Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
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 | 1,361,630,903 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | |||
Net sales | $ 23,669 | $ 24,677 | $ 31,196 |
Finance and interest income | 1,203 | 1,235 | 1,359 |
Total Revenues | 24,872 | 25,912 | 32,555 |
Costs and Expenses | |||
Cost of goods sold | 19,539 | 20,357 | 25,534 |
Selling, general and administrative expenses | 2,262 | 2,317 | 2,925 |
Research and development expenses | 860 | 856 | 1,106 |
Restructuring expenses | 44 | 84 | 184 |
Interest expense | 1,028 | 1,106 | 1,318 |
Other, net | 1,148 | 625 | 399 |
Total Costs and Expenses | 24,881 | 25,345 | 31,466 |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | (9) | 567 | 1,089 |
Income tax (expense) | (298) | (360) | (467) |
Equity in income of unconsolidated subsidiaries and affiliates | 58 | 41 | 86 |
Net income (loss) | (249) | 248 | 708 |
Net income (loss) attributable to noncontrolling interests | 3 | (5) | (2) |
Net income (loss) attributable to CNH Industrial N.V. | $ (252) | $ 253 | $ 710 |
Earnings (loss) per share attributable to common shareholders | |||
Basic | $ (0.18) | $ 0.19 | $ 0.52 |
Diluted | (0.18) | 0.19 | 0.52 |
Cash dividends declared per common share | $ 0.148 | $ 0.214 | $ 0.277 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income (loss) | $ (249) | $ 248 | $ 708 |
Other comprehensive income (loss), net of tax | |||
Unrealized gain (loss) on cash flow hedges | (91) | 120 | (166) |
Changes in retirement plans’ funded status | (89) | 158 | (282) |
Foreign currency translation | 319 | (359) | 125 |
Share of other comprehensive loss of entities using the equity method | (40) | (47) | (44) |
Other comprehensive income (loss), net of tax | 99 | (128) | (367) |
Comprehensive income (loss) | (150) | 120 | 341 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 6 | (7) | (6) |
Comprehensive income (loss) attributable to CNH Industrial N.V. | $ (156) | $ 127 | $ 347 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 5,017 | $ 5,384 |
Restricted cash | 837 | 927 |
Trade receivables, net | 623 | 580 |
Financing receivables, net | 18,662 | 19,001 |
Inventories, net | 5,609 | 5,690 |
Property, plant and equipment, net | 6,397 | 6,481 |
Investments in unconsolidated subsidiaries and affiliates | 487 | 527 |
Equipment under operating leases | 1,907 | 1,835 |
Goodwill | 2,449 | 2,447 |
Other intangible assets, net | 787 | 810 |
Deferred tax assets | 937 | 1,250 |
Derivative assets | 95 | 211 |
Other assets | 1,740 | 1,534 |
Total Assets | 45,547 | 46,677 |
LIABILITIES AND EQUITY | ||
Debt | 25,276 | 26,301 |
Trade payables | 5,185 | 5,342 |
Deferred tax liabilities | 84 | 334 |
Pension, postretirement and other postemployment benefits | 2,276 | 2,282 |
Derivative liabilities | 249 | 69 |
Other liabilities | 8,005 | 7,488 |
Total Liabilities | 41,075 | 41,816 |
Redeemable noncontrolling interest | 21 | 18 |
Common shares, € 0.01, par value; outstanding 1,361,630,903 common shares and 412,268,203 special voting shares in 2016; and outstanding 1,362,048,989 common shares and 413,249,206 special voting shares in 2015 | 25 | 25 |
Treasury stock, at cost - 1,278,708 shares in 2016 and 0 shares in 2015 | (9) | |
Additional paid in capital | 4,408 | 4,399 |
Retained earnings | 1,787 | 2,241 |
Accumulated other comprehensive loss | (1,767) | (1,863) |
Noncontrolling interests | 7 | 41 |
Total Equity | 4,451 | 4,843 |
Total Liabilities and Equity | 45,547 | 46,677 |
Variable Interest Entity, Primary Beneficiary | ||
ASSETS | ||
Restricted cash | 776 | 849 |
Financing receivables, net | 10,263 | 11,361 |
Total Assets | 11,039 | 12,210 |
LIABILITIES AND EQUITY | ||
Debt | 10,418 | 11,592 |
Total Liabilities | $ 10,418 | $ 11,592 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - € / shares | Dec. 31, 2016 | 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 | 412,268,203 | 413,249,206 | 415,399,503 | 468,994,386 | |
Common shares, shares outstanding | 1,361,630,903 | 1,362,048,989 | 1,355,319,640 | 1,350,073,530 | |
Treasury stock, shares | 1,278,708 | 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities: | |||
Net income (loss) | $ (249) | $ 248 | $ 708 |
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 | 716 | 699 | 731 |
Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments | 545 | 447 | 409 |
(Gain) loss from disposal of assets | 4 | (2) | 8 |
Loss on repurchase of Notes | 60 | ||
Undistributed income of unconsolidated subsidiaries | 5 | 40 | 3 |
Other non-cash items | 195 | 331 | 254 |
Changes in operating assets and liabilities: | |||
Provisions | 46 | (48) | 121 |
Deferred income taxes | 65 | 119 | (39) |
Trade and financing receivables related to sales, net | (97) | 279 | (810) |
Inventories, net | 106 | 473 | (172) |
Trade payables | 96 | (161) | (862) |
Other assets and liabilities | 616 | 361 | 330 |
Net cash provided by operating activities | 2,108 | 2,786 | 681 |
Investing activities: | |||
Additions to retail receivables | (3,951) | (4,498) | (6,467) |
Collections of retail receivables | 4,569 | 5,146 | 6,506 |
Proceeds from the sale of assets, net of assets under operating leases and assets sold under buy-back commitments | 12 | 11 | 25 |
Proceeds from the sale of assets previously under operating leases and assets sold under buy-back commitments | 660 | 726 | 577 |
Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and assets sold under buy-back commitments | (503) | (656) | (1,022) |
Expenditures for assets under operating leases and assets sold under buy-back commitments | (1,631) | (1,851) | (1,814) |
Other | (77) | 174 | 225 |
Net cash used in investing activities | (921) | (948) | (1,970) |
Financing activities: | |||
Proceeds from long-term debt | 12,629 | 9,927 | 17,377 |
Payments of long-term debt | (13,770) | (10,668) | (15,323) |
Net increase (decrease) in other financial liabilities | (132) | 96 | (314) |
Dividends paid | (207) | (297) | (382) |
Other | (58) | 23 | 18 |
Net cash provided by (used in) financing activities | (1,538) | (919) | 1,376 |
Effect of foreign exchange rate changes on cash and cash equivalents | (16) | (698) | (491) |
Increase (decrease) in cash and cash equivalents | (367) | 221 | (404) |
Cash and cash equivalents, beginning of year | 5,384 | 5,163 | 5,567 |
Cash and cash equivalents, end of year | $ 5,017 | $ 5,384 | $ 5,163 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common shares [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] | Redeemable Noncontrolling Interest [Member] |
Beginning balance at Dec. 31, 2013 | $ 4,955 | $ 25 | $ 4,283 | $ 1,966 | $ (1,373) | $ 54 | ||
Beginning 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 income (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 | |||||||
Net income (loss), excluding redeemable non controlling interests | 241 | 253 | (12) | |||||
Net income (loss), redeemable non controlling interests | 7 | |||||||
Other comprehensive income (loss), net of tax | (128) | (127) | (1) | |||||
Dividend paid | (292) | (291) | (1) | (5) | ||||
Share-based compensation expense | 49 | 49 | ||||||
Issuance of common shares | 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 | ||||||
Net income (loss), excluding redeemable non controlling interests | (257) | (252) | (5) | |||||
Net income (loss), redeemable non controlling interests | 8 | |||||||
Other comprehensive income (loss), net of tax | 99 | 96 | 3 | |||||
Dividend paid | (202) | (201) | (1) | (5) | ||||
Acquisition of treasury stock | (14) | $ (14) | ||||||
Common shares issued from treasury stock for share-based compensation | 5 | (5) | ||||||
Share-based compensation expense | 3 | 3 | ||||||
Other changes | (21) | 11 | (1) | (31) | ||||
Ending balance at Dec. 31, 2016 | 4,451 | $ 25 | $ (9) | $ 4,408 | $ 1,787 | $ (1,767) | $ 7 | |
Ending balance at Dec. 31, 2016 | $ 21 | $ 21 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2016 | |
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. (CNH Industrial after the Merger) (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., 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. 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. (“Fiat”, 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 the Company’s 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, 2016 | |
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. Certain prior period balances have been reclassified to conform to the current period presentation resulting from the adoption of new accounting pronouncements. 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. There were no significant business combinations in 2015 or 2016. 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. Actual results could differ from these estimates. 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 $145 million, $155 million, and $218 million for the years ended December 31, 2016, 2015, and 2014, 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, 2016, 2015, and 2014, the Company recorded a net gain of $50 million, a net loss $581 million, and a net loss of $340 million, respectively. Included in the net gain (loss) in 2016, 2015, and 2014 were the re-measurement charges of $27 million, $150 million, and $71 million, respectively, on the Venezuelan bolivar fuerte (“Bs.F., or “bolivars”) rate described below, as well as a charge of $22 million and $40 million due to the devaluation of net monetary assets of Argentinian subsidiaries in 2016 and 2015. 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 $149 million, $289 million, and $132 million for the three years ended December 31, 2016, 2015, and 2014, 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. In January 2014, the Venezuelan government enacted changes affecting the country’s currency exchange and other controls, and established a new foreign currency administration, the National Center for Foreign Commerce (“CENCOEX”). CENCOEX assumed control of the sale and purchase of foreign currency in Venezuela, and established the official exchange rate of 6.3 bolivars to 1.0 U.S. dollar. Additionally, the government expanded the types of transactions that may be subject to the weekly auction mechanism under SICAD I. For a period of time, the Venezuelan government announced plans for SICAD II, which was intended to more closely resemble a market-driven exchange. In February 2015, the Venezuelan government announced that the two previously used currency conversion mechanisms (SICAD I and SICAD II) had been merged into a single mechanism called SICAD and introduced a new open market exchange rate system, SIMADI. The changes created a three-tiered system. In the third quarter of 2015, due to progressively deteriorating economic conditions in Venezuela, management determined that the SIMADI rate was the most appropriate legally available rate and remeasured the net monetary assets of CNH Industrial’s Venezuelan subsidiary, resulting in a pre- and after-tax charge of $150 million recorded in the line item “Other, net” in the Company’s consolidated statement of operations. In March 2016, the Venezuelan government devalued its currency and reduced its existing three-tiered system to a two-tiered system by eliminating the SICAD rate. The CENCOEX rate, which was the official rate available for purchases and sales of essential items, was changed to 10 bolivars per U.S. dollar from 6.3 and is now known as DIPRO. The Venezuelan government also announced that the SIMADI rate would be replaced by the DICOM rate, which is allowed to float freely and fluctuates based on supply and demand. As a result, management determined that the DICOM rate was the most appropriate legally available rate and remeasured the net monetary assets of the Company’s Venezuelan subsidiary at the end of each quarter of 2016, except for those cases in which the Group had a legally enforceable right of obtaining U.S. dollars at a different predetermined exchange rate. The DICOM exchange rate used by CNH Industrial at December 31, 2016 was 673.76 bolivars per U.S. dollar resulting in a re-measurement charge of $12 million in 2016. Furthermore, at December 31, 2016, following an assessment of the recoverability of a monetary asset for which CNH Industrial had a legally enforceable right of obtaining U.S. dollars at a different predetermined exchange rate, the Group re-measured that asset at the DICOM rate resulting in a remeasurement charge of $15 million. Additionally, CNH Industrial assessed for impairment a non-monetary asset resulting in the recognition of an impairment charge of $19 million attributable to the currency devaluation, while the market value in local currency did not decrease. As a result, in December 2016, CNH Industrial recorded a re-measurement and impairment charge for a total of $34 million in the line item “Other, Net”. CNH Industrial’s results of operations in Venezuela for the year ended December 31, 2016 were negligible as a percentage of both CNH Industrial’s net revenues and trading profit. As of December 31, 2016, 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 $84 million. The functional currency of CNH Industrial’s Argentinian subsidiaries is the U.S. dollar. At the end of each period, CNH Industrial re-measures the net monetary assets of its Argentinian subsidiaries from the Argentine Peso into the U.S. dollar. In 2016, CNH Industrial recorded a charge of $22 million following the re-measurement of such net monetary assets. At December 31, 2015, CNH Industrial held $50 million in principal amount of bonds offered to importers by the Argentinian government in order to help importers settle their backlog of payments. These bonds were regularly repaid by the government during 2016. 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 $930 million, $945 million, and $944 million for the years ended December 31, 2016, 2015, and 2014, respectively. For 2016, the amount includes the charge of $60 million paid on repurchase of portions of Case New Holland Industrial Inc. 7.875% Notes due 2017. CNH Industrial paid taxes of $104 million, $345 million, and $744 million in 2016, 2015, and 2014, 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 the Company’s 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 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 2016 and 2015, 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. Impairment of Long-Lived Assets, Goodwill and Other Intangible Assets 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. 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 Debt Issuance Costs In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements Interest—Imputation of Interest Going Concern In August 2014, the FASB issued ASU 2014-15, Uncertainties About an Entity’s Ability to Continue as a Going Concern 2016 Not Yet Adopted Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC 606) The Company plans to adopt the new standard effective January 1, 2018. The Company is currently evaluating which transition method to elect. The Company is still evaluating the overall effect the adoption of this standard will have, but in its implementation efforts to date has not identified any matters that it currently believes would result in a material effect on its consolidated net income/(loss), net equity or cash flows. Inventory In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory Financial Instruments In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities Financial Instruments - Overall In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments Financial Instruments - Credit Losses Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Lease |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Receivables | Note 3: Receivables Trade Receivables, net As of December 31, 2016 and 2015, the Company had trade receivables of $623 million and $580 million, respectively. Trade receivables are shown net of allowances for doubtful accounts of $104 million and $174 million at December 31, 2016 and 2015 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, 2016 and 2015 is as follows: 2016 2015 (in millions) Retail $ 9,949 $ 10,344 Wholesale 8,583 8,611 Other 130 46 Total $ 18,662 $ 19,001 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 2016, 2015 or 2014 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 the Company’s 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, 2016 are as follows: Amount (in millions) 2017 $ 11,171 2018 2,396 2019 2,034 2020 1,389 2021 1,479 2022 and thereafter 193 Total $ 18,662 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, 2016 and 2015 is as follows (in millions): 2016 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 $ 27 $ — $ — $ 27 $ 7,172 $ 7,199 $ 32 $ 7,231 EMEA — — — — 348 348 — 348 LATAM 14 — — 14 1,662 1,676 73 1,749 APAC 1 — — 1 620 621 — 621 Total Retail $ 42 $ — $ — $ 42 $ 9,802 $ 9,844 $ 105 $ 9,949 Wholesale NAFTA $ — $ — $ — $ — $ 3,591 $ 3,591 $ 39 $ 3,630 EMEA 29 2 — 31 3,847 3,878 23 3,901 LATAM — — — — 594 594 2 596 APAC 2 — 6 8 448 456 — 456 Total Wholesale $ 31 $ 2 $ 6 $ 39 $ 8,480 $ 8,519 $ 64 $ 8,583 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 Allowance for credit losses activity for the three years ended December 31, 2016, 2015 and 2014 is as follows (in millions): December 31, 2016 Retail Wholesale Other Total Opening balance $ 394 $ 158 $ — $ 552 Provision 52 60 — 112 Charge-offs, net of recoveries (82 ) (14 ) — (96 ) Foreign currency translation and other 10 (4 ) — 6 Ending balance 374 200 — 574 Ending balance: Individually evaluated for impairment 179 149 — 328 Ending balance: Collectively evaluated for impairment 195 51 — 246 Receivables: Ending balance 9,949 8,583 130 18,662 Ending balance: Individually evaluated for impairment 317 491 — 808 Ending balance: Collectively evaluated for impairment $ 9,632 $ 8,092 $ 130 $ 17,854 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 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. 2016 2015 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 EMEA $ 90 $ 90 $ — $ 74 $ 74 $ 74 $ — $ 79 LATAM $ — $ — $ — $ — $ — $ — $ — $ — APAC $ — $ — $ — $ — $ — $ — $ — $ — Wholesale NAFTA $ — $ — $ — $ — $ — $ — $ — $ — EMEA $ — $ — $ — $ — $ 33 $ 33 $ — $ 35 LATAM $ — $ — $ — $ — $ — $ — $ — $ — APAC $ — $ — $ — $ — $ — $ — $ — $ — With an allowance recorded Retail NAFTA $ 31 $ 30 $ 18 $ 31 $ 54 $ 53 $ 18 $ 52 EMEA $ 171 $ 171 $ 143 $ 195 $ 238 $ 238 $ 167 $ 263 LATAM $ 23 $ 23 $ 17 $ 23 $ — $ — $ — $ — APAC $ 2 $ 2 $ 1 $ 2 $ 9 $ 9 $ 2 $ 12 Wholesale NAFTA $ 44 $ 43 $ 4 $ 46 $ 82 $ 82 $ 3 $ 92 EMEA $ 420 $ 420 $ 131 $ 378 $ 607 $ 607 $ 95 $ 657 LATAM $ 22 $ 15 $ 12 $ 18 $ 25 $ 21 $ 7 $ 22 APAC $ 5 $ 5 $ 2 $ 18 $ 20 $ 20 $ 20 $ 18 Total Retail $ 317 $ 316 $ 179 $ 325 $ 416 $ 414 $ 187 $ 443 Wholesale $ 491 $ 483 $ 149 $ 460 $ 767 $ 763 $ 125 $ 824 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 December 31, 2016, the Company had approximately 658 retail and finance lease receivable contracts classified as TDRs in NAFTA, of which the pre-modification value was $28 million and the post-modification value was $27 million. The court has determined the concession in 238 of these cases. The pre-modification value of these contracts was $4 million and the post-modification value was $4 million. 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. 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, 2016 and 2015. For the years ended December 31, 2016 and 2015, the Company had approximately $23 million and $77 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, 2016 and 2015. For the years ended December 31, 2016 and 2015, the Company had approximately $19 million and $25 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, 2016 and 2015. As of December 31, 2016 and 2015, 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, 2016 and 2015, the carrying amount of such restricted assets included in financing receivables above are the following (in millions): Restricted Receivables 2016 2015 Retail note and finance lease receivables $ 7,140 $ 7,695 Wholesale receivables 6,445 6,189 Total $ 13,585 $ 13,884 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 consist of the following: 2016 2015 (in millions) Raw materials $ 1,185 $ 1,254 Work-in-process 757 747 Finished goods 3,667 3,689 Total Inventories $ 5,609 $ 5,690 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, and 2015 is as follows: 2016 2015 (in millions) Land and industrial buildings $ 3,075 $ 3,056 Plant, machinery and equipment 7,959 7,857 Assets sold with buy-back commitment 3,021 2,775 Construction in progress 131 191 Other 782 799 Gross property, plant and equipment 14,968 14,678 Accumulated depreciation (8,571 ) (8,197 ) Net property, plant and equipment $ 6,397 $ 6,481 A summary of property, plant and equipment recorded under capital leases¹ as of December 31, 2016, and 2015 is as follows: 2016 2015 (in millions) Gross capital leases ² $ 169 $ 139 Accumulated depreciation (53 ) (50 ) Net capital leases $ 116 $ 89 ( 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 $884 million, $824 million, and $873 million for the years ended December 31, 2016, 2015, and 2014, respectively. Excluding depreciation for assets sold with buy-back commitments, depreciation expenses totaled $605 million, $592 million, and $623 million for the years ended December 31, 2016, 2015, and 2014, respectively. Commercial Vehicles recognized an impairment loss of $26 million, $18 million and $22 million on assets sold with a buy-back commitment for the years ended December 31, 2016, 2015, and 2014, respectively. The losses are recognized in “Cost of goods sold.” The Company had contractual commitments of $119 million and $124 million for the acquisition of property, plant and equipment at December 31, 2016 and 2015, respectively. |
Investments in Unconsolidated S
Investments in Unconsolidated Subsidiaries and Affiliates | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 is as follows: 2016 2015 (in millions) Equity method $ 479 $ 519 Cost method 8 8 Total $ 487 $ 527 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, 2016 2015 2014 (in millions) Net revenue $ 3,670 $ 3,911 $ 4,849 Income before taxes $ 99 $ 127 $ 251 Net income $ 48 $ 68 $ 194 As of December 31, 2016 2015 (in millions) Total Assets $ 6,919 $ 6,867 Total Liabilities $ 5,758 $ 5,545 Total Equity $ 1,161 $ 1,322 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). |
Equipment on Operating Leases
Equipment on Operating Leases | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 is as follows: 2016 2015 (in millions) Equipment on operating leases $ 2,253 $ 2,127 Accumulated depreciation (346 ) (292 ) Net equipment on operating leases $ 1,907 $ 1,835 Depreciation expense on equipment on operating leases is recorded in “Other, net” and amounted to $267 million, $215 million and $159 million for the years ended December 31, 2016, 2015, and 2014, respectively. Lease payments owed to CNH Industrial for equipment under non-cancelable operating leases as of December 31, 2016, are as follows: Amount (in millions) 2017 $ 176 2018 114 2019 44 2020 17 2021 5 Beyond 5 years — Total $ 356 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 are as follows: Agricultural Equipment Construction Equipment Commercial Vehicles Powertrain Financial Services Total (in millions) Balance at January 1, 2015 $ 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 Impact of foreign exchange 3 — (2 ) — 1 2 Balance at December 31, 2016 $ 1,648 $ 588 $ 55 $ 5 $ 153 $ 2,449 Goodwill and other indefinite-lived intangible assets are tested for impairment annually or more frequently if a triggering event occurs. In 2016 and 2015, 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, 2016, 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, 2016, the estimated fair values of the Agricultural Equipment and Financial Services reporting units exceeded the carrying values by approximately 70% and 29%, respectively. The Construction Equipment reporting unit had an excess of fair value over carrying value of approximately 24%. Although the excess of fair value over carrying value is over 20%, the Construction Equipment 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 3.9 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, 2016, and 2015, the Company’s other intangible assets and related accumulated amortization consisted of the following: 2016 2015 Weighted Avg. Life Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in millions) Other intangible assets subject to amortization: Dealer networks 15 $ 316 $ 168 $ 148 $ 289 $ 143 $ 146 Patents, concessions and licenses and other 5-25 1,649 1,284 365 1,569 1,187 382 1,965 1,452 513 1,858 1,330 528 Other intangible assets not subject to amortization: Trademarks 274 — 274 282 — 282 Total Other intangible assets $ 2,239 $ 1,452 $ 787 $ 2,140 $ 1,330 $ 810 CNH Industrial recorded amortization expense of $111 million, $107 million, and $108 million during 2016, 2015, and 2014, 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: $101 million in 2017; $94 million in 2018; $81 million in 2019, $55 million in 2020; and $44 million in 2021. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, available committed unsecured facilities expiring after twelve months amounted to $2.9 billion ($3.0 billion at December 31, 2015). In 2016, the Company signed a renewal of a five-year committed revolving credit facility for €1.75 billion. The renewal extends the maturity of the previous €1.75 billion committed revolving credit facility from 2019 until 2021. The €1.75 billion ($1.8 billion at year end 2016 exchange rate) facility includes financial covenants 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, 2016, the Company was in compliance with all covenants in the revolving credit facility. Debt A summary of debt as of December 31, 2016 and 2015, including drawings under credit lines, is as follows: 2016 2015 Industrial Activities Financial Services Consolidated Industrial Activities Financial Services Consolidated (in millions) Bonds: Payable in 2016, interest rate of 7.250% $ — $ — $ — $ 254 $ — $ 254 Payable in 2017, interest rate of 7.875% 636 — 636 1,500 — 1,500 Payable in 2018, interest rate of 6.250% 1,265 — 1,265 1,306 — 1,306 Payable in 2019, interest rate of 2.750% 1,054 — 1,054 1,089 — 1,089 Payable in 2021, interest rate of 2.875% 738 — 738 762 — 762 Payable in 2023, interest rate of 2.875% 527 — 527 — — — Payable in 2023, interest rate of 4.500% 600 — 600 — — — Payable in 2025, interest rate of 3.500% 105 — 105 109 — 109 Payable in 2028, interest rate of 3.875% 53 — 53 — — — Payable in 2016, interest rate of 6.250% — — — — 500 500 Payable in 2017, interest rate of 3.250% — 500 500 — 500 500 Payable in 2018, interest rate of 3.625% — 600 600 — 600 600 Payable in 2018, interest rate of 3.875% — 600 600 — 600 600 Payable in 2019, interest rate of 3.375% — 500 500 — 500 500 Payable in 2020, interest rate of 4.375% — 600 600 — 600 600 Payable in 2021, interest rate of 4.875% — 500 500 — — — Payable in 2021, interest rate of 3.875% — 400 400 — — — Hedging effects, bond premium/discount, and unamortized issuance costs (34 ) (31 ) (65 ) (11 ) (20 ) (31 ) Total Bonds $ 4,944 $ 3,669 $ 8,613 $ 5,009 $ 3,280 $ 8,289 Asset-backed debt 8 11,776 11,784 13 12,986 12,999 Other Debt 1,742 3,137 4,879 2,192 2,821 5,013 Intersegment debt 997 1,479 — 1,046 2,089 — Total Debt $ 7,691 $ 20,061 $ 25,276 $ 8,260 $ 21,176 $ 26,301 The weighted-average interest rate on consolidated debt at December 31, 2016, and 2015 was 3.2% and 3.3%, respectively. 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 April 2016, CNH Industrial Finance Europe S.A. issued €50 million of notes as a private placement, due in 2028 and bearing fixed interest at a rate of 3.875% (the “3.875% CIFE Notes”). The 3.875% CIFE Notes have been issued under the €10 billion Global Medium Term Note Programme unconditionally and irrevocably guaranteed by CNH Industrial N.V. In May 2016, CNH Industrial Finance Europe S.A. issued €500 million of notes at an annual fixed rate of 2.875% (the “2.875% Notes”) due May 2023. The 2.875% 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 August and December of 2016, Case New Holland Industrial Inc. repurchased $450 million and $414 million, respectively, in aggregate principal amount of its 7.875% notes following a cash tender offer announced in the same months. 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. These notes matured and were repaid in 2016. 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 2018”) due in 2018. The 3.875% Notes due 2018 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. In March 2016, CNH Industrial Capital LLC issued $500 million of debt securities at an annual fixed rate of 4.875% (the “4.875% Notes”) due in April 2021. The 4.875% Notes are fully and unconditionally guaranteed by certain wholly owned subsidiaries of the issuer. In August 2016, CNH Industrial N.V. issued $600 million of notes at a semi-annual interest rate of 4.500% (the “4.500% Notes) due August 2023. The 4.500% Notes are fully and unconditionally guaranteed by certain wholly owned subsidiaries of the issuer. In October 2016, CNH Industrial Capital LLC issued $400 million of debt securities at an annual fixed rate of 3.875% (the “3.875% Notes due 2021”) due in October 2021. The 3.875% Notes due 2021 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 the Company’s 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. Other debt consists primarily of borrowings from banks which are at various terms and rates. Included in Other Debt of Financial Services is approximately $1.4 billion and $1.1 billion at December 31, 2016 and 2015, respectively, of funding provided by the Brazilian development agency, Banco Nacional de Desenvolvimento Econômico e Social (BNDES). The program provides subsidized funding to financial institutions to be loaned to customers to support the purchase of agricultural or construction machinery in accordance with the program. A summary of the minimum annual repayments of debt as of December 31, 2016, for 2017 and thereafter is as follows: Industrial Activities Financial Services Consolidated (in millions) 2017 $ 1,331 $ 8,948 $ 10,279 2018 1,640 4,095 5,735 2019 1,504 2,365 3,869 2020 90 1,811 1,901 2021 763 1,198 1,961 2022 and thereafter 1,366 165 1,531 Intersegment 997 1,479 — Total $ 7,691 $ 20,061 $ 25,276 Please refer to “Note 14: Financial Instruments” for fair value information on debt. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10: Income Taxes CNH Industrial N.V. and its subsidiaries have substantial worldwide operations. 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, 2016 of $298 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, 2016, 2015, and 2014 are as follows: 2016 2015 2014 (in millions) Parent country source $ (73 ) $ 11 $ (12 ) Foreign sources 64 556 1,101 Income (loss) before taxes and equity in income of unconsolidated subsidiaries and affiliates $ (9 ) $ 567 $ 1,089 The provision for income taxes for the years ended December 31, 2016, 2015 and 2014 consisted of the following: 2016 2015 2014 (in millions) Current income taxes $ 229 $ 263 $ 489 Deferred income taxes 69 97 (22 ) Total income tax provision $ 298 $ 360 $ 467 CNH Industrial N.V. is incorporated in the Netherlands, but the Company is a tax resident of the United Kingdom. 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 22% in 2014 and 20% in 2015 and 2016. A reconciliation of CNH Industrial’s income tax expense for the years ended December 31, 2016, 2015 and 2014 is as follows: 2016 2015 2014 (in millions) Tax provision at the parent statutory rate $ (2 ) $ 115 $ 234 Foreign income taxed at different rates (11 ) 56 149 Change in valuation allowance 133 111 148 Italian IRAP taxes 22 6 38 Tax contingencies (2 ) 26 (60 ) Tax credits and incentives (88 ) (43 ) (83 ) Venezuela remeasurement and impairment charges 16 51 — Non-deductible EC Settlement 160 — — Change in tax rate or law 14 23 — Withholding taxes 11 8 7 Other 45 7 34 Total income tax provision $ 298 $ 360 $ 467 The 2016 effective tax rate was impacted by the non-tax deductible charge of $551 million incurred in the first half of 2016 for the European Commission settlement. For more information on the European Commission Settlement, see “Note 13, Commitments and contingencies”. During December 2016, the Company completed a corporate reorganization of its Latin American operations, resulting in a $59 million charge to tax expense, comprised of $58 million related to changes in valuation allowances booked against deferred tax assets in Brazil and Argentina and $1 million related to certain other basis adjustments. At December 31, 2016, 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 $50 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 $8 million of deferred taxes as of December 31, 2016. The repatriation of undistributed earnings to the United Kingdom is generally exempt from United Kingdom income taxes under a full participation exemption. Deferred Income Tax Assets and Liabilities The components of net deferred tax assets as of December 31, 2016 and 2015 are as follows: 2016 2015 (in millions) Deferred tax assets: Inventories $ 96 $ 89 Warranty and campaigns 183 156 Allowance for credit losses 180 162 Marketing and sales incentive programs 326 347 Other risk and future charges reserve 216 200 Pension, postretirement and postemployment benefits 553 580 Measurement of derivative financial instruments 36 — Research and development costs 423 395 Other reserves 359 400 Tax credits and loss carry forwards 767 712 Less: Valuation allowances (1,490 ) (1,361 ) Total deferred tax assets $ 1,649 $ 1,680 Deferred tax liabilities: Property, plant and equipment 481 432 Measurement of derivative financial instruments — 2 Other 315 330 Total deferred tax liabilities 796 764 Net deferred tax assets $ 853 $ 916 Net deferred tax assets are reflected in the accompanying consolidated balance sheets as of December 31, 2016 and 2015 as follows: 2016 2015 (in millions) Deferred tax assets $ 937 $ 1,250 Deferred tax liabilities (84 ) (334 ) Net deferred tax assets $ 853 $ 916 Valuation Allowances As of December 31, 2016, the Company has valuation allowances of $1,490 million against certain deferred tax assets, including tax loss carry forwards, tax credits and other deferred tax assets. These valuation allowances are primarily attributable to operations in Brazil, Germany, Italy and the United Kingdom. CNH Industrial has gross tax loss carry forwards in several tax jurisdictions. The years in which these tax losses expire are as follows: $37 million in 2017; $141 million in 2018; $155 million in 2019; $115 million in 2020; $563 million in 2021 and beyond. CNH Industrial also has tax loss carry forwards of approximately $3 billion with indefinite lives. CNH Industrial has tax credit carry forwards mainly from the U.S. The years in which these tax credits expire are as follows: $2 million in 2019; $8 million in 2020; $91 million in 2021 and beyond. Uncertain Tax Positions The Company files income tax returns in multiple jurisdictions and is subject to examination by taxing authorities throughout the world. The Company has open tax years from 2003 to 2016. Due to the global nature of the Company’s business, transfer pricing disputes may arise and the Company may seek correlative relief through competent authority processes. A reconciliation of the gross amounts of tax contingencies at the beginning and end of the year is as follows: 2016 2015 (in millions) Balance, beginning of year $ 325 $ 343 Additions based on tax positions related to the current year 30 31 Additions for tax positions of prior years 70 46 Reductions for tax positions of prior years (65 ) (72 ) Reductions for tax positions as a result of lapse of statute (10 ) (10 ) Settlements (32 ) (13 ) Balance, end of year $ 318 $ 325 As of December 31, 2016, there are $143 million of unrecognized tax benefits that if recognized would affect the effective tax rate. The Company recognizes interest and penalties accrued related to tax contingencies as part of the income tax provision. During the years ended December 31, 2016, 2015 and 2014, the Company recognized expense of approximately $7 million, $2 million and $(8) million for income tax related interest and penalties, respectively. The Company had approximately $12 million, $16 million and $17 million of income tax related interest and penalties accrued at December 31, 2016, 2015and 2014, respectively. At December 31, 2016, it is not reasonably possible to estimate the expected change to the total amount of unrealized benefit in the next twelve months. The Company does not believe the resolution of any outstanding tax examinations will have a material adverse effect on the Company’s financial position or its results of operations. |
Employee Benefit Plans and Post
Employee Benefit Plans and Postretirement Benefits | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, 2015, and 2014, CNH Industrial recorded expense of $181 million, $185 million, and $244 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 the Company’s 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, 2016 and 2015: Pension Healthcare ˡ Other ˡ 2016 2015 2016 2015 2016 2015 (in millions) Change in benefit obligations: Beginning benefit obligation $ 3,281 $ 3,619 $ 1,157 $ 1,243 $ 423 $ 526 Service cost 30 30 7 8 13 15 Interest cost 87 112 39 48 4 5 Plan participants’ contributions 3 3 8 9 — — Actuarial loss (gain) 285 (159 ) (37 ) (64 ) 22 (37 ) Gross benefits paid (221 ) (190 ) (71 ) (80 ) (31 ) (45 ) Plan amendments (6 ) — — — — — Currency translation adjustments and other (271 ) (134 ) 2 (7 ) (13 ) (41 ) Ending benefit obligation $ 3,188 3,281 $ 1,105 1,157 $ 418 423 Change in the fair value of plan assets: Beginning plan assets $ 2,480 2,686 $ 105 107 $ — — Actual return on plan assets 194 (9 ) 8 — — — Employer contributions 35 27 — — — — Plan participants’ contributions 3 3 — — — — Gross benefits paid (193 ) (161 ) (2 ) (2 ) — — Currency translation adjustments and other (191 ) (66 ) — — — — Ending plan assets 2,328 2,480 111 105 — — Funded status: $ (860 ) $ (801 ) $ (994 ) $ (1,052 ) $ (418 ) $ (423 ) (1) 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, 2016 and 2015: U.S. U.K Germany ˡ Other Countries ˡ 2016 2015 2016 2015 2016 2015 2016 2015 (in millions) Change in benefit obligations: Beginning benefit obligation $ 1,208 $ 1,291 $ 1,332 $ 1,468 $ 438 $ 523 $ 303 $ 337 Service cost 8 6 6 7 3 4 13 13 Interest cost 39 48 37 50 6 8 5 6 Plan participants’ contributions — — — — — — 3 3 Actuarial loss (gain) 27 (54 ) 247 (74 ) 12 (16 ) (1 ) (15 ) Gross benefits paid (120 ) (83 ) (57 ) (64 ) (27 ) (29 ) (17 ) (14 ) Plan amendments — — — — — — (6 ) — Currency translation adjustments and other (3 ) — (250 ) (55 ) (13 ) (52 ) (5 ) (27 ) Ending benefit obligation $ 1,159 1,208 $ 1,315 1,332 $ 419 438 $ 295 303 Change in the fair value of plan assets: Beginning plan assets $ 1,182 1,295 $ 1,028 1,105 $ 5 5 $ 265 281 Actual return on plan assets 80 (30 ) 106 13 — — 8 8 Employer contributions — — 25 17 — — 10 10 Plan participants’ contributions — — — — — — 3 3 Gross benefits paid (120 ) (83 ) (57 ) (64 ) — — (16 ) (14 ) Currency translation adjustments and other (3 ) — (184 ) (43 ) — — (4 ) (23 ) Ending plan assets $ 1,139 $ 1,182 $ 918 $ 1,028 $ 5 $ 5 $ 266 $ 265 Funded status: $ (20 ) $ (26 ) $ (397 ) $ (304 ) $ (414 ) $ (433 ) $ (29 ) $ (38 ) (1) 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, 2016 and 2015 consist of: Pension Healthcare Other 2016 2015 2016 2015 2016 2015 (in millions) Other assets $ 4 $ 6 $ — $ — $ — $ — Pension, postretirement and other postemployment benefits (864 ) (807 ) (994 ) (1,052 ) (418 ) (423 ) Net liability recognized at end of year $ (860 ) $ (801 ) $ (994 ) $ (1,052 ) $ (418 ) $ (423 ) Pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 2016 consist of: Pension Healthcare Other (in millions) Unrecognized actuarial losses $ 1,013 $ 142 $ 79 Unrecognized prior service credit (8 ) (7 ) (3 ) Accumulated other comprehensive loss $ 1,005 $ 135 $ 76 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 2016 2015 (in millions) Accumulated benefit obligation $ 3,011 $ 3,182 Fair value of plan assets $ 2,183 $ 2,404 The following table summarizes CNH Industrial’s pension and other postemployment plans with projected benefit obligations in excess of plan assets: Pension Healthcare Other 2016 2015 2016 2015 2016 2015 (in millions) Projected benefit obligation $ 3,119 $ 3,211 $ 1,105 $ 1,157 $ 418 $ 423 Fair value of plan assets $ 2,254 $ 2,404 $ 111 $ 105 $ — $ — The total accumulated benefit obligation for pension was $3,150 million and $3,252 million as of December 31, 2016 and 2015, 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, 2016, 2015, and 2014: Pension Healthcare Other 2016 2015 2014 2016 2015 2014 2016 2015 2014 (in millions) Service cost $ 30 $ 30 $ 27 $ 7 $ 8 $ 9 $ 13 $ 15 $ 18 Interest cost 87 112 134 39 48 51 4 5 10 Expected return on assets (113 ) (140 ) (151 ) (6 ) (7 ) (7 ) — — — Amortization of: Prior service cost (credit) — — 1 (4 ) (10 ) (12 ) (1 ) 1 2 Actuarial loss (gain) 76 83 64 15 26 5 8 (7 ) 13 Settlement loss and other — — — — — — 1 — 1 Net periodic benefit cost $ 80 $ 85 $ 75 $ 51 $ 65 $ 46 $ 25 $ 14 $ 44 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 2016 consist of: Pension Healthcare Other (in millions) Net periodic benefit cost $ 80 $ 51 $ 25 Benefit adjustments included in other comprehensive (income) loss: Net actuarial losses (gains) 204 (39 ) 21 Amortization of actuarial losses (76 ) (15 ) (8 ) Amortization of prior service (cost) credit — 4 1 Currency translation adjustments and other (90 ) — — Total recognized in other comprehensive (income) loss 38 (50 ) 14 Total recognized in comprehensive loss $ 118 $ 1 $ 39 Pre-tax amounts expected to be amortized in 2017 from accumulated other comprehensive loss consist of: Pension Healthcare Other (in millions) Actuarial losses $ 89 $ 6 $ 1 Prior service cost (credit) (1 ) (3 ) 1 Total $ 88 $ 3 $ 2 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 at December 31, 2016 and 2015, and the net periodic benefit cost of CNH Industrial’s defined benefit plans for the years ended December 31, 2016, 2015, and 2014: Pension plans Healthcare plans Other (in %) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Assumptions used to determine funded status at December 31 Weighted-average discount rate 2.82 3.49 3.22 3.97 4.27 3.96 1.54 2.06 1.81 Weighted-average rate of compensation increase 2.95 2.98 3.25 2.50 2.50 3.00 1.19 1.33 2.27 Weighted-average, initial healthcare cost trend rate n/a n/a n/a 6.72 6.98 7.23 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 Assumptions used to determine expense Weighted-average discount rates - service cost 2.91 3.22 4.05 4.21 3.96 4.67 2.18 1.81 3.00 Weighted-average discount rates - interest cost 2.82 3.22 4.05 3.49 3.96 4.67 1.89 1.81 3.00 Weighted-average rate of compensation increase 2.98 3.25 3.35 2.50 3.00 3.42 1.33 2.27 2.63 Weighted-average long-term rates of return on plan assets 5.00 5.38 5.85 6.25 6.75 6.75 n/a n/a n/a Weighted-average, initial healthcare cost trend rate n/a n/a n/a 6.98 7.23 8.19 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 Company’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. The Retirement Plans Experience Committee (“RPEC”) publishes annual updates to the RP-2014 model and corresponding mortality improvement scales. The latest update resulted in the 2016 version of the mortality improvement scale (“MP-2016”). In 2016, CNH Industrial adopted the MP-2016 mortality improvement scale, which reflects significant improvement over the previous mortality improvement scales. 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 decrease of $32 million to the Company’s benefit obligations at December 31, 2016, of which, $15 million was related to pension plans and $17 million to healthcare plans. In 2016, the Company changed the method used to estimate the service and interest cost components of the net periodic pension and other postretirement benefit costs in order to provide a more precise measure of interest and service costs by improving the correlation between the projected benefit cash flows and the discrete spot yield curve rates. 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. Historically, those costs were determined using a single weighted-average discount rate based on hypothetical AA yield curves used to measure the benefit obligation at the beginning of the period. The change has been accounted for as a change in estimate prospectively and resulted in a $31 million reduction in net periodic benefit cost in 2016 due to lower service and interest costs. This change does not affect the measurement of the total benefit obligations. 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 2016 Healthcare Plan benefit expense $ 7 $ (5 ) Total increase/(decrease) in accumulated Healthcare benefit obligations as of December 31, 2016 $ 128 $ (103 ) 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 2016 are as follows: All Plans Asset category: Equity securities 20 % Debt securities 52 % Cash/Other 28 % 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, 2016: Total Level 1 Level 2 Level 3 (in millions) Equity securities: U.S. equities $ 352 $ 15 $ 337 $ — Non-U.S. equities — — — — Total Equity securities 352 15 337 — Fixed income securities: U.S. government bonds 308 305 3 — U.S. corporate bonds 474 — 474 — Non-U.S. government bonds 353 13 340 — Non-U.S. corporate bonds 87 — 87 — Mortgage backed securities — — — — Other fixed income 10 — 10 — Total Fixed income securities 1,232 318 914 — Other types of investments: Mutual funds (A) 682 — 682 — Insurance contracts 135 — — 135 Derivatives—credit contracts — — — — Real estate — — — — Other (B) — — — — Total Other types of investments 817 — 682 135 Cash: 38 2 36 — Total $ 2,439 $ 335 $ 1,969 $ 135 (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, 2016: Insurance Contracts Balance at December 31, 2015 $ 133 Actual return on plan assets relating to assets still held at reporting date 3 Purchases 7 Settlements (6 ) Transfers in and/or out of level 3 2 Currency impact (4 ) Balance at December 31, 2016 $ 135 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 $ 53 $ 15 $ 38 $ — 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 Contributions CNH Industrial expects to contribute (including through direct benefit payments) approximately $63 million to its pension plans, $69 million to its healthcare plans and $32 million to its other postemployment plans in 2017. 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) 2017 $ 165 $ 72 $ — $ 32 2018 171 70 — 31 2019 169 69 — 32 2020 172 69 — 34 2021 174 69 — 31 2022 - 2026 854 328 (1 ) 135 Total $ 1,705 $ 677 $ (1 ) $ 295 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Note 12: Other Liabilities A summary of “Other liabilities” as of December 31, 2016 and 2015 is as follows: 2016 2015 (in millions) Advances on buy-back agreements $ 2,429 $ 2,147 Warranty and campaign programs 940 908 Marketing and sales incentive programs 1,182 1,166 Tax payables 714 528 Accrued expenses and deferred income 634 595 Accrued employee benefits 633 572 Legal reserves and other provisions 355 389 Contract reserve 407 396 Restructuring reserve 30 51 Other 681 736 Total $ 8,005 $ 7,488 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 basic warranty and campaign program accrual for the years ended December 31, 2016 and 2015 are as follows: 2016 2015 (in millions) Balance, beginning of year $ 908 $ 1,020 Current year additions 806 738 Claims paid (706 ) (723 ) Currency translation adjustment and other (68 ) (127 ) Balance, end of year $ 940 $ 908 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, 2016 and 2015 represented a sum of the deferred rental revenue and the guaranteed buy-back price. Restructuring Provision The Company incurred restructuring costs of $44 million, $84 million and $184 million for the years ended December 31, 2016, 2015, and 2014, respectively. These costs were as follows: • In 2016, Commercial Vehicles recorded $34 million mainly due to actions to reduce selling, general and administrative expenses 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. Agricultural Equipment recorded $9 million, mainly as a result of footprint rationalization actions included in the Efficiency Program of the Company. • 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, 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. The following table sets forth restructuring activity for the years ended December 31, 2016, 2015 and 2014: Severance and Other Employee Costs Facility Related Costs Other Restructuring Total (in millions) Balance at January 1, 2014 $ 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 Restructuring charges 56 (1 ) (11 ) 44 Reserves utilized: cash (55 ) — (4 ) (59 ) Reserves utilized: non-cash — — (3 ) (3 ) Currency translation adjustments (8 ) 3 2 (3 ) Balance at December 31, 2016 $ 23 $ 7 $ - $ 30 In an effort to drive incremental structural improvements to its cost base, the Company intends to undertake additional restructuring actions during 2017 as part of its Efficiency Program. The estimated 2017 expense of approximately $100 million is projected to result in incremental savings of $60 million in 2017 and approximately $80 million on an annualized basis thereafter. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
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 regulatory and contractual issues, and environmental claims that arise in the ordinary course of 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 the Company’s 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 that 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 that could exceed 30 years for some sites. As of December 31, 2016 and 2015, environmental reserves of approximately $35 million and $37 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 European Commission settlement: In the first quarter of 2016, the Company recorded a non-recurring non-tax deductible charge of €450 million ($502 million) in relation to the investigation and related matters. On July 19, 2016, the Commission announced a settlement with Iveco under which the Commission imposed a fine of €495 million (equivalent to $543 million at payment date). As a result of this settlement, the Company recorded an additional non-tax deductible charge of €45 million ($49 million) in the second quarter of 2016. The fine was paid by the Company on October 20, 2016. Following this settlement, the Company has been named as defendants in private litigation commenced in Israel and Ireland that remains at an early stage, and the Company expects to face further claims in various jurisdictions; the extent and outcome of which cannot be predicted 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) 2017 $ 72 2018 51 2019 39 2020 28 2021 25 2022 and beyond 21 Total minimum rental commitments $ 236 Total rental expense for all operating leases was $67 million, $69 million, and $58 million for the years ended December 31, 2016, 2015, and 2014, respectively. At December 31, 2016, 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 $ 6,917 $ 3,728 $ 3,189 Guarantees CNH Industrial provided guarantees on the debt or commitments of third parties and performance guarantees in the interest of non-consolidated affiliates as of December 31, 2016 and 2015 totaling $291 million and $316 million, respectively. Other Contingencies CNH Industrial is successor to Fiat Industrial, a company formed as a result of the demerger of Fiat (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, 2016 the outstanding liabilities amounted to approximately $1.3 billion of which $1.1 billion consisted of bonds due June 2017 guaranteed by FCA. CNH Industrial believes the risk of FCA’s insolvency is extremely remote, 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, 2016 | |
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 as 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 as 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 as 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 fluctuations. 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 a currency different from the functional currency of the relevant legal entity. 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 18 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 $(73) 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 $7.0 billion and $7.1 billion at December 31, 2016 and 2015, 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 $0 million at December 31, 2016. 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 as cash flow hedges are being used by the Company to mitigate the risk of rising interest rates related to existing debt and anticipated issuance of fixed-rate debt in future periods. Gains and losses on these instruments, 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 23 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 $(1) 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 2016, 2015, and 2014, 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, 2016, 2015, and 2014. All of CNH Industrial’s interest rate derivatives outstanding as of December 31, 2016 and 2015 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 $4.3 billion and $4.6 billion at December 31, 2016 and 2015, respectively. Financial Statement impact of CNH Industrial Derivatives The fair values of CNH Industrial’s derivatives at December 31, 2016 and 2015 in the consolidated balance sheets are recorded as follows: 2016 2015 (in millions) Derivatives Designated as Hedging Instruments: Assets: Foreign exchange contracts: $ 47 $ 61 Interest rate derivatives: 15 30 Cross currency swaps: — 16 Total Assets $ 62 $ 107 Liabilities Foreign exchange contracts: $ (105 ) $ (29 ) Interest rate derivatives: (17 ) (6 ) Total Liabilities $ (122 ) $ (35 ) Derivatives Not Designated as Hedging Instruments: Assets: Foreign exchange contracts: $ 31 $ 100 Interest rate derivatives: 2 4 Total Assets $ 33 $ 104 Liabilities Foreign exchange contracts: $ (116 ) $ (30 ) Interest rate derivatives: (11 ) (4 ) Total Liabilities $ (127 ) $ (34 ) Pre-tax gains (losses) on the consolidated statements of operations related to CNH Industrial’s derivatives for the year ended December 31, 2016, 2015, and 2014 are recorded in the following accounts: 2016 2015 2014 (in millions) Fair Value Hedges Interest rate derivatives—Interest expense $ (33 ) $ (8 ) $ (8 ) Gains/(losses) on hedged items—Interest expense $ 33 $ 8 $ 8 Cash Flow Hedges Recognized in accumulated other comprehensive income (effective portion): Foreign exchange contracts—accumulated other comprehensive income $ (72 ) $ (19 ) $ (251 ) Interest rate derivatives—accumulated other comprehensive income $ 13 $ (39 ) $ 1 Reclassified from accumulated other comprehensive income (effective portion): Foreign exchange contracts—Net sales $ 55 $ 16 $ 14 Foreign exchange contracts—Cost of goods sold $ (4 ) $ (211 ) $ (7 ) Foreign exchange contracts—Other, net $ (5 ) $ (10 ) $ (30 ) Interest rate derivatives—Interest expense $ (4 ) $ (7 ) $ (12 ) Not Designated as Hedges Foreign exchange contracts—Other, net $ (231 ) $ 115 $ (14 ) Items Measured at Fair Value on a Recurring Basis The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2016 and 2015: Level 1 Level 2 Total 2016 2015 2016 2015 2016 2015 (in millions) Assets Foreign exchange derivatives $ — $ — $ 78 $ 161 $ 78 $ 161 Interest rate derivatives — — 17 34 17 34 Cross currency swaps — — — 16 — 16 Available for sale securities 1 1 — — 1 1 Total Assets $ 1 $ 1 $ 95 $ 211 $ 96 $ 212 Liabilities Foreign exchange derivatives $ — $ — $ (221 ) $ (59 ) $ (221 ) $ (59 ) Interest rate derivatives — — (28 ) (10 ) (28 ) (10 ) Total Liabilities $ — $ — $ (249 ) $ (69 ) $ (249 ) $ (69 ) 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, 2016 and 2015 are as follows: 2016 2015 Carrying Amount Fair Value Carrying Amount * Fair Value (in millions) Financing receivables $ 18,662 $ 18,554 $ 19,001 $ 18,868 Debt $ 25,276 $ 25,372 $ 26,301 $ 26,371 (*) Certain amounts have been reclassified to conform to the current presentation of debt issuance costs in the consolidated balance sheet as of December 31, 2015, following the adoption of new guidance effective January 1, 2016. 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. and bonds issued by CNH Industrial N.V., which are classified as a Level 1 fair value measurement. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, the Company’s share capital was €18 million (equivalent to $25 million), fully paid-in, and consisted of 1,361,630,903 common shares and 412,268,203 special voting shares. Changes in the composition of the share capital of CNH Industrial during 2016, 2015, and 2014 are as follows: (number of shares) CNH Industrial N.V. Common Shares CNH N.V. Special Voting Shares Total CNH Industrial N.V. Shares 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 Capital increase 1,693,695 — 1,693,695 Common stock repurchases (2,111,781 ) — (2,111,781 ) Retirement of special voting shares — (981,003 ) (981,003 ) Total CNH Industrial N.V. shares at December 31, 2016 1,361,630,903 412,268,203 1,773,899,106 During the year ended December 31, 2016 and 2015, 1 million and 2 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. Furthermore, during the years ended December 31, 2016 and 2015, the Company issued 1.7 million and 6.7 million common shares primarily due to the vesting or exercise of share-based awards. See “Note 16: Share Based Compensation” for further discussion. 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. 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. 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. Treasury At the Annual General Meeting of Sharesholders (“AGM”) held on April 15, 2015, shareholders granted the Board of Directors the authority to acquire common shares in its own capital through stock exchange trading or otherwise to a maximum of up to 10% of the issued common shares on April 15, 2015, for a period expiring on October 14, 2016 (the “2015 Share Repurchase Authorization”), subject to certain maximum and minimum price requirements. Implementing such resolution in January 2016, the Company announced the launch of a share buy-back program to repurchase from time to time up to $300 million in common shares in compliance with applicable rules and regulations and in accordance with the 2015 Share Repurchase Authorization. On April 15, 2016, shareholders renewed the grant of authority to the Board to acquire common shares in its own capital through stock exchange trading or otherwise for a period expiring on October 14, 2017. During the year ended December 31, 2016, the Company repurchased 2.1 million shares of its common stock on the MTA under the buy-back program at an aggregate cost of $14 million. As of December 31, 2016, the Company held 1,278,708 common shares in treasury, net of transfers of common shares to fulfill its obligations under its stock compensation plans, at an aggregate cost of $9 million. Depending on market and business conditions and other factors, the Company may continue or suspend purchasing its common stock at any time without notice. During the year ended December 31, 2016, the Company acquired approximately 1 million special voting shares following the de-registration of qualifying common shares from the Loyalty Register, net of the transfer and allocation of special voting shares to those shareholders whose qualifying common shares became eligible to receive special voting shares after the uninterrupted three-year registration period in the Loyalty Register. As of December 31, 2016, the Company held 62,206,073 special voting shares in treasury. Dividend On March 2, 2017, the Board of Directors of CNH Industrial N.V. recommended to the Company’s shareholders that the Company declare a dividend of €0.11 per common share, totaling approximately €150 million (equivalent to approximately $160 million, translated at the exchange rate reported by the European Central Bank on February 27, 2017). The proposal is subject to the approval of the Company’s shareholders at the AGM to be held on April 14, 2017. At the AGM held by CNH Industrial on April 15, 2016, shareholders approved the payment of a dividend of €0.13 per common share. The dividend was paid in May 2016 for a total amount of €177 million ($201 million). At the AGM held by CNH Industrial on April 15, 2015, shareholders approved the payment of a dividend of €0.20 per common share. The dividend was paid in April 2015 for a total amount of €272 million ($291 million). |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 16: Share-Based Compensation For the year ended December 31, 2016, CNH Industrial recognized total share-based compensation expense of $3 million which included a $37 million reversal of previously recognized expense for performance share units linked to non-market conditions for which the Company does not believe it is probable that the performance conditions will be achieved. For the years ended December 31, 2015 and 2014, CNH Industrial recognized total share-based compensation expense of $49 million each year. For the year ended December 31, 2016, CNH Industrial did not recognize a tax benefit relating to share-based compensation expense. For the years ended December 31, 2015 and 2014, CNH Industrial recognized a total tax benefit relating to share-based compensation expense of $3 million and $4 million, respectively. As of December 31, 2016, CNH Industrial had unrecognized share-based compensation expense related to nonvested awards of approximately $31 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 1.6 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”); and, iv) CNH Global N.V. Directors’ Compensation Plan (“CNH DCP”). CNH Industrial N.V. Equity Incentive Plan (“CNH Industrial EIP”) At the 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 authorized 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 CNH Industrial issued a one-time grant of Performance Share Units (PSU’s) to its Chief Executive Officer and selected key employees, with financial performance goals covering the five-year period from January 1, 2014 to December 31, 2018. This PSU grant totaled approximately 12 million units. In 2015 and 2016, prorated share amounts covering performance through this same period were issued to new employees entering the plan. PSU’s granted in these years were 1 million and 0.5 million respectively. 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 the total grant was expected to vest in February 2017, but such grants will not vest as both the performance and market conditions for the performance period 2014 through 2016 were not met. A cumulative two-thirds will vest in February 2018, and a cumulative 100% in February 2019 if the respective financial goals for the performance periods 2014 through 2017 and 2014 through 2018 are achieved. As new participants entered the program in 2016, vesting was modified to cliff vest in February 2019. This was done to ensure employee contribution over a three year performance period before earning any Performance Share vesting. The fair values of the awards that are contingent upon the achievement of the performance condition are 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, 2015, and 2016 is $9.48, $9.33 and $7.08 per share, respectively. The fair values of the awards that are based on the market condition are calculated using the Monte Carlo Simulation model. The weighted average fair value for the awards that were issued in 2014, 2015, and 2016 is $8.19, $7.95, and $3.17 per share, respectively. As a significant majority of the awards (approximately 90% of total awards as of December 31, 2016) were 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, 2016: 2016 Performance Shares Weighted Average Grant-Date Fair Value Nonvested at beginning of year 11,591,260 $ 8.64 Granted 471,200 $ 5.13 Forfeited (337,200 ) $ 8.23 Vested — $ — Nonvested at end of year 11,725,260 $ 8.51 Restricted Share Units In 2014, 2015 and 2016, CNH Industrial issued to selected employees approximately 1 million, 2 million, and 2 million Restricted Share Units (“RSUs”) with a weighted average fair value of $9.21, $8.60, and $7.30 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 and second tranches of 750 thousand shares each vested on December 31, 2014 and 2015, respectively, which were exercised on February 23, 2015 and February 8, 2016, respectively. The third tranche of 600 thousand shares vested on December 31, 2016 and was exercised on February 8, 2017. The following table reflects the activity of restricted share units under CNH Industrial EIP for the year ended December 31, 2016: 2016 Restricted Shares Weighted Average Grant-Date Fair Value Nonvested at beginning of year 3,745,520 $ 9.07 Granted 2,046,280 $ 7.30 Forfeited (110,420 ) $ 8.16 Vested (1,448,672 ) $ 9.35 Nonvested at end of year 4,232,708 $ 8.14 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, 2016, 0.05 million stock options were issued under the CNH Industrial DCP at a weighted average exercise price of $9.42 per share. The weighted average fair value for the stock options that were issued in 2014 and 2015 were $2.72 and $1.65, respectively. No stock options were issued under this plan in 2016. As of December 31, 2016, 0.02 million restricted share units were issued under the CNH Industrial DCP. The weighted average grant-date fair value of the RSUs that were issued in 2014, 2015, and 2016 were $9.12, $8.16, and $6.78, respectively. 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, 2016, 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 2014, 2015 or 2016 under the CNH EIP. The following table summarizes outstanding stock options under the CNH EIP at December 31, 2016: 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 3,378,704 1.15 $ 8.78 $ — 3,378,704 1.15 $ 8.78 $ — $10.01–$15.00 3,832,177 0.16 $ 10.15 $ — 3,832,177 0.16 $ 10.15 $ — $ — $ — (A) The difference between the exercise price of share-based compensation and the year-end market price of CNH Industrial common shares of $8.69. No amount is shown for awards with an exercise price that is greater than the year-end market price. The following table reflects the stock option activity under the CNH EIP for the year ended three and twelve months ended December 31, 2016: 2016 Shares Weighted- Average Exercise Price Outstanding at beginning of year 8,642,903 $ 9.25 Forfeited — $ — Expired (1,432,022 ) $ 7.96 Exercised — $ — Outstanding at end of year 7,210,881 $ 9.51 Exercisable at end of year 7,210,881 $ 9.51 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. All RSUs under the CNH EIP had vested as of December 31, 2015; therefore, there was no RSU activity for the year ended December 31, 2016. Additional Share-Based Compensation Information The table below provides additional share-based compensation information for the years ended December 31, 2016, 2015, and 2014: 2016 2015 2014 (in millions) Total intrinsic value of options exercised and shares vested $ 12 $ 33 $ 42 Fair value of shares vested $ 14 $ 36 $ 32 Cash received from share award exercises $ — $ 8 $ 10 Tax benefit of options exercised and shares vested $ — $ — $ — |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2016 | |
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. Diluted EPS reflects the potential dilution that could occur if dilutive securities were exercised into common stock. The effect of dilutive securities is calculated using the treasury stock method. The following table sets forth the computation of basic EPS and diluted EPS for the years ended December 31, 2016, 2015 and 2014. 2016 2015 2014 (in millions, except per share data) Basic: Net income (loss) attributable to CNH Industrial $ (252 ) $ 253 $ 710 Weighted average common shares outstanding—basic 1,362 1,361 1,354 Basic earnings per share $ (0.18 ) $ 0.19 $ 0.52 Diluted: Net income attributable to CNH Industrial $ (252 ) $ 253 $ 710 Weighted average common shares outstanding—basic 1,362 1,361 1,354 Effect of dilutive securities (when dilutive): Stock compensation plans (A) — 2 6 Weighted average common shares outstanding—diluted 1,362 1,363 1,360 Diluted earnings per share $ (0.18 ) $ 0.19 $ 0.52 (A) For the twelve months ended December 31, 2016, 2015, and 2014, 7.3 million, 7.9 million, and 8.9 million stock options were excluded from the computation of diluted earnings per share, respectively, due to an anti-dilutive impact. An additional 1.9 million shares of common stock outstanding at December 31, 2016 were excluded from the computation of diluted earnings per share due to the net loss position. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
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 translation 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 the Company’s derivative instruments, see “Note 14: Financial Instruments”. For more information on the Company’s 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, 2016 Gross Amount Income Taxes Net Amount Unrealized gain (loss) on cash flow hedges $ (101 ) $ 10 $ (91 ) Changes in retirement plans’ funded status (81 ) (8 ) (89 ) Foreign currency translation 319 — 319 Share of other comprehensive loss of entities using the equity method (40 ) — (40 ) Other comprehensive income $ 97 $ 2 $ 99 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 ) 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 Share of other comprehensive loss of entities using the equity method (44 ) — (44 ) Other comprehensive income (loss) $ (471 ) $ 104 $ (367 ) 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, 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 ) Other comprehensive income (loss), before reclassifications (58 ) (172 ) 316 — (40 ) 46 Amounts reclassified from other comprehensive income (loss) (33 ) 83 — — — 50 Other comprehensive income (loss) 1 (91 ) (89 ) 316 — (40 ) 96 Balance, December 31, 2016 $ (88 ) $ (1,036 ) $ (490 ) $ — $ (153 ) $ (1,767 ) (1) Excluded from the table above is other comprehensive loss allocated to noncontrolling interests of $3, $(1) and $(4) for the years ended December 31, 2016, 2015 and 2014, respectively. Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in December 31, 2016 and 2015 consisted of the following: Amount Reclassified from Other Comprehensive Income (Loss) Consolidated Statement of Operations line 2016 2015 (in millions) Cash flow hedges $ (55 ) $ (16 ) Net sales 4 211 Cost of goods sold 5 10 Other, net 4 7 Interest expense 9 (64 ) Income taxes $ (33 ) $ 148 Change in retirement plans’ funded status: Amortization of actuarial losses $ 99 $ 102 * Amortization of prior service cost (5 ) (9 ) * (11 ) (11 ) Income taxes $ 83 $ 82 Total reclassifications, net of tax $ 50 $ 230 (*) 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, 2016 | |
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. 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 the Company’s 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. Following the Company’s acquisition of the grass and soil implement business of Kongskilde Industries in February 2017, certain agricultural equipment products will be sold under the Kongskilde, Överum, and JF brands. 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. The CODM reviews the performance of operating segments using 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, 2016, 2015, and 2014 are provided below. Years Ended December 31, 2016 2015 2014 (in millions) Operating profit $ 1,439 $ 1,635 $ 2,199 Adjustments/reclassifications to convert from operating profit to U.S. GAAP income before income taxes and equity in income of unconsolidated subsidiaries: Restructuring expenses (44 ) (84 ) (184 ) Interest expenses of Industrial Activities, net of interest income and eliminations (543 ) (479 ) (613 ) Other, net (861 ) (505 ) (313 ) Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates under U.S. GAAP $ (9 ) $ 567 $ 1,089 Segment Information The following summarizes operating profit by reportable segment: Years Ended December 31, 2016 2015 2014 (in millions) Agricultural Equipment $ 818 $ 952 $ 1,770 Construction Equipment 2 90 79 Commercial Vehicles 333 283 29 Powertrain 232 186 223 Eliminations and other (94 ) (79 ) (113 ) Total Operating profit of Industrial Activities $ 1,291 $ 1,432 $ 1,988 Financial Services 478 515 554 Eliminations and other (330 ) (312 ) (343 ) Operating profit $ 1,439 $ 1,635 $ 2,199 A summary of additional operating segment information as of and for the years ended December 31, 2016, 2015, and 2014 is as follows: Years Ended December 31, 2016 2015 2014 (in millions) Revenues: Agricultural Equipment $ 10,120 $ 11,025 $ 15,204 Construction Equipment 2,304 2,542 3,346 Commercial Vehicles 9,553 9,542 10,888 Powertrain 3,707 3,560 4,464 Eliminations and other (2,015 ) (1,992 ) (2,704 ) Net sales of Industrial Activities 23,669 24,677 31,198 Financial Services 1,570 1,603 1,828 Eliminations and other (367 ) (368 ) (471 ) Total Revenues $ 24,872 $ 25,912 $ 32,555 Depreciation and Amortization (*): Agricultural Equipment $ 309 $ 303 $ 288 Construction Equipment 69 70 85 Commercial Vehicles 208 198 209 Powertrain 124 123 144 Other activities and adjustments — — (1 ) Depreciation and amortization of Industrial Activities 710 694 725 Financial Services 6 5 6 Depreciation and amortization $ 716 $ 699 $ 731 Expenditures for long-lived assets (*): Agricultural Equipment $ 194 $ 308 $ 408 Construction Equipment 36 47 65 Commercial Vehicles 173 182 391 Powertrain 96 112 136 Other activities 2 4 5 Expenditures for long-lived assets of Industrial Activities 501 653 1,005 Financial Services 2 3 17 Expenditures for long-lived assets $ 503 $ 656 $ 1,022 ( * ) 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 $842 million, $1,008 million, and $1,054 million for the years ended December 31, 2016, 2015, and 2014, respectively. Revenues earned in the rest of the world from external customers were $24,030 million, $24,904 million, and $31,501 million for the years ended December 31, 2016, 2015, and 2014, respectively. The following highlights revenues earned from external customers in the rest of the world by destination: 2016 2015 2014 (in millions) United States $ 4,628 $ 5,533 $ 7,472 France 2,608 2,580 2,913 Italy 2,874 2,524 2,854 Brazil 1,587 1,670 3,708 Germany 1,574 1,565 1,845 Canada 1,182 1,229 1,606 Australia 947 846 926 Spain 921 810 807 Argentina 680 768 570 Poland 435 479 562 Other 6,594 6,900 8,238 Total Revenues from external customers in the rest of world $ 24,030 $ 24,904 $ 31,501 Total long-lived tangible and intangible assets located in the U.K. were $234 million and $253 million at December 31, 2016 and 2015, respectively, and the total of such assets located in the rest of the world totaled $11,306 million and $11,320 million at December 31, 2016 and 2015, respectively. The following highlights long-lived tangible and intangible assets by geographic in the rest of the world: At December 31, 2016 2015 (in millions) United States $ 5,081 $ 5,202 Italy 1,510 1,580 France 805 794 Spain 625 579 Germany 808 849 Brazil 436 371 Canada 519 441 China 280 313 Other 1,242 1,191 Total Long-lived assets in the rest of the world $ 11,306 $ 11,320 In 2016, 2015, and 2014, 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, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Information | Note 20: Related Party Information CNH Industrial’s related parties are primarily EXOR N.V. and the companies that EXOR N.V. 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, 2016, EXOR N.V. held 41.4% 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 N.V. to (ii) the aggregate number of outstanding common shares and special voting shares of CNH Industrial as of December 31, 2016. 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 N.V. and its Subsidiaries and Affiliates EXOR N.V. is a major investment holding company in Europe. Among other things, EXOR N.V. manages a portfolio that includes investments in FCA. CNH Industrial did not enter into any significant transactions with EXOR N.V. during the year ended December 31, 2016. On September 1, 2015, EXOR N.V. closed the sale of its interest in Cushman & Wakefield to DTZ. During the year ended December 31, 2015, CNH Industrial purchased real estate services from Cushman & Wakefield. The related transaction amounts were insignificant during 2015. 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. CNH Industrial sells engines and light commercial vehicles to and purchases engine blocks and other components from FCA companies. Furthermore, the Company could enter into other minor transactions with FCA Group in the ordinary course of business. These transactions with FCA Group are reflected on the Company’s consolidated statements of operations as follows: 2016 2015 2014 (in millions) Net sales $ 806 $ 762 $ 943 Cost of goods sold $ 466 $ 463 $ 551 Selling, general and administrative expenses $ 148 $ 161 $ 234 12/31/2016 12/31/2015 (in millions) Trade receivables $ 11 $ 14 Trade payables $ 105 $ 136 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: 2016 2015 2014 (in millions) Net sales $ 782 $ 700 $ 843 Cost of goods sold $ 392 $ 430 $ 564 12/31/2016 12/31/2015 (in millions) Trade receivables $ 113 $ 72 Trade payables $ 108 $ 156 At December 31, 2016 and 2015, CNH Industrial had pledged guarantees on commitments of its joint venture for an amount of $187 million and $203 million, respectively, mainly related to Iveco—Oto Melara Società consortile. |
Supplemental Information
Supplemental Information | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Supplemental Information | Note 21: Supplemental Information The operations, 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 statement of operations, and in “Investments in unconsolidated subsidiaries and affiliates” in the accompanying 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. Certain prior period balances have been reclassified to conform to the current period presentation resulting from the adoption of new accounting pronouncements. Statement of Operations Industrial Activities Financial Services 2016 2015 2014 2016 2015 2014 (in millions) Revenues Net sales $ 23,669 $ 24,677 $ 31,198 $ — $ — $ — Finance and interest income 153 201 258 1,570 1,603 1,828 Total Revenues $ 23,822 $ 24,878 $ 31,456 $ 1,570 $ 1,603 $ 1,828 Costs and Expenses Cost of goods sold 19,539 20,357 25,536 — — — Selling, general & administrative expenses 1,979 2,032 2,568 283 285 357 Research and development expenses 860 856 1,106 — — — Restructuring expenses 43 82 184 1 2 — Interest expense 694 678 857 521 576 705 Interest compensation to Financial Services 332 314 357 — — — Other, net 855 497 290 294 235 235 Total Costs and Expenses $ 24,302 $ 24,816 $ 30,898 $ 1,099 $ 1,098 $ 1,297 Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates (480 ) 62 558 471 505 531 Income tax (expense) (137 ) (202 ) (280 ) (161 ) (158 ) (187 ) Equity income of unconsolidated subsidiaries and affiliates 34 20 68 24 21 18 Results from intersegment investments 334 368 362 — — 2 Net income (loss) $ (249 ) $ 248 $ 708 $ 334 $ 368 $ 364 Balance Sheets Industrial Activities Financial Services 2016 2015 2016 2015 (in millions) ASSETS Cash and cash equivalents $ 4,649 $ 4,551 $ 368 $ 833 Restricted cash — 15 837 912 Trade receivables 596 555 58 52 Financing receivables 1,592 2,162 19,546 19,974 Inventories, net 5,396 5,513 213 177 Property, plant and equipment, net 6,395 6,479 2 2 Investments in unconsolidated subsidiaries and affiliates 2,886 2,846 153 136 Equipment under operating leases 17 10 1,890 1,825 Goodwill 2,296 2,295 153 152 Other intangible assets, net 772 793 15 17 Deferred tax assets 1,060 1,087 188 163 Derivative assets 98 205 8 6 Other assets 1,505 1,271 382 490 TOTAL ASSETS $ 27,262 $ 27,782 $ 23,813 $ 24,739 LIABILITIES AND EQUITY Debt $ 7,691 $ 8,260 $ 20,061 $ 21,176 Trade payables 5,042 5,176 180 197 Deferred tax liabilities 84 60 310 274 Pension, postretirement and other postemployment benefits 2,256 2,263 20 19 Derivative liability 239 62 21 7 Other liabilities 7,478 7,100 669 611 TOTAL LIABILITIES $ 22,790 $ 22,921 $ 21,261 $ 22,284 Equity 4,451 4,843 2,552 2,455 Redeemable noncontrolling interest 21 18 — — TOTAL LIABILITIES AND EQUITY $ 27,262 $ 27,782 $ 23,813 $ 24,739 Cash Flow Statements Industrial Activities Financial Services 2016 2015 2014 2016 2015 2014 (in millions) Operating activities: Net income (loss) $ (249 ) $ 248 $ 708 $ 334 $ 368 $ 364 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 710 694 725 6 5 6 Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments 284 238 257 261 209 152 (Gain) loss from disposal of assets 4 (2 ) (1 ) — — 9 Loss on repurchase of Notes 60 — — — — — Undistributed income (loss) of unconsolidated subsidiaries 37 (104 ) (181 ) (25 ) (17 ) (20 ) Other non-cash items 73 213 101 122 118 153 Changes in operating assets and liabilities: Provisions 42 (61 ) 110 4 13 11 Deferred income taxes 43 59 (110 ) 22 60 71 Trade and financing receivables related to sales, net (7 ) 354 285 (95 ) (50 ) (1,101 ) Inventories, net 141 507 (187 ) (35 ) (34 ) 15 Trade payables 121 (162 ) (790 ) (19 ) 4 (66 ) Other assets and liabilities 460 112 (104 ) 155 220 434 Net cash provided by operating activities 1,719 2,096 813 730 896 28 Investing activities: Additions to retail receivables — — — (3,951 ) (4,498 ) (6,467 ) Collections of retail receivables — — — 4,569 5,146 6,506 Proceeds from sale of assets, net of assets sold under operating leases and assets sold under buy-back commitments 12 11 25 — — — Proceeds from sale of assets under operating leases and assets sold under buy-back commitments 234 320 319 426 406 258 Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and sold under buy-back commitments (501 ) (653 ) (1,005 ) (2 ) (3 ) (17 ) Expenditures for assets under operating lease and assets sold under buy-back commitments (884 ) (875 ) (797 ) (747 ) (976 ) (1,017 ) Other 380 2,151 494 (562 ) (2,019 ) (282 ) Net cash provided (used) by investing activities (759 ) 954 (964 ) (267 ) (1,944 ) (1,019 ) Financing activities: Proceeds from long-term debt 1,754 650 3,356 10,875 9,277 14,021 Payments of long-term debt (2,085 ) (2,483 ) (2,145 ) (11,685 ) (8,185 ) (13,178 ) Net increase (decrease) in other financial liabilities (219 ) 51 (194 ) 87 45 (120 ) Dividends paid (207 ) (297 ) (382 ) (341 ) (207 ) (160 ) Other (58 ) 23 18 105 43 13 Net cash provided (used) by financing activities (815 ) (2,056 ) 653 (959 ) 973 576 Effect of foreign exchange rate changes on cash and cash equivalents (47 ) (565 ) (390 ) 31 (133 ) (101 ) Increase (decrease) in cash and cash equivalents 98 429 112 (465 ) (208 ) (516 ) Cash and cash equivalents, beginning of year 4,551 4,122 4,010 833 1,041 1,557 Cash and cash equivalents, end of year $ 4,649 $ 4,551 $ 4,122 $ 368 $ 833 $ 1,041 |
Supplemental Condensed Consolid
Supplemental Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 and for the three years ended December 31, 2016. 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. Certain prior period balances have been reclassified to conform to the current period presentation resulting from the adoption of new accounting pronouncements. The following condensed financial statements present CNH Industrial, Case New Holland Industrial Inc., the Guarantor Subsidiaries, and all other subsidiaries as of December 31, 2016, and 2015, and for the years ended December 31, 2016, 2015, and 2014. Condensed Statements of Operations For the Year Ended December 31, 2016 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Total Revenues $ 1,370 $ 8 $ 9,759 $ 19,592 $ (5,857 ) $ 24,872 Cost and Expenses: Cost of goods sold 1,142 — 8,130 15,431 (5,164 ) 19,539 Selling, general and administrative expenses 120 — 491 1,651 — 2,262 Research and development expenses 6 — 276 578 — 860 Restructuring expenses 3 — (9 ) 50 — 44 Interest expense 151 320 118 933 (494 ) 1,028 Interest compensation to Financial Services 10 — 189 — (199 ) — Other, net 57 (1 ) 103 989 — 1,148 Total Costs and Expenses 1,489 319 9,298 19,632 (5,857 ) 24,881 Income (loss) before income taxes and equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method (119 ) (311 ) 461 (40 ) — (9 ) Income tax (expense) benefit (4 ) 112 (91 ) (315 ) — (298 ) Equity in income (loss) of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method (129 ) 377 292 140 (622 ) 58 Net income (loss) (252 ) 178 662 (215 ) (622 ) (249 ) Net income attributable to noncontrolling interests — — — 3 — 3 Net income (loss) attributable to owners of the parent $ (252 ) $ 178 $ 662 $ (218 ) $ (622 ) $ (252 ) Condensed Statements of Comprehensive Income For the Year Ended December 31, 2016 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Comprehensive income (loss) $ (156 ) $ 324 $ 761 $ (800 ) $ (279 ) $ (150 ) Comprehensive income attributable to noncontrolling interests — — — 6 — 6 Comprehensive income (loss) attributable to parent $ (156 ) $ 324 $ 761 $ (806 ) $ (279 ) $ (156 ) Condensed Balance Sheets As of December 31, 2016 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Assets: Cash and cash equivalents $ 1 $ — $ 170 $ 4,846 $ — $ 5,017 Deposits in subsidiaries’ cash management pools 159 — 3,455 — (3,614 ) — Receivables 757 856 5,581 26,822 (14,731 ) 19,285 Inventories, net 83 — 1,270 4,256 — 5,609 Property, plant and equipment, net 74 — 997 5,326 — 6,397 Equipment on operating leases 3 — — 1,904 — 1,907 Investments in unconsolidated subsidiaries and affiliates 244 — — 243 — 487 Investments in consolidated subsidiaries 9,537 7,666 1,641 890 (19,734 ) — Goodwill and intangibles 11 — 2,768 457 — 3,236 Other 232 137 1,225 2,283 (268 ) 3,609 Total Assets $ 11,101 $ 8,659 $ 17,107 $ 47,027 $ (38,347 ) $ 45,547 Liabilities and Equity: Debt $ 5,918 $ 5,378 $ 2,404 $ 28,201 $ (16,625 ) $ 25,276 Trade payables 168 — 1,777 4,978 (1,738 ) 5,185 Other liabilities 571 (56 ) 3,241 7,130 (251 ) 10,635 Total Equity 4,444 3,337 9,685 6,718 (19,733 ) 4,451 Total Equity and Liabilities $ 11,101 $ 8,659 $ 17,107 $ 47,027 $ (38,347 ) $ 45,547 Condensed Statements of Cash Flow For the Year Ended December 31, 2016 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Operating Activities: Net income (loss) $ (252 ) $ 178 $ 662 $ (215 ) $ (622 ) $ (249 ) Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 12 — 206 1,043 — 1,261 Other, net 758 (310 ) (284 ) 1,112 (180 ) 1,096 Net cash provided (used) by operating activities 518 (132 ) 584 1,940 (802 ) 2,108 Investing activities: Expenditures for property, plant and equipment, equipment on operating lease, equipment sold under a buy-back commitment and intangible assets (13 ) — (82 ) (2,039 ) — (2,134 ) Net collections from retail receivables and related securitizations — — — 617 1 618 (Deposits in) withdrawals from subsidiaries’ cash management pools (48 ) — 1,294 — (1,246 ) — Other, net (1,125 ) 1,055 (1,228 ) (379 ) 2,272 595 Net cash provided (used) by investing activities (1,186 ) 1,055 (16 ) (1,801 ) 1,027 (921 ) Financing Activities: Net increase (decrease) in indebtedness 904 (941 ) (264 ) (972 ) — (1,273 ) Dividends paid (201 ) (7 ) (298 ) (503 ) 802 (207 ) Other, net (32 ) 25 23 953 (1,027 ) (58 ) Net cash provided (used) by financing activities 671 (923 ) (539 ) (522 ) (225 ) (1,538 ) Effect of foreign exchange rate changes on cash and cash equivalents (5 ) — (3 ) (8 ) — (16 ) Increase (decrease) in cash and cash equivalents (2 ) — 26 (391 ) — (367 ) Cash and cash equivalents, beginning of year 3 — 144 5,237 — 5,384 Cash and cash equivalents, end of year $ 1 $ — $ 170 $ 4,846 $ — $ 5,017 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 Total Costs and Expenses 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 tax (expense) benefit (13 ) 85 (114 ) (318 ) — (360 ) Equity in income (loss) of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method 331 425 264 62 (1,041 ) 41 Net income (loss) 253 275 634 127 (1,041 ) 248 Net loss attributable to noncontrolling interests — — — (5 ) — (5 ) Net income (loss) 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 251 — — 276 — 527 Investments in consolidated subsidiaries 9,166 7,191 1,607 794 (18,758 ) — Goodwill and intangibles 12 — 2,786 459 — 3,257 Other 176 104 1,292 2,555 (205 ) 3,922 Total Assets $ 10,526 $ 8,281 $ 18,024 $ 48,038 $ (38,192 ) $ 46,677 Liabilities and Equity: Debt $ 5,045 $ 5,187 $ 3,302 $ 29,987 $ (17,220 ) $ 26,301 Trade payables 221 112 2,083 4,954 (2,028 ) 5,342 Other liabilities 458 (79 ) 3,365 6,633 (186 ) 10,191 Total Equity 4,802 3,061 9,274 6,464 (18,758 ) 4,843 Total Equity and Liabilities $ 10,526 $ 8,281 $ 18,024 $ 48,038 $ (38,192 ) $ 46,677 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 (loss) $ 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 (495 ) (283 ) 1,590 528 1,392 Net cash provided (used) by operating activities 315 (220 ) 558 2,646 (513 ) 2,786 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 ) 285 1,025 663 (948 ) 911 Net cash provided (used) by investing activities (47 ) 285 165 (1,026 ) (325 ) (948 ) Financing Activities: Net increase (decrease) in indebtedness — (3 ) 10 (652 ) — (645 ) Dividends paid (291 ) (1 ) (187 ) (329 ) 511 (297 ) Other, net 26 (61 ) (437 ) 168 327 23 Net cash provided (used) by financing activities (265 ) (65 ) (614 ) (813 ) 838 (919 ) 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 Total Costs and Expenses 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 tax (expense) benefit 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 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 ) (736 ) (574 ) (1,077 ) 1,649 (1,167 ) Net cash provided (used) by operating activities 295 33 768 (186 ) (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 additions from retail receivables and related securitizations — — — 39 — 39 (Deposits in) withdrawals from subsidiaries’ cash management pools — — (757 ) — 757 — Other, net 294 (3 ) (121 ) (259 ) 916 827 Net cash provided (used) by investing activities 268 (3 ) (1,041 ) (2,867 ) 1,673 (1,970 ) Financing Activities: Net increase (decrease) in indebtedness (205 ) 212 (339 ) 3,035 (963 ) 1,740 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 ) (30 ) 301 3,096 (1,444 ) 1,376 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 . |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 23: Subsequent Event On January 31, 2017, CNH Industrial completed its acquisition, previously announced on October 31, 2016, of the agricultural grass and soil business of Kongskilde Industries. Effective February 1, 2017, CNH Industrial will take over the business unit that develops, manufactures and sells solutions for agricultural applications for tillage, seeding and hay & forage under various brands, including Kongskilde, Överum, Howard and JF. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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. Certain prior period balances have been reclassified to conform to the current period presentation resulting from the adoption of new accounting pronouncements. 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. There were no significant business combinations in 2015 or 2016. |
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. Actual results could differ from these estimates. |
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 $145 million, $155 million, and $218 million for the years ended December 31, 2016, 2015, and 2014, 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, 2016, 2015, and 2014, the Company recorded a net gain of $50 million, a net loss $581 million, and a net loss of $340 million, respectively. Included in the net gain (loss) in 2016, 2015, and 2014 were the re-measurement charges of $27 million, $150 million, and $71 million, respectively, on the Venezuelan bolivar fuerte (“Bs.F., or “bolivars”) rate described below, as well as a charge of $22 million and $40 million due to the devaluation of net monetary assets of Argentinian subsidiaries in 2016 and 2015. 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 $149 million, $289 million, and $132 million for the three years ended December 31, 2016, 2015, and 2014, 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. In January 2014, the Venezuelan government enacted changes affecting the country’s currency exchange and other controls, and established a new foreign currency administration, the National Center for Foreign Commerce (“CENCOEX”). CENCOEX assumed control of the sale and purchase of foreign currency in Venezuela, and established the official exchange rate of 6.3 bolivars to 1.0 U.S. dollar. Additionally, the government expanded the types of transactions that may be subject to the weekly auction mechanism under SICAD I. For a period of time, the Venezuelan government announced plans for SICAD II, which was intended to more closely resemble a market-driven exchange. In February 2015, the Venezuelan government announced that the two previously used currency conversion mechanisms (SICAD I and SICAD II) had been merged into a single mechanism called SICAD and introduced a new open market exchange rate system, SIMADI. The changes created a three-tiered system. In the third quarter of 2015, due to progressively deteriorating economic conditions in Venezuela, management determined that the SIMADI rate was the most appropriate legally available rate and remeasured the net monetary assets of CNH Industrial’s Venezuelan subsidiary, resulting in a pre- and after-tax charge of $150 million recorded in the line item “Other, net” in the Company’s consolidated statement of operations. In March 2016, the Venezuelan government devalued its currency and reduced its existing three-tiered system to a two-tiered system by eliminating the SICAD rate. The CENCOEX rate, which was the official rate available for purchases and sales of essential items, was changed to 10 bolivars per U.S. dollar from 6.3 and is now known as DIPRO. The Venezuelan government also announced that the SIMADI rate would be replaced by the DICOM rate, which is allowed to float freely and fluctuates based on supply and demand. As a result, management determined that the DICOM rate was the most appropriate legally available rate and remeasured the net monetary assets of the Company’s Venezuelan subsidiary at the end of each quarter of 2016, except for those cases in which the Group had a legally enforceable right of obtaining U.S. dollars at a different predetermined exchange rate. The DICOM exchange rate used by CNH Industrial at December 31, 2016 was 673.76 bolivars per U.S. dollar resulting in a re-measurement charge of $12 million in 2016. Furthermore, at December 31, 2016, following an assessment of the recoverability of a monetary asset for which CNH Industrial had a legally enforceable right of obtaining U.S. dollars at a different predetermined exchange rate, the Group re-measured that asset at the DICOM rate resulting in a remeasurement charge of $15 million. Additionally, CNH Industrial assessed for impairment a non-monetary asset resulting in the recognition of an impairment charge of $19 million attributable to the currency devaluation, while the market value in local currency did not decrease. As a result, in December 2016, CNH Industrial recorded a re-measurement and impairment charge for a total of $34 million in the line item “Other, Net”. CNH Industrial’s results of operations in Venezuela for the year ended December 31, 2016 were negligible as a percentage of both CNH Industrial’s net revenues and trading profit. As of December 31, 2016, 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 $84 million. The functional currency of CNH Industrial’s Argentinian subsidiaries is the U.S. dollar. At the end of each period, CNH Industrial re-measures the net monetary assets of its Argentinian subsidiaries from the Argentine Peso into the U.S. dollar. In 2016, CNH Industrial recorded a charge of $22 million following the re-measurement of such net monetary assets. At December 31, 2015, CNH Industrial held $50 million in principal amount of bonds offered to importers by the Argentinian government in order to help importers settle their backlog of payments. These bonds were regularly repaid by the government during 2016. |
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 $930 million, $945 million, and $944 million for the years ended December 31, 2016, 2015, and 2014, respectively. For 2016, the amount includes the charge of $60 million paid on repurchase of portions of Case New Holland Industrial Inc. 7.875% Notes due 2017. CNH Industrial paid taxes of $104 million, $345 million, and $744 million in 2016, 2015, and 2014, 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 the Company’s 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 |
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 2016 and 2015, 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. |
Impairment of Long-Lived Assets, Goodwill and Other Intangible Assets | Impairment of Long-Lived Assets, Goodwill and Other Intangible Assets 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. |
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 Debt Issuance Costs In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements Interest—Imputation of Interest Going Concern In August 2014, the FASB issued ASU 2014-15, Uncertainties About an Entity’s Ability to Continue as a Going Concern 2016 Not Yet Adopted Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC 606) The Company plans to adopt the new standard effective January 1, 2018. The Company is currently evaluating which transition method to elect. The Company is still evaluating the overall effect the adoption of this standard will have, but in its implementation efforts to date has not identified any matters that it currently believes would result in a material effect on its consolidated net income/(loss), net equity or cash flows. Inventory In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory Financial Instruments In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities Financial Instruments - Overall In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments Financial Instruments - Credit Losses Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Leases Investments In March 2016, the FASB issued ASU 2016-07, Investments—Equity Method and Joint Ventures Share-based Compensation In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Statement of Cash Flows In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”) that changes the presentation of restricted cash and cash equivalents on the statement of cash flows. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statement of cash flows. ASU 2016-18 is effective for annual reporting periods beginning after December 15, 2017, and early adoption is permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. Goodwill Impairment In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 | |
Receivables [Abstract] | |
Summary of Financing Receivables | A summary of financing receivables included in the consolidated balance sheets as of December 31, 2016 and 2015 is as follows: 2016 2015 (in millions) Retail $ 9,949 $ 10,344 Wholesale 8,583 8,611 Other 130 46 Total $ 18,662 $ 19,001 |
Maturities of Financing Receivables | Contractual maturities of financing receivables as of December 31, 2016 are as follows: Amount (in millions) 2017 $ 11,171 2018 2,396 2019 2,034 2020 1,389 2021 1,479 2022 and thereafter 193 Total $ 18,662 |
Summary of Aging of Receivables | The aging of financing receivables as of December 31, 2016 and 2015 is as follows (in millions): 2016 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 $ 27 $ — $ — $ 27 $ 7,172 $ 7,199 $ 32 $ 7,231 EMEA — — — — 348 348 — 348 LATAM 14 — — 14 1,662 1,676 73 1,749 APAC 1 — — 1 620 621 — 621 Total Retail $ 42 $ — $ — $ 42 $ 9,802 $ 9,844 $ 105 $ 9,949 Wholesale NAFTA $ — $ — $ — $ — $ 3,591 $ 3,591 $ 39 $ 3,630 EMEA 29 2 — 31 3,847 3,878 23 3,901 LATAM — — — — 594 594 2 596 APAC 2 — 6 8 448 456 — 456 Total Wholesale $ 31 $ 2 $ 6 $ 39 $ 8,480 $ 8,519 $ 64 $ 8,583 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 |
Allowance for Credit Losses Activity | Allowance for credit losses activity for the three years ended December 31, 2016, 2015 and 2014 is as follows (in millions): December 31, 2016 Retail Wholesale Other Total Opening balance $ 394 $ 158 $ — $ 552 Provision 52 60 — 112 Charge-offs, net of recoveries (82 ) (14 ) — (96 ) Foreign currency translation and other 10 (4 ) — 6 Ending balance 374 200 — 574 Ending balance: Individually evaluated for impairment 179 149 — 328 Ending balance: Collectively evaluated for impairment 195 51 — 246 Receivables: Ending balance 9,949 8,583 130 18,662 Ending balance: Individually evaluated for impairment 317 491 — 808 Ending balance: Collectively evaluated for impairment $ 9,632 $ 8,092 $ 130 $ 17,854 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 |
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. 2016 2015 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 EMEA $ 90 $ 90 $ — $ 74 $ 74 $ 74 $ — $ 79 LATAM $ — $ — $ — $ — $ — $ — $ — $ — APAC $ — $ — $ — $ — $ — $ — $ — $ — Wholesale NAFTA $ — $ — $ — $ — $ — $ — $ — $ — EMEA $ — $ — $ — $ — $ 33 $ 33 $ — $ 35 LATAM $ — $ — $ — $ — $ — $ — $ — $ — APAC $ — $ — $ — $ — $ — $ — $ — $ — With an allowance recorded Retail NAFTA $ 31 $ 30 $ 18 $ 31 $ 54 $ 53 $ 18 $ 52 EMEA $ 171 $ 171 $ 143 $ 195 $ 238 $ 238 $ 167 $ 263 LATAM $ 23 $ 23 $ 17 $ 23 $ — $ — $ — $ — APAC $ 2 $ 2 $ 1 $ 2 $ 9 $ 9 $ 2 $ 12 Wholesale NAFTA $ 44 $ 43 $ 4 $ 46 $ 82 $ 82 $ 3 $ 92 EMEA $ 420 $ 420 $ 131 $ 378 $ 607 $ 607 $ 95 $ 657 LATAM $ 22 $ 15 $ 12 $ 18 $ 25 $ 21 $ 7 $ 22 APAC $ 5 $ 5 $ 2 $ 18 $ 20 $ 20 $ 20 $ 18 Total Retail $ 317 $ 316 $ 179 $ 325 $ 416 $ 414 $ 187 $ 443 Wholesale $ 491 $ 483 $ 149 $ 460 $ 767 $ 763 $ 125 $ 824 |
Carrying Amount of Restricted Assets Included In Financing Receivables | At December 31, 2016 and 2015, the carrying amount of such restricted assets included in financing receivables above are the following (in millions): Restricted Receivables 2016 2015 Retail note and finance lease receivables $ 7,140 $ 7,695 Wholesale receivables 6,445 6,189 Total $ 13,585 $ 13,884 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 consist of the following: 2016 2015 (in millions) Raw materials $ 1,185 $ 1,254 Work-in-process 757 747 Finished goods 3,667 3,689 Total Inventories $ 5,609 $ 5,690 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment | A summary of property, plant and equipment as of December 31, 2016, and 2015 is as follows: 2016 2015 (in millions) Land and industrial buildings $ 3,075 $ 3,056 Plant, machinery and equipment 7,959 7,857 Assets sold with buy-back commitment 3,021 2,775 Construction in progress 131 191 Other 782 799 Gross property, plant and equipment 14,968 14,678 Accumulated depreciation (8,571 ) (8,197 ) Net property, plant and equipment $ 6,397 $ 6,481 |
Summary of Property, Plant and Equipment Recorded under Finance Leases | A summary of property, plant and equipment recorded under capital leases¹ as of December 31, 2016, and 2015 is as follows: 2016 2015 (in millions) Gross capital leases ² $ 169 $ 139 Accumulated depreciation (53 ) (50 ) Net capital leases $ 116 $ 89 ( 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, 2016 | |
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, 2016 and 2015 is as follows: 2016 2015 (in millions) Equity method $ 479 $ 519 Cost method 8 8 Total $ 487 $ 527 |
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, 2016 2015 2014 (in millions) Net revenue $ 3,670 $ 3,911 $ 4,849 Income before taxes $ 99 $ 127 $ 251 Net income $ 48 $ 68 $ 194 As of December 31, 2016 2015 (in millions) Total Assets $ 6,919 $ 6,867 Total Liabilities $ 5,758 $ 5,545 Total Equity $ 1,161 $ 1,322 |
Equipment on Operating Leases (
Equipment on Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Summary of Equipment on Operating Leases | A summary of equipment on operating leases as of December 31, 2016 and 2015 is as follows: 2016 2015 (in millions) Equipment on operating leases $ 2,253 $ 2,127 Accumulated depreciation (346 ) (292 ) Net equipment on operating leases $ 1,907 $ 1,835 |
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, 2016, are as follows: Amount (in millions) 2017 $ 176 2018 114 2019 44 2020 17 2021 5 Beyond 5 years — Total $ 356 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 are as follows: Agricultural Equipment Construction Equipment Commercial Vehicles Powertrain Financial Services Total (in millions) Balance at January 1, 2015 $ 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 Impact of foreign exchange 3 — (2 ) — 1 2 Balance at December 31, 2016 $ 1,648 $ 588 $ 55 $ 5 $ 153 $ 2,449 |
Other Intangible Assets and Related Accumulated Amortization | As of December 31, 2016, and 2015, the Company’s other intangible assets and related accumulated amortization consisted of the following: 2016 2015 Weighted Avg. Life Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in millions) Other intangible assets subject to amortization: Dealer networks 15 $ 316 $ 168 $ 148 $ 289 $ 143 $ 146 Patents, concessions and licenses and other 5-25 1,649 1,284 365 1,569 1,187 382 1,965 1,452 513 1,858 1,330 528 Other intangible assets not subject to amortization: Trademarks 274 — 274 282 — 282 Total Other intangible assets $ 2,239 $ 1,452 $ 787 $ 2,140 $ 1,330 $ 810 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Debt | A summary of debt as of December 31, 2016 and 2015, including drawings under credit lines, is as follows: 2016 2015 Industrial Activities Financial Services Consolidated Industrial Activities Financial Services Consolidated (in millions) Bonds: Payable in 2016, interest rate of 7.250% $ — $ — $ — $ 254 $ — $ 254 Payable in 2017, interest rate of 7.875% 636 — 636 1,500 — 1,500 Payable in 2018, interest rate of 6.250% 1,265 — 1,265 1,306 — 1,306 Payable in 2019, interest rate of 2.750% 1,054 — 1,054 1,089 — 1,089 Payable in 2021, interest rate of 2.875% 738 — 738 762 — 762 Payable in 2023, interest rate of 2.875% 527 — 527 — — — Payable in 2023, interest rate of 4.500% 600 — 600 — — — Payable in 2025, interest rate of 3.500% 105 — 105 109 — 109 Payable in 2028, interest rate of 3.875% 53 — 53 — — — Payable in 2016, interest rate of 6.250% — — — — 500 500 Payable in 2017, interest rate of 3.250% — 500 500 — 500 500 Payable in 2018, interest rate of 3.625% — 600 600 — 600 600 Payable in 2018, interest rate of 3.875% — 600 600 — 600 600 Payable in 2019, interest rate of 3.375% — 500 500 — 500 500 Payable in 2020, interest rate of 4.375% — 600 600 — 600 600 Payable in 2021, interest rate of 4.875% — 500 500 — — — Payable in 2021, interest rate of 3.875% — 400 400 — — — Hedging effects, bond premium/discount, and unamortized issuance costs (34 ) (31 ) (65 ) (11 ) (20 ) (31 ) Total Bonds $ 4,944 $ 3,669 $ 8,613 $ 5,009 $ 3,280 $ 8,289 Asset-backed debt 8 11,776 11,784 13 12,986 12,999 Other Debt 1,742 3,137 4,879 2,192 2,821 5,013 Intersegment debt 997 1,479 — 1,046 2,089 — Total Debt $ 7,691 $ 20,061 $ 25,276 $ 8,260 $ 21,176 $ 26,301 |
Minimum Annual Repayment of Debt | A summary of the minimum annual repayments of debt as of December 31, 2016, for 2017 and thereafter is as follows: Industrial Activities Financial Services Consolidated (in millions) 2017 $ 1,331 $ 8,948 $ 10,279 2018 1,640 4,095 5,735 2019 1,504 2,365 3,869 2020 90 1,811 1,901 2021 763 1,198 1,961 2022 and thereafter 1,366 165 1,531 Intersegment 997 1,479 — Total $ 7,691 $ 20,061 $ 25,276 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, 2015, and 2014 are as follows: 2016 2015 2014 (in millions) Parent country source $ (73 ) $ 11 $ (12 ) Foreign sources 64 556 1,101 Income (loss) before taxes and equity in income of unconsolidated subsidiaries and affiliates $ (9 ) $ 567 $ 1,089 |
Income Taxes - Provision for Income Taxes | The provision for income taxes for the years ended December 31, 2016, 2015 and 2014 consisted of the following: 2016 2015 2014 (in millions) Current income taxes $ 229 $ 263 $ 489 Deferred income taxes 69 97 (22 ) Total income tax provision $ 298 $ 360 $ 467 |
Income Taxes - Reconciliation of Income Tax Expense | A reconciliation of CNH Industrial’s income tax expense for the years ended December 31, 2016, 2015 and 2014 is as follows: 2016 2015 2014 (in millions) Tax provision at the parent statutory rate $ (2 ) $ 115 $ 234 Foreign income taxed at different rates (11 ) 56 149 Change in valuation allowance 133 111 148 Italian IRAP taxes 22 6 38 Tax contingencies (2 ) 26 (60 ) Tax credits and incentives (88 ) (43 ) (83 ) Venezuela remeasurement and impairment charges 16 51 — Non-deductible EC Settlement 160 — — Change in tax rate or law 14 23 — Withholding taxes 11 8 7 Other 45 7 34 Total income tax provision $ 298 $ 360 $ 467 |
Income Taxes - Components of Net deferred Tax Assets | Deferred Income Tax Assets and Liabilities The components of net deferred tax assets as of December 31, 2016 and 2015 are as follows: 2016 2015 (in millions) Deferred tax assets: Inventories $ 96 $ 89 Warranty and campaigns 183 156 Allowance for credit losses 180 162 Marketing and sales incentive programs 326 347 Other risk and future charges reserve 216 200 Pension, postretirement and postemployment benefits 553 580 Measurement of derivative financial instruments 36 — Research and development costs 423 395 Other reserves 359 400 Tax credits and loss carry forwards 767 712 Less: Valuation allowances (1,490 ) (1,361 ) Total deferred tax assets $ 1,649 $ 1,680 Deferred tax liabilities: Property, plant and equipment 481 432 Measurement of derivative financial instruments — 2 Other 315 330 Total deferred tax liabilities 796 764 Net deferred tax assets $ 853 $ 916 Net deferred tax assets are reflected in the accompanying consolidated balance sheets as of December 31, 2016 and 2015 as follows: 2016 2015 (in millions) Deferred tax assets $ 937 $ 1,250 Deferred tax liabilities (84 ) (334 ) Net deferred tax assets $ 853 $ 916 |
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: 2016 2015 (in millions) Balance, beginning of year $ 325 $ 343 Additions based on tax positions related to the current year 30 31 Additions for tax positions of prior years 70 46 Reductions for tax positions of prior years (65 ) (72 ) Reductions for tax positions as a result of lapse of statute (10 ) (10 ) Settlements (32 ) (13 ) Balance, end of year $ 318 $ 325 |
Employee Benefit Plans and Po41
Employee Benefit Plans and Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015: Pension Healthcare ˡ Other ˡ 2016 2015 2016 2015 2016 2015 (in millions) Change in benefit obligations: Beginning benefit obligation $ 3,281 $ 3,619 $ 1,157 $ 1,243 $ 423 $ 526 Service cost 30 30 7 8 13 15 Interest cost 87 112 39 48 4 5 Plan participants’ contributions 3 3 8 9 — — Actuarial loss (gain) 285 (159 ) (37 ) (64 ) 22 (37 ) Gross benefits paid (221 ) (190 ) (71 ) (80 ) (31 ) (45 ) Plan amendments (6 ) — — — — — Currency translation adjustments and other (271 ) (134 ) 2 (7 ) (13 ) (41 ) Ending benefit obligation $ 3,188 3,281 $ 1,105 1,157 $ 418 423 Change in the fair value of plan assets: Beginning plan assets $ 2,480 2,686 $ 105 107 $ — — Actual return on plan assets 194 (9 ) 8 — — — Employer contributions 35 27 — — — — Plan participants’ contributions 3 3 — — — — Gross benefits paid (193 ) (161 ) (2 ) (2 ) — — Currency translation adjustments and other (191 ) (66 ) — — — — Ending plan assets 2,328 2,480 111 105 — — Funded status: $ (860 ) $ (801 ) $ (994 ) $ (1,052 ) $ (418 ) $ (423 ) (1) 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, 2016 and 2015: U.S. U.K Germany ˡ Other Countries ˡ 2016 2015 2016 2015 2016 2015 2016 2015 (in millions) Change in benefit obligations: Beginning benefit obligation $ 1,208 $ 1,291 $ 1,332 $ 1,468 $ 438 $ 523 $ 303 $ 337 Service cost 8 6 6 7 3 4 13 13 Interest cost 39 48 37 50 6 8 5 6 Plan participants’ contributions — — — — — — 3 3 Actuarial loss (gain) 27 (54 ) 247 (74 ) 12 (16 ) (1 ) (15 ) Gross benefits paid (120 ) (83 ) (57 ) (64 ) (27 ) (29 ) (17 ) (14 ) Plan amendments — — — — — — (6 ) — Currency translation adjustments and other (3 ) — (250 ) (55 ) (13 ) (52 ) (5 ) (27 ) Ending benefit obligation $ 1,159 1,208 $ 1,315 1,332 $ 419 438 $ 295 303 Change in the fair value of plan assets: Beginning plan assets $ 1,182 1,295 $ 1,028 1,105 $ 5 5 $ 265 281 Actual return on plan assets 80 (30 ) 106 13 — — 8 8 Employer contributions — — 25 17 — — 10 10 Plan participants’ contributions — — — — — — 3 3 Gross benefits paid (120 ) (83 ) (57 ) (64 ) — — (16 ) (14 ) Currency translation adjustments and other (3 ) — (184 ) (43 ) — — (4 ) (23 ) Ending plan assets $ 1,139 $ 1,182 $ 918 $ 1,028 $ 5 $ 5 $ 266 $ 265 Funded status: $ (20 ) $ (26 ) $ (397 ) $ (304 ) $ (414 ) $ (433 ) $ (29 ) $ (38 ) (1) Pension benefits in Germany and some other countries are not required to be prefunded. |
Net Amounts Recognized in Consolidated Balance Sheets | Net amounts recognized in the consolidated balance sheets as of December 31, 2016 and 2015 consist of: Pension Healthcare Other 2016 2015 2016 2015 2016 2015 (in millions) Other assets $ 4 $ 6 $ — $ — $ — $ — Pension, postretirement and other postemployment benefits (864 ) (807 ) (994 ) (1,052 ) (418 ) (423 ) Net liability recognized at end of year $ (860 ) $ (801 ) $ (994 ) $ (1,052 ) $ (418 ) $ (423 ) |
Pre-tax Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | Pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 2016 consist of: Pension Healthcare Other (in millions) Unrecognized actuarial losses $ 1,013 $ 142 $ 79 Unrecognized prior service credit (8 ) (7 ) (3 ) Accumulated other comprehensive loss $ 1,005 $ 135 $ 76 |
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 2016 2015 (in millions) Accumulated benefit obligation $ 3,011 $ 3,182 Fair value of plan assets $ 2,183 $ 2,404 |
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 2016 2015 2016 2015 2016 2015 (in millions) Projected benefit obligation $ 3,119 $ 3,211 $ 1,105 $ 1,157 $ 418 $ 423 Fair value of plan assets $ 2,254 $ 2,404 $ 111 $ 105 $ — $ — |
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, 2016, 2015, and 2014: Pension Healthcare Other 2016 2015 2014 2016 2015 2014 2016 2015 2014 (in millions) Service cost $ 30 $ 30 $ 27 $ 7 $ 8 $ 9 $ 13 $ 15 $ 18 Interest cost 87 112 134 39 48 51 4 5 10 Expected return on assets (113 ) (140 ) (151 ) (6 ) (7 ) (7 ) — — — Amortization of: Prior service cost (credit) — — 1 (4 ) (10 ) (12 ) (1 ) 1 2 Actuarial loss (gain) 76 83 64 15 26 5 8 (7 ) 13 Settlement loss and other — — — — — — 1 — 1 Net periodic benefit cost $ 80 $ 85 $ 75 $ 51 $ 65 $ 46 $ 25 $ 14 $ 44 |
Net Periodic Benefit Cost Recognized in Net Income and Other Changes in Plan Assets and Benefit Obligations | 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 2016 consist of: Pension Healthcare Other (in millions) Net periodic benefit cost $ 80 $ 51 $ 25 Benefit adjustments included in other comprehensive (income) loss: Net actuarial losses (gains) 204 (39 ) 21 Amortization of actuarial losses (76 ) (15 ) (8 ) Amortization of prior service (cost) credit — 4 1 Currency translation adjustments and other (90 ) — — Total recognized in other comprehensive (income) loss 38 (50 ) 14 Total recognized in comprehensive loss $ 118 $ 1 $ 39 |
Pre-tax Amounts Expected to be Amortized from Accumulated Other Comprehensive Income (Loss) | Pre-tax amounts expected to be amortized in 2017 from accumulated other comprehensive loss consist of: Pension Healthcare Other (in millions) Actuarial losses $ 89 $ 6 $ 1 Prior service cost (credit) (1 ) (3 ) 1 Total $ 88 $ 3 $ 2 |
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 at December 31, 2016 and 2015, and the net periodic benefit cost of CNH Industrial’s defined benefit plans for the years ended December 31, 2016, 2015, and 2014: Pension plans Healthcare plans Other (in %) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Assumptions used to determine funded status at December 31 Weighted-average discount rate 2.82 3.49 3.22 3.97 4.27 3.96 1.54 2.06 1.81 Weighted-average rate of compensation increase 2.95 2.98 3.25 2.50 2.50 3.00 1.19 1.33 2.27 Weighted-average, initial healthcare cost trend rate n/a n/a n/a 6.72 6.98 7.23 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 Assumptions used to determine expense Weighted-average discount rates - service cost 2.91 3.22 4.05 4.21 3.96 4.67 2.18 1.81 3.00 Weighted-average discount rates - interest cost 2.82 3.22 4.05 3.49 3.96 4.67 1.89 1.81 3.00 Weighted-average rate of compensation increase 2.98 3.25 3.35 2.50 3.00 3.42 1.33 2.27 2.63 Weighted-average long-term rates of return on plan assets 5.00 5.38 5.85 6.25 6.75 6.75 n/a n/a n/a Weighted-average, initial healthcare cost trend rate n/a n/a n/a 6.98 7.23 8.19 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 2016 Healthcare Plan benefit expense $ 7 $ (5 ) Total increase/(decrease) in accumulated Healthcare benefit obligations as of December 31, 2016 $ 128 $ (103 ) |
Weighted Average Target Asset Allocation for All Plans | Weighted average target asset allocation for all plans for 2016 are as follows: All Plans Asset category: Equity securities 20 % Debt securities 52 % Cash/Other 28 % |
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, 2016: Total Level 1 Level 2 Level 3 (in millions) Equity securities: U.S. equities $ 352 $ 15 $ 337 $ — Non-U.S. equities — — — — Total Equity securities 352 15 337 — Fixed income securities: U.S. government bonds 308 305 3 — U.S. corporate bonds 474 — 474 — Non-U.S. government bonds 353 13 340 — Non-U.S. corporate bonds 87 — 87 — Mortgage backed securities — — — — Other fixed income 10 — 10 — Total Fixed income securities 1,232 318 914 — Other types of investments: Mutual funds (A) 682 — 682 — Insurance contracts 135 — — 135 Derivatives—credit contracts — — — — Real estate — — — — Other (B) — — — — Total Other types of investments 817 — 682 135 Cash: 38 2 36 — Total $ 2,439 $ 335 $ 1,969 $ 135 (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, 2015: Total Level 1 Level 2 Level 3 (in millions) Equity securities: U.S. equities $ 53 $ 15 $ 38 $ — 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. |
Changes in Level 3 Plan Assets | The following table presents the changes in the Level 3 plan assets for the year ended December 31, 2016: Insurance Contracts Balance at December 31, 2015 $ 133 Actual return on plan assets relating to assets still held at reporting date 3 Purchases 7 Settlements (6 ) Transfers in and/or out of level 3 2 Currency impact (4 ) Balance at December 31, 2016 $ 135 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 |
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) 2017 $ 165 $ 72 $ — $ 32 2018 171 70 — 31 2019 169 69 — 32 2020 172 69 — 34 2021 174 69 — 31 2022 - 2026 854 328 (1 ) 135 Total $ 1,705 $ 677 $ (1 ) $ 295 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Liabilities | A summary of “Other liabilities” as of December 31, 2016 and 2015 is as follows: 2016 2015 (in millions) Advances on buy-back agreements $ 2,429 $ 2,147 Warranty and campaign programs 940 908 Marketing and sales incentive programs 1,182 1,166 Tax payables 714 528 Accrued expenses and deferred income 634 595 Accrued employee benefits 633 572 Legal reserves and other provisions 355 389 Contract reserve 407 396 Restructuring reserve 30 51 Other 681 736 Total $ 8,005 $ 7,488 |
Summary of Recorded Activity for Basic Warranty and Accruals for Campaign Programs | CNH Industrial pays for basic warranty and other service action costs. A summary of recorded activity for the basic warranty and campaign program accrual for the years ended December 31, 2016 and 2015 are as follows: 2016 2015 (in millions) Balance, beginning of year $ 908 $ 1,020 Current year additions 806 738 Claims paid (706 ) (723 ) Currency translation adjustment and other (68 ) (127 ) Balance, end of year $ 940 $ 908 |
Schedule Of Restructuring Activity | The following table sets forth restructuring activity for the years ended December 31, 2016, 2015 and 2014: Severance and Other Employee Costs Facility Related Costs Other Restructuring Total (in millions) Balance at January 1, 2014 $ 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 Restructuring charges 56 (1 ) (11 ) 44 Reserves utilized: cash (55 ) — (4 ) (59 ) Reserves utilized: non-cash — — (3 ) (3 ) Currency translation adjustments (8 ) 3 2 (3 ) Balance at December 31, 2016 $ 23 $ 7 $ - $ 30 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2017 $ 72 2018 51 2019 39 2020 28 2021 25 2022 and beyond 21 Total minimum rental commitments $ 236 |
Financial Services has Various Agreements to Extend Credit | At December 31, 2016, 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 $ 6,917 $ 3,728 $ 3,189 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments All Other Investments [Abstract] | |
Fair Values of Derivatives | The fair values of CNH Industrial’s derivatives at December 31, 2016 and 2015 in the consolidated balance sheets are recorded as follows: 2016 2015 (in millions) Derivatives Designated as Hedging Instruments: Assets: Foreign exchange contracts: $ 47 $ 61 Interest rate derivatives: 15 30 Cross currency swaps: — 16 Total Assets $ 62 $ 107 Liabilities Foreign exchange contracts: $ (105 ) $ (29 ) Interest rate derivatives: (17 ) (6 ) Total Liabilities $ (122 ) $ (35 ) Derivatives Not Designated as Hedging Instruments: Assets: Foreign exchange contracts: $ 31 $ 100 Interest rate derivatives: 2 4 Total Assets $ 33 $ 104 Liabilities Foreign exchange contracts: $ (116 ) $ (30 ) Interest rate derivatives: (11 ) (4 ) Total Liabilities $ (127 ) $ (34 ) |
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, 2016, 2015, and 2014 are recorded in the following accounts: 2016 2015 2014 (in millions) Fair Value Hedges Interest rate derivatives—Interest expense $ (33 ) $ (8 ) $ (8 ) Gains/(losses) on hedged items—Interest expense $ 33 $ 8 $ 8 Cash Flow Hedges Recognized in accumulated other comprehensive income (effective portion): Foreign exchange contracts—accumulated other comprehensive income $ (72 ) $ (19 ) $ (251 ) Interest rate derivatives—accumulated other comprehensive income $ 13 $ (39 ) $ 1 Reclassified from accumulated other comprehensive income (effective portion): Foreign exchange contracts—Net sales $ 55 $ 16 $ 14 Foreign exchange contracts—Cost of goods sold $ (4 ) $ (211 ) $ (7 ) Foreign exchange contracts—Other, net $ (5 ) $ (10 ) $ (30 ) Interest rate derivatives—Interest expense $ (4 ) $ (7 ) $ (12 ) Not Designated as Hedges Foreign exchange contracts—Other, net $ (231 ) $ 115 $ (14 ) |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2016 and 2015: Level 1 Level 2 Total 2016 2015 2016 2015 2016 2015 (in millions) Assets Foreign exchange derivatives $ — $ — $ 78 $ 161 $ 78 $ 161 Interest rate derivatives — — 17 34 17 34 Cross currency swaps — — — 16 — 16 Available for sale securities 1 1 — — 1 1 Total Assets $ 1 $ 1 $ 95 $ 211 $ 96 $ 212 Liabilities Foreign exchange derivatives $ — $ — $ (221 ) $ (59 ) $ (221 ) $ (59 ) Interest rate derivatives — — (28 ) (10 ) (28 ) (10 ) Total Liabilities $ — $ — $ (249 ) $ (69 ) $ (249 ) $ (69 ) |
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, 2016 and 2015 are as follows: 2016 2015 Carrying Amount Fair Value Carrying Amount * Fair Value (in millions) Financing receivables $ 18,662 $ 18,554 $ 19,001 $ 18,868 Debt $ 25,276 $ 25,372 $ 26,301 $ 26,371 (*) Certain amounts have been reclassified to conform to the current presentation of debt issuance costs in the consolidated balance sheet as of December 31, 2015, following the adoption of new guidance effective January 1, 2016. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Changes in the Composition of the Share of CHN Industrial | Changes in the composition of the share capital of CNH Industrial during 2016, 2015, and 2014 are as follows: (number of shares) CNH Industrial N.V. Common Shares CNH N.V. Special Voting Shares Total CNH Industrial N.V. Shares 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 Capital increase 1,693,695 — 1,693,695 Common stock repurchases (2,111,781 ) — (2,111,781 ) Retirement of special voting shares — (981,003 ) (981,003 ) Total CNH Industrial N.V. shares at December 31, 2016 1,361,630,903 412,268,203 1,773,899,106 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016) were 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% |
Additional Share Based Compensation Information | The table below provides additional share-based compensation information for the years ended December 31, 2016, 2015, and 2014: 2016 2015 2014 (in millions) Total intrinsic value of options exercised and shares vested $ 12 $ 33 $ 42 Fair value of shares vested $ 14 $ 36 $ 32 Cash received from share award exercises $ — $ 8 $ 10 Tax benefit of options exercised and shares vested $ — $ — $ — |
CNH EIP [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Outstanding Stock Options | The following table summarizes outstanding stock options under the CNH EIP at December 31, 2016: 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 3,378,704 1.15 $ 8.78 $ — 3,378,704 1.15 $ 8.78 $ — $10.01–$15.00 3,832,177 0.16 $ 10.15 $ — 3,832,177 0.16 $ 10.15 $ — $ — $ — (A) The difference between the exercise price of share-based compensation and the year-end market price of CNH Industrial common shares of $8.69. No amount is shown for awards with an exercise price that is greater than the year-end market price. |
Stock Option Activity | The following table reflects the stock option activity under the CNH EIP for the year ended three and twelve months ended December 31, 2016: 2016 Shares Weighted- Average Exercise Price Outstanding at beginning of year 8,642,903 $ 9.25 Forfeited — $ — Expired (1,432,022 ) $ 7.96 Exercised — $ — Outstanding at end of year 7,210,881 $ 9.51 Exercisable at end of year 7,210,881 $ 9.51 |
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, 2016: 2016 Performance Shares Weighted Average Grant-Date Fair Value Nonvested at beginning of year 11,591,260 $ 8.64 Granted 471,200 $ 5.13 Forfeited (337,200 ) $ 8.23 Vested — $ — Nonvested at end of year 11,725,260 $ 8.51 |
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, 2016: 2016 Restricted Shares Weighted Average Grant-Date Fair Value Nonvested at beginning of year 3,745,520 $ 9.07 Granted 2,046,280 $ 7.30 Forfeited (110,420 ) $ 8.16 Vested (1,448,672 ) $ 9.35 Nonvested at end of year 4,232,708 $ 8.14 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, 2015 and 2014. (A) For the twelve months ended December 31, 2016, 2015, and 2014, 7.3 million, 7.9 million, and 8.9 million stock options were excluded from the computation of diluted earnings per share, respectively, due to an anti-dilutive impact. An additional 1.9 million shares of common stock outstanding at December 31, 2016 were excluded from the computation of diluted earnings per share due to the net loss position. |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 Gross Amount Income Taxes Net Amount Unrealized gain (loss) on cash flow hedges $ (101 ) $ 10 $ (91 ) Changes in retirement plans’ funded status (81 ) (8 ) (89 ) Foreign currency translation 319 — 319 Share of other comprehensive loss of entities using the equity method (40 ) — (40 ) Other comprehensive income $ 97 $ 2 $ 99 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 ) 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 Share of other comprehensive loss of entities using the equity method (44 ) — (44 ) Other comprehensive income (loss) $ (471 ) $ 104 $ (367 ) |
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, 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 ) Other comprehensive income (loss), before reclassifications (58 ) (172 ) 316 — (40 ) 46 Amounts reclassified from other comprehensive income (loss) (33 ) 83 — — — 50 Other comprehensive income (loss) 1 (91 ) (89 ) 316 — (40 ) 96 Balance, December 31, 2016 $ (88 ) $ (1,036 ) $ (490 ) $ — $ (153 ) $ (1,767 ) (1) Excluded from the table above is other comprehensive loss allocated to noncontrolling interests of $3, $(1) and $(4) for the years ended December 31, 2016, 2015 and 2014, respectively. |
Schedule of Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in December 31, 2016 and 2015 consisted of the following: Amount Reclassified from Other Comprehensive Income (Loss) Consolidated Statement of Operations line 2016 2015 (in millions) Cash flow hedges $ (55 ) $ (16 ) Net sales 4 211 Cost of goods sold 5 10 Other, net 4 7 Interest expense 9 (64 ) Income taxes $ (33 ) $ 148 Change in retirement plans’ funded status: Amortization of actuarial losses $ 99 $ 102 * Amortization of prior service cost (5 ) (9 ) * (11 ) (11 ) Income taxes $ 83 $ 82 Total reclassifications, net of tax $ 50 $ 230 (*) 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, 2016 | |
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, 2016, 2015, and 2014 are provided below. Years Ended December 31, 2016 2015 2014 (in millions) Operating profit $ 1,439 $ 1,635 $ 2,199 Adjustments/reclassifications to convert from operating profit to U.S. GAAP income before income taxes and equity in income of unconsolidated subsidiaries: Restructuring expenses (44 ) (84 ) (184 ) Interest expenses of Industrial Activities, net of interest income and eliminations (543 ) (479 ) (613 ) Other, net (861 ) (505 ) (313 ) Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates under U.S. GAAP $ (9 ) $ 567 $ 1,089 |
Summary of Operating Segment Information | A summary of additional operating segment information as of and for the years ended December 31, 2016, 2015, and 2014 is as follows: Years Ended December 31, 2016 2015 2014 (in millions) Revenues: Agricultural Equipment $ 10,120 $ 11,025 $ 15,204 Construction Equipment 2,304 2,542 3,346 Commercial Vehicles 9,553 9,542 10,888 Powertrain 3,707 3,560 4,464 Eliminations and other (2,015 ) (1,992 ) (2,704 ) Net sales of Industrial Activities 23,669 24,677 31,198 Financial Services 1,570 1,603 1,828 Eliminations and other (367 ) (368 ) (471 ) Total Revenues $ 24,872 $ 25,912 $ 32,555 Depreciation and Amortization (*): Agricultural Equipment $ 309 $ 303 $ 288 Construction Equipment 69 70 85 Commercial Vehicles 208 198 209 Powertrain 124 123 144 Other activities and adjustments — — (1 ) Depreciation and amortization of Industrial Activities 710 694 725 Financial Services 6 5 6 Depreciation and amortization $ 716 $ 699 $ 731 Expenditures for long-lived assets (*): Agricultural Equipment $ 194 $ 308 $ 408 Construction Equipment 36 47 65 Commercial Vehicles 173 182 391 Powertrain 96 112 136 Other activities 2 4 5 Expenditures for long-lived assets of Industrial Activities 501 653 1,005 Financial Services 2 3 17 Expenditures for long-lived assets $ 503 $ 656 $ 1,022 ( * ) 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: 2016 2015 2014 (in millions) United States $ 4,628 $ 5,533 $ 7,472 France 2,608 2,580 2,913 Italy 2,874 2,524 2,854 Brazil 1,587 1,670 3,708 Germany 1,574 1,565 1,845 Canada 1,182 1,229 1,606 Australia 947 846 926 Spain 921 810 807 Argentina 680 768 570 Poland 435 479 562 Other 6,594 6,900 8,238 Total Revenues from external customers in the rest of world $ 24,030 $ 24,904 $ 31,501 |
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, 2016 2015 (in millions) United States $ 5,081 $ 5,202 Italy 1,510 1,580 France 805 794 Spain 625 579 Germany 808 849 Brazil 436 371 Canada 519 441 China 280 313 Other 1,242 1,191 Total Long-lived assets in the rest of the world $ 11,306 $ 11,320 |
Operating Segments [Member] | |
Schedule of Profit by Reportable Segment | The following summarizes operating profit by reportable segment: Years Ended December 31, 2016 2015 2014 (in millions) Agricultural Equipment $ 818 $ 952 $ 1,770 Construction Equipment 2 90 79 Commercial Vehicles 333 283 29 Powertrain 232 186 223 Eliminations and other (94 ) (79 ) (113 ) Total Operating profit of Industrial Activities $ 1,291 $ 1,432 $ 1,988 Financial Services 478 515 554 Eliminations and other (330 ) (312 ) (343 ) Operating profit $ 1,439 $ 1,635 $ 2,199 |
Related Party Information (Tabl
Related Party Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | These transactions with FCA Group are reflected on the Company’s consolidated statements of operations as follows: 2016 2015 2014 (in millions) Net sales $ 806 $ 762 $ 943 Cost of goods sold $ 466 $ 463 $ 551 Selling, general and administrative expenses $ 148 $ 161 $ 234 12/31/2016 12/31/2015 (in millions) Trade receivables $ 11 $ 14 Trade payables $ 105 $ 136 2016 2015 2014 (in millions) Net sales $ 782 $ 700 $ 843 Cost of goods sold $ 392 $ 430 $ 564 12/31/2016 12/31/2015 (in millions) Trade receivables $ 113 $ 72 Trade payables $ 108 $ 156 |
Supplemental Information (Table
Supplemental Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Supplemental Information of Income Statement | Statement of Operations Industrial Activities Financial Services 2016 2015 2014 2016 2015 2014 (in millions) Revenues Net sales $ 23,669 $ 24,677 $ 31,198 $ — $ — $ — Finance and interest income 153 201 258 1,570 1,603 1,828 Total Revenues $ 23,822 $ 24,878 $ 31,456 $ 1,570 $ 1,603 $ 1,828 Costs and Expenses Cost of goods sold 19,539 20,357 25,536 — — — Selling, general & administrative expenses 1,979 2,032 2,568 283 285 357 Research and development expenses 860 856 1,106 — — — Restructuring expenses 43 82 184 1 2 — Interest expense 694 678 857 521 576 705 Interest compensation to Financial Services 332 314 357 — — — Other, net 855 497 290 294 235 235 Total Costs and Expenses $ 24,302 $ 24,816 $ 30,898 $ 1,099 $ 1,098 $ 1,297 Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates (480 ) 62 558 471 505 531 Income tax (expense) (137 ) (202 ) (280 ) (161 ) (158 ) (187 ) Equity income of unconsolidated subsidiaries and affiliates 34 20 68 24 21 18 Results from intersegment investments 334 368 362 — — 2 Net income (loss) $ (249 ) $ 248 $ 708 $ 334 $ 368 $ 364 |
Supplemental Information of Balance Sheet | Balance Sheets Industrial Activities Financial Services 2016 2015 2016 2015 (in millions) ASSETS Cash and cash equivalents $ 4,649 $ 4,551 $ 368 $ 833 Restricted cash — 15 837 912 Trade receivables 596 555 58 52 Financing receivables 1,592 2,162 19,546 19,974 Inventories, net 5,396 5,513 213 177 Property, plant and equipment, net 6,395 6,479 2 2 Investments in unconsolidated subsidiaries and affiliates 2,886 2,846 153 136 Equipment under operating leases 17 10 1,890 1,825 Goodwill 2,296 2,295 153 152 Other intangible assets, net 772 793 15 17 Deferred tax assets 1,060 1,087 188 163 Derivative assets 98 205 8 6 Other assets 1,505 1,271 382 490 TOTAL ASSETS $ 27,262 $ 27,782 $ 23,813 $ 24,739 LIABILITIES AND EQUITY Debt $ 7,691 $ 8,260 $ 20,061 $ 21,176 Trade payables 5,042 5,176 180 197 Deferred tax liabilities 84 60 310 274 Pension, postretirement and other postemployment benefits 2,256 2,263 20 19 Derivative liability 239 62 21 7 Other liabilities 7,478 7,100 669 611 TOTAL LIABILITIES $ 22,790 $ 22,921 $ 21,261 $ 22,284 Equity 4,451 4,843 2,552 2,455 Redeemable noncontrolling interest 21 18 — — TOTAL LIABILITIES AND EQUITY $ 27,262 $ 27,782 $ 23,813 $ 24,739 |
Supplemental Information of Cash Flow | Cash Flow Statements Industrial Activities Financial Services 2016 2015 2014 2016 2015 2014 (in millions) Operating activities: Net income (loss) $ (249 ) $ 248 $ 708 $ 334 $ 368 $ 364 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 710 694 725 6 5 6 Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments 284 238 257 261 209 152 (Gain) loss from disposal of assets 4 (2 ) (1 ) — — 9 Loss on repurchase of Notes 60 — — — — — Undistributed income (loss) of unconsolidated subsidiaries 37 (104 ) (181 ) (25 ) (17 ) (20 ) Other non-cash items 73 213 101 122 118 153 Changes in operating assets and liabilities: Provisions 42 (61 ) 110 4 13 11 Deferred income taxes 43 59 (110 ) 22 60 71 Trade and financing receivables related to sales, net (7 ) 354 285 (95 ) (50 ) (1,101 ) Inventories, net 141 507 (187 ) (35 ) (34 ) 15 Trade payables 121 (162 ) (790 ) (19 ) 4 (66 ) Other assets and liabilities 460 112 (104 ) 155 220 434 Net cash provided by operating activities 1,719 2,096 813 730 896 28 Investing activities: Additions to retail receivables — — — (3,951 ) (4,498 ) (6,467 ) Collections of retail receivables — — — 4,569 5,146 6,506 Proceeds from sale of assets, net of assets sold under operating leases and assets sold under buy-back commitments 12 11 25 — — — Proceeds from sale of assets under operating leases and assets sold under buy-back commitments 234 320 319 426 406 258 Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and sold under buy-back commitments (501 ) (653 ) (1,005 ) (2 ) (3 ) (17 ) Expenditures for assets under operating lease and assets sold under buy-back commitments (884 ) (875 ) (797 ) (747 ) (976 ) (1,017 ) Other 380 2,151 494 (562 ) (2,019 ) (282 ) Net cash provided (used) by investing activities (759 ) 954 (964 ) (267 ) (1,944 ) (1,019 ) Financing activities: Proceeds from long-term debt 1,754 650 3,356 10,875 9,277 14,021 Payments of long-term debt (2,085 ) (2,483 ) (2,145 ) (11,685 ) (8,185 ) (13,178 ) Net increase (decrease) in other financial liabilities (219 ) 51 (194 ) 87 45 (120 ) Dividends paid (207 ) (297 ) (382 ) (341 ) (207 ) (160 ) Other (58 ) 23 18 105 43 13 Net cash provided (used) by financing activities (815 ) (2,056 ) 653 (959 ) 973 576 Effect of foreign exchange rate changes on cash and cash equivalents (47 ) (565 ) (390 ) 31 (133 ) (101 ) Increase (decrease) in cash and cash equivalents 98 429 112 (465 ) (208 ) (516 ) Cash and cash equivalents, beginning of year 4,551 4,122 4,010 833 1,041 1,557 Cash and cash equivalents, end of year $ 4,649 $ 4,551 $ 4,122 $ 368 $ 833 $ 1,041 |
Supplemental Condensed Consol52
Supplemental Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, and 2015, and for the years ended December 31, 2016, 2015, and 2014. Condensed Statements of Operations For the Year Ended December 31, 2016 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Total Revenues $ 1,370 $ 8 $ 9,759 $ 19,592 $ (5,857 ) $ 24,872 Cost and Expenses: Cost of goods sold 1,142 — 8,130 15,431 (5,164 ) 19,539 Selling, general and administrative expenses 120 — 491 1,651 — 2,262 Research and development expenses 6 — 276 578 — 860 Restructuring expenses 3 — (9 ) 50 — 44 Interest expense 151 320 118 933 (494 ) 1,028 Interest compensation to Financial Services 10 — 189 — (199 ) — Other, net 57 (1 ) 103 989 — 1,148 Total Costs and Expenses 1,489 319 9,298 19,632 (5,857 ) 24,881 Income (loss) before income taxes and equity in income of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method (119 ) (311 ) 461 (40 ) — (9 ) Income tax (expense) benefit (4 ) 112 (91 ) (315 ) — (298 ) Equity in income (loss) of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method (129 ) 377 292 140 (622 ) 58 Net income (loss) (252 ) 178 662 (215 ) (622 ) (249 ) Net income attributable to noncontrolling interests — — — 3 — 3 Net income (loss) attributable to owners of the parent $ (252 ) $ 178 $ 662 $ (218 ) $ (622 ) $ (252 ) 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 Total Costs and Expenses 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 tax (expense) benefit (13 ) 85 (114 ) (318 ) — (360 ) Equity in income (loss) of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method 331 425 264 62 (1,041 ) 41 Net income (loss) 253 275 634 127 (1,041 ) 248 Net loss attributable to noncontrolling interests — — — (5 ) — (5 ) Net income (loss) 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 Total Costs and Expenses 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 tax (expense) benefit 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 | Condensed Statements of Comprehensive Income For the Year Ended December 31, 2016 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Comprehensive income (loss) $ (156 ) $ 324 $ 761 $ (800 ) $ (279 ) $ (150 ) Comprehensive income attributable to noncontrolling interests — — — 6 — 6 Comprehensive income (loss) attributable to parent $ (156 ) $ 324 $ 761 $ (806 ) $ (279 ) $ (156 ) 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 Balance Sheets | Condensed Balance Sheets As of December 31, 2016 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Assets: Cash and cash equivalents $ 1 $ — $ 170 $ 4,846 $ — $ 5,017 Deposits in subsidiaries’ cash management pools 159 — 3,455 — (3,614 ) — Receivables 757 856 5,581 26,822 (14,731 ) 19,285 Inventories, net 83 — 1,270 4,256 — 5,609 Property, plant and equipment, net 74 — 997 5,326 — 6,397 Equipment on operating leases 3 — — 1,904 — 1,907 Investments in unconsolidated subsidiaries and affiliates 244 — — 243 — 487 Investments in consolidated subsidiaries 9,537 7,666 1,641 890 (19,734 ) — Goodwill and intangibles 11 — 2,768 457 — 3,236 Other 232 137 1,225 2,283 (268 ) 3,609 Total Assets $ 11,101 $ 8,659 $ 17,107 $ 47,027 $ (38,347 ) $ 45,547 Liabilities and Equity: Debt $ 5,918 $ 5,378 $ 2,404 $ 28,201 $ (16,625 ) $ 25,276 Trade payables 168 — 1,777 4,978 (1,738 ) 5,185 Other liabilities 571 (56 ) 3,241 7,130 (251 ) 10,635 Total Equity 4,444 3,337 9,685 6,718 (19,733 ) 4,451 Total Equity and Liabilities $ 11,101 $ 8,659 $ 17,107 $ 47,027 $ (38,347 ) $ 45,547 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 251 — — 276 — 527 Investments in consolidated subsidiaries 9,166 7,191 1,607 794 (18,758 ) — Goodwill and intangibles 12 — 2,786 459 — 3,257 Other 176 104 1,292 2,555 (205 ) 3,922 Total Assets $ 10,526 $ 8,281 $ 18,024 $ 48,038 $ (38,192 ) $ 46,677 Liabilities and Equity: Debt $ 5,045 $ 5,187 $ 3,302 $ 29,987 $ (17,220 ) $ 26,301 Trade payables 221 112 2,083 4,954 (2,028 ) 5,342 Other liabilities 458 (79 ) 3,365 6,633 (186 ) 10,191 Total Equity 4,802 3,061 9,274 6,464 (18,758 ) 4,843 Total Equity and Liabilities $ 10,526 $ 8,281 $ 18,024 $ 48,038 $ (38,192 ) $ 46,677 |
Condensed Statements of Cash Flow | Condensed Statements of Cash Flow For the Year Ended December 31, 2016 CNH Industrial N.V. Case New Holland Industrial Inc. Guarantor Subsidiaries All Other Subsidiaries Eliminations Consolidated (in millions) Operating Activities: Net income (loss) $ (252 ) $ 178 $ 662 $ (215 ) $ (622 ) $ (249 ) Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 12 — 206 1,043 — 1,261 Other, net 758 (310 ) (284 ) 1,112 (180 ) 1,096 Net cash provided (used) by operating activities 518 (132 ) 584 1,940 (802 ) 2,108 Investing activities: Expenditures for property, plant and equipment, equipment on operating lease, equipment sold under a buy-back commitment and intangible assets (13 ) — (82 ) (2,039 ) — (2,134 ) Net collections from retail receivables and related securitizations — — — 617 1 618 (Deposits in) withdrawals from subsidiaries’ cash management pools (48 ) — 1,294 — (1,246 ) — Other, net (1,125 ) 1,055 (1,228 ) (379 ) 2,272 595 Net cash provided (used) by investing activities (1,186 ) 1,055 (16 ) (1,801 ) 1,027 (921 ) Financing Activities: Net increase (decrease) in indebtedness 904 (941 ) (264 ) (972 ) — (1,273 ) Dividends paid (201 ) (7 ) (298 ) (503 ) 802 (207 ) Other, net (32 ) 25 23 953 (1,027 ) (58 ) Net cash provided (used) by financing activities 671 (923 ) (539 ) (522 ) (225 ) (1,538 ) Effect of foreign exchange rate changes on cash and cash equivalents (5 ) — (3 ) (8 ) — (16 ) Increase (decrease) in cash and cash equivalents (2 ) — 26 (391 ) — (367 ) Cash and cash equivalents, beginning of year 3 — 144 5,237 — 5,384 Cash and cash equivalents, end of year $ 1 $ — $ 170 $ 4,846 $ — $ 5,017 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 (loss) $ 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 (495 ) (283 ) 1,590 528 1,392 Net cash provided (used) by operating activities 315 (220 ) 558 2,646 (513 ) 2,786 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 ) 285 1,025 663 (948 ) 911 Net cash provided (used) by investing activities (47 ) 285 165 (1,026 ) (325 ) (948 ) Financing Activities: Net increase (decrease) in indebtedness — (3 ) 10 (652 ) — (645 ) Dividends paid (291 ) (1 ) (187 ) (329 ) 511 (297 ) Other, net 26 (61 ) (437 ) 168 327 23 Net cash provided (used) by financing activities (265 ) (65 ) (614 ) (813 ) 838 (919 ) 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 ) (736 ) (574 ) (1,077 ) 1,649 (1,167 ) Net cash provided (used) by operating activities 295 33 768 (186 ) (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 additions from retail receivables and related securitizations — — — 39 — 39 (Deposits in) withdrawals from subsidiaries’ cash management pools — — (757 ) — 757 — Other, net 294 (3 ) (121 ) (259 ) 916 827 Net cash provided (used) by investing activities 268 (3 ) (1,041 ) (2,867 ) 1,673 (1,970 ) Financing Activities: Net increase (decrease) in indebtedness (205 ) 212 (339 ) 3,035 (963 ) 1,740 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 ) (30 ) 301 3,096 (1,444 ) 1,376 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 . |
Nature of Operations - Addition
Nature of Operations - Additional Information (Detail) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013€ / shares | Dec. 31, 2016USD ($) | Dec. 31, 2016€ / shares | Dec. 31, 2015€ / 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) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2010 | Sep. 30, 2015USD ($) | Dec. 31, 2016USD ($)VEF / $ | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Mar. 31, 2016VEF / $ | Jan. 31, 2014VEF / $ | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
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 | $ 145,000,000 | $ 155,000,000 | $ 218,000,000 | ||||
Foreign currency transaction net gain | 50,000,000 | ||||||
Foreign currency transaction net loss | 581,000,000 | 340,000,000 | |||||
Net loss realized on foreign currency | 149,000,000 | 289,000,000 | 132,000,000 | ||||
Impairment of non-monetary assets | 34,000,000 | ||||||
Bonds held in principal amount | 50,000,000 | ||||||
CNH paid interest | 930,000,000 | 945,000,000 | 944,000,000 | ||||
Loss on repurchase of Notes | 60,000,000 | ||||||
CNH paid taxes | 104,000,000 | 345,000,000 | 744,000,000 | ||||
Gain Loss at the time of securitization | 0 | ||||||
Impairment of goodwill and other intangible assets | $ 0 | 0 | |||||
Minimum [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Weighted Average Life | 5 years | ||||||
Maximum [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Weighted Average Life | 25 years | ||||||
Case New Holland Industrial Inc. (formerly Case New Holland Inc.) [Member] | 7.875% Notes [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Loss on repurchase of Notes | $ 60,000,000 | ||||||
Bonds, maturity year | 2,017 | 2,017 | |||||
Bonds, interest rate | 7.875% | 7.875% | |||||
Venezuelan Bolivar Fuerte [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Foreign currency transaction net loss | $ 27,000,000 | 150,000,000 | $ 71,000,000 | ||||
ARGENTINA | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Foreign currency transaction net loss | $ 22,000,000 | $ 40,000,000 | |||||
Venezuelan Bolivar Fuerte [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Exchange rate adjustment pre-tax re-measurement charge | $ 150,000,000 | ||||||
Exchange rate adjustment after-tax re-measurement charge | $ 150,000,000 | ||||||
Venezuelan Bolivar Fuerte [Member] | CENCOEX | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Bolivar fuerte re-measurement exchange rate | VEF / $ | 10 | 6.3 | |||||
Venezuelan Bolivar Fuerte [Member] | Venezuelan Subsidiary [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Bolivar fuerte re-measurement exchange rate | VEF / $ | 673.76 | ||||||
Charges on re-measurement of monetary asset | $ 12,000,000 | ||||||
Impairment of non-monetary assets | 19,000,000 | ||||||
Re-measurement charges on assessment of the recoverability of monetary asset | 15,000,000 | ||||||
Future de-consolidate operations charge before tax | 84,000,000 | ||||||
Future de-consolidate operations charge after tax | $ 84,000,000 | ||||||
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 $84 million. |
Summary of Significant Accoun55
Summary of Significant Accounting Policies - Estimated Useful Lives of Respective Assets (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Minimum [Member] | Buildings and improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 10 years |
Minimum [Member] | Plant, machinery and equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Minimum [Member] | Other equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Maximum [Member] | Buildings and improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 40 years |
Maximum [Member] | Plant, machinery and equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 25 years |
Maximum [Member] | Other equipment [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, 2016USD ($)Contract | Dec. 31, 2015USD ($)Contract | Dec. 31, 2014USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade receivables | $ 623 | $ 580 | |
Allowances for doubtful accounts | $ 104 | 174 | |
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 | ||
NAFTA [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance lease receivable, contracts | Contract | 658 | 601 | |
Finance lease receivable, pre-modification value | $ 28 | $ 22 | |
Finance lease receivable, post-modification value | $ 27 | $ 21 | |
Concession cases by court | Contract | 238 | 283 | |
Pre-modification value of retail and finance lease receivable contracts | $ 4 | $ 5 | |
Post-modification value of retail and finance lease receivable contracts | 4 | 4 | |
EMEA [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retail and finance lease receivable contracts that are classified as trouble debt restructuring | 23 | 77 | |
LATAM [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retail and finance lease receivable contracts that are classified as trouble debt restructuring | $ 19 | $ 25 | |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, net | $ 18,662 | $ 19,001 | $ 21,472 |
Retail [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, net | 9,949 | 10,344 | 11,978 |
Wholesale [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, net | 8,583 | 8,611 | 9,400 |
Other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, net | $ 130 | $ 46 | $ 94 |
Receivables - Maturities of Fin
Receivables - Maturities of Financing Receivables (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | |||
2,017 | $ 11,171 | ||
2,018 | 2,396 | ||
2,019 | 2,034 | ||
2,020 | 1,389 | ||
2,021 | 1,479 | ||
2022 and thereafter | 193 | ||
Total | $ 18,662 | $ 19,001 | $ 21,472 |
Receivables - Summary of Aging
Receivables - Summary of Aging of Receivables (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | $ 18,662 | $ 19,001 | $ 21,472 |
Retail [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 42 | 27 | |
Current | 9,802 | 10,236 | |
Total | 9,949 | 10,344 | 11,978 |
Retail [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 9,844 | 10,263 | |
Retail [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 105 | 81 | |
Retail [Member] | NAFTA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 27 | 17 | |
Current | 7,172 | 7,869 | |
Total | 7,231 | 7,922 | |
Retail [Member] | NAFTA [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 7,199 | 7,886 | |
Retail [Member] | NAFTA [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 32 | 36 | |
Retail [Member] | EMEA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 348 | 572 | |
Total | 348 | 573 | |
Retail [Member] | EMEA [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 348 | 572 | |
Retail [Member] | EMEA [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 1 | ||
Retail [Member] | LATAM [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 14 | 6 | |
Current | 1,662 | 1,286 | |
Total | 1,749 | 1,336 | |
Retail [Member] | LATAM [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 1,676 | 1,292 | |
Retail [Member] | LATAM [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 73 | 44 | |
Retail [Member] | APAC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1 | 4 | |
Current | 620 | 509 | |
Total | 621 | 513 | |
Retail [Member] | APAC [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 621 | 513 | |
Retail [Member] | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 42 | 24 | |
Retail [Member] | 30-59 Days Past Due | NAFTA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 27 | 17 | |
Retail [Member] | 30-59 Days Past Due | LATAM [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 14 | 6 | |
Retail [Member] | 30-59 Days Past Due | APAC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1 | 1 | |
Retail [Member] | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3 | ||
Retail [Member] | 60-89 Days Past Due | APAC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3 | ||
Wholesale [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 39 | 74 | |
Current | 8,480 | 8,382 | |
Total | 8,583 | 8,611 | $ 9,400 |
Wholesale [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 8,519 | 8,456 | |
Wholesale [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 64 | 155 | |
Wholesale [Member] | NAFTA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 3,591 | 3,656 | |
Total | 3,630 | 3,735 | |
Wholesale [Member] | NAFTA [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 3,591 | 3,656 | |
Wholesale [Member] | NAFTA [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 39 | 79 | |
Wholesale [Member] | EMEA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 31 | 35 | |
Current | 3,847 | 3,613 | |
Total | 3,901 | 3,674 | |
Wholesale [Member] | EMEA [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 3,878 | 3,648 | |
Wholesale [Member] | EMEA [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 23 | 26 | |
Wholesale [Member] | LATAM [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3 | ||
Current | 594 | 595 | |
Total | 596 | 602 | |
Wholesale [Member] | LATAM [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 594 | 598 | |
Wholesale [Member] | LATAM [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 2 | 4 | |
Wholesale [Member] | APAC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 8 | 36 | |
Current | 448 | 518 | |
Total | 456 | 600 | |
Wholesale [Member] | APAC [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 456 | 554 | |
Wholesale [Member] | APAC [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 46 | ||
Wholesale [Member] | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 31 | 42 | |
Wholesale [Member] | 30-59 Days Past Due | EMEA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 29 | 33 | |
Wholesale [Member] | 30-59 Days Past Due | LATAM [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3 | ||
Wholesale [Member] | 30-59 Days Past Due | APAC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2 | 6 | |
Wholesale [Member] | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2 | 6 | |
Wholesale [Member] | 60-89 Days Past Due | EMEA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2 | 2 | |
Wholesale [Member] | 60-89 Days Past Due | APAC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4 | ||
Wholesale [Member] | Greater Than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 6 | 26 | |
Wholesale [Member] | Greater Than 90 Days | APAC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 6 | $ 26 |
Receivables - Allowance for Cre
Receivables - Allowance for Credit Losses Activity (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Opening balance | $ 552 | $ 650 | $ 726 |
Provision | 112 | 108 | 159 |
Charge-offs, net of recoveries | (96) | (105) | (161) |
Foreign currency translation and other | 6 | (101) | (74) |
Ending balance | 574 | 552 | 650 |
Ending balance: Individually evaluated for impairment | 328 | 312 | 348 |
Ending balance: Collectively evaluated for impairment | 246 | 240 | 302 |
Total | 18,662 | 19,001 | 21,472 |
Ending balance: Individually evaluated for impairment | 808 | 1,183 | 1,242 |
Ending balance: Collectively evaluated for impairment | 17,854 | 17,818 | 20,230 |
Retail [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Opening balance | 394 | 468 | 613 |
Provision | 52 | 81 | 86 |
Charge-offs, net of recoveries | (82) | (92) | (135) |
Foreign currency translation and other | 10 | (63) | (96) |
Ending balance | 374 | 394 | 468 |
Ending balance: Individually evaluated for impairment | 179 | 187 | 233 |
Ending balance: Collectively evaluated for impairment | 195 | 207 | 235 |
Total | 9,949 | 10,344 | 11,978 |
Ending balance: Individually evaluated for impairment | 317 | 416 | 484 |
Ending balance: Collectively evaluated for impairment | 9,632 | 9,928 | 11,494 |
Wholesale [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Opening balance | 158 | 182 | 112 |
Provision | 60 | 27 | 71 |
Charge-offs, net of recoveries | (14) | (13) | (24) |
Foreign currency translation and other | (4) | (38) | 23 |
Ending balance | 200 | 158 | 182 |
Ending balance: Individually evaluated for impairment | 149 | 125 | 115 |
Ending balance: Collectively evaluated for impairment | 51 | 33 | 67 |
Total | 8,583 | 8,611 | 9,400 |
Ending balance: Individually evaluated for impairment | 491 | 767 | 758 |
Ending balance: Collectively evaluated for impairment | 8,092 | 7,844 | 8,642 |
Other [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Opening balance | 1 | ||
Provision | 2 | ||
Charge-offs, net of recoveries | (2) | ||
Foreign currency translation and other | (1) | ||
Total | 130 | 46 | 94 |
Ending balance: Collectively evaluated for impairment | $ 130 | $ 46 | $ 94 |
Receivables - Investment in Imp
Receivables - Investment in Impaired Receivables (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Retail [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | $ 179 | $ 187 |
Recorded Investment, Total | 317 | 416 |
Unpaid Principal Balance, Total | 316 | 414 |
Average recorded investment, Total | 325 | 443 |
Retail [Member] | NAFTA [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance recorded, Recorded Investment | 41 | |
With no related allowance recorded, Unpaid Principal Balance | 40 | |
Related Allowance, Total | 18 | 18 |
With no related allowance recorded, Average recorded investment | 37 | |
With an allowance recorded, Recorded Investment | 31 | 54 |
With an allowance recorded, Unpaid Principal Balance | 30 | 53 |
With an allowance recorded, Average recorded investment | 31 | 52 |
Retail [Member] | EMEA [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance recorded, Recorded Investment | 90 | 74 |
With no related allowance recorded, Unpaid Principal Balance | 90 | 74 |
Related Allowance, Total | 143 | 167 |
With no related allowance recorded, Average recorded investment | 74 | 79 |
With an allowance recorded, Recorded Investment | 171 | 238 |
With an allowance recorded, Unpaid Principal Balance | 171 | 238 |
With an allowance recorded, Average recorded investment | 195 | 263 |
Retail [Member] | LATAM [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | 17 | |
With an allowance recorded, Recorded Investment | 23 | |
With an allowance recorded, Unpaid Principal Balance | 23 | |
With an allowance recorded, Average recorded investment | 23 | |
Retail [Member] | APAC [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | 1 | 2 |
With an allowance recorded, Recorded Investment | 2 | 9 |
With an allowance recorded, Unpaid Principal Balance | 2 | 9 |
With an allowance recorded, Average recorded investment | 2 | 12 |
Wholesale [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | 149 | 125 |
Recorded Investment, Total | 491 | 767 |
Unpaid Principal Balance, Total | 483 | 763 |
Average recorded investment, Total | 460 | 824 |
Wholesale [Member] | NAFTA [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | 4 | 3 |
With an allowance recorded, Recorded Investment | 44 | 82 |
With an allowance recorded, Unpaid Principal Balance | 43 | 82 |
With an allowance recorded, Average recorded investment | 46 | 92 |
Wholesale [Member] | EMEA [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance recorded, Recorded Investment | 33 | |
With no related allowance recorded, Unpaid Principal Balance | 33 | |
Related Allowance, Total | 131 | 95 |
With no related allowance recorded, Average recorded investment | 35 | |
With an allowance recorded, Recorded Investment | 420 | 607 |
With an allowance recorded, Unpaid Principal Balance | 420 | 607 |
With an allowance recorded, Average recorded investment | 378 | 657 |
Wholesale [Member] | LATAM [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | 12 | 7 |
With an allowance recorded, Recorded Investment | 22 | 25 |
With an allowance recorded, Unpaid Principal Balance | 15 | 21 |
With an allowance recorded, Average recorded investment | 18 | 22 |
Wholesale [Member] | APAC [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | 2 | 20 |
With an allowance recorded, Recorded Investment | 5 | 20 |
With an allowance recorded, Unpaid Principal Balance | 5 | 20 |
With an allowance recorded, Average recorded investment | $ 18 | $ 18 |
Receivable - Carrying Amount of
Receivable - Carrying Amount of Receivables (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Restricted Receivables | $ 13,585 | $ 13,884 |
Retail note and finance lease receivables [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Restricted Receivables | 7,140 | 7,695 |
Wholesale [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Restricted Receivables | $ 6,445 | $ 6,189 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,185 | $ 1,254 |
Work-in-process | 757 | 747 |
Finished goods | 3,667 | 3,689 |
Total Inventories | $ 5,609 | $ 5,690 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | $ 14,968 | $ 14,678 |
Accumulated depreciation | (8,571) | (8,197) |
Net property, plant and equipment | 6,397 | 6,481 |
Land and industrial buildings [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | 3,075 | 3,056 |
Plant, machinery and equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | 7,959 | 7,857 |
Assets sold with buy-back commitment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | 3,021 | 2,775 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | 131 | 191 |
Other [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | $ 782 | $ 799 |
Property, Plant and Equipment65
Property, Plant and Equipment - Summary of Property, Plant and Equipment Recorded under Finance Leases (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Capital Leases Balance Sheet Assets By Major Class Net Lessee Balance Sheet [Abstract] | |||
Gross capital leases | [1],[2] | $ 169 | $ 139 |
Accumulated depreciation | (53) | (50) | |
Net capital leases | $ 116 | $ 89 | |
[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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Line Items] | |||
Depreciation expense | $ 884 | $ 824 | $ 873 |
Acquisition of property, plant and equipment | 119 | 124 | |
Property, Plant and Equipment, Excluding Assets Sold Under a Buy-Back Commitment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Depreciation expense | 605 | 592 | 623 |
Assets sold with buy-back commitment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Impairment losses on assets sold with a buy-back commitment | $ 26 | $ 18 | $ 22 |
Investments in Unconsolidated67
Investments in Unconsolidated Subsidiaries and Affiliates - Summary of Investments in Unconsolidated Subsidiaries and Affiliates (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Investments In And Advances To Affiliates Schedule Of Investments [Abstract] | ||
Equity method | $ 479 | $ 519 |
Cost method | 8 | 8 |
Total | $ 487 | $ 527 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments In And Advances To Affiliates Schedule Of Investments [Abstract] | |||
Net revenue | $ 3,670 | $ 3,911 | $ 4,849 |
Income before taxes | 99 | 127 | 251 |
Net income | 48 | 68 | $ 194 |
Total Assets | 6,919 | 6,867 | |
Total Liabilities | 5,758 | 5,545 | |
Total Equity | $ 1,161 | $ 1,322 |
Investments in Unconsolidated69
Investments in Unconsolidated Subsidiaries and Affiliates - Additional Information (Detail) | Dec. 31, 2016 |
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% |
Equipment on Operating Leases -
Equipment on Operating Leases - Summary of Equipment on Operating Leases (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Property Subject To Or Available For Operating Lease Net [Abstract] | ||
Equipment on operating leases | $ 2,253 | $ 2,127 |
Accumulated depreciation | (346) | (292) |
Net equipment on operating leases | $ 1,907 | $ 1,835 |
Equipment on Operating Leases71
Equipment on Operating Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Subject To Or Available For Operating Lease Net [Abstract] | |||
Depreciation expense on equipment on operating leases | $ 267 | $ 215 | $ 159 |
Equipment on Operating Leases72
Equipment on Operating Leases - Lease Payments Owed for Equipment Under Operating Leases (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Operating Leases Future Minimum Payments Receivable [Abstract] | |
2,017 | $ 176 |
2,018 | 114 |
2,019 | 44 |
2,020 | 17 |
2,021 | 5 |
Total | $ 356 |
Goodwill and Other Intangible73
Goodwill and Other Intangibles - Changes in the Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Balance at beginning | $ 2,447 | $ 2,484 |
Impact of foreign exchange | 2 | (37) |
Balance at ending | 2,449 | 2,447 |
Agricultural equipment [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 1,645 | 1,662 |
Impact of foreign exchange | 3 | (17) |
Balance at ending | 1,648 | 1,645 |
Construction Equipment [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 588 | 595 |
Impact of foreign exchange | (7) | |
Balance at ending | 588 | 588 |
Commercial Vehicles [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 57 | 61 |
Impact of foreign exchange | (2) | (4) |
Balance at ending | 55 | 57 |
Powertrain [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 5 | 5 |
Balance at ending | 5 | 5 |
Financial Services Segment [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 152 | 161 |
Impact of foreign exchange | 1 | (9) |
Balance at ending | $ 153 | $ 152 |
Goodwill and Other Intangible74
Goodwill and Other Intangibles - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | |||
Impairment of goodwill and other intangible assets | $ 0 | $ 0 | |
Percentage of goodwill used for impairment testing | 97.00% | ||
Amortization expense | $ 111,000,000 | $ 107,000,000 | $ 108,000,000 |
Amortization expense in 2017 | 101,000,000 | ||
Amortization expense in 2018 | 94,000,000 | ||
Amortization expense in 2019 | 81,000,000 | ||
Amortization expense in 2020 | 55,000,000 | ||
Amortization expense in 2021 | $ 44,000,000 | ||
Agricultural equipment [Member] | |||
Goodwill [Line Items] | |||
Indefinite-lived intangible assets, excess of fair value over carrying value percentage | 70.00% | ||
Financial Services Segment [Member] | |||
Goodwill [Line Items] | |||
Indefinite-lived intangible assets, excess of fair value over carrying value percentage | 29.00% | ||
Agricultural Equipment Segment [Member] | |||
Goodwill [Line Items] | |||
Percentage of goodwill used for impairment testing | 67.00% | ||
Financial Services Segment [Member] | |||
Goodwill [Line Items] | |||
Percentage of goodwill used for impairment testing | 6.00% | ||
Construction Equipment Segment [Member] | |||
Goodwill [Line Items] | |||
Indefinite-lived intangible assets, excess of fair value over carrying value percentage | 24.00% | ||
Maximum percentage of risk of reporting unit excess of fair value over carrying value | 20.00% | ||
Percentage Points Increase in Discount Rate | 3.90% |
Goodwill and Other Intangible75
Goodwill and Other Intangibles - Other Intangible Assets and Related Accumulated Amortization (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, Gross | $ 1,965 | $ 1,858 |
Other intangible assets subject to amortization, Accumulated Amortization | 1,452 | 1,330 |
Other intangible assets subject to amortization, Net | 513 | 528 |
Total other intangible assets, Gross | 2,239 | 2,140 |
Total other intangible assets, Net | $ 787 | 810 |
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 | $ 274 | 282 |
Dealer networks [Member] | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, Gross | 316 | 289 |
Other intangible assets subject to amortization, Accumulated Amortization | 168 | 143 |
Other intangible assets subject to amortization, Net | $ 148 | 146 |
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 | $ 1,649 | 1,569 |
Other intangible assets subject to amortization, Accumulated Amortization | 1,284 | 1,187 |
Other intangible assets subject to amortization, Net | $ 365 | $ 382 |
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 | ||||||||||||||||||
Oct. 31, 2016USD ($) | Aug. 31, 2016USD ($) | May 31, 2016EUR (€) | Apr. 30, 2016EUR (€) | Mar. 31, 2016USD ($) | Nov. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2014EUR (€) | Jun. 30, 2014USD ($) | Mar. 31, 2014EUR (€) | Oct. 31, 2013USD ($) | Apr. 30, 2013USD ($) | Nov. 30, 2011USD ($) | Mar. 31, 2011EUR (€) | Jun. 30, 2010USD ($) | Jan. 31, 1996USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2015USD ($) | Nov. 30, 2015EUR (€) | |
Debt Instrument [Line Items] | ||||||||||||||||||||
Weighted-average interest rate on consolidated debt | 3.20% | 3.20% | 3.30% | |||||||||||||||||
Financial services [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Other debt | $ 1,400 | $ 1,100 | ||||||||||||||||||
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 | € 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 | € | € 500 | € 700 | ||||||||||||||||||
Bonds, maturity year | 2,021 | |||||||||||||||||||
Bonds, interest rate | 2.875% | 2.875% | ||||||||||||||||||
Bonds, maturity month and year | 2023-05 | |||||||||||||||||||
3.500% Senior Notes [Member] | Global Medium Term Note Programme [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument borrowing capacity amount | € | € 10,000 | |||||||||||||||||||
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% | ||||||||||||||||||
3.875% Notes [Member] | Global Medium Term Note Programme [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument borrowing capacity amount | € | € 10,000 | |||||||||||||||||||
3.875% 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 | € | € 50 | |||||||||||||||||||
Bonds, maturity year | 2,028 | |||||||||||||||||||
Bonds, interest rate | 3.875% | |||||||||||||||||||
3.875% Notes [Member] | CNH Industrial Capital LLC (formerly CNH Capital LLC) [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Revolving credit facility, amount | $ 400 | $ 600 | ||||||||||||||||||
Bonds, maturity year | 2,018 | |||||||||||||||||||
Bonds, interest rate | 3.875% | 3.875% | ||||||||||||||||||
Bonds, maturity month and year | 2021-10 | |||||||||||||||||||
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% 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 | 2,017 | ||||||||||||||||||
Bonds, interest rate | 7.875% | 7.875% | 7.875% | |||||||||||||||||
Debt, redemption price as a percentage of principal amount | 100.00% | |||||||||||||||||||
Debt repurchased | $ 450 | $ 414 | ||||||||||||||||||
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% | ||||||||||||||||||
4.875% Notes [Member] | CNH Industrial Capital LLC (formerly CNH Capital LLC) [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Revolving credit facility, amount | $ 500 | |||||||||||||||||||
Bonds, interest rate | 4.875% | |||||||||||||||||||
Bonds, maturity month and year | 2021-04 | |||||||||||||||||||
4.500% Notes [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Revolving credit facility, amount | $ 600 | |||||||||||||||||||
Bonds, interest rate | 4.50% | |||||||||||||||||||
Bonds, maturity month and year | 2023-08 | |||||||||||||||||||
Unsecured Credit Facilities [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Credit facility | $ 2,900 | $ 3,000 | ||||||||||||||||||
Revolving Credit Facility [Member] | New Credit Facility [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Credit facility, term | 5 years | |||||||||||||||||||
Revolving credit facility, amount | $ 1,800 | € 1,750 | ||||||||||||||||||
Debt instrument, maturity date | 2,021 |
Debt - Summary of Debt, Includi
Debt - Summary of Debt, Including Drawings Under Credit Lines (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Debt | $ 25,276 | $ 26,301 |
Hedging effects, bond premium/discount, and unamortized issuance costs | (65) | (31) |
Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 8,613 | 8,289 |
Industrial Activities [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 7,691 | 8,260 |
Hedging effects, bond premium/discount, and unamortized issuance costs | (34) | (11) |
Industrial Activities [Member] | Intersegment Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 997 | 1,046 |
Industrial Activities [Member] | Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 4,944 | 5,009 |
Financial services [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 20,061 | 21,176 |
Hedging effects, bond premium/discount, and unamortized issuance costs | (31) | (20) |
Financial services [Member] | Intersegment Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 1,479 | 2,089 |
Financial services [Member] | Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 3,669 | 3,280 |
Payable in 2016, interest rate of 7.250% [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 254 | |
Payable in 2016, interest rate of 7.250% [Member] | Industrial Activities [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 254 | |
Payable in 2017, interest rate of 7.875% [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 636 | 1,500 |
Payable in 2017, interest rate of 7.875% [Member] | Industrial Activities [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 636 | 1,500 |
Payable in 2018, interest rate of 6.250% [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 1,265 | 1,306 |
Payable in 2018, interest rate of 6.250% [Member] | Industrial Activities [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 1,265 | 1,306 |
Payable in 2019, interest rate of 2.750% [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 1,054 | 1,089 |
Payable in 2019, interest rate of 2.750% [Member] | Industrial Activities [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 1,054 | 1,089 |
Payable in 2021, interest rate of 2.875% [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 738 | 762 |
Payable in 2021, interest rate of 2.875% [Member] | Industrial Activities [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 738 | 762 |
Payable in 2023, interest rate of 2.875% [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 527 | |
Payable in 2023, interest rate of 2.875% [Member] | Industrial Activities [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 527 | |
Payable in 2023, interest rate of 4.500% [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 600 | |
Payable in 2023, interest rate of 4.500% [Member] | Industrial Activities [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 600 | |
Payable in 2025, interest rate of 3.500% [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 105 | 109 |
Payable in 2025, interest rate of 3.500% [Member] | Industrial Activities [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 105 | 109 |
Payable in 2028, interest rate of 3.875% [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 53 | |
Payable in 2028, interest rate of 3.875% [Member] | Industrial Activities [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 53 | |
Payable in 2016, interest rate of 6.250% [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 500 | |
Payable in 2016, interest rate of 6.250% [Member] | Financial services [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 500 | |
Payable in 2017, interest rate of 3.250% [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 500 | 500 |
Payable in 2017, interest rate of 3.250% [Member] | Financial services [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 500 | 500 |
Payable in 2018, interest rate of 3.625% [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 600 | 600 |
Payable in 2018, interest rate of 3.625% [Member] | Financial services [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 600 | 600 |
Payable in 2018, interest rate of 3.875% [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 600 | 600 |
Payable in 2018, interest rate of 3.875% [Member] | Financial services [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 600 | 600 |
Payable in 2019, interest rate of 3.375% [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 500 | 500 |
Payable in 2019, interest rate of 3.375% [Member] | Financial services [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 500 | 500 |
Payable in 2020, interest rate of 4.375% [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 600 | 600 |
Payable in 2020, interest rate of 4.375% [Member] | Financial services [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 600 | 600 |
Payable in 2021, interest rate of 4.875% [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 500 | |
Payable in 2021, interest rate of 4.875% [Member] | Financial services [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 500 | |
Payable in 2021, interest rate of 3.875% [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 400 | |
Payable in 2021, interest rate of 3.875% [Member] | Financial services [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 400 | |
Asset-backed debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 11,784 | 12,999 |
Asset-backed debt [Member] | Industrial Activities [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 8 | 13 |
Asset-backed debt [Member] | Financial services [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 11,776 | 12,986 |
Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 4,879 | 5,013 |
Other Debt [Member] | Industrial Activities [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 1,742 | 2,192 |
Other Debt [Member] | Financial services [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 3,137 | $ 2,821 |
Debt - Summary of Debt, Inclu78
Debt - Summary of Debt, Including Drawings Under Credit Lines (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
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 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 2023, interest rate of 2.875% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,023 |
Bonds, interest rate | 2.875% |
Payable in 2023, interest rate of 4.500% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,023 |
Bonds, interest rate | 4.50% |
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 2028, interest rate of 3.875% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,028 |
Bonds, interest rate | 3.875% |
Payable in 2016, interest rate of 6.250% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,016 |
Bonds, interest rate | 6.25% |
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 2018, interest rate of 3.625% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,018 |
Bonds, interest rate | 3.625% |
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 2019, interest rate of 3.375% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,019 |
Bonds, interest rate | 3.375% |
Payable in 2020, interest rate of 4.375% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,020 |
Bonds, interest rate | 4.375% |
Payable in 2021, interest rate of 4.875% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,021 |
Bonds, interest rate | 4.875% |
Payable in 2021, interest rate of 3.875% [Member] | |
Debt Instrument [Line Items] | |
Bonds, maturity year | 2,021 |
Bonds, interest rate | 3.875% |
Debt - Minimum Annual Repayment
Debt - Minimum Annual Repayments of Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
2,017 | $ 10,279 | |
2,018 | 5,735 | |
2,019 | 3,869 | |
2,020 | 1,901 | |
2,021 | 1,961 | |
2022 and thereafter | 1,531 | |
Total | 25,276 | $ 26,301 |
Industrial Activities [Member] | ||
Debt Instrument [Line Items] | ||
2,017 | 1,331 | |
2,018 | 1,640 | |
2,019 | 1,504 | |
2,020 | 90 | |
2,021 | 763 | |
2022 and thereafter | 1,366 | |
Total | 7,691 | 8,260 |
Financial services [Member] | ||
Debt Instrument [Line Items] | ||
2,017 | 8,948 | |
2,018 | 4,095 | |
2,019 | 2,365 | |
2,020 | 1,811 | |
2,021 | 1,198 | |
2022 and thereafter | 165 | |
Total | 20,061 | 21,176 |
Intersegment Debt [Member] | Industrial Activities [Member] | ||
Debt Instrument [Line Items] | ||
Total | 997 | 1,046 |
Intersegment Debt [Member] | Financial services [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 1,479 | $ 2,089 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) € in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2016USD ($) | Mar. 31, 2016EUR (€) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Income Tax Disclosure [Line Items] | ||||||
Provision for income taxes | $ 298,000,000 | $ 360,000,000 | $ 467,000,000 | |||
Non-tax deductible charge incurred | $ 502,000,000 | € 450 | $ 551,000,000 | |||
Undistributed earnings in subsidiaries | 5,300,000,000 | |||||
Deferred income taxes | 69,000,000 | 97,000,000 | (22,000,000) | |||
Deferred tax liability on total undistributed earnings | $ 50,000,000 | |||||
Joint venture ownership percentage | 50.00% | |||||
Deferred taxes | $ 8,000,000 | |||||
Deferred tax assets, valuation allowances | 1,490,000,000 | 1,361,000,000 | ||||
Gross tax loss carry forwards with indefinite lives | 3,000,000,000 | |||||
Unrecognized tax benefits, that would affect effective tax rate, if recognized | 143,000,000 | |||||
Income tax related interest and penalties recognized expense | 7,000,000 | 2,000,000 | (8,000,000) | |||
Income tax related interest and penalties accrued | $ 12,000,000 | $ 16,000,000 | $ 17,000,000 | |||
Minimum [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax examination year | 2,003 | |||||
Maximum [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax examination year | 2,016 | |||||
2017 [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Gross tax loss carry forwards, subject to expiration | $ 37,000,000 | |||||
2018 [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Gross tax loss carry forwards, subject to expiration | 141,000,000 | |||||
2019 [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Gross tax loss carry forwards, subject to expiration | 155,000,000 | |||||
2020 [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Gross tax loss carry forwards, subject to expiration | 115,000,000 | |||||
2021 and beyond [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Gross tax loss carry forwards, subject to expiration | 563,000,000 | |||||
2019 [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Tax credit carry forwards, subject to expiration | 2,000,000 | |||||
2020 [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Tax credit carry forwards, subject to expiration | 8,000,000 | |||||
2021 and beyond [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Tax credit carry forwards, subject to expiration | 91,000,000 | |||||
Subsidiaries Outside U.K. [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Deferred income taxes | 0 | |||||
Latin America [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax charge in connection with reorganization | 59,000,000 | |||||
Brazil and Argentina [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax charge in connection with reorganization | 58,000,000 | |||||
Other Latin America [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax charge in connection with reorganization | $ 1,000,000 | |||||
U.K. | ||||||
Income Tax Disclosure [Line Items] | ||||||
Statutory federal income tax rate | 20.00% | 20.00% | 22.00% |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Parent country source | $ (73) | $ 11 | $ (12) |
Foreign sources | 64 | 556 | 1,101 |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | $ (9) | $ 567 | $ 1,089 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Current income taxes | $ 229 | $ 263 | $ 489 |
Deferred income taxes | 69 | 97 | (22) |
Total income tax provision | $ 298 | $ 360 | $ 467 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Tax provision at the parent statutory rate | $ (2) | $ 115 | $ 234 |
Foreign income taxed at different rates | (11) | 56 | 149 |
Change in valuation allowance | 133 | 111 | 148 |
Italian IRAP taxes | 22 | 6 | 38 |
Tax contingencies | (2) | 26 | (60) |
Tax credits and incentives | (88) | (43) | (83) |
Venezuela remeasurement and impairment charges | 16 | 51 | |
Non-deductible EC Settlement | 160 | ||
Change in tax rate or law | 14 | 23 | |
Withholding taxes | 11 | 8 | 7 |
Other | 45 | 7 | 34 |
Total income tax provision | $ 298 | $ 360 | $ 467 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Inventories | $ 96 | $ 89 |
Warranty and campaigns | 183 | 156 |
Allowance for credit losses | 180 | 162 |
Marketing and sales incentive programs | 326 | 347 |
Other risk and future charges reserve | 216 | 200 |
Pension, postretirement and postemployment benefits | 553 | 580 |
Measurement of derivative financial instruments | 36 | |
Research and development costs | 423 | 395 |
Other reserves | 359 | 400 |
Tax credits and loss carry forwards | 767 | 712 |
Less: Valuation allowances | (1,490) | (1,361) |
Total deferred tax assets | 1,649 | 1,680 |
Deferred tax liabilities: | ||
Property, plant and equipment | 481 | 432 |
Measurement of derivative financial instruments | 2 | |
Other | 315 | 330 |
Total deferred tax liabilities | 796 | 764 |
Net deferred tax assets | $ 853 | $ 916 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets Reflected in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 937 | $ 1,250 |
Deferred tax liabilities | (84) | (334) |
Net deferred tax assets | $ 853 | $ 916 |
Income Taxes - Reconciliation86
Income Taxes - Reconciliation of Gross Amounts of Tax Contingencies (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Balance, beginning of year | $ 325 | $ 343 |
Additions based on tax positions related to the current year | 30 | 31 |
Additions for tax positions of prior years | 70 | 46 |
Reductions for tax positions of prior years | (65) | (72) |
Reductions for tax positions as a result of lapse of statute | (10) | (10) |
Settlements | (32) | (13) |
Balance, end of year | $ 318 | $ 325 |
Employee Benefit Plans and Po87
Employee Benefit Plans and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expense on defined contribution plan | $ 181 | $ 185 | $ 244 |
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% | ||
Decrease due to benefit obligations of new mortality table | $ 32 | ||
Reduction in net periodic benefit cost | 31 | ||
Pension plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total accumulated benefit obligation | 3,150 | $ 3,252 | |
Decrease due to benefit obligations of new mortality table | 15 | ||
Employer contributions | 63 | ||
Healthcare plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Decrease due to benefit obligations of new mortality table | 17 | ||
Employer contributions | 69 | ||
Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ 32 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Change in the fair value of plan assets: | ||||||
Beginning plan assets | $ 2,585 | |||||
Ending plan assets | 2,439 | $ 2,585 | ||||
Pension [Member] | ||||||
Change in benefit obligations: | ||||||
Beginning benefit obligation | 3,281 | 3,619 | ||||
Service cost | 30 | 30 | $ 27 | |||
Interest cost | 87 | 112 | 134 | |||
Plan participants’ contributions | 3 | 3 | ||||
Actuarial loss (gain) | 285 | (159) | ||||
Gross benefits paid | (221) | (190) | ||||
Plan amendments | (6) | |||||
Currency translation adjustments and other | (271) | (134) | ||||
Ending benefit obligation | 3,188 | 3,281 | 3,619 | |||
Change in the fair value of plan assets: | ||||||
Beginning plan assets | 2,480 | 2,686 | ||||
Actual return on plan assets | 194 | (9) | ||||
Employer contributions | 35 | 27 | ||||
Plan participants’ contributions | 3 | 3 | ||||
Gross benefits paid | (193) | (161) | ||||
Currency translation adjustments and other | (191) | (66) | ||||
Ending plan assets | 2,328 | 2,480 | 2,686 | |||
Funded status: | (860) | (801) | ||||
Healthcare [Member] | ||||||
Change in benefit obligations: | ||||||
Beginning benefit obligation | [1] | 1,157 | 1,243 | |||
Service cost | 7 | [1] | 8 | [1] | 9 | |
Interest cost | 39 | [1] | 48 | [1] | 51 | |
Plan participants’ contributions | [1] | 8 | 9 | |||
Actuarial loss (gain) | [1] | (37) | (64) | |||
Gross benefits paid | [1] | (71) | (80) | |||
Currency translation adjustments and other | [1] | 2 | (7) | |||
Ending benefit obligation | [1] | 1,105 | 1,157 | 1,243 | ||
Change in the fair value of plan assets: | ||||||
Beginning plan assets | [1] | 105 | 107 | |||
Actual return on plan assets | [1] | 8 | ||||
Plan participants’ contributions | [1] | 8 | 9 | |||
Gross benefits paid | [1] | (2) | (2) | |||
Ending plan assets | [1] | 111 | 105 | 107 | ||
Funded status: | [1] | (994) | (1,052) | |||
Other [Member] | ||||||
Change in benefit obligations: | ||||||
Beginning benefit obligation | [1] | 423 | 526 | |||
Service cost | 13 | [1] | 15 | [1] | 18 | |
Interest cost | 4 | [1] | 5 | [1] | 10 | |
Actuarial loss (gain) | [1] | 22 | (37) | |||
Gross benefits paid | [1] | (31) | (45) | |||
Currency translation adjustments and other | [1] | (13) | (41) | |||
Ending benefit obligation | [1] | 418 | 423 | $ 526 | ||
Change in the fair value of plan assets: | ||||||
Funded status: | [1] | $ (418) | $ (423) | |||
[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, 2016 | Dec. 31, 2015 | ||
Change in the fair value of plan assets: | |||
Beginning plan assets | $ 2,585 | ||
Ending plan assets | 2,439 | $ 2,585 | |
US [Member] | |||
Change in benefit obligations: | |||
Beginning benefit obligation | 1,208 | 1,291 | |
Service cost | 8 | 6 | |
Interest cost | 39 | 48 | |
Actuarial loss (gain) | 27 | (54) | |
Gross benefits paid | (120) | (83) | |
Currency translation adjustments and other | (3) | ||
Ending benefit obligation | 1,159 | 1,208 | |
Change in the fair value of plan assets: | |||
Beginning plan assets | 1,182 | 1,295 | |
Actual return on plan assets | 80 | (30) | |
Gross benefits paid | (120) | (83) | |
Currency translation adjustments and other | (3) | ||
Ending plan assets | 1,139 | 1,182 | |
Funded status: | (20) | (26) | |
UK [Member] | |||
Change in benefit obligations: | |||
Beginning benefit obligation | 1,332 | 1,468 | |
Service cost | 6 | 7 | |
Interest cost | 37 | 50 | |
Actuarial loss (gain) | 247 | (74) | |
Gross benefits paid | (57) | (64) | |
Currency translation adjustments and other | (250) | (55) | |
Ending benefit obligation | 1,315 | 1,332 | |
Change in the fair value of plan assets: | |||
Beginning plan assets | 1,028 | 1,105 | |
Actual return on plan assets | 106 | 13 | |
Employer contributions | 25 | 17 | |
Gross benefits paid | (57) | (64) | |
Currency translation adjustments and other | (184) | (43) | |
Ending plan assets | 918 | 1,028 | |
Funded status: | (397) | (304) | |
Germany [Member] | |||
Change in benefit obligations: | |||
Beginning benefit obligation | [1] | 438 | 523 |
Service cost | [1] | 3 | 4 |
Interest cost | [1] | 6 | 8 |
Actuarial loss (gain) | [1] | 12 | (16) |
Gross benefits paid | [1] | (27) | (29) |
Currency translation adjustments and other | [1] | (13) | (52) |
Ending benefit obligation | [1] | 419 | 438 |
Change in the fair value of plan assets: | |||
Beginning plan assets | [1] | 5 | 5 |
Ending plan assets | [1] | 5 | 5 |
Funded status: | [1] | (414) | (433) |
Other Countries [Member] | |||
Change in benefit obligations: | |||
Beginning benefit obligation | [1] | 303 | 337 |
Service cost | [1] | 13 | 13 |
Interest cost | [1] | 5 | 6 |
Plan participants’ contributions | [1] | 3 | 3 |
Actuarial loss (gain) | [1] | (1) | (15) |
Gross benefits paid | [1] | (17) | (14) |
Plan amendments | [1] | (6) | |
Currency translation adjustments and other | [1] | (5) | (27) |
Ending benefit obligation | [1] | 295 | 303 |
Change in the fair value of plan assets: | |||
Beginning plan assets | [1] | 265 | 281 |
Actual return on plan assets | [1] | 8 | 8 |
Employer contributions | [1] | 10 | 10 |
Plan participants’ contributions | [1] | 3 | 3 |
Gross benefits paid | [1] | (16) | (14) |
Currency translation adjustments and other | [1] | (4) | (23) |
Ending plan assets | [1] | 266 | 265 |
Funded status: | [1] | $ (29) | $ (38) |
[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, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension, postretirement and other postemployment benefits | $ (2,276) | $ (2,282) |
Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | 4 | 6 |
Pension, postretirement and other postemployment benefits | (864) | (807) |
Net liability recognized at end of year | (860) | (801) |
Healthcare [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension, postretirement and other postemployment benefits | (994) | (1,052) |
Net liability recognized at end of year | (994) | (1,052) |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension, postretirement and other postemployment benefits | (418) | (423) |
Net liability recognized at end of year | $ (418) | $ (423) |
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, 2016USD ($) |
Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized actuarial losses | $ 1,013 |
Unrecognized prior service credit | (8) |
Accumulated other comprehensive loss | 1,005 |
Healthcare [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized actuarial losses | 142 |
Unrecognized prior service credit | (7) |
Accumulated other comprehensive loss | 135 |
Other [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized actuarial losses | 79 |
Unrecognized prior service credit | (3) |
Accumulated other comprehensive loss | $ 76 |
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, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 3,011 | $ 3,182 |
Fair value of plan assets | $ 2,183 | $ 2,404 |
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, 2016 | Dec. 31, 2015 |
Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 3,119 | $ 3,211 |
Fair value of plan assets | 2,254 | 2,404 |
Healthcare [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 1,105 | 1,157 |
Fair value of plan assets | 111 | 105 |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 418 | $ 423 |
Employee Benefit Plans and Po94
Employee Benefit Plans and Postretirement Benefits - Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Pension [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 30 | $ 30 | $ 27 | ||
Interest cost | 87 | 112 | 134 | ||
Expected return on assets | (113) | (140) | (151) | ||
Amortization of: | |||||
Prior service cost (credit) | 1 | ||||
Actuarial loss (gain) | 76 | 83 | 64 | ||
Net periodic benefit cost | 80 | 85 | 75 | ||
Healthcare [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 7 | [1] | 8 | [1] | 9 |
Interest cost | 39 | [1] | 48 | [1] | 51 |
Expected return on assets | (6) | (7) | (7) | ||
Amortization of: | |||||
Prior service cost (credit) | (4) | (10) | (12) | ||
Actuarial loss (gain) | 15 | 26 | 5 | ||
Net periodic benefit cost | 51 | 65 | 46 | ||
Other [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 13 | [1] | 15 | [1] | 18 |
Interest cost | 4 | [1] | 5 | [1] | 10 |
Amortization of: | |||||
Prior service cost (credit) | (1) | 1 | 2 | ||
Actuarial loss (gain) | 8 | (7) | 13 | ||
Settlement loss and other | 1 | 1 | |||
Net periodic benefit cost | $ 25 | $ 14 | $ 44 | ||
[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 Obligations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Benefit adjustments included in other comprehensive (income) loss: | |||
Currency translation adjustments and other | $ (319) | $ 359 | $ (125) |
Total recognized in other comprehensive (income) loss | 81 | (191) | 337 |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | 80 | 85 | 75 |
Benefit adjustments included in other comprehensive (income) loss: | |||
Net actuarial losses (gains) | 204 | ||
Amortization of actuarial losses | (76) | ||
Currency translation adjustments and other | (90) | ||
Total recognized in other comprehensive (income) loss | 38 | ||
Total recognized in comprehensive loss | 118 | ||
Healthcare [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | 51 | 65 | 46 |
Benefit adjustments included in other comprehensive (income) loss: | |||
Net actuarial losses (gains) | (39) | ||
Amortization of actuarial losses | (15) | ||
Amortization of prior service (cost) credit | 4 | ||
Total recognized in other comprehensive (income) loss | (50) | ||
Total recognized in comprehensive loss | 1 | ||
Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | 25 | $ 14 | $ 44 |
Benefit adjustments included in other comprehensive (income) loss: | |||
Net actuarial losses (gains) | 21 | ||
Amortization of actuarial losses | (8) | ||
Amortization of prior service (cost) credit | 1 | ||
Total recognized in other comprehensive (income) loss | 14 | ||
Total recognized in comprehensive loss | $ 39 |
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, 2016USD ($) | |
Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial losses | $ 89 |
Prior service cost (credit) | (1) |
Total | 88 |
Healthcare [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial losses | 6 |
Prior service cost (credit) | (3) |
Total | 3 |
Other [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial losses | 1 |
Prior service cost (credit) | 1 |
Total | $ 2 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Pension plans [Member] | ||||
Assumptions used to determine funded status at December 31 | ||||
Weighted-average discount rate | 2.82% | 3.49% | 3.22% | |
Weighted-average rate of compensation increase | 2.95% | 2.98% | 3.25% | |
Assumptions used to determine expense | ||||
Weighted-average discount rates - service cost | 2.91% | 3.22% | 4.05% | |
Weighted-average discount rates - interest cost | 2.82% | 3.22% | 4.05% | |
Weighted-average rate of compensation increase | 2.98% | 3.25% | 3.35% | |
Weighted-average long-term rates of return on plan assets | 5.00% | 5.38% | 5.85% | |
Healthcare plans [Member] | ||||
Assumptions used to determine funded status at December 31 | ||||
Weighted-average discount rate | 3.97% | 4.27% | 3.96% | |
Weighted-average rate of compensation increase | 2.50% | 2.50% | 3.00% | |
Weighted-average, initial healthcare cost trend rate | 6.72% | 6.98% | 7.23% | |
Weighted-average, ultimate healthcare cost trend rate | [1] | 5.00% | 5.00% | 5.00% |
Assumptions used to determine expense | ||||
Weighted-average discount rates - service cost | 4.21% | 3.96% | 4.67% | |
Weighted-average discount rates - interest cost | 3.49% | 3.96% | 4.67% | |
Weighted-average rate of compensation increase | 2.50% | 3.00% | 3.42% | |
Weighted-average long-term rates of return on plan assets | 6.25% | 6.75% | 6.75% | |
Weighted-average, initial healthcare cost trend rate | 6.98% | 7.23% | 8.19% | |
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 rate | 1.54% | 2.06% | 1.81% | |
Weighted-average rate of compensation increase | 1.19% | 1.33% | 2.27% | |
Assumptions used to determine expense | ||||
Weighted-average discount rates - service cost | 2.18% | 1.81% | 3.00% | |
Weighted-average discount rates - interest cost | 1.89% | 1.81% | 3.00% | |
Weighted-average rate of compensation increase | 1.33% | 2.27% | 2.63% | |
[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, 2016USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Total increase/(decrease) in service cost and interest cost components of 2016 Healthcare Plan benefit expense, One Percentage-Point Increase | $ 7 |
Total increase/(decrease) in accumulated Healthcare benefit obligations as of end period, One Percentage-Point Increase | 128 |
Total increase/(decrease) in service cost and interest cost components of 2016 Healthcare Plan benefit expense, One Percentage-Point Decrease | (5) |
Total increase/(decrease) in accumulated Healthcare benefit obligations as of end period, One Percentage-Point Decrease | $ (103) |
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, 2016 | |
Equity securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation for all plans in asset categories | 20.00% |
Debt securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation for all plans in asset categories | 52.00% |
Cash/Other [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation for all plans in asset categories | 28.00% |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | $ 2,439 | $ 2,585 | ||
Equity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 352 | 342 | ||
Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 1,232 | 1,545 | ||
Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 817 | 678 | ||
Cash [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 38 | 20 | ||
U.S. government bonds [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 308 | 305 | ||
U.S. corporate bonds [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 474 | 504 | ||
Non-U.S. government bonds [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 353 | 611 | ||
Non-U.S. corporate bonds [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 87 | 112 | ||
Mortgage backed securities [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 1 | |||
Other Fixed Income Securities [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 10 | 12 | ||
Mutual funds [Member] | Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | [1] | 682 | 537 | |
Insurance contracts [Member] | Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 135 | 133 | ||
Other [Member] | Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | [2] | 8 | ||
US [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 1,139 | 1,182 | $ 1,295 | |
US [Member] | Equity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 352 | 53 | ||
Non-US [Member] | Equity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 289 | |||
Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 335 | 335 | ||
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 | 318 | 319 | ||
Level 1 [Member] | Cash [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 2 | 1 | ||
Level 1 [Member] | U.S. government bonds [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 305 | 302 | ||
Level 1 [Member] | Non-U.S. government bonds [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 13 | 17 | ||
Level 1 [Member] | US [Member] | Equity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 15 | 15 | ||
Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 1,969 | 2,117 | ||
Level 2 [Member] | Equity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 337 | 327 | ||
Level 2 [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 914 | 1,226 | ||
Level 2 [Member] | Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 682 | 545 | ||
Level 2 [Member] | Cash [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 36 | 19 | ||
Level 2 [Member] | U.S. government bonds [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 3 | 3 | ||
Level 2 [Member] | U.S. corporate bonds [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 474 | 504 | ||
Level 2 [Member] | Non-U.S. government bonds [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 340 | 594 | ||
Level 2 [Member] | Non-U.S. corporate bonds [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 87 | 112 | ||
Level 2 [Member] | Mortgage backed securities [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 1 | |||
Level 2 [Member] | Other Fixed Income Securities [Member] | Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 10 | 12 | ||
Level 2 [Member] | Mutual funds [Member] | Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | [1] | 682 | 537 | |
Level 2 [Member] | Other [Member] | Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | [2] | 8 | ||
Level 2 [Member] | US [Member] | Equity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 337 | 38 | ||
Level 2 [Member] | Non-US [Member] | Equity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 289 | |||
Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 135 | 133 | ||
Level 3 [Member] | Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | 135 | 133 | ||
Level 3 [Member] | Insurance contracts [Member] | Other types of investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets by asset category | $ 135 | $ 133 | $ 125 | |
[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, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning plan assets | $ 2,585 | |
Ending plan assets | 2,439 | $ 2,585 |
Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning plan assets | 133 | |
Ending plan assets | 135 | 133 |
Other types of investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning plan assets | 678 | |
Ending plan assets | 817 | 678 |
Other types of investments [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning plan assets | 133 | |
Ending plan assets | 135 | 133 |
Other types of investments [Member] | Insurance contracts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning plan assets | 133 | |
Ending plan assets | 135 | 133 |
Other types of investments [Member] | Insurance contracts [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning plan assets | 133 | 125 |
Actual return on plan assets relating to assets still held at reporting date | 3 | 2 |
Purchases | 7 | 7 |
Settlements | (6) | (6) |
Transfers in and/or out of level 3 | 2 | 6 |
Currency impact | (4) | (1) |
Ending plan assets | $ 135 | $ 133 |
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, 2016USD ($) |
Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 165 |
2,018 | 171 |
2,019 | 169 |
2,020 | 172 |
2,021 | 174 |
2022 - 2026 | 854 |
Total | 1,705 |
Healthcare [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 72 |
2,018 | 70 |
2,019 | 69 |
2,020 | 69 |
2,021 | 69 |
2022 - 2026 | 328 |
Total | 677 |
Medicare Part D Reimbursement [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 - 2026 | (1) |
Total | (1) |
Other [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 32 |
2,018 | 31 |
2,019 | 32 |
2,020 | 34 |
2,021 | 31 |
2022 - 2026 | 135 |
Total | $ 295 |
Other Liabilities - Summary of
Other Liabilities - Summary of Other Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Other Liabilities Disclosure [Abstract] | ||||
Advances on buy-back agreements | $ 2,429 | $ 2,147 | ||
Warranty and campaign programs | 940 | 908 | $ 1,020 | |
Marketing and sales incentive programs | 1,182 | 1,166 | ||
Tax payables | 714 | 528 | ||
Accrued expenses and deferred income | 634 | 595 | ||
Accrued employee benefits | 633 | 572 | ||
Legal reserves and other provisions | 355 | 389 | ||
Contract reserve | 407 | 396 | ||
Restructuring reserve | 30 | 51 | $ 95 | $ 77 |
Other | 681 | 736 | ||
Total | $ 8,005 | $ 7,488 |
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, 2016 | Dec. 31, 2015 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at beginning of period | $ 908 | $ 1,020 |
Additions | 806 | 738 |
Claims paid | (706) | (723) |
Currency translation adjustment and other | (68) | (127) |
Balance at end of period | $ 940 | $ 908 |
Other Liabilities - Additional
Other Liabilities - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | $ 44 | $ 84 | $ 184 |
Joint venture ownership percentage | 50.00% | ||
Estimated restructuring expenses | $ 100 | ||
2017 [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Estimated incremental saving amount | 60 | ||
2018 and Thereafter [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Estimated incremental saving amount | 80 | ||
Commercial Vehicles [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | 34 | 44 | 102 |
Agriculture Equipment [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | $ 9 | 18 | $ 43 |
Agriculture Equipment [Member] | CHINA | |||
Restructuring Cost And Reserve [Line Items] | |||
Joint venture ownership percentage | 60.00% | ||
Construction Equipment Segment [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | $ 19 | $ 39 |
Other Liabilities - Restructuri
Other Liabilities - Restructuring Activity (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | $ 51 | $ 95 | $ 77 |
Restructuring charges | 44 | 84 | 184 |
Reserves utilized cash | (59) | (116) | (82) |
Reserves utilized non-cash | (3) | (5) | (63) |
Currency translation adjustments | (3) | (7) | (21) |
Ending balance | 30 | 51 | 95 |
Employee Severance [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | 30 | 86 | 69 |
Restructuring charges | 56 | 66 | 118 |
Reserves utilized cash | (55) | (112) | (74) |
Reserves utilized non-cash | (5) | (13) | |
Currency translation adjustments | (8) | (5) | (14) |
Ending balance | 23 | 30 | 86 |
Facility Related Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | 5 | 6 | 1 |
Restructuring charges | (1) | 32 | |
Reserves utilized cash | (3) | ||
Reserves utilized non-cash | (26) | ||
Currency translation adjustments | 3 | 2 | (1) |
Ending balance | 7 | 5 | 6 |
Other Restructuring [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | 16 | 3 | 7 |
Restructuring charges | (11) | 18 | 34 |
Reserves utilized cash | (4) | (1) | (8) |
Reserves utilized non-cash | (3) | (24) | |
Currency translation adjustments | 2 | (4) | (6) |
Ending balance | $ 0 | $ 16 | $ 3 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) € in Millions, $ in Millions | Jul. 19, 2016USD ($) | Jul. 19, 2016EUR (€) | Jun. 30, 2016USD ($) | Jun. 30, 2016EUR (€) | Mar. 31, 2016USD ($) | Mar. 31, 2016EUR (€) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)site | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
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 | $ 35 | $ 37 | ||||||||
Non-recurring non-tax deductible charge | $ 502 | € 450 | $ 551 | |||||||
Rental expense for all operating leases | 67 | 69 | $ 58 | |||||||
Guarantees at carrying value | 291 | $ 316 | ||||||||
Fiat Chrysler Automobiles N.V. | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Other contingencies | 1,300 | |||||||||
Bonds due June 2017 [Member] | Fiat Chrysler Automobiles N.V. | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Bonds guaranteed by FCA | $ 1,100 | |||||||||
Bonds, maturity month and year | 2017-06 | |||||||||
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 | |||||||||
Iveco S.p.A [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Non-recurring non-tax deductible charge | $ 49 | € 45 | ||||||||
Payment of exceptional non-tax deductible charge | $ 543 | € 495 | ||||||||
Litigation settlement payment term | The fine was paid by the Company on October 20, 2016. |
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, 2016USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,017 | $ 72 |
2,018 | 51 |
2,019 | 39 |
2,020 | 28 |
2,021 | 25 |
2022 and beyond | 21 |
Total minimum rental commitments | $ 236 |
Commitments and Contingencie109
Commitments and Contingencies - Financial Services has Various Agreements to Extend Credit (Detail) - Wholesale and dealer financing [Member] $ in Millions | Dec. 31, 2016USD ($) |
Line Of Credit Facility [Line Items] | |
Total Credit Limit | $ 6,917 |
Utilized | 3,728 |
Not Utilized | $ 3,189 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Maturity of foreign exchange contracts | 18 months | |
After-tax gains (losses) deferred in AOCI of foreign exchange contracts to be reclassified to earnings over the next 12 months | $ (73) | |
Maximum time for hedging interest rate cash flow hedge | 23 months | |
After-tax gains (losses) deferred in AOCI of interest rate derivatives to be reclassified to earnings over the next 12 months | $ (1) | |
Foreign Exchange Derivatives [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Notional amount | $ 7,000 | $ 7,100 |
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 | $ 0 | |
Interest Rate Derivatives [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Notional amount | $ 4,300 | $ 4,600 |
Financial Instruments - Fair Va
Financial Instruments - Fair Values of Derivatives (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | $ 95 | $ 211 |
Derivative Liabilities, Total | (249) | (69) |
Derivatives Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | 62 | 107 |
Derivative Liabilities, Total | (122) | (35) |
Derivatives Designated as Hedging Instruments [Member] | Foreign Exchange Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | 47 | 61 |
Derivative Liabilities, Total | (105) | (29) |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | 15 | 30 |
Derivative Liabilities, Total | (17) | (6) |
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 | 33 | 104 |
Derivative Liabilities, Total | (127) | (34) |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Exchange Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | 31 | 100 |
Derivative Liabilities, Total | (116) | (30) |
Derivatives Not Designated as Hedging Instruments [Member] | Interest Rate Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | 2 | 4 |
Derivative Liabilities, Total | $ (11) | $ (4) |
Financial Instruments - Pre-tax
Financial Instruments - Pre-tax Gains (Losses) on Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flow Hedges | |||
Foreign exchange contracts-accumulated other comprehensive income (effective portion) | $ (72) | $ (19) | $ (251) |
Foreign exchange contracts-accumulated other comprehensive income (effective portion) | 13 | (39) | 1 |
Interest Expense [Member] | |||
Fair Value Hedges | |||
Interest rate derivatives | (33) | (8) | (8) |
Gains/(losses) on hedged items | 33 | 8 | 8 |
Cash Flow Hedges | |||
Interest rate derivatives-Reclassified from accumulated other comprehensive income (effective portion) | (4) | (7) | (12) |
Net sales [Member] | |||
Cash Flow Hedges | |||
Foreign exchange contracts, Reclassified from accumulated other comprehensive income (effective portion) | 55 | 16 | 14 |
Cost of Goods Sold [Member] | |||
Cash Flow Hedges | |||
Foreign exchange contracts, Reclassified from accumulated other comprehensive income (effective portion) | (4) | (211) | (7) |
Other, Net [Member] | |||
Cash Flow Hedges | |||
Foreign exchange contracts, Reclassified from accumulated other comprehensive income (effective portion) | (5) | (10) | (30) |
Not Designated as Hedges | |||
Not Designated as Hedges, Foreign exchange contracts | $ (231) | $ 115 | $ (14) |
Financial Instruments - Assets
Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value Measurements Recurring [Member] - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | $ 96 | $ 212 |
Total Liabilities | (249) | (69) |
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 | 78 | 161 |
Total Liabilities | (221) | (59) |
Interest Rate Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 17 | 34 |
Total Liabilities | (28) | (10) |
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 | 95 | 211 |
Total Liabilities | (249) | (69) |
Level 2 [Member] | Foreign Exchange Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 78 | 161 |
Total Liabilities | (221) | (59) |
Level 2 [Member] | Interest Rate Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 17 | 34 |
Total Liabilities | $ (28) | (10) |
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, 2016 | Dec. 31, 2015 | |
Carrying Amount [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Financing receivables | $ 18,662 | $ 19,001 | [1] |
Debt | 25,276 | 26,301 | [1] |
Fair Value [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Financing receivables | 18,554 | 18,868 | |
Debt | $ 25,372 | $ 26,371 | |
[1] | Certain amounts have been reclassified to conform to the current presentation of debt issuance costs in the consolidated balance sheet as of December 31, 2015, following the adoption of new guidance effective January 1, 2016. |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | Mar. 02, 2017USD ($) | Mar. 02, 2017EUR (€)€ / shares | Apr. 15, 2016USD ($) | Apr. 15, 2016EUR (€)€ / shares | Apr. 15, 2015USD ($) | Apr. 15, 2015EUR (€)€ / shares | Dec. 31, 2016USD ($)Voteshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2016EUR (€)€ / sharesshares | Jan. 31, 2016USD ($) | Dec. 31, 2015€ / sharesshares | Dec. 31, 2013shares | Sep. 30, 2013€ / shares |
Class Of Stock [Line Items] | ||||||||||||||
Authorized share capital amount | € | € 40,000,000 | |||||||||||||
Common and special voting shares | $ 25,000,000 | € 18,000,000 | ||||||||||||
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | ||||||||||||
Common shares, shares outstanding | 1,361,630,903 | 1,355,319,640 | 1,361,630,903 | 1,362,048,989 | 1,350,073,530 | |||||||||
Common shares, par value | € / shares | € 0.01 | € 0.01 | € 0.01 | |||||||||||
Special voting shares, shares outstanding | 412,268,203 | 415,399,503 | 412,268,203 | 413,249,206 | 468,994,386 | |||||||||
Special voting shares, shares authorized | 2,000,000,000 | 2,000,000,000 | ||||||||||||
Capital increase | 1,693,695 | 6,729,349 | 5,246,110 | |||||||||||
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. | |||||||||||||
Number of votes eligible for each common share | Vote | 2 | |||||||||||||
Common Shares, Registered | three years | |||||||||||||
Special voting shares, per share par value | € / shares | € 0.01 | |||||||||||||
Stock repurchase expiration date | Oct. 14, 2017 | Oct. 14, 2017 | Oct. 14, 2016 | Oct. 14, 2016 | ||||||||||
Common shares repurchased | 2,100,000 | |||||||||||||
Common shares repurchased, amount | $ | $ 14,000,000 | |||||||||||||
Treasury stock, shares | 1,278,708 | 1,278,708 | 0 | |||||||||||
Treasury stock, value | $ | $ 9,000,000 | |||||||||||||
Dividend declared per share | € / shares | € 0.13 | € 0.20 | ||||||||||||
Dividend declared amount | $ 201,000,000 | € 177,000,000 | $ 291,000,000 | € 272,000,000 | $ 202,000,000 | $ 292,000,000 | $ 378,000,000 | |||||||
Dividends Payable, Date to be Paid | May 31, 2016 | May 31, 2016 | Apr. 30, 2015 | Apr. 30, 2015 | ||||||||||
Subsequent Event [Member] | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Dividend declared per share | € / shares | € 0.11 | |||||||||||||
Dividend declared amount | $ 160,000,000 | € 150,000,000 | ||||||||||||
Maximum [Member] | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Stock repurchase program percentage of shares authorized to be repurchased | 10.00% | |||||||||||||
Common shares repurchased, amount | $ | $ 300,000,000 | |||||||||||||
Special Voting Shares [Member] | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Retirement of special voting shares | 981,003 | 2,150,297 | 53,594,883 | |||||||||||
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. | |||||||||||||
Treasury stock, shares | 62,206,073 | 62,206,073 |
Shareholders Equity - Changes i
Shareholders Equity - Changes in the Composition of the Share of CHN Industrial (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition Equity Interests Issued Or Issuable [Line Items] | |||
Common shares, shares outstanding | 1,362,048,989 | 1,355,319,640 | 1,350,073,530 |
Capital increase | 1,693,695 | 6,729,349 | 5,246,110 |
Common stock repurchases | (2,111,781) | ||
Common shares, shares outstanding | 1,361,630,903 | 1,362,048,989 | 1,355,319,640 |
Special voting shares, shares outstanding | 413,249,206 | 415,399,503 | 468,994,386 |
Special voting shares, shares outstanding | 412,268,203 | 413,249,206 | 415,399,503 |
Common and special voting shares, shares outstanding | 1,775,298,195 | 1,770,719,143 | 1,819,067,916 |
Common and special voting shares, shares outstanding | 1,773,899,106 | 1,775,298,195 | 1,770,719,143 |
Special Voting Shares [Member] | |||
Business Acquisition Equity Interests Issued Or Issuable [Line Items] | |||
Retirement of special voting shares | (981,003) | (2,150,297) | (53,594,883) |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2012shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2012Installment$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation expense | $ | $ 3,000 | $ 49,000 | $ 49,000 | ||
Tax benefit relating to share-based compensation expense | $ | 0 | $ 3,000 | $ 4,000 | ||
Unrecognized share-based compensation expense | $ | $ 31,000 | ||||
Unrecognized share-based compensation costs weighted-average period | 1 year 7 months 6 days | ||||
Shares authorizes | 25,000,000 | ||||
Common shares authorized period | 5 years | ||||
CNH EIP [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common shares authorized period | 5 years | ||||
Number of outstanding options | 7,210,881 | 8,642,903 | |||
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 | ||||
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 | ||||
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 | ||||
CNH DCP [Member] | Governance [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Annual board of directors member fee | $ | 20 | ||||
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 | ||||
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 | $ 0 | $ 1.65 | $ 2.72 | ||
Executive Director [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares authorizes | 7,000,000 | ||||
Performance Shares [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Reversal of previously recognized share-based compensation expense | $ | $ 37,000 | ||||
Granted | 500,000 | 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% | ||||
Share-based performance period before vesting | 3 years | ||||
Fair value of stock awarded | $ / shares | $ 7.08 | $ 9.33 | $ 9.48 | ||
Expected weighted average grant date | 5 years | ||||
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 | $ 3.17 | $ 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 | 2,000,000 | 1,000,000 | ||
Fair value of stock awarded | $ / shares | $ 7.30 | $ 8.60 | $ 9.21 | ||
Vesting period | 3 years | 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 | 700,000 | ||
Fair value of stock awarded | $ / shares | $ 11.40 | ||||
Vesting period | 3 years | ||||
Number of installments | Installment | 3 | ||||
Restricted Stock Units [Member] | CNH Industrial DCP [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Granted | 20,000 | ||||
Fair value of stock awarded | $ / shares | $ 6.78 | $ 8.16 | $ 9.12 | ||
Restricted Stock Units [Member] | Board of Directors Chairman [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Granted | 3,000,000 | ||||
Fair value of stock awarded | $ / shares | $ 10.41 | ||||
Restricted Stock Units [Member] | Board of Directors Chairman [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 | ||||
Restricted Stock Units [Member] | Board of Directors Chairman [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 | ||||
Restricted Stock Units [Member] | Board of Directors Chairman [Member] | Share-based Compensation Award, Tranche Three [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted share unit vested | 600,000 | ||||
Stock Option Plan [Member] | CNH EIP [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Original contract term of option | 5 years | ||||
Shares issued during period | 0 | 0 | 0 | ||
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 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Weighted-Average Assumptions Used under Black-Scholes/Monte Carlo (Detail) - Performance Shares [Member] | Jun. 25, 2014 | Jun. 09, 2014 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shares | |||
Granted | 500,000 | 1,000,000 | 12,000,000 |
Weighted Average Grant-Date Fair Value | |||
Granted | $ 7.08 | $ 9.33 | $ 9.48 |
CNH Industrial EIP [Member] | |||
Shares | |||
Nonvested at beginning of year | 11,591,260 | ||
Granted | 471,200 | ||
Forfeited | (337,200) | ||
Nonvested at end of year | 11,725,260 | 11,591,260 | |
Weighted Average Grant-Date Fair Value | |||
Nonvested at beginning of year | $ 8.64 | ||
Granted | 5.13 | ||
Forfeited | 8.23 | ||
Nonvested at end of year | $ 8.51 | $ 8.64 |
Share-Based Compensation - S120
Share-Based Compensation - Schedule of Restricted-Based Share Activity (Detail) - Restricted Stock Units [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shares | |||
Granted | 2,000,000 | 2,000,000 | 1,000,000 |
Weighted Average Grant-Date Fair Value | |||
Granted | $ 7.30 | $ 8.60 | $ 9.21 |
CNH Industrial EIP [Member] | |||
Shares | |||
Nonvested at beginning of year | 3,745,520 | ||
Granted | 2,046,280 | ||
Forfeited | (110,420) | ||
Vested | (1,448,672) | ||
Nonvested at end of year | 4,232,708 | 3,745,520 | |
Weighted Average Grant-Date Fair Value | |||
Nonvested at beginning of year | $ 9.07 | ||
Granted | 7.30 | ||
Forfeited | 8.16 | ||
Vested | 9.35 | ||
Nonvested at end of year | $ 8.14 | $ 9.07 |
Share-Based Compensation - Outs
Share-Based Compensation - Outstanding Stock Options (Detail) - CNH EIP [Member] | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
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 | 3,378,704 |
Options Outstanding, Weighted-Average Contractual Life | 1 year 1 month 24 days |
Options Outstanding, Weighted-Average Exercise Price | $ 8.78 |
Shares Exercisable | shares | 3,378,704 |
Options Exercisable, Weighted-Average Contractual Life | 1 year 1 month 24 days |
Options Exercisable, Weighted-Average Exercise Price | $ 8.78 |
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 | 3,832,177 |
Options Outstanding, Weighted-Average Contractual Life | 1 month 28 days |
Options Outstanding, Weighted-Average Exercise Price | $ 10.15 |
Shares Exercisable | shares | 3,832,177 |
Options Exercisable, Weighted-Average Contractual Life | 1 month 28 days |
Options Exercisable, Weighted-Average Exercise Price | $ 10.15 |
Share-Based Compensation - O122
Share-Based Compensation - Outstanding Stock Options (Parenthetical) (Detail) | Dec. 31, 2016$ / 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 | $ 8.69 |
Share-Based Compensation - S123
Share-Based Compensation - Schedule of Stock Option Activity (Detail) - CNH EIP [Member] | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Shares | |
Outstanding at beginning of year | shares | 8,642,903 |
Expired | shares | (1,432,022) |
Outstanding at end of year | shares | 7,210,881 |
Exercisable at end of year | shares | 7,210,881 |
Weighted-Average Exercise Price | |
Outstanding at beginning of year | $ / shares | $ 9.25 |
Expired | $ / shares | 7.96 |
Outstanding at end of year | $ / shares | 9.51 |
Exercisable at end of year | $ / shares | $ 9.51 |
Share-Based Compensation - A124
Share-Based Compensation - Additional Share Based Compensation Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Total intrinsic value of options exercised and shares vested | $ 12 | $ 33 | $ 42 |
Fair value of shares vested | $ 14 | 36 | 32 |
Cash received from share award exercises | $ 8 | $ 10 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Basic: | ||||
Net income (loss) attributable to CNH Industrial | $ (252) | $ 253 | $ 710 | |
Weighted average common shares outstanding—basic | 1,362 | 1,361 | 1,354 | |
Basic earnings per share | $ (0.18) | $ 0.19 | $ 0.52 | |
Diluted: | ||||
Net income attributable to CNH Industrial | $ (252) | $ 253 | $ 710 | |
Weighted average common shares outstanding—basic | 1,362 | 1,361 | 1,354 | |
Effect of dilutive securities (when dilutive): | ||||
Stock compensation plans | [1] | 2 | 6 | |
Weighted average common shares outstanding—diluted | 1,362 | 1,363 | 1,360 | |
Diluted earnings per share | $ (0.18) | $ 0.19 | $ 0.52 | |
[1] | For the twelve months ended December 31, 2016, 2015, and 2014, 7.3 million, 7.9 million, and 8.9 million stock options were excluded from the computation of diluted earnings per share, respectively, due to an anti-dilutive impact. An additional 1.9 million shares of common stock outstanding at December 31, 2016 were excluded from the computation of diluted earnings per share due to the net loss position. |
Earnings Per Share - Computa126
Earnings Per Share - Computation of Basic EPS and Diluted EPS (Parenthetical) (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Options [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti dilutive securities | 7.3 | 7.9 | 8.9 |
Restricted Stock Units [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti dilutive securities | 1.9 |
Accumulated Other Comprehens127
Accumulated Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | |||
Unrealized gain (loss) on cash flow hedges, Gross Amount | $ (101) | $ 154 | $ (215) |
Changes in retirement plans' funded status, Gross Amount | (81) | 191 | (337) |
Foreign currency translation, Gross Amount | 319 | (359) | 125 |
Share of other comprehensive income (loss) of entities using the equity method, Gross Amount | (40) | (47) | (44) |
Other comprehensive income (loss), Gross Amount | 97 | (61) | (471) |
Unrealized gain (loss) on cash flow hedges, Income Taxes | 10 | (34) | 49 |
Changes in retirement plans' funded status, Income Taxes | (8) | (33) | 55 |
Other comprehensive income (loss), Income Taxes | 2 | (67) | 104 |
Unrealized gain (loss) on cash flow hedges, Net Amount | (91) | 120 | (166) |
Changes in retirement plans’ funded status | (89) | 158 | (282) |
Foreign currency translation, Net Amount | 319 | (359) | 125 |
Share of other comprehensive income (loss) of entities using the equity method, Net Amount | (40) | (47) | (44) |
Other comprehensive income (loss), net of tax | $ 99 | $ (128) | $ (367) |
Accumulated Other Comprehens128
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | $ 4,843 | $ 4,961 | $ 4,955 | |
Ending balance | 4,451 | 4,843 | 4,961 | |
Unrealized Gain (Loss) on Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 3 | (117) | 49 | |
Other comprehensive income (loss), before reclassifications | (58) | (28) | (201) | |
Amounts reclassified from other comprehensive income (loss) | (33) | 148 | 35 | |
Other comprehensive income (loss) | [1] | (91) | 120 | (166) |
Ending balance | (88) | 3 | (117) | |
Change in Retirement Plans' Funded Status [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (947) | (1,105) | (826) | |
Other comprehensive income (loss), before reclassifications | (172) | 76 | (337) | |
Amounts reclassified from other comprehensive income (loss) | 83 | 82 | 58 | |
Other comprehensive income (loss) | [1] | (89) | 158 | (279) |
Ending balance | (1,036) | (947) | (1,105) | |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (806) | (448) | (574) | |
Other comprehensive income (loss), before reclassifications | 316 | (358) | 126 | |
Other comprehensive income (loss) | [1] | 316 | (358) | 126 |
Ending balance | (490) | (806) | (448) | |
Share of Other Comprehensive Income of Entities Using the Equity Method [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (113) | (66) | (22) | |
Other comprehensive income (loss), before reclassifications | (40) | (47) | (44) | |
Other comprehensive income (loss) | [1] | (40) | (47) | (44) |
Ending balance | (153) | (113) | (66) | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (1,863) | (1,736) | (1,373) | |
Other comprehensive income (loss), before reclassifications | 46 | (357) | (456) | |
Amounts reclassified from other comprehensive income (loss) | 50 | 230 | 93 | |
Other comprehensive income (loss) | [1] | 96 | (127) | (363) |
Ending balance | $ (1,767) | $ (1,863) | $ (1,736) | |
[1] | Excluded from the table above is other comprehensive loss allocated to noncontrolling interests of $3, $(1) and $(4) for the years ended December 31, 2016, 2015 and 2014, respectively. |
Accumulated Other Comprehens129
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | |||
Other comprehensive income (loss) allocated to noncontrolling interests | $ 3 | $ (1) | $ (4) |
Accumulated Other Comprehens130
Accumulated Other Comprehensive Income (Loss) - Schedule of Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net sales | $ 23,669 | $ 24,677 | $ 31,196 |
Cost of goods sold | 19,539 | 20,357 | 25,534 |
Other, net | 1,148 | 625 | 399 |
Interest expense | 1,028 | 1,106 | 1,318 |
Income tax (expense) | (298) | (360) | (467) |
Net income (loss) | (249) | 248 | $ 708 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income (loss) | 50 | 230 | |
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 | (55) | (16) | |
Cost of goods sold | 4 | 211 | |
Other, net | 5 | 10 | |
Interest expense | 4 | 7 | |
Income tax (expense) | 9 | (64) | |
Net income (loss) | (33) | 148 | |
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 | 99 | 102 | |
Amortization of prior service cost | (5) | (9) | |
Income tax (expense) | (11) | (11) | |
Net income (loss) | $ 83 | $ 82 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)SegmentCustomer | Dec. 31, 2015USD ($)Customer | Dec. 31, 2014USD ($)Customer | |
Segment Reporting Information [Line Items] | |||
Number of segments | Segment | 5 | ||
Revenues | $ 24,872 | $ 25,912 | $ 32,555 |
Number of customer | Customer | 0 | 0 | 0 |
U.K. | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 842 | $ 1,008 | $ 1,054 |
Total long-lived assets | 234 | 253 | |
Rest of World and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 24,030 | 24,904 | $ 31,501 |
Total long-lived assets | $ 11,306 | $ 11,320 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting [Abstract] | |||
Operating profit | $ 1,439 | $ 1,635 | $ 2,199 |
Restructuring expenses | (44) | (84) | (184) |
Interest expenses of Industrial Activities, net of interest income and eliminations | (543) | (479) | (613) |
Other, net | (861) | (505) | (313) |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | $ (9) | $ 567 | $ 1,089 |
Segment Reporting - Reconcil133
Segment Reporting - Reconciliation from Operating Profit (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Operating profit | $ 1,439 | $ 1,635 | $ 2,199 |
Industrial Activities [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | 1,291 | 1,432 | 1,988 |
Industrial Activities [Member] | Operating Segments [Member] | Agricultural Equipment [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | 818 | 952 | 1,770 |
Industrial Activities [Member] | Operating Segments [Member] | Construction Equipment [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | 2 | 90 | 79 |
Industrial Activities [Member] | Operating Segments [Member] | Commercial Vehicles [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | 333 | 283 | 29 |
Industrial Activities [Member] | Operating Segments [Member] | Powertrain [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | 232 | 186 | 223 |
Industrial Activities [Member] | Eliminations and other [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | (94) | (79) | (113) |
Financial Services [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | 478 | 515 | 554 |
Financial Services [Member] | Eliminations and other [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | $ (330) | $ (312) | $ (343) |
Segment Reporting - Revenue fro
Segment Reporting - Revenue from Operating Segments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | $ 23,669 | $ 24,677 | $ 31,196 |
Finance and interest income | 1,203 | 1,235 | 1,359 |
Net revenues | 24,872 | 25,912 | 32,555 |
Depreciation and amortization | 716 | 699 | 731 |
Expenditures for long-lived assets | 503 | 656 | 1,022 |
Agricultural Equipment [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | 10,120 | 11,025 | 15,204 |
Depreciation and amortization | 309 | 303 | 288 |
Expenditures for long-lived assets | 194 | 308 | 408 |
Construction Equipment [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | 2,304 | 2,542 | 3,346 |
Depreciation and amortization | 69 | 70 | 85 |
Expenditures for long-lived assets | 36 | 47 | 65 |
Commercial Vehicles [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | 9,553 | 9,542 | 10,888 |
Depreciation and amortization | 208 | 198 | 209 |
Expenditures for long-lived assets | 173 | 182 | 391 |
Powertrain [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | 3,707 | 3,560 | 4,464 |
Depreciation and amortization | 124 | 123 | 144 |
Expenditures for long-lived assets | 96 | 112 | 136 |
Industrial Activities [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | 23,669 | 24,677 | 31,198 |
Finance and interest income | 153 | 201 | 258 |
Net revenues | 23,822 | 24,878 | 31,456 |
Depreciation and amortization | 710 | 694 | 725 |
Expenditures for long-lived assets | 501 | 653 | 1,005 |
Industrial Activities [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | 23,669 | 24,677 | 31,198 |
Depreciation and amortization | 710 | 694 | 725 |
Expenditures for long-lived assets | 501 | 653 | 1,005 |
Industrial Activities [Member] | Eliminations and other [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | (2,015) | (1,992) | (2,704) |
Industrial Activities [Member] | Corporate Non Segment | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | (1) | ||
Expenditures for long-lived assets | 2 | 4 | 5 |
Financial Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Finance and interest income | 1,570 | 1,603 | 1,828 |
Net revenues | 1,570 | 1,603 | 1,828 |
Depreciation and amortization | 6 | 5 | 6 |
Expenditures for long-lived assets | 2 | 3 | 17 |
Financial Services [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Finance and interest income | 1,570 | 1,603 | 1,828 |
Depreciation and amortization | 6 | 5 | 6 |
Expenditures for long-lived assets | 2 | 3 | 17 |
Financial Services [Member] | Eliminations and other [Member] | |||
Segment Reporting Information [Line Items] | |||
Finance and interest income | $ (367) | $ (368) | $ (471) |
Segment Reporting - Revenue by
Segment Reporting - Revenue by Geographical Segments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 24,872 | $ 25,912 | $ 32,555 |
UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4,628 | 5,533 | 7,472 |
FRANCE | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,608 | 2,580 | 2,913 |
ITALY | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,874 | 2,524 | 2,854 |
BRAZIL | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,587 | 1,670 | 3,708 |
GERMANY | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,574 | 1,565 | 1,845 |
CANADA | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,182 | 1,229 | 1,606 |
AUSTRALIA | |||
Segment Reporting Information [Line Items] | |||
Revenues | 947 | 846 | 926 |
SPAIN | |||
Segment Reporting Information [Line Items] | |||
Revenues | 921 | 810 | 807 |
ARGENTINA | |||
Segment Reporting Information [Line Items] | |||
Revenues | 680 | 768 | 570 |
POLAND | |||
Segment Reporting Information [Line Items] | |||
Revenues | 435 | 479 | 562 |
Others Countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 6,594 | 6,900 | 8,238 |
Rest of World and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 24,030 | $ 24,904 | $ 31,501 |
Segment Reporting - Long-lived
Segment Reporting - Long-lived Assets by Geographical Segments (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
US [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 5,081 | $ 5,202 |
ITALY | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 1,510 | 1,580 |
FRANCE | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 805 | 794 |
SPAIN | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 625 | 579 |
GERMANY | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 808 | 849 |
BRAZIL | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 436 | 371 |
CANADA | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 519 | 441 |
CHINA | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 280 | 313 |
Others Countries [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 1,242 | 1,191 |
Rest of World and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 11,306 | $ 11,320 |
Related Party Information - Add
Related Party Information - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
EXOR N.V | ||
Related Party Transaction [Line Items] | ||
Percentage of common shares outstanding held by related parties | 41.40% | |
Iveco-Oto Melara Societa Consortile [Member] | ||
Related Party Transaction [Line Items] | ||
Pledged guarantees on commitments | $ 187 | $ 203 |
Related Party Information - Sch
Related Party Information - Schedule of Related Party Transactions (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
FCA Group [Member] | |||
Related Party Transaction [Line Items] | |||
Net sales | $ 806 | $ 762 | $ 943 |
Cost of goods sold | 466 | 463 | 551 |
Selling, general and administrative expenses | 148 | 161 | 234 |
Trade receivables | 11 | 14 | |
Trade payables | 105 | 136 | |
Subsidiaries and Affiliates [Member] | |||
Related Party Transaction [Line Items] | |||
Net sales | 782 | 700 | 843 |
Cost of goods sold | 392 | 430 | $ 564 |
Trade receivables | 113 | 72 | |
Trade payables | $ 108 | $ 156 |
Supplemental Information - Supp
Supplemental Information - Supplemental Information of Income Statement (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | |||
Net sales | $ 23,669 | $ 24,677 | $ 31,196 |
Finance and interest income | 1,203 | 1,235 | 1,359 |
Total Revenues | 24,872 | 25,912 | 32,555 |
Costs and Expenses | |||
Cost of goods sold | 19,539 | 20,357 | 25,534 |
Selling, general & administrative expenses | 2,262 | 2,317 | 2,925 |
Research and development expenses | 860 | 856 | 1,106 |
Restructuring expenses | 44 | 84 | 184 |
Interest expense | 1,028 | 1,106 | 1,318 |
Other, net | 1,148 | 625 | 399 |
Total Costs and Expenses | 24,881 | 25,345 | 31,466 |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | (9) | 567 | 1,089 |
Income tax (expense) | (298) | (360) | (467) |
Equity in income of unconsolidated subsidiaries and affiliates | 58 | 41 | 86 |
Net income (loss) | (249) | 248 | 708 |
Industrial Activities [Member] | |||
Revenues | |||
Net sales | 23,669 | 24,677 | 31,198 |
Finance and interest income | 153 | 201 | 258 |
Total Revenues | 23,822 | 24,878 | 31,456 |
Costs and Expenses | |||
Cost of goods sold | 19,539 | 20,357 | 25,536 |
Selling, general & administrative expenses | 1,979 | 2,032 | 2,568 |
Research and development expenses | 860 | 856 | 1,106 |
Restructuring expenses | 43 | 82 | 184 |
Interest expense | 694 | 678 | 857 |
Interest compensation to Financial Services | 332 | 314 | 357 |
Other, net | 855 | 497 | 290 |
Total Costs and Expenses | 24,302 | 24,816 | 30,898 |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | (480) | 62 | 558 |
Income tax (expense) | (137) | (202) | (280) |
Equity in income of unconsolidated subsidiaries and affiliates | 34 | 20 | 68 |
Results from intersegment investments | 334 | 368 | 362 |
Net income (loss) | (249) | 248 | 708 |
Financial services [Member] | |||
Revenues | |||
Finance and interest income | 1,570 | 1,603 | 1,828 |
Total Revenues | 1,570 | 1,603 | 1,828 |
Costs and Expenses | |||
Selling, general & administrative expenses | 283 | 285 | 357 |
Restructuring expenses | 1 | 2 | |
Interest expense | 521 | 576 | 705 |
Other, net | 294 | 235 | 235 |
Total Costs and Expenses | 1,099 | 1,098 | 1,297 |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | 471 | 505 | 531 |
Income tax (expense) | (161) | (158) | (187) |
Equity in income of unconsolidated subsidiaries and affiliates | 24 | 21 | 18 |
Results from intersegment investments | 2 | ||
Net income (loss) | $ 334 | $ 368 | $ 364 |
Supplemental Information - S140
Supplemental Information - Supplemental Information of Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS | ||||
Cash and cash equivalents | $ 5,017 | $ 5,384 | $ 5,163 | $ 5,567 |
Restricted cash | 837 | 927 | ||
Trade receivables | 623 | 580 | ||
Financing receivables | 18,662 | 19,001 | 21,472 | |
Inventories, net | 5,609 | 5,690 | ||
Property, plant and equipment, net | 6,397 | 6,481 | ||
Investments in unconsolidated subsidiaries and affiliates | 487 | 527 | ||
Equipment under operating leases | 1,907 | 1,835 | ||
Goodwill | 2,449 | 2,447 | 2,484 | |
Other intangible assets, net | 787 | 810 | ||
Deferred tax assets | 937 | 1,250 | ||
Derivative assets | 95 | 211 | ||
Other assets | 1,740 | 1,534 | ||
Total Assets | 45,547 | 46,677 | ||
LIABILITIES AND EQUITY | ||||
Debt | 25,276 | 26,301 | ||
Trade payables | 5,185 | 5,342 | ||
Deferred tax liabilities | 84 | 334 | ||
Pension, postretirement and other postemployment benefits | 2,276 | 2,282 | ||
Derivative liability | 249 | 69 | ||
Other liabilities | 8,005 | 7,488 | ||
Total Liabilities | 41,075 | 41,816 | ||
Equity | 4,451 | 4,843 | 4,961 | 4,955 |
Redeemable noncontrolling interest | 21 | 18 | ||
Total Liabilities and Equity | 45,547 | 46,677 | ||
Industrial Activities [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 4,649 | 4,551 | 4,122 | 4,010 |
Restricted cash | 15 | |||
Trade receivables | 596 | 555 | ||
Financing receivables | 1,592 | 2,162 | ||
Inventories, net | 5,396 | 5,513 | ||
Property, plant and equipment, net | 6,395 | 6,479 | ||
Investments in unconsolidated subsidiaries and affiliates | 2,886 | 2,846 | ||
Equipment under operating leases | 17 | 10 | ||
Goodwill | 2,296 | 2,295 | ||
Other intangible assets, net | 772 | 793 | ||
Deferred tax assets | 1,060 | 1,087 | ||
Derivative assets | 98 | 205 | ||
Other assets | 1,505 | 1,271 | ||
Total Assets | 27,262 | 27,782 | ||
LIABILITIES AND EQUITY | ||||
Debt | 7,691 | 8,260 | ||
Trade payables | 5,042 | 5,176 | ||
Deferred tax liabilities | 84 | 60 | ||
Pension, postretirement and other postemployment benefits | 2,256 | 2,263 | ||
Derivative liability | 239 | 62 | ||
Other liabilities | 7,478 | 7,100 | ||
Total Liabilities | 22,790 | 22,921 | ||
Equity | 4,451 | 4,843 | ||
Redeemable noncontrolling interest | 21 | 18 | ||
Total Liabilities and Equity | 27,262 | 27,782 | ||
Financial services [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 368 | 833 | $ 1,041 | $ 1,557 |
Restricted cash | 837 | 912 | ||
Trade receivables | 58 | 52 | ||
Financing receivables | 19,546 | 19,974 | ||
Inventories, net | 213 | 177 | ||
Property, plant and equipment, net | 2 | 2 | ||
Investments in unconsolidated subsidiaries and affiliates | 153 | 136 | ||
Equipment under operating leases | 1,890 | 1,825 | ||
Goodwill | 153 | 152 | ||
Other intangible assets, net | 15 | 17 | ||
Deferred tax assets | 188 | 163 | ||
Derivative assets | 8 | 6 | ||
Other assets | 382 | 490 | ||
Total Assets | 23,813 | 24,739 | ||
LIABILITIES AND EQUITY | ||||
Debt | 20,061 | 21,176 | ||
Trade payables | 180 | 197 | ||
Deferred tax liabilities | 310 | 274 | ||
Pension, postretirement and other postemployment benefits | 20 | 19 | ||
Derivative liability | 21 | 7 | ||
Other liabilities | 669 | 611 | ||
Total Liabilities | 21,261 | 22,284 | ||
Equity | 2,552 | 2,455 | ||
Total Liabilities and Equity | $ 23,813 | $ 24,739 |
Supplemental Information - S141
Supplemental Information - Supplemental Information of Cash Flow (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities: | |||
Net income (loss) | $ (249) | $ 248 | $ 708 |
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 | 716 | 699 | 731 |
Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments | 545 | 447 | 409 |
(Gain) loss from disposal of assets | 4 | (2) | 8 |
Loss on repurchase of Notes | 60 | ||
Undistributed income (loss) of unconsolidated subsidiaries | 5 | 40 | 3 |
Other non-cash items | 195 | 331 | 254 |
Changes in operating assets and liabilities: | |||
Provisions | 46 | (48) | 121 |
Deferred income taxes | 65 | 119 | (39) |
Trade and financing receivables related to sales, net | (97) | 279 | (810) |
Inventories, net | 106 | 473 | (172) |
Trade payables | 96 | (161) | (862) |
Other assets and liabilities | 616 | 361 | 330 |
Net cash provided by operating activities | 2,108 | 2,786 | 681 |
Investing activities: | |||
Additions to retail receivables | (3,951) | (4,498) | (6,467) |
Collections of retail receivables | 4,569 | 5,146 | 6,506 |
Proceeds from sale of assets, net of assets sold under operating leases and assets sold under buy-back commitments | 12 | 11 | 25 |
Proceeds from sale of assets under operating leases and assets sold under buy-back commitments | 660 | 726 | 577 |
Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and sold under buy-back commitments | (503) | (656) | (1,022) |
Expenditures for assets under operating lease and assets sold under buy-back commitments | (1,631) | (1,851) | (1,814) |
Other | (77) | 174 | 225 |
Net cash used in investing activities | (921) | (948) | (1,970) |
Financing activities: | |||
Proceeds from long-term debt | 12,629 | 9,927 | 17,377 |
Payments of long-term debt | (13,770) | (10,668) | (15,323) |
Net increase (decrease) in other financial liabilities | (132) | 96 | (314) |
Dividends paid | (207) | (297) | (382) |
Other | (58) | 23 | 18 |
Net cash provided by (used in) financing activities | (1,538) | (919) | 1,376 |
Effect of foreign exchange rate changes on cash and cash equivalents | (16) | (698) | (491) |
Increase (decrease) in cash and cash equivalents | (367) | 221 | (404) |
Cash and cash equivalents, beginning of year | 5,384 | 5,163 | 5,567 |
Cash and cash equivalents, end of year | 5,017 | 5,384 | 5,163 |
Industrial Activities [Member] | |||
Operating activities: | |||
Net income (loss) | (249) | 248 | 708 |
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 | 710 | 694 | 725 |
Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments | 284 | 238 | 257 |
(Gain) loss from disposal of assets | 4 | (2) | (1) |
Loss on repurchase of Notes | 60 | ||
Undistributed income (loss) of unconsolidated subsidiaries | 37 | (104) | (181) |
Other non-cash items | 73 | 213 | 101 |
Changes in operating assets and liabilities: | |||
Provisions | 42 | (61) | 110 |
Deferred income taxes | 43 | 59 | (110) |
Trade and financing receivables related to sales, net | (7) | 354 | 285 |
Inventories, net | 141 | 507 | (187) |
Trade payables | 121 | (162) | (790) |
Other assets and liabilities | 460 | 112 | (104) |
Net cash provided by operating activities | 1,719 | 2,096 | 813 |
Investing activities: | |||
Proceeds from sale of assets, net of assets sold under operating leases and assets sold under buy-back commitments | 12 | 11 | 25 |
Proceeds from sale of assets under operating leases and assets sold under buy-back commitments | 234 | 320 | 319 |
Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and sold under buy-back commitments | (501) | (653) | (1,005) |
Expenditures for assets under operating lease and assets sold under buy-back commitments | (884) | (875) | (797) |
Other | 380 | 2,151 | 494 |
Net cash used in investing activities | (759) | 954 | (964) |
Financing activities: | |||
Proceeds from long-term debt | 1,754 | 650 | 3,356 |
Payments of long-term debt | (2,085) | (2,483) | (2,145) |
Net increase (decrease) in other financial liabilities | (219) | 51 | (194) |
Dividends paid | (207) | (297) | (382) |
Other | (58) | 23 | 18 |
Net cash provided by (used in) financing activities | (815) | (2,056) | 653 |
Effect of foreign exchange rate changes on cash and cash equivalents | (47) | (565) | (390) |
Increase (decrease) in cash and cash equivalents | 98 | 429 | 112 |
Cash and cash equivalents, beginning of year | 4,551 | 4,122 | 4,010 |
Cash and cash equivalents, end of year | 4,649 | 4,551 | 4,122 |
Financial services [Member] | |||
Operating activities: | |||
Net income (loss) | 334 | 368 | 364 |
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 | 6 | 5 | 6 |
Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments | 261 | 209 | 152 |
(Gain) loss from disposal of assets | 9 | ||
Undistributed income (loss) of unconsolidated subsidiaries | (25) | (17) | (20) |
Other non-cash items | 122 | 118 | 153 |
Changes in operating assets and liabilities: | |||
Provisions | 4 | 13 | 11 |
Deferred income taxes | 22 | 60 | 71 |
Trade and financing receivables related to sales, net | (95) | (50) | (1,101) |
Inventories, net | (35) | (34) | 15 |
Trade payables | (19) | 4 | (66) |
Other assets and liabilities | 155 | 220 | 434 |
Net cash provided by operating activities | 730 | 896 | 28 |
Investing activities: | |||
Additions to retail receivables | (3,951) | (4,498) | (6,467) |
Collections of retail receivables | 4,569 | 5,146 | 6,506 |
Proceeds from sale of assets under operating leases and assets sold under buy-back commitments | 426 | 406 | 258 |
Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and sold under buy-back commitments | (2) | (3) | (17) |
Expenditures for assets under operating lease and assets sold under buy-back commitments | (747) | (976) | (1,017) |
Other | (562) | (2,019) | (282) |
Net cash used in investing activities | (267) | (1,944) | (1,019) |
Financing activities: | |||
Proceeds from long-term debt | 10,875 | 9,277 | 14,021 |
Payments of long-term debt | (11,685) | (8,185) | (13,178) |
Net increase (decrease) in other financial liabilities | 87 | 45 | (120) |
Dividends paid | (341) | (207) | (160) |
Other | 105 | 43 | 13 |
Net cash provided by (used in) financing activities | (959) | 973 | 576 |
Effect of foreign exchange rate changes on cash and cash equivalents | 31 | (133) | (101) |
Increase (decrease) in cash and cash equivalents | (465) | (208) | (516) |
Cash and cash equivalents, beginning of year | 833 | 1,041 | 1,557 |
Cash and cash equivalents, end of year | $ 368 | $ 833 | $ 1,041 |
Supplemental Condensed Conso142
Supplemental Condensed Consolidating Financial Information - Condensed Statements of Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Income Statements Captions [Line Items] | |||
Total Revenues | $ 24,872 | $ 25,912 | $ 32,555 |
Cost and Expenses: | |||
Cost of goods sold | 19,539 | 20,357 | 25,534 |
Selling, general and administrative expenses | 2,262 | 2,317 | 2,925 |
Research and development expenses | 860 | 856 | 1,106 |
Restructuring expenses | 44 | 84 | 184 |
Interest expense | 1,028 | 1,106 | 1,318 |
Other, net | 1,148 | 625 | 399 |
Total Costs and Expenses | 24,881 | 25,345 | 31,466 |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | (9) | 567 | 1,089 |
Income tax (expense) benefit | (298) | (360) | (467) |
Equity in income (loss) of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method | 58 | 41 | 86 |
Net income (loss) | (249) | 248 | 708 |
Net income (loss) attributable to noncontrolling interests | 3 | (5) | (2) |
Net income (loss) attributable to CNH Industrial N.V. | (252) | 253 | 710 |
CNH Industrial N.V. [Member] | |||
Condensed Income Statements Captions [Line Items] | |||
Total Revenues | 1,370 | 1,541 | 2,034 |
Cost and Expenses: | |||
Cost of goods sold | 1,142 | 1,283 | 1,750 |
Selling, general and administrative expenses | 120 | 133 | 136 |
Research and development expenses | 6 | 11 | 13 |
Restructuring expenses | 3 | 2 | 3 |
Interest expense | 151 | 130 | 210 |
Interest compensation to Financial Services | 10 | 11 | 12 |
Other, net | 57 | 36 | 15 |
Total Costs and Expenses | 1,489 | 1,606 | 2,139 |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | (119) | (65) | (105) |
Income tax (expense) benefit | (4) | (13) | 101 |
Equity in income (loss) of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method | (129) | 331 | 714 |
Net income (loss) | (252) | 253 | 710 |
Net income (loss) attributable to CNH Industrial N.V. | (252) | 253 | 710 |
Case New Holland Industrial Inc. [Member] | |||
Condensed Income Statements Captions [Line Items] | |||
Total Revenues | 8 | 9 | 10 |
Cost and Expenses: | |||
Interest expense | 320 | 246 | 234 |
Other, net | (1) | (2) | (4) |
Total Costs and Expenses | 319 | 244 | 230 |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | (311) | (235) | (220) |
Income tax (expense) benefit | 112 | 85 | 71 |
Equity in income (loss) of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method | 377 | 425 | 918 |
Net income (loss) | 178 | 275 | 769 |
Net income (loss) attributable to CNH Industrial N.V. | 178 | 275 | 769 |
Guarantor Subsidiaries [Member] | |||
Condensed Income Statements Captions [Line Items] | |||
Total Revenues | 9,759 | 10,860 | 12,898 |
Cost and Expenses: | |||
Cost of goods sold | 8,130 | 9,039 | 10,269 |
Selling, general and administrative expenses | 491 | 495 | 652 |
Research and development expenses | 276 | 281 | 388 |
Restructuring expenses | (9) | 16 | 29 |
Interest expense | 118 | 162 | 140 |
Interest compensation to Financial Services | 189 | 184 | 201 |
Other, net | 103 | 199 | 185 |
Total Costs and Expenses | 9,298 | 10,376 | 11,864 |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | 461 | 484 | 1,034 |
Income tax (expense) benefit | (91) | (114) | (268) |
Equity in income (loss) of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method | 292 | 264 | 364 |
Net income (loss) | 662 | 634 | 1,130 |
Net income (loss) attributable to CNH Industrial N.V. | 662 | 634 | 1,130 |
All Other Subsidiaries [Member] | |||
Condensed Income Statements Captions [Line Items] | |||
Total Revenues | 19,592 | 19,509 | 24,283 |
Cost and Expenses: | |||
Cost of goods sold | 15,431 | 15,339 | 19,422 |
Selling, general and administrative expenses | 1,651 | 1,689 | 2,137 |
Research and development expenses | 578 | 564 | 705 |
Restructuring expenses | 50 | 66 | 152 |
Interest expense | 933 | 1,076 | 1,284 |
Other, net | 989 | 392 | 203 |
Total Costs and Expenses | 19,632 | 19,126 | 23,903 |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | (40) | 383 | 380 |
Income tax (expense) benefit | (315) | (318) | (371) |
Equity in income (loss) of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method | 140 | 62 | (32) |
Net income (loss) | (215) | 127 | (23) |
Net income (loss) attributable to noncontrolling interests | 3 | (5) | (2) |
Net income (loss) attributable to CNH Industrial N.V. | (218) | 132 | (21) |
Eliminations [Member] | |||
Condensed Income Statements Captions [Line Items] | |||
Total Revenues | (5,857) | (6,007) | (6,670) |
Cost and Expenses: | |||
Cost of goods sold | (5,164) | (5,304) | (5,907) |
Interest expense | (494) | (508) | (550) |
Interest compensation to Financial Services | (199) | (195) | (213) |
Total Costs and Expenses | (5,857) | (6,007) | (6,670) |
Equity in income (loss) of unconsolidated affiliates and consolidated subsidiaries accounted for under the equity method | (622) | (1,041) | (1,878) |
Net income (loss) | (622) | (1,041) | (1,878) |
Net income (loss) attributable to CNH Industrial N.V. | $ (622) | $ (1,041) | $ (1,878) |
Supplemental Condensed Conso143
Supplemental Condensed Consolidating Financial Information - Condensed Statements of Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements Captions [Line Items] | |||
Comprehensive income (loss) | $ (150) | $ 120 | $ 341 |
Comprehensive income (loss) attributable to noncontrolling interests | 6 | (7) | (6) |
Comprehensive income (loss) attributable to CNH Industrial N.V. | (156) | 127 | 347 |
CNH Industrial N.V. [Member] | |||
Condensed Financial Statements Captions [Line Items] | |||
Comprehensive income (loss) | (156) | 126 | 347 |
Comprehensive income (loss) attributable to CNH Industrial N.V. | (156) | 126 | 347 |
Case New Holland Industrial Inc. [Member] | |||
Condensed Financial Statements Captions [Line Items] | |||
Comprehensive income (loss) | 324 | 190 | 769 |
Comprehensive income (loss) attributable to CNH Industrial N.V. | 324 | 190 | 769 |
Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements Captions [Line Items] | |||
Comprehensive income (loss) | 761 | 398 | 454 |
Comprehensive income (loss) attributable to CNH Industrial N.V. | 761 | 398 | 454 |
All Other Subsidiaries [Member] | |||
Condensed Financial Statements Captions [Line Items] | |||
Comprehensive income (loss) | (800) | (653) | (794) |
Comprehensive income (loss) attributable to noncontrolling interests | 6 | (7) | (6) |
Comprehensive income (loss) attributable to CNH Industrial N.V. | (806) | (646) | (788) |
Eliminations [Member] | |||
Condensed Financial Statements Captions [Line Items] | |||
Comprehensive income (loss) | (279) | 59 | (435) |
Comprehensive income (loss) attributable to CNH Industrial N.V. | $ (279) | $ 59 | $ (435) |
Supplemental Condensed Conso144
Supplemental Condensed Consolidating Financial Information - Condensed Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets: | ||||
Cash and cash equivalents | $ 5,017 | $ 5,384 | $ 5,163 | $ 5,567 |
Receivables | 19,285 | 19,581 | ||
Inventories, net | 5,609 | 5,690 | ||
Property, plant and equipment, net | 6,397 | 6,481 | ||
Equipment on operating leases | 1,907 | 1,835 | ||
Investments in unconsolidated subsidiaries and affiliates | 487 | 527 | ||
Goodwill and intangibles | 3,236 | 3,257 | ||
Other | 3,609 | 3,922 | ||
Total Assets | 45,547 | 46,677 | ||
Liabilities and Equity: | ||||
Debt | 25,276 | 26,301 | ||
Trade payables | 5,185 | 5,342 | ||
Other liabilities | 10,635 | 10,191 | ||
Total Equity | 4,451 | 4,843 | 4,961 | 4,955 |
Total Liabilities and Equity | 45,547 | 46,677 | ||
CNH Industrial N.V. [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 1 | 3 | 7 | 5 |
Deposits in subsidiaries’ cash management pools | 159 | 116 | ||
Receivables | 757 | 584 | ||
Inventories, net | 83 | 138 | ||
Property, plant and equipment, net | 74 | 80 | ||
Equipment on operating leases | 3 | |||
Investments in unconsolidated subsidiaries and affiliates | 244 | 251 | ||
Investments in consolidated subsidiaries | 9,537 | 9,166 | ||
Goodwill and intangibles | 11 | 12 | ||
Other | 232 | 176 | ||
Total Assets | 11,101 | 10,526 | ||
Liabilities and Equity: | ||||
Debt | 5,918 | 5,045 | ||
Trade payables | 168 | 221 | ||
Other liabilities | 571 | 458 | ||
Total Equity | 4,444 | 4,802 | ||
Total Liabilities and Equity | 11,101 | 10,526 | ||
Case New Holland Industrial Inc. [Member] | ||||
Assets: | ||||
Receivables | 856 | 986 | ||
Investments in consolidated subsidiaries | 7,666 | 7,191 | ||
Other | 137 | 104 | ||
Total Assets | 8,659 | 8,281 | ||
Liabilities and Equity: | ||||
Debt | 5,378 | 5,187 | ||
Trade payables | 112 | |||
Other liabilities | (56) | (79) | ||
Total Equity | 3,337 | 3,061 | ||
Total Liabilities and Equity | 8,659 | 8,281 | ||
Guarantor Subsidiaries [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 170 | 144 | 39 | 38 |
Deposits in subsidiaries’ cash management pools | 3,455 | 4,753 | ||
Receivables | 5,581 | 4,970 | ||
Inventories, net | 1,270 | 1,364 | ||
Property, plant and equipment, net | 997 | 1,108 | ||
Investments in consolidated subsidiaries | 1,641 | 1,607 | ||
Goodwill and intangibles | 2,768 | 2,786 | ||
Other | 1,225 | 1,292 | ||
Total Assets | 17,107 | 18,024 | ||
Liabilities and Equity: | ||||
Debt | 2,404 | 3,302 | ||
Trade payables | 1,777 | 2,083 | ||
Other liabilities | 3,241 | 3,365 | ||
Total Equity | 9,685 | 9,274 | ||
Total Liabilities and Equity | 17,107 | 18,024 | ||
All Other Subsidiaries [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 4,846 | 5,237 | $ 5,117 | $ 5,524 |
Receivables | 26,822 | 27,401 | ||
Inventories, net | 4,256 | 4,188 | ||
Property, plant and equipment, net | 5,326 | 5,293 | ||
Equipment on operating leases | 1,904 | 1,835 | ||
Investments in unconsolidated subsidiaries and affiliates | 243 | 276 | ||
Investments in consolidated subsidiaries | 890 | 794 | ||
Goodwill and intangibles | 457 | 459 | ||
Other | 2,283 | 2,555 | ||
Total Assets | 47,027 | 48,038 | ||
Liabilities and Equity: | ||||
Debt | 28,201 | 29,987 | ||
Trade payables | 4,978 | 4,954 | ||
Other liabilities | 7,130 | 6,633 | ||
Total Equity | 6,718 | 6,464 | ||
Total Liabilities and Equity | 47,027 | 48,038 | ||
Eliminations [Member] | ||||
Assets: | ||||
Deposits in subsidiaries’ cash management pools | (3,614) | (4,869) | ||
Receivables | (14,731) | (14,360) | ||
Investments in consolidated subsidiaries | (19,734) | (18,758) | ||
Other | (268) | (205) | ||
Total Assets | (38,347) | (38,192) | ||
Liabilities and Equity: | ||||
Debt | (16,625) | (17,220) | ||
Trade payables | (1,738) | (2,028) | ||
Other liabilities | (251) | (186) | ||
Total Equity | (19,733) | (18,758) | ||
Total Liabilities and Equity | $ (38,347) | $ (38,192) |
Supplemental Condensed Conso145
Supplemental Condensed Consolidating Financial Information - Condensed Statements of Cash Flow (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities: | |||
Net income (loss) | $ (249) | $ 248 | $ 708 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Depreciation and amortization | 1,261 | 1,146 | 1,140 |
Other, net | 1,096 | 1,392 | (1,167) |
Net cash provided by operating activities | 2,108 | 2,786 | 681 |
Investing activities: | |||
Expenditures for property, plant and equipment, equipment on operating lease, equipment sold under a buy-back commitment and intangible assets | (2,134) | (2,507) | (2,836) |
Net collections (additions) from retail receivables and related securitizations | 618 | 648 | 39 |
Other, net | 595 | 911 | 827 |
Net cash used in investing activities | (921) | (948) | (1,970) |
Financing Activities: | |||
Net increase (decrease) in indebtedness | (1,273) | (645) | 1,740 |
Dividends paid | (207) | (297) | (382) |
Other, net | (58) | 23 | 18 |
Net cash provided by (used in) financing activities | (1,538) | (919) | 1,376 |
Effect of foreign exchange rate changes on cash and cash equivalents | (16) | (698) | (491) |
Increase (decrease) in cash and cash equivalents | (367) | 221 | (404) |
Cash and cash equivalents, beginning of year | 5,384 | 5,163 | 5,567 |
Cash and cash equivalents, end of year | 5,017 | 5,384 | 5,163 |
CNH Industrial N.V. [Member] | |||
Operating Activities: | |||
Net income (loss) | (252) | 253 | 710 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Depreciation and amortization | 12 | 10 | 14 |
Other, net | 758 | 52 | (429) |
Net cash provided by operating activities | 518 | 315 | 295 |
Investing activities: | |||
Expenditures for property, plant and equipment, equipment on operating lease, equipment sold under a buy-back commitment and intangible assets | (13) | (25) | (26) |
(Deposits in) withdrawals from subsidiaries’ cash management pools | (48) | 92 | |
Other, net | (1,125) | (114) | 294 |
Net cash used in investing activities | (1,186) | (47) | 268 |
Financing Activities: | |||
Net increase (decrease) in indebtedness | 904 | (205) | |
Dividends paid | (201) | (291) | (360) |
Other, net | (32) | 26 | 18 |
Net cash provided by (used in) financing activities | 671 | (265) | (547) |
Effect of foreign exchange rate changes on cash and cash equivalents | (5) | (7) | (14) |
Increase (decrease) in cash and cash equivalents | (2) | (4) | 2 |
Cash and cash equivalents, beginning of year | 3 | 7 | 5 |
Cash and cash equivalents, end of year | 1 | 3 | 7 |
Case New Holland Industrial Inc. [Member] | |||
Operating Activities: | |||
Net income (loss) | 178 | 275 | 769 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Other, net | (310) | (495) | (736) |
Net cash provided by operating activities | (132) | (220) | 33 |
Investing activities: | |||
Other, net | 1,055 | 285 | (3) |
Net cash used in investing activities | 1,055 | 285 | (3) |
Financing Activities: | |||
Net increase (decrease) in indebtedness | (941) | (3) | 212 |
Dividends paid | (7) | (1) | (249) |
Other, net | 25 | (61) | 7 |
Net cash provided by (used in) financing activities | (923) | (65) | (30) |
Guarantor Subsidiaries [Member] | |||
Operating Activities: | |||
Net income (loss) | 662 | 634 | 1,130 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Depreciation and amortization | 206 | 207 | 212 |
Other, net | (284) | (283) | (574) |
Net cash provided by operating activities | 584 | 558 | 768 |
Investing activities: | |||
Expenditures for property, plant and equipment, equipment on operating lease, equipment sold under a buy-back commitment and intangible assets | (82) | (145) | (163) |
(Deposits in) withdrawals from subsidiaries’ cash management pools | 1,294 | (715) | (757) |
Other, net | (1,228) | 1,025 | (121) |
Net cash used in investing activities | (16) | 165 | (1,041) |
Financing Activities: | |||
Net increase (decrease) in indebtedness | (264) | 10 | (339) |
Dividends paid | (298) | (187) | (337) |
Other, net | 23 | (437) | 977 |
Net cash provided by (used in) financing activities | (539) | (614) | 301 |
Effect of foreign exchange rate changes on cash and cash equivalents | (3) | (4) | (27) |
Increase (decrease) in cash and cash equivalents | 26 | 105 | 1 |
Cash and cash equivalents, beginning of year | 144 | 39 | 38 |
Cash and cash equivalents, end of year | 170 | 144 | 39 |
All Other Subsidiaries [Member] | |||
Operating Activities: | |||
Net income (loss) | (215) | 127 | (23) |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Depreciation and amortization | 1,043 | 929 | 914 |
Other, net | 1,112 | 1,590 | (1,077) |
Net cash provided by operating activities | 1,940 | 2,646 | (186) |
Investing activities: | |||
Expenditures for property, plant and equipment, equipment on operating lease, equipment sold under a buy-back commitment and intangible assets | (2,039) | (2,337) | (2,647) |
Net collections (additions) from retail receivables and related securitizations | 617 | 648 | 39 |
Other, net | (379) | 663 | (259) |
Net cash used in investing activities | (1,801) | (1,026) | (2,867) |
Financing Activities: | |||
Net increase (decrease) in indebtedness | (972) | (652) | 3,035 |
Dividends paid | (503) | (329) | (1,386) |
Other, net | 953 | 168 | 1,447 |
Net cash provided by (used in) financing activities | (522) | (813) | 3,096 |
Effect of foreign exchange rate changes on cash and cash equivalents | (8) | (687) | (450) |
Increase (decrease) in cash and cash equivalents | (391) | 120 | (407) |
Cash and cash equivalents, beginning of year | 5,237 | 5,117 | 5,524 |
Cash and cash equivalents, end of year | 4,846 | 5,237 | 5,117 |
Eliminations [Member] | |||
Operating Activities: | |||
Net income (loss) | (622) | (1,041) | (1,878) |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Other, net | (180) | 528 | 1,649 |
Net cash provided by operating activities | (802) | (513) | (229) |
Investing activities: | |||
Net collections (additions) from retail receivables and related securitizations | 1 | ||
(Deposits in) withdrawals from subsidiaries’ cash management pools | (1,246) | 623 | 757 |
Other, net | 2,272 | (948) | 916 |
Net cash used in investing activities | 1,027 | (325) | 1,673 |
Financing Activities: | |||
Net increase (decrease) in indebtedness | (963) | ||
Dividends paid | 802 | 511 | 1,950 |
Other, net | (1,027) | 327 | (2,431) |
Net cash provided by (used in) financing activities | $ (225) | $ 838 | $ (1,444) |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) | Jan. 31, 2017 |
Kongskilde Industries [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Effective date of acquisition | Feb. 1, 2017 |