UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended ~~September 30, 2021~~March 31, 2022
or
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to

Commission File Number: 000-55510

CNH INDUSTRIAL CAPITAL LLC

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization)		39-1937630 (I.R.S. Employer Identification Number)
5729 Washington Avenue Racine, Wisconsin (Address of principal executive offices)	(262) 636-6011 (Registrant’s telephone number, including area code)	53406 (Zip code)

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ⌧x Yes ◻o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ⌧x Yes ◻o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ◻o

Accelerated filer ◻o

Non-accelerated filer ⌧

~~Emerging growth company~~ ☐x

Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ☒x No

As of ~~September 30, 2021,~~March 31, 2022, all of the limited liability company interests of the registrant were held by CNH Industrial America LLC, a wholly-owned subsidiary of CNH Industrial N.V.

The registrant meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this Form with certain reduced disclosures as permitted by those instructions.

Table of Contents

TABLE OF CONTENTS


		PAGE
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Consolidated Statements of Income for the Three ~~and Nine~~ Months Ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ (Unaudited)	1
	Consolidated Statements of Comprehensive Income for the Three ~~and Nine~~ Months Ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ (Unaudited)	2
	Consolidated Balance Sheets as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 (Unaudited)	3
	Consolidated Statements of Cash Flows for the ~~Nine~~Three Months Ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ (Unaudited)	5
	Consolidated Statements of Changes in Stockholder’s Equity for the ~~Nine~~Three Months Ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ (Unaudited)	6
	Condensed Notes to Consolidated Financial Statements (Unaudited)	87
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2623
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	*
Item 4.	Controls and Procedures	3732
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	3733
Item 1A.	Risk Factors	3733
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	*
Item 3.	Defaults Upon Senior Securities	*
Item 4.	Mine Safety Disclosures	3733
Item 5.	Other Information	3733
Item 6.	Exhibits	3833

*	This item has been omitted pursuant to the reduced disclosure format as set forth in General Instruction (H)(2) of Form 10-Q

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CNH INDUSTRIAL CAPITAL LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE ~~AND NINE~~ MONTHS ENDED ~~SEPTEMBER 30,~~MARCH 31, 2022 AND 2021 ~~AND 2020~~

(Dollars in thousands)

(Unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020		2022		2021
REVENUES
Interest income on retail notes and finance leases	$	43,531	$	46,995	$	123,582	$	143,015	$	46,701	$	41,152
Interest income on wholesale notes		7,577		12,673		24,906		41,814		5,491		8,929
Interest and other income from affiliates		71,322		75,233		226,399		242,745		62,307		79,765
Rental income on operating leases		66,870		64,406		202,894		188,600		63,821		67,975
Other income		16,791		10,367		29,220		23,021		9,089		5,829
Total revenues		206,091		209,674		607,001		639,195		187,409		203,650
EXPENSES
Interest expense:
Interest expense to third parties		46,093		68,122		149,643		212,738		39,087		56,180
Interest expense to affiliates		1,260		718		3,825		2,764		333		810
Total interest expense		47,353		68,840		153,468		215,502		39,420		56,990
Administrative and operating expenses:
Fees charged by affiliates		11,394		10,399		34,118		33,542		11,416		11,539
Provision (benefit) for credit losses		622		12,575		(8,917)		47,712		2,825		(1,538)
Depreciation of equipment on operating leases		59,577		59,722		181,273		176,848		53,557		61,068
Other expenses		5,209		8,208		17,084		23,609
Other expenses, net										(2,723)		2,313
Total administrative and operating expenses		76,802		90,904		223,558		281,711		65,075		73,382
Total expenses		124,155		159,744		377,026		497,213		104,495		130,372
INCOME BEFORE TAXES		81,936		49,930		229,975		141,982		82,914		73,278
Income tax provision		19,514		11,775		55,060		32,759		19,427		17,298
NET INCOME	$	62,422	$	38,155	$	174,915	$	109,223	$	63,487	$	55,980

See the accompanying Condensed Notes to Consolidated Financial Statements (Unaudited).

Table of Contents

CNH INDUSTRIAL CAPITAL LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE ~~AND NINE~~ MONTHS ENDED ~~SEPTEMBER 30,~~MARCH 31, 2022 AND 2021 ~~AND 2020~~

(Dollars in thousands)

(Unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020		2022		2021
NET INCOME	$	62,422	$	38,155	$	174,915	$	109,223	$	63,487	$	55,980
Other comprehensive income (loss):
Foreign currency translation adjustment		(16,310)		10,733		(661)		(14,225)		9,154		5,758
Pension liability adjustment		(42)		(17)		(157)		(72)		(186)		(56)
Change in derivative financial instruments		757		362		3,830		(8,184)		6,451		2,263
Total other comprehensive income (loss)		(15,595)		11,078		3,012		(22,481)
Total other comprehensive income										15,419		7,965
COMPREHENSIVE INCOME	$	46,827	$	49,233	$	177,927	$	86,742	$	78,906	$	63,945

See the accompanying Condensed Notes to Consolidated Financial Statements (Unaudited).

Table of Contents

CNH INDUSTRIAL CAPITAL LLC AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF ~~SEPTEMBER 30, 2021~~MARCH 31, 2022 AND DECEMBER 31, ~~2020~~2021

(Dollars in thousands)

(Unaudited)


	September 30,		December 31,		March 31,		December 31,
	2021		2020		2022		2021
ASSETS
Cash and cash equivalents	$	375,629	$	392,929	$	304,845	$	426,917
Restricted cash and cash equivalents		508,813		625,622		535,749		601,742
Receivables, less allowance for credit losses of $119,825 and $136,136, respectively		8,895,667		8,896,811
Receivables, less allowance for credit losses of $118,374 and $115,953, respectively						9,123,856		8,951,299
Affiliated accounts and notes receivable		637,358		414,810		235,342		259,699
Equipment on operating leases, net		1,740,969		1,859,184		1,648,043		1,707,531
Equipment held for sale		27,072		36,515		15,217		26,320
Goodwill		110,161		110,158		110,636		110,226
Other intangible assets, net		13,585		13,333		16,456		16,452
Other assets		79,937		101,807		100,034		87,582
TOTAL	$	12,389,191	$	12,451,169	$	12,090,178	$	12,187,768
LIABILITIES AND STOCKHOLDER’S EQUITY
Liabilities:
Short-term debt (including current maturities of long-term debt)	$	4,226,014	$	4,229,428	$	3,659,507	$	3,755,368
Accounts payable and other accrued liabilities		977,292		904,399		1,115,120		1,038,930
Affiliated debt		4,000		187,310		33,896		2,100
Long-term debt		5,903,592		5,869,860		5,978,248		6,141,970
Total liabilities		11,110,898		11,190,997		10,786,771		10,938,368
Commitments and contingent liabilities (Note 11)
Stockholder’s equity:
Member’s capital		—		—		—		—
Paid-in capital		843,428		843,234		843,570		843,469
Accumulated other comprehensive loss		(117,223)		(120,235)		(96,038)		(111,457)
Retained earnings		552,088		537,173		555,875		517,388
Total stockholder’s equity		1,278,293		1,260,172		1,303,407		1,249,400
TOTAL	$	12,389,191	$	12,451,169	$	12,090,178	$	12,187,768

See the accompanying Condensed Notes to Consolidated Financial Statements (Unaudited).

Table of Contents

CNH INDUSTRIAL CAPITAL LLC AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF ~~SEPTEMBER 30, 2021~~MARCH 31, 2022 AND DECEMBER 31, ~~2020~~2021

(Dollars in thousands)

(Unaudited)

The following table presents certain assets and liabilities of consolidated variable interest entities (“VIEs”), which are included in the consolidated balance sheets. The assets in the table include those assets that can only be used to settle obligations of consolidated VIEs. The liabilities in the table include third-party liabilities of the consolidated VIEs, for which creditors do not have recourse to the general credit of CNH Industrial Capital LLC.


	September 30,		December 31,		March 31,		December 31,
	2021		2020		2022		2021
Restricted cash and cash equivalents	$	508,813	$	625,622	$	535,749	$	601,742
Receivables, less allowance for credit losses of $66,040 and $78,960, respectively		6,304,814		6,364,343
Receivables, less allowance for credit losses of $65,914 and $61,652, respectively						6,433,991		6,634,540
TOTAL	$	6,813,627	$	6,989,965	$	6,969,740	$	7,236,282

Short-term debt (including current maturities of long-term debt)	$	2,943,751	$	3,017,432	$	2,958,272	$	3,015,110
Long-term debt		3,282,575		3,262,842		3,389,288		3,453,396
TOTAL	$	6,226,326	$	6,280,274	$	6,347,560	$	6,468,506

See the accompanying Condensed Notes to Consolidated Financial Statements (Unaudited).

Table of Contents

CNH INDUSTRIAL CAPITAL LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE ~~NINE~~THREE MONTHS ENDED ~~SEPTEMBER 30,~~MARCH 31, 2022 AND 2021 ~~AND 2020~~

(Dollars in thousands)

(Unaudited)

2021

2020
CASH FLOWS FROM OPERATING ACTIVITIES


Net income

$
174,915

$
109,223
Adjustments to reconcile net income to net cash from (used in) operating activities:

Depreciation on property and equipment and equipment on operating leases

181,279

176,853
Amortization of intangibles

1,400

1,171
Provision (benefit) for credit losses

(8,917)

47,712
Deferred income tax expense

3,890

(10,783)
Changes in components of working capital:

Change in affiliated accounts and notes receivables

(222,541)

(248,652)
Change in other assets and equipment held for sale

21,988

(38,750)
Change in accounts payable and other accrued liabilities

71,616

81,704
Net cash from (used in) operating activities


223,630

118,478
CASH FLOWS FROM INVESTING ACTIVITIES


Cost of receivables acquired

(8,733,466)

(7,327,903)
Collections of receivables

8,743,735

7,991,709
Purchase of equipment on operating leases

(334,539)

(375,458)
Proceeds from disposal of equipment on operating leases

281,336

285,890
Change in property, equipment and software, net

(1,652)

(1,010)
Net cash from (used in) investing activities


(44,586)

573,228
CASH FLOWS FROM FINANCING ACTIVITIES


Proceeds from issuance of affiliated debt

259,793

765,415
Payment of affiliated debt

(443,103)

(764,889)
Proceeds from issuance of long-term debt

3,039,408

2,556,026
Payment of long-term debt

(3,002,563)

(2,625,939)
Change in short-term borrowings, net

(6,688)

(527,786)
Dividends paid to CNH Industrial America LLC

(160,000)

(130,000)
Net cash from (used in) financing activities


(313,153)

(727,173)
DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH


(134,109)

(35,467)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH


Beginning of period

1,018,551

804,244
End of period

$
884,442

$
768,777
CASH PAID DURING THE PERIOD FOR INTEREST

$
156,617

$
187,712
CASH PAID DURING THE PERIOD FOR TAXES

$
43,459

$
24,511


	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	63,487	$	55,980
Adjustments to reconcile net income to net cash from (used in) operating activities:
Depreciation on property and equipment and equipment on operating leases		53,559		61,070
Amortization of intangibles		546		472
Provision (benefit) for credit losses		2,825		(1,538)
Deferred income tax expense (benefit)		(8,696)		4,656
Changes in components of working capital:
Change in affiliated accounts and notes receivables		24,361		(172,164)
Change in other assets and equipment held for sale		(3,155)		12,147
Change in accounts payable and other accrued liabilities		81,394		67,427
Net cash from (used in) operating activities		214,321		28,050
CASH FLOWS FROM INVESTING ACTIVITIES
Cost of receivables acquired		(2,789,137)		(2,534,290)
Collections of receivables		2,643,370		2,680,774
Purchase of equipment on operating leases		(122,218)		(124,175)
Proceeds from disposal of equipment on operating leases		144,365		94,608
Change in property, equipment and software, net		(549)		(750)
Net cash from (used in) investing activities		(124,169)		116,167
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of affiliated debt		31,796		173,262
Payment of affiliated debt		(475)		(13,516)
Proceeds from issuance of long-term debt		992,020		961,690
Payment of long-term debt		(1,213,575)		(1,533,981)
Change in short-term borrowings, net		(62,983)		(1,672)
Dividends paid to CNH Industrial America LLC		(25,000)		—
Net cash from (used in) financing activities		(278,217)		(414,217)
DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH		(188,065)		(270,000)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
Beginning of period		1,028,659		1,018,551
End of period	$	840,594	$	748,551
CASH PAID DURING THE PERIOD FOR INTEREST	$	47,690	$	50,325
CASH PAID DURING THE PERIOD FOR TAXES	$	32,549	$	8,718

See the accompanying Condensed Notes to Consolidated Financial Statements (Unaudited).

Table of Contents

CNH INDUSTRIAL CAPITAL LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER’S EQUITY

FOR THE ~~NINE~~THREE MONTHS ENDED ~~SEPTEMBER 30,~~MARCH 31, 2022 AND 2021 ~~AND 2020~~

(Dollars in thousands)

(Unaudited)


					Accumulated										Accumulated
					Other										Other
	Member’s		Paid-in		Comprehensive		Retained				Member’s		Paid-in		Comprehensive		Retained
	Capital		Capital		Income (Loss)		Earnings		Total		Capital		Capital		Income (Loss)		Earnings		Total
BALANCE - January 1, 2021	$	—	$	843,234	$	(120,235)	$	537,173	$	1,260,172	$	—	$	843,234	$	(120,235)	$	537,173	$	1,260,172
Net income		—		—		—		55,980		55,980		—		—		—		55,980		55,980
Dividends paid to CNH Industrial America LLC		—		—		—		—		—
Foreign currency translation adjustment		—		—		5,758		—		5,758		—		—		5,758		—		5,758
Stock compensation		—		111		—		—		111		—		111		—		—		111
Pension liability adjustment, net of tax		—		—		(56)		—		(56)		—		—		(56)		—		(56)
Change in derivative financial instruments, net of tax		—		—		2,263		—		2,263		—		—		2,263		—		2,263
BALANCE - March 31, 2021	$	—	$	843,345	$	(112,270)	$	593,153	$	1,324,228	$	—	$	843,345	$	(112,270)	$	593,153	$	1,324,228
BALANCE - January 1, 2022											$	—	$	843,469	$	(111,457)	$	517,388	$	1,249,400
Net income		—		—		—		56,513		56,513		—		—		—		63,487		63,487
Dividends paid to CNH Industrial America LLC		—		—		—		(80,000)		(80,000)		—		—		—		(25,000)		(25,000)
Foreign currency translation adjustment		—		—		9,891		—		9,891		—		—		9,154		—		9,154
Stock compensation		—		116		—		—		116		—		101		—		—		101
Pension liability adjustment, net of tax		—		—		(59)		—		(59)		—		—		(186)		—		(186)
Change in derivative financial instruments, net of tax		—		—		810		—		810		—		—		6,451		—		6,451
BALANCE - June 30, 2021	$	—	$	843,461	$	(101,628)	$	569,666	$	1,311,499
Net income		—		—		—		62,422		62,422
Dividends paid to CNH Industrial America LLC		—		—		—		(80,000)		(80,000)
Foreign currency translation adjustment		—		—		(16,310)		—		(16,310)
Stock compensation		—		(33)		—		—		(33)
Pension liability adjustment, net of tax		—		—		(42)		—		(42)
Change in derivative financial instruments, net of tax		—		—		757		—		757
BALANCE - September 30, 2021	$	—	$	843,428	$	(117,223)	$	552,088	$	1,278,293
BALANCE - March 31, 2022											$	—	$	843,570	$	(96,038)	$	555,875	$	1,303,407

See the accompanying Condensed Notes to Consolidated Financial Statements (Unaudited).

~~Table of Contents~~

~~CNH INDUSTRIAL CAPITAL LLC AND SUBSIDIARIES~~

~~CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER’S EQUITY~~

~~FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020 (Continued)~~

~~(Dollars in thousands)~~

~~(Unaudited)~~

Accumulated




Other

Member’s

Paid-in

Comprehensive

Retained

Capital

Capital

Income (Loss)

Earnings

Total
BALANCE - January 1, 2020 as previously reported

$
—

$
843,749

$
(124,396)

$
543,688

$
1,263,041
Adoption of ASC 326

—

—

—

(19,790)

(19,790)
BALANCE - January 1, 2020 as recast

—

843,749

(124,396)

523,898

1,243,251
Net income

—

—

—

35,077

35,077
Dividends paid to CNH Industrial America LLC

—

—

—

(40,000)

(40,000)
Foreign currency translation adjustment

—

—

(44,269)

—

(44,269)
Stock compensation

—

(1)

—

—

(1)
Pension liability adjustment, net of tax

—

—

(6)

—

(6)
Change in derivative financial instruments, net of tax

—

—

(7,756)

—

(7,756)
BALANCE - March 31, 2020

$
—

$
843,748

$
(176,427)

$
518,975

$
1,186,296
Net income

—

—

—

35,991

35,991
Dividends paid to CNH Industrial America LLC

—

—

—

(50,000)

(50,000)
Foreign currency translation adjustment

—

—

19,311

(5)

19,306
Stock compensation

—

72

—

—

72
Pension liability adjustment, net of tax

—

—

(49)

—

(49)
Change in derivative financial instruments, net of tax

—

—

(790)

—

(790)
BALANCE - June 30, 2020

$
—

$
843,820

$
(157,955)

$
504,961

$
1,190,826
Net income

—

—

—

38,155

38,155
Dividends paid to CNH Industrial America LLC

—

—

—

(40,000)

(40,000)
Foreign currency translation adjustment

—

—

10,733

—

10,733
Stock compensation

—

(5)

—

—

(5)
Pension liability adjustment, net of tax

—

—

(17)

—

(17)
Change in derivative financial instruments, net of tax

—

—

362

—

362
BALANCE - September 30, 2020

$
—

$
843,815

$
(146,877)

$
503,116

$
1,200,054

~~See the accompanying Condensed Notes to Consolidated Financial Statements (Unaudited).~~

Table of Contents

CNH INDUSTRIAL CAPITAL LLC AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands)

(Unaudited)

NOTE 1: BASIS OF PRESENTATION

CNH Industrial Capital LLC and its primary operating subsidiaries, including New Holland Credit Company, LLC (“New Holland Credit”), CNH Industrial Capital America LLC (“CNH Industrial Capital America”) and CNH Industrial Capital Canada Ltd. (“CNH Industrial Capital Canada”) (collectively, “CNH Industrial Capital” or the “Company”), are each a subsidiary of CNH Industrial America LLC (“CNH Industrial America”), which is an indirect wholly-owned subsidiary of CNH Industrial N.V. (“CNHI” and, together with its consolidated subsidiaries, “CNH Industrial”). CNH Industrial America and CNH Industrial Canada Ltd. (collectively, “CNH Industrial North America”) design, manufacture, and sell agricultural and construction equipment. CNH Industrial Capital provides financial services for CNH Industrial North America dealers and end-use customers primarily located in the United States and Canada.

CNHI is incorporated in and under the laws of The Netherlands. CNHI has its corporate seat in Amsterdam, The Netherlands, and its principal office in London, England. The common shares of CNHI are listed on the New York Stock Exchange under the symbol “CNHI,” as well as on the Mercato Telematico Azionario managed by Borsa Italiana S.p.A.

Until December 31, 2021, CNH Industrial owned and controlled the Commercial and Specialty Vehicles business, the Powertrain business, and the related Financial Services business (together the “Iveco Group Business” or the “On-Highway Business”), as well as the Agriculture business, the Construction business, and the related Financial Services business (collectively, the “Off-Highway Business”). Effective January 1, 2022, the Iveco Group Business was separated from CNHI by way of a demerger under Dutch law to Iveco Group N.V. (the Demerger) and Iveco Group became a public listed company independent from CNH Industrial.

On February 3, 2022, CNH Industrial Capital America and CNH Industrial Capital Canada entered into agreements with Citibank, N.A. and Citi Cards Canada Inc. (together, “Citi”), respectively, to purchase Citi’s portfolio of commercial revolving account (“CRA”) receivables underlying a private-label CRA product offered through CNH Industrial North America dealers. The transactions are expected to close in the fourth quarter of 2022, subject to the satisfaction of customary closing conditions.

The Company has prepared the accompanying consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, which should be read in conjunction with the audited financial statements in its Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021. Certain financial information that is normally included in annual financial statements prepared in conformity with U.S. GAAP, which is not required for interim reporting purposes, has been condensed or omitted. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of our interim unaudited financial statements have been reflected.

The consolidated financial statements include the Company and its consolidated subsidiaries. The consolidated financial statements are expressed in U.S. dollars. The consolidated financial statements include the accounts of the Company’s subsidiaries in which the Company has a controlling financial interest and reflect the noncontrolling interests of the minority owners of the subsidiaries that are not fully owned for the periods presented, as applicable. A controlling financial interest may exist based on ownership of a majority of the voting interest of a subsidiary, or based on the Company’s determination that it is the primary beneficiary of a variable interest entity (“VIE”). The primary beneficiary of a VIE is the party that has the power to direct the activities that most significantly impact the economic performance of the entity and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity. The Company assesses whether it is the primary beneficiary on an ongoing basis, as prescribed by the accounting guidance on the consolidation of VIEs. The consolidated status of the VIEs with which the Company is involved may change as a result of such reassessments.

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CNH INDUSTRIAL CAPITAL LLC AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands)

(Unaudited)

The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and reported amounts of revenues and expenses. Significant estimates in these consolidated financial statements include the allowance for credit losses and residual values of equipment on operating leases. Actual results could differ from these estimates.

The COVID-19 pandemic has resulted in uncertainties in the Company’s business, which may cause actual results to differ materially from the estimates and assumptions used in preparation of the financial statements including, but not limited to, future cash flows associated with the allowance for credit losses, the determination of end-of-lease market values for equipment on operating leases, goodwill and income taxes. Changes in estimates are recorded in the results of operations in the period that the events or circumstances giving rise to such changes occur.

~~Table of Contents~~

~~CNH INDUSTRIAL CAPITAL LLC AND SUBSIDIARIES~~

~~CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(Dollars in thousands)~~

~~(Unaudited)~~

NOTE 2: NEW ACCOUNTING PRONOUNCEMENTS

New Accounting Pronouncements Not Yet Adopted ~~in 2021~~

In ~~December 2019,~~March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. ~~2019-12,~~2020-04, ~~Simplifying~~Reference Rate Reform (Topic 848): Facilitation of the ~~Accounting for Income Taxes~~ Effects of Reference Rate Reform on Financial Reporting(“ (“ASU ~~2019-12”~~2020-04”). ~~This~~ ASU 2020-04 provides temporary optional expedients and exceptions for applying U.S. GAAP to contract modifications, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 can be adopted beginning as of March 12, 2020 through December 31, 2022 and may be applied as of the beginning of the interim period that includes March 12, 2020 or any date thereafter. The Company has not adopted ASU 2020-04 as of March 31, 2022. ASU 2020-04 is not expected to have a material impact on the Company’s consolidated financial statements.

In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”). ASU 2022-02 eliminates ~~certain exceptions to~~ the ~~general principles~~accounting guidance for troubled debt restructurings (“TDRs”) for creditors in ASC ~~740,~~ ~~Income Taxes~~~~. Specifically, it eliminates~~310-40 and amends the ~~exception~~guidance on vintage disclosures to ~~(1)~~require disclosure of current-period gross write-offs by year of origination. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. Entities can elect to adopt the ~~incremental approach for intraperiod tax allocation where there is~~guidance on TDRs using either a ~~loss from continuing operations, and income~~prospective or ~~a gain from other items; (2) the requirement~~modified retrospective transition. The amendments related to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; (3) the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and (4) the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year.disclosures should be adopted prospectively. The Company ~~adopted ASU 2019-12 on January 1, 2021.~~is currently evaluating the impact of adoption to its consolidated financial statements.

There are other new accounting pronouncements issued by the FASB that the Company will adopt, as applicable. The ~~adoption~~Company does not believe any of ~~this standard did not~~these accounting pronouncements will have a material impact on its consolidated financial statements. The Company has elected, pursuant to this ASU, to include a portion of CNH Industrial America’s consolidated income tax expense in the results of certain entities included in these financial statements that are disregarded by the relevant tax authorities and, therefore, would not be subject to income tax on a stand-alone basis.

NOTE 3: ACCUMULATED OTHER COMPREHENSIVE INCOME

Accumulated other comprehensive income (“AOCI”) includes net income plus other comprehensive income, which includes foreign currency translation gains and losses, certain changes in pension plans and changes in fair value of certain derivatives designated as cash flow hedges.

~~The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the three months ended September 30, 2021:~~

Currency

Unrealized

Translation

Pension

(Losses) Gains


Adjustment

Liability

on Derivatives

Total
Beginning balance, gross

$
(97,635)

$
(85)

$
(5,360)

$
(103,080)
Tax asset

—

32

1,420

1,452
Beginning balance, net of tax

(97,635)

(53)

(3,940)

(101,628)
Other comprehensive income (loss) before reclassifications

(16,310)

(91)

833

(15,568)
Amounts reclassified from accumulated other comprehensive income (loss)

—

36

197

233
Tax effects

—

13

(273)

(260)
Net current-period other comprehensive income (loss)

(16,310)

(42)

757

(15,595)
Total

$
(113,945)

$
(95)

$
(3,183)

$
(117,223)

~~Table of Contents~~

~~CNH INDUSTRIAL CAPITAL LLC AND SUBSIDIARIES~~

~~CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(Dollars in thousands)~~

~~(Unaudited)~~

~~The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the nine months ended September 30, 2021:~~

Currency

Unrealized

Translation

Pension

(Losses) Gains


Adjustment

Liability

on Derivatives

Total
Beginning balance, gross

$
(113,284)

$
67

$
(9,542)

$
(122,759)
Tax asset

—

(5)

2,529

2,524
Beginning balance, net of tax

(113,284)

62

(7,013)

(120,235)
Other comprehensive income (loss) before reclassifications

(661)

(314)

4,665

3,690
Amounts reclassified from accumulated other comprehensive income (loss)

—

107

546

653
Tax effects

—

50

(1,381)

(1,331)
Net current-period other comprehensive income (loss)

(661)

(157)

3,830

3,012
Total

$
(113,945)

$
(95)

$
(3,183)

$
(117,223)

~~The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the three months ended September 30, 2020:~~

Currency

Unrealized

Translation

Pension

(Losses) Gains


Adjustment

Liability

Derivatives

Total
Beginning balance, gross

$
(150,091)

$
(373)

$
(10,292)

$
(160,756)
Tax asset

—

74

2,727

2,801
Beginning balance, net of tax

(150,091)

(299)

(7,565)

(157,955)
Other comprehensive income (loss) before reclassifications

10,733

(109)

383

11,007
Amounts reclassified from accumulated other comprehensive income (loss)

—

52

110

162
Tax effects

—

40

(131)

(91)
Net current-period other comprehensive income (loss)

10,733

(17)

362

11,078
Total

$
(139,358)

$
(316)

$
(7,203)

$
(146,877)

108

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CNH INDUSTRIAL CAPITAL LLC AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands)

(Unaudited)

The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the ~~nine~~three months ended ~~September 30, 2020:~~March 31, 2022:


	Currency				Unrealized				Currency				Unrealized
	Translation		Pension		(Losses) Gains				Translation		Pension		(Losses) Gains
	Adjustment		Liability		Derivatives		Total		Adjustment		Liability		on Derivatives		Total
Beginning balance, gross	$	(125,133)	$	(302)	$	1,335	$	(124,100)	$	(112,618)	$	2,451	$	(956)	$	(111,123)
Tax asset		—		58		(354)		(296)
Tax asset (liability)										—		(587)		253		(334)
Beginning balance, net of tax		(125,133)		(244)		981		(124,396)		(112,618)		1,864		(703)		(111,457)
Other comprehensive income (loss) before reclassifications		(14,225)		(283)		(11,193)		(25,701)		9,154		(97)		5,299		14,356
Amounts reclassified from accumulated other comprehensive income (loss)		—		154		59		213		—		(149)		3,324		3,175
Tax effects		—		57		2,950		3,007		—		60		(2,172)		(2,112)
Net current-period other comprehensive income (loss)		(14,225)		(72)		(8,184)		(22,481)		9,154		(186)		6,451		15,419
Total	$	(139,358)	$	(316)	$	(7,203)	$	(146,877)	$	(103,464)	$	1,678	$	5,748	$	(96,038)

The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the three months ended March 31, 2021:


	Currency				Unrealized
	Translation		Pension		(Losses) Gains
	Adjustment		Liability		Derivatives		Total
Beginning balance, gross	$	(113,284)	$	67	$	(9,542)	$	(122,759)
Tax asset (liability)		—		(5)		2,529		2,524
Beginning balance, net of tax		(113,284)		62		(7,013)		(120,235)
Other comprehensive income (loss) before reclassifications		5,758		(110)		2,887		8,535
Amounts reclassified from accumulated other comprehensive income (loss)		—		36		192		228
Tax effects		—		18		(816)		(798)
Net current-period other comprehensive income (loss)		5,758		(56)		2,263		7,965
Total	$	(107,526)	$	6	$	(4,750)	$	(112,270)

The reclassifications out of AOCI and the location on the consolidated statements of income for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ are as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020		Affected Line Item	2022		2021		Affected Line Item
Amortization of defined benefit pension items:
	$	(36)	$	(52)	$	(107)	$	(154)	Various line items individually insignificant	$	149	$	(36)	Other expenses, net
		(36)		(52)		(107)		(154)	Income before taxes		149		(36)	Income before taxes
		9		44		26		68	Income tax effects		(36)		9	Income tax effects
	$	(27)	$	(8)	$	(81)	$	(86)	Net of tax	$	113	$	(27)	Net of tax
Unrealized losses on derivatives:
	$	(197)	$	(110)	$	(546)	$	(59)	Interest expense to third parties	$	(3,324)	$	(192)	Interest expense to third parties
		(197)		(110)		(546)		(59)	Income before taxes		(3,324)		(192)	Income before taxes
		53		29		145		16	Income tax effects		811		51	Income tax effects
	$	(144)	$	(81)	$	(401)	$	(43)	Net of tax	$	(2,513)	$	(141)	Net of tax

119

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CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands)

(Unaudited)

NOTE 4: RECEIVABLES

A summary of receivables included in the consolidated balance sheets as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 is as follows:


	September 30,		December 31,		March 31,		December 31,
	2021		2020		2022		2021
Retail	$	1,075,051	$	833,864	$	1,181,163	$	993,768
Wholesale		638,682		639,934		608,720		576,810
Finance lease		175,799		156,161		183,104		177,347
Restricted receivables		7,125,960		7,402,988		7,269,243		7,319,327
Gross receivables		9,015,492		9,032,947		9,242,230		9,067,252
Less: Allowance for credit losses		(119,825)		(136,136)		(118,374)		(115,953)
Total receivables, net	$	8,895,667	$	8,896,811	$	9,123,856	$	8,951,299

Restricted Receivables and Securitization

As part of its overall funding strategy, the Company periodically transfers certain receivables into ~~VIEs that are~~ special purpose entities (“SPEs”) as part of its asset-backed securitization (“ABS”) programs.

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. NaN 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.

The secured borrowings related to the restricted receivables are obligations that are payable as the receivables are collected. The following table summarizes the restricted receivables as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020:~~2021:



	September 30,		December 31,		March 31,		December 31,
	2021		2020		2022		2021
Retail	$	5,193,736	$	5,280,423	$	5,442,001	$	5,551,132
Wholesale		1,932,224		2,122,565		1,827,242		1,768,195
Total restricted receivables	$	7,125,960	$	7,402,988	$	7,269,243	$	7,319,327

Within the U.S. retail receivables securitization programs, qualifying retail receivables are sold to ~~bankruptcy~~bankruptcy- remote SPEs. In turn, these SPEs ~~either~~ establish separate trusts, which are VIEs, to ~~which the~~either transfer receivables ~~are transferred~~ in exchange for proceeds from asset-backed securities issued by the trusts, or pledge the receivables as collateral in exchange for proceeds from a committed asset-backed facility. In Canada, ~~the~~qualifying retail receivables are transferred directly to ~~the trusts. These~~ trusts, ~~were determined to be~~which are also VIEs. ~~In its role as servicer,~~The VIEs are consolidated since the Company has both the power to direct the ~~trusts’ activities. Through its retained interests,~~activities that most significantly impact the ~~Company has an~~VIEs’ economic performance and the obligation to absorb ~~certain~~ losses or the right to receive ~~certain~~ benefits that could potentially be significant to the ~~trusts. Consequently, the Company has consolidated these retail trusts.~~VIEs.

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CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands)

(Unaudited)

With regard to the wholesale receivable securitization programs, the Company sells eligible receivables on a revolving basis to structured master trust facilities, which are bankruptcy-remote SPEs. These trusts were determined to be VIEs. In its role as servicer, CNH Industrial Capital has the power to direct the trusts’ activities. Through its retained interests, the Company provides security to investors in the event that cash collections from the receivables are not sufficient to make principal and interest payments on the securities. Consequently, CNH Industrial Capital has consolidated these wholesale trusts.

Allowance for Credit Losses

The allowance for credit losses is the Company’s estimate of the lifetime expected credit losses inherent in the receivables owned by the Company. Retail receivables include retail and other notes and finance lease products offered for retail purchases of new and used equipment sold through CNH Industrial North America’s dealer network. Wholesale receivables include financing of the sale of goods to dealers and distributors by CNH Industrial North America, and to a lesser extent, the financing of dealer operations. Typically, the Company’s receivables within a geographic area have similar risk profiles and methods for assessing and monitoring risk.

Retail receivables that share the same risk characteristics, such as collateralization levels, geography, product type and other relevant factors, are reviewed on a collective basis using measurement models and management judgment. The allowance for retail credit losses is based on loss forecast models that consider a variety of factors that include, but are not limited to, historical loss experience, collateral value, portfolio balance and delinquency. The loss forecast models are updated on a quarterly basis. The calculation is adjusted for ~~forward looking~~forward-looking macroeconomic factors, such as GDP and Net Farm Income. The forward-looking macroeconomic factors are updated quarterly. In addition, qualitative factors, such as the evolving impact of COVID-19, that are not fully captured in the loss forecast models are considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective and require a degree of management judgment.

Wholesale receivables that share the same risk characteristics, such as collateralization levels, term, geography and other relevant factors, are reviewed on a collective basis using measurement models and management judgment. The allowance for wholesale credit losses is based on loss forecast models that consider a variety of factors that include, but are not limited to, historical loss experience, collateral value, portfolio balance and delinquency. The loss forecast models are updated on a quarterly basis. The calculation is adjusted for ~~forward looking~~forward-looking macroeconomic factors, such as industry sales volumes. The forward-looking macroeconomic factors are updated quarterly. In addition, qualitative factors that are not fully captured in the loss forecast models are considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective and require a degree of management judgment.

Wholesale and retail receivables that do not have similar risk characteristics are individually reviewed based on, among other items, amounts outstanding, days past due and prior collection history. Expected credit losses are measured by considering: the probability-weighted estimates of cash flows and collateral value; the time value of money; current conditions and forecasts of future economic conditions. Expected credit losses are measured as the probability-weighted present value of all cash shortfalls (including the value of the collateral, if appropriate) over the expected life of each financial asset. ~~Charge offs~~

Charge-offs of principal amounts of receivables outstanding are deducted from the allowance at the point when it is estimated that amounts due are deemed uncollectible.

1311

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CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands)

(Unaudited)

Allowance for credit losses activity for the three months ended ~~September 30, 2021~~March 31, 2022 is as follows:


	Retail		Wholesale		Total		Retail		Wholesale		Total
Allowance for credit losses:
Beginning balance	$	116,684	$	7,234	$	123,918	$	109,742	$	6,211	$	115,953
Charge-offs		(4,736)		—		(4,736)		(897)		—		(897)
Recoveries		368		108		476		297		11		308
Provision (benefit)		2,420		(1,798)		622		(666)		3,491		2,825
Foreign currency translation and other		(433)		(22)		(455)		174		11		185
Ending balance	$	114,303	$	5,522	$	119,825	$	108,650	$	9,724	$	118,374
Receivables:
Ending balance							$	6,806,268	$	2,435,962	$	9,242,230

~~Allowance~~At March 31, 2022, the allowance for credit losses ~~activity~~included an increase in reserves primarily due to specific reserve needs, partially offset by the improved outlook for the ~~nine months ended September 30,~~agricultural industry and a reduced expected impact on credit conditions from the COVID‑19 pandemic. The Company continues to monitor the situation and will update the macroeconomic factors and qualitative factors in future periods, as warranted.

At both March 31, 2021 ~~is as follows:~~

Retail

Wholesale

Total
Allowance for credit losses:

Beginning balance

$
126,851

$
9,285

$
136,136
Charge-offs

(9,056)

(179)

(9,235)
Recoveries

1,719

114

1,833
Provision (benefit)

(5,218)

(3,699)

(8,917)
Foreign currency translation and other

7

1

8
Ending balance

$
114,303

$
5,522

$
119,825
Receivables:

Ending balance

$
6,444,586

$
2,570,906

$
9,015,492

~~At September 30,~~and December 31, 2021, the allowance for credit losses included a release of reserves primarily due to the improved outlook for the agricultural industry and a reduced expected impact on credit conditions from the COVID-19 pandemic. ~~The Company continues to monitor the situation and will update the macroeconomic factors and qualitative factors in future periods, as warranted.~~

~~At both September 30, 2020 and December 31, 2020, the allowance for credit losses was based on the Company’s expectation of deteriorating credit conditions related to the COVID 19 pandemic.~~

Allowance for credit losses activity for the three months ended ~~September 30, 2020~~March 31, 2021 is as follows:

Retail

Wholesale

Total
Allowance for credit losses:

Beginning balance, as previously reported

$
112,492

$
7,333

$
119,825
Charge-offs

(3,244)

(1)

(3,245)
Recoveries

578

5

583
Provision

11,331

1,244

12,575
Foreign currency translation and other

190

17

207
Ending balance

$
121,347

$
8,598

$
129,945

~~Table of Contents~~

~~CNH INDUSTRIAL CAPITAL LLC AND SUBSIDIARIES~~

~~CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(Dollars in thousands)~~

~~(Unaudited)~~

~~Allowance for credit losses activity for the nine months ended September 30, 2020 is as follows:~~


	Retail		Wholesale		Total		Retail		Wholesale		Total
Allowance for credit losses:
Beginning balance, as previously reported	$	64,750	$	8,001	$	72,751
Adoption of ASC 326		25,877		—		25,877
Beginning balance, as recast	$	90,627	$	8,001	$	98,628
Beginning balance							$	126,851	$	9,285	$	136,136
Charge-offs		(18,028)		(213)		(18,241)		(3,232)		—		(3,232)
Recoveries		1,905		8		1,913		776		3		779
Provision		46,882		830		47,712
Provision (benefit)								(2,021)		483		(1,538)
Foreign currency translation and other		(39)		(28)		(67)		167		9		176
Ending balance	$	121,347	$	8,598	$	129,945	$	122,541	$	9,780	$	132,321
Receivables:
Ending balance	$	6,204,990	$	2,995,497	$	9,200,487	$	6,142,388	$	2,761,580	$	8,903,968

Allowance for credit losses activity for the year ended December 31, ~~2020~~2021 is as follows:


	Retail		Wholesale		Total		Retail		Wholesale		Total
Allowance for credit losses:
Beginning balance, as previously reported	$	64,750	$	8,001	$	72,751	$	126,851	$	9,285	$	136,136
Adoption of ASC 326		25,877		—		25,877
Beginning balance, as recast	$	90,627	$	8,001	$	98,628
Charge-offs		(23,147)		(1,530)		(24,677)		(14,929)		(179)		(15,108)
Recoveries		2,481		10		2,491		2,177		126		2,303
Provision		56,252		2,792		59,044
Provision (benefit)								(4,437)		(3,023)		(7,460)
Foreign currency translation and other		638		12		650		80		2		82
Ending balance	$	126,851	$	9,285	$	136,136	$	109,742	$	6,211	$	115,953
Receivables:
Ending balance	$	6,270,448	$	2,762,499	$	9,032,947	$	6,722,247	$	2,345,005	$	9,067,252

The Company assesses and monitors the credit quality of its receivables based on past due information. Receivables are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Delinquency is reported on receivables greater than 30 days past due. As the terms for retail receivables are greater than one year, the past due information is presented by year of origination.

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CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands)

(Unaudited)

The aging of receivables as of ~~September 30, 2021~~March 31, 2022 is as follows:


					Greater													Greater
	31 – 60 Days		61 – 90 Days		Than		Total					Total		31 – 60 Days		61 – 90 Days		Than		Total				Total
	Past Due		Past Due		90 Days		Past Due			Current		Receivables		Past Due		Past Due		90 Days		Past Due		Current		Receivables
Retail									��
United States
2022														$	166	$	—	$	—	$	166	$	666,365	$	666,531
2021	$	2,611	$	185	$	253	$	3,049		$	1,738,339	$	1,741,388		6,578		1,295		434		8,307		2,303,860		2,312,167
2020		3,853		1,172		1,732		6,757			1,547,686		1,554,443		3,322		1,255		2,235		6,812		1,192,769		1,199,581
2019		3,300		1,043		3,991		8,334			857,872		866,206		2,601		717		5,324		8,642		629,879		638,521
2018		2,164		1,159		2,517		5,840			539,249		545,089		1,189		650		3,141		4,980		367,701		372,681
2017		871		537		2,476		3,884			258,104		261,988		899		264		2,637		3,800		145,543		149,343
2016		439		73		2,422		2,934			86,723		89,657
Prior to 2016		43		55		2,147		2,245			23,747		25,992
Prior to 2017															144		901		3,796		4,841		40,598		45,439
Total	$	13,281	$	4,224	$	15,538	$	33,043		$	5,051,720	$	5,084,763	$	14,899	$	5,082	$	17,567	$	37,548	$	5,346,715	$	5,384,263
Canada
2022														$	165	$	—	$	—	$	165	$	138,842	$	139,007
2021	$	409	$	6	$	—	$	415		$	518,468	$	518,883		918		304		116		1,338		681,091		682,429
2020		1,243		280		626		2,149			430,712		432,861		815		138		397		1,350		317,056		318,406
2019		553		200		1,330		2,083			209,156		211,239		461		188		562		1,211		155,461		156,672
2018		873		121		1,247		2,241			117,751		119,992		516		208		371		1,095		82,318		83,413
2017		239		24		437		700			53,567		54,267		90		7		89		186		32,160		32,346
2016		164		47		573		784			16,987		17,771
Prior to 2016		27		—		312		339			4,471		4,810
Prior to 2017															65		113		845		1,023		8,709		9,732
Total	$	3,508	$	678	$	4,525	$	8,711		$	1,351,112	$	1,359,823	$	3,030	$	958	$	2,380	$	6,368	$	1,415,637	$	1,422,005
Wholesale
United States	$	22	$	—	$	—	$	22		$	2,044,650	$	2,044,672	$	—	$	—	$	1	$	1	$	1,866,449	$	1,866,450
Canada		—		—		—		—			526,234		526,234	$	—	$	3	$	—	$	3	$	569,509	$	569,512
Total
Retail	$	16,789	$	4,902	$	20,063	$	41,754		$	6,402,832	$	6,444,586	$	17,929	$	6,040	$	19,947	$	43,916	$	6,762,352	$	6,806,268
Wholesale		22		—		—		22			2,570,884		2,570,906	$	—	$	3	$	1	$	4	$	2,435,958	$	2,435,962

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CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands)

(Unaudited)

The aging of receivables as of December 31, ~~2020~~2021 is as follows:


					Greater												Greater
	31 – 60 Days		61 – 90 Days		Than		Total				Total		31 – 60 Days		61 – 90 Days		Than		Total				Total
	Past Due		Past Due		90 Days		Past Due		Current		Receivables		Past Due		Past Due		90 Days		Past Due		Current		Receivables
Retail
United States
2021													$	3,244	$	364	$	719	$	4,327	$	2,491,994	$	2,496,321
2020	$	3,334	$	569	$	3,317	$	7,220	$	2,076,477	$	2,083,697		4,957		606		2,749		8,312		1,355,498		1,363,810
2019		7,912		1,201		4,243		13,356		1,264,842		1,278,198		3,977		808		3,937		8,722		739,005		747,727
2018		5,742		1,261		5,385		12,388		849,397		861,785		2,437		602		2,968		6,007		442,892		448,899
2017		3,841		461		2,655		6,957		454,256		461,213		1,351		638		2,486		4,475		191,998		196,473
2016		1,699		220		2,894		4,813		223,024		227,837		723		85		1,839		2,647		48,535		51,182
2015		781		173		2,091		3,045		53,981		57,026
Prior to 2015		256		47		2,874		3,177		15,459		18,636
Prior to 2016														221		71		1,361		1,653		13,009		14,662
Total	$	23,565	$	3,932	$	23,459	$	50,956	$	4,937,436	$	4,988,392	$	16,910	$	3,174	$	16,059	$	36,143	$	5,282,931	$	5,319,074
Canada
2021													$	1,777	$	—	$	—	$	1,777	$	713,889	$	715,666
2020	$	1,613	$	30	$	707	$	2,350	$	588,691	$	591,041		1,183		198		564		1,945		356,076		358,021
2019		1,772		249		3,292		5,313		327,716		333,029		531		126		817		1,474		175,824		177,298
2018		1,254		218		1,508		2,980		197,895		200,875		422		186		620		1,228		96,205		97,433
2017		535		474		970		1,979		96,215		98,194		136		4		232		372		40,938		41,310
2016		265		127		1,209		1,601		43,480		45,081		114		—		604		718		10,001		10,719
2015		91		6		560		657		11,512		12,169
Prior to 2015		126		11		48		185		1,482		1,667
Prior to 2016														1		—		290		291		2,435		2,726
Total	$	5,656	$	1,115	$	8,294	$	15,065	$	1,266,991	$	1,282,056	$	4,164	$	514	$	3,127	$	7,805	$	1,395,368	$	1,403,173
Wholesale
United States	$	18	$	—	$	458	$	476	$	2,206,690	$	2,207,166	$	3	$	—	$	9	$	12	$	1,802,052	$	1,802,064
Canada		6		—		—		6		555,327		555,333	$	—	$	—	$	—	$	—	$	542,941	$	542,941
Total
Retail	$	29,221	$	5,047	$	31,753	$	66,021	$	6,204,427	$	6,270,448	$	21,074	$	3,688	$	19,186	$	43,948	$	6,678,299	$	6,722,247
Wholesale		24		—		458		482		2,762,017		2,762,499	$	3	$	—	$	9	$	12	$	2,344,993	$	2,345,005

Included in the receivables balance at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 is accrued interest of ~~$44,986~~$40,736 and ~~$52,595,~~$41,953, respectively. The Company does not include accrued interest in its allowance for credit losses. Recognition of income is generally suspended when management determines that collection of future finance income is not probable or when an account becomes 90 days past due, whichever occurs first. Accrued interest is charged off to interest income. Interest income charged off was not material for the three ~~and nine~~ months ended ~~September 30, 2021~~March 31, 2022 and ~~2020.~~2021. Interest accrual is resumed if the receivable becomes contractually current and collection becomes probable. Previously suspended income is recognized at that time.

The receivables on nonaccrual status as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 are as follows:


	September 30, 2021						December 31, 2020						March 31, 2022						December 31, 2021
	Retail		Wholesale		Total		Retail		Wholesale		Total		Retail		Wholesale		Total		Retail		Wholesale		Total
United States	$	27,798	$	—	$	27,798	$	28,882	$	35,402	$	64,284	$	28,799	$	8,440	$	37,239	$	24,028	$	—	$	24,028
Canada		4,525		—		4,525		8,597		—		8,597	$	2,380	$	—	$	2,380	$	3,127	$	—	$	3,127

As of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, the Company’s receivables on non-accrual status without an allowance were immaterial. Interest income recognized for receivables on non-accrual status for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ was immaterial.

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CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands)

(Unaudited)

Troubled Debt Restructurings

A restructuring of a receivable constitutes a ~~troubled debt restructuring (“TDR”)~~TDR when the lender grants a concession it would not otherwise consider to a borrower that is experiencing financial difficulties. As a collateral-based lender, the Company typically will repossess collateral in lieu of restructuring receivables. As such, for retail receivables, concessions are typically provided based on bankruptcy court proceedings. For wholesale receivables, concessions granted may include extended contract maturities, inclusion of interest-only periods, modification of a contractual interest rate to a below market interest rate and waiving of interest and principal.

TDRs are reviewed along with other receivables as part of management’s ongoing evaluation of the adequacy of the allowance for credit losses. The allowance for credit losses attributable to TDRs is based on the most probable source of repayment, which is normally the liquidation of the collateral. In determining collateral value, the Company estimates the current fair market value of the equipment collateral and considers credit enhancements such as additional collateral and third-party guarantees.

Before removing a receivable from TDR classification, a review of the borrower is conducted. If concerns exist about the future ability of the borrower to meet its obligations based on a credit review, the TDR classification is not removed from the receivable.

As of ~~September 30, 2021,~~March 31, 2022, the Company had ~~187~~149 retail and finance lease contracts classified as TDRs where a court has determined the concession. The pre-modification value of these contracts was ~~$5,244~~$3,500 and the post-modification value was ~~$4,707.~~$3,145. Additionally, the Company had ~~337~~335 accounts with a balance of ~~$23,523~~$21,538 undergoing bankruptcy proceedings where a concession has not yet been determined. As of ~~September 30, 2020,~~March 31, 2021, the Company had ~~254~~218 retail and finance lease contracts classified as TDRs where a court has determined the concession. The pre-modification value of these contracts was ~~$7,876~~$6,157 and the post-modification value was ~~$7,065.~~$5,542. Additionally, the Company had ~~394~~356 accounts with a balance of ~~$26,338~~$23,674 undergoing bankruptcy proceedings where a concession has not yet been determined. As the outcome of the bankruptcy cases is determined by a court based on available assets, subsequent re-defaults are unusual and were not material for retail and finance lease contracts that were modified in a TDR during the previous 12 months ended ~~September 30, 2021~~March 31, 2022 and ~~2020.~~2021.

As of ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ the Company’s wholesale TDRs were immaterial.

NOTE 5: EQUIPMENT ON OPERATING LEASES

Lease payments owed to the Company for equipment under non-cancelable operating leases (excluding deferred operating lease subsidy of ~~$94,583)~~$90,056) as of ~~September 30, 2021~~March 31, 2022 are as follows:


2021	$	61,605
2022		189,279	$	163,582
2023		112,317		150,962
2024		48,089		85,313
2025 and thereafter		21,506
2025				34,224
2026 and thereafter				11,048
Total lease payments	$	432,796	$	445,129

NOTE 6: CREDIT FACILITIES AND DEBT

On ~~July 27, 2021,~~March 31, 2022, the Company, through a bankruptcy-remote trust, issued ~~$843,840~~$1,014,850 of amortizing asset-backed notes secured by U.S. retail receivables.

~~On September 24, 2021, the Company extended the maturity date of the U.S. retail committed asset-backed facility to September 2023 and lowered the total facility from $1,200,000 to $1,000,000.~~

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CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands)

(Unaudited)

On September 28, 2021, CNH Industrial Capital Canada Ltd. completed an offering of C$300,000 ($236,499) in aggregate principal amount of its 1.500% unsecured notes due 2024, issued at 99.936% in a private placement.

Committed unsecured facilities with banks as of ~~September 30, 2021~~March 31, 2022 totaled ~~$588,404.~~$623,682. These credit facilities, which are eligible for renewal at various future dates, are used primarily for working capital and other general corporate purposes. As of ~~September 30, 2021,~~March 31, 2022, the Company had ~~$125,603~~$127,818 outstanding under these credit facilities. The remaining available credit commitments are maintained primarily to provide backup liquidity for commercial paper borrowings, as needed. There was 0 outstanding commercial paper as of ~~September 30, 2021.~~March 31, 2022.

NOTE 7: INCOME TAXES

The effective tax rates for the three months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ were ~~23.8%~~23.4% and 23.6%, respectively. ~~The effective tax rate was 23.9% for the nine months ended September 30, 2021, compared to 23.1% for the same period in 2020.~~

NOTE 8: FINANCIAL INSTRUMENTS

The Company may elect to measure financial instruments and certain other items at fair value. This fair value option would be applied on an instrument-by-instrument basis with changes in fair value reported in earnings. The election can be made at the acquisition of an eligible financial asset, financial liability, or firm commitment or when certain specified reconsideration events occur. The fair value election may not be revoked once made. The Company has not elected the fair value measurement option for eligible items.

Fair-Value Hierarchy

The hierarchy of valuation techniques for financial instruments is based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair-value hierarchy:

Level 1 —

Quoted prices for identical instruments in active markets.

Level 2 —

Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

Level 3 —

Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

This hierarchy requires the use of observable market data when available.

Determination of Fair Value

When available, the Company uses quoted market prices to determine fair value and classifies such items in Level 1. In some cases where a market price is not available, the Company will use observable market-based inputs to calculate fair value, in which case the items are classified in Level 2.

If quoted or observable market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters such as interest rates, currency rates, or yield curves. Items valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable.

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~~CNH INDUSTRIAL CAPITAL LLC AND SUBSIDIARIES~~

~~CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(Dollars in thousands)~~

~~(Unaudited)~~

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.

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CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands)

(Unaudited)

Derivatives

The Company utilizes derivative instruments to mitigate its exposure to interest rate and foreign currency exposures. Derivatives used as hedges are effective at reducing the risk associated with the exposure being hedged and are designated as a hedge at the inception of the derivative contract. The Company 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.

Interest Rate Derivatives

The Company has entered into interest rate derivatives 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 the Company recognizes interest expense on the related debt. As of ~~September 30, 2021,~~March 31, 2022, the maximum length of time over which the Company is hedging its interest rate exposure through the use of derivative instruments designated in cash flow hedge relationships is 3951 months. As of ~~September 30, 2021,~~March 31, 2022, the after-tax losses deferred in accumulated other comprehensive income (loss) that will be recognized in interest expense over the next 12 months are approximately ~~$880.~~$505.

The Company also enters into offsetting interest rate derivatives with substantially similar economic terms that are not designated as hedging instruments to mitigate interest rate risk related to the Company’s committed asset-backed facilities. Unrealized and realized gains and losses resulting from fair value changes in these instruments are recognized directly in income and were insignificant for the three ~~and nine~~ months ended ~~September 30, 2021~~March 31, 2022 and ~~2020.~~2021.

All of the Company’s interest rate derivatives as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 are considered Level 2. The fair market value of these derivatives is calculated using market data input and can be compared to actively traded derivatives. The total notional amount of the Company’s interest rate derivatives was ~~$3,995,925~~$4,015,135 and ~~$4,369,574~~$3,561,606 at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively. The ~~ten-month~~four-month average notional amounts for the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021 were $3,823,950 and ~~2020 were $4,167,183 and $3,205,481,~~$4,345,668, respectively.

Foreign Exchange Contracts

The Company uses forward contracts to hedge certain assets and liabilities denominated in foreign currencies. Such derivatives are considered economic hedges and are not designated as hedging instruments. The changes in the fair value of these instruments are recognized directly as income in “Other ~~expenses”~~expenses, net” and are expected to offset the foreign exchange gains or losses on the exposures being managed.

All of the Company’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.

2017

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CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands)

(Unaudited)

Financial Statement Impact of the Company’s Derivatives

The fair values of the Company’s derivatives as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 in the consolidated balance sheets are recorded as follows:


	September 30,		December 31,		March 31,		December 31,
	2021		2020		2022		2021
Derivatives Designated as Hedging Instruments
Other assets:
Interest rate derivatives	$	39,321	$	58,008	$	15,438	$	32,632
Accounts payable and other accrued liabilities:
Interest rate derivatives	$	3,891	$	4,882	$	26,696	$	6,750
Derivatives Not Designated as Hedging Instruments
Other assets:
Interest rate derivatives	$	5,079	$	1,053	$	50,276	$	8,391
Foreign exchange contracts		1,994		2		872		1,938
Total	$	7,073	$	1,055	$	51,148	$	10,329
Accounts payable and other accrued liabilities:
Interest rate derivatives	$	5,079	$	1,053	$	48,209	$	8,391
Foreign exchange contracts		3,768		3,815		5,822		4,041
Total	$	8,847	$	4,868	$	54,031	$	12,432

Pre-tax gains (losses) on the consolidated statements of income and comprehensive income related to the Company’s derivatives for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ are recorded in the following accounts:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020		2022		2021
Cash Flow Hedges
Recognized in accumulated other comprehensive income (loss):
Interest rate derivatives	$	833	$	383	$	4,665	$	(11,193)	$	5,299	$	2,887
Reclassified from accumulated other comprehensive income (loss):
Interest rate derivatives—Interest expense to third parties		(197)		(110)		(546)		(59)		(3,324)		(192)
Not Designated as Hedges
Foreign exchange contracts—Other expenses	$	(4,150)	$	1,290	$	(2,038)	$	(1,910)
Foreign exchange contracts—Other expenses, net									$	2,847	$	867

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(Dollars in thousands)

(Unaudited)

Items Measured at Fair Value on a Recurring Basis

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, all of which are measured as Level 2:


	September 30,		December 31,		March 31,		December 31,
	2021		2020		2022		2021
Assets
Interest rate derivatives	$	44,400	$	59,061	$	65,714	$	41,023
Foreign exchange contracts		1,994		2		872		1,938
Total assets	$	46,394	$	59,063	$	66,586	$	42,961
Liabilities
Interest rate derivatives	$	8,970	$	5,935	$	74,905	$	15,141
Foreign exchange contracts		3,768		3,815		5,822		4,041
Total liabilities	$	12,738	$	9,750	$	80,727	$	19,182

There were 0 transfers between Level 1, Level 2 and Level 3 hierarchy levels during the periods presented.

Fair Value of Other Financial Instruments

The carrying amount of cash and cash equivalents, restricted cash and cash equivalents, floating-rate affiliated accounts and notes receivable, floating-rate short-term debt, interest payable and short-term affiliated debt was assumed to approximate its fair value. Under the fair value hierarchy, cash and cash equivalents and restricted cash and cash equivalents are classified as Level 1 and the remainder of the financial instruments listed is classified as Level 2.

Financial Instruments Not Carried at Fair Value

The carrying amount and estimated fair value of assets and liabilities considered financial instruments as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 are as follows:


	September 30, 2021				December 31, 2020				March 31, 2022				December 31, 2021
	Carrying		Estimated		Carrying		Estimated		Carrying		Estimated		Carrying		Estimated
	Amount		Fair Value *		Amount		Fair Value *		Amount		Fair Value *		Amount		Fair Value *
Receivables	$	8,895,667	$	9,018,755	$	8,896,811	$	8,987,830	$	9,123,856	$	9,161,633	$	8,951,299	$	9,044,561
Long-term debt	$	5,903,592	$	5,914,616	$	5,869,860	$	5,992,745	$	5,978,248	$	5,720,603	$	6,141,970	$	6,059,202

______________

Under the fair value hierarchy, receivables measurements are classified as Level 3 and long-term debt measurements are classified as Level 2.

Receivables

The fair value of receivables was determined by discounting the estimated future payments using a discount rate which includes an estimate for credit risk.

Long-term debt

The fair values of long-term debt were based on current market quotes for identical or similar borrowings and credit risk.

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(Dollars in thousands)

(Unaudited)

NOTE 9: GEOGRAPHICAL INFORMATION

A summary of the Company’s geographical information is as follows:


	Three Months Ended				Nine Months Ended				Three Months Ended
	September 30,				September 30,				March 31,
	2021		2020		2021		2020		2022		2021
Revenues
United States	$	165,669	$	169,661	$	484,528	$	516,624	$	149,836	$	164,142
Canada		41,915		41,054		126,382		126,388		39,062		40,741
Eliminations		(1,493)		(1,041)		(3,909)		(3,817)		(1,489)		(1,233)
Total	$	206,091	$	209,674	$	607,001	$	639,195	$	187,409	$	203,650
Interest expense
United States	$	39,064	$	57,837	$	127,264	$	180,498	$	31,717	$	47,922
Canada		9,782		12,044		30,113		38,821		9,192		10,301
Eliminations		(1,493)		(1,041)		(3,909)		(3,817)		(1,489)		(1,233)
Total	$	47,353	$	68,840	$	153,468	$	215,502	$	39,420	$	56,990
Net income
United States	$	50,377	$	29,397	$	136,919	$	82,954	$	50,687	$	44,604
Canada		12,045		8,758		37,996		26,269		12,800		11,376
Total	$	62,422	$	38,155	$	174,915	$	109,223	$	63,487	$	55,980
Depreciation and amortization
United States	$	47,292	$	48,738	$	144,373	$	145,140	$	41,557	$	49,051
Canada		12,760		11,354		38,306		32,884		12,548		12,491
Total	$	60,052	$	60,092	$	182,679	$	178,024	$	54,105	$	61,542
Expenditures for equipment on operating leases
United States	$	81,918	$	75,148	$	250,488	$	297,566	$	89,707	$	99,219
Canada		25,883		26,846		84,051		77,892		32,511		24,956
Total	$	107,801	$	101,994	$	334,539	$	375,458	$	122,218	$	124,175
Provision (benefit) for credit losses
United States	$	83	$	9,848	$	(9,274)	$	37,441	$	4,395	$	(2,505)
Canada		539		2,727		357		10,271		(1,570)		967
Total	$	622	$	12,575	$	(8,917)	$	47,712	$	2,825	$	(1,538)

2320

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CNH INDUSTRIAL CAPITAL LLC AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands)

(Unaudited)

September 30,

December 31,

2021

2020
Total assets

United States

$
10,090,240

$
10,186,808
Canada

2,519,069

2,442,180
Eliminations

(220,118)

(177,819)
Total

$
12,389,191

$
12,451,169
Managed receivables

United States

$
7,129,435

$
7,195,558
Canada

1,886,057

1,837,389
Total

$
9,015,492

$
9,032,947


	As of		As of
	March 31,		December 31,
	2022		2021
Total assets
United States	$	9,725,915	$	9,870,766
Canada		2,590,997		2,538,581
Eliminations		(226,734)		(221,579)
Total	$	12,090,178	$	12,187,768
Managed receivables
United States	$	7,250,713	$	7,121,138
Canada		1,991,517		1,946,114
Total	$	9,242,230	$	9,067,252

NOTE 10: RELATED-PARTY TRANSACTIONS

The Company receives compensation from CNH Industrial North America for retail, wholesale and operating lease sales programs offered by CNH Industrial North America on which finance charges are waived or below market rate financing programs are offered. The Company receives compensation from CNH Industrial North America based on the Company’s estimated costs and a targeted return on equity. The Company is also compensated for lending funds to CNH Industrial North America.

The summary of sources included in “Interest and other income from affiliates” in the accompanying consolidated statements of income for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ is as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020		2022		2021
Subsidy from CNH Industrial North America
Retail	$	34,793	$	36,807	$	108,634	$	117,190	$	32,443	$	37,138
Wholesale		22,566		23,387		71,945		79,501		17,043		25,499
Operating lease		13,620		14,780		45,096		45,550		12,579		16,888
Income from affiliated receivables
CNH Industrial North America		291		229		590		392		186		197
Other affiliates		52		30		134		112		56		43
Total interest and other income from affiliates	$	71,322	$	75,233	$	226,399	$	242,745	$	62,307	$	79,765

Interest expense to affiliates was ~~$1,260~~$333 and ~~$718,~~$810, respectively, for the three months ended ~~September 30, 2021~~March 31, 2022 and ~~2020 and $3,825 and $2,764, respectively, for the nine months ended September 30, 2021 and 2020.~~2021. Fees charged by affiliates were ~~$11,394~~$11,416 and ~~$10,399, respectively,~~$11,539 for the three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020, and $34,118 and $33,542,~~ respectively, ~~for the nine months ended September 30, 2021 and 2020,~~ and represents payroll and other human resource services CNH Industrial America performs on behalf of the Company.

2421

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CNH INDUSTRIAL CAPITAL LLC AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands)

(Unaudited)

As of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, the Company had various accounts and notes receivable and debt with the following affiliates:


	September 30,		December 31,		March 31,		December 31,
	2021		2020		2022		2021
Affiliated receivables
CNH Industrial America	$	549,614	$	391,445	$	222,626	$	243,499
CNH Industrial Canada Ltd.		75,071		10,906		275		3,289
Other affiliates		12,673		12,459		12,441		12,911
Total affiliated receivables	$	637,358	$	414,810	$	235,342	$	259,699
Affiliated debt
CNH Industrial Canada Ltd.		—		187,310	$	31,771	$	—
Other affiliates		4,000		—		2,125		2,100
Total affiliated debt	$	4,000	$	187,310	$	33,896	$	2,100

Accounts payable and other accrued liabilities, including tax payables, of ~~$171,127~~$194,774 and ~~$31,795~~$164,500 were payable to related parties as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively.

NOTE 11: COMMITMENTS AND CONTINGENCIES

Legal Matters

The Company is party to various litigation matters and claims arising from its operations. Management believes that the outcome of these proceedings, individually and in the aggregate, will not have a material adverse effect on the Company’s financial position or results of operations.

Guarantees

The Company provides payment guarantees on the financial debt of various foreign financial services subsidiaries of CNHI for approximately $55,000. The guarantees are in effect for the term of the underlying funding facilities.

Commitments

The Company has various agreements, on an uncommitted basis, to extend credit for the wholesale and dealer financing managed portfolio. At ~~September 30, 2021,~~March 31, 2022, the total credit limit available was ~~$6,065,506,~~$6,062,167, of which ~~$2,484,752~~$2,301,605 was utilized.

NOTE 12: SUBSEQUENT EVENTS

On ~~October 15, 2021,~~April 5, 2022, the Company repaid ~~$400,000~~$500,000 of its ~~3.875%~~4.375% unsecured notes due ~~2021.~~

~~On October 27, 2021, the Company, through a bankruptcy-remote trust, issued $940,430 of amortizing asset-backed notes secured by U.S. retail receivables.~~

2022.ds

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Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

Organization

CNH Industrial Capital LLC and its primary operating subsidiaries, including New Holland Credit Company, LLC (“New Holland Credit”), CNH Industrial Capital America LLC (“CNH Industrial Capital America”) and CNH Industrial Capital Canada Ltd. (“CNH Industrial Capital Canada”) (collectively, “CNH Industrial Capital” the “Company” or “we”) are each an indirect wholly owned subsidiary of CNH Industrial N.V. (“CNHI” and together with its consolidated subsidiaries, “CNH Industrial”) and is headquartered in Racine, Wisconsin. As a captive finance company, our primary business is to underwrite and manage financing products for end use customers and dealers of CNH Industrial America LLC (“CNH Industrial America”) and CNH Industrial Canada Ltd. (collectively, “CNH Industrial North America”) and provide other related financial products and services to support the sale of agricultural and construction equipment sold by CNH Industrial North America.

We offer a range of financial products and services to the dealers and customers of CNH Industrial North America. The principal products offered are retail financing for the purchase or lease of new and used CNH Industrial North America equipment and wholesale financing to CNH Industrial North America dealers. Wholesale financing consists primarily of floor plan financing as well as financing equipment used in dealer-owned rental yards, parts inventory and working capital needs. In addition, we purchase equipment from dealers that is leased to retail customers under operating lease agreements.

Trends and Economic Conditions

The ~~extent~~effects of the ~~continuing impact~~COVID-19 pandemic and the related actions of governments and other authorities to contain COVID-19 onhave affected and continue to affect our operational and financial ~~performance will depend on certain developments, including~~performance. Governments in the ~~resurgence~~U.S. and Canada designated part of ~~COVID-19, its impact on~~CNH Industrial North America’s businesses as essential critical infrastructure businesses. This designation allows us to operate in support of our dealers and customers ~~and suppliers and~~to the ~~efficacy of governmental and community vaccination efforts, which are uncertain.~~extent possible. We ~~will~~also continue to ~~proactively respond to~~prioritize the ~~situation~~health, safety and ~~may take further actions that alter our business operations as may be required by governmental authorities, or that we determine are in the best interests~~well-being of our ~~employees and customers.~~employees.

CNH Industrial remains cautious about future impacts on its ~~end-markets~~end markets and business operations of restrictions on social interactions and business operations to limit the resurgence of the pandemic. CNH Industrial ~~is closely monitoring~~continues to monitor the impact of the COVID-19 pandemic on all aspects of its business, its employees and its results of operations, financial condition and cash flows in ~~2021.~~

~~CNH Industrial has confirmed its intention to enhance its customer focus through the separation of its “On-Highway” (commercial and specialty vehicles, powertrain and the~~2022. For additional risks related financial services business), now named “Iveco Group”, and “Off-Highway” (agriculture, construction and the related financial services business) businesses in early 2022. The separation is expected to be effected through the spin-off of CNH Industrial N.V.’s assets (mainly equity interests) and liabilities relating to Iveco Group to a company, (Iveco Group N.V.), whose shares will be allotted to CNH Industrial N.V. shareholders on a pro rata basis. Iveco Group N.V.'s common shares will be admitted by Borsa Italiana to the ~~listing and trading~~COVID-19 pandemic, see “Item 1A. Risk Factors – COVID-19 Risk” in our 2021 annual report on Euronext Milan by the effective date of the spin-off. Execution of the transaction is subject to various regulatory approvals, admission to listing on Euronext Milan, and the approval at an extraordinary general meeting of shareholders.Form 10-K.

On October 13, 2021, CNH Industrial announced the temporary closure of several of its European agricultural, commercial vehicle and powertrain manufacturing facilities in response to ongoing disruptions to the procurement environment and shortages of core components, especially semiconductors. The globalGlobal supply chain ~~still shows increasing input costs~~continues to represent the main challenge for CNH Industrial’s operations in 2022, with multiple bottlenecks resulting in increased raw material prices, intermittent sub-component availability, notably for semiconductors, and logistics pressures, with ongoing disruptions to the procurement environment forcing repeated reviews of production schedules. Critical conditions affecting the supply chain are expected to remain through the last quarter of the year and CNH Industrial has made no assurances that further temporary closures of its agricultural, commercial vehicle and powertrain manufacturing facilities will not be necessary.increased transportation costs.

Our business is closely related to the agricultural and construction equipment industries because we offer financing products for such equipment. For the three months ended ~~September 30, 2021,~~March 31, 2022, CNH Industrial’s net sales of agricultural equipment and net sales of construction equipment generated in North America were ~~$1,290~~$1,176 million and ~~$342~~$394 million, respectively, representing increases of ~~37.7%~~11.2% and ~~27.1%~~40.7% from the same period in ~~2020, respectively. For the nine months ended September 30,~~ 2021, CNH Industrial’s net sales of agricultural equipment and net sales of construction equipment generated in North America were $3,634 million and $994 million, respectively, representing increases of 36.5% and 65.7% from the same period in 2020, respectively.

In general, our receivable mix between agricultural and construction equipment financing directionally reflects the mix of equipment sales by CNH Industrial North America. As such, changes in the agricultural industry or with respect to our agricultural equipment borrowers may affect the majority of our portfolio.

2623

Table of Contents

Net income was ~~$62.4 million and $174.9~~$63.5 million for the three ~~and nine~~ months ended ~~September 30, 2021,~~March 31, 2022, compared to ~~$38.2 million and $109.2~~$56.0 million for the three ~~and nine~~ months ended ~~September 30, 2020.~~March 31, 2021. The increase in net income was primarily due to an increased net interest margin and higher recoveries on used equipment sales, partially offset by a ~~lower~~higher provision for credit losses. The receivables balance greater than 30 days past due as a percentage of managed receivables was 0.5%~~, 0.7%~~ at March 31, 2022 and ~~1.0% at September 30, 2021,~~ December 31, ~~2020~~2021 and ~~September 30, 2020, respectively.~~0.7% at March 31, 2021.

In addition to the impacts from COVID-19 previously discussed, macroeconomic issues for us include the uncertainty of governmental actions with respect to monetary, fiscal and legislative policies, the global economic recovery, changes in demand and pricing for used equipment, capital market disruptions, trade agreements, and financial regulatory reform. Significant volatility in the price of certain commodities could also impact CNH Industrial North America’s and our results.

Results of Operations

Three ~~and Nine~~ Months Ended ~~September 30, 2021~~March 31, 2022 Compared to Three ~~and Nine~~ Months Ended ~~September 30, 2020~~March 31, 2021

Revenues

Revenues for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ were as follows (dollars in thousands):

Three Months Ended




September 30,

2021

2020

$ Change

% Change

Interest income on retail notes and finance leases

$
43,531

$
46,995

$
(3,464)

(7.4)
%
Interest income on wholesale notes

7,577

12,673

(5,096)

(40.2)

Interest and other income from affiliates

71,322

75,233

(3,911)

(5.2)

Rental income on operating leases

66,870

64,406

2,464

3.8

Other income

16,791

10,367

6,424

62.0

Total revenues

$
206,091

$
209,674

$
(3,583)

(1.7)
%


	Nine Months Ended
	September 30,
	2021		2020		$ Change		% Change		2022		2021		$ Change		% Change
Interest income on retail notes and finance leases	$	123,582	$	143,015	$	(19,433)	(13.6)	%	$	46,701	$	41,152	$	5,549	13.5	%
Interest income on wholesale notes		24,906		41,814		(16,908)	(40.4)			5,491		8,929		(3,438)	(38.5)
Interest and other income from affiliates		226,399		242,745		(16,346)	(6.7)			62,307		79,765		(17,458)	(21.9)
Rental income on operating leases		202,894		188,600		14,294	7.6			63,821		67,975		(4,154)	(6.1)
Other income		29,220		23,021		6,199	26.9			9,089		5,829		3,260	55.9
Total revenues	$	607,001	$	639,195	$	(32,194)	(5.0)	%	$	187,409	$	203,650	$	(16,241)	(8.0)	%

Revenues totaled ~~$206.1 million and $607.0~~$187.4 million for the three ~~and nine~~ months ended ~~September 30, 2021, respectively,~~March 31, 2022 compared to ~~$209.7 million and $639.2~~$203.7 million for the ~~same periods in 2020.~~three months ended March 31, 2021. The ~~quarter-over-quarter and year-over-year decreases were~~decrease was primarily driven by a ~~lower average managed portfolio and a slightly~~ lower average yield. The average yield for the managed portfolio was ~~7.0%~~6.6% and ~~7.2%~~7.3% for the three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020, respectively, and 7.1% and 7.3% for the nine months ended September 30, 2021 and 2020,~~ respectively.

Interest income on retail notes and finance leases for the three ~~and nine~~ months ended ~~September 30, 2021~~March 31, 2022 was ~~$43.5~~$46.7 million, ~~and $123.6 million, respectively,~~ representing ~~a decrease~~an increase of ~~$3.4 million and $19.4~~$5.5 million from the ~~same periods in 2020, respectively. For the third quarter, the decrease~~three months ended March 31, 2021. The increase was ~~primarily~~ due to ~~a $5.1~~the favorable impacts of $3.8 million ~~unfavorable impact from lower interest rates, partially offset by a $1.7 million favorable impact~~ from higher average earning ~~assets. For the nine months ended September 30, 2021, compared to the same period in 2020, the decrease was primarily due to a $23.3~~assets and $1.7 million ~~unfavorable impact from lower interest rates, partially offset by a $3.9 million favorable impact~~ from higher ~~average earning assets.~~interest rates.

~~Table of Contents~~

Interest income on wholesale notes for the three ~~and nine~~ months ended ~~September 30, 2021~~March 31, 2022 was ~~$7.6~~$5.5 million, ~~and $24.9 million, respectively,~~ representing a decrease of ~~$5.1 million and $16.9~~$3.4 million from the ~~same periods in 2020, respectively. For the third quarter, the~~three months ended March 31, 2021. The decrease was due to the unfavorable impacts of ~~$4.2~~$2.5 million from lower average earning assets and $0.9 million from lower interest rates. For the nine months ended September 30, 2021, compared to the same period in 2020, the decrease was due to the unfavorable impacts of $13.0 million from lower average earning assets and $3.9 million from lower interest rates.

Interest and other income from affiliates for the three ~~and nine~~ months ended ~~September 30, 2021~~March 31, 2022 was ~~$71.3~~$62.3 million ~~and $226.4 million, respectively,~~ compared to ~~$75.2~~$79.8 million ~~and $242.7 million, respectively,~~ for the three ~~and nine~~ months ended ~~September 30, 2020. For the three and nine months ended September 30, 2021, compensation~~March 31, 2021. Compensation from CNH Industrial North America for retail low-rate financing programs and interest waiver programs offered to customers was ~~$34.8~~$32.4 million and ~~$108.6~~$37.1 million ~~respectively, a~~for the three months ended March 31, 2022 and 2021, respectively. The decrease ~~of $2.0 million and $8.6 million from the same periods in 2020, respectively. Both the quarter-over-quarter and year-over year decreases were~~was primarily due to pricing. For the three ~~and nine~~ months ended ~~September 30, 2021,~~March 31, 2022, compensation from CNH Industrial North America for wholesale marketing programs was ~~$22.6~~$17.0 million, ~~and $71.9 million, respectively,~~ a decrease of ~~$0.8 million and $7.6~~$8.5 million from the same ~~periods~~period in ~~2020, respectively.~~2021. The ~~decreases were~~decrease was primarily due to lower ~~CNH Industrial North America volumes.~~utilization of interest-free periods. For select operating leases, compensation from CNH Industrial North America for the difference between market rental rates and the amounts paid by customers was ~~$13.6~~$12.6 million and ~~$45.1~~$16.9 million for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021, arespectively. The decrease ~~of $1.2 million and $0.5 million from the same periods in 2020, respectively.~~was primarily due to lower average earning assets.

Rental income on operating leases for the three ~~and nine~~ months ended ~~September 30, 2021~~March 31, 2022 was ~~$66.9 million and $202.9~~$63.8 million, representing ~~an increase~~a decrease of ~~$2.5 million and $14.3~~$4.2 million from the same ~~periods~~period in ~~2020, respectively.~~2021. The ~~third quarter increase~~decrease was primarily due to ~~the~~a $6.6 million unfavorable impact from lower average earning assets, partially offset by a $2.4 million favorable impact ~~of $2.5 million~~ from higher interest rates. For the nine months ended September 30, 2021, compared to the same period in 2020, the increase was due to the favorable impacts of $8.8 million from higher interest rates and $5.5 million from higher average earning assets.

Other income for the three ~~and nine~~ months ended ~~September 30, 2021~~March 31, 2022 was ~~$16.8 million and $29.2~~$9.1 million, representing an increase of ~~$6.4 million and $6.2~~$3.3 million from the ~~same periods in 2020, respectively.~~

~~Expenses~~

~~Expenses for the~~ three ~~and nine~~ months ended ~~September 30, 2021 and 2020 were as follows (dollars in thousands):~~March 31, 2021. The increase was due to higher commission income received from a private-label CRA product offered through dealers.

Three Months Ended




September 30,


2021

2020

$ Change

% Change

Total interest expense

$
47,353

$
68,840

$
(21,487)

(31.2)
%
Fees charged by affiliates

11,394

10,399

995

9.6

Provision (benefit) for credit losses

622

12,575

(11,953)

(95.1)

Depreciation of equipment on operating leases

59,577

59,722

(145)

(0.2)

Other expenses

5,209

8,208

(2,999)

(36.5)

Total expenses

$
124,155

$
159,744

$
(35,589)

(22.3)
%

Nine Months Ended




September 30,


2021

2020

$ Change

% Change

Total interest expense

$
153,468

$
215,502

$
(62,034)

(28.8)
%
Fees charged by affiliates

34,118

33,542

576

1.7

Provision (benefit) for credit losses

(8,917)

47,712

(56,629)

(118.7)

Depreciation of equipment on operating leases

181,273

176,848

4,425

2.5

Other expenses

17,084

23,609

(6,525)

(27.6)

Total expenses

$
377,026

$
497,213

$
(120,187)

(24.2)
%

2824

Table of Contents

Expenses

Expenses for the three months ended March 31, 2022 and 2021 were as follows (dollars in thousands):


	2022		2021		$ Change		% Change
Total interest expense	$	39,420	$	56,990	$	(17,570)	(30.8)	%
Fees charged by affiliates		11,416		11,539		(123)	(1.1)
Provision (benefit) for credit losses		2,825		(1,538)		4,363	(283.7)
Depreciation of equipment on operating leases		53,557		61,068		(7,511)	(12.3)
Other expenses, net		(2,723)		2,313		(5,036)	(217.7)
Total expenses	$	104,495	$	130,372	$	(25,877)	(19.8)	%

Interest expense totaled ~~$47.4 million and $153.5~~$39.4 million for the three ~~and nine~~ months ended ~~September 30, 2021, respectively,~~March 31, 2022 compared to ~~$68.8 million and $215.5~~$57.0 million for the same ~~periods~~period in ~~2020. For the three months ended September 30, 2021, the~~2021. The decrease was due to the favorable impacts of ~~$18.1~~$16.6 million from lower average interest rates and ~~$3.4 million from lower average total debt. For the nine months ended September 30, 2021, the decrease was due to the favorable impacts of $51.6 million from lower average interest rates and $10.4~~$1.0 million from lower average total debt. The average debt cost was ~~2.1%~~1.6% for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 compared to ~~2.8%~~2.3% for the ~~nine~~three months ended ~~September 30, 2020.~~March 31, 2021.

The provision (benefit) for credit losses was a ~~$0.6~~$2.8 million provision ~~and~~for the three months ended March 31, 2022 compared to a ~~$8.9~~$1.5 million benefit for the ~~three and nine months ended September 30, 2021, respectively, compared to provisions of $12.6 million and $47.7 million for the~~ same ~~periods~~period in ~~2020.~~2021. The ~~decreases~~increase in the provision for credit losses ~~in 2021~~ was due to specific reserve needs, partially offset by the improved outlook for the agricultural industry and a reduced expected impact on credit conditions from the ~~COVID-19~~COVID‑19 pandemic.

Depreciation of equipment on operating leases ~~was $59.6 million and $181.3~~decreased by $7.5 million for the three ~~and nine~~ months ended ~~September 30, 2021, respectively, compared to $59.7 million and $176.8 million for the same periods in 2020. The increase for the nine months ended September 30, 2021,~~March 31, 2022 compared to the ~~same period in 2020, was~~three months ended March 31, 2021, primarily due to a ~~higher average~~lower operating lease portfolio.

Other expenses, net were ~~$5.2~~$2.7 million and $17.1 million for the three and nine months ended September 30, 2021, respectively, compared to $8.2 million and $23.6 million for the same periods in 2020. For the three and nine months ended September 30, 2021, compared to the same periods in 2020, the decrease was due to improved pricing on used equipment sales.

~~The effective tax rates~~of income for the three months ended ~~September 30, 2021 and 2020 were 23.8% and 23.6%, respectively.~~ March 31, 2022 compared to $2.3 million of expense for the three months ended March 31, 2021. The decrease was due to higher gains on equipment held for sale.

The effective tax rate ~~was 23.9%~~ for the ~~nine~~three months ended ~~September 30, 2021,~~March 31, 2022 was 23.4%, compared to ~~23.1%~~23.6% for the ~~same period in 2020.~~three months ended March 31, 2021.

Receivables and Equipment on Operating Leases Originated and Held

Receivables and equipment on operating lease originations for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ were as follows (dollars in thousands):

Three Months Ended

September 30,

2021

2020

$ Change

% Change

Retail

$
849,568

$
790,435

$
59,133

7.5
%
Wholesale

2,177,139

1,744,468

432,671

24.8

Equipment on operating leases

107,801

101,994

5,807

5.7

Total originations

$
3,134,508

$
2,636,897

$
497,611

18.9
%


	Nine Months Ended
	September 30,
	2021		2020		$ Change		% Change		2022		2021		$ Change		% Change
Retail	$	2,507,618	$	2,178,958	$	328,660	15.1	%	$	906,377	$	754,185	$	152,192	20.2	%
Wholesale		6,225,848		5,148,945		1,076,903	20.9			1,882,760		1,780,105		102,655	5.8
Equipment on operating leases		334,539		375,458		(40,919)	(10.9)			122,218		124,175		(1,957)	(1.6)
Total originations	$	9,068,005	$	7,703,361	$	1,364,644	17.7	%	$	2,911,355	$	2,658,465	$	252,890	9.5	%

The quarter-over-quarter ~~and year-over-year~~ increase in retail and wholesale originations was primarily due to an increase in unit sales of CNH Industrial North America equipment. ~~The year-over-year decrease~~

Total receivables and equipment on operating leases held as of March 31, 2022, December 31, 2021 and March 31, 2021 were as follows (dollars in ~~operating lease originations was primarily due to customer’s preference for retail financing products.~~thousands):


	March 31,		December 31,		March 31,
	2022		2021		2021
Retail	$	6,806,268	$	6,722,247	$	6,142,388
Wholesale		2,435,962		2,345,005		2,761,580
Equipment on operating leases		1,648,043		1,707,531		1,842,319
Total receivables and equipment on operating leases	$	10,890,273	$	10,774,783	$	10,746,287

2925

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~~Total receivables and equipment on operating leases held as of September 30, 2021, December 31, 2020 and September 30, 2020 were as follows (dollars in thousands):~~

September 30,

December 31,

September 30,

2021

2020

2020
Retail

$
6,444,586

$
6,270,448

$
6,204,990
Wholesale

2,570,906

2,762,499

2,995,497
Equipment on operating leases

1,740,969

1,859,184

1,769,774
Total receivables and equipment on operating leases

$
10,756,461

$
10,892,131

$
10,970,261

The total retail receivables balance greater than 30 days past due as a percentage of the retail receivables was 0.7% at ~~September 30, 2021, 1.1% at~~both March 31, 2022 and December 31, ~~2020~~2021 and ~~1.4%~~1.0% at ~~September 30, 2020.~~March 31, 2021. The total wholesale receivables balance greater than 30 days past due as a percentage of the wholesale receivables was not significant at ~~September 30, 2021,~~March 31, 2022, December 31, ~~2020~~2021 or ~~September 30, 2020.~~March 31, 2021. Total retail receivables on nonaccrual status, which represent receivables for which we have ceased accruing finance income, were ~~$32.3~~$31.2 million, ~~$37.5~~$27.2 million and ~~$44.8~~$29.1 million at ~~September 30, 2021,~~March 31, 2022, December 31, ~~2020~~2021 and ~~September 30, 2020,~~March 31, 2021, respectively. Total wholesale receivables on nonaccrual status were ~~$35.4~~$8.4 million and ~~$32.3~~$30.9 million at ~~December~~March 31, ~~2020~~2022 and ~~September 30, 2020,~~March 31, 2021, respectively.

Total receivable charge-off amounts and recoveries, by product, for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ were as follows (dollars in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020		2022		2021
Charge-offs:
Retail	$	4,736	$	3,244	$	9,056	$	18,028	$	897	$	3,232
Wholesale		—		1		179		213		—		—
Total charge-offs		4,736		3,245		9,235		18,241
Total Charge-offs										897		3,232
Recoveries:
Retail		(368)		(578)		(1,719)		(1,905)		(297)		(776)
Wholesale		(108)		(5)		(114)		(8)		(11)		(3)
Total recoveries		(476)		(583)		(1,833)		(1,913)		(308)		(779)
Charge-offs, net of recoveries:
Retail		4,368		2,666		7,337		16,123		600		2,456
Wholesale		(108)		(4)		65		205		(11)		(3)
Total charge-offs, net of recoveries	$	4,260	$	2,662	$	7,402	$	16,328
Total Charge-offs, net of recoveries									$	589	$	2,453

Our allowance for credit losses on all receivables financed totaled ~~$119.8~~$118.4 million at ~~September 30, 2021, $136.1~~March 31, 2022, $116.0 million at December 31, ~~2020~~2021 and ~~$129.9~~$132.3 million at ~~September 30, 2020.~~March 31, 2021.

The allowance is subject to a quarterly evaluation based on many quantitative and qualitative factors, including historical loss experience by product category, portfolio duration, delinquency trends, ~~forward looking~~forward-looking macroeconomic factors (in particular, those conditions directly affecting the profitability and financial strength of our customers), and collateral value. No single factor determines the adequacy of the allowance. Different assumptions or changes in ~~forward looking~~forward-looking economic assumptions would result in changes to the allowance for credit losses and the provision for credit losses. These qualitative factors are subjective and require a degree of management judgment.

We believe our allowance is sufficient to provide for expected losses in our receivable portfolio as of ~~September 30, 2021.~~March 31, 2022.

~~Table of Contents~~

Liquidity and Capital Resources

The following discussion of liquidity and capital resources principally focuses on our statements of cash flows, balance sheets and capitalization. CNH Industrial Capital’s current funding strategy is to maintain sufficient liquidity and flexible access to a wide variety of financial instruments.

In the past, securitization has been one of our most economical sources of funding and, therefore, the majority of our originated receivables are securitized, with the cash generated from such receivables utilized to repay the related debt or purchase new receivables.

In addition, we have secured and unsecured facilities, commercial paper, unsecured notes, affiliate borrowings and cash to fund our liquidity needs.

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Cash Flows

For the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ our cash flows were as follows (dollars in thousands):


	2021		2020		2022		2021
Cash flows from (used in):
Operating activities	$	223,630	$	118,478	$	214,321	$	28,050
Investing activities		(44,586)		573,228		(124,169)		116,167
Financing activities		(313,153)		(727,173)		(278,217)		(414,217)
Net cash increase (decrease)	$	(134,109)	$	(35,467)	$	(188,065)	$	(270,000)

Operating activities in the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 generated cash of ~~$224~~$214 million, resulting primarily from net income of ~~$175~~$63 million, adjusted by depreciation and amortization of ~~$183~~$54 million, ~~and $4~~a provision for credit losses of $3 million ~~in deferred tax expense, partially offset by~~and changes in working capital of ~~$129~~$103 million, ~~and a benefit for credit losses of~~partially offset by $9 ~~million.~~million in deferred tax benefit. The increase in cash provided by operating activities for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 compared to the same period in ~~2020~~2021 was primarily due to ~~$77~~$195 million related to changes in working capital, ~~a $66~~an $8 million increase in net income and a ~~$15~~$4 million increase in provision for credit losses, partially offset by a $13 million decrease in deferred tax adjustment and a $4$8 million ~~increase~~decrease in depreciation and amortization ~~partially offset by a $57 million decrease in provision for credit losses.~~expense.

Investing activities in the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 used cash of ~~$45~~$124 million, resulting primarily from net expenditures for ~~equipment on operating leases~~receivables of ~~$53 million and net expenditures for property, equipment and software of $2~~$146 million, partially offset by a ~~$10~~$22 million reduction in net expenditures for ~~receivables.~~equipment on operating leases. The increase in cash used by investing activities for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 compared to the same period in ~~2020~~2021 was primarily due to a ~~$653~~$292 million increase in net expenditures for receivables, ~~and a $1 million increase in expenditures for property, equipment and software,~~ partially offset by a ~~$36~~$52 million decrease in net expenditures for equipment on operating leases.

Financing activities in the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 used cash of ~~$313~~$278 million, resulting primarily from net cash paid on ~~affiliated~~long-term debt and short-term borrowings of ~~$183~~$221 million and $7$63 million, respectively, and ~~$160~~$25 million in dividends paid to CNH Industrial America, partially offset by net cash received on ~~long-term~~affiliated debt of ~~$37~~$31 million. The decrease in cash used in financing activities in the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 compared to the same period in ~~2020~~2021 was primarily due to a decrease in net cash paid on ~~short-term borrowings and~~ long-term debt of ~~$521~~$351 million, ~~and $107 million, respectively,~~ partially offset by an increase in net cash paid on affiliated debt and short-term borrowings of ~~$184~~$129 million and $61 million, respectively, and higher dividends of ~~$30~~$25 million paid to CNH Industrial America.

Securitization

CNH Industrial Capital and its predecessor entities have been securitizing receivables since 1992. This market is a cost-effective financing source and allows access to a wide investor base. CNH Industrial Capital had approximately ~~$4.1~~$5.0 billion of public and private asset-backed securities outstanding in both the U.S. and Canada as of ~~September 30, 2021.~~March 31, 2022. Our securitizations are treated as financing arrangements for accounting purposes.

~~Table of Contents~~

Committed Asset-Backed Facilities

CNH Industrial Capital has committed asset-backed facilities with several banks or through their commercial paper conduit programs. Committed asset-backed facilities for the U.S. and Canada totaled ~~$2.9~~$2.7 billion at ~~September 30, 2021,~~March 31, 2022, with original borrowing maturities of up to two years. The unused availability under the facilities varies during the year, depending on origination volume and the refinancing of receivables with term securitization transactions and/or other financing. At ~~September 30, 2021,~~March 31, 2022, approximately ~~$0.3~~$1.1 billion of funding was available for use under these facilities.

Unsecured Facilities and Debt

Committed unsecured facilities with banks as of ~~September 30, 2021~~March 31, 2022 totaled ~~$588~~$624 million. These credit facilities, which are eligible for renewal at various future dates, are used primarily for working capital and other general corporate purposes. As of ~~September 30, 2021,~~March 31, 2022, we had ~~$126~~$128 million outstanding under these credit facilities. The remaining available credit commitments are maintained primarily to provide backup liquidity for our commercial paper borrowings, as needed. There was no outstanding commercial paper as of ~~September 30, 2021.~~March 31, 2022.

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As of ~~September 30, 2021,~~March 31, 2022, our unsecured senior notes were as follows (dollars in thousands):


Issued by CNH Industrial Capital LLC (the “U.S. Senior Notes”):⁽¹⁾
3.875% notes, due 2021	$	400,000
Issued by CNH Industrial Capital LLC (the "U.S. Senior Notes"):⁽¹⁾
4.375% notes, due 2022		500,000	$	500,000
1.950% notes, due 2023		600,000		600,000
4.200% notes, due 2024		500,000		500,000
1.875% notes, due 2026		500,000		500,000
1.450% notes, due 2026		600,000		600,000
Hedging, discounts and unamortized issuance costs		15,881		(30,257)
		3,115,881		2,669,743
Issued by CNH Industrial Capital Canada Ltd. (the “Canadian Senior Notes”):⁽²⁾
Issued by CNH Industrial Capital Canada (the "Canadian Senior Notes"):⁽²⁾
1.500% notes, due 2024		235,505		239,659
Discounts and unamortized issuance costs		(1,400)		(1,188)
		234,105		238,471
Total	$	3,349,986	$	2,908,214

(1)

These notes, which are senior unsecured obligations of CNH Industrial Capital LLC, are guaranteed by CNH Industrial Capital America and New Holland Credit.

(2)

These notes, which are senior unsecured obligations of CNH Industrial Capital Canada, ~~Ltd.,~~ are guaranteed by CNH Industrial Capital LLC, CNH Industrial Capital America and New Holland Credit.

On September 28, 2021, CNH Industrial Capital Canada completed an offering of C$300,000 ($236,499) in aggregate principal amount of its 1.500% unsecured notes due 2024, issued at 99.936% in a private placement.

Credit Ratings

Our ability to obtain funding is affected by credit ratings of our debt, which are closely related to the outlook for and the financial condition of CNHI, and the nature and availability of our support agreement with CNHI.

To access public debt capital markets, we rely on credit rating agencies to assign short-term and long-term credit ratings to our securities as an indicator of credit quality for fixed income investors. A credit rating agency may change or withdraw our ratings based on its assessment of our current and future ability to meet interest and principal repayment obligations. Each agency’s rating should be evaluated independently of any other rating. Lower credit ratings generally result in higher borrowing costs, including costs of derivative transactions, and reduced access to debt capital markets.

~~Table of Contents~~

~~The senior long-term and short-term debt~~Our current credit ratings ~~and outlook currently assigned to our unsecured debt securities by the rating agencies engaged by us~~ are ~~the same as those for CNHI. Those ratings as of September 30, 2021 were~~ as follows:


	Senior Long-Term	Short-Term	Outlook
S&P Global Ratings	BBB	A-2	Stable
Fitch Ratings	~~BBB-~~BBB+	F3F2	Stable
Moody's Investors Service	~~Baa3~~Baa2	-	Stable

Affiliate Sources

CNH Industrial Capital borrows, as needed, from CNH Industrial. This source of funding is primarily used to finance various assets and provides additional flexibility when evaluating market conditions and potential third-party financing options. We had affiliated debt of $4$34 million and ~~$187~~$2 million as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively.

Equity Position

Our equity position also supports our ability to access various funding sources. Our stockholder’s equity at March 31, 2022 and December 31, 2021 was $1.3 billion ~~at both September 30, 2021~~ and ~~December 31, 2020.~~$1.2 billion, respectively. For the ~~nine~~three months ended ~~September 30, 2021,~~March 31, 2022, CNH Industrial Capital LLC paid cash dividends of ~~$160~~$25 million to CNH Industrial America.

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Liquidity

While we expect securitization to continue to represent a material portion of our capital structure and affiliated borrowings to remain a marginal source of funding, we will continue to diversify our funding sources and expand our investor base to support our investment grade credit ratings. These diversified funding sources include committed asset-backed facilities, unsecured notes, bank facilities and a commercial paper program.

The liquidity available for use varies due to: (a) changes in origination volumes, reflecting the financing needs of our customers, and is influenced by the timing of any refinancing of underlying receivables; and (b) the execution of our funding strategy of maintaining a sufficient level of liquidity and flexible access to a wide variety of financial instruments.

Guarantor Statements

CNH Industrial Capital America and New Holland Credit, which are 100%-owned subsidiaries of CNH Industrial Capital LLC, guarantee the U.S. Senior Notes (the “U.S. Notes Guarantees”). CNH Industrial Capital LLC, CNH Industrial Capital America and New Holland Credit (the “Guarantor Entities”) guarantee the Canadian Senior Notes (the “Canadian Notes Guarantees” and, together with the U.S. Notes Guarantees, the “Guarantees”). The Guarantees are full, unconditional, and joint and several.

The Guarantees are general unsecured obligations of the applicable Guarantor Entities and rank senior in right of payment to all future obligations of such Guarantor Entities that are, by their terms, expressly subordinated in right of payment to such Guarantees and pari passu in right of payment with all existing and future unsecured indebtedness of such Guarantor Entities that are not so subordinated.

The Guarantor Entities’ obligations under their applicable Guarantees are limited as necessary to prevent the Guarantees from constituting a fraudulent conveyance under applicable law. If the Guarantees were rendered voidable, they could be subordinated by a court to all other indebtedness (including guarantees and other contingent liabilities) of the applicable Guarantor Entities and, depending on the amount of the indebtedness, such Guarantor Entities’ liability on the Guarantees to which they are parties could be reduced to zero.

~~Table of Contents~~

The Guarantees of the Guarantor Entities will be automatically released:

(1)

in connection with any sale or other disposition of all of the capital stock of the applicable Guarantor Entities to a person other than, for purposes of the U.S. Notes Guarantees, CNH Industrial Capital LLC or any subsidiary of CNH Industrial Capital LLC, or, for purposes of the Canadian Notes Guarantees, CNH Industrial N.V. or any subsidiary of CNH Industrial N.V.;

(2)

in connection with the sale or other disposition of all or substantially all of the assets or properties of the applicable Guarantor Entities, including by way of merger, consolidation or otherwise, to a person other than, for purposes of the U.S. Notes Guarantees, CNH Industrial Capital LLC or any subsidiary of CNH Industrial Capital LLC or, for purposes of the Canadian Notes Guarantees, CNH Industrial N.V. or any subsidiary of CNH Industrial N.V.; or

(3)

certain other circumstances.

The following tables present summarized financial information for the obligor groups of the U.S. Senior Notes and the Canadian Senior Notes. The obligor group consists of the issuer and guarantors for the applicable senior notes. Intercompany balances and transactions between the issuer and guarantors have been eliminated. The investments in, and equity in income from, non-guarantor subsidiaries has been excluded.

For the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ the summarized statement of income information for the obligor group of the U.S. Senior Notes was as follows (dollars in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020		2022		2021
Revenues	$	122,823	$	118,300	$	355,097	$	352,395	$	108,883	$	119,181
Interest expense		40,358		55,201		120,458		172,492		18,314		40,318
Administrative and operating expenses		57,113		70,324		185,739		206,075		80,021		66,971
Income tax provision (benefit)		6,180		(1,690)		11,910		(6,156)
Net income (loss)	$	19,172	$	(5,535)	$	36,990	$	(20,016)
Income tax provision										2,568		2,899
Net income									$	7,980	$	8,993

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As of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, the summarized balance sheet information for the obligor group of the U.S. Senior Notes was as follows (dollars in thousands):


	September 30,		December 31,		March 31,		December 31,
	2021		2020		2022		2021
Cash and cash equivalents	$	293,190	$	158,334	$	78,396	$	183,809
Restricted cash and cash equivalents		—		—		—		—
Receivables, less allowance for credit losses of $33,716 and $35,710		1,648,579		1,479,160
Receivables, less allowance for credit losses of $31,290 and $34,173						1,678,976		1,715,740
Equipment on operating leases, net		1,326,597		1,434,253		1,215,948		1,283,428
Short-term debt, including current maturities of long-term debt		1,156,661		1,109,953		701,235		740,257
Accounts payable and other accrued liabilities		740,840		798,624		845,079		838,482
Long-term debt		2,386,891		2,528,576		2,222,634		2,327,853

For the U.S. Senior Notes, the obligors’ amounts due from and due to the non-guarantor subsidiaries of CNH Industrial Capital LLC as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 were as follows (dollars in thousands):

September 30,

December 31,

2021

2020
Affiliated accounts and notes receivable from non-guarantor subsidiaries

$
2,232,954

$
2,135,799
Accounts payable and other accrued liabilities to non-guarantor subsidiaries

3,064,444

2,810,187

~~Table of Contents~~


	March 31,		December 31,
	2022		2021
Affiliated accounts and notes receivable from non-guarantor subsidiaries	$	2,295,328	$	2,253,415
Accounts payable and other accrued liabilities to non-guarantor subsidiaries		3,069,224		3,156,639

For the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ the summarized statement of income information for the obligor group of the Canadian Senior Notes was as follows (dollars in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020		2022		2021
Revenues	$	164,143	$	159,184	$	480,253	$	477,805	$	147,362	$	159,564
Interest expense		49,545		67,074		149,345		210,336		26,924		50,263
Administrative and operating expenses		73,177		86,789		231,998		256,410		93,396		82,855
Income tax provision		10,176		1,559		24,406		2,465		6,784		6,655
Net income	$	31,245	$	3,762	$	74,504	$	8,594	$	20,258	$	19,791

As of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, the summarized balance sheet information for the obligor group of the Canadian Senior Notes was as follows (dollars in thousands):


	September 30,		December 31,		March 31,		December 31,
	2021		2020		2022		2021
Cash and cash equivalents	$	301,111	$	177,581	$	94,736	$	203,428
Restricted cash and cash equivalents		100,916		117,645		103,572		103,378
Receivables, less allowance for credit losses of $49,795 and $52,151		3,518,557		3,300,108
Receivables, less allowance for credit losses of $43,513 and $47,635						3,658,268		3,648,390
Equipment on operating leases, net		1,740,969		1,859,184		1,648,043		1,707,531
Short-term debt, including current maturities of long-term debt		1,893,537		1,857,629		1,310,595		1,362,012
Accounts payable and other accrued liabilities		815,836		905,226		946,782		921,681
Long-term debt		3,346,966		3,314,796		3,281,187		3,419,175

For the Canadian Senior Notes, the obligors’ amounts due from and due to the non-guarantor subsidiaries of CNH Industrial Capital LLC as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 were as follows (dollars in thousands):


	September 30,		December 31,		March 31,		December 31,
	2021		2020		2022		2021
Affiliated accounts and notes receivable from non-guarantor subsidiaries	$	2,113,549	$	2,056,011	$	2,172,623	$	2,133,655
Accounts payable and other accrued liabilities to non-guarantor subsidiaries		3,177,222		2,923,954		3,182,198		3,270,583

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Other Data


	As of or for the						As of or for the
	Nine Months Ended September 30,						Three Months Ended March 31,
	2021			2020			2022			2021

	(Dollars in thousands)						(Dollars in thousands)
Total managed receivables	$	9,015,492		$	9,200,487		$	9,242,230		$	8,903,968
Operating lease equipment		1,740,969			1,769,774			1,648,043			1,842,319
Total managed portfolio	$	10,756,461		$	10,970,261		$	10,890,273		$	10,746,287
Delinquency ⁽¹⁾		0.46	%		0.97	%		0.48	%		0.69	%
Average managed receivables	$	9,009,768		$	9,539,726		$	9,018,083		$	9,164,492
Net credit loss ⁽²⁾		0.15	%		0.25	%		0.12	%		0.19	%
Profitability: ⁽³⁾
Return on average managed portfolio ⁽⁴⁾		2.17	%		1.30	%		2.36	%		2.08	%
Asset Quality:
Allowance for credit losses/total receivables		1.33	%		1.41	%		1.28	%		1.49	%

(1)

Delinquency means managed receivables that are past due over 30 days, expressed as a percentage of the managed receivables as of the end of the respective period.

(2)

Net credit losses on the managed receivables means ~~charge-offs,~~Charge-offs, net of recoveries, for the preceding 12 months expressed as a percentage of the respective average managed receivables.

(3)

~~Nine~~Three months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ annualized.

(4)

Net income for the period expressed as a percentage of the average managed portfolio.

~~Table of Contents~~

Cautionary Note Regarding Forward-Looking Statements

This quarterly report includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact contained in this ~~filing,~~filing; including ~~statements regarding our future responses to and effects of the COVID-19 pandemic;~~ competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, capital expenditures, dividends, liquidity, capital structure or other financial items; costs; and plans and objectives of management regarding operations, products and services, are forward-looking statements. Forward-looking statements also include statements regarding the future performance of CNH Industrial and its subsidiaries on a stand-alone basis. These statements may include terminology such as “may,” “will,” “expect,” “could,” “should,” “intend,” “estimate,” “anticipate,” “believe,” “outlook,” “continue,” “remain,” “on track,” “design,” “target,” “objective,” “goal,” “forecast,” “projection,” “prospects,” “plan,” or similar terminology. Forward-looking statements, including those related to the COVID-19 pandemic, are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside our control and are difficult to predict. If any of these risks and uncertainties materialize (or they occur with a degree of severity that the Company is unable to predict) or other assumptions underlying any of the forward-looking statements prove to be incorrect, including any assumptions regarding strategic plans, the actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements.

Factors, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others: the ~~many interrelated factors that affect customer confidence and demand for our financing products and services;~~continued uncertainties related to the unknown duration and economic, operational and financial impacts of the global COVID-19 ~~pandemic;~~pandemic and the actions taken or contemplated by governmental authorities or others in connection with the pandemic on our business, our employees, customers and suppliers; supply chain disruptions, including delays caused by mandated shutdowns, industry capacity constraints, material availability, and global logistics delays and constraints; disruption caused by business responses to COVID-19, including remote working arrangements, which may create increased vulnerability to cybersecurity or data privacy incidents; our ability to execute business continuity plans as a result of COVID-19; the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods-related products, including demand uncertainty caused by COVID-19; general economic ~~conditions;~~conditions in each of our markets, including the significant economic uncertainty and volatility caused by the war in the Ukraine and COVID-19; changes in government ~~policies~~policy regarding banking, monetary and fiscal policies; legislation, particularly ~~relating~~

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pertaining to capital goods-related issues such as agriculture, the environment, debt relief and subsidy program policies, trade and commerce and infrastructure development; government policies on international trade and investment, including ~~protectionist trade policies such as higher tariffs,~~ sanctions, import quotas, capital controls and ~~new barriers to entry or consequent reactions~~tariffs; volatility in international trade caused by ~~other governments against such policies; costs related to litigation or regulatory actions;~~the imposition of tariffs, sanctions, embargoes, and trade wars; actions of competitors in the various industries in which CNH Industrial North America competes; development and use of new technologies and technological difficulties; the interpretation of, or adoption of new, compliance requirements with respect to engine emissions, safety or other aspects of CNH Industrial’s products; production difficulties, including capacity and supply constraints and excess inventory levels; labor relations; interest rates and currency exchange rates; inflation and deflation; energy prices; prices for agricultural commodities; housing starts and other construction activity; our ability to obtain financing or to refinance existing debt; restrictive covenants in our debt agreements; actions by rating agencies concerning the ratings on our debt and asset-backed securities and the credit rating of CNHI; a decline in the price of used equipment; security breaches, cybersecurity attacks, technology failures, and other disruptions to the information technology infrastructure of the Company and its CNH Industrial North America dealers; security breaches with respect to CNH Industrial’s products; political and civil unrest; volatility and deterioration of capital and financial ~~markets;~~markets, including other pandemics and terrorist attacks; our ability to realize the ~~duration and scope~~anticipated benefits from our business initiatives as part of CNHI’s strategic plan; CNHI’s failure to realize, or a delay in realizing, all of the ~~COVID-19 pandemic~~anticipated benefits of its acquisitions, joint ventures, strategic alliances or divestitures and governmental, business and individuals’ response thereto; the ability of CNHI to complete the spin-off transaction considering the various conditions to the completion of the spin-off transaction (some of which are outside of CNHI’s control); other similar risks and uncertainties, and our ~~success,~~ and ~~CNH Industrial North America’s~~CNHI’s success in managing the risks involved in the foregoing.

Forward-looking statements are based upon assumptions relating to the factors described in this filing, which are sometimes based upon estimates and data received from third parties. Such estimates and data are often revised. ~~Our actual~~Actual results ~~could~~may differ materially from ~~those anticipated in such~~the forward-looking ~~statements. Forward-looking~~ statements ~~speak only as of the date on which such statements are made, and we undertake no obligation to update or revise publicly our forward-looking statements, whether~~ as a result of ~~new developments or otherwise.~~

~~The impact~~a number of ~~COVID-19 has already exacerbated~~risks and ~~is expected to further exacerbate all or part~~uncertainties, many of ~~the risks discussed in this section.~~

~~All future written and oral forward-looking statements by~~which are outside of our control. CNH Industrial Capital expressly disclaims any intention or ~~persons acting on the behalf of CNH Industrial Capital are expressly qualified in their entirety by the cautionary statements contained herein~~obligation to provide, update or ~~referred to above.~~revise any forward-looking statements.

Additional factors ~~which~~ could cause actual results to differ from those expressed or implied by the forward-looking statements ~~are~~ included in the Company’s filings with the SEC (including, but not limited to, the factors discussed in our annual report on Form 10-K and quarterly reports submitted on Form 10-Q).

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Critical Accounting Policies and Estimates

See our critical accounting policies and estimates discussed in our annual report for the year ended December 31, ~~2020~~2021 under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 2 to our audited consolidated financial statements included in such annual report. There were no material changes to these policies or estimates during the three months ended ~~September 30, 2021.~~March 31, 2022.

New Accounting Pronouncements Not Yet Adopted

See Note 2: New Accounting Pronouncements to this Form 10-Q.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

Under the supervision, and with the participation, of our management, including our President and Chief Financial Officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of ~~September 30, 2021.~~March 31, 2022. Based on that evaluation, our President and Chief Financial Officer concluded that the disclosure controls and procedures are effective to provide reasonable assurance that information required to be disclosed in our Exchange Act filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our President and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There has been no change in our internal control over financial reporting during the three months ended ~~September 30, 2021~~March 31, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

CNH Industrial Capital is party to various litigation matters and claims arising from its operations. Management believes that the outcome of these proceedings, individually and in the aggregate, will not have a material adverse effect on CNH Industrial Capital’s financial position or results of operations.

Item 1A. Risk Factors

See our most recent annual report on Form 10-K (Part I, Item 1A). There was no material change in our risk factors during the three months ended ~~September 30, 2021.~~March 31, 2022.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

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Item 6. Exhibits


Exhibit		Description
22		Issuer and Guarantors of Guaranteed Securities
31.1		Certifications of President Pursuant to Exchange Act Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certifications of Chief Financial Officer Pursuant to Exchange Act Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1†		Certification required by Exchange Act Rule 13a-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350).
101		Interactive Inline data files pursuant to Rule 405 of Regulation S-T: (i) Consolidated Statements of Income for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ (ii) Consolidated Statements of Comprehensive Income for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ (iii) Consolidated Balance Sheets as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, (iv) Consolidated Statements of Cash Flows for the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ (v) Consolidated Statements of Changes in Stockholder’s Equity for the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ and (vi) Condensed Notes to Consolidated Financial Statements.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

†	These certifications are deemed not filed for purposes of section 18 of the Exchange Act, or otherwise subject to the liability of that section; nor shall they be deemed incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act.

Pursuant to Item 601(b)(4)(iii) of Regulation S-K, copies of instruments defining the rights of holders of certain long-term debt have not been filed. The registrant will furnish copies thereof to the SEC upon request.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	CNH INDUSTRIAL CAPITAL LLC
Date: ~~November 10, 2021~~May 9, 2022	By:	/s/ Douglas MacLeod

		Name:	Douglas MacLeod
		Title:	Chairman and President

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