Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document and Entity Information | |
Entity Registrant Name | CNH INDUSTRIAL CAPITAL LLC |
Entity Central Index Key | 1552493 |
Document Type | S-4 |
Document Period End Date | 31-Dec-14 |
Amendment Flag | FALSE |
Entity Filer Category | Non-accelerated Filer |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUES | |||||||||||
Interest income on retail notes and finance leases | $204,452 | $181,342 | $178,444 | ||||||||
Interest income on wholesale notes | 74,450 | 63,760 | 62,213 | ||||||||
Interest and other income from affiliates | 437,435 | 414,957 | 392,463 | ||||||||
Rental income on operating leases | 165,914 | 138,937 | 133,806 | ||||||||
Other income | 52,500 | 59,125 | 67,078 | ||||||||
Total revenues | 246,039 | 233,960 | 233,764 | 220,988 | 221,937 | 218,187 | 212,332 | 205,665 | 934,751 | 858,121 | 834,004 |
Interest expense: | |||||||||||
Interest expense to third parties | 255,951 | 233,217 | 219,561 | ||||||||
Interest expense to affiliates | 30,477 | 24,105 | 34,512 | ||||||||
Total interest expense | 78,516 | 74,115 | 70,669 | 63,128 | 69,918 | 64,997 | 62,932 | 59,475 | 286,428 | 257,322 | 254,073 |
Administrative and operating expenses: | |||||||||||
Fees charged by affiliates | 49,539 | 56,405 | 61,895 | ||||||||
Provision (benefit) for credit losses, net | 14,124 | -5,904 | 44,578 | ||||||||
Depreciation of equipment on operating leases | 141,688 | 114,053 | 107,836 | ||||||||
Other expenses | 56,604 | 35,083 | 35,929 | ||||||||
Total administrative and operating expenses | 72,741 | 71,393 | 61,835 | 55,986 | 51,802 | 52,335 | 42,913 | 52,587 | 261,955 | 199,637 | 250,238 |
Total expenses | 548,383 | 456,959 | 504,311 | ||||||||
INCOME BEFORE TAXES | 386,368 | 401,162 | 329,693 | ||||||||
Income tax provision | 29,951 | 29,762 | 32,598 | 34,807 | 32,077 | 35,527 | 37,475 | 29,743 | 127,118 | 134,822 | 116,112 |
NET INCOME | 259,250 | 266,340 | 213,581 | ||||||||
Net income attributed to noncontrolling interest | -292 | -273 | -334 | -328 | -312 | -373 | -357 | -418 | -1,227 | -1,460 | -1,645 |
NET INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | $64,539 | $58,417 | $68,328 | $66,739 | $67,828 | $64,955 | $68,655 | $63,442 | $258,023 | $264,880 | $211,936 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
NET INCOME | $259,250 | $266,340 | $213,581 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | -57,822 | -44,158 | 15,084 |
Pension liability adjustment | -342 | 1,806 | -154 |
Change in unrealized gains on retained interests | -244 | -1,632 | -1,358 |
Change in derivative financial instruments | 2,408 | 3,408 | 4,360 |
Total other comprehensive income (loss) | -56,000 | -40,576 | 17,932 |
COMPREHENSIVE INCOME | 203,250 | 225,764 | 231,513 |
Less: comprehensive income attributable to noncontrolling interest | -1,227 | -1,460 | -1,645 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | $202,023 | $224,304 | $229,868 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $347,987 | $697,608 |
Restricted cash | 858,825 | 784,508 |
Receivables, less allowance for credit losses of $95,542 and $101,953, respectively | 12,789,027 | 12,183,281 |
Retained interests in securitized receivables | 2,853 | |
Affiliated accounts and notes receivable | 58,731 | 110,148 |
Equipment on operating leases, net | 1,458,325 | 974,307 |
Equipment held for sale | 129,700 | 40,750 |
Goodwill | 112,851 | 115,486 |
Other intangible assets, net | 8,355 | 6,804 |
Other assets | 145,764 | 70,959 |
TOTAL | 15,909,565 | 14,986,704 |
Liabilities: | ||
Short-term debt (including current maturities of long-term debt) | 4,632,208 | 4,289,189 |
Accounts payable and other accrued liabilities | 645,941 | 490,506 |
Affiliated debt | 862,445 | 351,004 |
Long-term debt | 8,193,039 | 8,345,588 |
Total liabilities | 14,333,633 | 13,476,287 |
Commitments and contingent liabilities (Note 13) | ||
Stockholder's equity: | ||
Paid-in capital | 843,250 | 842,182 |
Accumulated other comprehensive income (loss) | -49,928 | 6,072 |
Retained earnings | 746,758 | 603,735 |
Total CNH Industrial Capital LLC stockholder's equity | 1,540,080 | 1,451,989 |
Noncontrolling interest | 35,852 | 58,428 |
Total stockholder's equity | 1,575,932 | 1,510,417 |
TOTAL | $15,909,565 | $14,986,704 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Allowance for credit losses | $95,542 | $101,953 |
Restricted cash | 858,825 | 784,508 |
Receivables, less allowance for credit losses of $78,960 and $75,292, respectively | 12,789,027 | 12,183,281 |
Equipment on operating leases, net | 1,458,325 | 974,307 |
TOTAL | 15,909,565 | 14,986,704 |
Short-term debt (including current maturities of long-term debt) | 4,632,208 | 4,289,189 |
Long-term debt | 8,193,039 | 8,345,588 |
Total liabilities | 14,333,633 | 13,476,287 |
Consolidated variable interest entities ("VIEs") | ||
Allowance for credit losses | 78,960 | 75,292 |
Restricted cash | 858,725 | 784,407 |
Receivables, less allowance for credit losses of $78,960 and $75,292, respectively | 9,266,204 | 9,493,634 |
Equipment on operating leases, net | 83,195 | 115,512 |
TOTAL | 10,208,124 | 10,393,553 |
Short-term debt (including current maturities of long-term debt) | 3,853,058 | 4,194,045 |
Long-term debt | 5,839,213 | 5,796,434 |
Total liabilities | $9,692,271 | $9,990,479 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $259,250 | $266,340 | $213,581 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Depreciation on property and equipment and equipment on operating leases | 141,727 | 114,090 | 107,892 |
Amortization of intangibles | 1,125 | 1,002 | 1,010 |
Provision (benefit) for credit losses, net | 14,124 | -5,904 | 44,578 |
Deferred income tax expense | 85,645 | 34,897 | 13,257 |
Stock compensation expense | 1,068 | 1,242 | 4,219 |
Changes in components of working capital: | |||
Changes in affiliated accounts and notes receivables | 50,815 | -15,938 | 99,423 |
Changes in other assets and equipment held for sale | -87,357 | 11,739 | 59,570 |
Changes in accounts payable and other accrued liabilities | 75,619 | 10,522 | -16,949 |
Net cash from (used in) operating activities | 542,016 | 417,990 | 526,581 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Cost of receivables acquired | -19,051,010 | -20,631,860 | -19,639,227 |
Collections of receivables | 18,241,277 | 19,044,038 | 18,305,941 |
Changes in restricted cash | -86,450 | -65,756 | 43,589 |
Purchase of equipment on operating leases | -996,858 | -620,561 | -459,477 |
Proceeds from disposal of equipment on operating leases | 269,222 | 271,354 | 249,879 |
Capital expenditures for property and equipment and software | -2,685 | -3,320 | -2,314 |
Net cash from (used in) investing activities | -1,626,504 | -2,006,105 | -1,501,609 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from issuance of affiliated debt | 2,041,129 | 1,346,492 | 1,807,984 |
Payment of affiliated debt | -1,516,433 | -1,854,288 | -1,764,745 |
Proceeds from issuance of long-term debt | 3,914,656 | 5,872,434 | 3,963,218 |
Payment of long-term debt | -3,009,731 | -3,507,341 | -3,124,109 |
Changes in revolving credit facilities, net | -555,951 | -157,487 | 284,500 |
Dividends paid to CNH Industrial America LLC | -115,000 | -200,000 | |
Preferred dividend paid to CNH Industrial Canada Ltd. | -23,803 | ||
Net cash from (used in) financing activities | 734,867 | 1,499,810 | 1,166,848 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -349,621 | -88,305 | 191,820 |
CASH AND CASH EQUIVALENTS | |||
Beginning of year | 697,608 | 785,913 | 594,093 |
End of year | 347,987 | 697,608 | 785,913 |
CASH PAID DURING THE YEAR FOR INTEREST | 274,358 | 250,697 | 251,590 |
CASH PAID DURING THE YEAR FOR TAXES | $101,933 | $130,271 | $85,684 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (USD $) | Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interest | Total |
In Thousands, unless otherwise specified | |||||
BALANCE at Dec. 31, 2011 | $836,721 | $28,716 | $326,919 | $54,889 | $1,247,245 |
Increase (Decrease) in Stockholder's Equity | |||||
Net income | 211,936 | 1,645 | 213,581 | ||
Preferred stock issuance | 434 | 434 | |||
Foreign currency translation adjustment | 15,084 | 15,084 | |||
Stock compensation | 4,219 | 4,219 | |||
Pension liability adjustment, net of tax | -154 | -154 | |||
Change in unrealized gain on retained interests, net of tax | -1,358 | -1,358 | |||
Change in derivative financial instruments, net of tax | 4,360 | 4,360 | |||
BALANCE at Dec. 31, 2012 | 840,940 | 46,648 | 538,855 | 56,968 | 1,483,411 |
Increase (Decrease) in Stockholder's Equity | |||||
Net income | 264,880 | 1,460 | 266,340 | ||
Dividends paid to CNH Industrial America LLC | -200,000 | -200,000 | |||
Foreign currency translation adjustment | -44,158 | -44,158 | |||
Stock compensation | 1,242 | 1,242 | |||
Pension liability adjustment, net of tax | 1,806 | 1,806 | |||
Change in unrealized gain on retained interests, net of tax | -1,632 | -1,632 | |||
Change in derivative financial instruments, net of tax | 3,408 | 3,408 | |||
BALANCE at Dec. 31, 2013 | 842,182 | 6,072 | 603,735 | 58,428 | 1,510,417 |
Increase (Decrease) in Stockholder's Equity | |||||
Net income | 258,023 | 1,227 | 259,250 | ||
Dividends paid to CNH Industrial America LLC | -115,000 | -115,000 | |||
Preferred dividend paid to CNH Industrial Canada Ltd. | -23,803 | -23,803 | |||
Foreign currency translation adjustment | -57,822 | -57,822 | |||
Stock compensation | 1,068 | 1,068 | |||
Pension liability adjustment, net of tax | -342 | -342 | |||
Change in unrealized gain on retained interests, net of tax | -244 | -244 | |||
Change in derivative financial instruments, net of tax | 2,408 | 2,408 | |||
BALANCE at Dec. 31, 2014 | $843,250 | ($49,928) | $746,758 | $35,852 | $1,575,932 |
NATURE_OF_OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2014 | |
NATURE OF OPERATIONS | |
NATURE OF OPERATIONS | |
NOTE 1: NATURE OF OPERATIONS | |
CNH Industrial Capital LLC (formerly known as CNH Capital LLC) and its wholly-owned operating subsidiaries, including New Holland Credit Company, LLC ("New Holland Credit") and CNH Industrial Capital America LLC ("CNH Industrial Capital America"), and its majority-owned operating subsidiary CNH Industrial Capital Canada Ltd. ("CNH Industrial Capital Canada") (collectively, "CNH Industrial Capital" or the "Company"), are each a wholly-owned 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. | |
On September 29, 2013, Fiat Industrial S.p.A. and CNH Global N.V. ("CNH Global"), the former indirect parents of CNH Industrial Capital, completed a merger to combine their businesses, with CNHI as the surviving entity. As a result of the merger, CNH Industrial Capital LLC and its primary operating subsidiaries, including CNH Industrial Capital America, New Holland Credit and CNH Industrial Capital Canada, have become indirect wholly-owned subsidiaries of CNHI (with all of the equity interests in CNH Industrial Capital LLC owned by CNHI through intermediate companies, through which CNHI exercises indirect control over CNH Industrial Capital LLC). CNHI is incorporated in and under the laws of The Netherlands. 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. | |
On February 28, 2014, CNH Capital LLC changed its name to CNH Industrial Capital LLC; CNH Capital America LLC changed its name to CNH Industrial Capital America LLC; and CNH Capital Canada Ltd. changed its name to CNH Industrial Capital Canada Ltd. | |
Effective July 1, 2012, CNH Industrial Capital LLC sold its equity interests in CNH Capital Insurance Agency, Inc. and CNH Capital Canada Insurance Agency Ltd. and entered into a five-year master services agreement allowing the buyer to use the "CNH Industrial Capital" name during that period. CNH Industrial Capital LLC received approximately $35,000 in connection with the transaction, primarily representing a prepayment on the master services agreement. | |
Effective October 24, 2014 CNH Industrial Capital closed on a series of agreements with Citibank, N.A. and certain affiliates of Citibank, N.A. (together, "Citi"), pursuant to which Citi acquired CNH Industrial Capital's portfolio of commercial revolving accounts ("CRA") receivables. Pursuant to these agreements, Citi offers a private-label CRA product through CNH Industrial dealers in North America. | |
To support CNH Industrial North America's sales of agricultural and construction equipment products, the Company offers retail financing to end-use customers and wholesale financing to CNH Industrial North America equipment dealers, which are almost entirely independently owned. Wholesale financing consists primarily of dealer floorplan financing and allows dealers the ability to maintain a representative inventory of products. In addition, the Company provides financing to dealers for equipment used in dealer-owned rental yards, parts inventory, working capital, and other financing needs. The Company provides and administers retail financing, primarily retail installment sales contracts, finance leases and operating leases to end-use customers for the purchase or lease of new and used CNH Industrial North America equipment and other agricultural and construction equipment sold primarily through CNH Industrial North America dealers and distributors. In addition, the Company purchases equipment from dealers that is leased to retail customers under operating lease agreements. Customers also use CRA products to purchase parts, service, rentals, implements, and attachments from CNH Industrial North America dealers. The Company also finances a variety of insurance and other products for end users and dealers in conjunction with the purchase of new and used equipment. As a captive finance company, the Company is reliant on the operations of CNH Industrial North America, its dealers and end-use customers. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2014 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of Consolidation and Basis of Presentation | |
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"). 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. | |
Use of Estimates in the Preparation of Financial Statements | |
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 those estimates. | |
Revenue Recognition | |
Finance and interest income on retail notes and finance leases and on wholesale notes is recorded using the effective yield method. Deferred costs on the origination of financing receivables are recognized as a reduction in finance revenue over the expected lives of the receivables using the effective yield method. Recognition of income on receivables is suspended when management determines that collection of future income is not probable or when an account becomes 120 days delinquent, whichever occurs earlier. Income accrual is resumed if the receivable becomes contractually current and collection doubts are removed. Previously suspended income is recognized at that time. The Company applies cash received on nonaccrual financing receivables to first reduce any unrecognized interest and then the recorded investment and any other fees. Receivables are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Delinquency is reported on receivables greater than 30 days past due. Charge-offs of principal amounts of receivables outstanding are deducted from the allowance at the point when it is determined to be probable that all amounts due will not be collected. | |
A substantial portion of the Company's interest income arises from retail sales programs offered by CNH Industrial North America on which finance charges are waived or below-market rate financing programs are offered. When the Company acquires retail installment sales contracts and finance leases subject to below-market interest rates, including waived interest rate financing, the Company is compensated by CNH Industrial North America in an amount equal to the present value of the difference between the payments at the customer rate and the payments at the market rate. This amount is initially recognized as an unearned finance charge and is recognized as interest income over the term of the retail notes and finance leases, and is included in "Interest and other income from affiliates" in the accompanying consolidated statements of income. | |
For selected wholesale receivables, CNH Industrial North America compensates the Company for the difference between market interest rates and the amount paid by the dealer. These amounts are included in "Interest and other income from affiliates" in the accompanying consolidated statements of income. | |
The Company is also compensated for lending funds to CNH Industrial North America. The amounts earned are included in "Interest and other income from affiliates" in the accompanying consolidated statements of income. | |
Income from operating leases is recognized over the term of the lease on a straight-line basis. For selected operating leases, CNH Industrial North America compensates the Company for the difference between market rental rates and the amount paid by the customer. The amounts from CNH Industrial North America recognized as rental income on operating leases are included in "Interest and other income from affiliates." | |
Foreign Currency Translation | |
The Company's non-U.S. subsidiaries maintain their books and accounting records using local currency as the functional currency. Assets and liabilities of these non-U.S. subsidiaries are translated into U.S. dollars at period-end exchange rates, and net exchange gains or losses resulting from such translation are included in "Accumulated other comprehensive income" in the accompanying consolidated balance sheets. Income and expense accounts of these non-U.S. subsidiaries are translated at the average exchange rates for the period, and gains and losses from foreign currency transactions are included in net income in the period that they arise. | |
Cash and Cash Equivalents | |
Cash equivalents are highly liquid investments with an original maturity of three months or less. The carrying value of cash equivalents approximates fair value because of the short maturity of these investments. | |
Restricted Cash | |
Restricted cash includes principal and interest payments from retail notes and wholesale receivables owned by the consolidated VIEs that are payable to the VIEs' investors, and cash pledged as a credit enhancement to the same investors. These amounts are held by depository banks in order to comply with contractual agreements. | |
Receivables | |
Receivables are recorded at amortized cost, net of allowances for credit losses and deferred fees and costs. Periodically, the Company sells or transfers retail notes and wholesale receivables to funding facilities or in securitization transactions. In accordance with the accounting guidance regarding transfers of financial assets and the consolidation of VIEs, the majority of the retail notes and wholesale receivables sold in securitizations do not qualify as sales and are recorded as secured borrowings with no gains or losses recognized at the time of securitization. Receivables associated with these securitization transactions and receivables that the Company has the ability and intent to hold for the foreseeable future are classified as held for investment. The substantial majority of the Company's receivables, which include unrestricted receivables and restricted receivables for securitization investors, are classified as held for investment. | |
For those receivable securitizations that qualify as sales and are off-book, the Company retains interest-only strips, servicing rights and cash reserve accounts (collectively, "retained interests"), all of which are recorded at fair value. Changes in these fair values are recorded in other accumulated comprehensive income as an unrealized gain or loss on available-for-sale securities. With regards to other-than-temporary impairments ("OTTI") of debt securities, any OTTI due to changes in the constant prepayment rate and the expected credit loss rate are included in net income. An OTTI due to a change in the discount rates would be included in "Accumulated other comprehensive income" in the accompanying consolidated balance sheets. | |
Allowance for Credit Losses | |
The allowance for credit losses is the Company's estimate of probable losses on receivables owned by the Company and consists of two components, depending on whether the receivable has been individually identified as being impaired. The first component of the allowance for credit losses covers the receivables specifically reviewed by management for which the Company has determined it is probable that it will not collect all the principal and interest payments as per the terms of the contract. Receivables are individually reviewed for impairment based on, among other items, amounts outstanding, days past due and prior collection history. These receivables are subject to impairment measurement at the loan level based either on the present value of expected future cash flows discounted at the receivables' effective interest rate or the fair value of the collateral for collateral-dependent receivables. | |
The second component of the allowance for credit losses covers all receivables that have not been individually reviewed for impairment. The allowance for these receivables is based on aggregated portfolio evaluations, generally by financial product. 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 allowance for wholesale credit losses is based on loss forecast models that consider the same factors as the retail models plus dealer risk ratings. The loss forecast models are updated on a quarterly basis. In addition, qualitative factors that are not fully captured in the loss forecast models, including industry trends, and macroeconomic factors, 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. | |
Charge-offs of principal amounts of receivables outstanding are deducted from the allowance at the point when it is determined to be probable that all amounts due will not be collected. | |
Equipment on Operating Leases | |
The Company purchases leases and equipment from CNH Industrial North America dealers and other independent third parties that have leased equipment to retail customers under operating leases. The Company's investment in operating leases is based on the purchase price paid for the equipment. Income from these operating leases is recognized over the term of the lease. The equipment is depreciated on a straight-line basis over the term of the lease to the estimated residual value at lease termination. Residual values are estimated at the inception of the lease and are reviewed quarterly. Realization of the residual values is dependent on the Company's future ability to re-market the equipment under then prevailing market conditions. Model changes and updates, as well as market strength and product acceptance, are monitored and adjustments are made to residual values in accordance with the significance of any such changes. Management believes that the estimated residual values are realizable. Expenditures for maintenance and repairs are the responsibility of the lessee. | |
Equipment returned to the Company upon termination of leases and held for subsequent sale or lease is recorded at the lower of net book value or estimated fair value of the equipment, less cost to sell, and is not depreciated. | |
Goodwill and Intangible Assets | |
Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired. Goodwill is deemed to have an indefinite useful life and is reviewed for impairment at least annually. During 2014 and 2013, the Company performed its annual impairment review as of December 31, and concluded that there was no impairment in either year. Other intangible assets consist of software and are being amortized on a straight-line basis over five years. | |
Income Taxes | |
The provision for income taxes is determined using the asset and liability method. The Company recognizes a current tax liability or asset for the estimated taxes payable or refundable on tax returns for the current year and tax contingencies estimated to be settled with taxing authorities within one year. A deferred tax liability or asset is recognized for the estimated future tax effects attributable to temporary differences and tax loss carryforwards. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized based on available evidence. | |
Derivatives | |
The Company's policy is to enter into derivative transactions to manage exposures that arise in the normal course of business and not for trading or speculative purposes. The Company records derivative financial instruments in the consolidated balance sheets as either an asset or liability measured at fair value. The fair value of the Company's interest rate derivatives is based on discounting expected cash flows, using market interest rates, over the remaining term of the instrument. The fair value of the Company's foreign exchange derivatives is based on quoted market exchange rates, adjusted for the respective interest rate differentials (premiums or discounts). Changes in the fair value of derivative financial instruments are recognized in current income unless specific hedge accounting criteria are met. For derivative financial instruments designated to hedge exposure to changes in the fair value of a recognized asset or liability, the gain or loss is recognized in income in the period of change together with the offsetting loss or gain on the related hedged item. For derivative financial instruments designated to hedge exposure to variable cash flows of a forecasted transaction, the effective portion of the derivative financial instrument's gain or loss is initially reported in accumulated other comprehensive income and is subsequently reclassified into income when the forecasted transaction affects income. The ineffective portion of the gain or loss is reported in income immediately. For derivative financial instruments that are not designated as hedges but held as economic hedges, the gain or loss is recognized immediately into income. | |
For derivative financial instruments designated as hedges, the Company formally documents the hedging relationship to the hedged item and its risk management strategy for all derivatives designated as hedges. This includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities contained in the consolidated balance sheets and linking cash flow hedges to specific forecasted transactions or variability of cash flow. The Company assesses the effectiveness of the hedging instrument both at inception and on an ongoing basis. If a derivative is determined not to be highly effective as a hedge, or the underlying hedged transaction is no longer probable of occurring, or the derivative is terminated, the hedge accounting described above is discontinued and the derivative is marked to fair value and recorded in income through the remainder of its term. | |
New Accounting Pronouncements Adopted in Prior Years | |
In February 2013, the Financial Accounting Standards Board ("FASB") issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income ("AOCI") ("ASU 2013-02"). Some of the key amendments require the Company to present, either on the face of the statement of operations or in the notes, the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income, but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, the Company is required to cross-reference other disclosures that provide additional detail about those amounts. ASU 2013-02 became effective for the Company's annual and interim periods beginning January 1, 2013. | |
New Accounting Pronouncements Not Yet Adopted | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"). ASU 2014-09 supersedes the revenue recognition requirements in Accounting Standards Codification 605—Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years. The guidance can be applied retrospectively to each prior reporting period present (full retrospective method) or retrospectively with a cumulative effect adjustment to retained earnings for initial application of the guidance at the date of initial adoption (modified retrospective method). The Company is in the process of assessing the impact of the adoption of ASU 2014-09 on its financial position, results of operations and cash flows. | |
In August 2014, the FASB issued ASU No. 2014-15, Uncertainties About an Entity's Ability to Continue as a Going Concern ("ASU 2014-15"). ASU 2014-15 provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date of issuance of the entity's financial statements. An entity must also provide certain disclosures if there is "substantial doubt" about the entity's ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company does not believe the adoption of this standard will have a material impact on its financial position or results of operations. | |
In February 2015, the FASB issued ASU No. 2015-02, Consolidation ("ASU 2015-02"). ASU 2015-02 is intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability companies and securitized structures. The new standard eliminates the previous deferral in Accounting Standards Codification 810, which allowed reporting entities with interests in certain investment funds to follow previously issued consolidations guidance, and makes changes to both the variable interest model and the voting model. ASU 2015-02 is effective for annual periods ending after December 15, 2015. The Company is currently assessing the impact of the adoption of ASU 2015-02 on its financial position, results of operations and cash flows. | |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||||||
NOTE 3: ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||||||
AOCI is comprised of net income and other adjustments, including foreign currency translation adjustments, pension plan adjustments, changes in fair value of the retained interests in the off-book retail transactions and changes in the fair value of certain derivative financial instruments qualifying as cash flow hedges. The Company does not provide income taxes on currency translation adjustments ("CTA"), as the historical earnings from the Company's foreign subsidiaries are considered to be permanently reinvested. If current year earnings are repatriated, the amount to be repatriated is determined in U.S. dollars and converted to the equivalent amount of foreign currency at the time of repatriation; therefore, the repatriation of current year earnings will not have an impact on the CTA component of the Company's AOCI balance. | |||||||||||||||||
The following table summarizes the change in the components of the Company's AOCI balance and related tax effects for the year ended December 31, 2014: | |||||||||||||||||
Currency | Pension | Unrealized | Unrealized | Total | |||||||||||||
Translation | Liability | Gains on | Losses on | ||||||||||||||
Adjustment | Retained | Derivatives | |||||||||||||||
Interests | |||||||||||||||||
Beginning balance, gross | $ | 14,762 | $ | (5,891 | ) | $ | 388 | $ | (7,855 | ) | $ | 1,404 | |||||
Tax asset (liability) | — | 2,149 | (144 | ) | 2,663 | 4,668 | |||||||||||
| | | | | | | | | | | | | | | | | |
Beginning balance, net of tax | 14,762 | (3,742 | ) | 244 | (5,192 | ) | 6,072 | ||||||||||
Other comprehensive income before reclassifications | (57,822 | ) | (1,030 | ) | — | (747 | ) | (59,599 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | — | 496 | (388 | ) | 4,502 | 4,610 | |||||||||||
Tax effects | — | 192 | 144 | (1,347 | ) | (1,011 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net current-period other comprehensive income (loss) | (57,822 | ) | (342 | ) | (244 | ) | 2,408 | (56,000 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
BALANCE at December 31, 2014 | $ | (43,060 | ) | $ | (4,084 | ) | $ | — | $ | (2,784 | ) | $ | (49,928 | ) | |||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
The following table summarizes the change in the components of the Company's AOCI balance and related tax effects for the year ended December 31, 2013: | |||||||||||||||||
Currency | Pension | Unrealized | Unrealized | Total | |||||||||||||
Translation | Liability | Gains on | Losses on | ||||||||||||||
Adjustment | Retained | Derivatives | |||||||||||||||
Interests | |||||||||||||||||
Beginning balance, gross | $ | 58,920 | $ | (8,834 | ) | $ | 3,012 | $ | (13,219 | ) | $ | 39,879 | |||||
Tax asset (liability) | — | 3,286 | (1,136 | ) | 4,619 | 6,769 | |||||||||||
| | | | | | | | | | | | | | | | | |
Beginning balance, net of tax | 58,920 | (5,548 | ) | 1,876 | (8,600 | ) | 46,648 | ||||||||||
Other comprehensive income before reclassifications | (44,158 | ) | — | — | (774 | ) | (44,932 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 2,943 | (2,624 | ) | 6,138 | 6,457 | |||||||||||
Tax effects | — | (1,137 | ) | 992 | (1,956 | ) | (2,101 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net current-period other comprehensive income (loss) | (44,158 | ) | 1,806 | (1,632 | ) | 3,408 | (40,576 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
BALANCE at December 31, 2013 | $ | 14,762 | $ | (3,742 | ) | $ | 244 | $ | (5,192 | ) | $ | 6,072 | |||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
The reclassifications out of AOCI and the location on the consolidated statements of income for the years ended December 31, 2014 and 2013 are as follows: | |||||||||||||||||
2014 | 2013 | Affected Line Item | |||||||||||||||
Amortization of defined benefit pension items: | |||||||||||||||||
$ | (496 | ) | $ | (2,943 | ) | Insignificant items | |||||||||||
| | | | | | | | | |||||||||
(496 | ) | (2,943 | ) | Income before taxes | |||||||||||||
178 | 1,137 | Income tax benefit | |||||||||||||||
| | | | | | | | | |||||||||
$ | (318 | ) | $ | (1,806 | ) | Net of tax | |||||||||||
| | | | | | | | | |||||||||
| | | | | | | | | |||||||||
Unrealized gains on retained interests: | |||||||||||||||||
$ | 388 | $ | 2,624 | Insignificant items | |||||||||||||
| | | | | | | | | |||||||||
388 | 2,624 | Income before taxes | |||||||||||||||
(144 | ) | (992 | ) | Income tax provision | |||||||||||||
| | | | | | | | | |||||||||
$ | 244 | $ | 1,632 | Net of tax | |||||||||||||
| | | | | | | | | |||||||||
| | | | | | | | | |||||||||
Unrealized losses on derivatives: | |||||||||||||||||
$ | (4,502 | ) | $ | (6,138 | ) | Interest expense to third parties | |||||||||||
| | | | | | | | | |||||||||
(4,502 | ) | (6,138 | ) | Income before taxes | |||||||||||||
1,545 | 2,162 | Income tax benefit | |||||||||||||||
| | | | | | | | | |||||||||
$ | (2,957 | ) | $ | (3,976 | ) | Net of tax | |||||||||||
| | | | | | | | | |||||||||
| | | | | | | | | |||||||||
RECEIVABLES
RECEIVABLES | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
RECEIVABLES | |||||||||||||||||||||||
RECEIVABLES | |||||||||||||||||||||||
NOTE 4: RECEIVABLES | |||||||||||||||||||||||
A summary of receivables included in the consolidated balance sheets as of December 31, 2014 and 2013 is as follows: | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Retail note receivables | $ | 902,016 | $ | 986,769 | |||||||||||||||||||
Wholesale receivables | 984,832 | 362,870 | |||||||||||||||||||||
Finance lease receivables | 43,061 | 55,964 | |||||||||||||||||||||
Restricted receivables | 10,954,660 | 10,648,814 | |||||||||||||||||||||
Commercial revolving accounts receivables | — | 230,817 | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||
Gross receivables | 12,884,569 | 12,285,234 | |||||||||||||||||||||
Less: | |||||||||||||||||||||||
Allowance for credit losses | (95,542 | ) | (101,953 | ) | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
Total receivables, net | $ | 12,789,027 | $ | 12,183,281 | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
The Company provides and administers financing for retail purchases of new and used equipment sold through CNH Industrial North America's dealer network. The terms of retail and other notes and finance leases generally range from two to six years, and interest rates on retail and other notes and finance leases vary depending on prevailing market interest rates and certain incentive programs offered by CNH Industrial North America. | |||||||||||||||||||||||
Wholesale receivables arise primarily from the 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. Under the standard terms of the wholesale receivable agreements, these receivables typically have interest-free periods of up to twelve months and stated original maturities of up to twenty-four months, with repayment accelerated upon the sale of the underlying equipment by the dealer. During the interest-free period, the Company is compensated by CNH Industrial North America based on market interest rates. After the expiration of any interest-free period, interest is charged to dealers on outstanding balances until the Company receives payment in full. The interest-free periods are determined based on the type of equipment sold and the time of year of the sale. Interest rates are set based on market factors and the prime rate or LIBOR. The Company evaluates and assesses dealers on an ongoing basis as to their creditworthiness. CNH Industrial North America may be obligated to repurchase the dealer's equipment upon cancellation or termination of the dealer's contract for such causes as change in ownership, closeout of the business, or default. There were no significant losses in 2014, 2013 and 2012 relating to the termination of dealer contracts. | |||||||||||||||||||||||
Maturities of retail and other notes, finance leases and wholesale receivables as of December 31, 2014, are as follows: | |||||||||||||||||||||||
2015 | $ | 6,723,364 | |||||||||||||||||||||
2016 | 2,094,648 | ||||||||||||||||||||||
2017 | 1,775,894 | ||||||||||||||||||||||
2018 | 1,313,775 | ||||||||||||||||||||||
2019 and thereafter | 976,888 | ||||||||||||||||||||||
| | | | | |||||||||||||||||||
Total receivables | $ | 12,884,569 | |||||||||||||||||||||
| | | | | |||||||||||||||||||
| | | | | |||||||||||||||||||
It has been the Company's experience that substantial portions of retail receivables are repaid or sold before their contractual maturity dates. As a result, the above table should not be regarded as a forecast of future cash collections. Retail, finance lease and wholesale receivables have significant concentrations of credit risk in the agricultural and construction business sectors. On a geographic basis, there is not a disproportionate concentration of credit risk in any area of the United States or Canada. The Company typically retains, as collateral, a security interest in the equipment associated with retail notes and wholesale receivables. | |||||||||||||||||||||||
Restricted Receivables and Securitization | |||||||||||||||||||||||
As part of its overall funding strategy, the Company periodically transfers certain financial receivables into VIEs that are special purpose entities ("SPEs") as part of its asset-backed securitization 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. None of the receivables that are directly or indirectly sold or transferred in any of these transactions are available to pay the Company's creditors until all obligations of the SPE have been fulfilled or the receivables are removed from the SPE. | |||||||||||||||||||||||
The secured borrowings related to the restricted receivables are obligations that are payable as the receivables are collected. | |||||||||||||||||||||||
The following table summarizes the restricted and off-book receivables and the related retained interests as of December 31, 2014 and 2013: | |||||||||||||||||||||||
Restricted Receivables | Off-Book | Retained | |||||||||||||||||||||
Receivables | Interests | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Retail note receivables | $ | 7,798,882 | $ | 7,431,634 | $ | — | $ | 13,217 | $ | — | $ | 2,853 | |||||||||||
Wholesale receivables | 3,153,814 | 3,210,654 | — | — | — | — | |||||||||||||||||
Finance lease receivables | 1,964 | 6,526 | — | — | — | — | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 10,954,660 | $ | 10,648,814 | $ | — | $ | 13,217 | $ | — | $ | 2,853 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
Retail Receivables Securitizations | |||||||||||||||||||||||
Within the U.S. retail receivables securitization programs, qualifying retail receivables are sold to limited purpose, bankruptcy-remote SPEs. In turn, these SPEs establish separate trusts to which the receivables are transferred in exchange for proceeds from asset-backed securities issued by the trusts. In Canada, the receivables are transferred directly to the trusts. 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 has an 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. | |||||||||||||||||||||||
During the years ended December 31, 2014 and 2013, the Company executed $3,414,656 and $4,405,135, respectively, in retail asset-backed transactions in the U.S. and Canada. The securities in these transactions are backed by agricultural and construction equipment retail receivable contracts and finance leases originated through CNH Industrial North America's dealer network. As of December 31, 2014 and 2013, $6,736,423 and $6,893,949, respectively, of asset-backed securities issued to investors were outstanding with weighted average remaining maturities of 37 months and 41 months, respectively. | |||||||||||||||||||||||
The Company also may retain all or a portion of the subordinated interests in the SPEs. No recourse provisions exist that allow holders of the asset-backed securities issued by the trusts to put those securities back to the Company although the Company provides customary representations and warranties that could give rise to an obligation to repurchase from the trusts any receivables for which there is a breach of the representations and warranties. Moreover, the Company does not guarantee any securities issued by the trusts. The trusts have a limited life and generally terminate upon final distribution of amounts owed to investors or upon exercise of a cleanup-call option by the Company, in its role as servicer. | |||||||||||||||||||||||
The Company also has $1,631,665 in committed asset-backed facilities through which it may sell on a monthly basis retail receivables generated in the United States and Canada. The Company has utilized these facilities in the past to fund the origination of receivables and has later repurchased and resold the receivables in the term ABS markets or found alternative financing for the receivables. The Company believes that it is probable that it will continue to regularly utilize term ABS markets. The U.S. and Canadian facilities had an original funding term of two years and are renewable in September 2016 and December 2016, respectively. To the extent these facilities are not renewed, they will be repaid according to the amortization of the underlying receivables. | |||||||||||||||||||||||
Wholesale Receivables Securitizations | |||||||||||||||||||||||
With regard to the wholesale receivable securitization programs, the Company sells eligible receivables on a revolving basis to structured master trust facilities which are limited-purpose, bankruptcy-remote SPEs. As of December 31, 2014, debt issued through the U.S. master trust facility consists of two facilities renewable at the discretion of the investors: $500,000 and $300,000 both renewable May 2015. In addition to the above facilities, the Company, through a U.S. wholesale trust, issued $367,300 of asset-backed notes with a scheduled final bullet payment in August 2016 secured by a revolving pool of U.S. dealer wholesale receivables. | |||||||||||||||||||||||
The Canadian master trust facility consists of a C$585,750 ($505,695) facility renewable December 2016 at the discretion of the investor. | |||||||||||||||||||||||
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. | |||||||||||||||||||||||
Each of the facilities contains minimum payment rate thresholds which, if breached, could preclude the Company from selling additional receivables originated on a prospective basis and could force an early amortization of the debt. | |||||||||||||||||||||||
Allowance for Credit Losses | |||||||||||||||||||||||
The allowance for credit losses is the Company's estimate of probable losses for receivables owned by the Company and consists of two components, depending on whether the receivable has been individually identified as being impaired. The first component of the allowance for credit losses covers the receivables specifically reviewed by management for which the Company has determined it is probable that it will not collect all the principal and interest payments as per the terms of the contract. Receivables are individually reviewed for impairment based on, among other items, amounts outstanding, days past due and prior collection history. These receivables are subject to impairment measurement at the loan level based either on the present value of expected future cash flows discounted at the receivables' effective interest rate or the fair value of the collateral for collateral-dependent receivables. | |||||||||||||||||||||||
The second component of the allowance for credit losses covers all receivables that have not been individually reviewed for impairment. The allowance for these receivables is based on aggregated portfolio evaluations, generally by financial product. 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 allowance for wholesale credit losses is based on loss forecast models that consider the same factors as the retail models plus dealer risk ratings. The loss forecast models are updated on a quarterly basis. In addition, qualitative factors that are not fully captured in the loss forecast models, including industry trends, and macroeconomic factors 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. | |||||||||||||||||||||||
Charge-offs of principal amounts of receivables outstanding are deducted from the allowance at the point when it is determined to be probable that all amounts due will not be collected. | |||||||||||||||||||||||
The Company's allowance for credit losses is segregated into three portfolio segments: retail, wholesale and other. A portfolio segment is the level at which the Company develops a systematic methodology for determining its allowance for credit losses. The retail segment includes retail notes and finance lease receivables. The wholesale segment includes wholesale financing to CNH Industrial North America dealers, and the other portfolio includes the Company's CRA receivables through October 2014. | |||||||||||||||||||||||
Further, the Company evaluates its portfolio segments by class of receivable: United States and Canada. Typically, the Company's receivables within a geographic area have similar risk profiles and methods for assessing and monitoring risk. These classes align with management reporting. | |||||||||||||||||||||||
Allowance for credit losses activity for the year ended December 31, 2014 is as follows: | |||||||||||||||||||||||
Retail | Wholesale | Other | Total | ||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||
Beginning balance | 87,701 | 7,363 | 6,889 | 101,953 | |||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Charge-offs | (12,426 | ) | (804 | ) | (4,281 | ) | (17,511 | ) | |||||||||||||||
Recoveries | 2,941 | 514 | 2,000 | 5,455 | |||||||||||||||||||
Provision (benefit) | 12,040 | (133 | ) | 2,217 | 14,124 | ||||||||||||||||||
Foreign currency translation and other | (1,559 | ) | (95 | ) | (6,825 | ) | (8,479 | ) | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance | $ | 88,697 | $ | 6,845 | $ | — | $ | 95,542 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: individually evaluated for impairment | $ | 12,736 | $ | 3,329 | $ | — | $ | 16,065 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 75,961 | $ | 3,516 | $ | — | $ | 79,477 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Receivables: | |||||||||||||||||||||||
Ending balance | $ | 8,745,923 | $ | 4,138,646 | $ | — | $ | 12,884,569 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: individually evaluated for impairment | $ | 56,791 | $ | 72,297 | $ | — | $ | 129,088 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 8,689,132 | $ | 4,066,349 | $ | — | $ | 12,755,481 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Allowance for credit losses activity for the year ended December 31, 2013 is as follows: | |||||||||||||||||||||||
Retail | Wholesale | Other | Total | ||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||
Beginning balance | 102,560 | 11,887 | 7,873 | 122,320 | |||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Charge-offs | (14,321 | ) | (238 | ) | (5,780 | ) | (20,339 | ) | |||||||||||||||
Recoveries | 3,488 | 674 | 3,066 | 7,228 | |||||||||||||||||||
Provision (benefit) | (2,778 | ) | (4,901 | ) | 1,775 | (5,904 | ) | ||||||||||||||||
Foreign currency translation and other | (1,248 | ) | (59 | ) | (45 | ) | (1,352 | ) | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance | $ | 87,701 | $ | 7,363 | $ | 6,889 | $ | 101,953 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: individually evaluated for impairment | $ | 12,946 | $ | 3,865 | $ | — | $ | 16,811 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 74,755 | $ | 3,498 | $ | 6,889 | $ | 85,142 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Receivables: | |||||||||||||||||||||||
Ending balance | $ | 8,480,893 | $ | 3,573,524 | $ | 230,817 | $ | 12,285,234 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: individually evaluated for impairment | $ | 44,139 | $ | 30,555 | $ | — | $ | 74,694 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 8,436,754 | $ | 3,542,969 | $ | 230,817 | $ | 12,210,540 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Allowance for credit losses activity for the year ended December 31, 2012 is as follows: | |||||||||||||||||||||||
Retail | Wholesale | Other | Total | ||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||
Beginning balance | 83,233 | 12,163 | 11,277 | 106,673 | |||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Charge-offs | (28,238 | ) | (1,857 | ) | (7,906 | ) | (38,001 | ) | |||||||||||||||
Recoveries | 5,206 | 312 | 3,276 | 8,794 | |||||||||||||||||||
Provision | 42,135 | 1,245 | 1,198 | 44,578 | |||||||||||||||||||
Foreign currency translation and other | 224 | 24 | 28 | 276 | |||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance | $ | 102,560 | $ | 11,887 | $ | 7,873 | $ | 122,320 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: individually evaluated for impairment | $ | 28,266 | $ | 9,512 | $ | — | $ | 37,778 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 74,294 | $ | 2,375 | $ | 7,873 | $ | 84,542 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Receivables: | |||||||||||||||||||||||
Ending balance | 7,363,384 | 3,265,173 | 226,039 | 10,854,596 | |||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: individually evaluated for impairment | $ | 48,195 | $ | 61,752 | $ | — | $ | 109,947 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 7,315,189 | $ | 3,203,421 | $ | 226,039 | $ | 10,744,649 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Utilizing an internal credit scoring model, which considers customers' attributes, prior credit history and each retail transaction's attributes, the Company assigns a credit quality rating to each retail customer, by specific transaction, as part of the retail underwriting process. This rating is used in setting the terms on the transaction, including the interest rate. The credit quality rating is not updated after the transaction is finalized. A description of the general characteristics of the customers' risk grades is as follows: | |||||||||||||||||||||||
Titanium—Customers from whom the Company expects no collection or loss activity. | |||||||||||||||||||||||
Platinum—Customers from whom the Company expects minimal, if any, collection or loss activity. | |||||||||||||||||||||||
Gold, Silver, Bronze—Customers defined as those with the potential for collection or loss activity. | |||||||||||||||||||||||
A breakdown of the retail portfolio by the customer's risk grade at the time of origination as of December 31, 2014 and 2013 is as follows: | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Titanium | $ | 4,866,060 | $ | 4,750,422 | |||||||||||||||||||
Platinum | 2,386,558 | 2,265,690 | |||||||||||||||||||||
Gold | 1,254,335 | 1,239,703 | |||||||||||||||||||||
Silver | 207,682 | 199,575 | |||||||||||||||||||||
Bronze | 31,288 | 25,503 | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||
Total | $ | 8,745,923 | $ | 8,480,893 | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
As part of the ongoing monitoring of the credit quality of the wholesale portfolio, the Company utilizes an internal credit scoring model that assigns a risk grade for each dealer. The scoring model considers the strength of the dealer's financial condition and payment history. The Company considers the dealers' ratings in the quarterly credit allowance analysis. A description of the general characteristics of the dealer risk grades is as follows: | |||||||||||||||||||||||
Grades A and B—Includes receivables due from dealers that have significant capital strength, moderate leverage, stable earnings and growth, and excellent payment performance. | |||||||||||||||||||||||
Grade C—Includes receivables due from dealers with moderate credit risk. Dealers of this grade are differentiated from higher grades on a basis of leverage or payment performance. | |||||||||||||||||||||||
Grade D—Includes receivables due from dealers with additional credit risk. These dealers require additional monitoring due to their weaker financial condition or payment performance. | |||||||||||||||||||||||
A breakdown of the wholesale portfolio by its credit quality indicators as of December 31, 2014 and 2013 is as follows: | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
A | $ | 2,117,160 | $ | 1,981,226 | |||||||||||||||||||
B | 1,572,953 | 1,236,828 | |||||||||||||||||||||
C | 315,825 | 232,101 | |||||||||||||||||||||
D | 132,708 | 123,369 | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||
Total | $ | 4,138,646 | $ | 3,573,524 | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
The following tables present information at the level at which management assesses and monitors its credit risk. 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. | |||||||||||||||||||||||
The aging of receivables as of December 31, 2014 and 2013 is as follows: | |||||||||||||||||||||||
2014 | |||||||||||||||||||||||
31 - 60 Days | 61 - 90 Days | Greater | Total | Current | Total | Recorded | |||||||||||||||||
Past Due | Past Due | Than | Past Due | Receivables | Investment | ||||||||||||||||||
90 Days | > 90 Days | ||||||||||||||||||||||
and | |||||||||||||||||||||||
Accruing | |||||||||||||||||||||||
Retail | |||||||||||||||||||||||
United States | $ | 27,846 | $ | 8,584 | $ | 15,884 | $ | 52,314 | $ | 7,296,162 | $ | 7,348,476 | $ | 5,480 | |||||||||
Canada | $ | 2,721 | $ | 268 | $ | 397 | $ | 3,386 | $ | 1,394,061 | $ | 1,397,447 | $ | 171 | |||||||||
Wholesale | |||||||||||||||||||||||
United States | $ | 882 | $ | 52 | $ | 110 | $ | 1,044 | $ | 3,359,183 | $ | 3,360,227 | $ | 86 | |||||||||
Canada | $ | 181 | $ | — | $ | 3 | $ | 184 | $ | 778,235 | $ | 778,419 | $ | 2 | |||||||||
Total | |||||||||||||||||||||||
Retail | $ | 30,567 | $ | 8,852 | $ | 16,281 | $ | 55,700 | $ | 8,690,223 | $ | 8,745,923 | $ | 5,651 | |||||||||
Wholesale | $ | 1,063 | $ | 52 | $ | 113 | $ | 1,228 | $ | 4,137,418 | $ | 4,138,646 | $ | 88 | |||||||||
2013 | |||||||||||||||||||||||
31 - 60 Days | 61 - 90 Days | Greater | Total | Current | Total | Recorded | |||||||||||||||||
Past Due | Past Due | Than | Past Due | Receivables | Investment | ||||||||||||||||||
90 Days | > 90 Days | ||||||||||||||||||||||
and | |||||||||||||||||||||||
Accruing | |||||||||||||||||||||||
Retail | |||||||||||||||||||||||
United States | $ | 15,167 | $ | 5,135 | $ | 14,154 | $ | 34,456 | $ | 7,011,299 | $ | 7,045,755 | $ | 3,736 | |||||||||
Canada | $ | 2,471 | $ | 206 | $ | 395 | $ | 3,072 | $ | 1,432,066 | $ | 1,435,138 | $ | 25 | |||||||||
Wholesale | |||||||||||||||||||||||
United States | $ | 170 | $ | 36 | $ | 229 | $ | 435 | $ | 2,886,444 | $ | 2,886,879 | $ | 55 | |||||||||
Canada | $ | 213 | $ | — | $ | 32 | $ | 245 | $ | 686,400 | $ | 686,645 | $ | 13 | |||||||||
Total | |||||||||||||||||||||||
Retail | $ | 17,638 | $ | 5,341 | $ | 14,549 | $ | 37,528 | $ | 8,443,365 | $ | 8,480,893 | $ | 3,761 | |||||||||
Wholesale | $ | 383 | $ | 36 | $ | 261 | $ | 680 | $ | 3,572,844 | $ | 3,573,524 | $ | 68 | |||||||||
Impaired receivables are receivables for which the Company has determined it will not collect all the principal and interest payments as per the terms of the contract. As of December 31, 2014 and 2013, the Company's recorded investment in impaired receivables individually evaluated for impairment and the related unpaid principal balances and allowances are as follows: | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Recorded | Unpaid | Related | Recorded | Unpaid | Related | ||||||||||||||||||
Investment | Principal | Allowance | Investment | Principal | Allowance | ||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||
Retail | |||||||||||||||||||||||
United States | $ | 23,420 | $ | 23,164 | $ | — | $ | 16,640 | $ | 16,517 | $ | — | |||||||||||
Canada | $ | 960 | $ | 954 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Wholesale | |||||||||||||||||||||||
United States | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Canada | $ | 11,790 | $ | 11,790 | $ | — | $ | — | $ | — | $ | — | |||||||||||
With an allowance recorded | |||||||||||||||||||||||
Retail | |||||||||||||||||||||||
United States | $ | 31,945 | $ | 31,029 | $ | 12,607 | $ | 26,951 | $ | 26,143 | $ | 12,757 | |||||||||||
Canada | $ | 466 | $ | 459 | $ | 129 | $ | 548 | $ | 547 | $ | 189 | |||||||||||
Wholesale | |||||||||||||||||||||||
United States | $ | 45,868 | $ | 45,623 | $ | 2,220 | $ | 27,693 | $ | 27,532 | $ | 3,442 | |||||||||||
Canada | $ | 14,639 | $ | 14,639 | $ | 1,109 | $ | 2,862 | $ | 2,851 | $ | 423 | |||||||||||
Total | |||||||||||||||||||||||
Retail | $ | 56,791 | $ | 55,606 | $ | 12,736 | $ | 44,139 | $ | 43,207 | $ | 12,946 | |||||||||||
Wholesale | $ | 72,297 | $ | 72,052 | $ | 3,329 | $ | 30,555 | $ | 30,383 | $ | 3,865 | |||||||||||
For the years ended December 31, 2014 and 2013, the Company's average recorded investment in impaired receivables individually evaluated for impairment (based on a thirteen-month average) and the related interest income recognized are as follows: | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||
Investment | Recognized | Investment | Recognized | ||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||
Retail | |||||||||||||||||||||||
United States | $ | 20,867 | $ | 1,112 | $ | 10,861 | $ | 390 | |||||||||||||||
Canada | $ | 975 | $ | 53 | $ | — | $ | — | |||||||||||||||
Wholesale | |||||||||||||||||||||||
United States | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Canada | $ | 21,159 | $ | 679 | $ | — | $ | — | |||||||||||||||
With an allowance recorded | |||||||||||||||||||||||
Retail | |||||||||||||||||||||||
United States | $ | 33,308 | $ | 1,175 | $ | 29,833 | $ | 1,234 | |||||||||||||||
Canada | $ | 510 | $ | 18 | $ | 666 | $ | 22 | |||||||||||||||
Wholesale | |||||||||||||||||||||||
United States | $ | 45,283 | $ | 920 | $ | 30,263 | $ | 854 | |||||||||||||||
Canada | $ | 17,434 | $ | 581 | $ | 3,500 | $ | 125 | |||||||||||||||
Total | |||||||||||||||||||||||
Retail | $ | 55,660 | $ | 2,358 | $ | 41,360 | $ | 1,646 | |||||||||||||||
Wholesale | $ | 83,876 | $ | 2,180 | $ | 33,763 | $ | 979 | |||||||||||||||
Recognition of income is generally suspended when management determines that collection of future finance income is not probable or when an account becomes 120 days delinquent, whichever occurs first. 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 December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Retail | Wholesale | Total | Retail | Wholesale | Total | ||||||||||||||||||
United States | $ | 22,512 | $ | 45,623 | $ | 68,135 | $ | 29,239 | $ | 27,532 | $ | 56,771 | |||||||||||
Canada | $ | 280 | $ | 15,368 | $ | 15,648 | $ | 918 | $ | 2,851 | $ | 3,769 | |||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||
A restructuring of a receivable constitutes a troubled debt restructuring ("TDR") when the lender grants a concession it would not otherwise consider to a borrower 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 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 under the loans based on a credit review, the TDR classification is not removed from the receivable. | |||||||||||||||||||||||
As of December 31, 2014, the Company had approximately 660 retail and finance lease receivable contracts classified as TDRs, of which the pre-modification value was $17,496 and the post-modification value was $15,948. A court has determined the concession in 411 of these cases. The pre-modification value of these contracts was $7,138 and the post-modification value was $5,985. As of December 31, 2013, the Company had approximately 765 retail and finance lease receivable contracts classified as TDRs, of which the pre-modification value was $17,472 and the post-modification value was $15,278. A court has determined the concession in 514 of these cases. The pre-modification value of these contracts was $9,298 and the post-modification value was $7,616. 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 receivable contracts that were modified in a TDR during the previous 12 months ended December 31, 2014 and 2013. | |||||||||||||||||||||||
As of December 31, 2014 and 2013, the Company's wholesale TDRs were immaterial. | |||||||||||||||||||||||
Managed Receivables | |||||||||||||||||||||||
Historical loss and delinquency amounts for the Company's managed receivables for 2014 and 2013 are as follows: | |||||||||||||||||||||||
Principal | Principal More | Net Credit Loss | |||||||||||||||||||||
Amount of | Than 30 Days | (Benefit) for the | |||||||||||||||||||||
Receivables at | Delinquent at | Year Ending | |||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||
2014 | |||||||||||||||||||||||
Type of receivable: | |||||||||||||||||||||||
Retail and other notes and finance leases | $ | 8,745,923 | $ | 55,700 | $ | 11,766 | |||||||||||||||||
Wholesale | 4,138,646 | 1,228 | 290 | ||||||||||||||||||||
| | | | | | | | | | | |||||||||||||
Total managed receivables | $ | 12,884,569 | $ | 56,928 | $ | 12,056 | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
Comprised of receivables: | |||||||||||||||||||||||
Held in portfolio | $ | 12,884,569 | |||||||||||||||||||||
Sold | — | ||||||||||||||||||||||
| | | | | | | | | | | |||||||||||||
Total managed receivables | $ | 12,884,569 | |||||||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
2013 | |||||||||||||||||||||||
Type of receivable: | |||||||||||||||||||||||
Retail and other notes and finance leases | $ | 8,724,927 | $ | 42,039 | $ | 13,898 | |||||||||||||||||
Wholesale | 3,573,524 | 680 | (436 | ) | |||||||||||||||||||
| | | | | | | | | | | |||||||||||||
Total managed receivables | $ | 12,298,451 | $ | 42,719 | $ | 13,462 | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
Comprised of receivables: | |||||||||||||||||||||||
Held in portfolio | $ | 12,285,234 | |||||||||||||||||||||
Sold | 13,217 | ||||||||||||||||||||||
| | | | | | | | | | | |||||||||||||
Total managed receivables | $ | 12,298,451 | |||||||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
EQUIPMENT_ON_OPERATING_LEASES
EQUIPMENT ON OPERATING LEASES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
EQUIPMENT ON OPERATING LEASES | ||||||||
EQUIPMENT ON OPERATING LEASES | ||||||||
NOTE 5: EQUIPMENT ON OPERATING LEASES | ||||||||
A summary of equipment on operating leases as of December 31, 2014 and 2013 is as follows: | ||||||||
2014 | 2013 | |||||||
Equipment on operating leases | $ | 1,657,977 | $ | 1,148,622 | ||||
Accumulated depreciation | (199,652 | ) | (174,315 | ) | ||||
| | | | | | | | |
Equipment on operating leases, net | $ | 1,458,325 | $ | 974,307 | ||||
| | | | | | | | |
| | | | | | | | |
Depreciation expense totaled $141,688, $114,053 and $107,836 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
Lease payments owed to the Company for equipment under non-cancelable operating leases as of December 31, 2014 are as follows: | ||||||||
2015 | $ | 137,836 | ||||||
2016 | 94,417 | |||||||
2017 | 39,333 | |||||||
2018 | 14,007 | |||||||
2019 and thereafter | 3,373 | |||||||
| | | | | ||||
Total lease payments | $ | 288,966 | ||||||
| | | | | ||||
| | | | | ||||
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||||
NOTE 6: GOODWILL AND INTANGIBLE ASSETS | ||||||||
Changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 are as follows: | ||||||||
2014 | 2013 | |||||||
Balance, beginning of year | $ | 115,486 | $ | 117,696 | ||||
Foreign currency translation adjustment | (2,635 | ) | (2,210 | ) | ||||
| | | | | | | | |
Balance, end of year | $ | 112,851 | $ | 115,486 | ||||
| | | | | | | | |
| | | | | | | | |
Goodwill is tested for impairment at least annually. During 2014 and 2013, the Company performed its annual impairment review as of December 31 and concluded that there were no impairments in either year. The Company has no accumulated impairment losses at December 31, 2014. | ||||||||
As of December 31, 2014 and 2013, the Company's intangible asset and related accumulated amortization for its software is as follows: | ||||||||
2014 | 2013 | |||||||
Software | $ | 32,205 | $ | 29,596 | ||||
Accumulated amortization | (23,850 | ) | (22,792 | ) | ||||
| | | | | | | | |
Software, net | $ | 8,355 | $ | 6,804 | ||||
| | | | | | | | |
| | | | | | | | |
The Company recorded amortization expense of $1,125, $1,002 and $1,010 during 2014, 2013 and 2012, respectively. | ||||||||
Based on the current amount of software subject to amortization, the estimated annual amortization expense for each of the succeeding five years is as follows: $1,122 in 2015; $973 in 2016; $812 in 2017; $629 in 2018; and $182 in 2019. | ||||||||
OTHER_ASSETS
OTHER ASSETS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
OTHER ASSETS | ||||||||
OTHER ASSETS | ||||||||
NOTE 7: OTHER ASSETS | ||||||||
The components of other assets as of December 31, 2014 and 2013 are as follows: | ||||||||
2014 | 2013 | |||||||
Tax receivables | $ | 66,872 | $ | 8,917 | ||||
Deferred debt issuance costs | 39,470 | 45,240 | ||||||
Deferred tax assets | 21,146 | — | ||||||
Derivative assets | 7,543 | 6,189 | ||||||
Property and equipment, net | 116 | 151 | ||||||
Prepaid assets | 58 | 53 | ||||||
Other current assets | 10,559 | 10,409 | ||||||
| | | | | | | | |
Total other assets | $ | 145,764 | $ | 70,959 | ||||
| | | | | | | | |
| | | | | | | | |
CREDIT_FACILITIES_AND_DEBT
CREDIT FACILITIES AND DEBT | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
CREDIT FACILITIES AND DEBT | |||||||||||||||||||
CREDIT FACILITIES AND DEBT | |||||||||||||||||||
NOTE 8: CREDIT FACILITIES AND DEBT | |||||||||||||||||||
The following table summarizes the Company's debt and credit facilities, borrowings thereunder and availability at December 31, 2014: | |||||||||||||||||||
2014 | |||||||||||||||||||
Maturity(1) | Total | Short-Term | Current | Long-Term | Available | ||||||||||||||
Facility/Debt | Outstanding | Maturities of | Outstanding | ||||||||||||||||
Long-Term | |||||||||||||||||||
Outstanding | |||||||||||||||||||
Committed Asset-Backed Facilities | |||||||||||||||||||
Retail—U.S. | Sep-16 | $ | 1,200,000 | $ | — | $ | 186,382 | $ | 604,765 | $ | 408,853 | ||||||||
Retail—Canada | Dec-16 | 431,665 | — | 91,497 | 331,396 | 8,772 | |||||||||||||
Wholesale VFN—U.S. | May-15 | 800,000 | 800,000 | — | — | — | |||||||||||||
Wholesale VFN—Canada | Dec-16 | 505,695 | 505,695 | — | — | ||||||||||||||
Leases—U.S. | -2 | 70,800 | — | 54,642 | 16,158 | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Subtotal | 3,008,160 | 1,305,695 | 332,521 | 952,319 | 417,625 | ||||||||||||||
Secured Debt | |||||||||||||||||||
Amortizing retail term ABS—N.A. | Various | 6,734,455 | — | 2,214,854 | 4,519,601 | — | |||||||||||||
Wholesale term—U.S. | Aug-16 | 367,300 | — | — | 367,300 | — | |||||||||||||
Other ABS financing—N.A. | Various | 34,883 | — | 29,138 | 5,745 | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Subtotal | 7,136,638 | — | 2,243,992 | 4,892,646 | — | ||||||||||||||
Unsecured Facilities | |||||||||||||||||||
Revolving credit facilities | Various | 350,000 | — | — | 100,000 | 250,000 | |||||||||||||
Unsecured Debt | |||||||||||||||||||
Notes(3) | Various | 2,848,074 | — | 750,000 | 2,098,074 | — | |||||||||||||
Term loan | 2016 | 150,000 | — | — | 150,000 | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Subtotal | 2,998,074 | — | 750,000 | 2,248,074 | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | |
Total credit facilities and debt | $ | 13,492,872 | $ | 1,305,695 | $ | 3,326,513 | $ | 8,193,039 | $ | 667,625 | |||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
-1 | Maturity dates reflect maturities of the credit facility which may be different than the maturities of the advances under the facility. | ||||||||||||||||||
-2 | Advances under the credit facility ended December 2013; however, the maturities of the debt are due as the underlying leases are collected, which extends beyond 2013. | ||||||||||||||||||
-3 | Includes adjustments related to fair value hedge of $(680) and a discount of $2,606. | ||||||||||||||||||
A summary of the minimum annual repayments of long-term debt as of December 31, 2014, for 2016 and thereafter is as follows: | |||||||||||||||||||
2016 | $ | 3,154,279 | |||||||||||||||||
2017 | 2,086,280 | ||||||||||||||||||
2018 | 2,011,810 | ||||||||||||||||||
2019 | 876,320 | ||||||||||||||||||
2020 and thereafter | 64,350 | ||||||||||||||||||
| | | | | |||||||||||||||
Total | $ | 8,193,039 | |||||||||||||||||
| | | | | |||||||||||||||
| | | | | |||||||||||||||
The following table summarizes the Company's credit facilities, borrowings thereunder and availability at December 31, 2013: | |||||||||||||||||||
2013 | |||||||||||||||||||
Maturity(1) | Total | Short-Term | Current | Long-Term | Available | ||||||||||||||
Facility/Debt | Outstanding | Maturities of | Outstanding | ||||||||||||||||
Long-Term | |||||||||||||||||||
Outstanding | |||||||||||||||||||
Committed Asset-Backed Facilities | |||||||||||||||||||
Retail—U.S. | Sep-15 | $ | 1,200,000 | $ | — | $ | 107,147 | $ | 443,891 | $ | 648,962 | ||||||||
Retail—Canada | Dec-15 | 470,009 | — | 37,380 | 156,422 | 276,207 | |||||||||||||
Wholesale VFN—U.S. | Various | 1,400,000 | 1,400,000 | — | — | — | |||||||||||||
Wholesale VFN—Canada | Dec-15 | 550,615 | 506,566 | — | — | 44,049 | |||||||||||||
Leases—U.S. | -2 | 99,100 | — | 18,698 | 80,402 | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Subtotal | 3,719,724 | 1,906,566 | 163,225 | 680,715 | 969,218 | ||||||||||||||
Secured Debt | |||||||||||||||||||
Amortizing retail term ABS—N.A. | Various | 6,872,706 | — | 2,124,267 | 4,748,439 | — | |||||||||||||
Wholesale term—U.S. | Aug-16 | 367,300 | — | — | 367,300 | — | |||||||||||||
Other ABS financing—N.A. | Various | 145,125 | — | 95,131 | 49,994 | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Subtotal | 7,385,131 | — | 2,219,398 | 5,165,733 | — | ||||||||||||||
Unsecured Facilities | |||||||||||||||||||
Revolving credit facilities | Various | 350,000 | — | — | — | 350,000 | |||||||||||||
Unsecured Debt | |||||||||||||||||||
Notes(3) | Various | 2,349,140 | — | — | 2,349,140 | — | |||||||||||||
Term loan | Jul-16 | 150,000 | — | — | 150,000 | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Subtotal | 2,499,140 | — | — | 2,499,140 | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | |
Total credit facilities and debt | $ | 13,953,995 | $ | 1,906,566 | $ | 2,382,623 | $ | 8,345,588 | $ | 1,319,218 | |||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
-1 | Maturity dates reflect maturities of the credit facility which may be different than the maturities of the advances under the facility. | ||||||||||||||||||
-2 | Advances under the credit facility ended December 2013; however, the maturities of the debt are due as the underlying leases are collected, which extends beyond 2013. | ||||||||||||||||||
-3 | Includes adjustment related to fair value hedge of $860. | ||||||||||||||||||
Committed Asset-Backed Facilities | |||||||||||||||||||
The Company has access to committed asset-backed facilities through which it may sell its receivables. The Company utilizes retail facilities to fund the origination of retail receivables and has exercised the option to periodically repurchase receivables and resell them in the term ABS markets (shown as "Amortizing retail term ABS—N.A.") or found alternative financing for the receivables. Under these facilities, the maximum amount of proceeds that can be accessed at one time is $1,631,665. In addition, if the receivables sold are not repurchased by the Company, the related debt is paid only as the underlying receivables are collected. Such receivables have maturities not exceeding seven years. The Company believes it is probable that a majority of these receivables will be repurchased and resold in the ABS markets. Borrowings against these facilities accrue interest based on prevailing money market or asset-backed commercial paper rates. | |||||||||||||||||||
The Company finances a portion of its wholesale receivable portfolio with the issue of Variable Funding Notes ("VFNs") which are privately subscribed by certain bank and asset-backed commercial paper conduits. These notes accrue interest based on prevailing money market or asset-backed commercial paper rates. | |||||||||||||||||||
Secured Debt | |||||||||||||||||||
Secured borrowings bear interest at either floating rates of LIBOR plus an applicable margin or fixed rates. | |||||||||||||||||||
Unsecured Facilities and Debt | |||||||||||||||||||
As of December 31, 2014, the Company had a $250,000 unsecured credit facility, consisting of a $150,000 term facility and a $100,000 revolving credit facility, with a final maturity in July 2016. Additionally, as of December 31, 2014, the Company had a $250,000 unsecured revolving credit facility, with a final maturity in June 2017. | |||||||||||||||||||
In November 2011, the Company issued $500,000 of debt securities at an annual fixed rate of 6.25% due 2016. The notes, which are senior unsecured obligations of CNH Industrial Capital LLC, are guaranteed by CNH Industrial Capital America and New Holland Credit. | |||||||||||||||||||
In October 2012, the Company issued $750,000 of debt securities at an annual fixed rate of 3.875% due 2015. The notes, which are senior unsecured obligations of CNH Industrial Capital LLC, are guaranteed by CNH Industrial Capital America and New Holland Credit. | |||||||||||||||||||
In April 2013, the Company issued $600,000 of debt securities at an annual fixed rate of 3.625% due 2018. The notes, which are senior unsecured obligations of CNH Industrial Capital LLC, are guaranteed by CNH Industrial Capital America and New Holland Credit. | |||||||||||||||||||
In October 2013, the Company issued $500,000 of debt securities at an annual fixed rate of 3.25% due 2017. The notes, which are senior unsecured obligations of CNH Industrial Capital LLC, are guaranteed by CNH Industrial Capital America and New Holland Credit. | |||||||||||||||||||
In June 2014, the Company issued $500,000 of debt securities at an annual fixed rate of 3.375% due 2019. The notes, which are senior unsecured obligations of CNH Industrial Capital LLC, are guaranteed by CNH Industrial Capital America and New Holland Credit. | |||||||||||||||||||
Covenants | |||||||||||||||||||
The credit agreements governing the Company's unsecured funding transactions contain covenants that restrict the Company's ability and/or that of its subsidiaries to, among other things, incur additional debt, make certain investments, enter into certain types of transactions with affiliates, use assets as security in other transactions, enter into sale or leaseback transactions and/or sell certain assets or merge with or into other companies. In addition, the Company is required to maintain certain coverage levels for leverage and EBITDA, the latter of which is eliminated upon achievement of certain rating levels. | |||||||||||||||||||
Interest Rates | |||||||||||||||||||
The weighted-average interest rate on total short-term debt outstanding at December 31, 2014 and 2013 was 1.2% and 1.1%, respectively. The weighted-average interest rate on total long-term debt (including current maturities of long-term debt) at December 31, 2014 and 2013 was 1.9% and 1.8%, respectively. The average rate is calculated using the actual rates at December 31, 2014 and 2013, weighted by the amount of outstanding borrowings of each debt instrument. | |||||||||||||||||||
Support Agreement | |||||||||||||||||||
Effective as of September 29, 2013, in connection with the merger of CNH Global with and into CNHI, CNHI assumed all of CNH Global's obligations under the support agreement, pursuant to which CNH Global agreed to, among other things, (a) make cash capital contributions to the Company, to the extent necessary to cause the ratio of net earnings available for fixed charges to fixed charges to be not less than 1.05 for each fiscal quarter (with such ratio determined, on a consolidated basis and in accordance with U.S. GAAP, for such fiscal quarter and the immediately preceding three fiscal quarters taken as a whole), (b) generally maintain an ownership of at least 51% of the voting equity interests in the Company and (c) cause the Company to have, as of the end of any fiscal quarter, a consolidated tangible net worth of at least $50 million. The support agreement is not intended to be and is not a guarantee by CNHI of any indebtedness or other obligation of the Company. The obligations of CNHI to the Company pursuant to this support agreement are to the Company only and do not run to, and are not enforceable directly by, any creditor of the Company. The support agreement may be modified, amended or terminated, at CNHI's election, upon thirty days' prior written notice to the Company and the rating agencies, if (a) the modification, amendment or termination would not result in a downgrade of the Company's rated indebtedness; (b) the modification, amendment or notice of termination provides that the support agreement will continue in effect with respect to the Company's rated indebtedness then outstanding; or (c) the Company has no long-term rated indebtedness outstanding. | |||||||||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
INCOME TAXES | |||||||||||
INCOME TAXES | |||||||||||
NOTE 9: INCOME TAXES | |||||||||||
The income and expenses of the Company and certain of its domestic subsidiaries are included in the consolidated income tax return of Case New Holland Inc., a wholly owned subsidiary of CNHI, and parent of CNH Industrial America. The Company's Canadian subsidiaries file separate income tax returns, as do certain domestic subsidiaries. The Company and certain of its domestic subsidiaries are LLCs and, as a result, incur no income tax liability on a stand-alone basis for tax purposes. However, for financial reporting, all tax accounts have been disclosed and the income tax expense is reflective for all of the companies included in the consolidated financial statements. | |||||||||||
The sources of income before taxes for the years ended December 31, 2014, 2013, and 2012 are as follows, with foreign defined as any income earned outside the United States: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Domestic | $ | 291,290 | $ | 300,032 | $ | 248,461 | |||||
Foreign | 95,078 | 101,130 | 81,232 | ||||||||
| | | | | | | | | | | |
Income before taxes | $ | 386,368 | $ | 401,162 | $ | 329,693 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The provision for income taxes for the years ended December 31, 2014, 2013 and 2012 is as follows: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current income tax expense (benefit): | |||||||||||
Domestic | $ | (4,159 | ) | $ | 77,406 | $ | 80,255 | ||||
Foreign | 45,632 | 22,519 | 22,600 | ||||||||
| | | | | | | | | | | |
Total current income tax expense | 41,473 | 99,925 | 102,855 | ||||||||
| | | | | | | | | | | |
Deferred income tax expense (benefit): | |||||||||||
Domestic | 108,836 | 29,497 | 15,848 | ||||||||
Foreign | (23,191 | ) | 5,400 | (2,591 | ) | ||||||
| | | | | | | | | | | |
Total deferred income tax expense | 85,645 | 34,897 | 13,257 | ||||||||
| | | | | | | | | | | |
Total tax provision | $ | 127,118 | $ | 134,822 | $ | 116,112 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
A reconciliation of CNH's statutory and effective income tax rate for the years ended December 31, 2014, 2013, and 2012 is as follows: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Tax provision at statutory rate | 35 | % | 35 | % | 35 | % | |||||
State taxes | 3.2 | 4.5 | 5 | ||||||||
Foreign taxes | (5.0 | ) | (5.0 | ) | (4.7 | ) | |||||
Tax contingencies | (0.1 | ) | 0.1 | (0.3 | ) | ||||||
Tax credits and incentives | (0.1 | ) | (0.2 | ) | (0.3 | ) | |||||
Tax rate and legislative changes | — | — | 0.7 | ||||||||
Other | (0.1 | ) | (0.8 | ) | (0.2 | ) | |||||
| | | | | | | | | | | |
Total tax provision effective rate | 32.9 | % | 33.6 | % | 35.2 | % | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The components of the Company's net deferred tax liability as of December 31, 2014 and 2013 are as follows: | |||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets: | |||||||||||
Pension, postretirement and post-employment benefits | $ | 2,864 | $ | 3,520 | |||||||
Marketing and sales incentive programs | 81,326 | 68,770 | |||||||||
Allowance for credit losses | 33,512 | 33,784 | |||||||||
Other accrued liabilities | 9,868 | 19,814 | |||||||||
Tax loss and tax credit carry forwards | 11,644 | 9,114 | |||||||||
| | | | | | | | ||||
Total deferred tax assets | $ | 139,214 | $ | 135,002 | |||||||
Deferred tax liability: | |||||||||||
Equipment on operating lease | $ | 311,717 | $ | 219,896 | |||||||
| | | | | | | | ||||
Deferred tax liability, net(1) | $ | (172,503 | ) | $ | (84,894 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
-1 | In the accompanying consolidated balance sheets, the US net deferred tax position in 2014 and 2013 is included in "Accounts payable and other accrued liabilities" while the Canadian net deferred tax position is included in "Other assets" in 2014 and "Accounts payable and other accrued liabilities" in 2013. | ||||||||||
Deferred taxes are provided to reflect timing differences between the financial and tax basis of assets and liabilities and tax carryforwards using currently enacted tax rates and laws. Management believes it is more likely than not the benefit of the deferred tax assets will be realized. | |||||||||||
A reconciliation of the gross amounts of tax contingencies at the beginning and end of the year is as follows: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Balance, beginning of year | $ | 5,423 | $ | 5,830 | $ | 6,907 | |||||
Additions based on tax positions related to the current year | — | — | — | ||||||||
Reductions for tax positions of prior years | (492 | ) | (367 | ) | (119 | ) | |||||
Settlements | (4,923 | ) | (40 | ) | (958 | ) | |||||
| | | | | | | | | | | |
Balance, end of year | $ | 8 | $ | 5,423 | $ | 5,830 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The total amount of unrecognized tax benefits that, if recognized, would affect the annual effective income tax rate is $(1,919). | |||||||||||
The Company recognizes interest and penalties accrued related to tax contingencies in income tax expense. During the years ended December 31, 2014, 2013, and 2012, the Company recognized approximately $(3,187), $307, and $(527), respectively, in interest and penalties. The Company had approximately $(424), $2,880, and $2,793 for the expected future payment of interest and penalties accrued at December 31, 2014, 2013, and 2012, respectively. | |||||||||||
During 2014, the Company effectively settled the outstanding audits for tax years 2003 through 2006. The contingency reserve set up for these years amounted to $5,959 and the amount of cash outlays were $4,887, which resulted in a net benefit of $1,072. | |||||||||||
The Company has not provided deferred taxes on $442,000 of undistributed earnings of non-U.S. subsidiaries at December 31, 2014, as the Company's intention continues to be to indefinitely reinvest these earnings in the non-U.S. operations. | |||||||||||
The President of the United States signed the American Taxpayer Relief Act of 2012 on January 2, 2013. Consequently, the lapse of the active financing income exception resulted in a tax detriment of approximately $2,671 in 2012 and a corresponding tax benefit of approximately $2,671 in 2013. | |||||||||||
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
FINANCIAL INSTRUMENTS | ||||||||||||||||||||
FINANCIAL INSTRUMENTS | ||||||||||||||||||||
NOTE 10: FINANCIAL INSTRUMENTS | ||||||||||||||||||||
The Company may elect to measure many financial instruments and certain other items at fair value. This fair value option must be applied on an instrument-by-instrument basis with changes in fair value reported in earnings. The election can be made at the acquisition of an eligible financial asset, financial liability, or firm commitment or when certain specified reconsideration events occur. The fair value election may not be revoked once made. The Company did not elect the fair value measurement option for eligible items. | ||||||||||||||||||||
Fair-Value Hierarchy | ||||||||||||||||||||
U.S. GAAP specifies a hierarchy of valuation techniques 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 internally-developed 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 make use of observable market-based inputs to calculate fair value, in which case the items are classified in Level 2. | ||||||||||||||||||||
If quoted or observable market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters such as interest rates, currency rates, or yield curves. Items valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable. | ||||||||||||||||||||
The following section describes the valuation methodologies used by the Company to measure various financial instruments at fair value, including an indication of the level in the fair value hierarchy in which each instrument is generally classified. Where appropriate, the description includes details of the valuation models and the key inputs to those models, as well as any significant assumptions. | ||||||||||||||||||||
Derivatives | ||||||||||||||||||||
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 issue derivative or other financial instruments for speculative purposes. The credit risk for the interest rate hedges is reduced through diversification among counterparties, utilizing mandatory termination clauses and/or collateral support agreements. Derivative instruments are generally classified in Level 2 or 3 of 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 in cash flow hedging relationships are being used by the Company to mitigate the risk of rising interest rates related to debt and anticipated issuance of fixed-rate debt in future periods. Gains and losses on these instruments, to the extent that the hedge relationship has been effective, 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. Ineffectiveness recognized related to these hedging relationships was not significant for the years ended December 31, 2014, 2013 and 2012. These amounts are recorded in "Other expenses" in the consolidated statements of income. 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 48 months. The after-tax losses deferred in accumulated other comprehensive income that will be recognized in interest expense over the next 12 months are approximately $1,825. | ||||||||||||||||||||
The Company also enters into 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. These facilities require the Company to enter into interest rate derivatives. To ensure that these transactions do not result in the Company being exposed to this risk, the Company enters into an offsetting position. Unrealized and realized gains and losses resulting from fair value changes in these instruments are recognized directly in income and were insignificant for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||
Most of the Company's interest rate derivatives are considered Level 2. The fair market value of these derivatives is calculated using market data input for forecasted benchmark interest rates and can be compared to actively traded derivatives. If the future notional amount of the Company's interest rate derivatives is not known in advance, the derivatives are considered Level 3 derivatives. The fair market value of these derivatives is calculated using market data input and a forecasted future notional balance. The total notional amount of the Company's interest rate derivatives was approximately $3,457,267 and $2,007,460 at December 31, 2014 and 2013, respectively. The thirteen-month average notional amounts as of December 31, 2014 and 2013 were $3,074,793 and $2,732,953, 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" 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. | ||||||||||||||||||||
Financial Statement Impact of the Company's Derivatives | ||||||||||||||||||||
The fair values of the Company's derivatives as of December 31, 2014 and 2013 in the consolidated balance sheets are recorded as follows: | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||
Other assets: | ||||||||||||||||||||
Interest rate derivatives | $ | 680 | $ | 98 | ||||||||||||||||
Accounts payable and other accrued liabilities: | ||||||||||||||||||||
Interest rate derivatives | $ | 212 | $ | 860 | ||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||
Other assets: | ||||||||||||||||||||
Interest rate derivatives | $ | 6,727 | $ | 6,023 | ||||||||||||||||
Foreign exchange contracts | 136 | 68 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Total | $ | 6,863 | $ | 6,091 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Accounts payable and other accrued liabilities: | ||||||||||||||||||||
Interest rate derivatives | $ | 6,727 | $ | 6,023 | ||||||||||||||||
Pre-tax gains (losses) on the consolidated statements of income related to the Company's derivatives for the years ended December 31, 2014, 2013 and 2012 are recorded in the following accounts: | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||
Recognized in accumulated other comprehensive | ||||||||||||||||||||
Income (effective portion) | ||||||||||||||||||||
Interest rate derivatives | $ | (747 | ) | $ | (774 | ) | $ | (254 | ) | |||||||||||
Reclassified from accumulated other comprehensive | ||||||||||||||||||||
income (effective portion) | ||||||||||||||||||||
Interest rate derivatives—Interest expense to third parties | (4,502 | ) | (6,138 | ) | (6,971 | ) | ||||||||||||||
Recognized directly in income (ineffective portion) | ||||||||||||||||||||
Interest rate derivatives—Other expenses | — | — | 20 | |||||||||||||||||
Not Designated as Hedges | ||||||||||||||||||||
Interest rate derivatives—Other expenses | $ | — | $ | — | $ | (53 | ) | |||||||||||||
Foreign exchange contracts—Other expenses | (285 | ) | (138 | ) | 5 | |||||||||||||||
Items Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||
The following tables present for each of the fair-value hierarchy levels the Company's assets and liabilities that are measured at fair value on a recurring basis at December 31, 2014 and 2013: | ||||||||||||||||||||
Level 2 | Level 3 | Total | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Assets | ||||||||||||||||||||
Interest rate derivatives | $ | 7,407 | $ | 6,121 | $ | — | $ | — | $ | 7,407 | $ | 6,121 | ||||||||
Foreign exchange contracts | 136 | 68 | — | — | 136 | 68 | ||||||||||||||
Retained interests | — | — | — | 2,853 | — | 2,853 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total assets | $ | 7,543 | $ | 6,189 | $ | — | $ | 2,853 | $ | 7,543 | $ | 9,042 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities | ||||||||||||||||||||
Interest rate derivatives | $ | 6,939 | $ | 6,883 | $ | — | $ | — | $ | 6,939 | $ | 6,883 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
Total liabilities | $ | 6,939 | $ | 6,883 | $ | — | $ | — | $ | 6,939 | $ | 6,883 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
There were no transfers between Level 1, Level 2 and Level 3 hierarchy levels during the periods presented. | ||||||||||||||||||||
The following table presents the changes in the Level 3 fair-value category for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||
Retained | Derivative | |||||||||||||||||||
Interests | Financial | |||||||||||||||||||
Instruments | ||||||||||||||||||||
Balance at January 1, 2012 | $ | 17,289 | $ | 15 | ||||||||||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||||||
Included in earnings | 1,005 | 65 | ||||||||||||||||||
Included in other comprehensive income (loss) | 1,635 | (80 | ) | |||||||||||||||||
Settlements | (10,658 | ) | — | |||||||||||||||||
| | | | | | | | |||||||||||||
Balance at December 31, 2012 | $ | 9,271 | $ | — | ||||||||||||||||
Total gains or losses (realized/unrealized): | — | |||||||||||||||||||
Included in earnings | 856 | — | ||||||||||||||||||
Included in other comprehensive income (loss) | (284 | ) | ||||||||||||||||||
Settlements | (6,990 | ) | — | |||||||||||||||||
| | | | | | | | |||||||||||||
Balance at December 31, 2013 | $ | 2,853 | $ | — | ||||||||||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||||||
Included in earnings | 220 | — | ||||||||||||||||||
Included in other comprehensive income (loss) | — | — | ||||||||||||||||||
Settlements | (3,073 | ) | — | |||||||||||||||||
| | | | | | | | |||||||||||||
Balance at December 31, 2014 | $ | — | $ | — | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Items Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||||||
The Company may be required, from time to time, to measure certain other financial assets at fair value on a nonrecurring basis in accordance with U.S. GAAP. These adjustments to fair value usually result from application of lower of cost or market accounting or impairment charges of individual assets. | ||||||||||||||||||||
Equipment held for sale measured at fair value on a nonrecurring basis that was held on the consolidated balance sheet at December 31, 2014 was $74,418. The fair market value of these assets is estimated using industry guide book values adjusted for recent remarketing history and is classified as Level 2 under the fair value hierarchy. | ||||||||||||||||||||
Fair Value of Other Financial Instruments | ||||||||||||||||||||
The carrying amount of cash and cash equivalents, restricted cash, 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 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 December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||||||
Amount | Fair Value * | Amount | Fair Value * | |||||||||||||||||
Receivables | $ | 12,789,027 | $ | 12,854,705 | $ | 12,183,281 | $ | 12,216,915 | ||||||||||||
Long-term debt | $ | 8,193,039 | $ | 8,195,209 | $ | 8,345,588 | $ | 8,457,438 | ||||||||||||
* | Under the fair value hierarchy, receivables measurements are classified as Level 3 and long-term debt measurements are classified as Level 2. | |||||||||||||||||||
Financial Assets | ||||||||||||||||||||
The fair value of receivables was determined by discounting the estimated future payments using a discount rate which includes an estimate for credit risk. | ||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||
The fair values of long-term debt were based on current market quotes for identical or similar borrowings and credit risk. | ||||||||||||||||||||
SEGMENT_AND_GEOGRAPHICAL_INFOR
SEGMENT AND GEOGRAPHICAL INFORMATION | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
SEGMENT AND GEOGRAPHICAL INFORMATION | |||||||||||
SEGMENT AND GEOGRAPHICAL INFORMATION | |||||||||||
NOTE 11: SEGMENT AND GEOGRAPHICAL INFORMATION | |||||||||||
The Company's segment data is based on disclosure requirements of accounting guidance on segment reporting, which requires financial information be reported on the basis that is used internally for measuring segment performance. The Company's reportable segments are strategic business units that are organized around differences in geographic areas. Each segment is managed separately as they require different knowledge of regulatory environments and marketing strategies. The operating segments offer primarily the same services within each of the respective segments. | |||||||||||
A summary of the Company's reportable segment information is as follows: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Revenues | |||||||||||
United States | $ | 741,869 | $ | 666,776 | $ | 644,900 | |||||
Canada | 197,769 | 196,479 | 192,196 | ||||||||
Eliminations | (4,887 | ) | (5,134 | ) | (3,092 | ) | |||||
| | | | | | | | | | | |
Total | $ | 934,751 | $ | 858,121 | $ | 834,004 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Interest expense | |||||||||||
United States | $ | 236,835 | $ | 209,435 | $ | 202,208 | |||||
Canada | 54,480 | 53,021 | 54,957 | ||||||||
Eliminations | (4,887 | ) | (5,134 | ) | (3,092 | ) | |||||
| | | | | | | | | | | |
Total | $ | 286,428 | $ | 257,322 | $ | 254,073 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Segment net income | |||||||||||
United States | $ | 186,611 | $ | 197,707 | $ | 152,854 | |||||
Canada | 72,639 | 68,633 | 60,727 | ||||||||
| | | | | | | | | | | |
Total | $ | 259,250 | $ | 266,340 | $ | 213,581 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Depreciation and amortization | |||||||||||
United States | $ | 108,074 | $ | 81,979 | $ | 76,145 | |||||
Canada | 34,778 | 33,113 | 32,757 | ||||||||
| | | | | | | | | | | |
Total | $ | 142,852 | $ | 115,092 | $ | 108,902 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Expenditures for equipment on operating leases | |||||||||||
United States | $ | 861,815 | $ | 501,599 | $ | 355,076 | |||||
Canada | 135,043 | 118,962 | 104,401 | ||||||||
| | | | | | | | | | | |
Total | $ | 996,858 | $ | 620,561 | $ | 459,477 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Provision (benefit) for credit losses | |||||||||||
United States | $ | 10,706 | $ | (9,323 | ) | $ | 33,875 | ||||
Canada | 3,418 | 3,419 | 10,703 | ||||||||
| | | | | | | | | | | |
Total | $ | 14,124 | $ | (5,904 | ) | $ | 44,578 | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
2014 | 2013 | 2012 | |||||||||
Segment assets | |||||||||||
United States | $ | 13,430,826 | $ | 12,536,638 | $ | 11,016,740 | |||||
Canada | 2,693,008 | 2,664,096 | 2,555,140 | ||||||||
Eliminations | (214,269 | ) | (214,030 | ) | (225,351 | ) | |||||
| | | | | | | | | | | |
Total | $ | 15,909,565 | $ | 14,986,704 | $ | 13,346,529 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Managed receivables | |||||||||||
United States | $ | 10,708,704 | $ | 10,147,225 | $ | 8,849,079 | |||||
Canada | 2,175,865 | 2,151,226 | 2,052,884 | ||||||||
| | | | | | | | | | | |
Total | $ | 12,884,569 | $ | 12,298,451 | $ | 10,901,963 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
RELATEDPARTY_TRANSACTIONS_AFFI
RELATED-PARTY TRANSACTIONS/ AFFILIATED DEBT | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
RELATED-PARTY TRANSACTIONS / AFFILIATED DEBT | ||||||||||||||||||||
RELATED-PARTY TRANSACTIONS/ AFFILIATED DEBT | ||||||||||||||||||||
NOTE 12: RELATED-PARTY TRANSACTIONS | ||||||||||||||||||||
The Company receives compensation from CNH Industrial North America for retail installment sales contracts and finance leases that were created under certain low-rate financing programs and interest waiver programs offered to customers by CNH Industrial North America. For selected operating leases, CNH Industrial North America compensates the Company for the difference between the market rental rates and the amount paid by the customer. Similarly, for selected wholesale receivables, CNH Industrial North America and other affiliates compensate the Company for the difference between market rates and the amount paid by the dealer. The Company is also compensated for lending funds to CNH Industrial North America and other affiliates for various purposes. | ||||||||||||||||||||
The summary of sources included in "Interest and other income from affiliates" in the accompanying consolidated statements of income at December 31, 2014, 2013, and 2012 is as follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Retail subsidy from CNH Industrial North America | $ | 228,023 | $ | 219,171 | $ | 209,952 | ||||||||||||||
Wholesale subsidy: | ||||||||||||||||||||
CNH Industrial North America | 161,308 | 158,313 | 148,997 | |||||||||||||||||
Other affiliates | — | 1,584 | 2,784 | |||||||||||||||||
Operating lease subsidy from CNH Industrial North America | 48,035 | 35,889 | 30,376 | |||||||||||||||||
Lending funds: | ||||||||||||||||||||
CNH Industrial North America | — | — | 352 | |||||||||||||||||
Other affiliates | 69 | — | 2 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Total interest and other income from affiliates | $ | 437,435 | $ | 414,957 | $ | 392,463 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Fees charged by affiliates represent payroll and other human resource services CNH Industrial America performs on behalf of the Company. | ||||||||||||||||||||
As of December 31, 2014 and 2013, the Company had various accounts and notes receivable and debt with the following affiliates: | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Rate | Maturity | Amount | Rate | Maturity | Amount | |||||||||||||||
Affiliated receivables from: | ||||||||||||||||||||
CNH Industrial America | 0 | % | — | $ | 39,677 | 0 | % | — | $ | 80,786 | ||||||||||
CNH Industrial Canada Ltd. | 0 | % | — | 6,763 | 0 | % | — | 17,071 | ||||||||||||
Other affiliates | 0 | % | — | 12,291 | 0 | % | — | 12,291 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total affiliated receivables | $ | 58,731 | $ | 110,148 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Affiliated debt owed to: | ||||||||||||||||||||
CNH Industrial America | 3.92 | % | 2014 | $ | 713,230 | 3.92 | % | 2014 | $ | 274,525 | ||||||||||
CNH Industrial Canada Ltd. | 5.05 | % | 2014 | 149,215 | 4.97 | % | 2014 | 76,479 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total affiliated debt | $ | 862,445 | $ | 351,004 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Included in "Other Assets" in the accompanying balance sheets were tax receivables due from related parties of $62,515 and $6,044, respectively, as of December 31, 2014 and 2013. Accounts payable and other accrued liabilities of $5,282 and $3,716, respectively, as of December 31, 2014 and 2013, were payable to related parties. In October 2014, $68,707 of cash was received for tax receivables purchased from CNH Industrial North America and classified as other assets at September 30, 2014. Interest expense to affiliates was $30,477, $24,105 and $34,512, respectively, for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||
In order to utilize the marketing channels for used equipment that exist in CNH Industrial Capital, $19,541 of inventory was transferred from CNH Industrial America at cost at December 31, 2014 and was included in "Equipment held for sale" in the accompanying consolidated balance sheets. | ||||||||||||||||||||
CNH Industrial Canada Ltd., an affiliated entity, owns 76,618,488 shares of preferred stock in CNH Industrial Capital Canada, one of the Company's subsidiaries. This is recorded as "Noncontrolling interest" in the stockholder's equity in the accompanying consolidated balance sheets. These shares earn dividends of 12-month LIBOR plus 1.2% per annum. The dividends are accrued annually and are recorded in "Net income attributed to noncontrolling interest" in the consolidated statements of income. Accrued, but not declared, dividends are included in "Noncontrolling interest" in the stockholder's equity in the accompanying consolidated balance sheets. A dividend of C$25,684 ($23,803) was paid by CNH Industrial Capital Canada to CNH Industrial Canada Ltd. in December 2014, which represented dividends accrued through September 2014. | ||||||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2014 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | |
NOTE 13: 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 $243,235. The guarantees are in effect for the term of the underlying funding facilities, which have various maturities through 2015. | |
Commitments | |
The Company has various agreements to extend credit for the wholesale and dealer financing managed portfolio. At December 31, 2014, the total credit limit available was $6,519,538, of which $4,036,119 was utilized. | |
SUPPLEMENTAL_CONDENSED_CONSOLI
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION | |||||||||||||||||
NOTE 14: SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION | |||||||||||||||||
CNH Industrial Capital America and New Holland Credit, which are 100%-owned subsidiaries of CNH Industrial Capital LLC (the "Guarantor Entities"), guarantee certain indebtedness of CNH Industrial Capital LLC. As the guarantees are full, unconditional, and joint and several and because the Guarantor Entities are 100%-owned by CNH Industrial Capital LLC, the Company has included the following condensed consolidating financial information as of December 31, 2014 and 2013 and for the three years ended December 31, 2014. The condensed consolidating financial information reflects investments in consolidated subsidiaries under the equity method of accounting. | |||||||||||||||||
Condensed Statements of Comprehensive Income for the Year | |||||||||||||||||
Ended December 31, 2014 | |||||||||||||||||
CNH | Guarantor | All Other | Eliminations | Consolidated | |||||||||||||
Industrial | Entities | Subsidiaries | |||||||||||||||
Capital LLC | |||||||||||||||||
REVENUES | |||||||||||||||||
Interest income on retail notes and finance leases | $ | — | $ | 9,696 | $ | 194,756 | $ | — | $ | 204,452 | |||||||
Interest income on wholesale notes | — | (1,292 | ) | 75,742 | — | 74,450 | |||||||||||
Interest and other income from affiliates | 96,352 | 220,950 | 382,145 | (262,012 | ) | 437,435 | |||||||||||
Rental income on operating leases | — | 108,568 | 57,346 | — | 165,914 | ||||||||||||
Other income | — | 142,031 | 7,681 | (97,212 | ) | 52,500 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total revenues | 96,352 | 479,953 | 717,670 | (359,224 | ) | 934,751 | |||||||||||
| | | | | | | | | | | | | | | | | |
EXPENSES | |||||||||||||||||
Interest expense: | |||||||||||||||||
Interest expense to third parties | 124,629 | (7,328 | ) | 138,650 | — | 255,951 | |||||||||||
Interest expense to affiliates | — | 245,133 | 47,356 | (262,012 | ) | 30,477 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total interest expense | 124,629 | 237,805 | 186,006 | (262,012 | ) | 286,428 | |||||||||||
| | | | | | | | | | | | | | | | | |
Administrative and operating expenses: | |||||||||||||||||
Fees charged by affiliates | — | 40,103 | 106,648 | (97,212 | ) | 49,539 | |||||||||||
Provision (benefit) for credit losses | — | (1,300 | ) | 15,424 | — | 14,124 | |||||||||||
Depreciation of equipment on operating leases | — | 93,549 | 48,139 | — | 141,688 | ||||||||||||
Other expenses | 1 | 55,836 | 767 | — | 56,604 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total operating expenses | 1 | 188,188 | 170,978 | (97,212 | ) | 261,955 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total expenses | 124,630 | 425,993 | 356,984 | (359,224 | ) | 548,383 | |||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method | (28,278 | ) | 53,960 | 360,686 | — | 386,368 | |||||||||||
Income tax provision (benefit) | (10,873 | ) | 19,097 | 118,894 | — | 127,118 | |||||||||||
Equity in income of consolidated subsidiaries accounted for under the equity method | 275,428 | 240,565 | (515,993 | ||||||||||||||
— | ) | — | |||||||||||||||
| | | | | | | | | | | | | | | | | |
NET INCOME | 258,023 | 275,428 | 241,792 | (515,993 | ) | 259,250 | |||||||||||
Net income attributed to noncontrolling interest | — | — | (1,227 | ) | — | (1,227 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
NET INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | $ | 258,023 | $ | 275,428 | $ | 240,565 | $ | (515,993 | ) | $ | 258,023 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
COMPREHENSIVE INCOME | $ | 202,023 | $ | 219,428 | $ | 194,587 | $ | (412,788 | ) | $ | 203,250 | ||||||
Comprehensive income attributed to noncontrolling interest | — | — | (1,227 | ) | — | (1,227 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | $ | 202,023 | $ | 219,428 | $ | 193,360 | $ | (412,788 | ) | $ | 202,023 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Balance Sheets as of December 31, 2014 | |||||||||||||||||
CNH | Guarantor | All Other | Eliminations | Consolidated | |||||||||||||
Industrial | Entities | Subsidiaries | |||||||||||||||
Capital LLC | |||||||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | 225,343 | 122,644 | 347,987 | ||||||||||||||
$ | — | $ | $ | $ | — | $ | |||||||||||
Restricted cash | — | 100 | 858,725 | — | 858,825 | ||||||||||||
Receivables, less allowance for credit losses | — | 1,845,524 | 10,943,503 | — | 12,789,027 | ||||||||||||
Affiliated accounts and notes receivable | 2,749,776 | 1,712,656 | 1,365,447 | (5,769,148 | ) | 58,731 | |||||||||||
Equipment on operating leases, net | — | 1,128,542 | 329,783 | — | 1,458,325 | ||||||||||||
Equipment held for sale | — | 121,190 | 8,510 | — | 129,700 | ||||||||||||
Investments in consolidated subsidiaries accounted for under the equity method | 1,923,861 | 2,228,741 | — | (4,152,602 | ) | — | |||||||||||
Goodwill and intangible assets, net | — | 89,927 | 31,279 | — | 121,206 | ||||||||||||
Other assets | 20,778 | 77,597 | 51,637 | (4,248 | ) | 145,764 | |||||||||||
| | | | | | | | | | | | | | | | | |
TOTAL | $ | 4,694,415 | $ | 7,429,620 | $ | 13,711,528 | $ | (9,925,998 | ) | $ | 15,909,565 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDER'S EQUITY | |||||||||||||||||
Liabilities: | |||||||||||||||||
Short-term debt, including current maturities of long-term debt | $ | 750,000 | $ | 19,128 | $ | 3,863,080 | $ | — | $ | 4,632,208 | |||||||
Accounts payable and other accrued liabilities | 56,261 | 2,162,159 | 860,231 | (2,432,710 | ) | 645,941 | |||||||||||
Affiliated debt | — | 3,320,828 | 882,303 | (3,340,686 | ) | 862,445 | |||||||||||
Long-term debt | 2,348,074 | 3,644 | 5,841,321 | — | 8,193,039 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities | 3,154,335 | 5,505,759 | 11,446,935 | (5,773,396 | ) | 14,333,633 | |||||||||||
Stockholder's equity | 1,540,080 | 1,923,861 | 2,264,593 | (4,152,602 | 1,575,932 | ||||||||||||
) | |||||||||||||||||
| | | | | | | | | | | | | | | | | |
TOTAL | $ | 4,694,415 | $ | 7,429,620 | $ | 13,711,528 | $ | (9,925,998 | ) | $ | 15,909,565 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Statements of Cash Flows for the Year Ended | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
CNH | Guarantor | All Other | Eliminations | Consolidated | |||||||||||||
Industrial | Entities | Subsidiaries | |||||||||||||||
Capital LLC | |||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||
Net cash from (used in) operating activities | $ | (483,934 | ) | $ | 178,599 | $ | 556,278 | $ | 291,073 | $ | 542,016 | ||||||
| | | | | | | | | | | | | | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||
Cost of receivables acquired | — | (15,819,248 | ) | (15,532,463 | ) | 12,300,701 | (19,051,010 | ) | |||||||||
Collections of receivables | — | 15,480,203 | 15,062,472 | (12,301,398 | ) | 18,241,277 | |||||||||||
Change in restricted cash | — | — | (86,450 | ) | — | (86,450 | ) | ||||||||||
Purchase of equipment on operating leases, net | — | (665,734 | ) | (61,902 | ) | — | (727,636 | ) | |||||||||
Expenditures for property and equipment | — | (2,676 | ) | (9 | ) | — | (2,685 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net cash from (used in) investing activities | — | (1,007,455 | ) | (618,352 | ) | (697 | ) | (1,626,504 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||
Intercompany activity | — | 832,831 | (17,759 | ) | (290,376 | ) | 524,696 | ||||||||||
Net change in indebtedness | 598,934 | (87,139 | ) | (162,821 | ) | — | 348,974 | ||||||||||
Dividends paid to CNH Industrial America LLC | (115,000 | ) | — | — | — | (115,000 | ) | ||||||||||
Dividends paid to CNH Industrial Canada Ltd. | — | — | (23,803 | ) | — | (23,803 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash from (used in) financing activities | 483,934 | 745,692 | (204,383 | ) | (290,376 | ) | 734,867 | ||||||||||
| | | | | | | | | | | | | | | | | |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | — | (83,164 | ) | (266,457 | ) | — | (349,621 | ) | |||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||
Beginning of year | — | 308,507 | 389,101 | — | 697,608 | ||||||||||||
| | | | | | | | | | | | | | | | | |
End of year | $ | — | $ | 225,343 | $ | 122,644 | $ | — | $ | 347,987 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Statements of Comprehensive Income | |||||||||||||||||
for the Year Ended December 31, 2013 | |||||||||||||||||
CNH | Guarantor | All Other | Eliminations | Consolidated | |||||||||||||
Industrial | Entities | Subsidiaries | |||||||||||||||
Capital LLC | |||||||||||||||||
REVENUES | |||||||||||||||||
Interest income on retail notes and finance leases | $ | — | $ | 572 | $ | 180,770 | $ | — | $ | 181,342 | |||||||
Interest income wholesale notes | (1,001 | ) | 64,761 | — | 63,760 | ||||||||||||
Interest and other income from affiliates | 69,589 | 214,317 | 361,773 | (230,722 | ) | 414,957 | |||||||||||
Rental income on operating leases | — | 80,765 | 58,172 | — | 138,937 | ||||||||||||
Other income | — | 135,543 | 10,088 | (86,506 | ) | 59,125 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total revenues | 69,589 | 430,196 | 675,564 | (317,228 | ) | 858,121 | |||||||||||
| | | | | | | | | | | | | | | | | |
EXPENSES | |||||||||||||||||
Interest expense: | |||||||||||||||||
Interest expense to third parties | 93,941 | 17 | 139,259 | — | 233,217 | ||||||||||||
Interest expense to affiliates | — | 212,552 | 42,275 | (230,722 | ) | 24,105 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total interest expense | 93,941 | 212,569 | 181,534 | (230,722 | ) | 257,322 | |||||||||||
| | | | | | | | | | | | | | | | | |
Administrative and operating expenses: | |||||||||||||||||
Fees charged by affiliates | — | 45,403 | 97,508 | (86,506 | ) | 56,405 | |||||||||||
Provision (benefit) for credit losses, net | — | (13,380 | ) | 7,476 | — | (5,904 | ) | ||||||||||
Depreciation of equipment on operating leases | — | 64,822 | 49,231 | — | 114,053 | ||||||||||||
Other expenses | 1 | 36,575 | (1,493 | ) | — | 35,083 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total administrative and operating expenses | 1 | 133,420 | 152,722 | (86,506 | ) | 199,637 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total expenses | 93,942 | 345,989 | 334,256 | (317,228 | ) | 456,959 | |||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method | (24,353 | ) | 84,207 | 341,308 | — | 401,162 | |||||||||||
Income tax provision (benefit) | (9,393 | 30,212 | 114,003 | 134,822 | |||||||||||||
) | — | ||||||||||||||||
Equity in income of consolidated subsidiaries accounted for under the equity method | 279,840 | 225,845 | — | (505,685 | ) | — | |||||||||||
| | | | | | | | | | | | | | | | | |
NET INCOME | 264,880 | 279,840 | 227,305 | (505,685 | ) | 266,340 | |||||||||||
Net income attributed to noncontrolling interest | (1,460 | (1,460 | |||||||||||||||
— | — | ) | — | ) | |||||||||||||
| | | | | | | | | | | | | | | | | |
NET INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | $ | 264,880 | $ | 279,840 | $ | 225,845 | $ | (505,685 | ) | $ | 264,880 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
COMPREHENSIVE INCOME | $ | 224,304 | $ | 239,262 | $ | 192,320 | $ | (430,122 | ) | $ | 225,764 | ||||||
Comprehensive income attributed to noncontrolling interest | (1,460 | (1,460 | |||||||||||||||
— | — | ) | — | ) | |||||||||||||
| | | | | | | | | | | | | | | | | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | $ | 224,304 | $ | 239,262 | $ | 190,860 | $ | (430,122 | ) | $ | 224,304 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Balance Sheets as of December 31, 2013 | |||||||||||||||||
CNH | Guarantor | All Other | Eliminations | Consolidated | |||||||||||||
Industrial | Entities | Subsidiaries | |||||||||||||||
Capital LLC | |||||||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | 308,507 | 389,101 | 697,608 | ||||||||||||||
$ | — | $ | $ | $ | — | $ | |||||||||||
Restricted cash | — | 100 | 784,408 | — | 784,508 | ||||||||||||
Receivables, less allowance for credit losses | — | 1,504,614 | 10,678,667 | — | 12,183,281 | ||||||||||||
Retained interests in securitized receivables | — | 5,202 | 2,596 | (4,945 | ) | 2,853 | |||||||||||
Affiliated accounts and notes receivable | 2,245,308 | 1,780,263 | 1,462,388 | (5,377,811 | ) | 110,148 | |||||||||||
Equipment on operating leases, net | — | 636,383 | 337,924 | — | 974,307 | ||||||||||||
Equipment held for sale | — | 35,035 | 5,715 | — | 40,750 | ||||||||||||
Investments in consolidated subsidiaries accounted for under the equity method | 1,703,364 | 1,931,092 | — | (3,634,456 | ) | — | |||||||||||
Goodwill and intangible assets | — | 88,376 | 33,914 | — | 122,290 | ||||||||||||
Other assets | 23,142 | 15,857 | 31,960 | — | 70,959 | ||||||||||||
| | | | | | | | | | | | | | | | | |
TOTAL | $ | 3,971,814 | $ | 6,305,429 | $ | 13,726,673 | $ | (9,017,212 | ) | $ | 14,986,704 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDER'S EQUITY | |||||||||||||||||
Liabilities: | |||||||||||||||||
Short-term debt, including current maturities of long-term debt | $ | — | $ | 76,869 | $ | 4,212,320 | $ | — | $ | 4,289,189 | |||||||
Accounts payable and other accrued liabilities | 20,685 | 2,004,157 | 798,110 | (2,332,446 | ) | 490,506 | |||||||||||
Affiliated debt | — | 2,487,997 | 913,317 | (3,050,310 | ) | 351,004 | |||||||||||
Long-term debt | 2,499,140 | 33,042 | 5,813,406 | — | 8,345,588 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities | 2,519,825 | 4,602,065 | 11,737,153 | (5,382,756 | ) | 13,476,287 | |||||||||||
Stockholder's equity | 1,451,989 | 1,703,364 | 1,989,520 | (3,634,456 | 1,510,417 | ||||||||||||
) | |||||||||||||||||
| | | | | | | | | | | | | | | | | |
TOTAL | $ | 3,971,814 | $ | 6,305,429 | $ | 13,726,673 | $ | (9,017,212 | ) | $ | 14,986,704 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Statements of Cash Flows for the Year Ended | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
CNH | Guarantor | All Other | Eliminations | Consolidated | |||||||||||||
Industrial | Entities | Subsidiaries | |||||||||||||||
Capital LLC | |||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||
Net cash from (used in) operating activities | $ | (899,140 | ) | $ | 480,974 | $ | (68,842 | ) | $ | 904,998 | $ | 417,990 | |||||
| | | | | | | | | | | | | | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||
Cost of receivables acquired | — | (16,948,609 | ) | (16,438,038 | ) | 12,754,787 | (20,631,860 | ) | |||||||||
Collections of receivables | — | 16,591,756 | 15,206,469 | (12,754,187 | ) | 19,044,038 | |||||||||||
Change in restricted cash | — | — | (65,756 | ) | — | (65,756 | ) | ||||||||||
Purchase of equipment on operating leases, net | — | (270,607 | ) | (78,600 | ) | — | (349,207 | ) | |||||||||
Other investing activities | — | (3,279 | ) | (41 | ) | — | (3,320 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net cash from (used in) investing activities | — | (630,739 | ) | (1,375,966 | ) | 600 | (2,006,105 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||
Intercompany activity | — | 341,327 | 56,475 | (905,598 | ) | (507,796 | ) | ||||||||||
Net change in indebtedness | 1,099,140 | (140,056 | ) | 1,248,522 | — | 2,207,606 | |||||||||||
Dividends paid to CNH Industrial America LLC | (200,000 | ) | — | — | — | (200,000 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash from (used in) financing activities | 899,140 | 201,271 | 1,304,997 | (905,598 | ) | 1,499,810 | |||||||||||
| | | | | | | | | | | | | | | | | |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | — | 51,506 | (139,811 | ) | — | (88,305 | ) | ||||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||
Beginning of year | — | 257,001 | 528,912 | — | 785,913 | ||||||||||||
| | | | | | | | | | | | | | | | | |
End of year | $ | — | $ | 308,507 | $ | 389,101 | $ | — | $ | 697,608 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Statements of Comprehensive Income for the Year Ended | |||||||||||||||||
December 31, 2012 | |||||||||||||||||
CNH | Guarantor | All Other | Eliminations | Consolidated | |||||||||||||
Industrial | Entities | Subsidiaries | |||||||||||||||
Capital LLC | |||||||||||||||||
REVENUES | |||||||||||||||||
Interest income on retail notes and finance leases | $ | — | $ | 11,488 | $ | 166,956 | $ | — | $ | 178,444 | |||||||
Interest income on wholesale notes | — | (830 | ) | 63,043 | — | 62,213 | |||||||||||
Interest and other income from affiliates | 7,437 | 178,848 | 354,010 | (147,832 | ) | 392,463 | |||||||||||
Rental income on operating leases | — | 82,280 | 51,526 | — | 133,806 | ||||||||||||
Other income | — | 113,748 | 34,780 | (81,450 | ) | 67,078 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total revenues | 7,437 | 385,534 | 670,315 | (229,282 | ) | 834,004 | |||||||||||
| | | | | | | | | | | | | | | | | |
EXPENSES | |||||||||||||||||
Interest expense: | |||||||||||||||||
Interest expense to third parties | 48,848 | 6,838 | 163,875 | — | 219,561 | ||||||||||||
Interest expense to affiliates | 255 | 146,665 | 35,424 | (147,832 | ) | 34,512 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total interest expense | 49,103 | 153,503 | 199,299 | (147,832 | ) | 254,073 | |||||||||||
| | | | | | | | | | | | | | | | | |
Administrative and operating expenses: | |||||||||||||||||
Fees charged by affiliates | — | 50,591 | 92,754 | (81,450 | ) | 61,895 | |||||||||||
Provision (benefit) for credit losses, net | — | (563 | ) | 45,141 | — | 44,578 | |||||||||||
Depreciation of equipment on operating leases | — | 65,107 | 42,729 | — | 107,836 | ||||||||||||
Other expenses | 1 | 32,999 | 2,929 | — | 35,929 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total administrative and operating expenses | 1 | 148,134 | 183,553 | (81,450 | ) | 250,238 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total expenses | 49,104 | 301,637 | 382,852 | (229,282 | ) | 504,311 | |||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method | (41,667 | ) | 83,897 | 287,463 | — | 329,693 | |||||||||||
Income tax provision (benefit) | (16,327 | 33,663 | 98,776 | 116,112 | |||||||||||||
) | — | ||||||||||||||||
Equity in income of consolidated subsidiaries accounted for under the equity method | 237,276 | 187,042 | — | (424,318 | ) | — | |||||||||||
| | | | | | | | | | | | | | | | | |
NET INCOME | 211,936 | 237,276 | 188,687 | (424,318 | ) | 213,581 | |||||||||||
Net income attributed to noncontrolling interest | (1,645 | (1,645 | |||||||||||||||
— | — | ) | — | ) | |||||||||||||
| | | | | | | | | | | | | | | | | |
NET INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | $ | 211,936 | $ | 237,276 | $ | 187,042 | $ | (424,318 | ) | $ | 211,936 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
COMPREHENSIVE INCOME | $ | 229,868 | $ | 255,208 | $ | 204,003 | $ | (457,566 | ) | $ | 231,513 | ||||||
Comprehensive income attributed to noncontrolling interest | (1,645 | (1,645 | |||||||||||||||
— | — | ) | — | ) | |||||||||||||
| | | | | | | | | | | | | | | | | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | $ | 229,868 | $ | 255,208 | $ | 202,358 | $ | (457,566 | ) | $ | 229,868 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Statements of Cash Flows for the Year Ended | |||||||||||||||||
December 31, 2012 | |||||||||||||||||
CNH | Guarantor | All Other | Eliminations | Consolidated | |||||||||||||
Industrial | Entities | Subsidiaries | |||||||||||||||
Capital LLC | |||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||
Net cash from (used in) operating activities | $ | (740,547 | ) | $ | (1,069,674 | ) | $ | 915,730 | $ | 1,421,072 | $ | 526,581 | |||||
| | | | | | | | | | | | | | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||
Cost of receivables acquired | — | (15,802,666 | ) | (17,733,851 | ) | 13,897,290 | (19,639,227 | ) | |||||||||
Collections of receivables | — | 15,499,698 | 16,703,466 | (13,897,223 | ) | 18,305,941 | |||||||||||
Decrease in restricted cash | — | — | 43,589 | — | 43,589 | ||||||||||||
Purchase of equipment on operating leases, net | — | (118,412 | ) | (91,186 | ) | — | (209,598 | ) | |||||||||
Other investing activities | — | (2,300 | ) | (14 | ) | — | (2,314 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net cash from (used in) investing activities | — | (423,680 | ) | (1,077,996 | ) | 67 | (1,501,609 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||
Intercompany activity | (9,453 | ) | 1,543,710 | (69,879 | ) | (1,421,139 | ) | 43,239 | |||||||||
Net change in indebtedness | 750,000 | (99,563 | ) | 473,172 | — | 1,123,609 | |||||||||||
| | | | | | | | | | | | | | | | | |
Net cash from (used in) financing activities | 740,547 | 1,444,147 | 403,293 | (1,421,139 | ) | 1,166,848 | |||||||||||
| | | | | | | | | | | | | | | | | |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | — | (49,207 | ) | 241,027 | — | 191,820 | |||||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||
Beginning of year | — | 306,208 | 287,885 | — | 594,093 | ||||||||||||
| | | | | | | | | | | | | | | | | |
End of year | $ | — | $ | 257,001 | $ | 528,912 | $ | — | $ | 785,913 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
SUPPLEMENTAL_QUARTERLY_INFORMA
SUPPLEMENTAL QUARTERLY INFORMATION (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SUPPLEMENTAL QUARTERLY INFORMATION (UNAUDITED) | |||||||||||||||||
SUPPLEMENTAL QUARTERLY INFORMATION (UNAUDITED) | |||||||||||||||||
NOTE 15: SUPPLEMENTAL QUARTERLY INFORMATION (UNAUDITED) | |||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||
First | Second | Third | Fourth | Fiscal | |||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | |||||||||||||
Revenues | $ | 220,988 | $ | 233,764 | $ | 233,960 | $ | 246,039 | $ | 934,751 | |||||||
Interest expense | 63,128 | 70,669 | 74,115 | 78,516 | 286,428 | ||||||||||||
Administrative and operating expenses | 55,986 | 61,835 | 71,393 | 72,741 | 261,955 | ||||||||||||
Income tax provision | 34,807 | 32,598 | 29,762 | 29,951 | 127,118 | ||||||||||||
Net income attributable to noncontrolling interest | (328 | ) | (334 | ) | (273 | ) | (292 | ) | (1,227 | ) | |||||||
| | | | | | | | | | | | | | | | | |
Net income attributable to CNH Industrial Capital LLC | $ | 66,739 | $ | 68,328 | $ | 58,417 | $ | 64,539 | $ | 258,023 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
For the Year Ended December 31, 2013 | |||||||||||||||||
First | Second | Third | Fourth | Fiscal | |||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | |||||||||||||
Revenues | $ | 205,665 | $ | 212,332 | $ | 218,187 | $ | 221,937 | $ | 858,121 | |||||||
Interest expense | 59,475 | 62,932 | 64,997 | 69,918 | 257,322 | ||||||||||||
Administrative and operating expenses | 52,587 | 42,913 | 52,335 | 51,802 | 199,637 | ||||||||||||
Income tax provision | 29,743 | 37,475 | 35,527 | 32,077 | 134,822 | ||||||||||||
Net income attributable to noncontrolling interest | (418 | ) | (357 | ) | (373 | ) | (312 | ) | (1,460 | ) | |||||||
| | | | | | | | | | | | | | | | | |
Net income attributable to CNH Industrial Capital LLC | $ | 63,442 | $ | 68,655 | $ | 64,955 | $ | 67,828 | $ | 264,880 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | |
NOTE 16: SUBSEQUENT EVENTS | |
On February 26, 2015, the Company, through a bankruptcy-remote trust, issued C$324,853 ($260,904) of amortizing asset-backed notes secured by Canadian retail loan contracts. | |
On March 4, 2015, the Company, through a bankruptcy-remote trust, issued $800,000 of amortizing asset-backed notes secured by U.S. retail loan contracts. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of Consolidation and Basis of Presentation | |
Principles of Consolidation and Basis of Presentation | |
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"). 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. | |
Use of Estimates in the Preparation of Financial Statements | |
Use of Estimates in the Preparation of Financial Statements | |
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 those estimates. | |
Revenue Recognition | |
Revenue Recognition | |
Finance and interest income on retail notes and finance leases and on wholesale notes is recorded using the effective yield method. Deferred costs on the origination of financing receivables are recognized as a reduction in finance revenue over the expected lives of the receivables using the effective yield method. Recognition of income on receivables is suspended when management determines that collection of future income is not probable or when an account becomes 120 days delinquent, whichever occurs earlier. Income accrual is resumed if the receivable becomes contractually current and collection doubts are removed. Previously suspended income is recognized at that time. The Company applies cash received on nonaccrual financing receivables to first reduce any unrecognized interest and then the recorded investment and any other fees. Receivables are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Delinquency is reported on receivables greater than 30 days past due. Charge-offs of principal amounts of receivables outstanding are deducted from the allowance at the point when it is determined to be probable that all amounts due will not be collected. | |
A substantial portion of the Company's interest income arises from retail sales programs offered by CNH Industrial North America on which finance charges are waived or below-market rate financing programs are offered. When the Company acquires retail installment sales contracts and finance leases subject to below-market interest rates, including waived interest rate financing, the Company is compensated by CNH Industrial North America in an amount equal to the present value of the difference between the payments at the customer rate and the payments at the market rate. This amount is initially recognized as an unearned finance charge and is recognized as interest income over the term of the retail notes and finance leases, and is included in "Interest and other income from affiliates" in the accompanying consolidated statements of income. | |
For selected wholesale receivables, CNH Industrial North America compensates the Company for the difference between market interest rates and the amount paid by the dealer. These amounts are included in "Interest and other income from affiliates" in the accompanying consolidated statements of income. | |
The Company is also compensated for lending funds to CNH Industrial North America. The amounts earned are included in "Interest and other income from affiliates" in the accompanying consolidated statements of income. | |
Income from operating leases is recognized over the term of the lease on a straight-line basis. For selected operating leases, CNH Industrial North America compensates the Company for the difference between market rental rates and the amount paid by the customer. The amounts from CNH Industrial North America recognized as rental income on operating leases are included in "Interest and other income from affiliates." | |
Foreign Currency Translation | |
Foreign Currency Translation | |
The Company's non-U.S. subsidiaries maintain their books and accounting records using local currency as the functional currency. Assets and liabilities of these non-U.S. subsidiaries are translated into U.S. dollars at period-end exchange rates, and net exchange gains or losses resulting from such translation are included in "Accumulated other comprehensive income" in the accompanying consolidated balance sheets. Income and expense accounts of these non-U.S. subsidiaries are translated at the average exchange rates for the period, and gains and losses from foreign currency transactions are included in net income in the period that they arise. | |
Cash and Cash Equivalents | |
Cash and Cash Equivalents | |
Cash equivalents are highly liquid investments with an original maturity of three months or less. The carrying value of cash equivalents approximates fair value because of the short maturity of these investments. | |
Restricted Cash | |
Restricted Cash | |
Restricted cash includes principal and interest payments from retail notes and wholesale receivables owned by the consolidated VIEs that are payable to the VIEs' investors, and cash pledged as a credit enhancement to the same investors. These amounts are held by depository banks in order to comply with contractual agreements. | |
Receivables | |
Receivables | |
Receivables are recorded at amortized cost, net of allowances for credit losses and deferred fees and costs. Periodically, the Company sells or transfers retail notes and wholesale receivables to funding facilities or in securitization transactions. In accordance with the accounting guidance regarding transfers of financial assets and the consolidation of VIEs, the majority of the retail notes and wholesale receivables sold in securitizations do not qualify as sales and are recorded as secured borrowings with no gains or losses recognized at the time of securitization. Receivables associated with these securitization transactions and receivables that the Company has the ability and intent to hold for the foreseeable future are classified as held for investment. The substantial majority of the Company's receivables, which include unrestricted receivables and restricted receivables for securitization investors, are classified as held for investment. | |
For those receivable securitizations that qualify as sales and are off-book, the Company retains interest-only strips, servicing rights and cash reserve accounts (collectively, "retained interests"), all of which are recorded at fair value. Changes in these fair values are recorded in other accumulated comprehensive income as an unrealized gain or loss on available-for-sale securities. With regards to other-than-temporary impairments ("OTTI") of debt securities, any OTTI due to changes in the constant prepayment rate and the expected credit loss rate are included in net income. An OTTI due to a change in the discount rates would be included in "Accumulated other comprehensive income" in the accompanying consolidated balance sheets. | |
Allowance for Credit Losses | |
Allowance for Credit Losses | |
The allowance for credit losses is the Company's estimate of probable losses on receivables owned by the Company and consists of two components, depending on whether the receivable has been individually identified as being impaired. The first component of the allowance for credit losses covers the receivables specifically reviewed by management for which the Company has determined it is probable that it will not collect all the principal and interest payments as per the terms of the contract. Receivables are individually reviewed for impairment based on, among other items, amounts outstanding, days past due and prior collection history. These receivables are subject to impairment measurement at the loan level based either on the present value of expected future cash flows discounted at the receivables' effective interest rate or the fair value of the collateral for collateral-dependent receivables. | |
The second component of the allowance for credit losses covers all receivables that have not been individually reviewed for impairment. The allowance for these receivables is based on aggregated portfolio evaluations, generally by financial product. 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 allowance for wholesale credit losses is based on loss forecast models that consider the same factors as the retail models plus dealer risk ratings. The loss forecast models are updated on a quarterly basis. In addition, qualitative factors that are not fully captured in the loss forecast models, including industry trends, and macroeconomic factors, 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. | |
Charge-offs of principal amounts of receivables outstanding are deducted from the allowance at the point when it is determined to be probable that all amounts due will not be collected. | |
Equipment on Operating Leases | |
Equipment on Operating Leases | |
The Company purchases leases and equipment from CNH Industrial North America dealers and other independent third parties that have leased equipment to retail customers under operating leases. The Company's investment in operating leases is based on the purchase price paid for the equipment. Income from these operating leases is recognized over the term of the lease. The equipment is depreciated on a straight-line basis over the term of the lease to the estimated residual value at lease termination. Residual values are estimated at the inception of the lease and are reviewed quarterly. Realization of the residual values is dependent on the Company's future ability to re-market the equipment under then prevailing market conditions. Model changes and updates, as well as market strength and product acceptance, are monitored and adjustments are made to residual values in accordance with the significance of any such changes. Management believes that the estimated residual values are realizable. Expenditures for maintenance and repairs are the responsibility of the lessee. | |
Equipment returned to the Company upon termination of leases and held for subsequent sale or lease is recorded at the lower of net book value or estimated fair value of the equipment, less cost to sell, and is not depreciated. | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | |
Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired. Goodwill is deemed to have an indefinite useful life and is reviewed for impairment at least annually. During 2014 and 2013, the Company performed its annual impairment review as of December 31, and concluded that there was no impairment in either year. Other intangible assets consist of software and are being amortized on a straight-line basis over five years. | |
Income Taxes | |
Income Taxes | |
The provision for income taxes is determined using the asset and liability method. The Company recognizes a current tax liability or asset for the estimated taxes payable or refundable on tax returns for the current year and tax contingencies estimated to be settled with taxing authorities within one year. A deferred tax liability or asset is recognized for the estimated future tax effects attributable to temporary differences and tax loss carryforwards. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized based on available evidence. | |
Derivatives | |
Derivatives | |
The Company's policy is to enter into derivative transactions to manage exposures that arise in the normal course of business and not for trading or speculative purposes. The Company records derivative financial instruments in the consolidated balance sheets as either an asset or liability measured at fair value. The fair value of the Company's interest rate derivatives is based on discounting expected cash flows, using market interest rates, over the remaining term of the instrument. The fair value of the Company's foreign exchange derivatives is based on quoted market exchange rates, adjusted for the respective interest rate differentials (premiums or discounts). Changes in the fair value of derivative financial instruments are recognized in current income unless specific hedge accounting criteria are met. For derivative financial instruments designated to hedge exposure to changes in the fair value of a recognized asset or liability, the gain or loss is recognized in income in the period of change together with the offsetting loss or gain on the related hedged item. For derivative financial instruments designated to hedge exposure to variable cash flows of a forecasted transaction, the effective portion of the derivative financial instrument's gain or loss is initially reported in accumulated other comprehensive income and is subsequently reclassified into income when the forecasted transaction affects income. The ineffective portion of the gain or loss is reported in income immediately. For derivative financial instruments that are not designated as hedges but held as economic hedges, the gain or loss is recognized immediately into income. | |
For derivative financial instruments designated as hedges, the Company formally documents the hedging relationship to the hedged item and its risk management strategy for all derivatives designated as hedges. This includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities contained in the consolidated balance sheets and linking cash flow hedges to specific forecasted transactions or variability of cash flow. The Company assesses the effectiveness of the hedging instrument both at inception and on an ongoing basis. If a derivative is determined not to be highly effective as a hedge, or the underlying hedged transaction is no longer probable of occurring, or the derivative is terminated, the hedge accounting described above is discontinued and the derivative is marked to fair value and recorded in income through the remainder of its term. | |
New Accounting Pronouncements | |
New Accounting Pronouncements Adopted in Prior Years | |
In February 2013, the Financial Accounting Standards Board ("FASB") issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income ("AOCI") ("ASU 2013-02"). Some of the key amendments require the Company to present, either on the face of the statement of operations or in the notes, the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income, but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, the Company is required to cross-reference other disclosures that provide additional detail about those amounts. ASU 2013-02 became effective for the Company's annual and interim periods beginning January 1, 2013. | |
New Accounting Pronouncements Not Yet Adopted | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"). ASU 2014-09 supersedes the revenue recognition requirements in Accounting Standards Codification 605—Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years. The guidance can be applied retrospectively to each prior reporting period present (full retrospective method) or retrospectively with a cumulative effect adjustment to retained earnings for initial application of the guidance at the date of initial adoption (modified retrospective method). The Company is in the process of assessing the impact of the adoption of ASU 2014-09 on its financial position, results of operations and cash flows. | |
In August 2014, the FASB issued ASU No. 2014-15, Uncertainties About an Entity's Ability to Continue as a Going Concern ("ASU 2014-15"). ASU 2014-15 provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date of issuance of the entity's financial statements. An entity must also provide certain disclosures if there is "substantial doubt" about the entity's ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company does not believe the adoption of this standard will have a material impact on its financial position or results of operations. | |
In February 2015, the FASB issued ASU No. 2015-02, Consolidation ("ASU 2015-02"). ASU 2015-02 is intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability companies and securitized structures. The new standard eliminates the previous deferral in Accounting Standards Codification 810, which allowed reporting entities with interests in certain investment funds to follow previously issued consolidations guidance, and makes changes to both the variable interest model and the voting model. ASU 2015-02 is effective for annual periods ending after December 15, 2015. The Company is currently assessing the impact of the adoption of ASU 2015-02 on its financial position, results of operations and cash flows. | |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||||||
Schedule of changes in the components of AOCI and related tax effects | |||||||||||||||||
Currency | Pension | Unrealized | Unrealized | Total | |||||||||||||
Translation | Liability | Gains on | Losses on | ||||||||||||||
Adjustment | Retained | Derivatives | |||||||||||||||
Interests | |||||||||||||||||
Beginning balance, gross | $ | 14,762 | $ | (5,891 | ) | $ | 388 | $ | (7,855 | ) | $ | 1,404 | |||||
Tax asset (liability) | — | 2,149 | (144 | ) | 2,663 | 4,668 | |||||||||||
| | | | | | | | | | | | | | | | | |
Beginning balance, net of tax | 14,762 | (3,742 | ) | 244 | (5,192 | ) | 6,072 | ||||||||||
Other comprehensive income before reclassifications | (57,822 | ) | (1,030 | ) | — | (747 | ) | (59,599 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | — | 496 | (388 | ) | 4,502 | 4,610 | |||||||||||
Tax effects | — | 192 | 144 | (1,347 | ) | (1,011 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net current-period other comprehensive income (loss) | (57,822 | ) | (342 | ) | (244 | ) | 2,408 | (56,000 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
BALANCE at December 31, 2014 | $ | (43,060 | ) | $ | (4,084 | ) | $ | — | $ | (2,784 | ) | $ | (49,928 | ) | |||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Currency | Pension | Unrealized | Unrealized | Total | |||||||||||||
Translation | Liability | Gains on | Losses on | ||||||||||||||
Adjustment | Retained | Derivatives | |||||||||||||||
Interests | |||||||||||||||||
Beginning balance, gross | $ | 58,920 | $ | (8,834 | ) | $ | 3,012 | $ | (13,219 | ) | $ | 39,879 | |||||
Tax asset (liability) | — | 3,286 | (1,136 | ) | 4,619 | 6,769 | |||||||||||
| | | | | | | | | | | | | | | | | |
Beginning balance, net of tax | 58,920 | (5,548 | ) | 1,876 | (8,600 | ) | 46,648 | ||||||||||
Other comprehensive income before reclassifications | (44,158 | ) | — | — | (774 | ) | (44,932 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 2,943 | (2,624 | ) | 6,138 | 6,457 | |||||||||||
Tax effects | — | (1,137 | ) | 992 | (1,956 | ) | (2,101 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net current-period other comprehensive income (loss) | (44,158 | ) | 1,806 | (1,632 | ) | 3,408 | (40,576 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
BALANCE at December 31, 2013 | $ | 14,762 | $ | (3,742 | ) | $ | 244 | $ | (5,192 | ) | $ | 6,072 | |||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Schedule of reclassifications out of AOCI and the location on the consolidated statements of income | |||||||||||||||||
2014 | 2013 | Affected Line Item | |||||||||||||||
Amortization of defined benefit pension items: | |||||||||||||||||
$ | (496 | ) | $ | (2,943 | ) | Insignificant items | |||||||||||
| | | | | | | | | |||||||||
(496 | ) | (2,943 | ) | Income before taxes | |||||||||||||
178 | 1,137 | Income tax benefit | |||||||||||||||
| | | | | | | | | |||||||||
$ | (318 | ) | $ | (1,806 | ) | Net of tax | |||||||||||
| | | | | | | | | |||||||||
| | | | | | | | | |||||||||
Unrealized gains on retained interests: | |||||||||||||||||
$ | 388 | $ | 2,624 | Insignificant items | |||||||||||||
| | | | | | | | | |||||||||
388 | 2,624 | Income before taxes | |||||||||||||||
(144 | ) | (992 | ) | Income tax provision | |||||||||||||
| | | | | | | | | |||||||||
$ | 244 | $ | 1,632 | Net of tax | |||||||||||||
| | | | | | | | | |||||||||
| | | | | | | | | |||||||||
Unrealized losses on derivatives: | |||||||||||||||||
$ | (4,502 | ) | $ | (6,138 | ) | Interest expense to third parties | |||||||||||
| | | | | | | | | |||||||||
(4,502 | ) | (6,138 | ) | Income before taxes | |||||||||||||
1,545 | 2,162 | Income tax benefit | |||||||||||||||
| | | | | | | | | |||||||||
$ | (2,957 | ) | $ | (3,976 | ) | Net of tax | |||||||||||
| | | | | | | | | |||||||||
| | | | | | | | | |||||||||
RECEIVABLES_Tables
RECEIVABLES (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Receivables | |||||||||||||||||||||||
Summary of receivables | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Retail note receivables | $ | 902,016 | $ | 986,769 | |||||||||||||||||||
Wholesale receivables | 984,832 | 362,870 | |||||||||||||||||||||
Finance lease receivables | 43,061 | 55,964 | |||||||||||||||||||||
Restricted receivables | 10,954,660 | 10,648,814 | |||||||||||||||||||||
Commercial revolving accounts receivables | — | 230,817 | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||
Gross receivables | 12,884,569 | 12,285,234 | |||||||||||||||||||||
Less: | |||||||||||||||||||||||
Allowance for credit losses | (95,542 | ) | (101,953 | ) | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
Total receivables, net | $ | 12,789,027 | $ | 12,183,281 | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
Schedule of maturities of retail and other notes, finance leases, wholesale receivables and commercial revolving accounts receivables | |||||||||||||||||||||||
2015 | $ | 6,723,364 | |||||||||||||||||||||
2016 | 2,094,648 | ||||||||||||||||||||||
2017 | 1,775,894 | ||||||||||||||||||||||
2018 | 1,313,775 | ||||||||||||||||||||||
2019 and thereafter | 976,888 | ||||||||||||||||||||||
| | | | | |||||||||||||||||||
Total receivables | $ | 12,884,569 | |||||||||||||||||||||
| | | | | |||||||||||||||||||
| | | | | |||||||||||||||||||
Summary of restricted and off-book receivables and the related retained interests | |||||||||||||||||||||||
Restricted Receivables | Off-Book | Retained | |||||||||||||||||||||
Receivables | Interests | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Retail note receivables | $ | 7,798,882 | $ | 7,431,634 | $ | — | $ | 13,217 | $ | — | $ | 2,853 | |||||||||||
Wholesale receivables | 3,153,814 | 3,210,654 | — | — | — | — | |||||||||||||||||
Finance lease receivables | 1,964 | 6,526 | — | — | — | — | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 10,954,660 | $ | 10,648,814 | $ | — | $ | 13,217 | $ | — | $ | 2,853 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Schedule of allowance for credit losses activity | Allowance for credit losses activity for the year ended December 31, 2014 is as follows: | ||||||||||||||||||||||
Retail | Wholesale | Other | Total | ||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||
Beginning balance | 87,701 | 7,363 | 6,889 | 101,953 | |||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Charge-offs | (12,426 | ) | (804 | ) | (4,281 | ) | (17,511 | ) | |||||||||||||||
Recoveries | 2,941 | 514 | 2,000 | 5,455 | |||||||||||||||||||
Provision (benefit) | 12,040 | (133 | ) | 2,217 | 14,124 | ||||||||||||||||||
Foreign currency translation and other | (1,559 | ) | (95 | ) | (6,825 | ) | (8,479 | ) | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance | $ | 88,697 | $ | 6,845 | $ | — | $ | 95,542 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: individually evaluated for impairment | $ | 12,736 | $ | 3,329 | $ | — | $ | 16,065 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 75,961 | $ | 3,516 | $ | — | $ | 79,477 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Receivables: | |||||||||||||||||||||||
Ending balance | $ | 8,745,923 | $ | 4,138,646 | $ | — | $ | 12,884,569 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: individually evaluated for impairment | $ | 56,791 | $ | 72,297 | $ | — | $ | 129,088 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 8,689,132 | $ | 4,066,349 | $ | — | $ | 12,755,481 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Allowance for credit losses activity for the year ended December 31, 2013 is as follows: | |||||||||||||||||||||||
Retail | Wholesale | Other | Total | ||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||
Beginning balance | 102,560 | 11,887 | 7,873 | 122,320 | |||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Charge-offs | (14,321 | ) | (238 | ) | (5,780 | ) | (20,339 | ) | |||||||||||||||
Recoveries | 3,488 | 674 | 3,066 | 7,228 | |||||||||||||||||||
Provision (benefit) | (2,778 | ) | (4,901 | ) | 1,775 | (5,904 | ) | ||||||||||||||||
Foreign currency translation and other | (1,248 | ) | (59 | ) | (45 | ) | (1,352 | ) | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance | $ | 87,701 | $ | 7,363 | $ | 6,889 | $ | 101,953 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: individually evaluated for impairment | $ | 12,946 | $ | 3,865 | $ | — | $ | 16,811 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 74,755 | $ | 3,498 | $ | 6,889 | $ | 85,142 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Receivables: | |||||||||||||||||||||||
Ending balance | $ | 8,480,893 | $ | 3,573,524 | $ | 230,817 | $ | 12,285,234 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: individually evaluated for impairment | $ | 44,139 | $ | 30,555 | $ | — | $ | 74,694 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 8,436,754 | $ | 3,542,969 | $ | 230,817 | $ | 12,210,540 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Allowance for credit losses activity for the year ended December 31, 2012 is as follows: | |||||||||||||||||||||||
Retail | Wholesale | Other | Total | ||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||
Beginning balance | 83,233 | 12,163 | 11,277 | 106,673 | |||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Charge-offs | (28,238 | ) | (1,857 | ) | (7,906 | ) | (38,001 | ) | |||||||||||||||
Recoveries | 5,206 | 312 | 3,276 | 8,794 | |||||||||||||||||||
Provision | 42,135 | 1,245 | 1,198 | 44,578 | |||||||||||||||||||
Foreign currency translation and other | 224 | 24 | 28 | 276 | |||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance | $ | 102,560 | $ | 11,887 | $ | 7,873 | $ | 122,320 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: individually evaluated for impairment | $ | 28,266 | $ | 9,512 | $ | — | $ | 37,778 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 74,294 | $ | 2,375 | $ | 7,873 | $ | 84,542 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Receivables: | |||||||||||||||||||||||
Ending balance | 7,363,384 | 3,265,173 | 226,039 | 10,854,596 | |||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: individually evaluated for impairment | $ | 48,195 | $ | 61,752 | $ | — | $ | 109,947 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 7,315,189 | $ | 3,203,421 | $ | 226,039 | $ | 10,744,649 | |||||||||||||||
| | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | ||||||||||
Schedule of aging of financing receivables | |||||||||||||||||||||||
2014 | |||||||||||||||||||||||
31 - 60 Days | 61 - 90 Days | Greater | Total | Current | Total | Recorded | |||||||||||||||||
Past Due | Past Due | Than | Past Due | Receivables | Investment | ||||||||||||||||||
90 Days | > 90 Days | ||||||||||||||||||||||
and | |||||||||||||||||||||||
Accruing | |||||||||||||||||||||||
Retail | |||||||||||||||||||||||
United States | $ | 27,846 | $ | 8,584 | $ | 15,884 | $ | 52,314 | $ | 7,296,162 | $ | 7,348,476 | $ | 5,480 | |||||||||
Canada | $ | 2,721 | $ | 268 | $ | 397 | $ | 3,386 | $ | 1,394,061 | $ | 1,397,447 | $ | 171 | |||||||||
Wholesale | |||||||||||||||||||||||
United States | $ | 882 | $ | 52 | $ | 110 | $ | 1,044 | $ | 3,359,183 | $ | 3,360,227 | $ | 86 | |||||||||
Canada | $ | 181 | $ | — | $ | 3 | $ | 184 | $ | 778,235 | $ | 778,419 | $ | 2 | |||||||||
Total | |||||||||||||||||||||||
Retail | $ | 30,567 | $ | 8,852 | $ | 16,281 | $ | 55,700 | $ | 8,690,223 | $ | 8,745,923 | $ | 5,651 | |||||||||
Wholesale | $ | 1,063 | $ | 52 | $ | 113 | $ | 1,228 | $ | 4,137,418 | $ | 4,138,646 | $ | 88 | |||||||||
2013 | |||||||||||||||||||||||
31 - 60 Days | 61 - 90 Days | Greater | Total | Current | Total | Recorded | |||||||||||||||||
Past Due | Past Due | Than | Past Due | Receivables | Investment | ||||||||||||||||||
90 Days | > 90 Days | ||||||||||||||||||||||
and | |||||||||||||||||||||||
Accruing | |||||||||||||||||||||||
Retail | |||||||||||||||||||||||
United States | $ | 15,167 | $ | 5,135 | $ | 14,154 | $ | 34,456 | $ | 7,011,299 | $ | 7,045,755 | $ | 3,736 | |||||||||
Canada | $ | 2,471 | $ | 206 | $ | 395 | $ | 3,072 | $ | 1,432,066 | $ | 1,435,138 | $ | 25 | |||||||||
Wholesale | |||||||||||||||||||||||
United States | $ | 170 | $ | 36 | $ | 229 | $ | 435 | $ | 2,886,444 | $ | 2,886,879 | $ | 55 | |||||||||
Canada | $ | 213 | $ | — | $ | 32 | $ | 245 | $ | 686,400 | $ | 686,645 | $ | 13 | |||||||||
Total | |||||||||||||||||||||||
Retail | $ | 17,638 | $ | 5,341 | $ | 14,549 | $ | 37,528 | $ | 8,443,365 | $ | 8,480,893 | $ | 3,761 | |||||||||
Wholesale | $ | 383 | $ | 36 | $ | 261 | $ | 680 | $ | 3,572,844 | $ | 3,573,524 | $ | 68 | |||||||||
Schedule of recorded investment in impaired receivables and the related unpaid principal balances and allowances | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Recorded | Unpaid | Related | Recorded | Unpaid | Related | ||||||||||||||||||
Investment | Principal | Allowance | Investment | Principal | Allowance | ||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||
Retail | |||||||||||||||||||||||
United States | $ | 23,420 | $ | 23,164 | $ | — | $ | 16,640 | $ | 16,517 | $ | — | |||||||||||
Canada | $ | 960 | $ | 954 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Wholesale | |||||||||||||||||||||||
United States | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Canada | $ | 11,790 | $ | 11,790 | $ | — | $ | — | $ | — | $ | — | |||||||||||
With an allowance recorded | |||||||||||||||||||||||
Retail | |||||||||||||||||||||||
United States | $ | 31,945 | $ | 31,029 | $ | 12,607 | $ | 26,951 | $ | 26,143 | $ | 12,757 | |||||||||||
Canada | $ | 466 | $ | 459 | $ | 129 | $ | 548 | $ | 547 | $ | 189 | |||||||||||
Wholesale | |||||||||||||||||||||||
United States | $ | 45,868 | $ | 45,623 | $ | 2,220 | $ | 27,693 | $ | 27,532 | $ | 3,442 | |||||||||||
Canada | $ | 14,639 | $ | 14,639 | $ | 1,109 | $ | 2,862 | $ | 2,851 | $ | 423 | |||||||||||
Total | |||||||||||||||||||||||
Retail | $ | 56,791 | $ | 55,606 | $ | 12,736 | $ | 44,139 | $ | 43,207 | $ | 12,946 | |||||||||||
Wholesale | $ | 72,297 | $ | 72,052 | $ | 3,329 | $ | 30,555 | $ | 30,383 | $ | 3,865 | |||||||||||
Schedule of average recorded investment in impaired receivables and the related interest income recognized | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||
Investment | Recognized | Investment | Recognized | ||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||
Retail | |||||||||||||||||||||||
United States | $ | 20,867 | $ | 1,112 | $ | 10,861 | $ | 390 | |||||||||||||||
Canada | $ | 975 | $ | 53 | $ | — | $ | — | |||||||||||||||
Wholesale | |||||||||||||||||||||||
United States | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Canada | $ | 21,159 | $ | 679 | $ | — | $ | — | |||||||||||||||
With an allowance recorded | |||||||||||||||||||||||
Retail | |||||||||||||||||||||||
United States | $ | 33,308 | $ | 1,175 | $ | 29,833 | $ | 1,234 | |||||||||||||||
Canada | $ | 510 | $ | 18 | $ | 666 | $ | 22 | |||||||||||||||
Wholesale | |||||||||||||||||||||||
United States | $ | 45,283 | $ | 920 | $ | 30,263 | $ | 854 | |||||||||||||||
Canada | $ | 17,434 | $ | 581 | $ | 3,500 | $ | 125 | |||||||||||||||
Total | |||||||||||||||||||||||
Retail | $ | 55,660 | $ | 2,358 | $ | 41,360 | $ | 1,646 | |||||||||||||||
Wholesale | $ | 83,876 | $ | 2,180 | $ | 33,763 | $ | 979 | |||||||||||||||
Schedule of receivables on nonaccrual status | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Retail | Wholesale | Total | Retail | Wholesale | Total | ||||||||||||||||||
United States | $ | 22,512 | $ | 45,623 | $ | 68,135 | $ | 29,239 | $ | 27,532 | $ | 56,771 | |||||||||||
Canada | $ | 280 | $ | 15,368 | $ | 15,648 | $ | 918 | $ | 2,851 | $ | 3,769 | |||||||||||
Schedule of historical loss and delinquency amounts for the Company's managed receivables | |||||||||||||||||||||||
Principal | Principal More | Net Credit Loss | |||||||||||||||||||||
Amount of | Than 30 Days | (Benefit) for the | |||||||||||||||||||||
Receivables at | Delinquent at | Year Ending | |||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||
2014 | |||||||||||||||||||||||
Type of receivable: | |||||||||||||||||||||||
Retail and other notes and finance leases | $ | 8,745,923 | $ | 55,700 | $ | 11,766 | |||||||||||||||||
Wholesale | 4,138,646 | 1,228 | 290 | ||||||||||||||||||||
| | | | | | | | | | | |||||||||||||
Total managed receivables | $ | 12,884,569 | $ | 56,928 | $ | 12,056 | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
Comprised of receivables: | |||||||||||||||||||||||
Held in portfolio | $ | 12,884,569 | |||||||||||||||||||||
Sold | — | ||||||||||||||||||||||
| | | | | | | | | | | |||||||||||||
Total managed receivables | $ | 12,884,569 | |||||||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
2013 | |||||||||||||||||||||||
Type of receivable: | |||||||||||||||||||||||
Retail and other notes and finance leases | $ | 8,724,927 | $ | 42,039 | $ | 13,898 | |||||||||||||||||
Wholesale | 3,573,524 | 680 | (436 | ) | |||||||||||||||||||
| | | | | | | | | | | |||||||||||||
Total managed receivables | $ | 12,298,451 | $ | 42,719 | $ | 13,462 | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
Comprised of receivables: | |||||||||||||||||||||||
Held in portfolio | $ | 12,285,234 | |||||||||||||||||||||
Sold | 13,217 | ||||||||||||||||||||||
| | | | | | | | | | | |||||||||||||
Total managed receivables | $ | 12,298,451 | |||||||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
Retail | |||||||||||||||||||||||
Receivables | |||||||||||||||||||||||
Schedule of breakdown of the portfolio by its credit quality indicators | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Titanium | $ | 4,866,060 | $ | 4,750,422 | |||||||||||||||||||
Platinum | 2,386,558 | 2,265,690 | |||||||||||||||||||||
Gold | 1,254,335 | 1,239,703 | |||||||||||||||||||||
Silver | 207,682 | 199,575 | |||||||||||||||||||||
Bronze | 31,288 | 25,503 | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||
Total | $ | 8,745,923 | $ | 8,480,893 | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
Wholesale | |||||||||||||||||||||||
Receivables | |||||||||||||||||||||||
Schedule of breakdown of the portfolio by its credit quality indicators | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
A | $ | 2,117,160 | $ | 1,981,226 | |||||||||||||||||||
B | 1,572,953 | 1,236,828 | |||||||||||||||||||||
C | 315,825 | 232,101 | |||||||||||||||||||||
D | 132,708 | 123,369 | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||
Total | $ | 4,138,646 | $ | 3,573,524 | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
EQUIPMENT_ON_OPERATING_LEASES_
EQUIPMENT ON OPERATING LEASES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
EQUIPMENT ON OPERATING LEASES | ||||||||
Summary of equipment on operating leases | ||||||||
2014 | 2013 | |||||||
Equipment on operating leases | $ | 1,657,977 | $ | 1,148,622 | ||||
Accumulated depreciation | (199,652 | ) | (174,315 | ) | ||||
| | | | | | | | |
Equipment on operating leases, net | $ | 1,458,325 | $ | 974,307 | ||||
| | | | | | | | |
| | | | | | | | |
Schedule of lease payments owed to the Company for equipment under non-cancelable operating leases | ||||||||
2015 | $ | 137,836 | ||||||
2016 | 94,417 | |||||||
2017 | 39,333 | |||||||
2018 | 14,007 | |||||||
2019 and thereafter | 3,373 | |||||||
| | | | | ||||
Total lease payments | $ | 288,966 | ||||||
| | | | | ||||
| | | | | ||||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||||
Schedule of changes in the carrying amount of goodwill | ||||||||
2014 | 2013 | |||||||
Balance, beginning of year | $ | 115,486 | $ | 117,696 | ||||
Foreign currency translation adjustment | (2,635 | ) | (2,210 | ) | ||||
| | | | | | | | |
Balance, end of year | $ | 112,851 | $ | 115,486 | ||||
| | | | | | | | |
| | | | | | | | |
Schedule of the Company's intangible asset and related accumulated amortization for its software | ||||||||
2014 | 2013 | |||||||
Software | $ | 32,205 | $ | 29,596 | ||||
Accumulated amortization | (23,850 | ) | (22,792 | ) | ||||
| | | | | | | | |
Software, net | $ | 8,355 | $ | 6,804 | ||||
| | | | | | | | |
| | | | | | | | |
OTHER_ASSETS_Tables
OTHER ASSETS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
OTHER ASSETS | ||||||||
Schedule of components of other assets | ||||||||
2014 | 2013 | |||||||
Tax receivables | $ | 66,872 | $ | 8,917 | ||||
Deferred debt issuance costs | 39,470 | 45,240 | ||||||
Deferred tax assets | 21,146 | — | ||||||
Derivative assets | 7,543 | 6,189 | ||||||
Property and equipment, net | 116 | 151 | ||||||
Prepaid assets | 58 | 53 | ||||||
Other current assets | 10,559 | 10,409 | ||||||
| | | | | | | | |
Total other assets | $ | 145,764 | $ | 70,959 | ||||
| | | | | | | | |
| | | | | | | | |
CREDIT_FACILITIES_AND_DEBT_Tab
CREDIT FACILITIES AND DEBT (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
CREDIT FACILITIES AND DEBT | |||||||||||||||||||
Schedule of the Company's debt and credit facilities, borrowings thereunder and availability | |||||||||||||||||||
2014 | |||||||||||||||||||
Maturity(1) | Total | Short-Term | Current | Long-Term | Available | ||||||||||||||
Facility/Debt | Outstanding | Maturities of | Outstanding | ||||||||||||||||
Long-Term | |||||||||||||||||||
Outstanding | |||||||||||||||||||
Committed Asset-Backed Facilities | |||||||||||||||||||
Retail—U.S. | Sep-16 | $ | 1,200,000 | $ | — | $ | 186,382 | $ | 604,765 | $ | 408,853 | ||||||||
Retail—Canada | Dec-16 | 431,665 | — | 91,497 | 331,396 | 8,772 | |||||||||||||
Wholesale VFN—U.S. | May-15 | 800,000 | 800,000 | — | — | — | |||||||||||||
Wholesale VFN—Canada | Dec-16 | 505,695 | 505,695 | — | — | ||||||||||||||
Leases—U.S. | -2 | 70,800 | — | 54,642 | 16,158 | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Subtotal | 3,008,160 | 1,305,695 | 332,521 | 952,319 | 417,625 | ||||||||||||||
Secured Debt | |||||||||||||||||||
Amortizing retail term ABS—N.A. | Various | 6,734,455 | — | 2,214,854 | 4,519,601 | — | |||||||||||||
Wholesale term—U.S. | Aug-16 | 367,300 | — | — | 367,300 | — | |||||||||||||
Other ABS financing—N.A. | Various | 34,883 | — | 29,138 | 5,745 | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Subtotal | 7,136,638 | — | 2,243,992 | 4,892,646 | — | ||||||||||||||
Unsecured Facilities | |||||||||||||||||||
Revolving credit facilities | Various | 350,000 | — | — | 100,000 | 250,000 | |||||||||||||
Unsecured Debt | |||||||||||||||||||
Notes(3) | Various | 2,848,074 | — | 750,000 | 2,098,074 | — | |||||||||||||
Term loan | 2016 | 150,000 | — | — | 150,000 | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Subtotal | 2,998,074 | — | 750,000 | 2,248,074 | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | |
Total credit facilities and debt | $ | 13,492,872 | $ | 1,305,695 | $ | 3,326,513 | $ | 8,193,039 | $ | 667,625 | |||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
-1 | Maturity dates reflect maturities of the credit facility which may be different than the maturities of the advances under the facility. | ||||||||||||||||||
-2 | Advances under the credit facility ended December 2013; however, the maturities of the debt are due as the underlying leases are collected, which extends beyond 2013. | ||||||||||||||||||
-3 | Includes adjustments related to fair value hedge of $(680) and a discount of $2,606. | ||||||||||||||||||
2013 | |||||||||||||||||||
Maturity(1) | Total | Short-Term | Current | Long-Term | Available | ||||||||||||||
Facility/Debt | Outstanding | Maturities of | Outstanding | ||||||||||||||||
Long-Term | |||||||||||||||||||
Outstanding | |||||||||||||||||||
Committed Asset-Backed Facilities | |||||||||||||||||||
Retail—U.S. | Sep-15 | $ | 1,200,000 | $ | — | $ | 107,147 | $ | 443,891 | $ | 648,962 | ||||||||
Retail—Canada | Dec-15 | 470,009 | — | 37,380 | 156,422 | 276,207 | |||||||||||||
Wholesale VFN—U.S. | Various | 1,400,000 | 1,400,000 | — | — | — | |||||||||||||
Wholesale VFN—Canada | Dec-15 | 550,615 | 506,566 | — | — | 44,049 | |||||||||||||
Leases—U.S. | -2 | 99,100 | — | 18,698 | 80,402 | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Subtotal | 3,719,724 | 1,906,566 | 163,225 | 680,715 | 969,218 | ||||||||||||||
Secured Debt | |||||||||||||||||||
Amortizing retail term ABS—N.A. | Various | 6,872,706 | — | 2,124,267 | 4,748,439 | — | |||||||||||||
Wholesale term—U.S. | Aug-16 | 367,300 | — | — | 367,300 | — | |||||||||||||
Other ABS financing—N.A. | Various | 145,125 | — | 95,131 | 49,994 | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Subtotal | 7,385,131 | — | 2,219,398 | 5,165,733 | — | ||||||||||||||
Unsecured Facilities | |||||||||||||||||||
Revolving credit facilities | Various | 350,000 | — | — | — | 350,000 | |||||||||||||
Unsecured Debt | |||||||||||||||||||
Notes(3) | Various | 2,349,140 | — | — | 2,349,140 | — | |||||||||||||
Term loan | Jul-16 | 150,000 | — | — | 150,000 | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Subtotal | 2,499,140 | — | — | 2,499,140 | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | |
Total credit facilities and debt | $ | 13,953,995 | $ | 1,906,566 | $ | 2,382,623 | $ | 8,345,588 | $ | 1,319,218 | |||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
-1 | Maturity dates reflect maturities of the credit facility which may be different than the maturities of the advances under the facility. | ||||||||||||||||||
-2 | Advances under the credit facility ended December 2013; however, the maturities of the debt are due as the underlying leases are collected, which extends beyond 2013. | ||||||||||||||||||
-3 | Includes adjustment related to fair value hedge of $860. | ||||||||||||||||||
Summary of the minimum annual repayments of long-term debt | |||||||||||||||||||
2016 | $ | 3,154,279 | |||||||||||||||||
2017 | 2,086,280 | ||||||||||||||||||
2018 | 2,011,810 | ||||||||||||||||||
2019 | 876,320 | ||||||||||||||||||
2020 and thereafter | 64,350 | ||||||||||||||||||
| | | | | |||||||||||||||
Total | $ | 8,193,039 | |||||||||||||||||
| | | | | |||||||||||||||
| | | | | |||||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
INCOME TAXES | |||||||||||
Schedule of sources of income before taxes | |||||||||||
2014 | 2013 | 2012 | |||||||||
Domestic | $ | 291,290 | $ | 300,032 | $ | 248,461 | |||||
Foreign | 95,078 | 101,130 | 81,232 | ||||||||
| | | | | | | | | | | |
Income before taxes | $ | 386,368 | $ | 401,162 | $ | 329,693 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of provision for income taxes | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current income tax expense (benefit): | |||||||||||
Domestic | $ | (4,159 | ) | $ | 77,406 | $ | 80,255 | ||||
Foreign | 45,632 | 22,519 | 22,600 | ||||||||
| | | | | | | | | | | |
Total current income tax expense | 41,473 | 99,925 | 102,855 | ||||||||
| | | | | | | | | | | |
Deferred income tax expense (benefit): | |||||||||||
Domestic | 108,836 | 29,497 | 15,848 | ||||||||
Foreign | (23,191 | ) | 5,400 | (2,591 | ) | ||||||
| | | | | | | | | | | |
Total deferred income tax expense | 85,645 | 34,897 | 13,257 | ||||||||
| | | | | | | | | | | |
Total tax provision | $ | 127,118 | $ | 134,822 | $ | 116,112 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of reconciliation of statutory and effective income tax rate | |||||||||||
2014 | 2013 | 2012 | |||||||||
Tax provision at statutory rate | 35 | % | 35 | % | 35 | % | |||||
State taxes | 3.2 | 4.5 | 5 | ||||||||
Foreign taxes | (5.0 | ) | (5.0 | ) | (4.7 | ) | |||||
Tax contingencies | (0.1 | ) | 0.1 | (0.3 | ) | ||||||
Tax credits and incentives | (0.1 | ) | (0.2 | ) | (0.3 | ) | |||||
Tax rate and legislative changes | — | — | 0.7 | ||||||||
Other | (0.1 | ) | (0.8 | ) | (0.2 | ) | |||||
| | | | | | | | | | | |
Total tax provision effective rate | 32.9 | % | 33.6 | % | 35.2 | % | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of components of net deferred tax liability | |||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets: | |||||||||||
Pension, postretirement and post-employment benefits | $ | 2,864 | $ | 3,520 | |||||||
Marketing and sales incentive programs | 81,326 | 68,770 | |||||||||
Allowance for credit losses | 33,512 | 33,784 | |||||||||
Other accrued liabilities | 9,868 | 19,814 | |||||||||
Tax loss and tax credit carry forwards | 11,644 | 9,114 | |||||||||
| | | | | | | | ||||
Total deferred tax assets | $ | 139,214 | $ | 135,002 | |||||||
Deferred tax liability: | |||||||||||
Equipment on operating lease | $ | 311,717 | $ | 219,896 | |||||||
| | | | | | | | ||||
Deferred tax liability, net(1) | $ | (172,503 | ) | $ | (84,894 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
-1 | In the accompanying consolidated balance sheets, the US net deferred tax position in 2014 and 2013 is included in "Accounts payable and other accrued liabilities" while the Canadian net deferred tax position is included in "Other assets" in 2014 and "Accounts payable and other accrued liabilities" in 2013. | ||||||||||
Schedule of reconciliation of the gross amounts of tax contingencies at the beginning and end of the year | |||||||||||
2014 | 2013 | 2012 | |||||||||
Balance, beginning of year | $ | 5,423 | $ | 5,830 | $ | 6,907 | |||||
Additions based on tax positions related to the current year | — | — | — | ||||||||
Reductions for tax positions of prior years | (492 | ) | (367 | ) | (119 | ) | |||||
Settlements | (4,923 | ) | (40 | ) | (958 | ) | |||||
| | | | | | | | | | | |
Balance, end of year | $ | 8 | $ | 5,423 | $ | 5,830 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
FINANCIAL INSTRUMENTS | ||||||||||||||||||||
Schedule of fair values of derivatives in the consolidated balance sheets | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||
Other assets: | ||||||||||||||||||||
Interest rate derivatives | $ | 680 | $ | 98 | ||||||||||||||||
Accounts payable and other accrued liabilities: | ||||||||||||||||||||
Interest rate derivatives | $ | 212 | $ | 860 | ||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||
Other assets: | ||||||||||||||||||||
Interest rate derivatives | $ | 6,727 | $ | 6,023 | ||||||||||||||||
Foreign exchange contracts | 136 | 68 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Total | $ | 6,863 | $ | 6,091 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Accounts payable and other accrued liabilities: | ||||||||||||||||||||
Interest rate derivatives | $ | 6,727 | $ | 6,023 | ||||||||||||||||
Schedule of pre-tax gains (losses) on the consolidated statements of income related to the Company's derivatives | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||
Recognized in accumulated other comprehensive | ||||||||||||||||||||
Income (effective portion) | ||||||||||||||||||||
Interest rate derivatives | $ | (747 | ) | $ | (774 | ) | $ | (254 | ) | |||||||||||
Reclassified from accumulated other comprehensive | ||||||||||||||||||||
income (effective portion) | ||||||||||||||||||||
Interest rate derivatives—Interest expense to third parties | (4,502 | ) | (6,138 | ) | (6,971 | ) | ||||||||||||||
Recognized directly in income (ineffective portion) | ||||||||||||||||||||
Interest rate derivatives—Other expenses | — | — | 20 | |||||||||||||||||
Not Designated as Hedges | ||||||||||||||||||||
Interest rate derivatives—Other expenses | $ | — | $ | — | $ | (53 | ) | |||||||||||||
Foreign exchange contracts—Other expenses | (285 | ) | (138 | ) | 5 | |||||||||||||||
Schedule of fair-value hierarchy levels of assets and liabilities measured at fair value on a recurring basis | ||||||||||||||||||||
Level 2 | Level 3 | Total | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Assets | ||||||||||||||||||||
Interest rate derivatives | $ | 7,407 | $ | 6,121 | $ | — | $ | — | $ | 7,407 | $ | 6,121 | ||||||||
Foreign exchange contracts | 136 | 68 | — | — | 136 | 68 | ||||||||||||||
Retained interests | — | — | — | 2,853 | — | 2,853 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total assets | $ | 7,543 | $ | 6,189 | $ | — | $ | 2,853 | $ | 7,543 | $ | 9,042 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities | ||||||||||||||||||||
Interest rate derivatives | $ | 6,939 | $ | 6,883 | $ | — | $ | — | $ | 6,939 | $ | 6,883 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
Total liabilities | $ | 6,939 | $ | 6,883 | $ | — | $ | — | $ | 6,939 | $ | 6,883 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Schedule of changes in Level 3 fair-value category | ||||||||||||||||||||
Retained | Derivative | |||||||||||||||||||
Interests | Financial | |||||||||||||||||||
Instruments | ||||||||||||||||||||
Balance at January 1, 2012 | $ | 17,289 | $ | 15 | ||||||||||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||||||
Included in earnings | 1,005 | 65 | ||||||||||||||||||
Included in other comprehensive income (loss) | 1,635 | (80 | ) | |||||||||||||||||
Settlements | (10,658 | ) | — | |||||||||||||||||
| | | | | | | | |||||||||||||
Balance at December 31, 2012 | $ | 9,271 | $ | — | ||||||||||||||||
Total gains or losses (realized/unrealized): | — | |||||||||||||||||||
Included in earnings | 856 | — | ||||||||||||||||||
Included in other comprehensive income (loss) | (284 | ) | ||||||||||||||||||
Settlements | (6,990 | ) | — | |||||||||||||||||
| | | | | | | | |||||||||||||
Balance at December 31, 2013 | $ | 2,853 | $ | — | ||||||||||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||||||
Included in earnings | 220 | — | ||||||||||||||||||
Included in other comprehensive income (loss) | — | — | ||||||||||||||||||
Settlements | (3,073 | ) | — | |||||||||||||||||
| | | | | | | | |||||||||||||
Balance at December 31, 2014 | $ | — | $ | — | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Schedule of carrying amount and estimated fair value of assets and liabilities considered financial instruments | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||||||
Amount | Fair Value * | Amount | Fair Value * | |||||||||||||||||
Receivables | $ | 12,789,027 | $ | 12,854,705 | $ | 12,183,281 | $ | 12,216,915 | ||||||||||||
Long-term debt | $ | 8,193,039 | $ | 8,195,209 | $ | 8,345,588 | $ | 8,457,438 | ||||||||||||
* | Under the fair value hierarchy, receivables measurements are classified as Level 3 and long-term debt measurements are classified as Level 2. | |||||||||||||||||||
SEGMENT_AND_GEOGRAPHICAL_INFOR1
SEGMENT AND GEOGRAPHICAL INFORMATION (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
SEGMENT AND GEOGRAPHICAL INFORMATION | |||||||||||
Summary of reportable segment information | |||||||||||
2014 | 2013 | 2012 | |||||||||
Revenues | |||||||||||
United States | $ | 741,869 | $ | 666,776 | $ | 644,900 | |||||
Canada | 197,769 | 196,479 | 192,196 | ||||||||
Eliminations | (4,887 | ) | (5,134 | ) | (3,092 | ) | |||||
| | | | | | | | | | | |
Total | $ | 934,751 | $ | 858,121 | $ | 834,004 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Interest expense | |||||||||||
United States | $ | 236,835 | $ | 209,435 | $ | 202,208 | |||||
Canada | 54,480 | 53,021 | 54,957 | ||||||||
Eliminations | (4,887 | ) | (5,134 | ) | (3,092 | ) | |||||
| | | | | | | | | | | |
Total | $ | 286,428 | $ | 257,322 | $ | 254,073 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Segment net income | |||||||||||
United States | $ | 186,611 | $ | 197,707 | $ | 152,854 | |||||
Canada | 72,639 | 68,633 | 60,727 | ||||||||
| | | | | | | | | | | |
Total | $ | 259,250 | $ | 266,340 | $ | 213,581 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Depreciation and amortization | |||||||||||
United States | $ | 108,074 | $ | 81,979 | $ | 76,145 | |||||
Canada | 34,778 | 33,113 | 32,757 | ||||||||
| | | | | | | | | | | |
Total | $ | 142,852 | $ | 115,092 | $ | 108,902 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Expenditures for equipment on operating leases | |||||||||||
United States | $ | 861,815 | $ | 501,599 | $ | 355,076 | |||||
Canada | 135,043 | 118,962 | 104,401 | ||||||||
| | | | | | | | | | | |
Total | $ | 996,858 | $ | 620,561 | $ | 459,477 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Provision (benefit) for credit losses | |||||||||||
United States | $ | 10,706 | $ | (9,323 | ) | $ | 33,875 | ||||
Canada | 3,418 | 3,419 | 10,703 | ||||||||
| | | | | | | | | | | |
Total | $ | 14,124 | $ | (5,904 | ) | $ | 44,578 | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
2014 | 2013 | 2012 | |||||||||
Segment assets | |||||||||||
United States | $ | 13,430,826 | $ | 12,536,638 | $ | 11,016,740 | |||||
Canada | 2,693,008 | 2,664,096 | 2,555,140 | ||||||||
Eliminations | (214,269 | ) | (214,030 | ) | (225,351 | ) | |||||
| | | | | | | | | | | |
Total | $ | 15,909,565 | $ | 14,986,704 | $ | 13,346,529 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Managed receivables | |||||||||||
United States | $ | 10,708,704 | $ | 10,147,225 | $ | 8,849,079 | |||||
Canada | 2,175,865 | 2,151,226 | 2,052,884 | ||||||||
| | | | | | | | | | | |
Total | $ | 12,884,569 | $ | 12,298,451 | $ | 10,901,963 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
RELATEDPARTY_TRANSACTIONS_AFFI1
RELATED-PARTY TRANSACTIONS/ AFFILIATED DEBT (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
RELATED-PARTY TRANSACTIONS / AFFILIATED DEBT | ||||||||||||||||||||
Summary of the sources included in "Interest and other income from affiliates" in the accompanying consolidated statements of income | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Retail subsidy from CNH Industrial North America | $ | 228,023 | $ | 219,171 | $ | 209,952 | ||||||||||||||
Wholesale subsidy: | ||||||||||||||||||||
CNH Industrial North America | 161,308 | 158,313 | 148,997 | |||||||||||||||||
Other affiliates | — | 1,584 | 2,784 | |||||||||||||||||
Operating lease subsidy from CNH Industrial North America | 48,035 | 35,889 | 30,376 | |||||||||||||||||
Lending funds: | ||||||||||||||||||||
CNH Industrial North America | — | — | 352 | |||||||||||||||||
Other affiliates | 69 | — | 2 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Total interest and other income from affiliates | $ | 437,435 | $ | 414,957 | $ | 392,463 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Schedule of various accounts and notes receivable and debt with the affiliates | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Rate | Maturity | Amount | Rate | Maturity | Amount | |||||||||||||||
Affiliated receivables from: | ||||||||||||||||||||
CNH Industrial America | 0 | % | — | $ | 39,677 | 0 | % | — | $ | 80,786 | ||||||||||
CNH Industrial Canada Ltd. | 0 | % | — | 6,763 | 0 | % | — | 17,071 | ||||||||||||
Other affiliates | 0 | % | — | 12,291 | 0 | % | — | 12,291 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total affiliated receivables | $ | 58,731 | $ | 110,148 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Affiliated debt owed to: | ||||||||||||||||||||
CNH Industrial America | 3.92 | % | 2014 | $ | 713,230 | 3.92 | % | 2014 | $ | 274,525 | ||||||||||
CNH Industrial Canada Ltd. | 5.05 | % | 2014 | 149,215 | 4.97 | % | 2014 | 76,479 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total affiliated debt | $ | 862,445 | $ | 351,004 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
SUPPLEMENTAL_CONDENSED_CONSOLI1
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION | |||||||||||||||||
Schedule of condensed statements of comprehensive income | |||||||||||||||||
Condensed Statements of Comprehensive Income for the Year | |||||||||||||||||
Ended December 31, 2014 | |||||||||||||||||
CNH | Guarantor | All Other | Eliminations | Consolidated | |||||||||||||
Industrial | Entities | Subsidiaries | |||||||||||||||
Capital LLC | |||||||||||||||||
REVENUES | |||||||||||||||||
Interest income on retail notes and finance leases | $ | — | $ | 9,696 | $ | 194,756 | $ | — | $ | 204,452 | |||||||
Interest income on wholesale notes | — | (1,292 | ) | 75,742 | — | 74,450 | |||||||||||
Interest and other income from affiliates | 96,352 | 220,950 | 382,145 | (262,012 | ) | 437,435 | |||||||||||
Rental income on operating leases | — | 108,568 | 57,346 | — | 165,914 | ||||||||||||
Other income | — | 142,031 | 7,681 | (97,212 | ) | 52,500 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total revenues | 96,352 | 479,953 | 717,670 | (359,224 | ) | 934,751 | |||||||||||
| | | | | | | | | | | | | | | | | |
EXPENSES | |||||||||||||||||
Interest expense: | |||||||||||||||||
Interest expense to third parties | 124,629 | (7,328 | ) | 138,650 | — | 255,951 | |||||||||||
Interest expense to affiliates | — | 245,133 | 47,356 | (262,012 | ) | 30,477 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total interest expense | 124,629 | 237,805 | 186,006 | (262,012 | ) | 286,428 | |||||||||||
| | | | | | | | | | | | | | | | | |
Administrative and operating expenses: | |||||||||||||||||
Fees charged by affiliates | — | 40,103 | 106,648 | (97,212 | ) | 49,539 | |||||||||||
Provision (benefit) for credit losses | — | (1,300 | ) | 15,424 | — | 14,124 | |||||||||||
Depreciation of equipment on operating leases | — | 93,549 | 48,139 | — | 141,688 | ||||||||||||
Other expenses | 1 | 55,836 | 767 | — | 56,604 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total operating expenses | 1 | 188,188 | 170,978 | (97,212 | ) | 261,955 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total expenses | 124,630 | 425,993 | 356,984 | (359,224 | ) | 548,383 | |||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method | (28,278 | ) | 53,960 | 360,686 | — | 386,368 | |||||||||||
Income tax provision (benefit) | (10,873 | ) | 19,097 | 118,894 | — | 127,118 | |||||||||||
Equity in income of consolidated subsidiaries accounted for under the equity method | 275,428 | 240,565 | (515,993 | ||||||||||||||
— | ) | — | |||||||||||||||
| | | | | | | | | | | | | | | | | |
NET INCOME | 258,023 | 275,428 | 241,792 | (515,993 | ) | 259,250 | |||||||||||
Net income attributed to noncontrolling interest | — | — | (1,227 | ) | — | (1,227 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
NET INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | $ | 258,023 | $ | 275,428 | $ | 240,565 | $ | (515,993 | ) | $ | 258,023 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
COMPREHENSIVE INCOME | $ | 202,023 | $ | 219,428 | $ | 194,587 | $ | (412,788 | ) | $ | 203,250 | ||||||
Comprehensive income attributed to noncontrolling interest | — | — | (1,227 | ) | — | (1,227 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | $ | 202,023 | $ | 219,428 | $ | 193,360 | $ | (412,788 | ) | $ | 202,023 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Statements of Comprehensive Income | |||||||||||||||||
for the Year Ended December 31, 2013 | |||||||||||||||||
CNH | Guarantor | All Other | Eliminations | Consolidated | |||||||||||||
Industrial | Entities | Subsidiaries | |||||||||||||||
Capital LLC | |||||||||||||||||
REVENUES | |||||||||||||||||
Interest income on retail notes and finance leases | $ | — | $ | 572 | $ | 180,770 | $ | — | $ | 181,342 | |||||||
Interest income wholesale notes | (1,001 | ) | 64,761 | — | 63,760 | ||||||||||||
Interest and other income from affiliates | 69,589 | 214,317 | 361,773 | (230,722 | ) | 414,957 | |||||||||||
Rental income on operating leases | — | 80,765 | 58,172 | — | 138,937 | ||||||||||||
Other income | — | 135,543 | 10,088 | (86,506 | ) | 59,125 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total revenues | 69,589 | 430,196 | 675,564 | (317,228 | ) | 858,121 | |||||||||||
| | | | | | | | | | | | | | | | | |
EXPENSES | |||||||||||||||||
Interest expense: | |||||||||||||||||
Interest expense to third parties | 93,941 | 17 | 139,259 | — | 233,217 | ||||||||||||
Interest expense to affiliates | — | 212,552 | 42,275 | (230,722 | ) | 24,105 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total interest expense | 93,941 | 212,569 | 181,534 | (230,722 | ) | 257,322 | |||||||||||
| | | | | | | | | | | | | | | | | |
Administrative and operating expenses: | |||||||||||||||||
Fees charged by affiliates | — | 45,403 | 97,508 | (86,506 | ) | 56,405 | |||||||||||
Provision (benefit) for credit losses, net | — | (13,380 | ) | 7,476 | — | (5,904 | ) | ||||||||||
Depreciation of equipment on operating leases | — | 64,822 | 49,231 | — | 114,053 | ||||||||||||
Other expenses | 1 | 36,575 | (1,493 | ) | — | 35,083 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total administrative and operating expenses | 1 | 133,420 | 152,722 | (86,506 | ) | 199,637 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total expenses | 93,942 | 345,989 | 334,256 | (317,228 | ) | 456,959 | |||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method | (24,353 | ) | 84,207 | 341,308 | — | 401,162 | |||||||||||
Income tax provision (benefit) | (9,393 | 30,212 | 114,003 | 134,822 | |||||||||||||
) | — | ||||||||||||||||
Equity in income of consolidated subsidiaries accounted for under the equity method | 279,840 | 225,845 | — | (505,685 | ) | — | |||||||||||
| | | | | | | | | | | | | | | | | |
NET INCOME | 264,880 | 279,840 | 227,305 | (505,685 | ) | 266,340 | |||||||||||
Net income attributed to noncontrolling interest | (1,460 | (1,460 | |||||||||||||||
— | — | ) | — | ) | |||||||||||||
| | | | | | | | | | | | | | | | | |
NET INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | $ | 264,880 | $ | 279,840 | $ | 225,845 | $ | (505,685 | ) | $ | 264,880 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
COMPREHENSIVE INCOME | $ | 224,304 | $ | 239,262 | $ | 192,320 | $ | (430,122 | ) | $ | 225,764 | ||||||
Comprehensive income attributed to noncontrolling interest | (1,460 | (1,460 | |||||||||||||||
— | — | ) | — | ) | |||||||||||||
| | | | | | | | | | | | | | | | | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | $ | 224,304 | $ | 239,262 | $ | 190,860 | $ | (430,122 | ) | $ | 224,304 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Statements of Comprehensive Income for the Year Ended | |||||||||||||||||
December 31, 2012 | |||||||||||||||||
CNH | Guarantor | All Other | Eliminations | Consolidated | |||||||||||||
Industrial | Entities | Subsidiaries | |||||||||||||||
Capital LLC | |||||||||||||||||
REVENUES | |||||||||||||||||
Interest income on retail notes and finance leases | $ | — | $ | 11,488 | $ | 166,956 | $ | — | $ | 178,444 | |||||||
Interest income on wholesale notes | — | (830 | ) | 63,043 | — | 62,213 | |||||||||||
Interest and other income from affiliates | 7,437 | 178,848 | 354,010 | (147,832 | ) | 392,463 | |||||||||||
Rental income on operating leases | — | 82,280 | 51,526 | — | 133,806 | ||||||||||||
Other income | — | 113,748 | 34,780 | (81,450 | ) | 67,078 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total revenues | 7,437 | 385,534 | 670,315 | (229,282 | ) | 834,004 | |||||||||||
| | | | | | | | | | | | | | | | | |
EXPENSES | |||||||||||||||||
Interest expense: | |||||||||||||||||
Interest expense to third parties | 48,848 | 6,838 | 163,875 | — | 219,561 | ||||||||||||
Interest expense to affiliates | 255 | 146,665 | 35,424 | (147,832 | ) | 34,512 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total interest expense | 49,103 | 153,503 | 199,299 | (147,832 | ) | 254,073 | |||||||||||
| | | | | | | | | | | | | | | | | |
Administrative and operating expenses: | |||||||||||||||||
Fees charged by affiliates | — | 50,591 | 92,754 | (81,450 | ) | 61,895 | |||||||||||
Provision (benefit) for credit losses, net | — | (563 | ) | 45,141 | — | 44,578 | |||||||||||
Depreciation of equipment on operating leases | — | 65,107 | 42,729 | — | 107,836 | ||||||||||||
Other expenses | 1 | 32,999 | 2,929 | — | 35,929 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total administrative and operating expenses | 1 | 148,134 | 183,553 | (81,450 | ) | 250,238 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total expenses | 49,104 | 301,637 | 382,852 | (229,282 | ) | 504,311 | |||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method | (41,667 | ) | 83,897 | 287,463 | — | 329,693 | |||||||||||
Income tax provision (benefit) | (16,327 | 33,663 | 98,776 | 116,112 | |||||||||||||
) | — | ||||||||||||||||
Equity in income of consolidated subsidiaries accounted for under the equity method | 237,276 | 187,042 | — | (424,318 | ) | — | |||||||||||
| | | | | | | | | | | | | | | | | |
NET INCOME | 211,936 | 237,276 | 188,687 | (424,318 | ) | 213,581 | |||||||||||
Net income attributed to noncontrolling interest | (1,645 | (1,645 | |||||||||||||||
— | — | ) | — | ) | |||||||||||||
| | | | | | | | | | | | | | | | | |
NET INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | $ | 211,936 | $ | 237,276 | $ | 187,042 | $ | (424,318 | ) | $ | 211,936 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
COMPREHENSIVE INCOME | $ | 229,868 | $ | 255,208 | $ | 204,003 | $ | (457,566 | ) | $ | 231,513 | ||||||
Comprehensive income attributed to noncontrolling interest | (1,645 | (1,645 | |||||||||||||||
— | — | ) | — | ) | |||||||||||||
| | | | | | | | | | | | | | | | | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | $ | 229,868 | $ | 255,208 | $ | 202,358 | $ | (457,566 | ) | $ | 229,868 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Schedule of condensed balance sheets | |||||||||||||||||
Condensed Balance Sheets as of December 31, 2014 | |||||||||||||||||
CNH | Guarantor | All Other | Eliminations | Consolidated | |||||||||||||
Industrial | Entities | Subsidiaries | |||||||||||||||
Capital LLC | |||||||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | 225,343 | 122,644 | 347,987 | ||||||||||||||
$ | — | $ | $ | $ | — | $ | |||||||||||
Restricted cash | — | 100 | 858,725 | — | 858,825 | ||||||||||||
Receivables, less allowance for credit losses | — | 1,845,524 | 10,943,503 | — | 12,789,027 | ||||||||||||
Affiliated accounts and notes receivable | 2,749,776 | 1,712,656 | 1,365,447 | (5,769,148 | ) | 58,731 | |||||||||||
Equipment on operating leases, net | — | 1,128,542 | 329,783 | — | 1,458,325 | ||||||||||||
Equipment held for sale | — | 121,190 | 8,510 | — | 129,700 | ||||||||||||
Investments in consolidated subsidiaries accounted for under the equity method | 1,923,861 | 2,228,741 | — | (4,152,602 | ) | — | |||||||||||
Goodwill and intangible assets, net | — | 89,927 | 31,279 | — | 121,206 | ||||||||||||
Other assets | 20,778 | 77,597 | 51,637 | (4,248 | ) | 145,764 | |||||||||||
| | | | | | | | | | | | | | | | | |
TOTAL | $ | 4,694,415 | $ | 7,429,620 | $ | 13,711,528 | $ | (9,925,998 | ) | $ | 15,909,565 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDER'S EQUITY | |||||||||||||||||
Liabilities: | |||||||||||||||||
Short-term debt, including current maturities of long-term debt | $ | 750,000 | $ | 19,128 | $ | 3,863,080 | $ | — | $ | 4,632,208 | |||||||
Accounts payable and other accrued liabilities | 56,261 | 2,162,159 | 860,231 | (2,432,710 | ) | 645,941 | |||||||||||
Affiliated debt | — | 3,320,828 | 882,303 | (3,340,686 | ) | 862,445 | |||||||||||
Long-term debt | 2,348,074 | 3,644 | 5,841,321 | — | 8,193,039 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities | 3,154,335 | 5,505,759 | 11,446,935 | (5,773,396 | ) | 14,333,633 | |||||||||||
Stockholder's equity | 1,540,080 | 1,923,861 | 2,264,593 | (4,152,602 | 1,575,932 | ||||||||||||
) | |||||||||||||||||
| | | | | | | | | | | | | | | | | |
TOTAL | $ | 4,694,415 | $ | 7,429,620 | $ | 13,711,528 | $ | (9,925,998 | ) | $ | 15,909,565 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Balance Sheets as of December 31, 2013 | |||||||||||||||||
CNH | Guarantor | All Other | Eliminations | Consolidated | |||||||||||||
Industrial | Entities | Subsidiaries | |||||||||||||||
Capital LLC | |||||||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | 308,507 | 389,101 | 697,608 | ||||||||||||||
$ | — | $ | $ | $ | — | $ | |||||||||||
Restricted cash | — | 100 | 784,408 | — | 784,508 | ||||||||||||
Receivables, less allowance for credit losses | — | 1,504,614 | 10,678,667 | — | 12,183,281 | ||||||||||||
Retained interests in securitized receivables | — | 5,202 | 2,596 | (4,945 | ) | 2,853 | |||||||||||
Affiliated accounts and notes receivable | 2,245,308 | 1,780,263 | 1,462,388 | (5,377,811 | ) | 110,148 | |||||||||||
Equipment on operating leases, net | — | 636,383 | 337,924 | — | 974,307 | ||||||||||||
Equipment held for sale | — | 35,035 | 5,715 | — | 40,750 | ||||||||||||
Investments in consolidated subsidiaries accounted for under the equity method | 1,703,364 | 1,931,092 | — | (3,634,456 | ) | — | |||||||||||
Goodwill and intangible assets | — | 88,376 | 33,914 | — | 122,290 | ||||||||||||
Other assets | 23,142 | 15,857 | 31,960 | — | 70,959 | ||||||||||||
| | | | | | | | | | | | | | | | | |
TOTAL | $ | 3,971,814 | $ | 6,305,429 | $ | 13,726,673 | $ | (9,017,212 | ) | $ | 14,986,704 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDER'S EQUITY | |||||||||||||||||
Liabilities: | |||||||||||||||||
Short-term debt, including current maturities of long-term debt | $ | — | $ | 76,869 | $ | 4,212,320 | $ | — | $ | 4,289,189 | |||||||
Accounts payable and other accrued liabilities | 20,685 | 2,004,157 | 798,110 | (2,332,446 | ) | 490,506 | |||||||||||
Affiliated debt | — | 2,487,997 | 913,317 | (3,050,310 | ) | 351,004 | |||||||||||
Long-term debt | 2,499,140 | 33,042 | 5,813,406 | — | 8,345,588 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities | 2,519,825 | 4,602,065 | 11,737,153 | (5,382,756 | ) | 13,476,287 | |||||||||||
Stockholder's equity | 1,451,989 | 1,703,364 | 1,989,520 | (3,634,456 | 1,510,417 | ||||||||||||
) | |||||||||||||||||
| | | | | | | | | | | | | | | | | |
TOTAL | $ | 3,971,814 | $ | 6,305,429 | $ | 13,726,673 | $ | (9,017,212 | ) | $ | 14,986,704 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Schedule of condensed statements of cash flows | |||||||||||||||||
Condensed Statements of Cash Flows for the Year Ended | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
CNH | Guarantor | All Other | Eliminations | Consolidated | |||||||||||||
Industrial | Entities | Subsidiaries | |||||||||||||||
Capital LLC | |||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||
Net cash from (used in) operating activities | $ | (483,934 | ) | $ | 178,599 | $ | 556,278 | $ | 291,073 | $ | 542,016 | ||||||
| | | | | | | | | | | | | | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||
Cost of receivables acquired | — | (15,819,248 | ) | (15,532,463 | ) | 12,300,701 | (19,051,010 | ) | |||||||||
Collections of receivables | — | 15,480,203 | 15,062,472 | (12,301,398 | ) | 18,241,277 | |||||||||||
Change in restricted cash | — | — | (86,450 | ) | — | (86,450 | ) | ||||||||||
Purchase of equipment on operating leases, net | — | (665,734 | ) | (61,902 | ) | — | (727,636 | ) | |||||||||
Expenditures for property and equipment | — | (2,676 | ) | (9 | ) | — | (2,685 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net cash from (used in) investing activities | — | (1,007,455 | ) | (618,352 | ) | (697 | ) | (1,626,504 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||
Intercompany activity | — | 832,831 | (17,759 | ) | (290,376 | ) | 524,696 | ||||||||||
Net change in indebtedness | 598,934 | (87,139 | ) | (162,821 | ) | — | 348,974 | ||||||||||
Dividends paid to CNH Industrial America LLC | (115,000 | ) | — | — | — | (115,000 | ) | ||||||||||
Dividends paid to CNH Industrial Canada Ltd. | — | — | (23,803 | ) | — | (23,803 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash from (used in) financing activities | 483,934 | 745,692 | (204,383 | ) | (290,376 | ) | 734,867 | ||||||||||
| | | | | | | | | | | | | | | | | |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | — | (83,164 | ) | (266,457 | ) | — | (349,621 | ) | |||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||
Beginning of year | — | 308,507 | 389,101 | — | 697,608 | ||||||||||||
| | | | | | | | | | | | | | | | | |
End of year | $ | — | $ | 225,343 | $ | 122,644 | $ | — | $ | 347,987 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Statements of Cash Flows for the Year Ended | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
CNH | Guarantor | All Other | Eliminations | Consolidated | |||||||||||||
Industrial | Entities | Subsidiaries | |||||||||||||||
Capital LLC | |||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||
Net cash from (used in) operating activities | $ | (899,140 | ) | $ | 480,974 | $ | (68,842 | ) | $ | 904,998 | $ | 417,990 | |||||
| | | | | | | | | | | | | | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||
Cost of receivables acquired | — | (16,948,609 | ) | (16,438,038 | ) | 12,754,787 | (20,631,860 | ) | |||||||||
Collections of receivables | — | 16,591,756 | 15,206,469 | (12,754,187 | ) | 19,044,038 | |||||||||||
Change in restricted cash | — | — | (65,756 | ) | — | (65,756 | ) | ||||||||||
Purchase of equipment on operating leases, net | — | (270,607 | ) | (78,600 | ) | — | (349,207 | ) | |||||||||
Other investing activities | — | (3,279 | ) | (41 | ) | — | (3,320 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net cash from (used in) investing activities | — | (630,739 | ) | (1,375,966 | ) | 600 | (2,006,105 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||
Intercompany activity | — | 341,327 | 56,475 | (905,598 | ) | (507,796 | ) | ||||||||||
Net change in indebtedness | 1,099,140 | (140,056 | ) | 1,248,522 | — | 2,207,606 | |||||||||||
Dividends paid to CNH Industrial America LLC | (200,000 | ) | — | — | — | (200,000 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash from (used in) financing activities | 899,140 | 201,271 | 1,304,997 | (905,598 | ) | 1,499,810 | |||||||||||
| | | | | | | | | | | | | | | | | |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | — | 51,506 | (139,811 | ) | — | (88,305 | ) | ||||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||
Beginning of year | — | 257,001 | 528,912 | — | 785,913 | ||||||||||||
| | | | | | | | | | | | | | | | | |
End of year | $ | — | $ | 308,507 | $ | 389,101 | $ | — | $ | 697,608 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Statements of Cash Flows for the Year Ended | |||||||||||||||||
December 31, 2012 | |||||||||||||||||
CNH | Guarantor | All Other | Eliminations | Consolidated | |||||||||||||
Industrial | Entities | Subsidiaries | |||||||||||||||
Capital LLC | |||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||
Net cash from (used in) operating activities | $ | (740,547 | ) | $ | (1,069,674 | ) | $ | 915,730 | $ | 1,421,072 | $ | 526,581 | |||||
| | | | | | | | | | | | | | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||
Cost of receivables acquired | — | (15,802,666 | ) | (17,733,851 | ) | 13,897,290 | (19,639,227 | ) | |||||||||
Collections of receivables | — | 15,499,698 | 16,703,466 | (13,897,223 | ) | 18,305,941 | |||||||||||
Decrease in restricted cash | — | — | 43,589 | — | 43,589 | ||||||||||||
Purchase of equipment on operating leases, net | — | (118,412 | ) | (91,186 | ) | — | (209,598 | ) | |||||||||
Other investing activities | — | (2,300 | ) | (14 | ) | — | (2,314 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net cash from (used in) investing activities | — | (423,680 | ) | (1,077,996 | ) | 67 | (1,501,609 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||
Intercompany activity | (9,453 | ) | 1,543,710 | (69,879 | ) | (1,421,139 | ) | 43,239 | |||||||||
Net change in indebtedness | 750,000 | (99,563 | ) | 473,172 | — | 1,123,609 | |||||||||||
| | | | | | | | | | | | | | | | | |
Net cash from (used in) financing activities | 740,547 | 1,444,147 | 403,293 | (1,421,139 | ) | 1,166,848 | |||||||||||
| | | | | | | | | | | | | | | | | |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | — | (49,207 | ) | 241,027 | — | 191,820 | |||||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||
Beginning of year | — | 306,208 | 287,885 | — | 594,093 | ||||||||||||
| | | | | | | | | | | | | | | | | |
End of year | $ | — | $ | 257,001 | $ | 528,912 | $ | — | $ | 785,913 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
SUPPLEMENTAL_QUARTERLY_INFORMA1
SUPPLEMENTAL QUARTERLY INFORMATION (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SUPPLEMENTAL QUARTERLY INFORMATION (UNAUDITED) | |||||||||||||||||
Schedule of supplemental quarterly information (unaudited) | |||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||
First | Second | Third | Fourth | Fiscal | |||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | |||||||||||||
Revenues | $ | 220,988 | $ | 233,764 | $ | 233,960 | $ | 246,039 | $ | 934,751 | |||||||
Interest expense | 63,128 | 70,669 | 74,115 | 78,516 | 286,428 | ||||||||||||
Administrative and operating expenses | 55,986 | 61,835 | 71,393 | 72,741 | 261,955 | ||||||||||||
Income tax provision | 34,807 | 32,598 | 29,762 | 29,951 | 127,118 | ||||||||||||
Net income attributable to noncontrolling interest | (328 | ) | (334 | ) | (273 | ) | (292 | ) | (1,227 | ) | |||||||
| | | | | | | | | | | | | | | | | |
Net income attributable to CNH Industrial Capital LLC | $ | 66,739 | $ | 68,328 | $ | 58,417 | $ | 64,539 | $ | 258,023 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
For the Year Ended December 31, 2013 | |||||||||||||||||
First | Second | Third | Fourth | Fiscal | |||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | |||||||||||||
Revenues | $ | 205,665 | $ | 212,332 | $ | 218,187 | $ | 221,937 | $ | 858,121 | |||||||
Interest expense | 59,475 | 62,932 | 64,997 | 69,918 | 257,322 | ||||||||||||
Administrative and operating expenses | 52,587 | 42,913 | 52,335 | 51,802 | 199,637 | ||||||||||||
Income tax provision | 29,743 | 37,475 | 35,527 | 32,077 | 134,822 | ||||||||||||
Net income attributable to noncontrolling interest | (418 | ) | (357 | ) | (373 | ) | (312 | ) | (1,460 | ) | |||||||
| | | | | | | | | | | | | | | | | |
Net income attributable to CNH Industrial Capital LLC | $ | 63,442 | $ | 68,655 | $ | 64,955 | $ | 67,828 | $ | 264,880 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NATURE_OF_OPERATIONS_Details
NATURE OF OPERATIONS (Details) (Master services agreement, USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Jul. 02, 2012 |
Master services agreement | |
Basis of Presentation | |
Period of agreement | 5 years |
Prepayment from counterparty | $35,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Revenue Recognition | ||
Delinquency period of accounts considered for recognition of income | 120 days | 120 days |
Minimum account delinquency period for an account to be classified as past due | 30 days | 30 days |
Goodwill and Intangible Assets | ||
Impairment of goodwill | $0 | $0 |
Amortization period of other intangible assets consisting of software | 5 years |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in accumulated other comprehensive income by component | |||
Beginning balance, gross | $1,404 | $39,879 | |
Tax asset (liability) | 4,668 | 6,769 | |
Beginning balance, net of tax | 6,072 | 46,648 | |
Other comprehensive income before reclassifications | -59,599 | -44,932 | |
Amounts reclassified from accumulated other comprehensive income | 4,610 | 6,457 | |
Tax effects | -1,011 | -2,101 | |
Total other comprehensive income (loss) | -56,000 | -40,576 | 17,932 |
Ending balance | -49,928 | 6,072 | 46,648 |
Currency Translation Adjustment | |||
Changes in accumulated other comprehensive income by component | |||
Beginning balance, gross | 14,762 | 58,920 | |
Beginning balance, net of tax | 14,762 | 58,920 | |
Other comprehensive income before reclassifications | -57,822 | -44,158 | |
Total other comprehensive income (loss) | -57,822 | -44,158 | |
Ending balance | -43,060 | 14,762 | |
Pension Liability | |||
Changes in accumulated other comprehensive income by component | |||
Beginning balance, gross | -5,891 | -8,834 | |
Tax asset (liability) | 2,149 | 3,286 | |
Beginning balance, net of tax | -3,742 | -5,548 | |
Other comprehensive income before reclassifications | -1,030 | ||
Amounts reclassified from accumulated other comprehensive income | 496 | 2,943 | |
Tax effects | 192 | -1,137 | |
Total other comprehensive income (loss) | -342 | 1,806 | |
Ending balance | -4,084 | -3,742 | |
Unrealized Gains on Retained Interests | |||
Changes in accumulated other comprehensive income by component | |||
Beginning balance, gross | 388 | 3,012 | |
Tax asset (liability) | -144 | -1,136 | |
Beginning balance, net of tax | 244 | 1,876 | |
Amounts reclassified from accumulated other comprehensive income | -388 | -2,624 | |
Tax effects | 144 | 992 | |
Total other comprehensive income (loss) | -244 | -1,632 | |
Ending balance | 244 | ||
Unrealized losses on derivatives | |||
Changes in accumulated other comprehensive income by component | |||
Beginning balance, gross | -7,855 | -13,219 | |
Tax asset (liability) | 2,663 | 4,619 | |
Beginning balance, net of tax | -5,192 | -8,600 | |
Other comprehensive income before reclassifications | -747 | -774 | |
Amounts reclassified from accumulated other comprehensive income | 4,502 | 6,138 | |
Tax effects | -1,347 | -1,956 | |
Total other comprehensive income (loss) | 2,408 | 3,408 | |
Ending balance | ($2,784) | ($5,192) |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassifications out of accumulated other comprehensive income and the location on the consolidated statements of income | |||||||||||
Interest expense to third parties | ($255,951) | ($233,217) | ($219,561) | ||||||||
Income before taxes | 386,368 | 401,162 | 329,693 | ||||||||
Income tax benefit | -29,951 | -29,762 | -32,598 | -34,807 | -32,077 | -35,527 | -37,475 | -29,743 | -127,118 | -134,822 | -116,112 |
Net income | 259,250 | 266,340 | 213,581 | ||||||||
Pension Liability | Amounts Reclassified from AOCI | |||||||||||
Reclassifications out of accumulated other comprehensive income and the location on the consolidated statements of income | |||||||||||
Insignificant items | -496 | -2,943 | |||||||||
Income before taxes | -496 | -2,943 | |||||||||
Income tax benefit | 178 | 1,137 | |||||||||
Net income | -318 | -1,806 | |||||||||
Unrealized Gains on Retained Interests | Amounts Reclassified from AOCI | |||||||||||
Reclassifications out of accumulated other comprehensive income and the location on the consolidated statements of income | |||||||||||
Insignificant items | 388 | 2,624 | |||||||||
Income before taxes | 388 | 2,624 | |||||||||
Income tax benefit | -144 | -992 | |||||||||
Net income | 244 | 1,632 | |||||||||
Unrealized losses on derivatives | Amounts Reclassified from AOCI | |||||||||||
Reclassifications out of accumulated other comprehensive income and the location on the consolidated statements of income | |||||||||||
Interest expense to third parties | -4,502 | -6,138 | |||||||||
Income before taxes | -4,502 | -6,138 | |||||||||
Income tax benefit | 1,545 | 2,162 | |||||||||
Net income | ($2,957) | ($3,976) |
RECEIVABLES_Details
RECEIVABLES (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Receivables | ||||
Gross receivables | 12,884,569 | $12,285,234 | $10,854,596 | |
Less: Allowance for credit losses | -95,542 | -101,953 | -122,320 | -106,673 |
Total receivables, net | 12,789,027 | 12,183,281 | ||
Restricted Receivables | 10,954,660 | 10,648,814 | ||
Off-Book Receivables | 13,217 | |||
Retained Interests | 2,853 | |||
Receivables directly or indirectly sold or transferred and available to pay the entity's creditors prior to all obligations of the SPE having been fulfilled | 0 | |||
Maturities of wholesale notes and accounts, retail and other notes, and finance leases | ||||
2015 | 6,723,364 | |||
2016 | 2,094,648 | |||
2017 | 1,775,894 | |||
2018 | 1,313,775 | |||
2019 and thereafter | 976,888 | |||
Total Receivables | 12,884,569 | 12,285,234 | 10,854,596 | |
Retail | ||||
Receivables | ||||
Gross receivables | 902,016 | 986,769 | ||
Restricted Receivables | 7,798,882 | 7,431,634 | ||
Off-Book Receivables | 13,217 | |||
Retained Interests | 2,853 | |||
Maturities of wholesale notes and accounts, retail and other notes, and finance leases | ||||
Total Receivables | 902,016 | 986,769 | ||
Retail | Minimum | ||||
Receivables | ||||
Stated original maturities | 2 years | |||
Retail | Maximum | ||||
Receivables | ||||
Stated original maturities | 6 years | |||
Wholesale | ||||
Receivables | ||||
Gross receivables | 984,832 | 362,870 | ||
Restricted Receivables | 3,153,814 | 3,210,654 | ||
Maturities of wholesale notes and accounts, retail and other notes, and finance leases | ||||
Total Receivables | 984,832 | 362,870 | ||
Wholesale | Maximum | ||||
Receivables | ||||
Stated original maturities | 24 months | |||
Interest-free periods | 12 months | |||
Finance lease receivables | ||||
Receivables | ||||
Gross receivables | 43,061 | 55,964 | ||
Restricted Receivables | 1,964 | 6,526 | ||
Maturities of wholesale notes and accounts, retail and other notes, and finance leases | ||||
Total Receivables | 43,061 | 55,964 | ||
Restricted receivables | ||||
Receivables | ||||
Restricted Receivables | 10,954,660 | 10,648,814 | ||
Commercial revolving accounts receivables | ||||
Receivables | ||||
Gross receivables | 230,817 | |||
Maturities of wholesale notes and accounts, retail and other notes, and finance leases | ||||
Total Receivables | $230,817 |
RECEIVABLES_Details_2
RECEIVABLES (Details 2) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | USD ($) | Retail | Retail committed asset-backed facilities | Retail committed asset-backed facilities | Conduit facilities, $500 million renewable in May 2015 | Conduit facilities, $300 million renewable in May 2015 | Conduit facilities renewable in December 2016 | Conduit facilities renewable in December 2016 | Asset-backed notes | |
item | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Canada | Canada | USD ($) | ||
USD ($) | CAD | |||||||||
Receivables | ||||||||||
Asset-backed transactions securitized | $3,414,656 | $4,405,135 | ||||||||
Outstanding amount of transactions securitized | 6,736,423 | 6,893,949 | ||||||||
Remaining period of transactions securitized | 37 months | 41 months | ||||||||
Maximum borrowing capacity | 13,492,872 | 13,953,995 | 1,631,665 | 500,000 | 300,000 | 505,695 | 585,750 | |||
Term of credit agreement | 2 years | |||||||||
Off-Book Receivables | 13,217 | 13,217 | ||||||||
Number of conduit facilities | 2 | |||||||||
Additional borrowing issued | $367,300 | |||||||||
Number of components of allowance for credit losses | 2 | |||||||||
Number of portfolio segments in which allowance for credit losses is segregated | 3 |
RECEIVABLES_Details_3
RECEIVABLES (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for credit losses: | |||
Beginning balance | $101,953 | $122,320 | $106,673 |
Charge-offs | -17,511 | -20,339 | -38,001 |
Recoveries | 5,455 | 7,228 | -8,794 |
Provision (benefit) | 14,124 | -5,904 | 44,578 |
Foreign currency translation and other | -8,479 | -1,352 | 276 |
Ending balance | 95,542 | 101,953 | 122,320 |
Ending balance: individually evaluated for impairment | 16,065 | 16,811 | 37,778 |
Ending balance: collectively evaluated for impairment | 79,477 | 85,142 | 84,542 |
Receivables: | |||
Total Receivables | 12,884,569 | 12,285,234 | 10,854,596 |
Ending balance: individually evaluated for impairment | 129,088 | 74,694 | 109,947 |
Ending balance: collectively evaluated for impairment | 12,755,481 | 12,210,540 | 10,744,649 |
Retail | |||
Allowance for credit losses: | |||
Beginning balance | 87,701 | 102,560 | 83,233 |
Charge-offs | -12,426 | -14,321 | -28,238 |
Recoveries | 2,941 | 3,488 | -5,206 |
Provision (benefit) | 12,040 | -2,778 | 42,135 |
Foreign currency translation and other | -1,559 | -1,248 | 224 |
Ending balance | 88,697 | 87,701 | 102,560 |
Ending balance: individually evaluated for impairment | 12,736 | 12,946 | 28,266 |
Ending balance: collectively evaluated for impairment | 75,961 | 74,755 | 74,294 |
Receivables: | |||
Total Receivables | 8,745,923 | 8,480,893 | 7,363,384 |
Ending balance: individually evaluated for impairment | 56,791 | 44,139 | 48,195 |
Ending balance: collectively evaluated for impairment | 8,689,132 | 8,436,754 | 7,315,189 |
Wholesale | |||
Allowance for credit losses: | |||
Beginning balance | 7,363 | 11,887 | 12,163 |
Charge-offs | -804 | -238 | -1,857 |
Recoveries | 514 | 674 | -312 |
Provision (benefit) | -133 | -4,901 | 1,245 |
Foreign currency translation and other | -95 | -59 | 24 |
Ending balance | 6,845 | 7,363 | 11,887 |
Ending balance: individually evaluated for impairment | 3,329 | 3,865 | 9,512 |
Ending balance: collectively evaluated for impairment | 3,516 | 3,498 | 2,375 |
Receivables: | |||
Total Receivables | 4,138,646 | 3,573,524 | 3,265,173 |
Ending balance: individually evaluated for impairment | 72,297 | 30,555 | 61,752 |
Ending balance: collectively evaluated for impairment | 4,066,349 | 3,542,969 | 3,203,421 |
Other | |||
Allowance for credit losses: | |||
Beginning balance | 6,889 | 7,873 | 11,277 |
Charge-offs | -4,281 | -5,780 | -7,906 |
Recoveries | 2,000 | 3,066 | -3,276 |
Provision (benefit) | 2,217 | 1,775 | 1,198 |
Foreign currency translation and other | -6,825 | -45 | 28 |
Ending balance | 6,889 | 7,873 | |
Ending balance: collectively evaluated for impairment | 6,889 | 7,873 | |
Receivables: | |||
Total Receivables | 230,817 | 226,039 | |
Ending balance: collectively evaluated for impairment | $230,817 | $226,039 |
RECEIVABLES_Details_4
RECEIVABLES (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Financing receivable, recorded investment | |||
Gross receivables | $12,884,569 | $12,285,234 | $10,854,596 |
Retail | |||
Financing receivable, recorded investment | |||
Gross receivables | 8,745,923 | 8,480,893 | 7,363,384 |
Retail | Titanium | |||
Financing receivable, recorded investment | |||
Gross receivables | 4,866,060 | 4,750,422 | |
Retail | Platinum | |||
Financing receivable, recorded investment | |||
Gross receivables | 2,386,558 | 2,265,690 | |
Retail | Gold | |||
Financing receivable, recorded investment | |||
Gross receivables | 1,254,335 | 1,239,703 | |
Retail | Silver | |||
Financing receivable, recorded investment | |||
Gross receivables | 207,682 | 199,575 | |
Retail | Bronze | |||
Financing receivable, recorded investment | |||
Gross receivables | 31,288 | 25,503 | |
Wholesale | |||
Financing receivable, recorded investment | |||
Gross receivables | 4,138,646 | 3,573,524 | 3,265,173 |
Wholesale | Grade A | |||
Financing receivable, recorded investment | |||
Gross receivables | 2,117,160 | 1,981,226 | |
Wholesale | Grade B | |||
Financing receivable, recorded investment | |||
Gross receivables | 1,572,953 | 1,236,828 | |
Wholesale | Grade C | |||
Financing receivable, recorded investment | |||
Gross receivables | 315,825 | 232,101 | |
Wholesale | Grade D | |||
Financing receivable, recorded investment | |||
Gross receivables | $132,708 | $123,369 |
RECEIVABLES_Details_5
RECEIVABLES (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Financing receivable, recorded investment | |||
Total Past Due | $56,928 | $42,719 | |
Total Receivables | 12,884,569 | 12,285,234 | 10,854,596 |
Retail | |||
Financing receivable, recorded investment | |||
31-60 Days Past Due | 30,567 | 17,638 | |
61-90 Days Past Due | 8,852 | 5,341 | |
Greater Than 90 Days | 16,281 | 14,549 | |
Total Past Due | 55,700 | 37,528 | |
Current | 8,690,223 | 8,443,365 | |
Total Receivables | 8,745,923 | 8,480,893 | 7,363,384 |
Recorded Investment > 90 Days and Accruing | 5,651 | 3,761 | |
Retail | United States | |||
Financing receivable, recorded investment | |||
31-60 Days Past Due | 27,846 | 15,167 | |
61-90 Days Past Due | 8,584 | 5,135 | |
Greater Than 90 Days | 15,884 | 14,154 | |
Total Past Due | 52,314 | 34,456 | |
Current | 7,296,162 | 7,011,299 | |
Total Receivables | 7,348,476 | 7,045,755 | |
Recorded Investment > 90 Days and Accruing | 5,480 | 3,736 | |
Retail | Canada | |||
Financing receivable, recorded investment | |||
31-60 Days Past Due | 2,721 | 2,471 | |
61-90 Days Past Due | 268 | 206 | |
Greater Than 90 Days | 397 | 395 | |
Total Past Due | 3,386 | 3,072 | |
Current | 1,394,061 | 1,432,066 | |
Total Receivables | 1,397,447 | 1,435,138 | |
Recorded Investment > 90 Days and Accruing | 171 | 25 | |
Wholesale | |||
Financing receivable, recorded investment | |||
31-60 Days Past Due | 1,063 | 383 | |
61-90 Days Past Due | 52 | 36 | |
Greater Than 90 Days | 113 | 261 | |
Total Past Due | 1,228 | 680 | |
Current | 4,137,418 | 3,572,844 | |
Total Receivables | 4,138,646 | 3,573,524 | 3,265,173 |
Recorded Investment > 90 Days and Accruing | 88 | 68 | |
Wholesale | United States | |||
Financing receivable, recorded investment | |||
31-60 Days Past Due | 882 | 170 | |
61-90 Days Past Due | 52 | 36 | |
Greater Than 90 Days | 110 | 229 | |
Total Past Due | 1,044 | 435 | |
Current | 3,359,183 | 2,886,444 | |
Total Receivables | 3,360,227 | 2,886,879 | |
Recorded Investment > 90 Days and Accruing | 86 | 55 | |
Wholesale | Canada | |||
Financing receivable, recorded investment | |||
31-60 Days Past Due | 181 | 213 | |
Greater Than 90 Days | 3 | 32 | |
Total Past Due | 184 | 245 | |
Current | 778,235 | 686,400 | |
Total Receivables | 778,419 | 686,645 | |
Recorded Investment > 90 Days and Accruing | $2 | $13 |
RECEIVABLES_Details_6
RECEIVABLES (Details 6) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Unpaid Principal Balance | ||
Period considered for average recorded investment | 13 months | 13 months |
Interest Income Recognized | ||
Delinquency period of accounts considered for recognition of income | 120 days | 120 days |
Minimum account delinquency period for an account to be classified as past due | 30 days | 30 days |
United States | ||
Interest Income Recognized | ||
Receivables on nonaccrual status | 68,135 | 56,771 |
Canada | ||
Interest Income Recognized | ||
Receivables on nonaccrual status | 15,648 | 3,769 |
Retail | United States | ||
Interest Income Recognized | ||
Receivables on nonaccrual status | 22,512 | 29,239 |
Retail | Canada | ||
Interest Income Recognized | ||
Receivables on nonaccrual status | 280 | 918 |
Wholesale | United States | ||
Interest Income Recognized | ||
Receivables on nonaccrual status | 45,623 | 27,532 |
Wholesale | Canada | ||
Interest Income Recognized | ||
Receivables on nonaccrual status | 15,368 | 2,851 |
Individually evaluated for impairment | Retail | ||
Recorded Investment | ||
Total | 56,791 | 44,139 |
Unpaid Principal Balance | ||
Total | 55,606 | 43,207 |
Related Allowance | 12,736 | 12,946 |
Average Recorded Investment | ||
Total | 55,660 | 41,360 |
Interest Income Recognized | ||
Total | 2,358 | 1,646 |
Individually evaluated for impairment | Retail | United States | ||
Recorded Investment | ||
With no related allowance recorded | 23,420 | 16,640 |
With an allowance recorded | 31,945 | 26,951 |
Unpaid Principal Balance | ||
With no related allowance recorded | 23,164 | 16,517 |
With an allowance recorded | 31,029 | 26,143 |
Related Allowance | 12,607 | 12,757 |
Average Recorded Investment | ||
With no related allowance recorded | 20,867 | 10,861 |
With an allowance recorded | 33,308 | 29,833 |
Interest Income Recognized | ||
With no related allowance recorded | 1,112 | 390 |
With an allowance recorded | 1,175 | 1,234 |
Individually evaluated for impairment | Retail | Canada | ||
Recorded Investment | ||
With no related allowance recorded | 960 | |
With an allowance recorded | 466 | 548 |
Unpaid Principal Balance | ||
With no related allowance recorded | 954 | |
With an allowance recorded | 459 | 547 |
Related Allowance | 129 | 189 |
Average Recorded Investment | ||
With no related allowance recorded | 975 | |
With an allowance recorded | 510 | 666 |
Interest Income Recognized | ||
With no related allowance recorded | 53 | |
With an allowance recorded | 18 | 22 |
Individually evaluated for impairment | Wholesale | ||
Recorded Investment | ||
Total | 72,297 | 30,555 |
Unpaid Principal Balance | ||
Total | 72,052 | 30,383 |
Related Allowance | 3,329 | 3,865 |
Average Recorded Investment | ||
Total | 83,876 | 33,763 |
Interest Income Recognized | ||
Total | 2,180 | 979 |
Individually evaluated for impairment | Wholesale | United States | ||
Recorded Investment | ||
With an allowance recorded | 45,868 | 27,693 |
Unpaid Principal Balance | ||
With an allowance recorded | 45,623 | 27,532 |
Related Allowance | 2,220 | 3,442 |
Average Recorded Investment | ||
With an allowance recorded | 45,283 | 30,263 |
Interest Income Recognized | ||
With an allowance recorded | 920 | 854 |
Individually evaluated for impairment | Wholesale | Canada | ||
Recorded Investment | ||
With no related allowance recorded | 11,790 | |
With an allowance recorded | 14,639 | 2,862 |
Unpaid Principal Balance | ||
With no related allowance recorded | 11,790 | |
With an allowance recorded | 14,639 | 2,851 |
Related Allowance | 1,109 | 423 |
Average Recorded Investment | ||
With no related allowance recorded | 21,159 | |
With an allowance recorded | 17,434 | 3,500 |
Interest Income Recognized | ||
With no related allowance recorded | 679 | |
With an allowance recorded | 581 | 125 |
RECEIVABLES_Details_7
RECEIVABLES (Details 7) (Retail, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
item | item | |
Retail | ||
Troubled Debt Restructurings | ||
Number of contracts classified as TDRs | 660 | 765 |
Pre-modification value | $17,496 | $17,472 |
Post-modification value | 15,948 | 15,278 |
Number of cases in which the court has determined the concession | 411 | 514 |
Pre-modification value for cases in which the court has determined the concession | 7,138 | 9,298 |
Post-modification value for cases in which the court has determined the concession | $5,985 | $7,616 |
RECEIVABLES_Details_8
RECEIVABLES (Details 8) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Managed Receivables | |||
Total managed receivables | $12,884,569 | $12,298,451 | $10,901,963 |
Principal More Than 30 Days Delinquent | 56,928 | 42,719 | |
Net Credit Loss (Benefit) | 12,056 | 13,462 | |
Comprised of receivable held in portfolio | 12,884,569 | 12,285,234 | 10,854,596 |
Sold retail and other notes and finance leases | 13,217 | ||
Retail and other notes and finance leases | |||
Managed Receivables | |||
Total managed receivables | 8,745,923 | 8,724,927 | |
Principal More Than 30 Days Delinquent | 55,700 | 42,039 | |
Net Credit Loss (Benefit) | 11,766 | 13,898 | |
Wholesale | |||
Managed Receivables | |||
Total managed receivables | 4,138,646 | 3,573,524 | |
Principal More Than 30 Days Delinquent | 1,228 | 680 | |
Net Credit Loss (Benefit) | 290 | -436 | |
Comprised of receivable held in portfolio | $984,832 | $362,870 |
EQUIPMENT_ON_OPERATING_LEASES_1
EQUIPMENT ON OPERATING LEASES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
EQUIPMENT ON OPERATING LEASES | |||
Equipment on operating leases | $1,657,977 | $1,148,622 | |
Less accumulated depreciation | -199,652 | -174,315 | |
Equipment on operating leases, net | 1,458,325 | 974,307 | |
Depreciation expense | 141,688 | 114,053 | 107,836 |
Lease payments owed to the company for equipment under non-cancelable operating leases | |||
2015 | 137,836 | ||
2016 | 94,417 | ||
2017 | 39,333 | ||
2018 | 14,007 | ||
2019 and thereafter | 3,373 | ||
Total lease payments | $288,966 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in the carrying amount of goodwill | |||
Balance, beginning of year | $115,486 | $117,696 | |
Foreign currency translation adjustment | -2,635 | -2,210 | |
Balance, end of year | 112,851 | 115,486 | 117,696 |
Impairment of goodwill | 0 | 0 | |
Accumulated impairment loss | 0 | ||
Company's intangible asset and related accumulated amortization for its software | |||
Software | 32,205 | 29,596 | |
Accumulated amortization | -23,850 | -22,792 | |
Software, net | 8,355 | 6,804 | |
Amortization expense | 1,125 | 1,002 | 1,010 |
Estimated annual amortization expense | |||
2015 | 1,122 | ||
2016 | 973 | ||
2017 | 812 | ||
2018 | 629 | ||
2019 | $182 |
OTHER_ASSETS_Details
OTHER ASSETS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
OTHER ASSETS | ||
Tax receivables | $66,872 | $8,917 |
Deferred debt issuance costs | 39,470 | 45,240 |
Deferred tax assets | 21,146 | |
Derivative assets | 7,543 | 6,189 |
Property and equipment, net | 116 | 151 |
Prepaid assets | 58 | 53 |
Other current assets | 10,559 | 10,409 |
Total other assets | $145,764 | $70,959 |
CREDIT_FACILITIES_AND_DEBT_Det
CREDIT FACILITIES AND DEBT (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2012 | Nov. 30, 2011 | Apr. 30, 2013 | Oct. 31, 2013 | Jun. 30, 2014 | |
item | |||||||
Debt | |||||||
Total Facility/Debt | $13,492,872,000 | $13,953,995,000 | |||||
Short-Term Outstanding | 1,305,695,000 | 1,906,566,000 | |||||
Current Maturities of Long-Term Outstanding | 3,326,513,000 | 2,382,623,000 | |||||
Long-Term Outstanding | 8,193,039,000 | 8,345,588,000 | |||||
Available | 667,625,000 | 1,319,218,000 | |||||
Minimum annual repayments of long-term debt | |||||||
2016 | 3,154,279,000 | ||||||
2017 | 2,086,280,000 | ||||||
2018 | 2,011,810,000 | ||||||
2019 | 876,320,000 | ||||||
2020 and thereafter | 64,350,000 | ||||||
Total | 8,193,039,000 | 8,345,588,000 | |||||
Other disclosure | |||||||
Weighted-average interest rate on total short-term debt outstanding (as a percent) | 1.20% | 1.10% | |||||
Weighted- average interest rate on total long-term debt (as a percent) | 1.90% | 1.80% | |||||
CNH Global | |||||||
Support Agreement | |||||||
Number of preceding fiscal quarters added to the current quarter used in calculating the consolidated fixed charges coverage ratio under support agreement | 3 | ||||||
Period of prior written notice | 30 days | ||||||
Long-term rated indebtedness outstanding | 0 | ||||||
CNH Global | Minimum | |||||||
Support Agreement | |||||||
Consolidated fixed charges coverage ratio | 1.05 | ||||||
Ownership percentage required to be maintained in the company | 51.00% | ||||||
Consolidated tangible net worth threshold | 50,000,000 | ||||||
Committed Asset-Backed Facilities | |||||||
Debt | |||||||
Total Facility/Debt | 3,008,160,000 | 3,719,724,000 | |||||
Short-Term Outstanding | 1,305,695,000 | 1,906,566,000 | |||||
Current Maturities of Long-Term Outstanding | 332,521,000 | 163,225,000 | |||||
Long-Term Outstanding | 952,319,000 | 680,715,000 | |||||
Available | 417,625,000 | 969,218,000 | |||||
Minimum annual repayments of long-term debt | |||||||
Total | 952,319,000 | 680,715,000 | |||||
Committed Asset-Backed Facilities | Maximum | |||||||
Other disclosure | |||||||
Maturity period of receivables | 7 years | ||||||
Retail | Maximum | |||||||
Debt | |||||||
Total Facility/Debt | 1,631,665,000 | ||||||
Retail | United States | |||||||
Debt | |||||||
Total Facility/Debt | 1,200,000,000 | 1,200,000,000 | |||||
Current Maturities of Long-Term Outstanding | 186,382,000 | 107,147,000 | |||||
Long-Term Outstanding | 604,765,000 | 443,891,000 | |||||
Available | 408,853,000 | 648,962,000 | |||||
Minimum annual repayments of long-term debt | |||||||
Total | 604,765,000 | 443,891,000 | |||||
Retail | Canada | |||||||
Debt | |||||||
Total Facility/Debt | 431,665,000 | 470,009,000 | |||||
Current Maturities of Long-Term Outstanding | 91,497,000 | 37,380,000 | |||||
Long-Term Outstanding | 331,396,000 | 156,422,000 | |||||
Available | 8,772,000 | 276,207,000 | |||||
Minimum annual repayments of long-term debt | |||||||
Total | 331,396,000 | 156,422,000 | |||||
Wholesale VFN | United States | |||||||
Debt | |||||||
Total Facility/Debt | 800,000,000 | 1,400,000,000 | |||||
Short-Term Outstanding | 800,000,000 | 1,400,000,000 | |||||
Wholesale VFN | Canada | |||||||
Debt | |||||||
Total Facility/Debt | 505,695,000 | 550,615,000 | |||||
Short-Term Outstanding | 505,695,000 | 506,566,000 | |||||
Available | 44,049,000 | ||||||
Leases | United States | |||||||
Debt | |||||||
Total Facility/Debt | 70,800,000 | 99,100,000 | |||||
Current Maturities of Long-Term Outstanding | 54,642,000 | 18,698,000 | |||||
Long-Term Outstanding | 16,158,000 | 80,402,000 | |||||
Minimum annual repayments of long-term debt | |||||||
Total | 16,158,000 | 80,402,000 | |||||
Secured Debt | |||||||
Debt | |||||||
Total Facility/Debt | 7,136,638,000 | 7,385,131,000 | |||||
Current Maturities of Long-Term Outstanding | 2,243,992,000 | 2,219,398,000 | |||||
Long-Term Outstanding | 4,892,646,000 | 5,165,733,000 | |||||
Minimum annual repayments of long-term debt | |||||||
Total | 4,892,646,000 | 5,165,733,000 | |||||
Amortizing Retail Term ABS | |||||||
Debt | |||||||
Total Facility/Debt | 6,734,455,000 | 6,872,706,000 | |||||
Current Maturities of Long-Term Outstanding | 2,214,854,000 | 2,124,267,000 | |||||
Long-Term Outstanding | 4,519,601,000 | 4,748,439,000 | |||||
Minimum annual repayments of long-term debt | |||||||
Total | 4,519,601,000 | 4,748,439,000 | |||||
Other ABS Financing | |||||||
Debt | |||||||
Total Facility/Debt | 34,883,000 | 145,125,000 | |||||
Current Maturities of Long-Term Outstanding | 29,138,000 | 95,131,000 | |||||
Long-Term Outstanding | 5,745,000 | 49,994,000 | |||||
Minimum annual repayments of long-term debt | |||||||
Total | 5,745,000 | 49,994,000 | |||||
Wholesale Term | United States | |||||||
Debt | |||||||
Total Facility/Debt | 367,300,000 | 367,300,000 | |||||
Long-Term Outstanding | 367,300,000 | 367,300,000 | |||||
Minimum annual repayments of long-term debt | |||||||
Total | 367,300,000 | 367,300,000 | |||||
Unsecured Facilities | |||||||
Other disclosure | |||||||
Debt issued | 250,000,000 | ||||||
Revolving credit facilities | |||||||
Debt | |||||||
Total Facility/Debt | 350,000,000 | 350,000,000 | |||||
Long-Term Outstanding | 100,000,000 | ||||||
Available | 250,000,000 | 350,000,000 | |||||
Minimum annual repayments of long-term debt | |||||||
Total | 100,000,000 | ||||||
Other disclosure | |||||||
Debt issued | 100,000,000 | ||||||
Unsecured Debt | 250,000,000 | ||||||
Unsecured Debt: | |||||||
Debt | |||||||
Total Facility/Debt | 2,998,074,000 | 2,499,140,000 | |||||
Current Maturities of Long-Term Outstanding | 750,000,000 | ||||||
Long-Term Outstanding | 2,248,074,000 | 2,499,140,000 | |||||
Minimum annual repayments of long-term debt | |||||||
Total | 2,248,074,000 | 2,499,140,000 | |||||
Notes | |||||||
Debt | |||||||
Total Facility/Debt | 2,848,074,000 | 2,349,140,000 | |||||
Current Maturities of Long-Term Outstanding | 750,000,000 | ||||||
Long-Term Outstanding | 2,098,074,000 | 2,349,140,000 | |||||
Fair value hedge adjustment | -680,000 | 860,000 | |||||
Debt Discount | 2,606,000 | ||||||
Minimum annual repayments of long-term debt | |||||||
Total | 2,098,074,000 | 2,349,140,000 | |||||
Term loan | |||||||
Debt | |||||||
Total Facility/Debt | 150,000,000 | 150,000,000 | |||||
Long-Term Outstanding | 150,000,000 | 150,000,000 | |||||
Minimum annual repayments of long-term debt | |||||||
Total | 150,000,000 | 150,000,000 | |||||
Other disclosure | |||||||
Debt issued | 150,000,000 | ||||||
3.875% unsecured notes due 2015 | |||||||
Other disclosure | |||||||
Debt issued | 750,000,000 | ||||||
Interest rate margin (as a percent) | 3.88% | ||||||
6.25% unsecured debt due 2016 | |||||||
Other disclosure | |||||||
Debt issued | 500,000,000 | ||||||
Interest rate margin (as a percent) | 6.25% | ||||||
3.625% unsecured notes due 2018 | |||||||
Other disclosure | |||||||
Debt issued | 600,000,000 | ||||||
Interest rate margin (as a percent) | 3.63% | ||||||
3.25% unsecured notes due 2017 | |||||||
Other disclosure | |||||||
Debt issued | 500,000,000 | ||||||
Interest rate margin (as a percent) | 3.25% | ||||||
3.375% unsecured notes due 2019 | |||||||
Other disclosure | |||||||
Debt issued | $500,000,000 | ||||||
Interest rate margin (as a percent) | 3.38% |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Sources of income before taxes | |||||||||||
Domestic | $291,290 | $300,032 | $248,461 | ||||||||
Foreign | 95,078 | 101,130 | 81,232 | ||||||||
INCOME BEFORE TAXES | 386,368 | 401,162 | 329,693 | ||||||||
Current income tax expense (benefit): | |||||||||||
Domestic | -4,159 | 77,406 | 80,255 | ||||||||
Foreign | 45,632 | 22,519 | 22,600 | ||||||||
Total current income tax expense | 41,473 | 99,925 | 102,855 | ||||||||
Deferred income tax expense (benefit): | |||||||||||
Domestic | 108,836 | 29,497 | 15,848 | ||||||||
Foreign | -23,191 | 5,400 | -2,591 | ||||||||
Total deferred income tax expense | 85,645 | 34,897 | 13,257 | ||||||||
Total tax provision | $29,951 | $29,762 | $32,598 | $34,807 | $32,077 | $35,527 | $37,475 | $29,743 | $127,118 | $134,822 | $116,112 |
Reconciliation of statutory and effective income tax rate | |||||||||||
Tax provision at statutory rate (as a percent) | 35.00% | 35.00% | 35.00% | ||||||||
State taxes (as a percent) | 3.20% | 4.50% | 5.00% | ||||||||
Foreign taxes (as a percent) | -5.00% | -5.00% | -4.70% | ||||||||
Tax contingencies (as a percent) | -0.10% | 0.10% | -0.30% | ||||||||
Tax credits and incentives (as a percent) | -0.10% | -0.20% | -0.30% | ||||||||
Tax rate and legislative changes (as a percent) | 0.70% | ||||||||||
Other (as a percent) | -0.10% | -0.80% | -0.20% | ||||||||
Total tax provision effective rate (as a percent) | 32.90% | 33.60% | 35.20% |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components of net deferred tax assets | ||
Pension, postretirement and post employment benefits | $2,864 | $3,520 |
Marketing and sales incentive programs | 81,326 | 68,770 |
Allowance for credit losses | 33,512 | 33,784 |
Other accrued liabilities | 9,868 | 19,814 |
Tax loss and tax credit carry forwards | 11,644 | 9,114 |
Total deferred tax assets | 139,214 | 135,002 |
Deferred tax liabilities: | ||
Equipment on operating lease | 311,717 | 219,896 |
Deferred tax liability, net | ($172,503) | ($84,894) |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of the gross amounts of tax contingencies at the beginning and end of the year | |||
Balance, beginning of year | $5,423 | $5,830 | $6,907 |
Reductions for tax positions of prior years | -492 | -367 | -119 |
Settlements | -4,923 | -40 | -958 |
Balance, end of year | 8 | 5,423 | 5,830 |
Unrecognized tax benefits | |||
Amount of unrecognized tax benefits that, if recognized, would affect the annual effective income tax rate | -1,919 | ||
Interest and penalties related to unrecognized tax benefits | -3,187 | 307 | -527 |
Expected future payment of interest and penalties accrued related to unrecognized tax benefits | -424 | 2,880 | 2,793 |
Income tax examinations | |||
Undistributed earnings of non-U.S. subsidiaries | 442,000 | ||
Tax detriment (benefit) on the active financing income | -2,671 | 2,671 | |
Income Tax Examination, Estimate of Possible Loss | 5,959 | ||
Income Tax Examination, Penalties and Interest Expense | -4,887 | ||
Income Tax Examination, Increase (Decrease) in Liability from Prior Year | $1,072 |
FINANCIAL_INSTRUMENTS_Details
FINANCIAL INSTRUMENTS (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
FINANCIAL INSTRUMENTS | |
Maximum length of time of interest rate derivative instruments designated in cash flow hedge relationships | 48 months |
After-tax losses deferred in accumulated other comprehensive (loss) income that will be recognized in interest expense over the next 12 months | $1,825 |
FINANCIAL_INSTRUMENTS_Details_
FINANCIAL INSTRUMENTS (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair market value of derivatives | |||
Derivative assets designated as hedging instruments, classified in other assets | $680 | $98 | |
Derivative liabilities designated as hedging instruments, classified in accounts payable and other accrued liabilities | 212 | 860 | |
Interest rate derivatives, derivative assets not designated as hedging instruments, classified in other assets | 6,727 | 6,023 | |
Foreign exchange contracts, derivatives not designated as hedging instruments, classified in other assets | 136 | 68 | |
Derivative assets not designated as hedging instruments, classified in other assets | 6,863 | 6,091 | |
Interest rate derivatives, derivative not designated as hedging instruments, classified in accounts payable and other accrued liabilities | 6,727 | 6,023 | |
Cash Flow Hedges, Recognized in accumulated other comprehensive income (effective portion), Interest rate derivatives | -747 | -774 | -254 |
Cash Flow Hedges, Reclassified from accumulated other comprehensive income (effective portion), Interest rate derivatives - Interest expense to third parties | -4,502 | -6,138 | -6,971 |
Cash Flow Hedges, Recognized directly in income (ineffective portion), Interest rate derivatives - Other expenses | 20 | ||
Interest rate derivatives, other expenses, not designated as hedges | -53 | ||
Foreign exchange contracts, other expenses, not designated as hedges | -285 | -138 | 5 |
Interest Rate Derivatives | |||
Fair market value of derivatives | |||
Total notional amount of interest rate derivatives | 3,457,267 | 2,007,460 | |
Thirteen-month average notional amounts of interest rate derivatives | $3,074,793 | $2,732,953 |
FINANCIAL_INSTRUMENTS_Details_1
FINANCIAL INSTRUMENTS (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Liabilities | ||
Assets transferred between Level 1, Level 2 and Level 3 | $0 | $0 |
Liabilities transferred between Level 1, Level 2 and Level 3 | 0 | 0 |
Recurring | Level 2 | ||
Assets | ||
Interest rate derivatives | 7,407 | 6,121 |
Foreign exchange contracts | 136 | 68 |
Total assets | 7,543 | 6,189 |
Liabilities | ||
Interest rate derivatives | 6,939 | 6,883 |
Total liabilities | 6,939 | 6,883 |
Recurring | Level 3 | ||
Assets | ||
Retained interests | 2,853 | |
Total assets | 2,853 | |
Recurring | Estimated Fair Value | ||
Assets | ||
Interest rate derivatives | 7,407 | 6,121 |
Foreign exchange contracts | 136 | 68 |
Retained interests | 2,853 | |
Total assets | 7,543 | 9,042 |
Liabilities | ||
Interest rate derivatives | 6,939 | 6,883 |
Total liabilities | $6,939 | $6,883 |
FINANCIAL_INSTRUMENTS_Details_2
FINANCIAL INSTRUMENTS (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets, Fair Value Disclosure [Abstract] | |||
Equipment held for sale | $129,700 | $40,750 | |
Equipment | Non recurring basis | Level 2 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Equipment held for sale | 74,418 | ||
Retained Interests | |||
Changes in Level 3 fair-value category | |||
Balance at the beginning of the period | 2,853 | 9,271 | 17,289 |
Total gains or losses (realized/unrealized) included in earnings | 220 | 856 | 1,005 |
Total gains or losses (realized/unrealized) included in other comprehensive income | -284 | 1,635 | |
Settlements | -3,073 | -6,990 | -10,658 |
Balance at the end of the period | 2,853 | 9,271 | |
Derivative Financial Instruments | |||
Changes in Level 3 fair-value category | |||
Balance at the beginning of the period | 15 | ||
Total gains or losses (realized/unrealized) included in earnings | 65 | ||
Total gains or losses (realized/unrealized) included in other comprehensive income | ($80) |
FINANCIAL_INSTRUMENTS_Details_3
FINANCIAL INSTRUMENTS (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Instruments Not Carried at Fair Value | ||
Receivables | $12,789,027 | $12,183,281 |
Long-term debt | 8,193,039 | 8,345,588 |
Carrying Amount | ||
Financial Instruments Not Carried at Fair Value | ||
Receivables | 12,789,027 | 12,183,281 |
Long-term debt | 8,193,039 | 8,345,588 |
Estimated Fair Value | ||
Financial Instruments Not Carried at Fair Value | ||
Receivables | 12,854,705 | 12,216,915 |
Long-term debt | $8,195,209 | $8,457,438 |
SEGMENT_AND_GEOGRAPHICAL_INFOR2
SEGMENT AND GEOGRAPHICAL INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment And Geographical Information | |||||||||||
Revenues | $246,039 | $233,960 | $233,764 | $220,988 | $221,937 | $218,187 | $212,332 | $205,665 | $934,751 | $858,121 | $834,004 |
Interest expense | 78,516 | 74,115 | 70,669 | 63,128 | 69,918 | 64,997 | 62,932 | 59,475 | 286,428 | 257,322 | 254,073 |
Segment net income | 259,250 | 266,340 | 213,581 | ||||||||
Depreciation and amortization | 142,852 | 115,092 | 108,902 | ||||||||
Expenditures for equipment on operating leases | 996,858 | 620,561 | 459,477 | ||||||||
Provision (benefit) for credit losses, net | 14,124 | -5,904 | 44,578 | ||||||||
Additional disclosures | |||||||||||
Segment assets | 15,909,565 | 14,986,704 | 15,909,565 | 14,986,704 | 13,346,529 | ||||||
Managed receivables | 12,884,569 | 12,298,451 | 12,884,569 | 12,298,451 | 10,901,963 | ||||||
Eliminations. | |||||||||||
Segment And Geographical Information | |||||||||||
Revenues | -4,887 | -5,134 | -3,092 | ||||||||
Interest expense | -4,887 | -5,134 | -3,092 | ||||||||
Additional disclosures | |||||||||||
Segment assets | -214,269 | -214,030 | -214,269 | -214,030 | -225,351 | ||||||
United States | |||||||||||
Segment And Geographical Information | |||||||||||
Segment net income | 186,611 | 197,707 | 152,854 | ||||||||
Depreciation and amortization | 108,074 | 81,979 | 76,145 | ||||||||
Expenditures for equipment on operating leases | 861,815 | 501,599 | 355,076 | ||||||||
Provision (benefit) for credit losses, net | 10,706 | -9,323 | 33,875 | ||||||||
Additional disclosures | |||||||||||
Managed receivables | 10,708,704 | 10,147,225 | 10,708,704 | 10,147,225 | 8,849,079 | ||||||
United States | Operating segment | |||||||||||
Segment And Geographical Information | |||||||||||
Revenues | 741,869 | 666,776 | 644,900 | ||||||||
Interest expense | 236,835 | 209,435 | 202,208 | ||||||||
Additional disclosures | |||||||||||
Segment assets | 13,430,826 | 12,536,638 | 13,430,826 | 12,536,638 | 11,016,740 | ||||||
Canada | |||||||||||
Segment And Geographical Information | |||||||||||
Segment net income | 72,639 | 68,633 | 60,727 | ||||||||
Depreciation and amortization | 34,778 | 33,113 | 32,757 | ||||||||
Expenditures for equipment on operating leases | 135,043 | 118,962 | 104,401 | ||||||||
Provision (benefit) for credit losses, net | 3,418 | 3,419 | 10,703 | ||||||||
Additional disclosures | |||||||||||
Managed receivables | 2,175,865 | 2,151,226 | 2,175,865 | 2,151,226 | 2,052,884 | ||||||
Canada | Operating segment | |||||||||||
Segment And Geographical Information | |||||||||||
Revenues | 197,769 | 196,479 | 192,196 | ||||||||
Interest expense | 54,480 | 53,021 | 54,957 | ||||||||
Additional disclosures | |||||||||||
Segment assets | $2,693,008 | $2,664,096 | $2,693,008 | $2,664,096 | $2,555,140 |
RELATEDPARTY_TRANSACTIONS_AFFI2
RELATED-PARTY TRANSACTIONS/ AFFILIATED DEBT (Details) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Share data, unless otherwise specified | Oct. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | USD ($) | USD ($) | USD ($) | CNH Industrial North America | CNH Industrial North America | CNH Industrial North America | CNH Industrial America LLC | CNH Industrial America LLC | CNH Industrial Canada LLC | CNH Industrial Canada LLC | CNH Industrial Canada LLC | CNH Industrial Canada LLC | CNH Industrial Canada LLC | Other affiliates | Other affiliates | Other affiliates | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNH Industrial Capital Canada Ltd | CNH Industrial Capital Canada Ltd | CNH Industrial Capital Canada Ltd | USD ($) | USD ($) | USD ($) | |||||
USD ($) | CAD | ||||||||||||||||
RELATED-PARTY TRANSACTIONS | |||||||||||||||||
Retail subsidy | $228,023 | $219,171 | $209,952 | ||||||||||||||
Wholesale subsidy | 161,308 | 158,313 | 148,997 | 1,584 | 2,784 | ||||||||||||
Operating lease subsidy | 48,035 | 35,889 | 30,376 | ||||||||||||||
Lending funds | 352 | 69 | 2 | ||||||||||||||
Total interest and other income from affiliates | 437,435 | 414,957 | 392,463 | ||||||||||||||
Rate of accounts and notes receivable (as a percent) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |||||||||||
Rate of debt due (as a percent) | 3.92% | 3.92% | 5.05% | 4.97% | |||||||||||||
Affiliated receivables | 58,731 | 110,148 | 39,677 | 80,786 | 6,763 | 17,071 | 12,291 | 12,291 | |||||||||
Affiliated debt | 862,445 | 351,004 | 713,230 | 274,525 | 149,215 | 76,479 | |||||||||||
Tax receivable due from related party | 62,515 | 6,044 | |||||||||||||||
Other information | |||||||||||||||||
Accounts payable and other accrued liabilities payable to related parties | 5,282 | 3,716 | |||||||||||||||
Payment received on tax receivable purchased from affiliate | 68,707 | ||||||||||||||||
Interest expense to related affiliates | 30,477 | 24,105 | 34,512 | ||||||||||||||
Assets Held-for-sale, Current | 129,700 | 40,750 | 19,541 | ||||||||||||||
Shares of preferred stock owned by affiliated entity | 76,618,488 | 76,618,488 | 76,618,488 | ||||||||||||||
Reference rate for dividends | 12-month LIBOR | ||||||||||||||||
Margin on reference rate for dividends (as a percent) | 1.20% | 1.20% | 1.20% | ||||||||||||||
Dividends paid to CNH Industrial Canada Ltd. | $23,803 | $23,803 | 25,684 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
COMMITMENTS AND CONTINGENCIES | |
Payment guarantees on the financial debt of various foreign financial services subsidiaries | $243,235 |
Wholesale and dealer financing | |
Commitments | |
Total credit limit | 6,519,538 |
Utilized | $4,036,119 |
SUPPLEMENTAL_CONDENSED_CONSOLI2
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUES | |||||||||||
Interest income on retail notes and finance leases | $204,452 | $181,342 | $178,444 | ||||||||
Interest income on wholesale notes | 74,450 | 63,760 | 62,213 | ||||||||
Interest and other income from affiliates | 437,435 | 414,957 | 392,463 | ||||||||
Rental income on operating leases | 165,914 | 138,937 | 133,806 | ||||||||
Other income | 52,500 | 59,125 | 67,078 | ||||||||
Total revenues | 246,039 | 233,960 | 233,764 | 220,988 | 221,937 | 218,187 | 212,332 | 205,665 | 934,751 | 858,121 | 834,004 |
Interest expense: | |||||||||||
Interest expense to third parties | 255,951 | 233,217 | 219,561 | ||||||||
Interest expense to affiliates | 30,477 | 24,105 | 34,512 | ||||||||
Total interest expense | 78,516 | 74,115 | 70,669 | 63,128 | 69,918 | 64,997 | 62,932 | 59,475 | 286,428 | 257,322 | 254,073 |
Administrative and operating expenses: | |||||||||||
Fees charged by affiliates | 49,539 | 56,405 | 61,895 | ||||||||
Provision (benefit) for credit losses | 14,124 | -5,904 | 44,578 | ||||||||
Depreciation of equipment on operating leases | 141,688 | 114,053 | 107,836 | ||||||||
Other expenses | 56,604 | 35,083 | 35,929 | ||||||||
Total administrative and operating expenses | 72,741 | 71,393 | 61,835 | 55,986 | 51,802 | 52,335 | 42,913 | 52,587 | 261,955 | 199,637 | 250,238 |
Total expenses | 548,383 | 456,959 | 504,311 | ||||||||
Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method | 386,368 | 401,162 | 329,693 | ||||||||
Income tax provision (benefit) | 29,951 | 29,762 | 32,598 | 34,807 | 32,077 | 35,527 | 37,475 | 29,743 | 127,118 | 134,822 | 116,112 |
NET INCOME | 259,250 | 266,340 | 213,581 | ||||||||
Net income attributed to noncontrolling interest | -292 | -273 | -334 | -328 | -312 | -373 | -357 | -418 | -1,227 | -1,460 | -1,645 |
NET INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | 64,539 | 58,417 | 68,328 | 66,739 | 67,828 | 64,955 | 68,655 | 63,442 | 258,023 | 264,880 | 211,936 |
COMPREHENSIVE INCOME | 203,250 | 225,764 | 231,513 | ||||||||
Comprehensive income attributed to noncontrolling interest | -1,227 | -1,460 | -1,645 | ||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | 202,023 | 224,304 | 229,868 | ||||||||
CNH Industrial Capital LLC | |||||||||||
REVENUES | |||||||||||
Interest and other income from affiliates | 96,352 | 69,589 | 7,437 | ||||||||
Total revenues | 96,352 | 69,589 | 7,437 | ||||||||
Interest expense: | |||||||||||
Interest expense to third parties | 124,629 | 93,941 | 48,848 | ||||||||
Interest expense to affiliates | 255 | ||||||||||
Total interest expense | 124,629 | 93,941 | 49,103 | ||||||||
Administrative and operating expenses: | |||||||||||
Other expenses | 1 | 1 | 1 | ||||||||
Total administrative and operating expenses | 1 | 1 | 1 | ||||||||
Total expenses | 124,630 | 93,942 | 49,104 | ||||||||
Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method | -28,278 | -24,353 | -41,667 | ||||||||
Income tax provision (benefit) | -10,873 | -9,393 | -16,327 | ||||||||
Equity in income of consolidated subsidiaries accounted for under the equity method | 275,428 | 279,840 | 237,276 | ||||||||
NET INCOME | 258,023 | 264,880 | 211,936 | ||||||||
NET INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | 258,023 | 264,880 | 211,936 | ||||||||
COMPREHENSIVE INCOME | 202,023 | 224,304 | 229,868 | ||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | 202,023 | 224,304 | 229,868 | ||||||||
Guarantor Entities | |||||||||||
REVENUES | |||||||||||
Interest income on retail notes and finance leases | 9,696 | 572 | 11,488 | ||||||||
Interest income on wholesale notes | -1,292 | -1,001 | -830 | ||||||||
Interest and other income from affiliates | 220,950 | 214,317 | 178,848 | ||||||||
Rental income on operating leases | 108,568 | 80,765 | 82,280 | ||||||||
Other income | 142,031 | 135,543 | 113,748 | ||||||||
Total revenues | 479,953 | 430,196 | 385,534 | ||||||||
Interest expense: | |||||||||||
Interest expense to third parties | -7,328 | 17 | 6,838 | ||||||||
Interest expense to affiliates | 245,133 | 212,552 | 146,665 | ||||||||
Total interest expense | 237,805 | 212,569 | 153,503 | ||||||||
Administrative and operating expenses: | |||||||||||
Fees charged by affiliates | 40,103 | 45,403 | 50,591 | ||||||||
Provision (benefit) for credit losses | -1,300 | -13,380 | -563 | ||||||||
Depreciation of equipment on operating leases | 93,549 | 64,822 | 65,107 | ||||||||
Other expenses | 55,836 | 36,575 | 32,999 | ||||||||
Total administrative and operating expenses | 188,188 | 133,420 | 148,134 | ||||||||
Total expenses | 425,993 | 345,989 | 301,637 | ||||||||
Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method | 53,960 | 84,207 | 83,897 | ||||||||
Income tax provision (benefit) | 19,097 | 30,212 | 33,663 | ||||||||
Equity in income of consolidated subsidiaries accounted for under the equity method | 240,565 | 225,845 | 187,042 | ||||||||
NET INCOME | 275,428 | 279,840 | 237,276 | ||||||||
NET INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | 275,428 | 279,840 | 237,276 | ||||||||
COMPREHENSIVE INCOME | 219,428 | 239,262 | 255,208 | ||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | 219,428 | 239,262 | 255,208 | ||||||||
CNH Industrial Capital America LLC | |||||||||||
Condensed Statements of Comprehensive Income | |||||||||||
Ownership percentage | 100.00% | 100.00% | |||||||||
New Holland Credit Company LLC | |||||||||||
Condensed Statements of Comprehensive Income | |||||||||||
Ownership percentage | 100.00% | 100.00% | |||||||||
All Other Subsidiaries | |||||||||||
REVENUES | |||||||||||
Interest income on retail notes and finance leases | 194,756 | 180,770 | 166,956 | ||||||||
Interest income on wholesale notes | 75,742 | 64,761 | 63,043 | ||||||||
Interest and other income from affiliates | 382,145 | 361,773 | 354,010 | ||||||||
Rental income on operating leases | 57,346 | 58,172 | 51,526 | ||||||||
Other income | 7,681 | 10,088 | 34,780 | ||||||||
Total revenues | 717,670 | 675,564 | 670,315 | ||||||||
Interest expense: | |||||||||||
Interest expense to third parties | 138,650 | 139,259 | 163,875 | ||||||||
Interest expense to affiliates | 47,356 | 42,275 | 35,424 | ||||||||
Total interest expense | 186,006 | 181,534 | 199,299 | ||||||||
Administrative and operating expenses: | |||||||||||
Fees charged by affiliates | 106,648 | 97,508 | 92,754 | ||||||||
Provision (benefit) for credit losses | 15,424 | 7,476 | 45,141 | ||||||||
Depreciation of equipment on operating leases | 48,139 | 49,231 | 42,729 | ||||||||
Other expenses | 767 | -1,493 | 2,929 | ||||||||
Total administrative and operating expenses | 170,978 | 152,722 | 183,553 | ||||||||
Total expenses | 356,984 | 334,256 | 382,852 | ||||||||
Income (loss) before income taxes and equity in income of consolidated subsidiaries accounted for under the equity method | 360,686 | 341,308 | 287,463 | ||||||||
Income tax provision (benefit) | 118,894 | 114,003 | 98,776 | ||||||||
NET INCOME | 241,792 | 227,305 | 188,687 | ||||||||
Net income attributed to noncontrolling interest | -1,227 | -1,460 | -1,645 | ||||||||
NET INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | 240,565 | 225,845 | 187,042 | ||||||||
COMPREHENSIVE INCOME | 194,587 | 192,320 | 204,003 | ||||||||
Comprehensive income attributed to noncontrolling interest | -1,227 | -1,460 | -1,645 | ||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | 193,360 | 190,860 | 202,358 | ||||||||
Eliminations | |||||||||||
REVENUES | |||||||||||
Interest and other income from affiliates | -262,012 | -230,722 | -147,832 | ||||||||
Other income | -97,212 | -86,506 | -81,450 | ||||||||
Total revenues | -359,224 | -317,228 | -229,282 | ||||||||
Interest expense: | |||||||||||
Interest expense to affiliates | -262,012 | -230,722 | -147,832 | ||||||||
Total interest expense | -262,012 | -230,722 | -147,832 | ||||||||
Administrative and operating expenses: | |||||||||||
Fees charged by affiliates | -97,212 | -86,506 | -81,450 | ||||||||
Total administrative and operating expenses | -97,212 | -86,506 | -81,450 | ||||||||
Total expenses | -359,224 | -317,228 | -229,282 | ||||||||
Equity in income of consolidated subsidiaries accounted for under the equity method | -515,993 | -505,685 | -424,318 | ||||||||
NET INCOME | -515,993 | -505,685 | -424,318 | ||||||||
NET INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | -515,993 | -505,685 | -424,318 | ||||||||
COMPREHENSIVE INCOME | -412,788 | -430,122 | -457,566 | ||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | ($412,788) | ($430,122) | ($457,566) |
SUPPLEMENTAL_CONDENSED_CONSOLI3
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
ASSETS | ||||
Cash and cash equivalents | $347,987 | $697,608 | $785,913 | $594,093 |
Restricted cash | 858,825 | 784,508 | ||
Receivables, less allowance for credit losses | 12,789,027 | 12,183,281 | ||
Retained interests in securitized receivables | 2,853 | |||
Affiliated accounts and notes receivable | 58,731 | 110,148 | ||
Equipment on operating leases, net | 1,458,325 | 974,307 | ||
Equipment held for sale | 129,700 | 40,750 | ||
Goodwill and intangible assets, net | 121,206 | 122,290 | ||
Other assets | 145,764 | 70,959 | ||
TOTAL | 15,909,565 | 14,986,704 | 13,346,529 | |
Liabilities: | ||||
Short-term debt, including current maturities of long-term debt | 4,632,208 | 4,289,189 | ||
Accounts payable and other accrued liabilities | 645,941 | 490,506 | ||
Affiliated debt | 862,445 | 351,004 | ||
Long-term debt | 8,193,039 | 8,345,588 | ||
Total liabilities | 14,333,633 | 13,476,287 | ||
Stockholder's equity | 1,575,932 | 1,510,417 | 1,483,411 | 1,247,245 |
TOTAL | 15,909,565 | 14,986,704 | ||
CNH Industrial Capital LLC | ||||
ASSETS | ||||
Affiliated accounts and notes receivable | 2,749,776 | 2,245,308 | ||
Investments in consolidated subsidiaries accounted for under the equity method | 1,923,861 | 1,703,364 | ||
Other assets | 20,778 | 23,142 | ||
TOTAL | 4,694,415 | 3,971,814 | ||
Liabilities: | ||||
Short-term debt, including current maturities of long-term debt | 750,000 | |||
Accounts payable and other accrued liabilities | 56,261 | 20,685 | ||
Long-term debt | 2,348,074 | 2,499,140 | ||
Total liabilities | 3,154,335 | 2,519,825 | ||
Stockholder's equity | 1,540,080 | 1,451,989 | ||
TOTAL | 4,694,415 | 3,971,814 | ||
Guarantor Entities | ||||
ASSETS | ||||
Cash and cash equivalents | 225,343 | 308,507 | 257,001 | 306,208 |
Restricted cash | 100 | 100 | ||
Receivables, less allowance for credit losses | 1,845,524 | 1,504,614 | ||
Retained interests in securitized receivables | 5,202 | |||
Affiliated accounts and notes receivable | 1,712,656 | 1,780,263 | ||
Equipment on operating leases, net | 1,128,542 | 636,383 | ||
Equipment held for sale | 121,190 | 35,035 | ||
Investments in consolidated subsidiaries accounted for under the equity method | 2,228,741 | 1,931,092 | ||
Goodwill and intangible assets, net | 89,927 | 88,376 | ||
Other assets | 77,597 | 15,857 | ||
TOTAL | 7,429,620 | 6,305,429 | ||
Liabilities: | ||||
Short-term debt, including current maturities of long-term debt | 19,128 | 76,869 | ||
Accounts payable and other accrued liabilities | 2,162,159 | 2,004,157 | ||
Affiliated debt | 3,320,828 | 2,487,997 | ||
Long-term debt | 3,644 | 33,042 | ||
Total liabilities | 5,505,759 | 4,602,065 | ||
Stockholder's equity | 1,923,861 | 1,703,364 | ||
TOTAL | 7,429,620 | 6,305,429 | ||
All Other Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 122,644 | 389,101 | 528,912 | 287,885 |
Restricted cash | 858,725 | 784,408 | ||
Receivables, less allowance for credit losses | 10,943,503 | 10,678,667 | ||
Retained interests in securitized receivables | 2,596 | |||
Affiliated accounts and notes receivable | 1,365,447 | 1,462,388 | ||
Equipment on operating leases, net | 329,783 | 337,924 | ||
Equipment held for sale | 8,510 | 5,715 | ||
Goodwill and intangible assets, net | 31,279 | 33,914 | ||
Other assets | 51,637 | 31,960 | ||
TOTAL | 13,711,528 | 13,726,673 | ||
Liabilities: | ||||
Short-term debt, including current maturities of long-term debt | 3,863,080 | 4,212,320 | ||
Accounts payable and other accrued liabilities | 860,231 | 798,110 | ||
Affiliated debt | 882,303 | 913,317 | ||
Long-term debt | 5,841,321 | 5,813,406 | ||
Total liabilities | 11,446,935 | 11,737,153 | ||
Stockholder's equity | 2,264,593 | 1,989,520 | ||
TOTAL | 13,711,528 | 13,726,673 | ||
Eliminations | ||||
ASSETS | ||||
Retained interests in securitized receivables | -4,945 | |||
Affiliated accounts and notes receivable | -5,769,148 | -5,377,811 | ||
Investments in consolidated subsidiaries accounted for under the equity method | -4,152,602 | -3,634,456 | ||
Other assets | -4,248 | |||
TOTAL | -9,925,998 | -9,017,212 | ||
Liabilities: | ||||
Accounts payable and other accrued liabilities | -2,432,710 | -2,332,446 | ||
Affiliated debt | -3,340,686 | -3,050,310 | ||
Total liabilities | -5,773,396 | -5,382,756 | ||
Stockholder's equity | -4,152,602 | -3,634,456 | ||
TOTAL | ($9,925,998) | ($9,017,212) |
SUPPLEMENTAL_CONDENSED_CONSOLI4
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net cash from (used in) operating activities | $542,016 | $417,990 | $526,581 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Cost of receivables acquired | -19,051,010 | -20,631,860 | -19,639,227 |
Proceeds from sales and collections of receivables | 18,241,277 | 19,044,038 | 18,305,941 |
Changes in restricted cash | -86,450 | -65,756 | 43,589 |
Purchase of equipment on operating leases, net | -727,636 | -349,207 | -209,598 |
Other investing activities | -2,685 | -3,320 | -2,314 |
Net cash from (used in) investing activities | -1,626,504 | -2,006,105 | -1,501,609 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Intercompany activity | 524,696 | -507,796 | 43,239 |
Net increase (decrease) in indebtedness | 348,974 | 2,207,606 | 1,123,609 |
Dividends paid to CNH Industrial America LLC | -115,000 | -200,000 | |
Preferred dividend paid to CNH Industrial Canada Ltd. | -23,803 | ||
Net cash from (used in) financing activities | 734,867 | 1,499,810 | 1,166,848 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -349,621 | -88,305 | 191,820 |
CASH AND CASH EQUIVALENTS | |||
Beginning of year | 697,608 | 785,913 | 594,093 |
End of year | 347,987 | 697,608 | 785,913 |
CNH Industrial Capital LLC | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net cash from (used in) operating activities | -483,934 | -899,140 | -740,547 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Intercompany activity | -9,453 | ||
Net increase (decrease) in indebtedness | 598,934 | 1,099,140 | 750,000 |
Dividends paid to CNH Industrial America LLC | -115,000 | -200,000 | |
Net cash from (used in) financing activities | 483,934 | 899,140 | 740,547 |
Guarantor Entities | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net cash from (used in) operating activities | 178,599 | 480,974 | -1,069,674 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Cost of receivables acquired | -15,819,248 | -16,948,609 | -15,802,666 |
Proceeds from sales and collections of receivables | 15,480,203 | 16,591,756 | 15,499,698 |
Purchase of equipment on operating leases, net | -665,734 | -270,607 | -118,412 |
Other investing activities | -2,676 | -3,279 | -2,300 |
Net cash from (used in) investing activities | -1,007,455 | -630,739 | -423,680 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Intercompany activity | 832,831 | 341,327 | 1,543,710 |
Net increase (decrease) in indebtedness | -87,139 | -140,056 | -99,563 |
Net cash from (used in) financing activities | 745,692 | 201,271 | 1,444,147 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -83,164 | 51,506 | -49,207 |
CASH AND CASH EQUIVALENTS | |||
Beginning of year | 308,507 | 257,001 | 306,208 |
End of year | 225,343 | 308,507 | 257,001 |
All Other Subsidiaries | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net cash from (used in) operating activities | 556,278 | -68,842 | 915,730 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Cost of receivables acquired | -15,532,463 | -16,438,038 | -17,733,851 |
Proceeds from sales and collections of receivables | 15,062,472 | 15,206,469 | 16,703,466 |
Changes in restricted cash | -86,450 | -65,756 | 43,589 |
Purchase of equipment on operating leases, net | -61,902 | -78,600 | -91,186 |
Other investing activities | -9 | -41 | -14 |
Net cash from (used in) investing activities | -618,352 | -1,375,966 | -1,077,996 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Intercompany activity | -17,759 | 56,475 | -69,879 |
Net increase (decrease) in indebtedness | -162,821 | 1,248,522 | 473,172 |
Preferred dividend paid to CNH Industrial Canada Ltd. | -23,803 | ||
Net cash from (used in) financing activities | -204,383 | 1,304,997 | 403,293 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -266,457 | -139,811 | 241,027 |
CASH AND CASH EQUIVALENTS | |||
Beginning of year | 389,101 | 528,912 | 287,885 |
End of year | 122,644 | 389,101 | 528,912 |
Eliminations | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net cash from (used in) operating activities | 291,073 | 904,998 | 1,421,072 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Cost of receivables acquired | 12,300,701 | 12,754,787 | 13,897,290 |
Proceeds from sales and collections of receivables | -12,301,398 | -12,754,187 | -13,897,223 |
Net cash from (used in) investing activities | -697 | 600 | 67 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Intercompany activity | -290,376 | -905,598 | -1,421,139 |
Net cash from (used in) financing activities | ($290,376) | ($905,598) | ($1,421,139) |
SUPPLEMENTAL_QUARTERLY_INFORMA2
SUPPLEMENTAL QUARTERLY INFORMATION (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
SUPPLEMENTAL QUARTERLY INFORMATION (UNAUDITED) | |||||||||||
Revenues | $246,039 | $233,960 | $233,764 | $220,988 | $221,937 | $218,187 | $212,332 | $205,665 | $934,751 | $858,121 | $834,004 |
Interest expense | 78,516 | 74,115 | 70,669 | 63,128 | 69,918 | 64,997 | 62,932 | 59,475 | 286,428 | 257,322 | 254,073 |
Administrative and operating expenses | 72,741 | 71,393 | 61,835 | 55,986 | 51,802 | 52,335 | 42,913 | 52,587 | 261,955 | 199,637 | 250,238 |
Income tax provision | 29,951 | 29,762 | 32,598 | 34,807 | 32,077 | 35,527 | 37,475 | 29,743 | 127,118 | 134,822 | 116,112 |
Net income attributed to noncontrolling interest | -292 | -273 | -334 | -328 | -312 | -373 | -357 | -418 | -1,227 | -1,460 | -1,645 |
NET INCOME ATTRIBUTABLE TO CNH INDUSTRIAL CAPITAL LLC | $64,539 | $58,417 | $68,328 | $66,739 | $67,828 | $64,955 | $68,655 | $63,442 | $258,023 | $264,880 | $211,936 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (Subsequent event, Amortizing asset-backed notes) | Feb. 26, 2015 | Feb. 26, 2015 | Mar. 04, 2015 |
In Thousands, unless otherwise specified | Canada | Canada | United States |
USD ($) | CAD | USD ($) | |
Subsequent Events | |||
Debt issued | $260,904 | 324,853 | $800,000 |