Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2021 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Entity Registrant Name | CNH Industrial N.V. |
Entity Central Index Key | 0001567094 |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 7,820 | $ 8,785 |
Restricted cash | 764 | 844 |
Trade receivables, net | 522 | 506 |
Financing receivables, net | 18,729 | 18,457 |
Inventories, net | 7,471 | 6,022 |
Property, plant and equipment, net | 4,667 | 4,923 |
Investments in unconsolidated subsidiaries and affiliates | 504 | 529 |
Investments at fair value through profit and loss | 464 | 392 |
Equipment under operating leases | 1,910 | 1,978 |
Goodwill, net | 1,925 | 1,924 |
Other intangible assets, net | 763 | 772 |
Deferred tax assets | 1,418 | 1,451 |
Derivative assets | 136 | 160 |
Other assets | 2,129 | 1,976 |
Total Assets | 49,222 | 48,719 |
LIABILITIES AND EQUITY | ||
Debt | 24,512 | 26,053 |
Trade payables | 7,103 | 6,357 |
Deferred tax liabilities | 106 | 112 |
Pension, postretirement and other postemployment benefits | 1,531 | 1,617 |
Derivative liabilities | 171 | 139 |
Other liabilities | 9,725 | 9,412 |
Total Liabilities | 43,148 | 43,690 |
Redeemable noncontrolling interest | 44 | 40 |
Common shares, €0.01, par value; outstanding 1,354,242,505 common shares and 371,241,879 loyalty program special voting shares at 6/30/2021; and outstanding 1,353,910,471 common shares and 371,328,154 loyalty program special voting shares at 12/31/2020 | 25 | 25 |
Treasury stock, at cost; 10,157,691 common shares at 6/30/2021 and 10,489,725 common shares at 12/31/2020 | (105) | (109) |
Additional paid in capital | 4,411 | 4,388 |
Retained earnings | 4,197 | 3,279 |
Accumulated other comprehensive loss | (2,600) | (2,676) |
Noncontrolling interests | 102 | 82 |
Total Equity | 6,030 | 4,989 |
Total Liabilities and Equity | $ 49,222 | $ 48,719 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - € / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common shares, par value (in eur per share) | € 0.01 | € 0.01 |
Common shares, shares outstanding (in shares) | 1,354,242,505 | 1,353,910,471 |
Special voting shares, shares outstanding (in shares) | 371,241,879 | 371,328,154 |
Treasury stock, shares (in shares) | 10,157,691 | 10,489,725 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | ||||
Net sales | $ 8,490 | $ 5,150 | $ 15,533 | $ 10,143 |
Finance, interest and other income | 421 | 428 | 851 | 896 |
Total Revenues | 8,911 | 5,578 | 16,384 | 11,039 |
Costs and Expenses | ||||
Cost of goods sold | 6,867 | 5,114 | 12,600 | 9,528 |
Selling, general and administrative expenses | 622 | 484 | 1,162 | 1,010 |
Research and development expenses | 329 | 203 | 592 | 417 |
Restructuring expenses | 8 | 7 | 10 | 12 |
Interest expense | 147 | 170 | 308 | 351 |
Goodwill impairment charge | 0 | 585 | 0 | 585 |
Other, net | 81 | (1,295) | 298 | (1,098) |
Total Costs and Expenses | 8,054 | 5,268 | 14,970 | 10,805 |
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates | 857 | 310 | 1,414 | 234 |
Income tax (expense) benefit | (188) | 40 | (345) | 63 |
Equity in income of unconsolidated subsidiaries and affiliates | 30 | 11 | 55 | 10 |
Net income | 699 | 361 | 1,124 | 307 |
Net income attributable to noncontrolling interests | 9 | 11 | 26 | 22 |
Net income attributable to CNH Industrial N.V. | $ 690 | $ 350 | $ 1,098 | $ 285 |
Earnings per share attributable to common shareholders | ||||
Basic (in usd per share) | $ 0.51 | $ 0.26 | $ 0.81 | $ 0.21 |
Diluted (in usd per share) | 0.51 | 0.26 | 0.81 | 0.21 |
Cash dividends declared per common share (in usd per share) | $ 0.132 | $ 0 | $ 0.132 | $ 0 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 699 | $ 361 | $ 1,124 | $ 307 |
Other comprehensive income (loss), net of tax | ||||
Unrealized gain (loss) on cash flow hedges | (53) | (8) | (73) | 57 |
Changes in retirement plans’ funded status | (17) | (7) | (34) | (27) |
Foreign currency translation | 106 | (49) | 206 | (476) |
Share of other comprehensive income (loss) of entities using the equity method | 2 | 5 | (21) | (14) |
Other comprehensive income (loss), net of tax | 38 | (59) | 78 | (460) |
Comprehensive income (loss) | 737 | 302 | 1,202 | (153) |
Less: Comprehensive income attributable to noncontrolling interests | 9 | 11 | 28 | 21 |
Comprehensive income (loss) attributable to CNH Industrial N.V. | $ 728 | $ 291 | $ 1,174 | $ (174) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Operating activities: | |||
Net income | $ 1,124 | $ 307 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization expense, net of assets under operating leases and assets sold under buy-back commitments | 306 | 307 | |
Depreciation and amortization expense of assets under operating leases and assets sold under buy-back commitments | 271 | 259 | |
Loss on disposal of assets | 2 | 4 | |
Loss on repurchase of notes | 8 | 0 | |
Undistributed income of unconsolidated subsidiaries | 27 | 21 | |
Goodwill impairment charge | 0 | 585 | |
Other non-cash items | [1] | (2) | (982) |
Changes in operating assets and liabilities: | |||
Provisions | 151 | (152) | |
Deferred income taxes | (1) | (161) | |
Trade and financing receivables related to sales, net | (344) | 984 | |
Inventories, net | (1,205) | 299 | |
Trade payables | 806 | (954) | |
Other assets and liabilities | 228 | 18 | |
Net cash provided by operating activities | 1,371 | 535 | |
Investing activities: | |||
Additions to retail receivables | (2,398) | (2,069) | |
Collections of retail receivables | 2,397 | 2,129 | |
Proceeds from the sale of assets, net of assets under operating leases and assets sold under buy-back commitments | 13 | 5 | |
Expenditures for property, plant and equipment and intangible assets, net of assets under operating leases and assets sold under buy-back commitments | (203) | (132) | |
Expenditures for assets under operating leases and assets sold under buy-back commitments | (606) | (482) | |
Other | 32 | (86) | |
Net cash used in investing activities | (765) | (635) | |
Financing activities: | |||
Proceeds from long-term debt | 6,387 | 5,495 | |
Payments of long-term debt | (7,601) | (5,709) | |
Net increase (decrease) in other financial liabilities | (84) | 586 | |
Dividends paid | (183) | (3) | |
Net cash provided by (used in) financing activities | (1,481) | 369 | |
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash | (170) | (174) | |
Increase (decrease) in cash and cash equivalents and restricted cash | (1,045) | 95 | |
Cash and cash equivalents and restricted cash, beginning of year | 9,629 | 5,773 | |
Cash and cash equivalents and restricted cash, end of period | $ 8,584 | $ 5,868 | |
[1] | In the six months ended June 30, 2021 and 2020, this item includes pre-tax gains of $72 million and $1,475 million, respectively, from the remeasurement at fair value of the investment in Nikola Corporation. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Cash Flows [Abstract] | ||
Pre-tax gain from remeasurement of investment at fair value | $ 72 | $ 1,475 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Adoption of ASC 326 | Adjusted Balance | Common Shares | Common SharesAdjusted Balance | Treasury Stock | Treasury StockAdjusted Balance | Additional Paid-in Capital | Additional Paid-in CapitalAdjusted Balance | Retained Earnings | Retained EarningsAdoption of ASC 326 | Retained EarningsAdjusted Balance | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Adjusted Balance | Noncontrolling Interests | Noncontrolling InterestsAdjusted Balance | Redeemable Noncontrolling Interest | Redeemable Noncontrolling InterestAdjusted Balance |
Beginning balance at Dec. 31, 2019 | $ 6,121 | $ (36) | $ 6,085 | $ 25 | $ 25 | $ (154) | $ (154) | $ 4,404 | $ 4,404 | $ 3,808 | $ (36) | $ 3,772 | $ (2,002) | $ (2,002) | $ 40 | $ 40 | ||
Beginning balance, redeemable noncontrolling interests at Dec. 31, 2019 | $ 35 | $ 35 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income (loss) | (56) | (65) | 9 | |||||||||||||||
Net income, redeemable non controlling interests | 2 | |||||||||||||||||
Other comprehensive income (loss), net of tax | (401) | (399) | (2) | |||||||||||||||
Dividends paid | 0 | (1) | ||||||||||||||||
Decrease in noncontrolling interest due to the change of ownership | (9) | (5) | (4) | |||||||||||||||
Share-based compensation expense | 5 | 5 | ||||||||||||||||
Other changes | (2) | (3) | 1 | |||||||||||||||
Ending balance at Mar. 31, 2020 | 5,622 | 25 | (154) | 4,401 | 3,707 | (2,401) | 44 | |||||||||||
Ending balance, redeemable noncontrolling interests at Mar. 31, 2020 | 36 | |||||||||||||||||
Beginning balance at Dec. 31, 2019 | 6,121 | $ (36) | $ 6,085 | 25 | $ 25 | (154) | $ (154) | 4,404 | $ 4,404 | 3,808 | $ (36) | $ 3,772 | (2,002) | $ (2,002) | 40 | $ 40 | ||
Beginning balance, redeemable noncontrolling interests at Dec. 31, 2019 | 35 | $ 35 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Other comprehensive income (loss), net of tax | (460) | |||||||||||||||||
Ending balance at Jun. 30, 2020 | 5,925 | 25 | (140) | 4,392 | 4,057 | (2,460) | 51 | |||||||||||
Ending balance, redeemable noncontrolling interests at Jun. 30, 2020 | 38 | |||||||||||||||||
Beginning balance at Mar. 31, 2020 | 5,622 | 25 | (154) | 4,401 | 3,707 | (2,401) | 44 | |||||||||||
Beginning balance, redeemable noncontrolling interests at Mar. 31, 2020 | 36 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income (loss) | 357 | 350 | 7 | |||||||||||||||
Net income, redeemable non controlling interests | 4 | |||||||||||||||||
Other comprehensive income (loss), net of tax | (59) | (59) | ||||||||||||||||
Dividends paid | 0 | (2) | ||||||||||||||||
Common shares issued from treasury stock and capital increase for share-based compensation | 0 | 14 | (14) | |||||||||||||||
Share-based compensation expense | 4 | 4 | ||||||||||||||||
Other changes | 1 | 1 | ||||||||||||||||
Ending balance at Jun. 30, 2020 | 5,925 | 25 | (140) | 4,392 | 4,057 | (2,460) | 51 | |||||||||||
Ending balance, redeemable noncontrolling interests at Jun. 30, 2020 | 38 | |||||||||||||||||
Beginning balance at Dec. 31, 2020 | 4,989 | 25 | (109) | 4,388 | 3,279 | (2,676) | 82 | |||||||||||
Beginning balance, redeemable noncontrolling interests at Dec. 31, 2020 | 40 | 40 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income (loss) | 423 | 408 | 15 | |||||||||||||||
Net income, redeemable non controlling interests | 2 | |||||||||||||||||
Other comprehensive income (loss), net of tax | 40 | 38 | 2 | |||||||||||||||
Dividends paid | 0 | (1) | ||||||||||||||||
Common shares issued from treasury stock and capital increase for share-based compensation | 0 | 4 | (4) | |||||||||||||||
Share-based compensation expense | 15 | 15 | ||||||||||||||||
Other changes | (2) | (2) | ||||||||||||||||
Ending balance at Mar. 31, 2021 | 5,465 | 25 | (105) | 4,397 | 3,687 | (2,638) | 99 | |||||||||||
Ending balance, redeemable noncontrolling interests at Mar. 31, 2021 | 41 | |||||||||||||||||
Beginning balance at Dec. 31, 2020 | 4,989 | 25 | (109) | 4,388 | 3,279 | (2,676) | 82 | |||||||||||
Beginning balance, redeemable noncontrolling interests at Dec. 31, 2020 | 40 | 40 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Other comprehensive income (loss), net of tax | 78 | |||||||||||||||||
Ending balance at Jun. 30, 2021 | 6,030 | 25 | (105) | 4,411 | 4,197 | (2,600) | 102 | |||||||||||
Ending balance, redeemable noncontrolling interests at Jun. 30, 2021 | 44 | 44 | ||||||||||||||||
Beginning balance at Mar. 31, 2021 | 5,465 | 25 | (105) | 4,397 | 3,687 | (2,638) | 99 | |||||||||||
Beginning balance, redeemable noncontrolling interests at Mar. 31, 2021 | 41 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income (loss) | 695 | 690 | 5 | |||||||||||||||
Net income, redeemable non controlling interests | 4 | |||||||||||||||||
Other comprehensive income (loss), net of tax | 38 | 38 | ||||||||||||||||
Dividends paid | (181) | (180) | (1) | (1) | ||||||||||||||
Share-based compensation expense | 15 | 15 | ||||||||||||||||
Other changes | (2) | (1) | (1) | |||||||||||||||
Ending balance at Jun. 30, 2021 | 6,030 | $ 25 | $ (105) | $ 4,411 | $ 4,197 | $ (2,600) | $ 102 | |||||||||||
Ending balance, redeemable noncontrolling interests at Jun. 30, 2021 | $ 44 | $ 44 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION CNH Industrial N.V. (“CNH Industrial” or the “Company”) is incorporated in, and under the laws of, the Netherlands. CNH Industrial has its corporate seat in Amsterdam, the Netherlands, and its principal office in London, England, United Kingdom. The Company was formed on September 29, 2013 as a result of the business combination transaction between Fiat Industrial S.p.A. (“Fiat Industrial”) and its majority owned subsidiary CNH Global N.V. (“CNH Global”). Unless otherwise indicated or the context otherwise requires, the terms “CNH Industrial” and the “Company” refer to CNH Industrial and its subsidiaries. The condensed consolidated financial statements of CNH Industrial N.V. and its consolidated subsidiaries have been voluntarily prepared by the Company without audit. Although prepared on a voluntary basis, the condensed consolidated financial statements included in the report comply in all material respects with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) governing interim financial statements. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted as permitted by such rules and regulations. All adjustments, consisting only of normal recurring adjustments, have been included. Management believes that the disclosures are adequate to present fairly the financial position, results of operations, and cash flows at the dates and for the periods presented. These interim financial statements should be read in conjunction with the financial statements and the notes thereto appearing in the Company’s annual report on Form 20-F for the year ended December 31, 2020. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and related accompanying notes and disclosures. The COVID-19 pandemic has resulted in uncertainties in the Company's business, which may cause actual results to differ materially from the estimates and assumptions used in preparation of the financial statements including, but not limited to, future cash flows associated with goodwill, indefinite life intangibles, definite life intangibles, long-lived impairment tests, determination of discount rates and other assumptions for pension and other post-retirement benefit expense and income taxes. Changes in estimates are recorded in results of operations in the period during which the events or circumstances giving rise to such changes occur. Certain financial information in this report has been presented by geographic area. Our geographical regions are : (1) North America; (2) Europe; (3) South America and (4) Rest of World. The geographic designations have the following meanings: • North America : United States, Canada and Mexico; • Europe : member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine, and Balkans; • South America : Central and South America, and the Caribbean Islands; and • Rest of World |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS Adopted in 2021 Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This ASU eliminates certain exceptions to the general principles in ASC 740, Income Taxes. Specifically, it eliminates the exception to (1) the incremental approach for intraperiod tax allocation when there is a loss from continuing operations, and income or a gain from other items; (2) the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; (3) the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and (4) the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The Company adopted ASU 2019-12 on January 1, 2021. The adoption did not have a material impact on our consolidated financial statements. Not Yet Adopted Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). ASU 2020-04 provides temporary optional expedients and exceptions for applying |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The following table summarizes revenues for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, 2021 2020 (in millions) Agriculture $ 3,970 $ 2,541 Construction 808 420 Commercial and Specialty Vehicles 3,220 1,739 Powertrain 1,287 763 Eliminations and Other (795) (313) Total Industrial Activities $ 8,490 $ 5,150 Financial Services 439 441 Eliminations and Other (18) (13) Total Revenues $ 8,911 $ 5,578 Six Months Ended June 30, 2021 2020 (in millions) Agriculture $ 7,008 $ 4,785 Construction 1,464 842 Commercial and Specialty Vehicles 6,025 3,760 Powertrain 2,521 1,516 Eliminations and Other (1,485) (760) Total Industrial Activities $ 15,533 $ 10,143 Financial Services 887 930 Eliminations and Other (36) (34) Total Revenues $ 16,384 $ 11,039 The following table disaggregates revenues by major source for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, 2021 2020 (in millions) Revenues from: Sales of goods $ 8,245 $ 4,946 Rendering of services and other revenues 164 126 Rents on assets sold with a buy-back commitment 81 78 Revenues from sales of goods and services 8,490 5,150 Finance and interest income 236 254 Rents and other income on operating lease 185 174 Finance, interest and other income 421 428 Total Revenues $ 8,911 $ 5,578 Six Months Ended June 30, 2021 2020 (in millions) Revenues from: Sales of goods $ 15,038 $ 9,701 Rendering of services and other revenues 333 282 Rents on assets sold with a buy-back commitment 162 160 Revenues from sales of goods and services 15,533 10,143 Finance and interest income 478 527 Rents and other income on operating lease 373 369 Finance, interest and other income 851 896 Total Revenues $ 16,384 $ 11,039 Contract liabilities recorded in Other liabilities were $1,392 million and $1,381 million at June 30, 2021 and December 31, 2020, respectively. Contract liabilities primarily relate to extended warranties/maintenance and repair contracts, and transactions for the sale of vehicles with a buy-back commitment. During the three months ended June 30, 2021 and 2020, revenues included $123 million and $112 million, respectively, relating to contract liabilities outstanding at the beginning of each period. During the six months ended June 30, 2021 and 2020, revenues included $274 million and $257 million, respectively, relating to contract liabilities outstanding at the beginning of each period. At June 30, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $2.5 billion ($2.2 billion as of December 31, 2020). The Company expects to recognize revenue on approximately 29% and 71% of the remaining performance obligations over the next 12 and 36 months, respectively (approximately 32% and 77% as of December 31, 2020), with the remaining recognized thereafter. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES The Company consolidates various securitization trusts and facilities that have been determined to be variable interest entities (“VIEs”) and of which the Company is a primary beneficiary. The Company has both the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. For further information regarding VIEs, please see “Note 9: Receivables.” The following table presents certain assets and liabilities of consolidated VIEs, which are included in the condensed consolidated balance sheets included in this report. The assets in the table below include only those assets that can be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third party liabilities of the consolidated VIEs for which creditors do not have recourse to the general credit of the Company. June 30, 2021 December 31, 2020 (in millions) Restricted cash $ 602 $ 703 Financing receivables 8,554 8,974 Total Assets $ 9,156 $ 9,677 Debt $ 8,467 $ 8,835 Total Liabilities $ 8,467 $ 8,835 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The Company’s basic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if dilutive securities were exercised into common stock. Stock options, restricted stock units and performance stock units are considered dilutive securities. A reconciliation of basic and diluted earnings per share is as follows (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Basic: Net income attributable to CNH Industrial $ 690 $ 350 $ 1,098 $ 285 Weighted average common shares outstanding—basic 1,354 1,350 1,354 1,350 Basic earnings (loss) per share $ 0.51 $ 0.26 $ 0.81 $ 0.21 Diluted: Net income attributable to CNH Industrial $ 690 $ 350 $ 1,098 $ 285 Weighted average common shares outstanding—basic 1,354 1,350 1,354 1,350 Effect of dilutive securities (when dilutive): Stock compensation plans (1) 7 2 6 2 Weighted average common shares outstanding—diluted 1,361 1,352 1,360 1,352 Diluted earnings (loss) per share $ 0.51 $ 0.26 $ 0.81 $ 0.21 (1) For the three and six months ended June 30, 2021, 437 thousand and 232 thousand shares were excluded from the computation of diluted earnings per share due to an anti-dilutive impact. For the three and six months ended June 30, 2020, no shares were excluded from the computation of diluted earnings per share due to an anti-dilutive impact. |
EMPLOYEE BENEFIT PLANS AND POST
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS | 6 Months Ended |
Jun. 30, 2021 | |
Postemployment Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS | EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS The following table summarizes the components of net periodic benefit cost of CNH Industrial’s defined benefit pension plans and postretirement health and life insurance plans for the three and six months ended June 30, 2021 and 2020: Pension Healthcare Other Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, 2021 2020 2021 2020 2021 2020 (in millions) Service cost $ 6 $ 6 $ 1 $ 1 $ 5 $ 4 Interest cost 6 12 2 2 — 1 Expected return on assets (17) (22) (2) (1) — — Amortization of: Prior service credit — — (33) (32) — — Actuarial loss 8 10 1 — — — Net periodic benefit cost $ 3 $ 6 $ (31) $ (30) $ 5 $ 5 Pension Healthcare Other Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 2021 2020 (in millions) Service cost $ 11 $ 11 $ 2 $ 2 $ 10 $ 8 Interest cost 11 23 3 5 — 1 Expected return on assets (33) (42) (4) (3) — — Amortization of: Prior service credit — — (65) (65) — — Actuarial loss 16 20 2 1 — — Net periodic benefit cost $ 5 $ 12 $ (62) $ (60) $ 10 $ 9 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The effective tax rates for the three months ended June 30, 2021 and 2020 were 21.9% and negative 12.9%, respectively. The effective tax rates for the six months ended June 30, 2021 and 2020 were 24.4% and negative 26.9%, respectively. The 2021 effective tax rates reflect the Company’s full year estimated annual tax rate, reduced primarily by the impact of the Nikola fair market value remeasurement income being discretely taxed at a low rate, in accordance with the applicable jurisdictional tax laws. Additionally, the tax rate for the three months ended June 30, 2021 includes discrete tax benefits associated with tax rate changes related to two tax jurisdictions. The negative effective tax rates for the three and six months ended June 30, 2020 primarily resulted from the income tax benefits associated with pre-tax operational losses exceeding the income tax expense associated with the pre-tax income due to remeasuring the Company’s investment in Nikola Corporation, which was discretely calculated in accordance with the applicable jurisdictional tax laws. In addition, the income tax benefits related to the three and six months ended June 30, 2020 included no benefits related to either the goodwill impairment charge associated with the Company’s construction equipment operations or the pre-tax losses in certain jurisdictions where corresponding deferred tax assets were not recognized. As in all financial reporting periods, the Company assessed the realizability of its deferred tax assets, which relate to multiple tax jurisdictions in all regions of the world. No assessment changes occurred during the three month period ended June 30, 2021. However, the positive earnings trend of the Company’s industrial operations in Brazil continued during the first half of 2021 and the Company is forecasting full year 2021 pre-tax profits for these operations. Additionally, later in 2021, the Company expects to update both its current year and long-term forecast with respect to these operations. Based on this information, it is possible that a change in the assessment could occur with respect to recognizing the deferred tax assets of these operations within the next twelve months and possibly during the second half of 2021. Such an assessment change would likely have a material impact on the Company’s results of operations consistent with disclosures previously made in the Company’s annual report on Form 20-F for the year ended December 31, 2020. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The operating segments through which the Company manages its operations are based on the internal reporting used by the Company’s Chief Operating Decision Maker (“CODM”) to assess performance and make decisions about resource allocation. The segments are organized based on products and services provided by the Company. CNH Industrial has the following five operating segments: Agriculture designs, manufactures and distributes a full line of farm machinery and implements, including two-wheel and four-wheel drive tractors, crawler tractors (Quadtrac ® ), combines, cotton pickers, grape and sugar cane harvesters, hay and forage equipment, planting and seeding equipment, soil preparation and cultivation implements and material handling equipment. Agricultural equipment is sold under the New Holland Agriculture and Case IH brands, as well as the STEYR, Kongskilde and Överum brands in Europe and the Miller brand, primarily in North America and Australia. Construction designs, manufactures and distributes a full line of construction equipment including excavators, crawler dozers, graders, wheel loaders, backhoe loaders, skid steer loaders and compact track loaders. Construction equipment is sold under the CASE Construction Equipment and New Holland Construction brands. Commercial and Specialty Vehicles designs, manufactures and distributes a full range of light, medium, and heavy vehicles for the transportation and distribution of goods under the IVECO brand, city-buses, commuter buses under the IVECO BUS (previously Iveco Irisbus) and HEULIEZ BUS brands, quarry and mining equipment under the IVECO ASTRA brand, firefighting vehicles under the Magirus brand, and vehicles for civil defense and peace-keeping missions under the Iveco Defence Vehicles brand. Powertrain designs, manufactures and distributes, under the FPT Industrial brand, a range of engines, transmission systems and axles for on- and off-road applications, as well as for marine and power generation. Financial Services offers a range of financial products and services to dealers and customers. Financial Services provides and administers retail financing to customers for the purchase or lease of new and used industrial equipment or vehicles and other equipment sold by CNH Industrial brand dealers. In addition, Financial Services provides wholesale financing to CNH Industrial brand dealers. Wholesale financing consists primarily of floor plan financing and allows the dealers to purchase and maintain a representative inventory of products. Financial Services also provides trade receivables factoring services to CNH Industrial companies. The activities carried out by the four industrial segments Agriculture, Construction, Commercial and Specialty Vehicles, and Powertrain, as well as corporate functions, are collectively referred to as "Industrial Activities". Revenues for each reported segment are those directly generated by or attributable to the segment as a result of its business activities and include revenues from transactions with third parties as well as those deriving from transactions with other segments, recognized at normal market prices. Segment expenses represent expenses deriving from each segment’s business activities both with third parties and other operating segments or which may otherwise be directly attributable to it. Expenses deriving from business activities with other segments are recognized at normal market prices. With reference to Industrial Activities' segments, the CODM assesses segment performance and makes decisions about resource allocation based upon Adjusted EBIT. The Company believes Adjusted EBIT more fully reflects Industrial Activities segments' inherent profitability. Adjusted EBIT of Industrial Activities is defined as net income (loss) before: Income taxes, Financial Services' results, Industrial Activities’ interest expenses (net), foreign exchange gains/losses, finance and non-service component of pension and other post-employment benefit costs, restructuring expenses, and certain non-recurring items. In particular, non-recurring items are specifically disclosed items that management considers to be rare or discrete events that are infrequent in nature and not reflective of on-going operational activities. With reference to Financial Services, the CODM assesses the performance of the segment and makes decisions about resource allocation on the basis of net income prepared in accordance with U.S. GAAP. The following table includes the reconciliation of Adjusted EBIT for Industrial Activities to net income, the most comparable U.S. GAAP financial measure, for the three and six months ended June 30, 2021 and 2020. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) (in millions) Agriculture $ 582 $ 203 $ 981 $ 227 Construction 24 (87) 49 (170) Commercial and Specialty Vehicles 100 (156) 176 (212) Powertrain 74 32 189 63 Unallocated items, eliminations and other (81) (50) (151) (114) Total Adjusted EBIT of Industrial Activities $ 699 $ (58) $ 1,244 $ (206) Financial Services Net Income 99 53 190 133 Financial Services Income Taxes 30 20 63 50 Interest expense of Industrial Activities, net of interest income and eliminations (59) (59) (125) (118) Foreign exchange gains (losses), net of Industrial Activities (4) (7) (22) (5) Finance and non-service component of Pension and other post-employment benefit cost of Industrial Activities (1) 36 26 70 56 Restructuring expense of Industrial Activities (8) (7) (10) (12) Goodwill impairment charge — (585) — (585) Other discrete items of Industrial Activities (13) (537) (13) (544) Nikola investment fair value adjustment 107 1,475 72 1,475 Income (loss) before taxes $ 887 $ 321 $ 1,469 $ 244 Income tax (expense) benefit (188) 40 (345) 63 Net income (loss) $ 699 $ 361 $ 1,124 $ 307 |
RECEIVABLES
RECEIVABLES | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
RECEIVABLES | RECEIVABLES Financing Receivables, net A summary of financing receivables as of June 30, 2021 and December 31, 2020 is as follows: June 30, 2021 December 31, 2020 (in millions) Retail $ 9,323 $ 9,257 Wholesale 9,323 9,127 Other 83 73 Total $ 18,729 $ 18,457 The Company assesses and monitors the credit quality of its portfolio based on whether a receivable is classified as Performing or Non-Performing. Financing receivables are considered past due if the required principal and interest payments have not yet been received as of the contractual payment due date. Delinquency is reported in financing receivables greater than 30 days past due. Non-performing financing receivables represent loans for which the Company has ceased accruing finance income. These receivables are generally 90 days delinquent. Finance income for non-performing receivables is recognized on a cash basis. Accrued interest is charged-off to Interest income. Interest income charged-off was not material for the three and six months ended June 30, 2021. Accrual of finance income is resumed when the receivable becomes contractually current and collections are reasonably assured. As the terms for retail financing receivables are greater than one year, the performing/non-performing information is presented by year of origination for North America, South America and Rest of World. The aging of financing receivables as of June 30, 2021 and December 31, 2020 is as follows (in millions): June 30, 2021 31-60 Days 61-90 Days Total Past Current Total Non- Total Retail North America 2021 $ 1,502 $ — $ 1,502 2020 2,186 1 2,187 2019 1,193 1 1,194 2018 748 1 749 2017 368 1 369 Prior to 2017 178 1 179 Total $ 13 $ — $ 13 $ 6,162 $ 6,175 $ 5 $ 6,180 South America 2021 $ 417 $ — $ 417 2020 662 1 663 2019 380 1 381 2018 242 1 243 2017 130 — 130 Prior to 2017 89 1 90 Total $ 22 $ — $ 22 $ 1,898 $ 1,920 $ 4 $ 1,924 Rest of World 2021 $ 284 $ — $ 284 2020 429 2 431 2019 204 2 206 2018 134 — 134 2017 68 — 68 Prior to 2017 10 — 10 Total $ 10 $ 9 $ 19 $ 1,110 $ 1,129 $ 4 $ 1,133 Europe $ — $ — $ — $ 86 $ 86 $ — $ 86 Total Retail $ 45 $ 9 $ 54 $ 9,256 $ 9,310 $ 13 $ 9,323 Wholesale North America $ — $ — $ — $ 2,728 $ 2,728 $ 18 $ 2,746 South America — — — 603 603 33 636 Rest of World 3 2 5 674 679 1 680 Europe — — — 5,261 5,261 — 5,261 Total Wholesale $ 3 $ 2 $ 5 $ 9,266 $ 9,271 $ 52 $ 9,323 December 31, 2020 31-60 Days 61-90 Days Total Past Current Total Non- Total Retail North America 2020 $ 2,619 $ — $ 2,619 2019 1,571 1 1,572 2018 1,033 1 1,034 2017 543 1 544 2016 262 1 263 Prior to 2016 81 — 81 Total $ 29 $ — $ 29 $ 6,080 $ 6,109 $ 4 $ 6,113 South America 2020 $ 792 $ 1 $ 793 2019 448 3 451 2018 299 4 303 2017 173 2 175 2016 86 1 87 Prior to 2016 71 1 72 Total $ 4 $ 1 $ 5 $ 1,864 $ 1,869 $ 12 $ 1,881 Rest of World 2020 $ 544 $ — $ 544 2019 270 1 271 2018 195 1 196 2017 117 1 118 2016 39 — 39 Prior to 2016 2 — 2 Total $ 7 $ 4 $ 11 $ 1,156 $ 1,167 $ 3 $ 1,170 Europe $ — $ — $ — $ 93 $ 93 $ — $ 93 Total Retail $ 40 $ 5 $ 45 $ 9,193 $ 9,238 $ 19 $ 9,257 Wholesale North America $ — $ — $ — $ 2,722 $ 2,722 $ 31 $ 2,753 South America — — — 537 537 42 579 Rest of World 3 — 3 542 545 — 545 Europe — — — 5,250 5,250 — 5,250 Total Wholesale $ 3 $ — $ 3 $ 9,051 $ 9,054 $ 73 $ 9,127 Allowance for credit losses activity for the three and six months ended June 30, 2021 is as follows (in millions): Three Months Ended June 30, 2021 Retail Wholesale Opening Balance $ 359 $ 177 Provision (1) 1 Charge-offs, net of recoveries (11) (2) Foreign currency translation and other 10 6 Ending Balance $ 357 $ 182 Six Months Ended June 30, 2021 Retail Wholesale Opening Balance $ 381 $ 174 Provision 5 7 Charge-offs, net of recoveries (19) (3) Foreign currency translation and other (10) 4 Ending Balance $ 357 $ 182 At June 30, 2021, the allowance for credit losses includes a continued reassessment of the outlook by region regarding the impact of the COVID-19 pandemic on credit conditions. The Company continues to monitor the situation and will update the macroeconomic factors and qualitative factors in future periods, as warranted. The provision for credit losses is included in selling, general, and administrative expenses. At both June 30, 2020 and December 31, 2020, the allowance for credit losses was based on the Company's expectation of deteriorating credit conditions related to the COVID-19 pandemic. Allowance for credit losses activity for the three and six months ended June 30, 2020 and for the year ended December 31, 2020 is as follows (in millions): Three Months Ended June 30, 2020 Retail Wholesale Opening Balance $ 314 $ 144 Provision 34 15 Charge-offs, net of recoveries (24) (1) Foreign currency translation and other 2 1 Ending Balance $ 326 $ 159 Six Months Ended June 30, 2020 Retail Wholesale Opening Balance, as previously reported $ 299 $ 159 Adoption of ASC 326 35 (9) Opening Balance, as recast 334 150 Provision 54 17 Charge-offs, net of recoveries (44) (1) Foreign currency translation and other (18) (7) Ending Balance $ 326 $ 159 Twelve Months Ended December 31, 2020 Retail Wholesale Opening Balance, as previously reported $ 299 $ 159 Adoption of ASC 326 35 (9) Opening Balance, as recast 334 150 Provision 113 27 Charge-offs, net of recoveries (56) (14) Foreign currency translation and other (10) 11 Ending Balance $ 381 $ 174 Troubled Debt Restructurings A restructuring of a receivable constitutes a troubled debt restructuring (“TDR”) when a lender grants a concession it would not otherwise consider to a borrower that is experiencing financial difficulties. As a collateral-based lender, the Company typically will repossess collateral in lieu of restructuring receivables. As such, for retail receivables, concessions are typically provided based on bankruptcy court proceedings. For wholesale receivables, concessions granted may include extended contract maturities, inclusion of interest-only periods, modification of a contractual interest rate to a below market interest rate and waiving of interest and principal. TDRs are reviewed along with other receivables as part of management’s ongoing evaluation of the adequacy of the allowance for credit losses. The allowance for credit losses attributable to TDRs is based on the most probable source of repayment, which is normally the liquidation of the collateral. In determining collateral value, the Company estimates the current fair market value of the equipment collateral and considers credit enhancements such as additional collateral and third-party guarantees. Before removing a receivable from TDR classification, a review of the borrower is conducted. If concerns persist about the future ability of the borrower to meet its obligations based on a credit review, the TDR classification is not removed from the receivable. As of June 30, 2021, the Company had 204 retail and finance lease contracts classified as TDRs in North America where a court has determined the concession. The pre-modification value of these contracts was $6 million and the post-modification value was $5 million. Additionally, the Company had 339 accounts with a balance of $22 million in North America undergoing bankruptcy proceedings where a concession has not yet been determined. As of June 30, 2020, the Company had 275 retail and finance lease contracts classified as TDRs in North America where a court has determined the concession. The pre-modification value was $9 million and the post-modification value was $8 million. Additionally, the Company had 330 accounts with a balance of $21 million in North America undergoing bankruptcy proceedings where a concession has not yet been determined. As the outcome of the bankruptcy cases is determined by the court based on available assets, subsequent re-defaults are unusual and were not material for retail and finance lease contracts that were modified in a TDR during the previous twelve months ended June 30, 2021 and 2020. As of June 30, 2021 and 2020, the Company had retail and finance lease receivable contracts classified as TDRs in Europe. The pre-modification value was $86 million and $78 million, respectively, and the post-modification value was $79 million and $71 million, respectively. Subsequent re-defaults were not material for retail and finance lease receivable contracts that were modified in a TDR during the previous twelve months ended June 30, 2021 and 2020. As of June 30, 2021 and 2020, the Company’s wholesale TDR were immaterial. Transfers of Financial Assets The Company transfers a number of its financial receivables to securitization programs or factoring transactions. A securitization transaction entails the sale of a portfolio of receivables to a securitization vehicle. This special purpose entity (“SPE”) finances the purchase of the receivables by issuing asset-backed securities (i.e. securities whose repayment and interest flow depend upon the cash flow generated by the portfolio). SPEs utilized in securitizations differ from other entities included in the Company’s condensed consolidated financial statements because the assets they hold are legally isolated. 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. These securitization trusts were determined to be VIEs, and consequently, the Company has consolidated these trusts. In its role as servicer, the Company has the power to direct the trusts’ activities. Through its retained interests, the Company has an obligation to absorb certain losses or the right to receive certain benefits that could potentially be significant to the trusts. No recourse provisions exist that allow holders of the asset-backed securities issued by the trusts to put those securities back to the Company although the Company provides customary representations and warranties that could give rise to an obligation to repurchase from the trusts any receivables for which there is a breach of the representations and warranties. Moreover, the Company does not guarantee any securities issued by the trusts. The trusts have a limited life and generally terminate upon final distribution of amounts owed to investors or upon exercise of a cleanup-call option by the Company in its role as servicer. Furthermore, factoring transactions may be either with recourse or without recourse; certain without recourse transfers include deferred payment clauses (for example, when the payment by the factor of a minor part of the purchase price is dependent on the total amount collected from the receivables), requiring first loss cover, meaning that the transferor takes priority participation in the losses, or requires a significant exposure to the cash flows arising from the transferred receivables to be retained. These types of transactions do not qualify for the derecognition of the assets since the risks and rewards connected with collection are not substantially transferred, and, accordingly, the Company continues to recognize the receivables transferred by this means in its balance sheet and a financial liability of the same amount under asset-backed financing. At June 30, 2021 and December 31, 2020, the carrying amount of such restricted assets included in financing receivables above are the following (in millions): Restricted Receivables June 30, 2021 December 31, 2020 Retail note and finance lease receivables $ 5,662 $ 6,224 Wholesale receivables 6,613 7,011 Total $ 12,275 $ 13,235 |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories as of June 30, 2021 and December 31, 2020 consist of the following: June 30, 2021 December 31, 2020 (in millions) Raw materials $ 1,982 $ 1,525 Work-in-process 1,329 622 Finished goods 4,160 3,875 Total inventories $ 7,471 $ 6,022 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
LEASES | LEASES Lessee The Company has mainly operating lease contracts for buildings, plant and machinery, vehicles, IT equipment and machinery. Leases with a term of 12 months or less are not recorded in the balance sheet. For these leases the Company recognized, on a straight-line basis over the lease term, lease expense of $4 million and $3 million in the three months ended June 30, 2021 and 2020, respectively, and $6 million and $6 million in the six months ended June 30, 2021 and 2020, respectively. For the three and six months ended June 30, 2021 the Company incurred operating lease expenses of $38 million and $76 million, respectively. For the three and six months ended June 30, 2020, the Company incurred operating lease expenses of $35 million and $70 million, respectively. At June 30, 2021, the Company has recorded approximately $432 million of right-of-use assets and $431 million of related lease liability included in Other Assets and Other Liabilities, respectively. At June 30, 2021, the weighted average remaining lease term (calculated on the basis of the remaining lease term and the lease liability balance for each lease) and the weighted average discount rate for operating leases were 6.2 years and 3.0%, respectively. During the six months ended June 30, 2021 and 2020 leased assets obtained in exchange for operating lease obligations were $57 million and $33 million, respectively. The operating cash outflow for amounts included in the measurement of operating lease obligations was $77 million and $70 million as of June 30, 2021 and 2020, respectively. Lessor The Company, primarily through its Financial Services segment, leases equipment and vehicles to retail customers under operating leases. Our leases typically have terms of 3 to 5 years with options available for the lessee to purchase the equipment at the lease term date. Revenue for non-lease components are accounted for separately. |
LEASES | LEASES Lessee The Company has mainly operating lease contracts for buildings, plant and machinery, vehicles, IT equipment and machinery. Leases with a term of 12 months or less are not recorded in the balance sheet. For these leases the Company recognized, on a straight-line basis over the lease term, lease expense of $4 million and $3 million in the three months ended June 30, 2021 and 2020, respectively, and $6 million and $6 million in the six months ended June 30, 2021 and 2020, respectively. For the three and six months ended June 30, 2021 the Company incurred operating lease expenses of $38 million and $76 million, respectively. For the three and six months ended June 30, 2020, the Company incurred operating lease expenses of $35 million and $70 million, respectively. At June 30, 2021, the Company has recorded approximately $432 million of right-of-use assets and $431 million of related lease liability included in Other Assets and Other Liabilities, respectively. At June 30, 2021, the weighted average remaining lease term (calculated on the basis of the remaining lease term and the lease liability balance for each lease) and the weighted average discount rate for operating leases were 6.2 years and 3.0%, respectively. During the six months ended June 30, 2021 and 2020 leased assets obtained in exchange for operating lease obligations were $57 million and $33 million, respectively. The operating cash outflow for amounts included in the measurement of operating lease obligations was $77 million and $70 million as of June 30, 2021 and 2020, respectively. Lessor The Company, primarily through its Financial Services segment, leases equipment and vehicles to retail customers under operating leases. Our leases typically have terms of 3 to 5 years with options available for the lessee to purchase the equipment at the lease term date. Revenue for non-lease components are accounted for separately. |
INVESTMENTS IN UNCONSOLIDATED S
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES | 6 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES | INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES A summary of investments in unconsolidated subsidiaries and affiliates as of June 30, 2021 and December 31, 2020 is as follows: June 30, 2021 December 31, 2020 (in millions) Equity method $ 474 $ 514 Cost method 30 15 Total $ 504 $ 529 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES Changes in the carrying amount of goodwill for the six months ended June 30, 2021 are as follows: Agriculture Commercial and Specialty Powertrain Financial Total (in millions) Balance at January 1, 2021 $ 1,695 $ 65 $ 7 $ 157 $ 1,924 Foreign currency translation and other 3 (2) — — 1 Balance at June 30, 2021 $ 1,698 $ 63 $ 7 $ 157 $ 1,925 Goodwill and other indefinite-lived intangible assets are tested for impairment annually or more frequently if a triggering event occurs that would indicate it is more likely than not that the fair value of a reporting unit is less than book value. CNH Industrial performed its most recent annual impairment review as of December 31, 2020. At that date, the estimated fair values of the Agriculture and Financial Services reporting units exceeded the carrying value by approximately 270% and 51%, respectively. As of June 30, 2021 and December 31, 2020, the Company’s other intangible assets and related accumulated amortization consisted of the following: June 30, 2021 December 31, 2020 Weighted Gross Accumulated Net Gross Accumulated Net (in millions) Other intangible assets subject to Dealer networks 15 $ 306 $ 244 $ 62 $ 311 $ 241 $ 70 Patents, concessions, licenses and other 5-25 2,125 1,697 428 2,107 1,678 429 2,431 1,941 490 2,418 1,919 499 Other intangible assets not subject to Trademarks 273 — 273 273 — 273 Total Other intangible assets $ 2,704 $ 1,941 $ 763 $ 2,691 $ 1,919 $ 772 CNH Industrial recorded amortization expense of $30 million and $23 million for the three months ended June 30, 2021 and 2020, respectively, and $56 million and $47 million for the six months ended June 30, 2021 and 2020, respectively. |
OTHER LIABILITIES
OTHER LIABILITIES | 6 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LIABILITIES | OTHER LIABILITIES A summary of Other liabilities as of June 30, 2021 and December 31, 2020 is as follows: June 30, 2021 December 31, 2020 (in millions) Advances on buy-back agreements $ 1,183 $ 1,355 Warranty and campaign programs 1,026 995 Marketing and sales incentive programs 1,480 1,324 Tax payables 813 654 Accrued expenses and deferred income 687 672 Accrued employee benefits 812 681 Lease liabilities 431 453 Legal reserves and other provisions 342 332 Contract reserve 407 389 Contract liabilities (1) 1,392 1,381 Restructuring reserve 64 76 Other 1,088 1,100 Total $ 9,725 $ 9,412 (1) Contract liabilities include $722 million and $740 million at June 30, 2021 and December 31, 2020, respectively, for future rents related to buy-back agreements. Warranty and Campaign Programs CNH Industrial pays for basic warranty and other service action costs. A summary of recorded activity for the three and six months ended June 30, 2021 and 2020 for the basic warranty and accruals for campaign programs are as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) (in millions) Balance at beginning of period $ 997 $ 887 $ 995 $ 919 Current year additions 212 157 414 342 Claims paid (188) (152) (352) (322) Currency translation adjustment and other 5 11 (31) (36) Balance at end of period $ 1,026 $ 903 $ 1,026 $ 903 Restructuring Expense The Company incurred restructuring expenses of $8 million and $7 million during the three months ended June 30, 2021 and 2020, respectively. The Company incurred restructuring expenses of $10 million and $12 million during the six months ended June 30, 2021 and 2020, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES As a global company with a diverse business portfolio, CNH Industrial in the ordinary course of business is exposed to numerous legal risks, including, without limitation, dealer and supplier litigation, intellectual property right disputes, product warranty and defective product claims, product performance, asbestos, personal injury, emissions and/or fuel economy regulatory and contractual issues, competition law and other investigations and environmental claims. The most significant of these matters are described below. The outcome of any current or future proceedings, claims, or investigations cannot be predicted with certainty. Adverse decisions in one or more of these proceedings, claims or investigations could require the Company to pay substantial damages or fines or undertake service actions, recall campaigns or other costly actions. It is therefore possible that legal judgments could give rise to expenses that are not covered, or not fully covered, by insurers’ compensation payments and could affect CNH Industrial’s financial position and results. When it is probable that such a loss has been incurred and the amount can be reasonably estimated, an accrual has been made against the Company’s earnings and included in “Other liabilities” on the condensed consolidated balance sheets. Although the ultimate outcome of legal matters pending against CNH Industrial and its subsidiaries cannot be predicted, the Company believes the reasonable possible range of losses for these unresolved legal matters in addition to the amounts accrued would not have a material effect on its condensed consolidated financial statements. Environmental Pursuant to the U.S. Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), which imposes strict and, under certain circumstances, joint and several liability for remediation and liability for natural resource damages, and other federal and state laws that impose similar liabilities, CNH Industrial has received inquiries for information or notices of its potential liability regarding 66 non-owned U.S. sites at which regulated materials allegedly generated by CNH Industrial were released or disposed (“Waste Sites”). Of the Waste Sites, 16 are on the National Priority List (“NPL”) promulgated pursuant to CERCLA. For 60 of the Waste Sites, the monetary amount or extent of the Company’s liability has either been resolved, it has not been named as a potentially responsible party (“PRP”), or its liability is likely de minimis . Because estimates of remediation costs are subject to revision as more information becomes available about the extent and cost of remediation and settlement agreements can be reopened under certain circumstances, the Company’s potential liability for remediation costs associated with the 66 Waste Sites could change. Moreover, because liability under CERCLA and similar laws can be joint and several, CNH Industrial could be required to pay amounts in excess of its pro rata share of remediation costs. However, when appropriate, the financial strength of other PRPs has been considered in the determination of the Company’s potential liability. CNH Industrial believes that the costs associated with the Waste Sites will not have a material effect on the Company’s business, financial position, or results of operations. The Company is conducting environmental investigatory or remedial activities at certain properties that are currently or were formerly owned and/or operated or that are being decommissioned. The Company believes that the outcome of these activities will not have a material adverse effect on its business, financial position, or results of operations. The actual costs for environmental matters could differ materially from those costs currently anticipated due to the nature of historical handling and disposal of hazardous substances typical of manufacturing and related operations, the discovery of currently unknown conditions and as a result of more aggressive enforcement by regulatory authorities and changes in existing laws and regulations. As in the past, CNH Industrial plans to continue funding its costs of environmental compliance from operating cash flows. Investigation, analysis and remediation of environmental sites is a time consuming activity. The Company expects such costs to be incurred and claims to be resolved over an extended period of time that could exceed 30 years for some sites. As of June 30, 2021 and December 31, 2020, environmental reserves of approximately $30 million and $32 million, respectively, were established to address these specific estimated potential liabilities. Such reserves are undiscounted and do not include anticipated recoveries, if any, from insurance companies. After considering these reserves, management is of the opinion that the outcome of these matters will not have a material adverse effect on the Company’s financial position or results of operations. Other Litigation and Investigation Follow-up on Damages Claims: in 2011 Iveco S.p.A., the Company’s wholly owned subsidiary, active in the commercial vehicle business, and its competitors in the European Union were subject to an investigation by the European Commission (the “Commission”) into certain business practices in the European Union (in the period 1997-2011) in relation to M&H trucks. On July 19, 2016, the Commission announced a settlement with Iveco. Following the settlement, the Company has been named as defendant in private litigation commenced in various European jurisdictions and Israel by customers and other third parties, either acting individually or as part of a wider group or class of claimants. Most of these claims remain at an early stage. Further, on the basis of the letters issued by a significant number of customers indicating that they may commence proceedings in the future, CNH Industrial expects to face further claims based on the same legal grounds in the same and other jurisdictions. The extent and outcome of these claims cannot be predicted at this time. FPT Emissions Investigation: on July 22, 2020, a number of CNH Industrial's offices in Europe were visited by investigators in the context of a request for assistance by the public prosecutors of Frankfurt am Main, Germany and Turin, Italy in relation to alleged noncompliance of two engine models produced by FPT Industrial S.p.A., a wholly owned subsidiary of CNH Industrial, installed in certain Ducato (a vehicle distributed by the Stellantis group) and Iveco Daily vehicles. CNH Industrial immediately made itself available to these investigators and is providing its full cooperation to properly address the requests received. Although at the date hereof CNH Industrial has no evidence of any wrongdoing, CNH Industrial cannot predict at this time the extent and outcome of these requests and directly or indirectly related legal proceedings. Guarantees CNH Industrial provided guarantees on the debt or commitments of third parties and performance guarantees on non-consolidated affiliates as of June 30, 2021 and December 31, 2020 totaling of $490 million and $615 million, respectively. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | 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 CNH Industrial utilizes derivative instruments to mitigate its exposure to interest rate and foreign currency exposures. Derivatives used as hedges are effective at reducing the risk associated with the exposure being hedged and are designated as a hedge at the inception of the derivative contract. CNH Industrial 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 condensed consolidated statements of cash flows. Foreign Exchange Derivatives CNH Industrial has entered into foreign exchange forward contracts and swaps in order to manage and preserve the economic value of cash flows in a currency different from the functional currency of the relevant legal entity. CNH Industrial conducts its business on a global basis in a wide variety of foreign currencies and hedges foreign currency exposures arising from various receivables, liabilities, and expected inventory purchases and sales. Derivative instruments utilized to hedge the foreign currency risk associated with anticipated inventory purchases and sales in foreign currencies are designated as cash flow hedges. Gains and losses on these instruments are deferred in accumulated other comprehensive income (loss) and recognized in earnings when the related transaction occurs. If a derivative instrument is terminated because the hedge relationship is no longer effective or because the hedged item is a forecasted transaction that is no longer determined to be probable, the cumulative amount recorded in accumulated other comprehensive income (loss) is recognized immediately in earnings. Such amounts were insignificant in all periods presented. CNH Industrial also uses forwards and swaps to hedge certain assets and liabilities denominated in foreign currencies. Such derivatives are considered economic hedges and not designated as hedging instruments. The changes in the fair values of these instruments are recognized directly in income in “Other, net” and are expected to offset the foreign exchange gains or losses on the exposures being managed. All of CNH Industrial’s foreign exchange derivatives are considered Level 2 as the fair value is calculated using market data input and can be compared to actively traded derivatives. The total notional amount of CNH Industrial’s foreign exchange derivatives was $7.9 billion and $6.3 billion at June 30, 2021 and December 31, 2020, respectively. Interest Rate Derivatives CNH Industrial has entered into interest rate derivatives (swaps and caps) in order to manage interest rate exposures arising in the normal course of business. Interest rate derivatives that have been designated as cash flow hedges are being used by the Company to mitigate the risk of rising interest rates related to existing debt and anticipated issuance of fixed-rate debt in future periods. Gains and losses on these instruments are deferred in accumulated other comprehensive income (loss) and recognized in interest expense over the period in which CNH Industrial recognizes interest expense on the related debt. Interest rate derivatives that have been designated as fair value hedge relationships have been used by CNH Industrial to mitigate the volatility in the fair value of existing fixed rate bonds and medium-term notes due to changes in floating interest rate benchmarks. Gains and losses on these instruments are recorded in “Interest expense” in the period in which they occur and an offsetting gain or loss is also reflected in “Interest expense” based on changes in the fair value of the debt instrument being hedged due to changes in floating interest rate benchmarks. CNH Industrial also enters into offsetting interest rate derivatives with substantially similar terms that are not designated as hedging instruments to mitigate interest rate risk related to CNH Industrial’s committed asset-backed facilities. Unrealized and realized gains and losses resulting from fair value changes in these instruments are recognized directly in income. Net gains and losses on these instruments were insignificant for the three and six months ended June 30, 2021 and 2020. All of CNH Industrial’s interest rate derivatives outstanding as of June 30, 2021 and December 31, 2020 are considered Level 2. The fair market value of these derivatives is calculated using market data input and can be compared to actively traded derivatives. The total notional amount of CNH Industrial’s interest rate derivatives was approximately $7.8 billion and $7.5 billion at June 30, 2021 and December 31, 2020, respectively. As a result of the reform and replacement of specific benchmark interest rates, uncertainty remains regarding the timing and exact nature of those changes. At June 30, 2021, the notional amount of hedging instruments that could be affected by the reform of benchmark interest rates is $1,230 million. With regard to hedge accounting, the Company continues to monitor significant developments in order to assess the potential future impacts of the COVID-19 pandemic on the hedging relationships in place and to update its estimates concerning whether forecasted transactions can still be considered probable of occurring. Financial Statement Impact of CNH Industrial Derivatives The following table summarizes the gross impact of changes in the fair value of derivatives designated as cash flow hedges recognized in accumulated other comprehensive income (loss) and net income (loss) during the three and six months ended June 30, 2021 and 2020 (in millions): Recognized in Net Income For the Three Months Ended June 30, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2021 Foreign exchange contracts $ (55) Net sales (1) Cost of goods sold 2 Other, Net 1 Interest rate contracts 5 Interest expense (1) Total $ (50) $ 1 2020 Foreign exchange contracts $ (15) Net sales — Cost of goods sold (3) Other, Net (5) Interest rate contracts (4) Interest expense (1) Total $ (19) $ (9) Recognized in Net Income For the Six Months Ended June 30, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2021 Foreign exchange contracts $ (81) Net sales (3) Cost of goods sold 27 Other, Net (6) Interest rate contracts 25 Interest expense (3) Total $ (56) $ 15 2020 Foreign exchange contracts $ 66 Net sales (1) Cost of goods sold (20) Other, Net 10 Interest rate contracts (19) Interest expense (2) Total $ 47 $ (13) The following table summarizes the activity in accumulated other comprehensive income related to the derivatives held by the Company during the six months ended June 30, 2021 and 2020: In Millions Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2020 $ (5) $ (1) $ (6) Net changes in fair value of derivatives (56) (3) (59) Net losses reclassified from accumulated other comprehensive income into income (15) 1 (14) Accumulated derivative net losses as of June 30, 2021 $ (76) $ (3) $ (79) In Millions Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2019 $ (62) $ 8 $ (54) Net changes in fair value of derivatives 47 — 47 Net losses reclassified from accumulated other comprehensive income into income 13 (3) 10 Accumulated derivative net losses as of June 30, 2020 $ (2) $ 5 $ 3 The following tables summarize the impact that changes in the fair value of fair value hedges and derivatives not designated as hedging instruments had on earnings (in millions): For the Three Months Ended June 30, Classification of Gain 2021 2020 Fair Value Hedges Interest rate derivatives Interest expense $ (2) $ 3 Not Designated as Hedges Foreign exchange contracts Other, Net $ (58) $ 13 For the Six Months Ended June 30, Classification of Gain 2021 2020 Fair Value Hedges Interest rate derivatives Interest expense $ (23) $ 42 Not Designated as Hedges Foreign exchange contracts Other, Net $ (76) $ 154 The fair values of CNH Industrial’s derivatives as of June 30, 2021 and December 31, 2020 in the condensed consolidated balance sheets are recorded as follows: June 30, 2021 December 31, 2020 in millions of dollars Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments under Subtopic 815-20 Interest rate contracts Derivative assets 60 Derivative assets 77 Foreign currency contracts Derivative assets 32 Derivative assets 67 Total derivative assets designated as hedging instruments 92 144 Interest rate contracts Derivative liabilities 28 Derivative liabilities 46 Foreign currency contracts Derivative liabilities 118 Derivative liabilities 62 Total derivative liabilities designated as hedging instruments 146 108 Derivatives not designated as hedging instruments under Subtopic 815-20 Interest rate contracts Derivative assets 8 Derivative assets — Foreign currency contracts Derivative assets 34 Derivative assets 16 Total derivative assets not designated as hedging instruments 42 16 Interest rate contracts Derivative liabilities 9 Derivative liabilities — Foreign currency contracts Derivative liabilities 16 Derivative liabilities 31 Total derivative liabilities not designated as hedging instruments 25 31 Items Measured at Fair Value on a Recurring Basis The following tables present for each of the fair-value hierarchy levels the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 2021 and December 31, 2020: Level 1 Level 2 Total June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 (in millions) Assets Foreign exchange derivatives $ — $ — $ 66 $ 83 $ 66 $ 83 Interest rate derivatives — — 68 77 68 77 Other — — 2 — 2 — Investments at fair value through profit & loss 464 392 — — 464 392 Total Assets $ 464 $ 392 $ 136 $ 160 $ 600 $ 552 Liabilities Foreign exchange derivatives $ — $ — $ 134 $ 93 $ 134 $ 93 Interest rate derivatives — — 37 46 37 46 Total Liabilities $ — $ — $ 171 $ 139 $ 171 $ 139 The line item “Investments at fair value through profit & loss” includes the fair value of the approximately 6.5% investment held by CNH Industrial in Nikola Corporation ("Nikola"), made in the context of the strategic partnership with Nikola to industrialize fuel-cell and battery electric Heavy-Duty trucks. The market price of Nikola shares on the NASDAQ (ticker "NKLA") as of June 30, 2021 was $18.06, determining a value of $463 million for the 25,661,448 shares held by CNH Industrial through its fully-owned subsidiary Iveco S.p.A. As a consequence, at June 30, 2021 the Company recorded a pre-tax gain of $107 million ($106 million after tax), from the remeasurement at fair value of the investment in Nikola, recorded in the line item “Other, net”. Items Measured at Fair Value on a Non-Recurring Basis During the second quarter of 2020, the Company recorded property and equipment impairments of $163 million related to Agriculture ($111 million), Construction ($45 million) and Commercial and Specialty Vehicles ($7 million). The impairments were the result of declines in forecasted performance that indicated it was probable that the future cash flows would not cover the carrying amount of assets used in manufacturing equipment of the respective segments. In addition, the Company recorded impairments during the three months ended June 30, 2020 of $27 million related to its Construction dealer network and $65 million related to certain software costs in its Agriculture segment. No impairments were recorded during the three and six months ended June 30, 2021. The following tables present the fair value for nonrecurring Level 3 measurements from impairments as of June 30, 2021 and 2020: Fair Value Losses 2021 2020 2021 2020 (in millions) Property, plant and equipment $ — $ 107 $ — $ 163 Other intangible assets $ — $ — $ — $ 92 The following is a description of the valuation methodologies the Company uses to non-monetary assets at fair value: Property, plant, and equipment, net: The impairments are measured at the lower of the carrying amount, or fair value. The valuations were based on a cost approach. The inputs include replacement cost estimates adjusted for physical deterioration and economic obsolescence. Other intangible assets, net: The impairments are measured at the lower of the carrying amount or fair value. The valuations were based on the income approach (discounted cash flows). The inputs include estimates of future cash flows. Fair Value of Other Financial Instruments The carrying value of cash and cash equivalents, restricted cash, trade accounts receivable and accounts payable included in the condensed consolidated balance sheets approximates its fair value. Financial Instruments Not Carried at Fair Value The estimated fair market values of financial instruments not carried at fair value in the condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020 are as follows: June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair (in millions) Financing receivables $ 18,729 $ 19,092 $ 18,457 $ 18,726 Debt $ 24,512 $ 25,024 $ 26,053 $ 26,630 Financing Receivables The fair value of financing receivables is based on the discounted values of their related cash flows at current market interest rates and they are classified as a Level 3 fair value measurement. Debt All debt is classified as a Level 2 fair value measurement with the exception of bonds issued by CNH Industrial Finance Europe S.A. and bonds issued by CNH Industrial N.V. that are classified as a Level 1 fair value measurement. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)The Company’s share of other comprehensive income (loss) includes net income plus other comprehensive income, which includes changes in fair value of certain derivatives designated as cash flow hedges, certain changes in pension and other retirement benefit plans, foreign currency translations gains and losses, changes in the fair value of available-for-sale securities, the Company’s share of other comprehensive income (loss) of entities accounted for using the equity method, and reclassifications for amounts included in net income (loss) less net income (loss) and other comprehensive income (loss) attributable to the noncontrolling interest. For more information on derivative instruments, see “Note 16: Financial Instruments”. For more information on pensions and retirement benefit obligations, see “Note 6: Employee Benefit Plans and Postretirement Benefits”. The Company’s other comprehensive income (loss) amounts are aggregated within accumulated other comprehensive income (loss). The tax effect for each component of other comprehensive income (loss) consisted of the following (in millions): Three Months Ended June 30, 2021 Gross Income Net Unrealized gain (loss) on cash flow hedges $ (50) $ (3) $ (53) Changes in retirement plans’ funded status (25) 8 (17) Foreign currency translation 106 — 106 Share of other comprehensive income (loss) of entities using the 2 — 2 Other comprehensive income $ 33 $ 5 $ 38 Six Months Ended June 30, 2021 Gross Income Net Unrealized gain (loss) on cash flow hedges $ (71) $ (2) $ (73) Changes in retirement plans’ funded status (49) 15 (34) Foreign currency translation 206 — 206 Share of other comprehensive income (loss) of entities using the (21) — (21) Other comprehensive income $ 65 $ 13 $ 78 Three Months Ended June 30, 2020 Gross Income Net Unrealized gain (loss) on cash flow hedges $ (9) $ 1 $ (8) Changes in retirement plans’ funded status (13) 6 (7) Foreign currency translation (49) — (49) Share of other comprehensive income (loss) of entities using the 5 — 5 Other comprehensive income (loss) $ (66) $ 7 $ (59) Six Months Ended June 30, 2020 Gross Income Net Unrealized gain (loss) on cash flow hedges $ 60 $ (3) $ 57 Changes in retirement plans’ funded status (42) 15 (27) Foreign currency translation (476) — (476) Share of other comprehensive income (loss) of entities using the (14) — (14) Other comprehensive income (loss) $ (472) $ 12 $ (460) The changes, net of tax, in each component of accumulated other comprehensive income (loss) consisted of the following (in millions): Unrealized Change in Foreign Currency Share of Other Total Balance, January 1, 2020 $ (54) $ (650) $ (1,145) $ (153) $ (2,002) Other comprehensive income (loss), before reclassifications 47 32 (474) (14) (409) Amounts reclassified from other comprehensive income 10 (59) — — (49) Other comprehensive income (loss)* 57 (27) (474) (14) (458) Balance, June 30, 2020 $ 3 $ (677) $ (1,619) $ (167) $ (2,460) Balance, January 1, 2021 $ (6) $ (653) $ (1,884) $ (133) $ (2,676) Other comprehensive income (loss), before reclassifications (59) 27 204 (21) 151 Amounts reclassified from other comprehensive income (14) (61) — — (75) Other comprehensive income (loss)* (73) (34) 204 (21) 76 Balance, June 30, 2021 $ (79) $ (687) $ (1,680) $ (154) $ (2,600) (*) Excluded from the table above is other comprehensive income (loss) allocated to noncontrolling interests of $2 million and $(2) million for the six months ended June 30, 2021 and 2020, respectively. Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three and six months ended June 30, 2021 and 2020 consisted of the following: Amounts Reclassified from Other Amount Reclassified from Other Consolidated Statement Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) (in millions) Cash flow hedges $ 1 $ — $ 3 $ 1 Net sales (2) 3 (27) 20 Cost of goods sold (1) 5 6 (10) Other, net 1 1 3 2 Interest expense — (2) 1 (3) Income taxes $ (1) $ 7 $ (14) $ 10 Change in retirement plans’ funded status: Amortization of actuarial losses $ 9 $ 10 $ 18 $ 21 * Amortization of prior service cost (33) (32) (65) $ (65) * (7) (8) (14) $ (15) Income taxes $ (31) $ (30) $ (61) $ (59) Total reclassifications, net of tax $ (32) $ (23) $ (75) $ (49) (*) These amounts are included in net periodic pension and other postretirement benefit cost. See “Note 6: Employee Benefit Plans and Postretirement Benefits” for additional information. |
RELATED PARTY INFORMATION
RELATED PARTY INFORMATION | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY INFORMATION | RELATED PARTY INFORMATIONAs of June 30, 2021 CNH Industrial’s related parties were primarily EXOR N.V. and the companies that EXOR N.V. controlled or had a significant influence over including Stellantis N.V. (formerly Fiat Chrysler Automobiles N.V. which, effective January 16, 2021, merged with Peugeot S.A. by means of a cross-border legal merger) and its subsidiaries and affiliates ("Stellantis"). As of June 30, 2021, EXOR N.V. held 42.5% of CNH Industrial’s voting power and had the ability to significantly influence the decisions submitted to a vote of CNH Industrial’s shareholders, including approval of annual dividends, the election and removal of directors, mergers or other business combinations, the acquisition or disposition of assets and issuances of equity and the incurrence of indebtedness. The percentage above has been calculated as the ratio of (i) the aggregate number of common shares and special voting shares owned by EXOR N.V. to (ii) the aggregate number of outstanding common shares and special voting shares of CNH Industrial as of June 30, 2021. In addition, CNH Industrial engages in transactions with its unconsolidated subsidiaries and affiliates over which CNH Industrial has a significant influence or jointly controls. The Company’s Audit Committee reviews and evaluates all significant related party transactions. Transactions with EXOR N.V. and its Subsidiaries and Affiliates EXOR N.V. is an investment holding company. As of June 30, 2021, and December 31, 2020, among other things, EXOR N.V. managed a portfolio that includes the investment in Stellantis. CNH Industrial did not enter into any significant transactions with EXOR N.V. during the three and six months ended June 30, 2021 and 2020. In connection with the establishment of Fiat Industrial (now CNH Industrial) through the demerger from Fiat (which was subsequently merged into Fiat Chrysler Automobiles N.V. which is now Stellantis), the two companies entered into a Master Services Agreement (“MSA”) which sets forth the primary terms and conditions pursuant to which the service provider subsidiaries of CNH Industrial and Stellantis provide services to the service receiving subsidiaries. As structured, the applicable service provider and service receiver subsidiaries become parties to the MSA through the execution of an Opt-in letter that may contain additional terms and conditions. Pursuant to the MSA, service receivers are required to pay to service providers the actual cost of the services plus a negotiated margin. During the three and six months ended June 30, 2021 and 2020, Stellantis subsidiaries provided CNH Industrial with administrative services such as accounting, maintenance of plant and equipment, security, information systems and training under the terms and conditions of the MSA and the applicable Opt-in letters. Additionally, CNH Industrial sold engines and light commercial vehicles to and purchased engine blocks and other components from Stellantis subsidiaries. Furthermore, CNH Industrial and Stellantis engage in other minor transactions in the ordinary course of business. These transactions with Stellantis are reflected in the Company’s condensed consolidated financial statements as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) (in millions) Net sales $ 158 $ 123 $ 362 $ 243 Cost of goods sold $ 38 $ 31 $ 126 $ 87 Selling, general and administrative expenses $ 33 $ 32 $ 64 $ 56 June 30, 2021 December 31, 2020 (in millions) Trade receivables $ 4 $ 8 Trade payables $ 90 $ 85 Transactions with Unconsolidated Subsidiaries and Affiliates CNH Industrial sells commercial vehicles, agricultural and construction equipment, and provides technical services to unconsolidated subsidiaries and affiliates such as IVECO-OTO MELARA Società Consortile a responsabilità limitata, CNH de Mexico SA de CV, Turk Traktor ve Ziraat Makineleri A.S. and New Holland HFT Japan Inc. CNH Industrial also purchases equipment from unconsolidated subsidiaries and affiliates, such as Turk Traktor ve Ziraat Makineleri A.S. These transactions primarily affected revenues, finance and interest income, cost of goods sold, trade receivables and payables and are presented as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) (in millions) Net sales $ 327 $ 264 $ 682 $ 428 Cost of goods sold $ 130 $ 63 $ 242 $ 155 June 30, 2021 December 31, 2020 (in millions) Trade receivables $ 107 $ 170 Trade payables $ 87 $ 98 At June 30, 2021 and December 31, 2020, CNH Industrial had provided guarantees on commitments of its joint ventures for an amount of $186 million and $259 million, respectively, mainly related to IVECO-OTO MELARA Società Consortile a responsabilità limitata. At June 30, 2021 and December 31, 2020, CNH Industrial had provided guarantees on commitments of its associated company for an amount of $293 million and $323 million, respectively, related to CNH Industrial Capital Europe S.a.S. |
NEW ACCOUNTING PRONOUNCEMENTS (
NEW ACCOUNTING PRONOUNCEMENTS (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | CNH Industrial N.V. (“CNH Industrial” or the “Company”) is incorporated in, and under the laws of, the Netherlands. CNH Industrial has its corporate seat in Amsterdam, the Netherlands, and its principal office in London, England, United Kingdom. The Company was formed on September 29, 2013 as a result of the business combination transaction between Fiat Industrial S.p.A. (“Fiat Industrial”) and its majority owned subsidiary CNH Global N.V. (“CNH Global”). Unless otherwise indicated or the context otherwise requires, the terms “CNH Industrial” and the “Company” refer to CNH Industrial and its subsidiaries. The condensed consolidated financial statements of CNH Industrial N.V. and its consolidated subsidiaries have been voluntarily prepared by the Company without audit. Although prepared on a voluntary basis, the condensed consolidated financial statements included in the report comply in all material respects with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) governing interim financial statements. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted as permitted by such rules and regulations. All adjustments, consisting only of normal recurring adjustments, have been included. Management believes that the disclosures are adequate to present fairly the financial position, results of operations, and cash flows at the dates and for the periods presented. These interim financial statements should be read in conjunction with the financial statements and the notes thereto appearing in the Company’s annual report on Form 20-F for the year ended December 31, 2020. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and related accompanying notes and disclosures. The COVID-19 pandemic has resulted in uncertainties in the Company's business, which may cause actual results to differ materially from the estimates and assumptions used in preparation of the financial statements including, but not limited to, future cash flows associated with goodwill, indefinite life intangibles, definite life intangibles, long-lived impairment tests, determination of discount rates and other assumptions for pension and other post-retirement benefit expense and income taxes. Changes in estimates are recorded in results of operations in the period during which the events or circumstances giving rise to such changes occur. Certain financial information in this report has been presented by geographic area. Our geographical regions are : (1) North America; (2) Europe; (3) South America and (4) Rest of World. The geographic designations have the following meanings: • North America : United States, Canada and Mexico; • Europe : member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine, and Balkans; • South America : Central and South America, and the Caribbean Islands; and • Rest of World |
New Accounting Policies Adopted and Not Yet Adopted | Adopted in 2021 Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This ASU eliminates certain exceptions to the general principles in ASC 740, Income Taxes. Specifically, it eliminates the exception to (1) the incremental approach for intraperiod tax allocation when there is a loss from continuing operations, and income or a gain from other items; (2) the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; (3) the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and (4) the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The Company adopted ASU 2019-12 on January 1, 2021. The adoption did not have a material impact on our consolidated financial statements. Not Yet Adopted Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). ASU 2020-04 provides temporary optional expedients and exceptions for applying |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue by Segment and Source | The following table summarizes revenues for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, 2021 2020 (in millions) Agriculture $ 3,970 $ 2,541 Construction 808 420 Commercial and Specialty Vehicles 3,220 1,739 Powertrain 1,287 763 Eliminations and Other (795) (313) Total Industrial Activities $ 8,490 $ 5,150 Financial Services 439 441 Eliminations and Other (18) (13) Total Revenues $ 8,911 $ 5,578 Six Months Ended June 30, 2021 2020 (in millions) Agriculture $ 7,008 $ 4,785 Construction 1,464 842 Commercial and Specialty Vehicles 6,025 3,760 Powertrain 2,521 1,516 Eliminations and Other (1,485) (760) Total Industrial Activities $ 15,533 $ 10,143 Financial Services 887 930 Eliminations and Other (36) (34) Total Revenues $ 16,384 $ 11,039 The following table disaggregates revenues by major source for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, 2021 2020 (in millions) Revenues from: Sales of goods $ 8,245 $ 4,946 Rendering of services and other revenues 164 126 Rents on assets sold with a buy-back commitment 81 78 Revenues from sales of goods and services 8,490 5,150 Finance and interest income 236 254 Rents and other income on operating lease 185 174 Finance, interest and other income 421 428 Total Revenues $ 8,911 $ 5,578 Six Months Ended June 30, 2021 2020 (in millions) Revenues from: Sales of goods $ 15,038 $ 9,701 Rendering of services and other revenues 333 282 Rents on assets sold with a buy-back commitment 162 160 Revenues from sales of goods and services 15,533 10,143 Finance and interest income 478 527 Rents and other income on operating lease 373 369 Finance, interest and other income 851 896 Total Revenues $ 16,384 $ 11,039 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Assets and Liabilities of Consolidated VIEs | The following table presents certain assets and liabilities of consolidated VIEs, which are included in the condensed consolidated balance sheets included in this report. The assets in the table below include only those assets that can be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third party liabilities of the consolidated VIEs for which creditors do not have recourse to the general credit of the Company. June 30, 2021 December 31, 2020 (in millions) Restricted cash $ 602 $ 703 Financing receivables 8,554 8,974 Total Assets $ 9,156 $ 9,677 Debt $ 8,467 $ 8,835 Total Liabilities $ 8,467 $ 8,835 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Earnings Per Share | A reconciliation of basic and diluted earnings per share is as follows (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Basic: Net income attributable to CNH Industrial $ 690 $ 350 $ 1,098 $ 285 Weighted average common shares outstanding—basic 1,354 1,350 1,354 1,350 Basic earnings (loss) per share $ 0.51 $ 0.26 $ 0.81 $ 0.21 Diluted: Net income attributable to CNH Industrial $ 690 $ 350 $ 1,098 $ 285 Weighted average common shares outstanding—basic 1,354 1,350 1,354 1,350 Effect of dilutive securities (when dilutive): Stock compensation plans (1) 7 2 6 2 Weighted average common shares outstanding—diluted 1,361 1,352 1,360 1,352 Diluted earnings (loss) per share $ 0.51 $ 0.26 $ 0.81 $ 0.21 (1) For the three and six months ended June 30, 2021, 437 thousand and 232 thousand shares were excluded from the computation of diluted earnings per share due to an anti-dilutive impact. For the three and six months ended June 30, 2020, no shares were excluded from the computation of diluted earnings per share due to an anti-dilutive impact. |
EMPLOYEE BENEFIT PLANS AND PO_2
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Postemployment Benefits [Abstract] | |
Summary of Net Periodic Benefit Cost | The following table summarizes the components of net periodic benefit cost of CNH Industrial’s defined benefit pension plans and postretirement health and life insurance plans for the three and six months ended June 30, 2021 and 2020: Pension Healthcare Other Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, 2021 2020 2021 2020 2021 2020 (in millions) Service cost $ 6 $ 6 $ 1 $ 1 $ 5 $ 4 Interest cost 6 12 2 2 — 1 Expected return on assets (17) (22) (2) (1) — — Amortization of: Prior service credit — — (33) (32) — — Actuarial loss 8 10 1 — — — Net periodic benefit cost $ 3 $ 6 $ (31) $ (30) $ 5 $ 5 Pension Healthcare Other Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 2021 2020 (in millions) Service cost $ 11 $ 11 $ 2 $ 2 $ 10 $ 8 Interest cost 11 23 3 5 — 1 Expected return on assets (33) (42) (4) (3) — — Amortization of: Prior service credit — — (65) (65) — — Actuarial loss 16 20 2 1 — — Net periodic benefit cost $ 5 $ 12 $ (62) $ (60) $ 10 $ 9 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Segment | The following table includes the reconciliation of Adjusted EBIT for Industrial Activities to net income, the most comparable U.S. GAAP financial measure, for the three and six months ended June 30, 2021 and 2020. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) (in millions) Agriculture $ 582 $ 203 $ 981 $ 227 Construction 24 (87) 49 (170) Commercial and Specialty Vehicles 100 (156) 176 (212) Powertrain 74 32 189 63 Unallocated items, eliminations and other (81) (50) (151) (114) Total Adjusted EBIT of Industrial Activities $ 699 $ (58) $ 1,244 $ (206) Financial Services Net Income 99 53 190 133 Financial Services Income Taxes 30 20 63 50 Interest expense of Industrial Activities, net of interest income and eliminations (59) (59) (125) (118) Foreign exchange gains (losses), net of Industrial Activities (4) (7) (22) (5) Finance and non-service component of Pension and other post-employment benefit cost of Industrial Activities (1) 36 26 70 56 Restructuring expense of Industrial Activities (8) (7) (10) (12) Goodwill impairment charge — (585) — (585) Other discrete items of Industrial Activities (13) (537) (13) (544) Nikola investment fair value adjustment 107 1,475 72 1,475 Income (loss) before taxes $ 887 $ 321 $ 1,469 $ 244 Income tax (expense) benefit (188) 40 (345) 63 Net income (loss) $ 699 $ 361 $ 1,124 $ 307 |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Summary of Financing Receivables | A summary of financing receivables as of June 30, 2021 and December 31, 2020 is as follows: June 30, 2021 December 31, 2020 (in millions) Retail $ 9,323 $ 9,257 Wholesale 9,323 9,127 Other 83 73 Total $ 18,729 $ 18,457 |
Summary of Aging of Financing Receivables | The aging of financing receivables as of June 30, 2021 and December 31, 2020 is as follows (in millions): June 30, 2021 31-60 Days 61-90 Days Total Past Current Total Non- Total Retail North America 2021 $ 1,502 $ — $ 1,502 2020 2,186 1 2,187 2019 1,193 1 1,194 2018 748 1 749 2017 368 1 369 Prior to 2017 178 1 179 Total $ 13 $ — $ 13 $ 6,162 $ 6,175 $ 5 $ 6,180 South America 2021 $ 417 $ — $ 417 2020 662 1 663 2019 380 1 381 2018 242 1 243 2017 130 — 130 Prior to 2017 89 1 90 Total $ 22 $ — $ 22 $ 1,898 $ 1,920 $ 4 $ 1,924 Rest of World 2021 $ 284 $ — $ 284 2020 429 2 431 2019 204 2 206 2018 134 — 134 2017 68 — 68 Prior to 2017 10 — 10 Total $ 10 $ 9 $ 19 $ 1,110 $ 1,129 $ 4 $ 1,133 Europe $ — $ — $ — $ 86 $ 86 $ — $ 86 Total Retail $ 45 $ 9 $ 54 $ 9,256 $ 9,310 $ 13 $ 9,323 Wholesale North America $ — $ — $ — $ 2,728 $ 2,728 $ 18 $ 2,746 South America — — — 603 603 33 636 Rest of World 3 2 5 674 679 1 680 Europe — — — 5,261 5,261 — 5,261 Total Wholesale $ 3 $ 2 $ 5 $ 9,266 $ 9,271 $ 52 $ 9,323 December 31, 2020 31-60 Days 61-90 Days Total Past Current Total Non- Total Retail North America 2020 $ 2,619 $ — $ 2,619 2019 1,571 1 1,572 2018 1,033 1 1,034 2017 543 1 544 2016 262 1 263 Prior to 2016 81 — 81 Total $ 29 $ — $ 29 $ 6,080 $ 6,109 $ 4 $ 6,113 South America 2020 $ 792 $ 1 $ 793 2019 448 3 451 2018 299 4 303 2017 173 2 175 2016 86 1 87 Prior to 2016 71 1 72 Total $ 4 $ 1 $ 5 $ 1,864 $ 1,869 $ 12 $ 1,881 Rest of World 2020 $ 544 $ — $ 544 2019 270 1 271 2018 195 1 196 2017 117 1 118 2016 39 — 39 Prior to 2016 2 — 2 Total $ 7 $ 4 $ 11 $ 1,156 $ 1,167 $ 3 $ 1,170 Europe $ — $ — $ — $ 93 $ 93 $ — $ 93 Total Retail $ 40 $ 5 $ 45 $ 9,193 $ 9,238 $ 19 $ 9,257 Wholesale North America $ — $ — $ — $ 2,722 $ 2,722 $ 31 $ 2,753 South America — — — 537 537 42 579 Rest of World 3 — 3 542 545 — 545 Europe — — — 5,250 5,250 — 5,250 Total Wholesale $ 3 $ — $ 3 $ 9,051 $ 9,054 $ 73 $ 9,127 |
Summary of Allowance for Credit Loss Activity | Allowance for credit losses activity for the three and six months ended June 30, 2021 is as follows (in millions): Three Months Ended June 30, 2021 Retail Wholesale Opening Balance $ 359 $ 177 Provision (1) 1 Charge-offs, net of recoveries (11) (2) Foreign currency translation and other 10 6 Ending Balance $ 357 $ 182 Six Months Ended June 30, 2021 Retail Wholesale Opening Balance $ 381 $ 174 Provision 5 7 Charge-offs, net of recoveries (19) (3) Foreign currency translation and other (10) 4 Ending Balance $ 357 $ 182 Allowance for credit losses activity for the three and six months ended June 30, 2020 and for the year ended December 31, 2020 is as follows (in millions): Three Months Ended June 30, 2020 Retail Wholesale Opening Balance $ 314 $ 144 Provision 34 15 Charge-offs, net of recoveries (24) (1) Foreign currency translation and other 2 1 Ending Balance $ 326 $ 159 Six Months Ended June 30, 2020 Retail Wholesale Opening Balance, as previously reported $ 299 $ 159 Adoption of ASC 326 35 (9) Opening Balance, as recast 334 150 Provision 54 17 Charge-offs, net of recoveries (44) (1) Foreign currency translation and other (18) (7) Ending Balance $ 326 $ 159 Twelve Months Ended December 31, 2020 Retail Wholesale Opening Balance, as previously reported $ 299 $ 159 Adoption of ASC 326 35 (9) Opening Balance, as recast 334 150 Provision 113 27 Charge-offs, net of recoveries (56) (14) Foreign currency translation and other (10) 11 Ending Balance $ 381 $ 174 |
Summary of Carrying Amount of Restricted Assets | At June 30, 2021 and December 31, 2020, the carrying amount of such restricted assets included in financing receivables above are the following (in millions): Restricted Receivables June 30, 2021 December 31, 2020 Retail note and finance lease receivables $ 5,662 $ 6,224 Wholesale receivables 6,613 7,011 Total $ 12,275 $ 13,235 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories as of June 30, 2021 and December 31, 2020 consist of the following: June 30, 2021 December 31, 2020 (in millions) Raw materials $ 1,982 $ 1,525 Work-in-process 1,329 622 Finished goods 4,160 3,875 Total inventories $ 7,471 $ 6,022 |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Investments in Unconsolidated Subsidiaries and Affiliates | A summary of investments in unconsolidated subsidiaries and affiliates as of June 30, 2021 and December 31, 2020 is as follows: June 30, 2021 December 31, 2020 (in millions) Equity method $ 474 $ 514 Cost method 30 15 Total $ 504 $ 529 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the six months ended June 30, 2021 are as follows: Agriculture Commercial and Specialty Powertrain Financial Total (in millions) Balance at January 1, 2021 $ 1,695 $ 65 $ 7 $ 157 $ 1,924 Foreign currency translation and other 3 (2) — — 1 Balance at June 30, 2021 $ 1,698 $ 63 $ 7 $ 157 $ 1,925 |
Summary of Other Intangible Assets | As of June 30, 2021 and December 31, 2020, the Company’s other intangible assets and related accumulated amortization consisted of the following: June 30, 2021 December 31, 2020 Weighted Gross Accumulated Net Gross Accumulated Net (in millions) Other intangible assets subject to Dealer networks 15 $ 306 $ 244 $ 62 $ 311 $ 241 $ 70 Patents, concessions, licenses and other 5-25 2,125 1,697 428 2,107 1,678 429 2,431 1,941 490 2,418 1,919 499 Other intangible assets not subject to Trademarks 273 — 273 273 — 273 Total Other intangible assets $ 2,704 $ 1,941 $ 763 $ 2,691 $ 1,919 $ 772 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Liabilities | A summary of Other liabilities as of June 30, 2021 and December 31, 2020 is as follows: June 30, 2021 December 31, 2020 (in millions) Advances on buy-back agreements $ 1,183 $ 1,355 Warranty and campaign programs 1,026 995 Marketing and sales incentive programs 1,480 1,324 Tax payables 813 654 Accrued expenses and deferred income 687 672 Accrued employee benefits 812 681 Lease liabilities 431 453 Legal reserves and other provisions 342 332 Contract reserve 407 389 Contract liabilities (1) 1,392 1,381 Restructuring reserve 64 76 Other 1,088 1,100 Total $ 9,725 $ 9,412 (1) Contract liabilities include $722 million and $740 million at June 30, 2021 and December 31, 2020, respectively, for future rents related to buy-back agreements. |
Summary of Basic Warranty and Accruals for Campaign Programs | A summary of recorded activity for the three and six months ended June 30, 2021 and 2020 for the basic warranty and accruals for campaign programs are as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) (in millions) Balance at beginning of period $ 997 $ 887 $ 995 $ 919 Current year additions 212 157 414 342 Claims paid (188) (152) (352) (322) Currency translation adjustment and other 5 11 (31) (36) Balance at end of period $ 1,026 $ 903 $ 1,026 $ 903 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Gross Impact of Changes in Fair Value of Derivatives Designated as Cash Flow Hedges on AOCI and Net Income | The following table summarizes the gross impact of changes in the fair value of derivatives designated as cash flow hedges recognized in accumulated other comprehensive income (loss) and net income (loss) during the three and six months ended June 30, 2021 and 2020 (in millions): Recognized in Net Income For the Three Months Ended June 30, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2021 Foreign exchange contracts $ (55) Net sales (1) Cost of goods sold 2 Other, Net 1 Interest rate contracts 5 Interest expense (1) Total $ (50) $ 1 2020 Foreign exchange contracts $ (15) Net sales — Cost of goods sold (3) Other, Net (5) Interest rate contracts (4) Interest expense (1) Total $ (19) $ (9) Recognized in Net Income For the Six Months Ended June 30, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2021 Foreign exchange contracts $ (81) Net sales (3) Cost of goods sold 27 Other, Net (6) Interest rate contracts 25 Interest expense (3) Total $ (56) $ 15 2020 Foreign exchange contracts $ 66 Net sales (1) Cost of goods sold (20) Other, Net 10 Interest rate contracts (19) Interest expense (2) Total $ 47 $ (13) Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three and six months ended June 30, 2021 and 2020 consisted of the following: Amounts Reclassified from Other Amount Reclassified from Other Consolidated Statement Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) (in millions) Cash flow hedges $ 1 $ — $ 3 $ 1 Net sales (2) 3 (27) 20 Cost of goods sold (1) 5 6 (10) Other, net 1 1 3 2 Interest expense — (2) 1 (3) Income taxes $ (1) $ 7 $ (14) $ 10 Change in retirement plans’ funded status: Amortization of actuarial losses $ 9 $ 10 $ 18 $ 21 * Amortization of prior service cost (33) (32) (65) $ (65) * (7) (8) (14) $ (15) Income taxes $ (31) $ (30) $ (61) $ (59) Total reclassifications, net of tax $ (32) $ (23) $ (75) $ (49) (*) These amounts are included in net periodic pension and other postretirement benefit cost. See “Note 6: Employee Benefit Plans and Postretirement Benefits” for additional information. |
Summary of Impact of Changes in Fair Value of Fair Value Hedges and Derivatives Not Designated as Hedging Instruments on Earnings | The following table summarizes the activity in accumulated other comprehensive income related to the derivatives held by the Company during the six months ended June 30, 2021 and 2020: In Millions Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2020 $ (5) $ (1) $ (6) Net changes in fair value of derivatives (56) (3) (59) Net losses reclassified from accumulated other comprehensive income into income (15) 1 (14) Accumulated derivative net losses as of June 30, 2021 $ (76) $ (3) $ (79) In Millions Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2019 $ (62) $ 8 $ (54) Net changes in fair value of derivatives 47 — 47 Net losses reclassified from accumulated other comprehensive income into income 13 (3) 10 Accumulated derivative net losses as of June 30, 2020 $ (2) $ 5 $ 3 The following tables summarize the impact that changes in the fair value of fair value hedges and derivatives not designated as hedging instruments had on earnings (in millions): For the Three Months Ended June 30, Classification of Gain 2021 2020 Fair Value Hedges Interest rate derivatives Interest expense $ (2) $ 3 Not Designated as Hedges Foreign exchange contracts Other, Net $ (58) $ 13 For the Six Months Ended June 30, Classification of Gain 2021 2020 Fair Value Hedges Interest rate derivatives Interest expense $ (23) $ 42 Not Designated as Hedges Foreign exchange contracts Other, Net $ (76) $ 154 |
Summary of Fair Value of Derivatives | The fair values of CNH Industrial’s derivatives as of June 30, 2021 and December 31, 2020 in the condensed consolidated balance sheets are recorded as follows: June 30, 2021 December 31, 2020 in millions of dollars Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments under Subtopic 815-20 Interest rate contracts Derivative assets 60 Derivative assets 77 Foreign currency contracts Derivative assets 32 Derivative assets 67 Total derivative assets designated as hedging instruments 92 144 Interest rate contracts Derivative liabilities 28 Derivative liabilities 46 Foreign currency contracts Derivative liabilities 118 Derivative liabilities 62 Total derivative liabilities designated as hedging instruments 146 108 Derivatives not designated as hedging instruments under Subtopic 815-20 Interest rate contracts Derivative assets 8 Derivative assets — Foreign currency contracts Derivative assets 34 Derivative assets 16 Total derivative assets not designated as hedging instruments 42 16 Interest rate contracts Derivative liabilities 9 Derivative liabilities — Foreign currency contracts Derivative liabilities 16 Derivative liabilities 31 Total derivative liabilities not designated as hedging instruments 25 31 |
Summary of Investments Measured on Recurring Basis | The following tables present for each of the fair-value hierarchy levels the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 2021 and December 31, 2020: Level 1 Level 2 Total June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 (in millions) Assets Foreign exchange derivatives $ — $ — $ 66 $ 83 $ 66 $ 83 Interest rate derivatives — — 68 77 68 77 Other — — 2 — 2 — Investments at fair value through profit & loss 464 392 — — 464 392 Total Assets $ 464 $ 392 $ 136 $ 160 $ 600 $ 552 Liabilities Foreign exchange derivatives $ — $ — $ 134 $ 93 $ 134 $ 93 Interest rate derivatives — — 37 46 37 46 Total Liabilities $ — $ — $ 171 $ 139 $ 171 $ 139 |
Summary of Investments Measured on Nonrecurring Basis | The following tables present the fair value for nonrecurring Level 3 measurements from impairments as of June 30, 2021 and 2020: Fair Value Losses 2021 2020 2021 2020 (in millions) Property, plant and equipment $ — $ 107 $ — $ 163 Other intangible assets $ — $ — $ — $ 92 |
Summary of Estimated Fair Market Values | The estimated fair market values of financial instruments not carried at fair value in the condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020 are as follows: June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair (in millions) Financing receivables $ 18,729 $ 19,092 $ 18,457 $ 18,726 Debt $ 24,512 $ 25,024 $ 26,053 $ 26,630 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Summary of Tax Effects on Components of Other Comprehensive Income (Loss) | The tax effect for each component of other comprehensive income (loss) consisted of the following (in millions): Three Months Ended June 30, 2021 Gross Income Net Unrealized gain (loss) on cash flow hedges $ (50) $ (3) $ (53) Changes in retirement plans’ funded status (25) 8 (17) Foreign currency translation 106 — 106 Share of other comprehensive income (loss) of entities using the 2 — 2 Other comprehensive income $ 33 $ 5 $ 38 Six Months Ended June 30, 2021 Gross Income Net Unrealized gain (loss) on cash flow hedges $ (71) $ (2) $ (73) Changes in retirement plans’ funded status (49) 15 (34) Foreign currency translation 206 — 206 Share of other comprehensive income (loss) of entities using the (21) — (21) Other comprehensive income $ 65 $ 13 $ 78 Three Months Ended June 30, 2020 Gross Income Net Unrealized gain (loss) on cash flow hedges $ (9) $ 1 $ (8) Changes in retirement plans’ funded status (13) 6 (7) Foreign currency translation (49) — (49) Share of other comprehensive income (loss) of entities using the 5 — 5 Other comprehensive income (loss) $ (66) $ 7 $ (59) Six Months Ended June 30, 2020 Gross Income Net Unrealized gain (loss) on cash flow hedges $ 60 $ (3) $ 57 Changes in retirement plans’ funded status (42) 15 (27) Foreign currency translation (476) — (476) Share of other comprehensive income (loss) of entities using the (14) — (14) Other comprehensive income (loss) $ (472) $ 12 $ (460) |
Summary of Changes in Other Comprehensive Income (Loss) | The changes, net of tax, in each component of accumulated other comprehensive income (loss) consisted of the following (in millions): Unrealized Change in Foreign Currency Share of Other Total Balance, January 1, 2020 $ (54) $ (650) $ (1,145) $ (153) $ (2,002) Other comprehensive income (loss), before reclassifications 47 32 (474) (14) (409) Amounts reclassified from other comprehensive income 10 (59) — — (49) Other comprehensive income (loss)* 57 (27) (474) (14) (458) Balance, June 30, 2020 $ 3 $ (677) $ (1,619) $ (167) $ (2,460) Balance, January 1, 2021 $ (6) $ (653) $ (1,884) $ (133) $ (2,676) Other comprehensive income (loss), before reclassifications (59) 27 204 (21) 151 Amounts reclassified from other comprehensive income (14) (61) — — (75) Other comprehensive income (loss)* (73) (34) 204 (21) 76 Balance, June 30, 2021 $ (79) $ (687) $ (1,680) $ (154) $ (2,600) (*) Excluded from the table above is other comprehensive income (loss) allocated to noncontrolling interests of $2 million and $(2) million for the six months ended June 30, 2021 and 2020, respectively. |
Summary of Reclassification of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the gross impact of changes in the fair value of derivatives designated as cash flow hedges recognized in accumulated other comprehensive income (loss) and net income (loss) during the three and six months ended June 30, 2021 and 2020 (in millions): Recognized in Net Income For the Three Months Ended June 30, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2021 Foreign exchange contracts $ (55) Net sales (1) Cost of goods sold 2 Other, Net 1 Interest rate contracts 5 Interest expense (1) Total $ (50) $ 1 2020 Foreign exchange contracts $ (15) Net sales — Cost of goods sold (3) Other, Net (5) Interest rate contracts (4) Interest expense (1) Total $ (19) $ (9) Recognized in Net Income For the Six Months Ended June 30, Gain (Loss) Recognized in Accumulated Other Comprehensive Income Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income 2021 Foreign exchange contracts $ (81) Net sales (3) Cost of goods sold 27 Other, Net (6) Interest rate contracts 25 Interest expense (3) Total $ (56) $ 15 2020 Foreign exchange contracts $ 66 Net sales (1) Cost of goods sold (20) Other, Net 10 Interest rate contracts (19) Interest expense (2) Total $ 47 $ (13) Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three and six months ended June 30, 2021 and 2020 consisted of the following: Amounts Reclassified from Other Amount Reclassified from Other Consolidated Statement Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) (in millions) Cash flow hedges $ 1 $ — $ 3 $ 1 Net sales (2) 3 (27) 20 Cost of goods sold (1) 5 6 (10) Other, net 1 1 3 2 Interest expense — (2) 1 (3) Income taxes $ (1) $ 7 $ (14) $ 10 Change in retirement plans’ funded status: Amortization of actuarial losses $ 9 $ 10 $ 18 $ 21 * Amortization of prior service cost (33) (32) (65) $ (65) * (7) (8) (14) $ (15) Income taxes $ (31) $ (30) $ (61) $ (59) Total reclassifications, net of tax $ (32) $ (23) $ (75) $ (49) (*) These amounts are included in net periodic pension and other postretirement benefit cost. See “Note 6: Employee Benefit Plans and Postretirement Benefits” for additional information. |
RELATED PARTY INFORMATION (Tabl
RELATED PARTY INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Transactions | These transactions with Stellantis are reflected in the Company’s condensed consolidated financial statements as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) (in millions) Net sales $ 158 $ 123 $ 362 $ 243 Cost of goods sold $ 38 $ 31 $ 126 $ 87 Selling, general and administrative expenses $ 33 $ 32 $ 64 $ 56 June 30, 2021 December 31, 2020 (in millions) Trade receivables $ 4 $ 8 Trade payables $ 90 $ 85 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in millions) (in millions) Net sales $ 327 $ 264 $ 682 $ 428 Cost of goods sold $ 130 $ 63 $ 242 $ 155 June 30, 2021 December 31, 2020 (in millions) Trade receivables $ 107 $ 170 Trade payables $ 87 $ 98 |
REVENUE - Summary of Net Revenu
REVENUE - Summary of Net Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | $ 8,490 | $ 5,150 | $ 15,533 | $ 10,143 |
Total Revenues | 8,911 | 5,578 | 16,384 | 11,039 |
Industrial Activities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 8,490 | 5,150 | 15,533 | 10,143 |
Industrial Activities | Operating segments | Agriculture | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 3,970 | 2,541 | 7,008 | 4,785 |
Industrial Activities | Operating segments | Construction | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 808 | 420 | 1,464 | 842 |
Industrial Activities | Operating segments | Commercial and Specialty Vehicles | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 3,220 | 1,739 | 6,025 | 3,760 |
Industrial Activities | Operating segments | Powertrain | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 1,287 | 763 | 2,521 | 1,516 |
Industrial Activities | Eliminations and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | (795) | (313) | (1,485) | (760) |
Financial Services | Operating segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 439 | 441 | 887 | 930 |
Financial Services | Eliminations and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ (18) | $ (13) | $ (36) | $ (34) |
REVENUE - Disaggregation of Net
REVENUE - Disaggregation of Net Revenues by Major Source (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | $ 8,490 | $ 5,150 | $ 15,533 | $ 10,143 |
Finance and interest income | 236 | 254 | 478 | 527 |
Rents and other income on operating lease | 185 | 174 | 373 | 369 |
Finance, interest and other income | 421 | 428 | 851 | 896 |
Total Revenues | 8,911 | 5,578 | 16,384 | 11,039 |
Sales of goods | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 8,245 | 4,946 | 15,038 | 9,701 |
Rendering of services and other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 164 | 126 | 333 | 282 |
Rents on assets sold with a buy-back commitment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | $ 81 | $ 78 | $ 162 | $ 160 |
REVENUE - Additional Informatio
REVENUE - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||||
Contract liabilities | $ 1,392 | $ 1,392 | $ 1,381 | ||
Revenues relating to contract liabilities outstanding | 123 | $ 112 | 274 | $ 257 | |
Transaction price allocated to remaining performance obligations | $ 2,500 | $ 2,500 | $ 2,200 |
REVENUE - Performance Obligatio
REVENUE - Performance Obligation (Details) | Jun. 30, 2021 | Dec. 31, 2020 |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of revenue recognized on remaining performance obligation | 32.00% | |
Revenue over the remaining lives of the contracts | 12 months | |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of revenue recognized on remaining performance obligation | 29.00% | |
Revenue over the remaining lives of the contracts | 12 months | |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of revenue recognized on remaining performance obligation | 77.00% | |
Revenue over the remaining lives of the contracts | 36 months | |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of revenue recognized on remaining performance obligation | 71.00% | |
Revenue over the remaining lives of the contracts | 36 months |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Restricted cash | $ 764 | $ 844 |
Financing receivables, net | 18,729 | 18,457 |
Total Assets | 49,222 | 48,719 |
Debt | 24,512 | 26,053 |
Total Liabilities | 43,148 | 43,690 |
Variable interest entities | ||
Variable Interest Entity [Line Items] | ||
Restricted cash | 602 | 703 |
Financing receivables, net | 8,554 | 8,974 |
Total Assets | 9,156 | 9,677 |
Debt | 8,467 | 8,835 |
Total Liabilities | $ 8,467 | $ 8,835 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Basic: | ||||
Net income attributable to CNH Industrial | $ 690 | $ 350 | $ 1,098 | $ 285 |
Weighted average common shares outstanding—basic (in shares) | 1,354,000,000 | 1,350,000,000 | 1,354,000,000 | 1,350,000,000 |
Basic earnings (loss) per share (in usd per share) | $ 0.51 | $ 0.26 | $ 0.81 | $ 0.21 |
Diluted: | ||||
Net income attributable to CNH Industrial | $ 690 | $ 350 | $ 1,098 | $ 285 |
Weighted average common shares outstanding—basic (in shares) | 1,354,000,000 | 1,350,000,000 | 1,354,000,000 | 1,350,000,000 |
Effect of dilutive securities (when dilutive): | ||||
Stock compensation plans (in shares) | 7,000,000 | 2,000,000 | 6,000,000 | 2,000,000 |
Weighted average common shares outstanding—diluted (in shares) | 1,361,000,000 | 1,352,000,000 | 1,360,000,000 | 1,352,000,000 |
Diluted earnings (loss) per share (in usd per share) | $ 0.51 | $ 0.26 | $ 0.81 | $ 0.21 |
Antidilutive securities excluded from EPS computation (in shares) | 437,000 | 0 | 232,000 | 0 |
EMPLOYEE BENEFIT PLANS AND PO_3
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Pension | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 6 | $ 6 | $ 11 | $ 11 |
Interest cost | 6 | 12 | 11 | 23 |
Expected return on assets | (17) | (22) | (33) | (42) |
Amortization of: | ||||
Prior service credit | 0 | 0 | 0 | 0 |
Actuarial loss | 8 | 10 | 16 | 20 |
Net periodic benefit cost | 3 | 6 | 5 | 12 |
Healthcare | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 1 | 1 | 2 | 2 |
Interest cost | 2 | 2 | 3 | 5 |
Expected return on assets | (2) | (1) | (4) | (3) |
Amortization of: | ||||
Prior service credit | (33) | (32) | (65) | (65) |
Actuarial loss | 1 | 0 | 2 | 1 |
Net periodic benefit cost | (31) | (30) | (62) | (60) |
Other | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 5 | 4 | 10 | 8 |
Interest cost | 0 | 1 | 0 | 1 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of: | ||||
Prior service credit | 0 | 0 | 0 | 0 |
Actuarial loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 5 | $ 5 | $ 10 | $ 9 |
EMPLOYEE BENEFIT PLANS AND PO_4
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS - Additional Information (Details) - USD ($) $ in Millions | Apr. 16, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Postemployment Benefits [Abstract] | |||||
Reduction of plan liability | $ 527 | ||||
Amortization period of retirement benefits payable | 4 years 6 months | ||||
Benefits modification amortization | $ 30 | $ 30 | $ 60 | $ 60 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 21.90% | (12.90%) | 24.40% | (26.90%) |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of segments (in segments) | 5 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Adjusted EBIT to Net Income for Industrial Activities (Details) - USD ($) $ in Millions | Apr. 16, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Segment Reporting Information [Line Items] | |||||
Net income | $ 699 | $ 361 | $ 1,124 | $ 307 | |
Income tax (expense) benefit | (188) | 40 | (345) | 63 | |
Restructuring expense of Industrial Activities | (8) | (7) | (10) | (12) | |
Goodwill impairment charge | 0 | (585) | 0 | (585) | |
Pre-tax gain from amortization of benefits modification | 30 | 30 | $ 60 | 60 | |
Amortization period of retirement benefits payable | 4 years 6 months | ||||
Reduction of plan liability | $ 527 | ||||
Unallocated items, eliminations and other | |||||
Segment Reporting Information [Line Items] | |||||
Total Adjusted EBIT of Industrial Activities | (81) | (50) | $ (151) | (114) | |
Industrial Activities | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Total Adjusted EBIT of Industrial Activities | 699 | (58) | 1,244 | (206) | |
Net income | 887 | 321 | 1,469 | 244 | |
Interest expense of Industrial Activities, net of interest income and eliminations | (59) | (59) | (125) | (118) | |
Foreign exchange gains (losses), net of Industrial Activities | (4) | (7) | (22) | (5) | |
Finance and non-service component of Pension and other post-employment benefit cost of Industrial Activities | 36 | 26 | 70 | 56 | |
Restructuring expense of Industrial Activities | (8) | (7) | (10) | (12) | |
Goodwill impairment charge | 0 | (585) | 0 | (585) | |
Other discrete items of Industrial Activities | (13) | (537) | (13) | (544) | |
Nikola investment fair value adjustment | 107 | 1,475 | $ 72 | 1,475 | |
Amortization period of retirement benefits payable | 4 years 6 months | ||||
Reduction of plan liability | 527 | 527 | $ 527 | 527 | |
Agriculture | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Total Adjusted EBIT of Industrial Activities | 582 | 203 | 981 | 227 | |
Construction | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Total Adjusted EBIT of Industrial Activities | 24 | (87) | 49 | (170) | |
Commercial and Specialty Vehicles | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Total Adjusted EBIT of Industrial Activities | 100 | (156) | 176 | (212) | |
Powertrain | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Total Adjusted EBIT of Industrial Activities | 74 | 32 | 189 | 63 | |
Financial Services | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Net income | 99 | 53 | 190 | 133 | |
Income tax (expense) benefit | $ (30) | $ (20) | $ (63) | $ (50) |
RECEIVABLES - Summary of Financ
RECEIVABLES - Summary of Financing Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | $ 18,729 | $ 18,457 |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | 9,323 | 9,257 |
Wholesale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | 9,323 | 9,127 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | $ 83 | $ 73 |
RECEIVABLES - Additional Inform
RECEIVABLES - Additional Information (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2021USD ($)contractaccount | Jun. 30, 2020USD ($)contract | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Contractual payments period | 30 days | |
Receivables delinquency period | 90 days | |
North America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance lease, contracts (in contracts) | contract | 204 | 275 |
Pre-modification value of retail and finance lease receivable contracts | $ 6 | $ 9 |
Post-modification value of retail and finance lease receivable contracts | $ 5 | $ 8 |
Number of accounts receivable undergoing bankruptcy proceedings (in contracts) | 339 | 330 |
Amount of accounts receivable undergoing bankruptcy proceedings | $ 22 | $ 21 |
Europe | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Pre-modification value of retail and finance lease receivable contracts | 86 | 78 |
Post-modification value of retail and finance lease receivable contracts | $ 79 | $ 71 |
RECEIVABLES - Summary of Aging
RECEIVABLES - Summary of Aging of Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 54 | $ 45 |
Current | 9,256 | 9,193 |
Total | 9,323 | 9,257 |
Retail | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 9,310 | 9,238 |
Retail | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 13 | 19 |
Retail | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 1,502 | 2,619 |
Fiscal year before current fiscal year | 2,187 | 1,572 |
Two years before current fiscal year | 1,194 | 1,034 |
Three years before current fiscal year | 749 | 544 |
Four years before current fiscal year | 369 | 263 |
Prior | 179 | 81 |
Total Past Due | 13 | 29 |
Current | 6,162 | 6,080 |
Total | 6,180 | 6,113 |
Retail | North America | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 1,502 | 2,619 |
Fiscal year before current fiscal year | 2,186 | 1,571 |
Two years before current fiscal year | 1,193 | 1,033 |
Three years before current fiscal year | 748 | 543 |
Four years before current fiscal year | 368 | 262 |
Prior | 178 | 81 |
Total | 6,175 | 6,109 |
Retail | North America | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 1 | 1 |
Two years before current fiscal year | 1 | 1 |
Three years before current fiscal year | 1 | 1 |
Four years before current fiscal year | 1 | 1 |
Prior | 1 | 0 |
Total | 5 | 4 |
Retail | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 417 | 793 |
Fiscal year before current fiscal year | 663 | 451 |
Two years before current fiscal year | 381 | 303 |
Three years before current fiscal year | 243 | 175 |
Four years before current fiscal year | 130 | 87 |
Prior | 90 | 72 |
Total Past Due | 22 | 5 |
Current | 1,898 | 1,864 |
Total | 1,924 | 1,881 |
Retail | South America | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 417 | 792 |
Fiscal year before current fiscal year | 662 | 448 |
Two years before current fiscal year | 380 | 299 |
Three years before current fiscal year | 242 | 173 |
Four years before current fiscal year | 130 | 86 |
Prior | 89 | 71 |
Total | 1,920 | 1,869 |
Retail | South America | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 0 | 1 |
Fiscal year before current fiscal year | 1 | 3 |
Two years before current fiscal year | 1 | 4 |
Three years before current fiscal year | 1 | 2 |
Four years before current fiscal year | 0 | 1 |
Prior | 1 | 1 |
Total | 4 | 12 |
Retail | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 284 | 544 |
Fiscal year before current fiscal year | 431 | 271 |
Two years before current fiscal year | 206 | 196 |
Three years before current fiscal year | 134 | 118 |
Four years before current fiscal year | 68 | 39 |
Prior | 10 | 2 |
Total Past Due | 19 | 11 |
Current | 1,110 | 1,156 |
Total | 1,133 | 1,170 |
Retail | Rest of World | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 284 | 544 |
Fiscal year before current fiscal year | 429 | 270 |
Two years before current fiscal year | 204 | 195 |
Three years before current fiscal year | 134 | 117 |
Four years before current fiscal year | 68 | 39 |
Prior | 10 | 2 |
Total | 1,129 | 1,167 |
Retail | Rest of World | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 2 | 1 |
Two years before current fiscal year | 2 | 1 |
Three years before current fiscal year | 0 | 1 |
Four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Total | 4 | 3 |
Retail | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 86 | 93 |
Total | 86 | 93 |
Retail | Europe | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 86 | 93 |
Retail | Europe | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Retail | 31-60 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 45 | 40 |
Retail | 31-60 Days Past Due | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 13 | 29 |
Retail | 31-60 Days Past Due | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 22 | 4 |
Retail | 31-60 Days Past Due | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 10 | 7 |
Retail | 31-60 Days Past Due | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Retail | 61-90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 9 | 5 |
Retail | 61-90 Days Past Due | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Retail | 61-90 Days Past Due | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 1 |
Retail | 61-90 Days Past Due | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 9 | 4 |
Retail | 61-90 Days Past Due | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Wholesale | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5 | 3 |
Current | 9,266 | 9,051 |
Total | 9,323 | 9,127 |
Wholesale | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 9,271 | 9,054 |
Wholesale | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 52 | 73 |
Wholesale | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 2,728 | 2,722 |
Total | 2,746 | 2,753 |
Wholesale | North America | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2,728 | 2,722 |
Wholesale | North America | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 18 | 31 |
Wholesale | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 603 | 537 |
Total | 636 | 579 |
Wholesale | South America | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 603 | 537 |
Wholesale | South America | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 33 | 42 |
Wholesale | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5 | 3 |
Current | 674 | 542 |
Total | 680 | 545 |
Wholesale | Rest of World | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 679 | 545 |
Wholesale | Rest of World | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 1 | 0 |
Wholesale | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 5,261 | 5,250 |
Total | 5,261 | 5,250 |
Wholesale | Europe | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 5,261 | 5,250 |
Wholesale | Europe | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Wholesale | 31-60 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3 | 3 |
Wholesale | 31-60 Days Past Due | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Wholesale | 31-60 Days Past Due | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Wholesale | 31-60 Days Past Due | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3 | 3 |
Wholesale | 31-60 Days Past Due | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Wholesale | 61-90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2 | 0 |
Wholesale | 61-90 Days Past Due | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Wholesale | 61-90 Days Past Due | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Wholesale | 61-90 Days Past Due | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2 | 0 |
Wholesale | 61-90 Days Past Due | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
RECEIVABLES - Allowance for Cre
RECEIVABLES - Allowance for Credit Losses Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Retail | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Opening Balance | $ 359 | $ 381 | $ 299 | $ 299 | |
Provision | (1) | $ 34 | 5 | 54 | 113 |
Charge-offs, net of recoveries | (11) | (24) | (19) | (44) | (56) |
Foreign currency translation and other | 10 | 2 | (10) | (18) | (10) |
Ending Balance | 357 | 326 | 357 | 326 | 381 |
Wholesale | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Opening Balance | 177 | 174 | 159 | 159 | |
Provision | 1 | 15 | 7 | 17 | 27 |
Charge-offs, net of recoveries | (2) | (1) | (3) | (1) | (14) |
Foreign currency translation and other | 6 | 1 | 4 | (7) | 11 |
Ending Balance | $ 182 | 159 | $ 182 | 159 | 174 |
Adoption of ASC 326 | Retail | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Opening Balance | 35 | 35 | |||
Adoption of ASC 326 | Wholesale | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Opening Balance | (9) | (9) | |||
Adjusted Balance | Retail | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Opening Balance | 314 | 334 | 334 | ||
Adjusted Balance | Wholesale | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Opening Balance | $ 144 | $ 150 | $ 150 |
RECEIVABLES - Carrying Amount o
RECEIVABLES - Carrying Amount of Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Restricted Receivables | $ 12,275 | $ 13,235 |
Retail note and finance lease receivables | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Restricted Receivables | 5,662 | 6,224 |
Wholesale | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Restricted Receivables | $ 6,613 | $ 7,011 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,982 | $ 1,525 |
Work-in-process | 1,329 | 622 |
Finished goods | 4,160 | 3,875 |
Total inventories | $ 7,471 | $ 6,022 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Leases [Abstract] | |||||
Short-term lease expenses | $ 4 | $ 3 | $ 6 | $ 6 | |
Operating lease expenses | 38 | $ 35 | 76 | 70 | |
Operating lease right-of-use assets | 432 | 432 | |||
Operating lease liabilities | $ 431 | $ 431 | $ 453 | ||
Weighted average remaining lease term | 6 years 2 months 12 days | 6 years 2 months 12 days | |||
Weighted average discount rate | 3.00% | 3.00% | |||
Leased assets obtained in exchange for operating lease obligations | $ 57 | 33 | |||
Operating cash outflow for amounts included in the measurement of operating lease obligations | $ 77 | $ 70 | |||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease term | 3 years | 3 years | |||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease term | 5 years | 5 years |
INVESTMENTS IN UNCONSOLIDATED_3
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES - Summary of Investments in Unconsolidated Subsidiaries and Affiliates (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Equity method | $ 474 | $ 514 |
Cost method | 30 | 15 |
Total | $ 504 | $ 529 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES - Changes in the Carrying Amount of Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning | $ 1,924 |
Foreign currency translation and other | 1 |
Balance at ending | 1,925 |
Agriculture | |
Goodwill [Roll Forward] | |
Balance at beginning | 1,695 |
Foreign currency translation and other | 3 |
Balance at ending | 1,698 |
Commercial and Specialty Vehicles | |
Goodwill [Roll Forward] | |
Balance at beginning | 65 |
Foreign currency translation and other | (2) |
Balance at ending | 63 |
Powertrain | |
Goodwill [Roll Forward] | |
Balance at beginning | 7 |
Foreign currency translation and other | 0 |
Balance at ending | 7 |
Financial Services | |
Goodwill [Roll Forward] | |
Balance at beginning | 157 |
Foreign currency translation and other | 0 |
Balance at ending | $ 157 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Goodwill [Line Items] | |||||
Amortization expense | $ 30 | $ 23 | $ 56 | $ 47 | |
Agriculture | |||||
Goodwill [Line Items] | |||||
Percentage of fair value in excess of carrying value | 270.00% | ||||
Financial Services | |||||
Goodwill [Line Items] | |||||
Percentage of fair value in excess of carrying value | 51.00% |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLES - Other Intangible Assets and Related Accumulated Amortization (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, gross | $ 2,431 | $ 2,418 |
Other intangible assets subject to amortization, accumulated amortization | 1,941 | 1,919 |
Other intangible assets subject to amortization, net | 490 | 499 |
Other intangible assets not subject to amortization | 273 | 273 |
Total other intangible assets, gross | 2,704 | 2,691 |
Total other intangible assets, net | $ 763 | 772 |
Dealer networks | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, weighted average life | 15 years | |
Other intangible assets subject to amortization, gross | $ 306 | 311 |
Other intangible assets subject to amortization, accumulated amortization | 244 | 241 |
Other intangible assets subject to amortization, net | 62 | 70 |
Patents, concessions, licenses and other | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, gross | 2,125 | 2,107 |
Other intangible assets subject to amortization, accumulated amortization | 1,697 | 1,678 |
Other intangible assets subject to amortization, net | $ 428 | $ 429 |
Patents, concessions, licenses and other | Minimum | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, weighted average life | 5 years | |
Patents, concessions, licenses and other | Maximum | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, weighted average life | 25 years |
OTHER LIABILITIES - Summary of
OTHER LIABILITIES - Summary of Other Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||||||
Advances on buy-back agreements | $ 1,183 | $ 1,355 | ||||
Warranty and campaign programs | 1,026 | $ 997 | 995 | $ 903 | $ 887 | $ 919 |
Marketing and sales incentive programs | 1,480 | 1,324 | ||||
Tax payables | 813 | 654 | ||||
Accrued expenses and deferred income | 687 | 672 | ||||
Accrued employee benefits | 812 | 681 | ||||
Lease liabilities | 431 | 453 | ||||
Legal reserves and other provisions | 342 | 332 | ||||
Contract reserve | 407 | 389 | ||||
Contract liabilities | 1,392 | 1,381 | ||||
Restructuring reserve | 64 | 76 | ||||
Other | 1,088 | 1,100 | ||||
Total | 9,725 | 9,412 | ||||
Future rents related to buy-back agreements | $ 722 | $ 740 |
OTHER LIABILITIES - Summary o_2
OTHER LIABILITIES - Summary of Recorded Activity for Basic Warranty and Accruals for Campaign Programs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||||
Balance at beginning of period | $ 997 | $ 887 | $ 995 | $ 919 |
Current year additions | 212 | 157 | 414 | 342 |
Claims paid | (188) | (152) | (352) | (322) |
Currency translation adjustment and other | 5 | 11 | (31) | (36) |
Balance at end of period | $ 1,026 | $ 903 | $ 1,026 | $ 903 |
OTHER LIABILITIES - Additional
OTHER LIABILITIES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Liabilities [Abstract] | ||||
Restructuring expenses | $ 8 | $ 7 | $ 10 | $ 12 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2021USD ($)site | Dec. 31, 2020USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of non-owned sites (in sites) | 66 | |
Number of national priority list (in sites) | 16 | |
Number of sites not named as PRP, with resolved liability, or deemed de minimis (in sites) | 60 | |
Incurred and claims to be resolved over extended period of time | 30 years | |
Environmental reserves | $ | $ 30 | $ 32 |
Guarantees at carrying value | $ | $ 490 | $ 615 |
FINANCIAL INSTRUMENTS - Additio
FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of investment held | $ 463 | $ 463 | ||
Shares held in affiliate | 25,661,448 | 25,661,448 | ||
Gain from adjustment to equity securities without readily determinable fair value, before tax | $ 107 | |||
Gain from adjustment to equity securities without readily determinable fair value, after tax | $ 106 | |||
Impairment of property, plant and equipment | $ 163 | $ 0 | ||
Agriculture | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Impairment of property, plant and equipment | 111 | |||
Impairment of intangible assets | 65 | |||
Construction | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Impairment of property, plant and equipment | 45 | |||
Impairment of intangible assets | 27 | |||
Commercial and Specialty Vehicles | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Impairment of property, plant and equipment | $ 7 | |||
Nikola Corporation | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Ownership percentage of investment held | 6.50% | 6.50% | ||
Nikola Corporation | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Share price (in dollars per share) | $ 18.06 | $ 18.06 | ||
Foreign exchange derivatives | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Notional amount of foreign exchange derivatives | $ 7,900 | $ 7,900 | $ 6,300 | |
Interest rate derivatives | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Notional amount of foreign exchange derivatives | 7,800 | 7,800 | $ 7,500 | |
Nominal amount of hedging instruments affected by reform of benchmark | $ 1,230 | $ 1,230 |
FINANCIAL INSTRUMENTS - Gross I
FINANCIAL INSTRUMENTS - Gross Impact of Changes in Fair Value of Derivatives Designated as Cash Flow Hedges on AOCI and Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in Accumulated Other Comprehensive Income | $ (50) | $ (19) | $ (56) | $ 47 |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 1 | (9) | 15 | (13) |
Foreign exchange contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in Accumulated Other Comprehensive Income | (55) | (15) | (81) | 66 |
Net sales | Foreign exchange contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (1) | 0 | (3) | (1) |
Cost of goods sold | Foreign exchange contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 2 | (3) | 27 | (20) |
Other, Net | Foreign exchange contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 1 | (5) | (6) | 10 |
Interest expense | Interest rate contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in Accumulated Other Comprehensive Income | 5 | (4) | 25 | (19) |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | $ (1) | $ (1) | $ (3) | $ (2) |
FINANCIAL INSTRUMENTS - Summary
FINANCIAL INSTRUMENTS - Summary of Activity in Accumulated Other Comprehensive Income Related to Derivatives (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Before-Tax Amount | ||
Accumulated derivative net losses, beginning of period | $ (5) | $ (62) |
Net changes in fair value of derivatives | (56) | 47 |
Net losses reclassified from accumulated other comprehensive income into income | (15) | 13 |
Accumulated derivative net losses, end of period | (76) | (2) |
Income Tax | ||
Accumulated derivative net losses, beginning of period | (1) | 8 |
Net changes in fair value of derivatives | (3) | 0 |
Reclassification from AOCI, Current Period, Tax | 1 | (3) |
Accumulated derivative net losses, end of period | (3) | 5 |
After-Tax Amount | ||
Accumulated derivative net losses, beginning of period | (6) | (54) |
Net changes in fair value of derivatives | (59) | 47 |
Net losses reclassified from accumulated other comprehensive income into income | (14) | 10 |
Accumulated derivative net losses, end of period | $ (79) | $ 3 |
FINANCIAL INSTRUMENTS - Impact
FINANCIAL INSTRUMENTS - Impact of Changes in Fair Value of Fair Value Hedges and Derivatives Not Designated as Hedging Instruments on Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest expense | Fair Value Hedges | Interest rate derivatives | ||||
Fair Value Hedges | ||||
Interest rate derivatives, fair value hedges | $ (2) | $ 3 | $ (23) | $ 42 |
Other, Net | Foreign exchange contracts | Derivatives not designated as hedging instruments | ||||
Not Designated as Hedges | ||||
Foreign exchange contracts, not designated as hedges | $ (58) | $ 13 | $ (76) | $ 154 |
FINANCIAL INSTRUMENTS - Fair Va
FINANCIAL INSTRUMENTS - Fair Values of Derivatives (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 136 | $ 160 |
Derivative liabilities | 171 | 139 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 92 | 144 |
Derivative liabilities | 146 | 108 |
Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 60 | 77 |
Derivative liabilities | 28 | 46 |
Derivatives designated as hedging instruments | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 32 | 67 |
Derivative liabilities | 118 | 62 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 42 | 16 |
Derivative liabilities | 25 | 31 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 8 | 0 |
Derivative liabilities | 9 | 0 |
Derivatives not designated as hedging instruments | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 34 | 16 |
Derivative liabilities | $ 16 | $ 31 |
FINANCIAL INSTRUMENTS - Fair _2
FINANCIAL INSTRUMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Value on Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 136 | $ 160 |
Investments at fair value through profit and loss | 464 | 392 |
Derivative liabilities | 171 | 139 |
Fair Value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other | 2 | 0 |
Investments at fair value through profit and loss | 464 | 392 |
Total Assets | 600 | 552 |
Total Liabilities | 171 | 139 |
Fair Value, measurements, recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other | 0 | 0 |
Investments at fair value through profit and loss | 464 | 392 |
Total Assets | 464 | 392 |
Total Liabilities | 0 | 0 |
Fair Value, measurements, recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other | 2 | 0 |
Investments at fair value through profit and loss | 0 | 0 |
Total Assets | 136 | 160 |
Total Liabilities | 171 | 139 |
Fair Value, measurements, recurring | Foreign exchange derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 66 | 83 |
Derivative liabilities | 134 | 93 |
Fair Value, measurements, recurring | Foreign exchange derivatives | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, measurements, recurring | Foreign exchange derivatives | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 66 | 83 |
Derivative liabilities | 134 | 93 |
Fair Value, measurements, recurring | Interest rate derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 68 | 77 |
Derivative liabilities | 37 | 46 |
Fair Value, measurements, recurring | Interest rate derivatives | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, measurements, recurring | Interest rate derivatives | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 68 | 77 |
Derivative liabilities | $ 37 | $ 46 |
FINANCIAL INSTRUMENTS - Estimat
FINANCIAL INSTRUMENTS - Estimated Fair Values of Instruments Not Carried at Fair Value in Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivables | $ 18,729 | $ 18,457 |
Debt | 24,512 | 26,053 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivables | 19,092 | 18,726 |
Debt | $ 25,024 | $ 26,630 |
FINANCIAL INSTRUMENTS - Fair _3
FINANCIAL INSTRUMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Value on Nonrecurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, losses | $ 163 | $ 0 | |
Fair Value, Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, fair value | 107 | 0 | $ 107 |
Other intangible assets, fair value | $ 0 | 0 | 0 |
Property, plant and equipment, losses | 0 | 163 | |
Other intangible assets, losses | $ 0 | $ 92 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Unrealized gain (loss) on cash flow hedges | ||||||
Gross Amount | $ (50) | $ (9) | $ (71) | $ 60 | ||
Income Taxes | (3) | 1 | (2) | (3) | ||
Net Amount | (53) | (8) | (73) | 57 | ||
Changes in retirement plans’ funded status | ||||||
Gross Amount | (25) | (13) | (49) | (42) | ||
Income Taxes | 8 | 6 | 15 | 15 | ||
Net Amount | (17) | (7) | (34) | (27) | ||
Foreign currency translation | ||||||
Gross Amount | 106 | (49) | 206 | (476) | ||
Income Taxes | 0 | 0 | 0 | 0 | ||
Net Amount | 106 | (49) | 206 | (476) | ||
Share of other comprehensive income (loss) of entities using the equity method | ||||||
Gross Amount | 2 | 5 | (21) | (14) | ||
Income Taxes | 0 | 0 | 0 | 0 | ||
Net Amount | 2 | 5 | (21) | (14) | ||
Other comprehensive income (loss) | ||||||
Gross Amount | 33 | (66) | 65 | (472) | ||
Income Taxes | 5 | 7 | 13 | 12 | ||
Other comprehensive income (loss), net of tax | $ 38 | $ 40 | $ (59) | $ (401) | $ 78 | $ (460) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of AOCI (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | $ 4,989 | $ 6,121 |
Ending balance | 6,030 | 5,925 |
Other comprehensive income (loss) allocated to noncontrolling interests | 2 | (2) |
Total | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (2,676) | (2,002) |
Other comprehensive income (loss), before reclassifications | 151 | (409) |
Amounts reclassified from other comprehensive income | (75) | (49) |
Other comprehensive income (loss) | 76 | (458) |
Ending balance | (2,600) | (2,460) |
Unrealized Gain (Loss) on Cash Flow Hedges | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (6) | (54) |
Other comprehensive income (loss), before reclassifications | (59) | 47 |
Amounts reclassified from other comprehensive income | (14) | 10 |
Other comprehensive income (loss) | (73) | 57 |
Ending balance | (79) | 3 |
Change in Retirement Plans’ Funded Status | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (653) | (650) |
Other comprehensive income (loss), before reclassifications | 27 | 32 |
Amounts reclassified from other comprehensive income | (61) | (59) |
Other comprehensive income (loss) | (34) | (27) |
Ending balance | (687) | (677) |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (1,884) | (1,145) |
Other comprehensive income (loss), before reclassifications | 204 | (474) |
Amounts reclassified from other comprehensive income | 0 | 0 |
Other comprehensive income (loss) | 204 | (474) |
Ending balance | (1,680) | (1,619) |
Share of Other Comprehensive Income (Loss) of Entities Using the Equity Method | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (133) | (153) |
Other comprehensive income (loss), before reclassifications | (21) | (14) |
Amounts reclassified from other comprehensive income | 0 | 0 |
Other comprehensive income (loss) | (21) | (14) |
Ending balance | $ (154) | $ (167) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | $ 8,911 | $ 5,578 | $ 16,384 | $ 11,039 |
Cost of goods sold | (6,867) | (5,114) | (12,600) | (9,528) |
Other, net | (81) | 1,295 | (298) | 1,098 |
Interest expense | (147) | (170) | (308) | (351) |
Income taxes | (188) | 40 | (345) | 63 |
Net income | 699 | 361 | 1,124 | 307 |
Reclassification out of accumulated other comprehensive income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income | (32) | (23) | (75) | (49) |
Reclassification out of accumulated other comprehensive income | Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income taxes | (7) | (8) | (14) | (15) |
Net income | (31) | (30) | (61) | (59) |
Reclassification out of accumulated other comprehensive income | Unrealized Gain (Loss) on Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | 1 | 0 | 3 | 1 |
Cost of goods sold | (2) | 3 | (27) | 20 |
Other, net | (1) | 5 | 6 | (10) |
Interest expense | 1 | 1 | 3 | 2 |
Income taxes | 0 | (2) | 1 | (3) |
Net income | (1) | 7 | (14) | 10 |
Reclassification out of accumulated other comprehensive income | Change in Retirement Plans’ Funded Status | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of actuarial losses | 9 | 10 | 18 | 21 |
Amortization of prior service cost | $ (33) | $ (32) | $ (65) | $ (65) |
RELATED PARTY INFORMATION - Add
RELATED PARTY INFORMATION - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
EXOR N.V. | ||
Related Party Transaction [Line Items] | ||
Percentage of common shares outstanding held by related parties | 42.50% | |
IVECO-OTO MELARA Societa Consortile | ||
Related Party Transaction [Line Items] | ||
Pledged guarantees on commitments | $ 186 | $ 259 |
CNH Industrial Capital Europe S.A.S. | ||
Related Party Transaction [Line Items] | ||
Pledged guarantees on commitments | $ 293 | $ 323 |
RELATED PARTY INFORMATION - Sch
RELATED PARTY INFORMATION - Schedule of Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
FCA Group | |||||
Related Party Transaction [Line Items] | |||||
Net sales | $ 158 | $ 123 | $ 362 | $ 243 | |
Cost of goods sold | 38 | 31 | 126 | 87 | |
Selling, general and administrative expenses | 33 | 32 | 64 | 56 | |
Trade receivables | 4 | 4 | $ 8 | ||
Trade payables | 90 | 90 | 85 | ||
Unconsolidated subsidiaries and affiliates | |||||
Related Party Transaction [Line Items] | |||||
Net sales | 327 | 264 | 682 | 428 | |
Cost of goods sold | 130 | $ 63 | 242 | $ 155 | |
Trade receivables | 107 | 107 | 170 | ||
Trade payables | $ 87 | $ 87 | $ 98 |
Uncategorized Items - cnhi-2021
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201613Member |