Cover Page
Cover Page | 9 Months Ended |
Sep. 30, 2023 shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2023 |
Document Transition Report | false |
Entity File Number | 001-36085 |
Entity Registrant Name | CNH INDUSTRIAL N.V. |
Entity Incorporation, State or Country Code | P7 |
Entity Tax Identification Number | 98-1125413 |
Entity Address, Address Line One | Cranes Farm Road |
Entity Address, City or Town | Basildon, Essex |
Entity Address, Postal Zip Code | SS14 3AD |
Entity Address, Country | GB |
City Area Code | +44 |
Local Phone Number | 207 925 1964 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 1,330,483,676 |
Entity Central Index Key | 0001567094 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q3 |
Common Shares | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Shares, par value €0.01 |
Trading Symbol | CNHI |
Security Exchange Name | NYSE |
3.850% Notes Due 2027 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 3.850% Notes due 2027 |
Trading Symbol | CNHI27 |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 2,979 | $ 4,376 |
Restricted cash | 706 | 753 |
Trade receivables, net | 199 | 172 |
Financing receivables, net | 22,240 | 19,260 |
Receivables from Iveco Group N.V. | 229 | 298 |
Inventories, net | 6,447 | 4,811 |
Property, plant and equipment, net | 1,681 | 1,532 |
Investments in unconsolidated subsidiaries and affiliates | 477 | 385 |
Equipment under operating leases | 1,454 | 1,502 |
Goodwill, net | 3,490 | 3,322 |
Other intangible assets, net | 1,237 | 1,129 |
Deferred tax assets | 704 | 433 |
Derivative assets | 163 | 189 |
Other assets | 1,035 | 1,219 |
Total Assets | 43,041 | 39,381 |
Liabilities and Equity | ||
Debt | 24,958 | 22,962 |
Payables to Iveco Group N.V. | 76 | 156 |
Trade payables | 3,574 | 3,702 |
Deferred tax liabilities | 26 | 85 |
Pension, postretirement and other postemployment benefits | 421 | 449 |
Derivative liabilities | 246 | 204 |
Other liabilities | 5,625 | 4,847 |
Total Liabilities | 34,926 | 32,405 |
Redeemable noncontrolling interest | 58 | 49 |
Common shares, €0.01, par value; outstanding 1,330,483,676 common shares and 371,000,610 loyalty program special voting shares at 9/30/2023; and outstanding 1,344,240,971 common shares and 371,072,953 loyalty program special voting shares at 12/31/2022 | 25 | 25 |
Treasury stock, at cost; 33,916,520 common shares at 9/30/2023 and 20,159,225 common shares at 12/31/2022 | (437) | (230) |
Additional paid in capital | 1,563 | 1,504 |
Retained earnings | 9,134 | 7,906 |
Accumulated other comprehensive income (loss) | (2,300) | (2,278) |
Noncontrolling interests | 72 | 0 |
Total Equity | 8,057 | 6,927 |
Total Liabilities and Equity | $ 43,041 | $ 39,381 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - € / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common shares, par value (in eur per share) | € 0.01 | € 0.01 |
Common shares, shares outstanding (in shares) | 1,330,483,676 | 1,344,240,971 |
Special voting shares, shares outstanding (in shares) | 371,000,610 | 371,072,953 |
Treasury stock, shares (in shares) | 33,916,520 | 20,159,225 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | ||||
Net sales | $ 5,332 | $ 5,396 | $ 16,062 | $ 15,189 |
Finance, interest and other income | 654 | 485 | 1,833 | 1,419 |
Total Revenues | 5,986 | 5,881 | 17,895 | 16,608 |
Costs and Expenses | ||||
Cost of goods sold | 4,059 | 4,156 | 12,133 | 11,819 |
Selling, general and administrative expenses | 462 | 422 | 1,385 | 1,224 |
Research and development expenses | 266 | 213 | 766 | 609 |
Restructuring expenses | 5 | 11 | 8 | 19 |
Interest expense | 346 | 190 | 941 | 490 |
Other, net | 186 | 159 | 536 | 490 |
Total Costs and Expenses | 5,324 | 5,151 | 15,769 | 14,651 |
Income of Consolidated Group before Income Taxes | 662 | 730 | 2,126 | 1,957 |
Income tax (expense) benefit | (171) | (192) | (536) | (579) |
Equity in income of unconsolidated subsidiaries and affiliates | 79 | 21 | 176 | 69 |
Net income (loss) | 570 | 559 | 1,766 | 1,447 |
Net income (loss) attributable to noncontrolling interests | 3 | 3 | 11 | 10 |
Net income (loss) attributable to CNH Industrial N.V. | $ 567 | $ 556 | $ 1,755 | $ 1,437 |
Earnings per share attributable to common shareholders | ||||
Basic (in usd per share) | $ 0.43 | $ 0.41 | $ 1.31 | $ 1.06 |
Diluted (in usd per share) | $ 0.42 | $ 0.41 | $ 1.30 | $ 1.06 |
Weighted average shares outstanding | ||||
Weighted average common shares outstanding—basic (in shares) | 1,332 | 1,350 | 1,337 | 1,354 |
Weighted average common shares outstanding—diluted (in shares) | 1,351 | 1,355 | 1,355 | 1,359 |
Cash dividends declared per common share (in usd per share) | $ 0 | $ 0 | $ 0.396 | $ 0.302 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 570 | $ 559 | $ 1,766 | $ 1,447 |
Other comprehensive income (loss), net of tax | ||||
Unrealized gain (loss) on cash flow hedges | (33) | (10) | (59) | (89) |
Changes in retirement plans’ funded status | (3) | (14) | (11) | (64) |
Foreign currency translation | (14) | 96 | 70 | 427 |
Share of other comprehensive income (loss) of entities using the equity method | (8) | (13) | (23) | (42) |
Other comprehensive income (loss), net of tax | (58) | 59 | (23) | 232 |
Comprehensive income (loss) | 512 | 618 | 1,743 | 1,679 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | (1) | 3 | 10 | 9 |
Comprehensive income (loss) attributable to CNH Industrial N.V. | $ 513 | $ 615 | $ 1,733 | $ 1,670 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows from Operating Activities | ||
Net Income (loss) | $ 1,766 | $ 1,447 |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | ||
Depreciation and amortization expense excluding depreciation and amortization of assets under operating leases | 276 | 252 |
Depreciation and amortization expense of assets under operating leases | 140 | 155 |
(Gain) loss on disposal of assets, net | 21 | 22 |
Undistributed (income) loss of unconsolidated subsidiaries | (125) | (36) |
Other non-cash items, net | 136 | 130 |
Changes in operating assets and liabilities: | ||
Provisions | 618 | (21) |
Deferred income taxes | (319) | 83 |
Trade and financing receivables related to sales, net | (1,602) | (1,279) |
Inventories, net | (1,443) | (1,121) |
Trade payables | (101) | (120) |
Other assets and liabilities | 25 | (398) |
Net cash provided (used) by operating activities | (608) | (886) |
Cash Flows from Investing Activities | ||
Additions to retail receivables | (5,689) | (4,179) |
Collections of retail receivables | 4,308 | 3,342 |
Proceeds from the sale of assets, excluding assets under operating leases | 1 | 25 |
Expenditures for property, plant and equipment and intangible assets, excluding assets under operating leases | (401) | (245) |
Expenditures for assets under operating leases | (384) | (368) |
Other | 123 | (165) |
Net cash provided (used) by investing activities | (2,042) | (1,590) |
Cash Flows from Financing Activities | ||
Proceeds from long-term debt | 7,510 | 7,727 |
Payments of long-term debt | (6,478) | (6,733) |
Net increase in other financial liabilities | 930 | 340 |
Dividends paid | (531) | (416) |
Purchase of treasury stock and other | (224) | (116) |
Net cash provided (used) by financing activities | 1,207 | 802 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (1) | (357) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (1,444) | (2,031) |
Cash, cash equivalents and restricted cash, beginning of year | 5,129 | 5,845 |
Cash, cash equivalents and restricted cash, end of period | $ 3,685 | $ 3,814 |
CONSOLIDATED STATEMENTS OF CHAN
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, 2021 | $ 6,808 | $ (1,654) | $ 5,154 | $ 25 | $ 25 | $ (84) | $ (84) | $ 4,464 | $ (3,044) | $ 1,420 | $ 4,818 | $ 1,464 | $ 6,282 | $ (2,497) | $ (2,445) | $ (52) | $ (2,497) | $ 30 | $ (22) | $ 8 | |||||||||
Beginning balance, redeemable noncontrolling interests at Dec. 31, 2021 | $ 45 | $ 45 | |||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
Net income (loss) | $ 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 | $ (1,654) | $ 5,154 | $ 25 | $ 25 | $ (84) | $ (84) | $ 4,464 | $ (3,044) | $ 1,420 | $ 4,818 | $ 1,464 | $ 6,282 | (2,497) | $ (2,445) | $ (52) | $ (2,497) | $ 30 | $ (22) | $ 8 | |||||||||
Beginning balance, redeemable noncontrolling interests at Dec. 31, 2021 | $ 45 | $ 45 | |||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 232 | 233 | |||||||||||||||||||||||||||
Ending balance at Sep. 30, 2022 | 6,357 | 25 | (193) | 1,479 | 7,307 | (2,264) | 3 | ||||||||||||||||||||||
Ending balance, redeemable noncontrolling interests at Sep. 30, 2022 | 52 | ||||||||||||||||||||||||||||
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 (loss) | 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 | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
Net income (loss) | 554 | 556 | (2) | ||||||||||||||||||||||||||
Net income, redeemable non controlling interests | 5 | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 59 | 59 | |||||||||||||||||||||||||||
Dividends paid | (1) | ||||||||||||||||||||||||||||
Acquisition of treasury stock | (76) | (76) | |||||||||||||||||||||||||||
Common shares issued from treasury stock and capital increase for share-based compensation | 4 | (4) | |||||||||||||||||||||||||||
Share-based compensation expense | 23 | 23 | |||||||||||||||||||||||||||
Other changes | 3 | 4 | (1) | (1) | |||||||||||||||||||||||||
Ending balance at Sep. 30, 2022 | 6,357 | 25 | (193) | 1,479 | 7,307 | (2,264) | 3 | ||||||||||||||||||||||
Ending balance, redeemable noncontrolling interests at Sep. 30, 2022 | 52 | ||||||||||||||||||||||||||||
Beginning balance at Dec. 31, 2022 | 6,927 | 25 | (230) | 1,504 | 7,906 | (2,278) | 0 | ||||||||||||||||||||||
Beginning balance, redeemable noncontrolling interests at Dec. 31, 2022 | 49 | 49 | |||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
Net income (loss) | 482 | 482 | |||||||||||||||||||||||||||
Net income, redeemable non controlling interests | 4 | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (37) | (38) | 1 | ||||||||||||||||||||||||||
Dividends paid | (1) | ||||||||||||||||||||||||||||
Acquisition of treasury stock | (71) | (71) | |||||||||||||||||||||||||||
Share-based compensation expense | 24 | 24 | |||||||||||||||||||||||||||
Other changes | 74 | 74 | |||||||||||||||||||||||||||
Ending balance at Mar. 31, 2023 | 7,399 | 25 | (301) | 1,528 | 8,388 | (2,316) | 75 | ||||||||||||||||||||||
Ending balance, redeemable noncontrolling interests at Mar. 31, 2023 | 52 | ||||||||||||||||||||||||||||
Beginning balance at Dec. 31, 2022 | 6,927 | 25 | (230) | 1,504 | 7,906 | (2,278) | 0 | ||||||||||||||||||||||
Beginning balance, redeemable noncontrolling interests at Dec. 31, 2022 | 49 | 49 | |||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (23) | (22) | |||||||||||||||||||||||||||
Ending balance at Sep. 30, 2023 | 8,057 | 25 | (437) | 1,563 | 9,134 | (2,300) | 72 | ||||||||||||||||||||||
Ending balance, redeemable noncontrolling interests at Sep. 30, 2023 | 58 | 58 | |||||||||||||||||||||||||||
Beginning balance at Mar. 31, 2023 | 7,399 | 25 | (301) | 1,528 | 8,388 | (2,316) | 75 | ||||||||||||||||||||||
Beginning balance, redeemable noncontrolling interests at Mar. 31, 2023 | 52 | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
Net income (loss) | 706 | 706 | |||||||||||||||||||||||||||
Net income, redeemable non controlling interests | 4 | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 72 | 70 | 2 | ||||||||||||||||||||||||||
Dividends paid | (527) | (527) | (1) | ||||||||||||||||||||||||||
Acquisition of treasury stock | (98) | (98) | |||||||||||||||||||||||||||
Common shares issued from treasury stock and capital increase for share-based compensation | 17 | (17) | |||||||||||||||||||||||||||
Share-based compensation expense | 25 | 25 | |||||||||||||||||||||||||||
Other changes | (2) | (2) | |||||||||||||||||||||||||||
Ending balance at Jun. 30, 2023 | 7,575 | 25 | (382) | 1,536 | 8,567 | (2,246) | 75 | ||||||||||||||||||||||
Ending balance, redeemable noncontrolling interests at Jun. 30, 2023 | 55 | ||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
Net income (loss) | 565 | 567 | (2) | ||||||||||||||||||||||||||
Net income, redeemable non controlling interests | 5 | ||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (58) | (54) | (4) | ||||||||||||||||||||||||||
Dividends paid | (2) | ||||||||||||||||||||||||||||
Acquisition of treasury stock | (55) | (55) | |||||||||||||||||||||||||||
Common shares issued from treasury stock and capital increase for share-based compensation | 0 | 0 | |||||||||||||||||||||||||||
Share-based compensation expense | 28 | 28 | |||||||||||||||||||||||||||
Other changes | 2 | (1) | 3 | ||||||||||||||||||||||||||
Ending balance at Sep. 30, 2023 | 8,057 | $ 25 | $ (437) | $ 1,563 | $ 9,134 | $ (2,300) | $ 72 | ||||||||||||||||||||||
Ending balance, redeemable noncontrolling interests at Sep. 30, 2023 | $ 58 | $ 58 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2023 | |
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 Basildon, England, United Kingdom. Unless otherwise indicated or the context otherwise requires, the terms “CNH Industrial”, "CNH" and the “Company” refer to CNH Industrial and its consolidated subsidiaries. The 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 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 reflected in these consolidated financial statements. 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 10-K for the year ended December 31, 2022. 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. Significant uncertainties, including rising inflation, and geopolitical events may impact 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 region. Our geographic regions are: (1) North America; (2) Europe, Middle East and Africa ("EMEA"); (3) South America and (4) Asia Pacific. 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 and Balkans, Russia, Turkey, Uzbekistan, Pakistan, the African continent, and the Middle East; • South America : Central and South America, and the Caribbean Islands; and • Asia Pacific : Continental Asia (including the India subcontinent), Indonesia and Oceania. Business Combinations On March 13, 2023, CNH Industrial purchased Augmenta Holding SAS ("Augmenta"). The Company acquired the remaining 89.5% of Augmenta it did not own for cash consideration of approximately $79 million and a deferred payment of $10 million. At March 31, 2023, CNH Industrial recorded preliminary estimates for the fair value of assets acquired and liabilities assumed as of the acquisition date, including $76 million and $35 million in preliminary goodwill and intangible assets, respectively. The valuation of assets acquired and liabilities assumed has not yet been finalized as of September 30, 2023. Thus, goodwill associated with the acquisition is subject to adjustment during the measurement period. Measurement period adjustments were recorded in the second and third quarters of 2023 reducing goodwill by $14 million primarily offset by increases in intangible assets as a result of updates of certain of the valuations. Pro forma results of operations have not been presented because the effects of the Augmenta acquisition were not material to the Company’s consolidated results of operations. Additionally, Augmenta's post-acquisition results were not material. On March 15, 2023, CNH Industrial acquired a controlling interest in Bennamann LTD ("Bennamann") (ownership interest of 50.0085%) by purchasing an additional 34.4% interest through cash consideration of approximately $51 million. At March 31, 2023, CNH Industrial recorded preliminary estimates for the fair value of assets acquired and liabilities assumed as of the acquisition date, including $118 million and $46 million in preliminary goodwill and intangible assets, respectively. The valuation of assets acquired and liabilities assumed has not yet been finalized as of September 30, 2023. Thus, goodwill associated with the acquisition is subject to adjustment during the measurement period. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS Adopted in 2023 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 adopted ASU 2021-08 and applied the guidance within ASU 2021-08 on business combinations beginning January 1, 2023. The adoption did not have a material impact on our consolidated financial statements. Troubled Debt Restructurings and Vintage Disclosures In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losse s (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 adopted ASU 2022-02 and applied the guidance within ASU 2022-02 to its consolidated financial statements and disclosures prospectively beginning January 1, 2023. The adoption did not have a material impact on the Company's consolidated financial statements and note disclosures. Supplier Finance Programs Disclosures In September 2022, the FASB issued ASU 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations ("ASU 2022-04"). ASU 2022-04 requires the buyer in a supplier finance program to disclose information about the key terms of the program, outstanding confirmed amounts as of the end of the period, a roll forward of such amounts during each annual period, and a description of where in the financial statements outstanding amounts are presented. ASU 2022-04 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the disclosure of roll forward information, which is effective for fiscal years beginning after December 15, 2023. The Company adopted ASU 2022-04 and applied the guidance within ASU 2022-04 to its disclosures beginning January 1, 2023. As these amendments relate to disclosures only, there are no impacts to the Company’s consolidated financial statements. Under the supply chain finance programs, administered by a third party, our suppliers are given the opportunity to sell receivables from us to participating financial institutions at their sole discretion. Our responsibility is limited to making payment on the terms originally negotiated with our supplier, regardless of whether the supplier sells its receivable to a financial institution. The range of payment terms we negotiate with our suppliers is consistent, irrespective of whether a supplier participates in the program. As of September 30, 2023 and December 31, 2022, $193 million and $189 million of obligations remain outstanding that we have confirmed as valid to the administrators of the supply chain finance programs. These balances are included within “Accounts payable” in our consolidated balance sheets and are reflected as cash flow from operating activities in our consolidated statements of cash flows when settled. 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. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 (ASU 2022-06"). ASU 2022-06 extended the sunset date of ASC Topic 848 from December 31, 2022 to December 31, 2024. The Company elected to adopt ASU 2020-04 and ASU 2022-06 in the second quarter of 2023. The Company renegotiated its contract terms on its interest rate derivatives by changing the floating interest rate swap from LIBOR to overnight SOFR. The Company elected to make the change using the optional expedients under ASC 848, which allows the change in critical terms without de-designation and results in no change to the cumulative basis adjustment reflected in earnings. The elections did not have a material impact on our consolidated financial statements for the nine months ended September 30, 2023. Not Yet Adopted Leases between entities under common control In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements ("ASU 2023-01"). ASU 2023-01 requires that leasehold improvements associated with common control leases be amortized by the lessee over the useful life of the leasehold improvements to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset. Additionally, the leasehold improvements are subject to the impairment guidance in Topic 360: Property, Plant and Equipment . The amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact, if any, of adoption to our consolidated financial statements. Disclosure improvements In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative , to amend certain disclosure and presentation requirements for a variety of topics within the Accounting Standards Codification (“ASC”). These amendments align the requirements in the ASC to the removal of certain disclosure requirements set out in Regulation S-X and Regulation S-K, announced by the SEC. The effective date for each amended topic in the ASC is the date on which the SEC’s removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. Early adoption is prohibited. The Company does not anticipate that the ASU will have a significant effect on its financial statements and related disclosures. |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The following table summarizes revenues for the three and nine months ended September 30, 2023 and 2022 (in millions of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Agriculture $ 4,384 $ 4,501 $ 13,201 $ 12,600 Construction 948 895 2,861 2,589 Total Industrial Activities 5,332 5,396 16,062 15,189 Financial Services 653 482 1,805 1,419 Eliminations and other 1 3 28 — Total Revenues $ 5,986 $ 5,881 $ 17,895 $ 16,608 The following table disaggregates revenues by major source for the three and nine months ended September 30, 2023 and 2022 (in millions of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenues from: Sales of goods $ 5,322 $ 5,388 $ 16,031 $ 15,166 Rendering of services and other revenues 10 8 31 23 Revenues from sales of goods and services 5,332 5,396 16,062 15,189 Finance and interest income 491 303 1,342 815 Rents and other income on operating lease 163 182 491 604 Finance, interest and other income 654 485 1,833 1,419 Total Revenues $ 5,986 $ 5,881 $ 17,895 $ 16,608 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2023 | |
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 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 (in millions of dollars). September 30, 2023 December 31, 2022 Restricted cash $ 556 $ 595 Financing receivables 9,344 8,808 Total Assets $ 9,900 $ 9,403 Debt $ 8,930 $ 8,485 Total Liabilities $ 8,930 $ 8,485 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
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 of dollars and shares, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Basic EPS attributable to common shareholders Net income (loss) attributable to CNH Industrial $ 567 $ 556 $ 1,755 $ 1,437 Weighted average common shares outstanding—basic 1,332 1,350 1,337 1,354 Basic EPS attributable to CNH Industrial N.V. $ 0.43 $ 0.41 $ 1.31 $ 1.06 Diluted EPS attributable to common shareholders Weighted average common shares outstanding—basic 1,332 1,350 1,337 1,354 Stock compensation plans (1) 19 5 18 5 Weighted average common shares outstanding—diluted 1,351 1,355 1,355 1,359 Diluted EPS attributable to CNH Industrial N.V. $ 0.42 $ 0.41 $ 1.30 $ 1.06 |
EMPLOYEE BENEFIT PLANS AND POST
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS | 9 Months Ended |
Sep. 30, 2023 | |
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 nine months ended September 30, 2023 and 2022 (in millions of dollars): Pension Healthcare Other Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, 2023 2022 2023 2022 2023 2022 Service cost $ 3 $ 2 $ 1 $ 1 $ 2 $ 1 Interest cost 14 6 3 2 1 1 Expected return on assets (12) (11) (2) (1) — — Amortization of: Prior service credit — — (9) (31) — — Actuarial loss (gain) 4 4 — 1 (1) — Net periodic benefit cost $ 9 $ 1 $ (7) $ (28) $ 2 $ 2 Pension Healthcare Other Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 2023 2022 Service cost $ 7 $ 8 $ 2 $ 3 $ 4 $ 4 Interest cost 41 20 7 5 3 1 Expected return on assets (34) (35) (3) (4) — — Amortization of: Prior service credit — — (27) (94) — — Actuarial loss (gain) 13 14 — 2 (1) — Net periodic benefit cost $ 27 $ 7 $ (21) $ (88) $ 6 $ 5 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 of $527 million. This amount was 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. The amount was completely amortized as of December 31, 2022. For the three and nine months ended September 30, 2022, $30 million and $90 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 U.S. retiree medical plan. The plan changes resulted in a reduction of the plan liability of $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 nine months ended September 30, 2023 and 2022, $6 million and $18 million of amortization was recorded as a pre-tax gain in Other, net, respectively. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe effective tax rate for the three months ended September 30, 2023 and 2022 was 25.8% and 26.3%, respectively. The 2023 effective tax rate for the three months ended September 30, 2023 was lower than the effective tax rate for the three months ended September 30, 2022 due to a lower share of consolidated earnings in higher taxing jurisdictions compared to the prior year. The effective tax rate for the nine months ended September 30, 2023 and 2022 was 25.2% and 29.6%, respectively. The 2023 effective tax rate was reduced by the tax benefits related to the sale of CNH Industrial Russia, although these benefits were partially offset by discrete tax expenses associated with prior periods. The 2022 effective tax rate was increased by pre-tax losses for which deferred tax assets were not recognized, the de-recognition of certain deferred tax assets, increased charges for unrecognized tax benefits, and a discrete tax charge resulting from the sale of Raven’s Engineered Films division. 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 nine-month period ended September 30, 2023, there were no changes in our assessment of deferred tax asset positions that impacted the Company’s tax rate for the period. During the nine-month period ended September 30, 2022, the Company changed its assessment regarding the recognition of its Russian deferred tax assets and applied a full valuation allowance as of the beginning of the period. The Company operates in many jurisdictions around the world and is routinely subject to income tax audits. As various ongoing audits are concluded, or as the applicable statutes of limitations expire, it is possible the Company’s amount of unrecognized tax benefits could change during the next twelve months. We do not expect changes to our assessment to have a material impact on the Company's results of operations, balance sheet, or cash flows. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
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, combines, 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. Regionally focused brands include: STEYR, for agricultural tractors; Flexi-Coil specializing in tillage and seeding systems; Miller manufacturing application equipment; and Kongskilde providing tillage, seeding and hay & forage implements. The Raven brand supports digital agriculture, precision technology and the development of autonomous systems. 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 offers retail note and lease financing to end-use customers for the purchase of new and used agricultural and construction equipment and components sold through CNH Industrial brands' dealer network, as well as revolving charge account financing and other financial services. Financial Services also provides wholesale financing to CNH Industrial brand dealers and distributors. Further, Financial Services 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 Financial Services provides financial services to Iveco Group companies in the North America, South America and Asia Pacific regions. The activities carried out by 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 ongoing 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 nine months ended September 30, 2023 and 2022 (in millions of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Agriculture $ 672 $ 666 $ 2,063 $ 1,755 Construction 60 24 176 90 Unallocated items, eliminations and other (75) (20) (205) (92) Total Adjusted EBIT of Industrial Activities 657 670 2,034 1,753 Financial Services Net income (loss) 86 86 258 263 Financial Services Income Taxes 34 32 89 106 Interest expense of Industrial Activities, net of interest income and eliminations (10) (27) (36) (97) Foreign exchange gains (losses), net of Industrial Activities (21) (14) (27) (14) Finance and non-service component of Pension and other post-employment benefit cost of Industrial Activities (1) — 35 2 112 Restructuring expense of Industrial Activities (5) (11) (8) (19) Other discrete items (2) — (20) (10) (78) Income (loss) before taxes 741 751 2,302 2,026 Income tax (expense) benefit (171) (192) (536) (579) Net income (loss) $ 570 $ 559 $ 1,766 $ 1,447 (1) In the three and nine months ended September 30, 2023 and 2022, this item includes the pre-tax gain of $6 million and $18 million as a result of the amortization over the 4 years of the $101 million positive impact from the 2021 modifications of a healthcare plan in the U.S. In the three and nine months ended September 30, 2022, this item includes the pre-tax gain of $30 million and $90 million as a result of the 2018 modification of a healthcare plan in the U.S. |
RECEIVABLES
RECEIVABLES | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
RECEIVABLES | RECEIVABLES Financing Receivables, net A summary of financing receivables as of September 30, 2023 and December 31, 2022 is as follows (in millions of dollars): September 30, 2023 December 31, 2022 Retail $ 12,826 $ 11,446 Wholesale 9,379 7,785 Other 35 29 Total $ 22,240 $ 19,260 CNH Industrial provides and administers retail note and lease financing to end-use customers for the purchase of new and used equipment and components sold through its dealer network, as well as revolving charge account financing. The terms of retail notes and finance leases generally range from two Wholesale receivables arise primarily from dealer floorplan financing, and to a lesser extent, the financing of dealer operations. Under the standard terms of the wholesale receivable agreements, these receivables typically have "interest- free" periods of up to twelve months and stated original maturities of up to twenty-four months, with repayment accelerated upon the sale of the underlying equipment by the dealer. Financial Services is compensated by Industrial Activities for providing the "interest-free" period based on market interest rates. After the expiration of any "interest-free" period, interest is charged to dealers on outstanding balances until CNH Industrial receives payment in full. The "interest-free" periods are determined based on the type of equipment sold and the time of year of the sale. The Company evaluates and assesses dealers on an ongoing basis as to their creditworthiness. CNH Industrial may be obligated to repurchase the dealer's equipment upon cancellation or termination of the dealer's contract for such causes as change in ownership, closeout of the business, or default. There were no significant losses in the three and nine months ended September 30, 2023 and 2022 relating to the termination of dealer contracts. Transfers of Financial Assets As part of its overall funding strategy, CNH Industrial periodically transfers certain receivables into special purpose entities (“SPE”) as part of its asset backed securitization ("ABS") programs or into factoring transactions. SPEs utilized in the securitization programs differ from other entities included in the Company's consolidated financial statements because the assets they hold are legally isolated from the Company's assets. For bankruptcy analysis purposes, the Company has sold the receivables to the SPEs in a true sale and the SPEs are separate legal entities. Upon transfer of the receivables to the SPEs, the receivables and certain cash flows derived from them become restricted for use in meeting obligations to the SPEs' creditors. The SPEs have ownership of cash balances that also have restrictions for the benefit of the SPEs' investors. The Company's interests in the SPEs' receivables are subordinate to the interests of third-party investors. None of the receivables that are directly or indirectly sold or transferred in any of these transactions are available to pay the Company's creditors until all obligations of the SPE have been fulfilled or the receivables are removed from the SPE. Certain securitization trusts are also VIEs and consequently, the VIEs are consolidated since the Company has both the power to direct the activities that most significantly impact the VIEs' economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. The Company may retain all or a portion of the subordinated interests in the SPEs. No recourse provisions exist that allow holders of the asset-backed securities issued by the trusts to put those securities back to the Company, although the Company provides customary representations and warranties that could give rise to an obligation to repurchase from the trusts any receivables for which there is a breach of the representations and warranties. Moreover, the Company does not guarantee any securities issued by the trusts. The trusts have a limited life and generally terminate upon final distribution of amounts owed to investors or upon exercise of a cleanup call option by the Company, in its role as servicer. Factoring transactions may be either with recourse or without recourse; certain without recourse transfers include deferred payment clauses (i.e., 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, CNH Industrial continued to recognize the receivable transferred by this means in its consolidated statement of financial position and recognizes a financial liability of the same amount under asset-backed financing. The secured borrowings related to the transferred receivables are obligations that are payable as the receivables are collected. At September 30, 2023 and December 31, 2022, the carrying amount of such restricted assets included in financing receivables are the following (in millions of dollars): Restricted Receivables September 30, 2023 December 31, 2022 Retail note and finance lease receivables $ 7,117 $ 6,766 Wholesale receivables 5,953 4,582 Total $ 13,070 $ 11,348 Allowance for Credit Losses Allowance for credit losses for the three and nine months ended September 30, 2023 is as follows (in millions of dollars): Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Retail Wholesale Retail Wholesale Opening Balance $ 280 $ 60 $ 270 $ 64 Provision 31 (3) 67 (6) Charge-offs (4) (1) (25) (1) Recoveries — — 1 — Foreign currency translation and other (6) — (12) (1) Ending Balance $ 301 $ 56 $ 301 $ 56 At September 30, 2023, the allowance for credit losses included an increase in reserves due to specific reserve needs primarily in South America, partially offset by a decrease in reserves of $15 million due to the sale of CNH Capital Russia. CNH Industrial will update the macroeconomic factors in future periods as warranted. The provision for credit losses is included in selling, general and administrative expenses. Allowance for credit losses for the three and nine months ended September 30, 2022 is as follows (in millions of dollars): Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Retail Wholesale Retail Wholesale Opening Balance $ 246 $ 61 $ 220 $ 65 Provision 15 (3) 41 — Charge-offs, net of recoveries (4) (1) (13) (6) Foreign currency translation and other (8) (2) 1 (4) Ending Balance $ 249 $ 55 $ 249 $ 55 CNH Industrial assesses and monitors the credit quality of its financing receivables based on whether a receivable is classified as performing or non-performing. 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. Accrued interest is charged-off to interest income. Interest income charged-off was not material for the three and nine months ended September 30, 2023 and 2022. 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 and charge-offs as of September 30, 2023 is as follows (in millions of dollars): 31-60 Days 61-90 Days Total Past Current Total Non- Total Charge-offs Retail North America 2023 $ 2,824 $ 2 $ 2,826 $ — 2022 2,444 2 2,446 8 2021 1,516 2 1,518 3 2020 672 1 673 3 2019 275 1 276 3 Prior to 2019 118 1 119 2 Total $ 38 $ 9 $ 47 $ 7,802 $ 7,849 $ 9 $ 7,858 $ 19 South America 2023 $ 1,572 $ 4 $ 1,576 $ — 2022 934 34 968 — 2021 576 17 593 1 2020 303 7 310 4 2019 126 3 129 — Prior to 2019 105 2 107 1 Total $ 34 $ 2 $ 36 $ 3,580 $ 3,616 $ 67 $ 3,683 $ 6 Asia Pacific 2023 $ 543 $ 1 $ 544 $ — 2022 381 1 382 — 2021 216 2 218 — 2020 94 1 95 — 2019 26 1 27 — Prior to 2019 3 — 3 — Total $ 6 $ 7 $ 13 $ 1,250 $ 1,263 $ 6 $ 1,269 $ — Europe, Middle East, Africa $ — $ — $ — $ 6 $ 6 $ 10 $ 16 $ — Total Retail $ 78 $ 18 $ 96 $ 12,638 $ 12,734 $ 92 $ 12,826 $ 25 Wholesale North America $ — $ — $ — $ 4,825 $ 4,825 $ — $ 4,825 $ — South America 1 — 1 1,366 1,367 — 1,367 — Asia Pacific 4 1 5 779 784 — 784 1 Europe, Middle East, Africa 5 — 5 2,398 2,403 — 2,403 — Total Wholesale $ 10 $ 1 $ 11 $ 9,368 $ 9,379 $ — $ 9,379 $ 1 The aging of financing receivables as of December 31, 2022 is as follows (in millions of dollars): 31-60 Days 61-90 Days Total Past Current Total Non- Total Retail North America 2022 $ 3,558 $ — $ 3,558 2021 2,035 1 2,036 2020 994 — 994 2019 472 — 472 2018 225 — 225 Prior to 2018 65 — 65 Total $ 42 $ 16 $ 58 $ 7,291 $ 7,349 $ 1 $ 7,350 South America 2022 $ 1,179 $ 2 $ 1,181 2021 725 3 728 2020 408 2 410 2019 207 1 208 2018 116 — 116 Prior to 2018 95 — 95 Total $ 12 $ — $ 12 $ 2,718 $ 2,730 $ 8 $ 2,738 Asia Pacific 2022 $ 601 $ — $ 601 2021 400 1 401 2020 220 1 221 2019 84 — 84 2018 35 — 35 Prior to 2018 3 — 3 Total $ 8 $ 8 $ 16 $ 1,327 $ 1,343 $ 2 $ 1,345 Europe, Middle East, Africa $ — $ — $ — $ 2 $ 2 $ 11 $ 13 Total Retail $ 62 $ 24 $ 86 $ 11,338 $ 11,424 $ 22 $ 11,446 Wholesale North America $ — $ — $ — $ 3,378 $ 3,378 $ — $ 3,378 South America — — — 1,416 1,416 — 1,416 Asia Pacific — — — 494 494 — 494 Europe, Middle East, Africa 7 2 9 2,488 2,497 — 2,497 Total Wholesale $ 7 $ 2 $ 9 $ 7,776 $ 7,785 $ — $ 7,785 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. As of September 30, 2023 and 2022, CNH Industrial's TDRs were immaterial. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories as of September 30, 2023 and December 31, 2022 consist of the following (in millions of dollars): September 30, 2023 December 31, 2022 Raw materials $ 2,111 $ 1,955 Work-in-process 637 471 Finished goods 3,699 2,385 Total inventories $ 6,447 $ 4,811 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASES Lessee The Company's leases are primarily operating lease contracts for buildings, plant and machinery, vehicles, information technology ("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 $1 million and $4 million in the three months ended September 30, 2023 and 2022, respectively, and $4 million and $7 million in the nine months ended September 30, 2023 and 2022. For the three months ended September 30, 2023 and 2022, the Company incurred operating lease expenses of $25 million and $18 million, respectively, and $64 million and $53 million in the nine months ended September 30, 2023 and 2022, respectively. At September 30, 2023, the Company has recorded approximately $237 million of right-of-use assets and $241 million of related lease liability included in Other assets and Other liabilities, respectively. At September 30, 2023, 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 5.3 years and 4.3%, respectively. During the nine months ended September 30, 2023 and 2022 leased assets obtained in exchange for operating lease obligations were $77 million and $82 million, respectively. The operating cash outflow for amounts included in the measurement of operating lease obligations was $61 million and $52 million as of September 30, 2023 and 2022, 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's leases are primarily operating lease contracts for buildings, plant and machinery, vehicles, information technology ("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 $1 million and $4 million in the three months ended September 30, 2023 and 2022, respectively, and $4 million and $7 million in the nine months ended September 30, 2023 and 2022. For the three months ended September 30, 2023 and 2022, the Company incurred operating lease expenses of $25 million and $18 million, respectively, and $64 million and $53 million in the nine months ended September 30, 2023 and 2022, respectively. At September 30, 2023, the Company has recorded approximately $237 million of right-of-use assets and $241 million of related lease liability included in Other assets and Other liabilities, respectively. At September 30, 2023, 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 5.3 years and 4.3%, respectively. During the nine months ended September 30, 2023 and 2022 leased assets obtained in exchange for operating lease obligations were $77 million and $82 million, respectively. The operating cash outflow for amounts included in the measurement of operating lease obligations was $61 million and $52 million as of September 30, 2023 and 2022, 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 | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 and December 31, 2022 is as follows (in millions of dollars): September 30, 2023 December 31, 2022 Equity method $ 423 $ 331 Cost method 54 54 Total $ 477 $ 385 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES Changes in the carrying amount of goodwill for the nine months ended September 30, 2023 were as follows (in millions of dollars): Agriculture Construction Financial Total Balance at January 1, 2023 $ 3,136 $ 46 $ 140 $ 3,322 Acquisition 177 — — 177 Foreign currency translation and other (9) — — (9) Balance at September 30, 2023 $ 3,304 $ 46 $ 140 $ 3,490 Goodwill and other indefinite-lived intangible assets are tested for impairment annually or more frequently if a triggering event occurred 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, 2022 and concluded that there was no impairment to goodwill for any of the reporting entities. The acquisitions of Augmenta Holding SAS and Bennamann LTD during the first quarter of 2023 led to an increase in goodwill for Agriculture of $76 million and $118 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. During the second and third quarters of 2023, measurement period adjustments were recorded reducing goodwill by $14 million and $3 million for Augmenta and Bennamann, respectively. The valuations of assets acquired and liabilities assumed have not yet been finalized as of September 30, 2023. Thus, goodwill associated with the acquisitions is subject to adjustment during the measurement period. As of September 30, 2023 and December 31, 2022, the Company’s other intangible assets and related accumulated amortization consisted of the following (in millions of dollars): September 30, 2023 December 31, 2022 Weighted Gross Accumulated Net Gross Accumulated Net Other intangible assets subject to Dealer networks 15 $ 252 $ 227 $ 25 $ 291 $ 242 $ 49 Patents, concessions, licenses and other 5-25 1,991 1,262 729 1,796 1,153 643 2,243 1,489 754 2,087 1,395 692 Other intangible assets not subject to In-process research and development 211 — 211 165 — 165 Trademarks 272 — 272 272 — 272 Total other intangible assets $ 2,726 $ 1,489 $ 1,237 $ 2,524 $ 1,395 $ 1,129 During the first quarter of 2023, the Company recorded $81 million in intangible assets based on the preliminary valuation for the Augmenta and Bennamann acquisitions. Measurement period adjustments were recorded in the second and third quarters increasing intangible assets by $12 million and $5 million for Augmenta and Bennamann, respectively. The valuation of assets acquired and liabilities assumed has not been finalized as of September 30, 2023. The intangible assets associated with the acquisitions are subject to adjustment during the measurement period. |
OTHER LIABILITIES
OTHER LIABILITIES | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LIABILITIES | OTHER LIABILITIES A summary of other liabilities as of September 30, 2023 and December 31, 2022 is as follows (in millions of dollars): September 30, 2023 December 31, 2022 Warranty and campaign programs $ 566 $ 544 Marketing and sales incentive programs 2,159 1,556 Tax payables 507 506 Accrued expenses and deferred income 886 700 Accrued employee benefits 511 535 Lease liabilities 241 228 Legal reserves and other provisions 304 263 Contract reserve 19 16 Contract liabilities 43 33 Restructuring reserve 17 30 Other 372 436 Total $ 5,625 $ 4,847 Warranty and Campaign Programs CNH Industrial pays for basic warranty and other service action costs. A summary of recorded activity for the three and nine months ended September 30, 2023 and 2022 for the basic warranty and accruals for campaign programs are as follows (in millions of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Balance beginning of period $ 588 $ 484 $ 544 $ 526 Current year additions 131 118 396 303 Claims paid (143) (110) (370) (320) Currency translation adjustment and other (10) (17) (4) (34) Balance end of period $ 566 $ 475 $ 566 $ 475 Restructuring Expense The Company incurred restructuring expenses of $5 million and $11 million during the three months ended September 30, 2023 and 2022, respectively. The Company incurred restructuring expenses of $8 million and $19 million during the nine months ended September 30, 2023 and 2022, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
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. 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 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 September 30, 2023 and December 31, 2022, environmental reserves of approximately $24 million and $25 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 Investigations Iveco Follow-on Damages Claims : in 2011 Iveco S.p.A. (“Iveco”), which, following the Demerger, is now part of Iveco Group N.V., and its competitors in the European Union were subject to an investigation by the European Commission (the “Commission”) into certain business practices in the European Union (in the period 1997-2011) in relation to Medium 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 defendants in proceedings across Europe. The consummation of the Demerger will not allow CNH Industrial to be excluded from current and future follow-on proceedings originating from the Decision because under EU competition law a company cannot use corporate reorganizations to avoid liability for private damage claims. In the event one or more of these judicial proceedings would result in a decision against CNH Industrial ordering it to compensate such claimants as a result of the conduct that was the subject matter of the Decision, and Iveco and IMAG 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 on 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 September 30, 2023 and December 31, 2022 totaling of $31 million and $19 million, respectively. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS CNH Industrial 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. CNH Industrial 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. CNH Industrial designates derivatives that are effective at reducing the risk associated with the exposure being hedged as accounting hedges at the inception of the contract and 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 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 $6.9 billion and $5.9 billion at September 30, 2023 and December 31, 2022, 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 nine months ended September 30, 2023 and 2022. All of CNH Industrial’s interest rate derivatives outstanding as of September 30, 2023 and December 31, 2022 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 $8.1 billion and $6.4 billion at September 30, 2023 and December 31, 2022, respectively. As a result of the reform and replacement of specific benchmark interest rates, the Company elected to make the replacement using the optional expedient under ASC 848, which allows the change in critical terms without de-designation and the Company also elected the optional expedient to apply a spread adjustment to hedged items cash flows that resulted in no change to the cumulative basis adjustment reflected in earnings. Financial Statement Impact of 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 nine months ended September 30, 2023 and 2022 (in millions of dollars): Recognized in Net Income For the Three Months Ended September 30, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2023 Foreign exchange contracts $ (33) Net sales (3) Cost of goods sold 13 Other, net (15) Interest rate contracts (12) Interest expense 2 Total $ (45) $ (3) 2022 Foreign exchange contracts $ (87) Net sales — Cost of goods sold (77) Other, net 8 Interest rate contracts 1 Interest expense 8 Total $ (86) $ (61) Recognized in Net Income For the Nine Months Ended September 30, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2023 Foreign exchange contracts $ (44) Net sales (7) Cost of goods sold (19) Other, net 10 Interest rate contracts (46) Interest expense 10 Total $ (90) $ (6) 2022 Foreign exchange contracts $ (248) Net sales 2 Cost of goods sold (135) Other, net 4 Interest rate contracts 41 Interest expense 25 Total $ (207) $ (104) The following table summarizes the activity in accumulated other comprehensive income related to the derivatives held by the Company during the nine months ended September 30, 2023 and 2022 (in millions of dollars): Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net gain as of December 31, 2022 $ 71 $ (27) $ 44 Net changes in fair value of derivatives (90) 30 (60) Net losses reclassified from accumulated other comprehensive income into income 6 (3) 3 Accumulated derivative net losses as of September 30, 2023 $ (13) $ — $ (13) Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2021 $ (3) $ (14) $ (17) Impact of demerger 19 — 19 Net changes in fair value of derivatives (207) 27 (180) Net losses reclassified from accumulated other comprehensive income into income 104 (13) 91 Accumulated derivative net losses as of September 30, 2022 $ (87) $ — $ (87) The following tables summarize the earnings impact related to changes in the fair value of fair value hedges and derivatives not designated as hedges during the three and nine months ended September 30, 2023 and 2022 (in millions of dollars): For the Three Months Ended September 30, Classification of Gain (Loss) 2023 2022 Fair Value Hedges Interest rate derivatives Interest expense $ (3) $ (31) Not Designated as Hedges Foreign exchange contracts Other, Net $ (10) $ 21 For the Nine Months Ended September 30, Classification of Gain (Loss) 2023 2022 Fair Value Hedges Interest rate derivatives Interest expense $ (2) $ (106) Not Designated as Hedges Foreign exchange contracts Other, Net $ (44) $ (25) The fair values of CNH Industrial’s derivatives as of September 30, 2023 and December 31, 2022 in the consolidated balance sheets are recorded as follows (in millions of dollars): September 30, 2023 December 31, 2022 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate contracts Derivative assets $ 54 Derivative assets $ 77 Foreign currency contracts Derivative assets 38 Derivative assets 70 Total derivative assets $ 92 $ 147 Interest rate contracts Derivative liabilities $ 125 Derivative liabilities $ 106 Foreign currency contracts Derivative liabilities 67 Derivative liabilities 56 Total derivative liabilities $ 192 $ 162 Derivatives not designated as hedging instruments Interest rate contracts Derivative assets $ 44 Derivative assets $ 28 Foreign currency contracts Derivative assets 27 Derivative assets 14 Total derivative assets $ 71 $ 42 Interest rate contracts Derivative liabilities $ 44 Derivative liabilities $ 28 Foreign currency contracts Derivative liabilities 10 Derivative liabilities 14 Total derivative liabilities $ 54 $ 42 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 September 30, 2023 and December 31, 2022 (in millions of dollars): Level 1 Level 2 Total September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Assets Foreign exchange derivatives $ — $ — $ 65 $ 84 $ 65 $ 84 Interest rate derivatives — — 98 105 98 105 Total Assets $ — $ — $ 163 $ 189 $ 163 $ 189 Liabilities Foreign exchange derivatives $ — $ — $ 77 $ 70 $ 77 $ 70 Interest rate derivatives — — 169 134 169 134 Total Liabilities $ — $ — $ 246 $ 204 $ 246 $ 204 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 nine months ended September 30, 2022. The following tables present the fair value for nonrecurring Level 3 measurements from impairments recorded in the nine months ended September 30, 2023 and 2022 (in millions of dollars): Fair Value Losses 2023 2022 2023 2022 Property, plant and equipment $ — $ 7 $ — $ 17 The following is a description of the valuation methodologies the Company uses for non-monetary assets measured 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 consolidated balance sheets approximates its fair value. Financial Instruments Not Carried at Fair Value The estimated fair market values of financial instruments not carried at fair value in the consolidated balance sheets as of September 30, 2023 and December 31, 2022 were as follows (in millions of dollars): September 30, 2023 December 31, 2022 Carrying Fair Carrying Fair Financing receivables $ 22,240 $ 22,075 $ 19,260 $ 18,827 Debt $ 24,958 $ 24,884 $ 22,962 $ 22,651 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) | 9 Months Ended |
Sep. 30, 2023 | |
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 non-controlling 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) for the three and nine months ended September 30, 2023 and 2022 consisted of the following (in millions of dollars): Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Gross Income Net Gross Income Net Unrealized gain (loss) on cash flow hedges $ (42) $ 9 $ (33) $ (84) $ 25 $ (59) Changes in retirement plans’ funded status (5) 2 (3) (16) 5 (11) Foreign currency translation (14) — (14) 70 — 70 Share of other comprehensive income (loss) of entities using the equity method (8) — (8) (23) — (23) Other comprehensive income (loss) $ (69) $ 11 $ (58) $ (53) $ 30 $ (23) Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Gross Income Net Gross Income Net Unrealized gain (loss) on cash flow hedges $ (23) $ 13 $ (10) $ (103) $ 14 $ (89) Changes in retirement plans’ funded status (21) 7 (14) (89) 25 (64) Foreign currency translation 96 — 96 427 — 427 Share of other comprehensive income (loss) of entities using the equity method (13) — (13) (42) — (42) Other comprehensive income (loss) $ 39 $ 20 $ 59 $ 193 $ 39 $ 232 The changes, net of tax, in each component of accumulated other comprehensive income (loss) in the nine months ended September 30, 2023 and 2022 consisted of the following (in millions of dollars): Unrealized Change in Foreign Currency Share of Other Total Balance January 1, 2022 $ 2 $ (324) $ (1,951) $ (224) $ (2,497) Other comprehensive income (loss), before reclassifications (180) 36 428 (42) 242 Amounts reclassified from other comprehensive income 91 (100) — — (9) Other comprehensive income (loss)* (89) (64) 428 (42) 233 Balance September 30, 2022 $ (87) $ (388) $ (1,523) $ (266) $ (2,264) Balance January 1, 2023 $ 46 $ (285) $ (1,800) $ (239) $ (2,278) Other comprehensive income (loss), before reclassifications (62) (1) 71 (23) (15) Amounts reclassified from other comprehensive income 3 (10) — — (7) Other comprehensive income (loss)* (59) (11) 71 (23) (22) Balance September 30, 2023 $ (13) $ (296) $ (1,729) $ (262) $ (2,300) (*) Excluded from the table above is other comprehensive income (loss) allocated to non-controlling interests of $(1) million and $1 million for the nine months ended September 30, 2023 and 2022, respectively. Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three and nine months ended September 30, 2023 and 2022 consisted of the following (in millions of dollars): Amounts Reclassified from Other Consolidated Statement Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cash flow hedges $ 3 $ — $ 7 $ (2) Net sales (13) 77 19 135 Cost of goods sold 15 (8) (10) (4) Other, net (2) (8) (10) (25) Interest expense — (5) (3) (13) Income taxes $ 3 $ 56 $ 3 $ 91 Change in retirement plans’ funded status: Amortization of actuarial losses $ 3 $ 5 $ 12 $ 16 * Amortization of prior service cost (9) (31) (27) (94) * 3 (8) 5 (22) Income taxes $ (3) $ (34) $ (10) $ (100) Total reclassifications, net of tax $ — $ 22 $ (7) $ (9) (*) 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 | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY INFORMATION | RELATED PARTY INFORMATIONAs of September 30, 2023, 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. and its subsidiaries and affiliates ("Stellantis"), Ferrari N.V. 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 September 30, 2023, EXOR N.V. held 41.7% 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 September 30, 2023. 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 September 30, 2023 and December 31, 2022, 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 nine months ended September 30, 2023 and 2022. 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, 2023 and full year 2022, 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. At June 30, 2023, the Stellantis MSA was terminated. Costs incurred by CNH Industrial related to the termination of the contract were not material. 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 consolidated financial statements as follows (in millions of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net sales $ — $ — $ — $ — Cost of goods sold 1 3 7 14 Selling, general and administrative expenses 7 11 29 36 September 30, 2023 December 31, 2022 Trade receivables $ — $ — Trade payables 12 14 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 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 consolidated financial statements as follows (in millions of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net sales $ 68 $ 12 $ 125 $ 33 Cost of goods sold 274 218 808 721 September 30, 2023 December 31, 2022 Trade receivables $ 24 $ 21 Receivables from Iveco Group N.V. 229 298 Trade payables 206 184 Payables to Iveco Group N.V. 76 156 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 (in millions of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net sales $ 137 $ 79 $ 430 $ 301 Cost of goods sold 171 138 497 382 September 30, 2023 December 31, 2022 Trade receivables $ 1 $ — Trade payables 91 100 At September 30, 2023 and December 31, 2022, CNH Industrial had provided guarantees totaling $31 million and $19 million, respectively, on certain commitments of its affiliate CNH Industrial Capital Europe S.a.S. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Effective October 12, 2023, CNH Industrial closed on its purchase of Hemisphere GNSS ("Hemisphere"), a global satellite navigation technology leader, for a total consideration of $175 million. The acquisition of Hemisphere consolidates our guidance and connectivity capabilities to advance CNH Industrial's in-house precision, automation and autonomy technology for the agriculture and construction industries. CNH Industrial completed the sixth and final tranche of its $300 million buyback program ("Buyback Program") on November 6, 2023, with additional purchases of the Company's common stock of approximately $26 million. On November 7, 2023, the Company announced that the Board of Directors approved a new share buyback program. Under the new share buyback program, the Company may repurchase periodically up to $1 billion worth of its common shares between November 8, 2023 and March 1, 2024. |
NEW ACCOUNTING PRONOUNCEMENTS (
NEW ACCOUNTING PRONOUNCEMENTS (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The 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 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 reflected in these consolidated financial statements. 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 10-K for the year ended December 31, 2022. 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. Significant uncertainties, including rising inflation, and geopolitical events may impact 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 region. Our geographic regions are: (1) North America; (2) Europe, Middle East and Africa ("EMEA"); (3) South America and (4) Asia Pacific. 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 and Balkans, Russia, Turkey, Uzbekistan, Pakistan, the African continent, and the Middle East; • South America : Central and South America, and the Caribbean Islands; and • Asia Pacific : Continental Asia (including the India subcontinent), Indonesia and Oceania. |
New Accounting Policies Adopted and Not Yet Adopted | Adopted in 2023 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 adopted ASU 2021-08 and applied the guidance within ASU 2021-08 on business combinations beginning January 1, 2023. The adoption did not have a material impact on our consolidated financial statements. Troubled Debt Restructurings and Vintage Disclosures In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losse s (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 adopted ASU 2022-02 and applied the guidance within ASU 2022-02 to its consolidated financial statements and disclosures prospectively beginning January 1, 2023. The adoption did not have a material impact on the Company's consolidated financial statements and note disclosures. Supplier Finance Programs Disclosures In September 2022, the FASB issued ASU 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations ("ASU 2022-04"). ASU 2022-04 requires the buyer in a supplier finance program to disclose information about the key terms of the program, outstanding confirmed amounts as of the end of the period, a roll forward of such amounts during each annual period, and a description of where in the financial statements outstanding amounts are presented. ASU 2022-04 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the disclosure of roll forward information, which is effective for fiscal years beginning after December 15, 2023. The Company adopted ASU 2022-04 and applied the guidance within ASU 2022-04 to its disclosures beginning January 1, 2023. As these amendments relate to disclosures only, there are no impacts to the Company’s consolidated financial statements. Under the supply chain finance programs, administered by a third party, our suppliers are given the opportunity to sell receivables from us to participating financial institutions at their sole discretion. Our responsibility is limited to making payment on the terms originally negotiated with our supplier, regardless of whether the supplier sells its receivable to a financial institution. The range of payment terms we negotiate with our suppliers is consistent, irrespective of whether a supplier participates in the program. As of September 30, 2023 and December 31, 2022, $193 million and $189 million of obligations remain outstanding that we have confirmed as valid to the administrators of the supply chain finance programs. These balances are included within “Accounts payable” in our consolidated balance sheets and are reflected as cash flow from operating activities in our consolidated statements of cash flows when settled. 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. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 (ASU 2022-06"). ASU 2022-06 extended the sunset date of ASC Topic 848 from December 31, 2022 to December 31, 2024. The Company elected to adopt ASU 2020-04 and ASU 2022-06 in the second quarter of 2023. The Company renegotiated its contract terms on its interest rate derivatives by changing the floating interest rate swap from LIBOR to overnight SOFR. The Company elected to make the change using the optional expedients under ASC 848, which allows the change in critical terms without de-designation and results in no change to the cumulative basis adjustment reflected in earnings. The elections did not have a material impact on our consolidated financial statements for the nine months ended September 30, 2023. Not Yet Adopted Leases between entities under common control In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements ("ASU 2023-01"). ASU 2023-01 requires that leasehold improvements associated with common control leases be amortized by the lessee over the useful life of the leasehold improvements to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset. Additionally, the leasehold improvements are subject to the impairment guidance in Topic 360: Property, Plant and Equipment . The amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact, if any, of adoption to our consolidated financial statements. Disclosure improvements In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative , to amend certain disclosure and presentation requirements for a variety of topics within the Accounting Standards Codification (“ASC”). These amendments align the requirements in the ASC to the removal of certain disclosure requirements set out in Regulation S-X and Regulation S-K, announced by the SEC. The effective date for each amended topic in the ASC is the date on which the SEC’s removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. Early adoption is prohibited. The Company does not anticipate that the ASU will have a significant effect on its financial statements and related disclosures. |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue by Segment and Source | The following table summarizes revenues for the three and nine months ended September 30, 2023 and 2022 (in millions of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Agriculture $ 4,384 $ 4,501 $ 13,201 $ 12,600 Construction 948 895 2,861 2,589 Total Industrial Activities 5,332 5,396 16,062 15,189 Financial Services 653 482 1,805 1,419 Eliminations and other 1 3 28 — Total Revenues $ 5,986 $ 5,881 $ 17,895 $ 16,608 The following table disaggregates revenues by major source for the three and nine months ended September 30, 2023 and 2022 (in millions of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenues from: Sales of goods $ 5,322 $ 5,388 $ 16,031 $ 15,166 Rendering of services and other revenues 10 8 31 23 Revenues from sales of goods and services 5,332 5,396 16,062 15,189 Finance and interest income 491 303 1,342 815 Rents and other income on operating lease 163 182 491 604 Finance, interest and other income 654 485 1,833 1,419 Total Revenues $ 5,986 $ 5,881 $ 17,895 $ 16,608 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 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 (in millions of dollars). September 30, 2023 December 31, 2022 Restricted cash $ 556 $ 595 Financing receivables 9,344 8,808 Total Assets $ 9,900 $ 9,403 Debt $ 8,930 $ 8,485 Total Liabilities $ 8,930 $ 8,485 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 of dollars and shares, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Basic EPS attributable to common shareholders Net income (loss) attributable to CNH Industrial $ 567 $ 556 $ 1,755 $ 1,437 Weighted average common shares outstanding—basic 1,332 1,350 1,337 1,354 Basic EPS attributable to CNH Industrial N.V. $ 0.43 $ 0.41 $ 1.31 $ 1.06 Diluted EPS attributable to common shareholders Weighted average common shares outstanding—basic 1,332 1,350 1,337 1,354 Stock compensation plans (1) 19 5 18 5 Weighted average common shares outstanding—diluted 1,351 1,355 1,355 1,359 Diluted EPS attributable to CNH Industrial N.V. $ 0.42 $ 0.41 $ 1.30 $ 1.06 |
EMPLOYEE BENEFIT PLANS AND PO_2
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 nine months ended September 30, 2023 and 2022 (in millions of dollars): Pension Healthcare Other Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, 2023 2022 2023 2022 2023 2022 Service cost $ 3 $ 2 $ 1 $ 1 $ 2 $ 1 Interest cost 14 6 3 2 1 1 Expected return on assets (12) (11) (2) (1) — — Amortization of: Prior service credit — — (9) (31) — — Actuarial loss (gain) 4 4 — 1 (1) — Net periodic benefit cost $ 9 $ 1 $ (7) $ (28) $ 2 $ 2 Pension Healthcare Other Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 2023 2022 Service cost $ 7 $ 8 $ 2 $ 3 $ 4 $ 4 Interest cost 41 20 7 5 3 1 Expected return on assets (34) (35) (3) (4) — — Amortization of: Prior service credit — — (27) (94) — — Actuarial loss (gain) 13 14 — 2 (1) — Net periodic benefit cost $ 27 $ 7 $ (21) $ (88) $ 6 $ 5 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 nine months ended September 30, 2023 and 2022 (in millions of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Agriculture $ 672 $ 666 $ 2,063 $ 1,755 Construction 60 24 176 90 Unallocated items, eliminations and other (75) (20) (205) (92) Total Adjusted EBIT of Industrial Activities 657 670 2,034 1,753 Financial Services Net income (loss) 86 86 258 263 Financial Services Income Taxes 34 32 89 106 Interest expense of Industrial Activities, net of interest income and eliminations (10) (27) (36) (97) Foreign exchange gains (losses), net of Industrial Activities (21) (14) (27) (14) Finance and non-service component of Pension and other post-employment benefit cost of Industrial Activities (1) — 35 2 112 Restructuring expense of Industrial Activities (5) (11) (8) (19) Other discrete items (2) — (20) (10) (78) Income (loss) before taxes 741 751 2,302 2,026 Income tax (expense) benefit (171) (192) (536) (579) Net income (loss) $ 570 $ 559 $ 1,766 $ 1,447 (1) In the three and nine months ended September 30, 2023 and 2022, this item includes the pre-tax gain of $6 million and $18 million as a result of the amortization over the 4 years of the $101 million positive impact from the 2021 modifications of a healthcare plan in the U.S. In the three and nine months ended September 30, 2022, this item includes the pre-tax gain of $30 million and $90 million as a result of the 2018 modification of a healthcare plan in the U.S. |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Summary of Financing Receivables | A summary of financing receivables as of September 30, 2023 and December 31, 2022 is as follows (in millions of dollars): September 30, 2023 December 31, 2022 Retail $ 12,826 $ 11,446 Wholesale 9,379 7,785 Other 35 29 Total $ 22,240 $ 19,260 |
Summary of Carrying Amount of Restricted Assets | At September 30, 2023 and December 31, 2022, the carrying amount of such restricted assets included in financing receivables are the following (in millions of dollars): Restricted Receivables September 30, 2023 December 31, 2022 Retail note and finance lease receivables $ 7,117 $ 6,766 Wholesale receivables 5,953 4,582 Total $ 13,070 $ 11,348 |
Summary of Aging of Financing Receivables | The aging of financing receivables and charge-offs as of September 30, 2023 is as follows (in millions of dollars): 31-60 Days 61-90 Days Total Past Current Total Non- Total Charge-offs Retail North America 2023 $ 2,824 $ 2 $ 2,826 $ — 2022 2,444 2 2,446 8 2021 1,516 2 1,518 3 2020 672 1 673 3 2019 275 1 276 3 Prior to 2019 118 1 119 2 Total $ 38 $ 9 $ 47 $ 7,802 $ 7,849 $ 9 $ 7,858 $ 19 South America 2023 $ 1,572 $ 4 $ 1,576 $ — 2022 934 34 968 — 2021 576 17 593 1 2020 303 7 310 4 2019 126 3 129 — Prior to 2019 105 2 107 1 Total $ 34 $ 2 $ 36 $ 3,580 $ 3,616 $ 67 $ 3,683 $ 6 Asia Pacific 2023 $ 543 $ 1 $ 544 $ — 2022 381 1 382 — 2021 216 2 218 — 2020 94 1 95 — 2019 26 1 27 — Prior to 2019 3 — 3 — Total $ 6 $ 7 $ 13 $ 1,250 $ 1,263 $ 6 $ 1,269 $ — Europe, Middle East, Africa $ — $ — $ — $ 6 $ 6 $ 10 $ 16 $ — Total Retail $ 78 $ 18 $ 96 $ 12,638 $ 12,734 $ 92 $ 12,826 $ 25 Wholesale North America $ — $ — $ — $ 4,825 $ 4,825 $ — $ 4,825 $ — South America 1 — 1 1,366 1,367 — 1,367 — Asia Pacific 4 1 5 779 784 — 784 1 Europe, Middle East, Africa 5 — 5 2,398 2,403 — 2,403 — Total Wholesale $ 10 $ 1 $ 11 $ 9,368 $ 9,379 $ — $ 9,379 $ 1 The aging of financing receivables as of December 31, 2022 is as follows (in millions of dollars): 31-60 Days 61-90 Days Total Past Current Total Non- Total Retail North America 2022 $ 3,558 $ — $ 3,558 2021 2,035 1 2,036 2020 994 — 994 2019 472 — 472 2018 225 — 225 Prior to 2018 65 — 65 Total $ 42 $ 16 $ 58 $ 7,291 $ 7,349 $ 1 $ 7,350 South America 2022 $ 1,179 $ 2 $ 1,181 2021 725 3 728 2020 408 2 410 2019 207 1 208 2018 116 — 116 Prior to 2018 95 — 95 Total $ 12 $ — $ 12 $ 2,718 $ 2,730 $ 8 $ 2,738 Asia Pacific 2022 $ 601 $ — $ 601 2021 400 1 401 2020 220 1 221 2019 84 — 84 2018 35 — 35 Prior to 2018 3 — 3 Total $ 8 $ 8 $ 16 $ 1,327 $ 1,343 $ 2 $ 1,345 Europe, Middle East, Africa $ — $ — $ — $ 2 $ 2 $ 11 $ 13 Total Retail $ 62 $ 24 $ 86 $ 11,338 $ 11,424 $ 22 $ 11,446 Wholesale North America $ — $ — $ — $ 3,378 $ 3,378 $ — $ 3,378 South America — — — 1,416 1,416 — 1,416 Asia Pacific — — — 494 494 — 494 Europe, Middle East, Africa 7 2 9 2,488 2,497 — 2,497 Total Wholesale $ 7 $ 2 $ 9 $ 7,776 $ 7,785 $ — $ 7,785 |
Summary of Allowance for Credit Loss Activity | Allowance for credit losses for the three and nine months ended September 30, 2023 is as follows (in millions of dollars): Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Retail Wholesale Retail Wholesale Opening Balance $ 280 $ 60 $ 270 $ 64 Provision 31 (3) 67 (6) Charge-offs (4) (1) (25) (1) Recoveries — — 1 — Foreign currency translation and other (6) — (12) (1) Ending Balance $ 301 $ 56 $ 301 $ 56 Allowance for credit losses for the three and nine months ended September 30, 2022 is as follows (in millions of dollars): Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Retail Wholesale Retail Wholesale Opening Balance $ 246 $ 61 $ 220 $ 65 Provision 15 (3) 41 — Charge-offs, net of recoveries (4) (1) (13) (6) Foreign currency translation and other (8) (2) 1 (4) Ending Balance $ 249 $ 55 $ 249 $ 55 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories as of September 30, 2023 and December 31, 2022 consist of the following (in millions of dollars): September 30, 2023 December 31, 2022 Raw materials $ 2,111 $ 1,955 Work-in-process 637 471 Finished goods 3,699 2,385 Total inventories $ 6,447 $ 4,811 |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 and December 31, 2022 is as follows (in millions of dollars): September 30, 2023 December 31, 2022 Equity method $ 423 $ 331 Cost method 54 54 Total $ 477 $ 385 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the nine months ended September 30, 2023 were as follows (in millions of dollars): Agriculture Construction Financial Total Balance at January 1, 2023 $ 3,136 $ 46 $ 140 $ 3,322 Acquisition 177 — — 177 Foreign currency translation and other (9) — — (9) Balance at September 30, 2023 $ 3,304 $ 46 $ 140 $ 3,490 |
Summary of Other Intangible Assets | As of September 30, 2023 and December 31, 2022, the Company’s other intangible assets and related accumulated amortization consisted of the following (in millions of dollars): September 30, 2023 December 31, 2022 Weighted Gross Accumulated Net Gross Accumulated Net Other intangible assets subject to Dealer networks 15 $ 252 $ 227 $ 25 $ 291 $ 242 $ 49 Patents, concessions, licenses and other 5-25 1,991 1,262 729 1,796 1,153 643 2,243 1,489 754 2,087 1,395 692 Other intangible assets not subject to In-process research and development 211 — 211 165 — 165 Trademarks 272 — 272 272 — 272 Total other intangible assets $ 2,726 $ 1,489 $ 1,237 $ 2,524 $ 1,395 $ 1,129 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Liabilities | A summary of other liabilities as of September 30, 2023 and December 31, 2022 is as follows (in millions of dollars): September 30, 2023 December 31, 2022 Warranty and campaign programs $ 566 $ 544 Marketing and sales incentive programs 2,159 1,556 Tax payables 507 506 Accrued expenses and deferred income 886 700 Accrued employee benefits 511 535 Lease liabilities 241 228 Legal reserves and other provisions 304 263 Contract reserve 19 16 Contract liabilities 43 33 Restructuring reserve 17 30 Other 372 436 Total $ 5,625 $ 4,847 |
Summary of Basic Warranty and Accruals for Campaign Programs | A summary of recorded activity for the three and nine months ended September 30, 2023 and 2022 for the basic warranty and accruals for campaign programs are as follows (in millions of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Balance beginning of period $ 588 $ 484 $ 544 $ 526 Current year additions 131 118 396 303 Claims paid (143) (110) (370) (320) Currency translation adjustment and other (10) (17) (4) (34) Balance end of period $ 566 $ 475 $ 566 $ 475 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 nine months ended September 30, 2023 and 2022 (in millions of dollars): Recognized in Net Income For the Three Months Ended September 30, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2023 Foreign exchange contracts $ (33) Net sales (3) Cost of goods sold 13 Other, net (15) Interest rate contracts (12) Interest expense 2 Total $ (45) $ (3) 2022 Foreign exchange contracts $ (87) Net sales — Cost of goods sold (77) Other, net 8 Interest rate contracts 1 Interest expense 8 Total $ (86) $ (61) Recognized in Net Income For the Nine Months Ended September 30, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2023 Foreign exchange contracts $ (44) Net sales (7) Cost of goods sold (19) Other, net 10 Interest rate contracts (46) Interest expense 10 Total $ (90) $ (6) 2022 Foreign exchange contracts $ (248) Net sales 2 Cost of goods sold (135) Other, net 4 Interest rate contracts 41 Interest expense 25 Total $ (207) $ (104) Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three and nine months ended September 30, 2023 and 2022 consisted of the following (in millions of dollars): Amounts Reclassified from Other Consolidated Statement Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cash flow hedges $ 3 $ — $ 7 $ (2) Net sales (13) 77 19 135 Cost of goods sold 15 (8) (10) (4) Other, net (2) (8) (10) (25) Interest expense — (5) (3) (13) Income taxes $ 3 $ 56 $ 3 $ 91 Change in retirement plans’ funded status: Amortization of actuarial losses $ 3 $ 5 $ 12 $ 16 * Amortization of prior service cost (9) (31) (27) (94) * 3 (8) 5 (22) Income taxes $ (3) $ (34) $ (10) $ (100) Total reclassifications, net of tax $ — $ 22 $ (7) $ (9) (*) 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 nine months ended September 30, 2023 and 2022 (in millions of dollars): Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net gain as of December 31, 2022 $ 71 $ (27) $ 44 Net changes in fair value of derivatives (90) 30 (60) Net losses reclassified from accumulated other comprehensive income into income 6 (3) 3 Accumulated derivative net losses as of September 30, 2023 $ (13) $ — $ (13) Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2021 $ (3) $ (14) $ (17) Impact of demerger 19 — 19 Net changes in fair value of derivatives (207) 27 (180) Net losses reclassified from accumulated other comprehensive income into income 104 (13) 91 Accumulated derivative net losses as of September 30, 2022 $ (87) $ — $ (87) The following tables summarize the earnings impact related to changes in the fair value of fair value hedges and derivatives not designated as hedges during the three and nine months ended September 30, 2023 and 2022 (in millions of dollars): For the Three Months Ended September 30, Classification of Gain (Loss) 2023 2022 Fair Value Hedges Interest rate derivatives Interest expense $ (3) $ (31) Not Designated as Hedges Foreign exchange contracts Other, Net $ (10) $ 21 For the Nine Months Ended September 30, Classification of Gain (Loss) 2023 2022 Fair Value Hedges Interest rate derivatives Interest expense $ (2) $ (106) Not Designated as Hedges Foreign exchange contracts Other, Net $ (44) $ (25) |
Summary of Fair Value of Derivatives | The fair values of CNH Industrial’s derivatives as of September 30, 2023 and December 31, 2022 in the consolidated balance sheets are recorded as follows (in millions of dollars): September 30, 2023 December 31, 2022 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate contracts Derivative assets $ 54 Derivative assets $ 77 Foreign currency contracts Derivative assets 38 Derivative assets 70 Total derivative assets $ 92 $ 147 Interest rate contracts Derivative liabilities $ 125 Derivative liabilities $ 106 Foreign currency contracts Derivative liabilities 67 Derivative liabilities 56 Total derivative liabilities $ 192 $ 162 Derivatives not designated as hedging instruments Interest rate contracts Derivative assets $ 44 Derivative assets $ 28 Foreign currency contracts Derivative assets 27 Derivative assets 14 Total derivative assets $ 71 $ 42 Interest rate contracts Derivative liabilities $ 44 Derivative liabilities $ 28 Foreign currency contracts Derivative liabilities 10 Derivative liabilities 14 Total derivative liabilities $ 54 $ 42 |
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 September 30, 2023 and December 31, 2022 (in millions of dollars): Level 1 Level 2 Total September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Assets Foreign exchange derivatives $ — $ — $ 65 $ 84 $ 65 $ 84 Interest rate derivatives — — 98 105 98 105 Total Assets $ — $ — $ 163 $ 189 $ 163 $ 189 Liabilities Foreign exchange derivatives $ — $ — $ 77 $ 70 $ 77 $ 70 Interest rate derivatives — — 169 134 169 134 Total Liabilities $ — $ — $ 246 $ 204 $ 246 $ 204 |
Summary of Investments Measured on Nonrecurring Basis | The following tables present the fair value for nonrecurring Level 3 measurements from impairments recorded in the nine months ended September 30, 2023 and 2022 (in millions of dollars): Fair Value Losses 2023 2022 2023 2022 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 consolidated balance sheets as of September 30, 2023 and December 31, 2022 were as follows (in millions of dollars): September 30, 2023 December 31, 2022 Carrying Fair Carrying Fair Financing receivables $ 22,240 $ 22,075 $ 19,260 $ 18,827 Debt $ 24,958 $ 24,884 $ 22,962 $ 22,651 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Summary of Tax Effects on Components of Other Comprehensive Income (Loss) | The tax effect for each component of other comprehensive income (loss) for the three and nine months ended September 30, 2023 and 2022 consisted of the following (in millions of dollars): Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Gross Income Net Gross Income Net Unrealized gain (loss) on cash flow hedges $ (42) $ 9 $ (33) $ (84) $ 25 $ (59) Changes in retirement plans’ funded status (5) 2 (3) (16) 5 (11) Foreign currency translation (14) — (14) 70 — 70 Share of other comprehensive income (loss) of entities using the equity method (8) — (8) (23) — (23) Other comprehensive income (loss) $ (69) $ 11 $ (58) $ (53) $ 30 $ (23) Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Gross Income Net Gross Income Net Unrealized gain (loss) on cash flow hedges $ (23) $ 13 $ (10) $ (103) $ 14 $ (89) Changes in retirement plans’ funded status (21) 7 (14) (89) 25 (64) Foreign currency translation 96 — 96 427 — 427 Share of other comprehensive income (loss) of entities using the equity method (13) — (13) (42) — (42) Other comprehensive income (loss) $ 39 $ 20 $ 59 $ 193 $ 39 $ 232 |
Summary of Changes in Other Comprehensive Income (Loss) | The changes, net of tax, in each component of accumulated other comprehensive income (loss) in the nine months ended September 30, 2023 and 2022 consisted of the following (in millions of dollars): Unrealized Change in Foreign Currency Share of Other Total Balance January 1, 2022 $ 2 $ (324) $ (1,951) $ (224) $ (2,497) Other comprehensive income (loss), before reclassifications (180) 36 428 (42) 242 Amounts reclassified from other comprehensive income 91 (100) — — (9) Other comprehensive income (loss)* (89) (64) 428 (42) 233 Balance September 30, 2022 $ (87) $ (388) $ (1,523) $ (266) $ (2,264) Balance January 1, 2023 $ 46 $ (285) $ (1,800) $ (239) $ (2,278) Other comprehensive income (loss), before reclassifications (62) (1) 71 (23) (15) Amounts reclassified from other comprehensive income 3 (10) — — (7) Other comprehensive income (loss)* (59) (11) 71 (23) (22) Balance September 30, 2023 $ (13) $ (296) $ (1,729) $ (262) $ (2,300) (*) Excluded from the table above is other comprehensive income (loss) allocated to non-controlling interests of $(1) million and $1 million for the nine months ended September 30, 2023 and 2022, 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 nine months ended September 30, 2023 and 2022 (in millions of dollars): Recognized in Net Income For the Three Months Ended September 30, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2023 Foreign exchange contracts $ (33) Net sales (3) Cost of goods sold 13 Other, net (15) Interest rate contracts (12) Interest expense 2 Total $ (45) $ (3) 2022 Foreign exchange contracts $ (87) Net sales — Cost of goods sold (77) Other, net 8 Interest rate contracts 1 Interest expense 8 Total $ (86) $ (61) Recognized in Net Income For the Nine Months Ended September 30, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2023 Foreign exchange contracts $ (44) Net sales (7) Cost of goods sold (19) Other, net 10 Interest rate contracts (46) Interest expense 10 Total $ (90) $ (6) 2022 Foreign exchange contracts $ (248) Net sales 2 Cost of goods sold (135) Other, net 4 Interest rate contracts 41 Interest expense 25 Total $ (207) $ (104) Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three and nine months ended September 30, 2023 and 2022 consisted of the following (in millions of dollars): Amounts Reclassified from Other Consolidated Statement Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cash flow hedges $ 3 $ — $ 7 $ (2) Net sales (13) 77 19 135 Cost of goods sold 15 (8) (10) (4) Other, net (2) (8) (10) (25) Interest expense — (5) (3) (13) Income taxes $ 3 $ 56 $ 3 $ 91 Change in retirement plans’ funded status: Amortization of actuarial losses $ 3 $ 5 $ 12 $ 16 * Amortization of prior service cost (9) (31) (27) (94) * 3 (8) 5 (22) Income taxes $ (3) $ (34) $ (10) $ (100) Total reclassifications, net of tax $ — $ 22 $ (7) $ (9) (*) 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) | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Transactions | These transactions with Stellantis are reflected in the Company’s consolidated financial statements as follows (in millions of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net sales $ — $ — $ — $ — Cost of goods sold 1 3 7 14 Selling, general and administrative expenses 7 11 29 36 September 30, 2023 December 31, 2022 Trade receivables $ — $ — Trade payables 12 14 The transactions with Iveco Group post-Demerger are reflected in the consolidated financial statements as follows (in millions of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net sales $ 68 $ 12 $ 125 $ 33 Cost of goods sold 274 218 808 721 September 30, 2023 December 31, 2022 Trade receivables $ 24 $ 21 Receivables from Iveco Group N.V. 229 298 Trade payables 206 184 Payables to Iveco Group N.V. 76 156 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net sales $ 137 $ 79 $ 430 $ 301 Cost of goods sold 171 138 497 382 September 30, 2023 December 31, 2022 Trade receivables $ 1 $ — Trade payables 91 100 |
BASIS OF PRESENTATION - Additio
BASIS OF PRESENTATION - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | ||||
Mar. 15, 2023 | Mar. 13, 2023 | Sep. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Business Combination Segment Allocation [Line Items] | |||||
Goodwill, net | $ 3,490 | $ 3,322 | |||
Augmenta | |||||
Business Combination Segment Allocation [Line Items] | |||||
Percentage of capital stock acquired | 89.50% | ||||
Consideration | $ 79 | ||||
Deferred payment | $ 10 | ||||
Goodwill, net | $ 76 | ||||
Intangible assets | 35 | ||||
Goodwill reduction | 14 | ||||
Bennamann | |||||
Business Combination Segment Allocation [Line Items] | |||||
Percentage of capital stock acquired | 34.40% | ||||
Consideration | $ 51 | ||||
Goodwill, net | 118 | ||||
Intangible assets | $ 46 | ||||
Goodwill reduction | $ 3 | ||||
Percentage of ownership interest | 50.0085% |
NEW ACCOUNTING PRONOUNCEMENTS_2
NEW ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Supply chain financing | $ 193 | $ 189 |
REVENUE - Summary of Net Revenu
REVENUE - Summary of Net Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | $ 5,332 | $ 5,396 | $ 16,062 | $ 15,189 |
Total Revenues | 5,986 | 5,881 | 17,895 | 16,608 |
Industrial Activities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 5,332 | 5,396 | 16,062 | 15,189 |
Industrial Activities | Operating segments | Agriculture | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 4,384 | 4,501 | 13,201 | 12,600 |
Industrial Activities | Operating segments | Construction | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 948 | 895 | 2,861 | 2,589 |
Financial Services | Operating segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 653 | 482 | 1,805 | 1,419 |
Financial Services | Eliminations and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ 1 | $ 3 | $ 28 | $ 0 |
REVENUE - Disaggregation of Net
REVENUE - Disaggregation of Net Revenues by Major Source (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | $ 5,332 | $ 5,396 | $ 16,062 | $ 15,189 |
Finance and interest income | 491 | 303 | 1,342 | 815 |
Rents and other income on operating lease | 163 | 182 | 491 | 604 |
Finance, interest and other income | 654 | 485 | 1,833 | 1,419 |
Total Revenues | 5,986 | 5,881 | 17,895 | 16,608 |
Sales of goods | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 5,322 | 5,388 | 16,031 | 15,166 |
Rendering of services and other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | $ 10 | $ 8 | $ 31 | $ 23 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Restricted cash | $ 706 | $ 753 |
Financing receivables | 22,240 | 19,260 |
Total Assets | 43,041 | 39,381 |
Debt | 24,958 | 22,962 |
Total Liabilities | 34,926 | 32,405 |
Unconsolidated Subsidiaries and Affiliates | ||
Variable Interest Entity [Line Items] | ||
Restricted cash | 556 | 595 |
Financing receivables | 9,344 | 8,808 |
Total Assets | 9,900 | 9,403 |
Debt | 8,930 | 8,485 |
Total Liabilities | $ 8,930 | $ 8,485 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Basic EPS attributable to common shareholders | ||||
Net income (loss) attributable to CNH Industrial N.V. | $ 567 | $ 556 | $ 1,755 | $ 1,437 |
Weighted average common shares outstanding—basic (in shares) | 1,332,000,000 | 1,350,000,000 | 1,337,000,000 | 1,354,000,000 |
Basic (in usd per share) | $ 0.43 | $ 0.41 | $ 1.31 | $ 1.06 |
Diluted EPS attributable to common shareholders | ||||
Stock compensation plans (in shares) | 19,000,000 | 5,000,000 | 18,000,000 | 5,000,000 |
Weighted average common shares outstanding—diluted (in shares) | 1,351,000,000 | 1,355,000,000 | 1,355,000,000 | 1,359,000,000 |
Diluted (in usd per share) | $ 0.42 | $ 0.41 | $ 1.30 | $ 1.06 |
Antidilutive securities excluded from EPS computation (in shares) | 0 | 4,700,000 | 0 | 2,000,000 |
EMPLOYEE BENEFIT PLANS AND PO_3
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pension | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 3 | $ 2 | $ 7 | $ 8 |
Interest cost | 14 | 6 | 41 | 20 |
Expected return on assets | (12) | (11) | (34) | (35) |
Amortization of: | ||||
Prior service credit | 0 | 0 | 0 | 0 |
Actuarial loss (gain) | 4 | 4 | 13 | 14 |
Net periodic benefit cost | 9 | 1 | 27 | 7 |
Healthcare | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 1 | 1 | 2 | 3 |
Interest cost | 3 | 2 | 7 | 5 |
Expected return on assets | (2) | (1) | (3) | (4) |
Amortization of: | ||||
Prior service credit | (9) | (31) | (27) | (94) |
Actuarial loss (gain) | 0 | 1 | 0 | 2 |
Net periodic benefit cost | (7) | (28) | (21) | (88) |
Other | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 2 | 1 | 4 | 4 |
Interest cost | 1 | 1 | 3 | 1 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of: | ||||
Prior service credit | 0 | 0 | 0 | 0 |
Actuarial loss (gain) | (1) | 0 | (1) | 0 |
Net periodic benefit cost | $ 2 | $ 2 | $ 6 | $ 5 |
EMPLOYEE BENEFIT PLANS AND PO_4
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Apr. 16, 2018 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Reduction of plan liability | $ 527 | $ 100 | ||||
Amortization period of retirement benefits payable | 4 years 6 months | 4 years | ||||
2018 Modification of Healthcare Plan | Operating segments | Industrial Activities | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Benefits modification amortization | $ 30 | $ 90 | ||||
2021 Modification of Healthcare Plan | Operating segments | Industrial Activities | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Reduction of plan liability | $ 101 | |||||
Amortization period of retirement benefits payable | 4 years | |||||
Benefits modification amortization | $ 6 | $ 6 | $ 18 | $ 18 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 25.80% | 26.30% | 25.20% | 29.60% |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Adjusted EBIT to Net Income for Industrial Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Apr. 16, 2018 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||||
Net income (loss) | $ 570 | $ 559 | $ 1,766 | $ 1,447 | ||
Income tax (expense) benefit | (171) | (192) | (536) | (579) | ||
Interest expense of Industrial Activities, net of interest income and eliminations | (10) | (27) | (36) | (97) | ||
Foreign exchange gains (losses), net of Industrial Activities | (21) | (14) | (27) | (14) | ||
Finance and non-service component of Pension and other post-employment benefit cost of Industrial Activities | 0 | 35 | 2 | 112 | ||
Restructuring expense of Industrial Activities | (5) | (11) | (8) | (19) | ||
Other discrete items | 0 | (20) | (10) | (78) | ||
Income (loss) before taxes | 741 | 751 | 2,302 | 2,026 | ||
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 | (75) | (20) | (205) | (92) | ||
Industrial Activities | Operating segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Adjusted EBIT of Industrial Activities | 657 | 670 | 2,034 | 1,753 | ||
Gain in relation to fair value measurement | 13 | |||||
Separation costs | 14 | 22 | ||||
Loss from sale of business, held for sale | 23 | |||||
Recorded charges | 43 | |||||
Spin Off Charges | 7 | 13 | ||||
Industrial Activities | Operating segments | 2021 Modification of Healthcare Plan | ||||||
Segment Reporting Information [Line Items] | ||||||
Pre-tax gain from amortization of benefits modification | 6 | 6 | $ 18 | 18 | ||
Amortization period of retirement benefits payable | 4 years | |||||
Reduction of plan liability | $ 101 | |||||
Industrial Activities | Operating segments | 2018 Modification of Healthcare Plan | ||||||
Segment Reporting Information [Line Items] | ||||||
Pre-tax gain from amortization of benefits modification | 30 | 90 | ||||
Agriculture | Operating segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Adjusted EBIT of Industrial Activities | 672 | 666 | 2,063 | 1,755 | ||
Construction | Operating segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Adjusted EBIT of Industrial Activities | 60 | 24 | 176 | 90 | ||
Financial Services | Operating segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Net income (loss) | 86 | 86 | 258 | 263 | ||
Income tax (expense) benefit | $ 34 | $ 32 | $ 89 | $ 106 |
RECEIVABLES - Summary of Financ
RECEIVABLES - Summary of Financing Receivables (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | $ 22,240 | $ 19,260 |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | 12,826 | 11,446 |
Wholesale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | 9,379 | 7,785 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | $ 35 | $ 29 |
RECEIVABLES - Additional Inform
RECEIVABLES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest free period for whole sale receivables | 12 months | ||
Stated original maturities for whole sale receivables | 24 months | ||
Gain (loss) on contract termination | $ 0 | $ 0 | |
Contractual payments period | 30 days | ||
Receivables delinquency period | 90 days | ||
Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, term | 2 years | ||
Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, term | 6 years | ||
Russia | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, allowance for credit loss, period increase (decrease) | $ (15) |
RECEIVABLES - Carrying Amount o
RECEIVABLES - Carrying Amount of Receivables (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total | $ 13,070 | $ 11,348 |
Retail note and finance lease receivables | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total | 7,117 | 6,766 |
Wholesale receivables | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total | $ 5,953 | $ 4,582 |
RECEIVABLES - Allowance for Cre
RECEIVABLES - Allowance for Credit Losses Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Retail | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Opening Balance | $ 280 | $ 270 | ||
Provision | 31 | $ 15 | 67 | $ 41 |
Charge-offs | (4) | (25) | ||
Recoveries | 0 | 1 | ||
Charge-offs, net of recoveries | (4) | (13) | ||
Foreign currency translation and other | (6) | (8) | (12) | 1 |
Ending Balance | 301 | 249 | 301 | 249 |
Wholesale | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Opening Balance | 60 | 64 | ||
Provision | (3) | (3) | (6) | 0 |
Charge-offs | (1) | (1) | ||
Recoveries | 0 | 0 | ||
Charge-offs, net of recoveries | (1) | (6) | ||
Foreign currency translation and other | 0 | (2) | (1) | (4) |
Ending Balance | $ 56 | 55 | $ 56 | 55 |
Adjusted Balance | Retail | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Opening Balance | 246 | 220 | ||
Adjusted Balance | Wholesale | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Opening Balance | $ 61 | $ 65 |
RECEIVABLES - Summary of Aging
RECEIVABLES - Summary of Aging of Receivables (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Retail | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | $ 12,826 | $ 11,446 |
Charge-offs | ||
Total | 25 | |
Retail | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 12,734 | 11,424 |
Retail | Non- Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 92 | 22 |
Retail | North America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Current fiscal year | 2,826 | 3,558 |
Fiscal year before current fiscal year | 2,446 | 2,036 |
Two years before current fiscal year | 1,518 | 994 |
Three years before current fiscal year | 673 | 472 |
Four years before current fiscal year | 276 | 225 |
Prior | 119 | 65 |
Total | 7,858 | 7,350 |
Charge-offs | ||
Current fiscal year | 0 | |
Fiscal year before current fiscal year | 8 | |
Two years before current fiscal year | 3 | |
Three years before current fiscal year | 3 | |
Four years before current fiscal year | 3 | |
Prior | 2 | |
Total | 19 | |
Retail | North America | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Current fiscal year | 2,824 | 3,558 |
Fiscal year before current fiscal year | 2,444 | 2,035 |
Two years before current fiscal year | 1,516 | 994 |
Three years before current fiscal year | 672 | 472 |
Four years before current fiscal year | 275 | 225 |
Prior | 118 | 65 |
Total | 7,849 | 7,349 |
Retail | North America | Non- Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Current fiscal year | 2 | 0 |
Fiscal year before current fiscal year | 2 | 1 |
Two years before current fiscal year | 2 | 0 |
Three years before current fiscal year | 1 | 0 |
Four years before current fiscal year | 1 | 0 |
Prior | 1 | 0 |
Total | 9 | 1 |
Retail | South America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Current fiscal year | 1,576 | 1,181 |
Fiscal year before current fiscal year | 968 | 728 |
Two years before current fiscal year | 593 | 410 |
Three years before current fiscal year | 310 | 208 |
Four years before current fiscal year | 129 | 116 |
Prior | 107 | 95 |
Total | 3,683 | 2,738 |
Charge-offs | ||
Current fiscal year | 0 | |
Fiscal year before current fiscal year | 0 | |
Two years before current fiscal year | 1 | |
Three years before current fiscal year | 4 | |
Four years before current fiscal year | 0 | |
Prior | 1 | |
Total | 6 | |
Retail | South America | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Current fiscal year | 1,572 | 1,179 |
Fiscal year before current fiscal year | 934 | 725 |
Two years before current fiscal year | 576 | 408 |
Three years before current fiscal year | 303 | 207 |
Four years before current fiscal year | 126 | 116 |
Prior | 105 | 95 |
Total | 3,616 | 2,730 |
Retail | South America | Non- Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Current fiscal year | 4 | 2 |
Fiscal year before current fiscal year | 34 | 3 |
Two years before current fiscal year | 17 | 2 |
Three years before current fiscal year | 7 | 1 |
Four years before current fiscal year | 3 | 0 |
Prior | 2 | 0 |
Total | 67 | 8 |
Retail | Asia Pacific | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Current fiscal year | 544 | 601 |
Fiscal year before current fiscal year | 382 | 401 |
Two years before current fiscal year | 218 | 221 |
Three years before current fiscal year | 95 | 84 |
Four years before current fiscal year | 27 | 35 |
Prior | 3 | 3 |
Total | 1,269 | 1,345 |
Charge-offs | ||
Current fiscal year | 0 | |
Fiscal year before current fiscal year | 0 | |
Two years before current fiscal year | 0 | |
Three years before current fiscal year | 0 | |
Four years before current fiscal year | 0 | |
Prior | 0 | |
Total | 0 | |
Retail | Asia Pacific | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Current fiscal year | 543 | 601 |
Fiscal year before current fiscal year | 381 | 400 |
Two years before current fiscal year | 216 | 220 |
Three years before current fiscal year | 94 | 84 |
Four years before current fiscal year | 26 | 35 |
Prior | 3 | 3 |
Total | 1,263 | 1,343 |
Retail | Asia Pacific | Non- Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Current fiscal year | 1 | 0 |
Fiscal year before current fiscal year | 1 | 1 |
Two years before current fiscal year | 2 | 1 |
Three years before current fiscal year | 1 | 0 |
Four years before current fiscal year | 1 | 0 |
Prior | 0 | 0 |
Total | 6 | 2 |
Retail | Europe, Middle East, Africa | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 16 | 13 |
Charge-offs | ||
Total | 0 | |
Retail | Europe, Middle East, Africa | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 6 | 2 |
Retail | Europe, Middle East, Africa | Non- Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 10 | 11 |
Retail | 31-60 Days Past Due | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 78 | 62 |
Retail | 31-60 Days Past Due | North America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 38 | 42 |
Retail | 31-60 Days Past Due | South America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 34 | 12 |
Retail | 31-60 Days Past Due | Asia Pacific | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 6 | 8 |
Retail | 31-60 Days Past Due | Europe, Middle East, Africa | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 0 | 0 |
Retail | 61-90 Days Past Due | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 18 | 24 |
Retail | 61-90 Days Past Due | North America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 9 | 16 |
Retail | 61-90 Days Past Due | South America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 2 | 0 |
Retail | 61-90 Days Past Due | Asia Pacific | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 7 | 8 |
Retail | 61-90 Days Past Due | Europe, Middle East, Africa | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 0 | 0 |
Retail | Total Past Due | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 96 | 86 |
Retail | Total Past Due | North America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 47 | 58 |
Retail | Total Past Due | South America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 36 | 12 |
Retail | Total Past Due | Asia Pacific | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 13 | 16 |
Retail | Total Past Due | Europe, Middle East, Africa | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 0 | 0 |
Retail | Current | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 12,638 | 11,338 |
Retail | Current | North America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 7,802 | 7,291 |
Retail | Current | South America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 3,580 | 2,718 |
Retail | Current | Asia Pacific | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 1,250 | 1,327 |
Retail | Current | Europe, Middle East, Africa | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 6 | 2 |
Wholesale | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 9,379 | 7,785 |
Charge-offs | ||
Total | 1 | |
Wholesale | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 9,379 | 7,785 |
Wholesale | Non- Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 0 | 0 |
Wholesale | North America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 4,825 | 3,378 |
Charge-offs | ||
Total | 0 | |
Wholesale | North America | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 4,825 | 3,378 |
Wholesale | North America | Non- Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 0 | 0 |
Wholesale | South America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 1,367 | 1,416 |
Charge-offs | ||
Total | 0 | |
Wholesale | South America | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 1,367 | 1,416 |
Wholesale | South America | Non- Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 0 | 0 |
Wholesale | Asia Pacific | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 784 | 494 |
Charge-offs | ||
Total | 1 | |
Wholesale | Asia Pacific | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 784 | 494 |
Wholesale | Asia Pacific | Non- Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 0 | 0 |
Wholesale | Europe, Middle East, Africa | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 2,403 | 2,497 |
Charge-offs | ||
Total | 0 | |
Wholesale | Europe, Middle East, Africa | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 2,403 | 2,497 |
Wholesale | Europe, Middle East, Africa | Non- Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 0 | 0 |
Wholesale | 31-60 Days Past Due | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 10 | 7 |
Wholesale | 31-60 Days Past Due | North America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 0 | 0 |
Wholesale | 31-60 Days Past Due | South America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 1 | 0 |
Wholesale | 31-60 Days Past Due | Asia Pacific | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 4 | 0 |
Wholesale | 31-60 Days Past Due | Europe, Middle East, Africa | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 5 | 7 |
Wholesale | 61-90 Days Past Due | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 1 | 2 |
Wholesale | 61-90 Days Past Due | North America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 0 | 0 |
Wholesale | 61-90 Days Past Due | South America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 0 | 0 |
Wholesale | 61-90 Days Past Due | Asia Pacific | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 1 | 0 |
Wholesale | 61-90 Days Past Due | Europe, Middle East, Africa | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 0 | 2 |
Wholesale | Total Past Due | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 11 | 9 |
Wholesale | Total Past Due | North America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 0 | 0 |
Wholesale | Total Past Due | South America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 1 | 0 |
Wholesale | Total Past Due | Asia Pacific | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 5 | 0 |
Wholesale | Total Past Due | Europe, Middle East, Africa | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 5 | 9 |
Wholesale | Current | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 9,368 | 7,776 |
Wholesale | Current | North America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 4,825 | 3,378 |
Wholesale | Current | South America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 1,366 | 1,416 |
Wholesale | Current | Asia Pacific | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 779 | 494 |
Wholesale | Current | Europe, Middle East, Africa | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | $ 2,398 | $ 2,488 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,111 | $ 1,955 |
Work-in-process | 637 | 471 |
Finished goods | 3,699 | 2,385 |
Total inventories | $ 6,447 | $ 4,811 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | |||||
Short-term lease expenses | $ 1 | $ 4 | $ 4 | $ 7 | |
Operating lease expenses | 25 | $ 18 | 64 | 53 | |
Operating lease right-of-use assets | 237 | 237 | |||
Operating lease liabilities | $ 241 | $ 241 | $ 228 | ||
Weighted average remaining lease term | 5 years 3 months 18 days | 5 years 3 months 18 days | |||
Weighted average discount rate | 4.30% | 4.30% | |||
Leased assets obtained in exchange for operating lease obligations | $ 77 | 82 | |||
Operating cash outflow for amounts included in the measurement of operating lease obligations | $ 61 | $ 52 | |||
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 | Sep. 30, 2023 | Dec. 31, 2022 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Equity method | $ 423 | $ 331 |
Cost method | 54 | 54 |
Total | $ 477 | $ 385 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES - Changes in the Carrying Amount of Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning | $ 3,322 |
Acquisition | 177 |
Foreign currency translation and other | (9) |
Balance at ending | 3,490 |
Agriculture | |
Goodwill [Roll Forward] | |
Balance at beginning | 3,136 |
Acquisition | 177 |
Foreign currency translation and other | (9) |
Balance at ending | 3,304 |
Construction | |
Goodwill [Roll Forward] | |
Balance at beginning | 46 |
Acquisition | 0 |
Foreign currency translation and other | 0 |
Balance at ending | 46 |
Financial Services | |
Goodwill [Roll Forward] | |
Balance at beginning | 140 |
Acquisition | 0 |
Foreign currency translation and other | 0 |
Balance at ending | $ 140 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES - Other Intangible Assets and Related Accumulated Amortization (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, gross | $ 2,243 | $ 2,087 |
Other intangible assets subject to amortization, accumulated amortization | 1,489 | 1,395 |
Other intangible assets subject to amortization, net | 754 | 692 |
Total other intangible assets, gross | 2,726 | 2,524 |
Total other intangible assets, net | 1,237 | 1,129 |
In-process research and development | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets not subject to amortization | 211 | 165 |
Trademarks | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets not subject to amortization | $ 272 | 272 |
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 | $ 252 | 291 |
Other intangible assets subject to amortization, accumulated amortization | 227 | 242 |
Other intangible assets subject to amortization, net | 25 | 49 |
Patents, concessions, licenses and other | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, gross | 1,991 | 1,796 |
Other intangible assets subject to amortization, accumulated amortization | 1,262 | 1,153 |
Other intangible assets subject to amortization, net | $ 729 | $ 643 |
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 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill [Line Items] | |||||
Goodwill, acquired | $ 177 | ||||
Amortization expense | $ 43 | $ 35 | 119 | $ 101 | |
Agriculture | |||||
Goodwill [Line Items] | |||||
Goodwill, acquired | 177 | ||||
Augmenta | |||||
Goodwill [Line Items] | |||||
Goodwill reduction | 14 | ||||
Intangible assets | $ 35 | ||||
Intangible assets increase | 12 | ||||
Augmenta | Agriculture | |||||
Goodwill [Line Items] | |||||
Goodwill, acquired | 76 | ||||
Goodwill reduction | 14 | ||||
Bennamann | |||||
Goodwill [Line Items] | |||||
Goodwill reduction | 3 | ||||
Intangible assets | 46 | ||||
Intangible assets increase | 5 | ||||
Bennamann | Agriculture | |||||
Goodwill [Line Items] | |||||
Goodwill, acquired | 118 | ||||
Goodwill reduction | $ 3 | ||||
Augment and Bennamann | |||||
Goodwill [Line Items] | |||||
Intangible assets | $ 81 |
OTHER LIABILITIES - Summary of
OTHER LIABILITIES - Summary of Other Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||||||
Warranty and campaign programs | $ 566 | $ 588 | $ 544 | $ 475 | $ 484 | $ 526 |
Marketing and sales incentive programs | 2,159 | 1,556 | ||||
Tax payables | 507 | 506 | ||||
Accrued expenses and deferred income | 886 | 700 | ||||
Accrued employee benefits | 511 | 535 | ||||
Lease liabilities | 241 | 228 | ||||
Legal reserves and other provisions | 304 | 263 | ||||
Contract reserve | 19 | 16 | ||||
Contract liabilities | 43 | 33 | ||||
Restructuring reserve | 17 | 30 | ||||
Other | 372 | 436 | ||||
Total | $ 5,625 | $ 4,847 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||||
Balance beginning of period | $ 588 | $ 484 | $ 544 | $ 526 |
Current year additions | 131 | 118 | 396 | 303 |
Claims paid | (143) | (110) | (370) | (320) |
Currency translation adjustment and other | (10) | (17) | (4) | (34) |
Balance end of period | $ 566 | $ 475 | $ 566 | $ 475 |
OTHER LIABILITIES - Additional
OTHER LIABILITIES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Liabilities [Abstract] | ||||
Restructuring expenses | $ 5 | $ 11 | $ 8 | $ 19 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 USD ($) site | Dec. 31, 2022 USD ($) | |
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 | $ | $ 24 | $ 25 |
Guarantees at carrying value | $ | $ 31 | $ 19 |
FINANCIAL INSTRUMENTS - Additio
FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | |
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 | $ 6,900 | $ 5,900 | |
Interest rate derivatives | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Notional amount of foreign exchange derivatives | $ 8,100 | $ 6,400 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in Accumulated Other Comprehensive Income | $ (45) | $ (86) | $ (90) | $ (207) |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (3) | (61) | (6) | (104) |
Foreign exchange contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in Accumulated Other Comprehensive Income | (33) | (87) | (44) | (248) |
Net sales | Foreign exchange contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (3) | 0 | (7) | 2 |
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 | 13 | (77) | (19) | (135) |
Other, Net | Foreign exchange contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (15) | 8 | 10 | 4 |
Interest expense | Interest rate contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in Accumulated Other Comprehensive Income | (12) | 1 | (46) | 41 |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | $ 2 | $ 8 | $ 10 | $ 25 |
FINANCIAL INSTRUMENTS - Summary
FINANCIAL INSTRUMENTS - Summary of Activity in Accumulated Other Comprehensive Income Related to Derivatives (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Before-Tax Amount | ||
Impact of demerger | $ 19 | |
Income Tax | ||
Impact of demerger | 0 | |
After-Tax Amount | ||
Impact of demerger | 19 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||
Before-Tax Amount | ||
Accumulated derivative net gain(loss), beginning balance | $ 71 | (3) |
Net changes in fair value of derivatives | (90) | (207) |
Net losses reclassified from accumulated other comprehensive income into income | 6 | 104 |
Accumulated derivative net gain(loss), ending balance | (13) | (87) |
Income Tax | ||
Accumulated derivative net gain(loss), beginning balance | (27) | (14) |
Net changes in fair value of derivatives | 30 | 27 |
Net losses reclassified from accumulated other comprehensive income into income | (3) | (13) |
Accumulated derivative net gain(loss), ending balance | 0 | 0 |
After-Tax Amount | ||
Accumulated derivative net gain(loss), beginning balance | 44 | (17) |
Net changes in fair value of derivatives | (60) | (180) |
Net losses reclassified from accumulated other comprehensive income into income | 3 | 91 |
Accumulated derivative net gain(loss), ending balance | $ (13) | $ (87) |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest expense | Fair Value Hedges | Interest rate derivatives | ||||
Fair Value Hedges | ||||
Interest rate derivatives, fair value hedges | $ (3) | $ (31) | $ (2) | $ (106) |
Other, Net | Foreign exchange contracts | Derivatives not designated as hedging instruments | ||||
Not Designated as Hedges | ||||
Foreign exchange contracts, not designated as hedges | $ (10) | $ 21 | $ (44) | $ (25) |
FINANCIAL INSTRUMENTS - Fair Va
FINANCIAL INSTRUMENTS - Fair Values of Derivatives (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 163 | $ 189 |
Derivative liabilities | 246 | 204 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 92 | 147 |
Derivative liabilities | 192 | 162 |
Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 54 | 77 |
Derivative liabilities | 125 | 106 |
Derivatives designated as hedging instruments | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 38 | 70 |
Derivative liabilities | 67 | 56 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 71 | 42 |
Derivative liabilities | 54 | 42 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 44 | 28 |
Derivative liabilities | 44 | 28 |
Derivatives not designated as hedging instruments | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 27 | 14 |
Derivative liabilities | $ 10 | $ 14 |
FINANCIAL INSTRUMENTS - Fair _2
FINANCIAL INSTRUMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Value on Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 163 | $ 189 |
Derivative liabilities | 246 | 204 |
Fair Value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 163 | 189 |
Total Liabilities | 246 | 204 |
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 | 163 | 189 |
Total Liabilities | 246 | 204 |
Fair Value, measurements, recurring | Foreign exchange derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 65 | 84 |
Derivative liabilities | 77 | 70 |
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 | 65 | 84 |
Derivative liabilities | 77 | 70 |
Fair Value, measurements, recurring | Interest rate derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 98 | 105 |
Derivative liabilities | 169 | 134 |
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 | 98 | 105 |
Derivative liabilities | $ 169 | $ 134 |
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 | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property, plant and equipment, fair value | $ 0 | $ 7 |
Property, plant and equipment, losses | $ 0 | $ 17 |
FINANCIAL INSTRUMENTS - Estimat
FINANCIAL INSTRUMENTS - Estimated Fair Values of Instruments Not Carried at Fair Value in Balance Sheets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivables | $ 22,240 | $ 19,260 |
Debt | 24,958 | 22,962 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivables | 22,075 | 18,827 |
Debt | $ 24,884 | $ 22,651 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Gross Amount | $ (69) | $ 39 | $ (53) | $ 193 | ||||
Income Taxes | (11) | (20) | (30) | (39) | ||||
Other comprehensive income (loss), net of tax | (58) | $ 72 | $ (37) | 59 | $ 43 | $ 130 | (23) | 232 |
Cash flow hedges | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Gross Amount | (42) | (23) | (84) | (103) | ||||
Income Taxes | (9) | (13) | (25) | (14) | ||||
Other comprehensive income (loss), net of tax | (33) | (10) | (59) | (89) | ||||
Foreign currency translation | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Gross Amount | (14) | 96 | 70 | 427 | ||||
Income Taxes | 0 | 0 | 0 | 0 | ||||
Other comprehensive income (loss), net of tax | (14) | 96 | 70 | 427 | ||||
Changes in retirement plans’ funded status | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Gross Amount | 5 | 21 | 16 | 89 | ||||
Income Taxes | 2 | 7 | 5 | 25 | ||||
Other comprehensive income (loss), net of tax | 3 | 14 | 11 | 64 | ||||
Share of other comprehensive income (loss) of entities using the equity method | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Gross Amount | (8) | (13) | (23) | (42) | ||||
Income Taxes | 0 | 0 | 0 | 0 | ||||
Other comprehensive income (loss), net of tax | $ (8) | $ (13) | $ (23) | $ (42) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||||||||
Beginning balance | $ 7,575 | $ 7,399 | $ 6,927 | $ 5,794 | $ 5,609 | $ 6,927 | ||
Other comprehensive income (loss), net of tax | (58) | 72 | (37) | 59 | 43 | $ 130 | (23) | $ 232 |
Ending balance | 8,057 | 7,575 | 7,399 | 6,357 | 5,794 | 5,609 | 8,057 | 6,357 |
Non-controlling interest | (1) | 1 | ||||||
Total | ||||||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||||||
Beginning balance | (2,246) | (2,316) | (2,278) | (2,323) | (2,367) | (2,497) | (2,278) | (2,497) |
Other comprehensive income (loss), before reclassifications | (15) | 242 | ||||||
Amounts reclassified from other comprehensive income | (7) | (9) | ||||||
Other comprehensive income (loss), net of tax | (54) | 70 | (38) | 59 | 44 | 130 | (22) | 233 |
Ending balance | (2,300) | $ (2,246) | (2,316) | (2,264) | $ (2,323) | (2,367) | (2,300) | (2,264) |
Unrealized Gain (Loss) on Cash Flow Hedges | ||||||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||||||
Beginning balance | 46 | 2 | 46 | 2 | ||||
Other comprehensive income (loss), before reclassifications | (62) | (180) | ||||||
Amounts reclassified from other comprehensive income | 3 | 91 | ||||||
Other comprehensive income (loss), net of tax | (59) | (89) | ||||||
Ending balance | (13) | (87) | (13) | (87) | ||||
Change in Retirement Plans’ Funded Status | ||||||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||||||
Beginning balance | (285) | (324) | (285) | (324) | ||||
Other comprehensive income (loss), before reclassifications | (1) | 36 | ||||||
Amounts reclassified from other comprehensive income | (10) | (100) | ||||||
Other comprehensive income (loss), net of tax | (11) | (64) | ||||||
Ending balance | (296) | (388) | (296) | (388) | ||||
Foreign Currency Translation | ||||||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||||||
Beginning balance | (1,800) | (1,951) | (1,800) | (1,951) | ||||
Other comprehensive income (loss), before reclassifications | 71 | 428 | ||||||
Amounts reclassified from other comprehensive income | 0 | 0 | ||||||
Other comprehensive income (loss), net of tax | 71 | 428 | ||||||
Ending balance | (1,729) | (1,523) | (1,729) | (1,523) | ||||
Share of Other Comprehensive Income (Loss) of Entities Using the Equity Method | ||||||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||||||
Beginning balance | $ (239) | $ (224) | (239) | (224) | ||||
Other comprehensive income (loss), before reclassifications | (23) | (42) | ||||||
Amounts reclassified from other comprehensive income | 0 | 0 | ||||||
Other comprehensive income (loss), net of tax | (23) | (42) | ||||||
Ending balance | $ (262) | $ (266) | $ (262) | $ (266) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | $ 5,986 | $ 5,881 | $ 17,895 | $ 16,608 |
Cost of goods sold | (4,059) | (4,156) | (12,133) | (11,819) |
Other, net | (186) | (159) | (536) | (490) |
Interest expense | (346) | (190) | (941) | (490) |
Income taxes | (171) | (192) | (536) | (579) |
Net Income (loss) | 570 | 559 | 1,766 | 1,447 |
Reclassification out of accumulated other comprehensive income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net Income (loss) | 0 | 22 | (7) | (9) |
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 | 3 | 0 | 7 | (2) |
Cost of goods sold | (13) | 77 | 19 | 135 |
Other, net | 15 | (8) | (10) | (4) |
Interest expense | (2) | (8) | (10) | (25) |
Income taxes | 0 | (5) | (3) | (13) |
Net Income (loss) | 3 | 56 | 3 | 91 |
Reclassification out of accumulated other comprehensive income | Change in Retirement Plans’ Funded Status | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income taxes | 3 | (8) | 5 | (22) |
Net Income (loss) | (3) | (34) | (10) | (100) |
Reclassification out of accumulated other comprehensive income | Amortization of actuarial losses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of actuarial losses | 3 | 5 | 12 | 16 |
Reclassification out of accumulated other comprehensive income | Amortization of prior service cost | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of prior service cost | $ (9) | $ (31) | $ (27) | $ (94) |
RELATED PARTY INFORMATION - Add
RELATED PARTY INFORMATION - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Master Services Agreement | ||
Related Party Transaction [Line Items] | ||
Related party, agreement term | 2 years | |
Engine Supply Agreement | ||
Related Party Transaction [Line Items] | ||
Related party, agreement term | 10 years | |
Financial Service Agreement | ||
Related Party Transaction [Line Items] | ||
Related party, agreement term | 3 years | |
EXOR N.V. | ||
Related Party Transaction [Line Items] | ||
Percentage of common shares outstanding held by related parties | 41.70% | |
CNH Industrial Capital Europe S.A.S. | ||
Related Party Transaction [Line Items] | ||
Pledged guarantees on commitments | $ 31 | $ 19 |
RELATED PARTY INFORMATION - Sch
RELATED PARTY INFORMATION - Schedule of Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Net sales | $ 5,332 | $ 5,396 | $ 16,062 | $ 15,189 | |
Cost of goods sold | 4,059 | 4,156 | 12,133 | 11,819 | |
Selling, general and administrative expenses | 462 | 422 | 1,385 | 1,224 | |
Trade receivables, net | 199 | 199 | $ 172 | ||
Receivables from Iveco Group N.V. | 229 | 229 | 298 | ||
Trade payables | 3,574 | 3,574 | 3,702 | ||
Payables to Iveco Group N.V. | 76 | 76 | 156 | ||
Stellantis | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Cost of goods sold | 1 | 3 | 7 | 14 | |
Selling, general and administrative expenses | 7 | 11 | 29 | 36 | |
Trade receivables, net | 0 | 0 | 0 | ||
Trade payables | 12 | 12 | 14 | ||
Iveco Group post-Demerger | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Net sales | 68 | 12 | 125 | 33 | |
Cost of goods sold | 274 | 218 | 808 | 721 | |
Trade receivables, net | 24 | 24 | 21 | ||
Receivables from Iveco Group N.V. | 229 | 229 | 298 | ||
Trade payables | 206 | 206 | 184 | ||
Payables to Iveco Group N.V. | 76 | 76 | 156 | ||
Unconsolidated subsidiaries and affiliates | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Net sales | 137 | 79 | 430 | 301 | |
Cost of goods sold | 171 | $ 138 | 497 | $ 382 | |
Trade receivables, net | 1 | 1 | 0 | ||
Trade payables | $ 91 | $ 91 | $ 100 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||||
Nov. 07, 2023 | Nov. 06, 2023 | Oct. 12, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Subsequent Event [Line Items] | |||||||||||
Acquisition of treasury stock | $ 55 | $ 98 | $ 71 | $ 76 | $ 19 | $ 21 | |||||
Restructuring expenses | $ 5 | $ 11 | $ 8 | $ 19 | |||||||
Subsequent Event | Forecast | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Restructuring expenses | $ 200 | ||||||||||
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent | 5% | ||||||||||
Subsequent Event | Buyback Program 1 | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Authorized amount of share repurchases | $ 300 | ||||||||||
Acquisition of treasury stock | $ 26 | ||||||||||
Subsequent Event | Buyback Program 2 | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Authorized amount of share repurchases | $ 1,000 | ||||||||||
Subsequent Event | Hemisphere | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Consideration | $ 175 |