Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2022 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Entity Registrant Name | CNH Industrial N.V. |
Entity Central Index Key | 0001567094 |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 2,855 | $ 5,044 |
Restricted cash | 729 | 801 |
Trade receivables, net | 187 | 192 |
Financing receivables, net | 16,537 | 15,376 |
Receivables from Iveco Group N.V. | 281 | 0 |
Inventories, net | 5,473 | 4,216 |
Property, plant and equipment, net | 1,429 | 1,475 |
Investments in unconsolidated subsidiaries and affiliates | 319 | 333 |
Equipment under operating leases | 1,614 | 1,738 |
Goodwill, net | 3,259 | 3,210 |
Other intangible assets, net | 1,176 | 1,207 |
Deferred tax assets | 390 | 421 |
Derivative assets | 237 | 182 |
Other assets | 1,162 | 1,675 |
Assets held for distribution | 0 | 13,546 |
Total Assets | 35,648 | 49,416 |
LIABILITIES AND EQUITY | ||
Debt | 20,817 | 20,897 |
Payables to Iveco Group N.V. | 73 | 502 |
Trade payables | 3,603 | 3,530 |
Deferred tax liabilities | 116 | 125 |
Pension, postretirement and other postemployment benefits | 580 | 675 |
Derivative liabilities | 326 | 181 |
Other liabilities | 4,290 | 4,761 |
Liabilities held for distribution | 0 | 11,892 |
Total Liabilities | 29,805 | 42,563 |
Redeemable noncontrolling interest | 49 | 45 |
Common shares, €0.01, par value; outstanding 1,353,386,326 common shares and 371,077,277 loyalty program special voting shares at 6/30/2022; and outstanding 1,356,077,000 common shares and 371,218,250 loyalty program special voting shares at 12/31/2021 | 25 | 25 |
Treasury stock, at cost; 11,013,870 common shares at 6/30/2022 and 8,323,196 common shares at 12/31/2021 | (121) | (84) |
Additional paid in capital | 1,456 | 4,464 |
Retained earnings | 6,751 | 4,818 |
Accumulated other comprehensive loss | (2,323) | (2,445) |
Noncontrolling interests | 6 | 30 |
Total Equity | 5,794 | 6,808 |
Total Liabilities and Equity | $ 35,648 | $ 49,416 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - € / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common shares, par value (in eur per share) | € 0.01 | € 0.01 |
Common shares, shares outstanding (in shares) | 1,353,386,326 | 1,356,077,000 |
Special voting shares, shares outstanding (in shares) | 371,077,277 | 371,218,250 |
Treasury stock, shares (in shares) | 11,013,870 | 8,323,196 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues | ||||
Net sales | $ 5,613 | $ 4,778 | $ 9,793 | $ 8,472 |
Finance, interest and other income | 469 | 396 | 934 | 798 |
Total Revenues | 6,082 | 5,174 | 10,727 | 9,270 |
Costs and Expenses | ||||
Cost of goods sold | 4,377 | 3,716 | 7,663 | 6,612 |
Selling, general and administrative expenses | 424 | 355 | 802 | 674 |
Research and development expenses | 212 | 164 | 396 | 296 |
Restructuring expenses | 6 | 5 | 8 | 6 |
Interest expense | 162 | 137 | 300 | 290 |
Other, net | 148 | 156 | 331 | 298 |
Total Costs and Expenses | 5,329 | 4,533 | 9,500 | 8,176 |
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | 753 | 641 | 1,227 | 1,094 |
Income tax (expense) benefit | (228) | (152) | (387) | (268) |
Equity in income of unconsolidated subsidiaries and affiliates | 27 | 25 | 48 | 51 |
Net income (loss) from continuing operations | 552 | 514 | 888 | 877 |
Net income (loss) from discontinued operations | 0 | 185 | 0 | 247 |
Net income | 552 | 699 | 888 | 1,124 |
Net income attributable to noncontrolling interests | 4 | 9 | 7 | 26 |
Net income (loss) attributable to CNH Industrial N.V. | $ 548 | $ 690 | $ 881 | $ 1,098 |
Basic earnings (loss) per share attributable to common shareholders | ||||
Continuing operations ( in usd per share) | $ 0.40 | $ 0.38 | $ 0.65 | $ 0.64 |
Discontinued operations (in usd per share) | 0 | 0.13 | 0 | 0.17 |
Basic (in usd per share) | 0.40 | 0.51 | 0.65 | 0.81 |
Diluted earnings (loss) per share attributable to common shareholders | ||||
Continuing operations (in usd per share) | 0.40 | 0.38 | 0.65 | 0.64 |
Discontinued operations (in usd per share) | 0 | 0.13 | 0 | 0.17 |
Diluted (in usd per share) | $ 0.40 | $ 0.51 | $ 0.65 | $ 0.81 |
Earnings Per Share [Abstract] | ||||
Weighted average common shares outstanding—basic (in shares) | 1,355 | 1,354 | 1,355 | 1,354 |
Weighted average common shares outstanding—diluted (in shares) | 1,360 | 1,361 | 1,360 | 1,360 |
Cash dividends declared per common share (in usd per share) | $ 0.302 | $ 0.132 | $ 0.302 | $ 0.132 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 552 | $ 699 | $ 888 | $ 1,124 |
Other comprehensive income (loss), net of tax | ||||
Unrealized gain (loss) on cash flow hedges | 16 | (53) | (79) | (73) |
Changes in retirement plans’ funded status | (25) | (17) | (50) | (34) |
Foreign currency translation | 72 | 106 | 331 | 206 |
Share of other comprehensive income (loss) of entities using the equity method | (20) | 2 | (29) | (21) |
Other comprehensive income, net of tax | 43 | 38 | 173 | 78 |
Comprehensive income | 595 | 737 | 1,061 | 1,202 |
Less: Comprehensive income attributable to noncontrolling interests | 3 | 9 | 6 | 28 |
Comprehensive income (loss) attributable to CNH Industrial N.V. | $ 592 | $ 728 | $ 1,055 | $ 1,174 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating activities: | ||
Net income | $ 888 | $ 1,124 |
Less: Net income (loss) from discontinued operations | 0 | 247 |
Net income (loss) from continuing operations | 888 | 877 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization expense, net of depreciation and amortization of assets under operating leases | 167 | 147 |
Depreciation and amortization expense of assets under operating leases | 105 | 123 |
(Gain) loss on disposal of assets | 16 | 0 |
Loss on repurchase of notes | 0 | 8 |
Undistributed income (loss) of unconsolidated subsidiaries | (13) | 11 |
Other non-cash items | 89 | 46 |
Changes in operating assets and liabilities: | ||
Provisions | (51) | 91 |
Deferred income taxes | 27 | 6 |
Trade and financing receivables related to sales, net | (963) | (495) |
Inventories, net | (1,164) | (620) |
Trade payables | 56 | 484 |
Other assets and liabilities | (315) | 123 |
Cash flow from operating activities discontinued operation | 0 | 570 |
Net cash provided by (used in) operating activities | (1,158) | 1,371 |
Investing activities: | ||
Additions to retail receivables | (2,703) | (2,384) |
Collections of retail receivables | 2,392 | 2,377 |
Proceeds from the sale of assets, net of assets under operating leases | 2 | 12 |
Expenditures for property, plant and equipment and intangible assets, net of assets under operating leases | (139) | (106) |
Expenditures for assets under operating leases | (252) | (235) |
Other | (300) | (276) |
Cash flow from investing activities discontinued operation | 0 | (153) |
Net cash used in investing activities | (1,000) | (765) |
Financing activities: | ||
Proceeds from long-term debt | 5,212 | 4,821 |
Payments of long-term debt | (4,888) | (5,533) |
Net increase (decrease) in other financial liabilities | 203 | (216) |
Dividends paid | (415) | (183) |
Other | (40) | 0 |
Cash flow from financing activities discontinued operation | 0 | (370) |
Net cash provided by (used in) financing activities | 72 | (1,481) |
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash | (175) | (170) |
Increase (decrease) in cash and cash equivalents and restricted cash | (2,261) | (1,045) |
Cash and cash equivalents and restricted cash, beginning of year | 5,845 | 9,629 |
Cash and cash equivalents and restricted cash, end of period | 3,584 | 8,584 |
Cash and cash equivalents and restricted cash, end of period (discontinued operation) | 0 | 680 |
Cash and cash equivalents and restricted cash, end of period (continuing operations) | $ 3,584 | $ 7,904 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Previously Reported | Revision of Prior Period, Adjustment | Revision of Prior Period, Adjusted | Common Shares | Common Shares Previously Reported | Common Shares Revision of Prior Period, Adjusted | Treasury Stock | Treasury Stock Previously Reported | Treasury Stock Revision of Prior Period, Adjusted | Additional Paid-in Capital | Additional Paid-in Capital Previously Reported | Additional Paid-in Capital Revision of Prior Period, Adjustment | Additional Paid-in Capital Revision of Prior Period, Adjusted | Retained Earnings | Retained Earnings Previously Reported | Retained Earnings Revision of Prior Period, Adjustment | Retained Earnings Revision of Prior Period, Adjusted | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Previously Reported | Accumulated Other Comprehensive Income (Loss) Revision of Prior Period, Adjustment | Accumulated Other Comprehensive Income (Loss) Revision of Prior Period, Adjusted | Noncontrolling Interests | Noncontrolling Interests Previously Reported | Noncontrolling Interests Revision of Prior Period, Adjustment | Noncontrolling Interests Revision of Prior Period, Adjusted | Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest Previously Reported | Redeemable Noncontrolling Interest Revision of Prior Period, Adjusted |
Beginning balance at Dec. 31, 2020 | $ 4,989 | $ 25 | $ (109) | $ 4,388 | $ 3,279 | $ (2,676) | $ 82 | ||||||||||||||||||||||
Beginning balance, redeemable noncontrolling interests at Dec. 31, 2020 | $ 40 | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
Net income | 423 | 408 | 15 | ||||||||||||||||||||||||||
Net income, redeemable non controlling interests | 2 | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 40 | 38 | 2 | ||||||||||||||||||||||||||
Dividends paid | (1) | ||||||||||||||||||||||||||||
Common shares issued from treasury stock and capital increase for share-based compensation | 4 | (4) | |||||||||||||||||||||||||||
Share-based compensation expense | 15 | 15 | |||||||||||||||||||||||||||
Other changes | (2) | (2) | |||||||||||||||||||||||||||
Ending balance at Mar. 31, 2021 | 5,465 | 25 | (105) | 4,397 | 3,687 | (2,638) | 99 | ||||||||||||||||||||||
Ending balance, redeemable noncontrolling interests at Mar. 31, 2021 | 41 | ||||||||||||||||||||||||||||
Beginning balance at Dec. 31, 2020 | 4,989 | 25 | (109) | 4,388 | 3,279 | (2,676) | 82 | ||||||||||||||||||||||
Beginning balance, redeemable noncontrolling interests at Dec. 31, 2020 | 40 | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 78 | ||||||||||||||||||||||||||||
Ending balance at Jun. 30, 2021 | 6,030 | 25 | (105) | 4,411 | 4,197 | (2,600) | 102 | ||||||||||||||||||||||
Ending balance, redeemable noncontrolling interests at Jun. 30, 2021 | 44 | ||||||||||||||||||||||||||||
Beginning balance at Mar. 31, 2021 | 5,465 | 25 | (105) | 4,397 | 3,687 | (2,638) | 99 | ||||||||||||||||||||||
Beginning balance, redeemable noncontrolling interests at Mar. 31, 2021 | 41 | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
Net income | 695 | 690 | 5 | ||||||||||||||||||||||||||
Net income, redeemable non controlling interests | 4 | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 38 | 38 | |||||||||||||||||||||||||||
Dividends paid | (181) | (180) | (1) | (1) | |||||||||||||||||||||||||
Share-based compensation expense | 15 | 15 | |||||||||||||||||||||||||||
Other changes | (2) | (1) | 1 | ||||||||||||||||||||||||||
Ending balance at Jun. 30, 2021 | 6,030 | 25 | (105) | 4,411 | 4,197 | (2,600) | 102 | ||||||||||||||||||||||
Ending balance, redeemable noncontrolling interests at Jun. 30, 2021 | 44 | ||||||||||||||||||||||||||||
Beginning balance at Dec. 31, 2021 | 6,808 | $ 6,808 | $ (1,654) | $ 5,154 | $ 25 | $ 25 | $ (84) | $ (84) | $ 4,464 | $ (3,044) | $ 1,420 | $ 4,818 | $ 1,464 | $ 6,282 | $ (2,445) | $ (52) | $ (2,497) | $ 30 | $ (22) | $ 8 | |||||||||
Beginning balance, redeemable noncontrolling interests at Dec. 31, 2021 | 45 | $ 45 | $ 45 | ||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
Net income | 333 | 333 | |||||||||||||||||||||||||||
Net income, redeemable non controlling interests | 3 | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 130 | 130 | |||||||||||||||||||||||||||
Dividends paid | (1) | ||||||||||||||||||||||||||||
Acquisition of treasury stock | (21) | (21) | |||||||||||||||||||||||||||
Share-based compensation expense | 18 | 18 | |||||||||||||||||||||||||||
Other changes | (5) | (4) | (1) | ||||||||||||||||||||||||||
Ending balance at Mar. 31, 2022 | 5,609 | 25 | (105) | 1,434 | 6,615 | (2,367) | 7 | ||||||||||||||||||||||
Ending balance, redeemable noncontrolling interests at Mar. 31, 2022 | 47 | ||||||||||||||||||||||||||||
Beginning balance at Dec. 31, 2021 | 6,808 | $ 6,808 | $ (1,654) | $ 5,154 | $ 25 | $ 25 | $ (84) | $ (84) | $ 4,464 | $ (3,044) | $ 1,420 | $ 4,818 | $ 1,464 | $ 6,282 | $ (2,445) | $ (52) | $ (2,497) | $ 30 | $ (22) | $ 8 | |||||||||
Beginning balance, redeemable noncontrolling interests at Dec. 31, 2021 | 45 | $ 45 | $ 45 | ||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 173 | ||||||||||||||||||||||||||||
Ending balance at Jun. 30, 2022 | 5,794 | 25 | (121) | 1,456 | 6,751 | (2,323) | 6 | ||||||||||||||||||||||
Ending balance, redeemable noncontrolling interests at Jun. 30, 2022 | 49 | 49 | |||||||||||||||||||||||||||
Beginning balance at Mar. 31, 2022 | 5,609 | 25 | (105) | 1,434 | 6,615 | (2,367) | 7 | ||||||||||||||||||||||
Beginning balance, redeemable noncontrolling interests at Mar. 31, 2022 | 47 | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
Net income | 548 | 548 | |||||||||||||||||||||||||||
Net income, redeemable non controlling interests | 4 | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 43 | 44 | (1) | ||||||||||||||||||||||||||
Dividends paid | (412) | (412) | (2) | ||||||||||||||||||||||||||
Acquisition of treasury stock | (19) | (19) | |||||||||||||||||||||||||||
Common shares issued from treasury stock and capital increase for share-based compensation | 3 | (3) | |||||||||||||||||||||||||||
Share-based compensation expense | 21 | 21 | |||||||||||||||||||||||||||
Other changes | 4 | 4 | |||||||||||||||||||||||||||
Ending balance at Jun. 30, 2022 | 5,794 | $ 25 | $ (121) | $ 1,456 | $ 6,751 | $ (2,323) | $ 6 | ||||||||||||||||||||||
Ending balance, redeemable noncontrolling interests at Jun. 30, 2022 | $ 49 | $ 49 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION CNH Industrial N.V. (“CNH Industrial” or the “Company”) is incorporated in, and under the laws of the Netherlands. CNH Industrial has its corporate seat in Amsterdam, the Netherlands, and its principal office in London, England, United Kingdom. The Company was formed on September 29, 2013 as a result of the business combination transaction between Fiat Industrial S.p.A. (“Fiat Industrial”) and its majority owned subsidiary CNH Global N.V. (“CNH Global”). Unless otherwise indicated or the context otherwise requires, the terms “CNH Industrial” and the “Company” refer to CNH Industrial and its subsidiaries. The condensed consolidated financial statements of CNH Industrial N.V. and its consolidated subsidiaries have been voluntarily prepared by the Company without audit. Although prepared on a voluntary basis, the condensed consolidated financial statements included in the report comply in all material respects with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) governing interim financial statements. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted as permitted by such rules and regulations. All adjustments, consisting only of normal recurring adjustments, have been included. Management believes that the disclosures are adequate to present fairly the financial position, results of operations, and cash flows at the dates and for the periods presented. These interim financial statements should be read in conjunction with the financial statements and the notes thereto appearing in the Company’s annual report on Form 20-F for the year ended December 31, 2021. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and related accompanying notes and disclosures. 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 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. Certain financial information in this report has been presented by geographic area. Beginning January 1, 2022, our geographical regions are: (1) North America; (2) Europe, Middle East and Africa; (3) South America and (4) Asia Pacific. Prior amounts have been conformed to these regions. The geographic designations have the following meanings: • North America : United States, Canada, and Mexico; • Europe, Middle East, and Africa : member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine, Balkans, Russia, Turkey, the African continent, and the Middle East; • South America : Central and South America, and the Caribbean Islands; and • Asia Pacific : Continental Asia (including the Indian subcontinent) and Oceania Discontinued Operations 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 demerger under Dutch law to Iveco Group N.V. (the "Demerger") and Iveco Group N.V. (the "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. The On-Highway Business' financial results for the periods prior to the demerger have been reflected in our Condensed Consolidated Statement of Operations, retrospectively, as discontinued operations. Additionally, the related assets and liabilities associated with the On-Highway Business are classified as discontinued operations within Assets Held for Distribution and Liabilities Held for Distribution in the prior year of the Condensed Consolidated Balance Sheet. Pursuant to the terms of the deeds of demerger entered into between CNH Industrial N.V. and Iveco Group N.V. on January 1, 2022, assets related to the On-Highway Business were transferred to, and liabilities related to the On-Highway Business were retained or assumed by, Iveco Group N.V. In order to present the financial effects of a Discontinued Operation, revenues and expenses arising from intercompany transactions were eliminated. Eliminations from transactions between Continuing and Discontinued Operations are allocated in full to Discontinued Operations. However, no profit or loss is recognized for intercompany transactions within the Condensed Consolidated Statement of Operations. The amounts of income statement items included in Discontinued Operations is detailed in the following sections. Intercompany transactions between Continuing and Discontinued Operations have been eliminated in the consolidated statement of financial position. The net balance between Assets held for distribution and Liabilities held for distribution represents the net equity of the Discontinued Operations. This amount corresponds to the reduction in the total equity of CNH Industrial due to the Demerger that occurred on January 1, 2022. All cash flows from Discontinued Operations are reported in the appropriate items for operating activities, investing activities and financing activities in the Statement of Cash Flows. The cash flows represent those arising from transactions with third parties. The following table presents the assets and liabilities of the Iveco Group Business classified as Assets Held for Distribution and Liabilities Held for Distribution: December 31, 2021 (in millions) ASSETS HELD FOR DISTRIBUTION Cash and cash equivalents $ 961 Restricted cash 55 Trade receivables, net 165 Financing receivables, net 3,284 Inventories, net 3,005 Property, plant and equipment, net 3,221 Investments in unconsolidated subsidiaries and affiliates 613 Equipment under operating leases 66 Goodwill, net 80 Other intangible assets, net 141 Deferred tax assets 1,059 Other assets 896 Total Assets Held for Distribution $ 13,546 LIABILITIES HELD FOR DISTRIBUTION Debt 2,343 Trade payables 3,366 Deferred tax liabilities 14 Pension, postretirement and other postemployment benefits 560 Other liabilities 5,609 Total Liabilities Held for Distribution $ 11,892 Details of Statement of Operations line items included in Discontinued Operations, after the eliminations, for three and six months ended June 30, 2021 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2021 (in millions) Revenues Net sales $ 3,962 $ 7,532 Finance, interest and other income 43 92 Total Revenues $ 4,005 $ 7,624 Costs and Expenses Cost of goods sold 3,401 6,459 Selling, general and administrative expenses 267 488 Research and development expenses 165 296 Restructuring expenses 3 4 Interest expense 28 57 Other, net (75) — Total Costs and Expenses $ 3,789 $ 7,304 Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates 216 320 Income tax (expense) benefit (36) (77) Equity in income of unconsolidated subsidiaries and affiliates 5 4 Net Income (loss) from discontinued operations $ 185 $ 247 Cash flows from Discontinued Operations from the six months ended June 30, 2021 are as follows: Six Months Ended June 30, 2021 (in millions) Operating activities: Net income (loss) of discontinued operations $ 247 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization expense, net of depreciation and amortization of assets under operating leases and assets sold under buy-back commitments 159 Depreciation and amortization expense of assets under operating leases and assets sold under buy-back commitments 148 Loss on disposal of assets 2 Loss on repurchase of notes — Undistributed income of unconsolidated subsidiaries 16 Other non-cash items (48) Changes in operating assets and liabilities: Provisions 60 Deferred income taxes (7) Trade and financing receivables related to sales, net 151 Inventories, net (585) Trade payables 322 Other assets and liabilities 105 Cash flow from operating activities of discontinued operation $ 570 Investing activities: Additions to retail receivables (14) Collections of retail receivables 20 Proceeds from the sale of assets, net of assets under operating leases and assets sold under buy-back commitments 1 Expenditures for property, plant and equipment and intangible assets, net of assets under operating leases and assets sold under buy-back commitments (97) Expenditures for assets under operating leases and assets sold under buy-back commitments (371) Other 308 Cash flow provided by (used in) investing activities of discontinued operation $ (153) Financing activities: Proceeds from long-term debt 1,566 Payments of long-term debt (2,068) Net decrease in other financial liabilities 132 Dividends paid — Cash flow from financing activities of discontinued operation $ (370) Business Combinations On November 30, 2021, CNH Industrial acquired Raven Industries, Inc. ("Raven"). Raven included three business divisions: Applied Technology, Engineered Films and Aerostar. The acquisition of Raven has been accounted for as a business combination using the acquisition method of accounting. At December 31, 2021, 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 valuation of assets acquired and liabilities assumed has not yet been finalized as of June 30, 2022. Applied Technology results for the three and six months ended June 30, 2022 are included in the Company's Agriculture segment. As of June 30, 2022, the Engineered Films Division has been sold and as of July 31, 2022, the Aerostar division has been sold. During the second quarter, we recorded certain measurement period adjustments as we further refined certain valuations and recorded the sale of the Engineered Films Division. On December 30, 2021, CNH Industrial completed its previously announced purchase of 90% capital stock of Sampierana S.p.A. ("Sampierana"). At December 31, 2021, CNH Industrial had 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 valuation of assets acquired and liabilities assumed has not yet been finalized as of June 30, 2022 and no measurement period adjustments have been recorded in the three months ended June 30, 2022. The results of Sampierana are included in the Company’s Construction segment. On May 16, 2022, CNH Industrial acquired Specialty Enterprises LLC, a manufacturer of agricultural spray booms and sprayer boom accessories. The results of Specialty Enterprises will be included in the Company’s Agriculture segment. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS Adopted in 2022 None 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 June 30, 2022. 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 (Topic 606) as applied by the acquiree to determine what to record for the acquired revenue contract assets and liabilities instead of at fair value on the acquisition date. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and early adoption is permitted. The Company is currently evaluating the timing of adoption and its impact to our consolidated financial statements. Troubled Debt Restructurings and Vintage Disclosures In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings (TDRs) for creditors in ASC 310-40 and amends the guidance on vintage disclosures to require disclosure of current-period gross write-offs by year of origination. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. Entities can elect to adopt the guidance on TDRs using either a prospective or modified retrospective transition. The amendments related to disclosures should be adopted prospectively. The Company is currently evaluating the impact of adoption to our consolidated financial statements. There are other new accounting pronouncements issued by the FASB that we will adopt. We do not believe any of these accounting pronouncements will have a material impact on our consolidated financial statements. |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The following table summarizes revenues for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, 2022 2021 (in millions) Agriculture $ 4,722 $ 3,970 Construction 891 808 Eliminations and Other — — Total Industrial Activities $ 5,613 $ 4,778 Financial Services 471 392 Eliminations and Other (2) 4 Total Revenues $ 6,082 $ 5,174 Six Months Ended June 30, 2022 2021 (in millions) Agriculture $ 8,099 $ 7,008 Construction 1,694 1,464 Eliminations and Other — — Total Industrial Activities $ 9,793 $ 8,472 Financial Services 937 789 Eliminations and Other (3) 9 Total Revenues $ 10,727 $ 9,270 The following table disaggregates revenues by major source for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, 2022 2021 (in millions) Revenues from: Sales of goods $ 5,604 $ 4,774 Rendering of services and other revenues 9 4 Revenues from sales of goods and services 5,613 4,778 Finance and interest income 271 221 Rents and other income on operating lease 198 175 Finance, interest and other income 469 396 Total Revenues $ 6,082 $ 5,174 Six Months Ended June 30, 2022 2021 (in millions) Revenues from: Sales of goods $ 9,778 $ 8,463 Rendering of services and other revenues 15 9 Revenues from sales of goods and services 9,793 8,472 Finance and interest income 512 445 Rents and other income on operating lease 422 353 Finance, interest and other income 934 798 Total Revenues $ 10,727 $ 9,270 Contract liabilities recorded in Other liabilities were $26 million and $20 million at June 30, 2022 and December 31, 2021, respectively. Contract liabilities primarily relate to extended warranties/maintenance and repair contracts. At June 30, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $21 million ($15 million as of December 31, 2021). The Company expects to recognize revenue on approximately 29% and 87% of the remaining performance obligations over the next 12 and 36 months, respectively (approximately 30% and 89% as of December 31, 2021), with the remaining recognized thereafter. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES The Company consolidates various securitization trusts and facilities that have been determined to be variable interest entities (“VIEs”) and of which the Company is a primary beneficiary. The Company has both the power to direct the activities of the VIEs 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. For further information regarding VIEs, please see “Note 9: Receivables.” The following table presents certain assets and liabilities of consolidated VIEs, which are included in the condensed consolidated balance sheets included in this report. The assets in the table below include only those assets that can be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third party liabilities of the consolidated VIEs for which creditors do not have recourse to the general credit of the Company. June 30, 2022 December 31, 2021 (in millions) Restricted cash $ 709 $ 736 Financing receivables 8,926 8,838 Total Assets $ 9,635 $ 9,574 Debt $ 8,632 $ 8,528 Total Liabilities $ 8,632 $ 8,528 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The Company’s basic earnings per share (“EPS”) is computed by dividing net income 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. Stock options, restricted stock units and performance stock units are considered dilutive securities. A reconciliation of basic and diluted earnings per share is as follows (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income attributable to CNH Industrial $ 548 $ 690 $ 881 $ 1,098 Net income (loss) attributable to CNH Industrial from continuing operations $ 548 $ 513 $ 881 $ 873 Net income (loss) attributable to CNH Industrial from discontinued operations $ — $ 177 $ — $ 225 Basic earnings (loss) per share attributable to common shareholders: Weighted average common shares outstanding—basic (in millions) 1,355 1,354 1,355 1,354 Continuing operations $ 0.40 $ 0.38 $ 0.65 $ 0.64 Discontinued operations $ — $ 0.13 $ — $ 0.17 Basic earnings per share attributable to CNH Industrial N.V. $ 0.40 $ 0.51 $ 0.65 $ 0.81 Diluted earnings (loss) per share attributable to common shareholders Weighted average common shares outstanding—basic (in millions) 1,355 1,354 1,355 1,354 Stock compensation plans (1) (in millions) 5 7 5 6 Weighted average common shares outstanding—diluted (in millions) 1,360 1,361 1,360 1,360 Continuing operations $ 0.40 $ 0.38 $ 0.65 $ 0.64 Discontinued operations $ — $ 0.13 $ — $ 0.17 Diluted earnings per share attributable to CNH Industrial N.V. $ 0.40 $ 0.51 $ 0.65 $ 0.81 |
EMPLOYEE BENEFIT PLANS AND POST
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS | 6 Months Ended |
Jun. 30, 2022 | |
Postemployment Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS | EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS The following table summarizes the components of net periodic benefit cost of CNH Industrial’s defined benefit pension plans and postretirement health and life insurance plans for the three and six months ended June 30, 2022 and 2021: Pension Healthcare Other Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, 2022 2021 2022 2021 2022 2021 (in millions) Service cost $ 3 $ 4 $ 1 $ 1 $ 1 $ 1 Interest cost 7 4 2 2 — — Expected return on assets (12) (14) (2) (1) — — Amortization of: Prior service credit — — (32) (34) — — Actuarial loss 5 7 1 — — 1 Net periodic benefit cost $ 3 $ 1 $ (30) $ (32) $ 1 $ 2 Pension Healthcare Other Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 2022 2021 (in millions) Service cost $ 6 $ 7 $ 2 $ 2 $ 3 $ 3 Interest cost 14 9 3 3 — — Expected return on assets (24) (27) (3) (3) — — Amortization of: Prior service credit — — (63) (68) — — Actuarial loss 10 13 1 1 — 1 Net periodic benefit cost $ 6 $ 2 $ (60) $ (65) $ 3 $ 4 Net amounts recognized in the consolidated balance sheet as of December 31, 2021 consisted of: Pension Healthcare Other December 31, 2021 December 31, 2021 December 31, 2021 (in millions) Other assets $ 40 $ — $ — Pension, postretirement and other postemployment benefits (409) (141) (125) Net liability recognized at end of year $ (369) $ (141) $ (125) 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 Company retirees. On April 16, 2018, CNH Industrial announced its determination to modify the benefits provided to the applicable retirees (“Benefit Modification”) to make them consistent with the benefits provided to current eligible CNH Industrial retirees who had been represented by the UAW. The Benefit Modification resulted in a reduction of the plan liability by $527 million. This amount will be amortized from Other Comprehensive Income ("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 three and six months ended June 30, 2022 and 2021, $30 million and $60 million of amortization (“Benefit Modification 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. For the three and six months ended June 30, 2022, $6 million and $12 million of amortization was recorded as a pre-tax gain in Other, net, respectively. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The effective tax rates for the three months ended June 30, 2022 and 2021 were 30.3% and 23.7%, respectively. The effective tax rates for the six months ended June 30, 2022 and 2021 were 31.5% and 24.5%, respectively. The 2022 effective tax rate for the three months ended June 30, 2022 was negatively impacted by the discrete tax charge from the sale of Raven’s Engineered Films Division which increased the current period effective tax rate by 4.4%. The effective tax rate for the six months ended June 30, 2022 was negatively impacted by an increase in pre-tax losses for which deferred tax benefits were not recognized and the derecognition of certain deferred tax assets, both of which related to Russia. Further, a discrete tax charge related to the sale of Raven’s Engineered Films Division and discrete tax charges associated with unrecognized tax benefits led to a higher effective tax rate for the six months ended June 30, 2022. The impact from the sale of Raven’s Engineered Films Division increased effective tax rate for the six months ended June 30, 2022 by 2.7%. As in all financial reporting periods, the Company assessed the realizability of its deferred tax assets, which relate to multiple tax jurisdictions in all regions of the world. During the six-month period ended June 30, 2022, the Company changed its assessment regarding the recognition of its Russian deferred tax assets as of the beginning of the period. In addition, the Company was unable to recognize deferred tax assets associated with the current year pre-tax losses in that jurisdiction. These two items combined increased the Company’s current period effective tax rate for the six months ended June 30, 2022 by 1.5%. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The operating segments through which the Company manages its operations are based on the internal reporting used by the Company’s Chief Operating Decision Maker (“CODM”) to assess performance and make decisions about resource allocation. The segments are organized based on products and services provided by the Company. CNH Industrial has the following three 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, New Holland Construction and Eurocomach brands. Financial Services provides and administers retail financing to customers for the purchase or lease of new and used agricultural and construction equipment sold by CNH Industrial brand dealers. In addition, Financial Services provides 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 provides trade receivables factoring services to CNH Industrial companies. The European operations of CNH Industrial Financial Services are supported by the Iveco Group's Financial Services segment. CNH Industrial provides financial services to Iveco Group companies in the South America, Asia Pacific and North America regions. The activities carried out by the two industrial segments Agriculture and Construction, 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' inherent 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 to be 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 three and six months ended June 30, 2022 and 2021. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) (in millions) Agriculture $ 663 $ 582 $ 1,089 $ 981 Construction 34 24 66 49 Unallocated items, eliminations and other (43) (34) (72) (65) Total Adjusted EBIT of Industrial Activities $ 654 $ 572 $ 1,083 $ 965 Financial Services Net Income 95 85 177 163 Financial Services Income Taxes 38 26 74 52 Interest expense of Industrial Activities, net of interest income and eliminations (35) (31) (70) (71) Foreign exchange gains (losses), net of Industrial Activities 13 (4) — (15) Finance and non-service component of Pension and other post-employment benefit cost of Industrial Activities (1) 40 35 77 70 Restructuring expense of Industrial Activities (6) (5) (8) (6) Other discrete items of Industrial Activities (2) (19) (12) (58) (13) Income (loss) before taxes $ 780 $ 666 $ 1,275 $ 1,145 Income tax (expense) benefit (228) (152) (387) (268) Net income (loss) of discontinued operations — 185 — 247 Net income (loss) $ 552 $ 699 $ 888 $ 1,124 (1) This item includes a pre-tax gain of $30 million and $60 million in the three and six months ended June 30, 2022 and 2021, respectively, as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the 2018 modification of a healthcare plan in the U.S. and a pre-tax gain of $6 million and $12 million in the three and six months ended June 30, 2022, respectively, 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. (2) In the three and six months ended June 30, 2022, this item included $3 million and $6 million of separation costs incurred in connection with our spin-off of the Iveco Group Business and $16 million and $8 million of loss from the activity of the two Raven businesses held for sale, including the loss on the sale of the Engineered Films Division. In the six month ended June 30, 2022, this item also included $44 million of asset write-downs. In the three and six months ended June 30, 2021, this item includes $8 million and $9 million of separation costs incurred in connection with our spin-off of the Iveco Group Business. |
RECEIVABLES
RECEIVABLES | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
RECEIVABLES | RECEIVABLES Financing Receivables, net A summary of financing receivables as of June 30, 2022 and December 31, 2021 is as follows: June 30, 2022 December 31, 2021 (in millions) Retail $ 10,255 $ 9,955 Wholesale 6,249 5,373 Other 33 48 Total $ 16,537 $ 15,376 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 more than 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 three and six months ended June 30, 2022 and 2021. Interest accrual is resumed if the receivable becomes contractually current and collection becomes probable. Previously suspended income is recognized at such 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 Asia Pacific. The aging of financing receivables as of June 30, 2022 and December 31, 2021 is as follows (in millions): June 30, 2022 31-60 Days 61-90 Days Total Past Current Total Non- Total Retail North America 2022 $ 1,782 $ — $ 1,782 2021 2,614 — 2,614 2020 1,316 — 1,316 2019 667 — 667 2018 369 — 369 Prior to 2018 167 1 168 Total $ 19 $ — $ 19 $ 6,896 $ 6,915 $ 1 $ 6,916 South America 2022 $ 428 $ — $ 428 2021 798 1 799 2020 452 1 453 2019 241 1 242 2018 142 1 143 Prior to 2018 104 — 104 Total $ 34 $ — $ 34 $ 2,131 $ 2,165 $ 4 $ 2,169 Asia Pacific 2022 $ 284 $ — $ 284 2021 428 1 429 2020 253 2 255 2019 108 1 109 2018 54 1 55 Prior to 2018 13 — 13 Total $ 8 $ 10 $ 18 $ 1,122 $ 1,140 $ 5 $ 1,145 Europe, Middle East, Africa $ — $ — $ — $ 8 $ 8 $ 17 $ 25 Total Retail $ 61 $ 10 $ 71 $ 10,157 $ 10,228 $ 27 $ 10,255 Wholesale North America $ — $ — $ — $ 2,699 $ 2,699 $ — $ 2,699 South America — — — 962 962 — 962 Asia Pacific 3 1 4 477 481 6 487 Europe, Middle East, Africa 5 — 5 2,096 2,101 — 2,101 Total Wholesale $ 8 $ 1 $ 9 $ 6,234 $ 6,243 $ 6 $ 6,249 December 31, 2021 31-60 Days 61-90 Days Total Past Current Total Non- 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 Asia Pacific 2021 $ 579 $ — $ 579 2020 357 4 361 2019 167 1 168 2018 99 1 100 2017 45 — 45 Prior to 2017 5 — 5 Total $ 10 $ 8 $ 18 $ 1,234 $ 1,252 $ 6 $ 1,258 Europe, Middle East, Africa $ 4 $ — $ 4 $ 43 $ 47 $ — $ 47 Total Retail $ 28 $ 8 $ 36 $ 9,911 $ 9,947 $ 8 $ 9,955 Wholesale North America $ — $ — $ — $ 2,339 $ 2,339 $ — $ 2,339 South America — — — 633 633 22 655 Asia Pacific 2 1 3 446 449 — 449 Europe, Middle East, Africa 5 1 6 1,924 1,930 — 1,930 Total Wholesale $ 7 $ 2 $ 9 $ 5,342 $ 5,351 $ 22 $ 5,373 Allowance for credit losses (activity) for the three and six months ended June 30, 2022 is as follows (in millions): Three Months Ended June 30, 2022 Retail Wholesale Opening Balance $ 244 $ 74 Provision 14 (4) Charge-offs, net of recoveries (8) (5) Foreign currency translation and other (4) (4) Ending Balance $ 246 $ 61 Six Months Ended June 30, 2022 Retail Wholesale Opening Balance $ 220 $ 65 Provision 26 3 Charge-offs, net of recoveries (9) (5) Foreign currency translation and other 9 (2) Ending Balance $ 246 $ 61 At June 30, 2022 , the allowance for credit losses included an increase in reserves of $15 million for domestic Russian receivables. The Company continues to monitor the situation in Eastern Europe 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. Allowance for credit losses activity for the three and six months ended June 30, 2021 and for the year ended December 31, 2021 is as follows (in millions): Three Months Ended June 30, 2021 Retail Wholesale Opening Balance $ 220 $ 69 Provision 1 — Charge-offs, net of recoveries (3) (1) Foreign currency translation and other 8 5 Ending Balance $ 226 $ 73 Six Months Ended June 30, 2021 Retail Wholesale Opening Balance $ 231 $ 62 Provision 6 4 Charge-offs, net of recoveries (6) (1) Foreign currency translation and other (5) 8 Ending Balance $ 226 $ 73 Twelve Months Ended December 31, 2021 Retail Wholesale Opening Balance $ 231 $ 62 Provision 22 6 Charge-offs, net of recoveries (22) 1 Foreign currency translation and other (11) (4) Ending Balance $ 220 $ 65 At both June 30, 2021 and December 31, 2021, the allowance for credit losses was reduced by a release of reserves primarily due to the improved outlook for the agricultural industry and a reduced expected impact on credit conditions from the COVID-19 pandemic. 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, the Company 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 June 30, 2022 and 2021, the CNH Industrial's retail and wholesale TDRs were immaterial. Transfers of Financial Assets CNH Industrial transfers a number of its financial 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 CNH Industrial's condensed consolidated financial statements because the assets they hold are legally isolated from CNH Industrial's assets. For bankruptcy analysis purposes, CNH Industrial 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. CNH Industrial'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 CNH Industrial'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 CNH Industrial 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 CNH Industrial although CNH Industrial 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, CNH Industrial 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 CNH Industrial 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 Group continues to recognize the receivables transferred by this means in its consolidated statement of financial position and recognizes a financial liability of the same amount under asset-backed financing. At June 30, 2022 and December 31, 2021, the carrying amount of such restricted assets included in financing receivables above are the following (in millions): Restricted Receivables June 30, 2022 December 31, 2021 Retail note and finance lease receivables $ 6,972 $ 6,878 Wholesale receivables 3,921 3,443 Total $ 10,893 $ 10,321 |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories as of June 30, 2022 and December 31, 2021 consist of the following: June 30, 2022 December 31, 2021 (in millions) Raw materials $ 1,972 $ 1,517 Work-in-process 944 570 Finished goods 2,557 2,129 Total inventories $ 5,473 $ 4,216 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2022 | |
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 these leases the Company recognized, on a straight-line basis over the lease term, lease expense of $2 million and $2 million in the three months ended June 30, 2022 and 2021, respectively, and $3 million and $3 million in the six months ended June 30, 2022 and 2021. For the three months ended June 30, 2022 and 2021, the Company incurred operating lease expenses of $19 million and $18 million, respectively, and $35 million and $34 million in the six months ended June 30, 2022 and 2021, respectively. At June 30, 2022, the Company has recorded approximately $226 million of right-of-use assets and $227 million of related lease liability included in Other Assets and Other Liabilities, respectively. At June 30, 2022, the weighted average remaining lease term (calculated on the basis of the remaining lease term and the lease liability balance for each lease) and the weighted average discount rate for operating leases were 6.1 years and 3.6%, respectively. During the six months ended June 30, 2022 and 2021 leased assets obtained in exchange for operating lease obligations were $73 million and $19 million, respectively. The operating cash outflow for amounts included in the measurement of operating lease obligations was $35 million and $34 million as of June 30, 2022 and 2021, respectively. Lessor The Company, primarily through its Financial Services segment, leases equipment 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 is accounted for separately. |
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 these leases the Company recognized, on a straight-line basis over the lease term, lease expense of $2 million and $2 million in the three months ended June 30, 2022 and 2021, respectively, and $3 million and $3 million in the six months ended June 30, 2022 and 2021. For the three months ended June 30, 2022 and 2021, the Company incurred operating lease expenses of $19 million and $18 million, respectively, and $35 million and $34 million in the six months ended June 30, 2022 and 2021, respectively. At June 30, 2022, the Company has recorded approximately $226 million of right-of-use assets and $227 million of related lease liability included in Other Assets and Other Liabilities, respectively. At June 30, 2022, the weighted average remaining lease term (calculated on the basis of the remaining lease term and the lease liability balance for each lease) and the weighted average discount rate for operating leases were 6.1 years and 3.6%, respectively. During the six months ended June 30, 2022 and 2021 leased assets obtained in exchange for operating lease obligations were $73 million and $19 million, respectively. The operating cash outflow for amounts included in the measurement of operating lease obligations was $35 million and $34 million as of June 30, 2022 and 2021, respectively. Lessor The Company, primarily through its Financial Services segment, leases equipment 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 is accounted for separately. |
INVESTMENTS IN UNCONSOLIDATED S
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and December 31, 2021 is as follows: June 30, 2022 December 31, 2021 (in millions) Equity method $ 271 $ 286 Cost method 48 47 Total $ 319 $ 333 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES Changes in the carrying amount of goodwill for the six months ended June 30, 2022 are as follows: Agriculture Construction Financial Total (in millions) Balance at January 1, 2022 $ 3,020 $ 49 $ 141 $ 3,210 Acquisition 43 — — 43 Foreign currency translation and other 10 (4) — 6 Balance at June 30, 2022 $ 3,073 $ 45 $ 141 $ 3,259 Goodwill and other indefinite-lived intangible assets are tested for impairment annually or more frequently if a triggering event occurs that would indicate it is more likely than not that the fair value of a reporting unit is less than book value. CNH Industrial performed its most recent annual impairment review as of December 31, 2021 and concluded that there was no impairment to goodwill for any of the reporting entities. The acquisition of Specialty Enterprises LLC (Specialty) during the second quarter of 2022 led to the increase in Goodwill for Agriculture of $43 million. Goodwill related to the acquisition 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 June 30, 2022. Thus, goodwill associated with the acquisitions is subject to adjustment during the measurement period. 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 June 30, 2022. Thus, goodwill associated with the acquisitions is subject to adjustment during the measurement period. Measurement period adjustments were recorded in the current quarter that increased Goodwill by $10 million for Agriculture, primarily related to updates of certain of the valuations. As of June 30, 2022 and December 31, 2021, the Company’s other intangible assets and related accumulated amortization consisted of the following: June 30, 2022 December 31, 2021 Weighted Gross Accumulated Net Gross Accumulated Net (in millions) Other intangible assets subject to Dealer networks 15 $ 291 $ 237 $ 54 $ 290 $ 231 $ 59 Patents, concessions, licenses and other 5-25 1,966 1,116 850 1,973 1,097 876 2,257 1,353 904 2,263 1,328 935 Other intangible assets not subject to Trademarks 272 — 272 272 — 272 Total Other intangible assets $ 2,529 $ 1,353 $ 1,176 $ 2,535 $ 1,328 $ 1,207 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. The valuation of assets acquired and liabilities assumed has not yet been finalized as of June 30, 2022. Thus, the intangible assets associated with the acquisitions are subject to adjustment during the measurement period. Measurement period adjustments were recorded in the current quarter that increased other intangibles subject to amortization by $20 million primarily related to updates of certain of the valuations. CNH Industrial recorded amortization expense of $34 million and $21 million for the three months ended June 30, 2022 and 2021, respectively, and $66 million and $40 million for the six months ended June 30, 2022 and 2021, respectively. |
OTHER LIABILITIES
OTHER LIABILITIES | 6 Months Ended |
Jun. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LIABILITIES | OTHER LIABILITIES A summary of Other liabilities as of June 30, 2022 and December 31, 2021 is as follows: June 30, 2022 December 31, 2021 (in millions) Warranty and campaign programs $ 484 $ 526 Marketing and sales incentive programs 1,351 1,325 Tax payables 446 671 Accrued expenses and deferred income 493 559 Accrued employee benefits 416 544 Lease liabilities 227 196 Legal reserves and other provisions 208 187 Contract reserve 11 12 Contract liabilities 26 20 Restructuring reserve 26 29 Other 602 692 Total $ 4,290 $ 4,761 Warranty and Campaign Programs CNH Industrial pays for basic warranty and other service action costs. A summary of recorded activity for the three and six months ended June 30, 2022 and 2021 for the basic warranty and accruals for campaign programs are as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) (in millions) Balance at beginning of period $ 501 $ 499 $ 526 $ 507 Current year additions 117 108 185 192 Claims paid (115) (93) (210) (178) Currency translation adjustment and other (19) 12 (17) 5 Balance at end of period $ 484 $ 526 $ 484 $ 526 Restructuring Expense The Company incurred restructuring expenses of $6 million and $5 million during the three months ended June 30, 2022 and 2021, respectively. The Company incurred restructuring expenses of $8 million and $6 million during the six months ended June 30, 2022 and 2021, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
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 CNH Industrial 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 CNH Industrial earnings and included in “Other liabilities” on the condensed consolidated balance sheets. Although the ultimate outcome of legal matters pending against CNH Industrial and its subsidiaries cannot be predicted, CNH Industrial 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 condensed 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 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 June 30, 2022 and December 31, 2021, environmental reserves of approximately $27 million and $29 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 a wholly-controlled subsidiary 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 and 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 defendant in proceedings across Europe. The consummation of the Demerger will not result in CNH Industrial being 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 (directly or indirectly) in a binding 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 where Iveco and IMAG do 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. The Company believes that the risk of either Iveco or IMAG or Iveco Group defaulting on potential payment obligations arising from such follow-up damage claims is remote. FPT Emissions Investigation: on July 22, 2020, a number of FPT Industrial S.p.A.'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., which is a wholly-controlled subsidiary Iveco Group N.V., installed in certain Ducato (a vehicle distributed by Stellantis N.V.) and Iveco Daily vehicles. In certain instances CNH Industrial and other third parties have also received various requests for compensation by German and Austrian customers on various contractual and tort grounds, including requests for damages resulting from 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 other approval regulations regarding emissions. In certain instances, other customers have brought judicial claims on the same legal and factual bases. While the Company had no role in the design and sale of such engine models and vehicles, the Company 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. The Company believes that the risk of either FPT Industrial or Iveco Group N.V. defaulting on potential payment obligations arising from such proceedings is remote. Guarantees CNH Industrial provided guarantees on the debt or commitments of third parties and performance guarantees on non-consolidated affiliates as of June 30, 2022 and December 31, 2021 totaling of $18 million and $15 million, respectively. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2022 | |
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 has not elected the fair value measurement option for eligible items. Fair-Value Hierarchy The hierarchy of valuation techniques for financial instruments is based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair-value hierarchy: Level 1 - Quoted prices for identical instruments in active markets. Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires the use of observable market data when available. Determination of Fair Value When available, the Company uses quoted market prices to determine fair value and classifies such items in Level 1. In some cases where a market price is not available, the Company will use observable market-based inputs to calculate fair value, in which case the items are classified in Level 2. If quoted or observable market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters such as interest rates, currency rates, or yield curves. Items valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable. The following section describes the valuation methodologies used by the Company to measure various financial instruments at fair value, including an indication of the level in the fair value hierarchy in which each instrument is generally classified. Where appropriate, the description includes details of the valuation models, and the key inputs to those models as well as any significant assumptions. Derivatives 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 derivative or other financial instruments for speculative purposes. The credit and market risk related to derivatives is reduced through diversification among various counterparties, utilizing mandatory termination clauses and/or collateral support agreements. Derivative instruments are generally classified as Level 2 in the fair value hierarchy. The cash flows underlying all derivative contracts were recorded in operating activities in the condensed 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. If a derivative instrument is terminated because the hedge relationship is no longer effective or because the hedged item is a forecasted transaction that is no longer determined to be probable, the cumulative amount recorded in accumulated other comprehensive income (loss) is recognized immediately in earnings. Such amounts were insignificant in all periods presented. CNH Industrial also uses forwards and swaps to hedge certain assets and liabilities denominated in foreign currencies. Such derivatives are considered economic hedges and not designated as hedging instruments. The changes in the fair values of these instruments are recognized directly in income in “Other, net” and are expected to offset the foreign exchange gains or losses on the exposures being managed. All of CNH Industrial’s foreign exchange derivatives are considered Level 2 as the fair value is calculated using market data input and can be compared to actively traded derivatives. The total notional amount of CNH Industrial’s foreign exchange derivatives was $6.1 billion and $8.2 billion at June 30, 2022 and December 31, 2021, 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. 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. Net gains and losses on these instruments were insignificant for the three and six months ended June 30, 2022 and 2021. All of CNH Industrial’s interest rate derivatives outstanding as of June 30, 2022 and December 31, 2021 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 $5.5 billion and $6.4 billion at June 30, 2022 and December 31, 2021, 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 June 30, 2022, the notional amount of hedging instruments that could be affected by the reform of benchmark interest rates is $1.3 billion. 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 recognized in accumulated other comprehensive income (loss) and net income (loss) during the three and six months ended June 30, 2022 and 2021 (in millions): Recognized in Net Income For the Three Months Ended June 30, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2022 Foreign exchange contracts $ (21) Net sales 1 Cost of goods sold (41) Other, net 6 Interest rate contracts 13 Interest expense 9 Total $ (8) $ (25) 2021 Foreign exchange contracts $ (55) Net sales (1) Cost of goods sold 2 Other, net 1 Interest rate contracts 5 Interest expense (1) Total $ (50) $ 1 Recognized in Net Income For the Six Months Ended June 30, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2022 Foreign exchange contracts $ (172) Net sales 2 Cost of goods sold (58) Other, net (4) Interest rate contracts 50 Interest expense 17 Total $ (122) $ (43) 2021 Foreign exchange contracts $ (81) Net sales (3) Cost of goods sold 27 Other, net (6) Interest rate contracts 25 Interest expense (3) Total $ (56) $ 15 The following table summarizes the activity in accumulated other comprehensive income related to the derivatives held by the Company during the six months ended June 30, 2022 and 2021: In Millions Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2021 $ (3) $ (14) $ (17) Impact of demerger — — — Net changes in fair value of derivatives (122) 8 (114) Net losses reclassified from accumulated other comprehensive income into income 43 (8) 35 Accumulated derivative net losses as of June 30, 2022 $ (82) $ (14) $ (96) 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 (56) (3) (59) Net losses reclassified from accumulated other comprehensive income into income (15) 1 (14) Accumulated derivative net losses as of June 30, 2021 $ (76) $ (3) $ (79) The following tables summarize the impact that changes in the fair value of fair value hedges and derivatives not designated as hedging instruments had on earnings (in millions): For the Three Months Ended June 30, Classification of Gain (Loss) 2022 2021 Fair Value Hedges Interest rate derivatives Interest expense $ (21) $ (2) Not Designated as Hedges Foreign exchange contracts Other, Net $ — $ (49) For the Six Months Ended June 30, Classification of Gain (Loss) 2022 2021 Fair Value Hedges Interest rate derivatives Interest expense $ (76) $ (23) Not Designated as Hedges Foreign exchange contracts Other, Net $ (47) $ (53) The fair values of CNH Industrial’s derivatives as of June 30, 2022 and December 31, 2021 in the condensed consolidated balance sheets are recorded as follows: June 30, 2022 December 31, 2021 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 89 Derivative assets 65 Foreign currency contracts Derivative assets 52 Derivative assets 77 Total derivative assets designated as hedging instruments 141 142 Interest rate contracts Derivative liabilities 88 Derivative liabilities 28 Foreign currency contracts Derivative liabilities 160 Derivative liabilities 101 Total derivative liabilities designated as hedging instruments 248 129 Derivatives not designated as hedging instruments under Subtopic 815-20 Interest rate contracts Derivative assets 51 Derivative assets 11 Foreign currency contracts Derivative assets 45 Derivative assets 29 Total derivative assets not designated as hedging instruments 96 40 Interest rate contracts Derivative liabilities 51 Derivative liabilities 12 Foreign currency contracts Derivative liabilities 27 Derivative liabilities 40 Total derivative liabilities not designated as hedging instruments 78 52 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 June 30, 2022 and December 31, 2021: Level 1 Level 2 Total June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 (in millions) Assets Foreign exchange derivatives $ — $ — $ 97 $ 106 $ 97 $ 106 Interest rate derivatives — — 140 76 140 76 Total Assets $ — $ — $ 237 $ 182 $ 237 $ 182 Liabilities Foreign exchange derivatives $ — $ — $ 187 $ 141 $ 187 $ 141 Interest rate derivatives — — 139 40 139 40 Total Liabilities $ — $ — $ 326 $ 181 $ 326 $ 181 Items Measured at Fair Value on a Non-Recurring Basis The Company recorded fixed asset write-downs of $17 million related to the suspension of operations in Russia during the six months ended June 30, 2022. The following tables present the fair value for nonrecurring Level 3 measurements from impairments recorded in the quarter ended March 31, 2022. No impairments were recorded in the quarter ended June 30, 2022. Fair Value Losses 2022 2021 2022 2021 (in millions) Property, plant and equipment $ 7 $ — $ 17 $ — 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. 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 condensed 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 condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021 are as follows: June 30, 2022 December 31, 2021 Carrying Fair Carrying Fair (in millions) Financing receivables $ 16,537 $ 16,304 $ 15,376 $ 15,605 Debt $ 20,817 $ 20,394 $ 20,897 $ 21,091 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. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The Company’s share of other comprehensive income (loss) includes net income plus other comprehensive income, which includes changes in fair value of certain derivatives designated as cash flow hedges, certain changes in pension and other retirement benefit plans, foreign currency translations gains and losses, changes in the fair value of available-for-sale securities, the Company’s share of other comprehensive income (loss) of entities accounted for using the equity method, and reclassifications for amounts included in net income (loss) less net income (loss) and other comprehensive income (loss) attributable to the noncontrolling interest. For more information on derivative instruments, see “Note 16: Financial Instruments”. For more information on pensions and retirement benefit obligations, see “Note 6: 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 (in millions): Three Months Ended June 30, 2022 Gross Income Net Unrealized gain (loss) on cash flow hedges $ 15 $ 1 $ 16 Changes in retirement plans’ funded status (34) 9 (25) Foreign currency translation 72 — 72 Share of other comprehensive income (loss) of entities using the (20) — (20) Other comprehensive income (loss) $ 33 $ 10 $ 43 Six Months Ended June 30, 2022 Gross Income Net Unrealized gain (loss) on cash flow hedges $ (80) $ 1 $ (79) Changes in retirement plans’ funded status (68) 18 (50) Foreign currency translation 331 — 331 Share of other comprehensive income (loss) of entities using the (29) — (29) Other comprehensive income (loss) $ 154 $ 19 $ 173 Three Months Ended June 30, 2021 Gross Income Net Unrealized gain (loss) on cash flow hedges $ (50) $ (3) $ (53) Changes in retirement plans’ funded status (25) 8 (17) Foreign currency translation 106 — 106 Share of other comprehensive income (loss) of entities using the 2 — 2 Other comprehensive income (loss) $ 33 $ 5 $ 38 Six Months Ended June 30, 2021 Gross Income Net Unrealized gain (loss) on cash flow hedges $ (71) $ (2) $ (73) Changes in retirement plans’ funded status (49) 15 (34) Foreign currency translation 206 — 206 Share of other comprehensive income (loss) of entities using the (21) — (21) Other comprehensive income (loss) $ 65 $ 13 $ 78 The changes, net of tax, in each component of accumulated other comprehensive income (loss) consisted of the following (in millions): Unrealized Change in Foreign Currency Share of Other Total Balance, January 1, 2021 $ (6) $ (653) $ (1,884) $ (133) $ (2,676) Other comprehensive income (loss), before reclassifications (59) 27 204 (21) 151 Amounts reclassified from other comprehensive income (14) (61) — — (75) Other comprehensive income (loss)* (73) (34) 204 (21) 76 Balance, June 30, 2021 $ (79) $ (687) $ (1,680) $ (154) $ (2,600) Balance, January 1, 2022 $ 2 $ (324) $ (1,951) $ (224) $ (2,497) Other comprehensive income (loss), before reclassifications (114) 16 332 (29) 205 Amounts reclassified from other comprehensive income 35 (66) — — (31) Other comprehensive income (loss)* (79) (50) 332 (29) 174 Balance, June 30, 2022 $ (77) $ (374) $ (1,619) $ (253) $ (2,323) (*) Excluded from the table above is other comprehensive income (loss) allocated to noncontrolling interests of $(1) million and $2 million for the six months ended June 30, 2022 and 2021, respectively. Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three and six months ended June 30, 2022 and 2021 consisted of the following: Amounts Reclassified from Other Amount Reclassified from Other Consolidated Statement Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) (in millions) Cash flow hedges $ (1) $ 1 $ (2) $ 3 Net sales 41 (2) 58 (27) Cost of goods sold (6) (1) 4 6 Other, net (9) 1 (17) 3 Interest expense (5) — (8) 1 Income taxes $ 20 $ (1) $ 35 $ (14) Change in retirement plans’ funded status: Amortization of actuarial losses $ 6 $ 8 $ 11 $ 15 * Amortization of prior service cost (32) (34) (63) (68) * (7) (8) (14) (8) Income taxes $ (33) $ (34) $ (66) $ (61) Total reclassifications, net of tax $ (13) $ (35) $ (31) $ (75) (*) These amounts are included in net periodic pension and other postretirement benefit cost. See “Note 6: Employee Benefit Plans and Postretirement Benefits” for additional information. |
RELATED PARTY INFORMATION
RELATED PARTY INFORMATION | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY INFORMATION | RELATED PARTY INFORMATIONAs of June 30, 2022 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") and Iveco Group N.V. which effective January 1, 2022 separated from CNH Industrial N.V. by way of a demerger under Dutch law and became a public listed company independent from CNH Industrial. As of June 30, 2022, 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 June 30, 2022. In addition, CNH Industrial engages in transactions with its unconsolidated subsidiaries and affiliates over which CNH Industrial has a significant influence or joint control. The Company’s Audit Committee reviews and approves all significant related party transactions. Transactions with EXOR N.V. and its Subsidiaries and Affiliates EXOR N.V. is an investment holding company. As of June 30, 2022 and December 31, 2021, among other things, EXOR N.V. managed a portfolio that includes investments in Stellantis, Iveco Group and Ferrari. CNH Industrial did not enter into any significant transactions with EXOR N.V. during the three and six months ended June 30, 2022 and 2021. 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 (“Stellantis 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 Stellantis MSA through the execution of an Opt-in letter that may contain additional terms and conditions. Pursuant to the Stellantis MSA, service receivers are required to pay to service providers the actual cost of the services plus a negotiated margin. During the six months ended June 30, 2022 and 2021, Stellantis subsidiaries provided CNH Industrial with administrative services such as accounting, maintenance of plant and equipment, security, information systems and training under the terms and conditions of the Stellantis MSA and the applicable Opt-in letters. Furthermore, CNH Industrial and Stellantis engage in other minor transactions in the ordinary course of business. These transactions with Stellantis are reflected in the Company’s condensed consolidated financial statements as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) (in millions) Net sales $ — $ — $ — $ — Cost of goods sold $ 6 $ 10 $ 11 $ 18 Selling, general and administrative expenses $ 12 $ 15 $ 25 $ 28 June 30, 2022 December 31, 2021 (in millions) Trade receivables $ — $ — Trade payables $ 16 $ 20 Transactions with Iveco Group post-Demerger CNH Industrial and Iveco Group post-Demerger entered into transactions consisting of the sale of engines from Iveco Group to CNH Industrial. Additionally, concurrent with the Demerger, the Companies entered into services contracts in relation to general administrative and specific technical matters, provided by either CNH Industrial to Iveco Group and vice versa as follows: Master Service Agreements : CNH Industrial and Iveco Group entered into a two-year Master Services Agreement (“MSA”) whereby each Party (and its subsidiaries) may provide services to the other (and its subsidiaries). Services provided under the MSA relate mainly to lease of premises and depots and IT services. Engine Supply Agreement : in relation to the design and supply of off-road engines from Iveco Group to CNH Industrial post-Demerger, Iveco Group and CNH Industrial entered into a ten-year Engine Supply Agreement (“ESA”) whereby Iveco Group will sell to CNH Industrial post-Demerger diesel, CNG and LNG engines and provide post-sale services. Financial Service Agreement : in relation to certain financial services activities carried out by either CNH Industrial to Iveco Group post-Demerger or vice versa, in connection with the execution of the Demerger Deed, CNH Industrial and Iveco Group entered into a three-year Master Services Agreement (“FS MSA”), whereby each Party (and its subsidiaries) may provide services and/or financial services activities to the other (and its subsidiaries). Services provided under the FS MSA relate mainly to wholesale and retail financing activities to suppliers, distribution network and customers. The transactions with Iveco Group post-Demerger are reflected in the Condensed Combined Financial Statements as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) (in millions) Net sales $ 21 $ 5 $ 21 $ 10 Cost of goods sold $ 243 $ 258 $ 503 $ 489 June 30, 2022 December 31, 2021 (in millions) Trade receivables $ 27 $ 87 Receivables from Iveco Group N.V. $ 281 $ — Trade payables $ 194 $ 181 Payables to Iveco Group N.V. $ 73 $ 502 Transactions with Unconsolidated Subsidiaries and Affiliates CNH Industrial sells agricultural and construction equipment, and provides technical services to unconsolidated subsidiaries and affiliates such as CNH de Mexico SA de CV, Turk Traktor ve Ziraat Makineleri A.S. and New Holland HFT Japan Inc. CNH Industrial also purchases equipment from unconsolidated subsidiaries and affiliates, such as Turk Traktor ve Ziraat Makineleri A.S. These transactions primarily affected revenues, finance and interest income, cost of goods sold, trade receivables and payables and are presented as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) (in millions) Net sales $ 96 $ 99 $ 222 $ 212 Cost of goods sold $ 123 $ 124 $ 244 $ 231 June 30, 2022 December 31, 2021 (in millions) Trade receivables $ — $ — Trade payables $ 73 $ 101 At June 30, 2022 and December 31, 2021, CNH Industrial had provided guarantees on commitments of its associated company for an amount of $18 million and $15 million, respectively, related to CNH Industrial Capital Europe S.a.S. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On July 28, 2022, the Board of Directors approved a $300 million share buyback program to be launched at the completion of the existing €100 million program. On July 26, 2022, CNH Industrial completed the sale of the Raven Aerostar division, completing its divestiture of all Raven held for sale entities. |
NEW ACCOUNTING PRONOUNCEMENTS (
NEW ACCOUNTING PRONOUNCEMENTS (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The condensed consolidated financial statements of CNH Industrial N.V. and its consolidated subsidiaries have been voluntarily prepared by the Company without audit. Although prepared on a voluntary basis, the condensed consolidated financial statements included in the report comply in all material respects with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) governing interim financial statements. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted as permitted by such rules and regulations. All adjustments, consisting only of normal recurring adjustments, have been included. Management believes that the disclosures are adequate to present fairly the financial position, results of operations, and cash flows at the dates and for the periods presented. These interim financial statements should be read in conjunction with the financial statements and the notes thereto appearing in the Company’s annual report on Form 20-F for the year ended December 31, 2021. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and related accompanying notes and disclosures. 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 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. Certain financial information in this report has been presented by geographic area. Beginning January 1, 2022, our geographical regions are: (1) North America; (2) Europe, Middle East and Africa; (3) South America and (4) Asia Pacific. Prior amounts have been conformed to these regions. The geographic designations have the following meanings: • North America : United States, Canada, and Mexico; • Europe, Middle East, and Africa : member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine, Balkans, Russia, Turkey, the African continent, and the Middle East; • South America : Central and South America, and the Caribbean Islands; and • Asia Pacific |
New Accounting Policies Adopted and Not Yet Adopted | Adopted in 2022 None 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 June 30, 2022. 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 |
Troubled Debt Restructurings and Vintage Disclosures | Troubled Debt Restructurings and Vintage DisclosuresIn March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings (TDRs) for creditors in ASC 310-40 and amends the guidance on vintage disclosures to require disclosure of current-period gross write-offs by year of origination. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. Entities can elect to adopt the guidance on TDRs using either a prospective or modified retrospective transition. The amendments related to disclosures should be adopted prospectively. The Company is currently evaluating the impact of adoption to our consolidated financial statements. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Discontinued Financial Information | The following table presents the assets and liabilities of the Iveco Group Business classified as Assets Held for Distribution and Liabilities Held for Distribution: December 31, 2021 (in millions) ASSETS HELD FOR DISTRIBUTION Cash and cash equivalents $ 961 Restricted cash 55 Trade receivables, net 165 Financing receivables, net 3,284 Inventories, net 3,005 Property, plant and equipment, net 3,221 Investments in unconsolidated subsidiaries and affiliates 613 Equipment under operating leases 66 Goodwill, net 80 Other intangible assets, net 141 Deferred tax assets 1,059 Other assets 896 Total Assets Held for Distribution $ 13,546 LIABILITIES HELD FOR DISTRIBUTION Debt 2,343 Trade payables 3,366 Deferred tax liabilities 14 Pension, postretirement and other postemployment benefits 560 Other liabilities 5,609 Total Liabilities Held for Distribution $ 11,892 Details of Statement of Operations line items included in Discontinued Operations, after the eliminations, for three and six months ended June 30, 2021 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2021 (in millions) Revenues Net sales $ 3,962 $ 7,532 Finance, interest and other income 43 92 Total Revenues $ 4,005 $ 7,624 Costs and Expenses Cost of goods sold 3,401 6,459 Selling, general and administrative expenses 267 488 Research and development expenses 165 296 Restructuring expenses 3 4 Interest expense 28 57 Other, net (75) — Total Costs and Expenses $ 3,789 $ 7,304 Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates 216 320 Income tax (expense) benefit (36) (77) Equity in income of unconsolidated subsidiaries and affiliates 5 4 Net Income (loss) from discontinued operations $ 185 $ 247 Cash flows from Discontinued Operations from the six months ended June 30, 2021 are as follows: Six Months Ended June 30, 2021 (in millions) Operating activities: Net income (loss) of discontinued operations $ 247 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization expense, net of depreciation and amortization of assets under operating leases and assets sold under buy-back commitments 159 Depreciation and amortization expense of assets under operating leases and assets sold under buy-back commitments 148 Loss on disposal of assets 2 Loss on repurchase of notes — Undistributed income of unconsolidated subsidiaries 16 Other non-cash items (48) Changes in operating assets and liabilities: Provisions 60 Deferred income taxes (7) Trade and financing receivables related to sales, net 151 Inventories, net (585) Trade payables 322 Other assets and liabilities 105 Cash flow from operating activities of discontinued operation $ 570 Investing activities: Additions to retail receivables (14) Collections of retail receivables 20 Proceeds from the sale of assets, net of assets under operating leases and assets sold under buy-back commitments 1 Expenditures for property, plant and equipment and intangible assets, net of assets under operating leases and assets sold under buy-back commitments (97) Expenditures for assets under operating leases and assets sold under buy-back commitments (371) Other 308 Cash flow provided by (used in) investing activities of discontinued operation $ (153) Financing activities: Proceeds from long-term debt 1,566 Payments of long-term debt (2,068) Net decrease in other financial liabilities 132 Dividends paid — Cash flow from financing activities of discontinued operation $ (370) |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue by Segment and Source | The following table summarizes revenues for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, 2022 2021 (in millions) Agriculture $ 4,722 $ 3,970 Construction 891 808 Eliminations and Other — — Total Industrial Activities $ 5,613 $ 4,778 Financial Services 471 392 Eliminations and Other (2) 4 Total Revenues $ 6,082 $ 5,174 Six Months Ended June 30, 2022 2021 (in millions) Agriculture $ 8,099 $ 7,008 Construction 1,694 1,464 Eliminations and Other — — Total Industrial Activities $ 9,793 $ 8,472 Financial Services 937 789 Eliminations and Other (3) 9 Total Revenues $ 10,727 $ 9,270 The following table disaggregates revenues by major source for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, 2022 2021 (in millions) Revenues from: Sales of goods $ 5,604 $ 4,774 Rendering of services and other revenues 9 4 Revenues from sales of goods and services 5,613 4,778 Finance and interest income 271 221 Rents and other income on operating lease 198 175 Finance, interest and other income 469 396 Total Revenues $ 6,082 $ 5,174 Six Months Ended June 30, 2022 2021 (in millions) Revenues from: Sales of goods $ 9,778 $ 8,463 Rendering of services and other revenues 15 9 Revenues from sales of goods and services 9,793 8,472 Finance and interest income 512 445 Rents and other income on operating lease 422 353 Finance, interest and other income 934 798 Total Revenues $ 10,727 $ 9,270 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Assets and Liabilities of Consolidated VIEs | The following table presents certain assets and liabilities of consolidated VIEs, which are included in the condensed consolidated balance sheets included in this report. The assets in the table below include only those assets that can be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third party liabilities of the consolidated VIEs for which creditors do not have recourse to the general credit of the Company. June 30, 2022 December 31, 2021 (in millions) Restricted cash $ 709 $ 736 Financing receivables 8,926 8,838 Total Assets $ 9,635 $ 9,574 Debt $ 8,632 $ 8,528 Total Liabilities $ 8,632 $ 8,528 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Earnings Per Share | A reconciliation of basic and diluted earnings per share is as follows (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income attributable to CNH Industrial $ 548 $ 690 $ 881 $ 1,098 Net income (loss) attributable to CNH Industrial from continuing operations $ 548 $ 513 $ 881 $ 873 Net income (loss) attributable to CNH Industrial from discontinued operations $ — $ 177 $ — $ 225 Basic earnings (loss) per share attributable to common shareholders: Weighted average common shares outstanding—basic (in millions) 1,355 1,354 1,355 1,354 Continuing operations $ 0.40 $ 0.38 $ 0.65 $ 0.64 Discontinued operations $ — $ 0.13 $ — $ 0.17 Basic earnings per share attributable to CNH Industrial N.V. $ 0.40 $ 0.51 $ 0.65 $ 0.81 Diluted earnings (loss) per share attributable to common shareholders Weighted average common shares outstanding—basic (in millions) 1,355 1,354 1,355 1,354 Stock compensation plans (1) (in millions) 5 7 5 6 Weighted average common shares outstanding—diluted (in millions) 1,360 1,361 1,360 1,360 Continuing operations $ 0.40 $ 0.38 $ 0.65 $ 0.64 Discontinued operations $ — $ 0.13 $ — $ 0.17 Diluted earnings per share attributable to CNH Industrial N.V. $ 0.40 $ 0.51 $ 0.65 $ 0.81 |
EMPLOYEE BENEFIT PLANS AND PO_2
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Postemployment Benefits [Abstract] | |
Summary of Net Periodic Benefit Cost | The following table summarizes the components of net periodic benefit cost of CNH Industrial’s defined benefit pension plans and postretirement health and life insurance plans for the three and six months ended June 30, 2022 and 2021: Pension Healthcare Other Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, 2022 2021 2022 2021 2022 2021 (in millions) Service cost $ 3 $ 4 $ 1 $ 1 $ 1 $ 1 Interest cost 7 4 2 2 — — Expected return on assets (12) (14) (2) (1) — — Amortization of: Prior service credit — — (32) (34) — — Actuarial loss 5 7 1 — — 1 Net periodic benefit cost $ 3 $ 1 $ (30) $ (32) $ 1 $ 2 Pension Healthcare Other Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 2022 2021 (in millions) Service cost $ 6 $ 7 $ 2 $ 2 $ 3 $ 3 Interest cost 14 9 3 3 — — Expected return on assets (24) (27) (3) (3) — — Amortization of: Prior service credit — — (63) (68) — — Actuarial loss 10 13 1 1 — 1 Net periodic benefit cost $ 6 $ 2 $ (60) $ (65) $ 3 $ 4 |
Schedule of Net Amounts Recognized in Consolidated Balance Sheets | Net amounts recognized in the consolidated balance sheet as of December 31, 2021 consisted of: Pension Healthcare Other December 31, 2021 December 31, 2021 December 31, 2021 (in millions) Other assets $ 40 $ — $ — Pension, postretirement and other postemployment benefits (409) (141) (125) Net liability recognized at end of year $ (369) $ (141) $ (125) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Segment | 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 three and six months ended June 30, 2022 and 2021. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) (in millions) Agriculture $ 663 $ 582 $ 1,089 $ 981 Construction 34 24 66 49 Unallocated items, eliminations and other (43) (34) (72) (65) Total Adjusted EBIT of Industrial Activities $ 654 $ 572 $ 1,083 $ 965 Financial Services Net Income 95 85 177 163 Financial Services Income Taxes 38 26 74 52 Interest expense of Industrial Activities, net of interest income and eliminations (35) (31) (70) (71) Foreign exchange gains (losses), net of Industrial Activities 13 (4) — (15) Finance and non-service component of Pension and other post-employment benefit cost of Industrial Activities (1) 40 35 77 70 Restructuring expense of Industrial Activities (6) (5) (8) (6) Other discrete items of Industrial Activities (2) (19) (12) (58) (13) Income (loss) before taxes $ 780 $ 666 $ 1,275 $ 1,145 Income tax (expense) benefit (228) (152) (387) (268) Net income (loss) of discontinued operations — 185 — 247 Net income (loss) $ 552 $ 699 $ 888 $ 1,124 (1) This item includes a pre-tax gain of $30 million and $60 million in the three and six months ended June 30, 2022 and 2021, respectively, as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the 2018 modification of a healthcare plan in the U.S. and a pre-tax gain of $6 million and $12 million in the three and six months ended June 30, 2022, respectively, 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. (2) In the three and six months ended June 30, 2022, this item included $3 million and $6 million of separation costs incurred in connection with our spin-off of the Iveco Group Business and $16 million and $8 million of loss from the activity of the two Raven businesses held for sale, including the loss on the sale of the Engineered Films Division. In the six month ended June 30, 2022, this item also included $44 million of asset write-downs. In the three and six months ended June 30, 2021, this item includes $8 million and $9 million of separation costs incurred in connection with our spin-off of the Iveco Group Business. |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Summary of Financing Receivables | A summary of financing receivables as of June 30, 2022 and December 31, 2021 is as follows: June 30, 2022 December 31, 2021 (in millions) Retail $ 10,255 $ 9,955 Wholesale 6,249 5,373 Other 33 48 Total $ 16,537 $ 15,376 |
Summary of Aging of Financing Receivables | The aging of financing receivables as of June 30, 2022 and December 31, 2021 is as follows (in millions): June 30, 2022 31-60 Days 61-90 Days Total Past Current Total Non- Total Retail North America 2022 $ 1,782 $ — $ 1,782 2021 2,614 — 2,614 2020 1,316 — 1,316 2019 667 — 667 2018 369 — 369 Prior to 2018 167 1 168 Total $ 19 $ — $ 19 $ 6,896 $ 6,915 $ 1 $ 6,916 South America 2022 $ 428 $ — $ 428 2021 798 1 799 2020 452 1 453 2019 241 1 242 2018 142 1 143 Prior to 2018 104 — 104 Total $ 34 $ — $ 34 $ 2,131 $ 2,165 $ 4 $ 2,169 Asia Pacific 2022 $ 284 $ — $ 284 2021 428 1 429 2020 253 2 255 2019 108 1 109 2018 54 1 55 Prior to 2018 13 — 13 Total $ 8 $ 10 $ 18 $ 1,122 $ 1,140 $ 5 $ 1,145 Europe, Middle East, Africa $ — $ — $ — $ 8 $ 8 $ 17 $ 25 Total Retail $ 61 $ 10 $ 71 $ 10,157 $ 10,228 $ 27 $ 10,255 Wholesale North America $ — $ — $ — $ 2,699 $ 2,699 $ — $ 2,699 South America — — — 962 962 — 962 Asia Pacific 3 1 4 477 481 6 487 Europe, Middle East, Africa 5 — 5 2,096 2,101 — 2,101 Total Wholesale $ 8 $ 1 $ 9 $ 6,234 $ 6,243 $ 6 $ 6,249 December 31, 2021 31-60 Days 61-90 Days Total Past Current Total Non- 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 Asia Pacific 2021 $ 579 $ — $ 579 2020 357 4 361 2019 167 1 168 2018 99 1 100 2017 45 — 45 Prior to 2017 5 — 5 Total $ 10 $ 8 $ 18 $ 1,234 $ 1,252 $ 6 $ 1,258 Europe, Middle East, Africa $ 4 $ — $ 4 $ 43 $ 47 $ — $ 47 Total Retail $ 28 $ 8 $ 36 $ 9,911 $ 9,947 $ 8 $ 9,955 Wholesale North America $ — $ — $ — $ 2,339 $ 2,339 $ — $ 2,339 South America — — — 633 633 22 655 Asia Pacific 2 1 3 446 449 — 449 Europe, Middle East, Africa 5 1 6 1,924 1,930 — 1,930 Total Wholesale $ 7 $ 2 $ 9 $ 5,342 $ 5,351 $ 22 $ 5,373 |
Summary of Allowance for Credit Loss Activity | Allowance for credit losses (activity) for the three and six months ended June 30, 2022 is as follows (in millions): Three Months Ended June 30, 2022 Retail Wholesale Opening Balance $ 244 $ 74 Provision 14 (4) Charge-offs, net of recoveries (8) (5) Foreign currency translation and other (4) (4) Ending Balance $ 246 $ 61 Six Months Ended June 30, 2022 Retail Wholesale Opening Balance $ 220 $ 65 Provision 26 3 Charge-offs, net of recoveries (9) (5) Foreign currency translation and other 9 (2) Ending Balance $ 246 $ 61 Allowance for credit losses activity for the three and six months ended June 30, 2021 and for the year ended December 31, 2021 is as follows (in millions): Three Months Ended June 30, 2021 Retail Wholesale Opening Balance $ 220 $ 69 Provision 1 — Charge-offs, net of recoveries (3) (1) Foreign currency translation and other 8 5 Ending Balance $ 226 $ 73 Six Months Ended June 30, 2021 Retail Wholesale Opening Balance $ 231 $ 62 Provision 6 4 Charge-offs, net of recoveries (6) (1) Foreign currency translation and other (5) 8 Ending Balance $ 226 $ 73 Twelve Months Ended December 31, 2021 Retail Wholesale Opening Balance $ 231 $ 62 Provision 22 6 Charge-offs, net of recoveries (22) 1 Foreign currency translation and other (11) (4) Ending Balance $ 220 $ 65 |
Summary of Carrying Amount of Restricted Assets | At June 30, 2022 and December 31, 2021, the carrying amount of such restricted assets included in financing receivables above are the following (in millions): Restricted Receivables June 30, 2022 December 31, 2021 Retail note and finance lease receivables $ 6,972 $ 6,878 Wholesale receivables 3,921 3,443 Total $ 10,893 $ 10,321 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories as of June 30, 2022 and December 31, 2021 consist of the following: June 30, 2022 December 31, 2021 (in millions) Raw materials $ 1,972 $ 1,517 Work-in-process 944 570 Finished goods 2,557 2,129 Total inventories $ 5,473 $ 4,216 |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Investments in Unconsolidated Subsidiaries and Affiliates | A summary of investments in unconsolidated subsidiaries and affiliates as of June 30, 2022 and December 31, 2021 is as follows: June 30, 2022 December 31, 2021 (in millions) Equity method $ 271 $ 286 Cost method 48 47 Total $ 319 $ 333 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the six months ended June 30, 2022 are as follows: Agriculture Construction Financial Total (in millions) Balance at January 1, 2022 $ 3,020 $ 49 $ 141 $ 3,210 Acquisition 43 — — 43 Foreign currency translation and other 10 (4) — 6 Balance at June 30, 2022 $ 3,073 $ 45 $ 141 $ 3,259 |
Summary of Other Intangible Assets | As of June 30, 2022 and December 31, 2021, the Company’s other intangible assets and related accumulated amortization consisted of the following: June 30, 2022 December 31, 2021 Weighted Gross Accumulated Net Gross Accumulated Net (in millions) Other intangible assets subject to Dealer networks 15 $ 291 $ 237 $ 54 $ 290 $ 231 $ 59 Patents, concessions, licenses and other 5-25 1,966 1,116 850 1,973 1,097 876 2,257 1,353 904 2,263 1,328 935 Other intangible assets not subject to Trademarks 272 — 272 272 — 272 Total Other intangible assets $ 2,529 $ 1,353 $ 1,176 $ 2,535 $ 1,328 $ 1,207 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Liabilities | A summary of Other liabilities as of June 30, 2022 and December 31, 2021 is as follows: June 30, 2022 December 31, 2021 (in millions) Warranty and campaign programs $ 484 $ 526 Marketing and sales incentive programs 1,351 1,325 Tax payables 446 671 Accrued expenses and deferred income 493 559 Accrued employee benefits 416 544 Lease liabilities 227 196 Legal reserves and other provisions 208 187 Contract reserve 11 12 Contract liabilities 26 20 Restructuring reserve 26 29 Other 602 692 Total $ 4,290 $ 4,761 |
Summary of Basic Warranty and Accruals for Campaign Programs | A summary of recorded activity for the three and six months ended June 30, 2022 and 2021 for the basic warranty and accruals for campaign programs are as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) (in millions) Balance at beginning of period $ 501 $ 499 $ 526 $ 507 Current year additions 117 108 185 192 Claims paid (115) (93) (210) (178) Currency translation adjustment and other (19) 12 (17) 5 Balance at end of period $ 484 $ 526 $ 484 $ 526 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 recognized in accumulated other comprehensive income (loss) and net income (loss) during the three and six months ended June 30, 2022 and 2021 (in millions): Recognized in Net Income For the Three Months Ended June 30, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2022 Foreign exchange contracts $ (21) Net sales 1 Cost of goods sold (41) Other, net 6 Interest rate contracts 13 Interest expense 9 Total $ (8) $ (25) 2021 Foreign exchange contracts $ (55) Net sales (1) Cost of goods sold 2 Other, net 1 Interest rate contracts 5 Interest expense (1) Total $ (50) $ 1 Recognized in Net Income For the Six Months Ended June 30, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2022 Foreign exchange contracts $ (172) Net sales 2 Cost of goods sold (58) Other, net (4) Interest rate contracts 50 Interest expense 17 Total $ (122) $ (43) 2021 Foreign exchange contracts $ (81) Net sales (3) Cost of goods sold 27 Other, net (6) Interest rate contracts 25 Interest expense (3) Total $ (56) $ 15 Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three and six months ended June 30, 2022 and 2021 consisted of the following: Amounts Reclassified from Other Amount Reclassified from Other Consolidated Statement Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) (in millions) Cash flow hedges $ (1) $ 1 $ (2) $ 3 Net sales 41 (2) 58 (27) Cost of goods sold (6) (1) 4 6 Other, net (9) 1 (17) 3 Interest expense (5) — (8) 1 Income taxes $ 20 $ (1) $ 35 $ (14) Change in retirement plans’ funded status: Amortization of actuarial losses $ 6 $ 8 $ 11 $ 15 * Amortization of prior service cost (32) (34) (63) (68) * (7) (8) (14) (8) Income taxes $ (33) $ (34) $ (66) $ (61) Total reclassifications, net of tax $ (13) $ (35) $ (31) $ (75) (*) These amounts are included in net periodic pension and other postretirement benefit cost. See “Note 6: Employee Benefit Plans and Postretirement Benefits” for additional information. |
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 six months ended June 30, 2022 and 2021: In Millions Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2021 $ (3) $ (14) $ (17) Impact of demerger — — — Net changes in fair value of derivatives (122) 8 (114) Net losses reclassified from accumulated other comprehensive income into income 43 (8) 35 Accumulated derivative net losses as of June 30, 2022 $ (82) $ (14) $ (96) 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 (56) (3) (59) Net losses reclassified from accumulated other comprehensive income into income (15) 1 (14) Accumulated derivative net losses as of June 30, 2021 $ (76) $ (3) $ (79) The following tables summarize the impact that changes in the fair value of fair value hedges and derivatives not designated as hedging instruments had on earnings (in millions): For the Three Months Ended June 30, Classification of Gain (Loss) 2022 2021 Fair Value Hedges Interest rate derivatives Interest expense $ (21) $ (2) Not Designated as Hedges Foreign exchange contracts Other, Net $ — $ (49) For the Six Months Ended June 30, Classification of Gain (Loss) 2022 2021 Fair Value Hedges Interest rate derivatives Interest expense $ (76) $ (23) Not Designated as Hedges Foreign exchange contracts Other, Net $ (47) $ (53) |
Summary of Fair Value of Derivatives | The fair values of CNH Industrial’s derivatives as of June 30, 2022 and December 31, 2021 in the condensed consolidated balance sheets are recorded as follows: June 30, 2022 December 31, 2021 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 89 Derivative assets 65 Foreign currency contracts Derivative assets 52 Derivative assets 77 Total derivative assets designated as hedging instruments 141 142 Interest rate contracts Derivative liabilities 88 Derivative liabilities 28 Foreign currency contracts Derivative liabilities 160 Derivative liabilities 101 Total derivative liabilities designated as hedging instruments 248 129 Derivatives not designated as hedging instruments under Subtopic 815-20 Interest rate contracts Derivative assets 51 Derivative assets 11 Foreign currency contracts Derivative assets 45 Derivative assets 29 Total derivative assets not designated as hedging instruments 96 40 Interest rate contracts Derivative liabilities 51 Derivative liabilities 12 Foreign currency contracts Derivative liabilities 27 Derivative liabilities 40 Total derivative liabilities not designated as hedging instruments 78 52 |
Summary of Investments Measured on Recurring Basis | The following tables present for each of the fair-value hierarchy levels the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 2022 and December 31, 2021: Level 1 Level 2 Total June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 (in millions) Assets Foreign exchange derivatives $ — $ — $ 97 $ 106 $ 97 $ 106 Interest rate derivatives — — 140 76 140 76 Total Assets $ — $ — $ 237 $ 182 $ 237 $ 182 Liabilities Foreign exchange derivatives $ — $ — $ 187 $ 141 $ 187 $ 141 Interest rate derivatives — — 139 40 139 40 Total Liabilities $ — $ — $ 326 $ 181 $ 326 $ 181 |
Summary of Investments Measured on Nonrecurring Basis | The following tables present the fair value for nonrecurring Level 3 measurements from impairments recorded in the quarter ended March 31, 2022. No impairments were recorded in the quarter ended June 30, 2022. Fair Value Losses 2022 2021 2022 2021 (in millions) Property, plant and equipment $ 7 $ — $ 17 $ — |
Summary of Estimated Fair Market Values | The estimated fair market values of financial instruments not carried at fair value in the condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021 are as follows: June 30, 2022 December 31, 2021 Carrying Fair Carrying Fair (in millions) Financing receivables $ 16,537 $ 16,304 $ 15,376 $ 15,605 Debt $ 20,817 $ 20,394 $ 20,897 $ 21,091 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 (in millions): Three Months Ended June 30, 2022 Gross Income Net Unrealized gain (loss) on cash flow hedges $ 15 $ 1 $ 16 Changes in retirement plans’ funded status (34) 9 (25) Foreign currency translation 72 — 72 Share of other comprehensive income (loss) of entities using the (20) — (20) Other comprehensive income (loss) $ 33 $ 10 $ 43 Six Months Ended June 30, 2022 Gross Income Net Unrealized gain (loss) on cash flow hedges $ (80) $ 1 $ (79) Changes in retirement plans’ funded status (68) 18 (50) Foreign currency translation 331 — 331 Share of other comprehensive income (loss) of entities using the (29) — (29) Other comprehensive income (loss) $ 154 $ 19 $ 173 Three Months Ended June 30, 2021 Gross Income Net Unrealized gain (loss) on cash flow hedges $ (50) $ (3) $ (53) Changes in retirement plans’ funded status (25) 8 (17) Foreign currency translation 106 — 106 Share of other comprehensive income (loss) of entities using the 2 — 2 Other comprehensive income (loss) $ 33 $ 5 $ 38 Six Months Ended June 30, 2021 Gross Income Net Unrealized gain (loss) on cash flow hedges $ (71) $ (2) $ (73) Changes in retirement plans’ funded status (49) 15 (34) Foreign currency translation 206 — 206 Share of other comprehensive income (loss) of entities using the (21) — (21) Other comprehensive income (loss) $ 65 $ 13 $ 78 |
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 Change in Foreign Currency Share of Other Total Balance, January 1, 2021 $ (6) $ (653) $ (1,884) $ (133) $ (2,676) Other comprehensive income (loss), before reclassifications (59) 27 204 (21) 151 Amounts reclassified from other comprehensive income (14) (61) — — (75) Other comprehensive income (loss)* (73) (34) 204 (21) 76 Balance, June 30, 2021 $ (79) $ (687) $ (1,680) $ (154) $ (2,600) Balance, January 1, 2022 $ 2 $ (324) $ (1,951) $ (224) $ (2,497) Other comprehensive income (loss), before reclassifications (114) 16 332 (29) 205 Amounts reclassified from other comprehensive income 35 (66) — — (31) Other comprehensive income (loss)* (79) (50) 332 (29) 174 Balance, June 30, 2022 $ (77) $ (374) $ (1,619) $ (253) $ (2,323) (*) Excluded from the table above is other comprehensive income (loss) allocated to noncontrolling interests of $(1) million and $2 million for the six months ended June 30, 2022 and 2021, respectively. |
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 recognized in accumulated other comprehensive income (loss) and net income (loss) during the three and six months ended June 30, 2022 and 2021 (in millions): Recognized in Net Income For the Three Months Ended June 30, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2022 Foreign exchange contracts $ (21) Net sales 1 Cost of goods sold (41) Other, net 6 Interest rate contracts 13 Interest expense 9 Total $ (8) $ (25) 2021 Foreign exchange contracts $ (55) Net sales (1) Cost of goods sold 2 Other, net 1 Interest rate contracts 5 Interest expense (1) Total $ (50) $ 1 Recognized in Net Income For the Six Months Ended June 30, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2022 Foreign exchange contracts $ (172) Net sales 2 Cost of goods sold (58) Other, net (4) Interest rate contracts 50 Interest expense 17 Total $ (122) $ (43) 2021 Foreign exchange contracts $ (81) Net sales (3) Cost of goods sold 27 Other, net (6) Interest rate contracts 25 Interest expense (3) Total $ (56) $ 15 Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three and six months ended June 30, 2022 and 2021 consisted of the following: Amounts Reclassified from Other Amount Reclassified from Other Consolidated Statement Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) (in millions) Cash flow hedges $ (1) $ 1 $ (2) $ 3 Net sales 41 (2) 58 (27) Cost of goods sold (6) (1) 4 6 Other, net (9) 1 (17) 3 Interest expense (5) — (8) 1 Income taxes $ 20 $ (1) $ 35 $ (14) Change in retirement plans’ funded status: Amortization of actuarial losses $ 6 $ 8 $ 11 $ 15 * Amortization of prior service cost (32) (34) (63) (68) * (7) (8) (14) (8) Income taxes $ (33) $ (34) $ (66) $ (61) Total reclassifications, net of tax $ (13) $ (35) $ (31) $ (75) (*) These amounts are included in net periodic pension and other postretirement benefit cost. See “Note 6: Employee Benefit Plans and Postretirement Benefits” for additional information. |
RELATED PARTY INFORMATION (Tabl
RELATED PARTY INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Transactions | These transactions with Stellantis are reflected in the Company’s condensed consolidated financial statements as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) (in millions) Net sales $ — $ — $ — $ — Cost of goods sold $ 6 $ 10 $ 11 $ 18 Selling, general and administrative expenses $ 12 $ 15 $ 25 $ 28 June 30, 2022 December 31, 2021 (in millions) Trade receivables $ — $ — Trade payables $ 16 $ 20 The transactions with Iveco Group post-Demerger are reflected in the Condensed Combined Financial Statements as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) (in millions) Net sales $ 21 $ 5 $ 21 $ 10 Cost of goods sold $ 243 $ 258 $ 503 $ 489 June 30, 2022 December 31, 2021 (in millions) Trade receivables $ 27 $ 87 Receivables from Iveco Group N.V. $ 281 $ — Trade payables $ 194 $ 181 Payables to Iveco Group N.V. $ 73 $ 502 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in millions) (in millions) Net sales $ 96 $ 99 $ 222 $ 212 Cost of goods sold $ 123 $ 124 $ 244 $ 231 June 30, 2022 December 31, 2021 (in millions) Trade receivables $ — $ — Trade payables $ 73 $ 101 |
BASIS OF PRESENTATION - Assets
BASIS OF PRESENTATION - Assets and Liabilities Held for Distribution (Details) - Discontinued Operations, Held-for-sale $ in Millions | Dec. 31, 2021 USD ($) |
ASSETS HELD FOR DISTRIBUTION | |
Cash and cash equivalents | $ 961 |
Restricted cash | 55 |
Trade receivables, net | 165 |
Financing receivables, net | 3,284 |
Inventories, net | 3,005 |
Property, plant and equipment, net | 3,221 |
Investments in unconsolidated subsidiaries and affiliates | 613 |
Equipment under operating leases | 66 |
Goodwill, net | 80 |
Other intangible assets, net | 141 |
Deferred tax assets | 1,059 |
Other assets | 896 |
Total Assets Held for Distribution | 13,546 |
LIABILITIES HELD FOR DISTRIBUTION | |
Debt | 2,343 |
Trade payables | 3,366 |
Deferred tax liabilities | 14 |
Pension, postretirement and other postemployment benefits | 560 |
Other liabilities | 5,609 |
Total Liabilities Held for Distribution | $ 11,892 |
BASIS OF PRESENTATION - Stateme
BASIS OF PRESENTATION - Statement of Discontinued Operation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Costs and Expenses | ||||
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | $ 753 | $ 641 | $ 1,227 | $ 1,094 |
Income tax (expense) benefit | (228) | (152) | (387) | (268) |
Equity in income of unconsolidated subsidiaries and affiliates | $ 27 | 25 | $ 48 | 51 |
Discontinued Operations, Held-for-sale | ||||
Revenues | ||||
Net sales | 3,962 | 7,532 | ||
Finance, interest and other income | 43 | 92 | ||
Total Revenues | 4,005 | 7,624 | ||
Costs and Expenses | ||||
Cost of goods sold | 3,401 | 6,459 | ||
Selling, general and administrative expenses | 267 | 488 | ||
Research and development expenses | 165 | 296 | ||
Restructuring expenses | 3 | 4 | ||
Interest expense | 28 | 57 | ||
Other, net | (75) | 0 | ||
Total Costs and Expenses | 3,789 | 7,304 | ||
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | 216 | 320 | ||
Income tax (expense) benefit | (36) | (77) | ||
Equity in income of unconsolidated subsidiaries and affiliates | 5 | 4 | ||
Net Income (loss) from discontinued operations | $ 185 | $ 247 |
BASIS OF PRESENTATION - Cash Fl
BASIS OF PRESENTATION - Cash Flow from Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating activities: | ||||
Net income (loss) from discontinued operations | $ 0 | $ 185 | $ 0 | $ 247 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization expense, net of depreciation and amortization of assets under operating leases | 167 | 147 | ||
Depreciation and amortization expense of assets under operating leases | 105 | 123 | ||
Loss on disposal of assets | 16 | 0 | ||
Loss on repurchase of notes | 0 | 8 | ||
Undistributed income (loss) of unconsolidated subsidiaries | (13) | 11 | ||
Other non-cash items | 89 | 46 | ||
Changes in operating assets and liabilities: | ||||
Provisions | (51) | 91 | ||
Deferred income taxes | 27 | 6 | ||
Trade and financing receivables related to sales, net | (963) | (495) | ||
Inventories, net | (1,164) | (620) | ||
Trade payables | 56 | 484 | ||
Other assets and liabilities | (315) | 123 | ||
Cash flow from operating activities discontinued operation | 0 | 570 | ||
Investing activities: | ||||
Additions to retail receivables | (2,703) | (2,384) | ||
Collections of retail receivables | 2,392 | 2,377 | ||
Proceeds from the sale of assets, net of assets under operating leases | 2 | 12 | ||
Expenditures for property, plant and equipment and intangible assets, net of assets under operating leases | (139) | (106) | ||
Expenditures for assets under operating leases | (252) | (235) | ||
Other | (300) | (276) | ||
Cash flow from investing activities discontinued operation | 0 | (153) | ||
Financing activities: | ||||
Proceeds from long-term debt | 5,212 | 4,821 | ||
Payments of long-term debt | (4,888) | (5,533) | ||
Net decrease in other financial liabilities | 203 | (216) | ||
Dividends paid | (415) | (183) | ||
Cash flow from financing activities discontinued operation | $ 0 | (370) | ||
Discontinued Operations, Held-for-sale | ||||
Operating activities: | ||||
Net income (loss) from discontinued operations | 247 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization expense, net of depreciation and amortization of assets under operating leases | 159 | |||
Depreciation and amortization expense of assets under operating leases | 148 | |||
Loss on disposal of assets | 2 | |||
Loss on repurchase of notes | 0 | |||
Undistributed income (loss) of unconsolidated subsidiaries | 16 | |||
Other non-cash items | (48) | |||
Changes in operating assets and liabilities: | ||||
Provisions | 60 | |||
Deferred income taxes | (7) | |||
Trade and financing receivables related to sales, net | 151 | |||
Inventories, net | (585) | |||
Trade payables | 322 | |||
Other assets and liabilities | 105 | |||
Cash flow from operating activities discontinued operation | 570 | |||
Investing activities: | ||||
Additions to retail receivables | (14) | |||
Collections of retail receivables | 20 | |||
Proceeds from the sale of assets, net of assets under operating leases | 1 | |||
Expenditures for property, plant and equipment and intangible assets, net of assets under operating leases | (97) | |||
Expenditures for assets under operating leases | (371) | |||
Other | 308 | |||
Cash flow from investing activities discontinued operation | (153) | |||
Financing activities: | ||||
Proceeds from long-term debt | 1,566 | |||
Payments of long-term debt | (2,068) | |||
Net decrease in other financial liabilities | 132 | |||
Dividends paid | 0 | |||
Cash flow from financing activities discontinued operation | $ (370) |
BASIS OF PRESENTATION - Additio
BASIS OF PRESENTATION - Additional Information (Details) $ in Millions | Nov. 30, 2021 USD ($) division | Dec. 30, 2021 USD ($) |
Business Combination Segment Allocation [Line Items] | ||
Business combination, assets and liabilities Arising from contingencies, amount recognized, net | $ 1,300 | |
Business combination, recognized identifiable assets acquired and liabilities assumed, goodwill and intangible assets | $ 500 | $ 51 |
Raven Industries, Inc. | ||
Business Combination Segment Allocation [Line Items] | ||
Number of business divisions acquired | division | 3 | |
Sampierana S.p.A | ||
Business Combination Segment Allocation [Line Items] | ||
Percentage of capital stock acquired | 90% |
REVENUE - Summary of Net Revenu
REVENUE - Summary of Net Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | $ 5,613 | $ 4,778 | $ 9,793 | $ 8,472 |
Total Revenues | 6,082 | 5,174 | 10,727 | 9,270 |
Industrial Activities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 5,613 | 4,778 | 9,793 | 8,472 |
Industrial Activities | Operating segments | Agriculture | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 4,722 | 3,970 | 8,099 | 7,008 |
Industrial Activities | Operating segments | Construction | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 891 | 808 | 1,694 | 1,464 |
Industrial Activities | Eliminations and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 0 | 0 | 0 | 0 |
Financial Services | Operating segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 471 | 392 | 937 | 789 |
Financial Services | Eliminations and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ (2) | $ 4 | $ (3) | $ 9 |
REVENUE - Disaggregation of Net
REVENUE - Disaggregation of Net Revenues by Major Source (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | $ 5,613 | $ 4,778 | $ 9,793 | $ 8,472 |
Finance and interest income | 271 | 221 | 512 | 445 |
Rents and other income on operating lease | 198 | 175 | 422 | 353 |
Finance, interest and other income | 469 | 396 | 934 | 798 |
Total Revenues | 6,082 | 5,174 | 10,727 | 9,270 |
Sales of goods | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 5,604 | 4,774 | 9,778 | 8,463 |
Rendering of services and other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | $ 9 | $ 4 | $ 15 | $ 9 |
REVENUE - Performance Obligatio
REVENUE - Performance Obligation (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract liabilities | $ 26 | $ 20 |
Transaction price allocated to remaining performance obligations | $ 21 | $ 15 |
Minimum | 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 | 30% | |
Revenue over the remaining lives of the contracts | 12 months | |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of revenue recognized on remaining performance obligation | 29% | |
Revenue over the remaining lives of the contracts | 12 months | |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of revenue recognized on remaining performance obligation | 89% | |
Revenue over the remaining lives of the contracts | 36 months | |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of revenue recognized on remaining performance obligation | 87% | |
Revenue over the remaining lives of the contracts | 36 months |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Restricted cash | $ 729 | $ 801 |
Financing receivables | 16,537 | 15,376 |
Total Assets | 35,648 | 49,416 |
Debt | 20,817 | 20,897 |
Total Liabilities | 29,805 | 42,563 |
Unconsolidated Subsidiaries and Affiliates | ||
Variable Interest Entity [Line Items] | ||
Restricted cash | 709 | 736 |
Financing receivables | 8,926 | 8,838 |
Total Assets | 9,635 | 9,574 |
Debt | 8,632 | 8,528 |
Total Liabilities | $ 8,632 | $ 8,528 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to CNH Industrial N.V. | $ 548 | $ 690 | $ 881 | $ 1,098 |
Net income (loss) attributable to CNH Industrial from continuing operations | 548 | 513 | 881 | 873 |
Net income (loss) attributable to CNH Industrial from discontinued operations | $ 0 | $ 177 | $ 0 | $ 225 |
Basic earnings (loss) per share attributable to common shareholders: | ||||
Weighted average common shares outstanding—basic (in shares) | 1,355,000 | 1,354,000 | 1,355,000 | 1,354,000 |
Continuing operations ( in usd per share) | $ 0.40 | $ 0.38 | $ 0.65 | $ 0.64 |
Discontinued operations (in usd per share) | 0 | 0.13 | 0 | 0.17 |
Basic (in usd per share) | $ 0.40 | $ 0.51 | $ 0.65 | $ 0.81 |
Diluted earnings (loss) per share attributable to common shareholders | ||||
Stock compensation plans (in shares) | 5,000 | 7,000 | 5,000 | 6,000 |
Weighted average common shares outstanding—diluted (in shares) | 1,360,000 | 1,361,000 | 1,360,000 | 1,360,000 |
Continuing operations (in usd per share) | $ 0.40 | $ 0.38 | $ 0.65 | $ 0.64 |
Discontinued operations (in usd per share) | 0 | 0.13 | 0 | 0.17 |
Diluted (in usd per share) | $ 0.40 | $ 0.51 | $ 0.65 | $ 0.81 |
Antidilutive securities excluded from EPS computation (in shares) | 886 | 437 | 861 | 232 |
EMPLOYEE BENEFIT PLANS AND PO_3
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Pension | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 3 | $ 4 | $ 6 | $ 7 |
Interest cost | 7 | 4 | 14 | 9 |
Expected return on assets | (12) | (14) | (24) | (27) |
Amortization of: | ||||
Prior service credit | 0 | 0 | 0 | 0 |
Actuarial loss | 5 | 7 | 10 | 13 |
Net periodic benefit cost | 3 | 1 | 6 | 2 |
Healthcare | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 1 | 1 | 2 | 2 |
Interest cost | 2 | 2 | 3 | 3 |
Expected return on assets | (2) | (1) | (3) | (3) |
Amortization of: | ||||
Prior service credit | (32) | (34) | (63) | (68) |
Actuarial loss | 1 | 0 | 1 | 1 |
Net periodic benefit cost | (30) | (32) | (60) | (65) |
Other | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 1 | 1 | 3 | 3 |
Interest cost | 0 | 0 | 0 | 0 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of: | ||||
Prior service credit | 0 | 0 | 0 | 0 |
Actuarial loss | 0 | 1 | 0 | 1 |
Net periodic benefit cost | $ 1 | $ 2 | $ 3 | $ 4 |
EMPLOYEE BENEFIT PLANS AND PO_4
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS - Schedule of Net Amounts Recognized in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension, postretirement and other postemployment benefits | $ (580) | $ (675) |
Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Other assets | 40 | |
Pension, postretirement and other postemployment benefits | (409) | |
Net liability recognized at end of year | (369) | |
Healthcare | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Other assets | 0 | |
Pension, postretirement and other postemployment benefits | (141) | |
Net liability recognized at end of year | (141) | |
Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Other assets | 0 | |
Pension, postretirement and other postemployment benefits | (125) | |
Net liability recognized at end of year | $ (125) |
EMPLOYEE BENEFIT PLANS AND PO_5
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Apr. 16, 2018 | Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Postemployment Benefits [Abstract] | ||||
Reduction of plan liability | $ 527 | $ 100 | ||
Amortization period of retirement benefits payable | 4 years 6 months | 4 years | ||
Benefits modification amortization | $ 6 | $ 12 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Contingency [Line Items] | ||||
Effective tax rate | 30.30% | 23.70% | 31.50% | 24.50% |
Effective tax rate increase | 4.40% | 2.70% | ||
Foreign Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Effective tax rate increase | 1.50% |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Number of industrial segments | 2 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Adjusted EBIT to Net Income for Industrial Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Apr. 16, 2018 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||||
Net income | $ 552 | $ 699 | $ 888 | $ 1,124 | ||
Income tax (expense) benefit | (228) | (152) | (387) | (268) | ||
Restructuring expense of Industrial Activities | (6) | (5) | (8) | (6) | ||
Net income (loss) from discontinued operations | 0 | 185 | 0 | 247 | ||
Pre-tax gain from amortization of benefits modification | 6 | 12 | ||||
Amortization period of 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 | (43) | (34) | (72) | (65) | ||
Industrial Activities | Operating segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Adjusted EBIT of Industrial Activities | 654 | 572 | 1,083 | 965 | ||
Net income | 780 | 666 | 1,275 | 1,145 | ||
Interest expense of Industrial Activities, net of interest income and eliminations | (35) | (31) | (70) | (71) | ||
Foreign exchange gains (losses), net of Industrial Activities | 13 | (4) | 0 | (15) | ||
Finance and non-service component of Pension and other post-employment benefit cost of Industrial Activities | 40 | 35 | 77 | 70 | ||
Restructuring expense of Industrial Activities | (6) | (5) | (8) | (6) | ||
Other discrete items of Industrial Activities(2) | (19) | (12) | (58) | (13) | ||
Separation costs | 3 | 8 | 6 | 9 | ||
Proceed from sale of business, held for sale | 16 | 8 | ||||
Asset write-downs | 44 | |||||
Industrial Activities | Operating segments | 2018 Modification of Healthcare Plan | ||||||
Segment Reporting Information [Line Items] | ||||||
Pre-tax gain from amortization of benefits modification | 30 | 60 | $ 30 | $ 60 | ||
Amortization period of retirement benefits payable | 4 years 6 months | |||||
Reduction of plan liability | $ 527 | |||||
Industrial Activities | Operating segments | 2021 Modification of Healthcare Plan | ||||||
Segment Reporting Information [Line Items] | ||||||
Amortization period of retirement benefits payable | 4 years | |||||
Reduction of plan liability | $ 101 | |||||
Agriculture | Operating segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Adjusted EBIT of Industrial Activities | 663 | 582 | 1,089 | 981 | ||
Construction | Operating segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Adjusted EBIT of Industrial Activities | 34 | 24 | 66 | 49 | ||
Financial Services | Operating segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Net income | 95 | 85 | 177 | 163 | ||
Income tax (expense) benefit | $ (38) | $ (26) | $ (74) | $ (52) |
RECEIVABLES - Summary of Financ
RECEIVABLES - Summary of Financing Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | $ 16,537 | $ 15,376 |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | 10,255 | 9,955 |
Wholesale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | 6,249 | 5,373 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | $ 33 | $ 48 |
RECEIVABLES - Additional Inform
RECEIVABLES - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Receivables [Abstract] | |
Contractual payments period | 30 days |
Receivables delinquency period | 90 days |
Foreign currency translation and other | $ 15 |
RECEIVABLES - Summary of Aging
RECEIVABLES - Summary of Aging of Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 10,255 | $ 9,955 |
Retail | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 10,228 | 9,947 |
Retail | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 27 | 8 |
Retail | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 1,782 | 3,159 |
Fiscal year before current fiscal year | 2,614 | 1,689 |
Two years before current fiscal year | 1,316 | 902 |
Three years before current fiscal year | 667 | 531 |
Four years before current fiscal year | 369 | 229 |
Prior | 168 | 73 |
Total | 6,916 | 6,583 |
Retail | North America | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 1,782 | 3,159 |
Fiscal year before current fiscal year | 2,614 | 1,688 |
Two years before current fiscal year | 1,316 | 901 |
Three years before current fiscal year | 667 | 531 |
Four years before current fiscal year | 369 | 229 |
Prior | 167 | 73 |
Total | 6,915 | 6,581 |
Retail | North America | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 1 |
Two years before current fiscal year | 0 | 1 |
Three years before current fiscal year | 0 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 1 | 0 |
Total | 1 | 2 |
Retail | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 428 | 881 |
Fiscal year before current fiscal year | 799 | 524 |
Two years before current fiscal year | 453 | 295 |
Three years before current fiscal year | 242 | 190 |
Four years before current fiscal year | 143 | 105 |
Prior | 104 | 72 |
Total | 2,169 | 2,067 |
Retail | South America | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 428 | 881 |
Fiscal year before current fiscal year | 798 | 524 |
Two years before current fiscal year | 452 | 295 |
Three years before current fiscal year | 241 | 190 |
Four years before current fiscal year | 142 | 105 |
Prior | 104 | 72 |
Total | 2,165 | 2,067 |
Retail | South America | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 1 | 0 |
Two years before current fiscal year | 1 | 0 |
Three years before current fiscal year | 1 | 0 |
Four years before current fiscal year | 1 | 0 |
Prior | 0 | 0 |
Total | 4 | 0 |
Retail | Asia Pacific | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 284 | 579 |
Fiscal year before current fiscal year | 429 | 361 |
Two years before current fiscal year | 255 | 168 |
Three years before current fiscal year | 109 | 100 |
Four years before current fiscal year | 55 | 45 |
Prior | 13 | 5 |
Total | 1,145 | 1,258 |
Retail | Asia Pacific | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 284 | 579 |
Fiscal year before current fiscal year | 428 | 357 |
Two years before current fiscal year | 253 | 167 |
Three years before current fiscal year | 108 | 99 |
Four years before current fiscal year | 54 | 45 |
Prior | 13 | 5 |
Total | 1,140 | 1,252 |
Retail | Asia Pacific | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 1 | 4 |
Two years before current fiscal year | 2 | 1 |
Three years before current fiscal year | 1 | 1 |
Four years before current fiscal year | 1 | 0 |
Prior | 0 | 0 |
Total | 5 | 6 |
Retail | Europe, Middle East, Africa | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 25 | 47 |
Retail | Europe, Middle East, Africa | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 8 | 47 |
Retail | Europe, Middle East, Africa | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 17 | 0 |
Retail | 31-60 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 61 | 28 |
Retail | 31-60 Days Past Due | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 19 | 13 |
Retail | 31-60 Days Past Due | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 34 | 1 |
Retail | 31-60 Days Past Due | Asia Pacific | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 8 | 10 |
Retail | 31-60 Days Past Due | Europe, Middle East, Africa | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 4 |
Retail | 61-90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 10 | 8 |
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 | 0 |
Retail | 61-90 Days Past Due | Asia Pacific | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 10 | 8 |
Retail | 61-90 Days Past Due | Europe, Middle East, Africa | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Retail | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 71 | 36 |
Retail | Total Past Due | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 19 | 13 |
Retail | Total Past Due | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 34 | 1 |
Retail | Total Past Due | Asia Pacific | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 18 | 18 |
Retail | Total Past Due | Europe, Middle East, Africa | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 4 |
Retail | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 10,157 | 9,911 |
Retail | Current | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 6,896 | 6,568 |
Retail | Current | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2,131 | 2,066 |
Retail | Current | Asia Pacific | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 1,122 | 1,234 |
Retail | Current | Europe, Middle East, Africa | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 8 | 43 |
Wholesale | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 6,249 | 5,373 |
Wholesale | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 6,243 | 5,351 |
Wholesale | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 6 | 22 |
Wholesale | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2,699 | 2,339 |
Wholesale | North America | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2,699 | 2,339 |
Wholesale | North America | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Wholesale | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 962 | 655 |
Wholesale | South America | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 962 | 633 |
Wholesale | South America | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 22 |
Wholesale | Asia Pacific | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 487 | 449 |
Wholesale | Asia Pacific | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 481 | 449 |
Wholesale | Asia Pacific | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 6 | 0 |
Wholesale | Europe, Middle East, Africa | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2,101 | 1,930 |
Wholesale | Europe, Middle East, Africa | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2,101 | 1,930 |
Wholesale | Europe, Middle East, Africa | 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 | 8 | 7 |
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 | Asia Pacific | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 3 | 2 |
Wholesale | 31-60 Days Past Due | Europe, Middle East, Africa | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 5 | 5 |
Wholesale | 61-90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 1 | 2 |
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 | Asia Pacific | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 1 | 1 |
Wholesale | 61-90 Days Past Due | Europe, Middle East, Africa | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 1 |
Wholesale | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 9 | 9 |
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 | Asia Pacific | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 4 | 3 |
Wholesale | Total Past Due | Europe, Middle East, Africa | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 5 | 6 |
Wholesale | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 6,234 | 5,342 |
Wholesale | Current | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2,699 | 2,339 |
Wholesale | Current | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 962 | 633 |
Wholesale | Current | Asia Pacific | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 477 | 446 |
Wholesale | Current | Europe, Middle East, Africa | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 2,096 | $ 1,924 |
RECEIVABLES - Allowance for Cre
RECEIVABLES - Allowance for Credit Losses Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Foreign currency translation and other | $ 15 | ||||
Retail | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Opening Balance | $ 244 | 220 | |||
Provision | 14 | $ 1 | 26 | $ 6 | $ 22 |
Charge-offs, net of recoveries | (8) | (3) | (9) | (6) | (22) |
Foreign currency translation and other | (4) | 8 | 9 | (5) | (11) |
Ending Balance | 246 | 226 | 246 | 226 | 220 |
Wholesale | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Opening Balance | 74 | 65 | |||
Provision | (4) | 0 | 3 | 4 | 6 |
Charge-offs, net of recoveries | (5) | (1) | (5) | (1) | 1 |
Foreign currency translation and other | (4) | 5 | (2) | 8 | (4) |
Ending Balance | $ 61 | 73 | $ 61 | 73 | 65 |
Adjusted Balance | Retail | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Opening Balance | 220 | 231 | 231 | ||
Adjusted Balance | Wholesale | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Opening Balance | $ 69 | $ 62 | $ 62 |
RECEIVABLES - Carrying Amount o
RECEIVABLES - Carrying Amount of Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Restricted Receivables | $ 10,893 | $ 10,321 |
Retail note and finance lease receivables | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Restricted Receivables | 6,972 | 6,878 |
Wholesale receivables | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Restricted Receivables | $ 3,921 | $ 3,443 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,972 | $ 1,517 |
Work-in-process | 944 | 570 |
Finished goods | 2,557 | 2,129 |
Total inventories | $ 5,473 | $ 4,216 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||||
Short-term lease expenses | $ 2 | $ 2 | $ 3 | $ 3 | |
Operating lease expenses | 19 | $ 18 | 35 | 34 | |
Operating lease right-of-use assets | 226 | 226 | |||
Operating lease liabilities | $ 227 | $ 227 | $ 196 | ||
Weighted average remaining lease term | 6 years 1 month 6 days | 6 years 1 month 6 days | |||
Weighted average discount rate | 3.60% | 3.60% | |||
Leased assets obtained in exchange for operating lease obligations | $ 73 | 19 | |||
Operating cash outflow for amounts included in the measurement of operating lease obligations | $ 35 | $ 34 | |||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease term | 3 years | 3 years | |||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease term | 5 years | 5 years |
INVESTMENTS IN UNCONSOLIDATED_3
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES - Summary of Investments in Unconsolidated Subsidiaries and Affiliates (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Equity method | $ 271 | $ 286 |
Cost method | 48 | 47 |
Total | $ 319 | $ 333 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES - Changes in the Carrying Amount of Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning | $ 3,210 |
Acquisition | 43 |
Foreign currency translation and other | 6 |
Balance at ending | 3,259 |
Agriculture | |
Goodwill [Roll Forward] | |
Balance at beginning | 3,020 |
Acquisition | 43 |
Foreign currency translation and other | 10 |
Balance at ending | 3,073 |
Construction | |
Goodwill [Roll Forward] | |
Balance at beginning | 49 |
Acquisition | 0 |
Foreign currency translation and other | (4) |
Balance at ending | 45 |
Financial Services | |
Goodwill [Roll Forward] | |
Balance at beginning | 141 |
Acquisition | 0 |
Foreign currency translation and other | 0 |
Balance at ending | $ 141 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill [Line Items] | |||||
Intangible assets, current | $ 500 | ||||
Intangible assets, increase measurement period adjustment | $ 20 | $ 20 | |||
Amortization expense | 34 | $ 21 | 66 | $ 40 | |
Agriculture | Specialty | |||||
Goodwill [Line Items] | |||||
Goodwill, period increase | $ 43 | ||||
Agriculture | Raven and Sampierana | |||||
Goodwill [Line Items] | |||||
Goodwill, period increase | 1,300 | $ 10 | |||
Construction | Raven and Sampierana | |||||
Goodwill [Line Items] | |||||
Goodwill, period increase | $ 51 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLES - Other Intangible Assets and Related Accumulated Amortization (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, gross | $ 2,257 | $ 2,263 |
Other intangible assets subject to amortization, accumulated amortization | 1,353 | 1,328 |
Other intangible assets subject to amortization, net | 904 | 935 |
Other intangible assets not subject to amortization | 272 | 272 |
Total other intangible assets, gross | 2,529 | 2,535 |
Total other intangible assets, net | $ 1,176 | 1,207 |
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 | $ 291 | 290 |
Other intangible assets subject to amortization, accumulated amortization | 237 | 231 |
Other intangible assets subject to amortization, net | 54 | 59 |
Patents, concessions, licenses and other | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, gross | 1,966 | 1,973 |
Other intangible assets subject to amortization, accumulated amortization | 1,116 | 1,097 |
Other intangible assets subject to amortization, net | $ 850 | $ 876 |
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 |
OTHER LIABILITIES - Summary of
OTHER LIABILITIES - Summary of Other Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||||||
Warranty and campaign programs | $ 484 | $ 501 | $ 526 | $ 526 | $ 499 | $ 507 |
Marketing and sales incentive programs | 1,351 | 1,325 | ||||
Tax payables | 446 | 671 | ||||
Accrued expenses and deferred income | 493 | 559 | ||||
Accrued employee benefits | 416 | 544 | ||||
Lease liabilities | 227 | 196 | ||||
Legal reserves and other provisions | 208 | 187 | ||||
Contract reserve | 11 | 12 | ||||
Contract liabilities | 26 | 20 | ||||
Restructuring reserve | 26 | 29 | ||||
Other | 602 | 692 | ||||
Total | $ 4,290 | $ 4,761 |
OTHER LIABILITIES - Summary o_2
OTHER LIABILITIES - Summary of Recorded Activity for Basic Warranty and Accruals for Campaign Programs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||||
Balance at beginning of period | $ 501 | $ 499 | $ 526 | $ 507 |
Current year additions | 117 | 108 | 185 | 192 |
Claims paid | (115) | (93) | (210) | (178) |
Currency translation adjustment and other | (19) | 12 | (17) | 5 |
Balance at end of period | $ 484 | $ 526 | $ 484 | $ 526 |
OTHER LIABILITIES - Additional
OTHER LIABILITIES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other Liabilities [Abstract] | ||||
Restructuring expenses | $ 6 | $ 5 | $ 8 | $ 6 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 USD ($) site | Dec. 31, 2021 USD ($) | |
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 PRP, with resolved liability, or deemed de minimis (in sites) | 60 | |
Incurred and claims to be resolved over extended period of time | 30 years | |
Environmental reserves | $ | $ 27 | $ 29 |
Guarantees at carrying value | $ | $ 18 | $ 15 |
FINANCIAL INSTRUMENTS - Additio
FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Asset write-down | $ 17 | |
Foreign exchange contracts | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Notional amount of foreign exchange derivatives | 6,100 | $ 8,200 |
Interest rate derivatives | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Notional amount of foreign exchange derivatives | 5,500 | $ 6,400 |
Nominal amount of hedging instruments affected by reform of benchmark | $ 1,300 |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in Accumulated Other Comprehensive Income | $ (8) | $ (50) | $ (122) | $ (56) |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (25) | 1 | (43) | 15 |
Foreign exchange contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in Accumulated Other Comprehensive Income | (21) | (55) | (172) | (81) |
Net sales | Foreign exchange contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 1 | (1) | 2 | (3) |
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 | (41) | 2 | (58) | 27 |
Other, Net | Foreign exchange contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 6 | 1 | (4) | (6) |
Interest expense | Interest rate contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in Accumulated Other Comprehensive Income | 13 | 5 | 50 | 25 |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | $ 9 | $ (1) | $ 17 | $ (3) |
FINANCIAL INSTRUMENTS - Summary
FINANCIAL INSTRUMENTS - Summary of Activity in Accumulated Other Comprehensive Income Related to Derivatives (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Before-Tax Amount | ||
Accumulated derivative net losses, beginning of period | $ (3) | $ (5) |
Impact of demerger | 0 | |
Net changes in fair value of derivatives | (122) | (56) |
Net losses reclassified from accumulated other comprehensive income into income | 43 | (15) |
Accumulated derivative net losses, end of period | (82) | (76) |
Income Tax | ||
Accumulated derivative net losses, beginning of period | (14) | (1) |
Impact of demerger | 0 | |
Net changes in fair value of derivatives | 8 | (3) |
Reclassification from AOCI, Current Period, Tax | (8) | 1 |
Accumulated derivative net losses, end of period | (14) | (3) |
After-Tax Amount | ||
Accumulated derivative net losses, beginning of period | (17) | (6) |
Impact of demerger | 0 | |
Net changes in fair value of derivatives | (114) | (59) |
Net losses reclassified from accumulated other comprehensive income into income | 35 | (14) |
Accumulated derivative net losses, end of period | $ (96) | $ (79) |
FINANCIAL INSTRUMENTS - Impact
FINANCIAL INSTRUMENTS - Impact of Changes in Fair Value of Fair Value Hedges and Derivatives Not Designated as Hedging Instruments on Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest expense | Fair Value Hedges | Interest rate derivatives | ||||
Fair Value Hedges | ||||
Interest rate derivatives, fair value hedges | $ (21) | $ (2) | $ (76) | $ (23) |
Other, Net | Foreign exchange contracts | Derivatives not designated as hedging instruments | ||||
Not Designated as Hedges | ||||
Foreign exchange contracts, not designated as hedges | $ 0 | $ (49) | $ (47) | $ (53) |
FINANCIAL INSTRUMENTS - Fair Va
FINANCIAL INSTRUMENTS - Fair Values of Derivatives (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 237 | $ 182 |
Derivative liabilities | 326 | 181 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 141 | 142 |
Derivative liabilities | 248 | 129 |
Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 89 | 65 |
Derivative liabilities | 88 | 28 |
Derivatives designated as hedging instruments | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 52 | 77 |
Derivative liabilities | 160 | 101 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 96 | 40 |
Derivative liabilities | 78 | 52 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 51 | 11 |
Derivative liabilities | 51 | 12 |
Derivatives not designated as hedging instruments | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 45 | 29 |
Derivative liabilities | $ 27 | $ 40 |
FINANCIAL INSTRUMENTS - Fair _2
FINANCIAL INSTRUMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Value on Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 237 | $ 182 |
Derivative liabilities | 326 | 181 |
Fair Value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 237 | 182 |
Total Liabilities | 326 | 181 |
Fair Value, measurements, recurring | Level 1 | ||
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 | 237 | 182 |
Total Liabilities | 326 | 181 |
Fair Value, measurements, recurring | Foreign exchange derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 97 | 106 |
Derivative liabilities | 187 | 141 |
Fair Value, measurements, recurring | Foreign exchange derivatives | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, measurements, recurring | Foreign exchange derivatives | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 97 | 106 |
Derivative liabilities | 187 | 141 |
Fair Value, measurements, recurring | Interest rate derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 140 | 76 |
Derivative liabilities | 139 | 40 |
Fair Value, measurements, recurring | Interest rate derivatives | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, measurements, recurring | Interest rate derivatives | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 140 | 76 |
Derivative liabilities | $ 139 | $ 40 |
FINANCIAL INSTRUMENTS - Fair _3
FINANCIAL INSTRUMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Value on Nonrecurring Basis (Details) - Fair Value, Nonrecurring - Level 3 - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property, plant and equipment, fair value | $ 7 | $ 0 |
Property, plant and equipment, losses | $ 17 | $ 0 |
FINANCIAL INSTRUMENTS - Estimat
FINANCIAL INSTRUMENTS - Estimated Fair Values of Instruments Not Carried at Fair Value in Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivables | $ 16,537 | $ 15,376 |
Debt | 20,817 | 20,897 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivables | 16,304 | 15,605 |
Debt | $ 20,394 | $ 21,091 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Unrealized gain (loss) on cash flow hedges | ||||||
Gross Amount | $ 15 | $ (50) | $ (80) | $ (71) | ||
Income Taxes | 1 | (3) | 1 | (2) | ||
Net Amount | 16 | (53) | (79) | (73) | ||
Changes in retirement plans’ funded status | ||||||
Gross Amount | (34) | (25) | (68) | (49) | ||
Income Taxes | 9 | 8 | 18 | 15 | ||
Net Amount | (25) | (17) | (50) | (34) | ||
Foreign currency translation | ||||||
Gross Amount | 72 | 106 | 331 | 206 | ||
Income Taxes | 0 | 0 | 0 | 0 | ||
Net Amount | 72 | 106 | 331 | 206 | ||
Share of other comprehensive income (loss) of entities using the equity method | ||||||
Gross Amount | (20) | 2 | (29) | (21) | ||
Income Taxes | 0 | 0 | 0 | 0 | ||
Net Amount | (20) | 2 | (29) | (21) | ||
Other comprehensive income (loss) | ||||||
Gross Amount | 33 | 33 | 154 | 65 | ||
Income Taxes | 10 | 5 | 19 | 13 | ||
Other comprehensive income, net of tax | $ 43 | $ 130 | $ 38 | $ 40 | $ 173 | $ 78 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of AOCI (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | $ 6,808 | $ 4,989 |
Ending balance | 5,794 | 6,030 |
Other comprehensive income (loss) allocated to noncontrolling interests | (1) | 2 |
Revision of Prior Period, Adjusted | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | 5,154 | |
Total | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (2,676) | |
Other comprehensive income (loss), before reclassifications | 205 | 151 |
Amounts reclassified from other comprehensive income | (31) | (75) |
Other comprehensive income (loss) | 174 | 76 |
Ending balance | (2,323) | (2,600) |
Total | Revision of Prior Period, Adjusted | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (2,497) | |
Unrealized Gain (Loss) on Cash Flow Hedges | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (6) | |
Other comprehensive income (loss), before reclassifications | (114) | (59) |
Amounts reclassified from other comprehensive income | 35 | (14) |
Other comprehensive income (loss) | (79) | (73) |
Ending balance | (77) | (79) |
Unrealized Gain (Loss) on Cash Flow Hedges | Revision of Prior Period, Adjusted | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | 2 | |
Change in Retirement Plans’ Funded Status | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (653) | |
Other comprehensive income (loss), before reclassifications | 16 | 27 |
Amounts reclassified from other comprehensive income | (66) | (61) |
Other comprehensive income (loss) | (50) | (34) |
Ending balance | (374) | (687) |
Change in Retirement Plans’ Funded Status | Revision of Prior Period, Adjusted | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (324) | |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (1,884) | |
Other comprehensive income (loss), before reclassifications | 332 | 204 |
Amounts reclassified from other comprehensive income | 0 | 0 |
Other comprehensive income (loss) | 332 | 204 |
Ending balance | (1,619) | (1,680) |
Foreign Currency Translation | Revision of Prior Period, Adjusted | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (1,951) | |
Share of Other Comprehensive Income (Loss) of Entities Using the Equity Method | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (133) | |
Other comprehensive income (loss), before reclassifications | (29) | (21) |
Amounts reclassified from other comprehensive income | 0 | 0 |
Other comprehensive income (loss) | (29) | (21) |
Ending balance | (253) | $ (154) |
Share of Other Comprehensive Income (Loss) of Entities Using the Equity Method | Revision of Prior Period, Adjusted | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | $ (224) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | $ 6,082 | $ 5,174 | $ 10,727 | $ 9,270 |
Cost of goods sold | (4,377) | (3,716) | (7,663) | (6,612) |
Other, net | (148) | (156) | (331) | (298) |
Interest expense | (162) | (137) | (300) | (290) |
Income taxes | (228) | (152) | (387) | (268) |
Net income | 552 | 699 | 888 | 1,124 |
Reclassification out of accumulated other comprehensive income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income | (13) | (35) | (31) | (75) |
Reclassification out of accumulated other comprehensive income | Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income taxes | (7) | (8) | (14) | (8) |
Net income | (33) | (34) | (66) | (61) |
Reclassification out of accumulated other comprehensive income | Unrealized Gain (Loss) on Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | (1) | 1 | (2) | 3 |
Cost of goods sold | 41 | (2) | 58 | (27) |
Other, net | (6) | (1) | 4 | 6 |
Interest expense | (9) | 1 | (17) | 3 |
Income taxes | (5) | 0 | (8) | 1 |
Net income | 20 | (1) | 35 | (14) |
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 | 6 | 8 | 11 | 15 |
Amortization of prior service cost | $ (32) | $ (34) | $ (63) | $ (68) |
RELATED PARTY INFORMATION - Add
RELATED PARTY INFORMATION - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
EXOR N.V. | ||
Related Party Transaction [Line Items] | ||
Percentage of common shares outstanding held by related parties | 42.50% | |
CNH Industrial Capital Europe S.A.S. | ||
Related Party Transaction [Line Items] | ||
Pledged guarantees on commitments | $ 18 | $ 15 |
RELATED PARTY INFORMATION - Sch
RELATED PARTY INFORMATION - Schedule of Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||||
Receivables from Iveco Group N.V. | $ 281 | $ 281 | $ 0 | ||
Trade payables | 73 | 73 | 502 | ||
FCA Group | |||||
Related Party Transaction [Line Items] | |||||
Net sales | 0 | $ 0 | 0 | $ 0 | |
Cost of goods sold | 6 | 10 | 11 | 18 | |
Selling, general and administrative expenses | 12 | 15 | 25 | 28 | |
Trade receivables | 0 | 0 | 0 | ||
Trade payables | 16 | 16 | 20 | ||
Iveco Group post-Demerger | |||||
Related Party Transaction [Line Items] | |||||
Net sales | 21 | 5 | 21 | 10 | |
Cost of goods sold | 243 | 258 | 503 | 489 | |
Trade receivables | 27 | 27 | 87 | ||
Trade payables | 194 | 194 | 181 | ||
Unconsolidated subsidiaries and affiliates | |||||
Related Party Transaction [Line Items] | |||||
Net sales | 96 | 99 | 222 | 212 | |
Cost of goods sold | 123 | $ 124 | 244 | $ 231 | |
Trade receivables | 0 | 0 | 0 | ||
Trade payables | $ 73 | $ 73 | $ 101 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Jul. 28, 2022 - Subsequent Event € in Millions, $ in Millions | USD ($) | EUR (€) |
Subsequent Event [Line Items] | ||
Authorized amount of share repurchases | $ | $ 300 | |
Stock repurchase program, remaining authorized repurchase amount | € | € 100 |