Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2023 shares | |
Document and Entity Information | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Transition Report | false |
Document Period End Date | Sep. 30, 2023 |
Entity File Number | 000-55510 |
Entity Registrant Name | CNH INDUSTRIAL CAPITAL LLC |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 39-1937630 |
Entity Address, Address Line One | 5729 Washington Avenue |
Entity Address, City or Town | Racine |
Entity Address, State or Province | WI |
Entity Address, Postal Zip Code | 53406 |
City Area Code | 262 |
Local Phone Number | 636-6011 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 0 |
Entity Central Index Key | 0001552493 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
REVENUES | ||||
Interest income on retail notes and finance leases | $ 73,092 | $ 54,888 | $ 210,942 | $ 150,637 |
Rental income on operating leases | 61,414 | 61,657 | 175,914 | 188,243 |
Revolving charge account income | 10,455 | 28,781 | ||
Interest income on wholesale notes | 18,370 | 8,043 | 42,301 | 19,731 |
Interest and other income from affiliates | 111,913 | 67,488 | 291,586 | 195,027 |
Other income | 3,153 | 7,481 | 4,505 | 22,604 |
Total revenues | 278,397 | 199,557 | 754,029 | 576,242 |
Interest expense: | ||||
Interest expense to third parties | 134,557 | 62,539 | 346,916 | 147,831 |
Interest expense to affiliates | 10,180 | 2,933 | 23,613 | 4,632 |
Total interest expense | 144,737 | 65,472 | 370,529 | 152,463 |
Administrative and operating expenses: | ||||
Fees charged by affiliates | 13,359 | 12,946 | 40,346 | 36,519 |
Provision (benefit) for credit losses | 6,649 | (1,825) | 11,217 | 2,944 |
Depreciation of equipment on operating leases | 44,598 | 50,086 | 134,325 | 153,444 |
Other expenses, net | 3,261 | 3,416 | 11,500 | (564) |
Total administrative and operating expenses | 67,867 | 64,623 | 197,388 | 192,343 |
Total expenses | 212,604 | 130,095 | 567,917 | 344,806 |
INCOME BEFORE TAXES | 65,793 | 69,462 | 186,112 | 231,436 |
Income tax provision | 15,093 | 16,159 | 41,413 | 54,752 |
NET INCOME | $ 50,700 | $ 53,303 | $ 144,699 | $ 176,684 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
NET INCOME | $ 50,700 | $ 53,303 | $ 144,699 | $ 176,684 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (7,790) | (37,238) | 5,282 | (47,830) |
Pension liability adjustment | (180) | (158) | (547) | (512) |
Change in derivative financial instruments | 4 | 1,572 | (2,776) | 11,931 |
Total other comprehensive income (loss) | (7,966) | (35,824) | 1,959 | (36,411) |
COMPREHENSIVE INCOME | $ 42,734 | $ 17,479 | $ 146,658 | $ 140,273 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash | $ 235,560 | $ 262,244 |
Restricted cash and cash equivalents | 374,721 | 446,335 |
Receivables, less allowance for credit losses of $118,944 and $125,012, respectively | 12,700,749 | 10,741,820 |
Affiliated accounts and notes receivable | 283,787 | 53,509 |
Equipment on operating leases, net | 1,415,452 | 1,472,973 |
Equipment held for sale | 14,467 | 11,685 |
Goodwill | 108,773 | 108,567 |
Other intangible assets, net | 17,854 | 18,388 |
Other assets | 83,019 | 63,958 |
TOTAL | 15,234,382 | 13,179,479 |
Liabilities: | ||
Short-term debt (including current maturities of long-term debt) | 4,581,015 | 4,096,426 |
Accounts payable and other accrued liabilities | 974,511 | 1,046,688 |
Affiliated debt | 511,883 | 341,531 |
Long-term debt | 7,686,899 | 6,387,135 |
Total liabilities | 13,754,308 | 11,871,780 |
Commitments and contingent liabilities (Note 11) | ||
Stockholder's equity: | ||
Member's capital | ||
Paid-in capital | 869,739 | 844,022 |
Accumulated other comprehensive loss | (135,874) | (137,833) |
Retained earnings | 746,209 | 601,510 |
Total stockholder's equity | 1,480,074 | 1,307,699 |
TOTAL | $ 15,234,382 | $ 13,179,479 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Allowance for credit losses | $ 118,944 | $ 125,012 |
Restricted cash and cash equivalents | 374,721 | 446,335 |
Receivables, less allowance for credit losses of $52,818 and $55,645, respectively | 12,700,749 | 10,741,820 |
TOTAL | 15,234,382 | 13,179,479 |
Short-term debt (including current maturities of long-term debt) | 4,581,015 | 4,096,426 |
Long-term debt | 7,686,899 | 6,387,135 |
Total liabilities | 13,754,308 | 11,871,780 |
Consolidated variable interest entities ("VIEs") | ||
Allowance for credit losses | 52,818 | 55,645 |
Restricted cash and cash equivalents | 374,721 | 446,335 |
Receivables, less allowance for credit losses of $52,818 and $55,645, respectively | 7,266,652 | 6,927,032 |
TOTAL | 7,641,373 | 7,373,367 |
Short-term debt (including current maturities of long-term debt) | 3,288,164 | 3,120,860 |
Long-term debt | 3,701,524 | 3,599,575 |
Total liabilities | $ 6,989,688 | $ 6,720,435 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income | $ 50,700 | $ 53,303 | $ 144,699 | $ 176,684 |
Adjustments to reconcile net income to net cash from (used in) operating activities: | ||||
Depreciation on property and equipment and equipment on operating leases | 134,331 | 153,450 | ||
Amortization of intangibles | 2,164 | 1,632 | ||
Provision for credit losses | 6,649 | (1,825) | 11,217 | 2,944 |
Deferred income tax expense (benefit) | (27,881) | (31,375) | ||
Changes in components of working capital: | ||||
Change in affiliated accounts and notes receivables | 916 | 206,788 | ||
Change in other assets and equipment held for sale | (24,029) | (6,130) | ||
Change in accounts payable and other accrued liabilities | (43,686) | 11,612 | ||
Net cash from (used in) operating activities | 197,731 | 515,605 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Cost of receivables acquired | (13,392,367) | (10,325,233) | ||
Collections of receivables | 11,440,578 | 9,238,310 | ||
Change in affiliated cash pooling receivables, net | (223,389) | |||
Cost of affiliated notes receivables acquired | (14,000) | |||
Collections of affiliated notes receivables | 8,000 | |||
Purchase of equipment on operating leases | (129,566) | (107,810) | (357,375) | (354,324) |
Proceeds from disposal of equipment on operating leases | 282,817 | 374,439 | ||
Change in property, equipment and software | (1,630) | (2,029) | ||
Net cash from (used in) investing activities | (2,257,366) | (1,068,837) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of affiliated debt | 1,308,327 | 670,960 | ||
Payment of affiliated debt | (1,137,975) | (446,072) | ||
Proceeds from issuance of long-term debt | 4,252,037 | 2,594,387 | ||
Payment of long-term debt | (2,531,760) | (2,780,848) | ||
Change in committed asset-backed facilities, net | (160,996) | (10,760) | ||
Change in short-term borrowings, net | 206,704 | 152,973 | ||
Dividends paid to CNH Industrial America LLC | (110,000) | |||
Proceeds from capital contribution | 25,000 | |||
Net cash from (used in) financing activities | 1,961,337 | 70,640 | ||
DECREASE IN CASH AND RESTRICTED CASH AND CASH EQUIVALENTS | (98,298) | (482,592) | ||
CASH AND RESTRICTED CASH AND CASH EQUIVALENTS | ||||
Beginning of period | 708,579 | 1,028,659 | ||
End of period | 610,281 | 546,067 | 610,281 | 546,067 |
COMPONENTS OF CASH AND RESTRICTED CASH AND CASH EQUIVALENTS | ||||
Cash | 235,560 | 105,915 | 235,560 | 105,915 |
Restricted cash and cash equivalents | 374,721 | 440,152 | 374,721 | 440,152 |
End of period | $ 610,281 | $ 546,067 | $ 610,281 | $ 546,067 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY - USD ($) $ in Thousands | Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total |
BALANCE at Dec. 31, 2021 | $ 843,469 | $ (111,457) | $ 517,388 | $ 1,249,400 |
Increase (Decrease) in Stockholder's Equity | ||||
Net income | 63,487 | 63,487 | ||
Dividends paid to CNH Industrial America LLC | (25,000) | (25,000) | ||
Foreign currency translation adjustment | 9,154 | 9,154 | ||
Stock compensation | 101 | 101 | ||
Pension liability adjustment, net of tax | (186) | (186) | ||
Change in derivative financial instruments, net of tax | 6,451 | 6,451 | ||
BALANCE at Mar. 31, 2022 | 843,570 | (96,038) | 555,875 | 1,303,407 |
BALANCE at Dec. 31, 2021 | 843,469 | (111,457) | 517,388 | 1,249,400 |
Increase (Decrease) in Stockholder's Equity | ||||
Net income | 176,684 | |||
Foreign currency translation adjustment | (47,830) | |||
Pension liability adjustment, net of tax | (512) | |||
Change in derivative financial instruments, net of tax | 11,931 | |||
BALANCE at Sep. 30, 2022 | 843,868 | (147,868) | 584,072 | 1,280,072 |
BALANCE at Mar. 31, 2022 | 843,570 | (96,038) | 555,875 | 1,303,407 |
Increase (Decrease) in Stockholder's Equity | ||||
Net income | 59,894 | 59,894 | ||
Dividends paid to CNH Industrial America LLC | (65,000) | (65,000) | ||
Foreign currency translation adjustment | (19,746) | (19,746) | ||
Stock compensation | 134 | 134 | ||
Pension liability adjustment, net of tax | (168) | (168) | ||
Change in derivative financial instruments, net of tax | 3,908 | 3,908 | ||
BALANCE at Jun. 30, 2022 | 843,704 | (112,044) | 550,769 | 1,282,429 |
Increase (Decrease) in Stockholder's Equity | ||||
Net income | 53,303 | 53,303 | ||
Dividends paid to CNH Industrial America LLC | (20,000) | (20,000) | ||
Foreign currency translation adjustment | (37,238) | (37,238) | ||
Stock compensation | 164 | 164 | ||
Pension liability adjustment, net of tax | (158) | (158) | ||
Change in derivative financial instruments, net of tax | 1,572 | 1,572 | ||
BALANCE at Sep. 30, 2022 | 843,868 | (147,868) | 584,072 | 1,280,072 |
BALANCE at Dec. 31, 2022 | 844,022 | (137,833) | 601,510 | 1,307,699 |
Increase (Decrease) in Stockholder's Equity | ||||
Net income | 46,301 | 46,301 | ||
Foreign currency translation adjustment | (294) | (294) | ||
Stock compensation | 196 | 196 | ||
Pension liability adjustment, net of tax | (181) | (181) | ||
Change in derivative financial instruments, net of tax | (2,393) | (2,393) | ||
BALANCE at Mar. 31, 2023 | 844,218 | (140,701) | 647,811 | 1,351,328 |
BALANCE at Dec. 31, 2022 | 844,022 | (137,833) | 601,510 | 1,307,699 |
Increase (Decrease) in Stockholder's Equity | ||||
Net income | 144,699 | |||
Foreign currency translation adjustment | 5,282 | |||
Pension liability adjustment, net of tax | (547) | |||
Change in derivative financial instruments, net of tax | (2,776) | |||
BALANCE at Sep. 30, 2023 | 869,739 | (135,874) | 746,209 | 1,480,074 |
BALANCE at Mar. 31, 2023 | 844,218 | (140,701) | 647,811 | 1,351,328 |
Increase (Decrease) in Stockholder's Equity | ||||
Net income | 47,698 | 47,698 | ||
Foreign currency translation adjustment | 13,366 | 13,366 | ||
Stock compensation | 253 | 253 | ||
Pension liability adjustment, net of tax | (186) | (186) | ||
Change in derivative financial instruments, net of tax | (387) | (387) | ||
BALANCE at Jun. 30, 2023 | 844,471 | (127,908) | 695,509 | 1,412,072 |
Increase (Decrease) in Stockholder's Equity | ||||
Net income | 50,700 | 50,700 | ||
Foreign currency translation adjustment | (7,790) | (7,790) | ||
Stock compensation | 268 | 268 | ||
Pension liability adjustment, net of tax | (180) | (180) | ||
Change in derivative financial instruments, net of tax | 4 | 4 | ||
Capital contribution | 25,000 | 25,000 | ||
BALANCE at Sep. 30, 2023 | $ 869,739 | $ (135,874) | $ 746,209 | $ 1,480,074 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2023 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1: BASIS OF PRESENTATION CNH Industrial Capital LLC and its primary operating subsidiaries, including New Holland Credit Company, LLC (“New Holland Credit”), CNH Industrial Capital America LLC (“CNH Industrial Capital America”) and CNH Industrial Capital Canada Ltd. (“CNH Industrial Capital Canada”) (collectively, “CNH Industrial Capital” or the “Company”), are each a subsidiary of CNH Industrial America LLC (“CNH Industrial America”), which is an indirect wholly-owned subsidiary of CNH Industrial N.V. (“CNHI” and, together with its consolidated subsidiaries, “CNH Industrial”). CNH Industrial America and CNH Industrial Canada Ltd. (collectively, “CNH Industrial North America”) design, manufacture, and sell agricultural and construction equipment. CNH Industrial Capital provides financial services for CNH Industrial North America dealers and end-use customers primarily located in the United States and Canada. CNHI is incorporated in and under the laws of The Netherlands. CNHI has its corporate seat in Amsterdam, The Netherlands, and its principal office in Basildon, England. The common shares of CNHI are listed on the New York Stock Exchange under the symbol “CNHI,” as well as on the Mercato Telematico Azionario managed by Borsa Italiana S.p.A. The Company has prepared the accompanying consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, which should be read in conjunction with the audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2022. Certain financial information that is normally included in annual financial statements prepared in conformity with U.S. GAAP, which is not required for interim reporting purposes, has been condensed or omitted. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of our interim unaudited financial statements have been reflected. The consolidated financial statements include the Company and its consolidated subsidiaries. The consolidated financial statements are expressed in U.S. dollars. The consolidated financial statements include the accounts of the Company’s subsidiaries in which the Company has a controlling financial interest and reflect the noncontrolling interests of the minority owners of the subsidiaries that are not fully owned for the periods presented, as applicable. A controlling financial interest may exist based on ownership of a majority of the voting interest of a subsidiary, or based on the Company’s determination that it is the primary beneficiary of a variable interest entity (“VIE”). The primary beneficiary of a VIE is the party that has the power to direct the activities that most significantly impact the economic performance of the entity and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity. The Company assesses whether it is the primary beneficiary on an ongoing basis, as prescribed by the accounting guidance on the consolidation of VIEs. The consolidated status of the VIEs with which the Company is involved may change as a result of such reassessments. The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and reported amounts of revenues and expenses. Significant estimates in these consolidated financial statements include the allowance for credit losses and residual values of equipment on operating leases. Actual results could differ from these estimates. Certain reclassifications have been made to prior period amounts to conform to current period presentation. These reclassifications did not have an impact on the Company’s results of operations or financial position as of December 31, 2022 or September 30, 2022. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2023 | |
NEW ACCOUNTING PRONOUNCEMENTS | |
NEW ACCOUNTING PRONOUNCEMENTS | NOTE 2: NEW ACCOUNTING PRONOUNCEMENTS New Accounting Pronouncements Adopted In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Sep. 30, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | NOTE 3: ACCUMULATED OTHER COMPREHENSIVE INCOME Accumulated other comprehensive income (“AOCI”) includes net income plus other comprehensive income, which includes foreign currency translation gains and losses, certain changes in pension plans and changes in fair value of certain derivatives designated as cash flow hedges. The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the three months ended September 30, 2023: Currency Unrealized Translation Pension (Losses) Gains Adjustment Liability on Derivatives Total Beginning balance, gross $ (138,182) $ 2,077 $ 11,605 $ (124,500) Tax liability — (501) (2,907) (3,408) Beginning balance, net of tax (138,182) 1,576 8,698 (127,908) Other comprehensive income (loss) before reclassifications (7,790) (102) 812 (7,080) Amounts reclassified from accumulated other comprehensive income (loss) — (135) (781) (916) Tax effects — 57 (27) 30 Net current-period other comprehensive income (loss) (7,790) (180) 4 (7,966) Total $ (145,972) $ 1,396 $ 8,702 $ (135,874) The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the nine months ended September 30, 2023: Currency Unrealized Translation Pension (Losses) Gains Adjustment Liability on Derivatives Total Beginning balance, gross $ (151,254) $ 2,563 $ 15,288 $ (133,403) Tax liability — (620) (3,810) (4,430) Beginning balance, net of tax (151,254) 1,943 11,478 (137,833) Other comprehensive income (loss) before reclassifications 5,282 (318) (1,809) 3,155 Amounts reclassified from accumulated other comprehensive income (loss) — (405) (1,843) (2,248) Tax effects — 176 876 1,052 Net current-period other comprehensive income (loss) 5,282 (547) (2,776) 1,959 Total $ (145,972) $ 1,396 $ 8,702 $ (135,874) The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the three months ended September 30, 2022: Currency Unrealized Translation Pension (Losses) Gains Adjustment Liability Derivatives Total Beginning balance, gross $ (123,210) $ 1,983 $ 12,911 $ (108,316) Tax liability — (473) (3,255) (3,728) Beginning balance, net of tax (123,210) 1,510 9,656 (112,044) Other comprehensive income (loss) before reclassifications (37,238) (59) 2,439 (34,858) Amounts reclassified from accumulated other comprehensive income (loss) — (150) (342) (492) Tax effects — 51 (525) (474) Net current-period other comprehensive income (loss) (37,238) (158) 1,572 (35,824) Total $ (160,448) $ 1,352 $ 11,228 $ (147,868) The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the nine months ended September 30, 2022: Currency Unrealized Translation Pension (Losses) Gains Adjustment Liability Derivatives Total Beginning balance, gross $ (112,618) $ 2,451 $ (956) $ (111,123) Tax asset (liability) — (587) 253 (334) Beginning balance, net of tax (112,618) 1,864 (703) (111,457) Other comprehensive income (loss) before reclassifications (47,830) (229) 16,521 (31,538) Amounts reclassified from accumulated other comprehensive income (loss) — (447) (557) (1,004) Tax effects — 164 (4,033) (3,869) Net current-period other comprehensive income (loss) (47,830) (512) 11,931 (36,411) Total $ (160,448) $ 1,352 $ 11,228 $ (147,868) The reclassifications out of AOCI were immaterial for the three and nine months ended September 30, 2023 and 2022. |
RECEIVABLES
RECEIVABLES | 9 Months Ended |
Sep. 30, 2023 | |
RECEIVABLES | |
RECEIVABLES | NOTE 4: RECEIVABLES A summary of receivables included in the consolidated balance sheets as of September 30, 2023 and December 31, 2022 is as follows: September 30, December 31, 2023 2022 Retail notes $ 1,422,379 $ 1,241,775 Revolving charge accounts 265,775 207,744 Finance leases 191,850 198,064 Wholesale 1,321,229 875,628 Restricted receivables 9,618,460 8,343,621 Gross receivables 12,819,693 10,866,832 Less: Allowance for credit losses (118,944) (125,012) Total receivables, net $ 12,700,749 $ 10,741,820 Restricted Receivables and Securitization As part of its overall funding strategy, the Company periodically transfers certain receivables into special purpose entities (“SPEs”) as part of its asset-backed securitization (“ABS”) programs. SPEs utilized in the securitization programs differ from other entities included in the Company’s consolidated financial statements because the assets they hold are legally isolated from the Company’s assets. For bankruptcy analysis purposes, the Company has sold the receivables to the SPEs in a true sale and the SPEs are separate legal entities. Upon transfer of the receivables to the SPEs, the receivables and certain cash flows derived from them become restricted for use in meeting obligations to the SPEs’ creditors. The SPEs have ownership of cash balances that also have restrictions for the benefit of the SPEs’ investors. The Company’s interests in the SPEs’ receivables are subordinate to the interests of third-party investors. 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 receivables as of September 30, 2023 and December 31, 2022: September 30, December 31, 2023 2022 Retail notes $ 6,108,827 $ 5,835,445 Wholesale 3,509,633 2,508,176 Total restricted receivables $ 9,618,460 $ 8,343,621 Within the U.S. retail notes securitization programs, qualifying retail notes are sold to bankruptcy-remote SPEs. In turn, these SPEs establish separate trusts, which are VIEs, to either transfer receivables in exchange for proceeds from asset-backed securities issued by the trusts, or pledge the receivables as collateral in exchange for proceeds from a committed asset-backed facility. In Canada, qualifying retail notes are transferred directly to trusts, which are also VIEs. The VIEs are consolidated since the Company has both the power to direct the activities that most significantly impact the VIEs’ economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. With regard to the wholesale receivable securitization programs, the Company sells eligible receivables on a revolving basis to structured master trust facilities, which are bankruptcy-remote SPEs. These trusts were determined to be VIEs. In its role as servicer, the Company 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, the Company has consolidated these wholesale trusts. Allowance for Credit Losses The allowance for credit losses is the Company’s estimate of the lifetime expected credit losses inherent in the receivables owned by the Company. Retail customer receivables primarily include retail notes and finance leases to end-use customers. Revolving charge accounts represent financing for customers to purchase parts, service, rentals, implements and attachments from CNH Industrial North America dealers. Wholesale receivables include dealer floorplan financing, and to a lesser extent, the financing of dealer operations. Typically, the Company’s receivables within a geographic area have similar risk profiles and methods for assessing and monitoring risk. Retail customer receivables that share the same risk characteristics, such as collateralization levels, geography, product type and other relevant factors, are reviewed on a collective basis using measurement models and management judgment. The allowance for credit losses on retail customer receivables is based on loss forecast models that consider a variety of factors that include, but are not limited to, historical loss experience, collateral value, portfolio balance and delinquency. The loss forecast models are updated on a quarterly basis. The calculation is adjusted for forward-looking macroeconomic factors, such as GDP and Net Farm Income. The forward-looking macroeconomic factors are updated quarterly. In addition, qualitative factors that are not fully captured in the loss forecast models are considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective and require a degree of management judgment. Wholesale receivables that share the same risk characteristics, such as collateralization levels, term, geography and other relevant factors, are reviewed on a collective basis using measurement models and management judgment. The allowance for wholesale credit losses is based on loss forecast models that consider a variety of factors that include, but are not limited to, historical loss experience, collateral value, portfolio balance and delinquency. The loss forecast models are updated on a quarterly basis. The calculation is adjusted for forward-looking macroeconomic factors, such as industry sales volumes. The forward-looking macroeconomic factors are updated quarterly. In addition, qualitative factors that are not fully captured in the loss forecast models are considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective and require a degree of management judgment. Retail customer receivables and wholesale receivables that do not have similar risk characteristics are individually reviewed based on, among other items, amounts outstanding, days past due and prior collection history. Expected credit losses are measured by considering: the probability-weighted estimates of cash flows and collateral value; the time value of money; current conditions and forecasts of future economic conditions. Expected credit losses are measured as the probability-weighted present value of all cash shortfalls (including the value of the collateral, if appropriate) over the expected life of each financial asset. Charge-offs of principal amounts of receivables outstanding are deducted from the allowance at the point when it is estimated that amounts due are deemed uncollectible. Revolving charge accounts are generally deemed to be uncollectible and charged-off to the allowance for credit losses when delinquency reaches 120 days. Allowance for credit losses activity for the three months ended September 30, 2023 is as follows: Revolving Retail Charge Customer Accounts Wholesale Total Allowance for credit losses: Beginning balance $ 99,965 $ 8,662 $ 6,493 $ 115,120 Charge-offs (1,771) (1,231) — (3,002) Recoveries 313 4 5 322 Provision (benefit) 4,378 2,305 (34) 6,649 Foreign currency translation and other (123) (8) (14) (145) Ending balance $ 102,762 $ 9,732 $ 6,450 $ 118,944 Allowance for credit losses activity for the nine months ended September 30, 2023 is as follows: Revolving Retail Charge Customer Accounts Wholesale Total Allowance for credit losses: Beginning balance $ 110,341 $ 8,519 $ 6,152 $ 125,012 Charge-offs (12,741) (5,916) — (18,657) Recoveries 1,226 5 21 1,252 Provision 3,828 7,119 270 11,217 Foreign currency translation and other 108 5 7 120 Ending balance $ 102,762 $ 9,732 $ 6,450 $ 118,944 Receivables: Ending balance $ 7,723,056 $ 265,775 $ 4,830,862 $ 12,819,693 The allowance for credit losses increased during the third quarter, driven by an increase in specific reserve needs on retail customers and growth in the revolving charge account portfolio. For the nine months ended September 30, 2023, the allowance for credit losses decreased due to lower specific reserve needs for retail customers and the continued strong outlook for the agricultural industry, offset by growth in the revolving charge account portfolio. Allowance for credit losses activity for the three months ended September 30, 2022 is as follows: Retail Customer Wholesale Total Allowance for credit losses: Beginning balance, as previously reported $ 105,937 $ 5,467 $ 111,404 Charge-offs (1,689) — (1,689) Recoveries 739 508 1,247 Provision (benefit) (1,410) (415) (1,825) Foreign currency translation and other (743) (36) (779) Ending balance $ 102,834 $ 5,524 $ 108,358 Allowance for credit losses activity for the nine months ended September 30, 2022 is as follows: Retail Customer Wholesale Total Allowance for credit losses: Beginning balance $ 109,742 $ 6,211 $ 115,953 Charge-offs (7,164) (4,631) (11,795) Recoveries 1,632 523 2,155 Provision (benefit) (527) 3,471 2,944 Foreign currency translation and other (849) (50) (899) Ending balance $ 102,834 $ 5,524 $ 108,358 Receivables: Ending balance $ 7,166,320 $ 2,823,528 $ 9,989,848 The Company assesses and monitors the credit quality of its receivables based on past due information. Receivables are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Delinquency is reported on receivables greater than 30 days past due. As the terms for the retail customer receivables are greater than one year, the past due information is presented by year of origination. The aging of receivables and charge-offs as of September 30, 2023 are as follows: Greater Net 31 – 60 Days 61 – 90 Days Than Total Total Charge-offs Past Due Past Due 90 Days Past Due Current Receivables (Recoveries) Retail customer United States 2023 $ 3,913 $ 909 $ 861 $ 5,683 $ 2,130,137 $ 2,135,820 $ 189 2022 10,443 2,343 5,458 18,244 2,011,048 2,029,292 2,254 2021 7,344 3,269 3,639 14,252 1,192,754 1,207,006 1,783 2020 5,046 1,503 31,281 37,830 542,831 580,661 2,609 2019 2,058 655 1,946 4,659 219,910 224,569 2,714 Prior to 2019 920 463 3,831 5,214 99,800 105,014 2,139 Total $ 29,724 $ 9,142 $ 47,016 $ 85,882 $ 6,196,480 $ 6,282,362 $ 11,688 Canada 2023 $ 321 $ — $ — $ 321 $ 432,407 $ 432,728 $ 73 2022 685 66 1,030 1,781 462,070 463,851 149 2021 807 157 1,992 2,956 330,194 333,150 744 2020 694 231 879 1,804 132,596 134,400 (265) 2019 237 92 451 780 55,703 56,483 187 Prior to 2019 44 3 473 520 19,562 20,082 165 Total $ 2,788 $ 549 $ 4,825 $ 8,162 $ 1,432,532 $ 1,440,694 $ 1,053 Revolving charge accounts United States $ 4,977 $ 2,547 $ 1,485 $ 9,009 $ 237,998 $ 247,007 $ 5,542 Canada $ 458 $ 219 $ 87 $ 764 $ 18,004 $ 18,768 $ 374 Wholesale United States $ 4 $ — $ 4 $ 8 $ 3,997,726 $ 3,997,734 $ — Canada $ — $ — $ — $ — $ 833,128 $ 833,128 $ — Total Retail customer $ 32,512 $ 9,691 $ 51,841 $ 94,044 $ 7,629,012 $ 7,723,056 $ 12,741 Revolving charge accounts $ 5,435 $ 2,766 $ 1,572 $ 9,773 $ 256,002 $ 265,775 $ 5,916 Wholesale $ 4 $ — $ 4 $ 8 $ 4,830,854 $ 4,830,862 $ — The aging of receivables as of December 31, 2022 is as follows: Greater 31 – 60 Days 61 – 90 Days Than Total Total Past Due Past Due 90 Days Past Due Current Receivables Retail customer United States 2022 $ 6,258 $ 976 $ 350 $ 7,584 $ 2,728,247 $ 2,735,831 2021 6,610 1,269 3,701 11,580 1,610,175 1,621,755 2020 4,490 1,503 32,505 38,498 807,990 846,488 2019 2,365 1,034 4,114 7,513 382,168 389,681 2018 1,579 465 1,493 3,537 186,897 190,434 Prior to 2018 765 131 4,955 5,851 54,566 60,417 Total $ 22,067 $ 5,378 $ 47,118 $ 74,563 $ 5,770,043 $ 5,844,606 Canada 2022 $ 1,544 $ 22 $ 387 $ 1,953 $ 652,576 $ 654,529 2021 2,420 502 2,371 5,293 436,138 441,431 2020 810 128 960 1,898 190,905 192,803 2019 197 114 615 926 90,968 91,894 2018 388 178 262 828 38,477 39,305 Prior to 2018 123 25 257 405 10,311 10,716 Total $ 5,482 $ 969 $ 4,852 $ 11,303 $ 1,419,375 $ 1,430,678 Revolving charge accounts United States $ 12,979 $ 9,965 $ — $ 22,944 $ 169,851 $ 192,795 Canada $ 1,237 $ 759 $ — $ 1,996 $ 12,953 $ 14,949 Wholesale United States $ 7 $ — $ 4 $ 11 $ 2,721,282 $ 2,721,293 Canada $ — $ — $ — $ — $ 662,511 $ 662,511 Total Retail customer $ 27,549 $ 6,347 $ 51,970 $ 85,866 $ 7,189,418 $ 7,275,284 Revolving charge accounts $ 14,216 $ 10,724 $ — $ 24,940 $ 182,804 $ 207,744 Wholesale $ 7 $ — $ 4 $ 11 $ 3,383,793 $ 3,383,804 Included in the receivables balance at September 30, 2023 and December 31, 2022 is accrued interest of $82,418 and $57,831, respectively. The Company does not include accrued interest in its allowance for credit losses. Recognition of income is generally suspended when management determines that collection of future finance income is not probable or when an account becomes 90 days past due, whichever occurs first. The amount of interest income suspended was not material for the three and nine months ended September 30, 2023 and 2022. Interest accrual is resumed if the receivable becomes contractually current and collection becomes probable. Previously suspended income is recognized at that time. The retail customer receivables on nonaccrual status as of September 30, 2023 and December 31, 2022 are as follows: September 30, December 31, 2023 2022 United States $ 48,179 $ 48,690 Canada $ 6,087 $ 4,852 As of September 30, 2023, total revolving charge account receivables on nonaccrual status were immaterial and there were no revolving charge account receivables on nonaccrual status as of December 31, 2022. As of September 30, 2023 and December 31, 2022, there were no wholesale receivables on nonaccrual status. As of September 30, 2023 and December 31, 2022, the Company’s receivables on non-accrual status without an allowance were immaterial. Interest income recognized for receivables on non-accrual status for the three and nine months ended September 30, 2023 and 2022 was immaterial. Troubled Debt Restructurings A restructuring of a receivable constitutes a TDR when the lender grants a concession it would not otherwise consider to a borrower that is experiencing financial difficulties. As a collateral-based lender, the Company typically will repossess collateral in lieu of restructuring receivables. As such, for retail customer receivables, concessions are typically provided based on bankruptcy court proceedings. For wholesale receivables, concessions granted may include extended contract maturities, inclusion of interest-only periods, modification of a contractual interest rate to a below market interest rate and waiving of interest and principal. TDRs are reviewed along with other receivables as part of management’s ongoing evaluation of the adequacy of the allowance for credit losses. As of September 30, 2023 and 2022, the Company’s TDRs were immaterial. |
EQUIPMENT ON OPERATING LEASES
EQUIPMENT ON OPERATING LEASES | 9 Months Ended |
Sep. 30, 2023 | |
EQUIPMENT ON OPERATING LEASES | |
EQUIPMENT ON OPERATING LEASES | NOTE 5: EQUIPMENT ON OPERATING LEASES Lease payments owed to the Company for equipment under non-cancelable operating leases (excluding deferred operating lease subsidy of $72,900) as of September 30, 2023 are as follows: 2023 $ 58,230 2024 182,004 2025 119,837 2026 57,167 2027 and thereafter 25,432 Total lease payments $ 442,670 |
CREDIT FACILITIES AND DEBT
CREDIT FACILITIES AND DEBT | 9 Months Ended |
Sep. 30, 2023 | |
CREDIT FACILITIES AND DEBT | |
CREDIT FACILITIES AND DEBT | NOTE 6: CREDIT FACILITIES AND DEBT On July 3, 2023, the Company repaid $600,000 of its 1.950% unsecured notes due 2023. On August 11, 2023, CNH Industrial Capital Canada Ltd. completed a private placement offering of C$400,000 ($297,640) in aggregate principal amount of its 5.500% unsecured notes due 2026, with an issue price of 99.883%. On September 13, 2023, the Company completed an offering of $500,000 in aggregate principal amount of its 5.500% unsecured notes due 2029, with an issue price of 99.399%. On September 18, 2023, the Company extended the maturity date of the U.S. retail committed asset-backed facility to September 2025. On September 26, 2023, the Company entered into a Global Master Repurchase Agreement which expires in September 2024. Concurrently, the Company sold C$258,070 ($190,894) of Canadian receivables under the repurchase agreement, with an obligation to repurchase such receivables in 30 days. On September 27, 2023, the Company, through a bankruptcy-remote trust, issued $1,050,960 of amortizing asset-backed notes secured by U.S. retail receivables. Committed unsecured facilities with banks as of September 30, 2023, totaled $682,329. These credit facilities, which are eligible for renewal at various future dates, are used primarily for working capital and other general corporate purposes. As of September 30, 2023, the Company had $282,329 outstanding under these credit facilities. The remaining available credit commitments are maintained primarily to provide backup liquidity for commercial paper borrowings. The Company’s outstanding commercial paper totaled $348,090 as of September 30, 2023. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
INCOME TAXES | |
INCOME TAXES | NOTE 7: INCOME TAXES The effective tax rates for the three months ended September 30, 2023 and 2022 were 22.9% and 23.3%, respectively. The effective tax rate was 22.3% for the nine months ended September 30, 2023, compared to 23.7% for the same period in 2022. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2023 | |
FINANCIAL INSTRUMENTS | |
FINANCIAL INSTRUMENTS | NOTE 8: FINANCIAL INSTRUMENTS The Company may elect to measure financial instruments and certain other items at fair value. This fair value option would be applied on an instrument-by-instrument basis with changes in fair value reported in earnings. The election can be made at the acquisition of an eligible financial asset, financial liability, or firm commitment or when certain specified reconsideration events occur. The fair value election may not be revoked once made. The Company has not elected the fair value measurement option for eligible items. Fair-Value Hierarchy The hierarchy of valuation techniques for financial instruments is based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair-value hierarchy: Level 1 — Quoted prices for identical instruments in active markets. Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires the use of observable market data when available. Determination of Fair Value When available, the Company uses quoted market prices to determine fair value and classifies such items in Level 1. In some cases where a market price is not available, the Company will use observable market-based inputs to calculate fair value, in which case the items are classified in Level 2. If quoted or observable market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters such as interest rates, currency rates, or yield curves. Items valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable. 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. The Company designates derivatives that are effective at reducing the risk associated with the exposure being hedged as accounting hedges at the inception of the contract and does not hold or enter into derivative or other financial instruments for speculative purposes. The credit and market risk related to derivatives is reduced through diversification among various counterparties, utilizing mandatory termination clauses and/or collateral support agreements. Derivative instruments are generally classified as Level 2 in the fair value hierarchy. The cash flows underlying all derivative contracts were recorded in operating activities in the consolidated statements of cash flows. Interest Rate Derivatives The Company has entered into interest rate derivatives in order to manage interest rate exposures arising in the normal course of business. Interest rate derivatives that have been designated as cash flow hedges are being used by the Company to mitigate the risk of rising interest rates related to existing debt and anticipated issuance of fixed-rate debt in future periods. Gains and losses on these instruments are deferred in accumulated other comprehensive income (loss) and recognized in interest expense over the period in which the Company recognizes interest expense on the related debt. As of September 30, 2023, 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 60 months. As of September 30, 2023, the after-tax gains deferred in accumulated other comprehensive income (loss) that will be recognized in interest expense over the next 12 months are approximately ($2,215). The Company also enters into offsetting interest rate derivatives with substantially similar terms that are not designated as hedging instruments to mitigate interest rate risk related to the Company’s committed asset-backed facilities. Unrealized and realized gains and losses resulting from fair value changes in these instruments are recognized directly in income and were insignificant for the three and nine months ended September 30, 2023 and 2022. All of the Company’s interest rate derivatives as of September 30, 2023 and December 31, 2022 are considered Level 2. The fair market value of these derivatives is calculated using market data input and can be compared to actively traded derivatives. The total notional amount of the Company’s interest rate derivatives was $3,833,944 and $3,628,725 at September 30, 2023 and December 31, 2022, respectively. The ten-month average notional amounts for the nine months ended September 30, 2023 and 2022 were $3,696,877 and $3,746,080, respectively. As a result of the reform and replacement of specific benchmark interest rates, the Company elected to make the replacement using the optional expedient under ASC 848, which allows the change in critical terms without dedesignation and the Company also elected the optional expedient to apply a spread adjustment to hedged items cash flows that resulted in no change to the cumulative basis adjustment reflected in earnings. 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, net” and are expected to offset the foreign exchange gains or losses on the exposures being managed. All of the Company’s foreign exchange derivatives are considered Level 2 as the fair value is calculated using market data input and can be compared to actively traded derivatives. Financial Statement Impact of the Company’s Derivatives The fair values of the Company’s derivatives as of September 30, 2023 and December 31, 2022 in the consolidated balance sheets are recorded as follows: September 30, December 31, 2023 2022 Derivatives Designated as Hedging Instruments Other assets: Interest rate derivatives $ 2,548 $ 3,597 Accounts payable and other accrued liabilities: Interest rate derivatives $ 49,833 $ 42,936 Derivatives Not Designated as Hedging Instruments Other assets: Interest rate derivatives $ 43,762 $ 27,862 Foreign exchange contracts 3,404 4,116 Total $ 47,166 $ 31,978 Accounts payable and other accrued liabilities: Interest rate derivatives $ 43,762 $ 27,862 Foreign exchange contracts — 435 Total $ 43,762 $ 28,297 Pre-tax gains (losses) on the consolidated statements of income and comprehensive income related to the Company’s derivatives for the three and nine months ended September 30, 2023 and 2022 are recorded in the following accounts: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Cash Flow Hedges Recognized in accumulated other comprehensive income (loss): Interest rate derivatives $ 812 $ 2,439 $ (1,809) $ 16,521 Reclassified from accumulated other comprehensive income (loss): Interest rate derivatives—Interest expense to third parties $ 781 $ 342 $ 1,843 $ 557 Not Designated as Hedges Foreign exchange contracts—Other expenses, net $ (1,227) $ (6,256) $ 1,024 $ (7,119) Items Measured at Fair Value on a Recurring Basis The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022, all of which are measured as Level 2: September 30, December 31, 2023 2022 Assets Interest rate derivatives $ 46,310 $ 31,459 Foreign exchange contracts 3,404 4,116 Total assets $ 49,714 $ 35,575 Liabilities Interest rate derivatives $ 93,595 $ 70,798 Foreign exchange contracts — 435 Total liabilities $ 93,595 $ 71,233 There were no transfers between Level 1, Level 2 and Level 3 hierarchy levels during the periods presented. Fair Value of Other Financial Instruments The carrying amount of cash, restricted cash and cash equivalents, floating-rate affiliated accounts and notes receivable, floating-rate short-term debt, interest payable and short-term affiliated debt was assumed to approximate its fair value. Under the fair value hierarchy, cash and restricted cash and cash equivalents are classified as Level 1 and the remainder of the financial instruments listed is classified as Level 2. Financial Instruments Not Carried at Fair Value The carrying amount and estimated fair value of assets and liabilities considered financial instruments as of September 30, 2023 and December 31, 2022 are as follows: September 30, 2023 December 31, 2022 Carrying Estimated Carrying Estimated Amount Fair Value * Amount Fair Value * Receivables $ 12,700,749 $ 12,477,786 $ 10,741,820 $ 10,433,949 Long-term debt $ 7,686,899 $ 7,373,947 $ 6,387,135 $ 6,032,997 ______________ * Under the fair value hierarchy, receivables measurements are classified as Level 3 and long-term debt measurements are classified as Level 2. Receivables The fair value of receivables was determined by discounting the estimated future payments using a discount rate which includes an estimate for credit risk. Long-term debt The fair values of long-term debt were based on current market quotes for identical or similar borrowings and credit risk. |
GEOGRAPHICAL INFORMATION
GEOGRAPHICAL INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
GEOGRAPHICAL INFORMATION | |
GEOGRAPHICAL INFORMATION | NOTE 9: GEOGRAPHICAL INFORMATION A summary of the Company’s geographical information is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Revenues United States $ 224,291 $ 157,790 $ 604,210 $ 454,254 Canada 54,463 42,301 151,201 125,229 Eliminations (357) (534) (1,382) (3,241) Total $ 278,397 $ 199,557 $ 754,029 $ 576,242 Interest expense United States $ 121,318 $ 52,303 $ 308,411 $ 122,066 Canada 23,776 13,703 63,500 33,638 Eliminations (357) (534) (1,382) (3,241) Total $ 144,737 $ 65,472 $ 370,529 $ 152,463 Net income United States $ 40,248 $ 44,005 $ 112,330 $ 141,972 Canada 10,452 9,298 32,369 34,712 Total $ 50,700 $ 53,303 $ 144,699 $ 176,684 Depreciation and amortization United States $ 32,006 $ 37,813 $ 97,267 $ 117,244 Canada 13,358 12,814 39,228 37,838 Total $ 45,364 $ 50,627 $ 136,495 $ 155,082 Expenditures for equipment on operating leases United States $ 86,985 $ 73,055 $ 253,104 $ 251,617 Canada 42,581 34,755 104,271 102,707 Total $ 129,566 $ 107,810 $ 357,375 $ 354,324 Provision (benefit) for credit losses United States $ 5,139 $ (2,373) $ 11,577 $ 2,826 Canada 1,510 548 (360) 118 Total $ 6,649 $ (1,825) $ 11,217 $ 2,944 As of As of September 30, December 31, 2023 2022 Total assets United States $ 12,272,421 $ 10,712,413 Canada 3,104,479 2,683,722 Eliminations (142,518) (216,656) Total $ 15,234,382 $ 13,179,479 Receivables United States $ 10,527,103 $ 8,758,694 Canada 2,292,590 2,108,138 Total $ 12,819,693 $ 10,866,832 |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2023 | |
RELATED-PARTY TRANSACTIONS | |
RELATED-PARTY TRANSACTIONS | NOTE 10: RELATED-PARTY TRANSACTIONS The Company receives compensation from CNH Industrial North America for retail notes and finance leases, wholesale and operating lease sales programs offered by CNH Industrial North America on which finance charges are waived or below market rate financing programs are offered. The Company receives compensation from CNH Industrial North America based on the Company’s estimated costs and a targeted return on equity. The Company is also compensated for lending funds to CNH Industrial North America. The summary of sources included in “Interest and other income from affiliates” in the accompanying consolidated statements of income for the three and nine months ended September 30, 2023 and 2022 is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Subsidy from CNH Industrial North America Retail notes and finance leases $ 35,917 $ 30,885 $ 93,781 $ 94,373 Operating lease 10,265 11,328 30,423 36,179 Revolving charge accounts 1,086 — 3,051 — Wholesale 63,169 24,563 160,535 63,310 Income from affiliated receivables CNH Industrial North America 422 206 505 535 Banco CNH Industrial Capital Brazil 723 — 2,140 — Other affiliates 331 506 1,151 630 Total interest and other income from affiliates $ 111,913 $ 67,488 $ 291,586 $ 195,027 Interest expense to affiliates was $10,180 and $2,933, respectively, for the three months ended September 30, 2023 and 2022 and $23,613 and $4,632, respectively, for the nine months ended September 30, 2023 and 2022. Fees charged by affiliates were $13,359 and $12,946, respectively, for the three months ended September 30, 2023 and 2022, and $40,346 and $36,519, respectively, for the nine months ended September 30, 2023 and 2022, which amounts consist of payroll and other human resource services CNH Industrial America performs on behalf of the Company. As of September 30, 2023 and December 31, 2022, the Company had various accounts and notes receivable and debt with the following affiliates: September 30, December 31, 2023 2022 Affiliated receivables CNH Industrial America $ — $ 10 CNH Industrial Canada Ltd. 224,096 — Banco CNH Industrial Capital Brazil 47,274 40,983 Other affiliates 12,417 12,516 Total affiliated receivables $ 283,787 $ 53,509 Affiliated debt CNH Industrial America $ 511,883 $ 100,195 CNH Industrial Canada Ltd. — 241,036 Other affiliates — 300 Total affiliated debt $ 511,883 $ 341,531 Accounts payable and other accrued liabilities, including tax payables, of $188,942 and $212,167 were payable to related parties as of September 30, 2023 and December 31, 2022, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 11: COMMITMENTS AND CONTINGENCIES Legal Matters The Company is party to various litigation matters and claims arising from its operations. Management believes that the outcome of these proceedings, individually and in the aggregate, will not have a material adverse effect on the Company’s financial position or results of operations. Guarantees The Company provides payment guarantees on the financial debt of various foreign financial services subsidiaries of CNHI for approximately $50,400. The guarantees are in effect for the term of the underlying funding facilities. Commitments As of September 30, 2023, the Company had various agreements, on an uncommitted basis, to extend credit for the following portfolios: Total Credit Limit Utilized Not Utilized Wholesale and dealer financing $ 6,540,009 $ 4,751,422 $ 1,788,587 Revolving charge accounts $ 2,533,805 $ 266,294 $ 2,267,511 |
NEW ACCOUNTING PRONOUNCEMENTS (
NEW ACCOUNTING PRONOUNCEMENTS (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
NEW ACCOUNTING PRONOUNCEMENTS. | |
New Accounting Pronouncements Adopted | New Accounting Pronouncements Adopted In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | |
Schedule of changes in the components of AOCI and related tax effects | The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the three months ended September 30, 2023: Currency Unrealized Translation Pension (Losses) Gains Adjustment Liability on Derivatives Total Beginning balance, gross $ (138,182) $ 2,077 $ 11,605 $ (124,500) Tax liability — (501) (2,907) (3,408) Beginning balance, net of tax (138,182) 1,576 8,698 (127,908) Other comprehensive income (loss) before reclassifications (7,790) (102) 812 (7,080) Amounts reclassified from accumulated other comprehensive income (loss) — (135) (781) (916) Tax effects — 57 (27) 30 Net current-period other comprehensive income (loss) (7,790) (180) 4 (7,966) Total $ (145,972) $ 1,396 $ 8,702 $ (135,874) The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the nine months ended September 30, 2023: Currency Unrealized Translation Pension (Losses) Gains Adjustment Liability on Derivatives Total Beginning balance, gross $ (151,254) $ 2,563 $ 15,288 $ (133,403) Tax liability — (620) (3,810) (4,430) Beginning balance, net of tax (151,254) 1,943 11,478 (137,833) Other comprehensive income (loss) before reclassifications 5,282 (318) (1,809) 3,155 Amounts reclassified from accumulated other comprehensive income (loss) — (405) (1,843) (2,248) Tax effects — 176 876 1,052 Net current-period other comprehensive income (loss) 5,282 (547) (2,776) 1,959 Total $ (145,972) $ 1,396 $ 8,702 $ (135,874) The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the three months ended September 30, 2022: Currency Unrealized Translation Pension (Losses) Gains Adjustment Liability Derivatives Total Beginning balance, gross $ (123,210) $ 1,983 $ 12,911 $ (108,316) Tax liability — (473) (3,255) (3,728) Beginning balance, net of tax (123,210) 1,510 9,656 (112,044) Other comprehensive income (loss) before reclassifications (37,238) (59) 2,439 (34,858) Amounts reclassified from accumulated other comprehensive income (loss) — (150) (342) (492) Tax effects — 51 (525) (474) Net current-period other comprehensive income (loss) (37,238) (158) 1,572 (35,824) Total $ (160,448) $ 1,352 $ 11,228 $ (147,868) The following table summarizes the change in the components of the Company’s AOCI balance and related tax effects for the nine months ended September 30, 2022: Currency Unrealized Translation Pension (Losses) Gains Adjustment Liability Derivatives Total Beginning balance, gross $ (112,618) $ 2,451 $ (956) $ (111,123) Tax asset (liability) — (587) 253 (334) Beginning balance, net of tax (112,618) 1,864 (703) (111,457) Other comprehensive income (loss) before reclassifications (47,830) (229) 16,521 (31,538) Amounts reclassified from accumulated other comprehensive income (loss) — (447) (557) (1,004) Tax effects — 164 (4,033) (3,869) Net current-period other comprehensive income (loss) (47,830) (512) 11,931 (36,411) Total $ (160,448) $ 1,352 $ 11,228 $ (147,868) |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
RECEIVABLES | |
Summary of receivables | September 30, December 31, 2023 2022 Retail notes $ 1,422,379 $ 1,241,775 Revolving charge accounts 265,775 207,744 Finance leases 191,850 198,064 Wholesale 1,321,229 875,628 Restricted receivables 9,618,460 8,343,621 Gross receivables 12,819,693 10,866,832 Less: Allowance for credit losses (118,944) (125,012) Total receivables, net $ 12,700,749 $ 10,741,820 |
Summary of restricted receivables | September 30, December 31, 2023 2022 Retail notes $ 6,108,827 $ 5,835,445 Wholesale 3,509,633 2,508,176 Total restricted receivables $ 9,618,460 $ 8,343,621 |
Schedule of allowance for credit losses activity | Allowance for credit losses activity for the three months ended September 30, 2023 is as follows: Revolving Retail Charge Customer Accounts Wholesale Total Allowance for credit losses: Beginning balance $ 99,965 $ 8,662 $ 6,493 $ 115,120 Charge-offs (1,771) (1,231) — (3,002) Recoveries 313 4 5 322 Provision (benefit) 4,378 2,305 (34) 6,649 Foreign currency translation and other (123) (8) (14) (145) Ending balance $ 102,762 $ 9,732 $ 6,450 $ 118,944 Allowance for credit losses activity for the nine months ended September 30, 2023 is as follows: Revolving Retail Charge Customer Accounts Wholesale Total Allowance for credit losses: Beginning balance $ 110,341 $ 8,519 $ 6,152 $ 125,012 Charge-offs (12,741) (5,916) — (18,657) Recoveries 1,226 5 21 1,252 Provision 3,828 7,119 270 11,217 Foreign currency translation and other 108 5 7 120 Ending balance $ 102,762 $ 9,732 $ 6,450 $ 118,944 Receivables: Ending balance $ 7,723,056 $ 265,775 $ 4,830,862 $ 12,819,693 The allowance for credit losses increased during the third quarter, driven by an increase in specific reserve needs on retail customers and growth in the revolving charge account portfolio. For the nine months ended September 30, 2023, the allowance for credit losses decreased due to lower specific reserve needs for retail customers and the continued strong outlook for the agricultural industry, offset by growth in the revolving charge account portfolio. Allowance for credit losses activity for the three months ended September 30, 2022 is as follows: Retail Customer Wholesale Total Allowance for credit losses: Beginning balance, as previously reported $ 105,937 $ 5,467 $ 111,404 Charge-offs (1,689) — (1,689) Recoveries 739 508 1,247 Provision (benefit) (1,410) (415) (1,825) Foreign currency translation and other (743) (36) (779) Ending balance $ 102,834 $ 5,524 $ 108,358 Allowance for credit losses activity for the nine months ended September 30, 2022 is as follows: Retail Customer Wholesale Total Allowance for credit losses: Beginning balance $ 109,742 $ 6,211 $ 115,953 Charge-offs (7,164) (4,631) (11,795) Recoveries 1,632 523 2,155 Provision (benefit) (527) 3,471 2,944 Foreign currency translation and other (849) (50) (899) Ending balance $ 102,834 $ 5,524 $ 108,358 Receivables: Ending balance $ 7,166,320 $ 2,823,528 $ 9,989,848 |
Schedule of aging of financing receivables | The aging of receivables and charge-offs as of September 30, 2023 are as follows: Greater Net 31 – 60 Days 61 – 90 Days Than Total Total Charge-offs Past Due Past Due 90 Days Past Due Current Receivables (Recoveries) Retail customer United States 2023 $ 3,913 $ 909 $ 861 $ 5,683 $ 2,130,137 $ 2,135,820 $ 189 2022 10,443 2,343 5,458 18,244 2,011,048 2,029,292 2,254 2021 7,344 3,269 3,639 14,252 1,192,754 1,207,006 1,783 2020 5,046 1,503 31,281 37,830 542,831 580,661 2,609 2019 2,058 655 1,946 4,659 219,910 224,569 2,714 Prior to 2019 920 463 3,831 5,214 99,800 105,014 2,139 Total $ 29,724 $ 9,142 $ 47,016 $ 85,882 $ 6,196,480 $ 6,282,362 $ 11,688 Canada 2023 $ 321 $ — $ — $ 321 $ 432,407 $ 432,728 $ 73 2022 685 66 1,030 1,781 462,070 463,851 149 2021 807 157 1,992 2,956 330,194 333,150 744 2020 694 231 879 1,804 132,596 134,400 (265) 2019 237 92 451 780 55,703 56,483 187 Prior to 2019 44 3 473 520 19,562 20,082 165 Total $ 2,788 $ 549 $ 4,825 $ 8,162 $ 1,432,532 $ 1,440,694 $ 1,053 Revolving charge accounts United States $ 4,977 $ 2,547 $ 1,485 $ 9,009 $ 237,998 $ 247,007 $ 5,542 Canada $ 458 $ 219 $ 87 $ 764 $ 18,004 $ 18,768 $ 374 Wholesale United States $ 4 $ — $ 4 $ 8 $ 3,997,726 $ 3,997,734 $ — Canada $ — $ — $ — $ — $ 833,128 $ 833,128 $ — Total Retail customer $ 32,512 $ 9,691 $ 51,841 $ 94,044 $ 7,629,012 $ 7,723,056 $ 12,741 Revolving charge accounts $ 5,435 $ 2,766 $ 1,572 $ 9,773 $ 256,002 $ 265,775 $ 5,916 Wholesale $ 4 $ — $ 4 $ 8 $ 4,830,854 $ 4,830,862 $ — The aging of receivables as of December 31, 2022 is as follows: Greater 31 – 60 Days 61 – 90 Days Than Total Total Past Due Past Due 90 Days Past Due Current Receivables Retail customer United States 2022 $ 6,258 $ 976 $ 350 $ 7,584 $ 2,728,247 $ 2,735,831 2021 6,610 1,269 3,701 11,580 1,610,175 1,621,755 2020 4,490 1,503 32,505 38,498 807,990 846,488 2019 2,365 1,034 4,114 7,513 382,168 389,681 2018 1,579 465 1,493 3,537 186,897 190,434 Prior to 2018 765 131 4,955 5,851 54,566 60,417 Total $ 22,067 $ 5,378 $ 47,118 $ 74,563 $ 5,770,043 $ 5,844,606 Canada 2022 $ 1,544 $ 22 $ 387 $ 1,953 $ 652,576 $ 654,529 2021 2,420 502 2,371 5,293 436,138 441,431 2020 810 128 960 1,898 190,905 192,803 2019 197 114 615 926 90,968 91,894 2018 388 178 262 828 38,477 39,305 Prior to 2018 123 25 257 405 10,311 10,716 Total $ 5,482 $ 969 $ 4,852 $ 11,303 $ 1,419,375 $ 1,430,678 Revolving charge accounts United States $ 12,979 $ 9,965 $ — $ 22,944 $ 169,851 $ 192,795 Canada $ 1,237 $ 759 $ — $ 1,996 $ 12,953 $ 14,949 Wholesale United States $ 7 $ — $ 4 $ 11 $ 2,721,282 $ 2,721,293 Canada $ — $ — $ — $ — $ 662,511 $ 662,511 Total Retail customer $ 27,549 $ 6,347 $ 51,970 $ 85,866 $ 7,189,418 $ 7,275,284 Revolving charge accounts $ 14,216 $ 10,724 $ — $ 24,940 $ 182,804 $ 207,744 Wholesale $ 7 $ — $ 4 $ 11 $ 3,383,793 $ 3,383,804 |
Schedule of receivables on nonaccrual status | September 30, December 31, 2023 2022 United States $ 48,179 $ 48,690 Canada $ 6,087 $ 4,852 |
EQUIPMENT ON OPERATING LEASES (
EQUIPMENT ON OPERATING LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
EQUIPMENT ON OPERATING LEASES | |
Schedule of lease payments owed to the Company for equipment under non-cancelable operating leases | 2023 $ 58,230 2024 182,004 2025 119,837 2026 57,167 2027 and thereafter 25,432 Total lease payments $ 442,670 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
FINANCIAL INSTRUMENTS | |
Schedule of fair values of derivatives in the consolidated balance sheets | September 30, December 31, 2023 2022 Derivatives Designated as Hedging Instruments Other assets: Interest rate derivatives $ 2,548 $ 3,597 Accounts payable and other accrued liabilities: Interest rate derivatives $ 49,833 $ 42,936 Derivatives Not Designated as Hedging Instruments Other assets: Interest rate derivatives $ 43,762 $ 27,862 Foreign exchange contracts 3,404 4,116 Total $ 47,166 $ 31,978 Accounts payable and other accrued liabilities: Interest rate derivatives $ 43,762 $ 27,862 Foreign exchange contracts — 435 Total $ 43,762 $ 28,297 |
Schedule of pre-tax gains (losses) on the consolidated statements of income related to the Company's derivatives | Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Cash Flow Hedges Recognized in accumulated other comprehensive income (loss): Interest rate derivatives $ 812 $ 2,439 $ (1,809) $ 16,521 Reclassified from accumulated other comprehensive income (loss): Interest rate derivatives—Interest expense to third parties $ 781 $ 342 $ 1,843 $ 557 Not Designated as Hedges Foreign exchange contracts—Other expenses, net $ (1,227) $ (6,256) $ 1,024 $ (7,119) |
Schedule of assets and liabilities measured at fair value on a recurring basis | September 30, December 31, 2023 2022 Assets Interest rate derivatives $ 46,310 $ 31,459 Foreign exchange contracts 3,404 4,116 Total assets $ 49,714 $ 35,575 Liabilities Interest rate derivatives $ 93,595 $ 70,798 Foreign exchange contracts — 435 Total liabilities $ 93,595 $ 71,233 |
Schedule of carrying amount and estimated fair value of assets and liabilities considered financial instruments | September 30, 2023 December 31, 2022 Carrying Estimated Carrying Estimated Amount Fair Value * Amount Fair Value * Receivables $ 12,700,749 $ 12,477,786 $ 10,741,820 $ 10,433,949 Long-term debt $ 7,686,899 $ 7,373,947 $ 6,387,135 $ 6,032,997 ______________ * Under the fair value hierarchy, receivables measurements are classified as Level 3 and long-term debt measurements are classified as Level 2. |
GEOGRAPHICAL INFORMATION (Table
GEOGRAPHICAL INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
GEOGRAPHICAL INFORMATION | |
Summary of geographic information | Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Revenues United States $ 224,291 $ 157,790 $ 604,210 $ 454,254 Canada 54,463 42,301 151,201 125,229 Eliminations (357) (534) (1,382) (3,241) Total $ 278,397 $ 199,557 $ 754,029 $ 576,242 Interest expense United States $ 121,318 $ 52,303 $ 308,411 $ 122,066 Canada 23,776 13,703 63,500 33,638 Eliminations (357) (534) (1,382) (3,241) Total $ 144,737 $ 65,472 $ 370,529 $ 152,463 Net income United States $ 40,248 $ 44,005 $ 112,330 $ 141,972 Canada 10,452 9,298 32,369 34,712 Total $ 50,700 $ 53,303 $ 144,699 $ 176,684 Depreciation and amortization United States $ 32,006 $ 37,813 $ 97,267 $ 117,244 Canada 13,358 12,814 39,228 37,838 Total $ 45,364 $ 50,627 $ 136,495 $ 155,082 Expenditures for equipment on operating leases United States $ 86,985 $ 73,055 $ 253,104 $ 251,617 Canada 42,581 34,755 104,271 102,707 Total $ 129,566 $ 107,810 $ 357,375 $ 354,324 Provision (benefit) for credit losses United States $ 5,139 $ (2,373) $ 11,577 $ 2,826 Canada 1,510 548 (360) 118 Total $ 6,649 $ (1,825) $ 11,217 $ 2,944 As of As of September 30, December 31, 2023 2022 Total assets United States $ 12,272,421 $ 10,712,413 Canada 3,104,479 2,683,722 Eliminations (142,518) (216,656) Total $ 15,234,382 $ 13,179,479 Receivables United States $ 10,527,103 $ 8,758,694 Canada 2,292,590 2,108,138 Total $ 12,819,693 $ 10,866,832 |
RELATED-PARTY TRANSACTIONS (Tab
RELATED-PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
RELATED-PARTY TRANSACTIONS | |
Summary of the sources included in "Interest and other income from affiliates" in the accompanying consolidated statements of income | Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Subsidy from CNH Industrial North America Retail notes and finance leases $ 35,917 $ 30,885 $ 93,781 $ 94,373 Operating lease 10,265 11,328 30,423 36,179 Revolving charge accounts 1,086 — 3,051 — Wholesale 63,169 24,563 160,535 63,310 Income from affiliated receivables CNH Industrial North America 422 206 505 535 Banco CNH Industrial Capital Brazil 723 — 2,140 — Other affiliates 331 506 1,151 630 Total interest and other income from affiliates $ 111,913 $ 67,488 $ 291,586 $ 195,027 |
Schedule of various accounts and notes receivable and debt with the affiliates | September 30, December 31, 2023 2022 Affiliated receivables CNH Industrial America $ — $ 10 CNH Industrial Canada Ltd. 224,096 — Banco CNH Industrial Capital Brazil 47,274 40,983 Other affiliates 12,417 12,516 Total affiliated receivables $ 283,787 $ 53,509 Affiliated debt CNH Industrial America $ 511,883 $ 100,195 CNH Industrial Canada Ltd. — 241,036 Other affiliates — 300 Total affiliated debt $ 511,883 $ 341,531 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
Commitments to Extend Credit | Total Credit Limit Utilized Not Utilized Wholesale and dealer financing $ 6,540,009 $ 4,751,422 $ 1,788,587 Revolving charge accounts $ 2,533,805 $ 266,294 $ 2,267,511 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME - Change in Components of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Changes in accumulated other comprehensive income by component | ||||||||
Beginning balance, gross | $ (124,500) | $ (133,403) | $ (108,316) | $ (111,123) | ||||
Tax asset (liability) | (3,408) | (4,430) | (3,728) | (334) | ||||
Beginning balance, net of tax | $ (127,908) | $ (112,044) | $ (137,833) | $ (111,457) | ||||
Other comprehensive income (loss) before reclassifications | (7,080) | (34,858) | 3,155 | (31,538) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (916) | (492) | (2,248) | (1,004) | ||||
Tax effects | 30 | (474) | 1,052 | (3,869) | ||||
Total other comprehensive income (loss) | (7,966) | (35,824) | 1,959 | (36,411) | ||||
Ending balance | (135,874) | (147,868) | (135,874) | (147,868) | ||||
Currency Translation Adjustment | ||||||||
Changes in accumulated other comprehensive income by component | ||||||||
Beginning balance, gross | (138,182) | (151,254) | (123,210) | (112,618) | ||||
Beginning balance, net of tax | (138,182) | (123,210) | (151,254) | (112,618) | ||||
Other comprehensive income (loss) before reclassifications | (7,790) | (37,238) | 5,282 | (47,830) | ||||
Total other comprehensive income (loss) | (7,790) | (37,238) | 5,282 | (47,830) | ||||
Ending balance | (145,972) | (160,448) | (145,972) | (160,448) | ||||
Pension Liability | ||||||||
Changes in accumulated other comprehensive income by component | ||||||||
Beginning balance, gross | 2,077 | 2,563 | 1,983 | 2,451 | ||||
Tax asset (liability) | (501) | (620) | (473) | (587) | ||||
Beginning balance, net of tax | 1,576 | 1,510 | 1,943 | 1,864 | ||||
Other comprehensive income (loss) before reclassifications | (102) | (59) | (318) | (229) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (135) | (150) | (405) | (447) | ||||
Tax effects | 57 | 51 | 176 | 164 | ||||
Total other comprehensive income (loss) | (180) | (158) | (547) | (512) | ||||
Ending balance | 1,396 | 1,352 | 1,396 | 1,352 | ||||
Unrealized (Losses) Gains on Derivatives | ||||||||
Changes in accumulated other comprehensive income by component | ||||||||
Beginning balance, gross | 11,605 | 15,288 | 12,911 | (956) | ||||
Tax asset (liability) | $ (2,907) | $ (3,810) | $ (3,255) | $ 253 | ||||
Beginning balance, net of tax | 8,698 | 9,656 | 11,478 | (703) | ||||
Other comprehensive income (loss) before reclassifications | 812 | 2,439 | (1,809) | 16,521 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (781) | (342) | (1,843) | (557) | ||||
Tax effects | (27) | (525) | 876 | (4,033) | ||||
Total other comprehensive income (loss) | 4 | 1,572 | (2,776) | 11,931 | ||||
Ending balance | $ 8,702 | $ 11,228 | $ 8,702 | $ 11,228 |
RECEIVABLES - Summary of Receiv
RECEIVABLES - Summary of Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Receivables | ||||||
Gross receivables | $ 12,819,693 | $ 10,866,832 | $ 9,989,848 | |||
Less: Allowance for credit losses | (118,944) | $ (115,120) | (125,012) | $ (108,358) | $ (111,404) | $ (115,953) |
Total receivables, net | 12,700,749 | 10,741,820 | ||||
Restricted receivables | 9,618,460 | 8,343,621 | ||||
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 | |||||
Retail notes | ||||||
Receivables | ||||||
Gross receivables | 1,422,379 | 1,241,775 | ||||
Restricted receivables | 6,108,827 | 5,835,445 | ||||
Revolving charge accounts | ||||||
Receivables | ||||||
Gross receivables | 265,775 | 207,744 | ||||
Finance leases | ||||||
Receivables | ||||||
Gross receivables | 191,850 | 198,064 | ||||
Wholesale | ||||||
Receivables | ||||||
Gross receivables | 1,321,229 | 875,628 | ||||
Restricted receivables | 3,509,633 | 2,508,176 | ||||
Restricted receivables | ||||||
Receivables | ||||||
Restricted receivables | $ 9,618,460 | $ 8,343,621 |
RECEIVABLES - Allowance for Cre
RECEIVABLES - Allowance for Credit Losses Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Allowance for credit losses: | |||||
Beginning balance | $ 115,120 | $ 111,404 | $ 125,012 | $ 115,953 | |
Charge-offs | (3,002) | (1,689) | (18,657) | (11,795) | |
Recoveries | 322 | 1,247 | 1,252 | 2,155 | |
Provision (benefit) | 6,649 | (1,825) | 11,217 | 2,944 | |
Foreign currency translation and other | (145) | (779) | 120 | (899) | |
Ending balance | 118,944 | 108,358 | 118,944 | 108,358 | |
Receivables: | |||||
Ending balance | 12,819,693 | 9,989,848 | $ 12,819,693 | 9,989,848 | $ 10,866,832 |
Minimum account delinquency period for revolving charge accounts to be classified as past due | 120 days | ||||
Retail customer | |||||
Allowance for credit losses: | |||||
Beginning balance | 99,965 | 105,937 | $ 110,341 | 109,742 | |
Charge-offs | (1,771) | (1,689) | (12,741) | (7,164) | |
Recoveries | 313 | 739 | 1,226 | 1,632 | |
Provision (benefit) | 4,378 | (1,410) | 3,828 | (527) | |
Foreign currency translation and other | (123) | (743) | 108 | (849) | |
Ending balance | 102,762 | 102,834 | 102,762 | 102,834 | |
Receivables: | |||||
Ending balance | 7,723,056 | 7,166,320 | 7,723,056 | 7,166,320 | |
Revolving charge accounts | |||||
Allowance for credit losses: | |||||
Beginning balance | 8,662 | 8,519 | |||
Charge-offs | (1,231) | (5,916) | |||
Recoveries | 4 | 5 | |||
Provision (benefit) | 2,305 | 7,119 | |||
Foreign currency translation and other | (8) | 5 | |||
Ending balance | 9,732 | 9,732 | |||
Receivables: | |||||
Ending balance | 265,775 | 265,775 | |||
Wholesale. | |||||
Allowance for credit losses: | |||||
Beginning balance | 6,493 | 5,467 | 6,152 | 6,211 | |
Charge-offs | (4,631) | ||||
Recoveries | 5 | 508 | 21 | 523 | |
Provision (benefit) | (34) | (415) | 270 | 3,471 | |
Foreign currency translation and other | (14) | (36) | 7 | (50) | |
Ending balance | 6,450 | 5,524 | 6,450 | 5,524 | |
Receivables: | |||||
Ending balance | $ 4,830,862 | $ 2,823,528 | $ 4,830,862 | $ 2,823,528 |
RECEIVABLES - Aging of Receivab
RECEIVABLES - Aging of Receivables (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Financing receivable, recorded investment | ||
Restricted receivables | $ 9,618,460 | $ 8,343,621 |
Minimum account delinquency period for an account to be classified as past due | 30 days | 30 days |
Retail customer | ||
Financing receivable, recorded investment | ||
Total | $ 7,723,056 | $ 7,275,284 |
Charge-offs | ||
Total | 12,741 | |
Retail customer | Total Past Due | ||
Financing receivable, recorded investment | ||
Total | 94,044 | 85,866 |
Retail customer | 31-60 Days Past Due | ||
Financing receivable, recorded investment | ||
Total | 32,512 | 27,549 |
Retail customer | 61-90 Days Past Due | ||
Financing receivable, recorded investment | ||
Total | 9,691 | 6,347 |
Retail customer | Greater than 90 Days | ||
Financing receivable, recorded investment | ||
Total | 51,841 | 51,970 |
Retail customer | Current | ||
Financing receivable, recorded investment | ||
Total | 7,629,012 | 7,189,418 |
Retail customer | United States | ||
Financing receivable, recorded investment | ||
Originated in current fiscal year | 2,135,820 | 2,735,831 |
Originated in fiscal year before latest fiscal year | 2,029,292 | 1,621,755 |
Originated two years before latest fiscal year | 1,207,006 | 846,488 |
Originated three years before latest fiscal year | 580,661 | 389,681 |
Originated four years before latest fiscal year | 224,569 | 190,434 |
Originated five years before latest fiscal year | 105,014 | 60,417 |
Total | 6,282,362 | 5,844,606 |
Charge-offs | ||
2023/2022 | 189 | |
2022/2021 | 2,254 | |
2021/2020 | 1,783 | |
2020/2019 | 2,609 | |
2019/2018 | 2,714 | |
Prior to 2019/Prior to 2018 | 2,139 | |
Total | 11,688 | |
Retail customer | United States | Total Past Due | ||
Financing receivable, recorded investment | ||
Originated in current fiscal year | 5,683 | 7,584 |
Originated in fiscal year before latest fiscal year | 18,244 | 11,580 |
Originated two years before latest fiscal year | 14,252 | 38,498 |
Originated three years before latest fiscal year | 37,830 | 7,513 |
Originated four years before latest fiscal year | 4,659 | 3,537 |
Originated five years before latest fiscal year | 5,214 | 5,851 |
Total | 85,882 | 74,563 |
Retail customer | United States | 31-60 Days Past Due | ||
Financing receivable, recorded investment | ||
Originated in current fiscal year | 3,913 | 6,258 |
Originated in fiscal year before latest fiscal year | 10,443 | 6,610 |
Originated two years before latest fiscal year | 7,344 | 4,490 |
Originated three years before latest fiscal year | 5,046 | 2,365 |
Originated four years before latest fiscal year | 2,058 | 1,579 |
Originated five years before latest fiscal year | 920 | 765 |
Total | 29,724 | 22,067 |
Retail customer | United States | 61-90 Days Past Due | ||
Financing receivable, recorded investment | ||
Originated in current fiscal year | 909 | 976 |
Originated in fiscal year before latest fiscal year | 2,343 | 1,269 |
Originated two years before latest fiscal year | 3,269 | 1,503 |
Originated three years before latest fiscal year | 1,503 | 1,034 |
Originated four years before latest fiscal year | 655 | 465 |
Originated five years before latest fiscal year | 463 | 131 |
Total | 9,142 | 5,378 |
Retail customer | United States | Greater than 90 Days | ||
Financing receivable, recorded investment | ||
Originated in current fiscal year | 861 | 350 |
Originated in fiscal year before latest fiscal year | 5,458 | 3,701 |
Originated two years before latest fiscal year | 3,639 | 32,505 |
Originated three years before latest fiscal year | 31,281 | 4,114 |
Originated four years before latest fiscal year | 1,946 | 1,493 |
Originated five years before latest fiscal year | 3,831 | 4,955 |
Total | 47,016 | 47,118 |
Retail customer | United States | Current | ||
Financing receivable, recorded investment | ||
Originated in current fiscal year | 2,130,137 | 2,728,247 |
Originated in fiscal year before latest fiscal year | 2,011,048 | 1,610,175 |
Originated two years before latest fiscal year | 1,192,754 | 807,990 |
Originated three years before latest fiscal year | 542,831 | 382,168 |
Originated four years before latest fiscal year | 219,910 | 186,897 |
Originated five years before latest fiscal year | 99,800 | 54,566 |
Total | 6,196,480 | 5,770,043 |
Retail customer | Canada | ||
Financing receivable, recorded investment | ||
Originated in current fiscal year | 432,728 | 654,529 |
Originated in fiscal year before latest fiscal year | 463,851 | 441,431 |
Originated two years before latest fiscal year | 333,150 | 192,803 |
Originated three years before latest fiscal year | 134,400 | 91,894 |
Originated four years before latest fiscal year | 56,483 | 39,305 |
Originated five years before latest fiscal year | 20,082 | 10,716 |
Total | 1,440,694 | 1,430,678 |
Charge-offs | ||
2023/2022 | 73 | |
2022/2021 | 149 | |
2021/2020 | 744 | |
2020/2019 | (265) | |
2019/2018 | 187 | |
Prior to 2019/Prior to 2018 | 165 | |
Total | 1,053 | |
Retail customer | Canada | Total Past Due | ||
Financing receivable, recorded investment | ||
Originated in current fiscal year | 321 | 1,953 |
Originated in fiscal year before latest fiscal year | 1,781 | 5,293 |
Originated two years before latest fiscal year | 2,956 | 1,898 |
Originated three years before latest fiscal year | 1,804 | 926 |
Originated four years before latest fiscal year | 780 | 828 |
Originated five years before latest fiscal year | 520 | 405 |
Total | 8,162 | 11,303 |
Retail customer | Canada | 31-60 Days Past Due | ||
Financing receivable, recorded investment | ||
Originated in current fiscal year | 321 | 1,544 |
Originated in fiscal year before latest fiscal year | 685 | 2,420 |
Originated two years before latest fiscal year | 807 | 810 |
Originated three years before latest fiscal year | 694 | 197 |
Originated four years before latest fiscal year | 237 | 388 |
Originated five years before latest fiscal year | 44 | 123 |
Total | 2,788 | 5,482 |
Retail customer | Canada | 61-90 Days Past Due | ||
Financing receivable, recorded investment | ||
Originated in current fiscal year | 22 | |
Originated in fiscal year before latest fiscal year | 66 | 502 |
Originated two years before latest fiscal year | 157 | 128 |
Originated three years before latest fiscal year | 231 | 114 |
Originated four years before latest fiscal year | 92 | 178 |
Originated five years before latest fiscal year | 3 | 25 |
Total | 549 | 969 |
Retail customer | Canada | Greater than 90 Days | ||
Financing receivable, recorded investment | ||
Originated in current fiscal year | 387 | |
Originated in fiscal year before latest fiscal year | 1,030 | 2,371 |
Originated two years before latest fiscal year | 1,992 | 960 |
Originated three years before latest fiscal year | 879 | 615 |
Originated four years before latest fiscal year | 451 | 262 |
Originated five years before latest fiscal year | 473 | 257 |
Total | 4,825 | 4,852 |
Retail customer | Canada | Current | ||
Financing receivable, recorded investment | ||
Originated in current fiscal year | 432,407 | 652,576 |
Originated in fiscal year before latest fiscal year | 462,070 | 436,138 |
Originated two years before latest fiscal year | 330,194 | 190,905 |
Originated three years before latest fiscal year | 132,596 | 90,968 |
Originated four years before latest fiscal year | 55,703 | 38,477 |
Originated five years before latest fiscal year | 19,562 | 10,311 |
Total | 1,432,532 | 1,419,375 |
Wholesale. | ||
Financing receivable, recorded investment | ||
Total | 4,830,862 | 3,383,804 |
Wholesale. | Total Past Due | ||
Financing receivable, recorded investment | ||
Total | 8 | 11 |
Wholesale. | 31-60 Days Past Due | ||
Financing receivable, recorded investment | ||
Total | 4 | 7 |
Wholesale. | Greater than 90 Days | ||
Financing receivable, recorded investment | ||
Total | 4 | 4 |
Wholesale. | Current | ||
Financing receivable, recorded investment | ||
Total | 4,830,854 | 3,383,793 |
Wholesale. | United States | ||
Financing receivable, recorded investment | ||
Total | 3,997,734 | 2,721,293 |
Wholesale. | United States | Total Past Due | ||
Financing receivable, recorded investment | ||
Total | 8 | 11 |
Wholesale. | United States | 31-60 Days Past Due | ||
Financing receivable, recorded investment | ||
Total | 4 | 7 |
Wholesale. | United States | Greater than 90 Days | ||
Financing receivable, recorded investment | ||
Total | 4 | 4 |
Wholesale. | United States | Current | ||
Financing receivable, recorded investment | ||
Total | 3,997,726 | 2,721,282 |
Wholesale. | Canada | ||
Financing receivable, recorded investment | ||
Total | 833,128 | 662,511 |
Wholesale. | Canada | Current | ||
Financing receivable, recorded investment | ||
Total | 833,128 | 662,511 |
Revolving charge accounts | ||
Financing receivable, recorded investment | ||
Total | 265,775 | 207,744 |
Charge-offs | ||
Total | 5,916 | |
Revolving charge accounts | Total Past Due | ||
Financing receivable, recorded investment | ||
Total | 9,773 | 24,940 |
Revolving charge accounts | 31-60 Days Past Due | ||
Financing receivable, recorded investment | ||
Total | 5,435 | 14,216 |
Revolving charge accounts | 61-90 Days Past Due | ||
Financing receivable, recorded investment | ||
Total | 2,766 | 10,724 |
Revolving charge accounts | Greater than 90 Days | ||
Financing receivable, recorded investment | ||
Total | 1,572 | |
Revolving charge accounts | Current | ||
Financing receivable, recorded investment | ||
Total | 256,002 | 182,804 |
Revolving charge accounts | United States | ||
Financing receivable, recorded investment | ||
Total | 247,007 | 192,795 |
Charge-offs | ||
Total | 5,542 | |
Revolving charge accounts | United States | Total Past Due | ||
Financing receivable, recorded investment | ||
Total | 9,009 | 22,944 |
Revolving charge accounts | United States | 31-60 Days Past Due | ||
Financing receivable, recorded investment | ||
Total | 4,977 | 12,979 |
Revolving charge accounts | United States | 61-90 Days Past Due | ||
Financing receivable, recorded investment | ||
Total | 2,547 | 9,965 |
Revolving charge accounts | United States | Greater than 90 Days | ||
Financing receivable, recorded investment | ||
Total | 1,485 | |
Revolving charge accounts | United States | Current | ||
Financing receivable, recorded investment | ||
Total | 237,998 | 169,851 |
Revolving charge accounts | Canada | ||
Financing receivable, recorded investment | ||
Total | 18,768 | 14,949 |
Charge-offs | ||
Total | 374 | |
Revolving charge accounts | Canada | Total Past Due | ||
Financing receivable, recorded investment | ||
Total | 764 | 1,996 |
Revolving charge accounts | Canada | 31-60 Days Past Due | ||
Financing receivable, recorded investment | ||
Total | 458 | 1,237 |
Revolving charge accounts | Canada | 61-90 Days Past Due | ||
Financing receivable, recorded investment | ||
Total | 219 | 759 |
Revolving charge accounts | Canada | Greater than 90 Days | ||
Financing receivable, recorded investment | ||
Total | 87 | |
Revolving charge accounts | Canada | Current | ||
Financing receivable, recorded investment | ||
Total | $ 18,004 | $ 12,953 |
RECEIVABLES - Impaired Receivab
RECEIVABLES - Impaired Receivables (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Financing receivable, impaired | ||
Accrued interest | $ 82,418 | $ 57,831 |
Delinquency period of accounts considered for recognition of income | 90 days | 90 days |
Retail customer | United States | ||
Financing receivable, impaired | ||
Receivables on nonaccrual status | $ 48,179 | $ 48,690 |
Retail customer | Canada | ||
Financing receivable, impaired | ||
Receivables on nonaccrual status | 6,087 | 4,852 |
Wholesale. | ||
Financing receivable, impaired | ||
Receivables on nonaccrual status | $ 0 | 0 |
Revolving charge accounts | ||
Financing receivable, impaired | ||
Receivables on nonaccrual status | $ 0 |
EQUIPMENT ON OPERATING LEASES_2
EQUIPMENT ON OPERATING LEASES (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Lease payments owed to the company for equipment under non-cancelable operating leases | |
Deferred operating lease subsidy | $ 72,900 |
2023 | 58,230 |
2024 | 182,004 |
2025 | 119,837 |
2026 | 57,167 |
2027 and thereafter | 25,432 |
Total lease payments | $ 442,670 |
CREDIT FACILITIES AND DEBT (Det
CREDIT FACILITIES AND DEBT (Details) $ in Thousands, $ in Thousands | Sep. 26, 2023 USD ($) | Sep. 13, 2023 USD ($) | Aug. 11, 2023 USD ($) | Aug. 11, 2023 CAD ($) | Jul. 03, 2023 USD ($) | Sep. 30, 2023 USD ($) | Sep. 27, 2023 CAD ($) | Sep. 26, 2023 CAD ($) |
Unsecured Facilities | Revolving credit facilities | ||||||||
Debt | ||||||||
Maximum borrowing capacity | $ 682,329 | |||||||
Line of credit, outstanding amount | 282,329 | |||||||
Unsecured Facilities | Commercial paper | ||||||||
Debt | ||||||||
Short-Term Outstanding | $ 348,090 | |||||||
Secured Debt | Amortizing Retail Term ABS | ||||||||
Debt | ||||||||
Debt amount | $ 1,050,960 | |||||||
Secured Debt | Global Master Repurchase Agreement | ||||||||
Debt | ||||||||
Debt amount | $ 190,894 | $ 258,070 | ||||||
Repurchase receivable obligation term | 30 days | |||||||
Unsecured Senior Notes | 1.950 % unsecured notes due 2023 | CNH Industrial Capital LLC | ||||||||
Debt | ||||||||
Repayment of debt | $ 600,000 | |||||||
Interest rate (as a percent) | 1.95% | |||||||
Unsecured Senior Notes | 5.500% unsecured notes due 2026 | ||||||||
Debt | ||||||||
Debt issued | $ 297,640 | $ 400,000 | ||||||
Interest rate (as a percent) | 5.50% | 5.50% | ||||||
Issue price of debt (as a percent) | 99.883% | 99.883% | ||||||
Unsecured Senior Notes | 5.500% unsecured notes due 2029 | ||||||||
Debt | ||||||||
Debt issued | $ 500,000 | |||||||
Interest rate (as a percent) | 5.50% | |||||||
Issue price of debt (as a percent) | 99.399% |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reconciliation of statutory and effective income tax rate | ||||
Effective tax rate (as a percent) | 22.90% | 23.30% | 22.30% | 23.70% |
FINANCIAL INSTRUMENTS - General
FINANCIAL INSTRUMENTS - General Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Interest Rate Derivatives | |
Maximum length of time of interest rate derivative instruments designated in cash flow hedge relationships | 60 months |
After-tax losses deferred in accumulated other comprehensive income (loss) that will be recognized in interest expense over the next 12 months | $ (2,215) |
FINANCIAL INSTRUMENTS - Fair Ma
FINANCIAL INSTRUMENTS - Fair Market Value of Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair market value of derivatives | |||||
Derivative assets designated as hedging instruments, classified in other assets | $ 2,548 | $ 2,548 | $ 3,597 | ||
Derivative liabilities designated as hedging instruments, classified in accounts payable and other accrued liabilities | 49,833 | 49,833 | 42,936 | ||
Interest rate derivatives, derivative assets not designated as hedging instruments, classified in other assets | 43,762 | 43,762 | 27,862 | ||
Foreign exchange contracts, derivatives not designated as hedging instruments, classified in other assets | 3,404 | 3,404 | 4,116 | ||
Derivative assets not designated as hedging instruments, classified in other assets | 47,166 | 47,166 | 31,978 | ||
Interest rate derivatives, derivative not designated as hedging instruments, classified in accounts payable and other accrued liabilities | 43,762 | 43,762 | 27,862 | ||
Foreign exchange contracts, derivatives not designated as hedging instruments, classified in accounts payable and other accrued liabilities | 435 | ||||
Derivative liabilities not designated as hedging instruments, classified in accounts payable and other accrued liabilities | 43,762 | 43,762 | 28,297 | ||
Cash Flow Hedges, Recognized in accumulated other comprehensive income (loss), Interest rate derivatives | 812 | $ 2,439 | (1,809) | $ 16,521 | |
Cash Flow Hedges, Reclassified from accumulated other comprehensive Income (loss), Interest rate derivatives - Interest expense to third parties | 781 | 342 | 1,843 | 557 | |
Foreign exchange contracts, other expenses, net, not designated as hedges | (1,227) | $ (6,256) | 1,024 | (7,119) | |
Interest rate derivatives | |||||
Fair market value of derivatives | |||||
Total notional amount of interest rate derivatives | $ 3,833,944 | 3,833,944 | $ 3,628,725 | ||
Ten-month average notional amounts of interest rate derivatives | $ 3,696,877 | $ 3,746,080 |
FINANCIAL INSTRUMENTS - Items M
FINANCIAL INSTRUMENTS - Items Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Foreign exchange contracts | $ 3,404 | $ 4,116 |
Liabilities | ||
Foreign exchange contracts | 435 | |
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 | 46,310 | 31,459 |
Foreign exchange contracts | 3,404 | 4,116 |
Total assets | 49,714 | 35,575 |
Liabilities | ||
Interest rate derivatives | 93,595 | 70,798 |
Foreign exchange contracts | 435 | |
Total liabilities | $ 93,595 | $ 71,233 |
FINANCIAL INSTRUMENTS - Carryin
FINANCIAL INSTRUMENTS - Carrying Amount and Estimated Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial Instruments Not Carried at Fair Value | ||
Receivables | $ 12,700,749 | $ 10,741,820 |
Long-term debt | 7,686,899 | 6,387,135 |
Carrying Amount | ||
Financial Instruments Not Carried at Fair Value | ||
Receivables | 12,700,749 | 10,741,820 |
Long-term debt | 7,686,899 | 6,387,135 |
Estimated Fair Value | ||
Financial Instruments Not Carried at Fair Value | ||
Receivables | 12,477,786 | 10,433,949 |
Long-term debt | $ 7,373,947 | $ 6,032,997 |
GEOGRAPHICAL INFORMATION (Detai
GEOGRAPHICAL INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Geographical Information | |||||||||
Revenues | $ 278,397 | $ 199,557 | $ 754,029 | $ 576,242 | |||||
Interest expense | 144,737 | 65,472 | 370,529 | 152,463 | |||||
Net income | 50,700 | $ 47,698 | $ 46,301 | 53,303 | $ 59,894 | $ 63,487 | 144,699 | 176,684 | |
Depreciation and amortization | 45,364 | 50,627 | 136,495 | 155,082 | |||||
Expenditures for equipment on operating leases | 129,566 | 107,810 | 357,375 | 354,324 | |||||
Provision for credit losses | 6,649 | (1,825) | 11,217 | 2,944 | |||||
Additional disclosures | |||||||||
Total assets | 15,234,382 | 15,234,382 | $ 13,179,479 | ||||||
Receivables | 12,819,693 | 9,989,848 | 12,819,693 | 9,989,848 | 10,866,832 | ||||
Eliminations | |||||||||
Geographical Information | |||||||||
Revenues | (357) | (534) | (1,382) | (3,241) | |||||
Interest expense | (357) | (534) | (1,382) | (3,241) | |||||
Additional disclosures | |||||||||
Total assets | (142,518) | (142,518) | (216,656) | ||||||
United States. | |||||||||
Geographical Information | |||||||||
Net income | 40,248 | 44,005 | 112,330 | 141,972 | |||||
Depreciation and amortization | 32,006 | 37,813 | 97,267 | 117,244 | |||||
Expenditures for equipment on operating leases | 86,985 | 73,055 | 253,104 | 251,617 | |||||
Provision for credit losses | 5,139 | (2,373) | 11,577 | 2,826 | |||||
Additional disclosures | |||||||||
Receivables | 10,527,103 | 10,527,103 | 8,758,694 | ||||||
United States. | Operating segment | |||||||||
Geographical Information | |||||||||
Revenues | 224,291 | 157,790 | 604,210 | 454,254 | |||||
Interest expense | 121,318 | 52,303 | 308,411 | 122,066 | |||||
Additional disclosures | |||||||||
Total assets | 12,272,421 | 12,272,421 | 10,712,413 | ||||||
Canada. | |||||||||
Geographical Information | |||||||||
Net income | 10,452 | 9,298 | 32,369 | 34,712 | |||||
Depreciation and amortization | 13,358 | 12,814 | 39,228 | 37,838 | |||||
Expenditures for equipment on operating leases | 42,581 | 34,755 | 104,271 | 102,707 | |||||
Provision for credit losses | 1,510 | 548 | (360) | 118 | |||||
Additional disclosures | |||||||||
Receivables | 2,292,590 | 2,292,590 | 2,108,138 | ||||||
Canada. | Operating segment | |||||||||
Geographical Information | |||||||||
Revenues | 54,463 | 42,301 | 151,201 | 125,229 | |||||
Interest expense | 23,776 | $ 13,703 | 63,500 | $ 33,638 | |||||
Additional disclosures | |||||||||
Total assets | $ 3,104,479 | $ 3,104,479 | $ 2,683,722 |
RELATED-PARTY TRANSACTIONS (Det
RELATED-PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
RELATED-PARTY TRANSACTIONS | |||||
Revolving charge accounts | $ 10,455 | $ 28,781 | |||
Total interest and other income from affiliates | 111,913 | $ 67,488 | 291,586 | $ 195,027 | |
Affiliated receivables | 283,787 | 283,787 | $ 53,509 | ||
Affiliated debt | 511,883 | 511,883 | 341,531 | ||
Other information | |||||
Interest expense to related affiliates | 10,180 | 2,933 | 23,613 | 4,632 | |
Fees charged by affiliates | 13,359 | 12,946 | 40,346 | 36,519 | |
Accounts payable and other accrued liabilities payable to related parties | 188,942 | 188,942 | 212,167 | ||
CNH Industrial North America | |||||
RELATED-PARTY TRANSACTIONS | |||||
Retail notes and finance leases | 35,917 | 30,885 | 93,781 | 94,373 | |
Operating lease | 10,265 | 11,328 | 30,423 | 36,179 | |
Revolving charge accounts | 1,086 | 3,051 | |||
Wholesale | 63,169 | 24,563 | 160,535 | 63,310 | |
Lending funds | 422 | 206 | 505 | 535 | |
CNH Industrial America | |||||
RELATED-PARTY TRANSACTIONS | |||||
Affiliated receivables | 10 | ||||
Affiliated debt | 511,883 | 511,883 | 100,195 | ||
CNH Industrial Canada Ltd. | |||||
RELATED-PARTY TRANSACTIONS | |||||
Affiliated receivables | 224,096 | 224,096 | |||
Affiliated debt | 241,036 | ||||
Banco CNH Industrial Capital Brazil | |||||
RELATED-PARTY TRANSACTIONS | |||||
Lending funds | 723 | 2,140 | |||
Affiliated receivables | 47,274 | 47,274 | 40,983 | ||
Other affiliates | |||||
RELATED-PARTY TRANSACTIONS | |||||
Lending funds | 331 | $ 506 | 1,151 | $ 630 | |
Affiliated receivables | $ 12,417 | $ 12,417 | 12,516 | ||
Affiliated debt | $ 300 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Guarantees | |
Payment guarantees on the financial debt of various foreign financial services subsidiaries | $ 50,400 |
Wholesale and dealer financing | |
Guarantees | |
Total credit limit | 6,540,009 |
Utilized | 4,751,422 |
Not Utilized | 1,788,587 |
Revolving charge accounts | |
Guarantees | |
Total credit limit | 2,533,805 |
Utilized | 266,294 |
Not Utilized | $ 2,267,511 |