 133 | 136 | 136 |
Research and development expenses | 11 | 13 | 12 |
Restructuring expenses | 2 | 3 | |
Interest expense | 130 | 210 | 173 |
Interest compensation to Financial Services | 11 | 12 | 12 |
Other, net | 36 | 15 | 487 |
Total Costs and Expenses | 1,606 | 2,139 | 2,453 |
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates | (65) | (105) | (513) |
Income taxes | 13 | (101) | 56 |
Equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method | 331 | 714 | 1,246 |
Net income | 253 | 710 | 677 |
Net income attributable to CNH Industrial N.V. | 253 | 710 | 677 |
Case New Holland Industrial Inc. [Member] | |||
Condensed Income Statements Captions [Line Items] | |||
Total Revenues | 9 | 10 | 10 |
Cost and Expenses: | |||
Selling, general and administrative expenses | 2 | ||
Interest expense | 246 | 234 | 262 |
Other, net | (2) | (4) | 1 |
Total Costs and Expenses | 244 | 230 | 265 |
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates | (235) | (220) | (255) |
Income taxes | (85) | (71) | (95) |
Equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method | 425 | 918 | 1,056 |
Net income | 275 | 769 | 896 |
Net income attributable to CNH Industrial N.V. | 275 | 769 | 896 |
Guarantor Subsidiaries [Member] | |||
Condensed Income Statements Captions [Line Items] | |||
Total Revenues | 10,860 | 12,898 | 13,831 |
Cost and Expenses: | |||
Cost of goods sold | 9,039 | 10,269 | 11,016 |
Selling, general and administrative expenses | 495 | 652 | 706 |
Research and development expenses | 281 | 388 | 439 |
Restructuring expenses | 16 | 29 | 1 |
Interest expense | 162 | 140 | 136 |
Interest compensation to Financial Services | 184 | 201 | 194 |
Other, net | 199 | 185 | (195) |
Total Costs and Expenses | 10,376 | 11,864 | 12,297 |
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates | 484 | 1,034 | 1,534 |
Income taxes | 114 | 268 | 357 |
Equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method | 264 | 364 | 354 |
Net income | 634 | 1,130 | 1,531 |
Net income attributable to CNH Industrial N.V. | 634 | 1,130 | 1,531 |
All Other Subsidiaries [Member] | |||
Condensed Income Statements Captions [Line Items] | |||
Total Revenues | 19,509 | 24,283 | 25,516 |
Cost and Expenses: | |||
Cost of goods sold | 15,339 | 19,422 | 20,655 |
Selling, general and administrative expenses | 1,689 | 2,137 | 2,250 |
Research and development expenses | 564 | 705 | 771 |
Restructuring expenses | 66 | 152 | 70 |
Interest expense | 1,076 | 1,284 | 1,127 |
Other, net | 392 | 203 | 35 |
Total Costs and Expenses | 19,126 | 23,903 | 24,908 |
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates | 383 | 380 | 608 |
Income taxes | 318 | 371 | 353 |
Equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method | 62 | (32) | 522 |
Net income | 127 | (23) | 777 |
Net income (loss) attributable to noncontrolling interests | (5) | (2) | 151 |
Net income attributable to CNH Industrial N.V. | 132 | (21) | 626 |
Eliminations [Member] | |||
Condensed Income Statements Captions [Line Items] | |||
Total Revenues | (6,007) | (6,670) | (7,461) |
Cost and Expenses: | |||
Cost of goods sold | (5,304) | (5,907) | (6,753) |
Interest expense | (508) | (550) | (502) |
Interest compensation to Financial Services | (195) | (213) | (206) |
Total Costs and Expenses | (6,007) | (6,670) | (7,461) |
Equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method | (1,041) | (1,878) | (3,053) |
Net income | (1,041) | (1,878) | (3,053) |
Net income attributable to CNH Industrial N.V. | $ (1,041) | $ (1,878) | $ (3,053) |
Supplemental Condensed Conso146
Supplemental Condensed Consolidating Financial Information - Condensed Statements of Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements Captions [Line Items] | |||
Comprehensive income (loss) | $ 120 | $ 341 | $ 475 |
Comprehensive income (loss) attributable to noncontrolling interests | (7) | (6) | 132 |
Comprehensive income attributable to CNH Industrial N.V. | 127 | 347 | 343 |
CNH Industrial N.V. [Member] | |||
Condensed Financial Statements Captions [Line Items] | |||
Comprehensive income (loss) | 126 | 347 | 343 |
Comprehensive income attributable to CNH Industrial N.V. | 126 | 347 | 343 |
Case New Holland Industrial Inc. [Member] | |||
Condensed Financial Statements Captions [Line Items] | |||
Comprehensive income (loss) | 190 | 769 | 896 |
Comprehensive income attributable to CNH Industrial N.V. | 190 | 769 | 896 |
Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements Captions [Line Items] | |||
Comprehensive income (loss) | 398 | 454 | 1,764 |
Comprehensive income attributable to CNH Industrial N.V. | 398 | 454 | 1,764 |
All Other Subsidiaries [Member] | |||
Condensed Financial Statements Captions [Line Items] | |||
Comprehensive income (loss) | (653) | (794) | 473 |
Comprehensive income (loss) attributable to noncontrolling interests | (7) | (6) | 132 |
Comprehensive income attributable to CNH Industrial N.V. | (646) | (788) | 341 |
Eliminations [Member] | |||
Condensed Financial Statements Captions [Line Items] | |||
Comprehensive income (loss) | 59 | (435) | (3,001) |
Comprehensive income attributable to CNH Industrial N.V. | $ 59 | $ (435) | $ (3,001) |
Supplemental Condensed Conso147
Supplemental Condensed Consolidating Financial Information - Condensed Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets: | ||||
Cash and cash equivalents | $ 5,384 | $ 5,163 | $ 5,567 | $ 5,199 |
Receivables | 19,581 | 22,526 | ||
Inventories, net | 5,690 | 7,008 | ||
Property, plant and equipment, net | 6,481 | 6,865 | ||
Equipment on operating leases | 1,835 | 1,518 | ||
Investments in unconsolidated subsidiaries and affiliates | 527 | 605 | ||
Goodwill and intangibles | 3,257 | 3,334 | ||
Other | 3,991 | 4,894 | ||
TOTAL ASSETS | 46,746 | 51,913 | ||
Liabilities and Equity: | ||||
Debt | 26,388 | 29,594 | ||
Trade payables | 5,342 | 5,982 | ||
Other liabilities | 10,173 | 11,376 | ||
Total Equity | 4,843 | 4,961 | 4,955 | 4,825 |
TOTAL EQUITY AND LIABILITIES | 46,746 | 51,913 | ||
CNH Industrial N.V. [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 3 | 7 | 5 | 109 |
Deposits in subsidiaries’ cash management pools | 116 | 230 | ||
Receivables | 584 | 658 | ||
Inventories, net | 138 | 233 | ||
Property, plant and equipment, net | 80 | 75 | ||
Investments in unconsolidated subsidiaries and affiliates | 250 | 245 | ||
Investments in consolidated subsidiaries | 9,166 | 10,877 | ||
Goodwill and intangibles | 12 | 50 | ||
Other | 176 | 258 | ||
TOTAL ASSETS | 10,525 | 12,633 | ||
Liabilities and Equity: | ||||
Debt | 5,045 | 5,622 | ||
Trade payables | 221 | 307 | ||
Other liabilities | 457 | 1,782 | ||
Total Equity | 4,802 | 4,922 | ||
TOTAL EQUITY AND LIABILITIES | 10,525 | 12,633 | ||
Case New Holland Industrial Inc. [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 200 | |||
Receivables | 986 | 1,034 | ||
Investments in consolidated subsidiaries | 7,191 | 6,965 | ||
Other | 108 | (55) | ||
TOTAL ASSETS | 8,285 | 7,944 | ||
Liabilities and Equity: | ||||
Debt | 5,194 | 5,011 | ||
Trade payables | 112 | 18 | ||
Other liabilities | (82) | (69) | ||
Total Equity | 3,061 | 2,984 | ||
TOTAL EQUITY AND LIABILITIES | 8,285 | 7,944 | ||
Guarantor Subsidiaries [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 144 | 39 | 38 | 28 |
Deposits in subsidiaries’ cash management pools | 4,753 | 4,135 | ||
Receivables | 4,970 | 5,479 | ||
Inventories, net | 1,364 | 1,711 | ||
Property, plant and equipment, net | 1,108 | 1,186 | ||
Investments in unconsolidated subsidiaries and affiliates | 1 | |||
Investments in consolidated subsidiaries | 1,607 | 2,110 | ||
Goodwill and intangibles | 2,786 | 2,824 | ||
Other | 1,292 | 696 | ||
TOTAL ASSETS | 18,024 | 18,181 | ||
Liabilities and Equity: | ||||
Debt | 3,302 | 3,275 | ||
Trade payables | 2,083 | 2,257 | ||
Other liabilities | 3,365 | 3,272 | ||
Total Equity | 9,274 | 9,377 | ||
TOTAL EQUITY AND LIABILITIES | 18,024 | 18,181 | ||
All Other Subsidiaries [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 5,237 | 5,117 | $ 5,524 | $ 4,862 |
Receivables | 27,401 | 33,393 | ||
Inventories, net | 4,188 | 5,064 | ||
Property, plant and equipment, net | 5,293 | 5,604 | ||
Equipment on operating leases | 1,835 | 1,518 | ||
Investments in unconsolidated subsidiaries and affiliates | 277 | 359 | ||
Investments in consolidated subsidiaries | 794 | 1,530 | ||
Goodwill and intangibles | 459 | 460 | ||
Other | 2,619 | 5,164 | ||
TOTAL ASSETS | 48,103 | 58,209 | ||
Liabilities and Equity: | ||||
Debt | 30,067 | 34,947 | ||
Trade payables | 4,954 | 6,145 | ||
Other liabilities | 6,618 | 7,957 | ||
Total Equity | 6,464 | 9,160 | ||
TOTAL EQUITY AND LIABILITIES | 48,103 | 58,209 | ||
Eliminations [Member] | ||||
Assets: | ||||
Deposits in subsidiaries’ cash management pools | (4,869) | (4,365) | ||
Receivables | (14,360) | (18,038) | ||
Investments in consolidated subsidiaries | (18,758) | (21,482) | ||
Other | (204) | (1,169) | ||
TOTAL ASSETS | (38,191) | (45,054) | ||
Liabilities and Equity: | ||||
Debt | (17,220) | (19,261) | ||
Trade payables | (2,028) | (2,745) | ||
Other liabilities | (185) | (1,566) | ||
Total Equity | (18,758) | (21,482) | ||
TOTAL EQUITY AND LIABILITIES | $ (38,191) | $ (45,054) |
Supplemental Condensed Conso148
Supplemental Condensed Consolidating Financial Information - Condensed Statements of Cash Flow (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities: | |||
Net income | $ 248 | $ 708 | $ 828 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Depreciation and amortization | 1,146 | 1,140 | 1,103 |
Other, net | 1,388 | (1,167) | (409) |
Net cash provided by operating activities | 2,782 | 681 | 1,522 |
Investing activities: | |||
Expenditures for property, plant and equipment, equipment on operating lease, equipment sold under a buy-back commitment and intangible assets | (2,507) | (2,836) | (2,666) |
Net collections from retail receivables and related securitizations | 648 | 39 | (1,468) |
Other, net | 927 | 838 | 346 |
Net cash used by investing activities | (932) | (1,959) | (3,788) |
Financing Activities: | |||
Net increase (decrease) in indebtedness | (657) | 1,729 | 2,990 |
Dividends paid | (297) | (382) | (368) |
Other, net | 23 | 18 | (6) |
Net cash provided (used) by financing activities | (931) | 1,365 | 2,616 |
Effect of foreign exchange rate changes on cash and cash equivalents | (698) | (491) | 18 |
Increase (decrease) in cash and cash equivalents | 221 | (404) | 368 |
Cash and cash equivalents, beginning of year | 5,163 | 5,567 | 5,199 |
Cash and cash equivalents, end of year | 5,384 | 5,163 | 5,567 |
CNH Industrial N.V. [Member] | |||
Operating Activities: | |||
Net income | 253 | 710 | 677 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Depreciation and amortization | 10 | 14 | 10 |
Other, net | 52 | (429) | (392) |
Net cash provided by operating activities | 315 | 295 | 295 |
Investing activities: | |||
Expenditures for property, plant and equipment, equipment on operating lease, equipment sold under a buy-back commitment and intangible assets | (25) | (26) | (10) |
(Deposits in) withdrawals from subsidiaries’ cash management pools | 92 | (3) | |
Other, net | (114) | 294 | (1,929) |
Net cash used by investing activities | (47) | 268 | (1,942) |
Financing Activities: | |||
Net increase (decrease) in indebtedness | (205) | 1,602 | |
Dividends paid | (291) | (360) | (365) |
Other, net | 26 | 18 | 306 |
Net cash provided (used) by financing activities | (265) | (547) | 1,543 |
Effect of foreign exchange rate changes on cash and cash equivalents | (7) | (14) | |
Increase (decrease) in cash and cash equivalents | (4) | 2 | (104) |
Cash and cash equivalents, beginning of year | 7 | 5 | 109 |
Cash and cash equivalents, end of year | 3 | 7 | 5 |
Case New Holland Industrial Inc. [Member] | |||
Operating Activities: | |||
Net income | 275 | 769 | 896 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Other, net | (494) | (735) | (1,154) |
Net cash provided by operating activities | (219) | 34 | (258) |
Investing activities: | |||
Other, net | 288 | ||
Net cash used by investing activities | 288 | ||
Financing Activities: | |||
Net increase (decrease) in indebtedness | (7) | 208 | 58 |
Dividends paid | (1) | (249) | |
Other, net | (61) | 7 | |
Net cash provided (used) by financing activities | (69) | (34) | 58 |
Increase (decrease) in cash and cash equivalents | (200) | ||
Cash and cash equivalents, beginning of year | 200 | ||
Guarantor Subsidiaries [Member] | |||
Operating Activities: | |||
Net income | 634 | 1,130 | 1,531 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Depreciation and amortization | 207 | 212 | 180 |
Other, net | (284) | (574) | 696 |
Net cash provided by operating activities | 557 | 768 | 2,407 |
Investing activities: | |||
Expenditures for property, plant and equipment, equipment on operating lease, equipment sold under a buy-back commitment and intangible assets | (145) | (163) | (225) |
(Deposits in) withdrawals from subsidiaries’ cash management pools | (715) | (757) | (770) |
Other, net | 1,025 | (121) | (502) |
Net cash used by investing activities | 165 | (1,041) | (1,497) |
Financing Activities: | |||
Net increase (decrease) in indebtedness | 11 | (339) | (310) |
Dividends paid | (187) | (337) | (589) |
Other, net | (437) | 977 | |
Net cash provided (used) by financing activities | (613) | 301 | (899) |
Effect of foreign exchange rate changes on cash and cash equivalents | (4) | (27) | (1) |
Increase (decrease) in cash and cash equivalents | 105 | 1 | 10 |
Cash and cash equivalents, beginning of year | 39 | 38 | 28 |
Cash and cash equivalents, end of year | 144 | 39 | 38 |
All Other Subsidiaries [Member] | |||
Operating Activities: | |||
Net income | 127 | (23) | 777 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Depreciation and amortization | 929 | 914 | 913 |
Other, net | 1,586 | (1,078) | (1,276) |
Net cash provided by operating activities | 2,642 | (187) | 414 |
Investing activities: | |||
Expenditures for property, plant and equipment, equipment on operating lease, equipment sold under a buy-back commitment and intangible assets | (2,337) | (2,647) | (2,431) |
Net collections from retail receivables and related securitizations | 648 | 39 | (1,468) |
Other, net | 676 | (251) | 785 |
Net cash used by investing activities | (1,013) | (2,859) | (3,114) |
Financing Activities: | |||
Net increase (decrease) in indebtedness | (661) | 3,028 | 1,722 |
Dividends paid | (329) | (1,386) | (1,384) |
Other, net | 168 | 1,447 | 3,005 |
Net cash provided (used) by financing activities | (822) | 3,089 | 3,343 |
Effect of foreign exchange rate changes on cash and cash equivalents | (687) | (450) | 19 |
Increase (decrease) in cash and cash equivalents | 120 | (407) | 662 |
Cash and cash equivalents, beginning of year | 5,117 | 5,524 | 4,862 |
Cash and cash equivalents, end of year | 5,237 | 5,117 | 5,524 |
Eliminations [Member] | |||
Operating Activities: | |||
Net income | (1,041) | (1,878) | (3,053) |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Other, net | 528 | 1,649 | 1,717 |
Net cash provided by operating activities | (513) | (229) | (1,336) |
Investing activities: | |||
(Deposits in) withdrawals from subsidiaries’ cash management pools | 623 | 757 | 773 |
Other, net | (948) | 916 | 1,992 |
Net cash used by investing activities | (325) | 1,673 | 2,765 |
Financing Activities: | |||
Net increase (decrease) in indebtedness | (963) | (82) | |
Dividends paid | 511 | 1,950 | 1,970 |
Other, net | 327 | (2,431) | (3,317) |
Net cash provided (used) by financing activities | $ 838 | $ (1,444) | $ (1,429) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] shares in Thousands | Feb. 26, 2016shares | Feb. 18, 2016VEB / $ | Feb. 17, 2016VEF / $ | Jan. 29, 2016USD ($) |
Subsequent Event [Line Items] | ||||
Percentage added to the average of the highest price on each of the five trading days prior to the date of acquisition, to determine maximum price | 10.00% | |||
Percentage deducted to the average of the lowest price on each of the five trading days prior to the date of acquisition, to determine minimum price | 10.00% | |||
Common shares repurchased | shares | 800 | |||
Bolivar fuerte re-measurement exchange rate | 202.9 | 13.5 | ||
Maximum [Member] | ||||
Subsequent Event [Line Items] | ||||
Common shares to be repurchased, amount | $ | $ 300,000,000 | |||
Bolivar fuerte re-measurement exchange rate | 10 | |||
Minimum [Member] | ||||
Subsequent Event [Line Items] | ||||
Bolivar fuerte re-measurement exchange rate | 6.3 |