Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2024 shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2024 |
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 | 1,257,481,824 |
Entity Central Index Key | 0001567094 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q1 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and cash equivalents | $ 3,236 | $ 4,322 |
Restricted cash | 723 | 723 |
Trade receivables, net | 155 | 133 |
Financing receivables, net | 24,120 | 24,249 |
Financial receivables from Iveco Group N.V. | 230 | 380 |
Inventories, net | 6,189 | 5,545 |
Property, plant and equipment, net | 1,903 | 1,913 |
Investments in unconsolidated subsidiaries and affiliates | 559 | 563 |
Equipment under operating leases | 1,374 | 1,417 |
Goodwill | 3,603 | 3,614 |
Other intangible assets, net | 1,265 | 1,292 |
Deferred tax assets | 977 | 979 |
Derivative assets | 103 | 136 |
Other assets | 1,289 | 1,085 |
Total Assets | 45,726 | 46,351 |
Liabilities and Equity | ||
Debt | 27,780 | 27,326 |
Financial payables to Iveco Group N.V. | 70 | 146 |
Trade payables | 3,225 | 3,611 |
Deferred tax liabilities | 39 | 35 |
Pension, postretirement and other postemployment benefits | 458 | 476 |
Derivative liabilities | 175 | 216 |
Other liabilities | 5,967 | 6,307 |
Total Liabilities | 37,714 | 38,117 |
Redeemable noncontrolling interest | 57 | 54 |
Common shares, €0.01, par value; outstanding 1,257,481,824 common shares and 370,997,621 loyalty program special voting shares at 3/31/2024; and outstanding 1,290,937,585 common shares and 371,000,610 loyalty program special voting shares at 12/31/2023 | 25 | 25 |
Treasury stock, at cost; 106,918,372 shares at 3/31/2024 and 73,462,611 at 12/31/2023 | (1,276) | (865) |
Additional paid in capital | 1,415 | 1,578 |
Retained earnings | 10,151 | 9,750 |
Accumulated other comprehensive income (loss) | (2,423) | (2,374) |
Noncontrolling interests | 63 | 66 |
Total Equity | 7,955 | 8,180 |
Total Liabilities and Equity | $ 45,726 | $ 46,351 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - € / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common shares, par value (in eur per share) | € 0.01 | € 0.01 |
Common shares, shares outstanding (in shares) | 1,257,481,824 | 1,290,937,585 |
Special voting shares, shares outstanding (in shares) | 370,997,621 | 371,000,610 |
Treasury stock, shares (in shares) | 106,918,372 | 73,462,611 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues | ||
Net sales | $ 4,131 | $ 4,776 |
Finance, interest and other income | 687 | 566 |
Total Revenues | 4,818 | 5,342 |
Costs and Expenses | ||
Cost of goods sold | 3,195 | 3,611 |
Selling, general and administrative expenses | 411 | 438 |
Research and development expenses | 228 | 231 |
Restructuring expenses | 31 | 1 |
Interest expense | 394 | 272 |
Other, net | 157 | 163 |
Total Costs and Expenses | 4,416 | 4,716 |
Income (loss) of Consolidated Group before Income Taxes | 402 | 626 |
Income tax expense | (77) | (173) |
Equity in income of unconsolidated subsidiaries and affiliates | 77 | 33 |
Net income (loss) | 402 | 486 |
Net income (loss) attributable to noncontrolling interests | 1 | 4 |
Net income (loss) attributable to CNH Industrial N.V. | $ 401 | $ 482 |
Earnings per share attributable to common shareholders | ||
Basic earnings (loss per share (in usd per share) | $ 0.32 | $ 0.36 |
Diluted earnings (loss) per share (in usd per share) | $ 0.31 | $ 0.35 |
Weighted average shares outstanding | ||
Weighted average common shares outstanding—basic (in shares) | 1,260 | 1,342 |
Weighted average common shares outstanding—diluted (in shares) | 1,274 | 1,359 |
Cash dividends declared per common share (in usd per share) | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 402 | $ 486 |
Other comprehensive income (loss), net of tax | ||
Unrealized gain (loss) on cash flow hedges | 7 | 10 |
Changes in retirement plans’ funded status | 0 | (5) |
Foreign currency translation | (50) | (33) |
Share of other comprehensive income (loss) of entities using the equity method | (6) | (9) |
Other comprehensive income (loss), net of tax | (49) | (37) |
Comprehensive income (loss) | 353 | 449 |
Less: Comprehensive income attributable to noncontrolling interests | 1 | 5 |
Comprehensive income (loss) attributable to CNH Industrial N.V. | $ 352 | $ 444 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Flows from Operating Activities | ||
Net Income (loss) | $ 402 | $ 486 |
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 | 103 | 86 |
Depreciation and amortization expense of assets under operating leases | 45 | 46 |
(Gain) loss on disposal of assets, net | 0 | 6 |
Undistributed income of unconsolidated subsidiaries | (77) | 9 |
Other non-cash items, net | 57 | 32 |
Changes in operating assets and liabilities: | ||
Provisions | (39) | 113 |
Deferred income taxes | (18) | (52) |
Trade and financing receivables related to sales, net | (22) | (355) |
Inventories, net | (681) | (1,057) |
Trade payables | (332) | 172 |
Other assets and liabilities | (332) | (187) |
Net cash provided (used) by operating activities | (894) | (701) |
Cash Flows from Investing Activities | ||
Additions to retail receivables | (1,769) | (1,601) |
Collections of retail receivables | 1,476 | 1,376 |
Expenditures for property, plant and equipment and intangible assets, excluding assets under operating leases | (96) | (90) |
Expenditures for assets under operating leases | (106) | (107) |
Other, net | 76 | (327) |
Net cash provided (used) by investing activities | (419) | (749) |
Cash Flows from Financing Activities | ||
Proceeds from long-term debt | 4,584 | 995 |
Payments of long-term debt | (3,357) | (1,040) |
Net increase in other financial liabilities | (326) | 420 |
Dividends paid | (1) | (1) |
Purchase of treasury stock and other | (581) | (71) |
Net cash provided (used) by financing activities | 319 | 303 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (92) | 23 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (1,086) | (1,124) |
Cash, cash equivalents and restricted cash, beginning of year | 5,045 | 5,129 |
Cash, cash equivalents and restricted cash, end of period | 3,959 | 4,005 |
Components of cash, cash equivalents and restricted cash | ||
Cash and cash equivalents | 3,236 | 3,213 |
Restricted cash | 723 | 792 |
Total cash, cash equivalents and restricted cash | $ 3,959 | $ 4,005 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common Shares | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Redeemable Noncontrolling Interest |
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 | |||||||
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 | 0 | 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, 2023 | 8,180 | 25 | (865) | 1,578 | 9,750 | (2,374) | 66 | |
Beginning balance, redeemable noncontrolling interests at Dec. 31, 2023 | 54 | 54 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 398 | 401 | (3) | |||||
Net income, redeemable non controlling interests | 4 | |||||||
Other comprehensive income (loss), net of tax | (49) | (49) | 0 | |||||
Dividends paid | (1) | |||||||
Acquisition of treasury stock | (581) | (581) | ||||||
Common shares issued from treasury stock and capital increase for share based compensation | 173 | (173) | ||||||
Share-based compensation expense | 10 | 10 | ||||||
Other changes | (3) | (3) | 0 | |||||
Ending balance at Mar. 31, 2024 | 7,955 | $ 25 | $ (1,276) | $ 1,415 | $ 10,151 | $ (2,423) | $ 63 | |
Ending balance, redeemable noncontrolling interests at Mar. 31, 2024 | $ 57 | $ 57 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION CNH Industrial N.V. (“CNH” or the “Company”) is incorporated in, and under the laws of, the Netherlands. CNH is a leading company in the capital goods sector that designs, produces and sells agricultural equipment and construction equipment. In addition, CNH’s Financial Services segment offers an array of financial products and services, including retail financing for the purchase or lease of new and used CNH and other manufacturers’ products and other retail financing programs and wholesale financing to dealers. 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, 2023. 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 Effective October 12, 2023, CNH closed on its purchase of Hemisphere, a global satellite navigation technology leader, for a total consideration of $181 million. The acquisition of Hemisphere consolidates our guidance and connectivity capabilities to advance CNH's in-house precision, automation and autonomy technology for the agriculture and construction industries. At December 31, 2023, CNH recorded preliminary estimates for the fair value of assets acquired and liabilities assumed as of the acquisition date, including $111 million and $51 million in preliminary goodwill and intangible assets, respectively. The valuation of assets acquired and liabilities assumed has not been finalized as of March 31, 2024. Thus, goodwill associated with the acquisition is subject to adjustment during the measurement period. Measurement period adjustments were recorded in the first quarter of 2024 which decreased goodwill by $2 million and increased other intangible assets by $6 million, offset by an increase in deferred tax liabilities and a decrease in other assets. Pro forma results of operations have not been presented because the effects of the Hemisphere acquisition were not material to the Company’s consolidated results of operations for the quarter ended December 31, 2023. Additionally, Hemisphere's post-acquisition results were not material. On March 15, 2023, CNH 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 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. There were no measurement period adjustments recorded in the current quarter. Measurement period adjustments were made in the second and third quarters of 2023 reducing goodwill by $3 million, primarily offset by increases in intangible assets as a result of updates of certain of the valuations. The valuation of assets acquired and liabilities assumed was finalized as of March 31, 2024. Pro forma results of operations have not been presented because the effects of the Bennamann acquisition were not material to the Company’s consolidated results of operations for the quarter ended March 31, 2023. Additionally, Bennamann's post-acquisition results were not material. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS Adopted in 2024 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 . T he adoption did not have a material impact on our consolidated financial statements. Not Yet Adopted Improvements to income tax disclosures In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures , to enhance the transparency and decision usefulness of income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments in this update are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have to our income tax disclosures. Improvements to reportable segment disclosures In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures , to improve the disclosures about a public entity’s reportable segments and address requests from investors for additional, more detailed information about a reportable segment’s expenses. The amendments in this update are effective date for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of adoption to our reportable segment disclosures. 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 material effect on its financial statements and related disclosures. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The following table summarizes revenues for the three months ended March 31, 2024 and 2023 (in millions of dollars): Three Months Ended March 31, 2024 2023 Agriculture $ 3,373 $ 3,927 Construction 758 849 Total Industrial Activities 4,131 4,776 Financial Services 685 549 Eliminations and other 2 17 Total Revenues $ 4,818 $ 5,342 The following table disaggregates revenues by major source for the three months ended March 31, 2024 and 2023 (in millions of dollars): Three Months Ended March 31, 2024 2023 Revenues from: Sales of goods $ 4,120 $ 4,767 Rendering of services and other revenues 11 9 Revenues from sales of goods and services 4,131 4,776 Finance and interest income 536 402 Rents and other income on operating lease 151 164 Finance, interest and other income 687 566 Total Revenues $ 4,818 $ 5,342 Contract liabilities recorded in Other liabilities were $55 million and $50 million at March 31, 2024 and December 31, 2023, respectively. Contract liabilities primarily relate to extended warranties. During the three months ended March 31, 2024 and 2023, revenues included $5 million and $3 million, respectively, relating to contract liabilities outstanding at the beginning of each period. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2024 | |
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 those assets that can only 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). March 31, 2024 December 31, 2023 Restricted cash $ 629 $ 626 Financing receivables 10,369 10,365 Total Assets $ 10,998 $ 10,991 Debt $ 10,072 $ 10,033 Total Liabilities $ 10,072 $ 10,033 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Basic EPS attributable to common shareholders Net income (loss) attributable to CNH Industrial N.V $ 401 $ 482 Weighted average common shares outstanding—basic 1,260 1,342 Basic earnings (loss) per share $ 0.32 $ 0.36 Diluted EPS attributable to common shareholders Weighted average common shares outstanding—basic 1,260 1,342 Dilutive effect of stock compensation plans (1) 14 17 Weighted average common shares outstanding—diluted 1,274 1,359 Diluted earnings (loss) per share $ 0.31 $ 0.35 (1) For the three months ended March 31, 2024, 301,000 shares were excluded from the computation of diluted earnings per share due to an anti-dilutive impact. For the three months ended March 31, 2023, no shares were excluded from the computation of diluted earnings per share due to an anti-dilutive impact. |
EMPLOYEE BENEFIT PLANS AND POST
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS | 3 Months Ended |
Mar. 31, 2024 | |
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’s defined benefit pension plans and postretirement health and life insurance plans for the three months ended March 31, 2024 and 2023 (in millions of dollars): Pension Healthcare Other Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2024 2023 2024 2023 2024 2023 Service cost $ 2 $ 2 $ 1 $ 1 $ 1 $ 1 Interest cost 13 14 2 2 1 1 Expected return on assets (13) (11) (1) (1) — — Amortization of: Prior service credit — — (6) (9) — — Actuarial loss (gain) 5 4 — — — — Net periodic benefit cost $ 7 $ 9 $ (4) $ (7) $ 2 $ 2 . In 2021, CNH 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 other comprehensive income to the income statement over approximately 4 years, which represents the average service period to attain eligibility conditions for active participants. For the three months ended March 31, 2024 and 2023, $6 million and $6 million of amortization was recorded as a pre-tax gain in Other, net, respectively. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The effective tax rate for the three months ended March 31, 2024 and 2023 was 19.2% and 27.6%, respectively. The effective tax rate for the three months ended March 31, 2024 was lower than the effective tax rate for the three months ended March 31, 2023 due to discrete items that reduced the rate in 2024 compared to discrete items that increased the rate in 2023. 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 has 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. We are also a leading provider of technology dedicated to Precision Agriculture. 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. The Raven brand supports Precision Agriculture, digital technology and the development of autonomous systems. Hemisphere, acquired in 2023, provides high-performance satellite positioning technology for the agriculture and construction industries. 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 along with a wide variety of attachments. Construction equipment is sold under the CASE Construction Equipment, New Holland Construction and Eurocomach brands. Financial Services provides and administers financing to end-use customers for the purchase of new and used agricultural and construction equipment and components sold through CNH's dealer network, as well as revolving charge account financing and other financial services. Financial Services also provides wholesale financing to CNH dealers and distributors primarily to finance inventories of equipment for those dealers. Further, Financial Services provides trade receivables factoring services to CNH subsidiaries. The European Financial Services operations are supported by the Iveco Group's Financial Services segment. Financial Services also provides financial services to Iveco Group companies in the North America, South America and Asia Pacific regions. 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 the Agriculture and Construction segments, the CODM assesses segment performance and makes decisions about resource allocation based upon Adjusted EBIT. The Company believes Adjusted EBIT more fully reflects Agriculture and Construction segments profitability. Adjusted EBIT of the Agriculture and Construction segments is defined as net income (loss) before income taxes, Financial Services' results, Industrial Activities’ segments interest expenses (net), foreign exchange gains/losses, finance and non-service component of pension and other post-employment benefit costs, restructuring expenses, and certain nonrecurring items. In particular, non-recurring items are specifically disclosed items that management considers rare or discrete events that are infrequent in nature and not reflective of on-going operational activities. With reference to Financial Services, the CODM assesses the performance of the segment and makes decisions about resource allocation on the basis of net income prepared in accordance with U.S. GAAP. The following table includes the reconciliation of Adjusted EBIT for Industrial Activities to net income, the most comparable U.S. GAAP financial measure, for the three months ended March 31, 2024 and 2023 (in millions of dollars): Three Months Ended March 31, 2024 2023 Agriculture $ 421 $ 570 Construction 51 44 Unallocated items, eliminations, and other (67) (59) Financial Services Net Income 118 78 Financial Services Income Taxes 19 29 Interest expense of Industrial Activities, net of interest income and eliminations (32) (4) Foreign exchange (gains) losses, net of Industrial Activities — (6) Finance and non-service component of Pension and other post-employment benefit costs of Industrial Activities (1) (1) 1 Restructuring expenses of Industrial Activities (30) (1) Other discrete items of Industrial Activities (2) — 7 Income (loss) before taxes 479 659 Income tax benefit (expense) (77) (173) Net Income (loss) $ 402 $ 486 (1) In the three months ended March 31, 2024 and 2023, this item includes the pre-tax gain of $6 million and $6 million as a result of the amortization over the 4 years of the $101 million positive impact from the 2021 U.S. healthcare plan modification. (2) In the three months ended March 31, 2024 this item did not include any other discrete items. In the three months ended March 31, 2023 this item included a gain of $13 million in relation to the fair value remeasurement of Augmenta and Bennamann, partially offset by a $6 million loss on the sale of our Russia Financial Services business. |
RECEIVABLES
RECEIVABLES | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
RECEIVABLES | RECEIVABLES Financing Receivables, net A summary of financing receivables as of March 31, 2024 and December 31, 2023 is as follows (in millions of dollars): March 31, 2024 December 31, 2023 Retail $ 13,914 $ 13,868 Wholesale 10,177 10,334 Other 29 47 Total $ 24,120 $ 24,249 CNH 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 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 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 months ended March 31, 2024 and 2023 relating to the termination of dealer contracts. Transfers of Financial Assets As part of its overall funding strategy, CNH 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 continues 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 March 31, 2024 and December 31, 2023, the carrying amount of such restricted assets included in financing receivables are the following (in millions of dollars): March 31, 2024 December 31, 2023 Retail $ 7,830 $ 7,707 Wholesale 6,418 6,381 Total $ 14,248 $ 14,088 Allowance for Credit Losses Allowance for credit losses for the three months ended March 31, 2024 is as follows (in millions of dollars): Retail Wholesale Opening Balance $ 310 $ 53 Provision 38 (1) Charge-offs (11) (1) Recoveries (1) — Foreign currency translation and other (6) (1) Ending Balance $ 330 $ 50 At March 31, 2024, the allowance for credit losses included an increase in retail reserves due to specific reserve needs primarily in South America. The provision for credit losses is included in selling, general and administrative expenses. Allowance for credit losses for the three months ended March 31, 2023 is as follows (in millions of dollars): Retail Wholesale Opening Balance $ 270 $ 64 Provision 17 — Charge-offs (11) — Recoveries — — Foreign currency translation and other (12) (1) Ending Balance $ 264 $ 63 At March 31, 2023, the allowance for credit losses included a decrease in reserves of $15 million due to the sale of the Russian financial services entities, partially offset by increased specific reserve needs and portfolio growth. The provision for credit losses is included in selling, general, and administrative expenses. CNH assesses and monitors the credit quality of its financing receivables based on delinquency status. 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 receivables for which CNH has ceased accruing finance income. These receivables are generally 90 days past due. Accrued interest is charged-off to interest income. Interest income charged-off was not material for the three months ended March 31, 2024 . Interest accrual is resumed if the receivable becomes contractually current and collection becomes probable. Previously suspended income is recognized at that time. As the terms for retail financing receivables are greater than one year, the performing/nonperforming information is presented by year of origination for North America, South America and Asia Pacific. The aging of financing receivables by vintage as of March 31, 2024 is as follows (in millions of dollars): 31-60 Days 61-90 Days Total Past Current Total Non- Total Gross Charge-offs Retail North America 2024 $ 1,098 $ — $ 1,098 $ — 2023 3,389 5 3,394 3 2022 1,918 3 1,921 2 2021 1,184 2 1,186 1 2020 474 2 476 — Prior to 2020 206 1 207 1 Total 41 2 43 8,226 8,269 13 8,282 7 South America 2024 500 — 500 — 2023 1,828 16 1,844 — 2022 854 41 895 2 2021 516 17 533 1 2020 266 5 271 1 Prior to 2020 210 3 213 — Total 56 2 58 4,116 4,174 82 4,256 4 Asia Pacific 2024 660 — 660 — 2023 378 1 379 — 2022 205 1 206 — 2021 85 1 86 — 2020 18 — 18 — Prior to 2020 1 — 1 — Total 5 6 11 1,336 1,347 3 1,350 — Europe, Middle East, Africa — — — 18 18 8 26 — Total Retail $ 102 $ 10 $ 112 $ 13,696 $ 13,808 $ 106 $ 13,914 $ 11 Wholesale North America $ — $ — $ — $ 5,408 $ 5,408 $ — $ 5,408 $ — South America — — — 1,208 1,208 2 1,210 — Asia Pacific 3 1 4 821 825 — 825 1 Europe, Middle East, Africa 12 — 12 2,722 2,734 — 2,734 — Total Wholesale $ 15 $ 1 $ 16 $ 10,159 $ 10,175 $ 2 $ 10,177 $ 1 The aging of financing receivables by vintage as of December 31, 2023 is as follows (in millions of dollars): 31-60 Days 61-90 Days Total Past Current Total Non- Total Gross Charge-offs Retail North America 2023 $ 3,976 $ 4 $ 3,980 $ 1 2022 2,133 4 2,137 10 2021 1,323 3 1,326 4 2020 561 2 563 3 2019 208 1 209 3 Prior to 2019 66 1 67 3 Total 44 3 47 8,220 8,267 15 8,282 24 South America 2023 1,986 9 1,995 — 2022 955 32 987 — 2021 573 13 586 2 2020 294 4 298 7 2019 123 2 125 1 Prior to 2019 107 1 108 1 Total 22 — 22 4,016 4,038 61 4,099 11 Asia Pacific 2023 609 — 609 — 2022 453 1 454 1 2021 255 1 256 1 2020 115 1 116 2 2019 31 1 32 2 Prior to 2019 3 — 3 1 Total 5 6 11 1,455 1,466 4 1,470 7 Europe, Middle East, Africa — — — 6 6 11 17 — Total Retail $ 71 $ 9 $ 80 $ 13,697 $ 13,777 $ 91 $ 13,868 $ 42 Wholesale North America $ — $ — $ — $ 5,154 $ 5,154 $ — $ 5,154 $ — South America — — — 1,404 1,404 2 1,406 4 Asia Pacific 4 2 6 870 876 — 876 1 Europe, Middle East, Africa 5 — 5 2,893 2,898 — 2,898 — Total Wholesale $ 9 $ 2 $ 11 $ 10,321 $ 10,332 $ 2 $ 10,334 $ 5 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. As of March 31, 2024 and 2023, CNH's TDRs were immaterial. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories as of March 31, 2024 and December 31, 2023 consist of the following (in millions of dollars): March 31, 2024 December 31, 2023 Raw materials $ 1,883 $ 1,891 Work-in-process 588 443 Finished goods 3,718 3,211 Total inventories $ 6,189 $ 5,545 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2024 | |
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 $1 million in the three months ended March 31, 2024 and 2023, respectively. For the three months ended March 31, 2024 and 2023, the Company incurred operating lease expenses of $26 million and $19 million, respectively. At March 31, 2024, the Company has recorded approximately $314 million of right-of-use assets and $318 million of related lease liability included in Other assets and Other liabilities, respectively. At March 31, 2024, 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 5.5 years and 4.6%, respectively. During the three months ended March 31, 2024 and 2023, leased assets obtained in exchange for operating lease obligations were $38 million and $11 million, respectively. The operating cash outflow for amounts included in the measurement of operating lease obligations was $25 million and $18 million as of March 31, 2024 and 2023, 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 $1 million in the three months ended March 31, 2024 and 2023, respectively. For the three months ended March 31, 2024 and 2023, the Company incurred operating lease expenses of $26 million and $19 million, respectively. At March 31, 2024, the Company has recorded approximately $314 million of right-of-use assets and $318 million of related lease liability included in Other assets and Other liabilities, respectively. At March 31, 2024, 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 5.5 years and 4.6%, respectively. During the three months ended March 31, 2024 and 2023, leased assets obtained in exchange for operating lease obligations were $38 million and $11 million, respectively. The operating cash outflow for amounts included in the measurement of operating lease obligations was $25 million and $18 million as of March 31, 2024 and 2023, 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023 is as follows (in millions of dollars): March 31, 2024 December 31, 2023 Equity method $ 504 $ 509 Other investments, at carrying value 55 54 Total $ 559 $ 563 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES Changes in the carrying amount of goodwill for the three months ended March 31, 2024 were as follows (in millions of dollars): Agriculture Construction Financial Total Balance at January 1, 2024 $ 3,426 $ 47 $ 141 $ 3,614 Foreign currency translation and other (9) (1) (1) (11) Balance at March 31, 2024 $ 3,417 $ 46 $ 140 $ 3,603 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 performed its most recent annual impairment review as of December 31, 2023 and concluded that there was no impairment to goodwill for any of the reporting entities. The acquisition of Hemisphere during the fourth quarter of 2023 led to an increase in goodwill for Agriculture of $111 million. Goodwill related to the acquisition was calculated as the excess of the consideration transferred over the net assets recognized. During the first quarter of 2024 a measurement period adjustment was recorded which decreased goodwill by $2 million. The valuation of assets and liabilities assumed was not finalized as of March 31, 2024. Thus, goodwill associated with this acquisition is subject to adjustment during the measurement period. The acquisitions of Augmenta and Bennamann 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 valuation of assets acquired and liabilities assumed was finalized as of March 31, 2024. As of March 31, 2024 and December 31, 2023, the Company’s other intangible assets and related accumulated amortization consisted of the following (in millions of dollars): March 31, 2024 December 31, 2023 Weighted Gross Accumulated Net Gross Accumulated Net Other intangible assets subject to amortization: Dealer networks 20-25 $ 245 $ 224 $ 21 $ 246 $ 223 $ 23 Patents, concessions, licenses and other 5-25 929 539 390 928 523 405 Capitalized software 2-5 1,120 843 277 1,070 810 260 2,294 1,606 688 2,244 1,556 688 Other intangible assets not subject to In-process research and development 215 — 215 213 — 213 Software in-progress 89 — 89 119 — 119 Trademarks 273 — 273 272 — 272 Total other intangible assets $ 2,871 $ 1,606 $ 1,265 $ 2,848 $ 1,556 $ 1,292 During the fourth quarter of 2023, the Company recorded $51 million in intangible assets based on the preliminary valuation for Hemisphere. During the first quarter of 2024 a measurement period adjustment was recorded which increased intangible assets by $6 million. The valuation of assets acquired and liabilities assumed has not been finalized as of March 31, 2024. Thus, intangibles associated with the acquisition is subject to adjustment during the measurement period. 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 was finalized as of March 31, 2024. |
SUPPLY CHAIN FINANCE PROGRAMS
SUPPLY CHAIN FINANCE PROGRAMS | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
SUPPLY CHAIN FINANCE PROGRAMS | SUPPLY CHAIN FINANCE PROGRAMS Under the supply chain finance ("SCF") 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. No guarantees are provided by the Company under the SCF program. As of March 31, 2024 and December 31, 2023, $161 million and $148 million of obligations remain outstanding that we have confirmed as valid to the administrators of the SCF programs. We have no economic interest in a supplier’s decision to participate in the SCF program, and we have no direct financial relationship with the financial institutions, as it relates to the SCF program. 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. |
OTHER LIABILITIES
OTHER LIABILITIES | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LIABILITIES | OTHER LIABILITIES A summary of "Other liabilities" as of March 31, 2024 and December 31, 2023 is as follows (in millions of dollars): March 31, 2024 December 31, 2023 Warranty and campaign programs $ 601 $ 610 Marketing and sales incentive programs 2,336 2,409 Tax payables 473 704 Accrued expenses and deferred income 1,003 946 Accrued employee benefits 415 524 Lease liabilities 318 300 Legal reserves and other provisions 359 342 Contract reserve 23 24 Contract liabilities 55 50 Restructuring reserve 42 43 Other 342 355 Total $ 5,967 $ 6,307 Warranty and Campaign Programs CNH pays for basic warranty and other service action costs. A summary of recorded activity for the three months ended March 31, 2024 and 2023, for the basic warranty and accruals for campaign programs are as follows (in millions of dollars): Three Months Ended March 31, 2024 2023 Balance, beginning of period $ 610 $ 544 Current year additions 142 109 Claims paid (142) (107) Currency translation adjustment and other (9) 5 Balance, end of period $ 601 $ 551 Restructuring Expense |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES As a global company with a diverse business portfolio, CNH 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 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’s financial position and results. When it is probable that such a loss has been incurred and the amount can be reasonably estimated, such amounts are provided for in Company's income statement and the related accrual is recorded in “Other liabilities” on the consolidated balance sheets. Although the ultimate outcome of legal matters pending against CNH and its subsidiaries cannot be predicted, CNH 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 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 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 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 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 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 March 31, 2024 and December 31, 2023, environmental reserves of approximately $19 million and $20 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 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 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 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 the Company's (pre-Demerger) 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. The Italian criminal investigation has been dismissed in 2023. As a result of FPT Industrial's full cooperation and ongoing discussions with the investigative authorities, all German criminal investigation have also been concluded in December 2023. In certain instances CNH 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 provided guarantees on the debt or commitments of third parties and performance guarantees on non-consolidated affiliates as of March 31, 2024 and December 31, 2023 totaling of $35 million and $37 million, respectively. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS CNH 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 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 utilizes derivative instruments to mitigate its exposure to interest rate and foreign currency exposures. CNH 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 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 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 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’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’s foreign exchange derivatives wa s $5.4 billion and $6.1 billion at March 31, 2024 and December 31, 2023, respectively. Interest Rate Derivatives CNH 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 recognizes interest expense on the related debt. Interest rate derivatives that have been designated as fair value hedge relationships have been used by CNH 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 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’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 months ended March 31, 2024 and 2023. All of CNH’s interest rate derivatives outstanding as of March 31, 2024 and December 31, 2023 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’s interest rate derivatives was approximately $8.7 billion and $9.0 billion at March 31, 2024 and December 31, 2023, 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 months ended March 31, 2024 and 2023 (in millions of dollars): Recognized in Net Income For the Three Months Ended March 31, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2024 Foreign exchange contracts $ (4) Net sales (1) Cost of goods sold (4) Other, net 6 Interest rate contracts 10 Interest expense (5) Total $ 6 $ (4) 2023 Foreign exchange contracts $ 15 Net sales (1) Cost of goods sold (27) Other, net 7 Interest rate contracts (22) Interest expense 5 Total $ (7) $ (16) The following table summarizes the activity in accumulated other comprehensive income related to the derivatives held by the Company during the three months ended March 31, 2024 and 2023 (in millions of dollars): Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2023 $ (19) $ 9 $ (10) Net changes in fair value of derivatives 6 (2) 4 Net losses reclassified from accumulated other comprehensive income into income 4 (1) 3 Accumulated derivative net losses as of March 31, 2024 $ (9) $ 6 $ (3) Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2022 $ 71 $ (27) $ 44 Net changes in fair value of derivatives (7) 4 (3) Net losses reclassified from accumulated other comprehensive income into income 16 (2) 14 Accumulated derivative net losses as of March 31, 2023 $ 80 $ (25) $ 55 The following tables summarize the impact related to changes in the fair value of fair value hedges and derivatives not designated as hedges during the three months ended March 31, 2024 and 2023 (in millions of dollars): For the Three Months Ended March 31, Classification of Gain (Loss) 2024 2023 Fair Value Hedges Interest rate derivatives Interest expense $ (4) $ 16 Not Designated as Hedges Foreign exchange contracts Other, Net $ (10) $ (24) The fair values of CNH’s derivatives as of March 31, 2024 and December 31, 2023 in the consolidated balance sheets are recorded as follows (in millions of dollars): March 31, 2024 December 31, 2023 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate contracts Derivative assets $ 39 Derivative assets $ 60 Foreign currency contracts Derivative assets 19 Derivative assets 31 Total derivative assets $ 58 $ 91 Interest rate contracts Derivative liabilities $ 106 Derivative liabilities $ 117 Foreign currency contracts Derivative liabilities 31 Derivative liabilities 49 Total derivative liabilities $ 137 $ 166 Derivatives not designated as hedging instruments Interest rate contracts Derivative assets $ 33 Derivative assets $ 31 Foreign currency contracts Derivative assets 12 Derivative assets 14 Total derivative assets $ 45 $ 45 Interest rate contracts Derivative liabilities $ 33 Derivative liabilities $ 30 Foreign currency contracts Derivative liabilities 5 Derivative liabilities 20 Total derivative liabilities $ 38 $ 50 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 March 31, 2024 and December 31, 2023 (in millions of dollars): Level 1 Level 2 Total March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Assets Foreign exchange derivatives $ — $ — $ 31 $ 46 $ 31 $ 46 Interest rate derivatives — — 72 90 72 90 Total Assets $ — $ — $ 103 $ 136 $ 103 $ 136 Liabilities Foreign exchange derivatives $ — $ — $ 36 $ 69 $ 36 $ 69 Interest rate derivatives — — 139 147 139 147 Total Liabilities $ — $ — $ 175 $ 216 $ 175 $ 216 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 March 31, 2024, and December 31, 2023, were as follows (in millions of dollars): March 31, 2024 December 31, 2023 Carrying Fair Carrying Fair Financing receivables $ 24,120 $ 24,061 $ 24,249 $ 24,129 Debt $ 27,780 $ 28,118 $ 27,326 $ 27,624 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) | 3 Months Ended |
Mar. 31, 2024 | |
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 17: 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 months ended March 31, 2024 and 2023 consisted of the following (in millions of dollars): Three Months Ended March 31, 2024 Gross Income Net Unrealized gain (loss) on cash flow hedges $ 10 $ (3) $ 7 Changes in retirement plans’ funded status (1) 1 — Foreign currency translation (50) — (50) Share of other comprehensive income (loss) of entities using the equity method (6) — (6) Other comprehensive income (loss) $ (47) $ (2) $ (49) Three Months Ended March 31, 2023 Gross Income Net Unrealized gain (loss) on cash flow hedges $ 9 $ 1 $ 10 Changes in retirement plans’ funded status (6) 1 (5) Foreign currency translation (33) — (33) Share of other comprehensive income (loss) of entities using the equity method (9) — (9) Other comprehensive income (loss) $ (39) $ 2 $ (37) The changes, net of tax, in each component of accumulated other comprehensive income (loss) in the three months ended March 31, 2024 and 2023 consisted of the following (in millions of dollars): Unrealized Change in Foreign Currency Share of Other Total Balance January 1, 2024 $ (10) $ (351) $ (1,763) $ (250) $ (2,374) Other comprehensive income (loss), before reclassifications 4 — (50) (6) (52) Amounts reclassified from other comprehensive income 3 — — — 3 Other comprehensive income (loss)* 7 — (50) (6) (49) Balance March 31, 2024 $ (3) $ (351) $ (1,813) $ (256) $ (2,423) Balance January 1, 2023 $ 46 $ (285) $ (1,800) $ (239) $ (2,278) Other comprehensive income (loss), before reclassifications (4) (1) (34) (9) (48) Amounts reclassified from other comprehensive income 14 (4) — — 10 Other comprehensive income (loss)* 10 (5) (34) (9) (38) Balance March 31, 2023 $ 56 $ (290) $ (1,834) $ (248) $ (2,316) (*) Excluded from the table above is other comprehensive income (loss) allocated to non-controlling interests of $— million and $1 million for the three months ended March 31, 2024 and 2023, respectively. Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three months ended March 31, 2024 and 2023 consisted of the following (in millions of dollars): Amounts Reclassified from Other Consolidated Statement Three Months Ended March 31, 2024 2023 Cash flow hedges $ 1 $ 1 Net sales 4 27 Cost of goods sold (6) (7) Other, net 5 (5) Interest expense (1) (2) Income taxes 3 14 Change in retirement plans’ funded status: Amortization of actuarial losses 5 4 * Amortization of prior service cost (6) (9) * 1 1 Income taxes — (4) Total reclassifications, net of tax $ 3 $ 10 (*) 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 | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY INFORMATION | RELATED PARTY INFORMATION As of March 31, 2024, CNH’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., 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. As of March 31, 2024, EXOR N.V. held 45.1% of CNH’s voting power and had the ability to significantly influence the decisions submitted to a vote of CNH’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 as of March 31, 2024. In addition, CNH engages in transactions with its unconsolidated subsidiaries and affiliates over which CNH 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 March 31, 2024 and December 31, 2023, among other things, EXOR N.V. managed a portfolio that includes investments in Stellantis, Iveco Group and Ferrari. CNH did not enter into any significant transactions with EXOR N.V. during the three months ended March 31, 2024 and 2023. Transactions with Iveco Group post-Demerger CNH and Iveco Group post-Demerger entered into transactions consisting of the sale of engines from Iveco Group to CNH. Additionally, concurrent with the Demerger, the Companies entered into services contracts in relation to general administrative and specific technical matters, provided by either CNH to Iveco Group and vice versa as follows: Master Service Agreements : CNH and Iveco Group entered into a two-year Master Services Agreement (“MSA”) starting in 2022, with a two-year extension, 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 post-Demerger, Iveco Group and CNH entered into a ten-year Engine Supply Agreement (“ESA”), whereby Iveco Group will sell to CNH 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 to Iveco Group or vice versa, in connection with the execution of the Demerger Deed, CNH and Iveco Group entered into a three-year Master Services Agreement (“FS MSA”) starting in 2022, with a three-year extension, 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 March 31, 2024 2023 Net sales $ 38 $ 20 Purchases $ 211 $ 255 March 31, 2024 December 31, 2023 Trade receivables $ 15 $ 25 Financial receivables from Iveco Group N.V. $ 230 $ 380 Trade payables $ 173 $ 335 Financial payables to Iveco Group N.V. $ 70 $ 146 Transactions with Unconsolidated Subsidiaries and Affiliates CNH 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 also purchases equipment from unconsolidated subsidiaries and affiliates, such as Turk Traktor ve Ziraat Makineleri A.S. The following table sets forth the related party transactions entered into for the time period presented: Three Months Ended March 31, 2024 2023 Net sales $ 158 $ 133 Purchases $ 142 $ 150 March 31, 2024 December 31, 2023 Trade receivables $ 6 $ 2 Trade payables $ 111 $ 54 At March 31, 2024 and December 31, 2023, CNH had provided guarantees totaling $35 million and $37 million, respectively, on certain commitments of its affiliate CNH Industrial Capital Europe S.a.S. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSOn April 19, 2024, the Company terminated its five-year multicurrency revolving credit agreement dated March 18, 2021 and entered into a new multicurrency revolving credit agreement with Citibank Europe Plc, as facility agent, and other lenders named therein (the “Credit Agreement”). The Credit Agreement which provides for an unsecured, committed revolving credit facility in an aggregate principal amount equal to €3.25 billion. The Company may elect to increase the total commitments under the Credit Facility up to an additional €500 million. The proceeds of the loans under the Credit Agreement may be used for general corporate and working capital purposes, including without limitation the refinancing of existing indebtedness of the CNH group. The Credit Agreement will mature, and all outstanding loans will become due and payable, on April 19, 2029, or such later date as may be extended pursuant to the two extension options of 1-year each which are available to the Company on the terms set forth in the Credit Agreement. |
NEW ACCOUNTING PRONOUNCEMENTS (
NEW ACCOUNTING PRONOUNCEMENTS (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023. 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 2024 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 . T he adoption did not have a material impact on our consolidated financial statements. Not Yet Adopted Improvements to income tax disclosures In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures , to enhance the transparency and decision usefulness of income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments in this update are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have to our income tax disclosures. Improvements to reportable segment disclosures In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures , to improve the disclosures about a public entity’s reportable segments and address requests from investors for additional, more detailed information about a reportable segment’s expenses. The amendments in this update are effective date for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of adoption to our reportable segment disclosures. 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 material effect on its financial statements and related disclosures. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue by Segment and Source | The following table summarizes revenues for the three months ended March 31, 2024 and 2023 (in millions of dollars): Three Months Ended March 31, 2024 2023 Agriculture $ 3,373 $ 3,927 Construction 758 849 Total Industrial Activities 4,131 4,776 Financial Services 685 549 Eliminations and other 2 17 Total Revenues $ 4,818 $ 5,342 The following table disaggregates revenues by major source for the three months ended March 31, 2024 and 2023 (in millions of dollars): Three Months Ended March 31, 2024 2023 Revenues from: Sales of goods $ 4,120 $ 4,767 Rendering of services and other revenues 11 9 Revenues from sales of goods and services 4,131 4,776 Finance and interest income 536 402 Rents and other income on operating lease 151 164 Finance, interest and other income 687 566 Total Revenues $ 4,818 $ 5,342 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 those assets that can only 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). March 31, 2024 December 31, 2023 Restricted cash $ 629 $ 626 Financing receivables 10,369 10,365 Total Assets $ 10,998 $ 10,991 Debt $ 10,072 $ 10,033 Total Liabilities $ 10,072 $ 10,033 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Basic EPS attributable to common shareholders Net income (loss) attributable to CNH Industrial N.V $ 401 $ 482 Weighted average common shares outstanding—basic 1,260 1,342 Basic earnings (loss) per share $ 0.32 $ 0.36 Diluted EPS attributable to common shareholders Weighted average common shares outstanding—basic 1,260 1,342 Dilutive effect of stock compensation plans (1) 14 17 Weighted average common shares outstanding—diluted 1,274 1,359 Diluted earnings (loss) per share $ 0.31 $ 0.35 (1) For the three months ended March 31, 2024, 301,000 shares were excluded from the computation of diluted earnings per share due to an anti-dilutive impact. For the three months ended March 31, 2023, no shares were excluded from the computation of diluted earnings per share due to an anti-dilutive impact. |
EMPLOYEE BENEFIT PLANS AND PO_2
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Postemployment Benefits [Abstract] | |
Summary of Net Periodic Benefit Cost | The following table summarizes the components of net periodic benefit cost of CNH’s defined benefit pension plans and postretirement health and life insurance plans for the three months ended March 31, 2024 and 2023 (in millions of dollars): Pension Healthcare Other Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2024 2023 2024 2023 2024 2023 Service cost $ 2 $ 2 $ 1 $ 1 $ 1 $ 1 Interest cost 13 14 2 2 1 1 Expected return on assets (13) (11) (1) (1) — — Amortization of: Prior service credit — — (6) (9) — — Actuarial loss (gain) 5 4 — — — — Net periodic benefit cost $ 7 $ 9 $ (4) $ (7) $ 2 $ 2 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 and 2023 (in millions of dollars): Three Months Ended March 31, 2024 2023 Agriculture $ 421 $ 570 Construction 51 44 Unallocated items, eliminations, and other (67) (59) Financial Services Net Income 118 78 Financial Services Income Taxes 19 29 Interest expense of Industrial Activities, net of interest income and eliminations (32) (4) Foreign exchange (gains) losses, net of Industrial Activities — (6) Finance and non-service component of Pension and other post-employment benefit costs of Industrial Activities (1) (1) 1 Restructuring expenses of Industrial Activities (30) (1) Other discrete items of Industrial Activities (2) — 7 Income (loss) before taxes 479 659 Income tax benefit (expense) (77) (173) Net Income (loss) $ 402 $ 486 (1) In the three months ended March 31, 2024 and 2023, this item includes the pre-tax gain of $6 million and $6 million as a result of the amortization over the 4 years of the $101 million positive impact from the 2021 U.S. healthcare plan modification. (2) In the three months ended March 31, 2024 this item did not include any other discrete items. In the three months ended March 31, 2023 this item included a gain of $13 million in relation to the fair value remeasurement of Augmenta and Bennamann, partially offset by a $6 million loss on the sale of our Russia Financial Services business. |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Summary of Financing Receivables | A summary of financing receivables as of March 31, 2024 and December 31, 2023 is as follows (in millions of dollars): March 31, 2024 December 31, 2023 Retail $ 13,914 $ 13,868 Wholesale 10,177 10,334 Other 29 47 Total $ 24,120 $ 24,249 |
Summary of Carrying Amount of Restricted Assets | At March 31, 2024 and December 31, 2023, the carrying amount of such restricted assets included in financing receivables are the following (in millions of dollars): March 31, 2024 December 31, 2023 Retail $ 7,830 $ 7,707 Wholesale 6,418 6,381 Total $ 14,248 $ 14,088 |
Summary of Aging of Financing Receivables | The aging of financing receivables by vintage as of March 31, 2024 is as follows (in millions of dollars): 31-60 Days 61-90 Days Total Past Current Total Non- Total Gross Charge-offs Retail North America 2024 $ 1,098 $ — $ 1,098 $ — 2023 3,389 5 3,394 3 2022 1,918 3 1,921 2 2021 1,184 2 1,186 1 2020 474 2 476 — Prior to 2020 206 1 207 1 Total 41 2 43 8,226 8,269 13 8,282 7 South America 2024 500 — 500 — 2023 1,828 16 1,844 — 2022 854 41 895 2 2021 516 17 533 1 2020 266 5 271 1 Prior to 2020 210 3 213 — Total 56 2 58 4,116 4,174 82 4,256 4 Asia Pacific 2024 660 — 660 — 2023 378 1 379 — 2022 205 1 206 — 2021 85 1 86 — 2020 18 — 18 — Prior to 2020 1 — 1 — Total 5 6 11 1,336 1,347 3 1,350 — Europe, Middle East, Africa — — — 18 18 8 26 — Total Retail $ 102 $ 10 $ 112 $ 13,696 $ 13,808 $ 106 $ 13,914 $ 11 Wholesale North America $ — $ — $ — $ 5,408 $ 5,408 $ — $ 5,408 $ — South America — — — 1,208 1,208 2 1,210 — Asia Pacific 3 1 4 821 825 — 825 1 Europe, Middle East, Africa 12 — 12 2,722 2,734 — 2,734 — Total Wholesale $ 15 $ 1 $ 16 $ 10,159 $ 10,175 $ 2 $ 10,177 $ 1 The aging of financing receivables by vintage as of December 31, 2023 is as follows (in millions of dollars): 31-60 Days 61-90 Days Total Past Current Total Non- Total Gross Charge-offs Retail North America 2023 $ 3,976 $ 4 $ 3,980 $ 1 2022 2,133 4 2,137 10 2021 1,323 3 1,326 4 2020 561 2 563 3 2019 208 1 209 3 Prior to 2019 66 1 67 3 Total 44 3 47 8,220 8,267 15 8,282 24 South America 2023 1,986 9 1,995 — 2022 955 32 987 — 2021 573 13 586 2 2020 294 4 298 7 2019 123 2 125 1 Prior to 2019 107 1 108 1 Total 22 — 22 4,016 4,038 61 4,099 11 Asia Pacific 2023 609 — 609 — 2022 453 1 454 1 2021 255 1 256 1 2020 115 1 116 2 2019 31 1 32 2 Prior to 2019 3 — 3 1 Total 5 6 11 1,455 1,466 4 1,470 7 Europe, Middle East, Africa — — — 6 6 11 17 — Total Retail $ 71 $ 9 $ 80 $ 13,697 $ 13,777 $ 91 $ 13,868 $ 42 Wholesale North America $ — $ — $ — $ 5,154 $ 5,154 $ — $ 5,154 $ — South America — — — 1,404 1,404 2 1,406 4 Asia Pacific 4 2 6 870 876 — 876 1 Europe, Middle East, Africa 5 — 5 2,893 2,898 — 2,898 — Total Wholesale $ 9 $ 2 $ 11 $ 10,321 $ 10,332 $ 2 $ 10,334 $ 5 |
Summary of Allowance for Credit Loss Activity | Allowance for credit losses for the three months ended March 31, 2024 is as follows (in millions of dollars): Retail Wholesale Opening Balance $ 310 $ 53 Provision 38 (1) Charge-offs (11) (1) Recoveries (1) — Foreign currency translation and other (6) (1) Ending Balance $ 330 $ 50 Allowance for credit losses for the three months ended March 31, 2023 is as follows (in millions of dollars): Retail Wholesale Opening Balance $ 270 $ 64 Provision 17 — Charge-offs (11) — Recoveries — — Foreign currency translation and other (12) (1) Ending Balance $ 264 $ 63 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories as of March 31, 2024 and December 31, 2023 consist of the following (in millions of dollars): March 31, 2024 December 31, 2023 Raw materials $ 1,883 $ 1,891 Work-in-process 588 443 Finished goods 3,718 3,211 Total inventories $ 6,189 $ 5,545 |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023 is as follows (in millions of dollars): March 31, 2024 December 31, 2023 Equity method $ 504 $ 509 Other investments, at carrying value 55 54 Total $ 559 $ 563 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the three months ended March 31, 2024 were as follows (in millions of dollars): Agriculture Construction Financial Total Balance at January 1, 2024 $ 3,426 $ 47 $ 141 $ 3,614 Foreign currency translation and other (9) (1) (1) (11) Balance at March 31, 2024 $ 3,417 $ 46 $ 140 $ 3,603 |
Summary of Other Intangible Assets | As of March 31, 2024 and December 31, 2023, the Company’s other intangible assets and related accumulated amortization consisted of the following (in millions of dollars): March 31, 2024 December 31, 2023 Weighted Gross Accumulated Net Gross Accumulated Net Other intangible assets subject to amortization: Dealer networks 20-25 $ 245 $ 224 $ 21 $ 246 $ 223 $ 23 Patents, concessions, licenses and other 5-25 929 539 390 928 523 405 Capitalized software 2-5 1,120 843 277 1,070 810 260 2,294 1,606 688 2,244 1,556 688 Other intangible assets not subject to In-process research and development 215 — 215 213 — 213 Software in-progress 89 — 89 119 — 119 Trademarks 273 — 273 272 — 272 Total other intangible assets $ 2,871 $ 1,606 $ 1,265 $ 2,848 $ 1,556 $ 1,292 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Liabilities | A summary of "Other liabilities" as of March 31, 2024 and December 31, 2023 is as follows (in millions of dollars): March 31, 2024 December 31, 2023 Warranty and campaign programs $ 601 $ 610 Marketing and sales incentive programs 2,336 2,409 Tax payables 473 704 Accrued expenses and deferred income 1,003 946 Accrued employee benefits 415 524 Lease liabilities 318 300 Legal reserves and other provisions 359 342 Contract reserve 23 24 Contract liabilities 55 50 Restructuring reserve 42 43 Other 342 355 Total $ 5,967 $ 6,307 |
Summary of Basic Warranty and Accruals for Campaign Programs | A summary of recorded activity for the three months ended March 31, 2024 and 2023, for the basic warranty and accruals for campaign programs are as follows (in millions of dollars): Three Months Ended March 31, 2024 2023 Balance, beginning of period $ 610 $ 544 Current year additions 142 109 Claims paid (142) (107) Currency translation adjustment and other (9) 5 Balance, end of period $ 601 $ 551 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 and 2023 (in millions of dollars): Recognized in Net Income For the Three Months Ended March 31, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2024 Foreign exchange contracts $ (4) Net sales (1) Cost of goods sold (4) Other, net 6 Interest rate contracts 10 Interest expense (5) Total $ 6 $ (4) 2023 Foreign exchange contracts $ 15 Net sales (1) Cost of goods sold (27) Other, net 7 Interest rate contracts (22) Interest expense 5 Total $ (7) $ (16) Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three months ended March 31, 2024 and 2023 consisted of the following (in millions of dollars): Amounts Reclassified from Other Consolidated Statement Three Months Ended March 31, 2024 2023 Cash flow hedges $ 1 $ 1 Net sales 4 27 Cost of goods sold (6) (7) Other, net 5 (5) Interest expense (1) (2) Income taxes 3 14 Change in retirement plans’ funded status: Amortization of actuarial losses 5 4 * Amortization of prior service cost (6) (9) * 1 1 Income taxes — (4) Total reclassifications, net of tax $ 3 $ 10 (*) 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 three months ended March 31, 2024 and 2023 (in millions of dollars): Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2023 $ (19) $ 9 $ (10) Net changes in fair value of derivatives 6 (2) 4 Net losses reclassified from accumulated other comprehensive income into income 4 (1) 3 Accumulated derivative net losses as of March 31, 2024 $ (9) $ 6 $ (3) Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2022 $ 71 $ (27) $ 44 Net changes in fair value of derivatives (7) 4 (3) Net losses reclassified from accumulated other comprehensive income into income 16 (2) 14 Accumulated derivative net losses as of March 31, 2023 $ 80 $ (25) $ 55 The following tables summarize the impact related to changes in the fair value of fair value hedges and derivatives not designated as hedges during the three months ended March 31, 2024 and 2023 (in millions of dollars): For the Three Months Ended March 31, Classification of Gain (Loss) 2024 2023 Fair Value Hedges Interest rate derivatives Interest expense $ (4) $ 16 Not Designated as Hedges Foreign exchange contracts Other, Net $ (10) $ (24) |
Summary of Fair Value of Derivatives | The fair values of CNH’s derivatives as of March 31, 2024 and December 31, 2023 in the consolidated balance sheets are recorded as follows (in millions of dollars): March 31, 2024 December 31, 2023 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate contracts Derivative assets $ 39 Derivative assets $ 60 Foreign currency contracts Derivative assets 19 Derivative assets 31 Total derivative assets $ 58 $ 91 Interest rate contracts Derivative liabilities $ 106 Derivative liabilities $ 117 Foreign currency contracts Derivative liabilities 31 Derivative liabilities 49 Total derivative liabilities $ 137 $ 166 Derivatives not designated as hedging instruments Interest rate contracts Derivative assets $ 33 Derivative assets $ 31 Foreign currency contracts Derivative assets 12 Derivative assets 14 Total derivative assets $ 45 $ 45 Interest rate contracts Derivative liabilities $ 33 Derivative liabilities $ 30 Foreign currency contracts Derivative liabilities 5 Derivative liabilities 20 Total derivative liabilities $ 38 $ 50 |
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 March 31, 2024 and December 31, 2023 (in millions of dollars): Level 1 Level 2 Total March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Assets Foreign exchange derivatives $ — $ — $ 31 $ 46 $ 31 $ 46 Interest rate derivatives — — 72 90 72 90 Total Assets $ — $ — $ 103 $ 136 $ 103 $ 136 Liabilities Foreign exchange derivatives $ — $ — $ 36 $ 69 $ 36 $ 69 Interest rate derivatives — — 139 147 139 147 Total Liabilities $ — $ — $ 175 $ 216 $ 175 $ 216 |
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 March 31, 2024, and December 31, 2023, were as follows (in millions of dollars): March 31, 2024 December 31, 2023 Carrying Fair Carrying Fair Financing receivables $ 24,120 $ 24,061 $ 24,249 $ 24,129 Debt $ 27,780 $ 28,118 $ 27,326 $ 27,624 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 and 2023 consisted of the following (in millions of dollars): Three Months Ended March 31, 2024 Gross Income Net Unrealized gain (loss) on cash flow hedges $ 10 $ (3) $ 7 Changes in retirement plans’ funded status (1) 1 — Foreign currency translation (50) — (50) Share of other comprehensive income (loss) of entities using the equity method (6) — (6) Other comprehensive income (loss) $ (47) $ (2) $ (49) Three Months Ended March 31, 2023 Gross Income Net Unrealized gain (loss) on cash flow hedges $ 9 $ 1 $ 10 Changes in retirement plans’ funded status (6) 1 (5) Foreign currency translation (33) — (33) Share of other comprehensive income (loss) of entities using the equity method (9) — (9) Other comprehensive income (loss) $ (39) $ 2 $ (37) |
Summary of Changes in Other Comprehensive Income (Loss) | The changes, net of tax, in each component of accumulated other comprehensive income (loss) in the three months ended March 31, 2024 and 2023 consisted of the following (in millions of dollars): Unrealized Change in Foreign Currency Share of Other Total Balance January 1, 2024 $ (10) $ (351) $ (1,763) $ (250) $ (2,374) Other comprehensive income (loss), before reclassifications 4 — (50) (6) (52) Amounts reclassified from other comprehensive income 3 — — — 3 Other comprehensive income (loss)* 7 — (50) (6) (49) Balance March 31, 2024 $ (3) $ (351) $ (1,813) $ (256) $ (2,423) Balance January 1, 2023 $ 46 $ (285) $ (1,800) $ (239) $ (2,278) Other comprehensive income (loss), before reclassifications (4) (1) (34) (9) (48) Amounts reclassified from other comprehensive income 14 (4) — — 10 Other comprehensive income (loss)* 10 (5) (34) (9) (38) Balance March 31, 2023 $ 56 $ (290) $ (1,834) $ (248) $ (2,316) (*) Excluded from the table above is other comprehensive income (loss) allocated to non-controlling interests of $— million and $1 million for the three months ended March 31, 2024 and 2023, 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 months ended March 31, 2024 and 2023 (in millions of dollars): Recognized in Net Income For the Three Months Ended March 31, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2024 Foreign exchange contracts $ (4) Net sales (1) Cost of goods sold (4) Other, net 6 Interest rate contracts 10 Interest expense (5) Total $ 6 $ (4) 2023 Foreign exchange contracts $ 15 Net sales (1) Cost of goods sold (27) Other, net 7 Interest rate contracts (22) Interest expense 5 Total $ (7) $ (16) Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three months ended March 31, 2024 and 2023 consisted of the following (in millions of dollars): Amounts Reclassified from Other Consolidated Statement Three Months Ended March 31, 2024 2023 Cash flow hedges $ 1 $ 1 Net sales 4 27 Cost of goods sold (6) (7) Other, net 5 (5) Interest expense (1) (2) Income taxes 3 14 Change in retirement plans’ funded status: Amortization of actuarial losses 5 4 * Amortization of prior service cost (6) (9) * 1 1 Income taxes — (4) Total reclassifications, net of tax $ 3 $ 10 (*) 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) | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Transactions | The transactions with Iveco Group post-Demerger are reflected in the consolidated financial statements as follows (in millions of dollars): Three Months Ended March 31, 2024 2023 Net sales $ 38 $ 20 Purchases $ 211 $ 255 March 31, 2024 December 31, 2023 Trade receivables $ 15 $ 25 Financial receivables from Iveco Group N.V. $ 230 $ 380 Trade payables $ 173 $ 335 Financial payables to Iveco Group N.V. $ 70 $ 146 The following table sets forth the related party transactions entered into for the time period presented: Three Months Ended March 31, 2024 2023 Net sales $ 158 $ 133 Purchases $ 142 $ 150 March 31, 2024 December 31, 2023 Trade receivables $ 6 $ 2 Trade payables $ 111 $ 54 |
BASIS OF PRESENTATION - Additio
BASIS OF PRESENTATION - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Oct. 12, 2023 | Mar. 15, 2023 | Mar. 13, 2023 | Mar. 31, 2024 | Sep. 30, 2023 | Dec. 31, 2023 | Mar. 31, 2023 | |
Business Combination Segment Allocation [Line Items] | |||||||
Goodwill | $ 3,603 | $ 3,614 | |||||
Hemisphere | |||||||
Business Combination Segment Allocation [Line Items] | |||||||
Consideration | $ 181 | ||||||
Goodwill | 111 | ||||||
Intangible assets | $ 51 | ||||||
Intangible assets increase | 6 | ||||||
Goodwill reduction | $ 2 | ||||||
Bennamann | |||||||
Business Combination Segment Allocation [Line Items] | |||||||
Consideration | $ 51 | ||||||
Goodwill | $ 118 | ||||||
Intangible assets | 46 | ||||||
Percentage of ownership interest | 50.0085% | ||||||
Goodwill reduction | $ 3 | ||||||
Percentage of capital stock acquired | 34.40% | ||||||
Augmenta | |||||||
Business Combination Segment Allocation [Line Items] | |||||||
Consideration | $ 80 | ||||||
Goodwill | 76 | ||||||
Intangible assets | $ 35 | ||||||
Goodwill reduction | $ 14 | ||||||
Percentage of capital stock acquired | 89.50% | ||||||
Deferred payment | $ 10 |
REVENUE - Summary of Net Revenu
REVENUE - Summary of Net Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 4,131 | $ 4,776 |
Total Revenues | 4,818 | 5,342 |
Operating segments | Agriculture | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3,373 | 3,927 |
Operating segments | Construction | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 758 | 849 |
Financial Services | Operating segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from sales of goods and services | 685 | 549 |
Financial Services | Eliminations and other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue not from sales of goods and services | 2 | 17 |
Total Industrial Activities | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 4,131 | $ 4,776 |
REVENUE - Disaggregation of Net
REVENUE - Disaggregation of Net Revenues by Major Source (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenues from sales of goods and services | $ 4,131 | $ 4,776 |
Finance and interest income | 536 | 402 |
Rents and other income on operating lease | 151 | 164 |
Finance, interest and other income | 687 | 566 |
Total Revenues | 4,818 | 5,342 |
Sales of goods | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from sales of goods and services | 4,120 | 4,767 |
Rendering of services and other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from sales of goods and services | $ 11 | $ 9 |
REVENUE - Performance Obligatio
REVENUE - Performance Obligation (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract liabilities | $ 55 | $ 50 | |
Revenues relating to contract liabilities outstanding | 5 | $ 3 | |
Transaction price allocated to remaining performance obligations | $ 55 | $ 48 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Percentage of revenue recognized on remaining performance obligation | 32% | ||
Percentage of revenue recognized on remaining performance obligation, period two | 95% | ||
Revenue over the remaining lives of the contracts | 12 months | ||
Revenue over the remaining lives of the contracts, period two | 36 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Percentage of revenue recognized on remaining performance obligation | 31% | ||
Percentage of revenue recognized on remaining performance obligation, period two | 93% | ||
Revenue over the remaining lives of the contracts | 12 months | ||
Revenue over the remaining lives of the contracts, period two | 36 months |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Variable Interest Entity [Line Items] | ||
Restricted cash | $ 723 | $ 723 |
Financing receivables | 24,120 | 24,249 |
Total Assets | 45,726 | 46,351 |
Debt | 27,780 | 27,326 |
Total Liabilities | 37,714 | 38,117 |
Unconsolidated Subsidiaries and Affiliates | ||
Variable Interest Entity [Line Items] | ||
Restricted cash | 629 | 626 |
Financing receivables | 10,369 | 10,365 |
Total Assets | 10,998 | 10,991 |
Debt | 10,072 | 10,033 |
Total Liabilities | $ 10,072 | $ 10,033 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Basic EPS attributable to common shareholders | ||
Net income (loss) attributable to CNH Industrial N.V. | $ 401 | $ 482 |
Weighted average common shares outstanding—basic (in shares) | 1,260,000,000 | 1,342,000,000 |
Basic earnings (loss per share (in usd per share) | $ 0.32 | $ 0.36 |
Diluted EPS attributable to common shareholders | ||
Stock compensation plans (in shares) | 14,000,000 | 17,000,000 |
Weighted average common shares outstanding—diluted (in shares) | 1,274,000,000 | 1,359,000,000 |
Diluted earnings (loss) per share (in usd per share) | $ 0.31 | $ 0.35 |
Antidilutive securities excluded from EPS computation (in shares) | 301,000 | 0 |
EMPLOYEE BENEFIT PLANS AND PO_3
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 2 | $ 2 |
Interest cost | 13 | 14 |
Expected return on assets | (13) | (11) |
Amortization of: | ||
Prior service credit | 0 | 0 |
Actuarial loss (gain) | 5 | 4 |
Net periodic benefit cost | 7 | 9 |
Healthcare | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 1 | 1 |
Interest cost | 2 | 2 |
Expected return on assets | (1) | (1) |
Amortization of: | ||
Prior service credit | (6) | (9) |
Actuarial loss (gain) | 0 | 0 |
Net periodic benefit cost | (4) | (7) |
Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 1 | 1 |
Interest cost | 1 | 1 |
Expected return on assets | 0 | 0 |
Amortization of: | ||
Prior service credit | 0 | 0 |
Actuarial loss (gain) | 0 | 0 |
Net periodic benefit cost | $ 2 | $ 2 |
EMPLOYEE BENEFIT PLANS AND PO_4
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Reduction of plan liability | $ 100 |
Amortization period of retirement benefits payable | 4 years |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 19.20% | 27.60% |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 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 | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Net income (loss) | $ 402 | $ 486 | |
Income tax expense | (77) | (173) | |
Restructuring expenses of Industrial Activities | (31) | (1) | |
Income (loss) before taxes | 479 | 659 | |
Amortization period of retirement benefits payable | 4 years | ||
Reduction of plan liability | $ 100 | ||
Operating segments | |||
Segment Reporting Information [Line Items] | |||
Interest expense of Industrial Activities, net of interest income and eliminations | (32) | (4) | |
Foreign exchange (gains) losses, net of Industrial Activities | 0 | (6) | |
Finance and non-service component of Pension and other post-employment benefit cost of Industrial Activities | (1) | 1 | |
Restructuring expenses of Industrial Activities | (30) | (1) | |
Other discrete items | 0 | 7 | |
Gain in relation to fair value measurement | 13 | ||
Loss from sale of business, held for sale | 6 | ||
Unallocated items, eliminations, and other | |||
Segment Reporting Information [Line Items] | |||
Adjusted earnings before interest and tax | (67) | (59) | |
Unallocated items, eliminations, and other | 2021 Modification of Healthcare Plan | |||
Segment Reporting Information [Line Items] | |||
Pre-tax gain from amortization of benefits modification | $ 6 | 6 | |
Amortization period of retirement benefits payable | 4 years | ||
Reduction of plan liability | $ 101 | ||
Agriculture | Operating segments | |||
Segment Reporting Information [Line Items] | |||
Adjusted earnings before interest and tax | 421 | 570 | |
Construction | Operating segments | |||
Segment Reporting Information [Line Items] | |||
Adjusted earnings before interest and tax | 51 | 44 | |
Financial Services | Operating segments | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) | 118 | 78 | |
Income tax expense | $ 19 | $ 29 |
RECEIVABLES - Summary of Financ
RECEIVABLES - Summary of Financing Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | $ 24,120 | $ 24,249 |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | 13,914 | 13,868 |
Wholesale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | 10,177 | 10,334 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | $ 29 | $ 47 |
RECEIVABLES - Additional Inform
RECEIVABLES - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 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 | |
Russia | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, allowance for credit loss, period increase (decrease) | $ 15,000,000 | |
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 | 7 years |
RECEIVABLES - Carrying Amount o
RECEIVABLES - Carrying Amount of Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total | $ 14,248 | $ 14,088 |
Retail | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total | 7,830 | 7,707 |
Wholesale | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total | $ 6,418 | $ 6,381 |
RECEIVABLES - Allowance for Cre
RECEIVABLES - Allowance for Credit Losses Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Recoveries | $ 0 | |
Retail | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Opening Balance | $ 310 | 270 |
Provision | 38 | 17 |
Charge-offs | (11) | (11) |
Recoveries | (1) | 0 |
Foreign currency translation and other | (6) | (12) |
Ending Balance | 330 | 264 |
Wholesale | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Opening Balance | 53 | 64 |
Provision | (1) | 0 |
Charge-offs | (1) | 0 |
Recoveries | 0 | |
Foreign currency translation and other | (1) | (1) |
Ending Balance | $ 50 | $ 63 |
RECEIVABLES - Summary of Aging
RECEIVABLES - Summary of Aging of Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Retail | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | $ 13,914 | $ 13,868 |
Gross Charge-offs | ||
Total | 11 | 42 |
Retail | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 13,808 | 13,777 |
Retail | Non- Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 106 | 91 |
Retail | North America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Current fiscal year | 1,098 | 3,980 |
Fiscal year before current fiscal year | 3,394 | 2,137 |
Two years before current fiscal year | 1,921 | 1,326 |
Three years before current fiscal year | 1,186 | 563 |
Four years before current fiscal year | 476 | 209 |
Prior | 207 | 67 |
Total | 8,282 | 8,282 |
Gross Charge-offs | ||
Current fiscal year | 0 | 1 |
Fiscal year before current fiscal year | 3 | 10 |
Two years before current fiscal year | 2 | 4 |
Three years before current fiscal year | 1 | 3 |
Four years before current fiscal year | 0 | 3 |
Prior | 1 | 3 |
Total | 7 | 24 |
Retail | North America | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Current fiscal year | 1,098 | 3,976 |
Fiscal year before current fiscal year | 3,389 | 2,133 |
Two years before current fiscal year | 1,918 | 1,323 |
Three years before current fiscal year | 1,184 | 561 |
Four years before current fiscal year | 474 | 208 |
Prior | 206 | 66 |
Total | 8,269 | 8,267 |
Retail | North America | Non- Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Current fiscal year | 0 | 4 |
Fiscal year before current fiscal year | 5 | 4 |
Two years before current fiscal year | 3 | 3 |
Three years before current fiscal year | 2 | 2 |
Four years before current fiscal year | 2 | 1 |
Prior | 1 | 1 |
Total | 13 | 15 |
Retail | South America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Current fiscal year | 500 | 1,995 |
Fiscal year before current fiscal year | 1,844 | 987 |
Two years before current fiscal year | 895 | 586 |
Three years before current fiscal year | 533 | 298 |
Four years before current fiscal year | 271 | 125 |
Prior | 213 | 108 |
Total | 4,256 | 4,099 |
Gross Charge-offs | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 2 | 2 |
Three years before current fiscal year | 1 | 7 |
Four years before current fiscal year | 1 | 1 |
Prior | 0 | 1 |
Total | 4 | 11 |
Retail | South America | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Current fiscal year | 500 | 1,986 |
Fiscal year before current fiscal year | 1,828 | 955 |
Two years before current fiscal year | 854 | 573 |
Three years before current fiscal year | 516 | 294 |
Four years before current fiscal year | 266 | 123 |
Prior | 210 | 107 |
Total | 4,174 | 4,038 |
Retail | South America | Non- Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Current fiscal year | 0 | 9 |
Fiscal year before current fiscal year | 16 | 32 |
Two years before current fiscal year | 41 | 13 |
Three years before current fiscal year | 17 | 4 |
Four years before current fiscal year | 5 | 2 |
Prior | 3 | 1 |
Total | 82 | 61 |
Retail | Asia Pacific | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Current fiscal year | 660 | 609 |
Fiscal year before current fiscal year | 379 | 454 |
Two years before current fiscal year | 206 | 256 |
Three years before current fiscal year | 86 | 116 |
Four years before current fiscal year | 18 | 32 |
Prior | 1 | 3 |
Total | 1,350 | 1,470 |
Gross Charge-offs | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 1 |
Two years before current fiscal year | 0 | 1 |
Three years before current fiscal year | 0 | 2 |
Four years before current fiscal year | 0 | 2 |
Prior | 0 | 1 |
Total | 0 | 7 |
Retail | Asia Pacific | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Current fiscal year | 660 | 609 |
Fiscal year before current fiscal year | 378 | 453 |
Two years before current fiscal year | 205 | 255 |
Three years before current fiscal year | 85 | 115 |
Four years before current fiscal year | 18 | 31 |
Prior | 1 | 3 |
Total | 1,347 | 1,466 |
Retail | Asia Pacific | Non- Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 1 | 1 |
Two years before current fiscal year | 1 | 1 |
Three years before current fiscal year | 1 | 1 |
Four years before current fiscal year | 0 | 1 |
Prior | 0 | 0 |
Total | 3 | 4 |
Retail | Europe, Middle East, Africa | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 26 | 17 |
Gross Charge-offs | ||
Total | 0 | 0 |
Retail | Europe, Middle East, Africa | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 18 | 6 |
Retail | Europe, Middle East, Africa | Non- Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 8 | 11 |
Retail | 31-60 Days Past Due | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 102 | 71 |
Retail | 31-60 Days Past Due | North America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 41 | 44 |
Retail | 31-60 Days Past Due | South America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 56 | 22 |
Retail | 31-60 Days Past Due | Asia Pacific | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 5 | 5 |
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 | 10 | 9 |
Retail | 61-90 Days Past Due | North America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 2 | 3 |
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 | 6 | 6 |
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 | 112 | 80 |
Retail | Total Past Due | North America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 43 | 47 |
Retail | Total Past Due | South America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 58 | 22 |
Retail | Total Past Due | Asia Pacific | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 11 | 11 |
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 | 13,696 | 13,697 |
Retail | Current | North America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 8,226 | 8,220 |
Retail | Current | South America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 4,116 | 4,016 |
Retail | Current | Asia Pacific | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 1,336 | 1,455 |
Retail | Current | Europe, Middle East, Africa | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 18 | 6 |
Wholesale | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 10,177 | 10,334 |
Gross Charge-offs | ||
Total | 1 | 5 |
Wholesale | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 10,175 | 10,332 |
Wholesale | Non- Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 2 | 2 |
Wholesale | North America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 5,408 | 5,154 |
Gross Charge-offs | ||
Total | 0 | 0 |
Wholesale | North America | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 5,408 | 5,154 |
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 | 1,210 | 1,406 |
Gross Charge-offs | ||
Total | 0 | 4 |
Wholesale | South America | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 1,208 | 1,404 |
Wholesale | South America | Non- Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 2 | 2 |
Wholesale | Asia Pacific | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 825 | 876 |
Gross Charge-offs | ||
Total | 1 | 1 |
Wholesale | Asia Pacific | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 825 | 876 |
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 | 2,734 | 2,898 |
Gross Charge-offs | ||
Total | 0 | 0 |
Wholesale | Europe, Middle East, Africa | Total Performing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 2,734 | 2,898 |
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 | 15 | 9 |
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 | 0 | 0 |
Wholesale | 31-60 Days Past Due | Asia Pacific | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 3 | 4 |
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 | 12 | 5 |
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 | 2 |
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 | 0 |
Wholesale | Total Past Due | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 16 | 11 |
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 | 0 | 0 |
Wholesale | Total Past Due | Asia Pacific | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 4 | 6 |
Wholesale | Total Past Due | Europe, Middle East, Africa | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 12 | 5 |
Wholesale | Current | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 10,159 | 10,321 |
Wholesale | Current | North America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 5,408 | 5,154 |
Wholesale | Current | South America | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 1,208 | 1,404 |
Wholesale | Current | Asia Pacific | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | 821 | 870 |
Wholesale | Current | Europe, Middle East, Africa | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Total | $ 2,722 | $ 2,893 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,883 | $ 1,891 |
Work-in-process | 588 | 443 |
Finished goods | 3,718 | 3,211 |
Total inventories | $ 6,189 | $ 5,545 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Lessee, Lease, Description [Line Items] | |||
Short-term lease expenses | $ 1 | $ 1 | |
Operating lease expenses | 26 | 19 | |
Operating lease right-of-use assets | 314 | ||
Operating lease liabilities | $ 318 | $ 300 | |
Weighted average remaining lease term | 5 years 6 months | ||
Weighted average discount rate | 4.60% | ||
Leased assets obtained in exchange for operating lease obligations | $ 38 | 11 | |
Operating cash outflow for amounts included in the measurement of operating lease obligations | $ 25 | $ 18 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 3 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 5 years |
INVESTMENTS IN UNCONSOLIDATED_3
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Equity method | $ 504 | $ 509 |
Other investments, at carrying value | 55 | 54 |
Total | $ 559 | $ 563 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES - Changes in the Carrying Amount of Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning | $ 3,614 |
Foreign currency translation and other | (11) |
Balance at ending | 3,603 |
Agriculture | |
Goodwill [Roll Forward] | |
Balance at beginning | 3,426 |
Foreign currency translation and other | (9) |
Balance at ending | 3,417 |
Construction | |
Goodwill [Roll Forward] | |
Balance at beginning | 47 |
Foreign currency translation and other | (1) |
Balance at ending | 46 |
Financial Services | |
Goodwill [Roll Forward] | |
Balance at beginning | 141 |
Foreign currency translation and other | (1) |
Balance at ending | $ 140 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES - Other Intangible Assets and Related Accumulated Amortization (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, gross | $ 2,294 | $ 2,244 |
Other intangible assets subject to amortization, accumulated amortization | 1,606 | 1,556 |
Other intangible assets subject to amortization, net | 688 | 688 |
Total other intangible assets, gross | 2,871 | 2,848 |
Total other intangible assets, net | 1,265 | 1,292 |
In-process research and development | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets not subject to amortization | 215 | 213 |
Software in-progress | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets not subject to amortization | 89 | 119 |
Trademarks | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets not subject to amortization | 273 | 272 |
Dealer networks | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, gross | 245 | 246 |
Other intangible assets subject to amortization, accumulated amortization | 224 | 223 |
Other intangible assets subject to amortization, net | $ 21 | 23 |
Dealer networks | Minimum | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, weighted average life | 20 years | |
Dealer networks | Maximum | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, weighted average life | 25 years | |
Patents, concessions, licenses and other | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, gross | $ 929 | 928 |
Other intangible assets subject to amortization, accumulated amortization | 539 | 523 |
Other intangible assets subject to amortization, net | $ 390 | 405 |
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 | |
Capitalized software | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, gross | $ 1,120 | 1,070 |
Other intangible assets subject to amortization, accumulated amortization | 843 | 810 |
Other intangible assets subject to amortization, net | $ 277 | $ 260 |
Capitalized software | Minimum | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, weighted average life | 2 years | |
Capitalized software | Maximum | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, weighted average life | 5 years |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | |
Goodwill [Line Items] | ||||
Amortization expense | $ 45 | $ 38 | ||
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 | |||
Hemisphere | ||||
Goodwill [Line Items] | ||||
Goodwill reduction | 2 | |||
Intangible assets | $ 51 | |||
Intangible assets increase | 6 | |||
Hemisphere | Agriculture | ||||
Goodwill [Line Items] | ||||
Goodwill, acquired | $ 2 | $ 111 | ||
Augment and Bennamann | ||||
Goodwill [Line Items] | ||||
Intangible assets | $ 81 |
SUPPLY CHAIN FINANCE PROGRAMS (
SUPPLY CHAIN FINANCE PROGRAMS (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Supply chain financing | $ 161 | $ 148 |
OTHER LIABILITIES - Summary of
OTHER LIABILITIES - Summary of Other Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||||
Warranty and campaign programs | $ 601 | $ 610 | $ 551 | $ 544 |
Marketing and sales incentive programs | 2,336 | 2,409 | ||
Tax payables | 473 | 704 | ||
Accrued expenses and deferred income | 1,003 | 946 | ||
Accrued employee benefits | 415 | 524 | ||
Lease liabilities | 318 | 300 | ||
Legal reserves and other provisions | 359 | 342 | ||
Contract reserve | 23 | 24 | ||
Contract liabilities | 55 | 50 | ||
Restructuring reserve | 42 | 43 | ||
Other | 342 | 355 | ||
Total | $ 5,967 | $ 6,307 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance, beginning of period | $ 610 | $ 544 |
Current year additions | 142 | 109 |
Claims paid | (142) | (107) |
Currency translation adjustment and other | (9) | 5 |
Balance, end of period | $ 601 | $ 551 |
OTHER LIABILITIES - Additional
OTHER LIABILITIES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Liabilities [Abstract] | ||
Restructuring expenses | $ 31 | $ 1 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) site | Dec. 31, 2023 USD ($) | |
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 | $ | $ 19 | $ 20 |
Guarantees at carrying value | $ | $ 35 | $ 37 |
FINANCIAL INSTRUMENTS - Additio
FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) $ in Billions | Mar. 31, 2024 | Dec. 31, 2023 |
Foreign exchange contracts | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Notional amount of foreign exchange derivatives | $ 5.4 | $ 6.1 |
Interest rate derivatives | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Notional amount of foreign exchange derivatives | $ 8.7 | $ 9 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (Loss) Recognized in Accumulated Other Comprehensive Income | $ 6 | $ (7) |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (4) | (16) |
Net sales | Foreign exchange contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (Loss) Recognized in Accumulated Other Comprehensive Income | (4) | 15 |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (1) | (1) |
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 | (4) | (27) |
Other, Net | Foreign exchange contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 6 | 7 |
Interest expense | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (Loss) Recognized in Accumulated Other Comprehensive Income | 10 | (22) |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | $ (5) | $ 5 |
FINANCIAL INSTRUMENTS - Summary
FINANCIAL INSTRUMENTS - Summary of Activity in Accumulated Other Comprehensive Income Related to Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Before-Tax Amount | ||
Net changes in fair value of derivatives | $ (7) | |
Income Tax | ||
Net changes in fair value of derivatives | $ (2) | 4 |
After-Tax Amount | ||
Other comprehensive income (loss), before reclassifications | 4 | (3) |
Unrealized Gain (Loss) on Cash Flow Hedges | ||
Before-Tax Amount | ||
Accumulated derivative net gain(loss), beginning balance | (19) | 71 |
Net losses reclassified from accumulated other comprehensive income into income | 4 | 16 |
Accumulated derivative net gain(loss), ending balance | (9) | 80 |
Income Tax | ||
Accumulated derivative net gain(loss), beginning balance | 9 | (27) |
Net losses reclassified from accumulated other comprehensive income into income | (1) | (2) |
Accumulated derivative net gain(loss), ending balance | 6 | (25) |
After-Tax Amount | ||
Accumulated derivative net gain(loss), beginning balance | (10) | 44 |
Other comprehensive income (loss), before reclassifications | 4 | (4) |
Net losses reclassified from accumulated other comprehensive income into income | 3 | 14 |
Accumulated derivative net gain(loss), ending balance | $ (3) | $ 55 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest expense | Fair Value Hedges | Interest rate derivatives | ||
Fair Value Hedges | ||
Interest rate derivatives, fair value hedges | $ (4) | $ 16 |
Other, Net | Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Not Designated as Hedges | ||
Foreign exchange contracts, not designated as hedges | $ (10) | $ (24) |
FINANCIAL INSTRUMENTS - Fair Va
FINANCIAL INSTRUMENTS - Fair Values of Derivatives (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 103 | $ 136 |
Derivative liabilities | 175 | 216 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 58 | 91 |
Derivative liabilities | 137 | 166 |
Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 39 | 60 |
Derivative liabilities | 106 | 117 |
Derivatives designated as hedging instruments | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 19 | 31 |
Derivative liabilities | 31 | 49 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 45 | 45 |
Derivative liabilities | 38 | 50 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 33 | 31 |
Derivative liabilities | 33 | 30 |
Derivatives not designated as hedging instruments | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 12 | 14 |
Derivative liabilities | $ 5 | $ 20 |
FINANCIAL INSTRUMENTS - Fair _2
FINANCIAL INSTRUMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Value on Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 103 | $ 136 |
Derivative liabilities | 175 | 216 |
Fair Value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 103 | 136 |
Total Liabilities | 175 | 216 |
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 | 103 | 136 |
Total Liabilities | 175 | 216 |
Fair Value, measurements, recurring | Foreign exchange derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 31 | 46 |
Derivative liabilities | 36 | 69 |
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 | 31 | 46 |
Derivative liabilities | 36 | 69 |
Fair Value, measurements, recurring | Interest rate derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 72 | 90 |
Derivative liabilities | 139 | 147 |
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 | 72 | 90 |
Derivative liabilities | $ 139 | $ 147 |
FINANCIAL INSTRUMENTS - Estimat
FINANCIAL INSTRUMENTS - Estimated Fair Values of Instruments Not Carried at Fair Value in Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivables | $ 24,120 | $ 24,249 |
Debt | 27,780 | 27,326 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivables | 24,061 | 24,129 |
Debt | $ 28,118 | $ 27,624 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of OCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Amount | $ (47) | $ (39) |
Income Taxes | (2) | 2 |
Other comprehensive income (loss), net of tax | (49) | (37) |
Cash flow hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Amount | 10 | 9 |
Income Taxes | (3) | 1 |
Other comprehensive income (loss), net of tax | 7 | 10 |
Changes in retirement plans’ funded status | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Amount | (1) | (6) |
Income Taxes | 1 | 1 |
Other comprehensive income (loss), net of tax | 0 | (5) |
Foreign currency translation | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Amount | (50) | (33) |
Income Taxes | 0 | 0 |
Other comprehensive income (loss), net of tax | (50) | (33) |
Share of other comprehensive income (loss) of entities using the equity method | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gross Amount | (6) | (9) |
Income Taxes | 0 | 0 |
Other comprehensive income (loss), net of tax | $ (6) | $ (9) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | $ 8,180 | $ 6,927 |
Other comprehensive income (loss), before reclassifications | (4) | 3 |
Other comprehensive income (loss), net of tax | (49) | (37) |
Ending balance | 7,955 | 7,399 |
Non-controlling interest | 0 | 1 |
Total | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (2,374) | (2,278) |
Other comprehensive income (loss), before reclassifications | 52 | 48 |
Amounts reclassified from other comprehensive income | 3 | 10 |
Other comprehensive income (loss), net of tax | (49) | (38) |
Ending balance | (2,423) | (2,316) |
Unrealized Gain (Loss) on Cash Flow Hedges | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (10) | 46 |
Other comprehensive income (loss), before reclassifications | (4) | 4 |
Amounts reclassified from other comprehensive income | 3 | 14 |
Other comprehensive income (loss), net of tax | 7 | 10 |
Ending balance | (3) | 56 |
Change in Retirement Plans’ Funded Status | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (351) | (285) |
Other comprehensive income (loss), before reclassifications | 0 | 1 |
Amounts reclassified from other comprehensive income | 0 | (4) |
Other comprehensive income (loss), net of tax | 0 | (5) |
Ending balance | (351) | (290) |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (1,763) | (1,800) |
Other comprehensive income (loss), before reclassifications | 50 | 34 |
Amounts reclassified from other comprehensive income | 0 | 0 |
Other comprehensive income (loss), net of tax | (50) | (34) |
Ending balance | (1,813) | (1,834) |
Share of Other Comprehensive Income (Loss) of Entities Using the Equity Method | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (250) | (239) |
Other comprehensive income (loss), before reclassifications | 6 | 9 |
Amounts reclassified from other comprehensive income | 0 | 0 |
Other comprehensive income (loss), net of tax | (6) | (9) |
Ending balance | $ (256) | $ (248) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net sales | $ 4,131 | $ 4,776 |
Cost of goods sold | (3,195) | (3,611) |
Other, net | (157) | (163) |
Interest expense | (394) | (272) |
Income taxes | (77) | (173) |
Net Income (loss) | 402 | 486 |
Reclassification out of accumulated other comprehensive income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net Income (loss) | 3 | 10 |
Reclassification out of accumulated other comprehensive income | Unrealized Gain (Loss) on Cash Flow Hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net sales | 1 | 1 |
Cost of goods sold | 4 | 27 |
Other, net | (6) | (7) |
Interest expense | 5 | (5) |
Income taxes | (1) | (2) |
Net Income (loss) | 3 | 14 |
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 | 1 | 1 |
Net Income (loss) | 0 | (4) |
Reclassification out of accumulated other comprehensive income | Amortization of actuarial losses | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other, net | 5 | 4 |
Reclassification out of accumulated other comprehensive income | Amortization of prior service cost | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other, net | $ 6 | $ 9 |
RELATED PARTY INFORMATION - Add
RELATED PARTY INFORMATION - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
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 | |
Related party, agreement extension term | 3 years | |
EXOR N.V. | ||
Related Party Transaction [Line Items] | ||
Percentage of common shares outstanding held by related parties | 45.10% | |
CNH Industrial Capital Europe S.A.S. | ||
Related Party Transaction [Line Items] | ||
Pledged guarantees on commitments | $ 35 | $ 37 |
RELATED PARTY INFORMATION - Sch
RELATED PARTY INFORMATION - Schedule of Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |||
Net sales | $ 4,131 | $ 4,776 | |
Cost of goods sold | 3,195 | 3,611 | |
Trade receivables, net | 155 | $ 133 | |
Financial receivables from Iveco Group N.V. | 230 | 380 | |
Trade payables | 3,225 | 3,611 | |
Financial payables to Iveco Group N.V. | 70 | 146 | |
Iveco Group post-Demerger | Related Party | |||
Related Party Transaction [Line Items] | |||
Net sales | 38 | 20 | |
Cost of goods sold | 211 | 255 | |
Trade receivables, net | 15 | 25 | |
Financial receivables from Iveco Group N.V. | 230 | 380 | |
Trade payables | 173 | 335 | |
Financial payables to Iveco Group N.V. | 70 | 146 | |
Unconsolidated subsidiaries and affiliates | Related Party | |||
Related Party Transaction [Line Items] | |||
Net sales | 158 | 133 | |
Cost of goods sold | 142 | $ 150 | |
Trade receivables, net | 6 | 2 | |
Trade payables | $ 111 | $ 54 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Revolving Credit Facility - Unsecured Debt € in Millions | Apr. 19, 2024 EUR (€) extension_option |
Subsequent Event [Line Items] | |
Debt term | 5 years |
Principal amount | € 3,250 |
Additional principal amount | € 500 |
Debt agreement extensions | extension_option | 2 |
Period extension term | 1 year |