Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2021 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-36085 |
Entity Registrant Name | CNH INDUSTRIAL N.V. |
Entity Incorporation, State or Country Code | P7 |
Entity Address, Address Line One | 25 St. James’s Street |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | SW1A 1HA |
Entity Address, Country | GB |
Entity Common Stock, Shares Outstanding | 1,356,077,000 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Amendment Flag | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0001567094 |
Secretary | |
Entity Information [Line Items] | |
Entity Address, Address Line One | 25 St. James's Street |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | SW1A 1HA |
Entity Address, Country | GB |
Contact Personnel Name | Roberto Russo |
City Area Code | 39 |
Local Phone Number | 011 0072257 |
Contact Personnel Fax Number | 0207930 6603 |
Contact Personnel Email Address | roberto.russo@cnhind.com |
Common Shares, par value €0.01 | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Shares, par value €0.01 |
Trading Symbol | CNHI |
Security Exchange Name | NYSE |
4.50% Notes due 2023 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 4.50% Notes due 2023 |
Trading Symbol | CNHI23 |
Security Exchange Name | NYSE |
3.850% Notes due 2027 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 3.850% Notes due 2027 |
Trading Symbol | CNHI27 |
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor name | Ernst & Young LLP |
Auditor location | Chicago, Illinois |
Auditor firm ID | 42 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | |||
Net sales | $ 31,622 | $ 24,285 | $ 26,149 |
Finance, interest and other income | 1,806 | 1,747 | 1,930 |
Total Revenues | 33,428 | 26,032 | 28,079 |
Costs and Expenses | |||
Cost of goods sold | 25,951 | 21,327 | 21,832 |
Selling, general and administrative expenses | 2,443 | 2,155 | 2,216 |
Research and development expenses | 1,236 | 932 | 1,030 |
Restructuring expenses | 74 | 49 | 109 |
Interest expense | 596 | 678 | 798 |
Goodwill impairment charge | 0 | 585 | 0 |
Other, net | 1,148 | 811 | 924 |
Total Costs and Expenses | 31,448 | 26,537 | 26,909 |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | 1,980 | (505) | 1,170 |
Income tax benefit (expense) | (342) | 50 | 271 |
Equity in income of unconsolidated subsidiaries and affiliates | 122 | 17 | 13 |
Net income (loss) | 1,760 | (438) | 1,454 |
Net income attributable to noncontrolling interests | 37 | 55 | 32 |
Net income (loss) attributable to CNH Industrial N.V. | $ 1,723 | $ (493) | $ 1,422 |
Earnings (loss) per share attributable to common shareholders | |||
Basic (in dollars per share) | $ 1.27 | $ (0.36) | $ 1.05 |
Diluted (in dollars per share) | 1.27 | (0.36) | 1.05 |
Cash dividends declared per common share (in dollars per share) | $ 0.132 | $ 0 | $ 0.203 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 1,760 | $ (438) | $ 1,454 |
Other comprehensive income (loss), net of tax | |||
Unrealized gain (loss) on cash flow hedges | (11) | 48 | (32) |
Changes in retirement plans’ funded status | 94 | (3) | (112) |
Foreign currency translation | 247 | (735) | 71 |
Share of other comprehensive income (loss) of entities using the equity method | (93) | 20 | (8) |
Other comprehensive income (loss), net of tax | 237 | (670) | (81) |
Comprehensive income (loss) | 1,997 | (1,108) | 1,373 |
Less: Comprehensive income attributable to noncontrolling interests | 43 | 59 | 29 |
Comprehensive income (loss) attributable to CNH Industrial N.V. | $ 1,954 | $ (1,167) | $ 1,344 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 6,006 | $ 8,785 |
Restricted cash | 856 | 844 |
Trade receivables, net | 357 | 506 |
Financing receivables, net | 18,662 | 18,457 |
Inventories, net | 7,221 | 6,022 |
Property, plant and equipment, net | 4,696 | 4,923 |
Investments in unconsolidated subsidiaries and affiliates | 692 | 529 |
Investments at fair value through profit and loss | 254 | 392 |
Equipment under operating leases | 1,803 | 1,978 |
Goodwill | 3,291 | 1,924 |
Other intangible assets, net | 1,348 | 772 |
Deferred tax assets | 1,481 | 1,451 |
Derivative assets | 185 | 160 |
Other assets | 2,564 | 1,976 |
Total Assets | 49,416 | 48,719 |
LIABILITIES AND EQUITY | ||
Debt | 23,745 | 26,053 |
Trade payables | 6,896 | 6,357 |
Deferred tax liabilities | 139 | 112 |
Pension, postretirement and other postemployment benefits | 1,234 | 1,617 |
Derivative liabilities | 176 | 139 |
Other liabilities | 10,373 | 9,412 |
Total Liabilities | 42,563 | 43,690 |
Redeemable noncontrolling interest | 45 | 40 |
Common shares, €0.01, par value; outstanding 1,356,077,000 common shares and 371,218,250 loyalty program special voting shares in 2021; and outstanding 1,353,910,471 common shares and 371,328,154 loyalty program special voting shares in 2020 | 25 | 25 |
Treasury stock, at cost - 8,323,196 shares in 2021 and 10,489,725 shares in 2020 | (84) | (109) |
Additional paid in capital | 4,464 | 4,388 |
Retained earnings | 4,818 | 3,279 |
Accumulated other comprehensive loss | (2,445) | (2,676) |
Noncontrolling interests | 30 | 82 |
Total Equity | 6,808 | 4,989 |
Total Liabilities and Equity | 49,416 | 48,719 |
Variable Interest Entity, Primary Beneficiary | ||
ASSETS | ||
Restricted cash | 737 | 703 |
Financing receivables, net | 9,560 | 8,974 |
Total Assets | 10,297 | 9,677 |
LIABILITIES AND EQUITY | ||
Debt | 9,269 | 8,835 |
Total Liabilities | $ 9,269 | $ 8,835 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common shares, par value (in eur per share) | $ 0.01 | $ 0.01 |
Common shares outstanding (in shares) | 1,356,077,000 | 1,353,910,471 |
Special voting shares outstanding (in shares) | 371,218,250 | 371,328,154 |
Treasury stock (in shares) | 8,323,196 | 10,489,725 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities: | |||
Net income (loss) | $ 1,760 | $ (438) | $ 1,454 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense, net of assets under operating lease and assets sold under buy-back commitments | 611 | 630 | 660 |
Depreciation and amortization expense of assets under operating lease and assets sold under buy-back commitments | 537 | 542 | 555 |
(Gain) loss from disposal of assets | (44) | 7 | (20) |
Loss on repurchase of notes | 8 | 0 | 27 |
Undistributed income (loss) of unconsolidated subsidiaries | (42) | 15 | 2 |
Goodwill impairment charge | 0 | 585 | 0 |
Other non-cash items | 323 | 570 | 209 |
Changes in operating assets and liabilities: | |||
Provisions | 179 | (41) | (93) |
Deferred income taxes | (239) | (264) | (472) |
Trade and financing receivables related to sales, net | 245 | 1,133 | (460) |
Inventories, net | (771) | 1,901 | 440 |
Trade payables | 763 | 388 | (179) |
Other assets and liabilities | 752 | 501 | (297) |
Net cash provided by operating activities | 4,082 | 5,529 | 1,826 |
Investing activities: | |||
Additions to retail receivables | (5,370) | (4,471) | (4,145) |
Collections of retail receivables | 4,388 | 3,995 | 4,219 |
Proceeds from the sale of assets, net of assets under operating leases and assets sold under buy-back commitments | 18 | 3 | 61 |
Expenditures for property, plant and equipment and intangible assets, net of assets under operating lease and assets sold under buy-back commitments | (714) | (484) | (637) |
Expenditures for assets under operating leases and assets sold under buy-back commitments | (1,319) | (1,366) | (1,325) |
Other | (2,004) | (427) | (160) |
Net cash used in investing activities | (5,001) | (2,750) | (1,987) |
Financing activities: | |||
Proceeds from long-term debt | 11,447 | 12,007 | 13,197 |
Payments of long-term debt | (12,690) | (10,512) | (12,925) |
Net increase (decrease) in other financial liabilities | (14) | (828) | 274 |
Dividends paid | (188) | (8) | (283) |
Other | 0 | 0 | (57) |
Net cash provided by (used in) financing activities | (1,445) | 659 | 206 |
Effect of foreign exchange rate changes on cash and cash equivalents | (403) | 418 | (75) |
Increase (decrease) in cash and cash equivalents and restricted cash | (2,767) | 3,856 | (30) |
Cash and cash equivalents and restricted cash, beginning of year | 9,629 | 5,773 | 5,803 |
Cash and cash equivalents and restricted cash, end of year | $ 6,862 | $ 9,629 | $ 5,773 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Adoption of ASC 326 | Balance, January 1, 2020, as recast | Common Shares | Common SharesBalance, January 1, 2020, as recast | Treasury Stock | Treasury StockBalance, January 1, 2020, as recast | Additional Paid-in Capital | Additional Paid-in CapitalBalance, January 1, 2020, as recast | Retained Earnings | Retained EarningsAdoption of ASC 326 | Retained EarningsBalance, January 1, 2020, as recast | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Balance, January 1, 2020, as recast | Noncontrolling Interests | Noncontrolling InterestsBalance, January 1, 2020, as recast | Redeemable Noncontrolling Interest | Redeemable Noncontrolling InterestBalance, January 1, 2020, as recast |
Beginning balance at Dec. 31, 2018 | $ 5,068 | $ 25 | $ (128) | $ 4,409 | $ 2,596 | $ (1,859) | $ 25 | |||||||||||
Stockholders' Equity | ||||||||||||||||||
Net income (loss), excluding redeemable noncontrolling interests | 1,442 | 1,422 | 20 | |||||||||||||||
Other comprehensive income (loss), net of tax | (81) | (78) | (3) | |||||||||||||||
Reclassification of certain tax effects | 0 | 65 | (65) | |||||||||||||||
Dividends paid | (276) | (275) | (1) | $ (7) | ||||||||||||||
Acquisition of treasury stock | (57) | (57) | ||||||||||||||||
Common shares issued from treasury stock and capital increase for share-based compensation | (3) | 31 | (34) | |||||||||||||||
Share-based compensation expense | 33 | 33 | ||||||||||||||||
Other changes | (5) | (4) | (1) | |||||||||||||||
Ending balance at Dec. 31, 2019 | 6,121 | $ (36) | $ 6,085 | 25 | $ 25 | (154) | $ (154) | 4,404 | $ 4,404 | 3,808 | $ (36) | $ 3,772 | (2,002) | $ (2,002) | 40 | $ 40 | ||
Beginning balance, redeemable noncontrolling interest at Dec. 31, 2018 | 30 | |||||||||||||||||
Redeemable Noncontrolling Interest | ||||||||||||||||||
Net income (loss), redeemable noncontrolling interests | 12 | |||||||||||||||||
Ending balance, redeemable noncontrolling interest at Dec. 31, 2019 | 35 | $ 35 | ||||||||||||||||
Stockholders' Equity | ||||||||||||||||||
Net income (loss), excluding redeemable noncontrolling interests | (451) | (493) | 42 | |||||||||||||||
Other comprehensive income (loss), net of tax | (670) | (674) | 4 | |||||||||||||||
Dividends paid | 0 | (8) | ||||||||||||||||
Decrease in noncontrolling interest due to the change of ownership | (9) | (5) | (4) | |||||||||||||||
Common shares issued from treasury stock and capital increase for share-based compensation | (2) | 45 | (47) | |||||||||||||||
Share-based compensation expense | 38 | 38 | ||||||||||||||||
Other changes | (2) | (2) | 0 | |||||||||||||||
Ending balance at Dec. 31, 2020 | 4,989 | 25 | (109) | 4,388 | 3,279 | (2,676) | 82 | |||||||||||
Redeemable Noncontrolling Interest | ||||||||||||||||||
Net income (loss), redeemable noncontrolling interests | 13 | |||||||||||||||||
Ending balance, redeemable noncontrolling interest at Dec. 31, 2020 | 40 | 40 | ||||||||||||||||
Stockholders' Equity | ||||||||||||||||||
Net income (loss), excluding redeemable noncontrolling interests | 1,748 | 1,723 | 25 | |||||||||||||||
Other comprehensive income (loss), net of tax | 237 | 231 | 6 | |||||||||||||||
Dividends paid | (271) | (180) | (91) | (7) | ||||||||||||||
Common shares issued from treasury stock and capital increase for share-based compensation | 0 | 25 | (25) | |||||||||||||||
Share-based compensation expense | 99 | 99 | ||||||||||||||||
Other changes | 6 | 2 | (4) | 8 | ||||||||||||||
Ending balance at Dec. 31, 2021 | 6,808 | $ 25 | $ (84) | $ 4,464 | $ 4,818 | $ (2,445) | $ 30 | |||||||||||
Redeemable Noncontrolling Interest | ||||||||||||||||||
Net income (loss), redeemable noncontrolling interests | 12 | |||||||||||||||||
Ending balance, redeemable noncontrolling interest at Dec. 31, 2021 | $ 45 | $ 45 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | 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, until December 31, 2021 and before the Demerger described below, which occurred on January 1, 2022, designed, produced and sold 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 20: Segment Reporting”). In addition, CNH Industrial’s Financial Services segment offered 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. Until December 31, 2021, the Company had five reportable segments consisting of: (i) Agriculture, which designs, produces and sells agricultural equipment (ii) Construction, which designs, produces and sells construction equipment (iii) Commercial and Specialty 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 and specialty vehicles, powertrain operations as well as corporate functions are collectively referred to as “Industrial Activities”. The Company was formed as a result of the mergers of Fiat Industrial S.p.A. and its subsidiary CNH Global N.V. with and into CNH Industrial, effective September 29, 2013. Spin-off of On-Highway Business Until December 31, 2021, CNH Industrial N.V. owned and controlled the Commercial and Specialty Vehicles business, the Powertrain business, and the related Financial Services business (together the “Iveco Group Business” or the “On-Highway Business”), as well as the Agriculture business, the Construction business, and the related Financial Services business (collectively, the “Off-Highway Business”). Effective January 1, 2022, the Iveco Group Business was separated from CNH Industrial N.V. by way of a legal statutory demerger to Iveco Group N.V. (the Demerger) and Iveco Group became a public listed company independent from CNH Industrial. At December 31, 2021, Iveco Group did not qualify for discontinued operations presentation under U.S. GAAP. Therefore, the results presented below include the results of Iveco Group. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation CNH Industrial has prepared the accompanying consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include CNH Industrial N.V. and its consolidated subsidiaries. The consolidated financial statements are expressed in U.S. dollars and, unless otherwise indicated, all financial data set forth in these consolidated financial statements are expressed in U.S. dollars. The consolidated financial statements include the accounts of CNH Industrial’s subsidiaries in which CNH Industrial has a controlling financial interest, and reflect the noncontrolling interests of the minority owners of the subsidiaries that are not fully owned for the periods presented, as applicable. A controlling financial interest may exist based on ownership of a majority of the voting interest of an entity or based on CNH Industrial’s determination that it is the primary beneficiary of a variable interest entity (“VIE”). The primary beneficiary of a VIE is the party that has the power to direct the activities that most significantly impact the economic performance of the entity and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity. The Company assesses whether it is the primary beneficiary on an ongoing basis, as prescribed by the accounting guidance on the consolidation of VIEs. The consolidated status of the VIEs with which the Company is involved may change as a result of such reassessments. Investments in unconsolidated subsidiaries and affiliates are accounted for using the equity method when CNH Industrial does not have a controlling interest, but exercises significant influence. Under this method, the investment is initially recorded at cost and is increased or decreased by CNH Industrial’s proportionate share of the entity’s respective net income or loss. Dividends received from these entities reduce the carrying value of the investments. Business Combinations Business combinations are accounted for by applying the acquisition method. Under this method, the consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred and liabilities assumed by the Company and the equity interests issued in exchange for control of the acquiree. Acquisition-related costs are generally recognized in profit or loss as incurred. On November 30, 2021, CNH Industrial completed its previously announced acquisition of Raven Industries, Inc. ("Raven"). CNH Industrial acquired 100% of the capital stock of Raven for $58 per share funded with available cash on hand. Cash consideration paid to Raven shareholders and Raven equity award holders totaled $2.1 billion. Raven, based in Sioux Falls, South Dakota, included three business divisions: Applied Technology, Engineered Films and Aerostar. The Applied Technologies division offers precision agricultural technologies in the areas of applications controls, guidance and steering, field computers, boom controls, cloud services and logistics, and injection support. The acquisition enhances CNH Industrial's precision farming portfolio and aligns with the Company's digital transformation strategy. The acquisition of Raven has been accounted for as a business combination using the acquisition method of accounting. The acquisition method requires, among other things, that assets acquired and liabilities assumed in a business combination be recognized at their fair values as of the acquisition date. The valuation of assets acquired and liabilities assumed has not yet been finalized as of December 31, 2021. As a result, CNH Industrial recorded preliminary estimates for the fair value of assets acquired and liabilities assumed as of the acquisition date including $1.3 billion and $0.5 billion in preliminary goodwill and intangible assets, respectively. The preliminary assessment will be updated as revised information becomes available, including the development and review of the necessary valuations. Applied Technology is included in the Company's Agriculture segment. The Company is committed to a plan to sell the Engineered Films and Aerostar business divisions and has recorded preliminary estimates of $0.5 billion in assets held for sale (Included in Other Assets) and $0.1 billion in liabilities held for sale (included in Other liabilities) as of December 31, 2021. On December 30, 2021, CNH Industrial completed its previously announced purchase of 90% capital stock of Sampierana S.p.A. ("Sampierana"). Sampierana is an Italian company specializing in the development, manufacture and commercialization of earthmoving machines, undercarriages and spare parts. The valuation of assets acquired and liabilities assumed has not yet been finalized as of December 31, 2021. As a result, CNH Industrial recorded preliminary estimates for the fair value of assets acquired and liabilities assumed as of the acquisition date including approximately $51 million in preliminary goodwill. The preliminary assessment will be updated as revised information becomes available, including the development and review of the necessary valuations. Sampierana is included in the Company’s Construction segment. 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 and valuation allowances; liabilities for warranties; sales allowances; and assets and obligations related to employee benefits. Actual results could differ from these estimates. The COVID-19 pandemic has resulted in uncertainties in the Company's business, which may cause actual results to differ materially from the estimates and assumptions used in preparation of the financial statements including, but not limited to, future cash flows associated with financial receivables, goodwill, indefinite life intangibles, definite life intangibles, long-lived impairment tests, determination of discount rates and other assumptions for pension and other post-retirement benefit expense and income taxes. Changes in estimates are recorded in results of operations in the period during which the events or circumstances giving rise to such changes occur. Revenue Recognition Revenue is recognized when control of the vehicles, equipment, services or parts has been transferred and the Company’s performance obligations to the customers have been satisfied. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. The timing of when the Company transfers the goods or services to the customer may differ from the timing of the customer’s payment. Revenues are stated net of discounts, allowances, settlement discounts and rebates, as well as costs for sales incentive programs, which are determined on the basis of historical costs, country by country, and charged against profit for the period in which the corresponding sales are recognized. The Company also enters into contracts with multiple performance obligations. For these contracts, the Company allocates revenue from the transaction price to the distinct goods and services in the contract on a relative standalone selling price basis. To the extent the Company sells the goods or services separately in the same market, the standalone selling price is the observable price at which the Company sells the goods or services separately. For all other goods or services, the Company estimates the standalone selling price considering all information reasonably available (including market conditions, entity-specific factors and information about the customer or class of customer). Sales of goods The Company has determined that the customers from the sale of vehicles, equipment and parts are generally dealers, distributors, public entities and retail customers. Transfer of control, and thus related revenue recognition, generally corresponds to when the vehicles, equipment and parts are made available to the customer. Therefore, the Company recognizes revenue at a point in time when control is transferred to the customer at a sale price that the Company expects to receive. For all sales, no significant uncertainty exists surrounding the purchaser’s obligation to pay for vehicles, equipment and parts. The Company records appropriate allowance for credit losses and anticipated returns as required. Fixed payment schedules exist for all sales, but payment terms vary by geographic market and product line. The cost of incentives, if any, are estimated at the inception of a contract at the amount that is expected to be paid and is recognized as a reduction to revenue at the time of the sale. If a vehicle or equipment contract transaction has multiple performance obligations, the cost of incentives is allocated entirely to vehicle or equipment as the intent of the incentives is to encourage sales of vehicles or equipment. If the estimate of the incentive changes following the sale to the customer, the change in estimate is recognized as an adjustment to revenue in the period of the change. CNH Industrial grants certain sales incentives to support sales of its products to retail customers. At the later of the time of sale or the time an incentive is announced to dealers, CNH Industrial records the estimated impact of sales allowances in the form of dealer and customer incentives as a reduction of revenue. Subsequent adjustments to sales incentive programs related to products/vehicles previously sold are recognized as an adjustment to revenues in the period the adjustment is determinable. The determination of sales allowances requires management to make estimates based upon historical data, estimated future market demand for products, field inventory levels, announced incentive programs, competitive pricing and interest rates, among other things. With reference to the sales to dealers accompanied by “floor plan” agreements under which the Company offers wholesale financing including “interest-free” financing for specified period of time (which also vary by geographic market and product line), two separate performance obligations exist. The first performance obligation consists of the sale of the equipment/vehicle from Industrial Activities to the dealer. Concurrent with the sale of the equipment/vehicle, Industrial Activities offers to the dealer wholesale financing through loans extended by 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, and therefore it should be recognized upfront as a reduction of net sales of Industrial Activities. The second performance obligation consists of a credit facility extended by Financial Services to the dealer. The remuneration for 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 by Financial Services over the period of the outstanding exposure. For parts sales, when the Company provides its customers with a right to return a transferred product, revenue and corresponding cost of sales are recognized for parts that are not expected to be returned. The expected returns are estimated based on an analysis of historical experience. The portion of revenue (and corresponding cost of sales) related to the parts that are expected to be returned is recognized at the end of the return period. The amount received or receivable that is expected to be returned is recognized as a refund liability, representing the obligation to return the customer’s consideration. Furthermore, at the time of the initial sale, CNH Industrial recognizes a return asset for the right to recover the goods returned by the customer. This asset is initially measured at the former carrying amount of the inventory. At each reporting date, both the refund liability and the return asset are remeasured to record for any revisions to the expected level of returns, as well as any decreases in the value of the returned products. Rendering of services Revenues from services provided are primarily comprised of extended warranties and maintenance and repair services and are recognized over the contract period when the costs are incurred, that is when the claims are charged by the dealer. Amounts invoiced to customers for which CNH Industrial receives consideration before the performance is satisfied are recognized as contract liability. These services are either separately-priced or included in the selling price of the vehicle. In the second case, revenue for the services is allocated based on the estimated stand-alone selling price. In the event that the costs expected to be incurred to satisfy the remaining performance obligations exceed the transaction price, an estimated contract loss is recognized. Shipping and other transportation activities performed as an agent are recognized on a net basis, which is netting the related freight cost against the freight revenue. Rents and other income on assets sold with a buy-back commitment Commercial and Specialty Vehicles enters into transactions for the sale of vehicles to some customers with an obligation to repurchase (“buy-back commitment”) the vehicles at the end of a period (“buy-back period”) at the customer’s request. For these types of arrangements, at inception, CNH Industrial assesses whether a significant economic incentive exists for the customer to exercise the option. If CNH Industrial determines that a significant economic incentive exists for the customer to exercise the buy-back option, the transaction is accounted for as an operating lease. In such case, vehicles are accounted for as Property, plant and equipment because the agreements typically have a long-term buy-back period. 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 in “Other liabilities” and is comprised of the repurchase value of the vehicle, and the rents to be recognized in the future recorded as contract liability. These rents are determined at the inception of the contract as the difference between the initial sale price and the repurchase price and are recognized as revenue on a straight-line basis over the term of the agreement. At the end of the agreement term, upon exercise of the option, the used vehicles are reclassified from Property, plant and equipment to Inventories. The proceeds from the sale of such vehicles are recognized as Revenues. If CNH Industrial determines that a significant economic incentive does not exist for the customer to exercise the buy-back option, the transaction is treated as a sale with a variable consideration whose variable component is the buy-back provision accrual. The buy-back provision accrual is the difference between the repurchase price and the estimated market value of the used vehicle at the end of the buy-back period and is recorded only when the repurchase price is greater than the estimated market value of the used vehicle. The buy-back provision accrual is estimated and recognized as a reduction of revenues at the time of the sale. Any subsequent change following such periodic reassessment is recognized as a reduction of revenues at that time. Finance and interest income 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 90 days delinquent, whichever occurs earlier. Interest accrual is resumed when and if the receivable becomes contractually current and collection becomes probable. Previously suspended income is recognized at that time. The Company applies cash received on nonaccrual financing receivables to first reduce any unrecognized interest and then the recorded investment and any other fees. Receivables are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Delinquency is reported on receivables greater than 30 days past due. Charge-offs of principal amounts of receivables outstanding are deducted from the allowance at the point when it is determined to be probable that all amounts due will not be collected. Rents and other income on operating leases 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 base warranty costs for the product. 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 $162 million , $121 million, and $167 million for the years ended December 31, 2021, 2020, and 2019, 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, 2021, 2020 and 2019, the Company recorded net losses of $129 million, $11 million and $155 million, respectively. Included in the net losses in 2021, 2020 and 2019 were charges of $47 million, $56 million and $71 million due to the devaluation of net monetary assets of Argentinian subsidiaries in 2021, 2020, and 2019, respectively. As described in Note 15: Financial Instruments, the Company uses hedging instruments to mitigate foreign currency risk. Net of gains realized on foreign currency hedging instruments, the Company recorded losses of $60 million, $57 million and $80 million for the three years ended December 31, 2021, 2020 and 2019, respectively. 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 $581 million, $667 million, and $762 million for the years ended December 31, 2021, 2020, and 2019, respectively. For 2021, 2020, and 2019, the amount includes a charge of $8 million, $— million, and $27 million, respectively, in connection with the Company’s accelerated debt redemption strategy. CNH Industrial paid taxes of $457 million, $159 million, and $208 million in 2021, 2020, and 2019, respectively. In 2021, Other non-cash items of $323 million primarily included writedowns of buybacks on operating leases of $47 million, writedowns of financial assets of $45 million, and remeasurement at fair value of the investment in Nikola Corporation of $138 million. In 2020, Other non-cash items of $570 million primarily included writedowns of tangible and intangible assets of $259 million, writedowns of buybacks on operating leases of $162 million and writedowns of financial assets of $152 million offset by the gain on remeasurement at fair value of the investment in Nikola Corporation of $134 million. In 2021, Investing Activities - Other primarily included the cash paid for the acquisition of Raven Industries Inc of $2.1 billion. 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 the lifetime expected credit losses inherent in the trade receivables and financing receivables portfolios owned by the Company. Retail financing receivables that share the same risk characteristics (such as, collateralization levels, geography, product type and other relevant factors) are reviewed on a collective basis using measurement models and management judgment. The allowance for 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 loss forecast models are updated on a quarterly basis. The calculation is adjusted for forward looking macroeconomic factors, such as gross domestic product (GDP) and Net Farm Income. The forward-looking macroeconomic factors are updated quarterly. In addition, qualitative factors that are not fully captured in the loss forecast models are considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective and require a degree of management judgment. Wholesale financing receivables and trade receivables that share the same risk characteristics (such as collateralization levels, term, geography and other relevant factors) are reviewed on a collective basis using measurement models and management judgment. The allowances for trade and wholesale credit losses are based on loss forecast models that consider a variety of factors that include, but are not limited to, historical loss experience, collateral value, portfolio balance and delinquency. The loss forecast models are updated on a quarterly basis. The calculation is adjusted for forward looking macroeconomic factors, such as industry sales volumes. The forward-looking macroeconomic factors are updated quarterly. In addition, qualitative factors that are not fully captured in the loss forecast models are considered in the evaluation of the adequacy of the allowances for credit losses. These qualitative factors are subjective and require a degree of management judgment. Wholesale and retail financing receivables and trade receivables that do not have similar risk characteristics are individually reviewed based on, among other items, amounts outstanding, days past due and prior collection history. Expected credit losses are measured by considering: the probability-weighted estimates of cash flows and collateral value; the time value of money; current conditions and forecasts of future economic conditions. Expected credit losses are measured as the probability-weighted present value of all cash shortfalls (including the value of the collateral, if appropriate) over the expected life of each financial asset. 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 The following paragraph presents the Company’s policy for leases for which it is a lessee. Lease policy A lease is a contract that conveys the right to control the use of an identified asset (the leased asset) for a period of time in exchange for consideration. The lease term determined by the Company comprises the non-cancellable period of lease contract together with both periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option. For real estate leases, this assessment is based on an analysis by management of all relevant facts and circumstances including the leased asset’s purpose, the economic and practical potential for replacing and any plans that the Company has in place for the future use of the asset. For lease agreements, we combine lease and non-lease components. For leases with terms not exceeding twelve months (short-term leases), the Company recognizes the lease payments associated with those leases on a straight-line basis over the lease term as operating expense in the income statement. For all other leases, the right-of-use asset includes the amount of lease liability recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Correspondingly, the Company recognizes a lease liability, measured at the present value of lease payments to be made over the lease term, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. The incremental borrowing rate is determined considering macro-economic factors such as the specific interest rate curve based on the relevant currency and term, as well as specific factors contributing to CNH Industrial’s credit spread. The Company primarily uses the incremental borrowing rate as the discount rate for its lease liabilities. For finance leases, the right-of-use asset is classified within Property, plant and equipment, net and the lease liability, within Debt. Assets held under finance 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. In case of operating leases, the right-of-use asset is classified within Other assets and the lease liability, within Other liabilities. After the commencement date, the Company recognizes in profit or loss a single lease cost, calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis. In particular, after lease commencement, the lease liability is measured at the present value of any remaining lease payments, discounted by using the rate determined at lease commencement, consistently with the model used to calculate the liability related to the finance lease. Correspondingly, the right-of-use asset is measured as the lease liability adjusted by accrued or prepaid rents (i.e., the aggregate difference between the cash payment and straight-line lease cost), remaining unamortized initial direct costs and lease incentives, and any impairments of the right-of-use asset. Equipment on Operating Leases Financial Services purchases leases and equipment from CNH Industrial dealers and o |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following tables summarize previously reported revenues for the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 (in millions) Agriculture $ 14,721 $ 10,923 $ 10,959 Construction 3,081 2,170 2,768 Commercial and Specialty Vehicles 12,160 9,421 10,439 Powertrain 4,419 3,629 4,117 Eliminations and Other (2,759) (1,858) (2,134) Total Industrial Activities 31,622 24,285 26,149 Financial Services 1,870 1,823 2,011 Eliminations and Other (64) (76) (81) Total Revenues $ 33,428 $ 26,032 $ 28,079 The following table disaggregates previously reported revenues by major source for the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 (in millions) Revenues from: Sales of goods $ 30,613 $ 23,333 $ 25,103 Rendering of services and other revenues 688 637 660 Rents and other income on assets sold with a buy-back commitment 321 315 386 Revenues from sales of goods and services $ 31,622 $ 24,285 $ 26,149 Finance and interest income 986 988 1,164 Rents and other income on operating lease 820 759 766 Finance, interest and other income $ 1,806 $ 1,747 $ 1,930 Total Revenues $ 33,428 $ 26,032 $ 28,079 Contract liabilities recorded in Other liabilities were $1,458 million, $1,381 million and $1,236 million at December 31, 2021, 2020 and 2019, respectively. Contract liabilities primarily relate to extended warranties/maintenance and repair contracts, and transactions for the sale of vehicles with a buy-back commitment. During the year ended December 31, 2021, 2020 and 2019, revenues included $473 million, $463 million and $508 million, respectively, relating to contract liabilities outstanding at the beginning of each period. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Receivables | Receivables Trade Receivables, net As of December 31, 2021 and 2020, the Company had trade receivables of $357 million and $506 million, respectively. Trade receivables are shown net of allowances for doubtful accounts of $69 million and $62 million at December 31, 2021 and 2020 respectively. Trade accounts have significant concentrations of credit risk in the Agriculture, Construction and Commercial and Specialty Vehicles segments. There is not a disproportionate concentration of credit risk in any geographic region. 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, 2021 and 2020 is as follows: 2021 2020 (in millions) Retail $ 10,023 $ 9,257 Wholesale 8,550 9,127 Other 89 73 Total $ 18,662 $ 18,457 CNH Industrial provides and administers financing for retail purchases of new and used equipment and vehicles sold through its dealer network. The terms of retail and other notes and finance leases generally range from two 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 based on market interest rates. 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. 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 2021, 2020 or 2019 relating to the termination of dealer contracts. 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 programs. Maturities of financing receivables as of December 31, 2021 are as follows: Amount (in millions) 2022 $ 11,243 2023 2,616 2024 1,991 2025 1,517 2026 884 2027 and thereafter 411 Total $ 18,662 It has been the Company’s experience that substantial portions of retail receivables are repaid before their contractual maturity dates. As a result, the above table should not be regarded as a forecast of future cash collections. Financing receivables have significant concentrations of credit risk in the agriculture, construction and truck business sectors. 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. The Company assesses and monitors the credit quality of its financing receivables based on whether a receivable is classified as Performing or Non-Performing. Financing receivables are considered past due if the required principal and interest payments have not yet been received as of the date such payments were due. Delinquency is reported on financing receivables greater than 30 days past due. Non-performing financing receivables represent loans for which the Company has ceased accruing finance income. These receivables are generally 90 days past due. Finance income for non-performing receivables is recognized on a cash basis. Accrued interest is charged-off to interest income. Interest income charged-off was not material for the year ended December 31, 2021. Interest accrual is resumed if the receivable becomes contractually current and collection becomes probable. Previously suspended income is recognized at that time. As the terms for retail financing receivables are greater than one year, the performing/non-performing information is presented by year of origination for North America, South America and Rest of World. The aging of financing receivables as of December 31, 2021 and 2020 is as follows (in millions): 2021 31-60 Days Past Due 61-90 Days Past Due Total Past Due Current Total Performing Non- Performing Total Retail North America 2021 $ 3,159 $ — $ 3,159 2020 1,688 1 1,689 2019 901 1 902 2018 531 — 531 2017 229 — 229 Prior to 2017 73 — 73 Total $ 13 $ — $ 13 $ 6,568 $ 6,581 $ 2 $ 6,583 South America 2021 $ 881 $ — $ 881 2020 524 — 524 2019 295 — 295 2018 190 — 190 2017 105 — 105 Prior to 2017 72 — 72 Total $ 1 $ — $ 1 $ 2,066 $ 2,067 $ — $ 2,067 Rest of World 2021 $ 598 $ — $ 598 2020 370 4 374 2019 174 1 175 2018 103 1 104 2017 47 — 47 Prior to 2017 5 — 5 Total $ 14 $ 8 $ 22 $ 1,275 $ 1,297 $ 6 $ 1,303 Europe $ — $ — $ — $ 70 $ 70 $ — $ 70 Total Retail $ 28 $ 8 $ 36 $ 9,979 $ 10,015 $ 8 $ 10,023 Wholesale North America $ — $ — $ — $ 2,339 $ 2,339 $ — $ 2,339 South America — — — 633 633 22 655 Rest of World 2 — 2 517 519 — 519 Europe — — — 5,037 5,037 — 5,037 Total Wholesale $ 2 $ — $ 2 $ 8,526 $ 8,528 $ 22 $ 8,550 2020 31-60 Days Past Due 61-90 Days Past Due Total Past Due Current Total Performing Non- Performing Total Retail North America 2020 $ 2,619 $ — $ 2,619 2019 1,571 1 1,572 2018 1,033 1 1,034 2017 543 1 544 2016 262 1 263 Prior to 2016 81 — 81 Total $ 29 $ — $ 29 $ 6,080 $ 6,109 $ 4 $ 6,113 South America 2020 $ 792 $ 1 $ 793 2019 448 3 451 2018 299 4 303 2017 173 2 175 2016 86 1 87 Prior to 2016 71 1 72 Total $ 4 $ 1 $ 5 $ 1,864 $ 1,869 $ 12 $ 1,881 Rest of World 2020 $ 544 $ — $ 544 2019 270 1 271 2018 195 1 196 2017 117 1 118 2016 39 — 39 Prior to 2016 2 — 2 Total $ 7 $ 4 $ 11 $ 1,156 $ 1,167 $ 3 $ 1,170 Europe $ — $ — $ — $ 93 $ 93 $ — $ 93 Total Retail $ 40 $ 5 $ 45 $ 9,193 $ 9,238 $ 19 $ 9,257 Wholesale North America $ — $ — $ — $ 2,722 $ 2,722 $ 31 $ 2,753 South America — — — 537 537 42 579 Rest of World 3 — 3 542 545 — 545 Europe — — — 5,250 5,250 — 5,250 Total Wholesale $ 3 $ — $ 3 $ 9,051 $ 9,054 $ 73 $ 9,127 Allowance for credit losses activity for the three years ended December 31, 2021, 2020 and 2019 is as follows (in millions): December 31, 2021 Retail Wholesale Opening balance $ 381 $ 174 Provision 21 17 Charge-offs, net of recoveries (47) (10) Foreign currency translation and other (22) (6) Ending balance $ 333 $ 175 At December 31, 2021, the allowance for credit losses included a reduction in retail reserves primarily due to the improved outlook for the agricultural industry and a reduced expected impact on credit conditions from the COVID-19 pandemic. The Company continues to monitor the situation and will update the macroeconomic factors and qualitative factors in future periods, as warranted. The provision for credit losses is included in selling, general and administrative expenses. At December 31, 2020, the allowance for credit losses was based on the Company's expectation of deteriorating credit conditions related to the COVID-19 pandemic. . December 31, 2020 Retail Wholesale Opening Balance, as previously reported $ 299 $ 159 Adoption of ASC 326 35 (9) Opening Balance, as recast 334 150 Provision 113 27 Charge-offs, net of recoveries (56) (14) Foreign currency translation and other (10) 11 Ending balance $ 381 $ 174 December 31, 2019 Retail Wholesale Opening balance $ 326 $ 164 Provision 44 12 Charge-offs, net of recoveries (51) (18) Foreign currency translation and other (20) 1 Ending balance $ 299 $ 159 Troubled Debt Restructurings A restructuring of a receivable constitutes a troubled debt restructuring (“TDR”) when the lender grants a concession it would not otherwise consider to a borrower that is experiencing financial difficulties. As a collateral based lender, CNH Industrial typically will repossess collateral in lieu of restructuring receivables. As such, for retail receivables, concessions are typically provided based on bankruptcy court proceedings. For wholesale receivables, concessions granted may include extended contract maturities, inclusion of interest-only periods, modification of a contractual interest rate to a below market interest rate and waiving of interest and principal. TDRs are reviewed along with other receivables as part of management’s ongoing evaluation of the adequacy of the allowance for credit losses. The allowance for credit losses attributable to TDRs is based on the most probable source of repayment, which is normally the liquidation of 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 based on a credit review, the TDR classification is not removed from the receivable. As of December 31, 2021, the Company had 173 retail and finance lease contracts classified as TDRs in North America where a court has determined the concession. The pre-modification value of these contracts was $4 million and the post-modification value was $4 million. Additionally, the Company had 332 accounts with a balance of $22 million in North America undergoing bankruptcy proceedings where a concession has not yet been determined. As of December 31, 2020, the Company had 253 retail and finance lease contracts classified as TDRs in North America where a court has determined the concession. The pre-modification value of these contracts was $9 million and the post-modification value was $8 million. Additionally, the Company had 362 accounts with a balance of $26 million in North America undergoing bankruptcy proceedings where a concession has not yet been determined. 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 previous twelve months ended December 31, 2021 and 2020. As of December 31, 2021 and 2020, the Company had retail and finance lease receivable contracts classified as TDRs in Europe. The pre-modification value was $76 million and $99 million, respectively, and the post-modification value was $69 million and $91 million, respectively. Subsequent re-defaults were not material for retail and finance lease receivable contracts that were modified in a TDR during the previous twelve months ended December 31, 2021 and 2020. As of December 31, 2021 and 2020, CNH Industrial'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 special purpose entity ("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 the securitization programs differ from other entities included in the Company’s consolidated financial statements because the assets they hold are legally isolated from the Company's assets. For bankruptcy analysis purposes, the Company has sold the receivables to the SPEs in a true sale and the SPEs are separate legal entities. Upon transfer of the receivables to the SPEs, the receivables and certain cash flows derived from them become restricted for use in meeting obligations to the SPEs creditors. The SPEs have ownership of cash balances that also have restrictions for the benefit of the SPEs’ investors. The Company’s interests in the SPEs’ receivables are subordinate to the interests of third-party investors. None of the receivables that are directly or indirectly sold or transferred in any of these transactions are available to pay the Company’s creditors until all obligations of the SPE have been fulfilled or the receivables are removed from the SPE. Certain securitization trusts are also VIEs and consequently, the VIEs are consolidated since the Company has both the power to direct the activities that most significantly impact the VIEs' economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. No recourse provisions exist that allow holders of the asset-backed securities issued by the trusts to put those securities back to the Company, although the Company provides customary representations and warranties that could give rise to an obligation to repurchase from the trusts any receivables for which there is a breach of the representations and warranties. Moreover, the Company does not guarantee any securities issued by the trusts. The trusts have a limited life and generally terminate upon final distribution of amounts owed to investors or upon exercise of a cleanup-call option by the Company, in its role as servicer. Furthermore, factoring transactions may be either with recourse or without recourse; certain without recourse transfers include deferred payment clauses (for example, when the payment by the factor of a minor part of the purchase price is dependent on the total amount collected from the receivables), requiring first loss cover, meaning that the transferor takes priority participation in the losses, or requires 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, 2021 and 2020, the carrying amount of such restricted receivables included in financing receivables above are the following (in millions): 2021 2020 Retail note and finance lease receivables $ 6,916 $ 6,224 Wholesale receivables 5,624 7,011 Total $ 12,540 $ 13,235 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories (stated at the lower of cost or market, cost being determined on a FIFO basis) as of December 31, 2021 and 2020 consist of the following: 2021 2020 (in millions) Raw materials $ 2,177 $ 1,525 Work-in-process 1,084 622 Finished goods 3,960 3,875 Total Inventories $ 7,221 $ 6,022 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment A summary of property, plant and equipment as of December 31, 2021 and 2020 is as follows: 2021 2020 (in millions) Land and industrial buildings $ 3,305 $ 3,428 Plant, machinery and equipment 8,994 9,268 Assets sold with buy-back commitment 2,235 2,640 Construction in progress 196 149 Other 778 810 Gross property, plant and equipment 15,508 16,295 Accumulated depreciation (10,812) (11,372) Net property, plant and equipment $ 4,696 $ 4,923 Property, plant and equipment recorded under capital leases were immaterial as of December 31, 2021 and 2020. Depreciation expense on the above property, plant and equipment totaled $751 million, $801 million, and $853 million for the years ended December 31, 2021, 2020, and 2019, respectively. Excluding depreciation for assets sold with buy-back commitments, depreciation expenses totaled $491 million, $524 million, and $548 million for the years ended December 31, 2021, 2020, and 2019, respectively. During 2020, as a result of the significant decline in industry demand and other market conditions due to the economic disruption caused by the COVID-19 pandemic, the Company reviewed its manufacturing footprint and has reassessed the recoverability of certain assets. As a result, the Company recorded property and equipment impairments of $163 million. Agriculture, Construction and Commercial and Specialty Vehicles recognized $111 million, $45 million and $7 million of impairment charges, respectively. In the same period, Commercial and Specialty Vehicles recognized charges, including impairments of assets sold with buy-back commitments, of $282 million in connection with new actions identified in order to realize the asset portfolio of vehicles sold under buy-back commitments. These actions were taken as a result of the significant deterioration of the used vehicle markets in which the segment operates and the consequent impact on truck residual values. Commercial and Specialty Vehicles recognized an impairment loss on new and used vehicles of $33 million, $144 million and $86 million on assets sold with a buy-back commitment for the years ended December 31, 2021, 2020, and 2019, respectively. The losses are recognized in “Cost of goods sold” on the Consolidated Statements of Operations. |
Investments in Unconsolidated S
Investments in Unconsolidated Subsidiaries and Affiliates | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Subsidiaries and Affiliates | Investments in Unconsolidated Subsidiaries and Affiliates A summary of investments in unconsolidated subsidiaries and affiliates as of December 31, 2021 and 2020 is as follows: 2021 2020 (in millions) Equity method $ 630 $ 514 Cost method 62 15 Total $ 692 $ 529 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 (unaudited): For The Years Ended December 31, 2021 2020 2019 (in millions) Net revenue $ 2,468 $ 2,716 $ 2,480 Income before taxes $ 354 $ 133 $ 71 Net income $ 273 $ 50 $ 29 As of December 31, 2021 2020 (in millions) Total Assets $ 8,141 $ 8,529 Total Liabilities $ 6,880 $ 7,449 Total Equity $ 1,261 $ 1,080 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Lessee The Company has mainly operating lease contracts for buildings, plant and machinery, vehicles, IT equipment and machinery. Leases with a term of 12 months or less are not recorded in the balance sheet. For the leases the Company recognized, on a straight-line basis over the lease term, lease expense of $11 million and $16 million and for the year ended December 31, 2021 and 2020, respectively. For the year ended December 31, 2021 and 2020, the Company incurred operating lease expenses of $155 million and $148 million, respectively. At December 31, 2021 and 2020, the Company has recorded approximately $416 million and $454 million of a right-of-use asset, respectively, and $417 million and $453 million of lease liability included in Other Assets Other Liabilities During the year ended December 31, 2021 and 2020, leased assets obtained in exchange for operating lease obligations were $116 million and $131 million, respectively. During the year ended December 31, 2021 and 2020, operating cash outflow for amounts included in the measurement of operating lease obligations was $155 million and $148 million, respectively. Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows: Operating Leases ($ million) 2021 $ 130 2022 87 2023 63 2024 51 2025 37 2026 and thereafter 87 Total future minimum lease payments $ 455 Less: Interest 38 Total $ 417 Lessor The Company, primarily through its Financial Services segment, leases equipment and vehicles to retail customers under operating leases. Our leases typically have terms of 3 to 5 years with options available for the lessee to purchase the equipment at the lease term date. Revenue for non-lease components are accounted for separately. A summary of equipment on operating leases as of December 31, 2021, and 2020 is as follows: 2021 2020 (in millions) Equipment on operating leases $ 2,295 $ 2,442 Accumulated depreciation (492) (464) Net equipment on operating leases $ 1,803 $ 1,978 Depreciation expense on equipment on operating leases is recorded in "Other, net" and amounted to $277 million, $266 million and $250 million for the years ended December 31, 2021, 2020 and 2019, respectively. The following table sets out a maturity analysis of operating lease payments, showing the undiscounted lease payments to be received after the reporting date: Amount (in millions) 2021 $ 245 2022 159 2023 86 2024 34 2025 10 2026 and thereafter — Total undiscounted lease payments $ 534 |
Leases | Leases Lessee The Company has mainly operating lease contracts for buildings, plant and machinery, vehicles, IT equipment and machinery. Leases with a term of 12 months or less are not recorded in the balance sheet. For the leases the Company recognized, on a straight-line basis over the lease term, lease expense of $11 million and $16 million and for the year ended December 31, 2021 and 2020, respectively. For the year ended December 31, 2021 and 2020, the Company incurred operating lease expenses of $155 million and $148 million, respectively. At December 31, 2021 and 2020, the Company has recorded approximately $416 million and $454 million of a right-of-use asset, respectively, and $417 million and $453 million of lease liability included in Other Assets Other Liabilities During the year ended December 31, 2021 and 2020, leased assets obtained in exchange for operating lease obligations were $116 million and $131 million, respectively. During the year ended December 31, 2021 and 2020, operating cash outflow for amounts included in the measurement of operating lease obligations was $155 million and $148 million, respectively. Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows: Operating Leases ($ million) 2021 $ 130 2022 87 2023 63 2024 51 2025 37 2026 and thereafter 87 Total future minimum lease payments $ 455 Less: Interest 38 Total $ 417 Lessor The Company, primarily through its Financial Services segment, leases equipment and vehicles to retail customers under operating leases. Our leases typically have terms of 3 to 5 years with options available for the lessee to purchase the equipment at the lease term date. Revenue for non-lease components are accounted for separately. A summary of equipment on operating leases as of December 31, 2021, and 2020 is as follows: 2021 2020 (in millions) Equipment on operating leases $ 2,295 $ 2,442 Accumulated depreciation (492) (464) Net equipment on operating leases $ 1,803 $ 1,978 Depreciation expense on equipment on operating leases is recorded in "Other, net" and amounted to $277 million, $266 million and $250 million for the years ended December 31, 2021, 2020 and 2019, respectively. The following table sets out a maturity analysis of operating lease payments, showing the undiscounted lease payments to be received after the reporting date: Amount (in millions) 2021 $ 245 2022 159 2023 86 2024 34 2025 10 2026 and thereafter — Total undiscounted lease payments $ 534 |
Leases | Leases Lessee The Company has mainly operating lease contracts for buildings, plant and machinery, vehicles, IT equipment and machinery. Leases with a term of 12 months or less are not recorded in the balance sheet. For the leases the Company recognized, on a straight-line basis over the lease term, lease expense of $11 million and $16 million and for the year ended December 31, 2021 and 2020, respectively. For the year ended December 31, 2021 and 2020, the Company incurred operating lease expenses of $155 million and $148 million, respectively. At December 31, 2021 and 2020, the Company has recorded approximately $416 million and $454 million of a right-of-use asset, respectively, and $417 million and $453 million of lease liability included in Other Assets Other Liabilities During the year ended December 31, 2021 and 2020, leased assets obtained in exchange for operating lease obligations were $116 million and $131 million, respectively. During the year ended December 31, 2021 and 2020, operating cash outflow for amounts included in the measurement of operating lease obligations was $155 million and $148 million, respectively. Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows: Operating Leases ($ million) 2021 $ 130 2022 87 2023 63 2024 51 2025 37 2026 and thereafter 87 Total future minimum lease payments $ 455 Less: Interest 38 Total $ 417 Lessor The Company, primarily through its Financial Services segment, leases equipment and vehicles to retail customers under operating leases. Our leases typically have terms of 3 to 5 years with options available for the lessee to purchase the equipment at the lease term date. Revenue for non-lease components are accounted for separately. A summary of equipment on operating leases as of December 31, 2021, and 2020 is as follows: 2021 2020 (in millions) Equipment on operating leases $ 2,295 $ 2,442 Accumulated depreciation (492) (464) Net equipment on operating leases $ 1,803 $ 1,978 Depreciation expense on equipment on operating leases is recorded in "Other, net" and amounted to $277 million, $266 million and $250 million for the years ended December 31, 2021, 2020 and 2019, respectively. The following table sets out a maturity analysis of operating lease payments, showing the undiscounted lease payments to be received after the reporting date: Amount (in millions) 2021 $ 245 2022 159 2023 86 2024 34 2025 10 2026 and thereafter — Total undiscounted lease payments $ 534 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Changes in the carrying amount of goodwill, for the years ended December 31, 2021 and 2020 are as follows: Agriculture Construction Commercial and Specialty Vehicles Powertrain Financial Services Total (in millions) Balance at January 1, 2020 $ 1,732 $ 587 $ 59 $ 5 $ 155 $ 2,538 Foreign currency translation and other (37) (2) 6 2 2 (29) Goodwill impairment charge — (585) — — — (585) Balance at December 31, 2020 $ 1,695 $ — $ 65 $ 7 $ 157 $ 1,924 Foreign currency translation and other (1) (2) (5) (1) (1) (10) Acquisitions 1,326 51 — — — 1,377 Balance at December 31, 2021 $ 3,020 $ 49 $ 60 $ 6 $ 156 $ 3,291 The acquisitions of Raven and Sampierana during the fourth quarter of 2021 led to an increase in goodwill for Agriculture and Construction of $1.3 billion and $51 million, respectively. Goodwill related to the acquisitions was calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from the other assets acquired that could not be individually identified and separately recognized. The valuation of assets acquired and liabilities assumed has not yet been finalized as of December 31, 2021. Thus, goodwill associated with the acquisitions is subject to adjustment during the measurement period. 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. Goodwill and other indefinite-lived intangible assets are tested for impairment annually or more frequently if a triggering event occurs. During the second quarter of 2020, the Company considered whether a quantitative interim assessment of goodwill for impairment was required as a result of the significant economic disruption caused by the COVID-19 pandemic. Based on the internal and external sources of information considered through June 30, 2020, including the current and expected future economic and market conditions surrounding the COVID-19 pandemic and its impact on each of the reporting units, industry and market considerations, overall financial performance (both current and projected), as well as the amount by which the fair value of the Company’s reporting units exceeded their respective carrying values at the date of the last quantitative assessment, the Company, as part of the qualitative assessment performed, determined these conditions indicated that it was more likely than not that the carrying value of the Construction reporting unit exceeded its fair value as of June 30, 2020. At June 30, 2020, CNH Industrial completed a quantitative impairment assessment for the Construction reporting unit which resulted in a fair value below carrying value. Based on the assessment, the Company recognized a goodwill impairment charge of $585 million for the Construction reporting unit. At December 31, 2020, the Company completed its annual impairment assessment and concluded there was no impairment to goodwill for the other reporting units. At December 31, 2021, the Company completed its annual assessment and concluded that there was no impairment to goodwill for any of the reporting entities. As of December 31, 2021, and December 31, 2020, the Company’s other intangible assets and related accumulated amortization consisted of the following: 2021 2020 Weighted Avg. Life Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in millions) Other intangible assets subject to amortization: Dealer networks 15 $ 310 $ 249 $ 61 $ 311 $ 241 $ 70 Patents, concessions, licenses and other 5-25 2,718 1,703 1,015 2,107 1,678 429 3,028 1,952 1,076 2,418 1,919 499 Other intangible assets not subject to amortization: Trademarks 272 — 272 273 — 273 Total Other intangible assets $ 3,300 $ 1,952 $ 1,348 $ 2,691 $ 1,919 $ 772 During the fourth quarter of 2021, the Company recorded $0.5 billion in intangible assets based on the preliminary valuation for the Raven Industries, Inc. and Sampierana S.p.A. acquisitions. Thus, the intangible assets associated with the acquisitions are subject to adjustment during the measurement period. During 2020, the Company recorded impairment charges of $27 million related to its Construction dealer network and $65 million related to certain software costs in its Agriculture segment. The impairments were included in "Cost of goods sold" in the Consolidated Statement of Operations. There were no impairments to intangible assets in 2021. CNH Industrial recorded amortization expense of $120 million, $105 million, and $112 million during 2021, 2020, and 2019, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 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, 2021, CNH Industrial’s available committed unsecured facilities expiring after twelve months amounted to $5.2 billion ($6.1 billion at December 31, 2020). In March 2019, CNH Industrial signed a five-year committed revolving credit facility for €4 billion ($4.5 billion at March 31, 2019 exchange rate) due to mature in 2024 with two extension options of 1-year each, exercisable on the first and second anniversary of the signing date. CNH Industrial exercised the first of the two extension options as of February 28, 2020 and the second extension option as of February 26, 2021. The facility is now due to mature in March 2026 for €3,950.5 million; the remaining €49.5 million will mature in March 2025. The credit facility replaced the existing five-year €1.75 billion credit facility due to mature in 2021. The €4 billion 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.), includes typical provisions for contracts of this type and size, such as: customary 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 borrower and a financial covenant (Net debt/EBITDA ratio relating to Industrial Activities) that is not applicable with the current ratings levels. 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, 2021, the Company was in compliance with all covenants in the revolving credit facility. At December 31, 2021, Financial Services’ committed asset-backed facilities expiring after twelve months amounted to $3.9 billion ($3.9 billion at December 31, 2020), of which $2.8 billion at December 31, 2021 ($3.7 billion at December 31, 2020) were utilized. Debt A summary of issued bonds outstanding as of December 31, 2021, is as follows: Currency Face value of outstanding bonds (in millions) Coupon Maturity Outstanding amount Industrial Activities Euro Medium Term Notes: CNH Industrial Finance Europe S.A. (1) EUR 75 1.625 % March 29, 2022 85 CNH Industrial Finance Europe S.A. (1) EUR 369 2.875 % May 17, 2023 417 CNH Industrial Finance Europe S.A. (1) EUR 750 0.000 % April 1, 2024 850 CNH Industrial Finance Europe S.A. (1) EUR 650 1.750 % September 12, 2025 736 CNH Industrial Finance Europe S.A. (1) EUR 100 3.500 % November 12, 2025 113 CNH Industrial Finance Europe S.A. (1) EUR 500 1.875 % January 19, 2026 566 CNH Industrial Finance Europe S.A. (1) EUR 600 1.750 % March 25, 2027 680 CNH Industrial Finance Europe S.A. (1) EUR 50 3.875 % April 21, 2028 57 CNH Industrial Finance Europe S.A. (1) EUR 500 1.625 % July 3, 2029 566 CNH Industrial Finance Europe S.A. (1) EUR 50 2.200 % July 15, 2039 57 Other Bonds: CNH Industrial N.V. (2) USD 600 4.500 % August 15, 2023 600 CNH Industrial N.V. (2) USD 500 3.850 % November 15, 2027 500 Hedging effects, bond premium/discount, and unamortized issuance costs (43) Total Industrial Activities 5,184 Financial Services CNH Industrial Capital LLC USD 500 4.375 % April 5, 2022 500 CNH Industrial Capital Australia Pty Ltd. AUD 175 2.100 % December 12, 2022 127 CNH Industrial Capital LLC USD 600 1.950 % July 2, 2023 600 CNH Industrial Capital Argentina SA USD 31 0.000 % August 31, 2023 31 CNH Industrial Capital LLC USD 500 4.200 % January 15, 2024 500 CNH Industrial Capital Australia Pty Ltd. AUD 200 1.750 % July 8, 2024 145 CNH Industrial Capital Australia Pty Ltd. AUD 50 1.750 % July 8, 2024 36 CNH Industrial Capital Canada Ltd CAD 300 1.500 % October 1, 2024 236 CNH Industrial Capital LLC USD 500 1.875 % January 15, 2026 500 CNH Industrial Capital LLC USD 600 1.450 % July 15, 2026 600 Hedging effects, bond premium/discount, and unamortized issuance costs 5 Total Financial Services 3,280 (1) Bond listed on the Irish Stock Exchange (2) Bond listed on the New York Stock Exchange A summary of total debt as of December 31, 2021 and 2020, is as follows: 2021 2020 Industrial Activities Financial Services Total Industrial Activities Financial Services Total (in millions) Total Bonds $ 5,184 $ 3,280 $ 8,464 $ 6,366 $ 3,216 $ 9,582 Asset-backed debt — 11,055 11,055 — 11,922 11,922 Other debt 181 4,045 4,226 905 3,644 4,549 Intersegment debt 798 1,055 — 1,017 856 — Total Debt $ 6,163 $ 19,435 $ 23,745 $ 8,288 $ 19,638 $ 26,053 The weighted-average interest rate on consolidated debt at December 31, 2021, and 2020 was 2.3% and 2.5%, respectively. ‘BBB+’ In November 2015, CNH Industrial Finance Europe S.A. issued €100 million of notes, due in 2025 and bearing fixed interest at a rate of 3.500% (the “3.500% CIFE Notes”). The 3.500% CIFE Notes have been issued under the €10 billion Global Medium Term Note Programme unconditionally and irrevocably guaranteed by CNH Industrial N.V. In April 2016, CNH Industrial Finance Europe S.A. issued €50 million of notes as a private placement, due in 2028 and bearing fixed interest at a rate of 3.875% (the “3.875% CIFE Notes”). The 3.875% CIFE Notes have been issued under the €10 billion Global Medium Term Note Programme unconditionally and irrevocably guaranteed by CNH Industrial N.V. In May 2016, CNH Industrial Finance Europe S.A. issued €500 million of notes at an annual fixed rate of 2.875% (the “2.875% Notes”) due May 2023, at an issue price of 99.221%. The 2.875% Notes have been issued under the €10 billion Global Medium Term Note Programme unconditionally and irrevocably guaranteed by CNH Industrial N.V. In December 2019, in order to manage its liabilities, CNH Industrial Finance Europe S.A. repurchased, through a public tender, an aggregate nominal amount of €131 million of the 2.875% notes due May 17, 2023 issued under the EMTN. 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 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% of their principal amount. The 1.625% CIFE Notes were issued under the €10 billion Global Medium Term Note Programme ("EMTN") guaranteed by CNH Industrial N.V. In April 2017, CNH Industrial Capital LLC issued at par $500 million of 4.375% notes due in 2022. 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% of their principal amount. The 1.750% CIFE Notes were issued under the €10 billion EMTN guaranteed by CNH Industrial N.V. 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 August 2018, S&P Global Ratings raised its long-term issuer credit ratings on CNH Industrial N.V. and its subsidiary, CNH Industrial Capital LLC, to ‘BBB’ from ‘BBB-’. The outlook is stable. Additionally, S&P Global Ratings raised the issue-level ratings on CNH Industrial N.V. and its industrial subsidiaries' debt, as well as the issue-level ratings on CNH Industrial Capital LLC's senior unsecured debt, to ‘BBB’ from ‘BBB-’. In August 2018, CNH Industrial Capital LLC refinanced an April 2018 maturity by issuing $500 million of 4.200% notes due in January 2024 with an issue price of 99.701% of their principal amount. In September 2018, CNH Industrial Finance Europe S.A. issued €500 million of notes at an annual fixed rate of 1.875% due in 2026 (the “1.875% CIFE Notes”) at an issue price of 98.944% of their principal amount. The 1.875% CIFE Notes were issued under the €10 billion EMTN guaranteed by CNH Industrial N.V . In December 2018, Moody's Investors Service ("Moody's") upgraded the senior unsecured ratings of CNH Industrial N.V. and its subsidiaries CNH Industrial Capital LLC and CNH Industrial Finance Europe S.A from ‘Ba1’ to ‘Baa3’. The outlook is stable. In March 2019, CNH Industrial Finance Europe S.A. issued €600 million of notes at an annual fixed rate of 1.75% due in 2027. The 1.75% CIFE Notes were issued under the €10 billion EMTN guaranteed by CNH Industrial N.V. at an issue price of 98.597% of their principal amount. In July 2019, CNH Industrial Finance Europe S.A. issued €500 million of notes at an annual fixed rate of 1.625% notes due in 2029 (the “1.625% CIFE Notes”) with an issue price of 98.926% of their principal amount. The 1.625% CIFE Notes were issued under the €10 billion EMTN guaranteed by CNH Industrial N.V. In July 2019, CNH Industrial Finance Europe S.A. issued as a private placement €50 million of notes at an annual fixed rate of 2.200% due in 2039 (the “2.200% CIFE Notes”) at an issue price of 98.285% of their principal amount. The 2.200% CIFE Notes were issued under the €10 billion EMTN guaranteed by CNH Industrial N.V. In December 2019, CNH Industrial Capital Australia Pty. Limited issued AUD 175 million of 2.100% notes due in 2022 at an issue price of 99.899% of their principal amount. In July 2020, CNH Industrial Capital LLC issued $600 million of 1.950% notes due in 2023 at an issue price of 99.370% of their principal amount. In August 2020, CNH Industrial Capital Argentina SA completed a first public offering for $31 million of notes due in 2023. In October 2020, CNH Industrial Capital LLC issued $500 million of 1.875% notes due in 2026, with an issue price of 99.761% of their principal amount. In December 2020, CNH Industrial Finance Europe S.A. issued €750 million of notes at an annual fixed rate of 0.000% due in 2024 at an issue price of 99.910% of their principal amount. These notes were issued under the €10 billion EMTN guaranteed by CNH Industrial N.V. In May 2021, CNH Industrial Capital LLC issued $600 million of 1.450% notes due in 2026 at an issue price of 99.208% of their principal amount. In July 2021, CNH Industrial Capital Australia Pty. Limited issued AUD200 million of 1.750% notes due in 2024 at an issue price of 99.863% of their principal amount. In September 2021, CNH Industrial Capital Australia Pty. Limited issued AUD50 million of 1.750% notes due in 2024 at an issue price of 101.069% of their principal amount. The issue is a private placement. In September 2021, CNH Industrial Capital Canada Ltd issued CAD $300 million of 1.500% notes due in 2024 at an issue price of 99.936% of their principal amount. On January 4, 2022 Fitch Ratings raised its Long-Term Issuer Default Rating on CNH Industrial N.V. to ‘BBB+’ from ‘BBB-’. Fitch also upgraded CNH Industrial Finance Europe S.A.’s senior unsecured rating to ‘BBB+’ from ‘BBB-'. The Outlook is Stable. On January 7, 2022 Fitch has upgraded the Long-Term Issuer Default Ratings and senior unsecured debt ratings of CNH Industrial Capital LLC (CNHI Capital) and CNH Industrial Capital Canada Ltd. (CNH Canada) to 'BBB+' from 'BBB-'. The Rating Outlook is Stable. Fitch has also upgraded CNHI Capital's Short-Term IDR and commercial paper (CP) ratings to 'F2' from 'F3'. The bonds issued by CNH Industrial 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 Note 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 $1.1 billion and $1.2 billion at December 31, 2021 and 2020, 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 or commercial vehicles in accordance with the program. A summary of the minimum annual repayments of debt as of December 31, 2021, for 2022 and thereafter is as follows: Industrial Activities Financial Services Consolidated (in millions) 2022 $ 187 $ 9,874 $ 10,061 2023 1,036 3,296 4,332 2024 854 2,516 3,370 2025 852 974 1,826 2026 568 1,577 2,145 2027 and thereafter 1,868 143 2,011 Intersegment 798 1,055 — Total $ 6,163 $ 19,435 $ 23,745 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes CNH Industrial N.V. and its subsidiaries have substantial worldwide operations and incur tax obligations in the jurisdictions in which they operate. The Company’s provision (benefit) for income taxes as reported in its consolidated statements of operations for the year ended December 31, 2021 of $342 million consists almost entirely of income taxes related to 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, 2021, 2020, and 2019 are as follows: 2021 2020 2019 (in millions) Parent country source $ 169 $ (131) $ (3) Foreign sources 1,811 (374) 1,173 Income (loss) before taxes and equity in income of unconsolidated subsidiaries and affiliates $ 1,980 $ (505) $ 1,170 The provision for income taxes for the years ended December 31, 2021, 2020 and 2019 consisted of the following: 2021 2020 2019 (in millions) Current income taxes $ 593 $ 235 $ 203 Deferred income taxes (251) (285) (474) Total income tax provision (benefit) $ 342 $ (50) $ (271) CNH Industrial N.V. is incorporated in the Netherlands but is a tax resident of the United Kingdom ("U.K."). The reconciliation of the differences between the provision for income taxes and the statutory rate is presented based on the weighted average of the U.K. statutory corporation tax rates in force over each of the Company’s calendar year reporting periods of 19% in 2019, 2020, and 2021. Reconciliations of CNH Industrial’s income tax expense for the years ended December 31, 2021, 2020 and 2019 are as follows: 2021 2020 2019 (in millions) Tax provision at the parent statutory rate $ 376 $ (96) $ 222 Foreign income taxed at different rates 125 (6) 79 Change in valuation allowance (170) (9) (502) Italian IRAP taxes 15 12 14 Tax contingencies 8 5 7 Tax credits and incentives (86) (36) (88) Goodwill impairment — 111 — Nikola fair value remeasurement effect 24 (24) — Change in tax rate or law (10) (14) (5) Withholding taxes 15 — 2 Other 45 7 — Total income tax provision (benefit) $ 342 $ (50) $ (271) The increased tax expense in 2021, as compared to 2020, was largely attributable to substantially improved pre-tax results. During 2021, the Nikola fair value remeasurement loss negatively impacted the Company’s effective tax rate as did non-deductible expenses associated with the Demerger of the Iveco Group Business and the acquisition of Raven Industries, Inc. These increases to income tax expense were partly offset by the Company recognizing deferred tax assets associated with the agricultural and construction equipment operations in Brazil following the reorganization of the formerly fully-integrated businesses in the fourth quarter of 2021 in that jurisdiction in preparation for the spin-off of Iveco Group, resulting in a $161 million tax benefit, and generating pre-tax earnings in other jurisdictions which resulted in previously unrecognized deferred tax assets to be realized. The Company also generated additional tax credit and incentive benefits during 2021. Lastly, the Company’s 2021 tax rate improved due to the non-recurrence of the $585 million non-deductible goodwill impairment charge. The reduced tax benefit in 2020, as compared to 2019, was largely attributable to lower pre-tax profits and the favorable tax effect associated with the Nikola fair value remeasurement, which were more than offset by the negative impacts of the $585 million non-deductible goodwill impairment charge, a substantial reduction to the net impact of changes in valuation allowances, primarily due to the non-recurrence of the $539 million discrete tax benefit related to recognizing certain Italian deferred tax assets described below and reduced benefits of tax credits and incentives. At December 31, 2021, undistributed earnings in certain subsidiaries outside the U.K. totaled approximately $7 billion for which no deferred tax liability has been recorded because the remittance of earnings from those jurisdictions would incur no tax, or such earnings are indefinitely reinvested. The Company has determined the amount of unrecognized deferred tax liability relating to the $7 billion of undistributed earnings was approximately $219 million and was attributable to withholding taxes and incremental local country income taxes in certain jurisdictions. Further, the Company evaluated the undistributed earnings from joint ventures in which it owned 50% or less and recorded $11 million of deferred tax liabilities as of December 31, 2021. The repatriation of undistributed earnings to the U.K. is generally exempt from U.K. income taxes. Deferred Income Tax Assets and Liabilities The components of net deferred tax assets as of December 31, 2021 and 2020 are as follows: 2021 2020 (in millions) Deferred tax assets: Inventories $ — $ 85 Warranty and campaigns 224 217 Allowance for credit losses 147 159 Marketing and sales incentive programs 308 272 Other risk and future charges reserve 236 256 Pension, postretirement and postemployment benefits 214 271 Leasing liabilities 109 117 Research and development costs 308 306 Other reserves 607 400 Tax credits and loss carry forwards 652 798 Less: Valuation allowances (736) (941) Total deferred tax assets $ 2,069 $ 1,940 Deferred tax liabilities: Property, plant and equipment $ 454 $ 423 Other 303 178 Total deferred tax liabilities 757 601 Net deferred tax assets $ 1,312 $ 1,339 Net deferred tax assets are reflected in the accompanying consolidated balance sheets as of December 31, 2021 and 2020 as follows: 2021 2020 (in millions) Deferred tax assets $ 1,481 $ 1,451 Deferred tax liabilities (139) (112) Other liabilities (30) — Net deferred tax assets $ 1,312 $ 1,339 Valuation Allowances As of December 31, 2021, the Company has valuation allowances of $736 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 certain operations in China, Germany, Italy and the U.K. CNH Industrial has gross tax loss carry forwards in several tax jurisdictions. These tax losses expire as follows: $89 million in 2022; $59 million in 2023; $35 million in 2024; $58 million in 2025; $329 million in 2026 and beyond. CNH Industrial also has tax loss carry forwards of approximately $2 billion with indefinite lives. CNH Industrial has tax credit carry forwards of $57 million which expire in 2026 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 2009 to 2020. 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: 2021 2020 (in millions) Balance, beginning of year $ 270 $ 255 Additions based on tax positions related to the current year 30 19 Additions for tax positions of prior years 11 39 Reductions for tax positions of prior years (32) (5) Reductions for tax positions as a result of lapse of statute (1) (37) Settlements (38) (1) Balance, end of year $ 240 $ 270 As of December 31, 2021, there are $200 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, 2021, 2020 and 2019, the Company recognized expense of approximately $1 million, $1 million and $6 million for income tax related interest and penalties, respectively. The Company had approximately $18 million, $27 million and $25 million of income tax related interest and penalties accrued at December 31, 2021, 2020 and 2019, respectively. |
Employee Benefit Plans and Post
Employee Benefit Plans and Postretirement Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans and Postretirement Benefits | 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, 2021, 2020, and 2019, CNH Industrial recorded expense of $206 million, $188 million, and $188 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 U.S., the U.K., 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. In 2019, CNH Industrial signed a group annuity contract to transfer the outstanding pension benefit obligations related to certain retirees and beneficiaries within the U.S. plans. In connection with this transaction, $431 million of plan obligations were transferred along with $451 million of plan assets. The Company also recognized a $116 million pre-tax non-cash settlement charge, primarily related to the accelerated recognition of actuarial losses in those plans in the fourth quarter of 2019, recorded in Other, Net on the Consolidated Statement of Operations. In 2020, CNH Industrial signed group annuity contracts to transfer the outstanding pension benefit obligations related to certain retirees and beneficiaries within the U.S. plans. In connection with these transactions, $550 million of plan obligations were transferred along with $550 million of plan assets. The Company also recognized a $125 million pre-tax non-cash settlement charge, primarily related to the accelerated recognition of actuarial losses in those plans in the fourth quarter of 2020, recorded in Other, Net on the Consolidated Statement of Operations. 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. On February 20, 2018, CNH Industrial announced that the United States Supreme Court ruled in its favor in Reese vs. CNH Industrial N.V. and CNH Industrial America LLC. The decision allowed CNH Industrial to terminate or modify various retiree healthcare benefits previously provided to certain UAW Union represented CNH Industrial retirees. On April 16, 2018, CNH Industrial announced its determination to modify the Benefits provided to the applicable retirees (“Benefits Modification”) to make them consistent with the Benefits provided to current eligible CNH Industrial retirees who had been represented by the UAW. The Benefits Modification resulted in a reduction of the plan liability by $527 million. This amount will be amortized from OCI to the income statement over approximately 4.5 years, which represents the average service period to attain eligibility conditions for active participants. For the years ended December 31, 2021, 2020 and 2019, $119 million, $119 million and $119 million of amortization was recorded as a pre-tax gain in Other, net, respectively. In 2021, CNH Industrial communicated plan changes for the US retiree medical plan. The plan changes resulted in a reduction of the plan liability by $100 million. This amount will be amortized from OCI to the income statement over approximately 4 years, which represents the average service period to attain eligibility conditions for active participants. 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, 2021 and 2020: Pension Healthcare (1) Other (1) 2021 2020 2021 2020 2021 2020 (in millions) Change in benefit obligations: Beginning benefit obligation $ 2,659 $ 2,938 $ 418 $ 412 $ 455 $ 431 Service cost 22 22 4 4 18 16 Interest cost 22 44 6 10 1 1 Plan participants’ contributions 3 3 6 5 — — Actuarial loss (gain) (94) 215 (20) 21 11 — Gross benefits paid (100) (139) (36) (37) (33) (31) Plan amendments — 2 (100) 1 — — Currency translation adjustments and other (2) (70) (426) 11 2 (36) 38 Ending benefit obligation $ 2,442 $ 2,659 $ 289 $ 418 $ 416 $ 455 Change in the fair value of plan assets: Beginning plan assets 1,807 2,096 145 152 — — Actual return on plan assets 85 231 9 17 — — Employer contributions 52 70 — — — — Plan participants’ contributions 3 3 — — — — Gross benefits paid (75) (114) (9) (9) — — Currency translation adjustments and other (2) (32) (479) (15) (15) — — Ending plan assets 1,840 1,807 130 145 — — Funded status: $ (602) $ (852) $ (159) $ (273) $ (416) $ (455) (1) The healthcare and other postemployment plans are not required to be prefunded. (2) Includes the impact of the transfer of the outstanding pension benefit obligations related to certain retirees and beneficiaries within the U.S. plans through group annuity contract purchases in the fourth quarter 2020. The following summarizes data from CNH Industrial’s defined benefit pension plans by significant geographical area for the years ended December 31, 2021 and 2020: U.S. U.K Germany (1) Other Countries (1) 2021 2020 2021 2020 2021 2020 2021 2020 (in millions) Change in benefit obligations: Beginning benefit obligation $ 177 $ 666 $ 1,608 $ 1,488 $ 449 $ 424 $ 425 $ 360 Service cost 3 4 — — 4 4 15 14 Interest cost 4 16 16 24 1 2 1 2 Plan participants’ contributions — — — — — — 3 3 Actuarial loss (gain) (15) 80 (27) 99 (26) 6 (26) 30 Gross benefits paid 5 (40) (61) (58) (25) (25) (18) (16) Plan amendments — 2 — — — — — — Currency translation adjustments and other (2) — (551) (18) 55 (32) 38 (21) 32 Ending benefit obligation $ 174 $ 177 $ 1,518 $ 1,608 $ 371 $ 449 $ 379 $ 425 Change in the fair value of plan assets: Beginning plan assets 204 700 1,230 1,067 5 5 368 324 Actual return on plan assets (4) 93 62 118 — — 27 20 Employer contributions — — 41 59 — — 11 11 Plan participants’ contributions — — — — — — 3 3 Gross benefits paid 5 (40) (60) (58) — — (19) (16) Currency translation adjustments and other (2) — (549) (17) 44 (1) — (15) 26 Ending plan assets $ 205 $ 204 $ 1,256 $ 1,230 $ 4 $ 5 $ 375 $ 368 Funded status: $ 31 $ 27 $ (262) $ (378) $ (367) $ (444) $ (4) $ (57) (1) Pension benefits in Germany and some other countries are not required to be prefunded. (2) Includes the impact of the transfer of the outstanding pension benefit obligations related to certain retirees and beneficiaries within the U.S. plans through group annuity contract purchases in the fourth quarter of 2021 and 2020. Net amounts recognized in the consolidated balance sheets as of December 31, 2021 and 2020 consist of: Pension Healthcare Other 2021 2020 2021 2020 2021 2020 (in millions) Other assets $ 57 $ 37 $ — $ — $ — $ — Pension, postretirement and other postemployment benefits (659) (889) (159) (273) (416) (455) Net liability recognized at end of year $ (602) $ (852) $ (159) $ (273) $ (416) $ (455) Pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 2021 consist of: Pension Healthcare Other (in millions) Unrecognized actuarial losses $ 631 $ 33 $ 106 Unrecognized prior service credit 3 (206) (6) Accumulated other comprehensive loss $ 634 $ (173) $ 100 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 2021 2020 (in millions) Accumulated benefit obligation $ 1,963 $ 2,384 Fair value of plan assets $ 1,312 $ 1,526 The following table summarizes CNH Industrial’s pension and other postemployment plans with projected benefit obligations in excess of plan assets: Pension Healthcare Other 2021 2020 2021 2020 2021 2020 (in millions) Projected benefit obligation $ 2,068 $ 2,428 $ 289 $ 418 $ 416 $ 455 Fair value of plan assets $ 1,409 $ 1,539 $ 130 $ 145 $ — $ — The total accumulated benefit obligation for pension was $2,417 million and $2,627 million as of December 31, 2021 and 2020, 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, 2021, 2020, and 2019: Pension Healthcare Other 2021 2020 2019 2021 2020 2019 2021 2020 2019 (in millions) Service cost $ 22 $ 22 $ 23 $ 4 $ 4 $ 5 $ 18 $ 16 $ 13 Interest cost 22 44 74 6 10 14 1 1 3 Expected return on assets (66) (80) (99) (7) (7) (7) — — — Amortization of: Prior service cost (credit) — — 1 (136) (130) (125) — — 1 Actuarial loss (gain) 31 40 67 3 2 (2) 7 5 14 Settlement loss and other — 125 125 — — — 2 2 2 Net periodic benefit cost (credit) $ 9 $ 151 $ 191 $ (130) $ (121) $ (115) $ 28 $ 24 $ 33 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 2021 consist of: Pension Healthcare Other (in millions) Net periodic benefit cost $ 9 $ (130) $ 28 Benefit adjustments included in other comprehensive (income) loss: Net actuarial losses (gains) (113) (23) 8 Amortization of actuarial losses (31) (3) (6) Amortization of prior service (cost) credit — 136 — Currency translation adjustments and other (18) (100) (4) Total recognized in other comprehensive (income) loss (162) 10 (2) Total recognized in comprehensive loss $ (153) $ (120) $ 26 Assumptions The following assumptions were utilized in determining the funded status at December 31, 2021 and 2020, and the net periodic benefit cost of CNH Industrial’s defined benefit plans for the years ended December 31, 2021, 2020, and 2019: Pension plans Healthcare plans Other (in %) 2021 2020 2019 2021 2020 2019 2021 2020 2019 Assumptions used to determine funded status at December 31 Weighted-average discount rate 1.63 1.12 1.88 2.54 2.12 2.99 0.96 0.47 0.69 Weighted-average rate of compensation increase 2.12 2.07 2.99 n/a n/a n/a 2.14 1.85 1.91 Weighted-average, initial healthcare cost trend rate n/a n/a n/a 4.18 4.39 4.68 n/a n/a n/a Weighted-average, ultimate healthcare cost trend rate(*) n/a n/a n/a 3.58 3.95 4.20 n/a n/a n/a Assumptions used to determine expense Weighted-average discount rates - service cost 0.69 1.06 1.97 2.47 3.15 4.03 0.63 0.81 1.76 Weighted-average discount rates - interest cost 0.86 1.62 2.58 1.53 2.58 3.53 0.41 0.61 1.50 Weighted-average rate of compensation increase 2.07 2.99 3.00 n/a n/a n/a 1.85 1.91 1.41 Weighted-average long-term rates of return on plan assets 3.69 4.02 4.68 4.85 5.00 5.50 n/a n/a n/a Weighted-average, initial healthcare cost trend rate n/a n/a n/a 4.39 4.68 6.17 n/a n/a n/a Weighted-average, ultimate healthcare cost trend rate(*) n/a n/a n/a 3.95 4.20 5.00 n/a n/a n/a (*) CNH Industrial expects to achieve the ultimate healthcare cost trend rate in 2028 for U.S. plans. A flat trend rate assumption is utilized for the Canada plans. 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. CNH Industrial annually reviews the mortality assumptions and demographic characteristics of its U.S. pension plan and healthcare plan participants. In October 2019, the SOA issued an updated mortality base table ("Pri-2012") as well as an updated mortality improvement scale (“MP-2019”). In 2019, the Company adopted the variant of blue-collar tables of the Pri-2012 for the US pension plans and the no collar variant of the PriH-2012 for the US healthcare plans, including the new survivor mortality as well as MP-2019 mortality improvement scale. The adoption of the new mortality assumption resulting in a total decrease of $14 million to the Company's benefit obligations at December 31, 2019, of which, $11 million and $3 million were related to pension plans and healthcare plans, respectively. In 2020, the Company adopted the no-collar variant of the Pri-2012 base table for the US pension plans subsequent to the settlement of a portion of the outstanding pension obligation through purchase of annuity contracts. Additionally, the Company adopted the updated mortality improvement scale issued by the SOA ("MP-2020"). The adoption of the new mortality assumptions resulted in a total decrease of $7.8 million to the Company’s benefit obligations at December 31, 2020, of which $8.6 million and $(0.8) million were related to pension plans and healthcare plans, respectively. In 2021, the Company adopted the updated mortality improvement scale issued by the SOA ("MP-2021"). The adoption of the new mortality assumptions resulted in a total increase of $1.3 million to the Company’s benefit obligations at December 31, 2021, of which $0.5 million and $0.8 million were related to pension plans and healthcare plans, respectively. The Company uses the spot yield curve approach to estimate the service and interest cost components of the net periodic pension and other postretirement benefit costs by applying the specific spot rates along the yield curve used to determine the benefit obligations to relevant projected cash outflows. 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 2021 are as follows: All Plans Asset category: Equity securities 11 % Debt securities 44 % Cash/Other 45 % 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 instruments in active markets. Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The following summarizes the fair value of plan assets by asset category and level within the fair value hierarchy as of December 31, 2021: Total Level 1 Level 2 Level 3 (in millions) Equity securities: U.S. equities $ — $ — $ — $ — Non-U.S. equities — — — — Total Equity securities — — — — Fixed income securities: U.S. government bonds 72 72 — — U.S. corporate bonds 7 1 6 — Non-U.S. government bonds 40 9 31 — Non-U.S. corporate bonds 18 — 18 — Mortgage backed securities — — — — Other fixed income — — — — Total Fixed income securities 137 82 55 — Other types of investments: Mutual funds (A) 1,588 — 1,588 — Insurance contracts 207 — — 207 Derivatives—credit contracts — — — — Real estate — — — — Total Other types of investments 1,795 — 1,588 207 Cash: 37 17 20 — Total $ 1,969 $ 99 $ 1,663 $ 207 (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, 2021: Insurance Contracts (in millions) Balance at December 31, 2020 $ 200 Actual return on plan assets relating to assets still held at reporting date 16 Purchases 9 Settlements (9) Transfers in and/or out of level 3 — Currency impact (9) Balance at December 31, 2021 $ 207 The following summarizes the fair value of plan assets by asset category and level within the fair value hierarchy as of December 31, 2020: Total Level 1 Level 2 Level 3 (in millions) Equity securities: U.S. equities $ — $ — $ — $ — Non-U.S. equities — — — — Total Equity securities — — — — Fixed income securities: U.S. government bonds 32 30 2 — U.S. corporate bonds 42 5 37 — Non-U.S. government bonds 49 10 39 — Non-U.S. corporate bonds 25 — 25 — Mortgage backed securities — — — — Other fixed income — — — — Total Fixed income securities 148 45 103 — Other types of investments: Mutual funds (A) 1,582 21 1,561 — Insurance contracts 200 — — 200 Derivatives—credit contracts — — — — Real estate — — — — Total Other types of investments 1,782 21 1,561 200 Cash: 22 10 12 — Total $ 1,952 $ 76 $ 1,676 $ 200 (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, 2020: Insurance Contracts (in millions) Balance at December 31, 2019 $ 171 Actual return on plan assets relating to assets still held at reporting date 8 Purchases 8 Settlements (5) Transfers in and/or out of Level 3 — Currency impact 18 Balance at December 31, 2020 $ 200 Contributions CNH Industrial expects to contribute (including through direct benefit payments) approximately $93 million to its pension plans, $16 million to its healthcare plans and $32 million to its other postemployment plans in 2022. 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) 2022 $ 105 $ 24 $ — $ 32 2023 106 23 — 26 2024 103 22 — 28 2025 107 21 — 28 2026 108 21 — 26 2027 - 2031 564 98 (1) 150 Total $ 1,093 $ 209 $ (1) $ 290 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities A summary of “Other liabilities” as of December 31, 2021 and 2020 is as follows: 2021 2020 (in millions) Advances on buy-back agreements $ 1,146 $ 1,355 Warranty and campaign programs 987 995 Marketing and sales incentive programs 1,558 1,324 Tax payables 904 654 Accrued expenses and deferred income 685 672 Accrued employee benefits 935 681 Lease liabilities 417 453 Legal reserves and other provisions 316 332 Contract reserve 367 389 Contract liabilities 1,458 1,381 Restructuring reserve 71 76 Other 1,529 1,100 Total $ 10,373 $ 9,412 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, 2021 and 2020 are as follows: 2021 2020 (in millions) Balance, beginning of year $ 995 $ 919 Current year additions 800 784 Claims paid (713) (685) Currency translation adjustment and other (95) (23) Balance, end of year $ 987 $ 995 Advance on Buy-back Agreements As described in “Note 2: Summary of Significant Accounting Policies,” the repurchase value of the asset relating to new vehicle sales with a buy-back commitment by Commercial and Specialty Vehicles is recognized as advances on buy-back agreements. Restructuring Provision The Company incurred restructuring costs of $74 million, $49 million, and $109 million for the years ended December 31, 2021, 2020, and 2019, respectively. These costs were as follows: • In 2021, Commercial and Specialty Vehicles, Agriculture, Construction and Powertrain recorded $37 million, $20 million, $15 million, and $2 million respectively. • In 2020, Commercial and Specialty Vehicles, Agriculture, Construction and Powertrain recorded $11 million, $13 million, $9 million, and $16 million respectively. • In 2019, Commercial and Specialty Vehicles, Agriculture, Construction and Powertrain recorded $37 million, $41 million, $18 million, and $7 million respectively, which were primarily attributable to actions included in the “Transform2Win” strategy. The following table sets forth restructuring activity for the years ended December 31, 2021, 2020 and 2019: Severance and Other Employee Costs Facility Related Costs Other Restructuring Total (in millions) Balance at January 1, 2019 $ 40 $ 30 $ 1 $ 71 Restructuring charges 98 (2) 13 109 Reserves utilized: cash (77) 25 (4) (56) Reserves utilized: non-cash 3 (16) (7) (20) Currency translation adjustments (2) 1 — (1) Balance at December 31, 2019 $ 62 $ 38 $ 3 $ 103 Restructuring charges 46 3 — 49 Reserves utilized: cash (61) (7) (4) (72) Reserves utilized: non-cash (6) (5) 2 (9) Currency translation adjustments 3 1 1 5 Balance at December 31, 2020 $ 44 $ 30 $ 2 $ 76 Restructuring charges 70 2 2 74 Reserves utilized: cash (74) (2) 3 (73) Reserves utilized: non-cash 7 (6) (2) (1) Currency translation adjustments (3) (1) (1) (5) Balance at December 31, 2021 $ 44 $ 23 $ 4 $ 71 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As a global company with a diverse business portfolio, CNH Industrial in the ordinary course of business is exposed to numerous legal risks, including, without limitation, 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, competition law and other investigations and environmental claims. 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 fines 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 66 non-owned U.S. sites at which regulated materials allegedly generated by CNH Industrial were released or disposed (“Waste Sites”). Of the Waste Sites, 16 are on the National Priority List (“NPL”) promulgated pursuant to CERCLA. For 60 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 66 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, 2021 and 2020, environmental reserves of approximately $30 million and $32 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 Follow-up on Damages Claims: in 2011 Iveco S.p.A. ("Iveco"), which, following the Demerger, is now part of Iveco Group N.V., and its competitors in the European Union were subject to an investigation by the European Commission (the “Commission”) into certain business practices in the European Union (in the period 1997-2011) in relation to Medium & Heavy trucks. On July 19, 2016, the Commission announced a settlement with Iveco ("the Decision"). Following the Decision, the Company, Iveco and Iveco Magirus AG ("IMAG") have been named as defendants in proceedings across Europe. The consummation of the Demerger will not allow CNH Industrial to be excluded from current and future follow on proceedings originating from the Decision because under EU competition law a company cannot use corporate reorganizations to avoid liability for private damage claims. In the event one or more of these judicial proceedings would result in a decision against CNH Industrial ordering it to compensate such claimants as a result of the conduct that was the subject matter of the Decision, and Iveco and IMAG does not comply with such decisions, as a result of various intercompany arrangements, then CNH Industrial will ultimately have recourse against Iveco and IMAG for the reimbursement of the damages effectively paid to such claimants. The extent and outcome of these claims cannot be predicted at this time. FPT Emissions Investigation : on July 22, 2020, a number of CNH Industrial's offices in Europe were visited by investigators in the context of a request for assistance by the public prosecutors of Frankfurt am Main, Germany and Turin, Italy in relation to alleged noncompliance of two engine models produced by FPT Industrial S.p.A. ("FPT"), which is now part of the Iveco Group N.V., installed in certain Ducato (a vehicle distributed by Stellantis) and Iveco Daily vehicles. FPT is providing its full cooperation to properly address the requests received. FPT, other companies of Iveco Group, and in certain instances CNH Industrial and other third parties have received various requests for compensation by German and Austrian customers on various contractual and tort grounds, including requests for damages resulting out of the termination of the purchase contracts, or in the form of requests for an alleged lower residual value of their vehicles as a consequence of the alleged non-compliance with type approval regulations regarding emissions. In certain instances, other customers have brought judicial claims on the same legal and factual bases. Although, at the date hereof, the Company has been informed by the Iveco Group that it has no evidence of any wrongdoing, it cannot predict at this time the extent and outcome of these requests and directly or indirectly related legal proceedings, including customer claims or potential class actions alleging emissions non-compliance. Commitments CNH Industrial has entered operating lease contracts for the right to use industrial buildings and equipment and other assets. Refer to Note 8 for future minimum lease payments under non-cancellable lease contracts. At December 31, 2021, 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 $ 7,549 $ 2,725 $ 4,824 Guarantees |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | 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 instruments in active markets. Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires the use of observable market data when available. Determination of Fair Value When available, the Company uses quoted market prices to determine fair value and classifies such items 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 exposures. Derivatives used as hedges are effective at reducing the risk associated with the exposure being hedged and are designated as a hedge at the inception of the derivative contract. CNH Industrial does not hold or enter into derivatives or other financial instruments for speculative purposes. The credit and market risk related to derivatives is reduced through diversification among various counterparties, utilizing mandatory termination clauses and/or collateral support agreements. Derivative instruments are generally classified as Level 2 in the fair value hierarchy. The cash flows underlying all derivative contracts were recorded in operating activities in the consolidated statements of cash flows. Foreign Exchange Derivatives CNH Industrial has entered into foreign exchange forward contracts and swaps 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 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. 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 $(25) 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 $8.2 billion and $6.3 billion at December 31, 2021 and 2020, 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, 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. 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. 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, 2021, 2020, and 2019. All of CNH Industrial’s interest rate derivatives outstanding as of December 31, 2021 and 2020 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 $6.4 billion and $7.5 billion at December 31, 2021 and 2020, respectively. As a result of the reform and replacement of specific benchmark interest rates, uncertainty remains regarding the timing and exact nature of those changes. At December 31, 2021, the notional amount of hedging instruments that could be affected by the reform of benchmark interest rates is $1.2 billion, of which $1.2 billion and $0 billion relate to the Off Highway business and On Highway business, respectively. In the twelve months ended December 31, 2021, the COVID-19 pandemic significantly impacted the economic environment. With regard to hedge accounting, the Company continues to monitor significant developments in order to assess the potential future impacts of the COVID-19 pandemic on the hedging relationships in place and to update its estimates concerning whether forecasted transactions can still be considered probable of occurring. Financial Statement Impact of CNH Industrial Derivatives The following table summarizes the gross impact of changes in the fair value of derivatives designated as cash flow hedges on accumulated other comprehensive income (loss) and net income during the year ended December 31, 2021, December 31, 2020, and December 31, 2019 (in millions): Recognized in Net Income For the Year Ended December 31, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2021 Foreign exchange contracts $ (57) Net sales $ 2 Cost of goods sold (11) Other, net (4) Interest expense, net 3 Interest rate contracts 49 Total $ (8) $ (10) 2020 Foreign exchange contracts $ 96 Net sales $ (7) Cost of goods sold 31 Other, net 6 Interest expense, net (5) Interest rate contracts (14) Total $ 82 $ 25 2019 Foreign exchange contracts $ (113) Net sales $ — Cost of goods sold (69) Other, net (16) Interest expense, net (8) Interest rate contracts (22) Total $ (135) $ (93) The following table summarizes the activity in accumulated other comprehensive income related to the derivatives held by the Company during the years ended December 31, 2021, December 31, 2020, and December 31, 2019: (in millions) Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2020 $ (5) $ (1) $ (6) Net changes in fair value of derivatives (8) (12) (20) Net losses reclassified from accumulated other comprehensive income into income 10 (1) 9 Accumulated derivative net losses as of December 31, 2021 $ (3) $ (14) $ (17) (in millions) Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2019 $ (62) $ 8 $ (54) Net changes in fair value of derivatives 82 (8) 74 Net losses reclassified from accumulated other comprehensive income into income (25) (1) (26) Accumulated derivative net losses as of December 31, 2020 $ (5) $ (1) $ (6) (in millions) Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2018 $ (20) $ (2) $ (22) Net changes in fair value of derivatives (135) 24 (111) Net losses reclassified from accumulated other comprehensive income into income 93 (14) 79 Accumulated derivative net losses as of December 31, 2019 $ (62) $ 8 $ (54) The following tables summarize the impact of the changes in the fair value of fair value hedges and derivatives not designated as hedging instruments had on earnings for the year ended December 31, 2021, December 31, 2020, and December 31, 2019: For the Year Ended December 31, (in millions) Classification of Gain 2021 2020 2019 Fair Value Hedges Interest rate derivatives Interest expense $ (47) $ 31 $ 31 Not Designated as Hedges Foreign exchange contracts Other, Net $ (78) $ 86 $ (73) The fair values of CNH Industrial’s derivatives as of December 31, 2021 and December 31, 2020 in the consolidated balance sheets are recorded as follows: December 31, 2021 December 31, 2020 (in millions of dollars) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments under Subtopic 815-20 Interest rate contracts Derivative assets 65 Derivative assets 77 Foreign currency contracts Derivative assets 77 Derivative assets 67 Total derivative assets designated as hedging instruments 142 144 Interest rate contracts Derivative liabilities 28 Derivative liabilities 46 Foreign currency contracts Derivative liabilities 101 Derivative liabilities 62 Total derivative liabilities designated as hedging instruments 129 108 Derivatives not designated as hedging instruments under Subtopic 815-20 Interest rate contracts Derivative assets 11 Derivative assets — Foreign currency contracts Derivative assets 32 Derivative assets 16 Total derivative assets not designated as hedging instruments 43 16 Interest rate contracts Derivative liabilities 12 Derivative liabilities — Foreign currency contracts Derivative liabilities 35 Derivative liabilities 31 Total derivative liabilities not designated as hedging instruments 47 31 Items Measured at Fair Value on a Recurring Basis The following tables present for each of the fair-value hierarchy levels the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2021 and December 31, 2020: Level 1 Level 2 Total December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 (in millions) Assets Foreign exchange derivatives $ — $ — $ 109 $ 83 $ 109 $ 83 Interest rate derivatives — — 76 77 76 77 Investments at fair value through profit & loss 254 392 — — 254 392 Total Assets $ 254 $ 392 $ 185 $ 160 $ 439 $ 552 Liabilities Foreign exchange derivatives $ — $ — $ 136 $ 93 $ 136 $ 93 Interest rate derivatives — — 40 46 40 46 Total Liabilities $ — $ — $ 176 $ 139 $ 176 $ 139 The line item “Investments at fair value through profit & loss” includes the fair value of the approximate 6.5% investment held by CNH Industrial in Nikola Corporation ("Nikola"), made in the context of the strategic partnership with Nikola to industrialize fuel-cell and battery electric Heavy-Duty trucks. During the second quarter of 2020, Nikola completed a business combination with VectoIQ Acquisition Corp., a publicly-traded special purpose acquisition company. Under the terms and conditions of the business combination, the former shareholders of Nikola received 1.901 shares of VectoIQ for every one share held in Nikola and became shareholders of VectoIQ, which, in turn, changed its name to “Nikola Corporation”. The combined company's shares continued to list on NASDAQ under the new ticker symbol “NKLA”. Before the completion of the business combination, CNH Industrial increased its investment in Nikola, that was accounted for using the cost method in the absence of a readily determinable fair value, to $250 million. The market price of Nikola shares as of December 31, 2021 was $9.87, determining a value of $254 million for the 25,661,448 shares held by CNH Industrial through its fully-owned subsidiary Iveco S.p.A. As a consequence, for the year ended December 31, 2021, the Company recorded a pre-tax loss of $138 million ($136 million after tax) from the remeasurement at fair value of the investment in Nikola, recorded in the line item “Other, net”. Items Measured at Fair Value on a Non-Recurring Basis During the second quarter of 2020, the Company recorded property and equipment impairments of $163 million related to Agriculture ($111 million), Construction ($45 million) and Commercial and Specialty Vehicles ($7 million). The impairments are the result of declines in forecasted performance that indicated it was probable that the future cash flows would not cover the carrying amount of assets used in manufacturing equipment of the respective segments. In addition, the Company recorded impairments to certain dealer network and software intangible assets in 2020. See Note 9 for further details. The following tables present the fair value for nonrecurring Level 3 measurements from impairments as of December 31, 2021 and 2020: Fair Value Losses 2021 2020 2021 2020 (in millions) Property, plant and equipment $ — $ 107 $ — $ 163 Other intangible assets $ — $ — $ — $ 92 The following is a description of the valuation methodologies the Company uses to non-monetary assets at fair value: Property, plant, and equipment, net: The impairments are measured at the lower of the carrying amount, or fair value. The valuations were based on a cost approach. The inputs include replacement cost estimates adjusted for physical deterioration and economic obsolescence. Other intangible assets, net: The impairments are measured at the lower of the carrying amount or fair value. The valuations were based on the income approach (discounted cash flows). The inputs include estimates of future cash flows. 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 its 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, 2021 and 2020 are as follows: December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair (in millions) Financing receivables $18,662 $18,897 $18,457 $18,726 Debt $23,745 $23,939 $26,053 $26,630 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 bonds issued by CNH Industrial Finance Europe S.A. and bonds issued by CNH Industrial N.V. that are classified as a Level 1 fair value measurement. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | 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 to be held with associated common shares, each with a per share par value of €0.01. As of December 31, 2021, the Company’s share capital was €18 million (equivalent to $25 million), fully paid-in, and consisted of 1,364,400,196 common shares (1,356,077,000 common shares outstanding, net of 8,323,196 common shares held in treasury by the Company as described in the following section) and 396,474,276 special voting shares (371,218,250 special voting shares outstanding, net of 25,256,026 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 2021, 2020, and 2019 are as follows: (number of shares) CNH Industrial N.V. Common Shares CNH Industrial N.V. Loyalty Program Special Voting Shares Total CNH Industrial N.V. Shares Total CNH Industrial N.V. shares at December 31, 2018 1,353,831,958 388,725,624 1,742,557,582 Capital increase 2,568,751 — 2,568,751 Common Stock Repurchase (6,268,592) — (6,268,592) Retirement of special voting shares — (774,458) (774,458) Total CNH Industrial N.V. shares at December 31, 2019 1,350,132,117 387,951,166 1,738,083,283 Capital increase 3,778,354 — 3,778,354 Common stock repurchases — — — Retirement of special voting shares — (16,623,012) (16,623,012) Total CNH Industrial N.V. shares at December 31, 2020 1,353,910,471 371,328,154 1,725,238,625 Capital increase 2,166,529 — 2,166,529 Common stock repurchases — — — Retirement of special voting shares — (109,904) (109,904) Total CNH Industrial N.V. shares at December 31, 2021 1,356,077,000 371,218,250 1,727,295,250 During the year ended December 31, 2021 and 2020, 0.1 million and 16.6 million special voting shares, respectively, 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. Furthermore, during the years ended December 31, 2021 and 2020, the Company delivered 2.2 million and 3.8 million common shares, respectively, under the Company’s stock compensation plan, primarily due to the vesting or exercise of share-based awards. See “Note 17: Share Based Compensation” for further discussion. Loyalty Voting Program 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 program that grants eligible long-term shareholders the equivalent of two votes for each CNH Industrial N.V. common share that they hold. This has been accomplished through the issuance of special voting shares. A shareholder may at any time elect to participate in the loyalty voting program 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 which can be retained only for so long as the shareholder retains the associated common share and registers it in the Loyalty Register. 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 Euronext Milan. 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 Shares In order to maintain the necessary operating flexibility over an adequate time period, including the implementation of the program in place, on April 16, 2020, the Annual General Meeting ("AGM") granted to the Board of Directors the authority to acquire common shares in the capital of the Company through stock exchange trading on the Euronext Milan and the NYSE or otherwise for a period of 18 months (i.e., up to and including October 15, 2021). Under such authorization the Board's authority is limited to a maximum of up to 10% of the issued common shares as of the date of the AGM and, in compliance with applicable rules and regulations, subject to a maximum price per common share equal to the average of the highest price on each of the five trading days prior to the date of acquisition, as shown in the Official Price List of the Euronext Milan or NYSE (as the case may be) plus 10% (maximum price) and to a minimum price per common share equal to the average of the lowest price on each of the five trading days prior to the date of acquisition, as shown in the Official Price List of the Euronext Milan or NYSE (as the case may be) minus 10% (minimum price). Neither the renewal of the authorization, nor the launch of any program obliges the Company to buy-back any common shares. The launch of any new program will be subject to a further resolution of the Board of Director. In any event, such programs may be suspended, discontinued or modified at any time for any reason and without previous notice, in accordance with applicable laws and regulations. During the year ended December 31, 2021, the Company repurchased no shares of its common stock on the Euronext Milan and on multilateral trading facilities ("MTFs") under the buy-back program. As of December 31, 2021, the Company held 8.3 million common shares in treasury, net of transfers of common shares to fulfill its obligations under its stock compensation plans, at an aggregate cost of $81 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. At the 2022 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. During the year ended December 31, 2021, the Company acquired approximately 0.1 million special voting shares following the de-registration of qualifying common shares from the Loyalty Register, net of the transfer and allocation of special voting shares to those shareholders whose qualifying common shares became eligible to receive special voting shares after the uninterrupted three-year registration period in the Loyalty Register. As of December 31, 2021, the Company held 25.3 million special voting shares in treasury. Dividend On March 1, 2022 the Board of Directors of CNH Industrial N.V. recommended and proposed to the Company’s shareholders that the Company declare a dividend of €0.28 per common share, totaling approximately €380 million (equivalent to approximately $426 million , translated at the exchange rate reported by the European Central Bank on February 25, 2022). The proposal is subject to the approval of the Company’s shareholders at the AGM to be held on April 13, 2022. On March 3, 2021 the Board of Directors of CNH Industrial N.V. recommended and proposed to the Company’s shareholders that the Company declare a dividend of €0.11 per common share, totaling approximately €150 million (equivalent to approximately $180 million, translated at the exchange rate reported by the European Central Bank on March 1, 2021). The proposal was approved by the Company’s shareholders at the AGM that was held on April 15, 2021. 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, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation For the years ended December 31, 2021, 2020, and 2019 CNH Industrial recognized total share-based compensation expense of $99 million, $38 million, and $33 million respectively. For the years ended December 31, 2021, 2020 and 2019, CNH Industrial recognized a total tax benefit relating to share-based compensation expense of $8 million, $4 million and $3 million, respectively. As of December 31, 2021, CNH Industrial had unrecognized share-based compensation expense related to non-vested awards of approximately $187 million based on current assumptions related to achievement of specified performance objectives, when applicable. Unrecognized share-based compensation costs will be recognized over a weighted-average period of 2.1 years. At December 31, 2021, $150 million of the total unrecognized share-based compensation costs related to the Off-Highway business which will be recognized over a weighted-average period of 2.1 years. CNH Industrial’s equity awards are governed by the CNH Industrial N.V. Equity Incentive Plan (“CNH Industrial EIP”) and CNH Industrial N.V. Directors’ Compensation Plan (“CNH Industrial DCP”). 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. The EIP allows grants of the following specific types of equity awards to any current or prospective executive director, officer, 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. In February 2020, the Board of Directors approved the issuance of up to 50 million common shares under the EIP. At the AGM on April 16, 2020, the Company's shareholders approved the issuance of up to 7 million common shares to executive directors under the 2021-2023 Long-Term Incentive Plan (described below) in accordance with and under the EIP. As part of the Demerger, any awards outstanding under the CNH Industrial EIP, and held by directors, officers and other employees vesting in 2022 were accelerated in December 2021 and the related equity incentives were issued by CNH Industrial in CNH Industrial stock. As a result of the Demerger, remaining outstanding awards vesting in 2023 and 2024 were converted to the entity the participant is employed with post spin. As such, for Iveco Group employees, the underlying stock awards under the CNH Industrial EIP vesting in 2023 and 2024 were converted at the effective date of the Demerger, subject to its terms, to Common Shares of Iveco Group N.V. The conversion of the CNH Industrial EIP includes appropriate adjustment mechanisms to ensure that the value of the unvested awards granted to all the beneficiaries under such plan remain unchanged pre and post demerger for employees in both the Iveco Group N.V. and CNH Industrial N.V. Performance Share Units 2017-2019 Long-Term Incentive Plan In December 2017, CNH Industrial canceled all Performance Share Units ("PSU’s") issued in 2014, 2015 and 2016 and issued a grant of PSU's to key executive officers and select employees, with financial performance goals covering the three-year period from January 1, 2017 to December 31, 2019. The performance goal was a market condition with a payout schedule ranging from 0% to 130%. In 2019 and 2020, prorated share amounts covering performance through this same period were issued to select new employees entering the plan. In 2019 and 2020, 0.6 million and 0.4 million additional PSU's were granted. On February 28, 2020 all PSU’s associated with these grants failed to meet their performance goals and were therefore forfeited. The Company still incurred the expense associated with these awards but the awards themselves were never issued to their recipients. 2021-2023 Long-Term Incentive Plan In February 2020, the Board of Directors approved the 2021-2023 Long-Term Incentive Plan under the EIP. In December 2020, CNH Industrial issued a new grant of PSUs to its key executive officers and select employees with the financial performance goals covering a three-year period culminating with a cliff vest date of February 28, 2024. Two internal financial metrics, Industrial ROIC (the ratio of Adjusted EBIT (after-tax) over Average Industrial Invested Capital) and Adjusted EPS (the net income (loss) excluding any nonrecurring items (after-tax), divided by the weighted average outstanding number of common shares on a fully diluted basis), weighted 50% each, and a multiplier-based on CNH Industrial’s percentile ranking of Total Shareholder Return among a comparator group, will determine the total PSUs earned. The internal financial metrics have a payout factor of up to 200% and the market based TSR determinant has a payout factor of 125%. These metrics are considered performance vesting conditions. As such, compensation cost will be accrued based on whether it is considered probable that the performance conditions will be satisfied. The fair value of the PSU awards issued under this plan will be calculated by using the CNH Industrial N.V. stock price on the grant date adjusted for the present value of future dividends that would not be received during the vesting period. As of December 31, 2020, CNH Industrial issued 7 million PSUs. The total number of shares that will eventually be issued may vary from the original estimate due to forfeiture or the level of achievement of the performance goals. The weighted average fair value of the awards that were issued in 2020 was $10.83 per share. The 2020 PSU awards distributed under this plan were issued on December 4, 2020 to key executive officers and select employees and on December 14, 2020 to the Chair of CNH Industrial. During 2021, CNH Industrial issued an additional 3 million PSUs to key executive officers and select employees. The weighted average fair value of the awards that were issued in 2021 was $13.15 per share. The following table reflects the activity of PSUs under the 2021-2023 Long-Term Incentive Plan for the year ended December 31, 2021: 2021 Performance Shares Weighted Average Grant-Date Fair Value Nonvested at beginning of year 6,931,030 $ 10.83 Granted 3,035,985 13.15 Forfeited/Cancelled (545,790) 10.83 Vested — — Nonvested at end of year 9,421,225 $ 11.55 Restricted Share Units In 2019, 2020, and 2021, CNH Industrial issued approximately 0.8 million, 8 million, and 1 million Restricted Share Units (“RSUs”) to key executive officers and select employees with a weighted average fair value of $9.95, $10.90, and $14.42 per share, respectively. The fair value of the award is measured using the CNH Industrial N.V. stock price on the grant date adjusted for the present value of future dividends that employees will not receive during the vesting period. The RSUs vest upon a time-based service requirement. 2017-2019 Long-Term Incentive Plan On April 3, 2019, 536 thousand RSUs were issued to select key executive officers with a weighted average fair value of $10.18 measured using the stock price on the grant date adjusted for the present value of future dividends that would not be received during the vesting period. The grant had a cliff vest date of February 1, 2021 for all awards except for 32 thousand RSUs, which vested on June 30, 2020. Of the remaining 490 thousand RSUs, 162 thousand were forfeited in the second quarter of 2020. The remaining 296 thousand RSUs vested on February 1, 2021. 2021-2023 Long-Term Incentive Plan On December 4, 2020, CNH Industrial issued two separate RSU grants to key executive officers and select employees. Under the first RSU grant, 1.7 million RSUs were awarded to select employees with a weighted average fair value of $11.43. These awards vested on December 31, 2020. Under the second RSU grant, 5 million RSUs were awarded to select employees and are set to vest in three equal installments over a three On December 14, 2020, CNH Industrial issued 120 thousand RSUs to the Chair of CNH Industrial, of which 17 thousand vested on December 31, 2020. The weighted average fair value for these awards is $10.96. The remaining 103 thousand RSUs vest in three equal installments on February 28, 2022, 2023, and 2024, respectively. The fair value for these awards are $10.76, $10.55 and $10.35, respectively. During 2021, CNH Industrial issued an additional 1.5 million RSUs to select employees and key executive officers. Of the awards that were issued, 1.2 million are set to vest in three equal installments over a three year period. The first tranche, which consists of 0.4 million RSUs, was set to vest on April 31, 2022. The second and third tranches are set to vest on April 31, 2023 and April 31, 2024, respectively. The weighted average fair value of these awards are $14.08 per share for the first tranche, $13.89 per share for the second tranche, and $13.71 per share for the third tranche. The remaining awards issued in 2021 had a cumulative weighted average fair value of $16.71. In 2021, CNH Industrial, in anticipation of the Demerger, accelerated the vesting of awards with a vest date of April 31, 2022 to December 1, 2021, excluding shares awarded to the CEO and Chairperson. As a result, CNH Industrial recorded $6 million of expense due to the acceleration of these awards. The weighted average fair value of the shares vested during 2021 was $11.59 per share. The following table reflects the activity of RSUs under the 2017-2019 Long-Term Incentive Plan and 2021-2023 Long-Term Incentive Plan for the year ended December 31, 2021: 2021 Restricted Shares Weighted Average Grant-Date Fair Value Nonvested at beginning of year 5,443,197 $ 10.95 Granted 1,464,305 14.42 Forfeited (396,086) 11.88 Vested (2,141,337) 11.59 Nonvested at end of year 4,370,079 $ 11.72 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 Chairperson. • An additional $20,000 for each member of every other Board committee and $25,000 for the committee chairperson (collectively, the “fees”). Prior to the amendment of the CNH Industrial DCP, each quarter of the CNH Industrial DCP year, the eligible directors could elect to receive cash, common shares or stock options. There were 0.2 million common shares authorized for issuance under the CNH Industrial DCP. No stock options were issued under this plan in 2021 or 2020 and as of December 31, 2021, no stock options were outstanding under the CNH Industrial DCP. Additional Share-Based Compensation Information The table below provides additional share-based compensation information for the years ended December 31, 2021, 2020, and 2019: 2021 2020 2019 (in millions) Total intrinsic value of options exercised and shares vested $ 35 $ 41 $ 21 Fair value of shares vested $ 25 $ 42 $ 23 Cash received from share award exercises $ — $ — $ — Tax benefit of options exercised and shares vested $ — $ — $ — |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 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, 2021, 2020 and 2019. 2021 2020 2019 (in millions, except per share data) Basic: Net income (loss) attributable to CNH Industrial $ 1,723 $ (493) $ 1,422 Weighted average common shares outstanding—basic 1,354 1,351 1,352 Basic earnings (loss) per share $ 1.27 $ (0.36) $ 1.05 Diluted: Net income (loss) attributable to CNH Industrial $ 1,723 $ (493) $ 1,422 Weighted average common shares outstanding—basic 1,354 1,351 1,352 Effect of dilutive securities (when dilutive): Stock compensation plans 7 — 2 Weighted average common shares outstanding—diluted (A) 1,361 1,351 1,354 Diluted earnings (loss) per share $ 1.27 $ (0.36) $ 1.05 (A) For the twelve months ended December 31, 2021, and 2020 0.06 million and 1.2 million shares were excluded from the computation of diluted earnings per share due to an anti-dilutive impact. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 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 15: Financial Instruments”. For more information on the Company’s pensions and retirement benefit obligations, see “Note 12: 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, 2021 (in millions) Gross Amount Income Taxes Net Amount Unrealized gain (loss) on cash flow hedges $ 2 $ (13) $ (11) Changes in retirement plans’ funded status 109 (15) 94 Foreign currency translation 247 — 247 Share of other comprehensive loss of entities using the equity method (93) — (93) Other comprehensive loss $ 265 $ (28) $ 237 Year Ended December 31, 2020 (in millions) Gross Amount Income Taxes Net Amount Unrealized gain (loss) on cash flow hedges $ 57 $ (9) $ 48 Changes in retirement plans’ funded status (10) 7 (3) Foreign currency translation (735) — (735) Share of other comprehensive loss of entities using the equity method 20 — 20 Other comprehensive loss $ (668) $ (2) $ (670) Year Ended December 31, 2019 (in millions) Gross Amount Income Taxes Net Amount Unrealized gain (loss) on cash flow hedges $ (42) $ 10 $ (32) Changes in retirement plans’ funded status (115) 3 (112) Foreign currency translation 71 — 71 Share of other comprehensive loss of entities using the equity method (8) — (8) Other comprehensive income $ (94) $ 13 $ (81) The changes, net of tax, in each component of accumulated other comprehensive income (loss) consisted of the following: (in millions) Unrealized Gain (Loss) on Cash Flow Hedges Change in Retirement Plans’ Funded Status Foreign Currency Translation Share of Other Comprehensive Income of Entities Using the Equity Method Total Balance, December 31, 2018 $ (22) $ (473) $ (1,216) $ (148) $ (1,859) Other comprehensive income (loss), before reclassifications (111) (68) 71 (5) (113) Amounts reclassified from other comprehensive income 79 (44) — — 35 Other comprehensive income (loss) 1 (32) (112) 71 (5) (78) Reclassification of certain tax effects — (65) — — (65) Balance, December 31, 2019 $ (54) $ (650) $ (1145) $ (153) $ (2,002) Other comprehensive income (loss), before reclassifications 74 143 (739) 20 (502) Amounts reclassified from other comprehensive income (26) (146) — — (172) Other comprehensive income (loss) 1 48 (3) (739) 20 (674) Balance, December 31, 2020 $ (6) $ (653) $ (1,884) $ (133) $ (2,676) Other comprehensive income (loss), before reclassifications (20) 202 241 (93) 330 Amounts reclassified from other comprehensive income 9 (108) — — (99) Other comprehensive income (loss) 1 (11) 94 241 (93) 231 Balance, December 31, 2021 $ (17) $ (559) $ (1,643) $ (226) $ (2,445) (1) Excluded from the table above is other comprehensive (income) loss allocated to noncontrolling interests of $6 million, $4 million and $(3) million for the years ended December 31, 2021, 2020 and 2019, respectively. Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in December 31, 2021 and 2020 consisted of the following: Amount Reclassified from Other Comprehensive Income (Loss) Consolidated Statement of Operations line 2021 2020 (in millions) Cash flow hedges $ (2) $ 7 Net sales 11 (31) Cost of goods sold 4 (6) Other, net (3) 5 Interest expense (1) (1) Income taxes $ 9 $ (26) Change in retirement plans’ funded status: Amortization of actuarial losses $ 41 $ 47 * Amortization of prior service cost (136) (130) * (13) (63) Income taxes $ (108) $ (146) Total reclassifications, net of tax $ (99) $ (172) |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | 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. Until December 31, 2021 (therefore, before the Demerger occurred on January 1, 2022) CNH Industrial had five operating segments: Agriculture 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 brands, as well as the STEYR, Kongskilde and Överum brands in Europe and the Miller brand, primarily in North America and Australia. Construction designs, manufactures and distributes a full line of construction equipment including excavators, crawler dozers, graders, wheel loaders, backhoe loaders, skid steer loaders, and compact track loaders. Construction equipment is sold under the CASE Construction Equipment and New Holland Construction brands. Commercial and Specialty 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, city-buses, commuter buses 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 distributes, under the FPT Industrial brand, a range of combustion engines, alternative propulsion systems, transmission systems and axles for on- and off-road applications, as well as for marine and power generation. Financial Services , prior to the Demerger, offered a range of financial products and services to dealers and customers of both Off-Highway and On-Highway Industrial Activities segments. Financial Services provided and administered retail financing to customers for the purchase or lease of new and used vehicles and other equipment sold by CNH Industrial brand dealers. In addition, Financial Services provided wholesale financing to CNH Industrial brand dealers. Wholesale financing consists primarily of floor plan financing and allows the dealers to purchase and maintain a representative inventory of products. Financial Services also provided trade receivables factoring services to CNH Industrial companies. Following the Demerger, the European operations of CNH Industrial Financial Services will be separated as follows: the receivable portfolios related to the captive activity of each group (CNH Industrial and Iveco Group), together with the related funding, will be attributed to each group, while the servicing of these separated portfolios will be performed by Iveco Group’s Financial Services segment. CNH Industrial will provide financial services to Iveco Group companies in the rest of the world. The activities carried out by the four industrial segments Agriculture, Construction, Commercial and Specialty Vehicles, and Powertrain, as well as corporate functions, are collectively referred to as "Industrial Activities". Revenues for each reported segment are those directly generated by or attributable to the segment as a result of its 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. With reference to Industrial Activities' segments, the CODM assesses segment performance and makes decisions about resource allocation based upon Adjusted EBIT. The Company believes Adjusted EBIT more fully reflects Industrial Activities segments' profitability. Adjusted EBIT of Industrial Activities is defined as net income (loss) before income taxes, Financial Services' results, Industrial Activities’ interest expenses (net), foreign exchange gains/losses, finance and non-service component of pension and other post-employment benefit costs, restructuring expenses, and certain non-recurring items. In particular, non-recurring items are specifically disclosed items that management considers rare or discrete events that are infrequent in nature and not reflective of on-going operational activities. With reference to Financial Services, the CODM assesses the performance of the segment and makes decisions about resource allocation on the basis of net income prepared in accordance with U.S. GAAP. The following table includes the reconciliation of Adjusted EBIT for Industrial Activities to net income, the most comparable U.S. GAAP financial measure, for the years ended December 31, 2021, 2020, and 2019. Years Ended December 31, 2021 2020 2019 (in millions) Agriculture $ 1,810 $ 880 $ 897 Construction 90 (184) 51 Commercial and Specialty Vehicles 282 (109) 224 Powertrain 256 233 363 Unallocated items, eliminations, and other (324) (268) (145) Total Adjusted EBIT of Industrial Activities 2,114 552 1,390 Financial Services Net Income 420 249 361 Financial Services Income Taxes 125 83 120 Interest expense of Industrial Activities, net of interest income and eliminations (235) (244) (282) Foreign exchange (gains) losses, net of Industrial Activities (51) (45) (56) Finance and non-service component of Pension and other post-employment benefit costs of Industrial Activities (1) 141 (14) (58) Restructuring expenses of Industrial Activities (74) (49) (105) Goodwill impairment charge — (585) — Other discrete items of Industrial Activities (2) (200) (569) (187) Nikola investment fair value adjustment (138) 134 — Income (loss) before taxes 2,102 (488) 1,183 Income tax benefit (expense) (342) 50 271 Net Income (loss) $ 1,760 $ (438) $ 1,454 (1) In the years ended December 31, 2021, 2020, and 2019 this item includes the pre-tax gain of $119 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from 2018 modification of a healthcare plan in the U.S. occurred in the fourth quarter. In the year ended December 31, 2021, this item also includes a pre-tax gain of $5 million as a result of the amortization over 4 years of the $101 million positive impact from 2021 modifications of a healthcare plan in the U.S. which occurred in the fourth quarter of 2021. In the years ended December 31, 2020 and 2019, this item also included a pre-tax non-cash settlement charge of $124 million and $112 million, respectively, resulting from the purchase of annuity contracts to settle a portion of the outstanding U.S. pension obligations. (2) In the year ended December 31, 2021, this item includes the pre- and after-tax gain of $42 million from the sale of the 30.1% interest in Naveco, as well as the positive impact of $13 million from the sale of investments by a joint venture accounted for under the equity method. This item also includes $187 million separation and transaction costs in connection with spin-off of the Iveco Group Business (the Demerger), a charge of $57 million for transaction costs related to the acquisition of Raven Industries, Inc., as well as a gain of $12 million for a fair value adjustment of Monarch Tractor investment and a loss of $25 million due to the valuation at their recoverable amount of certain assets held for sale. In the year ended December 31, 2020, this item mainly includes impairment of intangible and other long-lived assets, asset optimization charges, and the negative impact from the costs recognized by a Chinese joint venture, accounted for under the equity method, for valuation allowances against deferred tax assets and restructuring actions. In the year ended December 31, 2019, this item mainly included other asset optimization charges for $165 million. The following table provides key segment information for the Financial Services segment: Years Ended December 31, 2021 2020 2019 (in millions) Financial Services Net Income $ 420 $ 249 $ 361 Financial Services Interest Revenue (1) $ 1,079 $ 1,123 $ 1,248 Financial Services Interest Expense $ 425 $ 510 $ 597 (1) This amount excludes interest included in operating leases rentals. There are no segment assets reported to the CODM for assessing performance and allocating resources. However, the CODM reviews expenditures for long-lived assets by operating segment, therefore, this information is presented below as well. A summary of additional operating segment information as of and for the years ended December 31, 2021, 2020, and 2019 is as follows: Years Ended December 31, 2021 2020 2019 (in millions) Revenues: Agriculture $ 14,721 $ 10,923 $ 10,959 Construction 3,081 2,170 2,768 Commercial and Specialty Vehicles 12,160 9,421 10,439 Powertrain 4,419 3,629 4,117 Eliminations and other (2,759) (1,858) (2,134) Net sales of Industrial Activities 31,622 24,285 26,149 Financial Services 1,870 1,823 2,011 Eliminations and other (64) (76) (81) Total Revenues $ 33,428 $ 26,032 $ 28,079 Depreciation and Amortization (*): Agriculture $ 254 $ 248 $ 281 Construction 38 46 55 Commercial and Specialty Vehicles 196 211 195 Powertrain 119 120 124 Other activities and adjustments 1 2 2 Depreciation and amortization of Industrial Activities 608 627 657 Financial Services 3 3 3 Depreciation and amortization $ 611 $ 630 $ 660 Expenditures for long-lived assets (**): Agriculture $ 307 $ 185 $ 232 Construction 53 42 46 Commercial and Specialty Vehicles 218 160 258 Powertrain 128 92 96 Other activities — 2 1 Expenditures for long-lived assets of Industrial Activities 706 481 633 Financial Services 8 3 4 Expenditures for long-lived assets $ 714 $ 484 $ 637 (*) Excluding assets sold with buy-back commitments and equipment on operating leases (**) Excluding assets sold with buy-back commitments, equipment on operating leases and right of use assets Geographic Information CNH Industrial has its principal office in London, England, U.K. Revenues earned in the U.K. from external customers were $1,033 million, $777 million, and $888 million for the years ended December 31, 2021, 2020, and 2019, respectively. Revenues earned in the rest of the world from external customers were $32,395 million, $25,255 million, and $27,191 million for the years ended December 31, 2021, 2020, and 2019, respectively. The following highlights revenues earned from external customers in the rest of the world by destination: 2021 2020 2019 (in millions) United States $ 6,600 $ 5,191 $ 5,610 Italy 3,261 2,673 3,253 France 3,344 2,840 3,030 Brazil 3,164 1,937 2,105 Germany 2,148 1,765 1,875 Canada 1,373 941 1,087 Australia 1,074 824 739 Spain 1,036 751 987 Argentina 791 522 509 Poland 845 576 604 Other 8,759 7,235 7,392 Total Revenues from external customers in the rest of world $ 32,395 $ 25,255 $ 27,191 Total long-lived tangible and intangible assets located in the U.K. were $168 million and $151 million at December 31, 2021 and 2020, respectively, and the total of such assets located in the rest of the world totaled $10,970 million and $9,446 million at December 31, 2021 and 2020, respectively. The following highlights long-lived tangible and intangible assets by geography in the rest of the world: At December 31, 2021 2020 (in millions) United States $ 5,807 $ 4,110 Italy 1,503 1,444 France 685 738 Germany 587 601 Spain 615 717 Canada 568 149 Brazil 203 217 China 141 571 Other 861 899 Total Long-lived assets in the rest of the world $ 10,970 $ 9,446 |
Related Party Information
Related Party Information | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Information | Related Party Information As of December 31, 2021 and 2020 CNH Industrial’s related parties were primarily EXOR N.V. and the companies that EXOR N.V. controlled or had a significant influence over, including Stellantis N.V. (formerly Fiat Chrysler Automobiles N.V. which, effective January 16, 2021, merged with Peugeot S.A. by means of a cross-border legal merger) and its subsidiaries and affiliates ("Stellantis"). As of December 31, 2021, EXOR N.V. held 42.5% 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 owned by EXOR N.V. to (ii) the aggregate number of outstanding common shares and special voting shares of CNH Industrial as of December 31, 2021. 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. As of December 31, 2021 and 2020, among other things, EXOR N.V. managed a portfolio that includes investments in Stellantis. CNH Industrial did not enter into any significant transactions with EXOR N.V. during the years ended December 31, 2021 and 2020. In connection with the establishment of Fiat Industrial (now CNH Industrial) through the demerger from Fiat (which was subsequently merged into Fiat Chrysler Automobiles N.V. which is now Stellantis), the two companies 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 Stellantis provide services 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. During 2021 and 2020, Stellantis subsidiaries provided 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 sold engines and light commercial vehicles to and purchased engine blocks and other components from Stellantis subsidiaries. Furthermore, CNH Industrial and Stellantis might engage in other minor transactions in the ordinary course of business. These transactions with Stellantis are reflected in the Company’s consolidated financial statements as follows: 2021 2020 2019 (in millions) Net sales $ 415 $ 599 $ 719 Cost of goods sold $ 269 $ 212 $ 319 Selling, general and administrative expenses $ 138 $ 127 $ 147 December 31, 2021 December 31, 2020 (in millions) Trade receivables $ 4 $ 8 Trade payables $ 72 $ 85 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, interest and other income, cost of goods sold, trade receivables and payables and are presented as follows: 2021 2020 2019 (in millions) Net sales $ 1,097 $ 1,076 $ 911 Cost of goods sold $ 518 $ 412 $ 514 December 31, 2021 December 31, 2020 (in millions) Trade receivables $ 16 $ 170 Trade payables $ 129 $ 98 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events Effective January 1, 2022, the Iveco Group Business was separated from CNH Industrial N.V. by way of a legal statutory demerger to Iveco Group N.V. and Iveco Group became a public listed company independent from CNH Industrial with its common shares trading on Euronext Milan, a regulated market organized and managed by Borsa Italiana S.p.A. On January 4, 2022, Fitch Ratings raised its Long-Term Issuer Default Rating on CNH Industrial N.V. to ‘BBB+’ from ‘BBB-’. Fitch also upgraded CNH Industrial Finance Europe S.A.’s senior unsecured rating to ‘BBB+’ from ‘BBB-'. The Outlook is Stable. On January 7, 2022, Fitch upgraded the Long-Term Issuer Default Ratings and senior unsecured debt ratings of CNH Industrial Capital LLC (CNHI Capital) and CNH Industrial Capital Canada Ltd. (CNH Canada) to 'BBB+' from 'BBB-'. The Rating Outlook is Stable. Fitch has also upgraded CNHI Capital's Short-Term IDR and commercial paper (CP) ratings to 'F2' from 'F3'. On February 22, 2022, CNH Industrial N.V. held an Investors Day, presenting its Strategic Business Plan for the years 2022 to 2024. On February 25, 2022, Moody's upgraded the senior unsecured ratings of CNH Industrial N.V. and its supported subsidiaries including CNH Industrial Capital LLC, CNH Industrial Finance Europe S.A., CNH Industrial Capital Australia Pty. Limited and CNH Industrial Capital Canada Ltd. to Baa2 from Baa3. The Rating Outlook is stable. In order to optimize the capital structure of the Company and to meet the obligations arising from the Company's equity incentive plans, on March 1, 2022, CNH Industrial announced a share buy-back program (the "Program") up to euro 100 million, within the framework of the authorization granted by the Shareholders’ Meeting held on April 15, 2021, whereby the Board is vested with the authority to purchase up to 10% of the Company’s issued common shares during the eighteen-month period following such Shareholders’ Meeting. The purchases will be carried out on the Italian Stock Exchange (Euronext Milan) and on multilateral trading facilities (MTFs), in compliance with applicable rules and regulations, subject to a maximum price per common share equal to the average of the highest price on each of the five trading days prior to the date of acquisition, as shown in the Official Price List of the Euronext Milan plus 10% (maximum price) and to a minimum price per common share equal to the average of the lowest price on each of the five trading days prior to the date of acquisition, as shown in the Official Price List of the Euronext Milan minus 10% (minimum price). The actual timing, number and value of common shares repurchased under the Program will depend on various factors, including market conditions, general business conditions, and compliance with applicable legal requirements. The Program does not oblige the Company to repurchase any common shares, and it may be suspended, discontinued, or modified upwards at any time, for any reason and without previous notice, in accordance with applicable laws and regulations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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. |
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. |
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 and valuation allowances; liabilities for warranties; sales allowances; and assets and obligations related to employee benefits. Actual results could differ from these estimates. The COVID-19 pandemic has resulted in uncertainties in the Company's business, which may cause actual results to differ materially from the estimates and assumptions used in preparation of the financial statements including, but not limited to, future cash flows associated with financial receivables, goodwill, indefinite life intangibles, definite life intangibles, long-lived impairment tests, determination of discount rates and other assumptions for pension and other post-retirement benefit expense and income taxes. Changes in estimates are recorded in results of operations in the period during which the events or circumstances giving rise to such changes occur. |
Revenue Recognition and Sales Allowances | Revenue Recognition Revenue is recognized when control of the vehicles, equipment, services or parts has been transferred and the Company’s performance obligations to the customers have been satisfied. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. The timing of when the Company transfers the goods or services to the customer may differ from the timing of the customer’s payment. Revenues are stated net of discounts, allowances, settlement discounts and rebates, as well as costs for sales incentive programs, which are determined on the basis of historical costs, country by country, and charged against profit for the period in which the corresponding sales are recognized. The Company also enters into contracts with multiple performance obligations. For these contracts, the Company allocates revenue from the transaction price to the distinct goods and services in the contract on a relative standalone selling price basis. To the extent the Company sells the goods or services separately in the same market, the standalone selling price is the observable price at which the Company sells the goods or services separately. For all other goods or services, the Company estimates the standalone selling price considering all information reasonably available (including market conditions, entity-specific factors and information about the customer or class of customer). Sales of goods The Company has determined that the customers from the sale of vehicles, equipment and parts are generally dealers, distributors, public entities and retail customers. Transfer of control, and thus related revenue recognition, generally corresponds to when the vehicles, equipment and parts are made available to the customer. Therefore, the Company recognizes revenue at a point in time when control is transferred to the customer at a sale price that the Company expects to receive. For all sales, no significant uncertainty exists surrounding the purchaser’s obligation to pay for vehicles, equipment and parts. The Company records appropriate allowance for credit losses and anticipated returns as required. Fixed payment schedules exist for all sales, but payment terms vary by geographic market and product line. The cost of incentives, if any, are estimated at the inception of a contract at the amount that is expected to be paid and is recognized as a reduction to revenue at the time of the sale. If a vehicle or equipment contract transaction has multiple performance obligations, the cost of incentives is allocated entirely to vehicle or equipment as the intent of the incentives is to encourage sales of vehicles or equipment. If the estimate of the incentive changes following the sale to the customer, the change in estimate is recognized as an adjustment to revenue in the period of the change. CNH Industrial grants certain sales incentives to support sales of its products to retail customers. At the later of the time of sale or the time an incentive is announced to dealers, CNH Industrial records the estimated impact of sales allowances in the form of dealer and customer incentives as a reduction of revenue. Subsequent adjustments to sales incentive programs related to products/vehicles previously sold are recognized as an adjustment to revenues in the period the adjustment is determinable. The determination of sales allowances requires management to make estimates based upon historical data, estimated future market demand for products, field inventory levels, announced incentive programs, competitive pricing and interest rates, among other things. With reference to the sales to dealers accompanied by “floor plan” agreements under which the Company offers wholesale financing including “interest-free” financing for specified period of time (which also vary by geographic market and product line), two separate performance obligations exist. The first performance obligation consists of the sale of the equipment/vehicle from Industrial Activities to the dealer. Concurrent with the sale of the equipment/vehicle, Industrial Activities offers to the dealer wholesale financing through loans extended by 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, and therefore it should be recognized upfront as a reduction of net sales of Industrial Activities. The second performance obligation consists of a credit facility extended by Financial Services to the dealer. The remuneration for 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 by Financial Services over the period of the outstanding exposure. For parts sales, when the Company provides its customers with a right to return a transferred product, revenue and corresponding cost of sales are recognized for parts that are not expected to be returned. The expected returns are estimated based on an analysis of historical experience. The portion of revenue (and corresponding cost of sales) related to the parts that are expected to be returned is recognized at the end of the return period. The amount received or receivable that is expected to be returned is recognized as a refund liability, representing the obligation to return the customer’s consideration. Furthermore, at the time of the initial sale, CNH Industrial recognizes a return asset for the right to recover the goods returned by the customer. This asset is initially measured at the former carrying amount of the inventory. At each reporting date, both the refund liability and the return asset are remeasured to record for any revisions to the expected level of returns, as well as any decreases in the value of the returned products. Rendering of services Revenues from services provided are primarily comprised of extended warranties and maintenance and repair services and are recognized over the contract period when the costs are incurred, that is when the claims are charged by the dealer. Amounts invoiced to customers for which CNH Industrial receives consideration before the performance is satisfied are recognized as contract liability. These services are either separately-priced or included in the selling price of the vehicle. In the second case, revenue for the services is allocated based on the estimated stand-alone selling price. In the event that the costs expected to be incurred to satisfy the remaining performance obligations exceed the transaction price, an estimated contract loss is recognized. Shipping and other transportation activities performed as an agent are recognized on a net basis, which is netting the related freight cost against the freight revenue. Rents and other income on assets sold with a buy-back commitment Commercial and Specialty Vehicles enters into transactions for the sale of vehicles to some customers with an obligation to repurchase (“buy-back commitment”) the vehicles at the end of a period (“buy-back period”) at the customer’s request. For these types of arrangements, at inception, CNH Industrial assesses whether a significant economic incentive exists for the customer to exercise the option. If CNH Industrial determines that a significant economic incentive exists for the customer to exercise the buy-back option, the transaction is accounted for as an operating lease. In such case, vehicles are accounted for as Property, plant and equipment because the agreements typically have a long-term buy-back period. 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 in “Other liabilities” and is comprised of the repurchase value of the vehicle, and the rents to be recognized in the future recorded as contract liability. These rents are determined at the inception of the contract as the difference between the initial sale price and the repurchase price and are recognized as revenue on a straight-line basis over the term of the agreement. At the end of the agreement term, upon exercise of the option, the used vehicles are reclassified from Property, plant and equipment to Inventories. The proceeds from the sale of such vehicles are recognized as Revenues. If CNH Industrial determines that a significant economic incentive does not exist for the customer to exercise the buy-back option, the transaction is treated as a sale with a variable consideration whose variable component is the buy-back provision accrual. The buy-back provision accrual is the difference between the repurchase price and the estimated market value of the used vehicle at the end of the buy-back period and is recorded only when the repurchase price is greater than the estimated market value of the used vehicle. The buy-back provision accrual is estimated and recognized as a reduction of revenues at the time of the sale. Any subsequent change following such periodic reassessment is recognized as a reduction of revenues at that time. Finance and interest income 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 90 days delinquent, whichever occurs earlier. Interest accrual is resumed when and if the receivable becomes contractually current and collection becomes probable. Previously suspended income is recognized at that time. The Company applies cash received on nonaccrual financing receivables to first reduce any unrecognized interest and then the recorded investment and any other fees. Receivables are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Delinquency is reported on receivables greater than 30 days past due. Charge-offs of principal amounts of receivables outstanding are deducted from the allowance at the point when it is determined to be probable that all amounts due will not be collected. Rents and other income on operating leases Income from operating leases is recognized over the term of the lease on a straight-line basis. Sales Allowances |
Warranty Costs | Warranty Costs At the time a sale of equipment or parts to a dealer is recognized, CNH Industrial records the estimated future base warranty costs for the product. 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. |
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. |
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. |
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, 2021, 2020 and 2019, the Company recorded net losses of $129 million, $11 million and $155 million, respectively. Included in the net losses in 2021, 2020 and 2019 were charges of $47 million, $56 million and $71 million due to the devaluation of net monetary assets of Argentinian subsidiaries in 2021, 2020, and 2019, respectively. As described in Note 15: Financial Instruments, the Company uses hedging instruments to mitigate foreign currency risk. Net of gains realized on foreign currency hedging instruments, the Company recorded losses of $60 million, $57 million and $80 million for the three years ended December 31, 2021, 2020 and 2019, respectively. |
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 $581 million, $667 million, and $762 million for the years ended December 31, 2021, 2020, and 2019, respectively. For 2021, 2020, and 2019, the amount includes a charge of $8 million, $— million, and $27 million, respectively, in connection with the Company’s accelerated debt redemption strategy. CNH Industrial paid taxes of $457 million, $159 million, and $208 million in 2021, 2020, and 2019, respectively. In 2021, Other non-cash items of $323 million primarily included writedowns of buybacks on operating leases of $47 million, writedowns of financial assets of $45 million, and remeasurement at fair value of the investment in Nikola Corporation of $138 million. |
Receivables | Receivables Receivables are recorded at amortized cost, net of allowances for credit losses and deferred fees and costs. |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses is the Company’s estimate of the lifetime expected credit losses inherent in the trade receivables and financing receivables portfolios owned by the Company. Retail financing receivables that share the same risk characteristics (such as, collateralization levels, geography, product type and other relevant factors) are reviewed on a collective basis using measurement models and management judgment. The allowance for 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 loss forecast models are updated on a quarterly basis. The calculation is adjusted for forward looking macroeconomic factors, such as gross domestic product (GDP) and Net Farm Income. The forward-looking macroeconomic factors are updated quarterly. In addition, qualitative factors that are not fully captured in the loss forecast models are considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective and require a degree of management judgment. Wholesale financing receivables and trade receivables that share the same risk characteristics (such as collateralization levels, term, geography and other relevant factors) are reviewed on a collective basis using measurement models and management judgment. The allowances for trade and wholesale credit losses are based on loss forecast models that consider a variety of factors that include, but are not limited to, historical loss experience, collateral value, portfolio balance and delinquency. The loss forecast models are updated on a quarterly basis. The calculation is adjusted for forward looking macroeconomic factors, such as industry sales volumes. The forward-looking macroeconomic factors are updated quarterly. In addition, qualitative factors that are not fully captured in the loss forecast models are considered in the evaluation of the adequacy of the allowances for credit losses. These qualitative factors are subjective and require a degree of management judgment. Wholesale and retail financing receivables and trade receivables that do not have similar risk characteristics are individually reviewed based on, among other items, amounts outstanding, days past due and prior collection history. Expected credit losses are measured by considering: the probability-weighted estimates of cash flows and collateral value; the time value of money; current conditions and forecasts of future economic conditions. Expected credit losses are measured as the probability-weighted present value of all cash shortfalls (including the value of the collateral, if appropriate) over the expected life of each financial asset. |
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 The following paragraph presents the Company’s policy for leases for which it is a lessee. Lease policy A lease is a contract that conveys the right to control the use of an identified asset (the leased asset) for a period of time in exchange for consideration. The lease term determined by the Company comprises the non-cancellable period of lease contract together with both periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option. For real estate leases, this assessment is based on an analysis by management of all relevant facts and circumstances including the leased asset’s purpose, the economic and practical potential for replacing and any plans that the Company has in place for the future use of the asset. For lease agreements, we combine lease and non-lease components. For leases with terms not exceeding twelve months (short-term leases), the Company recognizes the lease payments associated with those leases on a straight-line basis over the lease term as operating expense in the income statement. For all other leases, the right-of-use asset includes the amount of lease liability recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Correspondingly, the Company recognizes a lease liability, measured at the present value of lease payments to be made over the lease term, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. The incremental borrowing rate is determined considering macro-economic factors such as the specific interest rate curve based on the relevant currency and term, as well as specific factors contributing to CNH Industrial’s credit spread. The Company primarily uses the incremental borrowing rate as the discount rate for its lease liabilities. For finance leases, the right-of-use asset is classified within Property, plant and equipment, net and the lease liability, within Debt. Assets held under finance 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. In case of operating leases, the right-of-use asset is classified within Other assets and the lease liability, within Other liabilities. After the commencement date, the Company recognizes in profit or loss a single lease cost, calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis. In particular, after lease commencement, the lease liability is measured at the present value of any remaining lease payments, discounted by using the rate determined at lease commencement, consistently with the model used to calculate the liability related to the finance lease. Correspondingly, the right-of-use asset is measured as the lease liability adjusted by accrued or prepaid rents (i.e., the aggregate difference between the cash payment and straight-line lease cost), remaining unamortized initial direct costs and lease incentives, and any impairments of the right-of-use asset. |
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. For lease contracts where CNH Industrial acts as a lessor each of its leases is classified as either an operating lease or a finance lease. Leases where a significant portion of the risks and rewards are retained by the lessor are classified as operating leases. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset to the lessee. 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. |
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 the second quarter of 2020, the Company completed an interim quantitative impairment assessment as a result of the significant economic disruption caused by the COVID-19 pandemic which resulted in a goodwill impairment charge for the Construction reporting unit. At December 31, 2020, the Company performed its annual impairment review and concluded there was no impairment to goodwill for the other reporting units. At December 31, 2021, the Company performed its annual impairment review and concluded there were no impairments. 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 9: 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 attributes. 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 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. 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. |
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 in 2021 Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This ASU eliminates certain exceptions to the general principles in ASC 740, Income Taxes. Specifically, it eliminates the exception to (1) the incremental approach for intraperiod tax allocation when there is a loss from continuing operations, and income or a gain from other items; (2) the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; (3) the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and (4) the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The Company adopted ASU 2019-12 on January 1, 2021. The adoption did not have a material impact on our consolidated financial statements. Not Yet Adopted Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). ASU 2020-04 provides temporary optional expedients and exceptions for applying U.S. GAAP to contract modifications, hedging relationships, and other transactions affected by Reference Rate Reform if certain criteria are met. ASU 2020-04 can be adopted beginning as of March 12, 2020 through December 31, 2022 and may be applied as of the beginning of the interim period that includes March 12, 2020 or any date thereafter. The Company has not adopted ASU 2020-04 as of December 31, 2021. ASU 2020-04 is not expected to have a significant impact on the Company's consolidated financial statements. Revenue Contract Assets and Liabilities Acquired in a Business Combination In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"). ASU 2021-08 requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Revenue from Contracts with Customers |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of depreciation recorded over the estimated useful lives | 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 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of net revenue | The following tables summarize previously reported revenues for the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 (in millions) Agriculture $ 14,721 $ 10,923 $ 10,959 Construction 3,081 2,170 2,768 Commercial and Specialty Vehicles 12,160 9,421 10,439 Powertrain 4,419 3,629 4,117 Eliminations and Other (2,759) (1,858) (2,134) Total Industrial Activities 31,622 24,285 26,149 Financial Services 1,870 1,823 2,011 Eliminations and Other (64) (76) (81) Total Revenues $ 33,428 $ 26,032 $ 28,079 2021 2020 2019 (in millions) United States $ 6,600 $ 5,191 $ 5,610 Italy 3,261 2,673 3,253 France 3,344 2,840 3,030 Brazil 3,164 1,937 2,105 Germany 2,148 1,765 1,875 Canada 1,373 941 1,087 Australia 1,074 824 739 Spain 1,036 751 987 Argentina 791 522 509 Poland 845 576 604 Other 8,759 7,235 7,392 Total Revenues from external customers in the rest of world $ 32,395 $ 25,255 $ 27,191 |
Summary of disaggregation of revenue | The following table disaggregates previously reported revenues by major source for the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 (in millions) Revenues from: Sales of goods $ 30,613 $ 23,333 $ 25,103 Rendering of services and other revenues 688 637 660 Rents and other income on assets sold with a buy-back commitment 321 315 386 Revenues from sales of goods and services $ 31,622 $ 24,285 $ 26,149 Finance and interest income 986 988 1,164 Rents and other income on operating lease 820 759 766 Finance, interest and other income $ 1,806 $ 1,747 $ 1,930 Total Revenues $ 33,428 $ 26,032 $ 28,079 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of financing receivables | A summary of financing receivables included in the consolidated balance sheets as of December 31, 2021 and 2020 is as follows: 2021 2020 (in millions) Retail $ 10,023 $ 9,257 Wholesale 8,550 9,127 Other 89 73 Total $ 18,662 $ 18,457 |
Schedule of maturities of financing receivables | Maturities of financing receivables as of December 31, 2021 are as follows: Amount (in millions) 2022 $ 11,243 2023 2,616 2024 1,991 2025 1,517 2026 884 2027 and thereafter 411 Total $ 18,662 |
Schedule of aging of receivables | The aging of financing receivables as of December 31, 2021 and 2020 is as follows (in millions): 2021 31-60 Days Past Due 61-90 Days Past Due Total Past Due Current Total Performing Non- Performing Total Retail North America 2021 $ 3,159 $ — $ 3,159 2020 1,688 1 1,689 2019 901 1 902 2018 531 — 531 2017 229 — 229 Prior to 2017 73 — 73 Total $ 13 $ — $ 13 $ 6,568 $ 6,581 $ 2 $ 6,583 South America 2021 $ 881 $ — $ 881 2020 524 — 524 2019 295 — 295 2018 190 — 190 2017 105 — 105 Prior to 2017 72 — 72 Total $ 1 $ — $ 1 $ 2,066 $ 2,067 $ — $ 2,067 Rest of World 2021 $ 598 $ — $ 598 2020 370 4 374 2019 174 1 175 2018 103 1 104 2017 47 — 47 Prior to 2017 5 — 5 Total $ 14 $ 8 $ 22 $ 1,275 $ 1,297 $ 6 $ 1,303 Europe $ — $ — $ — $ 70 $ 70 $ — $ 70 Total Retail $ 28 $ 8 $ 36 $ 9,979 $ 10,015 $ 8 $ 10,023 Wholesale North America $ — $ — $ — $ 2,339 $ 2,339 $ — $ 2,339 South America — — — 633 633 22 655 Rest of World 2 — 2 517 519 — 519 Europe — — — 5,037 5,037 — 5,037 Total Wholesale $ 2 $ — $ 2 $ 8,526 $ 8,528 $ 22 $ 8,550 2020 31-60 Days Past Due 61-90 Days Past Due Total Past Due Current Total Performing Non- Performing Total Retail North America 2020 $ 2,619 $ — $ 2,619 2019 1,571 1 1,572 2018 1,033 1 1,034 2017 543 1 544 2016 262 1 263 Prior to 2016 81 — 81 Total $ 29 $ — $ 29 $ 6,080 $ 6,109 $ 4 $ 6,113 South America 2020 $ 792 $ 1 $ 793 2019 448 3 451 2018 299 4 303 2017 173 2 175 2016 86 1 87 Prior to 2016 71 1 72 Total $ 4 $ 1 $ 5 $ 1,864 $ 1,869 $ 12 $ 1,881 Rest of World 2020 $ 544 $ — $ 544 2019 270 1 271 2018 195 1 196 2017 117 1 118 2016 39 — 39 Prior to 2016 2 — 2 Total $ 7 $ 4 $ 11 $ 1,156 $ 1,167 $ 3 $ 1,170 Europe $ — $ — $ — $ 93 $ 93 $ — $ 93 Total Retail $ 40 $ 5 $ 45 $ 9,193 $ 9,238 $ 19 $ 9,257 Wholesale North America $ — $ — $ — $ 2,722 $ 2,722 $ 31 $ 2,753 South America — — — 537 537 42 579 Rest of World 3 — 3 542 545 — 545 Europe — — — 5,250 5,250 — 5,250 Total Wholesale $ 3 $ — $ 3 $ 9,051 $ 9,054 $ 73 $ 9,127 |
Schedule of allowance for credit loss | Allowance for credit losses activity for the three years ended December 31, 2021, 2020 and 2019 is as follows (in millions): December 31, 2021 Retail Wholesale Opening balance $ 381 $ 174 Provision 21 17 Charge-offs, net of recoveries (47) (10) Foreign currency translation and other (22) (6) Ending balance $ 333 $ 175 At December 31, 2021, the allowance for credit losses included a reduction in retail reserves primarily due to the improved outlook for the agricultural industry and a reduced expected impact on credit conditions from the COVID-19 pandemic. The Company continues to monitor the situation and will update the macroeconomic factors and qualitative factors in future periods, as warranted. The provision for credit losses is included in selling, general and administrative expenses. At December 31, 2020, the allowance for credit losses was based on the Company's expectation of deteriorating credit conditions related to the COVID-19 pandemic. . December 31, 2020 Retail Wholesale Opening Balance, as previously reported $ 299 $ 159 Adoption of ASC 326 35 (9) Opening Balance, as recast 334 150 Provision 113 27 Charge-offs, net of recoveries (56) (14) Foreign currency translation and other (10) 11 Ending balance $ 381 $ 174 December 31, 2019 Retail Wholesale Opening balance $ 326 $ 164 Provision 44 12 Charge-offs, net of recoveries (51) (18) Foreign currency translation and other (20) 1 Ending balance $ 299 $ 159 |
Schedule of carrying amount of restricted assets | At December 31, 2021 and 2020, the carrying amount of such restricted receivables included in financing receivables above are the following (in millions): 2021 2020 Retail note and finance lease receivables $ 6,916 $ 6,224 Wholesale receivables 5,624 7,011 Total $ 12,540 $ 13,235 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories (stated at the lower of cost or market, cost being determined on a FIFO basis) as of December 31, 2021 and 2020 consist of the following: 2021 2020 (in millions) Raw materials $ 2,177 $ 1,525 Work-in-process 1,084 622 Finished goods 3,960 3,875 Total Inventories $ 7,221 $ 6,022 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant, and equipment | A summary of property, plant and equipment as of December 31, 2021 and 2020 is as follows: 2021 2020 (in millions) Land and industrial buildings $ 3,305 $ 3,428 Plant, machinery and equipment 8,994 9,268 Assets sold with buy-back commitment 2,235 2,640 Construction in progress 196 149 Other 778 810 Gross property, plant and equipment 15,508 16,295 Accumulated depreciation (10,812) (11,372) Net property, plant and equipment $ 4,696 $ 4,923 |
Investments in Unconsolidated_2
Investments in Unconsolidated Subsidiaries and Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of investments in unconsolidated subsidiaries and affiliates | A summary of investments in unconsolidated subsidiaries and affiliates as of December 31, 2021 and 2020 is as follows: 2021 2020 (in millions) Equity method $ 630 $ 514 Cost method 62 15 Total $ 692 $ 529 |
Schedule of results of operations and financial position | 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 (unaudited): For The Years Ended December 31, 2021 2020 2019 (in millions) Net revenue $ 2,468 $ 2,716 $ 2,480 Income before taxes $ 354 $ 133 $ 71 Net income $ 273 $ 50 $ 29 As of December 31, 2021 2020 (in millions) Total Assets $ 8,141 $ 8,529 Total Liabilities $ 6,880 $ 7,449 Total Equity $ 1,261 $ 1,080 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of future minimum lease payments under operating leases | Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows: Operating Leases ($ million) 2021 $ 130 2022 87 2023 63 2024 51 2025 37 2026 and thereafter 87 Total future minimum lease payments $ 455 Less: Interest 38 Total $ 417 |
Schedule of equipment on operating leases | A summary of equipment on operating leases as of December 31, 2021, and 2020 is as follows: 2021 2020 (in millions) Equipment on operating leases $ 2,295 $ 2,442 Accumulated depreciation (492) (464) Net equipment on operating leases $ 1,803 $ 1,978 |
Schedule of undiscounted lease payments to be received under operating leases | The following table sets out a maturity analysis of operating lease payments, showing the undiscounted lease payments to be received after the reporting date: Amount (in millions) 2021 $ 245 2022 159 2023 86 2024 34 2025 10 2026 and thereafter — Total undiscounted lease payments $ 534 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill | Changes in the carrying amount of goodwill, for the years ended December 31, 2021 and 2020 are as follows: Agriculture Construction Commercial and Specialty Vehicles Powertrain Financial Services Total (in millions) Balance at January 1, 2020 $ 1,732 $ 587 $ 59 $ 5 $ 155 $ 2,538 Foreign currency translation and other (37) (2) 6 2 2 (29) Goodwill impairment charge — (585) — — — (585) Balance at December 31, 2020 $ 1,695 $ — $ 65 $ 7 $ 157 $ 1,924 Foreign currency translation and other (1) (2) (5) (1) (1) (10) Acquisitions 1,326 51 — — — 1,377 Balance at December 31, 2021 $ 3,020 $ 49 $ 60 $ 6 $ 156 $ 3,291 |
Schedule of other intangible assets and related accumulated amortization | As of December 31, 2021, and December 31, 2020, the Company’s other intangible assets and related accumulated amortization consisted of the following: 2021 2020 Weighted Avg. Life Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in millions) Other intangible assets subject to amortization: Dealer networks 15 $ 310 $ 249 $ 61 $ 311 $ 241 $ 70 Patents, concessions, licenses and other 5-25 2,718 1,703 1,015 2,107 1,678 429 3,028 1,952 1,076 2,418 1,919 499 Other intangible assets not subject to amortization: Trademarks 272 — 272 273 — 273 Total Other intangible assets $ 3,300 $ 1,952 $ 1,348 $ 2,691 $ 1,919 $ 772 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of issued bond outstanding | A summary of issued bonds outstanding as of December 31, 2021, is as follows: Currency Face value of outstanding bonds (in millions) Coupon Maturity Outstanding amount Industrial Activities Euro Medium Term Notes: CNH Industrial Finance Europe S.A. (1) EUR 75 1.625 % March 29, 2022 85 CNH Industrial Finance Europe S.A. (1) EUR 369 2.875 % May 17, 2023 417 CNH Industrial Finance Europe S.A. (1) EUR 750 0.000 % April 1, 2024 850 CNH Industrial Finance Europe S.A. (1) EUR 650 1.750 % September 12, 2025 736 CNH Industrial Finance Europe S.A. (1) EUR 100 3.500 % November 12, 2025 113 CNH Industrial Finance Europe S.A. (1) EUR 500 1.875 % January 19, 2026 566 CNH Industrial Finance Europe S.A. (1) EUR 600 1.750 % March 25, 2027 680 CNH Industrial Finance Europe S.A. (1) EUR 50 3.875 % April 21, 2028 57 CNH Industrial Finance Europe S.A. (1) EUR 500 1.625 % July 3, 2029 566 CNH Industrial Finance Europe S.A. (1) EUR 50 2.200 % July 15, 2039 57 Other Bonds: CNH Industrial N.V. (2) USD 600 4.500 % August 15, 2023 600 CNH Industrial N.V. (2) USD 500 3.850 % November 15, 2027 500 Hedging effects, bond premium/discount, and unamortized issuance costs (43) Total Industrial Activities 5,184 Financial Services CNH Industrial Capital LLC USD 500 4.375 % April 5, 2022 500 CNH Industrial Capital Australia Pty Ltd. AUD 175 2.100 % December 12, 2022 127 CNH Industrial Capital LLC USD 600 1.950 % July 2, 2023 600 CNH Industrial Capital Argentina SA USD 31 0.000 % August 31, 2023 31 CNH Industrial Capital LLC USD 500 4.200 % January 15, 2024 500 CNH Industrial Capital Australia Pty Ltd. AUD 200 1.750 % July 8, 2024 145 CNH Industrial Capital Australia Pty Ltd. AUD 50 1.750 % July 8, 2024 36 CNH Industrial Capital Canada Ltd CAD 300 1.500 % October 1, 2024 236 CNH Industrial Capital LLC USD 500 1.875 % January 15, 2026 500 CNH Industrial Capital LLC USD 600 1.450 % July 15, 2026 600 Hedging effects, bond premium/discount, and unamortized issuance costs 5 Total Financial Services 3,280 (1) Bond listed on the Irish Stock Exchange (2) Bond listed on the New York Stock Exchange A summary of total debt as of December 31, 2021 and 2020, is as follows: 2021 2020 Industrial Activities Financial Services Total Industrial Activities Financial Services Total (in millions) Total Bonds $ 5,184 $ 3,280 $ 8,464 $ 6,366 $ 3,216 $ 9,582 Asset-backed debt — 11,055 11,055 — 11,922 11,922 Other debt 181 4,045 4,226 905 3,644 4,549 Intersegment debt 798 1,055 — 1,017 856 — Total Debt $ 6,163 $ 19,435 $ 23,745 $ 8,288 $ 19,638 $ 26,053 |
Schedule of minimum annual repayments of debt | A summary of the minimum annual repayments of debt as of December 31, 2021, for 2022 and thereafter is as follows: Industrial Activities Financial Services Consolidated (in millions) 2022 $ 187 $ 9,874 $ 10,061 2023 1,036 3,296 4,332 2024 854 2,516 3,370 2025 852 974 1,826 2026 568 1,577 2,145 2027 and thereafter 1,868 143 2,011 Intersegment 798 1,055 — Total $ 6,163 $ 19,435 $ 23,745 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of sources of income before taxes in equity in income 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, 2021, 2020, and 2019 are as follows: 2021 2020 2019 (in millions) Parent country source $ 169 $ (131) $ (3) Foreign sources 1,811 (374) 1,173 Income (loss) before taxes and equity in income of unconsolidated subsidiaries and affiliates $ 1,980 $ (505) $ 1,170 |
Schedule of income tax provision | The provision for income taxes for the years ended December 31, 2021, 2020 and 2019 consisted of the following: 2021 2020 2019 (in millions) Current income taxes $ 593 $ 235 $ 203 Deferred income taxes (251) (285) (474) Total income tax provision (benefit) $ 342 $ (50) $ (271) |
Schedule of reconciliation of income tax expense | Reconciliations of CNH Industrial’s income tax expense for the years ended December 31, 2021, 2020 and 2019 are as follows: 2021 2020 2019 (in millions) Tax provision at the parent statutory rate $ 376 $ (96) $ 222 Foreign income taxed at different rates 125 (6) 79 Change in valuation allowance (170) (9) (502) Italian IRAP taxes 15 12 14 Tax contingencies 8 5 7 Tax credits and incentives (86) (36) (88) Goodwill impairment — 111 — Nikola fair value remeasurement effect 24 (24) — Change in tax rate or law (10) (14) (5) Withholding taxes 15 — 2 Other 45 7 — Total income tax provision (benefit) $ 342 $ (50) $ (271) |
Schedule of components of net deferred tax assets | The components of net deferred tax assets as of December 31, 2021 and 2020 are as follows: 2021 2020 (in millions) Deferred tax assets: Inventories $ — $ 85 Warranty and campaigns 224 217 Allowance for credit losses 147 159 Marketing and sales incentive programs 308 272 Other risk and future charges reserve 236 256 Pension, postretirement and postemployment benefits 214 271 Leasing liabilities 109 117 Research and development costs 308 306 Other reserves 607 400 Tax credits and loss carry forwards 652 798 Less: Valuation allowances (736) (941) Total deferred tax assets $ 2,069 $ 1,940 Deferred tax liabilities: Property, plant and equipment $ 454 $ 423 Other 303 178 Total deferred tax liabilities 757 601 Net deferred tax assets $ 1,312 $ 1,339 Net deferred tax assets are reflected in the accompanying consolidated balance sheets as of December 31, 2021 and 2020 as follows: 2021 2020 (in millions) Deferred tax assets $ 1,481 $ 1,451 Deferred tax liabilities (139) (112) Other liabilities (30) — Net deferred tax assets $ 1,312 $ 1,339 |
Schedule of reconciliation of the 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: 2021 2020 (in millions) Balance, beginning of year $ 270 $ 255 Additions based on tax positions related to the current year 30 19 Additions for tax positions of prior years 11 39 Reductions for tax positions of prior years (32) (5) Reductions for tax positions as a result of lapse of statute (1) (37) Settlements (38) (1) Balance, end of year $ 240 $ 270 |
Employee Benefit Plans and Po_2
Employee Benefit Plans and Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of defined benefit pension, healthcare and other postemployment plans | The following summarizes data from CNH Industrial’s defined benefit pension, healthcare and other postemployment plans for the years ended December 31, 2021 and 2020: Pension Healthcare (1) Other (1) 2021 2020 2021 2020 2021 2020 (in millions) Change in benefit obligations: Beginning benefit obligation $ 2,659 $ 2,938 $ 418 $ 412 $ 455 $ 431 Service cost 22 22 4 4 18 16 Interest cost 22 44 6 10 1 1 Plan participants’ contributions 3 3 6 5 — — Actuarial loss (gain) (94) 215 (20) 21 11 — Gross benefits paid (100) (139) (36) (37) (33) (31) Plan amendments — 2 (100) 1 — — Currency translation adjustments and other (2) (70) (426) 11 2 (36) 38 Ending benefit obligation $ 2,442 $ 2,659 $ 289 $ 418 $ 416 $ 455 Change in the fair value of plan assets: Beginning plan assets 1,807 2,096 145 152 — — Actual return on plan assets 85 231 9 17 — — Employer contributions 52 70 — — — — Plan participants’ contributions 3 3 — — — — Gross benefits paid (75) (114) (9) (9) — — Currency translation adjustments and other (2) (32) (479) (15) (15) — — Ending plan assets 1,840 1,807 130 145 — — Funded status: $ (602) $ (852) $ (159) $ (273) $ (416) $ (455) (1) The healthcare and other postemployment plans are not required to be prefunded. (2) Includes the impact of the transfer of the outstanding pension benefit obligations related to certain retirees and beneficiaries within the U.S. plans through group annuity contract purchases in the fourth quarter 2020. |
Schedule of defined benefit pension plans by significant geographical area | The following summarizes data from CNH Industrial’s defined benefit pension plans by significant geographical area for the years ended December 31, 2021 and 2020: U.S. U.K Germany (1) Other Countries (1) 2021 2020 2021 2020 2021 2020 2021 2020 (in millions) Change in benefit obligations: Beginning benefit obligation $ 177 $ 666 $ 1,608 $ 1,488 $ 449 $ 424 $ 425 $ 360 Service cost 3 4 — — 4 4 15 14 Interest cost 4 16 16 24 1 2 1 2 Plan participants’ contributions — — — — — — 3 3 Actuarial loss (gain) (15) 80 (27) 99 (26) 6 (26) 30 Gross benefits paid 5 (40) (61) (58) (25) (25) (18) (16) Plan amendments — 2 — — — — — — Currency translation adjustments and other (2) — (551) (18) 55 (32) 38 (21) 32 Ending benefit obligation $ 174 $ 177 $ 1,518 $ 1,608 $ 371 $ 449 $ 379 $ 425 Change in the fair value of plan assets: Beginning plan assets 204 700 1,230 1,067 5 5 368 324 Actual return on plan assets (4) 93 62 118 — — 27 20 Employer contributions — — 41 59 — — 11 11 Plan participants’ contributions — — — — — — 3 3 Gross benefits paid 5 (40) (60) (58) — — (19) (16) Currency translation adjustments and other (2) — (549) (17) 44 (1) — (15) 26 Ending plan assets $ 205 $ 204 $ 1,256 $ 1,230 $ 4 $ 5 $ 375 $ 368 Funded status: $ 31 $ 27 $ (262) $ (378) $ (367) $ (444) $ (4) $ (57) (1) Pension benefits in Germany and some other countries are not required to be prefunded. (2) Includes the impact of the transfer of the outstanding pension benefit obligations related to certain retirees and beneficiaries within the U.S. plans through group annuity contract purchases in the fourth quarter of 2021 and 2020. |
Schedule of net amounts recognized in consolidated balance sheets | Net amounts recognized in the consolidated balance sheets as of December 31, 2021 and 2020 consist of: Pension Healthcare Other 2021 2020 2021 2020 2021 2020 (in millions) Other assets $ 57 $ 37 $ — $ — $ — $ — Pension, postretirement and other postemployment benefits (659) (889) (159) (273) (416) (455) Net liability recognized at end of year $ (602) $ (852) $ (159) $ (273) $ (416) $ (455) |
Schedule of pre-tax amounts recognized in accumulated other comprehensive loss | Pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 2021 consist of: Pension Healthcare Other (in millions) Unrecognized actuarial losses $ 631 $ 33 $ 106 Unrecognized prior service credit 3 (206) (6) Accumulated other comprehensive loss $ 634 $ (173) $ 100 |
Schedule of aggregate pension accumulated benefit obligation | 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 2021 2020 (in millions) Accumulated benefit obligation $ 1,963 $ 2,384 Fair value of plan assets $ 1,312 $ 1,526 |
Schedule of 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 2021 2020 2021 2020 2021 2020 (in millions) Projected benefit obligation $ 2,068 $ 2,428 $ 289 $ 418 $ 416 $ 455 Fair value of plan assets $ 1,409 $ 1,539 $ 130 $ 145 $ — $ — |
Schedule of 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, 2021, 2020, and 2019: Pension Healthcare Other 2021 2020 2019 2021 2020 2019 2021 2020 2019 (in millions) Service cost $ 22 $ 22 $ 23 $ 4 $ 4 $ 5 $ 18 $ 16 $ 13 Interest cost 22 44 74 6 10 14 1 1 3 Expected return on assets (66) (80) (99) (7) (7) (7) — — — Amortization of: Prior service cost (credit) — — 1 (136) (130) (125) — — 1 Actuarial loss (gain) 31 40 67 3 2 (2) 7 5 14 Settlement loss and other — 125 125 — — — 2 2 2 Net periodic benefit cost (credit) $ 9 $ 151 $ 191 $ (130) $ (121) $ (115) $ 28 $ 24 $ 33 |
Schedule of 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 2021 consist of: Pension Healthcare Other (in millions) Net periodic benefit cost $ 9 $ (130) $ 28 Benefit adjustments included in other comprehensive (income) loss: Net actuarial losses (gains) (113) (23) 8 Amortization of actuarial losses (31) (3) (6) Amortization of prior service (cost) credit — 136 — Currency translation adjustments and other (18) (100) (4) Total recognized in other comprehensive (income) loss (162) 10 (2) Total recognized in comprehensive loss $ (153) $ (120) $ 26 |
Schedule of assumptions utilized in determining the funded status and the net periodic benefit cost | The following assumptions were utilized in determining the funded status at December 31, 2021 and 2020, and the net periodic benefit cost of CNH Industrial’s defined benefit plans for the years ended December 31, 2021, 2020, and 2019: Pension plans Healthcare plans Other (in %) 2021 2020 2019 2021 2020 2019 2021 2020 2019 Assumptions used to determine funded status at December 31 Weighted-average discount rate 1.63 1.12 1.88 2.54 2.12 2.99 0.96 0.47 0.69 Weighted-average rate of compensation increase 2.12 2.07 2.99 n/a n/a n/a 2.14 1.85 1.91 Weighted-average, initial healthcare cost trend rate n/a n/a n/a 4.18 4.39 4.68 n/a n/a n/a Weighted-average, ultimate healthcare cost trend rate(*) n/a n/a n/a 3.58 3.95 4.20 n/a n/a n/a Assumptions used to determine expense Weighted-average discount rates - service cost 0.69 1.06 1.97 2.47 3.15 4.03 0.63 0.81 1.76 Weighted-average discount rates - interest cost 0.86 1.62 2.58 1.53 2.58 3.53 0.41 0.61 1.50 Weighted-average rate of compensation increase 2.07 2.99 3.00 n/a n/a n/a 1.85 1.91 1.41 Weighted-average long-term rates of return on plan assets 3.69 4.02 4.68 4.85 5.00 5.50 n/a n/a n/a Weighted-average, initial healthcare cost trend rate n/a n/a n/a 4.39 4.68 6.17 n/a n/a n/a Weighted-average, ultimate healthcare cost trend rate(*) n/a n/a n/a 3.95 4.20 5.00 n/a n/a n/a |
Schedule of weighted average target asset allocation | Weighted average target asset allocation for all plans for 2021 are as follows: All Plans Asset category: Equity securities 11 % Debt securities 44 % Cash/Other 45 % |
Schedule of fair value of plan assets by asset category and level within the 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, 2021: Total Level 1 Level 2 Level 3 (in millions) Equity securities: U.S. equities $ — $ — $ — $ — Non-U.S. equities — — — — Total Equity securities — — — — Fixed income securities: U.S. government bonds 72 72 — — U.S. corporate bonds 7 1 6 — Non-U.S. government bonds 40 9 31 — Non-U.S. corporate bonds 18 — 18 — Mortgage backed securities — — — — Other fixed income — — — — Total Fixed income securities 137 82 55 — Other types of investments: Mutual funds (A) 1,588 — 1,588 — Insurance contracts 207 — — 207 Derivatives—credit contracts — — — — Real estate — — — — Total Other types of investments 1,795 — 1,588 207 Cash: 37 17 20 — Total $ 1,969 $ 99 $ 1,663 $ 207 (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, 2020: Total Level 1 Level 2 Level 3 (in millions) Equity securities: U.S. equities $ — $ — $ — $ — Non-U.S. equities — — — — Total Equity securities — — — — Fixed income securities: U.S. government bonds 32 30 2 — U.S. corporate bonds 42 5 37 — Non-U.S. government bonds 49 10 39 — Non-U.S. corporate bonds 25 — 25 — Mortgage backed securities — — — — Other fixed income — — — — Total Fixed income securities 148 45 103 — Other types of investments: Mutual funds (A) 1,582 21 1,561 — Insurance contracts 200 — — 200 Derivatives—credit contracts — — — — Real estate — — — — Total Other types of investments 1,782 21 1,561 200 Cash: 22 10 12 — Total $ 1,952 $ 76 $ 1,676 $ 200 (A) This category includes mutual funds, which primarily invest in non-U.S. equities and non-U.S. corporate bonds. |
Schedule of changes in level 3 plan assets | The following table presents the changes in the Level 3 plan assets for the year ended December 31, 2021: Insurance Contracts (in millions) Balance at December 31, 2020 $ 200 Actual return on plan assets relating to assets still held at reporting date 16 Purchases 9 Settlements (9) Transfers in and/or out of level 3 — Currency impact (9) Balance at December 31, 2021 $ 207 The following table presents the changes in the Level 3 plan assets for the year ended December 31, 2020: Insurance Contracts (in millions) Balance at December 31, 2019 $ 171 Actual return on plan assets relating to assets still held at reporting date 8 Purchases 8 Settlements (5) Transfers in and/or out of Level 3 — Currency impact 18 Balance at December 31, 2020 $ 200 |
Schedule of 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) 2022 $ 105 $ 24 $ — $ 32 2023 106 23 — 26 2024 103 22 — 28 2025 107 21 — 28 2026 108 21 — 26 2027 - 2031 564 98 (1) 150 Total $ 1,093 $ 209 $ (1) $ 290 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Summary of other liabilities | A summary of “Other liabilities” as of December 31, 2021 and 2020 is as follows: 2021 2020 (in millions) Advances on buy-back agreements $ 1,146 $ 1,355 Warranty and campaign programs 987 995 Marketing and sales incentive programs 1,558 1,324 Tax payables 904 654 Accrued expenses and deferred income 685 672 Accrued employee benefits 935 681 Lease liabilities 417 453 Legal reserves and other provisions 316 332 Contract reserve 367 389 Contract liabilities 1,458 1,381 Restructuring reserve 71 76 Other 1,529 1,100 Total $ 10,373 $ 9,412 |
Summary of recorded activity for the basic warranty and campaign program accrual | A summary of recorded activity for the basic warranty and campaign program accrual for the years ended December 31, 2021 and 2020 are as follows: 2021 2020 (in millions) Balance, beginning of year $ 995 $ 919 Current year additions 800 784 Claims paid (713) (685) Currency translation adjustment and other (95) (23) Balance, end of year $ 987 $ 995 |
Schedule of restructuring activity | The following table sets forth restructuring activity for the years ended December 31, 2021, 2020 and 2019: Severance and Other Employee Costs Facility Related Costs Other Restructuring Total (in millions) Balance at January 1, 2019 $ 40 $ 30 $ 1 $ 71 Restructuring charges 98 (2) 13 109 Reserves utilized: cash (77) 25 (4) (56) Reserves utilized: non-cash 3 (16) (7) (20) Currency translation adjustments (2) 1 — (1) Balance at December 31, 2019 $ 62 $ 38 $ 3 $ 103 Restructuring charges 46 3 — 49 Reserves utilized: cash (61) (7) (4) (72) Reserves utilized: non-cash (6) (5) 2 (9) Currency translation adjustments 3 1 1 5 Balance at December 31, 2020 $ 44 $ 30 $ 2 $ 76 Restructuring charges 70 2 2 74 Reserves utilized: cash (74) (2) 3 (73) Reserves utilized: non-cash 7 (6) (2) (1) Currency translation adjustments (3) (1) (1) (5) Balance at December 31, 2021 $ 44 $ 23 $ 4 $ 71 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of financing agreements | At December 31, 2021, 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 $ 7,549 $ 2,725 $ 4,824 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Gross impact of changes in fair value of derivatives designated as cash flow hedges on AOCI and net income | The following table summarizes the gross impact of changes in the fair value of derivatives designated as cash flow hedges on accumulated other comprehensive income (loss) and net income during the year ended December 31, 2021, December 31, 2020, and December 31, 2019 (in millions): Recognized in Net Income For the Year Ended December 31, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2021 Foreign exchange contracts $ (57) Net sales $ 2 Cost of goods sold (11) Other, net (4) Interest expense, net 3 Interest rate contracts 49 Total $ (8) $ (10) 2020 Foreign exchange contracts $ 96 Net sales $ (7) Cost of goods sold 31 Other, net 6 Interest expense, net (5) Interest rate contracts (14) Total $ 82 $ 25 2019 Foreign exchange contracts $ (113) Net sales $ — Cost of goods sold (69) Other, net (16) Interest expense, net (8) Interest rate contracts (22) Total $ (135) $ (93) Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in December 31, 2021 and 2020 consisted of the following: Amount Reclassified from Other Comprehensive Income (Loss) Consolidated Statement of Operations line 2021 2020 (in millions) Cash flow hedges $ (2) $ 7 Net sales 11 (31) Cost of goods sold 4 (6) Other, net (3) 5 Interest expense (1) (1) Income taxes $ 9 $ (26) Change in retirement plans’ funded status: Amortization of actuarial losses $ 41 $ 47 * Amortization of prior service cost (136) (130) * (13) (63) Income taxes $ (108) $ (146) Total reclassifications, net of tax $ (99) $ (172) |
Summary of impact of changes in fair value of fair value hedges and derivatives not designated as hedging instruments on earnings | The following table summarizes the activity in accumulated other comprehensive income related to the derivatives held by the Company during the years ended December 31, 2021, December 31, 2020, and December 31, 2019: (in millions) Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2020 $ (5) $ (1) $ (6) Net changes in fair value of derivatives (8) (12) (20) Net losses reclassified from accumulated other comprehensive income into income 10 (1) 9 Accumulated derivative net losses as of December 31, 2021 $ (3) $ (14) $ (17) (in millions) Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2019 $ (62) $ 8 $ (54) Net changes in fair value of derivatives 82 (8) 74 Net losses reclassified from accumulated other comprehensive income into income (25) (1) (26) Accumulated derivative net losses as of December 31, 2020 $ (5) $ (1) $ (6) (in millions) Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2018 $ (20) $ (2) $ (22) Net changes in fair value of derivatives (135) 24 (111) Net losses reclassified from accumulated other comprehensive income into income 93 (14) 79 Accumulated derivative net losses as of December 31, 2019 $ (62) $ 8 $ (54) The following tables summarize the impact of the changes in the fair value of fair value hedges and derivatives not designated as hedging instruments had on earnings for the year ended December 31, 2021, December 31, 2020, and December 31, 2019: For the Year Ended December 31, (in millions) Classification of Gain 2021 2020 2019 Fair Value Hedges Interest rate derivatives Interest expense $ (47) $ 31 $ 31 Not Designated as Hedges Foreign exchange contracts Other, Net $ (78) $ 86 $ (73) |
Summary of fair value of derivatives | The fair values of CNH Industrial’s derivatives as of December 31, 2021 and December 31, 2020 in the consolidated balance sheets are recorded as follows: December 31, 2021 December 31, 2020 (in millions of dollars) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments under Subtopic 815-20 Interest rate contracts Derivative assets 65 Derivative assets 77 Foreign currency contracts Derivative assets 77 Derivative assets 67 Total derivative assets designated as hedging instruments 142 144 Interest rate contracts Derivative liabilities 28 Derivative liabilities 46 Foreign currency contracts Derivative liabilities 101 Derivative liabilities 62 Total derivative liabilities designated as hedging instruments 129 108 Derivatives not designated as hedging instruments under Subtopic 815-20 Interest rate contracts Derivative assets 11 Derivative assets — Foreign currency contracts Derivative assets 32 Derivative assets 16 Total derivative assets not designated as hedging instruments 43 16 Interest rate contracts Derivative liabilities 12 Derivative liabilities — Foreign currency contracts Derivative liabilities 35 Derivative liabilities 31 Total derivative liabilities not designated as hedging instruments 47 31 |
Summary of fair value hierarchy levels | The following tables present for each of the fair-value hierarchy levels the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2021 and December 31, 2020: Level 1 Level 2 Total December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 (in millions) Assets Foreign exchange derivatives $ — $ — $ 109 $ 83 $ 109 $ 83 Interest rate derivatives — — 76 77 76 77 Investments at fair value through profit & loss 254 392 — — 254 392 Total Assets $ 254 $ 392 $ 185 $ 160 $ 439 $ 552 Liabilities Foreign exchange derivatives $ — $ — $ 136 $ 93 $ 136 $ 93 Interest rate derivatives — — 40 46 40 46 Total Liabilities $ — $ — $ 176 $ 139 $ 176 $ 139 |
Summary of estimated fair market values | The estimated fair market values of financial instruments not carried at fair value in the consolidated balance sheets as of December 31, 2021 and 2020 are as follows: December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair (in millions) Financing receivables $18,662 $18,897 $18,457 $18,726 Debt $23,745 $23,939 $26,053 $26,630 |
Schedule of investments measured on nonrecurring basis | The following tables present the fair value for nonrecurring Level 3 measurements from impairments as of December 31, 2021 and 2020: Fair Value Losses 2021 2020 2021 2020 (in millions) Property, plant and equipment $ — $ 107 $ — $ 163 Other intangible assets $ — $ — $ — $ 92 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of stock | Changes in the composition of the share capital of CNH Industrial during 2021, 2020, and 2019 are as follows: (number of shares) CNH Industrial N.V. Common Shares CNH Industrial N.V. Loyalty Program Special Voting Shares Total CNH Industrial N.V. Shares Total CNH Industrial N.V. shares at December 31, 2018 1,353,831,958 388,725,624 1,742,557,582 Capital increase 2,568,751 — 2,568,751 Common Stock Repurchase (6,268,592) — (6,268,592) Retirement of special voting shares — (774,458) (774,458) Total CNH Industrial N.V. shares at December 31, 2019 1,350,132,117 387,951,166 1,738,083,283 Capital increase 3,778,354 — 3,778,354 Common stock repurchases — — — Retirement of special voting shares — (16,623,012) (16,623,012) Total CNH Industrial N.V. shares at December 31, 2020 1,353,910,471 371,328,154 1,725,238,625 Capital increase 2,166,529 — 2,166,529 Common stock repurchases — — — Retirement of special voting shares — (109,904) (109,904) Total CNH Industrial N.V. shares at December 31, 2021 1,356,077,000 371,218,250 1,727,295,250 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of performance-based share units | The following table reflects the activity of PSUs under the 2021-2023 Long-Term Incentive Plan for the year ended December 31, 2021: 2021 Performance Shares Weighted Average Grant-Date Fair Value Nonvested at beginning of year 6,931,030 $ 10.83 Granted 3,035,985 13.15 Forfeited/Cancelled (545,790) 10.83 Vested — — Nonvested at end of year 9,421,225 $ 11.55 |
Schedule of activity of restricted share units | The following table reflects the activity of RSUs under the 2017-2019 Long-Term Incentive Plan and 2021-2023 Long-Term Incentive Plan for the year ended December 31, 2021: 2021 Restricted Shares Weighted Average Grant-Date Fair Value Nonvested at beginning of year 5,443,197 $ 10.95 Granted 1,464,305 14.42 Forfeited (396,086) 11.88 Vested (2,141,337) 11.59 Nonvested at end of year 4,370,079 $ 11.72 |
Schedule of additional share-based compensation | The table below provides additional share-based compensation information for the years ended December 31, 2021, 2020, and 2019: 2021 2020 2019 (in millions) Total intrinsic value of options exercised and shares vested $ 35 $ 41 $ 21 Fair value of shares vested $ 25 $ 42 $ 23 Cash received from share award exercises $ — $ — $ — Tax benefit of options exercised and shares vested $ — $ — $ — |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 and 2019. 2021 2020 2019 (in millions, except per share data) Basic: Net income (loss) attributable to CNH Industrial $ 1,723 $ (493) $ 1,422 Weighted average common shares outstanding—basic 1,354 1,351 1,352 Basic earnings (loss) per share $ 1.27 $ (0.36) $ 1.05 Diluted: Net income (loss) attributable to CNH Industrial $ 1,723 $ (493) $ 1,422 Weighted average common shares outstanding—basic 1,354 1,351 1,352 Effect of dilutive securities (when dilutive): Stock compensation plans 7 — 2 Weighted average common shares outstanding—diluted (A) 1,361 1,351 1,354 Diluted earnings (loss) per share $ 1.27 $ (0.36) $ 1.05 (A) For the twelve months ended December 31, 2021, and 2020 0.06 million and 1.2 million shares were excluded from the computation of diluted earnings per share due to an anti-dilutive impact. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Summary of tax effects on 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, 2021 (in millions) Gross Amount Income Taxes Net Amount Unrealized gain (loss) on cash flow hedges $ 2 $ (13) $ (11) Changes in retirement plans’ funded status 109 (15) 94 Foreign currency translation 247 — 247 Share of other comprehensive loss of entities using the equity method (93) — (93) Other comprehensive loss $ 265 $ (28) $ 237 Year Ended December 31, 2020 (in millions) Gross Amount Income Taxes Net Amount Unrealized gain (loss) on cash flow hedges $ 57 $ (9) $ 48 Changes in retirement plans’ funded status (10) 7 (3) Foreign currency translation (735) — (735) Share of other comprehensive loss of entities using the equity method 20 — 20 Other comprehensive loss $ (668) $ (2) $ (670) Year Ended December 31, 2019 (in millions) Gross Amount Income Taxes Net Amount Unrealized gain (loss) on cash flow hedges $ (42) $ 10 $ (32) Changes in retirement plans’ funded status (115) 3 (112) Foreign currency translation 71 — 71 Share of other comprehensive loss of entities using the equity method (8) — (8) Other comprehensive income $ (94) $ 13 $ (81) |
Summary of changes in other comprehensive income (loss) | The changes, net of tax, in each component of accumulated other comprehensive income (loss) consisted of the following: (in millions) Unrealized Gain (Loss) on Cash Flow Hedges Change in Retirement Plans’ Funded Status Foreign Currency Translation Share of Other Comprehensive Income of Entities Using the Equity Method Total Balance, December 31, 2018 $ (22) $ (473) $ (1,216) $ (148) $ (1,859) Other comprehensive income (loss), before reclassifications (111) (68) 71 (5) (113) Amounts reclassified from other comprehensive income 79 (44) — — 35 Other comprehensive income (loss) 1 (32) (112) 71 (5) (78) Reclassification of certain tax effects — (65) — — (65) Balance, December 31, 2019 $ (54) $ (650) $ (1145) $ (153) $ (2,002) Other comprehensive income (loss), before reclassifications 74 143 (739) 20 (502) Amounts reclassified from other comprehensive income (26) (146) — — (172) Other comprehensive income (loss) 1 48 (3) (739) 20 (674) Balance, December 31, 2020 $ (6) $ (653) $ (1,884) $ (133) $ (2,676) Other comprehensive income (loss), before reclassifications (20) 202 241 (93) 330 Amounts reclassified from other comprehensive income 9 (108) — — (99) Other comprehensive income (loss) 1 (11) 94 241 (93) 231 Balance, December 31, 2021 $ (17) $ (559) $ (1,643) $ (226) $ (2,445) |
Summary of reclassification of accumulated other comprehensive income (loss) | The following table summarizes the gross impact of changes in the fair value of derivatives designated as cash flow hedges on accumulated other comprehensive income (loss) and net income during the year ended December 31, 2021, December 31, 2020, and December 31, 2019 (in millions): Recognized in Net Income For the Year Ended December 31, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2021 Foreign exchange contracts $ (57) Net sales $ 2 Cost of goods sold (11) Other, net (4) Interest expense, net 3 Interest rate contracts 49 Total $ (8) $ (10) 2020 Foreign exchange contracts $ 96 Net sales $ (7) Cost of goods sold 31 Other, net 6 Interest expense, net (5) Interest rate contracts (14) Total $ 82 $ 25 2019 Foreign exchange contracts $ (113) Net sales $ — Cost of goods sold (69) Other, net (16) Interest expense, net (8) Interest rate contracts (22) Total $ (135) $ (93) Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in December 31, 2021 and 2020 consisted of the following: Amount Reclassified from Other Comprehensive Income (Loss) Consolidated Statement of Operations line 2021 2020 (in millions) Cash flow hedges $ (2) $ 7 Net sales 11 (31) Cost of goods sold 4 (6) Other, net (3) 5 Interest expense (1) (1) Income taxes $ 9 $ (26) Change in retirement plans’ funded status: Amortization of actuarial losses $ 41 $ 47 * Amortization of prior service cost (136) (130) * (13) (63) Income taxes $ (108) $ (146) Total reclassifications, net of tax $ (99) $ (172) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of reconciliation of profit under US GAAP | The following table includes the reconciliation of Adjusted EBIT for Industrial Activities to net income, the most comparable U.S. GAAP financial measure, for the years ended December 31, 2021, 2020, and 2019. Years Ended December 31, 2021 2020 2019 (in millions) Agriculture $ 1,810 $ 880 $ 897 Construction 90 (184) 51 Commercial and Specialty Vehicles 282 (109) 224 Powertrain 256 233 363 Unallocated items, eliminations, and other (324) (268) (145) Total Adjusted EBIT of Industrial Activities 2,114 552 1,390 Financial Services Net Income 420 249 361 Financial Services Income Taxes 125 83 120 Interest expense of Industrial Activities, net of interest income and eliminations (235) (244) (282) Foreign exchange (gains) losses, net of Industrial Activities (51) (45) (56) Finance and non-service component of Pension and other post-employment benefit costs of Industrial Activities (1) 141 (14) (58) Restructuring expenses of Industrial Activities (74) (49) (105) Goodwill impairment charge — (585) — Other discrete items of Industrial Activities (2) (200) (569) (187) Nikola investment fair value adjustment (138) 134 — Income (loss) before taxes 2,102 (488) 1,183 Income tax benefit (expense) (342) 50 271 Net Income (loss) $ 1,760 $ (438) $ 1,454 (1) In the years ended December 31, 2021, 2020, and 2019 this item includes the pre-tax gain of $119 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from 2018 modification of a healthcare plan in the U.S. occurred in the fourth quarter. In the year ended December 31, 2021, this item also includes a pre-tax gain of $5 million as a result of the amortization over 4 years of the $101 million positive impact from 2021 modifications of a healthcare plan in the U.S. which occurred in the fourth quarter of 2021. In the years ended December 31, 2020 and 2019, this item also included a pre-tax non-cash settlement charge of $124 million and $112 million, respectively, resulting from the purchase of annuity contracts to settle a portion of the outstanding U.S. pension obligations. |
Schedule of profit by reportable segment | The following table provides key segment information for the Financial Services segment: Years Ended December 31, 2021 2020 2019 (in millions) Financial Services Net Income $ 420 $ 249 $ 361 Financial Services Interest Revenue (1) $ 1,079 $ 1,123 $ 1,248 Financial Services Interest Expense $ 425 $ 510 $ 597 (1) This amount excludes interest included in operating leases rentals. |
Summary of operating segment information | A summary of additional operating segment information as of and for the years ended December 31, 2021, 2020, and 2019 is as follows: Years Ended December 31, 2021 2020 2019 (in millions) Revenues: Agriculture $ 14,721 $ 10,923 $ 10,959 Construction 3,081 2,170 2,768 Commercial and Specialty Vehicles 12,160 9,421 10,439 Powertrain 4,419 3,629 4,117 Eliminations and other (2,759) (1,858) (2,134) Net sales of Industrial Activities 31,622 24,285 26,149 Financial Services 1,870 1,823 2,011 Eliminations and other (64) (76) (81) Total Revenues $ 33,428 $ 26,032 $ 28,079 Depreciation and Amortization (*): Agriculture $ 254 $ 248 $ 281 Construction 38 46 55 Commercial and Specialty Vehicles 196 211 195 Powertrain 119 120 124 Other activities and adjustments 1 2 2 Depreciation and amortization of Industrial Activities 608 627 657 Financial Services 3 3 3 Depreciation and amortization $ 611 $ 630 $ 660 Expenditures for long-lived assets (**): Agriculture $ 307 $ 185 $ 232 Construction 53 42 46 Commercial and Specialty Vehicles 218 160 258 Powertrain 128 92 96 Other activities — 2 1 Expenditures for long-lived assets of Industrial Activities 706 481 633 Financial Services 8 3 4 Expenditures for long-lived assets $ 714 $ 484 $ 637 (*) Excluding assets sold with buy-back commitments and equipment on operating leases (**) Excluding assets sold with buy-back commitments, equipment on operating leases and right of use assets |
Summary of net revenue | The following tables summarize previously reported revenues for the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 (in millions) Agriculture $ 14,721 $ 10,923 $ 10,959 Construction 3,081 2,170 2,768 Commercial and Specialty Vehicles 12,160 9,421 10,439 Powertrain 4,419 3,629 4,117 Eliminations and Other (2,759) (1,858) (2,134) Total Industrial Activities 31,622 24,285 26,149 Financial Services 1,870 1,823 2,011 Eliminations and Other (64) (76) (81) Total Revenues $ 33,428 $ 26,032 $ 28,079 2021 2020 2019 (in millions) United States $ 6,600 $ 5,191 $ 5,610 Italy 3,261 2,673 3,253 France 3,344 2,840 3,030 Brazil 3,164 1,937 2,105 Germany 2,148 1,765 1,875 Canada 1,373 941 1,087 Australia 1,074 824 739 Spain 1,036 751 987 Argentina 791 522 509 Poland 845 576 604 Other 8,759 7,235 7,392 Total Revenues from external customers in the rest of world $ 32,395 $ 25,255 $ 27,191 |
Schedule of long-lived assets by geographical area | The following highlights long-lived tangible and intangible assets by geography in the rest of the world: At December 31, 2021 2020 (in millions) United States $ 5,807 $ 4,110 Italy 1,503 1,444 France 685 738 Germany 587 601 Spain 615 717 Canada 568 149 Brazil 203 217 China 141 571 Other 861 899 Total Long-lived assets in the rest of the world $ 10,970 $ 9,446 |
Related Party Information (Tabl
Related Party Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | These transactions with Stellantis are reflected in the Company’s consolidated financial statements as follows: 2021 2020 2019 (in millions) Net sales $ 415 $ 599 $ 719 Cost of goods sold $ 269 $ 212 $ 319 Selling, general and administrative expenses $ 138 $ 127 $ 147 December 31, 2021 December 31, 2020 (in millions) Trade receivables $ 4 $ 8 Trade payables $ 72 $ 85 2021 2020 2019 (in millions) Net sales $ 1,097 $ 1,076 $ 911 Cost of goods sold $ 518 $ 412 $ 514 December 31, 2021 December 31, 2020 (in millions) Trade receivables $ 16 $ 170 Trade payables $ 129 $ 98 |
Nature of Operations - Addition
Nature of Operations - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of segments (in segments) | 5 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | Nov. 30, 2021USD ($)division$ / shares | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 30, 2021USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Business combination, assets and liabilities Arising from contingencies, amount recognized, net | $ 1,300,000,000 | ||||
Business combination, recognized identifiable assets acquired and liabilities assumed, goodwill and intangible assets | $ 500,000,000 | $ 51,000,000 | |||
Delinquent period in which recognition of income on loans is suspended | 90 days | ||||
Minimum period of delinquency reported on receivables past due date | 30 days | ||||
Advertising expense | $ 162,000,000 | $ 121,000,000 | $ 167,000,000 | ||
Foreign currency transaction loss | 129,000,000 | 11,000,000 | 155,000,000 | ||
Net loss realized on foreign currency | 60,000,000 | 57,000,000 | 80,000,000 | ||
CNH paid interest | 581,000,000 | 667,000,000 | 762,000,000 | ||
Loss on repurchase of notes | 8,000,000 | 0 | 27,000,000 | ||
CNH paid taxes | 457,000,000 | 159,000,000 | 208,000,000 | ||
Other non-cash items | 323,000,000 | 570,000,000 | 209,000,000 | ||
Writedowns of buyback commitments | 47,000,000 | 162,000,000 | |||
Writedowns of financial assets | 45,000,000 | 152,000,000 | |||
Tangible and intangible asset writedowns | 259,000,000 | ||||
Gain (loss) at the time of securitization | 0 | ||||
Impairment of goodwill and other intangible assets | 0 | 0 | |||
Other Assets | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Assets held-for-sale, Long Lived, Fair Value Disclosure | 500,000,000 | ||||
Other Liabilities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Assets held-for-sale, Long Lived, Fair Value Disclosure | 100,000,000 | ||||
Raven Industries, Inc. | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Percentage of capital stock acquired | 100.00% | ||||
Share price of capital stock in acquisition (in dollars per share) | $ / shares | $ 58 | ||||
Consideration transferred in acquisition | $ 2,100,000,000 | ||||
Number of business divisions acquired | division | 3 | ||||
Payments to acquire businesses, gross | 2,100,000,000 | ||||
Sampierana S.p.A | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Percentage of capital stock acquired | 90.00% | ||||
Nikola Corporation | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Gain on remeasurement | $ 138,000,000 | 134,000,000 | |||
Minimum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Intangible asset useful life | 5 years | ||||
Maximum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Intangible asset useful life | 25 years | ||||
Case New Holland Industrial Inc. (formerly Case New Holland Inc.) | 7.875% Notes | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loss on repurchase of notes | $ 8,000,000 | 0 | 27,000,000 | ||
Argentina | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Foreign currency transaction loss | $ 47,000,000 | $ 56,000,000 | $ 71,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives of Respective Assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | Buildings and improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Minimum | Plant, machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Minimum | Other equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Maximum | Buildings and improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Maximum | Plant, machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 25 years |
Maximum | Other equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Revenue - Summary of Net Revenu
Revenue - Summary of Net Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenues from sales of goods and services | $ 31,622 | $ 24,285 | $ 26,149 |
Total Revenues | 33,428 | 26,032 | 28,079 |
Industrial Activities | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from sales of goods and services | 31,622 | 24,285 | 26,149 |
Industrial Activities | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from sales of goods and services | 31,622 | 24,285 | 26,149 |
Industrial Activities | Operating Segments | Agriculture | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from sales of goods and services | 14,721 | 10,923 | 10,959 |
Industrial Activities | Operating Segments | Construction | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from sales of goods and services | 3,081 | 2,170 | 2,768 |
Industrial Activities | Operating Segments | Commercial and Specialty Vehicles | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from sales of goods and services | 12,160 | 9,421 | 10,439 |
Industrial Activities | Operating Segments | Powertrain | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from sales of goods and services | 4,419 | 3,629 | 4,117 |
Industrial Activities | Eliminations and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from sales of goods and services | (2,759) | (1,858) | (2,134) |
Financial Services | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | 1,870 | 1,823 | 2,011 |
Financial Services | Eliminations and Other | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ (64) | $ (76) | $ (81) |
Revenue - Disaggregation of Net
Revenue - Disaggregation of Net Revenues by Major Source (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from: | |||
Revenues from sales of goods and services | $ 31,622 | $ 24,285 | $ 26,149 |
Finance and interest income | 986 | 988 | 1,164 |
Rents and other income on operating lease | 820 | 759 | 766 |
Finance, interest and other income | 1,806 | 1,747 | 1,930 |
Total Revenues | 33,428 | 26,032 | 28,079 |
Sales of goods | |||
Revenues from: | |||
Revenues from sales of goods and services | 30,613 | 23,333 | 25,103 |
Rendering of services and other revenues | |||
Revenues from: | |||
Revenues from sales of goods and services | 688 | 637 | 660 |
Rents on assets sold with a buy-back commitment | |||
Revenues from: | |||
Revenues from sales of goods and services | $ 321 | $ 315 | $ 386 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Contract liabilities | $ 1,458 | $ 1,381 | $ 1,236 |
Revenues relating to contract liabilities outstanding | $ 473 | $ 463 | $ 508 |
Revenue - Performance Obligatio
Revenue - Performance Obligation (Details) - USD ($) $ in Billions | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligation | $ 2.8 | $ 2.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of revenue recognized on remaining performance obligation | 32.00% | |
Revenue over the remaining lives of the contracts | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of revenue recognized on remaining performance obligation | 29.00% | |
Revenue over the remaining lives of the contracts | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of revenue recognized on remaining performance obligation | 77.00% | |
Revenue over the remaining lives of the contracts | 36 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of revenue recognized on remaining performance obligation | 73.00% | |
Revenue over the remaining lives of the contracts | 36 months |
Receivables - Additional Inform
Receivables - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)contractaccount | Dec. 31, 2020USD ($)accountcontract | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade receivables | $ 357 | $ 506 | |
Allowances for doubtful accounts | $ 69 | 62 | |
Wholesale receivables interest free period | 12 months | ||
Wholesale receivables stated original maturities | 24 months | ||
Significant losses | $ 0 | $ 0 | $ 0 |
North America | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance lease receivable, contracts classified as TDRs (in contracts) | contract | 173 | 253 | |
Finance lease receivable, pre-modification value | $ 4 | ||
Finance lease receivable, post-modification value | $ 4 | ||
Number of accounts bankruptcy proceedings with no concession (in accounts) | account | 332 | 362 | |
Bankruptcy proceeding amount concession not yet determined | $ 22 | $ 26 | |
Pre-modification value of retail and finance lease receivable contracts | 9 | ||
Post-modification value of retail and finance lease receivable contracts | 8 | ||
Europe | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Pre-modification value of retail and finance lease receivable contracts | 76 | 99 | |
Post-modification value of retail and finance lease receivable contracts | $ 69 | $ 91 | |
Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance leases, term | 2 years | ||
Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance leases, term | 6 years |
Receivables - Summary of Accoun
Receivables - Summary of Accounts and Notes Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | $ 18,662 | $ 18,457 |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | 10,023 | 9,257 |
Wholesale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | 8,550 | 9,127 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | $ 89 | $ 73 |
Receivables - Maturities of Fin
Receivables - Maturities of Financing Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
2022 | $ 11,243 | |
2023 | 2,616 | |
2024 | 1,991 | |
2025 | 1,517 | |
2026 | 884 | |
2027 and thereafter | 411 | |
Financing receivables, net | $ 18,662 | $ 18,457 |
Receivables - Summary of Aging
Receivables - Summary of Aging of Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 10,023 | $ 9,257 |
Retail | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 10,015 | 9,238 |
Retail | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 8 | 19 |
Retail | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 3,159 | 2,619 |
Fiscal year before current fiscal year | 1,689 | 1,572 |
Two years before current fiscal year | 902 | 1,034 |
Three years before current fiscal year | 531 | 544 |
Four years before current fiscal year | 229 | 263 |
Prior | 73 | 81 |
Total | 6,583 | 6,113 |
Retail | North America | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 3,159 | 2,619 |
Fiscal year before current fiscal year | 1,688 | 1,571 |
Two years before current fiscal year | 901 | 1,033 |
Three years before current fiscal year | 531 | 543 |
Four years before current fiscal year | 229 | 262 |
Prior | 73 | 81 |
Total | 6,581 | 6,109 |
Retail | North America | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 1 | 1 |
Two years before current fiscal year | 1 | 1 |
Three years before current fiscal year | 0 | 1 |
Four years before current fiscal year | 0 | 1 |
Prior | 0 | 0 |
Total | 2 | 4 |
Retail | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 881 | 793 |
Fiscal year before current fiscal year | 524 | 451 |
Two years before current fiscal year | 295 | 303 |
Three years before current fiscal year | 190 | 175 |
Four years before current fiscal year | 105 | 87 |
Prior | 72 | 72 |
Total | 2,067 | 1,881 |
Retail | South America | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 881 | 792 |
Fiscal year before current fiscal year | 524 | 448 |
Two years before current fiscal year | 295 | 299 |
Three years before current fiscal year | 190 | 173 |
Four years before current fiscal year | 105 | 86 |
Prior | 72 | 71 |
Total | 2,067 | 1,869 |
Retail | South America | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 0 | 1 |
Fiscal year before current fiscal year | 0 | 3 |
Two years before current fiscal year | 0 | 4 |
Three years before current fiscal year | 0 | 2 |
Four years before current fiscal year | 0 | 1 |
Prior | 0 | 1 |
Total | 0 | 12 |
Retail | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 598 | 544 |
Fiscal year before current fiscal year | 374 | 271 |
Two years before current fiscal year | 175 | 196 |
Three years before current fiscal year | 104 | 118 |
Four years before current fiscal year | 47 | 39 |
Prior | 5 | 2 |
Total | 1,303 | 1,170 |
Retail | Rest of World | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 598 | 544 |
Fiscal year before current fiscal year | 370 | 270 |
Two years before current fiscal year | 174 | 195 |
Three years before current fiscal year | 103 | 117 |
Four years before current fiscal year | 47 | 39 |
Prior | 5 | 2 |
Total | 1,297 | 1,167 |
Retail | Rest of World | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 4 | 1 |
Two years before current fiscal year | 1 | 1 |
Three years before current fiscal year | 1 | 1 |
Four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Total | 6 | 3 |
Retail | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 70 | 93 |
Retail | Europe | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 70 | 93 |
Retail | Europe | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Retail | 31-60 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 28 | 40 |
Retail | 31-60 Days Past Due | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 13 | 29 |
Retail | 31-60 Days Past Due | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 1 | 4 |
Retail | 31-60 Days Past Due | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 14 | 7 |
Retail | 31-60 Days Past Due | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Retail | 61-90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 8 | 5 |
Retail | 61-90 Days Past Due | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Retail | 61-90 Days Past Due | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 1 |
Retail | 61-90 Days Past Due | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 8 | 4 |
Retail | 61-90 Days Past Due | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Retail | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 36 | 45 |
Retail | Total Past Due | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 13 | 29 |
Retail | Total Past Due | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 1 | 5 |
Retail | Total Past Due | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 22 | 11 |
Retail | Total Past Due | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Retail | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 9,979 | 9,193 |
Retail | Current | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 6,568 | 6,080 |
Retail | Current | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2,066 | 1,864 |
Retail | Current | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 1,275 | 1,156 |
Retail | Current | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 70 | 93 |
Wholesale | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 8,550 | 9,127 |
Wholesale | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 8,528 | 9,054 |
Wholesale | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 22 | 73 |
Wholesale | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2,339 | 2,753 |
Wholesale | North America | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2,339 | 2,722 |
Wholesale | North America | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 31 |
Wholesale | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 655 | 579 |
Wholesale | South America | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 633 | 537 |
Wholesale | South America | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 22 | 42 |
Wholesale | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 519 | 545 |
Wholesale | Rest of World | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 519 | 545 |
Wholesale | Rest of World | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Wholesale | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 5,037 | 5,250 |
Wholesale | Europe | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 5,037 | 5,250 |
Wholesale | Europe | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Wholesale | 31-60 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2 | 3 |
Wholesale | 31-60 Days Past Due | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Wholesale | 31-60 Days Past Due | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Wholesale | 31-60 Days Past Due | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2 | 3 |
Wholesale | 31-60 Days Past Due | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Wholesale | 61-90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Wholesale | 61-90 Days Past Due | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Wholesale | 61-90 Days Past Due | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Wholesale | 61-90 Days Past Due | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Wholesale | 61-90 Days Past Due | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Wholesale | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2 | 3 |
Wholesale | Total Past Due | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Wholesale | Total Past Due | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Wholesale | Total Past Due | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2 | 3 |
Wholesale | Total Past Due | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Wholesale | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 8,526 | 9,051 |
Wholesale | Current | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2,339 | 2,722 |
Wholesale | Current | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 633 | 537 |
Wholesale | Current | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 517 | 542 |
Wholesale | Current | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 5,037 | $ 5,250 |
Receivables - Allowance for Cre
Receivables - Allowance for Credit Losses Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retail | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Opening balance | $ 381 | $ 299 | $ 326 |
Provision | 21 | 113 | 44 |
Charge-offs, net of recoveries | (47) | (56) | (51) |
Foreign currency translation and other | (22) | (10) | (20) |
Ending balance | 333 | 381 | 299 |
Wholesale | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Opening balance | 174 | 159 | 164 |
Provision | 17 | 27 | 12 |
Charge-offs, net of recoveries | (10) | (14) | (18) |
Foreign currency translation and other | (6) | 11 | 1 |
Ending balance | $ 175 | 174 | 159 |
Adoption of ASC 326 | Retail | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Opening balance | 35 | ||
Ending balance | 35 | ||
Adoption of ASC 326 | Wholesale | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Opening balance | (9) | ||
Ending balance | (9) | ||
Balance, January 1, 2020, as recast | Retail | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Opening balance | 334 | ||
Ending balance | 334 | ||
Balance, January 1, 2020, as recast | Wholesale | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Opening balance | $ 150 | ||
Ending balance | $ 150 |
Receivables - Carrying Amount o
Receivables - Carrying Amount of Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total | $ 12,540 | $ 13,235 |
Retail note and finance lease receivables | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total | 6,916 | 6,224 |
Wholesale | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total | $ 5,624 | $ 7,011 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,177 | $ 1,525 |
Work-in-process | 1,084 | 622 |
Finished goods | 3,960 | 3,875 |
Total Inventories | $ 7,221 | $ 6,022 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 15,508 | $ 16,295 |
Accumulated depreciation | (10,812) | (11,372) |
Net property, plant and equipment | 4,696 | 4,923 |
Land and industrial buildings | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 3,305 | 3,428 |
Plant, machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 8,994 | 9,268 |
Assets sold with buy-back commitment | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 2,235 | 2,640 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 196 | 149 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 778 | $ 810 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 751 | $ 801 | $ 853 | |
Property, plant and equipment, losses | $ 163 | 163 | ||
Writedowns of buyback commitments | 47 | 162 | ||
Impairment losses on assets sold with a buy-back commitment | 259 | |||
Acquisition of property, plant and equipment | 156 | 126 | ||
Agriculture | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, losses | 111 | 111 | ||
Construction | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, losses | 45 | 45 | ||
Writedowns of buyback commitments | 282 | |||
Commercial and Specialty Vehicles | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, losses | $ 7 | 7 | ||
Property, Plant and Equipment, Excluding Assets Sold Under a Buy-Back Commitment | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | 491 | 524 | 548 | |
Assets sold with buy-back commitment | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment losses on assets sold with a buy-back commitment | $ 33 | $ 144 | $ 86 |
Investments in Unconsolidated_3
Investments in Unconsolidated Subsidiaries and Affiliates - Summary of Investments in Unconsolidated Subsidiaries and Affiliates (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Equity method | $ 630 | $ 514 |
Cost method | 62 | 15 |
Total | $ 692 | $ 529 |
Investments in Unconsolidated_4
Investments in Unconsolidated Subsidiaries and Affiliates - Summary of Combined Results of Operations and Financial Position Reported By Investees Accounted Using Equity Method (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||
Net revenue | $ 31,622 | $ 24,285 | $ 26,149 | |
Net income | 1,760 | (438) | 1,454 | |
Statement of Financial Position [Abstract] | ||||
Total Assets | 49,416 | 48,719 | ||
Total Liabilities | 42,563 | 43,690 | ||
Total Equity | 6,808 | 4,989 | 6,121 | $ 5,068 |
Unconsolidated Subsidiaries and Affiliates | ||||
Income Statement [Abstract] | ||||
Net revenue | 2,468 | 2,716 | 2,480 | |
Income before taxes | 354 | 133 | 71 | |
Net income | 273 | 50 | $ 29 | |
Statement of Financial Position [Abstract] | ||||
Total Assets | 8,141 | 8,529 | ||
Total Liabilities | 6,880 | 7,449 | ||
Total Equity | $ 1,261 | $ 1,080 |
Investments in Unconsolidated_5
Investments in Unconsolidated Subsidiaries and Affiliates - Additional Information (Details) | Dec. 31, 2021 |
Al Ghazi Tractors Ltd. | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investment, ownership percentage | 43.20% |
Turk Traktor re Ziraat Makineteri A.S. | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investment, ownership percentage | 37.50% |
New Holland HFT Japan Inc. | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investment, ownership percentage | 50.00% |
CNH de Mexico S.A. de C.V. | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investment, ownership percentage | 50.00% |
CNH Industrial Capital Europe S.A.S. | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investment, ownership percentage | 49.90% |
SAIC Iveco Commercial Vehicle Investment Company Limited | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investment, ownership percentage | 50.00% |
Transolver Finance Establecimiento Financiero de Credito S.A. | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investment, ownership percentage | 49.00% |
Nikola Inveco Europe GmbH | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investment, ownership percentage | 50.00% |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Short-term lease expenses | $ 11 | $ 16 | |
Operating lease expenses | 155 | 148 | |
Right-of-use asset | 416 | 454 | |
Operating lease liabilities | $ 417 | $ 453 | |
Other assets | Other assets | Other assets | |
Other liabilities | Other liabilities | Other liabilities | |
Weighted average remaining lease term | 6 years | 6 years 7 months 6 days | |
Weighted average discount rate | 2.90% | 3.00% | |
Leased assets obtained in exchange for operating lease obligations | $ 116 | $ 131 | |
Operating cash outflow for amounts included in the measurement of operating lease obligations | 155 | 148 | |
Depreciation expense on equipment operating leases | $ 277 | $ 266 | $ 250 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 3 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 5 years |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Operating Leases (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Lease Liabilities, Payments Due [Abstract] | ||
2021 | $ 130 | |
2022 | 87 | |
2023 | 63 | |
2024 | 51 | |
2025 | 37 | |
2026 and thereafter | 87 | |
Total future minimum lease payments | 455 | |
Less: Interest | 38 | |
Operating lease liabilities | $ 417 | $ 453 |
Leases - Summary of Equipment o
Leases - Summary of Equipment on Operating Leases (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Equipment on operating leases | $ 2,295 | $ 2,442 |
Accumulated depreciation | (492) | (464) |
Net equipment on operating leases | $ 1,803 | $ 1,978 |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Lease Payments to be Received (Details) $ in Millions | Dec. 31, 2021USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |
2021 | $ 245 |
2022 | 159 |
2023 | 86 |
2024 | 34 |
2025 | 10 |
2026 and thereafter | 0 |
Total undiscounted lease payments | $ 534 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | |||
Balance at beginning | $ 1,924 | $ 2,538 | |
Foreign currency translation and other | (10) | (29) | |
Goodwill impairment charge | 0 | (585) | $ 0 |
Acquisitions | 1,377 | ||
Balance at ending | 3,291 | 1,924 | 2,538 |
Agriculture | |||
Goodwill [Roll Forward] | |||
Balance at beginning | 1,695 | 1,732 | |
Foreign currency translation and other | (1) | (37) | |
Goodwill impairment charge | 0 | ||
Acquisitions | 1,326 | ||
Balance at ending | 3,020 | 1,695 | 1,732 |
Construction | |||
Goodwill [Roll Forward] | |||
Balance at beginning | 0 | 587 | |
Foreign currency translation and other | (2) | (2) | |
Goodwill impairment charge | (585) | ||
Acquisitions | 51 | ||
Balance at ending | 49 | 0 | 587 |
Commercial and Specialty Vehicles | |||
Goodwill [Roll Forward] | |||
Balance at beginning | 65 | 59 | |
Foreign currency translation and other | (5) | 6 | |
Goodwill impairment charge | 0 | ||
Acquisitions | 0 | ||
Balance at ending | 60 | 65 | 59 |
Powertrain | |||
Goodwill [Roll Forward] | |||
Balance at beginning | 7 | 5 | |
Foreign currency translation and other | (1) | 2 | |
Goodwill impairment charge | 0 | ||
Acquisitions | 0 | ||
Balance at ending | 6 | 7 | 5 |
Financial Services | |||
Goodwill [Roll Forward] | |||
Balance at beginning | 157 | 155 | |
Foreign currency translation and other | (1) | 2 | |
Goodwill impairment charge | 0 | ||
Acquisitions | 0 | ||
Balance at ending | $ 156 | $ 157 | $ 155 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||||
Goodwill impairment charge | $ 0 | $ 585 | $ 0 | |
Intangible assets, current | $ 500 | 500 | ||
Other intangible asset impairment charges | 0 | |||
Amortization expense | 120 | 105 | $ 112 | |
Estimated amortization expense next year | 114 | 114 | ||
Estimated amortization expense in two years | 99 | 99 | ||
Estimated amortization expense in three years | 80 | 80 | ||
Estimated amortization expense in four years | 58 | 58 | ||
Estimated amortization expense in five years | 43 | $ 43 | ||
Dealer Networks | ||||
Goodwill [Line Items] | ||||
Other intangible asset impairment charges | 27 | |||
Agriculture | ||||
Goodwill [Line Items] | ||||
Goodwill, period increase | 1,300 | |||
Goodwill impairment charge | 0 | |||
Other intangible asset impairment charges | 65 | |||
Construction | ||||
Goodwill [Line Items] | ||||
Goodwill, period increase | $ 51 | |||
Goodwill impairment charge | 585 | |||
Other Reporting Units | ||||
Goodwill [Line Items] | ||||
Goodwill impairment charge | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Other Intangible Assets and Related Accumulated Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, gross | $ 3,028 | $ 2,418 |
Other intangible assets subject to amortization, accumulated amortization | 1,952 | 1,919 |
Other intangible assets subject to amortization, net | 1,076 | 499 |
Total other intangible assets, gross | 3,300 | 2,691 |
Other intangible assets not subject to amortization | 1,952 | 1,919 |
Total other intangible assets, net | $ 1,348 | 772 |
Minimum | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, weighted average life | 5 years | |
Maximum | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, weighted average life | 25 years | |
Trademarks | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Total other intangible assets, gross | $ 272 | 273 |
Total other intangible assets, net | $ 272 | 273 |
Dealer networks | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, weighted average life | 15 years | |
Other intangible assets subject to amortization, gross | $ 310 | 311 |
Other intangible assets subject to amortization, accumulated amortization | 249 | 241 |
Other intangible assets subject to amortization, net | 61 | 70 |
Patents, concessions, licenses and other | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, gross | 2,718 | 2,107 |
Other intangible assets subject to amortization, accumulated amortization | 1,703 | 1,678 |
Other intangible assets subject to amortization, net | $ 1,015 | $ 429 |
Patents, concessions, licenses and other | Minimum | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, weighted average life | 5 years | |
Patents, concessions, licenses and other | Maximum | ||
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 (Details) € in Millions, $ in Millions, $ in Millions, $ in Millions | Mar. 31, 2019USD ($)extension | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Sep. 30, 2021AUD ($) | Sep. 30, 2021CAD ($) | Jul. 31, 2021AUD ($) | May 31, 2021USD ($) | Feb. 26, 2021EUR (€) | Dec. 31, 2020EUR (€) | Dec. 01, 2020EUR (€) | Oct. 06, 2020USD ($) | Aug. 31, 2020USD ($) | Jul. 02, 2020USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019AUD ($) | Jul. 31, 2019EUR (€) | Mar. 31, 2019EUR (€) | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Aug. 31, 2018USD ($) | Nov. 30, 2017USD ($) | Sep. 30, 2017EUR (€) | Apr. 30, 2017USD ($) | Mar. 31, 2017EUR (€) | Aug. 31, 2016USD ($) | May 31, 2016EUR (€) | Apr. 30, 2016EUR (€) | Nov. 30, 2015EUR (€) |
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Weighted-average interest rate on consolidated debt | 2.50% | 2.30% | 2.50% | ||||||||||||||||||||||||||
Other debt | $ | $ 1,200 | $ 1,100 | |||||||||||||||||||||||||||
CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument principal amount of issue price percentage | 98.944% | 98.944% | |||||||||||||||||||||||||||
3.500% Notes Due November 2025 | Global Medium Term Note Programme | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument borrowing capacity amount | € 10,000 | ||||||||||||||||||||||||||||
3.500% Notes Due November 2025 | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) | Global Medium Term Note Programme | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | € 100 | ||||||||||||||||||||||||||||
Bonds, interest rate | 3.50% | ||||||||||||||||||||||||||||
3.875% Noted Due April 2028 | Global Medium Term Note Programme | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument borrowing capacity amount | € 10,000 | ||||||||||||||||||||||||||||
3.875% Noted Due April 2028 | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) | Global Medium Term Note Programme | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | € 50 | ||||||||||||||||||||||||||||
Bonds, interest rate | 3.875% | ||||||||||||||||||||||||||||
2.875% Notes Due May 2023 | Global Medium Term Note Programme | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument principal amount of issue price percentage | 99.221% | ||||||||||||||||||||||||||||
Debt instrument borrowing capacity amount | € 10,000 | ||||||||||||||||||||||||||||
2.875% Notes Due May 2023 | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) | Global Medium Term Note Programme | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | € 500 | ||||||||||||||||||||||||||||
Bonds, interest rate | 2.875% | 2.875% | 2.875% | ||||||||||||||||||||||||||
Debt repurchase amount | € 131 | ||||||||||||||||||||||||||||
4.500% Note Due August 2023 | C H N Industrial N V | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | $ | $ 600 | ||||||||||||||||||||||||||||
Bonds, interest rate | 4.50% | ||||||||||||||||||||||||||||
1.625% Notes Due March 2022 | Global Medium Term Note Programme | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument principal amount of issue price percentage | 99.407% | ||||||||||||||||||||||||||||
Debt instrument borrowing capacity amount | € 10,000 | ||||||||||||||||||||||||||||
1.625% Notes Due March 2022 | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) | Global Medium Term Note Programme | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | € 75 | ||||||||||||||||||||||||||||
Bonds, interest rate | 1.625% | ||||||||||||||||||||||||||||
4.375% Notes Due April 2022 | CNH Industrial Capital LLC | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | $ | $ 500 | ||||||||||||||||||||||||||||
Bonds, interest rate | 4.375% | ||||||||||||||||||||||||||||
4.375% Notes Due April 2022 | CNH Industrial Capital LLC | Financial Services | Total Bonds | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Bonds, interest rate | 4.375% | ||||||||||||||||||||||||||||
1.750% Notes Due September 2025 | Global Medium Term Note Programme | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument principal amount of issue price percentage | 99.248% | ||||||||||||||||||||||||||||
Debt instrument borrowing capacity amount | € 10,000 | ||||||||||||||||||||||||||||
1.750% Notes Due September 2025 | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) | Global Medium Term Note Programme | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | € 650 | ||||||||||||||||||||||||||||
Bonds, interest rate | 1.75% | ||||||||||||||||||||||||||||
3.850% Notes Due November 2027 | C H N Industrial N V | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | $ | $ 500 | ||||||||||||||||||||||||||||
Bonds, interest rate | 3.85% | ||||||||||||||||||||||||||||
Debt instrument principal amount of issue price percentage | 99.384% | ||||||||||||||||||||||||||||
4.200% Notes Due January 2024 | CNH Industrial Capital LLC | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | $ | $ 500 | ||||||||||||||||||||||||||||
Bonds, interest rate | 4.20% | ||||||||||||||||||||||||||||
Debt instrument principal amount of issue price percentage | 99.701% | ||||||||||||||||||||||||||||
4.200% Notes Due January 2024 | CNH Industrial Capital LLC | Financial Services | Total Bonds | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Bonds, interest rate | 4.20% | ||||||||||||||||||||||||||||
1.875% Notes Due January 2026 | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | $ | $ 500 | ||||||||||||||||||||||||||||
Bonds, interest rate | 1.875% | 1.875% | |||||||||||||||||||||||||||
Debt instrument borrowing capacity amount | € 10,000 | ||||||||||||||||||||||||||||
1.875% Notes Due January 2026 | CNH Industrial Capital LLC | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | $ | $ 500 | ||||||||||||||||||||||||||||
Bonds, interest rate | 1.875% | ||||||||||||||||||||||||||||
Debt instrument principal amount of issue price percentage | 99.761% | ||||||||||||||||||||||||||||
1.875% Notes Due January 2026 | CNH Industrial Capital LLC | Financial Services | Total Bonds | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Bonds, interest rate | 1.875% | ||||||||||||||||||||||||||||
1.750% Bonds Due March 2027 | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) | Global Medium Term Note Programme | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | € 600 | ||||||||||||||||||||||||||||
Bonds, interest rate | 1.75% | 1.75% | 1.75% | ||||||||||||||||||||||||||
Debt instrument principal amount of issue price percentage | 98.597% | 98.597% | 98.597% | ||||||||||||||||||||||||||
Debt instrument borrowing capacity amount | € 10,000 | ||||||||||||||||||||||||||||
1.625% Bonds Due July 2029 | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) | Global Medium Term Note Programme | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | € 500 | ||||||||||||||||||||||||||||
Bonds, interest rate | 1.625% | ||||||||||||||||||||||||||||
Debt instrument principal amount of issue price percentage | 98.926% | ||||||||||||||||||||||||||||
Debt instrument borrowing capacity amount | € 10,000 | ||||||||||||||||||||||||||||
2.200% Bonds Due July 2039 | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) | Global Medium Term Note Programme | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | € 50 | ||||||||||||||||||||||||||||
Bonds, interest rate | 2.20% | ||||||||||||||||||||||||||||
Debt instrument principal amount of issue price percentage | 98.285% | ||||||||||||||||||||||||||||
Debt instrument borrowing capacity amount | € 10,000 | ||||||||||||||||||||||||||||
2.100% Bonds Due December 2022 | CNH Industrial Capital Australia Pty. Limited | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | $ | $ 175 | ||||||||||||||||||||||||||||
Bonds, interest rate | 2.10% | 2.10% | |||||||||||||||||||||||||||
Debt instrument principal amount of issue price percentage | 99.899% | 99.899% | |||||||||||||||||||||||||||
2.100% Bonds Due December 2022 | CNH Industrial Capital Australia Pty. Limited | Financial Services | Total Bonds | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Bonds, interest rate | 1.75% | ||||||||||||||||||||||||||||
1.950% Notes Due July 2023 | CNH Industrial Capital LLC | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | $ | $ 600 | ||||||||||||||||||||||||||||
Bonds, interest rate | 1.95% | ||||||||||||||||||||||||||||
Debt instrument principal amount of issue price percentage | 99.37% | ||||||||||||||||||||||||||||
1.950% Notes Due July 2023 | CNH Industrial Capital LLC | Financial Services | Total Bonds | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Bonds, interest rate | 1.95% | ||||||||||||||||||||||||||||
0.000% Notes Due August 2023 | CNH Industrial Capital Argentina SA | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | $ | $ 31 | ||||||||||||||||||||||||||||
0.000% Notes Due August 2023 | CNH Industrial Capital Argentina SA | Financial Services | Total Bonds | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Bonds, interest rate | 0.00% | ||||||||||||||||||||||||||||
0.000% Notes Due in 2024 | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | € 750 | ||||||||||||||||||||||||||||
Bonds, interest rate | 0.00% | ||||||||||||||||||||||||||||
Debt instrument principal amount of issue price percentage | 99.91% | ||||||||||||||||||||||||||||
0.000% Notes Due in 2024 | CNH Industrial Finance Europe S.A. (formerly Fiat Industrial Finance Europe S.A.) | Global Medium Term Note Programme | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt repurchase amount | € 10,000 | ||||||||||||||||||||||||||||
1.450% Notes Due in 2026 | CNH Industrial Capital LLC | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | $ | $ 600 | ||||||||||||||||||||||||||||
Bonds, interest rate | 1.45% | ||||||||||||||||||||||||||||
Debt instrument principal amount of issue price percentage | 99.208% | ||||||||||||||||||||||||||||
1.75% Notes Due in 2024, Note 1 | CNH Industrial Capital Australia Pty. Limited | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | $ | $ 200 | ||||||||||||||||||||||||||||
Bonds, interest rate | 1.75% | ||||||||||||||||||||||||||||
Debt instrument principal amount of issue price percentage | 99.863% | ||||||||||||||||||||||||||||
1.75% Notes Due in 2024, Note 2 | CNH Industrial Capital Australia Pty. Limited | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | $ | $ 50 | ||||||||||||||||||||||||||||
Bonds, interest rate | 1.75% | 1.75% | |||||||||||||||||||||||||||
Debt instrument principal amount of issue price percentage | 101.069% | 101.069% | |||||||||||||||||||||||||||
1.50% Notes Due in 2024 | CNH Industrial Capital Canada Ltd | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | $ | $ 300 | ||||||||||||||||||||||||||||
Bonds, interest rate | 1.50% | 1.50% | |||||||||||||||||||||||||||
Debt instrument principal amount of issue price percentage | 99.936% | 99.936% | |||||||||||||||||||||||||||
Revolving Credit Facility | 2024 Revolving Credit Facility | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Credit facility, term | 5 years | ||||||||||||||||||||||||||||
Revolving credit facility, amount | $ 4,500 | $ 4,500 | € 4,000 | ||||||||||||||||||||||||||
Number of years in each extension period | extension | 2 | ||||||||||||||||||||||||||||
Credit facility extension period (in years) | 1 year | ||||||||||||||||||||||||||||
Revolving Credit Facility | March 2026 Revolving Credit Facility | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | € 3,950.5 | ||||||||||||||||||||||||||||
Revolving Credit Facility | March 2025 Revolving Credit Facility | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, amount | € 49.5 | ||||||||||||||||||||||||||||
Revolving Credit Facility | New Credit Facility | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Credit facility, term | 5 years | ||||||||||||||||||||||||||||
Revolving credit facility, amount | € 1,750 | ||||||||||||||||||||||||||||
Asset-Backed Facilities | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Credit facility | $ | $ 3,900 | $ 3,900 | |||||||||||||||||||||||||||
Credit facility utilized amount | $ | 3,700 | 2,800 | |||||||||||||||||||||||||||
Financial Services | Unsecured Credit Facilities | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Credit facility | $ | $ 6,100 | $ 5,200 |
Debt - Summary of Issued Bond O
Debt - Summary of Issued Bond Outstanding (Details) € in Millions, $ in Millions, $ in Millions, $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021AUD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020USD ($) | Oct. 06, 2020 | Jul. 02, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2018 | Nov. 30, 2017 | Apr. 30, 2017 |
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 23,745 | $ 26,053 | ||||||||||
Industrial Activities | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | 6,163 | 8,288 | ||||||||||
Industrial Activities | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | 5,184 | |||||||||||
Hedging effects, bond premium/discount, and unamortized issuance costs | (43) | |||||||||||
Financial Services | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | 19,435 | $ 19,638 | ||||||||||
Financial Services | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | 3,280 | |||||||||||
Hedging effects, bond premium/discount, and unamortized issuance costs | 5 | |||||||||||
1.625% Notes Due March 2022 | CNH Industrial Finance Europe S.A. | Industrial Activities | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 85 | € 75 | ||||||||||
Coupon rate | 1.625% | 1.625% | 1.625% | 1.625% | ||||||||
2.875% Notes Due May 2023 | CNH Industrial Finance Europe S.A. | Industrial Activities | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 417 | € 369 | ||||||||||
Coupon rate | 2.875% | 2.875% | 2.875% | 2.875% | ||||||||
0.000% Notes Due April 2024 | CNH Industrial Finance Europe S.A. | Industrial Activities | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 850 | € 750 | ||||||||||
Coupon rate | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||
1.750% Notes Due September 2025 | CNH Industrial Finance Europe S.A. | Industrial Activities | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 736 | € 650 | ||||||||||
Coupon rate | 1.75% | 1.75% | 1.75% | 1.75% | ||||||||
3.500% Notes Due November 2025 | CNH Industrial Finance Europe S.A. | Industrial Activities | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 113 | € 100 | ||||||||||
Coupon rate | 3.50% | 3.50% | 3.50% | 3.50% | ||||||||
1.875% Notes Due January 2026 | CNH Industrial Finance Europe S.A. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Coupon rate | 1.875% | |||||||||||
1.875% Notes Due January 2026 | CNH Industrial Finance Europe S.A. | Industrial Activities | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 566 | € 500 | ||||||||||
Coupon rate | 1.875% | 1.875% | 1.875% | 1.875% | ||||||||
1.875% Notes Due January 2026 | CNH Industrial Capital LLC | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Coupon rate | 1.875% | |||||||||||
1.875% Notes Due January 2026 | CNH Industrial Capital LLC | Financial Services | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 500 | |||||||||||
Coupon rate | 1.875% | 1.875% | 1.875% | 1.875% | ||||||||
1.750% Bonds Due March 2027 | CNH Industrial Finance Europe S.A. | Industrial Activities | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 680 | € 600 | ||||||||||
Coupon rate | 1.75% | 1.75% | 1.75% | 1.75% | ||||||||
3.875% Notes Due April 2028 | CNH Industrial Finance Europe S.A. | Industrial Activities | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 57 | € 50 | ||||||||||
Coupon rate | 3.875% | 3.875% | 3.875% | 3.875% | ||||||||
1.625% Bonds Due July 2029 | CNH Industrial Finance Europe S.A. | Industrial Activities | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 566 | € 500 | ||||||||||
Coupon rate | 1.625% | 1.625% | 1.625% | 1.625% | ||||||||
2.200% Bonds Due July 2039 | CNH Industrial Finance Europe S.A. | Industrial Activities | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 57 | € 50 | ||||||||||
Coupon rate | 2.20% | 2.20% | 2.20% | 2.20% | ||||||||
4.500% Notes Due August 2023 | C H N Industrial N V | Industrial Activities | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 600 | |||||||||||
Coupon rate | 4.50% | 4.50% | 4.50% | 4.50% | ||||||||
3.850% Notes Due November 2027 | C H N Industrial N V | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Coupon rate | 3.85% | |||||||||||
3.850% Notes Due November 2027 | C H N Industrial N V | Industrial Activities | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 500 | |||||||||||
Coupon rate | 3.85% | 3.85% | 3.85% | 3.85% | ||||||||
4.375% Notes Due April 2022 | CNH Industrial Capital LLC | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Coupon rate | 4.375% | |||||||||||
4.375% Notes Due April 2022 | CNH Industrial Capital LLC | Financial Services | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 500 | |||||||||||
Coupon rate | 4.375% | 4.375% | 4.375% | 4.375% | ||||||||
2.011% Notes Due December 2022 | CNH Industrial Capital Australia Pty. Ltd. | Financial Services | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 127 | $ 175 | ||||||||||
Coupon rate | 2.10% | 2.10% | 2.10% | 2.10% | ||||||||
1.950% Notes Due July 2023 | CNH Industrial Capital LLC | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Coupon rate | 1.95% | |||||||||||
1.950% Notes Due July 2023 | CNH Industrial Capital LLC | Financial Services | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 600 | |||||||||||
Coupon rate | 1.95% | 1.95% | 1.95% | 1.95% | ||||||||
0.000% Notes Due August 2023 | CNH Industrial Capital Argentina SA | Financial Services | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 31 | |||||||||||
Coupon rate | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||
4.200% Notes Due January 2024 | CNH Industrial Capital LLC | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Coupon rate | 4.20% | |||||||||||
4.200% Notes Due January 2024 | CNH Industrial Capital LLC | Financial Services | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 500 | |||||||||||
Coupon rate | 4.20% | 4.20% | 4.20% | 4.20% | ||||||||
2.100% Bonds Due December 2022 | CNH Industrial Capital Australia Pty. Ltd. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Coupon rate | 2.10% | |||||||||||
2.100% Bonds Due December 2022 | CNH Industrial Capital Australia Pty. Ltd. | Financial Services | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 145 | $ 200 | ||||||||||
Coupon rate | 1.75% | 1.75% | 1.75% | 1.75% | ||||||||
1.750% Notes Due July 2024 | CNH Industrial Capital Australia Pty. Ltd. | Financial Services | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 36 | $ 50 | ||||||||||
Coupon rate | 1.75% | 1.75% | 1.75% | 1.75% | ||||||||
1.500% Notes Due October 2024 | CNH Industrial Capital Canada Ltd | Financial Services | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 236 | $ 300 | ||||||||||
Coupon rate | 1.50% | 1.50% | 1.50% | 1.50% | ||||||||
1.450% Notes Due July 2026 | CNH Industrial Capital LLC | Financial Services | Bonds | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt | $ 600 | |||||||||||
Coupon rate | 1.45% | 1.45% | 1.45% | 1.45% |
Debt - Summary of Total Debt (D
Debt - Summary of Total Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total Debt | $ 23,745 | $ 26,053 |
Total Bonds | ||
Debt Instrument [Line Items] | ||
Total Debt | 8,464 | 9,582 |
Asset-backed debt | ||
Debt Instrument [Line Items] | ||
Total Debt | 11,055 | 11,922 |
Other debt | ||
Debt Instrument [Line Items] | ||
Total Debt | 4,226 | 4,549 |
Intersegment debt | ||
Debt Instrument [Line Items] | ||
Total Debt | 0 | 0 |
Industrial Activities | ||
Debt Instrument [Line Items] | ||
Total Debt | 6,163 | 8,288 |
Industrial Activities | Total Bonds | ||
Debt Instrument [Line Items] | ||
Total Debt | 5,184 | 6,366 |
Industrial Activities | Asset-backed debt | ||
Debt Instrument [Line Items] | ||
Total Debt | 0 | 0 |
Industrial Activities | Other debt | ||
Debt Instrument [Line Items] | ||
Total Debt | 181 | 905 |
Industrial Activities | Intersegment debt | ||
Debt Instrument [Line Items] | ||
Total Debt | 798 | 1,017 |
Financial Services | ||
Debt Instrument [Line Items] | ||
Total Debt | 19,435 | 19,638 |
Financial Services | Total Bonds | ||
Debt Instrument [Line Items] | ||
Total Debt | 3,280 | 3,216 |
Financial Services | Asset-backed debt | ||
Debt Instrument [Line Items] | ||
Total Debt | 11,055 | 11,922 |
Financial Services | Other debt | ||
Debt Instrument [Line Items] | ||
Total Debt | 4,045 | 3,644 |
Financial Services | Intersegment debt | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 1,055 | $ 856 |
Debt - Minimum Annual Repayment
Debt - Minimum Annual Repayments of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total | $ 23,745 | $ 26,053 |
Operating Segments | ||
Debt Instrument [Line Items] | ||
2022 | 10,061 | |
2023 | 4,332 | |
2024 | 3,370 | |
2025 | 1,826 | |
2026 | 2,145 | |
2027 | 2,011 | |
Intersegment | ||
Debt Instrument [Line Items] | ||
Total | 0 | |
Industrial Activities | ||
Debt Instrument [Line Items] | ||
Total | 6,163 | 8,288 |
Industrial Activities | Operating Segments | ||
Debt Instrument [Line Items] | ||
2022 | 187 | |
2023 | 1,036 | |
2024 | 854 | |
2025 | 852 | |
2026 | 568 | |
2027 | 1,868 | |
Industrial Activities | Intersegment | ||
Debt Instrument [Line Items] | ||
Total | 798 | |
Financial Services | ||
Debt Instrument [Line Items] | ||
Total | 19,435 | $ 19,638 |
Financial Services | Operating Segments | ||
Debt Instrument [Line Items] | ||
2022 | 9,874 | |
2023 | 3,296 | |
2024 | 2,516 | |
2025 | 974 | |
2026 | 1,577 | |
2027 | 143 | |
Financial Services | Intersegment | ||
Debt Instrument [Line Items] | ||
Total | $ 1,055 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Line Items] | ||||
Income tax expense | $ 342 | $ (50) | $ (271) | |
Tax benefit from recognition of deferred tax assets | $ 161 | |||
Negative impacts of non-deductible goodwill | 585 | |||
Discrete tax benefit | 539 | |||
Undistributed earnings in subsidiaries | 7,000 | 7,000 | ||
Deferred income taxes | (251) | (285) | (474) | |
Deferred tax liability on total undistributed earnings | 219 | 219 | ||
Deferred taxes | 11 | 11 | ||
Deferred tax assets, valuation allowances | 736 | 736 | 941 | |
Gross tax loss carry forwards with indefinite lives | 2,000 | 2,000 | ||
Unrecognized tax benefits, that would affect effective tax rate, if recognized | 200 | 200 | ||
Income tax related interest and penalties recognized expense | 1 | 1 | 6 | |
Income tax related interest and penalties accrued | 18 | 18 | $ 27 | $ 25 |
2022 | ||||
Income Tax Disclosure [Line Items] | ||||
Gross tax loss carry forwards, subject to expiration | 89 | 89 | ||
2023 | ||||
Income Tax Disclosure [Line Items] | ||||
Gross tax loss carry forwards, subject to expiration | 59 | 59 | ||
2024 | ||||
Income Tax Disclosure [Line Items] | ||||
Gross tax loss carry forwards, subject to expiration | 35 | 35 | ||
2025 | ||||
Income Tax Disclosure [Line Items] | ||||
Gross tax loss carry forwards, subject to expiration | 58 | 58 | ||
2026 and beyond | ||||
Income Tax Disclosure [Line Items] | ||||
Gross tax loss carry forwards, subject to expiration | 329 | 329 | ||
Tax credit carryforward expiring year 2024 | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carry forwards, subject to expiration | $ 57 | 57 | ||
Subsidiaries Outside U.K. | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred income taxes | $ 0 | |||
U.K | ||||
Income Tax Disclosure [Line Items] | ||||
Statutory federal income tax rate | 19.00% | 19.00% | 19.00% |
Income Taxes - Sources of Incom
Income Taxes - Sources of Income (Loss) Before Taxes and Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Parent country source | $ 169 | $ (131) | $ (3) |
Foreign sources | 1,811 | (374) | 1,173 |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | $ 1,980 | $ (505) | $ 1,170 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current income taxes | $ 593 | $ 235 | $ 203 |
Deferred income taxes | (251) | (285) | (474) |
Total income tax provision (benefit) | $ 342 | $ (50) | $ (271) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Tax provision at the parent statutory rate | $ 376 | $ (96) | $ 222 |
Foreign income taxed at different rates | 125 | (6) | 79 |
Change in valuation allowance | (170) | (9) | (502) |
Italian IRAP taxes | 15 | 12 | 14 |
Tax contingencies | 8 | 5 | 7 |
Tax credits and incentives | (86) | (36) | (88) |
Goodwill impairment | 0 | 111 | 0 |
Nikola fair value remeasurement effect | 24 | (24) | 0 |
Change in tax rate or law | (10) | (14) | (5) |
Withholding taxes | 15 | 0 | 2 |
Other | 45 | 7 | 0 |
Total income tax provision (benefit) | $ 342 | $ (50) | $ (271) |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Inventories | $ 0 | $ 85 |
Warranty and campaigns | 224 | 217 |
Allowance for credit losses | 147 | 159 |
Marketing and sales incentive programs | 308 | 272 |
Other risk and future charges reserve | 236 | 256 |
Pension, postretirement and postemployment benefits | 214 | 271 |
Leasing liabilities | 109 | 117 |
Research and development costs | 308 | 306 |
Other reserves | 607 | 400 |
Tax credits and loss carry forwards | 652 | 798 |
Less: Valuation allowances | (736) | (941) |
Total deferred tax assets | 2,069 | 1,940 |
Deferred tax liabilities: | ||
Property, plant and equipment | 454 | 423 |
Other | 303 | 178 |
Total deferred tax liabilities | 757 | 601 |
Net deferred tax assets | $ 1,312 | $ 1,339 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets Reflected in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 1,481 | $ 1,451 |
Deferred tax liabilities | (139) | (112) |
Other liabilities | (30) | 0 |
Net deferred tax assets | $ 1,312 | $ 1,339 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Gross Amounts of Tax Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Balance, beginning of year | $ 270 | $ 255 |
Additions based on tax positions related to the current year | 30 | 19 |
Additions for tax positions of prior years | 11 | 39 |
Reductions for tax positions of prior years | (32) | (5) |
Reductions for tax positions as a result of lapse of statute | (1) | (37) |
Settlements | (38) | (1) |
Balance, end of year | $ 240 | $ 270 |
Employee Benefit Plans and Po_3
Employee Benefit Plans and Postretirement Benefits - Additional Information (Details) - USD ($) $ in Millions | Apr. 16, 2018 | Nov. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Expense on defined contribution plan | $ 206 | $ 188 | $ 188 | |||
Increase (decrease) in benefit obligation | $ (431) | $ (550) | ||||
Plan assets transferred from plan | 451 | 550 | ||||
Pre-tax non-cash settlement charge | $ 116 | 125 | ||||
Plan amendments | $ 527 | $ 100 | ||||
Amortization period of deferred reduction to retirement benefits payable | 4 years 6 months | 4 years | ||||
Amortization of benefits modification | $ 119 | 119 | 119 | |||
Defined benefit plan benefit obligation period increase (decrease) | 1.3 | (7.8) | (14) | |||
Pension plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pre-tax non-cash settlement charge | 0 | 125 | 125 | |||
Plan amendments | 0 | 2 | ||||
Total accumulated benefit obligation | $ 2,627 | 2,417 | 2,627 | |||
Defined benefit plan benefit obligation period increase (decrease) | 0.5 | (8.6) | (11) | |||
Employer contributions | 93 | |||||
Healthcare plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pre-tax non-cash settlement charge | 0 | 0 | 0 | |||
Plan amendments | (100) | 1 | ||||
Defined benefit plan benefit obligation period increase (decrease) | 0.8 | 0.8 | (3) | |||
Employer contributions | 16 | |||||
Other | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pre-tax non-cash settlement charge | 2 | 2 | $ 2 | |||
Plan amendments | 0 | $ 0 | ||||
Employer contributions | $ 32 |
Employee Benefit Plans and Po_4
Employee Benefit Plans and Postretirement Benefits - Defined Benefit Pension, Healthcare and Other Plans (Details) - USD ($) $ in Millions | Apr. 16, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Beginning benefit obligation | ||||
Plan amendments | $ 527 | $ 100 | ||
Change in the fair value of plan assets: | ||||
Beginning plan assets | 1,952 | |||
Ending plan assets | 1,969 | $ 1,952 | ||
Pension Plans | ||||
Beginning benefit obligation | ||||
Beginning benefit obligation | 2,659 | 2,938 | ||
Service cost | 22 | 22 | $ 23 | |
Interest cost | 22 | 44 | 74 | |
Plan participants’ contributions | 3 | 3 | ||
Actuarial loss (gain) | (94) | 215 | ||
Gross benefits paid | (100) | (139) | ||
Plan amendments | 0 | 2 | ||
Currency translation adjustments and other | (70) | (426) | ||
Ending benefit obligation | 2,442 | 2,659 | 2,938 | |
Change in the fair value of plan assets: | ||||
Beginning plan assets | 1,807 | 2,096 | ||
Actual return on plan assets | 85 | 231 | ||
Employer contributions | 52 | 70 | ||
Plan participants’ contributions | 3 | 3 | ||
Gross benefits paid | (75) | (114) | ||
Currency translation adjustments and other | (32) | (479) | ||
Ending plan assets | 1,840 | 1,807 | 2,096 | |
Funded status | (602) | (852) | ||
Healthcare | ||||
Beginning benefit obligation | ||||
Beginning benefit obligation | 418 | 412 | ||
Service cost | 4 | 4 | 5 | |
Interest cost | 6 | 10 | 14 | |
Plan participants’ contributions | 6 | 5 | ||
Actuarial loss (gain) | (20) | 21 | ||
Gross benefits paid | (36) | (37) | ||
Plan amendments | (100) | 1 | ||
Currency translation adjustments and other | 11 | 2 | ||
Ending benefit obligation | 289 | 418 | 412 | |
Change in the fair value of plan assets: | ||||
Beginning plan assets | 145 | 152 | ||
Actual return on plan assets | 9 | 17 | ||
Employer contributions | 0 | 0 | ||
Plan participants’ contributions | 0 | 0 | ||
Gross benefits paid | (9) | (9) | ||
Currency translation adjustments and other | (15) | (15) | ||
Ending plan assets | 130 | 145 | 152 | |
Funded status | (159) | (273) | ||
Other | ||||
Beginning benefit obligation | ||||
Beginning benefit obligation | 455 | 431 | ||
Service cost | 18 | 16 | 13 | |
Interest cost | 1 | 1 | 3 | |
Plan participants’ contributions | 0 | 0 | ||
Actuarial loss (gain) | 11 | 0 | ||
Gross benefits paid | (33) | (31) | ||
Plan amendments | 0 | 0 | ||
Currency translation adjustments and other | (36) | 38 | ||
Ending benefit obligation | 416 | 455 | 431 | |
Change in the fair value of plan assets: | ||||
Beginning plan assets | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Employer contributions | 0 | 0 | ||
Plan participants’ contributions | 0 | 0 | ||
Gross benefits paid | 0 | 0 | ||
Currency translation adjustments and other | 0 | 0 | ||
Ending plan assets | 0 | 0 | $ 0 | |
Funded status | $ (416) | $ (455) |
Employee Benefit Plans and Po_5
Employee Benefit Plans and Postretirement Benefits - Defined Benefit Pension Plans by Geographical Area (Details) - USD ($) $ in Millions | Apr. 16, 2018 | Dec. 31, 2021 | Dec. 31, 2020 |
Beginning benefit obligation | |||
Plan amendments | $ 527 | $ 100 | |
Change in the fair value of plan assets: | |||
Beginning plan assets | 1,952 | ||
Ending plan assets | 1,969 | $ 1,952 | |
U.S. | |||
Beginning benefit obligation | |||
Beginning benefit obligation | 177 | 666 | |
Service cost | 3 | 4 | |
Interest cost | 4 | 16 | |
Plan participants’ contributions | 0 | 0 | |
Actuarial loss (gain) | (15) | 80 | |
Gross benefits paid | 5 | 40 | |
Plan amendments | 0 | 2 | |
Currency translation adjustments and other | 0 | (551) | |
Ending benefit obligation | 174 | 177 | |
Change in the fair value of plan assets: | |||
Beginning plan assets | 204 | 700 | |
Actual return on plan assets | (4) | 93 | |
Employer contributions | 0 | 0 | |
Plan participants’ contributions | 0 | 0 | |
Gross benefits paid | 5 | 40 | |
Currency translation adjustments and other | 0 | (549) | |
Ending plan assets | 205 | 204 | |
Funded status: | 31 | 27 | |
U.K | |||
Beginning benefit obligation | |||
Beginning benefit obligation | 1,608 | 1,488 | |
Service cost | 0 | 0 | |
Interest cost | 16 | 24 | |
Plan participants’ contributions | 0 | 0 | |
Actuarial loss (gain) | (27) | 99 | |
Gross benefits paid | 61 | 58 | |
Plan amendments | 0 | 0 | |
Currency translation adjustments and other | (18) | 55 | |
Ending benefit obligation | 1,518 | 1,608 | |
Change in the fair value of plan assets: | |||
Beginning plan assets | 1,230 | 1,067 | |
Actual return on plan assets | 62 | 118 | |
Employer contributions | 41 | 59 | |
Plan participants’ contributions | 0 | 0 | |
Gross benefits paid | 60 | 58 | |
Currency translation adjustments and other | (17) | 44 | |
Ending plan assets | 1,256 | 1,230 | |
Funded status: | (262) | (378) | |
Germany | |||
Beginning benefit obligation | |||
Beginning benefit obligation | 449 | 424 | |
Service cost | 4 | 4 | |
Interest cost | 1 | 2 | |
Plan participants’ contributions | 0 | 0 | |
Actuarial loss (gain) | (26) | 6 | |
Gross benefits paid | 25 | 25 | |
Plan amendments | 0 | 0 | |
Currency translation adjustments and other | (32) | 38 | |
Ending benefit obligation | 371 | 449 | |
Change in the fair value of plan assets: | |||
Beginning plan assets | 5 | 5 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 0 | 0 | |
Plan participants’ contributions | 0 | 0 | |
Gross benefits paid | 0 | 0 | |
Currency translation adjustments and other | (1) | 0 | |
Ending plan assets | 4 | 5 | |
Funded status: | (367) | (444) | |
Others Countries | |||
Beginning benefit obligation | |||
Beginning benefit obligation | 425 | 360 | |
Service cost | 15 | 14 | |
Interest cost | 1 | 2 | |
Plan participants’ contributions | 3 | 3 | |
Actuarial loss (gain) | (26) | 30 | |
Gross benefits paid | 18 | 16 | |
Plan amendments | 0 | 0 | |
Currency translation adjustments and other | (21) | 32 | |
Ending benefit obligation | 379 | 425 | |
Change in the fair value of plan assets: | |||
Beginning plan assets | 368 | 324 | |
Actual return on plan assets | 27 | 20 | |
Employer contributions | 11 | 11 | |
Plan participants’ contributions | 3 | 3 | |
Gross benefits paid | 19 | 16 | |
Currency translation adjustments and other | (15) | 26 | |
Ending plan assets | 375 | 368 | |
Funded status: | $ (4) | $ (57) |
Employee Benefit Plans and Po_6
Employee Benefit Plans and Postretirement Benefits - Net Amounts Recognized in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension, postretirement and other postemployment benefits | $ (1,234) | $ (1,617) |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | 57 | 37 |
Pension, postretirement and other postemployment benefits | (659) | (889) |
Net liability recognized at end of year | (602) | (852) |
Healthcare | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | 0 | 0 |
Pension, postretirement and other postemployment benefits | (159) | (273) |
Net liability recognized at end of year | (159) | (273) |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | 0 | 0 |
Pension, postretirement and other postemployment benefits | (416) | (455) |
Net liability recognized at end of year | $ (416) | $ (455) |
Employee Benefit Plans and Po_7
Employee Benefit Plans and Postretirement Benefits - Pre-tax Amounts Recognized in Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized actuarial losses | $ 631 |
Unrecognized prior service credit | 3 |
Accumulated other comprehensive loss | 634 |
Healthcare | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized actuarial losses | 33 |
Unrecognized prior service credit | (206) |
Accumulated other comprehensive loss | (173) |
Other | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized actuarial losses | 106 |
Unrecognized prior service credit | (6) |
Accumulated other comprehensive loss | $ 100 |
Employee Benefit Plans and Po_8
Employee Benefit Plans and Postretirement Benefits - Accumulated Benefit Obligations in Excess of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Retirement Benefits [Abstract] | ||
Accumulated benefit obligation | $ 1,963 | $ 2,384 |
Fair value of plan assets | $ 1,312 | $ 1,526 |
Employee Benefit Plans and Po_9
Employee Benefit Plans and Postretirement Benefits - Projected Benefit Obligations in Excess of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 1,312 | $ 1,526 |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 2,068 | 2,428 |
Fair value of plan assets | 1,409 | 1,539 |
Healthcare | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 289 | 418 |
Fair value of plan assets | 130 | 145 |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 416 | 455 |
Fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans and P_10
Employee Benefit Plans and Postretirement Benefits - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amortization of: | |||||
Settlement loss and other | $ 116 | $ 125 | |||
Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 22 | $ 22 | $ 23 | ||
Interest cost | 22 | 44 | 74 | ||
Expected return on assets | (66) | (80) | (99) | ||
Amortization of: | |||||
Prior service cost (credit) | 0 | 0 | 1 | ||
Actuarial loss (gain) | 31 | 40 | 67 | ||
Settlement loss and other | 0 | 125 | 125 | ||
Net periodic benefit cost (credit) | 9 | 151 | 191 | ||
Healthcare | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 4 | 4 | 5 | ||
Interest cost | 6 | 10 | 14 | ||
Expected return on assets | (7) | (7) | (7) | ||
Amortization of: | |||||
Prior service cost (credit) | (136) | (130) | (125) | ||
Actuarial loss (gain) | 3 | 2 | (2) | ||
Settlement loss and other | 0 | 0 | 0 | ||
Net periodic benefit cost (credit) | (130) | (121) | (115) | ||
Other | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 18 | 16 | 13 | ||
Interest cost | 1 | 1 | 3 | ||
Expected return on assets | 0 | 0 | 0 | ||
Amortization of: | |||||
Prior service cost (credit) | 0 | 0 | 1 | ||
Actuarial loss (gain) | 7 | 5 | 14 | ||
Settlement loss and other | 2 | 2 | 2 | ||
Net periodic benefit cost (credit) | $ 28 | $ 24 | $ 33 |
Employee Benefit Plans and P_11
Employee Benefit Plans and Postretirement Benefits - Net Periodic Benefit Cost Recognized in Net Income and Other Changes in Plan Assets and Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Benefit adjustments included in other comprehensive (income) loss: | |||
Total recognized in other comprehensive (income) loss | $ (109) | $ 10 | $ 115 |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | 9 | 151 | 191 |
Benefit adjustments included in other comprehensive (income) loss: | |||
Net actuarial losses (gains) | (113) | ||
Amortization of actuarial losses | (31) | ||
Amortization of prior service (cost) credit | 0 | ||
Currency translation adjustments and other | (18) | ||
Total recognized in other comprehensive (income) loss | (162) | ||
Total recognized in comprehensive loss | (153) | ||
Healthcare | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | (130) | (121) | (115) |
Benefit adjustments included in other comprehensive (income) loss: | |||
Net actuarial losses (gains) | (23) | ||
Amortization of actuarial losses | (3) | ||
Amortization of prior service (cost) credit | 136 | ||
Currency translation adjustments and other | (100) | ||
Total recognized in other comprehensive (income) loss | 10 | ||
Total recognized in comprehensive loss | (120) | ||
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | 28 | $ 24 | $ 33 |
Benefit adjustments included in other comprehensive (income) loss: | |||
Net actuarial losses (gains) | 8 | ||
Amortization of actuarial losses | (6) | ||
Amortization of prior service (cost) credit | 0 | ||
Currency translation adjustments and other | (4) | ||
Total recognized in other comprehensive (income) loss | (2) | ||
Total recognized in comprehensive loss | $ 26 |
Employee Benefit Plans and P_12
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 (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension plans | |||
Assumptions used to determine funded status at December 31 | |||
Weighted-average discount rate | 1.63% | 1.12% | 1.88% |
Weighted-average rate of compensation increase | 2.12% | 2.07% | 2.99% |
Assumptions used to determine expense | |||
Weighted-average discount rates - service cost | 0.69% | 1.06% | 1.97% |
Weighted-average discount rates - interest cost | 0.86% | 1.62% | 2.58% |
Weighted-average rate of compensation increase | 2.07% | 2.99% | 3.00% |
Weighted-average long-term rates of return on plan assets | 3.69% | 4.02% | 4.68% |
Healthcare plans | |||
Assumptions used to determine funded status at December 31 | |||
Weighted-average discount rate | 2.54% | 2.12% | 2.99% |
Weighted-average, initial healthcare cost trend rate | 4.18% | 4.39% | 4.68% |
Weighted-average, ultimate healthcare cost trend rate | 3.58% | 3.95% | 4.20% |
Assumptions used to determine expense | |||
Weighted-average discount rates - service cost | 2.47% | 3.15% | 4.03% |
Weighted-average discount rates - interest cost | 1.53% | 2.58% | 3.53% |
Weighted-average long-term rates of return on plan assets | 4.85% | 5.00% | 5.50% |
Weighted-average, initial healthcare cost trend rate | 4.39% | 4.68% | 6.17% |
Weighted-average, ultimate healthcare cost trend rate | 3.95% | 4.20% | 5.00% |
Other | |||
Assumptions used to determine funded status at December 31 | |||
Weighted-average discount rate | 0.96% | 0.47% | 0.69% |
Weighted-average rate of compensation increase | 2.14% | 1.85% | 1.91% |
Assumptions used to determine expense | |||
Weighted-average discount rates - service cost | 0.63% | 0.81% | 1.76% |
Weighted-average discount rates - interest cost | 0.41% | 0.61% | 1.50% |
Weighted-average rate of compensation increase | 1.85% | 1.91% | 1.41% |
Employee Benefit Plans and P_13
Employee Benefit Plans and Postretirement Benefits - Weighted Average Target Asset Allocation For All Plans (Details) | Dec. 31, 2021 |
Equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation for all plans in asset categories | 11.00% |
Debt securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation for all plans in asset categories | 44.00% |
Cash/Other | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation for all plans in asset categories | 45.00% |
Employee Benefit Plans and P_14
Employee Benefit Plans and Postretirement Benefits - Summary of Fair Value of Plan Assets by Asset Category and Level Within Fair Value Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | $ 1,969 | $ 1,952 |
Total Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
U.S. equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Non-U.S. equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Total Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 137 | 148 |
U.S. government bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 72 | 32 |
U.S. corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 7 | 42 |
Non-U.S. government bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 40 | 49 |
Non-U.S. corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 18 | 25 |
Mortgage backed securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Other fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Total Other types of investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 1,795 | 1,782 |
Mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 1,588 | 1,582 |
Insurance contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 207 | 200 |
Derivatives—credit contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 37 | 22 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 99 | 76 |
Level 1 | Total Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 1 | U.S. equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 1 | Non-U.S. equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 1 | Total Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 82 | 45 |
Level 1 | U.S. government bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 72 | 30 |
Level 1 | U.S. corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 1 | 5 |
Level 1 | Non-U.S. government bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 9 | 10 |
Level 1 | Non-U.S. corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 1 | Mortgage backed securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 1 | Other fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 1 | Total Other types of investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 21 |
Level 1 | Mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 21 |
Level 1 | Insurance contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 1 | Derivatives—credit contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 1 | Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 1 | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 17 | 10 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 1,663 | 1,676 |
Level 2 | Total Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 2 | U.S. equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 2 | Non-U.S. equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 2 | Total Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 55 | 103 |
Level 2 | U.S. government bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 2 |
Level 2 | U.S. corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 6 | 37 |
Level 2 | Non-U.S. government bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 31 | 39 |
Level 2 | Non-U.S. corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 18 | 25 |
Level 2 | Mortgage backed securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 2 | Other fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 2 | Total Other types of investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 1,588 | 1,561 |
Level 2 | Mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 1,588 | 1,561 |
Level 2 | Insurance contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 2 | Derivatives—credit contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 2 | Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 2 | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 20 | 12 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 207 | 200 |
Level 3 | Total Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 3 | U.S. equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 3 | Non-U.S. equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 3 | Total Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 3 | U.S. government bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 3 | U.S. corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 3 | Non-U.S. government bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 3 | Non-U.S. corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 3 | Mortgage backed securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 3 | Other fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 3 | Total Other types of investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 207 | 200 |
Level 3 | Mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 3 | Insurance contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 207 | 200 |
Level 3 | Derivatives—credit contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 3 | Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | 0 | 0 |
Level 3 | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets by asset category | $ 0 | $ 0 |
Employee Benefit Plans and P_15
Employee Benefit Plans and Postretirement Benefits - Changes in Level 3 Plan Assets (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning plan assets | $ 1,952 | |||
Transfers in and/or out of level 3 | $ (451) | $ (550) | ||
Ending plan assets | 1,952 | 1,969 | $ 1,952 | |
Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning plan assets | 200 | |||
Ending plan assets | 200 | 207 | 200 | |
Level 3 | Insurance contracts | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning plan assets | 200 | 171 | ||
Actual return on plan assets relating to assets still held at reporting date | 16 | 8 | ||
Purchases | 9 | 8 | ||
Settlements | (9) | (5) | ||
Transfers in and/or out of level 3 | 0 | 0 | ||
Currency impact | (9) | 18 | ||
Ending plan assets | $ 200 | $ 207 | $ 200 |
Employee Benefit Plans and P_16
Employee Benefit Plans and Postretirement Benefits - Cash Flows Related to Total Benefits Expected to be Paid (Details) $ in Millions | Dec. 31, 2021USD ($) |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 105 |
2023 | 106 |
2024 | 103 |
2025 | 107 |
2026 | 108 |
2027 - 2031 | 564 |
Total | 1,093 |
Healthcare | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 24 |
2023 | 23 |
2024 | 22 |
2025 | 21 |
2026 | 21 |
2027 - 2031 | 98 |
Total | 209 |
Medicare Part D Reimbursement | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 - 2031 | (1) |
Total | (1) |
Other | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 32 |
2023 | 26 |
2024 | 28 |
2025 | 28 |
2026 | 26 |
2027 - 2031 | 150 |
Total | $ 290 |
Other Liabilities - Summary of
Other Liabilities - Summary of Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||||
Advances on buy-back agreements | $ 1,146 | $ 1,355 | ||
Warranty and campaign programs | 987 | 995 | $ 919 | |
Marketing and sales incentive programs | 1,558 | 1,324 | ||
Tax payables | 904 | 654 | ||
Accrued expenses and deferred income | 685 | 672 | ||
Accrued employee benefits | 935 | 681 | ||
Lease liabilities | 417 | 453 | ||
Legal reserves and other provisions | 316 | 332 | ||
Contract reserve | 367 | 389 | ||
Contract liabilities | 1,458 | 1,381 | 1,236 | |
Restructuring reserve | 71 | 76 | $ 103 | $ 71 |
Other | 1,529 | 1,100 | ||
Total | $ 10,373 | $ 9,412 |
Other Liabilities - Summary o_2
Other Liabilities - Summary of Recorded Activity for Basic Warranty and Accruals for Campaign Programs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance, beginning of year | $ 995 | $ 919 |
Current year additions | 800 | 784 |
Claims paid | (713) | (685) |
Currency translation adjustment and other | (95) | (23) |
Balance, end of year | $ 987 | $ 995 |
Other Liabilities - Additional
Other Liabilities - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 74 | $ 49 | $ 109 |
Commercial and Specialty Vehicles | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 37 | 11 | 37 |
Agriculture | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 20 | 13 | 41 |
Construction | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 15 | 9 | 18 |
Powertrain | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 2 | $ 16 | $ 7 |
Other Liabilities - Restructuri
Other Liabilities - Restructuring Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 76 | $ 103 | $ 71 |
Restructuring charges | 74 | 49 | 109 |
Reserves utilized: cash | (73) | (72) | (56) |
Reserves utilized: non-cash | (1) | (9) | (20) |
Currency translation adjustments | (5) | 5 | (1) |
Ending balance | 71 | 76 | 103 |
Severance and Other Employee Costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 44 | 62 | 40 |
Restructuring charges | 70 | 46 | 98 |
Reserves utilized: cash | (74) | (61) | (77) |
Reserves utilized: non-cash | 7 | (6) | 3 |
Currency translation adjustments | (3) | 3 | (2) |
Ending balance | 44 | 44 | 62 |
Facility Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 30 | 38 | 30 |
Restructuring charges | 2 | 3 | (2) |
Reserves utilized: cash | (2) | (7) | 25 |
Reserves utilized: non-cash | (6) | (5) | (16) |
Currency translation adjustments | (1) | 1 | 1 |
Ending balance | 23 | 30 | 38 |
Other Restructuring | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 2 | 3 | 1 |
Restructuring charges | 2 | 0 | 13 |
Reserves utilized: cash | 3 | (4) | (4) |
Reserves utilized: non-cash | (2) | 2 | (7) |
Currency translation adjustments | (1) | 1 | 0 |
Ending balance | $ 4 | $ 2 | $ 3 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)businessAcquired | Dec. 31, 2020USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of non owned sites (in sites) | 66 | |
Number of national priority list (in sites) | 16 | |
Number of sites not named as a potentially responsible party (PRP) the company's liability has been resolved or has been deemed de minimis (in sites) | 60 | |
Incurred and claims to be resolved over extended period of time | 30 years | |
Environmental reserves | $ | $ 30 | $ 32 |
Guarantees at carrying value | $ | $ 527 | $ 615 |
Commitments and Contingencies_2
Commitments and Contingencies - Financial Services has Various Agreements to Extend Credit (Details) - Wholesale and dealer financing $ in Millions | Dec. 31, 2021USD ($) |
Line of Credit Facility [Line Items] | |
Total Credit Limit | $ 7,549 |
Utilized | 2,725 |
Not Utilized | $ 4,824 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Financial instrument maturity period | 24 months | ||
AOCI recognized in net sales and cost of goods sold over next twelve months | $ (25,000,000) | ||
Cost method | 62,000,000 | $ 15,000,000 | |
Fair value of investment held | $ 254,000,000 | ||
Shares held in affiliate (in shares) | 25,661,448 | ||
Gain from downward adjustment to equity securities without readily determinable fair value, before tax | $ 138,000,000 | ||
Gain from downward adjustment to equity securities without readily determinable fair value, after tax | $ 136,000,000 | ||
Property, plant and equipment, losses | $ 163,000,000 | 163,000,000 | |
Agriculture | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Property, plant and equipment, losses | 111,000,000 | 111,000,000 | |
Construction | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Property, plant and equipment, losses | 45,000,000 | 45,000,000 | |
Commercial and Specialty Vehicles | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Property, plant and equipment, losses | $ 7,000,000 | 7,000,000 | |
Nikola Corporation | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Number of shares acquired per acquire share (in shares) | 1.901 | ||
Share price (in dollars per share) | $ 9.87 | ||
Nikola Corporation | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Ownership percentage of investment held | 6.50% | ||
Cost method | $ 250,000,000 | ||
Foreign exchange contracts | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Notional amount of foreign exchange derivatives | $ 8,200,000,000 | 6,300,000,000 | |
Interest rate derivatives | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Notional amount of foreign exchange derivatives | 6,400,000,000 | $ 7,500,000,000 | |
Nominal amount of hedging instruments affected by reform of benchmark | 1,200,000,000 | ||
Interest rate derivatives | Off-Highway | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Nominal amount of hedging instruments affected by reform of benchmark | 1,200,000,000 | ||
Interest rate derivatives | On Highway | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Nominal amount of hedging instruments affected by reform of benchmark | $ 0 |
Financial Instruments - Gross I
Financial Instruments - Gross Impact of Changes in Fair Value of Derivatives Designated as Cash Flow Hedges on AOCI and Net Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (Loss) Recognized in Accumulated Other Comprehensive Income | $ (8) | $ 82 | $ (135) |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (10) | 25 | (93) |
Net sales | Foreign exchange contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (Loss) Recognized in Accumulated Other Comprehensive Income | (57) | 96 | (113) |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 2 | (7) | 0 |
Cost of goods sold | Foreign exchange contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (11) | 31 | (69) |
Other, Net | Foreign exchange contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (4) | 6 | (16) |
Interest expense | Interest rate contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (Loss) Recognized in Accumulated Other Comprehensive Income | 49 | (14) | (22) |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | $ 3 | $ (5) | $ (8) |
Financial Instruments - Summary
Financial Instruments - Summary of Activity in Accumulated Other Comprehensive Income Related to Derivatives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Before-Tax Amount | |||
Accumulated derivative net losses, beginning of period | $ (5) | $ (62) | $ (20) |
Net changes in fair value of derivatives | (8) | 82 | (135) |
Net losses reclassified from accumulated other comprehensive income into income | 10 | (25) | 93 |
Accumulated derivative net losses, end of period | (3) | (5) | (62) |
Income Tax | |||
Accumulated derivative net losses, beginning of period | (1) | 8 | (2) |
Net changes in fair value of derivatives | (12) | (8) | 24 |
Reclassification from AOCI, Current Period, Tax | (1) | (1) | (14) |
Accumulated derivative net losses, end of period | (14) | (1) | 8 |
After-Tax Amount | |||
Accumulated derivative net losses, beginning of period | (6) | (54) | (22) |
Net changes in fair value of derivatives | (20) | 74 | (111) |
Net losses reclassified from accumulated other comprehensive income into income | 9 | (26) | 79 |
Accumulated derivative net losses, end of period | $ (17) | $ (6) | $ (54) |
Financial Instruments - Impact
Financial Instruments - Impact of Changes in Fair Value of Fair Value Hedges and Not Designated as Hedging Instruments on Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest expense | Fair Value Hedges | Interest rate contracts | |||
Fair Value Hedges | |||
Interest rate derivatives | $ (47) | $ 31 | $ 31 |
Other, Net | Foreign exchange contracts | Derivatives not designated as hedging instruments | |||
Not Designated as Hedges | |||
Foreign exchange contracts | $ (78) | $ 86 | $ (73) |
Financial Instruments - Fair Va
Financial Instruments - Fair Values of Derivatives (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 185 | $ 160 |
Derivative liabilities | 176 | 139 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 142 | 144 |
Derivative liabilities | 129 | 108 |
Derivatives designated as hedging instruments | Interest rate derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 65 | 77 |
Derivative liabilities | 28 | 46 |
Derivatives designated as hedging instruments | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 77 | 67 |
Derivative liabilities | 101 | 62 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 43 | 16 |
Derivative liabilities | 47 | 31 |
Derivatives not designated as hedging instruments | Interest rate derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 11 | 0 |
Derivative liabilities | 12 | 0 |
Derivatives not designated as hedging instruments | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 32 | 16 |
Derivative liabilities | $ 35 | $ 31 |
Financial Instruments - Fair _2
Financial Instruments - Fair Value Hierarchy Levels of Assets and Liabilities Value on Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value through profit and loss | $ 254 | $ 392 |
Fair Value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 439 | 552 |
Investments at fair value through profit and loss | 254 | 392 |
Total Liabilities | 176 | 139 |
Fair Value, measurements, recurring | Foreign exchange derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 109 | 83 |
Total Liabilities | 136 | 93 |
Fair Value, measurements, recurring | Interest rate derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 76 | 77 |
Total Liabilities | 40 | 46 |
Fair Value, measurements, recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 254 | 392 |
Investments at fair value through profit and loss | 254 | 392 |
Total Liabilities | 0 | 0 |
Fair Value, measurements, recurring | Level 1 | Foreign exchange derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, measurements, recurring | Level 1 | Interest rate derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, measurements, recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 185 | 160 |
Investments at fair value through profit and loss | 0 | 0 |
Total Liabilities | 176 | 139 |
Fair Value, measurements, recurring | Level 2 | Foreign exchange derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 109 | 83 |
Total Liabilities | 136 | 93 |
Fair Value, measurements, recurring | Level 2 | Interest rate derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 76 | 77 |
Total Liabilities | $ 40 | $ 46 |
Financial Instruments - Fair _3
Financial Instruments - Fair Value Hierarchy Levels of Assets and Liabilities Value on Nonrecurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, losses | $ 163 | $ 163 | |
Other intangible assets, losses | $ 0 | ||
Fair Value, Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, fair value | 0 | 107 | |
Other intangible assets, fair value | 0 | 0 | |
Property, plant and equipment, losses | 0 | 163 | |
Other intangible assets, losses | $ 0 | $ 92 |
Financial Instruments - Estimat
Financial Instruments - Estimated Fair Values of Instruments Not Carried at Fair Value in Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivables | $ 18,662 | $ 18,457 |
Debt | 23,745 | 26,053 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivables | 18,897 | 18,726 |
Debt | $ 23,939 | $ 26,630 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) € / shares in Units, € in Millions, $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2021EUR (€)vote€ / sharesshares | Dec. 31, 2020shares | Dec. 31, 2019shares | Mar. 01, 2022EUR (€)€ / shares | Mar. 01, 2022USD ($) | Dec. 31, 2021USD ($)shares | Mar. 03, 2021EUR (€)€ / shares | Mar. 03, 2021USD ($) | Dec. 31, 2018shares | |
Class of Stock [Line Items] | |||||||||
Authorized share capital amount | € | € 40 | ||||||||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |||||||
Special voting shares, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |||||||
Special voting shares (in eur per share) | € / shares | € 0.01 | ||||||||
Common and special voting shares | € 18 | $ 25 | |||||||
Common shares, shares issued (in shares) | 1,364,400,196 | 1,364,400,196 | |||||||
Common shares outstanding (in shares) | 1,356,077,000 | 1,353,910,471 | 1,356,077,000 | ||||||
Treasury stock (in shares) | 8,323,196 | 8,323,196 | |||||||
Special voting shares issued (in shares) | 396,474,276 | 396,474,276 | |||||||
Special voting shares outstanding (in shares) | 371,218,250 | 371,328,154 | 371,218,250 | ||||||
Retirement of special voting shares (in shares) | 109,904 | 16,623,012 | 774,458 | ||||||
Capital increase (in shares) | 2,166,529 | 3,778,354 | 2,568,751 | ||||||
Number of votes eligible for each common share (in votes) | vote | 2 | ||||||||
Common shares, registered | 3 years | ||||||||
Period in force | 18 months | ||||||||
Stock repurchase program percentage of shares authorized to be repurchased | 10.00% | 10.00% | |||||||
Treasury stock, value | $ | $ 81 | ||||||||
Dividend declared (in eur per share) | € / shares | € 0.11 | ||||||||
Dividend declared amount | € 150 | $ 180 | |||||||
Special Voting Shares | |||||||||
Class of Stock [Line Items] | |||||||||
Treasury stock (in shares) | 25,256,026 | 25,256,026 | |||||||
Special voting shares outstanding (in shares) | 371,218,250 | 371,328,154 | 387,951,166 | 371,218,250 | 388,725,624 | ||||
Retirement of special voting shares (in shares) | 109,904 | 16,623,012 | 774,458 | ||||||
Subsequent Event | |||||||||
Class of Stock [Line Items] | |||||||||
Dividend declared (in eur per share) | € / shares | € 0.28 | ||||||||
Dividend declared amount | € 380 | $ 426 |
Shareholders Equity - Changes i
Shareholders Equity - Changes in the Composition of the Share of CHN Industrial (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | |||
Common shares, shares outstanding, beginning balance (in shares) | 1,353,910,471 | ||
Special voting shares, shares outstanding, beginning balance (in shares) | 371,328,154 | ||
Common and special voting shares, shares outstanding (in shares) | 1,725,238,625 | 1,738,083,283 | 1,742,557,582 |
Capital increase (in shares) | 2,166,529 | 3,778,354 | 2,568,751 |
Common stock repurchases (in shares) | 0 | 0 | (6,268,592) |
Retirement of special voting shares (in shares) | (109,904) | (16,623,012) | (774,458) |
Common shares, shares outstanding, ending balance (in shares) | 1,356,077,000 | 1,353,910,471 | |
Special voting shares, shares outstanding, ending balance (in shares) | 371,218,250 | 371,328,154 | |
Common and special voting shares, shares outstanding (in shares) | 1,727,295,250 | 1,725,238,625 | 1,738,083,283 |
Common Shares | |||
Class of Stock [Line Items] | |||
Common shares, shares outstanding, beginning balance (in shares) | 1,353,910,471 | 1,350,132,117 | 1,353,831,958 |
Capital increase (in shares) | 2,166,529 | 3,778,354 | 2,568,751 |
Common stock repurchases (in shares) | 0 | 0 | (6,268,592) |
Common shares, shares outstanding, ending balance (in shares) | 1,356,077,000 | 1,353,910,471 | 1,350,132,117 |
Loyalty Program Special Voting Rights | |||
Class of Stock [Line Items] | |||
Special voting shares, shares outstanding, beginning balance (in shares) | 371,328,154 | 387,951,166 | 388,725,624 |
Common stock repurchases (in shares) | 0 | ||
Retirement of special voting shares (in shares) | (109,904) | (16,623,012) | (774,458) |
Special voting shares, shares outstanding, ending balance (in shares) | 371,218,250 | 371,328,154 | 387,951,166 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands | Feb. 01, 2021shares | Dec. 14, 2020installment$ / sharesshares | Dec. 04, 2020grantinstallment$ / sharesshares | Apr. 03, 2019$ / sharesshares | Dec. 31, 2020shares | Dec. 31, 2017 | Jun. 30, 2020shares | Dec. 31, 2021USD ($)installment$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Apr. 16, 2020shares | Feb. 28, 2020shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation expense | $ | $ 99,000 | $ 38,000 | $ 33,000 | |||||||||
Tax benefit relating to share-based compensation expense | $ | 8,000 | $ 4,000 | $ 3,000 | |||||||||
Unrecognized share-based compensation expense | $ | $ 187,000 | |||||||||||
Unrecognized share-based compensation costs weighted-average period | 2 years 1 month 6 days | |||||||||||
Off-Highway | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Unrecognized share-based compensation expense | $ | $ 150,000 | |||||||||||
Unrecognized share-based compensation costs weighted-average period | 2 years 1 month 6 days | |||||||||||
CNH EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares authorized (in shares) | 50,000,000 | |||||||||||
CNH DCP | Annual Retainer | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Annual board of directors member fee | $ | $ 125 | |||||||||||
CNH DCP | Audit Committee Membership | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Annual board of directors member fee | $ | 25 | |||||||||||
CNH DCP | Audit Committee Chair | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Annual board of directors member fee | $ | 35 | |||||||||||
CNH DCP | Governance | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Annual board of directors member fee | $ | 20 | |||||||||||
CNH DCP | Governance And Sustainability Committee Chair | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Annual board of directors member fee | $ | $ 25 | |||||||||||
CNH Industrial DCP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common shares issued (in shares) | 0 | |||||||||||
Common shares available for issuance | 200,000 | |||||||||||
Number of options issued (in shares) | 0 | 0 | ||||||||||
Executive Director | CNH EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares authorized (in shares) | 7,000,000 | |||||||||||
Performance Shares | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based award period | 3 years | |||||||||||
Granted (in shares) | 400,000 | 600,000 | ||||||||||
Performance Shares | 2021-2023 Long Term Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based award period | 3 years | |||||||||||
Payout scale | 200.00% | |||||||||||
Weighted percentage | 50.00% | |||||||||||
Payout factor percentage | 125.00% | |||||||||||
Common shares issued (in shares) | 3,000,000 | 7,000,000 | ||||||||||
Fair value of stock awarded (in dollars per share) | $ / shares | $ 13.15 | $ 10.83 | ||||||||||
Performance Shares | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Payout scale | 0.00% | |||||||||||
Performance Shares | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Payout scale | 130.00% | |||||||||||
Restricted Stock Units | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 1,000,000 | 8,000,000 | 800,000 | |||||||||
Fair value of stock awarded (in dollars per share) | $ / shares | $ 14.42 | $ 10.90 | $ 9.95 | |||||||||
Restricted Stock Units | 2017-2019 Long Term Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 536,000 | |||||||||||
Fair value of stock awarded (in dollars per share) | $ / shares | $ 10.18 | |||||||||||
Vested (in shares) | 296,000 | 32,000 | ||||||||||
Shares outstanding (in shares) | 490,000 | |||||||||||
Forfeited (in shares) | 162,000 | |||||||||||
Restricted Stock Units | 2021-2023 Long Term Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 120,000 | 1,464,305 | ||||||||||
Fair value of stock awarded (in dollars per share) | $ / shares | $ 10.96 | $ 11.43 | $ 16.71 | |||||||||
Vested (in shares) | 17,000 | 2,141,337 | ||||||||||
Shares outstanding (in shares) | 5,443,197 | 4,370,079 | 5,443,197 | |||||||||
Forfeited (in shares) | 396,086 | |||||||||||
Number of grants | grant | 2 | |||||||||||
Number of installments | installment | 3 | 3 | 3 | |||||||||
Vesting period | 3 years | |||||||||||
Share-based payment arrangement, accelerated cost | $ | $ 6,000 | |||||||||||
Vested (in dollars per share) | $ / shares | $ 11.59 | |||||||||||
Restricted Stock Units | 2021-2023 Long Term Incentive Plan | Vesting Tranche One | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 1,700,000 | 400,000 | ||||||||||
Fair value of stock awarded (in dollars per share) | $ / shares | $ 10.76 | $ 11.23 | $ 14.08 | |||||||||
Restricted Stock Units | 2021-2023 Long Term Incentive Plan | Vesting Tranche Two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 103,000 | 5,000,000 | 1,200,000 | |||||||||
Fair value of stock awarded (in dollars per share) | $ / shares | $ 10.55 | $ 11.02 | $ 13.89 | |||||||||
Restricted Stock Units | 2021-2023 Long Term Incentive Plan | Vesting Tranche Three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Fair value of stock awarded (in dollars per share) | $ / shares | $ 10.35 | $ 10.82 | $ 13.71 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Performance-Based Share Activity (Details) - Performance Shares - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Performance Shares | |||
Granted (in shares) | 400,000 | 600,000 | |
CNH Industrial EIP | |||
Performance Shares | |||
Nonvested, beginning balance (in shares) | 6,931,030 | ||
Granted (in shares) | 3,035,985 | ||
Forfeited/Cancelled (in shares) | (545,790) | ||
Vested (in shares) | 0 | ||
Nonvested, ending balance (in shares) | 9,421,225 | 6,931,030 | |
Weighted Average Grant-Date Fair Value | |||
Nonvested, beginning balance (in dollars per share) | $ 10.83 | ||
Granted (in dollars per share) | 13.15 | ||
Forfeited/Cancelled (in dollars per share) | 10.83 | ||
Vested (in dollars per share) | 0 | ||
Nonvested, ending balance (in dollars per share) | $ 11.55 | $ 10.83 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Restricted-Based Share Activity (Details) - Restricted Stock Units - $ / shares | Dec. 14, 2020 | Dec. 04, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Restricted Shares | |||||
Granted (in shares) | 1,000,000 | 8,000,000 | 800,000 | ||
Weighted Average Grant-Date Fair Value | |||||
Granted (in dollars per share) | $ 14.42 | $ 10.90 | $ 9.95 | ||
2021-2023 Long Term Incentive Plan | |||||
Restricted Shares | |||||
Nonvested, beginning balance (in shares) | 5,443,197 | ||||
Granted (in shares) | 120,000 | 1,464,305 | |||
Forfeited (in shares) | (396,086) | ||||
Vested (in shares) | (17,000) | (2,141,337) | |||
Nonvested, ending balance (in shares) | 4,370,079 | 5,443,197 | |||
Weighted Average Grant-Date Fair Value | |||||
Nonvested, beginning balance (in dollars per share) | $ 10.95 | ||||
Granted (in dollars per share) | $ 10.96 | $ 11.43 | 16.71 | ||
Forfeited (in dollars per share) | 11.88 | ||||
Vested (in dollars per share) | 11.59 | ||||
Nonvested, ending balance (in dollars per share) | $ 11.72 | $ 10.95 |
Share-Based Compensation - Ad_2
Share-Based Compensation - Additional Share Based Compensation Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Total intrinsic value of options exercised and shares vested | $ 35 | $ 41 | $ 21 |
Fair value of shares vested | 25 | 42 | 23 |
Cash received from share award exercises | 0 | 0 | 0 |
Tax benefit of options exercised and shares vested | $ 0 | $ 0 | $ 0 |
Earnings per Share - Computatio
Earnings per Share - Computation of Basic EPS and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basic: | |||
Net income (loss) attributable to CNH Industrial | $ 1,723 | $ (493) | $ 1,422 |
Weighted average common shares outstanding—basic (in shares) | 1,354 | 1,351 | 1,352 |
Basic earnings (loss) per share (in dollars per share) | $ 1.27 | $ (0.36) | $ 1.05 |
Diluted: | |||
Net income (loss) attributable to CNH Industrial | $ 1,723 | $ (493) | $ 1,422 |
Weighted average common shares outstanding—basic (in shares) | 1,354 | 1,351 | 1,352 |
Effect of dilutive securities (when dilutive): | |||
Stock compensation plans (in shares) | 7 | 0 | 2 |
Weighted average common shares outstanding—diluted (in shares) | 1,361 | 1,351 | 1,354 |
Diluted earnings (loss) per share (in dollars per share) | $ 1.27 | $ (0.36) | $ 1.05 |
Earnings per Share - Antidiluti
Earnings per Share - Antidilutive Securities (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities (in shares) | 60 | 1,200 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Unrealized gain (loss) on cash flow hedges | |||
Gross Amount | $ 2 | $ 57 | $ (42) |
Income Taxes | (13) | (9) | 10 |
Net Amount | (11) | 48 | (32) |
Changes in retirement plans’ funded status | |||
Gross Amount | 109 | (10) | (115) |
Income Taxes | (15) | 7 | 3 |
Net Amount | 94 | (3) | (112) |
Foreign currency translation | |||
Gross Amount | 247 | (735) | 71 |
Income Taxes | 0 | 0 | 0 |
Net Amount | 247 | (735) | 71 |
Share of other comprehensive loss of entities using the equity method | |||
Gross Amount | (93) | 20 | (8) |
Income Taxes | 0 | 0 | 0 |
Net Amount | (93) | 20 | (8) |
Other comprehensive income (loss) | |||
Gross Amount | 265 | (668) | (94) |
Income Taxes | (28) | (2) | 13 |
Other comprehensive income (loss), net of tax | $ 237 | $ (670) | $ (81) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Components of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | $ 4,989 | $ 6,121 | $ 5,068 |
Reclassification of certain tax effects | 0 | ||
Ending balance | 6,808 | 4,989 | 6,121 |
Other comprehensive (income) loss allocated to noncontrolling interests | 6 | (4) | 3 |
Unrealized Gain (Loss) on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (6) | (54) | (22) |
Other comprehensive income (loss), before reclassifications | (20) | 74 | (111) |
Reclassification of certain tax effects | 0 | ||
Amounts reclassified from other comprehensive income | 9 | (26) | 79 |
Other comprehensive income (loss) | (11) | 48 | (32) |
Ending balance | (17) | (6) | (54) |
Change in Retirement Plans’ Funded Status | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (653) | (650) | (473) |
Other comprehensive income (loss), before reclassifications | 202 | 143 | (68) |
Reclassification of certain tax effects | (65) | ||
Amounts reclassified from other comprehensive income | (108) | (146) | (44) |
Other comprehensive income (loss) | 94 | (3) | (112) |
Ending balance | (559) | (653) | (650) |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (1,884) | (1,145) | (1,216) |
Other comprehensive income (loss), before reclassifications | 241 | (739) | 71 |
Reclassification of certain tax effects | 0 | ||
Amounts reclassified from other comprehensive income | 0 | 0 | 0 |
Other comprehensive income (loss) | 241 | (739) | 71 |
Ending balance | (1,643) | (1,884) | (1,145) |
Share of Other Comprehensive Income of Entities Using the Equity Method | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (133) | (153) | (148) |
Other comprehensive income (loss), before reclassifications | (93) | 20 | (5) |
Reclassification of certain tax effects | 0 | ||
Amounts reclassified from other comprehensive income | 0 | 0 | 0 |
Other comprehensive income (loss) | (93) | 20 | (5) |
Ending balance | (226) | (133) | (153) |
Total | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (2,676) | (2,002) | (1,859) |
Other comprehensive income (loss), before reclassifications | 330 | (502) | (113) |
Reclassification of certain tax effects | (65) | ||
Amounts reclassified from other comprehensive income | (99) | (172) | 35 |
Other comprehensive income (loss) | 231 | (674) | (78) |
Ending balance | $ (2,445) | $ (2,676) | $ (2,002) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) - Schedule of Reclassifications (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Revenues | $ 33,428 | $ 26,032 | $ 28,079 |
Cost of goods sold | (25,951) | (21,327) | (21,832) |
Other, net | (1,148) | (811) | (924) |
Interest expense | (596) | (678) | (798) |
Income taxes | (342) | 50 | 271 |
Net income (loss) | 1,760 | (438) | $ 1,454 |
Reclassification out of accumulated other comprehensive income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income (loss) | (99) | (172) | |
Reclassification out of accumulated other comprehensive income | Cash flow hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Revenues | (2) | 7 | |
Cost of goods sold | 11 | (31) | |
Other, net | 4 | (6) | |
Interest expense | (3) | 5 | |
Income taxes | (1) | (1) | |
Net income (loss) | 9 | (26) | |
Reclassification out of accumulated other comprehensive income | Change in retirement plans’ funded status | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of actuarial losses | 41 | 47 | |
Amortization of prior service cost | (136) | (130) | |
Reclassification out of accumulated other comprehensive income | Defined benefit plans adjustment including portion attributable to noncontrolling interest | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income taxes | (13) | (63) | |
Net income (loss) | $ (108) | $ (146) |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of segments (in segments) | segment | 5 | ||
Number of industrial segments (in segments) | segment | 4 | ||
Revenues | $ 33,428 | $ 26,032 | $ 28,079 |
U.K | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,033 | 777 | 888 |
Total long-lived assets | 168 | 151 | |
Total Revenues from external customers in the rest of world | |||
Segment Reporting Information [Line Items] | |||
Revenues | 32,395 | 25,255 | $ 27,191 |
Total long-lived assets | $ 10,970 | $ 9,446 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Adjusted EBIT to Net Income for Industrial Activities (Details) - USD ($) $ in Millions | Apr. 16, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||||
Net income (loss) | $ 1,760 | $ (438) | $ 1,454 | |
Income tax benefit (expense) | (342) | 50 | 271 | |
Restructuring expenses | 74 | 49 | 109 | |
Goodwill impairment charge | 0 | 585 | 0 | |
Pre-tax gain from amortization of benefits modification | $ 119 | 119 | 119 | |
Amortization period of deferred reduction to retirement benefits payable | 4 years 6 months | 4 years | ||
Reduction of plan liability | $ (527) | $ (100) | ||
Unallocated items, eliminations, and other | ||||
Segment Reporting Information [Line Items] | ||||
Total Adjusted EBIT of Industrial Activities | (324) | (268) | (145) | |
Industrial Activities | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total Adjusted EBIT of Industrial Activities | 2,114 | 552 | 1,390 | |
Net income (loss) | 2,102 | (488) | 1,183 | |
Interest expense of Industrial Activities, net of interest income and eliminations | (235) | (244) | (282) | |
Foreign exchanges (gains) losses, net of Industrial Activities | (51) | (45) | (56) | |
Finance and non-service component of Pension and OPEB costs | 141 | (14) | (58) | |
Restructuring expenses | (74) | (49) | (105) | |
Goodwill impairment charge | 0 | (585) | 0 | |
Other discrete items of Industrial Activities | (200) | (569) | (187) | |
Nikola investment fair value adjustment | (138) | 134 | 0 | |
Pre-tax non-cash settlement charge | 124 | 112 | ||
Gain on sale of investments | $ 42 | |||
Equity method investment, ownership percentage | 30.10% | |||
Proceeds from divestiture of interest in joint venture | $ 13 | |||
Business combination, separately recognized transactions, additional disclosures, acquisition cost expensed | 187 | |||
Equity, fair value adjustment | 12 | |||
Reinsurance recoverables on paid losses, allowance | 25 | |||
Other asset optimization charges | 165 | |||
Industrial Activities | Operating Segments | Raven Industries, Inc. | ||||
Segment Reporting Information [Line Items] | ||||
Business acquisition, transaction costs | 57 | |||
Industrial Activities | Operating Segments | 2018 Modification of Healthcare Plan | ||||
Segment Reporting Information [Line Items] | ||||
Pre-tax gain from amortization of benefits modification | $ 119 | $ 119 | $ 119 | |
Amortization period of deferred reduction to retirement benefits payable | 4 years 6 months | 4 years 6 months | 4 years 6 months | |
Reduction of plan liability | $ 527 | $ 527 | $ 527 | |
Industrial Activities | Operating Segments | 2021 Modification of Healthcare Plan | ||||
Segment Reporting Information [Line Items] | ||||
Pre-tax gain from amortization of benefits modification | $ 5 | |||
Amortization period of deferred reduction to retirement benefits payable | 4 years | |||
Reduction of plan liability | $ 101 | |||
Agriculture | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill impairment charge | 0 | |||
Agriculture | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total Adjusted EBIT of Industrial Activities | 1,810 | 880 | 897 | |
Construction | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring expenses | 15 | 9 | 18 | |
Goodwill impairment charge | 585 | |||
Construction | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total Adjusted EBIT of Industrial Activities | 90 | (184) | 51 | |
Commercial and Specialty Vehicles | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill impairment charge | 0 | |||
Commercial and Specialty Vehicles | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total Adjusted EBIT of Industrial Activities | 282 | (109) | 224 | |
Powertrain | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring expenses | 2 | 16 | 7 | |
Goodwill impairment charge | 0 | |||
Powertrain | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total Adjusted EBIT of Industrial Activities | 256 | 233 | 363 | |
Financial Services | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill impairment charge | 0 | |||
Financial Services | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | 420 | 249 | 361 | |
Income tax benefit (expense) | $ (125) | $ (83) | $ (120) |
Segment Reporting - Key Informa
Segment Reporting - Key Information for Financial Services Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Net income | $ 1,723 | $ (493) | $ 1,422 |
Interest revenue | 1,806 | 1,747 | 1,930 |
Interest expense | 596 | 678 | 798 |
Financial Services | |||
Segment Reporting Information [Line Items] | |||
Net income | 420 | 249 | 361 |
Interest revenue | 1,079 | 1,123 | 1,248 |
Interest expense | $ 425 | $ 510 | $ 597 |
Segment Reporting - Revenue fro
Segment Reporting - Revenue from Operating Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 31,622 | $ 24,285 | $ 26,149 |
Total Revenues | 33,428 | 26,032 | 28,079 |
Depreciation and amortization | 611 | 630 | 660 |
Expenditures for long-lived assets | 714 | 484 | 637 |
Industrial Activities | |||
Segment Reporting Information [Line Items] | |||
Net sales | 31,622 | 24,285 | 26,149 |
Depreciation and amortization | 608 | 627 | 657 |
Expenditures for long-lived assets | 706 | 481 | 633 |
Industrial Activities | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 31,622 | 24,285 | 26,149 |
Industrial Activities | Eliminations and other | |||
Segment Reporting Information [Line Items] | |||
Net sales | (2,759) | (1,858) | (2,134) |
Industrial Activities | Other activities and adjustments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 1 | 2 | 2 |
Expenditures for long-lived assets | 0 | 2 | 1 |
Agriculture | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 254 | 248 | 281 |
Expenditures for long-lived assets | 307 | 185 | 232 |
Agriculture | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 14,721 | 10,923 | 10,959 |
Construction | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 38 | 46 | 55 |
Expenditures for long-lived assets | 53 | 42 | 46 |
Construction | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,081 | 2,170 | 2,768 |
Commercial and Specialty Vehicles | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 196 | 211 | 195 |
Expenditures for long-lived assets | 218 | 160 | 258 |
Commercial and Specialty Vehicles | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 12,160 | 9,421 | 10,439 |
Powertrain | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 119 | 120 | 124 |
Expenditures for long-lived assets | 128 | 92 | 96 |
Powertrain | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 4,419 | 3,629 | 4,117 |
Financial Services | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 3 | 3 | 3 |
Expenditures for long-lived assets | 8 | 3 | 4 |
Financial Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 1,870 | 1,823 | 2,011 |
Financial Services | Eliminations and other | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | $ (64) | $ (76) | $ (81) |
Segment Reporting - Revenue by
Segment Reporting - Revenue by Geographical Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 33,428 | $ 26,032 | $ 28,079 |
United States | |||
Segment Reporting Information [Line Items] | |||
Revenues | 6,600 | 5,191 | 5,610 |
Italy | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,261 | 2,673 | 3,253 |
France | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,344 | 2,840 | 3,030 |
Brazil | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,164 | 1,937 | 2,105 |
Germany | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,148 | 1,765 | 1,875 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,373 | 941 | 1,087 |
Australia | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,074 | 824 | 739 |
Spain | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,036 | 751 | 987 |
Argentina | |||
Segment Reporting Information [Line Items] | |||
Revenues | 791 | 522 | 509 |
Poland | |||
Segment Reporting Information [Line Items] | |||
Revenues | 845 | 576 | 604 |
Others Countries | |||
Segment Reporting Information [Line Items] | |||
Revenues | 8,759 | 7,235 | 7,392 |
Total Revenues from external customers in the rest of world | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 32,395 | $ 25,255 | $ 27,191 |
Segment Reporting - Long-lived
Segment Reporting - Long-lived Assets by Geographical Segments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 5,807 | $ 4,110 |
Italy | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 1,503 | 1,444 |
France | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 685 | 738 |
Germany | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 587 | 601 |
Spain | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 615 | 717 |
Canada | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 568 | 149 |
Brazil | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 203 | 217 |
China | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 141 | 571 |
Others Countries | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 861 | 899 |
Total Revenues from external customers in the rest of world | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 10,970 | $ 9,446 |
Related Party Information - Add
Related Party Information - Additional Information (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
EXOR N.V | Subsequent Event | |||
Related Party Transaction [Line Items] | |||
Percentage of common shares outstanding held by related parties | 42.50% | ||
IVECO-OTO MELARA Societa Consortile | |||
Related Party Transaction [Line Items] | |||
Pledged guarantees on commitments | $ 211 | $ 259 | |
CNH Industrial Capital Europe S.A.S. | |||
Related Party Transaction [Line Items] | |||
Pledged guarantees on commitments | $ 304 | $ 323 |
Related Party Information - Sch
Related Party Information - Schedule of Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
FCA | |||
Related Party Transaction [Line Items] | |||
Net sales | $ 415 | $ 599 | $ 719 |
Cost of goods sold | 269 | 212 | 319 |
Selling, general and administrative expenses | 138 | 127 | 147 |
Trade receivables | 4 | 8 | |
Trade payables | 72 | 85 | |
Subsidiaries and Affiliates | |||
Related Party Transaction [Line Items] | |||
Net sales | 1,097 | 1,076 | 911 |
Cost of goods sold | 518 | 412 | $ 514 |
Trade receivables | 16 | 170 | |
Trade payables | $ 129 | $ 98 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event € in Millions | Mar. 01, 2022EUR (€) |
Subsequent Event [Line Items] | |
Common shares repurchased, amount | € 100 |
Stock repurchase program, purchase percentage | 10.00% |