Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
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 | 1,363,592,506 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||
Net sales | $ 26,168 | $ 23,669 | $ 24,677 |
Finance and interest income | 1,193 | 1,203 | 1,235 |
Total Revenues | 27,361 | 24,872 | 25,912 |
Costs and Expenses | |||
Cost of goods sold | 21,621 | 19,539 | 20,357 |
Selling, general and administrative expenses | 2,330 | 2,262 | 2,317 |
Research and development expenses | 957 | 860 | 856 |
Restructuring expenses | 93 | 44 | 84 |
Interest expense | 942 | 1,028 | 1,106 |
Other, net | 738 | 1,148 | 625 |
Total Costs and Expenses | 26,681 | 24,881 | 25,345 |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | 680 | (9) | 567 |
Income tax (expense) | (455) | (298) | (360) |
Equity in income of unconsolidated subsidiaries and affiliates | 88 | 58 | 41 |
Net income (loss) | 313 | (249) | 248 |
Net income (loss) attributable to noncontrolling interests | 18 | 3 | (5) |
Net income (loss) attributable to CNH Industrial N.V. | $ 295 | $ (252) | $ 253 |
Earnings (loss) per share attributable to common shareholders | |||
Basic | $ 0.22 | $ (0.18) | $ 0.19 |
Diluted | 0.22 | (0.18) | 0.19 |
Cash dividends declared per common share | $ 0.118 | $ 0.148 | $ 0.214 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income (loss) | $ 313 | $ (249) | $ 248 |
Other comprehensive income (loss), net of tax | |||
Unrealized gain (loss) on cash flow hedges | 89 | (91) | 120 |
Changes in retirement plans’ funded status | 86 | (89) | 158 |
Foreign currency translation | (401) | 319 | (359) |
Share of other comprehensive income (loss) of entities using the equity method | 32 | (40) | (47) |
Other comprehensive income (loss), net of tax | (194) | 99 | (128) |
Comprehensive income (loss) | 119 | (150) | 120 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 16 | 6 | (7) |
Comprehensive income (loss) attributable to CNH Industrial N.V. | $ 103 | $ (156) | $ 127 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 5,430 | $ 5,017 |
Restricted cash | 770 | 837 |
Trade receivables, net | 496 | 623 |
Financing receivables, net | 19,842 | 18,662 |
Inventories, net | 6,280 | 5,609 |
Property, plant and equipment, net | 7,003 | 6,397 |
Investments in unconsolidated subsidiaries and affiliates | 561 | 487 |
Equipment under operating leases | 1,845 | 1,907 |
Goodwill | 2,472 | 2,449 |
Other intangible assets, net | 792 | 787 |
Deferred tax assets | 818 | 937 |
Derivative assets | 77 | 95 |
Other assets | 1,889 | 1,740 |
Total Assets | 48,275 | 45,547 |
LIABILITIES AND EQUITY | ||
Debt | 25,895 | 25,276 |
Trade payables | 6,060 | 5,185 |
Deferred tax liabilities | 97 | 84 |
Pension, postretirement and other postemployment benefits | 2,300 | 2,276 |
Derivative liabilities | 98 | 249 |
Other liabilities | 9,400 | 8,005 |
Total Liabilities | 43,850 | 41,075 |
Redeemable noncontrolling interest | 25 | 21 |
Common shares, € 0.01, par value; outstanding 1,363,592,506 common shares and 388,906,690 special voting shares in 2017; and outstanding 1,361,630,903 common shares and 412,268,203 special voting shares in 2016 | 25 | 25 |
Treasury stock, at cost - 807,690 shares in 2017 and 1,278,708 shares in 2016 | (10) | (9) |
Additional paid in capital | 4,412 | 4,408 |
Retained earnings | 1,921 | 1,787 |
Accumulated other comprehensive loss | (1,958) | (1,767) |
Noncontrolling interests | 10 | 7 |
Total Equity | 4,400 | 4,451 |
Total Liabilities and Equity | 48,275 | 45,547 |
Variable Interest Entity, Primary Beneficiary | ||
ASSETS | ||
Restricted cash | 734 | 776 |
Financing receivables, net | 10,404 | 10,263 |
Total Assets | 11,138 | 11,039 |
LIABILITIES AND EQUITY | ||
Debt | 10,464 | 10,418 |
Total Liabilities | $ 10,464 | $ 10,418 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - € / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Common shares, par value | € 0.01 | € 0.01 |
Special voting shares, shares outstanding | 388,906,690 | 412,268,203 |
Common shares, shares outstanding | 1,363,592,506 | 1,361,630,903 |
Treasury stock, shares | 807,690 | 1,278,708 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities: | |||
Net income (loss) | $ 313 | $ (249) | $ 248 |
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 | 725 | 716 | 699 |
Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments | 625 | 545 | 447 |
(Gain) loss from disposal of assets | 27 | 4 | (2) |
Loss on repurchase of Notes | 64 | 60 | |
Undistributed income (loss) of unconsolidated subsidiaries | (39) | 5 | 40 |
Other non-cash items | 295 | 195 | 331 |
Changes in operating assets and liabilities: | |||
Provisions | 233 | 46 | (48) |
Deferred income taxes | 122 | 65 | 119 |
Trade and financing receivables related to sales, net | (657) | (97) | 279 |
Inventories, net | (213) | 106 | 473 |
Trade payables | 344 | 96 | (161) |
Other assets and liabilities | 176 | 616 | 361 |
Net cash provided by operating activities | 2,015 | 2,108 | 2,786 |
Investing activities: | |||
Additions to retail receivables | (4,078) | (3,951) | (4,498) |
Collections of retail receivables | 4,384 | 4,569 | 5,146 |
Proceeds from the sale of assets, net of assets under operating leases and assets sold under buy-back commitments | 17 | 12 | 11 |
Proceeds from the sale of assets previously under operating leases and assets sold under buy-back commitments | 850 | 660 | 726 |
Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and assets sold under buy-back commitments | (492) | (503) | (656) |
Expenditures for assets under operating leases and assets sold under buy-back commitments | (1,743) | (1,631) | (1,851) |
Other | 130 | (77) | 174 |
Net cash used in investing activities | (932) | (921) | (948) |
Financing activities: | |||
Proceeds from long-term debt | 15,896 | 12,629 | 9,927 |
Payments of long-term debt | (16,802) | (13,770) | (10,668) |
Net increase (decrease) in other financial liabilities | 54 | (132) | 96 |
Dividends paid | (168) | (207) | (297) |
Other | (25) | (58) | 23 |
Net cash used in financing activities | (1,045) | (1,538) | (919) |
Effect of foreign exchange rate changes on cash and cash equivalents | 375 | (16) | (698) |
Increase (decrease) in cash and cash equivalents | 413 | (367) | 221 |
Cash and cash equivalents, beginning of year | 5,017 | 5,384 | 5,163 |
Cash and cash equivalents, end of year | $ 5,430 | $ 5,017 | $ 5,384 |
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, 2014 | $ 4,961 | $ 25 | $ 4,342 | $ 2,291 | $ (1,736) | $ 39 | ||
Beginning 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 | |||||||
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 | ||||||
Net income (loss), excluding redeemable non controlling interests | 303 | 295 | 8 | |||||
Net income (loss), redeemable non controlling interests | 10 | |||||||
Other comprehensive income (loss), net of tax | (194) | (191) | (3) | |||||
Dividend paid | (162) | (161) | (1) | (6) | ||||
Acquisition of treasury stock | (38) | (38) | ||||||
Common shares issued from treasury stock for share-based compensation | 29 | 37 | (8) | |||||
Share-based compensation expense | 19 | 19 | ||||||
Other changes | (8) | (7) | (1) | |||||
Ending balance at Dec. 31, 2017 | 4,400 | $ 25 | $ (10) | $ 4,412 | $ 1,921 | $ (1,958) | $ 10 | |
Ending balance at Dec. 31, 2017 | $ 25 | $ 25 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 | |
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 2016 or 2017. 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 estimated that all amounts are deemed uncollectable. 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 $165 million, $145 million, and $155 million for the years ended December 31, 2017, 2016, and 2015, 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 statement of operations and also include the cost of hedging instruments. For the years ended December 31, 2017, 2016 and 2015, the Company recorded a net loss of $78 million, a net gain of $50 million and a net loss of $581 million, respectively. Included in the net gain (loss) in 2017, 2016, and 2015 were the re-measurement charges of $5 million, $27 million, and $150 million, respectively, on the Venezuelan bolivar fuerte (“Bs.F., or “bolivars”) rate described below, as well as a charge of $21 million, $22 million and $40 million due to the devaluation of net monetary assets of Argentinian subsidiaries in 2017, 2016, and 2015. As described in Note 14: Financial Instruments, the Company uses hedging instruments to mitigate foreign currency risk. Net of gains realized on foreign currency hedging instruments, the Company recorded a loss of $140 million, $149 million and $289 million for the three years ended December 31, 2017, 2016 and 2015, respectively. Venezuela Currency Regulations, Re-measurement and Deconsolidation The functional currency of CNH Industrial’s Venezuelan operations is the U.S. dollar. At the end of each period, CNH Industrial re-measured its net monetary assets in Venezuela from the bolivar fuerte (“Bs.F.” or “bolivars”) to the U.S. dollar at the rate it believed was 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. Additionally, the government expanded the types of transactions that may be subject to the weekly auction mechanism under SICAD I. Also in 2014, the Venezuelan government announced that another floating rate exchange system (SICAD II) would be initiated. 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 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 to re-measure the net monetary assets of CNH Industrial in Venezuela, except for those cases in which CNH Industrial 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 re-measurement 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 non-recurring re-measurement and impairment charge for a total of $34 million in Financial income/(expenses). During 2017, the economic and socio-political environment in Venezuela further deteriorated, significantly impacting the Company’s ability to make key operating decisions. In the fourth quarter of 2017, the further deterioration of conditions in the country and the persisting restrictive exchange control regulations, which prevent any payments out of the country, resulted in an other-than-temporary lack of exchangeability. Therefore, effective December 31, 2017, CNH Industrial determined that it no longer had the ability to control its Venezuelan operations. As a result, the Company recorded a non-cash pre- and after-tax charge of $92 million to impair and deconsolidate its operations in Venezuela and will begin reporting operating results under the cost method. The pretax charge includes the write-off of the Company’s investment in Venezuela, including properties and all inter-company balances. The charge also includes the reversal through income statement of foreign currency translation losses previously included in Accumulated other comprehensive income. CNH Industrial will no longer include the results of its Venezuelan operations in its Consolidated Financial Statements. If cash were to be received from the Venezuelan legal entities in future periods, income will be recognized. The Company expects the current economic conditions in Venezuela to continue and does not anticipate any payments to be made in the foreseeable future. CNH Industrial’s results of operations in Venezuela for the year ended December 31, 2017 and 2016 were immaterial as a percentage of both CNH Industrial’s net revenues and operating profit. Subsequent to the deconsolidation under the voting interest consolidation model, the Company determined that the Venezuelan subsidiaries are considered to be variable interest entities. As the Company does not have the power to direct the activities that most significantly affect the Venezuelan subsidiaries' economic performance, the Company is not the primary beneficiary of the variable interest entities and therefore would not consolidate the entities. Due to the lack of ability to settle U.S. dollar obligations, the Company does not intend to sell into, nor purchase inventory from, the Venezuela entities at this time. Additionally, the Company has no remaining financial commitments to the Venezuelan subsidiaries and therefore believes the exposure to future losses is not material. 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 $896 million, $930 million, and $945 million for the years ended December 31, 2017, 2016, and 2015, respectively. For 2017 and 2016, the amount includes a charge of $64 million and $60 million in connection with the Company’s accelerated debt redemption strategy. CNH Industrial paid taxes of $224 million, $104 million, and $345 million in 2017, 2016, and 2015, 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. 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. Residual values are estimated at inception of the lease and are reviewed quarterly. 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 2017 and 2016, 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 Share-based Compensation In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Inventory In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment Not Yet Adopted Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC 606) (“ASU 2014-09”) The Company will adopt the new standard effective January 1, 2018 using the full retrospective approach. The preliminary impact of adopting the new standard on the net equity at January 1, 2016 (date of first time retrospective adoption of the new standard) is a reduction of approximately $0.1 billion and primarily relates to certain services (mainly maintenance and repair contracts, as well as extended warranty contracts) and certain other incentives provided by CNH Indust |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Receivables | Note 3: Receivables Trade Receivables, net As of December 31, 2017 and 2016, the Company had trade receivables of $496 million and $623 million, respectively. Trade receivables are shown net of allowances for doubtful accounts of $109 million and $104 million at December 31, 2017 and 2016 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, 2017 and 2016 is as follows: 2017 2016 (in millions) Retail $ 9,725 $ 9,949 Wholesale 10,048 8,583 Other 69 130 Total $ 19,842 $ 18,662 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 2017, 2016 or 2015 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, 2017 are as follows: Amount (in millions) 2018 $ 13,121 2019 2,523 2020 1,815 2021 1,273 2022 878 2023 and thereafter 232 Total $ 19,842 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, 2017 and 2016 is as follows (in millions): 2017 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 $ 26 $ 9 $ — $ 35 $ 6,671 $ 6,706 $ 25 $ 6,731 EMEA 3 4 4 11 261 272 — 272 LATAM 8 — — 8 1,851 1,859 40 1,899 APAC — — — — 823 823 — 823 Total Retail $ 37 $ 13 $ 4 $ 54 $ 9,606 $ 9,660 $ 65 $ 9,725 Wholesale NAFTA $ — $ — $ — $ — $ 3,692 $ 3,692 $ 41 $ 3,733 EMEA 23 12 4 39 5,061 5,100 9 5,109 LATAM — — — — 619 619 — 619 APAC 4 — — 4 583 587 — 587 Total Wholesale $ 27 $ 12 $ 4 $ 43 $ 9,955 $ 9,998 $ 50 $ 10,048 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 Allowance for credit losses activity for the three years ended December 31, 2017, 2016 and 2015 is as follows (in millions): December 31, 2017 Retail Wholesale Other Total Opening balance $ 374 $ 200 $ — $ 574 Provision 72 11 — 83 Charge-offs, net of recoveries (103 ) (15 ) — (118 ) Foreign currency translation and other 40 4 — 44 Ending balance 383 200 — 583 Ending balance: Individually evaluated for impairment 212 164 — 376 Ending balance: Collectively evaluated for impairment 171 36 — 207 Receivables: Ending balance 9,725 10,048 69 19,842 Ending balance: Individually evaluated for impairment 347 540 — 887 Ending balance: Collectively evaluated for impairment $ 9,378 $ 9,508 $ 69 $ 18,955 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 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, have provided bankruptcy notification, or require significant collection efforts. Impaired receivables are generally classified as non-performing. 2017 2016 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 $ — $ — $ — $ — $ — $ — $ — $ — EMEA $ — $ — $ — $ — $ 90 $ 90 $ — $ 74 LATAM $ — $ — $ — $ — $ — $ — $ — $ — APAC $ — $ — $ — $ — $ — $ — $ — $ — Wholesale NAFTA $ — $ — $ — $ — $ — $ — $ — $ — EMEA $ — $ — $ — $ — $ — $ — $ — $ — LATAM $ — $ — $ — $ — $ — $ — $ — $ — APAC $ — $ — $ — $ — $ — $ — $ — $ — With an allowance recorded Retail NAFTA $ 39 $ 37 $ 18 $ 41 $ 31 $ 30 $ 18 $ 31 EMEA $ 260 $ 260 $ 170 $ 277 $ 171 $ 171 $ 143 $ 195 LATAM $ 45 $ 45 $ 22 $ 32 $ 23 $ 23 $ 17 $ 23 APAC $ 3 $ 3 $ 2 $ 2 $ 2 $ 2 $ 1 $ 2 Wholesale NAFTA $ 44 $ 44 $ 3 $ 49 $ 44 $ 43 $ 4 $ 46 EMEA $ 457 $ 457 $ 134 $ 443 $ 420 $ 420 $ 131 $ 378 LATAM $ 30 $ 17 $ 21 $ 28 $ 22 $ 15 $ 12 $ 18 APAC $ 9 $ 9 $ 6 $ 4 $ 5 $ 5 $ 2 $ 18 Total Retail $ 347 $ 345 $ 212 $ 352 $ 317 $ 316 $ 179 $ 325 Wholesale $ 540 $ 527 $ 164 $ 524 $ 491 $ 483 $ 149 $ 460 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, 2017, the Company had approximately 272 retail and finance lease contracts classified as TDRs where a court has determined the concession in NAFTA. The pre-modification value was $9 million and the post-modification value was $8 million. Additionally, the Company had 423 accounts with a balance of $24 million undergoing bankruptcy proceedings where a concession has not yet been determined in NAFTA. For the year ended December 31, 2016, the Company had approximately 238 retail and finance lease contracts classified as TDRs where a court has determined the concession in NAFTA. The pre-modification value was $4 million and the post-modification value was $4 million. Additionally, the Company had 420 accounts with a balance of $24 million undergoing bankruptcy proceedings where a concession has not yet been determined in NAFTA. 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 contracts that were modified in a TDR during the twelve months ended December 31, 2017 and 2016. For the years ended December 31, 2017 and 2016, the Company had approximately $11 million and $23 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, 2017 and 2016. For the years ended December 31, 2017 and 2016, the Company had approximately $19 million and $19 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, 2017 and 2016. As of December 31, 2017 and 2016, the Company’s wholesale TDRs were immaterial. Transfers of Financial Assets The Company transfers a number of its financing receivables to 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 return those securities 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, 2017 and 2016, the carrying amount of such restricted assets included in financing receivables above are the following (in millions): Restricted Receivables 2017 2016 Retail note and finance lease receivables $ 6,833 $ 7,140 Wholesale receivables 7,189 6,445 Total $ 14,022 $ 13,585 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 consist of the following: 2017 2016 (in millions) Raw materials $ 1,278 $ 1,185 Work-in-process 601 757 Finished goods 4,401 3,667 Total Inventories $ 6,280 $ 5,609 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 is as follows: 2017 2016 (in millions) Land and industrial buildings $ 3,472 $ 3,075 Plant, machinery and equipment 8,659 7,959 Assets sold with buy-back commitment 3,820 3,021 Construction in progress 101 131 Other 834 782 Gross property, plant and equipment 16,886 14,968 Accumulated depreciation (9,883 ) (8,571 ) Net property, plant and equipment $ 7,003 $ 6,397 A summary of property, plant and equipment recorded under capital leases¹ as of December 31, 2017, and 2016 is as follows: 2017 2016 (in millions) Gross capital leases ² $ 100 $ 169 Accumulated depreciation (36 ) (53 ) Net capital leases $ 64 $ 116 ( 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 $929 million, $884 million, and $824 million for the years ended December 31, 2017, 2016, and 2015, respectively. Excluding depreciation for assets sold with buy-back commitments, depreciation expenses totaled $610 million, $605 million, and $592 million for the years ended December 31, 2017, 2016, and 2015, respectively. Commercial Vehicles recognized an impairment loss on new and used vehicles of $86 million, $56 million and $29 million on assets sold with a buy-back commitment for the years ended December 31, 2017, 2016, and 2015, respectively. The losses are recognized in “Cost of goods sold.” The Company had contractual commitments of $101 million and $119 million for the acquisition of property, plant and equipment at December 31, 2017 and 2016, respectively. |
Investments in Unconsolidated S
Investments in Unconsolidated Subsidiaries and Affiliates | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 is as follows: 2017 2016 (in millions) Equity method $ 555 $ 479 Cost method 6 8 Total $ 561 $ 487 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, 2017 2016 2015 (in millions) Net revenue $ 3,273 $ 3,670 $ 3,911 Income before taxes $ 265 $ 99 $ 127 Net income $ 198 $ 48 $ 68 As of December 31, 2017 2016 (in millions) Total Assets $ 7,441 $ 6,919 Total Liabilities $ 6,216 $ 5,758 Total Equity $ 1,225 $ 1,161 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, 2017 | |
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, 2017 and 2016 is as follows: 2017 2016 (in millions) Equipment on operating leases $ 2,240 $ 2,253 Accumulated depreciation (395 ) (346 ) Net equipment on operating leases $ 1,845 $ 1,907 Depreciation expense on equipment on operating leases is recorded in “Other, net” and amounted to $305 million, $267 million and $215 million for the years ended December 31, 2017, 2016, and 2015, respectively. Lease payments owed to CNH Industrial for equipment under non-cancelable operating leases as of December 31, 2017, are as follows: Amount (in millions) 2018 $ 175 2019 109 2020 59 2021 29 2022 7 Beyond 5 years 1 Total $ 380 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 are as follows: Agricultural Equipment Construction Equipment Commercial Vehicles Powertrain Financial Services Total (in millions) Balance at January 1, 2016 $ 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 Impact of foreign exchange and other 6 5 9 — 3 23 Balance at December 31, 2017 $ 1,654 $ 593 $ 64 $ 5 $ 156 $ 2,472 Goodwill and other indefinite-lived intangible assets are tested for impairment annually or more frequently if a triggering event occurs. In 2017 and 2016, 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. Under the goodwill impairment test, CNH Industrial’s estimate of the fair value of the reporting unit is compared with its carrying value. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. CNH Industrial has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The vast majority of goodwill, representing approximately 97% of the total, as of December 31, 2017, 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, 2017, the estimated fair values of all reporting units with goodwill exceeded the carrying value by more than 30%. Accordingly, management determined that none of the reporting units were at higher risk for impairment at December 31, 2017. 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, 2017, and 2016, the Company’s other intangible assets and related accumulated amortization consisted of the following: 2017 2016 Weighted Avg. Life Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in millions) Other intangible assets subject to amortization: Dealer networks 15 $ 328 $ 199 $ 129 $ 316 $ 168 $ 148 Patents, concessions and licenses and other 5-25 1,834 1,444 390 1,649 1,284 365 2,162 1,643 519 1,965 1,452 513 Other intangible assets not subject to amortization: Trademarks 273 — 273 274 — 274 Total Other intangible assets $ 2,435 $ 1,643 $ 792 $ 2,239 $ 1,452 $ 787 CNH Industrial recorded amortization expense of 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: $109 million in 2018; $91 million in 2019; $64 million in 2020, $54 million in 2021; and $44 million in 2022. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017, Group’s available committed unsecured facilities expiring after twelve months amounted to $3.2 billion ($2.9 billion at December 31, 2016). In 2016, we 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 ($2.1 billion at the year-end 2017 exchange rate) facility is guaranteed by the parent company with cross-guarantees from each of the borrowers (i.e., CNH Industrial Finance S.p.A., CNH Industrial Finance Europe S.A. and CNH Industrial Finance North America Inc.), envisages typical provisions for contracts of this type and size, such as: financial covenants (Net debt/EBITDA ratio relating to Industrial Activities), other covenants mainly relating to Industrial Activities including negative pledge, a status (or pari passu) covenant, restrictions on the incurrence of indebtedness by certain subsidiaries, customary events of default (some of which are subject to minimum thresholds and customary mitigants) including cross-default, failure to pay amounts due or to comply with certain provisions under the loan agreement, the occurrence of certain bankruptcy-related events and mandatory prepayment obligations upon a change in control of CNH Industrial or the borrowers. The failure to comply with these provisions, in certain cases if not suitably remedied, can lead to the requirement to make early repayment of the outstanding advances. At December 31, 2017, the Company was in compliance with all covenants in the revolving credit facility. At December 31, 2017, Financial Services’ committed asset-backed facilities expiring after twelve months amounted to $3.5 billion ($3.2 billion at December 31, 2016), of which $2.3 billion at December 31, 2017 ($2.5 billion at December 31, 2016) were utilized. Debt A summary of issued bonds outstanding as of December 31, 2017, is as follows: Currency Face value of outstanding bonds (in millions) Coupon Maturity Outstanding amount ($ millions) Industrial Activities Euro Medium Term Notes: CNH Industrial Finance Europe S.A. (1) (2) EUR 853 6.250 % March 9, 2018 $ 1,023 CNH Industrial Finance Europe S.A. (1) (3) EUR 547 2.750 % March 18, 2019 656 CNH Industrial Finance Europe S.A. (1) EUR 700 2.875 % September 27, 2021 839 CNH Industrial Finance Europe S.A. (1) EUR 75 1.625 % March 29, 2022 90 CNH Industrial Finance Europe S.A. (1) EUR 500 1.375 % May 23, 2022 600 CNH Industrial Finance Europe S.A. (1) EUR 500 2.875 % May 17, 2023 600 CNH Industrial Finance Europe S.A. (1) EUR 650 1.750 % September 12, 2025 779 CNH Industrial Finance Europe S.A. (1) EUR 100 3.500 % November 12, 2025 120 CNH Industrial Finance Europe S.A. (1) EUR 50 3.875 % April 21, 2028 60 Other Bonds: CNH Industrial N.V. (4) USD 600 4.500 % August 15, 2023 600 CNH Industrial N.V. (4) USD 500 3.850 % November 15, 2027 500 Hedging effects, bond premium/discount, and unamortized issuance costs (57 ) Total Industrial Activities $ 5,810 Financial Services CNH Industrial Capital LLC USD 600 3.625 % April 15, 2018 $ 600 CNH Industrial Capital LLC USD 500 3.375 % July 15, 2019 500 CNH Industrial Capital LLC USD 600 4.375 % November 6, 2020 600 CNH Industrial Capital LLC USD 500 4.875 % April 1, 2021 500 CNH Industrial Capital LLC USD 400 3.875 % October 15, 2021 400 CNH Industrial Capital LLC USD 500 4.375 % April 05, 2022 500 Hedging effects, bond premium/discount, and unamortized issuance costs (25 ) Total Financial Services $ 3,075 (1) Bond listed on the Irish Stock Exchange. (2) In September 2017, CNH Industrial Finance Europe S.A. Repurchased € 347 million (3) In September 2017, CNH Industrial Finance Europe S.A. Repurchased € 453 million (4) Bond listed on the New York Stock Exchange . A summary of total debt as of December 31, 2017 and 2016, is as follows: 2017 2016 Industrial Activities Financial Services Total Industrial Activities Financial Services Total (in millions) Total Bonds $ 5,810 $ 3,075 $ 8,885 $ 4,944 $ 3,669 $ 8,613 Asset-backed debt 3 12,025 12,028 8 11,776 11,784 Other debt 648 4,334 4,982 1,742 3,137 4,879 Intersegment debt 935 1,641 — 997 1,479 — Total Debt $ 7,396 $ 21,075 $ 25,895 $ 7,691 $ 20,061 $ 25,276 The weighted-average interest rate on consolidated debt at December 31, 2017, and 2016 was 3.1% and 3.2%, respectively. 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 Euro 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 Euro Medium Term Note Programme unconditionally and irrevocably guaranteed by CNH Industrial N.V. 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 were fully and unconditionally guaranteed by CNH Industrial N.V. (as successor to CNH Global N.V.) and certain of its direct and indirect subsidiaries. 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 June 2017, Case New Holland Industrial Inc. redeemed all of the outstanding $636 million aggregate principal amount of the 7.875% Senior Notes and incurred a total charge of $17 million. 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 December 2017, CNH Industrial Capital LLC completed the early redemption of all of the outstanding $600 million in principal amount of the 3.875% Notes due 2018. 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 an annual fixed rate of 4.500% (the “4.500% Notes”) due August 2023. 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. In March 2017, CNH Industrial Finance Europe S.A. issued as a private placement €75 million of notes at an annual fixed rate of 1.625% due in 2022 (the “1.625% CIFE Notes”) at an issue price of 99.407 percent of their principal amount. The 1.625% CIFE Notes were issued under the €10 billion Global Medium Term Note Programme (subsequently converted into the Euro Medium Term Note Programme) unconditionally and irrevocably guaranteed by CNH Industrial N.V. In April 2017, CNH Industrial Capital LLC issued at par $500 million of notes at an annual fixed rate of 4.375% due in 2022. In May 2017, CNH Industrial Finance Europe S.A. issued €500 million of notes at an annual fixed rate of 1.375% due in 2022 (the “1.375% CIFE Notes”) at an issue price of 99.335 percent of their principal amount. The 1.375% CIFE Notes were issued under the €10 billion Euro Medium Term Note Programme unconditionally and irrevocably guaranteed by CNH Industrial N.V. On June 15, 2017, Standard and Poor’s (“S&P”) upgraded the long-term corporate rating of CNH Industrial N.V. and CNH Industrial Capital LLC to investment grade at “BBB-". Following the upgrade by S&P, the notes issued under the Euro Medium Term Notes Programme (and the notes issued under its predecessor, the Global Medium Term Notes Programme) benefited from Eurosystem eligibility, the financial covenant contained in the €1.75 billion Revolving Credit Facility, which required Industrial Activities to maintain EBITDA/Net interest ratio, was no longer applicable, and the financial covenants contained in two revolving credit facilities of CNH Industrial Capital LLC, which required maintenance of an EBITDA coverage ratio, were no longer applicable. In September 2017, CNH Industrial Finance Europe S.A. issued €650 million of notes at an annual fixed rate of 1.750% due in 2025 (the “1.750% CIFE Notes”) at an issue price of 99.248 percent of their principal amount. The 1.750% CIFE Notes were issued under the €10 billion Euro Medium Term Note Programme unconditionally and irrevocably guaranteed by CNH Industrial N.V. In September 2017, CNH Industrial Finance Europe S.A. repurchased a total of €800 million in principal amount of its 6.250% Notes due 2018 and its 2.750% Notes due 2019. On October 24, 2017, Fitch Ratings assigned to CNH Industrial N.V. and CNH Industrial Capital LLC new investment grade long-term issuer default ratings of “BBB-”. This rating action and the S&P upgrade on June 15, 2017 made CNH Industrial’s securities eligible for the main investment grade indices in the U.S. market, which CNH Industrial believes has improved its access to funding at better rates. In November 2017, CNH Industrial N.V. issued $500 million of notes at an annual fixed rate of 3.850% due 2027 with an issue price of 99.384%. In December 2017, CNH Industrial Capital LLC established a new commercial paper program to issue short-term, unsecured, unsubordinated commercial paper notes on a private placement basis. As of December 31, 2017 the aggregate principal amount of the notes outstanding was $115 million. The bonds issued by the Group may contain commitments of the issuer, and in certain cases commitments of CNH Industrial N.V. in its capacity as guarantor, which are typical of international practice for bond issues of this type such as, in particular, negative pledge (in relation to quoted indebtedness), a status (or pari passu) covenant and cross default clauses. A breach of these commitments can lead to the early repayment of the applicable notes. The bonds guaranteed by CNH Industrial N.V. under the Euro Medium Term Note Programme (and its predecessor the Global Medium Term Notes Programme), as well as the notes issued by CNH Industrial N.V., contain clauses which could lead to early repayment if there is a change of control of CNH Industrial N.V. leading to a rating downgrading of CNH Industrial N.V. Other debt consists primarily of borrowings from banks which are at various terms and rates. Included in Other debt of Financial Services is approximately $1.6 billion and $1.4 billion at December 31, 2017 and 2016, 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, 2017, for 2018 and thereafter is as follows: Industrial Activities Financial Services Consolidated (in millions) 2018 $ 1,263 $ 10,230 $ 11,493 2019 888 3,244 4,132 2020 41 2,986 3,027 2021 861 2,007 2,868 2022 710 756 1,466 2023 and thereafter 2,698 211 2,909 Intersegment 935 1,641 — Total $ 7,396 $ 21,075 $ 25,895 Please refer to “Note 14: Financial Instruments” for fair value information on debt. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10: Income Taxes CNH Industrial N.V. and its subsidiaries have substantial worldwide operations. CNH Industrial N.V.’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, 2017 of $455 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, 2017, 2016, and 2015 are as follows: 2017 2016 2015 (in millions) Parent country source $ (212 ) $ (73 ) $ 11 Foreign sources 892 64 556 Income (loss) before taxes and equity in income of unconsolidated subsidiaries and affiliates $ 680 $ (9 ) $ 567 The provision for income taxes for the years ended December 31, 2017, 2016 and 2015 consisted of the following: 2017 2016 2015 (in millions) Current income taxes $ 354 $ 229 $ 263 Deferred income taxes 101 69 97 Total income tax provision $ 455 $ 298 $ 360 CNH Industrial N.V. is incorporated in the Netherlands, but 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 20% in 2015 and 2016 and 19.25% in 2017. A reconciliation of CNH Industrial’s income tax expense for the years ended December 31, 2017, 2016 and 2015 is as follows: 2017 2016 2015 (in millions) Tax provision at the parent statutory rate $ 131 $ (2 ) $ 115 Foreign income taxed at different rates 95 (11 ) 56 Change in valuation allowance 163 133 111 Italian IRAP taxes 17 22 6 Tax contingencies 18 (2 ) 26 Tax credits and incentives (48 ) (88 ) (43 ) Venezuela remeasurement, and impairment and deconsolidation charges 18 16 51 Non-deductible EC Settlement — 160 — Change in tax rate or law 39 14 23 Withholding taxes 6 11 8 Other 16 45 7 Total income tax provision $ 455 $ 298 $ 360 During the last quarter of 2017, new tax legislation was enacted in several jurisdictions, including the United States and the United Kingdom. In connection with these legislative changes, the Company booked $39 million tax expense related to the US mandatory repatriation tax and the write-down of deferred tax assets in the relevant jurisdictions. The Company has recorded provisional amounts related to the U.S. Tax Act. The ultimate impact may differ from these provisional amounts, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the U.S. Tax Act. The accounting is expected to be completed by December 31, 2018. In addition, the Company has established an $84 million valuation allowance against deferred tax assets in its U.K. operations as a result of new tax legislation in the U.K. The 2016 tax expense 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, 2017, undistributed earnings in certain subsidiaries outside the United Kingdom totaled approximately $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 $3 billion undistributed earnings is approximately $42 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, 2017. 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, 2017 and 2016 are as follows: 2017 2016 (in millions) Deferred tax assets: Inventories $ 108 $ 96 Warranty and campaigns 202 183 Allowance for credit losses 184 180 Marketing and sales incentive programs 259 326 Other risk and future charges reserve 312 216 Pension, postretirement and postemployment benefits 408 553 Measurement of derivative financial instruments 1 36 Research and development costs 458 423 Other reserves 339 359 Tax credits and loss carry forwards 684 767 Less: Valuation allowances (1,744 ) (1,490 ) Total deferred tax assets $ 1,211 $ 1,649 Deferred tax liabilities: Property, plant and equipment $ 295 $ 481 Other 195 315 Total deferred tax liabilities 490 796 Net deferred tax assets $ 721 $ 853 Net deferred tax assets are reflected in the accompanying consolidated balance sheets as of December 31, 2017 and 2016 as follows: 2017 2016 (in millions) Deferred tax assets $ 818 $ 937 Deferred tax liabilities (97 ) (84 ) Net deferred tax assets $ 721 $ 853 Valuation Allowances As of December 31, 2017, the Company has valuation allowances of $1,744 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. These tax losses expire as follows: $146 million in 2018; $204 million in 2019; $41 million in 2020; $96 million in 2021; $494 million in 2022 and beyond. CNH Industrial also has tax loss carry forwards of approximately $3 billion with indefinite lives. CNH Industrial has tax credit carry forwards. The years in which these tax credits expire are as follows: $2 million in 2019; and $37 million in 2022 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 2002 to 2017. 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: 2017 2016 (in millions) Balance, beginning of year $ 318 $ 325 Additions based on tax positions related to the current year 30 30 Additions for tax positions of prior years 16 70 Reductions for tax positions of prior years (21 ) (65 ) Reductions for tax positions as a result of lapse of statute (8 ) (10 ) Settlements (15 ) (32 ) Balance, end of year $ 320 $ 318 As of December 31, 2017, there are $154 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, 2017, 2016 and 2015, the Company recognized expense of approximately $(1) million, $7 million and $2 million for income tax related interest and penalties, respectively. The Company had approximately $11 million, $12 million and $16 million of income tax related interest and penalties accrued at December 31, 2017, 2016 and 2015, respectively. At December 31, 2017, 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, 2017 | |
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, 2017, 2016, and 2015, CNH Industrial recorded expense of $189 million, $181 million, and $185 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, 2017 and 2016: Pension Healthcare (1) Other (1) 2017 2016 2017 2016 2017 2016 (in millions) Change in benefit obligations: Beginning benefit obligation $ 3,188 $ 3,281 $ 1,105 $ 1,157 $ 418 $ 423 Service cost 30 30 6 7 15 13 Interest cost 74 87 36 39 3 4 Plan participants’ contributions 3 3 7 8 — — Actuarial loss (gain) 44 285 29 (37 ) 13 22 Gross benefits paid (179 ) (221 ) (68 ) (71 ) (37 ) (31 ) Plan amendments — (6 ) — — — — Currency translation adjustments and other 205 (271 ) 5 2 58 (13 ) Ending benefit obligation $ 3,365 $ 3,188 $ 1,120 $ 1,105 $ 470 $ 418 Change in the fair value of plan assets: Beginning plan assets $ 2,328 $ 2,480 $ 111 $ 105 $ — $ — Actual return on plan assets 196 194 19 8 — — Employer contributions 34 35 56 — — — Plan participants’ contributions 3 3 — — — — Gross benefits paid (150 ) (193 ) (2 ) (2 ) — — Currency translation adjustments and other 106 (191 ) — — — — Ending plan assets 2,517 2,328 184 111 — — Funded status: $ (848 ) $ (860 ) $ (936 ) $ (994 ) $ (470 ) $ (418 ) (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, 2017 and 2016: U.S. U.K Germany (1) Other Countries (1) 2017 2016 2017 2016 2017 2016 2017 2016 (in millions) Change in benefit obligations: Beginning benefit obligation $ 1,159 $ 1,208 $ 1,315 $ 1,332 $ 419 $ 438 $ 295 $ 303 Service cost 7 8 7 6 4 3 12 13 Interest cost 37 39 29 37 4 6 4 5 Plan participants’ contributions — — — — — — 3 3 Actuarial loss (gain) 53 27 (15 ) 247 (2 ) 12 8 (1 ) Gross benefits paid (83 ) (120 ) (53 ) (57 ) (28 ) (27 ) (15 ) (17 ) Plan amendments — — — — — — — (6 ) Currency translation adjustments and other — (3 ) 126 (250 ) 56 (13 ) 23 (5 ) Ending benefit obligation $ 1,173 $ 1,159 $ 1,409 $ 1,315 $ 453 $ 419 $ 330 295 Change in the fair value of plan assets: Beginning plan assets $ 1,139 $ 1,182 $ 918 $ 1,028 $ 5 $ 5 $ 266 265 Actual return on plan assets 153 80 29 106 — — 14 8 Employer contributions — — 23 25 — — 11 10 Plan participants’ contributions — — — — — — 3 3 Gross benefits paid (82 ) (120 ) (53 ) (57 ) — — (15 ) (16 ) Currency translation adjustments and other (3 ) (3 ) 88 (184 ) — — 21 (4 ) Ending plan assets $ 1,207 $ 1,139 $ 1,005 $ 918 $ 5 $ 5 $ 300 $ 266 Funded status: $ 34 $ (20 ) $ (404 ) $ (397 ) $ (448 ) $ (414 ) $ (30 ) $ (29 ) (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, 2017 and 2016 consist of: Pension Healthcare Other 2017 2016 2017 2016 2017 2016 (in millions) Other assets $ 46 $ 4 $ — $ — $ — $ — Pension, postretirement and other postemployment benefits (894 ) (864 ) (936 ) (994 ) (470 ) (418 ) Net liability recognized at end of year $ (848 ) $ (860 ) $ (936 ) $ (994 ) $ (470 ) $ (418 ) Pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 2017 consist of: Pension Healthcare Other (in millions) Unrecognized actuarial losses $ 943 $ 154 $ 96 Unrecognized prior service credit (9 ) (4 ) (4 ) Accumulated other comprehensive loss $ 934 $ 150 $ 92 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 2017 2016 (in millions) Accumulated benefit obligation $ 1,968 $ 3,011 Fair value of plan assets $ 1,146 $ 2,183 The following table summarizes CNH Industrial’s pension and other postemployment plans with projected benefit obligations in excess of plan assets: Pension Healthcare Other 2017 2016 2017 2016 2017 2016 (in millions) Projected benefit obligation $ 2,130 $ 3,119 $ 1,119 $ 1,105 $ 470 $ 418 Fair value of plan assets $ 1,236 $ 2,254 $ 184 $ 111 $ — $ — The total accumulated benefit obligation for pension was $3,285 million and $3,150 million as of December 31, 2017 and 2016, 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, 2017, 2016, and 2015: Pension Healthcare Other 2017 2016 2015 2017 2016 2015 2017 2016 2015 (in millions) Service cost $ 30 $ 30 $ 30 $ 6 $ 7 $ 8 $ 15 $ 13 $ 15 Interest cost 74 87 112 36 39 48 3 4 5 Expected return on assets (111 ) (113 ) (140 ) (7 ) (6 ) (7 ) — — — Amortization of: Prior service cost (credit) (1 ) — — (2 ) (4 ) (10 ) 1 (1 ) 1 Actuarial loss (gain) 90 76 83 6 15 26 5 8 (7 ) Settlement loss and other 4 — — — — — 2 1 — Net periodic benefit cost $ 86 $ 80 $ 85 $ 39 $ 51 $ 65 $ 26 $ 25 $ 14 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 2017 consist of: Pension Healthcare Other (in millions) Net periodic benefit cost $ 86 $ 39 $ 26 Benefit adjustments included in other comprehensive (income) loss: Net actuarial losses (gains) (42 ) 17 11 Amortization of actuarial losses (91 ) (5 ) (5 ) Amortization of prior service (cost) credit 1 2 (1 ) Currency translation adjustments and other 61 — 11 Total recognized in other comprehensive (income) loss (71 ) 14 16 Total recognized in comprehensive loss $ 15 $ 53 $ 42 Pre-tax amounts expected to be amortized in 2018 from accumulated other comprehensive loss consist of: Pension Healthcare Other (in millions) Actuarial losses $ 75 $ 7 $ 1 Prior service cost (credit) (1 ) (2 ) 1 Total $ 74 $ 5 $ 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, 2017 and 2016, and the net periodic benefit cost of CNH Industrial’s defined benefit plans for the years ended December 31, 2017, 2016, and 2015: Pension plans Healthcare plans Other (in %) 2017 2016 2015 2017 2016 2015 2017 2016 2015 Assumptions used to determine funded status at December 31 Weighted-average discount rate 2.57 2.82 3.49 3.53 3.97 4.27 1.47 1.54 2.06 Weighted-average rate of compensation increase 3.01 2.95 2.98 n/a 2.50 2.50 1.11 1.19 1.33 Weighted-average, initial healthcare cost trend rate n/a n/a n/a 6.46 6.72 6.98 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 2.15 2.91 3.22 3.96 4.21 3.96 1.67 2.18 1.81 Weighted-average discount rates - interest cost 2.33 2.82 3.22 3.39 3.49 3.96 1.40 1.89 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 long-term rates of return on plan assets 4.74 5.00 5.38 6.25 6.25 6.75 n/a n/a n/a 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 ( * ) 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 2017 version of the mortality improvement scale (“MP-2017”). In 2017, CNH Industrial adopted the MP-2017 mortality improvement scale, which better reflects the actual recent experience 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 $17 million to the Company’s benefit obligations at December 31, 2017, of which, $8 million was related to pension plans and $9 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 2017 Healthcare Plan benefit expense $ 6 $ (5 ) Total increase/(decrease) in accumulated Healthcare benefit obligations as of December 31, 2017 $ 132 $ (108 ) 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 2017 are as follows: All Plans Asset category: Equity securities 19 % Debt securities 49 % Cash/Other 32 % 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, 2017: Total Level 1 Level 2 Level 3 (in millions) Equity securities: U.S. equities $ 362 $ 19 $ 343 $ — Non-U.S. equities — — — — Total Equity securities 362 19 343 — Fixed income securities: U.S. government bonds 365 355 10 — U.S. corporate bonds 498 — 498 — Non-U.S. government bonds 55 13 42 — Non-U.S. corporate bonds 95 — 95 — Mortgage backed securities — — — — Other fixed income 9 — 9 — Total Fixed income securities 1,022 368 654 — Other types of investments: Mutual funds (A) 1,090 — 1,090 — Insurance contracts 149 — — 149 Derivatives—credit contracts — — — — Real estate — — — — Total Other types of investments 1,239 — 1,090 149 Cash: 78 17 61 — Total $ 2,701 $ 404 $ 2,148 $ 149 (A) This category includes mutual funds, which primarily invest in non-U.S. equities and non-U.S. corporate bonds. The following table presents the changes in the Level 3 plan assets for the year ended December 31, 2017: Insurance Contracts Balance at December 31, 2016 $ 135 Actual return on plan assets relating to assets still held at reporting date 6 Purchases 8 Settlements (5 ) Transfers in and/or out of level 3 (3 ) Currency impact 8 Balance at December 31, 2017 $ 149 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 — — — — 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. 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 Contributions CNH Industrial expects to contribute (including through direct benefit payments) approximately $67 million to its pension plans, $9 million to its healthcare plans and $37 million to its other postemployment plans in 2018. 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) 2018 $ 186 $ 66 $ — $ 37 2019 180 64 — 35 2020 182 63 — 39 2021 183 64 — 36 2022 179 64 — 36 2023 - 2027 896 337 (1 ) 146 Total $ 1,806 $ 658 $ (1 ) $ 329 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Note 12: Other Liabilities A summary of “Other liabilities” as of December 31, 2017 and 2016 is as follows: 2017 2016 (in millions) Advances on buy-back agreements $ 3,102 $ 2,429 Warranty and campaign programs 1,081 940 Marketing and sales incentive programs 1,335 1,182 Tax payables 765 714 Accrued expenses and deferred income 632 634 Accrued employee benefits 752 633 Legal reserves and other provisions 384 355 Contract reserve 588 407 Restructuring reserve 60 30 Other 701 681 Total $ 9,400 $ 8,005 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, 2017 and 2016 are as follows: 2017 2016 (in millions) Balance, beginning of year $ 940 $ 908 Current year additions 782 806 Claims paid (670 ) (706 ) Currency translation adjustment and other 29 (68 ) Balance, end of year $ 1,081 $ 940 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, 2017 and 2016 represented a sum of the deferred rental revenue and the guaranteed buy-back price. Restructuring Provision The Company incurred restructuring costs of $93 million, $44 million and $84 million for the years ended December 31, 2017, 2016, and 2015, respectively. These costs were as follows: • In 2017, Commercial Vehicles recorded $69 million mainly due to additional capacity realignment in the firefighting business and actions to reduce selling, general and administrative expenses as part of CNH Industrial’s Efficiency Program launched in 2014. Agricultural Equipment recorded $14 million, mainly as a result of footprint rationalization actions included in the Efficiency Program of the Company. • 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. The following table sets forth restructuring activity for the years ended December 31, 2017, 2016 and 2015: Severance and Other Employee Costs Facility Related Costs Other Restructuring Total (in millions) Balance at January 1, 2015 $ 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 Restructuring charges 76 17 — 93 Reserves utilized: cash (53 ) (1 ) — (54 ) Reserves utilized: non-cash (2 ) (13 ) — (15 ) Currency translation adjustments 4 2 — 6 Balance at December 31, 2017 $ 48 $ 12 $ — $ 60 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016, environmental reserves of approximately $35 million and $35 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 by the European Commission (the “Commission”) into certain business practices of all major European truck manufacturers, including Iveco, the Company’s wholly-owned subsidiary. 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 defendant in current private litigation commenced in various European jurisdictions and Israel that remains at an early stage, and the Company expects to face further claims, 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) 2018 $ 102 2019 68 2020 54 2021 35 2022 26 2023 and beyond 15 Total minimum rental commitments $ 300 Total rental expense for all operating leases was $78 million, $67 million, and $69 million for the years ended December 31, 2017, 2016, and 2015, respectively. At December 31, 2017, Financial Services has various agreements to extend credit for the following financing arrangements: Facility Total Credit Limit Utilized Not Utilized (in millions) Wholesale and dealer financing $ 7,094 $ 3,691 $ 3,403 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, 2017 and 2016 totaling $368 million and $291 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, 2017 the outstanding liabilities amounted to approximately $0.2 billion. 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, 2017 | |
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 derivatives 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 24 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 $11 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 $6.9 billion and $7.0 billion at December 31, 2017 and 2016, respectively. 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 after-tax gains (losses) deferred in accumulated other comprehensive income (loss) that will be recognized in interest expense over the next twelve months is insignificant. Interest rate derivatives that have been designated as fair value hedge relationships have been used by CNH Industrial to mitigate the volatility in the fair value of existing fixed rate bonds and medium-term notes due to changes in floating interest rate benchmarks. 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 floating interest rate benchmarks. Costs relating to the ineffectiveness of such transactions were insignificant in 2017, 2016, and 2015, 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, 2017, 2016, and 2015. All of CNH Industrial’s interest rate derivatives outstanding as of December 31, 2017 and 2016 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 $3.9 billion and $4.3 billion at December 31, 2017 and 2016, respectively. Financial Statement impact of CNH Industrial Derivatives The fair values of CNH Industrial’s derivatives at December 31, 2017 and 2016 in the consolidated balance sheets are recorded as follows: 2017 2016 (in millions) Derivatives Designated as Hedging Instruments: Assets: Foreign exchange contracts: $ 53 $ 47 Interest rate derivatives: 7 15 Cross currency swaps: — — Total Assets $ 60 $ 62 Liabilities Foreign exchange contracts: $ (55 ) $ (105 ) Interest rate derivatives: (16 ) (17 ) Total Liabilities $ (71 ) $ (122 ) Derivatives Not Designated as Hedging Instruments: Assets: Foreign exchange contracts: $ 13 $ 31 Interest rate derivatives: 4 2 Total Assets $ 17 $ 33 Liabilities Foreign exchange contracts: $ (22 ) $ (116 ) Interest rate derivatives: (5 ) (11 ) Total Liabilities $ (27 ) $ (127 ) Pre-tax gains (losses) on the consolidated statements of operations related to CNH Industrial’s derivatives for the year ended December 31, 2017, 2016, and 2015 are recorded in the following accounts: 2017 2016 2015 (in millions) Fair Value Hedges Interest rate derivatives—Interest expense $ (12 ) $ (33 ) $ (8 ) Gains/(losses) on hedged items—Interest expense $ 12 $ 33 $ 8 Cash Flow Hedges Recognized in accumulated other comprehensive income (effective portion): Foreign exchange contracts—accumulated other comprehensive income $ 48 $ (72 ) $ (19 ) Interest rate derivatives—accumulated other comprehensive income $ 5 $ 13 $ (39 ) Reclassified from accumulated other comprehensive income (effective portion): Foreign exchange contracts—Net sales $ 6 $ 55 $ 16 Foreign exchange contracts—Cost of goods sold $ (47 ) $ (4 ) $ (211 ) Foreign exchange contracts—Other, net $ 10 $ (5 ) $ (10 ) Interest rate derivatives—Interest expense $ — $ (4 ) $ (7 ) Not Designated as Hedges Foreign exchange contracts—Other, net $ (3 ) $ (231 ) $ 115 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, 2017 and 2016: Level 1 Level 2 Total 2017 2016 2017 2016 2017 2016 (in millions) Assets Foreign exchange derivatives $ — $ — $ 66 $ 78 $ 66 $ 78 Interest rate derivatives — — 11 17 11 17 Cross currency swaps — — — — — — Available for sale securities 1 1 — — 1 1 Total Assets $ 1 $ 1 $ 77 $ 95 $ 78 $ 96 Liabilities Foreign exchange derivatives $ — $ — $ (77 ) $ (221 ) $ (77 ) $ (221 ) Interest rate derivatives — — (21 ) (28 ) (21 ) (28 ) Total Liabilities $ — $ — $ (98 ) $ (249 ) $ (98 ) $ (249 ) 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, 2017 and 2016 are as follows: 2017 2016 Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Financing receivables $ 19,842 $ 20,026 $ 18,662 $ 18,554 Debt $ 25,895 $ 26,137 $ 25,276 $ 25,372 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, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | Note 15: Shareholders’ Equity The Articles of Association of CNH Industrial N.V. 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, 2017, the Company’s share capital was €18 million (equivalent to $25 million), fully paid-in, and consisted of 1,364,400,196 common shares (1,363,592,506 common shares outstanding, net of 807,690 common shares held in treasury by the Company as described in the following section) and 396,474,276 special voting shares (388,906,690 special voting shares outstanding, net of 7,567,586 special voting shares held in treasury by the Company as described in the section below). Changes in the composition of the share capital of CNH Industrial during 2017, 2016, and 2015 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, 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 Capital increase 5,271,344 — 5,271,344 Common stock repurchases (3,309,741 ) — (3,309,741 ) Retirement of special voting shares — (23,361,513 ) (23,361,513 ) Total CNH Industrial N.V. shares at December 31, 2017 1,363,592,506 388,906,690 1,752,499,196 During the year ended December 31, 2017 and 2016, 23 million and 1 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, net of transfer and allocation of special voting shares in accordance with the Special Voting Shares – Terms and Conditions. On September 15, 2017, the Company cancelled 78,000,000 special voting shares held in treasury, consequently, the total amount of issued special voting shares was reduced from 474,474,276 to 396,474,276. Furthermore, during the years ended December 31, 2017 and 2016, the Company delivered 5.3 million and 1.7 million common shares, under the Company’s stock compensation plan, 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 the Company’s common shares and promote stability of its shareholder base, the Articles of Association of CNH Industrial N.V. 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 N.V. 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 N.V. The electing shareholders are not required to pay any amount to the Company in connection with the allocation of the special voting shares. The 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 Consistent with previous AGMs, at the AGM held on April 14, 2017, shareholders renewed the authority granted to the Board of Directors to acquire common shares in the capital of the Company through stock exchange trading or otherwise to a maximum of up to 10% of the issued common shares as of April 14, 2017, for a period of 18 months from the date of the AGM and, therefore, expiring on October 13, 2018, subject to certain maximum and minimum price requirements. Implementing such resolution on June 5, 2017, the Company announced a renewal of the existing buy-back program to repurchase up to $300 million in common shares. At the 2018 Annual General Meeting of Shareholders, the Board of Directors intends to recommend to the Company’s shareholders the renewal of the authorization to repurchase up to a maximum of 10% of the Company’s issued common shares. After such authorization and subject to general and market conditions, the Company intends to launch a buy-back program up to $700 million, representing an increase of $400 million versus the current program. During the year ended December 31, 2017, the Company repurchased 3.3 million shares of its common stock on the MTA under the buy-back program at an aggregate cost of $38 million. As of December 31, 2017, the Company held 807,690 common shares in treasury, net of transfers of common shares to fulfill its obligations under its stock compensation plans, at an aggregate cost of $10 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, 2017, the Company acquired approximately 23 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, 2017, the Company held 7,567,586 special voting shares in treasury. Dividend On March 2, 2018, the Board of Directors of CNH Industrial N.V. recommended and proposed to the Company’s shareholders that the Company declare a dividend of €0.14 per common share, totaling approximately €191 million (equivalent to approximately $235 million, translated at the exchange rate reported by the European Central Bank on February 27, 2018). The proposal is subject to the approval of the Company’s shareholders at the AGM to be held on April 13, 2018. At the AGM held by CNH Industrial on April, 14, 2017, shareholders approved the payment of a dividend of €0.11 per common share. The dividend was paid in May 2017 for a total amount of €150 million ($161 million). The Company shall only have power to make distributions to shareholders and other persons entitled to distributable profits to the extent the Company’s equity exceeds the sum of the paid-up portion of the share capital and the reserves that must be maintained in accordance with provision of law. No distribution of profits may be made to the Company itself for shares that the Company holds in its own share capital. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 16: Share-Based Compensation For the year ended December 31, 2017, CNH Industrial recognized total share-based compensation expense of $19 million. 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 year ended December 31, 2015, CNH Industrial recognized total share-based compensation expense of $49 million. For the years ended December 31, 2017, 2016 and 2015, CNH Industrial recognized a total tax benefit relating to share-based compensation expense of $1 million, $0 and $3 million, respectively. As of December 31, 2017, CNH Industrial had unrecognized share-based compensation expense related to nonvested awards of approximately $104 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 1.79 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 2016 and 2017, prorated share amounts covering performance through this same period were issued to new employees entering the plan. PSU’s granted in these years were 0.5 million and 0 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 did not vest as both the performance and market conditions for the performance period 2014 through 2016 were not met. In December 2017, CNH Industrial cancelled all PSU’s issued in 2014, 2015 and 2016 and issued a grant of Performance Share Units (“PSU’s”) to its Chief Executive Officer and selected key employees, with financial performance goals covering the three-year period from January 1, 2017 to December 31, 2019. This PSU grant totaled approximately 7 million units. The performance goal is a market condition with a payout schedule ranging from 0 to 130%. In addition there is a performance condition that if not met, reduces the payout by 30%. Accordingly, the total number of shares that will eventually be granted may vary from the original estimate of 7 million shares. The awards cliff vest on February 28, 2020 to the extent that the market condition is met upon completion of the performance period on December 31, 2019. The awards were granted on December 12 and December 22, 2017 with a weighted average fair value of $9.14 per share. The fair values of the awards are based on the market condition and are calculated using the Monte Carlo Simulation model. 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 December 12, 2017 December 22, 2017 Expected Volatility 31.2% 31.1% Dividend yield 0.91% 0.87% Risk-free rate 1.95% 2.01% The expected volatility is based on the daily stock price movements experienced by the common shares of CNH Industrial over a three-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 three-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, 2017: 2017 Performance Shares Weighted Average Grant-Date Fair Value Nonvested at beginning of year 11,725,260 $ 9.23 Granted 6,632,100 $ 9.14 Forfeited/Cancelled (11,725,260 ) $ 9.23 Vested — $ — Nonvested at end of year 6,632,100 $ 9.14 Restricted Share Units In 2015, 2016 and 2017, CNH Industrial issued to selected employees approximately 2 million, 2 million, and 4 million Restricted Share Units (“RSUs”) with a weighted average fair value of $8.60, $7.30, and $13.23 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, second, third and fourth tranches of 750 thousand, 750 thousand, 600 thousand and 450 thousand shares vested on December 31, 2014, 2015, 2016 and 2017, respectively, and were exercised on February 23, 2015, February 8, 2016, February 8, 2017 and February 20, 2018, respectively. The following table reflects the activity of restricted share units under CNH Industrial EIP for the year ended December 31, 2017: 2017 Restricted Shares Weighted Average Grant-Date Fair Value Nonvested at beginning of year 4,232,708 $ 8.14 Granted 3,939,100 $ 13.23 Forfeited (172,706 ) $ 7.77 Vested (1,906,868 ) $ 8.67 Nonvested at end of year 6,092,234 $ 11.38 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. On April 14, 2017, shareholders approved a proposed amendment to the CNH Industrial DCP pursuant to which non-executive directors would only be paid cash compensation for their service as a director. The CNH Industrial DCP provides for the payment of the following to eligible members of the CNH Industrial Board in the form of cash, 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”). Prior to the amendment of the CNH Industrial DCP, each quarter of the CNH Industrial DCP year, the eligible directors elected the form of payment of their fees. If the elected form was common shares, the eligible director would receive as many common shares as equal to the amount of fees the director elected 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 was made. Common shares issued to the eligible director vested immediately upon grant. If an eligible director elected to receive all or a portion of fees in the form of a stock option, the number of common shares underlying the stock option was determined by dividing (i) by (ii) where (i) equals the dollar amount of the quarterly payment that the eligible director elected 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 was made. The CNH Industrial DCP defined 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 vested 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, 2017, 0.05 million stock options were issued under the CNH Industrial DCP (prior to the amendment described above) at a weighted average exercise price of $9.42 per share. The weighted average fair value for the stock options that were issued in 2015 was $1.65. No stock options were issued under this plan in 2017 or 2016. As of December 31, 2017, 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 2015, 2016 and 2017 were $8.16, $6.78, and $9.28, 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, 2017, approximately 0.01 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 2015, 2016 or 2017 under the CNH EIP. The following table summarizes outstanding stock options under the CNH EIP at December 31, 2017: 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–$10.00 214,574 0.15 $ 8.78 $ 991,332 214,574 0.15 $ 8.78 $ 991,332 $ 991,332 $ 991,332 (A) The difference between the exercise price of share-based compensation and the year-end market price of CNH Industrial common shares of $13.40. 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 December 31, 2017: 2017 Shares Weighted- Average Exercise Price Outstanding at beginning of year 7,210,881 $ 9.51 Forfeited — $ — Expired (3,832,177 ) $ 10.15 Exercised (3,164,130 ) $ 8.78 Outstanding at end of year 214,574 $ 8.78 Exercisable at end of year 214,574 $ 8.78 Additional Share-Based Compensation Information The table below provides additional share-based compensation information for the years ended December 31, 2017, 2016, and 2015: 2017 2016 2015 (in millions) Total intrinsic value of options exercised and shares vested $ 23 $ 12 $ 33 Fair value of shares vested $ 17 $ 14 $ 36 Cash received from share award exercises $ 28 $ — $ 8 Tax benefit of options exercised and shares vested $ — $ — $ — |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017, 2016 and 2015. 2017 2016 2015 (in millions, except per share data) Basic: Net income (loss) attributable to CNH Industrial $ 295 $ (252 ) $ 253 Weighted average common shares outstanding—basic 1,364 1,362 1,361 Basic earnings per share $ 0.22 $ (0.18 ) $ 0.19 Diluted: Net income (loss) attributable to CNH Industrial $ 295 $ (252 ) $ 253 Weighted average common shares outstanding—basic 1,364 1,362 1,361 Effect of dilutive securities (when dilutive): Stock compensation plans 3 — 2 Weighted average common shares outstanding—diluted (A) 1,367 1,362 1,363 Diluted earnings per share $ 0.22 $ (0.18 ) $ 0.19 (A) For the twelve months ended December 31, 2017, 2016, and 2015, 0 million, 7.3 million, and 7.9 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, 2017 | |
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, 2017 Gross Amount Income Taxes Net Amount Unrealized gain on cash flow hedges $ 84 $ 5 $ 89 Changes in retirement plans’ funded status 116 (30 ) 86 Foreign currency translation (401 ) — (401 ) Share of other comprehensive loss of entities using the equity method 32 — 32 Other comprehensive loss $ (169 ) $ (25 ) $ (194 ) 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 ) 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, 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 ) Other comprehensive income (loss), before reclassifications 56 13 (401 ) — 35 (297 ) Amounts reclassified from other comprehensive income 33 73 — — — 106 Other comprehensive income (loss) 1 89 86 (401 ) — 35 (191 ) Balance, December 31, 2017 $ 1 $ (950 ) $ (891 ) $ — $ (118 ) $ (1,958 ) (1) Excluded from the table above is other comprehensive loss allocated to noncontrolling interests of $3, $3 and $(1) for the years ended December 31, 2017, 2016 and 2015, respectively. Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in December 31, 2017 and 2016 consisted of the following: Amount Reclassified from Other Comprehensive Income (Loss) Consolidated Statement of Operations line 2017 2016 (in millions) Cash flow hedges $ (6 ) $ (55 ) Net sales 47 4 Cost of goods sold (10 ) 5 Other, net — 4 Interest expense 2 9 Income taxes $ 33 $ (33 ) Change in retirement plans’ funded status: Amortization of actuarial losses $ 101 $ 99 * Amortization of prior service cost (2 ) (5 ) * (26 ) (11 ) Income taxes $ 73 $ 83 Total reclassifications, net of tax $ 106 $ 50 (*) These amounts are included in net periodic pension and other postretirement benefit cost. See “Note 11: Employee Benefit Plans and Postretirement Benefits” for additional information. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2017 | |
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 and the Miller brand, primarily in North America and Australia. Following the acquisition of the grass and soil implement business of Kongskilde Industries in February 2017, certain agricultural equipment products have been 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 Case Construction and New Holland Construction Equipment brands. Commercial Vehicles designs, manufactures and distributes 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 engines, transmission systems and axles for on- and off-road applications, as well as for marine 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. Until December 31, 2017, the CODM reviewed 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 assessed the performance of the segment on the basis of net income prepared in accordance with U.S. GAAP. Furthermore, the CODM reviewed 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, 2017, 2016, and 2015 are provided below. Years Ended December 31, 2017 2016 2015 (in millions) Operating profit $ 1,662 $ 1,439 $ 1,635 Adjustments/reclassifications to convert from operating profit to U.S. GAAP income before income taxes and equity in income of unconsolidated subsidiaries: Restructuring expenses (93 ) (44 ) (84 ) Interest expenses of Industrial Activities, net of interest income and eliminations (484 ) (543 ) (479 ) Other, net (405 ) (861 ) (505 ) Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates under U.S. GAAP $ 680 $ (9 ) $ 567 Segment Information The following summarizes operating profit by reportable segment: Years Ended December 31, 2017 2016 2015 (in millions) Agricultural Equipment $ 949 $ 818 $ 952 Construction Equipment 21 2 90 Commercial Vehicles 272 333 283 Powertrain 362 232 186 Eliminations and other (85 ) (94 ) (79 ) Total Operating profit of Industrial Activities $ 1,519 $ 1,291 $ 1,432 Financial Services 479 478 515 Eliminations and other (336 ) (330 ) (312 ) Operating profit $ 1,662 $ 1,439 $ 1,635 A summary of additional operating segment information as of and for the years ended December 31, 2017, 2016, and 2015 is as follows: Years Ended December 31, 2017 2016 2015 (in millions) Revenues: Agricultural Equipment $ 11,130 $ 10,120 $ 11,025 Construction Equipment 2,626 2,304 2,542 Commercial Vehicles 10,415 9,553 9,542 Powertrain 4,372 3,707 3,560 Eliminations and other (2,375 ) (2,015 ) (1,992 ) Net sales of Industrial Activities 26,168 23,669 24,677 Financial Services 1,625 1,570 1,603 Eliminations and other (432 ) (367 ) (368 ) Total Revenues $ 27,361 $ 24,872 $ 25,912 Depreciation and Amortization (*): Agricultural Equipment $ 316 $ 309 $ 303 Construction Equipment 65 69 70 Commercial Vehicles 211 208 198 Powertrain 127 124 123 Other activities and adjustments 1 — — Depreciation and amortization of Industrial Activities 720 710 694 Financial Services 5 6 5 Depreciation and amortization $ 725 $ 716 $ 699 Expenditures for long-lived assets (*): Agricultural Equipment $ 208 $ 194 $ 308 Construction Equipment 36 36 47 Commercial Vehicles 152 173 182 Powertrain 90 96 112 Other activities 2 2 4 Expenditures for long-lived assets of Industrial Activities 488 501 653 Financial Services 4 2 3 Expenditures for long-lived assets $ 492 $ 503 $ 656 ( * ) 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 $886 million, $842 million, and $1,008 million for the years ended December 31, 2017, 2016, and 2015, respectively. Revenues earned in the rest of the world from external customers were $26,475 million, $24,030 million, and $24,904 million for the years ended December 31, 2017, 2016, and 2015, respectively. The following highlights revenues earned from external customers in the rest of the world by destination: 2017 2016 2015 (in millions) United States $ 4,670 $ 4,628 $ 5,533 Italy 3,052 2,874 2,524 France 2,635 2,608 2,580 Brazil 1,788 1,587 1,670 Germany 1,751 1,574 1,565 Canada 1,226 1,182 1,229 Australia 1,068 947 846 Spain 1,003 921 810 Argentina 986 680 768 Poland 506 435 479 Other 7,790 6,594 6,900 Total Revenues from external customers in the rest of world $ 26,475 $ 24,030 $ 24,904 Total long-lived tangible and intangible assets located in the U.K. were $293 million and $234 million at December 31, 2017 and 2016, respectively, and the total of such assets located in the rest of the world totaled $11,819 million and $11,306 million at December 31, 2017 and 2016, respectively. The following highlights long-lived tangible and intangible assets by geographic in the rest of the world: At December 31, 2017 2016 (in millions) United States $ 4,850 $ 5,081 Italy 1,667 1,510 France 931 805 Germany 885 808 Spain 775 625 Canada 565 519 Brazil 386 436 China 278 280 Other 1,482 1,242 Total Long-lived assets in the rest of the world $ 11,819 $ 11,306 In 2017, 2016, and 2015, 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, 2017 | |
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 Fiat Chrysler Automobiles N.V. and its subsidiaries and affiliates (“FCA”) and Ferrari N.V. and its subsidiaries and affiliates (“Ferrari”). As of January 31, 2018, EXOR N.V. held 41.9% 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 January 31, 2018. In addition, CNH Industrial engages in transactions with its unconsolidated subsidiaries and affiliates over which CNH Industrial has a significant influence or 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 an investment holding company in Europe. Among other things, EXOR N.V. manages a portfolio that includes investments in FCA and Ferrari. CNH Industrial did not enter into any significant transactions with EXOR N.V. during the years ended December 31, 2017 and 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 2017 and 2016. In connection with the Demerger, Fiat (now known as FCA) and Fiat Industrial (now known as CNH Industrial) entered into a Master Services Agreement (“MSA”) which sets forth the primary terms and conditions pursuant to which the service provider subsidiaries of CNH Industrial and FCA provide services (such as purchasing, tax, accounting and other back office services, security and training) to the 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 that 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. FCA subsidiaries provide CNH Industrial with administrative services such as accounting, cash management, maintenance of plant and equipment, security, information systems and training under the terms and conditions of the MSA and the applicable Opt-in Letters. Additionally, CNH Industrial sells engines and light commercial vehicles to and purchases engine blocks and other components from FCA subsidiaries. Furthermore, CNH Industrial and FCA may engage in other minor transactions in the ordinary course of business. These transactions with FCA are reflected in the Company’s consolidated financial statements as follows: 2017 2016 2015 (in millions) Net sales $ 699 $ 806 $ 762 Cost of goods sold $ 444 $ 466 $ 463 Selling, general and administrative expenses $ 155 $ 148 $ 161 12/31/2017 12/31/2016 (in millions) Trade receivables $ 17 $ 11 Trade payables $ 96 $ 105 Transactions with Unconsolidated Subsidiaries and Affiliates CNH Industrial sells commercial vehicles, agricultural and construction equipment and provides technical services to unconsolidated subsidiaries and affiliates such as IVECO—OTO MELARA Società Consortile a responsabilità limitata, 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: 2017 2016 2015 (in millions) Net sales $ 1,028 $ 782 $ 700 Cost of goods sold $ 446 $ 392 $ 430 12/31/2017 12/31/2016 (in millions) Trade receivables $ 102 $ 113 Trade payables $ 97 $ 108 At December 31, 2017 and 2016, CNH Industrial had pledged guarantees on commitments of its joint ventures for an amount of $255 million and $187 million, respectively, mainly related to IVECO—OTO MELARA Società Consortile a responsabilità limitata |
Supplemental Information
Supplemental Information | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 2016 2015 2017 2016 2015 (in millions) Revenues Net sales $ 26,168 $ 23,669 $ 24,677 $ — $ — $ — Finance and interest income 122 153 201 1,625 1,570 1,603 Total Revenues $ 26,290 $ 23,822 $ 24,878 $ 1,625 $ 1,570 $ 1,603 Costs and Expenses Cost of goods sold 21,621 19,539 20,357 — — — Selling, general & administrative expenses 2,071 1,979 2,032 259 283 285 Research and development expenses 957 860 856 — — — Restructuring expenses 90 43 82 3 1 2 Interest expense 604 694 678 555 521 576 Interest compensation to Financial Services 338 332 314 — — — Other, net 396 855 497 341 294 235 Total Costs and Expenses $ 26,077 $ 24,302 $ 24,816 $ 1,158 $ 1,099 $ 1,098 Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates 213 (480 ) 62 467 471 505 Income tax (expense) (413 ) (137 ) (202 ) (42 ) (161 ) (158 ) Equity income of unconsolidated subsidiaries and affiliates 61 34 20 27 24 21 Results from intersegment investments 452 334 368 — — — Net income (loss) $ 313 $ (249 ) $ 248 $ 452 $ 334 $ 368 Balance Sheets Industrial Activities Financial Services 2017 2016 2017 2016 (in millions) ASSETS Cash and cash equivalents $ 4,901 $ 4,649 $ 529 $ 368 Restricted cash — — 770 837 Trade receivables 490 596 53 58 Financing receivables 1,718 1,592 20,699 19,546 Inventories, net 6,064 5,396 216 213 Property, plant and equipment, net 7,001 6,395 2 2 Investments in unconsolidated subsidiaries and affiliates 3,173 2,886 205 153 Equipment under operating leases 35 17 1,810 1,890 Goodwill 2,316 2,296 156 153 Other intangible assets, net 779 772 13 15 Deferred tax assets 835 1,060 198 188 Derivative assets 73 98 14 8 Other assets 1,706 1,505 358 382 TOTAL ASSETS $ 29,091 $ 27,262 $ 25,023 $ 23,813 LIABILITIES AND EQUITY Debt $ 7,396 $ 7,691 $ 21,075 $ 20,061 Trade payables 5,936 5,042 193 180 Deferred tax liabilities 97 84 215 310 Pension, postretirement and other postemployment benefits 2,280 2,256 20 20 Derivative liability 88 239 20 21 Other liabilities 8,869 7,478 686 669 TOTAL LIABILITIES $ 24,666 $ 22,790 $ 22,209 $ 21,261 Equity 4,400 4,451 2,814 2,552 Redeemable noncontrolling interest 25 21 — — TOTAL LIABILITIES AND EQUITY $ 29,091 $ 27,262 $ 25,023 $ 23,813 Cash Flow Statements Industrial Activities Financial Services 2017 2016 2015 2017 2016 2015 (in millions) Operating activities: Net income (loss) $ 313 $ (249 ) $ 248 $ 452 $ 334 $ 368 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 720 710 694 5 6 5 Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments 328 284 238 297 261 209 (Gain) loss from disposal of assets 27 4 (2 ) — — — Loss on repurchase of Notes 56 60 — 8 — — Undistributed income (loss) of unconsolidated subsidiaries (107 ) 37 (104 ) (27 ) (25 ) (17 ) Other non-cash items 208 73 213 87 122 118 Changes in operating assets and liabilities: Provisions 239 42 (61 ) (6 ) 4 13 Deferred income taxes 217 43 59 (95 ) 22 60 Trade and financing receivables related to sales, net 147 (7 ) 354 (821 ) (95 ) (50 ) Inventories, net (211 ) 141 507 (2 ) (35 ) (34 ) Trade payables 359 121 (162 ) 8 (19 ) 4 Other assets and liabilities 120 460 112 50 155 220 Net cash provided (used) by operating activities 2,416 1,719 2,096 (44 ) 730 896 Investing activities: Additions to retail receivables — — — (4,078 ) (3,951 ) (4,498 ) Collections of retail receivables — — — 4,384 4,569 5,146 Proceeds from sale of assets, net of assets sold under operating leases and assets sold under buy-back commitments 17 12 11 — — — Proceeds from sale of assets under operating leases and assets sold under buy-back commitments 374 234 320 476 426 406 Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and sold under buy-back commitments (488 ) (501 ) (653 ) (4 ) (2 ) (3 ) Expenditures for assets under operating lease and assets sold under buy-back commitments (1,079 ) (884 ) (875 ) (664 ) (747 ) (976 ) Other (274 ) 380 2,151 358 (562 ) (2,019 ) Net cash provided (used) by investing activities (1,450 ) (759 ) 954 472 (267 ) (1,944 ) Financing activities: Proceeds from long-term debt 2,006 1,754 650 13,890 10,875 9,277 Payments of long-term debt (2,580 ) (2,085 ) (2,483 ) (14,222 ) (11,685 ) (8,185 ) Net increase (decrease) in other financial liabilities (308 ) (219 ) 51 362 87 45 Dividends paid (168 ) (207 ) (297 ) (357 ) (341 ) (207 ) Other (25 ) (58 ) 23 46 105 43 Net cash provided (used) by financing activities (1,075 ) (815 ) (2,056 ) (281 ) (959 ) 973 Effect of foreign exchange rate changes on cash and cash equivalents 361 (47 ) (565 ) 14 31 (133 ) Increase (decrease) in cash and cash equivalents 252 98 429 161 (465 ) (208 ) Cash and cash equivalents, beginning of year 4,649 4,551 4,122 368 833 1,041 Cash and cash equivalents, end of year $ 4,901 $ 4,649 $ 4,551 $ 529 $ 368 $ 833 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 22: Subsequent Event On January 30, 2018, the Company announced that the Board of Directors intends to recommend to the Company’s shareholders the renewal of the authorization to repurchase up to a maximum of 10% of the Company’s issued common shares. It was also announced that, after such authorization and subject to general and market conditions, the Company intends to launch a buy-back program up to $700 million, representing an increase of $400 million versus the current program. On February 20, 2018, the United States Supreme Court (the “Supreme Court”) ruled in favor of the Company and reversed the decision of the U.S. Court of Appeals for the Sixth Circuit, in Reese v. CNH Industrial N.V. and CNH Industrial America LLC (“Reese |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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 2016 or 2017. |
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 estimated that all amounts are deemed uncollectable. 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 $165 million, $145 million, and $155 million for the years ended December 31, 2017, 2016, and 2015, 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 statement of operations and also include the cost of hedging instruments. For the years ended December 31, 2017, 2016 and 2015, the Company recorded a net loss of $78 million, a net gain of $50 million and a net loss of $581 million, respectively. Included in the net gain (loss) in 2017, 2016, and 2015 were the re-measurement charges of $5 million, $27 million, and $150 million, respectively, on the Venezuelan bolivar fuerte (“Bs.F., or “bolivars”) rate described below, as well as a charge of $21 million, $22 million and $40 million due to the devaluation of net monetary assets of Argentinian subsidiaries in 2017, 2016, and 2015. As described in Note 14: Financial Instruments, the Company uses hedging instruments to mitigate foreign currency risk. Net of gains realized on foreign currency hedging instruments, the Company recorded a loss of $140 million, $149 million and $289 million for the three years ended December 31, 2017, 2016 and 2015, respectively. Venezuela Currency Regulations, Re-measurement and Deconsolidation The functional currency of CNH Industrial’s Venezuelan operations is the U.S. dollar. At the end of each period, CNH Industrial re-measured its net monetary assets in Venezuela from the bolivar fuerte (“Bs.F.” or “bolivars”) to the U.S. dollar at the rate it believed was 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. Additionally, the government expanded the types of transactions that may be subject to the weekly auction mechanism under SICAD I. Also in 2014, the Venezuelan government announced that another floating rate exchange system (SICAD II) would be initiated. 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 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 to re-measure the net monetary assets of CNH Industrial in Venezuela, except for those cases in which CNH Industrial 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 re-measurement 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 non-recurring re-measurement and impairment charge for a total of $34 million in Financial income/(expenses). During 2017, the economic and socio-political environment in Venezuela further deteriorated, significantly impacting the Company’s ability to make key operating decisions. In the fourth quarter of 2017, the further deterioration of conditions in the country and the persisting restrictive exchange control regulations, which prevent any payments out of the country, resulted in an other-than-temporary lack of exchangeability. Therefore, effective December 31, 2017, CNH Industrial determined that it no longer had the ability to control its Venezuelan operations. As a result, the Company recorded a non-cash pre- and after-tax charge of $92 million to impair and deconsolidate its operations in Venezuela and will begin reporting operating results under the cost method. The pretax charge includes the write-off of the Company’s investment in Venezuela, including properties and all inter-company balances. The charge also includes the reversal through income statement of foreign currency translation losses previously included in Accumulated other comprehensive income. CNH Industrial will no longer include the results of its Venezuelan operations in its Consolidated Financial Statements. If cash were to be received from the Venezuelan legal entities in future periods, income will be recognized. The Company expects the current economic conditions in Venezuela to continue and does not anticipate any payments to be made in the foreseeable future. CNH Industrial’s results of operations in Venezuela for the year ended December 31, 2017 and 2016 were immaterial as a percentage of both CNH Industrial’s net revenues and operating profit. Subsequent to the deconsolidation under the voting interest consolidation model, the Company determined that the Venezuelan subsidiaries are considered to be variable interest entities. As the Company does not have the power to direct the activities that most significantly affect the Venezuelan subsidiaries' economic performance, the Company is not the primary beneficiary of the variable interest entities and therefore would not consolidate the entities. Due to the lack of ability to settle U.S. dollar obligations, the Company does not intend to sell into, nor purchase inventory from, the Venezuela entities at this time. Additionally, the Company has no remaining financial commitments to the Venezuelan subsidiaries and therefore believes the exposure to future losses is not material. |
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 $896 million, $930 million, and $945 million for the years ended December 31, 2017, 2016, and 2015, respectively. For 2017 and 2016, the amount includes a charge of $64 million and $60 million in connection with the Company’s accelerated debt redemption strategy. CNH Industrial paid taxes of $224 million, $104 million, and $345 million in 2017, 2016, and 2015, 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. |
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. Residual values are estimated at inception of the lease and are reviewed quarterly. 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 2017 and 2016, 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 Share-based Compensation In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Inventory In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment Not Yet Adopted Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC 606) (“ASU 2014-09”) The Company will adopt the new standard effective January 1, 2018 using the full retrospective approach. The preliminary impact of adopting the new standard on the net equity at January 1, 2016 (date of first time retrospective adoption of the new standard) is a reduction of approximately $0.1 billion and primarily relates to certain services (mainly maintenance and repair contracts, as well as extended warranty contracts) and certain other incentives provided by CNH Industrial to customers which require a different timing of recognition of revenues and margin. Furthermore, the adoption of the new standard will also result in changes in classification between net revenues and expenses, whose overall impact on total net revenues is not significant, as well as certain further changes in classification for certain assets and liabilities, whose overall impact on total assets and total liabilities is not significant. As it relates to our supplemental information on segment reporting, based upon the provisions of ASC 606, we have determined that sales to dealers accompanied by “floor plan” agreements, under which the Company offers wholesale financing including “interest-free” financing for specified periods, includes two separate performance obligations. In particular, concurrent with the sale of the equipment/vehicle, our Industrial Activities companies offer to the dealer wholesale financing through loans extended by financial services companies (primarily our captive Financial Services). Industrial Activities compensates Financial Services for the cost of the “interest free” period. This cost has been determined to represent a cash sale incentive on the initial sale of the good (first performance obligation), and therefore it should be recognized as a reduction of net sales of Industrial Activities, and not as interest compensation to Financial Services in the Industrial Activities statement of operations, as presented historically. The second performance obligation consists of a credit facility by Financial Services to the dealer: the remuneration of this performance obligation is represented by the compensation received from Industrial Activities for the period of the “interest-free” financing, and by the interest charged to dealer for the remaining period. This remuneration is recognized over the period of the outstanding exposure, in line with the current accounting treatment. We do not anticipate these changes will result in any change in total revenues in the Consolidated Statement of Operations or in total operating income as the transactions between Industrial Activities and Financial Services are eliminated in consolidation. However, the new classification of the interest compensation to Financial Services will modify the allocation of total revenues between the amounts classified as Net sales (which includes only Net sales of Industrial Activities) and the Finance and Interest Income (which mainly includes income of Financial Services). Furthermore, after the adoption of ASC 606, the different classification of interest compensation to Financial Services will reduce the operating profit of Industrial Activities, but will not modify the total consolidated operating profit. Compensation – Retirement Benefits In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”) 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 Statement of Cash Flows In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities Derivatives and Hedging |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 | |
Receivables [Abstract] | |
Summary of Financing Receivables | A summary of financing receivables included in the consolidated balance sheets as of December 31, 2017 and 2016 is as follows: 2017 2016 (in millions) Retail $ 9,725 $ 9,949 Wholesale 10,048 8,583 Other 69 130 Total $ 19,842 $ 18,662 |
Maturities of Financing Receivables | Contractual maturities of financing receivables as of December 31, 2017 are as follows: Amount (in millions) 2018 $ 13,121 2019 2,523 2020 1,815 2021 1,273 2022 878 2023 and thereafter 232 Total $ 19,842 |
Summary of Aging of Receivables | The aging of financing receivables as of December 31, 2017 and 2016 is as follows (in millions): 2017 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 $ 26 $ 9 $ — $ 35 $ 6,671 $ 6,706 $ 25 $ 6,731 EMEA 3 4 4 11 261 272 — 272 LATAM 8 — — 8 1,851 1,859 40 1,899 APAC — — — — 823 823 — 823 Total Retail $ 37 $ 13 $ 4 $ 54 $ 9,606 $ 9,660 $ 65 $ 9,725 Wholesale NAFTA $ — $ — $ — $ — $ 3,692 $ 3,692 $ 41 $ 3,733 EMEA 23 12 4 39 5,061 5,100 9 5,109 LATAM — — — — 619 619 — 619 APAC 4 — — 4 583 587 — 587 Total Wholesale $ 27 $ 12 $ 4 $ 43 $ 9,955 $ 9,998 $ 50 $ 10,048 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 |
Allowance for Credit Losses Activity | Allowance for credit losses activity for the three years ended December 31, 2017, 2016 and 2015 is as follows (in millions): December 31, 2017 Retail Wholesale Other Total Opening balance $ 374 $ 200 $ — $ 574 Provision 72 11 — 83 Charge-offs, net of recoveries (103 ) (15 ) — (118 ) Foreign currency translation and other 40 4 — 44 Ending balance 383 200 — 583 Ending balance: Individually evaluated for impairment 212 164 — 376 Ending balance: Collectively evaluated for impairment 171 36 — 207 Receivables: Ending balance 9,725 10,048 69 19,842 Ending balance: Individually evaluated for impairment 347 540 — 887 Ending balance: Collectively evaluated for impairment $ 9,378 $ 9,508 $ 69 $ 18,955 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 |
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, have provided bankruptcy notification, or require significant collection efforts. Impaired receivables are generally classified as non-performing. 2017 2016 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 $ — $ — $ — $ — $ — $ — $ — $ — EMEA $ — $ — $ — $ — $ 90 $ 90 $ — $ 74 LATAM $ — $ — $ — $ — $ — $ — $ — $ — APAC $ — $ — $ — $ — $ — $ — $ — $ — Wholesale NAFTA $ — $ — $ — $ — $ — $ — $ — $ — EMEA $ — $ — $ — $ — $ — $ — $ — $ — LATAM $ — $ — $ — $ — $ — $ — $ — $ — APAC $ — $ — $ — $ — $ — $ — $ — $ — With an allowance recorded Retail NAFTA $ 39 $ 37 $ 18 $ 41 $ 31 $ 30 $ 18 $ 31 EMEA $ 260 $ 260 $ 170 $ 277 $ 171 $ 171 $ 143 $ 195 LATAM $ 45 $ 45 $ 22 $ 32 $ 23 $ 23 $ 17 $ 23 APAC $ 3 $ 3 $ 2 $ 2 $ 2 $ 2 $ 1 $ 2 Wholesale NAFTA $ 44 $ 44 $ 3 $ 49 $ 44 $ 43 $ 4 $ 46 EMEA $ 457 $ 457 $ 134 $ 443 $ 420 $ 420 $ 131 $ 378 LATAM $ 30 $ 17 $ 21 $ 28 $ 22 $ 15 $ 12 $ 18 APAC $ 9 $ 9 $ 6 $ 4 $ 5 $ 5 $ 2 $ 18 Total Retail $ 347 $ 345 $ 212 $ 352 $ 317 $ 316 $ 179 $ 325 Wholesale $ 540 $ 527 $ 164 $ 524 $ 491 $ 483 $ 149 $ 460 |
Carrying Amount of Restricted Assets Included In Financing Receivables | At December 31, 2017 and 2016, the carrying amount of such restricted assets included in financing receivables above are the following (in millions): Restricted Receivables 2017 2016 Retail note and finance lease receivables $ 6,833 $ 7,140 Wholesale receivables 7,189 6,445 Total $ 14,022 $ 13,585 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 consist of the following: 2017 2016 (in millions) Raw materials $ 1,278 $ 1,185 Work-in-process 601 757 Finished goods 4,401 3,667 Total Inventories $ 6,280 $ 5,609 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment | A summary of property, plant and equipment as of December 31, 2017 and 2016 is as follows: 2017 2016 (in millions) Land and industrial buildings $ 3,472 $ 3,075 Plant, machinery and equipment 8,659 7,959 Assets sold with buy-back commitment 3,820 3,021 Construction in progress 101 131 Other 834 782 Gross property, plant and equipment 16,886 14,968 Accumulated depreciation (9,883 ) (8,571 ) Net property, plant and equipment $ 7,003 $ 6,397 |
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, 2017, and 2016 is as follows: 2017 2016 (in millions) Gross capital leases ² $ 100 $ 169 Accumulated depreciation (36 ) (53 ) Net capital leases $ 64 $ 116 ( 1 ) Included in property, plant and equipment table above ( 2 ) Consists of industrial buildings, plant, machinery and equipment |
Investments in Unconsolidated35
Investments in Unconsolidated Subsidiaries and Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 is as follows: 2017 2016 (in millions) Equity method $ 555 $ 479 Cost method 6 8 Total $ 561 $ 487 |
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, 2017 2016 2015 (in millions) Net revenue $ 3,273 $ 3,670 $ 3,911 Income before taxes $ 265 $ 99 $ 127 Net income $ 198 $ 48 $ 68 As of December 31, 2017 2016 (in millions) Total Assets $ 7,441 $ 6,919 Total Liabilities $ 6,216 $ 5,758 Total Equity $ 1,225 $ 1,161 |
Equipment on Operating Leases (
Equipment on Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Summary of Equipment on Operating Leases | A summary of equipment on operating leases as of December 31, 2017 and 2016 is as follows: 2017 2016 (in millions) Equipment on operating leases $ 2,240 $ 2,253 Accumulated depreciation (395 ) (346 ) Net equipment on operating leases $ 1,845 $ 1,907 |
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, 2017, are as follows: Amount (in millions) 2018 $ 175 2019 109 2020 59 2021 29 2022 7 Beyond 5 years 1 Total $ 380 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 are as follows: Agricultural Equipment Construction Equipment Commercial Vehicles Powertrain Financial Services Total (in millions) Balance at January 1, 2016 $ 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 Impact of foreign exchange and other 6 5 9 — 3 23 Balance at December 31, 2017 $ 1,654 $ 593 $ 64 $ 5 $ 156 $ 2,472 |
Other Intangible Assets and Related Accumulated Amortization | As of December 31, 2017, and 2016, the Company’s other intangible assets and related accumulated amortization consisted of the following: 2017 2016 Weighted Avg. Life Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in millions) Other intangible assets subject to amortization: Dealer networks 15 $ 328 $ 199 $ 129 $ 316 $ 168 $ 148 Patents, concessions and licenses and other 5-25 1,834 1,444 390 1,649 1,284 365 2,162 1,643 519 1,965 1,452 513 Other intangible assets not subject to amortization: Trademarks 273 — 273 274 — 274 Total Other intangible assets $ 2,435 $ 1,643 $ 792 $ 2,239 $ 1,452 $ 787 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Issued Bond Outstanding | A summary of issued bonds outstanding as of December 31, 2017, is as follows: Currency Face value of outstanding bonds (in millions) Coupon Maturity Outstanding amount ($ millions) Industrial Activities Euro Medium Term Notes: CNH Industrial Finance Europe S.A. (1) (2) EUR 853 6.250 % March 9, 2018 $ 1,023 CNH Industrial Finance Europe S.A. (1) (3) EUR 547 2.750 % March 18, 2019 656 CNH Industrial Finance Europe S.A. (1) EUR 700 2.875 % September 27, 2021 839 CNH Industrial Finance Europe S.A. (1) EUR 75 1.625 % March 29, 2022 90 CNH Industrial Finance Europe S.A. (1) EUR 500 1.375 % May 23, 2022 600 CNH Industrial Finance Europe S.A. (1) EUR 500 2.875 % May 17, 2023 600 CNH Industrial Finance Europe S.A. (1) EUR 650 1.750 % September 12, 2025 779 CNH Industrial Finance Europe S.A. (1) EUR 100 3.500 % November 12, 2025 120 CNH Industrial Finance Europe S.A. (1) EUR 50 3.875 % April 21, 2028 60 Other Bonds: CNH Industrial N.V. (4) USD 600 4.500 % August 15, 2023 600 CNH Industrial N.V. (4) USD 500 3.850 % November 15, 2027 500 Hedging effects, bond premium/discount, and unamortized issuance costs (57 ) Total Industrial Activities $ 5,810 Financial Services CNH Industrial Capital LLC USD 600 3.625 % April 15, 2018 $ 600 CNH Industrial Capital LLC USD 500 3.375 % July 15, 2019 500 CNH Industrial Capital LLC USD 600 4.375 % November 6, 2020 600 CNH Industrial Capital LLC USD 500 4.875 % April 1, 2021 500 CNH Industrial Capital LLC USD 400 3.875 % October 15, 2021 400 CNH Industrial Capital LLC USD 500 4.375 % April 05, 2022 500 Hedging effects, bond premium/discount, and unamortized issuance costs (25 ) Total Financial Services $ 3,075 (1) Bond listed on the Irish Stock Exchange. (2) In September 2017, CNH Industrial Finance Europe S.A. Repurchased € 347 million (3) In September 2017, CNH Industrial Finance Europe S.A. Repurchased € 453 million (4) Bond listed on the New York Stock Exchange . A summary of total debt as of December 31, 2017 and 2016, is as follows: 2017 2016 Industrial Activities Financial Services Total Industrial Activities Financial Services Total (in millions) Total Bonds $ 5,810 $ 3,075 $ 8,885 $ 4,944 $ 3,669 $ 8,613 Asset-backed debt 3 12,025 12,028 8 11,776 11,784 Other debt 648 4,334 4,982 1,742 3,137 4,879 Intersegment debt 935 1,641 — 997 1,479 — Total Debt $ 7,396 $ 21,075 $ 25,895 $ 7,691 $ 20,061 $ 25,276 |
Minimum Annual Repayment of Debt | A summary of the minimum annual repayments of debt as of December 31, 2017, for 2018 and thereafter is as follows: Industrial Activities Financial Services Consolidated (in millions) 2018 $ 1,263 $ 10,230 $ 11,493 2019 888 3,244 4,132 2020 41 2,986 3,027 2021 861 2,007 2,868 2022 710 756 1,466 2023 and thereafter 2,698 211 2,909 Intersegment 935 1,641 — Total $ 7,396 $ 21,075 $ 25,895 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017, 2016, and 2015 are as follows: 2017 2016 2015 (in millions) Parent country source $ (212 ) $ (73 ) $ 11 Foreign sources 892 64 556 Income (loss) before taxes and equity in income of unconsolidated subsidiaries and affiliates $ 680 $ (9 ) $ 567 |
Income Taxes - Provision for Income Taxes | The provision for income taxes for the years ended December 31, 2017, 2016 and 2015 consisted of the following: 2017 2016 2015 (in millions) Current income taxes $ 354 $ 229 $ 263 Deferred income taxes 101 69 97 Total income tax provision $ 455 $ 298 $ 360 |
Income Taxes - Reconciliation of Income Tax Expense | A reconciliation of CNH Industrial’s income tax expense for the years ended December 31, 2017, 2016 and 2015 is as follows: 2017 2016 2015 (in millions) Tax provision at the parent statutory rate $ 131 $ (2 ) $ 115 Foreign income taxed at different rates 95 (11 ) 56 Change in valuation allowance 163 133 111 Italian IRAP taxes 17 22 6 Tax contingencies 18 (2 ) 26 Tax credits and incentives (48 ) (88 ) (43 ) Venezuela remeasurement, and impairment and deconsolidation charges 18 16 51 Non-deductible EC Settlement — 160 — Change in tax rate or law 39 14 23 Withholding taxes 6 11 8 Other 16 45 7 Total income tax provision $ 455 $ 298 $ 360 |
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, 2017 and 2016 are as follows: 2017 2016 (in millions) Deferred tax assets: Inventories $ 108 $ 96 Warranty and campaigns 202 183 Allowance for credit losses 184 180 Marketing and sales incentive programs 259 326 Other risk and future charges reserve 312 216 Pension, postretirement and postemployment benefits 408 553 Measurement of derivative financial instruments 1 36 Research and development costs 458 423 Other reserves 339 359 Tax credits and loss carry forwards 684 767 Less: Valuation allowances (1,744 ) (1,490 ) Total deferred tax assets $ 1,211 $ 1,649 Deferred tax liabilities: Property, plant and equipment $ 295 $ 481 Other 195 315 Total deferred tax liabilities 490 796 Net deferred tax assets $ 721 $ 853 Net deferred tax assets are reflected in the accompanying consolidated balance sheets as of December 31, 2017 and 2016 as follows: 2017 2016 (in millions) Deferred tax assets $ 818 $ 937 Deferred tax liabilities (97 ) (84 ) Net deferred tax assets $ 721 $ 853 |
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: 2017 2016 (in millions) Balance, beginning of year $ 318 $ 325 Additions based on tax positions related to the current year 30 30 Additions for tax positions of prior years 16 70 Reductions for tax positions of prior years (21 ) (65 ) Reductions for tax positions as a result of lapse of statute (8 ) (10 ) Settlements (15 ) (32 ) Balance, end of year $ 320 $ 318 |
Employee Benefit Plans and Po40
Employee Benefit Plans and Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016: Pension Healthcare (1) Other (1) 2017 2016 2017 2016 2017 2016 (in millions) Change in benefit obligations: Beginning benefit obligation $ 3,188 $ 3,281 $ 1,105 $ 1,157 $ 418 $ 423 Service cost 30 30 6 7 15 13 Interest cost 74 87 36 39 3 4 Plan participants’ contributions 3 3 7 8 — — Actuarial loss (gain) 44 285 29 (37 ) 13 22 Gross benefits paid (179 ) (221 ) (68 ) (71 ) (37 ) (31 ) Plan amendments — (6 ) — — — — Currency translation adjustments and other 205 (271 ) 5 2 58 (13 ) Ending benefit obligation $ 3,365 $ 3,188 $ 1,120 $ 1,105 $ 470 $ 418 Change in the fair value of plan assets: Beginning plan assets $ 2,328 $ 2,480 $ 111 $ 105 $ — $ — Actual return on plan assets 196 194 19 8 — — Employer contributions 34 35 56 — — — Plan participants’ contributions 3 3 — — — — Gross benefits paid (150 ) (193 ) (2 ) (2 ) — — Currency translation adjustments and other 106 (191 ) — — — — Ending plan assets 2,517 2,328 184 111 — — Funded status: $ (848 ) $ (860 ) $ (936 ) $ (994 ) $ (470 ) $ (418 ) (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, 2017 and 2016: U.S. U.K Germany (1) Other Countries (1) 2017 2016 2017 2016 2017 2016 2017 2016 (in millions) Change in benefit obligations: Beginning benefit obligation $ 1,159 $ 1,208 $ 1,315 $ 1,332 $ 419 $ 438 $ 295 $ 303 Service cost 7 8 7 6 4 3 12 13 Interest cost 37 39 29 37 4 6 4 5 Plan participants’ contributions — — — — — — 3 3 Actuarial loss (gain) 53 27 (15 ) 247 (2 ) 12 8 (1 ) Gross benefits paid (83 ) (120 ) (53 ) (57 ) (28 ) (27 ) (15 ) (17 ) Plan amendments — — — — — — — (6 ) Currency translation adjustments and other — (3 ) 126 (250 ) 56 (13 ) 23 (5 ) Ending benefit obligation $ 1,173 $ 1,159 $ 1,409 $ 1,315 $ 453 $ 419 $ 330 295 Change in the fair value of plan assets: Beginning plan assets $ 1,139 $ 1,182 $ 918 $ 1,028 $ 5 $ 5 $ 266 265 Actual return on plan assets 153 80 29 106 — — 14 8 Employer contributions — — 23 25 — — 11 10 Plan participants’ contributions — — — — — — 3 3 Gross benefits paid (82 ) (120 ) (53 ) (57 ) — — (15 ) (16 ) Currency translation adjustments and other (3 ) (3 ) 88 (184 ) — — 21 (4 ) Ending plan assets $ 1,207 $ 1,139 $ 1,005 $ 918 $ 5 $ 5 $ 300 $ 266 Funded status: $ 34 $ (20 ) $ (404 ) $ (397 ) $ (448 ) $ (414 ) $ (30 ) $ (29 ) (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, 2017 and 2016 consist of: Pension Healthcare Other 2017 2016 2017 2016 2017 2016 (in millions) Other assets $ 46 $ 4 $ — $ — $ — $ — Pension, postretirement and other postemployment benefits (894 ) (864 ) (936 ) (994 ) (470 ) (418 ) Net liability recognized at end of year $ (848 ) $ (860 ) $ (936 ) $ (994 ) $ (470 ) $ (418 ) |
Pre-tax Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | Pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 2017 consist of: Pension Healthcare Other (in millions) Unrecognized actuarial losses $ 943 $ 154 $ 96 Unrecognized prior service credit (9 ) (4 ) (4 ) Accumulated other comprehensive loss $ 934 $ 150 $ 92 |
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 2017 2016 (in millions) Accumulated benefit obligation $ 1,968 $ 3,011 Fair value of plan assets $ 1,146 $ 2,183 |
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 2017 2016 2017 2016 2017 2016 (in millions) Projected benefit obligation $ 2,130 $ 3,119 $ 1,119 $ 1,105 $ 470 $ 418 Fair value of plan assets $ 1,236 $ 2,254 $ 184 $ 111 $ — $ — |
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, 2017, 2016, and 2015: Pension Healthcare Other 2017 2016 2015 2017 2016 2015 2017 2016 2015 (in millions) Service cost $ 30 $ 30 $ 30 $ 6 $ 7 $ 8 $ 15 $ 13 $ 15 Interest cost 74 87 112 36 39 48 3 4 5 Expected return on assets (111 ) (113 ) (140 ) (7 ) (6 ) (7 ) — — — Amortization of: Prior service cost (credit) (1 ) — — (2 ) (4 ) (10 ) 1 (1 ) 1 Actuarial loss (gain) 90 76 83 6 15 26 5 8 (7 ) Settlement loss and other 4 — — — — — 2 1 — Net periodic benefit cost $ 86 $ 80 $ 85 $ 39 $ 51 $ 65 $ 26 $ 25 $ 14 |
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 2017 consist of: Pension Healthcare Other (in millions) Net periodic benefit cost $ 86 $ 39 $ 26 Benefit adjustments included in other comprehensive (income) loss: Net actuarial losses (gains) (42 ) 17 11 Amortization of actuarial losses (91 ) (5 ) (5 ) Amortization of prior service (cost) credit 1 2 (1 ) Currency translation adjustments and other 61 — 11 Total recognized in other comprehensive (income) loss (71 ) 14 16 Total recognized in comprehensive loss $ 15 $ 53 $ 42 |
Pre-tax Amounts Expected to be Amortized from Accumulated Other Comprehensive Income (Loss) | Pre-tax amounts expected to be amortized in 2018 from accumulated other comprehensive loss consist of: Pension Healthcare Other (in millions) Actuarial losses $ 75 $ 7 $ 1 Prior service cost (credit) (1 ) (2 ) 1 Total $ 74 $ 5 $ 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, 2017 and 2016, and the net periodic benefit cost of CNH Industrial’s defined benefit plans for the years ended December 31, 2017, 2016, and 2015: Pension plans Healthcare plans Other (in %) 2017 2016 2015 2017 2016 2015 2017 2016 2015 Assumptions used to determine funded status at December 31 Weighted-average discount rate 2.57 2.82 3.49 3.53 3.97 4.27 1.47 1.54 2.06 Weighted-average rate of compensation increase 3.01 2.95 2.98 n/a 2.50 2.50 1.11 1.19 1.33 Weighted-average, initial healthcare cost trend rate n/a n/a n/a 6.46 6.72 6.98 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 2.15 2.91 3.22 3.96 4.21 3.96 1.67 2.18 1.81 Weighted-average discount rates - interest cost 2.33 2.82 3.22 3.39 3.49 3.96 1.40 1.89 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 long-term rates of return on plan assets 4.74 5.00 5.38 6.25 6.25 6.75 n/a n/a n/a 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 ( * ) 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 2017 Healthcare Plan benefit expense $ 6 $ (5 ) Total increase/(decrease) in accumulated Healthcare benefit obligations as of December 31, 2017 $ 132 $ (108 ) |
Weighted Average Target Asset Allocation for All Plans | Weighted average target asset allocation for all plans for 2017 are as follows: All Plans Asset category: Equity securities 19 % Debt securities 49 % Cash/Other 32 % |
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, 2017: Total Level 1 Level 2 Level 3 (in millions) Equity securities: U.S. equities $ 362 $ 19 $ 343 $ — Non-U.S. equities — — — — Total Equity securities 362 19 343 — Fixed income securities: U.S. government bonds 365 355 10 — U.S. corporate bonds 498 — 498 — Non-U.S. government bonds 55 13 42 — Non-U.S. corporate bonds 95 — 95 — Mortgage backed securities — — — — Other fixed income 9 — 9 — Total Fixed income securities 1,022 368 654 — Other types of investments: Mutual funds (A) 1,090 — 1,090 — Insurance contracts 149 — — 149 Derivatives—credit contracts — — — — Real estate — — — — Total Other types of investments 1,239 — 1,090 149 Cash: 78 17 61 — Total $ 2,701 $ 404 $ 2,148 $ 149 (A) This category includes mutual funds, which primarily invest in non-U.S. equities and non-U.S. corporate bonds. 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 — — — — 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. |
Changes in Level 3 Plan Assets | The following table presents the changes in the Level 3 plan assets for the year ended December 31, 2017: Insurance Contracts Balance at December 31, 2016 $ 135 Actual return on plan assets relating to assets still held at reporting date 6 Purchases 8 Settlements (5 ) Transfers in and/or out of level 3 (3 ) Currency impact 8 Balance at December 31, 2017 $ 149 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 |
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) 2018 $ 186 $ 66 $ — $ 37 2019 180 64 — 35 2020 182 63 — 39 2021 183 64 — 36 2022 179 64 — 36 2023 - 2027 896 337 (1 ) 146 Total $ 1,806 $ 658 $ (1 ) $ 329 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Liabilities | A summary of “Other liabilities” as of December 31, 2017 and 2016 is as follows: 2017 2016 (in millions) Advances on buy-back agreements $ 3,102 $ 2,429 Warranty and campaign programs 1,081 940 Marketing and sales incentive programs 1,335 1,182 Tax payables 765 714 Accrued expenses and deferred income 632 634 Accrued employee benefits 752 633 Legal reserves and other provisions 384 355 Contract reserve 588 407 Restructuring reserve 60 30 Other 701 681 Total $ 9,400 $ 8,005 |
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, 2017 and 2016 are as follows: 2017 2016 (in millions) Balance, beginning of year $ 940 $ 908 Current year additions 782 806 Claims paid (670 ) (706 ) Currency translation adjustment and other 29 (68 ) Balance, end of year $ 1,081 $ 940 |
Schedule of Restructuring Activity | The following table sets forth restructuring activity for the years ended December 31, 2017, 2016 and 2015: Severance and Other Employee Costs Facility Related Costs Other Restructuring Total (in millions) Balance at January 1, 2015 $ 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 Restructuring charges 76 17 — 93 Reserves utilized: cash (53 ) (1 ) — (54 ) Reserves utilized: non-cash (2 ) (13 ) — (15 ) Currency translation adjustments 4 2 — 6 Balance at December 31, 2017 $ 48 $ 12 $ — $ 60 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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) 2018 $ 102 2019 68 2020 54 2021 35 2022 26 2023 and beyond 15 Total minimum rental commitments $ 300 |
Financial Services has Various Agreements to Extend Credit | At December 31, 2017, Financial Services has various agreements to extend credit for the following financing arrangements: Facility Total Credit Limit Utilized Not Utilized (in millions) Wholesale and dealer financing $ 7,094 $ 3,691 $ 3,403 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments All Other Investments [Abstract] | |
Fair Values of Derivatives | The fair values of CNH Industrial’s derivatives at December 31, 2017 and 2016 in the consolidated balance sheets are recorded as follows: 2017 2016 (in millions) Derivatives Designated as Hedging Instruments: Assets: Foreign exchange contracts: $ 53 $ 47 Interest rate derivatives: 7 15 Cross currency swaps: — — Total Assets $ 60 $ 62 Liabilities Foreign exchange contracts: $ (55 ) $ (105 ) Interest rate derivatives: (16 ) (17 ) Total Liabilities $ (71 ) $ (122 ) Derivatives Not Designated as Hedging Instruments: Assets: Foreign exchange contracts: $ 13 $ 31 Interest rate derivatives: 4 2 Total Assets $ 17 $ 33 Liabilities Foreign exchange contracts: $ (22 ) $ (116 ) Interest rate derivatives: (5 ) (11 ) Total Liabilities $ (27 ) $ (127 ) |
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, 2017, 2016, and 2015 are recorded in the following accounts: 2017 2016 2015 (in millions) Fair Value Hedges Interest rate derivatives—Interest expense $ (12 ) $ (33 ) $ (8 ) Gains/(losses) on hedged items—Interest expense $ 12 $ 33 $ 8 Cash Flow Hedges Recognized in accumulated other comprehensive income (effective portion): Foreign exchange contracts—accumulated other comprehensive income $ 48 $ (72 ) $ (19 ) Interest rate derivatives—accumulated other comprehensive income $ 5 $ 13 $ (39 ) Reclassified from accumulated other comprehensive income (effective portion): Foreign exchange contracts—Net sales $ 6 $ 55 $ 16 Foreign exchange contracts—Cost of goods sold $ (47 ) $ (4 ) $ (211 ) Foreign exchange contracts—Other, net $ 10 $ (5 ) $ (10 ) Interest rate derivatives—Interest expense $ — $ (4 ) $ (7 ) Not Designated as Hedges Foreign exchange contracts—Other, net $ (3 ) $ (231 ) $ 115 |
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, 2017 and 2016: Level 1 Level 2 Total 2017 2016 2017 2016 2017 2016 (in millions) Assets Foreign exchange derivatives $ — $ — $ 66 $ 78 $ 66 $ 78 Interest rate derivatives — — 11 17 11 17 Cross currency swaps — — — — — — Available for sale securities 1 1 — — 1 1 Total Assets $ 1 $ 1 $ 77 $ 95 $ 78 $ 96 Liabilities Foreign exchange derivatives $ — $ — $ (77 ) $ (221 ) $ (77 ) $ (221 ) Interest rate derivatives — — (21 ) (28 ) (21 ) (28 ) Total Liabilities $ — $ — $ (98 ) $ (249 ) $ (98 ) $ (249 ) |
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, 2017 and 2016 are as follows: 2017 2016 Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Financing receivables $ 19,842 $ 20,026 $ 18,662 $ 18,554 Debt $ 25,895 $ 26,137 $ 25,276 $ 25,372 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Changes in the Composition of the Share of CHN Industrial | Changes in the composition of the share capital of CNH Industrial during 2017, 2016, and 2015 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, 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 Capital increase 5,271,344 — 5,271,344 Common stock repurchases (3,309,741 ) — (3,309,741 ) Retirement of special voting shares — (23,361,513 ) (23,361,513 ) Total CNH Industrial N.V. shares at December 31, 2017 1,363,592,506 388,906,690 1,752,499,196 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Weighted-Average Assumptions Used under Black-Scholes/Monte Carlo | 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 December 12, 2017 December 22, 2017 Expected Volatility 31.2% 31.1% Dividend yield 0.91% 0.87% Risk-free rate 1.95% 2.01% |
Additional Share Based Compensation Information | The table below provides additional share-based compensation information for the years ended December 31, 2017, 2016, and 2015: 2017 2016 2015 (in millions) Total intrinsic value of options exercised and shares vested $ 23 $ 12 $ 33 Fair value of shares vested $ 17 $ 14 $ 36 Cash received from share award exercises $ 28 $ — $ 8 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, 2017: 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–$10.00 214,574 0.15 $ 8.78 $ 991,332 214,574 0.15 $ 8.78 $ 991,332 $ 991,332 $ 991,332 (A) The difference between the exercise price of share-based compensation and the year-end market price of CNH Industrial common shares of $13.40. 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 December 31, 2017: 2017 Shares Weighted- Average Exercise Price Outstanding at beginning of year 7,210,881 $ 9.51 Forfeited — $ — Expired (3,832,177 ) $ 10.15 Exercised (3,164,130 ) $ 8.78 Outstanding at end of year 214,574 $ 8.78 Exercisable at end of year 214,574 $ 8.78 |
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, 2017: 2017 Performance Shares Weighted Average Grant-Date Fair Value Nonvested at beginning of year 11,725,260 $ 9.23 Granted 6,632,100 $ 9.14 Forfeited/Cancelled (11,725,260 ) $ 9.23 Vested — $ — Nonvested at end of year 6,632,100 $ 9.14 |
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, 2017: 2017 Restricted Shares Weighted Average Grant-Date Fair Value Nonvested at beginning of year 4,232,708 $ 8.14 Granted 3,939,100 $ 13.23 Forfeited (172,706 ) $ 7.77 Vested (1,906,868 ) $ 8.67 Nonvested at end of year 6,092,234 $ 11.38 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings (Loss) Per Share | The following table sets forth the computation of basic EPS and diluted EPS for the years ended December 31, 2017, 2016 and 2015. 2017 2016 2015 (in millions, except per share data) Basic: Net income (loss) attributable to CNH Industrial $ 295 $ (252 ) $ 253 Weighted average common shares outstanding—basic 1,364 1,362 1,361 Basic earnings per share $ 0.22 $ (0.18 ) $ 0.19 Diluted: Net income (loss) attributable to CNH Industrial $ 295 $ (252 ) $ 253 Weighted average common shares outstanding—basic 1,364 1,362 1,361 Effect of dilutive securities (when dilutive): Stock compensation plans 3 — 2 Weighted average common shares outstanding—diluted (A) 1,367 1,362 1,363 Diluted earnings per share $ 0.22 $ (0.18 ) $ 0.19 (A) For the twelve months ended December 31, 2017, 2016, and 2015, 0 million, 7.3 million, and 7.9 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 Comprehensi47
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 Gross Amount Income Taxes Net Amount Unrealized gain on cash flow hedges $ 84 $ 5 $ 89 Changes in retirement plans’ funded status 116 (30 ) 86 Foreign currency translation (401 ) — (401 ) Share of other comprehensive loss of entities using the equity method 32 — 32 Other comprehensive loss $ (169 ) $ (25 ) $ (194 ) 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 ) |
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, 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 ) Other comprehensive income (loss), before reclassifications 56 13 (401 ) — 35 (297 ) Amounts reclassified from other comprehensive income 33 73 — — — 106 Other comprehensive income (loss) 1 89 86 (401 ) — 35 (191 ) Balance, December 31, 2017 $ 1 $ (950 ) $ (891 ) $ — $ (118 ) $ (1,958 ) (1) Excluded from the table above is other comprehensive loss allocated to noncontrolling interests of $3, $3 and $(1) for the years ended December 31, 2017, 2016 and 2015, 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, 2017 and 2016 consisted of the following: Amount Reclassified from Other Comprehensive Income (Loss) Consolidated Statement of Operations line 2017 2016 (in millions) Cash flow hedges $ (6 ) $ (55 ) Net sales 47 4 Cost of goods sold (10 ) 5 Other, net — 4 Interest expense 2 9 Income taxes $ 33 $ (33 ) Change in retirement plans’ funded status: Amortization of actuarial losses $ 101 $ 99 * Amortization of prior service cost (2 ) (5 ) * (26 ) (11 ) Income taxes $ 73 $ 83 Total reclassifications, net of tax $ 106 $ 50 (*) These amounts are included in net periodic pension and other postretirement benefit cost. See “Note 11: Employee Benefit Plans and Postretirement Benefits” for additional information. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017, 2016, and 2015 are provided below. Years Ended December 31, 2017 2016 2015 (in millions) Operating profit $ 1,662 $ 1,439 $ 1,635 Adjustments/reclassifications to convert from operating profit to U.S. GAAP income before income taxes and equity in income of unconsolidated subsidiaries: Restructuring expenses (93 ) (44 ) (84 ) Interest expenses of Industrial Activities, net of interest income and eliminations (484 ) (543 ) (479 ) Other, net (405 ) (861 ) (505 ) Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates under U.S. GAAP $ 680 $ (9 ) $ 567 |
Summary of Operating Segment Information | A summary of additional operating segment information as of and for the years ended December 31, 2017, 2016, and 2015 is as follows: Years Ended December 31, 2017 2016 2015 (in millions) Revenues: Agricultural Equipment $ 11,130 $ 10,120 $ 11,025 Construction Equipment 2,626 2,304 2,542 Commercial Vehicles 10,415 9,553 9,542 Powertrain 4,372 3,707 3,560 Eliminations and other (2,375 ) (2,015 ) (1,992 ) Net sales of Industrial Activities 26,168 23,669 24,677 Financial Services 1,625 1,570 1,603 Eliminations and other (432 ) (367 ) (368 ) Total Revenues $ 27,361 $ 24,872 $ 25,912 Depreciation and Amortization (*): Agricultural Equipment $ 316 $ 309 $ 303 Construction Equipment 65 69 70 Commercial Vehicles 211 208 198 Powertrain 127 124 123 Other activities and adjustments 1 — — Depreciation and amortization of Industrial Activities 720 710 694 Financial Services 5 6 5 Depreciation and amortization $ 725 $ 716 $ 699 Expenditures for long-lived assets (*): Agricultural Equipment $ 208 $ 194 $ 308 Construction Equipment 36 36 47 Commercial Vehicles 152 173 182 Powertrain 90 96 112 Other activities 2 2 4 Expenditures for long-lived assets of Industrial Activities 488 501 653 Financial Services 4 2 3 Expenditures for long-lived assets $ 492 $ 503 $ 656 ( * ) 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: 2017 2016 2015 (in millions) United States $ 4,670 $ 4,628 $ 5,533 Italy 3,052 2,874 2,524 France 2,635 2,608 2,580 Brazil 1,788 1,587 1,670 Germany 1,751 1,574 1,565 Canada 1,226 1,182 1,229 Australia 1,068 947 846 Spain 1,003 921 810 Argentina 986 680 768 Poland 506 435 479 Other 7,790 6,594 6,900 Total Revenues from external customers in the rest of world $ 26,475 $ 24,030 $ 24,904 |
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, 2017 2016 (in millions) United States $ 4,850 $ 5,081 Italy 1,667 1,510 France 931 805 Germany 885 808 Spain 775 625 Canada 565 519 Brazil 386 436 China 278 280 Other 1,482 1,242 Total Long-lived assets in the rest of the world $ 11,819 $ 11,306 |
Operating Segments [Member] | |
Schedule of Profit by Reportable Segment | The following summarizes operating profit by reportable segment: Years Ended December 31, 2017 2016 2015 (in millions) Agricultural Equipment $ 949 $ 818 $ 952 Construction Equipment 21 2 90 Commercial Vehicles 272 333 283 Powertrain 362 232 186 Eliminations and other (85 ) (94 ) (79 ) Total Operating profit of Industrial Activities $ 1,519 $ 1,291 $ 1,432 Financial Services 479 478 515 Eliminations and other (336 ) (330 ) (312 ) Operating profit $ 1,662 $ 1,439 $ 1,635 |
Related Party Information (Tabl
Related Party Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | These transactions with FCA are reflected in the Company’s consolidated financial statements as follows: 2017 2016 2015 (in millions) Net sales $ 699 $ 806 $ 762 Cost of goods sold $ 444 $ 466 $ 463 Selling, general and administrative expenses $ 155 $ 148 $ 161 12/31/2017 12/31/2016 (in millions) Trade receivables $ 17 $ 11 Trade payables $ 96 $ 105 2017 2016 2015 (in millions) Net sales $ 1,028 $ 782 $ 700 Cost of goods sold $ 446 $ 392 $ 430 12/31/2017 12/31/2016 (in millions) Trade receivables $ 102 $ 113 Trade payables $ 97 $ 108 |
Supplemental Information (Table
Supplemental Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Supplemental Information of Income Statement | Statement of Operations Industrial Activities Financial Services 2017 2016 2015 2017 2016 2015 (in millions) Revenues Net sales $ 26,168 $ 23,669 $ 24,677 $ — $ — $ — Finance and interest income 122 153 201 1,625 1,570 1,603 Total Revenues $ 26,290 $ 23,822 $ 24,878 $ 1,625 $ 1,570 $ 1,603 Costs and Expenses Cost of goods sold 21,621 19,539 20,357 — — — Selling, general & administrative expenses 2,071 1,979 2,032 259 283 285 Research and development expenses 957 860 856 — — — Restructuring expenses 90 43 82 3 1 2 Interest expense 604 694 678 555 521 576 Interest compensation to Financial Services 338 332 314 — — — Other, net 396 855 497 341 294 235 Total Costs and Expenses $ 26,077 $ 24,302 $ 24,816 $ 1,158 $ 1,099 $ 1,098 Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates 213 (480 ) 62 467 471 505 Income tax (expense) (413 ) (137 ) (202 ) (42 ) (161 ) (158 ) Equity income of unconsolidated subsidiaries and affiliates 61 34 20 27 24 21 Results from intersegment investments 452 334 368 — — — Net income (loss) $ 313 $ (249 ) $ 248 $ 452 $ 334 $ 368 |
Supplemental Information of Balance Sheet | Balance Sheets Industrial Activities Financial Services 2017 2016 2017 2016 (in millions) ASSETS Cash and cash equivalents $ 4,901 $ 4,649 $ 529 $ 368 Restricted cash — — 770 837 Trade receivables 490 596 53 58 Financing receivables 1,718 1,592 20,699 19,546 Inventories, net 6,064 5,396 216 213 Property, plant and equipment, net 7,001 6,395 2 2 Investments in unconsolidated subsidiaries and affiliates 3,173 2,886 205 153 Equipment under operating leases 35 17 1,810 1,890 Goodwill 2,316 2,296 156 153 Other intangible assets, net 779 772 13 15 Deferred tax assets 835 1,060 198 188 Derivative assets 73 98 14 8 Other assets 1,706 1,505 358 382 TOTAL ASSETS $ 29,091 $ 27,262 $ 25,023 $ 23,813 LIABILITIES AND EQUITY Debt $ 7,396 $ 7,691 $ 21,075 $ 20,061 Trade payables 5,936 5,042 193 180 Deferred tax liabilities 97 84 215 310 Pension, postretirement and other postemployment benefits 2,280 2,256 20 20 Derivative liability 88 239 20 21 Other liabilities 8,869 7,478 686 669 TOTAL LIABILITIES $ 24,666 $ 22,790 $ 22,209 $ 21,261 Equity 4,400 4,451 2,814 2,552 Redeemable noncontrolling interest 25 21 — — TOTAL LIABILITIES AND EQUITY $ 29,091 $ 27,262 $ 25,023 $ 23,813 |
Supplemental Information of Cash Flow | Cash Flow Statements Industrial Activities Financial Services 2017 2016 2015 2017 2016 2015 (in millions) Operating activities: Net income (loss) $ 313 $ (249 ) $ 248 $ 452 $ 334 $ 368 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 720 710 694 5 6 5 Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments 328 284 238 297 261 209 (Gain) loss from disposal of assets 27 4 (2 ) — — — Loss on repurchase of Notes 56 60 — 8 — — Undistributed income (loss) of unconsolidated subsidiaries (107 ) 37 (104 ) (27 ) (25 ) (17 ) Other non-cash items 208 73 213 87 122 118 Changes in operating assets and liabilities: Provisions 239 42 (61 ) (6 ) 4 13 Deferred income taxes 217 43 59 (95 ) 22 60 Trade and financing receivables related to sales, net 147 (7 ) 354 (821 ) (95 ) (50 ) Inventories, net (211 ) 141 507 (2 ) (35 ) (34 ) Trade payables 359 121 (162 ) 8 (19 ) 4 Other assets and liabilities 120 460 112 50 155 220 Net cash provided (used) by operating activities 2,416 1,719 2,096 (44 ) 730 896 Investing activities: Additions to retail receivables — — — (4,078 ) (3,951 ) (4,498 ) Collections of retail receivables — — — 4,384 4,569 5,146 Proceeds from sale of assets, net of assets sold under operating leases and assets sold under buy-back commitments 17 12 11 — — — Proceeds from sale of assets under operating leases and assets sold under buy-back commitments 374 234 320 476 426 406 Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and sold under buy-back commitments (488 ) (501 ) (653 ) (4 ) (2 ) (3 ) Expenditures for assets under operating lease and assets sold under buy-back commitments (1,079 ) (884 ) (875 ) (664 ) (747 ) (976 ) Other (274 ) 380 2,151 358 (562 ) (2,019 ) Net cash provided (used) by investing activities (1,450 ) (759 ) 954 472 (267 ) (1,944 ) Financing activities: Proceeds from long-term debt 2,006 1,754 650 13,890 10,875 9,277 Payments of long-term debt (2,580 ) (2,085 ) (2,483 ) (14,222 ) (11,685 ) (8,185 ) Net increase (decrease) in other financial liabilities (308 ) (219 ) 51 362 87 45 Dividends paid (168 ) (207 ) (297 ) (357 ) (341 ) (207 ) Other (25 ) (58 ) 23 46 105 43 Net cash provided (used) by financing activities (1,075 ) (815 ) (2,056 ) (281 ) (959 ) 973 Effect of foreign exchange rate changes on cash and cash equivalents 361 (47 ) (565 ) 14 31 (133 ) Increase (decrease) in cash and cash equivalents 252 98 429 161 (465 ) (208 ) Cash and cash equivalents, beginning of year 4,649 4,551 4,122 368 833 1,041 Cash and cash equivalents, end of year $ 4,901 $ 4,649 $ 4,551 $ 529 $ 368 $ 833 |
Nature of Operations - Addition
Nature of Operations - Additional Information (Detail) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013€ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2017€ / shares | Dec. 31, 2016€ / 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 Accoun52
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)VEF / $ | Dec. 31, 2015USD ($) | Mar. 31, 2016VEF / $ | Feb. 29, 2016VEF / $ | |
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 | $ 165,000,000 | $ 145,000,000 | $ 155,000,000 | ||
Foreign currency transaction net gain | 50,000,000 | ||||
Foreign currency transaction net loss | 78,000,000 | 581,000,000 | |||
Net loss realized on foreign currency | 140,000,000 | 149,000,000 | 289,000,000 | ||
Impairment of non-monetary assets | 34,000,000 | ||||
CNH paid interest | 896,000,000 | 930,000,000 | 945,000,000 | ||
Loss on repurchase of Notes | 64,000,000 | 60,000,000 | |||
CNH paid taxes | 224,000,000 | 104,000,000 | 345,000,000 | ||
Gain Loss at the time of securitization | 0 | ||||
Impairment of goodwill and other intangible assets | $ 0 | 0 | |||
ASU 2014-09, Revenue from Contracts with Customers (ASC 606) | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Preliminary impact of adopting the new standard on the net equity | 100,000,000 | ||||
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 | $ 64,000,000 | 60,000,000 | |||
Venezuelan Bolivar Fuerte [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Foreign currency transaction net loss | 5,000,000 | 27,000,000 | 150,000,000 | ||
ARGENTINA | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Foreign currency transaction net loss | 21,000,000 | $ 22,000,000 | $ 40,000,000 | ||
Venezuelan Bolivar Fuerte [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Deconsolidate non-cash pretax charge | $ 92,000,000 | ||||
Venezuelan Bolivar Fuerte [Member] | Subsidiaries | |||||
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 | ||||
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 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Estimated Useful Lives of Respective Assets (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017USD ($)ContractAccount | Dec. 31, 2016USD ($)ContractAccount | Dec. 31, 2015USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade receivables | $ 496 | $ 623 | |
Allowances for doubtful accounts | $ 109 | 104 | |
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 classified as TDRs | Contract | 272 | 238 | |
Finance lease receivable, pre-modification value | $ 9 | ||
Finance lease receivable, post-modification value | $ 8 | ||
Pre-modification value of retail and finance lease receivable contracts | $ 4 | ||
Post-modification value of retail and finance lease receivable contracts | $ 4 | ||
Number of accounts bankruptcy proceedings with no concession | Account | 423 | 420 | |
Bankruptcy proceeding amount concession not yet determined | $ 24 | $ 24 | |
EMEA [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retail and finance lease receivable contracts that are classified as trouble debt restructuring | 11 | 23 | |
LATAM [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retail and finance lease receivable contracts that are classified as trouble debt restructuring | $ 19 | $ 19 | |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, net | $ 19,842 | $ 18,662 | $ 19,001 |
Retail [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, net | 9,725 | 9,949 | 10,344 |
Wholesale [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, net | 10,048 | 8,583 | 8,611 |
Other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, net | $ 69 | $ 130 | $ 46 |
Receivables - Maturities of Fin
Receivables - Maturities of Financing Receivables (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | |||
2,018 | $ 13,121 | ||
2,019 | 2,523 | ||
2,020 | 1,815 | ||
2,021 | 1,273 | ||
2,022 | 878 | ||
2023 and thereafter | 232 | ||
Total | $ 19,842 | $ 18,662 | $ 19,001 |
Receivables - Summary of Aging
Receivables - Summary of Aging of Receivables (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | $ 19,842 | $ 18,662 | $ 19,001 |
Retail [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 54 | 42 | |
Current | 9,606 | 9,802 | |
Total | 9,725 | 9,949 | 10,344 |
Retail [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 9,660 | 9,844 | |
Retail [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 65 | 105 | |
Retail [Member] | NAFTA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 35 | 27 | |
Current | 6,671 | 7,172 | |
Total | 6,731 | 7,231 | |
Retail [Member] | NAFTA [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 6,706 | 7,199 | |
Retail [Member] | NAFTA [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 25 | 32 | |
Retail [Member] | EMEA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 11 | ||
Current | 261 | 348 | |
Total | 272 | 348 | |
Retail [Member] | EMEA [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 272 | 348 | |
Retail [Member] | LATAM [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 8 | 14 | |
Current | 1,851 | 1,662 | |
Total | 1,899 | 1,749 | |
Retail [Member] | LATAM [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 1,859 | 1,676 | |
Retail [Member] | LATAM [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 40 | 73 | |
Retail [Member] | APAC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1 | ||
Current | 823 | 620 | |
Total | 823 | 621 | |
Retail [Member] | APAC [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 823 | 621 | |
Retail [Member] | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 37 | 42 | |
Retail [Member] | 30-59 Days Past Due | NAFTA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 26 | 27 | |
Retail [Member] | 30-59 Days Past Due | EMEA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3 | ||
Retail [Member] | 30-59 Days Past Due | LATAM [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 8 | 14 | |
Retail [Member] | 30-59 Days Past Due | APAC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1 | ||
Retail [Member] | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 13 | ||
Retail [Member] | 60-89 Days Past Due | NAFTA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 9 | ||
Retail [Member] | 60-89 Days Past Due | EMEA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4 | ||
Retail [Member] | Greater Than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4 | ||
Retail [Member] | Greater Than 90 Days | EMEA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4 | ||
Wholesale [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 43 | 39 | |
Current | 9,955 | 8,480 | |
Total | 10,048 | 8,583 | $ 8,611 |
Wholesale [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 9,998 | 8,519 | |
Wholesale [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 50 | 64 | |
Wholesale [Member] | NAFTA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 3,692 | 3,591 | |
Total | 3,733 | 3,630 | |
Wholesale [Member] | NAFTA [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 3,692 | 3,591 | |
Wholesale [Member] | NAFTA [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 41 | 39 | |
Wholesale [Member] | EMEA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 39 | 31 | |
Current | 5,061 | 3,847 | |
Total | 5,109 | 3,901 | |
Wholesale [Member] | EMEA [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 5,100 | 3,878 | |
Wholesale [Member] | EMEA [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 9 | 23 | |
Wholesale [Member] | LATAM [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 619 | 594 | |
Total | 619 | 596 | |
Wholesale [Member] | LATAM [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 619 | 594 | |
Wholesale [Member] | LATAM [Member] | Nonperforming Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 2 | ||
Wholesale [Member] | APAC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4 | 8 | |
Current | 583 | 448 | |
Total | 587 | 456 | |
Wholesale [Member] | APAC [Member] | Performing Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 587 | 456 | |
Wholesale [Member] | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 27 | 31 | |
Wholesale [Member] | 30-59 Days Past Due | EMEA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 23 | 29 | |
Wholesale [Member] | 30-59 Days Past Due | APAC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4 | 2 | |
Wholesale [Member] | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 12 | 2 | |
Wholesale [Member] | 60-89 Days Past Due | EMEA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 12 | 2 | |
Wholesale [Member] | Greater Than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4 | 6 | |
Wholesale [Member] | Greater Than 90 Days | EMEA [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 4 | ||
Wholesale [Member] | Greater Than 90 Days | APAC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 6 |
Receivables - Allowance for Cre
Receivables - Allowance for Credit Losses Activity (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Opening balance | $ 574 | $ 552 | $ 650 |
Provision | 83 | 112 | 108 |
Charge-offs, net of recoveries | (118) | (96) | (105) |
Foreign currency translation and other | 44 | 6 | (101) |
Ending balance | 583 | 574 | 552 |
Ending balance: Individually evaluated for impairment | 376 | 328 | 312 |
Ending balance: Collectively evaluated for impairment | 207 | 246 | 240 |
Financing receivables, net | 19,842 | 18,662 | 19,001 |
Ending balance: Individually evaluated for impairment | 887 | 808 | 1,183 |
Ending balance: Collectively evaluated for impairment | 18,955 | 17,854 | 17,818 |
Retail [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Opening balance | 374 | 394 | 468 |
Provision | 72 | 52 | 81 |
Charge-offs, net of recoveries | (103) | (82) | (92) |
Foreign currency translation and other | 40 | 10 | (63) |
Ending balance | 383 | 374 | 394 |
Ending balance: Individually evaluated for impairment | 212 | 179 | 187 |
Ending balance: Collectively evaluated for impairment | 171 | 195 | 207 |
Financing receivables, net | 9,725 | 9,949 | 10,344 |
Ending balance: Individually evaluated for impairment | 347 | 317 | 416 |
Ending balance: Collectively evaluated for impairment | 9,378 | 9,632 | 9,928 |
Wholesale [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Opening balance | 200 | 158 | 182 |
Provision | 11 | 60 | 27 |
Charge-offs, net of recoveries | (15) | (14) | (13) |
Foreign currency translation and other | 4 | (4) | (38) |
Ending balance | 200 | 200 | 158 |
Ending balance: Individually evaluated for impairment | 164 | 149 | 125 |
Ending balance: Collectively evaluated for impairment | 36 | 51 | 33 |
Financing receivables, net | 10,048 | 8,583 | 8,611 |
Ending balance: Individually evaluated for impairment | 540 | 491 | 767 |
Ending balance: Collectively evaluated for impairment | 9,508 | 8,092 | 7,844 |
Other [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing receivables, net | 69 | 130 | 46 |
Ending balance: Collectively evaluated for impairment | $ 69 | $ 130 | $ 46 |
Receivables - Investment in Imp
Receivables - Investment in Impaired Receivables (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Retail [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | $ 212 | $ 179 |
Recorded Investment, Total | 347 | 317 |
Unpaid Principal Balance, Total | 345 | 316 |
Average recorded investment, Total | 352 | 325 |
Retail [Member] | NAFTA [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | 18 | 18 |
With an allowance recorded, Recorded Investment | 39 | 31 |
With an allowance recorded, Unpaid Principal Balance | 37 | 30 |
With an allowance recorded, Average recorded investment | 41 | 31 |
Retail [Member] | EMEA [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance recorded, Recorded Investment | 90 | |
With no related allowance recorded, Unpaid Principal Balance | 90 | |
Related Allowance, Total | 170 | 143 |
With no related allowance recorded, Average recorded investment | 74 | |
With an allowance recorded, Recorded Investment | 260 | 171 |
With an allowance recorded, Unpaid Principal Balance | 260 | 171 |
With an allowance recorded, Average recorded investment | 277 | 195 |
Retail [Member] | LATAM [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | 22 | 17 |
With an allowance recorded, Recorded Investment | 45 | 23 |
With an allowance recorded, Unpaid Principal Balance | 45 | 23 |
With an allowance recorded, Average recorded investment | 32 | 23 |
Retail [Member] | APAC [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | 2 | 1 |
With an allowance recorded, Recorded Investment | 3 | 2 |
With an allowance recorded, Unpaid Principal Balance | 3 | 2 |
With an allowance recorded, Average recorded investment | 2 | 2 |
Wholesale [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | 164 | 149 |
Recorded Investment, Total | 540 | 491 |
Unpaid Principal Balance, Total | 527 | 483 |
Average recorded investment, Total | 524 | 460 |
Wholesale [Member] | NAFTA [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | 3 | 4 |
With an allowance recorded, Recorded Investment | 44 | 44 |
With an allowance recorded, Unpaid Principal Balance | 44 | 43 |
With an allowance recorded, Average recorded investment | 49 | 46 |
Wholesale [Member] | EMEA [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | 134 | 131 |
With an allowance recorded, Recorded Investment | 457 | 420 |
With an allowance recorded, Unpaid Principal Balance | 457 | 420 |
With an allowance recorded, Average recorded investment | 443 | 378 |
Wholesale [Member] | LATAM [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | 21 | 12 |
With an allowance recorded, Recorded Investment | 30 | 22 |
With an allowance recorded, Unpaid Principal Balance | 17 | 15 |
With an allowance recorded, Average recorded investment | 28 | 18 |
Wholesale [Member] | APAC [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance, Total | 6 | 2 |
With an allowance recorded, Recorded Investment | 9 | 5 |
With an allowance recorded, Unpaid Principal Balance | 9 | 5 |
With an allowance recorded, Average recorded investment | $ 4 | $ 18 |
Receivable - Carrying Amount of
Receivable - Carrying Amount of Receivables (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Restricted Receivables | $ 14,022 | $ 13,585 |
Retail note and finance lease receivables [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Restricted Receivables | 6,833 | 7,140 |
Wholesale [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Restricted Receivables | $ 7,189 | $ 6,445 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,278 | $ 1,185 |
Work-in-process | 601 | 757 |
Finished goods | 4,401 | 3,667 |
Total Inventories | $ 6,280 | $ 5,609 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | $ 16,886 | $ 14,968 |
Accumulated depreciation | (9,883) | (8,571) |
Net property, plant and equipment | 7,003 | 6,397 |
Land and industrial buildings [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | 3,472 | 3,075 |
Plant, machinery and equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | 8,659 | 7,959 |
Assets sold with buy-back commitment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | 3,820 | 3,021 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | 101 | 131 |
Other [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | $ 834 | $ 782 |
Property, Plant and Equipment63
Property, Plant and Equipment - Summary of Property, Plant and Equipment Recorded under Finance Leases (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Capital Leases Balance Sheet Assets By Major Class Net Lessee Balance Sheet [Abstract] | |||
Gross capital leases | [1],[2] | $ 100 | $ 169 |
Accumulated depreciation | (36) | (53) | |
Net capital leases | $ 64 | $ 116 | |
[1] | Consists of industrial buildings, plant, machinery and equipment | ||
[2] | Included in property, plant and equipment table above |
Property, Plant and Equipment64
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Line Items] | |||
Depreciation expense | $ 929 | $ 884 | $ 824 |
Acquisition of property, plant and equipment | 101 | 119 | |
Property, Plant and Equipment, Excluding Assets Sold Under a Buy-Back Commitment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Depreciation expense | 610 | 605 | 592 |
Assets sold with buy-back commitment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Impairment losses on assets sold with a buy-back commitment | $ 86 | $ 56 | $ 29 |
Investments in Unconsolidated65
Investments in Unconsolidated Subsidiaries and Affiliates - Summary of Investments in Unconsolidated Subsidiaries and Affiliates (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investments In And Advances To Affiliates Schedule Of Investments [Abstract] | ||
Equity method | $ 555 | $ 479 |
Cost method | 6 | 8 |
Total | $ 561 | $ 487 |
Investments in Unconsolidated66
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments In And Advances To Affiliates Schedule Of Investments [Abstract] | |||
Net revenue | $ 3,273 | $ 3,670 | $ 3,911 |
Income before taxes | 265 | 99 | 127 |
Net income | 198 | 48 | $ 68 |
Total Assets | 7,441 | 6,919 | |
Total Liabilities | 6,216 | 5,758 | |
Total Equity | $ 1,225 | $ 1,161 |
Investments in Unconsolidated67
Investments in Unconsolidated Subsidiaries and Affiliates - Additional Information (Detail) | Dec. 31, 2017 |
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, 2017 | Dec. 31, 2016 |
Property Subject To Or Available For Operating Lease Net [Abstract] | ||
Equipment on operating leases | $ 2,240 | $ 2,253 |
Accumulated depreciation | (395) | (346) |
Net equipment on operating leases | $ 1,845 | $ 1,907 |
Equipment on Operating Leases69
Equipment on Operating Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Subject To Or Available For Operating Lease Net [Abstract] | |||
Depreciation expense on equipment on operating leases | $ 305 | $ 267 | $ 215 |
Equipment on Operating Leases70
Equipment on Operating Leases - Lease Payments Owed for Equipment Under Operating Leases (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Operating Leases Future Minimum Payments Receivable [Abstract] | |
2,018 | $ 175 |
2,019 | 109 |
2,020 | 59 |
2,021 | 29 |
2,022 | 7 |
Beyond 5 years | 1 |
Total | $ 380 |
Goodwill and Other Intangible71
Goodwill and Other Intangibles - Changes in the Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | ||
Balance at beginning | $ 2,449 | $ 2,447 |
Impact of foreign exchange and other | 23 | 2 |
Balance at ending | 2,472 | 2,449 |
Agricultural Equipment [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 1,648 | 1,645 |
Impact of foreign exchange and other | 6 | 3 |
Balance at ending | 1,654 | 1,648 |
Construction Equipment [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 588 | 588 |
Impact of foreign exchange and other | 5 | |
Balance at ending | 593 | 588 |
Commercial Vehicles [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning | 55 | 57 |
Impact of foreign exchange and other | 9 | (2) |
Balance at ending | 64 | 55 |
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 | 153 | 152 |
Impact of foreign exchange and other | 3 | 1 |
Balance at ending | $ 156 | $ 153 |
Goodwill and Other Intangible72
Goodwill and Other Intangibles - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017USD ($)ReportingUnit | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Goodwill [Line Items] | |||
Impairment of goodwill and other intangible assets | $ 0 | $ 0 | |
Percentage of goodwill used for impairment testing | 97.00% | ||
Number of reporting units at maximum risk for impairment | ReportingUnit | 0 | ||
Amortization expense | $ 115,000,000 | $ 111,000,000 | $ 107,000,000 |
Amortization expense in 2018 | 109,000,000 | ||
Amortization expense in 2019 | 91,000,000 | ||
Amortization expense in 2020 | 64,000,000 | ||
Amortization expense in 2021 | 54,000,000 | ||
Amortization expense in 2022 | $ 44,000,000 | ||
Minimum [Member] | |||
Goodwill [Line Items] | |||
Indefinite-lived intangible assets including goodwill, excess of fair value over carrying value percentage | 30.00% | ||
Agricultural Equipment Segment [Member] | |||
Goodwill [Line Items] | |||
Percentage of goodwill used for impairment testing | 67.00% | ||
Construction Equipment Segment [Member] | |||
Goodwill [Line Items] | |||
Percentage of goodwill used for impairment testing | 24.00% | ||
Financial Services Segment [Member] | |||
Goodwill [Line Items] | |||
Percentage of goodwill used for impairment testing | 6.00% |
Goodwill and Other Intangible73
Goodwill and Other Intangibles - Other Intangible Assets and Related Accumulated Amortization (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, Gross | $ 2,162 | $ 1,965 |
Other intangible assets subject to amortization, Accumulated Amortization | 1,643 | 1,452 |
Other intangible assets subject to amortization, Net | 519 | 513 |
Total other intangible assets, Gross | 2,435 | 2,239 |
Total other intangible assets, Net | $ 792 | 787 |
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 | $ 273 | 274 |
Dealer networks [Member] | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, Gross | 328 | 316 |
Other intangible assets subject to amortization, Accumulated Amortization | 199 | 168 |
Other intangible assets subject to amortization, Net | $ 129 | 148 |
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 | $ 1,834 | 1,649 |
Other intangible assets subject to amortization, Accumulated Amortization | 1,444 | 1,284 |
Other intangible assets subject to amortization, Net | $ 390 | $ 365 |
Patents, concessions and licenses and other [Member] | Minimum [Member] | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, Weighted Average Life | 5 years | |
Patents, concessions and licenses and other [Member] | Maximum [Member] | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, Weighted Average Life | 25 years |
Debt - Additional Information (
Debt - Additional Information (Detail) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||||
Nov. 30, 2017USD ($) | Sep. 30, 2017EUR (€) | May 31, 2017EUR (€) | Apr. 30, 2017USD ($) | Mar. 31, 2017EUR (€) | Oct. 31, 2016USD ($) | Aug. 31, 2016USD ($) | May 31, 2016EUR (€) | Apr. 30, 2016EUR (€) | Mar. 31, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2010USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016EUR (€) | |
Debt Instrument [Line Items] | ||||||||||||||||
Weighted-average interest rate on consolidated debt | 3.20% | 3.10% | 3.20% | |||||||||||||
Debt | $ 25,276 | $ 25,895 | ||||||||||||||
Debt instrument aggregate principal amount outstanding | 115 | |||||||||||||||
Financial services [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt | 20,061 | 21,075 | ||||||||||||||
Other debt | 1,400 | 1,600 | ||||||||||||||
CNH Industrial [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Revolving credit facility, amount | $ 500 | |||||||||||||||
Debt instrument, maturity date | 2,027 | |||||||||||||||
Bonds, interest rate | 3.85% | |||||||||||||||
Debt instrument principal amount of issue price percentage | 99.384% | |||||||||||||||
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 | |||||||||||||||
Debt | 600 | |||||||||||||||
2.875% Notes [Member] | Global Medium Term Note Programme [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument borrowing capacity amount | € | € 10,000 | |||||||||||||||
2.875% 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 | € | € 500 | |||||||||||||||
Bonds, interest rate | 2.875% | |||||||||||||||
Bonds, maturity month and year | 2023-05 | |||||||||||||||
7.875% Senior Notes [Member] | Case New Holland Industrial Inc. (formerly Case New Holland Inc.) [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Revolving credit facility, amount | $ 1,500 | |||||||||||||||
Bonds, maturity year | 2,017 | |||||||||||||||
Bonds, interest rate | 7.875% | |||||||||||||||
Debt repurchased | $ 450 | $ 414 | ||||||||||||||
Aggregate principal amount | $ 636 | |||||||||||||||
Debt instrument charge | $ 17 | |||||||||||||||
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 | |||||||||||||||
1.625% CIFE Notes [Member] | Global Medium Term Note Programme [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument borrowing capacity amount | € | € 10,000 | |||||||||||||||
Debt instrument principal amount of issue price percentage | 99.407% | |||||||||||||||
1.625% 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 | € | € 75 | |||||||||||||||
Bonds, maturity year | 2,022 | |||||||||||||||
Bonds, interest rate | 1.625% | |||||||||||||||
Four Point Three Seven Five Percentage Notes | CNH Industrial Capital LLC (formerly CNH Capital LLC) [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Revolving credit facility, amount | $ 500 | |||||||||||||||
Bonds, maturity year | 2,022 | |||||||||||||||
Bonds, interest rate | 4.375% | |||||||||||||||
1.375% Notes [Member] | Global Medium Term Note Programme [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument borrowing capacity amount | € | € 10,000 | |||||||||||||||
Debt instrument principal amount of issue price percentage | 99.335% | |||||||||||||||
1.375% 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 | |||||||||||||||
Bonds, maturity year | 2,022 | |||||||||||||||
Bonds, interest rate | 1.375% | |||||||||||||||
1.750% Note [Member] | Global Medium Term Note Programme [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument borrowing capacity amount | € | € 10,000 | |||||||||||||||
Debt instrument principal amount of issue price percentage | 99.248% | |||||||||||||||
1.750% Note [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 | € | € 650 | |||||||||||||||
Bonds, maturity year | 2,025 | |||||||||||||||
Bonds, interest rate | 1.75% | |||||||||||||||
Six Point Two Five Percent Notes Issued | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Bonds, maturity year | 2,018 | |||||||||||||||
Bonds, interest rate | 6.25% | |||||||||||||||
Debt repurchase amount | € | € 800 | |||||||||||||||
Two Point Seven Five Percentage Notes | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Bonds, maturity year | 2,019 | |||||||||||||||
Bonds, interest rate | 2.75% | |||||||||||||||
Revolving Credit Facility [Member] | New Credit Facility [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Credit facility, term | 5 years | |||||||||||||||
Revolving credit facility, amount | 2,100 | € 1,750 | ||||||||||||||
Debt instrument, maturity date | 2,021 | |||||||||||||||
Asset-Backed Facilities [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Credit facility | $ 3,200 | 3,500 | ||||||||||||||
Credit facility utilized amount | 2,500 | 2,300 | ||||||||||||||
Financial Services Segment [Member] | Unsecured Credit Facilities [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Credit facility | $ 2,900 | $ 3,200 |
Debt - Summary of Issued Bond O
Debt - Summary of Issued Bond Outstanding (Detail) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | ||
Debt Instrument [Line Items] | ||||
Debt | $ 25,895 | $ 25,276 | ||
Industrial Activities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | 7,396 | 7,691 | ||
Hedging effects, bond premium/discount, and unamortized issuance costs | (57) | |||
Industrial Activities [Member] | Bonds [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | 5,810 | |||
Financial services [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | 21,075 | $ 20,061 | ||
Hedging effects, bond premium/discount, and unamortized issuance costs | (25) | |||
Financial services [Member] | Bonds [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | 3,075 | |||
Coupon rate of 6.25 Due in March 9, 2018 [Member] | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) [Member] | Industrial Activities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | [1],[2] | $ 1,023 | € 853 | |
Coupon rate | [1],[2] | 6.25% | 6.25% | |
Maturity date | [1],[2] | Mar. 9, 2018 | ||
Coupon rate of 2.75 Due in March 18, 2019 [Member] | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) [Member] | Industrial Activities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | [1],[3] | $ 656 | € 547 | |
Coupon rate | [1],[3] | 2.75% | 2.75% | |
Maturity date | [1],[3] | Mar. 18, 2019 | ||
Coupon rate of 2.88 Due in September 27, 2021 [Member] | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) [Member] | Industrial Activities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | [1] | $ 839 | € 700 | |
Coupon rate | [1] | 2.875% | 2.875% | |
Maturity date | [1] | Sep. 27, 2021 | ||
Coupon rate of 1.64 Due in March 29, 2022 [Member] | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) [Member] | Industrial Activities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | [1] | $ 90 | € 75 | |
Coupon rate | [1] | 1.625% | 1.625% | |
Maturity date | [1] | Mar. 29, 2022 | ||
Coupon rate of 1.38 Due in May 17, 2023 [Member] | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) [Member] | Industrial Activities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | [1] | $ 600 | € 500 | |
Coupon rate | [1] | 1.375% | 1.375% | |
Maturity date | [1] | May 23, 2022 | ||
Coupon rate of 2.88 Due in May 17, 2023 [Member] | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) [Member] | Industrial Activities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | [1] | $ 600 | € 500 | |
Coupon rate | [1] | 2.875% | 2.875% | |
Maturity date | [1] | May 17, 2023 | ||
Coupon rate of 1.75 Due in September 12, 2025 [Member] | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) [Member] | Industrial Activities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | [1] | $ 779 | € 650 | |
Coupon rate | [1] | 1.75% | 1.75% | |
Maturity date | [1] | Sep. 12, 2025 | ||
Coupon rate of 3.50 Due in November 12, 2025 [Member] | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) [Member] | Industrial Activities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | [1] | $ 120 | € 100 | |
Coupon rate | [1] | 3.50% | 3.50% | |
Maturity date | [1] | Nov. 12, 2025 | ||
Coupon rate of 3.88 Due in April 21, 2028 [Member] | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) [Member] | Industrial Activities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | [1] | $ 60 | € 50 | |
Coupon rate | [1] | 3.875% | 3.875% | |
Maturity date | [1] | Apr. 21, 2028 | ||
Coupon rate of 4.50 Due in August 15, 2023 [Member] | CNH Industrial N.V. [Member] | Industrial Activities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | [4] | $ 600 | € 600 | |
Coupon rate | [4] | 4.50% | 4.50% | |
Maturity date | [4] | Aug. 15, 2023 | ||
Coupon rate of 3.85 Due in November 15, 2027 [Member] | CNH Industrial N.V. [Member] | Industrial Activities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | [4] | $ 500 | € 500 | |
Coupon rate | [4] | 3.85% | 3.85% | |
Maturity date | [4] | Nov. 15, 2027 | ||
Coupon rate of 3.63 Due in April 15, 2018 [Member] | CNH Industrial Capital LLC (formerly CNH Capital LLC) [Member] | Financial services [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 600 | € 600 | ||
Coupon rate | 3.625% | 3.625% | ||
Maturity date | Apr. 15, 2018 | |||
Coupon rate of 3.38 Due in July 15, 2019 [Member] | CNH Industrial Capital LLC (formerly CNH Capital LLC) [Member] | Financial services [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 500 | € 500 | ||
Coupon rate | 3.375% | 3.375% | ||
Maturity date | Jul. 15, 2019 | |||
Coupon rate of 4.38 Due in November 6, 2020 [Member] | CNH Industrial Capital LLC (formerly CNH Capital LLC) [Member] | Financial services [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 600 | € 600 | ||
Coupon rate | 4.375% | 4.375% | ||
Maturity date | Nov. 6, 2020 | |||
Coupon rate of 4.88 Due in April 1, 2021 [Member] | CNH Industrial Capital LLC (formerly CNH Capital LLC) [Member] | Financial services [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 500 | € 500 | ||
Coupon rate | 4.875% | 4.875% | ||
Maturity date | Apr. 1, 2021 | |||
Coupon rate of 3.38 Due in October 15, 2021 [Member] | CNH Industrial Capital LLC (formerly CNH Capital LLC) [Member] | Financial services [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 400 | € 400 | ||
Coupon rate | 3.875% | 3.875% | ||
Maturity date | Oct. 15, 2021 | |||
Coupon rate of 4.38 Due in April 5, 2022 [Member] | CNH Industrial Capital LLC (formerly CNH Capital LLC) [Member] | Financial services [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 500 | € 500 | ||
Coupon rate | 4.375% | 4.375% | ||
Maturity date | Apr. 5, 2022 | |||
[1] | Bond listed on the Irish Stock Exchange. | |||
[2] | In September 2017, CNH Industrial Finance Europe S.A. Repurchased €347 million | |||
[3] | In September 2017, CNH Industrial Finance Europe S.A. Repurchased €453 million | |||
[4] | Bond listed on the New York Stock Exchange |
Debt - Summary of Issued Bond76
Debt - Summary of Issued Bond Outstanding (Parenthetical) (Detail) - CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) [Member] € in Millions | Sep. 30, 2017EUR (€) |
Coupon rate of 6.25 Due in March 9, 2018 [Member] | |
Debt Instrument [Line Items] | |
Debt repurchase amount | € 347 |
Coupon rate of 2.75 Due in March 18, 2019 [Member] | |
Debt Instrument [Line Items] | |
Debt repurchase amount | € 453 |
Debt - Summary of Total Debt (D
Debt - Summary of Total Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Debt | $ 25,895 | $ 25,276 |
Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 8,885 | 8,613 |
Asset-backed debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 12,028 | 11,784 |
Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 4,982 | 4,879 |
Industrial Activities [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 7,396 | 7,691 |
Industrial Activities [Member] | Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 5,810 | 4,944 |
Industrial Activities [Member] | Asset-backed debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 3 | 8 |
Industrial Activities [Member] | Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 648 | 1,742 |
Industrial Activities [Member] | Intersegment Debt | ||
Debt Instrument [Line Items] | ||
Debt | 935 | 997 |
Financial services [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 21,075 | 20,061 |
Financial services [Member] | Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 3,075 | 3,669 |
Financial services [Member] | Asset-backed debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 12,025 | 11,776 |
Financial services [Member] | Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 4,334 | 3,137 |
Financial services [Member] | Intersegment Debt | ||
Debt Instrument [Line Items] | ||
Debt | $ 1,641 | $ 1,479 |
Debt - Minimum Annual Repayment
Debt - Minimum Annual Repayments of Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
2,018 | $ 11,493 | |
2,019 | 4,132 | |
2,020 | 3,027 | |
2,021 | 2,868 | |
2,022 | 1,466 | |
2023 and thereafter | 2,909 | |
Total | 25,895 | $ 25,276 |
Industrial Activities [Member] | ||
Debt Instrument [Line Items] | ||
2,018 | 1,263 | |
2,019 | 888 | |
2,020 | 41 | |
2,021 | 861 | |
2,022 | 710 | |
2023 and thereafter | 2,698 | |
Total | 7,396 | 7,691 |
Industrial Activities [Member] | Intersegment Debt | ||
Debt Instrument [Line Items] | ||
Total | 935 | 997 |
Financial services [Member] | ||
Debt Instrument [Line Items] | ||
2,018 | 10,230 | |
2,019 | 3,244 | |
2,020 | 2,986 | |
2,021 | 2,007 | |
2,022 | 756 | |
2023 and thereafter | 211 | |
Total | 21,075 | 20,061 |
Financial services [Member] | Intersegment Debt | ||
Debt Instrument [Line Items] | ||
Total | $ 1,641 | $ 1,479 |
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, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Income Tax Disclosure [Line Items] | ||||||
Provision for income taxes | $ 455,000,000 | $ 298,000,000 | $ 360,000,000 | |||
Valuation allowance against deferred tax assets | 163,000,000 | 133,000,000 | 111,000,000 | |||
Non-tax deductible charges | $ 502,000,000 | € 450 | $ 551,000,000 | |||
Undistributed earnings in subsidiaries | 3,000,000,000 | |||||
Deferred income taxes | 101,000,000 | 69,000,000 | 97,000,000 | |||
Deferred tax liability on total undistributed earnings | $ 42,000,000 | |||||
Joint venture ownership percentage | 50.00% | |||||
Deferred taxes | $ 8,000,000 | |||||
Deferred tax assets, valuation allowances | 1,744,000,000 | 1,490,000,000 | ||||
Gross tax loss carry forwards with indefinite lives | 3,000,000,000 | |||||
Unrecognized tax benefits, that would affect effective tax rate, if recognized | 154,000,000 | |||||
Income tax related interest and penalties recognized expense | (1,000,000) | 7,000,000 | 2,000,000 | |||
Income tax related interest and penalties accrued | $ 11,000,000 | 12,000,000 | $ 16,000,000 | |||
Minimum [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax examination year | 2,002 | |||||
Maximum [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax examination year | 2,017 | |||||
2018 [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Gross tax loss carry forwards, subject to expiration | $ 146,000,000 | |||||
2019 [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Gross tax loss carry forwards, subject to expiration | 204,000,000 | |||||
2020 [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Gross tax loss carry forwards, subject to expiration | 41,000,000 | |||||
2021 [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Gross tax loss carry forwards, subject to expiration | 96,000,000 | |||||
2022 and beyond [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Gross tax loss carry forwards, subject to expiration | 494,000,000 | |||||
2019 [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Tax credit carry forwards, subject to expiration | 2,000,000 | |||||
2022 and beyond [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Tax credit carry forwards, subject to expiration | 37,000,000 | |||||
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 | 19.25% | 20.00% | 20.00% | |||
Valuation allowance against deferred tax assets | $ 84,000,000 | |||||
US | ||||||
Income Tax Disclosure [Line Items] | ||||||
Tax expense related to mandatory repatriation tax | $ 39,000,000 |
Income Taxes - Sources of Incom
Income Taxes - Sources of Income (Loss) Before Taxes and Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Parent country source | $ (212) | $ (73) | $ 11 |
Foreign sources | 892 | 64 | 556 |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | $ 680 | $ (9) | $ 567 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Current income taxes | $ 354 | $ 229 | $ 263 |
Deferred income taxes | 101 | 69 | 97 |
Total income tax provision | $ 455 | $ 298 | $ 360 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Tax provision at the parent statutory rate | $ 131 | $ (2) | $ 115 |
Foreign income taxed at different rates | 95 | (11) | 56 |
Change in valuation allowance | 163 | 133 | 111 |
Italian IRAP taxes | 17 | 22 | 6 |
Tax contingencies | 18 | (2) | 26 |
Tax credits and incentives | (48) | (88) | (43) |
Venezuela remeasurement, and impairment and deconsolidation charges | 18 | 16 | 51 |
Non-deductible EC Settlement | 160 | ||
Change in tax rate or law | 39 | 14 | 23 |
Withholding taxes | 6 | 11 | 8 |
Other | 16 | 45 | 7 |
Total income tax provision | $ 455 | $ 298 | $ 360 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Inventories | $ 108 | $ 96 |
Warranty and campaigns | 202 | 183 |
Allowance for credit losses | 184 | 180 |
Marketing and sales incentive programs | 259 | 326 |
Other risk and future charges reserve | 312 | 216 |
Pension, postretirement and postemployment benefits | 408 | 553 |
Measurement of derivative financial instruments | 1 | 36 |
Research and development costs | 458 | 423 |
Other reserves | 339 | 359 |
Tax credits and loss carry forwards | 684 | 767 |
Less: Valuation allowances | (1,744) | (1,490) |
Total deferred tax assets | 1,211 | 1,649 |
Deferred tax liabilities: | ||
Property, plant and equipment | 295 | 481 |
Other | 195 | 315 |
Total deferred tax liabilities | 490 | 796 |
Net deferred tax assets | $ 721 | $ 853 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets Reflected in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 818 | $ 937 |
Deferred tax liabilities | (97) | (84) |
Net deferred tax assets | $ 721 | $ 853 |
Income Taxes - Reconciliation85
Income Taxes - Reconciliation of Gross Amounts of Tax Contingencies (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Balance, beginning of year | $ 318 | $ 325 |
Additions based on tax positions related to the current year | 30 | 30 |
Additions for tax positions of prior years | 16 | 70 |
Reductions for tax positions of prior years | (21) | (65) |
Reductions for tax positions as a result of lapse of statute | (8) | (10) |
Settlements | (15) | (32) |
Balance, end of year | $ 320 | $ 318 |
Employee Benefit Plans and Po86
Employee Benefit Plans and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expense on defined contribution plan | $ 189 | $ 181 | $ 185 |
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 | $ 17 | ||
Reduction in net periodic benefit cost | 31 | ||
Pension plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total accumulated benefit obligation | 3,285 | $ 3,150 | |
Decrease due to benefit obligations of new mortality table | 8 | ||
Employer contributions | 67 | ||
Healthcare plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Decrease due to benefit obligations of new mortality table | 9 | ||
Employer contributions | 9 | ||
Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ 37 |
Employee Benefit Plans and Po87
Employee Benefit Plans and Postretirement Benefits - Defined Benefit Pension, Healthcare and Other Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Change in the fair value of plan assets: | ||||||
Beginning plan assets | $ 2,439 | |||||
Ending plan assets | 2,701 | $ 2,439 | ||||
Pension [Member] | ||||||
Change in benefit obligations: | ||||||
Beginning benefit obligation | 3,188 | 3,281 | ||||
Service cost | 30 | 30 | $ 30 | |||
Interest cost | 74 | 87 | 112 | |||
Plan participants’ contributions | 3 | 3 | ||||
Actuarial loss (gain) | 44 | 285 | ||||
Gross benefits paid | (179) | (221) | ||||
Plan amendments | (6) | |||||
Currency translation adjustments and other | 205 | (271) | ||||
Ending benefit obligation | 3,365 | 3,188 | 3,281 | |||
Change in the fair value of plan assets: | ||||||
Beginning plan assets | 2,328 | 2,480 | ||||
Actual return on plan assets | 196 | 194 | ||||
Employer contributions | 34 | 35 | ||||
Plan participants’ contributions | 3 | 3 | ||||
Gross benefits paid | (150) | (193) | ||||
Currency translation adjustments and other | 106 | (191) | ||||
Ending plan assets | 2,517 | 2,328 | 2,480 | |||
Funded status: | (848) | (860) | ||||
Healthcare [Member] | ||||||
Change in benefit obligations: | ||||||
Beginning benefit obligation | [1] | 1,105 | 1,157 | |||
Service cost | 6 | [1] | 7 | [1] | 8 | |
Interest cost | 36 | [1] | 39 | [1] | 48 | |
Plan participants’ contributions | [1] | 7 | 8 | |||
Actuarial loss (gain) | [1] | 29 | (37) | |||
Gross benefits paid | [1] | (68) | (71) | |||
Currency translation adjustments and other | [1] | 5 | 2 | |||
Ending benefit obligation | [1] | 1,120 | 1,105 | 1,157 | ||
Change in the fair value of plan assets: | ||||||
Beginning plan assets | [1] | 111 | 105 | |||
Actual return on plan assets | [1] | 19 | 8 | |||
Employer contributions | [1] | 56 | ||||
Plan participants’ contributions | [1] | 7 | 8 | |||
Gross benefits paid | [1] | (2) | (2) | |||
Ending plan assets | [1] | 184 | 111 | 105 | ||
Funded status: | [1] | (936) | (994) | |||
Other [Member] | ||||||
Change in benefit obligations: | ||||||
Beginning benefit obligation | [1] | 418 | 423 | |||
Service cost | 15 | [1] | 13 | [1] | 15 | |
Interest cost | 3 | [1] | 4 | [1] | 5 | |
Actuarial loss (gain) | [1] | 13 | 22 | |||
Gross benefits paid | [1] | (37) | (31) | |||
Currency translation adjustments and other | [1] | 58 | (13) | |||
Ending benefit obligation | [1] | 470 | 418 | $ 423 | ||
Change in the fair value of plan assets: | ||||||
Funded status: | [1] | $ (470) | $ (418) | |||
[1] | The healthcare and other postemployment plans are not required to be prefunded. |
Employee Benefit Plans and Po88
Employee Benefit Plans and Postretirement Benefits - Defined Benefit Pension Plans by Geographical Area (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Change in the fair value of plan assets: | |||
Beginning plan assets | $ 2,439 | ||
Ending plan assets | 2,701 | $ 2,439 | |
US | |||
Change in benefit obligations: | |||
Beginning benefit obligation | 1,159 | 1,208 | |
Service cost | 7 | 8 | |
Interest cost | 37 | 39 | |
Actuarial loss (gain) | 53 | 27 | |
Gross benefits paid | (83) | (120) | |
Currency translation adjustments and other | (3) | ||
Ending benefit obligation | 1,173 | 1,159 | |
Change in the fair value of plan assets: | |||
Beginning plan assets | 1,139 | 1,182 | |
Actual return on plan assets | 153 | 80 | |
Gross benefits paid | (82) | (120) | |
Currency translation adjustments and other | (3) | (3) | |
Ending plan assets | 1,207 | 1,139 | |
Funded status: | 34 | (20) | |
U.K. | |||
Change in benefit obligations: | |||
Beginning benefit obligation | 1,315 | 1,332 | |
Service cost | 7 | 6 | |
Interest cost | 29 | 37 | |
Actuarial loss (gain) | (15) | 247 | |
Gross benefits paid | (53) | (57) | |
Currency translation adjustments and other | 126 | (250) | |
Ending benefit obligation | 1,409 | 1,315 | |
Change in the fair value of plan assets: | |||
Beginning plan assets | 918 | 1,028 | |
Actual return on plan assets | 29 | 106 | |
Employer contributions | 23 | 25 | |
Gross benefits paid | (53) | (57) | |
Currency translation adjustments and other | 88 | (184) | |
Ending plan assets | 1,005 | 918 | |
Funded status: | (404) | (397) | |
Germany [Member] | |||
Change in benefit obligations: | |||
Beginning benefit obligation | [1] | 419 | 438 |
Service cost | [1] | 4 | 3 |
Interest cost | [1] | 4 | 6 |
Actuarial loss (gain) | [1] | (2) | 12 |
Gross benefits paid | [1] | (28) | (27) |
Currency translation adjustments and other | [1] | 56 | (13) |
Ending benefit obligation | [1] | 453 | 419 |
Change in the fair value of plan assets: | |||
Beginning plan assets | [1] | 5 | 5 |
Ending plan assets | [1] | 5 | 5 |
Funded status: | [1] | (448) | (414) |
Other Countries [Member] | |||
Change in benefit obligations: | |||
Beginning benefit obligation | [1] | 295 | 303 |
Service cost | [1] | 12 | 13 |
Interest cost | [1] | 4 | 5 |
Plan participants’ contributions | [1] | 3 | 3 |
Actuarial loss (gain) | [1] | 8 | (1) |
Gross benefits paid | [1] | (15) | (17) |
Plan amendments | [1] | (6) | |
Currency translation adjustments and other | [1] | 23 | (5) |
Ending benefit obligation | [1] | 330 | 295 |
Change in the fair value of plan assets: | |||
Beginning plan assets | [1] | 266 | 265 |
Actual return on plan assets | [1] | 14 | 8 |
Employer contributions | [1] | 11 | 10 |
Plan participants’ contributions | [1] | 3 | 3 |
Gross benefits paid | [1] | (15) | (16) |
Currency translation adjustments and other | [1] | 21 | (4) |
Ending plan assets | [1] | 300 | 266 |
Funded status: | [1] | $ (30) | $ (29) |
[1] | Pension benefits in Germany and some other countries are not required to be prefunded. |
Employee Benefit Plans and Po89
Employee Benefit Plans and Postretirement Benefits - Net Amounts Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension, postretirement and other postemployment benefits | $ (2,300) | $ (2,276) |
Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | 46 | 4 |
Pension, postretirement and other postemployment benefits | (894) | (864) |
Net liability recognized at end of year | (848) | (860) |
Healthcare [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension, postretirement and other postemployment benefits | (936) | (994) |
Net liability recognized at end of year | (936) | (994) |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension, postretirement and other postemployment benefits | (470) | (418) |
Net liability recognized at end of year | $ (470) | $ (418) |
Employee Benefit Plans and Po90
Employee Benefit Plans and Postretirement Benefits - Pre-tax Amounts Recognized in Accumulated Other Comprehensive Income (Loss) (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized actuarial losses | $ 943 |
Unrecognized prior service credit | (9) |
Accumulated other comprehensive loss | 934 |
Healthcare [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized actuarial losses | 154 |
Unrecognized prior service credit | (4) |
Accumulated other comprehensive loss | 150 |
Other [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized actuarial losses | 96 |
Unrecognized prior service credit | (4) |
Accumulated other comprehensive loss | $ 92 |
Employee Benefit Plans and Po91
Employee Benefit Plans and Postretirement Benefits - Accumulated Benefit Obligations in Excess of Plan Assets (Detail) - Pension [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 1,968 | $ 3,011 |
Fair value of plan assets | $ 1,146 | $ 2,183 |
Employee Benefit Plans and Po92
Employee Benefit Plans and Postretirement Benefits - Projected Benefit Obligations in Excess of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 2,130 | $ 3,119 |
Fair value of plan assets | 1,236 | 2,254 |
Healthcare [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 1,119 | 1,105 |
Fair value of plan assets | 184 | 111 |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 470 | $ 418 |
Employee Benefit Plans and Po93
Employee Benefit Plans and Postretirement Benefits - Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Pension [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 30 | $ 30 | $ 30 | ||
Interest cost | 74 | 87 | 112 | ||
Expected return on assets | (111) | (113) | (140) | ||
Amortization of: | |||||
Prior service cost (credit) | (1) | ||||
Actuarial loss (gain) | 90 | 76 | 83 | ||
Settlement loss and other | 4 | ||||
Net periodic benefit cost | 86 | 80 | 85 | ||
Healthcare [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 6 | [1] | 7 | [1] | 8 |
Interest cost | 36 | [1] | 39 | [1] | 48 |
Expected return on assets | (7) | (6) | (7) | ||
Amortization of: | |||||
Prior service cost (credit) | (2) | (4) | (10) | ||
Actuarial loss (gain) | 6 | 15 | 26 | ||
Net periodic benefit cost | 39 | 51 | 65 | ||
Other [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 15 | [1] | 13 | [1] | 15 |
Interest cost | 3 | [1] | 4 | [1] | 5 |
Amortization of: | |||||
Prior service cost (credit) | 1 | (1) | 1 | ||
Actuarial loss (gain) | 5 | 8 | (7) | ||
Settlement loss and other | 2 | 1 | |||
Net periodic benefit cost | $ 26 | $ 25 | $ 14 | ||
[1] | The healthcare and other postemployment plans are not required to be prefunded. |
Employee Benefit Plans and Po94
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Benefit adjustments included in other comprehensive (income) loss: | |||
Currency translation adjustments and other | $ 401 | $ (319) | $ 359 |
Total recognized in other comprehensive (income) loss | (116) | 81 | (191) |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | 86 | 80 | 85 |
Benefit adjustments included in other comprehensive (income) loss: | |||
Net actuarial losses (gains) | (42) | ||
Amortization of actuarial losses | (91) | ||
Amortization of prior service (cost) credit | 1 | ||
Currency translation adjustments and other | 61 | ||
Total recognized in other comprehensive (income) loss | (71) | ||
Total recognized in comprehensive loss | 15 | ||
Healthcare [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | 39 | 51 | 65 |
Benefit adjustments included in other comprehensive (income) loss: | |||
Net actuarial losses (gains) | 17 | ||
Amortization of actuarial losses | (5) | ||
Amortization of prior service (cost) credit | 2 | ||
Total recognized in other comprehensive (income) loss | 14 | ||
Total recognized in comprehensive loss | 53 | ||
Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | 26 | $ 25 | $ 14 |
Benefit adjustments included in other comprehensive (income) loss: | |||
Net actuarial losses (gains) | 11 | ||
Amortization of actuarial losses | (5) | ||
Amortization of prior service (cost) credit | (1) | ||
Currency translation adjustments and other | 11 | ||
Total recognized in other comprehensive (income) loss | 16 | ||
Total recognized in comprehensive loss | $ 42 |
Employee Benefit Plans and Po95
Employee Benefit Plans and Postretirement Benefits - Pre-tax Amounts Expected to be Amortized from Accumulated Other Comprehensive Income (Loss) (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial losses | $ 75 |
Prior service cost (credit) | (1) |
Total | 74 |
Healthcare [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial losses | 7 |
Prior service cost (credit) | (2) |
Total | 5 |
Other [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial losses | 1 |
Prior service cost (credit) | 1 |
Total | $ 2 |
Employee Benefit Plans and Po96
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Pension plans [Member] | ||||
Assumptions used to determine funded status at December 31 | ||||
Weighted-average discount rate | 2.57% | 2.82% | 3.49% | |
Weighted-average rate of compensation increase | 3.01% | 2.95% | 2.98% | |
Assumptions used to determine expense | ||||
Weighted-average discount rates - service cost | 2.15% | 2.91% | 3.22% | |
Weighted-average discount rates - interest cost | 2.33% | 2.82% | 3.22% | |
Weighted-average rate of compensation increase | 2.95% | 2.98% | 3.25% | |
Weighted-average long-term rates of return on plan assets | 4.74% | 5.00% | 5.38% | |
Healthcare plans [Member] | ||||
Assumptions used to determine funded status at December 31 | ||||
Weighted-average discount rate | 3.53% | 3.97% | 4.27% | |
Weighted-average rate of compensation increase | 2.50% | 2.50% | ||
Weighted-average, initial healthcare cost trend rate | 6.46% | 6.72% | 6.98% | |
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 | 3.96% | 4.21% | 3.96% | |
Weighted-average discount rates - interest cost | 3.39% | 3.49% | 3.96% | |
Weighted-average rate of compensation increase | 2.50% | 2.50% | 3.00% | |
Weighted-average long-term rates of return on plan assets | 6.25% | 6.25% | 6.75% | |
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% |
Other [Member] | ||||
Assumptions used to determine funded status at December 31 | ||||
Weighted-average discount rate | 1.47% | 1.54% | 2.06% | |
Weighted-average rate of compensation increase | 1.11% | 1.19% | 1.33% | |
Assumptions used to determine expense | ||||
Weighted-average discount rates - service cost | 1.67% | 2.18% | 1.81% | |
Weighted-average discount rates - interest cost | 1.40% | 1.89% | 1.81% | |
Weighted-average rate of compensation increase | 1.19% | 1.33% | 2.27% | |
[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 Po97
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, 2017USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Total increase/(decrease) in service cost and interest cost components of 2017 Healthcare Plan benefit expense, One Percentage-Point Increase | $ 6 |
Total increase/(decrease) in accumulated Healthcare benefit obligations as of end period, One Percentage-Point Increase | 132 |
Total increase/(decrease) in service cost and interest cost components of 2017 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 | $ (108) |
Employee Benefit Plans and Po98
Employee Benefit Plans and Postretirement Benefits - Weighted Average Target Asset Allocation For All Plans (Detail) | Dec. 31, 2017 |
Equity securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation for all plans in asset categories | 19.00% |
Debt securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation for all plans in asset categories | 49.00% |
Cash/Other [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation for all plans in asset categories | 32.00% |
Employee Benefit Plans and Po99
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | $ 2,701 | $ 2,439 | |||
Equity securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 362 | 352 | |||
Fixed income securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 1,022 | 1,232 | |||
Other types of investments [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 1,239 | 817 | |||
Cash [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 78 | 38 | |||
U.S. government bonds [Member] | Fixed income securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 365 | 308 | |||
U.S. corporate bonds [Member] | Fixed income securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 498 | 474 | |||
Non-U.S. government bonds [Member] | Fixed income securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 55 | 353 | |||
Non-U.S. corporate bonds [Member] | Fixed income securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 95 | 87 | |||
Other Fixed Income Securities [Member] | Fixed income securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 9 | 10 | |||
Mutual funds [Member] | Other types of investments [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 1,090 | [1] | 682 | [2] | |
Insurance contracts [Member] | Other types of investments [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 149 | 135 | |||
US | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 1,207 | 1,139 | $ 1,182 | ||
US | Equity securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 362 | 352 | |||
Level 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 404 | 335 | |||
Level 1 [Member] | Equity securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 19 | 15 | |||
Level 1 [Member] | Fixed income securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 368 | 318 | |||
Level 1 [Member] | Cash [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 17 | 2 | |||
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 | 355 | 305 | |||
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 | 13 | |||
Level 1 [Member] | US | Equity securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 19 | 15 | |||
Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 2,148 | 1,969 | |||
Level 2 [Member] | Equity securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 343 | 337 | |||
Level 2 [Member] | Fixed income securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 654 | 914 | |||
Level 2 [Member] | Other types of investments [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 1,090 | 682 | |||
Level 2 [Member] | Cash [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 61 | 36 | |||
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 | 10 | 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 | 498 | 474 | |||
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 | 42 | 340 | |||
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 | 95 | 87 | |||
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 | 9 | 10 | |||
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 | 1,090 | [1] | 682 | [2] | |
Level 2 [Member] | US | Equity securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 343 | 337 | |||
Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 149 | 135 | |||
Level 3 [Member] | Other types of investments [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets by asset category | 149 | 135 | |||
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 | $ 149 | $ 135 | $ 133 | ||
[1] | This category includes mutual funds, which primarily invest in non-U.S. equities and non-U.S. corporate bonds. | ||||
[2] | This category includes mutual funds, which primarily invest in non-U.S. equities and non-U.S. corporate bonds. |
Employee Benefit Plans and P100
Employee Benefit Plans and Postretirement Benefits - Changes in Level 3 Plan Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning plan assets | $ 2,439 | |
Ending plan assets | 2,701 | $ 2,439 |
Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning plan assets | 135 | |
Ending plan assets | 149 | 135 |
Other types of investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning plan assets | 817 | |
Ending plan assets | 1,239 | 817 |
Other types of investments [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning plan assets | 135 | |
Ending plan assets | 149 | 135 |
Other types of investments [Member] | Insurance contracts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning plan assets | 135 | |
Ending plan assets | 149 | 135 |
Other types of investments [Member] | Insurance contracts [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning plan assets | 135 | 133 |
Actual return on plan assets relating to assets still held at reporting date | 6 | 3 |
Purchases | 8 | 7 |
Settlements | (5) | (6) |
Transfers in and/or out of level 3 | (3) | 2 |
Currency impact | 8 | (4) |
Ending plan assets | $ 149 | $ 135 |
Employee Benefit Plans and P101
Employee Benefit Plans and Postretirement Benefits - Cash Flows Related to Total Benefits Expected to be Paid (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 186 |
2,019 | 180 |
2,020 | 182 |
2,021 | 183 |
2,022 | 179 |
2023 - 2027 | 896 |
Total | 1,806 |
Healthcare [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 66 |
2,019 | 64 |
2,020 | 63 |
2,021 | 64 |
2,022 | 64 |
2023 - 2027 | 337 |
Total | 658 |
Medicare Part D Reimbursement [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 - 2027 | (1) |
Total | (1) |
Other [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 37 |
2,019 | 35 |
2,020 | 39 |
2,021 | 36 |
2,022 | 36 |
2023 - 2027 | 146 |
Total | $ 329 |
Other Liabilities - Summary of
Other Liabilities - Summary of Other Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||||
Advances on buy-back agreements | $ 3,102 | $ 2,429 | ||
Warranty and campaign programs | 1,081 | 940 | $ 908 | |
Marketing and sales incentive programs | 1,335 | 1,182 | ||
Tax payables | 765 | 714 | ||
Accrued expenses and deferred income | 632 | 634 | ||
Accrued employee benefits | 752 | 633 | ||
Legal reserves and other provisions | 384 | 355 | ||
Contract reserve | 588 | 407 | ||
Restructuring reserve | 60 | 30 | $ 51 | $ 95 |
Other | 701 | 681 | ||
Total | $ 9,400 | $ 8,005 |
Other Liabilities - Summary 103
Other Liabilities - Summary of Recorded Activity for Basic Warranty and Accruals for Campaign Programs (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at beginning of period | $ 940 | $ 908 |
Additions | 782 | 806 |
Claims paid | (670) | (706) |
Currency translation adjustment and other | 29 | (68) |
Balance at end of period | $ 1,081 | $ 940 |
Other Liabilities - Additional
Other Liabilities - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | $ 93 | $ 44 | $ 84 |
Commercial Vehicles [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | 69 | 34 | 44 |
Agriculture Equipment [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | $ 14 | $ 9 | 18 |
Construction Equipment Segment [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses | $ 19 |
Other Liabilities - Restructuri
Other Liabilities - Restructuring Activity (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | $ 30 | $ 51 | $ 95 |
Restructuring charges | 93 | 44 | 84 |
Reserves utilized cash | (54) | (59) | (116) |
Reserves utilized non-cash | (15) | (3) | (5) |
Currency translation adjustments | 6 | (3) | (7) |
Ending balance | 60 | 30 | 51 |
Severance and Other Employee Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | 23 | 30 | 86 |
Restructuring charges | 76 | 56 | 66 |
Reserves utilized cash | (53) | (55) | (112) |
Reserves utilized non-cash | (2) | (5) | |
Currency translation adjustments | 4 | (8) | (5) |
Ending balance | 48 | 23 | 30 |
Facility Related Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | 7 | 5 | 6 |
Restructuring charges | 17 | (1) | |
Reserves utilized cash | (1) | (3) | |
Reserves utilized non-cash | (13) | ||
Currency translation adjustments | 2 | 3 | 2 |
Ending balance | 12 | 7 | 5 |
Other Restructuring [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | 16 | 3 | |
Restructuring charges | (11) | 18 | |
Reserves utilized cash | (4) | (1) | |
Reserves utilized non-cash | (3) | ||
Currency translation adjustments | $ 2 | (4) | |
Ending balance | $ 0 | $ 16 |
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, 2017USD ($)site | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
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 | $ 35 | ||||||||
Non-recurring non-tax deductible charge | $ 502 | € 450 | $ 551 | |||||||
Rental expense for all operating leases | 78 | 67 | $ 69 | |||||||
Guarantees at carrying value | 368 | $ 291 | ||||||||
Fiat Chrysler Automobiles N.V. | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Other contingencies | $ 200 | |||||||||
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 Contingencie107
Commitments and Contingencies - Minimum Rental Commitments Under Non Cancelable Operating Leases with Lease Terms in Excess of One Year (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,018 | $ 102 |
2,019 | 68 |
2,020 | 54 |
2,021 | 35 |
2,022 | 26 |
2023 and beyond | 15 |
Total minimum rental commitments | $ 300 |
Commitments and Contingencie108
Commitments and Contingencies - Financial Services has Various Agreements to Extend Credit (Detail) - Wholesale and dealer financing [Member] $ in Millions | Dec. 31, 2017USD ($) |
Line Of Credit Facility [Line Items] | |
Total Credit Limit | $ 7,094 |
Utilized | 3,691 |
Not Utilized | $ 3,403 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Maturity of foreign exchange contracts | 24 months | |
After-tax gains (losses) deferred in AOCI of foreign exchange contracts to be reclassified to earnings over the next 12 months | $ 11 | |
Foreign Exchange Derivatives [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Notional amount | 6,900 | $ 7,000 |
Interest Rate Derivatives [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Notional amount | $ 3,900 | $ 4,300 |
Financial Instruments - Fair Va
Financial Instruments - Fair Values of Derivatives (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | $ 77 | $ 95 |
Derivative Liabilities, Total | (98) | (249) |
Derivatives Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | 60 | 62 |
Derivative Liabilities, Total | (71) | (122) |
Derivatives Designated as Hedging Instruments [Member] | Foreign Exchange Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | 53 | 47 |
Derivative Liabilities, Total | (55) | (105) |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | 7 | 15 |
Derivative Liabilities, Total | (16) | (17) |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | 17 | 33 |
Derivative Liabilities, Total | (27) | (127) |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Exchange Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | 13 | 31 |
Derivative Liabilities, Total | (22) | (116) |
Derivatives Not Designated as Hedging Instruments [Member] | Interest Rate Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Total | 4 | 2 |
Derivative Liabilities, Total | $ (5) | $ (11) |
Financial Instruments - Pre-tax
Financial Instruments - Pre-tax Gains (Losses) on Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flow Hedges | |||
Foreign exchange contracts-accumulated other comprehensive income (effective portion) | $ 48 | $ (72) | $ (19) |
Foreign exchange contracts-accumulated other comprehensive income (effective portion) | 5 | 13 | (39) |
Interest Expense [Member] | |||
Fair Value Hedges | |||
Interest rate derivatives | (12) | (33) | (8) |
Gains/(losses) on hedged items | 12 | 33 | 8 |
Cash Flow Hedges | |||
Interest rate derivatives-Reclassified from accumulated other comprehensive income (effective portion) | (4) | (7) | |
Net sales [Member] | |||
Cash Flow Hedges | |||
Foreign exchange contracts, Reclassified from accumulated other comprehensive income (effective portion) | 6 | 55 | 16 |
Cost of Goods Sold [Member] | |||
Cash Flow Hedges | |||
Foreign exchange contracts, Reclassified from accumulated other comprehensive income (effective portion) | (47) | (4) | (211) |
Other, Net [Member] | |||
Cash Flow Hedges | |||
Foreign exchange contracts, Reclassified from accumulated other comprehensive income (effective portion) | 10 | (5) | (10) |
Not Designated as Hedges | |||
Not Designated as Hedges, Foreign exchange contracts | $ (3) | $ (231) | $ 115 |
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, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | $ 78 | $ 96 |
Total Liabilities | (98) | (249) |
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 | 66 | 78 |
Total Liabilities | (77) | (221) |
Interest Rate Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 11 | 17 |
Total Liabilities | (21) | (28) |
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 | 77 | 95 |
Total Liabilities | (98) | (249) |
Level 2 [Member] | Foreign Exchange Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 66 | 78 |
Total Liabilities | (77) | (221) |
Level 2 [Member] | Interest Rate Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 11 | 17 |
Total Liabilities | $ (21) | $ (28) |
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, 2017 | Dec. 31, 2016 |
Carrying Amount [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financing receivables | $ 19,842 | $ 18,662 |
Debt | 25,895 | 25,276 |
Fair Value [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financing receivables | 20,026 | 18,554 |
Debt | $ 26,137 | $ 25,372 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | Sep. 15, 2017shares | Apr. 14, 2017USD ($) | Apr. 14, 2017EUR (€)€ / shares | Dec. 31, 2017USD ($)Voteshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Mar. 02, 2018USD ($) | Mar. 02, 2018EUR (€)€ / shares | Jan. 30, 2018USD ($) | Dec. 31, 2017EUR (€)€ / sharesshares | Sep. 14, 2017shares | Jun. 05, 2017USD ($) | Dec. 31, 2016€ / shares | Dec. 31, 2014shares | 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 issued | 1,364,400,196 | 1,364,400,196 | |||||||||||||
Common shares, shares outstanding | 1,363,592,506 | 1,361,630,903 | 1,362,048,989 | 1,363,592,506 | 1,355,319,640 | ||||||||||
Treasury stock, shares | 807,690 | 807,690 | |||||||||||||
Common shares, par value | € / shares | € 0.01 | € 0.01 | € 0.01 | ||||||||||||
Special voting shares, shares issued | 396,474,276 | 396,474,276 | |||||||||||||
Special voting shares, shares outstanding | 474,474,276 | 388,906,690 | 412,268,203 | 413,249,206 | 388,906,690 | 396,474,276 | 415,399,503 | ||||||||
Special voting shares, shares authorized | 2,000,000,000 | 2,000,000,000 | |||||||||||||
Capital increase | 5,271,344 | 1,693,695 | 6,729,349 | ||||||||||||
Voting Right | In order to reward long-term ownership of the Company’s common shares and promote stability of its shareholder base, the Articles of Association of CNH Industrial N.V. 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 program percentage of shares authorized to be repurchased | 10.00% | ||||||||||||||
Stock repurchase expiration date | Oct. 13, 2018 | Oct. 13, 2018 | |||||||||||||
Common shares repurchased, amount | $ | $ 300,000,000 | ||||||||||||||
Common shares repurchased | 3,300,000 | ||||||||||||||
Common shares repurchased, amount | $ | $ 38,000,000 | $ 14,000,000 | |||||||||||||
Treasury stock, value | $ | 10,000,000 | 9,000,000 | |||||||||||||
Dividend declared per share | € / shares | € 0.11 | ||||||||||||||
Dividend declared and paid amount | $ 161,000,000 | € 150,000,000 | $ 162,000,000 | $ 202,000,000 | $ 292,000,000 | ||||||||||
Dividends Payable, Date to be Paid | May 31, 2017 | May 31, 2017 | |||||||||||||
Subsequent Event | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Stock repurchase program percentage of shares authorized to be repurchased | 10.00% | ||||||||||||||
Common shares repurchased, amount | $ | $ 700,000,000 | ||||||||||||||
Increase in common shares repurchased, amount | $ | $ 400,000,000 | ||||||||||||||
Dividend declared per share | € / shares | € 0.14 | ||||||||||||||
Dividend declared amount | $ 235,000,000 | € 191,000,000 | |||||||||||||
Special Voting Shares [Member] | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Treasury stock, shares | 7,567,586 | 7,567,586 | |||||||||||||
Retirement of special voting shares | 23,361,513 | 981,003 | 2,150,297 | ||||||||||||
Cancelled special voting shares held in treasury | 78,000,000 | ||||||||||||||
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 |
Shareholders Equity - Changes i
Shareholders Equity - Changes in the Composition of the Share of CHN Industrial (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition Equity Interests Issued Or Issuable [Line Items] | |||
Common shares, shares outstanding | 1,361,630,903 | 1,362,048,989 | 1,355,319,640 |
Capital increase | 5,271,344 | 1,693,695 | 6,729,349 |
Common stock repurchases | (3,309,741) | (2,111,781) | |
Common shares, shares outstanding | 1,363,592,506 | 1,361,630,903 | 1,362,048,989 |
Special voting shares, shares outstanding | 412,268,203 | 413,249,206 | 415,399,503 |
Special voting shares, shares outstanding | 388,906,690 | 412,268,203 | 413,249,206 |
Common and special voting shares, shares outstanding | 1,773,899,106 | 1,775,298,195 | 1,770,719,143 |
Common and special voting shares, shares outstanding | 1,752,499,196 | 1,773,899,106 | 1,775,298,195 |
Special Voting Shares [Member] | |||
Business Acquisition Equity Interests Issued Or Issuable [Line Items] | |||
Retirement of special voting shares | (23,361,513) | (981,003) | (2,150,297) |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2017 | Jun. 30, 2014 | Sep. 30, 2012 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 19,000,000 | $ 3,000,000 | $ 49,000,000 | |||||
Tax benefit relating to share-based compensation expense | 1,000,000 | $ 0 | $ 3,000,000 | |||||
Unrecognized share-based compensation expense | $ 104,000,000 | $ 104,000,000 | ||||||
Unrecognized share-based compensation costs weighted-average period | 1 year 9 months 14 days | |||||||
Shares authorizes | 25,000,000 | 25,000,000 | ||||||
Common shares authorized period | 5 years | |||||||
Period after adoption by board for shares granted on termination of plan | 10 years | |||||||
CNH EIP [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common shares authorized period | 3 years | |||||||
Number of outstanding options | 214,574 | 214,574 | 7,210,881 | |||||
CNH DCP [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of outstanding options | 10,000 | 10,000 | ||||||
CNH DCP [Member] | CNH Industrial [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Share exchange ratio with new entity | 3.828 | |||||||
CNH DCP [Member] | Annual Retainer [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Annual board of directors member fee | $ 125,000 | |||||||
CNH DCP [Member] | Audit Committee Membership [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Annual board of directors member fee | 25,000 | |||||||
CNH DCP [Member] | Audit Committee Chair [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Annual board of directors member fee | 35,000 | |||||||
CNH DCP [Member] | Governance [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Annual board of directors member fee | 20,000 | |||||||
CNH DCP [Member] | Governance And Sustainability Committee Chair [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Annual board of directors member fee | $ 25,000 | |||||||
CNH Industrial DCP [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Lock in Period for sale of common shares | 6 months | |||||||
Stock options terminate after grant date | 10 years | |||||||
Stock option termination date after individual ceases to director | 6 months | |||||||
Common shares available for issuance | 200,000 | 200,000 | ||||||
Common shares issued | 50,000 | |||||||
Share based compensation, exercise price | $ 9.42 | $ 9.42 | ||||||
Share based compensation, weighted average fair value | $ 1.65 | |||||||
Executive Director [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares authorizes | 7,000,000 | 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 | $ 37,000,000 | |||||||
Granted | 7,000,000 | 0 | 500,000 | 12,000,000 | ||||
Share-based award period | three-year period from January 1, 2017 to December 31, 2019 | 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% | |||||||
Reduction in payout percentage | 30.00% | |||||||
Vesting date | Feb. 28, 2020 | |||||||
Performance period completion date | Dec. 31, 2019 | |||||||
Expected volatility period ending on grant date | 3 years | |||||||
Performance Shares [Member] | Minimum [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Payout scale | 0.00% | 0.00% | ||||||
Performance Shares [Member] | Maximum [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Payout scale | 130.00% | 150.00% | ||||||
Market Condition Award [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Weighted average fair value of awards granted | $ 9.14 | |||||||
Market Condition Award [Member] | Granted on December 12, 2017 [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Awards grant date | Dec. 12, 2017 | |||||||
Market Condition Award [Member] | Granted on December 22, 2017 [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Awards grant date | Dec. 22, 2017 | |||||||
Restricted Stock Units [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Granted | 4,000,000 | 2,000,000 | 2,000,000 | |||||
Fair value of stock awarded | $ 13.23 | $ 7.30 | $ 8.60 | |||||
Vesting period | 3 years | 3 years | 3 years | |||||
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 | $ 9.28 | $ 6.78 | $ 8.16 | |||||
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 | $ 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 share unit exercise date | Feb. 23, 2015 | |||||||
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 share unit exercise date | Feb. 8, 2016 | |||||||
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 | |||||||
Restricted share unit exercise date | Feb. 8, 2017 | |||||||
Restricted Stock Units [Member] | Board of Directors Chairman [Member] | Share-based Compensation Award, Tranche Four [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Restricted share unit vested | 450,000 | |||||||
Restricted share unit exercise date | Feb. 20, 2018 | |||||||
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] | Dec. 22, 2017 | Dec. 12, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected Volatility | 31.10% | 31.20% |
Dividend yield | 0.87% | 0.91% |
Risk-free rate | 2.01% | 1.95% |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Performance-Based Share Activity (Detail) - Performance Shares [Member] - $ / shares | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2014 | |
Shares | ||||
Granted | 7,000,000 | 0 | 500,000 | 12,000,000 |
CNH Industrial EIP [Member] | ||||
Shares | ||||
Nonvested at beginning of year | 11,725,260 | |||
Granted | 6,632,100 | |||
Forfeited/Cancelled | (11,725,260) | |||
Nonvested at end of year | 6,632,100 | 6,632,100 | 11,725,260 | |
Weighted Average Grant-Date Fair Value | ||||
Nonvested at beginning of year | $ 9.23 | |||
Granted | 9.14 | |||
Forfeited/Cancelled | 9.23 | |||
Nonvested at end of year | $ 9.14 | $ 9.14 | $ 9.23 |
Share-Based Compensation - S119
Share-Based Compensation - Schedule of Restricted-Based Share Activity (Detail) - Restricted Stock Units [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | |||
Granted | 4,000,000 | 2,000,000 | 2,000,000 |
Weighted Average Grant-Date Fair Value | |||
Granted | $ 13.23 | $ 7.30 | $ 8.60 |
CNH Industrial EIP [Member] | |||
Shares | |||
Nonvested at beginning of year | 4,232,708 | ||
Granted | 3,939,100 | ||
Forfeited | (172,706) | ||
Vested | (1,906,868) | ||
Nonvested at end of year | 6,092,234 | 4,232,708 | |
Weighted Average Grant-Date Fair Value | |||
Nonvested at beginning of year | $ 8.14 | ||
Granted | 13.23 | ||
Forfeited | 7.77 | ||
Vested | 8.67 | ||
Nonvested at end of year | $ 11.38 | $ 8.14 |
Share-Based Compensation - Outs
Share-Based Compensation - Outstanding Stock Options (Detail) - CNH EIP [Member] | 12 Months Ended | |
Dec. 31, 2017USD ($)$ / sharesshares | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Options Outstanding, Aggregate Intrinsic Value | $ | $ 991,332 | [1] |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 991,332 | [1] |
Range of Exercise Price, $5.01-$10.00 [Member] | ||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ||
Minimum Exercise Price | $ / shares | $ 5.01 | |
Maximum Exercise Price | $ / shares | $ 10 | |
Shares Outstanding | shares | 214,574 | |
Options Outstanding, Weighted-Average Contractual Life | 1 month 24 days | |
Options Outstanding, Weighted-Average Exercise Price | $ / shares | $ 8.78 | |
Options Outstanding, Aggregate Intrinsic Value | $ | $ 991,332 | [1] |
Shares Exercisable | shares | 214,574 | |
Options Exercisable, Weighted-Average Contractual Life | 1 month 24 days | |
Options Exercisable, Weighted-Average Exercise Price | $ / shares | $ 8.78 | |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 991,332 | [1] |
[1] | The difference between the exercise price of share-based compensation and the year-end market price of CNH Industrial common shares of $13.40. No amount is shown for awards with an exercise price that is greater than the year-end market price. |
Share-Based Compensation - O121
Share-Based Compensation - Outstanding Stock Options (Parenthetical) (Detail) | Dec. 31, 2017$ / 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 | $ 13.40 |
Share-Based Compensation - S122
Share-Based Compensation - Schedule of Stock Option Activity (Detail) - CNH EIP [Member] | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Shares | |
Outstanding at beginning of year | shares | 7,210,881 |
Expired | shares | (3,832,177) |
Exercised | shares | (3,164,130) |
Outstanding at end of year | shares | 214,574 |
Exercisable at end of year | shares | 214,574 |
Weighted-Average Exercise Price | |
Outstanding at beginning of year | $ / shares | $ 9.51 |
Expired | $ / shares | 10.15 |
Exercised | $ / shares | 8.78 |
Outstanding at end of year | $ / shares | 8.78 |
Exercisable at end of year | $ / shares | $ 8.78 |
Share-Based Compensation - A123
Share-Based Compensation - Additional Share Based Compensation Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Total intrinsic value of options exercised and shares vested | $ 23 | $ 12 | $ 33 |
Fair value of shares vested | 17 | $ 14 | 36 |
Cash received from share award exercises | $ 28 | $ 8 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic EPS and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Basic: | ||||
Net income (loss) attributable to CNH Industrial | $ 295 | $ (252) | $ 253 | |
Weighted average common shares outstanding—basic | 1,364,000,000 | 1,362,000,000 | 1,361,000,000 | |
Basic earnings per share | $ 0.22 | $ (0.18) | $ 0.19 | |
Diluted: | ||||
Net income (loss) attributable to CNH Industrial | $ 295 | $ (252) | $ 253 | |
Weighted average common shares outstanding—basic | 1,364,000,000 | 1,362,000,000 | 1,361,000,000 | |
Effect of dilutive securities (when dilutive): | ||||
Stock compensation plans | 3,000,000 | 2,000,000 | ||
Weighted average common shares outstanding—diluted (A) | [1] | 1,367,000,000 | 1,362,000,000 | 1,363,000,000 |
Diluted earnings per share | $ 0.22 | $ (0.18) | $ 0.19 | |
[1] | For the twelve months ended December 31, 2017, 2016, and 2015, 0 million, 7.3 million, and 7.9 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 - Computa125
Earnings Per Share - Computation of Basic EPS and Diluted EPS (Parenthetical) (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Options [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti dilutive securities | 0 | 7.3 | 7.9 |
Restricted Stock Units [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti dilutive securities | 1.9 |
Accumulated Other Comprehens126
Accumulated Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | |||
Unrealized gain (loss) on cash flow hedges, Gross Amount | $ 84 | $ (101) | $ 154 |
Changes in retirement plans' funded status, Gross Amount | 116 | (81) | 191 |
Foreign currency translation, Gross Amount | (401) | 319 | (359) |
Share of other comprehensive income (loss) of entities using the equity method, Gross Amount | 32 | (40) | (47) |
Other comprehensive income (loss), Gross Amount | (169) | 97 | (61) |
Unrealized gain (loss) on cash flow hedges, Income Taxes | 5 | 10 | (34) |
Changes in retirement plans' funded status, Income Taxes | (30) | (8) | (33) |
Other comprehensive income (loss), Gross Amount | (25) | 2 | (67) |
Unrealized gain (loss) on cash flow hedges, Net Amount | 89 | (91) | 120 |
Changes in retirement plans’ funded status | 86 | (89) | 158 |
Foreign currency translation, Net Amount | (401) | 319 | (359) |
Share of other comprehensive income (loss) of entities using the equity method | 32 | (40) | (47) |
Other comprehensive income (loss), net of tax | $ (194) | $ 99 | $ (128) |
Accumulated Other Comprehens127
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | $ 4,451 | $ 4,843 | $ 4,961 | |
Ending balance | 4,400 | 4,451 | 4,843 | |
Unrealized Gain (Loss) on Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (88) | 3 | (117) | |
Other comprehensive income (loss), before reclassifications | 56 | (58) | (28) | |
Amounts reclassified from other comprehensive income (loss) | 33 | (33) | 148 | |
Other comprehensive income (loss) | [1] | 89 | (91) | 120 |
Ending balance | 1 | (88) | 3 | |
Change in Retirement Plans' Funded Status [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (1,036) | (947) | (1,105) | |
Other comprehensive income (loss), before reclassifications | 13 | (172) | 76 | |
Amounts reclassified from other comprehensive income (loss) | 73 | 83 | 82 | |
Other comprehensive income (loss) | [1] | 86 | (89) | 158 |
Ending balance | (950) | (1,036) | (947) | |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (490) | (806) | (448) | |
Other comprehensive income (loss), before reclassifications | (401) | 316 | (358) | |
Other comprehensive income (loss) | [1] | (401) | 316 | (358) |
Ending balance | (891) | (490) | (806) | |
Share of Other Comprehensive Income of Entities Using the Equity Method [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (153) | (113) | (66) | |
Other comprehensive income (loss), before reclassifications | 35 | (40) | (47) | |
Other comprehensive income (loss) | [1] | 35 | (40) | (47) |
Ending balance | (118) | (153) | (113) | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (1,767) | (1,863) | (1,736) | |
Other comprehensive income (loss), before reclassifications | (297) | 46 | (357) | |
Amounts reclassified from other comprehensive income (loss) | 106 | 50 | 230 | |
Other comprehensive income (loss) | [1] | (191) | 96 | (127) |
Ending balance | $ (1,958) | $ (1,767) | $ (1,863) | |
[1] | Excluded from the table above is other comprehensive loss allocated to noncontrolling interests of $3, $3 and $(1) for the years ended December 31, 2017, 2016 and 2015, respectively. |
Accumulated Other Comprehens128
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | |||
Other comprehensive income (loss) allocated to noncontrolling interests | $ 3 | $ 3 | $ (1) |
Accumulated Other Comprehens129
Accumulated Other Comprehensive Income (Loss) - Schedule of Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net sales | $ 26,168 | $ 23,669 | $ 24,677 |
Cost of goods sold | 21,621 | 19,539 | 20,357 |
Other, net | 738 | 1,148 | 625 |
Interest expense | 942 | 1,028 | 1,106 |
Income tax (expense) | (455) | (298) | (360) |
Net income (loss) | 313 | (249) | $ 248 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income (loss) | 106 | 50 | |
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 | (6) | (55) | |
Cost of goods sold | 47 | 4 | |
Other, net | (10) | 5 | |
Interest expense | 4 | ||
Income tax (expense) | 2 | 9 | |
Net income (loss) | 33 | (33) | |
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 | 101 | 99 | |
Amortization of prior service cost | (2) | (5) | |
Income tax (expense) | (26) | (11) | |
Net income (loss) | $ 73 | $ 83 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)SegmentCustomer | Dec. 31, 2016USD ($)Customer | Dec. 31, 2015USD ($)Customer | |
Segment Reporting Information [Line Items] | |||
Number of segments | Segment | 5 | ||
Revenues | $ 27,361 | $ 24,872 | $ 25,912 |
Number of customer | Customer | 0 | 0 | 0 |
U.K. | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 886 | $ 842 | $ 1,008 |
Total long-lived assets | 293 | 234 | |
Rest of World and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 26,475 | 24,030 | $ 24,904 |
Total long-lived assets | $ 11,819 | $ 11,306 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting [Abstract] | |||
Operating profit | $ 1,662 | $ 1,439 | $ 1,635 |
Restructuring expenses | (93) | (44) | (84) |
Interest expenses of Industrial Activities, net of interest income and eliminations | (484) | (543) | (479) |
Other, net | (405) | (861) | (505) |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | $ 680 | $ (9) | $ 567 |
Segment Reporting - Reconcil132
Segment Reporting - Reconciliation from Operating Profit (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Operating profit | $ 1,662 | $ 1,439 | $ 1,635 |
Industrial Activities [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | 1,519 | 1,291 | 1,432 |
Industrial Activities [Member] | Operating Segments [Member] | Agricultural Equipment [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | 949 | 818 | 952 |
Industrial Activities [Member] | Operating Segments [Member] | Construction Equipment [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | 21 | 2 | 90 |
Industrial Activities [Member] | Operating Segments [Member] | Commercial Vehicles [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | 272 | 333 | 283 |
Industrial Activities [Member] | Operating Segments [Member] | Powertrain [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | 362 | 232 | 186 |
Industrial Activities [Member] | Eliminations and other [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | (85) | (94) | (79) |
Financial Services [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | 479 | 478 | 515 |
Financial Services [Member] | Eliminations and other [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating profit | $ (336) | $ (330) | $ (312) |
Segment Reporting - Revenue fro
Segment Reporting - Revenue from Operating Segments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | $ 26,168 | $ 23,669 | $ 24,677 |
Finance and interest income | 1,193 | 1,203 | 1,235 |
Net revenues | 27,361 | 24,872 | 25,912 |
Depreciation and amortization | 725 | 716 | 699 |
Expenditures for long-lived assets | 492 | 503 | 656 |
Agricultural Equipment [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | 11,130 | 10,120 | 11,025 |
Depreciation and amortization | 316 | 309 | 303 |
Expenditures for long-lived assets | 208 | 194 | 308 |
Construction Equipment [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | 2,626 | 2,304 | 2,542 |
Depreciation and amortization | 65 | 69 | 70 |
Expenditures for long-lived assets | 36 | 36 | 47 |
Commercial Vehicles [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | 10,415 | 9,553 | 9,542 |
Depreciation and amortization | 211 | 208 | 198 |
Expenditures for long-lived assets | 152 | 173 | 182 |
Powertrain [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | 4,372 | 3,707 | 3,560 |
Depreciation and amortization | 127 | 124 | 123 |
Expenditures for long-lived assets | 90 | 96 | 112 |
Industrial Activities [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | 26,168 | 23,669 | 24,677 |
Finance and interest income | 122 | 153 | 201 |
Net revenues | 26,290 | 23,822 | 24,878 |
Depreciation and amortization | 720 | 710 | 694 |
Expenditures for long-lived assets | 488 | 501 | 653 |
Industrial Activities [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | 26,168 | 23,669 | 24,677 |
Depreciation and amortization | 720 | 710 | 694 |
Expenditures for long-lived assets | 488 | 501 | 653 |
Industrial Activities [Member] | Eliminations and other [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales of Industrial Activities | (2,375) | (2,015) | (1,992) |
Industrial Activities [Member] | Corporate Non Segment | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 1 | ||
Expenditures for long-lived assets | 2 | 2 | 4 |
Financial Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Finance and interest income | 1,625 | 1,570 | 1,603 |
Net revenues | 1,625 | 1,570 | 1,603 |
Depreciation and amortization | 5 | 6 | 5 |
Expenditures for long-lived assets | 4 | 2 | 3 |
Financial Services [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Finance and interest income | 1,625 | 1,570 | 1,603 |
Depreciation and amortization | 5 | 6 | 5 |
Expenditures for long-lived assets | 4 | 2 | 3 |
Financial Services [Member] | Eliminations and other [Member] | |||
Segment Reporting Information [Line Items] | |||
Finance and interest income | $ (432) | $ (367) | $ (368) |
Segment Reporting - Revenue by
Segment Reporting - Revenue by Geographical Segments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 27,361 | $ 24,872 | $ 25,912 |
UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4,670 | 4,628 | 5,533 |
FRANCE | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,635 | 2,608 | 2,580 |
ITALY | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,052 | 2,874 | 2,524 |
BRAZIL | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,788 | 1,587 | 1,670 |
GERMANY | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,751 | 1,574 | 1,565 |
CANADA | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,226 | 1,182 | 1,229 |
AUSTRALIA | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,068 | 947 | 846 |
SPAIN | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,003 | 921 | 810 |
ARGENTINA | |||
Segment Reporting Information [Line Items] | |||
Revenues | 986 | 680 | 768 |
POLAND | |||
Segment Reporting Information [Line Items] | |||
Revenues | 506 | 435 | 479 |
Others Countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 7,790 | 6,594 | 6,900 |
Rest of World and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 26,475 | $ 24,030 | $ 24,904 |
Segment Reporting - Long-lived
Segment Reporting - Long-lived Assets by Geographical Segments (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
US | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 4,850 | $ 5,081 |
ITALY | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 1,667 | 1,510 |
FRANCE | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 931 | 805 |
SPAIN | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 775 | 625 |
GERMANY | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 885 | 808 |
BRAZIL | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 386 | 436 |
CANADA | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 565 | 519 |
CHINA | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 278 | 280 |
Others Countries [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 1,482 | 1,242 |
Rest of World and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 11,819 | $ 11,306 |
Related Party Information - Add
Related Party Information - Additional Information (Detail) - USD ($) $ in Millions | Jan. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
EXOR N.V [Member] | Subsequent Event | |||
Related Party Transaction [Line Items] | |||
Percentage of common shares outstanding held by related parties | 41.90% | ||
IVECO-OTO MELARA Societa Consortile [Member] | |||
Related Party Transaction [Line Items] | |||
Pledged guarantees on commitments | $ 255 | $ 187 |
Related Party Information - Sch
Related Party Information - Schedule of Related Party Transactions (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
FCA Group [Member] | |||
Related Party Transaction [Line Items] | |||
Net sales | $ 699 | $ 806 | $ 762 |
Cost of goods sold | 444 | 466 | 463 |
Selling, general and administrative expenses | 155 | 148 | 161 |
Trade receivables | 17 | 11 | |
Trade payables | 96 | 105 | |
Subsidiaries and Affiliates [Member] | |||
Related Party Transaction [Line Items] | |||
Net sales | 1,028 | 782 | 700 |
Cost of goods sold | 446 | 392 | $ 430 |
Trade receivables | 102 | 113 | |
Trade payables | $ 97 | $ 108 |
Supplemental Information - Supp
Supplemental Information - Supplemental Information of Income Statement (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||
Net sales | $ 26,168 | $ 23,669 | $ 24,677 |
Finance and interest income | 1,193 | 1,203 | 1,235 |
Total Revenues | 27,361 | 24,872 | 25,912 |
Costs and Expenses | |||
Cost of goods sold | 21,621 | 19,539 | 20,357 |
Selling, general & administrative expenses | 2,330 | 2,262 | 2,317 |
Research and development expenses | 957 | 860 | 856 |
Restructuring expenses | 93 | 44 | 84 |
Interest expense | 942 | 1,028 | 1,106 |
Other, net | 738 | 1,148 | 625 |
Total Costs and Expenses | 26,681 | 24,881 | 25,345 |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | 680 | (9) | 567 |
Income tax (expense) | (455) | (298) | (360) |
Equity in income of unconsolidated subsidiaries and affiliates | 88 | 58 | 41 |
Net income (loss) | 313 | (249) | 248 |
Industrial Activities [Member] | |||
Revenues | |||
Net sales | 26,168 | 23,669 | 24,677 |
Finance and interest income | 122 | 153 | 201 |
Total Revenues | 26,290 | 23,822 | 24,878 |
Costs and Expenses | |||
Cost of goods sold | 21,621 | 19,539 | 20,357 |
Selling, general & administrative expenses | 2,071 | 1,979 | 2,032 |
Research and development expenses | 957 | 860 | 856 |
Restructuring expenses | 90 | 43 | 82 |
Interest expense | 604 | 694 | 678 |
Interest compensation to Financial Services | 338 | 332 | 314 |
Other, net | 396 | 855 | 497 |
Total Costs and Expenses | 26,077 | 24,302 | 24,816 |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | 213 | (480) | 62 |
Income tax (expense) | (413) | (137) | (202) |
Equity in income of unconsolidated subsidiaries and affiliates | 61 | 34 | 20 |
Results from intersegment investments | 452 | 334 | 368 |
Net income (loss) | 313 | (249) | 248 |
Financial services [Member] | |||
Revenues | |||
Finance and interest income | 1,625 | 1,570 | 1,603 |
Total Revenues | 1,625 | 1,570 | 1,603 |
Costs and Expenses | |||
Selling, general & administrative expenses | 259 | 283 | 285 |
Restructuring expenses | 3 | 1 | 2 |
Interest expense | 555 | 521 | 576 |
Other, net | 341 | 294 | 235 |
Total Costs and Expenses | 1,158 | 1,099 | 1,098 |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | 467 | 471 | 505 |
Income tax (expense) | (42) | (161) | (158) |
Equity in income of unconsolidated subsidiaries and affiliates | 27 | 24 | 21 |
Net income (loss) | $ 452 | $ 334 | $ 368 |
Supplemental Information - S139
Supplemental Information - Supplemental Information of Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Cash and cash equivalents | $ 5,430 | $ 5,017 | $ 5,384 | $ 5,163 |
Restricted cash | 770 | 837 | ||
Trade receivables | 496 | 623 | ||
Financing receivables | 19,842 | 18,662 | 19,001 | |
Inventories, net | 6,280 | 5,609 | ||
Property, plant and equipment, net | 7,003 | 6,397 | ||
Investments in unconsolidated subsidiaries and affiliates | 561 | 487 | ||
Equipment under operating leases | 1,845 | 1,907 | ||
Goodwill | 2,472 | 2,449 | 2,447 | |
Other intangible assets, net | 792 | 787 | ||
Deferred tax assets | 818 | 937 | ||
Derivative assets | 77 | 95 | ||
Other assets | 1,889 | 1,740 | ||
Total Assets | 48,275 | 45,547 | ||
LIABILITIES AND EQUITY | ||||
Debt | 25,895 | 25,276 | ||
Trade payables | 6,060 | 5,185 | ||
Deferred tax liabilities | 97 | 84 | ||
Pension, postretirement and other postemployment benefits | 2,300 | 2,276 | ||
Derivative liability | 98 | 249 | ||
Other liabilities | 9,400 | 8,005 | ||
Total Liabilities | 43,850 | 41,075 | ||
Equity | 4,400 | 4,451 | 4,843 | 4,961 |
Redeemable noncontrolling interest | 25 | 21 | ||
Total Liabilities and Equity | 48,275 | 45,547 | ||
Industrial Activities [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 4,901 | 4,649 | 4,551 | 4,122 |
Trade receivables | 490 | 596 | ||
Financing receivables | 1,718 | 1,592 | ||
Inventories, net | 6,064 | 5,396 | ||
Property, plant and equipment, net | 7,001 | 6,395 | ||
Investments in unconsolidated subsidiaries and affiliates | 3,173 | 2,886 | ||
Equipment under operating leases | 35 | 17 | ||
Goodwill | 2,316 | 2,296 | ||
Other intangible assets, net | 779 | 772 | ||
Deferred tax assets | 835 | 1,060 | ||
Derivative assets | 73 | 98 | ||
Other assets | 1,706 | 1,505 | ||
Total Assets | 29,091 | 27,262 | ||
LIABILITIES AND EQUITY | ||||
Debt | 7,396 | 7,691 | ||
Trade payables | 5,936 | 5,042 | ||
Deferred tax liabilities | 97 | 84 | ||
Pension, postretirement and other postemployment benefits | 2,280 | 2,256 | ||
Derivative liability | 88 | 239 | ||
Other liabilities | 8,869 | 7,478 | ||
Total Liabilities | 24,666 | 22,790 | ||
Equity | 4,400 | 4,451 | ||
Redeemable noncontrolling interest | 25 | 21 | ||
Total Liabilities and Equity | 29,091 | 27,262 | ||
Financial services [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 529 | 368 | $ 833 | $ 1,041 |
Restricted cash | 770 | 837 | ||
Trade receivables | 53 | 58 | ||
Financing receivables | 20,699 | 19,546 | ||
Inventories, net | 216 | 213 | ||
Property, plant and equipment, net | 2 | 2 | ||
Investments in unconsolidated subsidiaries and affiliates | 205 | 153 | ||
Equipment under operating leases | 1,810 | 1,890 | ||
Goodwill | 156 | 153 | ||
Other intangible assets, net | 13 | 15 | ||
Deferred tax assets | 198 | 188 | ||
Derivative assets | 14 | 8 | ||
Other assets | 358 | 382 | ||
Total Assets | 25,023 | 23,813 | ||
LIABILITIES AND EQUITY | ||||
Debt | 21,075 | 20,061 | ||
Trade payables | 193 | 180 | ||
Deferred tax liabilities | 215 | 310 | ||
Pension, postretirement and other postemployment benefits | 20 | 20 | ||
Derivative liability | 20 | 21 | ||
Other liabilities | 686 | 669 | ||
Total Liabilities | 22,209 | 21,261 | ||
Equity | 2,814 | 2,552 | ||
Total Liabilities and Equity | $ 25,023 | $ 23,813 |
Supplemental Information - S140
Supplemental Information - Supplemental Information of Cash Flow (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities: | |||
Net income (loss) | $ 313 | $ (249) | $ 248 |
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 | 725 | 716 | 699 |
Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments | 625 | 545 | 447 |
(Gain) loss from disposal of assets | 27 | 4 | (2) |
Loss on repurchase of Notes | 64 | 60 | |
Undistributed income (loss) of unconsolidated subsidiaries | (39) | 5 | 40 |
Other non-cash items | 295 | 195 | 331 |
Changes in operating assets and liabilities: | |||
Provisions | 233 | 46 | (48) |
Deferred income taxes | 122 | 65 | 119 |
Trade and financing receivables related to sales, net | (657) | (97) | 279 |
Inventories, net | (213) | 106 | 473 |
Trade payables | 344 | 96 | (161) |
Other assets and liabilities | 176 | 616 | 361 |
Net cash provided by operating activities | 2,015 | 2,108 | 2,786 |
Investing activities: | |||
Additions to retail receivables | (4,078) | (3,951) | (4,498) |
Collections of retail receivables | 4,384 | 4,569 | 5,146 |
Proceeds from sale of assets, net of assets sold under operating leases and assets sold under buy-back commitments | 17 | 12 | 11 |
Proceeds from sale of assets under operating leases and assets sold under buy-back commitments | 850 | 660 | 726 |
Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and sold under buy-back commitments | (492) | (503) | (656) |
Expenditures for assets under operating lease and assets sold under buy-back commitments | (1,743) | (1,631) | (1,851) |
Other | 130 | (77) | 174 |
Net cash used in investing activities | (932) | (921) | (948) |
Financing activities: | |||
Proceeds from long-term debt | 15,896 | 12,629 | 9,927 |
Payments of long-term debt | (16,802) | (13,770) | (10,668) |
Net increase (decrease) in other financial liabilities | 54 | (132) | 96 |
Dividends paid | (168) | (207) | (297) |
Other | (25) | (58) | 23 |
Net cash used in financing activities | (1,045) | (1,538) | (919) |
Effect of foreign exchange rate changes on cash and cash equivalents | 375 | (16) | (698) |
Increase (decrease) in cash and cash equivalents | 413 | (367) | 221 |
Cash and cash equivalents, beginning of year | 5,017 | 5,384 | 5,163 |
Cash and cash equivalents, end of year | 5,430 | 5,017 | 5,384 |
Industrial Activities [Member] | |||
Operating activities: | |||
Net income (loss) | 313 | (249) | 248 |
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 | 720 | 710 | 694 |
Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments | 328 | 284 | 238 |
(Gain) loss from disposal of assets | 27 | 4 | (2) |
Loss on repurchase of Notes | 56 | 60 | |
Undistributed income (loss) of unconsolidated subsidiaries | (107) | 37 | (104) |
Other non-cash items | 208 | 73 | 213 |
Changes in operating assets and liabilities: | |||
Provisions | 239 | 42 | (61) |
Deferred income taxes | 217 | 43 | 59 |
Trade and financing receivables related to sales, net | 147 | (7) | 354 |
Inventories, net | (211) | 141 | 507 |
Trade payables | 359 | 121 | (162) |
Other assets and liabilities | 120 | 460 | 112 |
Net cash provided by operating activities | 2,416 | 1,719 | 2,096 |
Investing activities: | |||
Proceeds from sale of assets, net of assets sold under operating leases and assets sold under buy-back commitments | 17 | 12 | 11 |
Proceeds from sale of assets under operating leases and assets sold under buy-back commitments | 374 | 234 | 320 |
Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and sold under buy-back commitments | (488) | (501) | (653) |
Expenditures for assets under operating lease and assets sold under buy-back commitments | (1,079) | (884) | (875) |
Other | (274) | 380 | 2,151 |
Net cash used in investing activities | (1,450) | (759) | 954 |
Financing activities: | |||
Proceeds from long-term debt | 2,006 | 1,754 | 650 |
Payments of long-term debt | (2,580) | (2,085) | (2,483) |
Net increase (decrease) in other financial liabilities | (308) | (219) | 51 |
Dividends paid | (168) | (207) | (297) |
Other | (25) | (58) | 23 |
Net cash used in financing activities | (1,075) | (815) | (2,056) |
Effect of foreign exchange rate changes on cash and cash equivalents | 361 | (47) | (565) |
Increase (decrease) in cash and cash equivalents | 252 | 98 | 429 |
Cash and cash equivalents, beginning of year | 4,649 | 4,551 | 4,122 |
Cash and cash equivalents, end of year | 4,901 | 4,649 | 4,551 |
Financial services [Member] | |||
Operating activities: | |||
Net income (loss) | 452 | 334 | 368 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Depreciation and amortization expense, net of assets under operating lease and assets sold under buy-back commitments | 5 | 6 | 5 |
Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments | 297 | 261 | 209 |
Loss on repurchase of Notes | 8 | ||
Undistributed income (loss) of unconsolidated subsidiaries | (27) | (25) | (17) |
Other non-cash items | 87 | 122 | 118 |
Changes in operating assets and liabilities: | |||
Provisions | (6) | 4 | 13 |
Deferred income taxes | (95) | 22 | 60 |
Trade and financing receivables related to sales, net | (821) | (95) | (50) |
Inventories, net | (2) | (35) | (34) |
Trade payables | 8 | (19) | 4 |
Other assets and liabilities | 50 | 155 | 220 |
Net cash provided by operating activities | (44) | 730 | 896 |
Investing activities: | |||
Additions to retail receivables | (4,078) | (3,951) | (4,498) |
Collections of retail receivables | 4,384 | 4,569 | 5,146 |
Proceeds from sale of assets under operating leases and assets sold under buy-back commitments | 476 | 426 | 406 |
Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and sold under buy-back commitments | (4) | (2) | (3) |
Expenditures for assets under operating lease and assets sold under buy-back commitments | (664) | (747) | (976) |
Other | 358 | (562) | (2,019) |
Net cash used in investing activities | 472 | (267) | (1,944) |
Financing activities: | |||
Proceeds from long-term debt | 13,890 | 10,875 | 9,277 |
Payments of long-term debt | (14,222) | (11,685) | (8,185) |
Net increase (decrease) in other financial liabilities | 362 | 87 | 45 |
Dividends paid | (357) | (341) | (207) |
Other | 46 | 105 | 43 |
Net cash used in financing activities | (281) | (959) | 973 |
Effect of foreign exchange rate changes on cash and cash equivalents | 14 | 31 | (133) |
Increase (decrease) in cash and cash equivalents | 161 | (465) | (208) |
Cash and cash equivalents, beginning of year | 368 | 833 | 1,041 |
Cash and cash equivalents, end of year | $ 529 | $ 368 | $ 833 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) | Jan. 30, 2018 | Jun. 05, 2017 | Apr. 14, 2017 |
Subsequent Event [Line Items] | |||
Stock repurchase program percentage of shares authorized to be repurchased | 10.00% | ||
Common shares repurchased, amount | $ 300,000,000 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Stock repurchase program percentage of shares authorized to be repurchased | 10.00% | ||
Common shares repurchased, amount | $ 700,000,000 | ||
Increase in common shares repurchased, amount | $ 400,000,000 | ||
Subsequent Event | Maximum [Member] | |||
Subsequent Event [Line Items] | |||
Stock repurchase program percentage of shares authorized to be repurchased | 10.00% | ||
Common shares repurchased, amount | $ 700,000,000 |