Exhibit 99.1 | ||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
CNH Industrial N.V. | |||||
By: | /s/ Michael P. Going | ||||
Name: | Michael P. Going | ||||
Title: | Corporate Secretary |
Exhibit Number | Description of Exhibit | |||||||
Exhibit 99.1 | CNH Industrial N.V. Quarterly Report for the three and nine months ended September 30, 2020 (prepared in accordance with U.S. GAAP) | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
Page | |||||
September 30, 2020 | December 31, 2019 | ||||||||||
(in millions) | |||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Trade receivables, net | |||||||||||
Financing receivables, net | |||||||||||
Inventories, net | |||||||||||
Property, plant and equipment, net | |||||||||||
Investments in unconsolidated subsidiaries and affiliates | |||||||||||
Investments at fair value through profit and loss | |||||||||||
Equipment under operating leases | |||||||||||
Goodwill, net | |||||||||||
Other intangible assets, net | |||||||||||
Deferred tax assets | |||||||||||
Derivative assets | |||||||||||
Other assets | |||||||||||
Total Assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Debt | |||||||||||
Trade payables | |||||||||||
Deferred tax liabilities | |||||||||||
Pension, postretirement and other postemployment benefits | |||||||||||
Derivative liabilities | |||||||||||
Other liabilities | |||||||||||
Total Liabilities | $ | $ | |||||||||
Redeemable noncontrolling interest | |||||||||||
Common shares, € | |||||||||||
Treasury stock, at cost - | ( | ( | |||||||||
Additional paid in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Noncontrolling interests | |||||||||||
Total Equity | $ | $ | |||||||||
Total Liabilities and Equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Finance, interest and other income | |||||||||||||||||||||||
Total Revenues | $ | $ | $ | $ | |||||||||||||||||||
Costs and Expenses | |||||||||||||||||||||||
Cost of goods sold | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Research and development expenses | |||||||||||||||||||||||
Restructuring expenses | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Goodwill impairment charge | |||||||||||||||||||||||
Other, net | |||||||||||||||||||||||
Total Costs and Expenses | $ | $ | $ | $ | |||||||||||||||||||
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | ( | ( | |||||||||||||||||||||
Income tax (expense) benefit | |||||||||||||||||||||||
Equity in income of unconsolidated subsidiaries and affiliates | ( | ||||||||||||||||||||||
Net income (loss) | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Net income attributable to noncontrolling interests | |||||||||||||||||||||||
Net income (loss) attributable to CNH Industrial N.V. | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Earnings (loss) per share attributable to common shareholders | |||||||||||||||||||||||
Basic | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Diluted | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Cash dividends declared per common share | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||
Net income (loss) | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||||||
Unrealized income (loss) on cash flow hedges | ( | ( | |||||||||||||||||||||
Changes in retirement plans’ funded status | ( | ( | ( | ( | |||||||||||||||||||
Foreign currency translation | ( | ( | |||||||||||||||||||||
Share of other comprehensive income (loss) of entities using the equity method | ( | ( | ( | ||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||
Comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | |||||||||||||||||||||||
Comprehensive income (loss) attributable to CNH Industrial N.V. | $ | ( | $ | $ | ( | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Operating activities: | |||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Adjustments to reconcile net income (loss) 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 | |||||||||||
Depreciation and amortization expense of assets under operating leases and assets sold under buy-back commitments | |||||||||||
Loss on disposal of assets | |||||||||||
Undistributed income of unconsolidated subsidiaries | |||||||||||
Goodwill impairment charge | |||||||||||
Other non-cash items(1) | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Provisions | ( | ( | |||||||||
Deferred income taxes | ( | ( | |||||||||
Trade and financing receivables related to sales, net | |||||||||||
Inventories, net | ( | ||||||||||
Trade payables | ( | ( | |||||||||
Other assets and liabilities | ( | ||||||||||
Net cash provided by (used in) operating activities | $ | $ | ( | ||||||||
Investing activities: | |||||||||||
Additions to retail receivables | ( | ( | |||||||||
Collections of retail receivables | |||||||||||
Proceeds from the sale of assets, net of assets under operating leases and assets sold under buy-back commitments | |||||||||||
Expenditures for property, plant and equipment and intangible assets, net of assets under operating leases and assets sold under buy-back commitments | ( | ( | |||||||||
Expenditures for assets under operating leases and assets sold under buy-back commitments | ( | ( | |||||||||
Other | ( | ||||||||||
Net cash used in investing activities | $ | ( | $ | ( | |||||||
Financing activities: | |||||||||||
Proceeds from long-term debt | |||||||||||
Payments of long-term debt | ( | ( | |||||||||
Net increase in other financial liabilities | |||||||||||
Dividends paid | ( | ( | |||||||||
Other | ( | ||||||||||
Net cash provided by (used in) financing activities | $ | $ | ( | ||||||||
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash | ( | ( | |||||||||
Increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents and restricted cash, beginning of year | |||||||||||
Cash and cash equivalents and restricted cash, end of period | $ | $ |
Common Shares | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total | Redeemable Noncontrolling Interest | ||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2020, as previously reported | $ | $ | ( | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Adoption of ASC 326 | — | — | — | ( | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2020 as recast | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | ( | ( | ( | — | |||||||||||||||||||||||||||||||||||||||
Dividends paid | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Decrease in non controlling interest due to the change of ownership | — | — | ( | — | — | ( | ( | — | |||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other changes | — | — | ( | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2020 | $ | $ | ( | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | ( | — | ( | — | |||||||||||||||||||||||||||||||||||||||
Dividends paid | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Common shares issued from treasury stock and capital increase for share-based compensation | — | ( | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other changes | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | $ | ( | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | ( | ( | — | ||||||||||||||||||||||||||||||||||||||||
Dividends paid | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other changes | — | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2020 | $ | $ | ( | $ | $ | $ | ( | $ | $ | $ |
Common Shares | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total | Redeemable Noncontrolling Interest | ||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2019 | $ | $ | ( | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Reclassification of certain tax effects | — | — | — | ( | — | — | |||||||||||||||||||||||||||||||||||||||||
Dividends paid | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Common shares issued from treasury stock and capital increase for share-based compensation | — | ( | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other changes | — | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2019 | $ | $ | ( | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | ( | ( | ( | — | |||||||||||||||||||||||||||||||||||||||
Dividends paid | — | — | — | ( | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | — | ( | — | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||
Common shares issued from treasury stock and capital increase for share-based compensation | — | ( | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other changes | — | — | ( | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2019 | $ | $ | ( | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | ( | ( | ( | — | |||||||||||||||||||||||||||||||||||||||
Dividends paid | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Common shares issued from treasury stock and capital increase for share-based compensation | — | ( | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other changes | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2019 | $ | $ | ( | $ | $ | $ | ( | $ | $ | $ |
Three Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Agriculture | $ | $ | |||||||||
Construction | |||||||||||
Commercial and Specialty Vehicles | |||||||||||
Powertrain | |||||||||||
Eliminations and Other | ( | ( | |||||||||
Total Industrial Activities | $ | $ | |||||||||
Financial Services | |||||||||||
Eliminations and Other | ( | ( | |||||||||
Total Revenues | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Agriculture | $ | $ | |||||||||
Construction | |||||||||||
Commercial and Specialty Vehicles | |||||||||||
Powertrain | |||||||||||
Eliminations and Other | ( | ( | |||||||||
Total Industrial Activities | $ | $ | |||||||||
Financial Services | |||||||||||
Eliminations and Other | ( | ( | |||||||||
Total Revenues | $ | $ |
Three Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Revenues from: | |||||||||||
Sales of goods | $ | $ | |||||||||
Rendering of services and other revenues | |||||||||||
Rents on assets sold with a buy-back commitment | |||||||||||
Revenues from sales of goods and services | |||||||||||
Finance and interest income | |||||||||||
Rents and other income on operating lease | |||||||||||
Finance, interest and other income | |||||||||||
Total Revenues | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Revenues from: | |||||||||||
Sales of goods | $ | $ | |||||||||
Rendering of services and other revenues | |||||||||||
Rents on assets sold with a buy-back commitment | |||||||||||
Revenues from sales of goods and services | |||||||||||
Finance and interest income | |||||||||||
Rents and other income on operating lease | |||||||||||
Finance, interest and other income | |||||||||||
Total Revenues | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
(in millions) | |||||||||||
Restricted cash | $ | $ | |||||||||
Financing receivables | |||||||||||
Total Assets | $ | $ | |||||||||
Debt | $ | $ | |||||||||
Total Liabilities | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Basic: | |||||||||||||||||||||||
Net income (loss) attributable to CNH Industrial | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Weighted average common shares outstanding—basic | |||||||||||||||||||||||
Basic earnings (loss) per share | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Diluted: | |||||||||||||||||||||||
Net income (loss) attributable to CNH Industrial | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Weighted average common shares outstanding—basic | |||||||||||||||||||||||
Effect of dilutive securities (when dilutive): | |||||||||||||||||||||||
Stock compensation plans (1) | |||||||||||||||||||||||
Weighted average common shares outstanding—diluted | |||||||||||||||||||||||
Diluted earnings (loss) per share | $ | ( | $ | $ | ( | $ |
Pension | Healthcare | Other | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Expected return on assets | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||||
Prior service credit | ( | ( | |||||||||||||||||||||||||||||||||
Actuarial loss | |||||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | $ | $ | ( | $ | ( | $ | $ |
Pension | Healthcare | Other | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Expected return on assets | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||||
Prior service credit | ( | ( | |||||||||||||||||||||||||||||||||
Actuarial loss | |||||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||
Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||
Agriculture | Construction | Commercial and Specialty Vehicles | Powertrain | Unallocated items, eliminations and other | Total | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Consolidated Net Income (Loss) | $ | ( | |||||||||||||||||||||||||||||||||
Less: Consolidated Income tax benefit (expenses) | |||||||||||||||||||||||||||||||||||
Consolidated Income (loss) before taxes | ( | ||||||||||||||||||||||||||||||||||
Less: Financial Services | |||||||||||||||||||||||||||||||||||
Financial Services Net income | |||||||||||||||||||||||||||||||||||
Financial Services income taxes | |||||||||||||||||||||||||||||||||||
Add back of the following Industrial Activities items: | |||||||||||||||||||||||||||||||||||
Interest expenses, net of interest income and eliminations | |||||||||||||||||||||||||||||||||||
Foreign exchanges (gains) losses, net | |||||||||||||||||||||||||||||||||||
Finance and non-service components of Pension and other post-employment benefit costs(1) | ( | ||||||||||||||||||||||||||||||||||
Adjustments for the following Industrial Activities items: | |||||||||||||||||||||||||||||||||||
Restructuring expenses | |||||||||||||||||||||||||||||||||||
Nikola investment fair value adjustment | |||||||||||||||||||||||||||||||||||
Adjusted EBIT of Industrial Activities | $ | $ | ( | $ | ( | $ | $ | ( | $ |
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||
Agriculture | Construction | Commercial and Specialty Vehicles | Powertrain | Unallocated items, eliminations and other | Total | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Consolidated Net Income (Loss) | $ | ( | |||||||||||||||||||||||||||||||||
Less: Consolidated Income tax benefit (expenses) | |||||||||||||||||||||||||||||||||||
Consolidated Income (loss) before taxes | ( | ||||||||||||||||||||||||||||||||||
Less: Financial Services | |||||||||||||||||||||||||||||||||||
Financial Services Net income | |||||||||||||||||||||||||||||||||||
Financial Services income taxes | |||||||||||||||||||||||||||||||||||
Add back of the following Industrial Activities items: | |||||||||||||||||||||||||||||||||||
Interest expenses, net of interest income and eliminations | |||||||||||||||||||||||||||||||||||
Foreign exchanges (gains) losses, net | |||||||||||||||||||||||||||||||||||
Finance and non-service components of Pension and other post-employment benefit costs(1) | ( | ||||||||||||||||||||||||||||||||||
Adjustments for the following Industrial Activities items: | |||||||||||||||||||||||||||||||||||
Restructuring expenses | |||||||||||||||||||||||||||||||||||
Goodwill impairment change | |||||||||||||||||||||||||||||||||||
Other discrete items(2) | |||||||||||||||||||||||||||||||||||
Nikola investment fair value adjustment | ( | ( | |||||||||||||||||||||||||||||||||
Adjusted EBIT of Industrial Activities | $ | $ | ( | $ | ( | $ | $ | ( | $ |
Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||
Agriculture | Construction | Commercial and Specialty Vehicles | Powertrain | Unallocated items, eliminations and other | Total | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Consolidated Net Income | $ | ||||||||||||||||||||||||||||||||||
Less: Consolidated Income tax benefit (expenses) | |||||||||||||||||||||||||||||||||||
Consolidated Income before taxes | |||||||||||||||||||||||||||||||||||
Less: Financial Services | |||||||||||||||||||||||||||||||||||
Financial Services Net income | |||||||||||||||||||||||||||||||||||
Financial Services income taxes | |||||||||||||||||||||||||||||||||||
Add back of the following Industrial Activities items: | |||||||||||||||||||||||||||||||||||
Interest expenses, net of interest income and eliminations | |||||||||||||||||||||||||||||||||||
Foreign exchanges (gains) losses, net | |||||||||||||||||||||||||||||||||||
Finance and non-service components of Pension and other post-employment benefit costs(1) | ( | ||||||||||||||||||||||||||||||||||
Adjustments for the following Industrial Activities items: | |||||||||||||||||||||||||||||||||||
Restructuring expenses | |||||||||||||||||||||||||||||||||||
Other discrete items(2) | |||||||||||||||||||||||||||||||||||
Adjusted EBIT of Industrial Activities | $ | $ | $ | $ | $ | ( | $ |
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||
Agriculture | Construction | Commercial and Specialty Vehicles | Powertrain | Unallocated items, eliminations and other | Total | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Consolidated Net Income | $ | ||||||||||||||||||||||||||||||||||
Less: Consolidated Income tax benefit (expenses) | |||||||||||||||||||||||||||||||||||
Consolidated Income before taxes | |||||||||||||||||||||||||||||||||||
Less: Financial Services | |||||||||||||||||||||||||||||||||||
Financial Services Net income | |||||||||||||||||||||||||||||||||||
Financial Services income taxes | |||||||||||||||||||||||||||||||||||
Add back of the following Industrial Activities items: | |||||||||||||||||||||||||||||||||||
Interest expenses, net of interest income and eliminations | |||||||||||||||||||||||||||||||||||
Foreign exchanges (gains) losses, net | |||||||||||||||||||||||||||||||||||
Finance and non-service components of Pension and other post-employment benefit costs(1) | ( | ||||||||||||||||||||||||||||||||||
Adjustments for the following Industrial Activities items: | |||||||||||||||||||||||||||||||||||
Restructuring expenses | |||||||||||||||||||||||||||||||||||
Other discrete items(2) | |||||||||||||||||||||||||||||||||||
Adjusted EBIT of Industrial Activities | $ | $ | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
(in millions) | |||||||||||
Retail | $ | $ | |||||||||
Wholesale | |||||||||||
Other | |||||||||||
Total | $ | $ |
31-60 Days Past Due | 61-90 Days Past Due | Total Past Due | Current | Total Performing | Non- Performing | Total | |||||||||||||||||||||||||||||||||||
Retail | |||||||||||||||||||||||||||||||||||||||||
North America | |||||||||||||||||||||||||||||||||||||||||
2020 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||||||||||||||
2018 | |||||||||||||||||||||||||||||||||||||||||
2017 | |||||||||||||||||||||||||||||||||||||||||
2016 | |||||||||||||||||||||||||||||||||||||||||
Prior to 2016 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
South America | |||||||||||||||||||||||||||||||||||||||||
2020 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||||||||||||||
2018 | |||||||||||||||||||||||||||||||||||||||||
2017 | |||||||||||||||||||||||||||||||||||||||||
2016 | |||||||||||||||||||||||||||||||||||||||||
Prior to 2016 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Rest of World | |||||||||||||||||||||||||||||||||||||||||
2020 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||||||||||||||
2018 | |||||||||||||||||||||||||||||||||||||||||
2017 | |||||||||||||||||||||||||||||||||||||||||
2016 | |||||||||||||||||||||||||||||||||||||||||
Prior to 2016 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Europe | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Total Retail | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Wholesale | |||||||||||||||||||||||||||||||||||||||||
North America | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
South America | |||||||||||||||||||||||||||||||||||||||||
Rest of World | |||||||||||||||||||||||||||||||||||||||||
Europe | |||||||||||||||||||||||||||||||||||||||||
Total Wholesale | $ | $ | $ | $ | $ | $ | $ |
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
31-60 Days Past Due | 61-90 Days Past Due | Greater Than 90 Days | Total Past Due | Current | Total Performing | Non- Performing | Total | ||||||||||||||||||||||||||||||||||||||||
Retail | |||||||||||||||||||||||||||||||||||||||||||||||
North America | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Europe | |||||||||||||||||||||||||||||||||||||||||||||||
South America | |||||||||||||||||||||||||||||||||||||||||||||||
Rest of World | |||||||||||||||||||||||||||||||||||||||||||||||
Total Retail | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Wholesale | |||||||||||||||||||||||||||||||||||||||||||||||
North America | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Europe | |||||||||||||||||||||||||||||||||||||||||||||||
South America | |||||||||||||||||||||||||||||||||||||||||||||||
Rest of World | |||||||||||||||||||||||||||||||||||||||||||||||
Total Wholesale | $ | $ | $ | $ | $ | $ | $ | $ |
Three Months Ended September 30, 2020 | |||||||||||
Retail | Wholesale | ||||||||||
Opening balance | $ | $ | |||||||||
Provision | |||||||||||
Charge-offs, net of recoveries | ( | ( | |||||||||
Foreign currency translation and other | |||||||||||
Ending balance | $ | $ |
Nine Months Ended September 30, 2020 | |||||||||||
Retail | Wholesale | ||||||||||
Opening Balance, as previously reported | $ | $ | |||||||||
Adoption of ASC 326 | ( | ||||||||||
Opening Balance, as recast | |||||||||||
Provision | |||||||||||
Charge-offs, net of recoveries | ( | ( | |||||||||
Foreign currency translation and other | ( | ( | |||||||||
Ending Balance | $ | $ |
Three Months Ended September 30, 2019 | |||||||||||
Retail | Wholesale | ||||||||||
Opening Balance | $ | $ | |||||||||
Provision | |||||||||||
Charge-offs, net of recoveries | ( | ( | |||||||||
Foreign currency translation and other | ( | ( | |||||||||
Ending Balance | $ | $ |
Nine Months Ended September 30, 2019 | |||||||||||
Retail | Wholesale | ||||||||||
Opening Balance | $ | $ | |||||||||
Provision | |||||||||||
Charge-offs, net of recoveries | ( | ( | |||||||||
Foreign currency translation and other | ( | ( | |||||||||
Ending Balance | $ | $ |
December 31, 2019 | |||||||||||
Retail | Wholesale | ||||||||||
Opening Balance | $ | $ | |||||||||
Provision | |||||||||||
Charge-offs, net of recoveries | ( | ( | |||||||||
Foreign currency translation and other | ( | ||||||||||
Ending Balance | $ | $ |
Restricted Receivables | |||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||
Retail note and finance lease receivables | $ | $ | |||||||||
Wholesale receivables | |||||||||||
Total | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
(in millions) | |||||||||||
Raw materials | $ | $ | |||||||||
Work-in-process | |||||||||||
Finished goods | |||||||||||
Total inventories | $ | $ |
Operating Leases | ($ million) | |||||||
2020 (excluding the nine months ended September 30, 2020) | $ | |||||||
2021 | ||||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 and thereafter | ||||||||
Total future minimum lease payments | $ | |||||||
Less: Interest | ||||||||
Total | $ |
Amount | ||||||||
(in millions) | ||||||||
2020 | $ | |||||||
2021 | ||||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 and thereafter | ||||||||
Total undiscounted lease payments | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
(in millions) | |||||||||||
Equity method | $ | $ | |||||||||
Cost method(1) | |||||||||||
Total | $ | $ |
Agriculture | Construction | Commercial and Specialty Vehicles | Powertrain | Financial Services | Total | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Decrease | ( | ( | |||||||||||||||||||||||||||||||||
Foreign currency translation and other | ( | ( | ( | ||||||||||||||||||||||||||||||||
Goodwill impairment charge | ( | ( | |||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
Weighted Avg. Life | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Other intangible assets subject to amortization: | |||||||||||||||||||||||||||||||||||||||||
Dealer networks | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Patents, concessions, and licenses and other | |||||||||||||||||||||||||||||||||||||||||
Other intangible assets not subject to amortization: | |||||||||||||||||||||||||||||||||||||||||
Trademarks | — | — | |||||||||||||||||||||||||||||||||||||||
Total Other intangible assets | $ | $ | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
(in millions) | |||||||||||
Repurchase price on buy-back agreements | $ | $ | |||||||||
Warranty and campaign programs | |||||||||||
Marketing and sales incentive programs | |||||||||||
Tax payables | |||||||||||
Accrued expenses and deferred income | |||||||||||
Accrued employee benefits | |||||||||||
Lease liabilities | |||||||||||
Legal reserves and other provisions | |||||||||||
Contract reserve | |||||||||||
Contract liabilities(1) | |||||||||||
Restructuring reserve | |||||||||||
Other | |||||||||||
Total | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Current year additions | |||||||||||||||||||||||
Claims paid | ( | ( | ( | ( | |||||||||||||||||||
Currency translation adjustment and other | ( | ( | ( | ||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ |
Recognized in Net Income | ||||||||||||||||||||
For the Three Months Ended September 30, | Gain (Loss) Recognized in Accumulated Other Comprehensive Income | Classification of Gain (Loss) | Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | |||||||||||||||||
2020 | ||||||||||||||||||||
Foreign exchange contracts | $ | |||||||||||||||||||
Net sales | ( | |||||||||||||||||||
Cost of goods sold | ||||||||||||||||||||
Other, Net | ||||||||||||||||||||
Interest rate contracts | Interest expense | ( | ||||||||||||||||||
Total | $ | $ | ||||||||||||||||||
2019 | ||||||||||||||||||||
Foreign exchange contracts | $ | ( | ||||||||||||||||||
Net sales | ||||||||||||||||||||
Cost of goods sold | ( | |||||||||||||||||||
Other, Net | ( | |||||||||||||||||||
Interest rate contracts | ( | Interest expense | ( | |||||||||||||||||
Total | $ | ( | $ | ( |
Recognized in Net Income | ||||||||||||||||||||
For the Nine Months Ended September 30, | Gain (Loss) Recognized in Accumulated Other Comprehensive Income | Classification of Gain (Loss) | Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | |||||||||||||||||
2020 | ||||||||||||||||||||
Foreign exchange contracts | $ | |||||||||||||||||||
Net sales | ( | |||||||||||||||||||
Cost of goods sold | ( | |||||||||||||||||||
Other, Net | ||||||||||||||||||||
Interest rate contracts | ( | Interest expense | ( | |||||||||||||||||
Total | $ | $ | ( | |||||||||||||||||
2019 | ||||||||||||||||||||
Foreign exchange contracts | $ | ( | ||||||||||||||||||
Net sales | ( | |||||||||||||||||||
Cost of goods sold | ( | |||||||||||||||||||
Other, Net | ( | |||||||||||||||||||
Interest rate contracts | ( | Interest expense | ( | |||||||||||||||||
Total | $ | ( | $ | ( |
In Millions | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||||||||||
Accumulated derivative net losses as of December 31, 2019 | $ | ( | $ | $ | ( | |||||||||||||||
Net changes in fair value of derivatives | ( | |||||||||||||||||||
Net losses reclassified from accumulated other comprehensive income into income | ( | |||||||||||||||||||
Accumulated derivative net losses as of September 30, 2020 | $ | $ | ( | $ |
In Millions | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||||||||||
Accumulated derivative net losses as of December 31, 2018 | $ | ( | $ | $ | ( | |||||||||||||||
Net changes in fair value of derivatives | ( | ( | ||||||||||||||||||
Net losses reclassified from accumulated other comprehensive income into income | ( | |||||||||||||||||||
Accumulated derivative net losses as of September 30, 2019 | $ | ( | $ | $ | ( |
For the Three Months Ended September 30, | ||||||||||||||||||||
Classification of Gain | 2020 | 2019 | ||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||
Interest rate derivatives | Interest expense | $ | ( | $ | ||||||||||||||||
Not Designated as Hedges | ||||||||||||||||||||
Foreign exchange contracts | Other, Net | $ | $ |
For the Nine Months Ended September 30, | ||||||||||||||||||||
Classification of Gain | 2020 | 2019 | ||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||
Interest rate derivatives | Interest expense | $ | $ | |||||||||||||||||
Not Designated as Hedges | ||||||||||||||||||||
Foreign exchange contracts | Other, Net | $ | $ | ( |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
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 | Derivative assets | ||||||||||||||||||||||||
Foreign currency contracts | Derivative assets | Derivative assets | ||||||||||||||||||||||||
Total derivative assets designated as hedging instruments | ||||||||||||||||||||||||||
Interest rate contracts | Derivative liabilities | Derivative liabilities | ||||||||||||||||||||||||
Foreign currency contracts | Derivative liabilities | Derivative liabilities | ||||||||||||||||||||||||
Total derivative liabilities designated as hedging instruments | ||||||||||||||||||||||||||
Derivatives not designated as hedging instruments under Subtopic 815-20 | ||||||||||||||||||||||||||
Interest rate contracts | Derivative assets | Derivative assets | ||||||||||||||||||||||||
Foreign currency contracts | Derivative assets | Derivative assets | ||||||||||||||||||||||||
Total derivative assets not designated as hedging instruments | ||||||||||||||||||||||||||
Interest rate contracts | Derivative liabilities | Derivative liabilities | ||||||||||||||||||||||||
Foreign currency contracts | Derivative liabilities | Derivative liabilities | ||||||||||||||||||||||||
Total derivative liabilities not designated as hedging instruments |
Level 1 | Level 2 | Total | |||||||||||||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Foreign exchange derivatives | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Interest rate derivatives | |||||||||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||||
Investments at fair value through profit & loss | |||||||||||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Foreign exchange derivatives | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||
Interest rate derivatives | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Commodities | ( | ( | |||||||||||||||||||||||||||||||||
Total Liabilities | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( |
Fair Value | Losses | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Property, plant and equipment | $ | $ | $ | $ | |||||||||||||||||||
Other intangible assets | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Financing receivables | $ | $ | $ | $ | |||||||||||||||||||
Debt | $ | $ | $ | $ |
Three Months Ended September 30, 2020 | |||||||||||||||||
Gross Amount | Income Taxes | Net Amount | |||||||||||||||
Unrealized gain (loss) on cash flow hedges | $ | $ | ( | $ | |||||||||||||
Changes in retirement plans’ funded status | ( | ( | |||||||||||||||
Foreign currency translation | ( | ( | |||||||||||||||
Share of other comprehensive income (loss) of entities using the equity method | |||||||||||||||||
Other comprehensive income (loss) | $ | ( | $ | ( | $ | ( |
Nine Months Ended September 30, 2020 | |||||||||||||||||
Gross Amount | Income Taxes | Net Amount | |||||||||||||||
Unrealized gain (loss) on cash flow hedges | $ | $ | ( | $ | |||||||||||||
Changes in retirement plans’ funded status | ( | ( | |||||||||||||||
Foreign currency translation | ( | ( | |||||||||||||||
Share of other comprehensive income (loss) of entities using the equity method | ( | ( | |||||||||||||||
Other comprehensive income (loss) | $ | ( | $ | $ | ( |
Three Months Ended September 30, 2019 | |||||||||||||||||
Gross Amount | Income Taxes | Net Amount | |||||||||||||||
Unrealized gain (loss) on cash flow hedges | $ | ( | $ | $ | ( | ||||||||||||
Changes in retirement plans’ funded status | ( | ( | |||||||||||||||
Foreign currency translation | |||||||||||||||||
Share of other comprehensive income (loss) of entities using the equity method | ( | ( | |||||||||||||||
Other comprehensive income (loss) | $ | ( | $ | $ | ( |
Nine Months Ended September 30, 2019 | |||||||||||||||||
Gross Amount | Income Taxes | Net Amount | |||||||||||||||
Unrealized gain (loss) on cash flow hedges | $ | ( | $ | $ | ( | ||||||||||||
Changes in retirement plans’ funded status | ( | ( | |||||||||||||||
Foreign currency translation | |||||||||||||||||
Share of other comprehensive income (loss) of entities using the equity method | ( | ( | |||||||||||||||
Other comprehensive income (loss) | $ | $ | $ |
Unrealized Gain (Loss) on Cash Flow Hedges | Change in Retirement Plans’ Funded Status | Foreign Currency Translation | Share of Other Comprehensive Income (Loss) of Entities Using the Equity Method | Total | |||||||||||||||||||||||||
Balance, January 1, 2019 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
Other comprehensive income (loss), before reclassifications | ( | ( | |||||||||||||||||||||||||||
Amounts reclassified from other comprehensive income | ( | ||||||||||||||||||||||||||||
Other comprehensive income (loss) * | ( | ( | ( | ||||||||||||||||||||||||||
Reclassification of certain tax effects | ( | ( | |||||||||||||||||||||||||||
Balance, Balance, September 30, 2019 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
Balance, January 1, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
Other comprehensive income (loss), before reclassifications | ( | ( | ( | ||||||||||||||||||||||||||
Amounts reclassified from other comprehensive income (loss) | ( | ( | |||||||||||||||||||||||||||
Other comprehensive income (loss) * | ( | ( | ( | ( | |||||||||||||||||||||||||
Balance, September 30, 2020 | $ | $ | ( | $ | ( | $ | ( | $ | ( |
Amounts Reclassified from Other Comprehensive Income (Loss) | Amount Reclassified from Other Comprehensive Income (Loss) | Consolidated Statement of Operations Line | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||
Cash flow hedges | $ | $ | ( | $ | $ | Net sales | ||||||||||||||||||||
( | Cost of goods sold | |||||||||||||||||||||||||
( | ( | Other, net | ||||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||
( | ( | ( | Income taxes | |||||||||||||||||||||||
$ | ( | $ | $ | $ | ||||||||||||||||||||||
Change in retirement plans’ funded status: | ||||||||||||||||||||||||||
Amortization of actuarial losses | $ | $ | $ | $ | * | |||||||||||||||||||||
Amortization of prior service cost | ( | ( | ( | ( | * | |||||||||||||||||||||
( | ( | ( | ( | Income taxes | ||||||||||||||||||||||
$ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
Total reclassifications, net of tax | $ | ( | $ | ( | $ | ( | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of goods sold | $ | $ | $ | $ | |||||||||||||||||||
Selling, general and administrative expenses | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
(in millions) | |||||||||||
Trade receivables | $ | $ | |||||||||
Trade payables | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of goods sold | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
(in millions) | |||||||||||
Trade receivables | $ | $ | |||||||||
Trade payables | $ | $ |
Three Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Revenues: | |||||||||||
Net sales | $ | 6,107 | $ | 5,892 | |||||||
Finance, interest and other income | 385 | 468 | |||||||||
Total Revenues | 6,492 | 6,360 | |||||||||
Costs and Expenses: | |||||||||||
Cost of goods sold | 5,178 | 5,015 | |||||||||
Selling, general and administrative expenses | 501 | 540 | |||||||||
Research and development expenses | 226 | 238 | |||||||||
Restructuring expenses | 7 | 42 | |||||||||
Interest expense | 161 | 192 | |||||||||
Other, net | 1,388 | 173 | |||||||||
Total Costs and Expenses | 7,461 | 6,200 | |||||||||
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | (969) | 160 | |||||||||
Income tax benefit | 15 | 486 | |||||||||
Equity in income of unconsolidated subsidiaries and affiliates | 22 | (3) | |||||||||
Net income (loss) | (932) | 643 | |||||||||
Net income attributable to noncontrolling interests | 10 | 6 | |||||||||
Net income (loss) attributable to CNH Industrial N.V. | $ | (942) | $ | 637 |
Three Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(in millions, except percentages) | |||||||||||
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | $ | (969) | $ | 160 | |||||||
Income tax benefit | $ | 15 | $ | 486 | |||||||
Effective tax rate | 1.5 | % | (303.8) | % |
Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | % Change | % Change Excl. FX | ||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Agriculture | $ | 2,713 | $ | 2,446 | 10.9 | % | 13.9 | % | |||||||||||||||
Construction | 576 | 664 | (13.3) | % | (10.1) | % | |||||||||||||||||
Commercial and Specialty Vehicles | 2,371 | 2,331 | 1.7 | % | 0.2 | % | |||||||||||||||||
Powertrain | 909 | 940 | (3.3) | % | (6.2) | % | |||||||||||||||||
Eliminations and other | (462) | (489) | |||||||||||||||||||||
Total Net sales of Industrial Activities | 6,107 | 5,892 | 3.6 | % | 4.4 | % | |||||||||||||||||
Financial Services | 408 | 487 | (16.2) | % | (13.3) | % | |||||||||||||||||
Eliminations and other | (23) | (19) | |||||||||||||||||||||
Total Revenues | $ | 6,492 | $ | 6,360 | 2.1 | % | 3.0 | % |
Three Months Ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | $ Change | 2020 Adj EBIT Margin | 2019 Adj EBIT Margin | |||||||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||||||||
Adjusted EBIT by segment: | |||||||||||||||||||||||||||||
Agriculture | $ | 274 | $ | 152 | $ | 122 | 10.1 | % | 6.2 | % | |||||||||||||||||||
Construction | (24) | 10 | (34) | (4.2) | % | 1.5 | % | ||||||||||||||||||||||
Commercial and Specialty Vehicles | (7) | 70 | (77) | (0.3) | % | 3.0 | % | ||||||||||||||||||||||
Powertrain | 60 | 81 | (21) | 6.6 | % | 8.6 | % | ||||||||||||||||||||||
Unallocated items, eliminations and other | (65) | (29) | (36) | ||||||||||||||||||||||||||
Total Adjusted EBIT of Industrial Activities | $ | 238 | $ | 284 | $ | (46) | 3.9 | % | 4.8 | % |
Three Months Ended September 30, | |||||||||||||||||
(in millions, except percentages) | 2020 | 2019 | % Change | ||||||||||||||
North America | $ | 937 | $ | 877 | 6.8 | % | |||||||||||
Europe | 893 | 788 | 13.3 | % | |||||||||||||
South America | 373 | 406 | (8.1) | % | |||||||||||||
Rest of World | 510 | 375 | 36.0 | % | |||||||||||||
Total | $ | 2,713 | $ | 2,446 | 10.9 | % |
Three Months Ended September 30, | |||||||||||||||||
(in millions, except percentages) | 2020 | 2019 | % Change | ||||||||||||||
North America | $ | 269 | $ | 341 | (21.1) | % | |||||||||||
Europe | 97 | 105 | (7.6) | % | |||||||||||||
South America | 85 | 96 | (11.5) | % | |||||||||||||
Rest of World | 125 | 122 | 2.5 | % | |||||||||||||
Total | $ | 576 | $ | 664 | (13.3) | % |
Three Months Ended September 30, | |||||||||||||||||
(in millions, except percentages) | 2020 | 2019 | % Change | ||||||||||||||
North America | $ | 23 | $ | 17 | n.m. | ||||||||||||
Europe | 1,922 | 1,894 | 1.5 | % | |||||||||||||
South America | 140 | 126 | 11.1 | % | |||||||||||||
Rest of World | 286 | 294 | (2.7) | % | |||||||||||||
Total | $ | 2,371 | $ | 2,331 | 1.7 | % |
Three Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Consolidated Net Income (Loss) | $ | (932) | $ | 643 | |||||||
Less: Consolidated Income tax (expenses) | 15 | 486 | |||||||||
Consolidated Income (Loss) before taxes | (947) | 157 | |||||||||
Less: Financial Services | |||||||||||
Financial Services Net income | 56 | 82 | |||||||||
Financial Services income taxes | 24 | 34 | |||||||||
Add back of the following Industrial Activities items: | |||||||||||
Interest expenses, net of interest income and eliminations | 63 | 62 | |||||||||
Foreign exchanges (gains) losses, net | 17 | 19 | |||||||||
Finance and non-service components of Pension and other post-employment benefit costs(1) | (29) | (16) | |||||||||
Adjustments for the following Industrial Activities items: | |||||||||||
Restructuring expenses | 7 | 41 | |||||||||
Other discrete items(2) | — | 137 | |||||||||
Nikola investment fair value adjustment | 1,207 | — | |||||||||
Adjusted EBIT of Industrial Activities | $ | 238 | $ | 284 |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Revenues: | |||||||||||
Net sales | $ | 16,250 | $ | 18,966 | |||||||
Finance, interest and other income | 1,281 | 1,418 | |||||||||
Total Revenues | 17,531 | 20,384 | |||||||||
Costs and Expenses: | |||||||||||
Cost of goods sold | 14,706 | 15,732 | |||||||||
Selling, general and administrative expenses | 1,511 | 1,634 | |||||||||
Research and development expenses | 643 | 755 | |||||||||
Restructuring expenses | 19 | 78 | |||||||||
Interest expense | 512 | 570 | |||||||||
Goodwill impairment charge | 585 | — | |||||||||
Other, net | 290 | 552 | |||||||||
Total Costs and Expenses | 18,266 | 19,321 | |||||||||
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | (735) | 1,063 | |||||||||
Income tax benefit | 78 | 261 | |||||||||
Equity in income of unconsolidated subsidiaries and affiliates | 32 | 10 | |||||||||
Net income (loss) | (625) | 1,334 | |||||||||
Net income attributable to noncontrolling interests | 32 | 26 | |||||||||
Net income (loss) attributable to CNH Industrial N.V. | $ | (657) | $ | 1,308 |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(in millions, except percentages) | |||||||||||
Income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates | $ | (735) | $ | 1,063 | |||||||
Income tax benefit | $ | 78 | $ | 261 | |||||||
Effective tax rate | 10.6 | % | (24.6) | % |
Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | % Change | % Change Excl. FX | ||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Agriculture | $ | 7,498 | $ | 8,031 | (6.6) | % | (3.4) | % | |||||||||||||||
Construction | 1,418 | 2,061 | (31.2) | % | (28.1) | % | |||||||||||||||||
Commercial and Specialty Vehicles | 6,131 | 7,443 | (17.6) | % | (16.1) | % | |||||||||||||||||
Powertrain | 2,425 | 3,109 | (22.0) | % | (21.3) | % | |||||||||||||||||
Eliminations and other | (1,222) | (1,678) | |||||||||||||||||||||
Total Net sales of Industrial Activities | 16,250 | 18,966 | (14.3) | % | (12.0) | % | |||||||||||||||||
Financial Services | 1,338 | 1,480 | (9.6) | % | (6.3) | % | |||||||||||||||||
Eliminations and other | (57) | (62) | |||||||||||||||||||||
Total Revenues | $ | 17,531 | $ | 20,384 | (14.0) | % | (11.6) | % |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | $ Change | 2020 Adj EBIT Margin | 2019 Adj EBIT Margin | |||||||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||||||||
Adjusted EBIT by segment: | |||||||||||||||||||||||||||||
Agriculture | $ | 501 | $ | 661 | $ | (160) | 6.7 | % | 8.2 | % | |||||||||||||||||||
Construction | (194) | 48 | (242) | (13.7) | % | 2.3 | % | ||||||||||||||||||||||
Commercial and Specialty Vehicles | (219) | 221 | (440) | (3.6) | % | 3.0 | % | ||||||||||||||||||||||
Powertrain | 123 | 279 | (156) | 5.1 | % | 9.0 | % | ||||||||||||||||||||||
Unallocated items, eliminations and other | (179) | (120) | (59) | ||||||||||||||||||||||||||
Total Adjusted EBIT of Industrial Activities | $ | 32 | $ | 1,089 | $ | (1,057) | 0.2 | % | 5.7 | % |
Nine Months Ended September 30, | |||||||||||||||||
(in millions, except percentages) | 2020 | 2019 | % Change | ||||||||||||||
North America | $ | 2,662 | $ | 2,843 | (6.4) | % | |||||||||||
Europe | 2,613 | 2,921 | (10.5) | % | |||||||||||||
South America | 975 | 1,126 | (13.4) | % | |||||||||||||
Rest of World | 1,248 | 1,141 | 9.4 | % | |||||||||||||
Total | $ | 7,498 | $ | 8,031 | (6.6) | % |
Nine Months Ended September 30, | |||||||||||||||||
(in millions, except percentages) | 2020 | 2019 | % Change | ||||||||||||||
North America | $ | 600 | $ | 1,035 | (42.0) | % | |||||||||||
Europe | 277 | 371 | (25.3) | % | |||||||||||||
South America | 222 | 255 | (12.9) | % | |||||||||||||
Rest of World | 319 | 400 | (20.3) | % | |||||||||||||
Total | $ | 1,418 | $ | 2,061 | (31.2) | % |
Nine Months Ended September 30, | |||||||||||||||||
(in millions, except percentages) | 2020 | 2019 | % Change | ||||||||||||||
North America | $ | 51 | $ | 47 | n.m. | ||||||||||||
Europe | 4,944 | 6,033 | (18.1) | % | |||||||||||||
South America | 371 | 433 | (14.3) | % | |||||||||||||
Rest of World | 765 | 930 | (17.7) | % | |||||||||||||
Total | $ | 6,131 | $ | 7,443 | (17.6) | % |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Consolidated Net Income (Loss) | $ | (625) | $ | 1,334 | |||||||
Less: Consolidated Income tax (expenses) | 78 | 261 | |||||||||
Consolidated Income (Loss) before taxes | $ | (703) | $ | 1,073 | |||||||
Less: Financial Services | |||||||||||
Financial Services Net income | 189 | 268 | |||||||||
Financial Services income taxes | 74 | 101 | |||||||||
Add back of the following Industrial Activities items: | |||||||||||
Interest expenses, net of interest income and eliminations | 181 | 181 | |||||||||
Foreign exchanges (gains) losses, net | 22 | 39 | |||||||||
Finance and non-service components of Pension and other post-employment benefit costs(1) | (85) | (47) | |||||||||
Adjustments for the following Industrial Activities items: | |||||||||||
Restructuring expenses | 19 | 75 | |||||||||
Goodwill impairment change | 585 | — | |||||||||
Other discrete items(2) | 544 | 137 | |||||||||
Nikola investment fair value adjustment | (268) | — | |||||||||
Adjusted EBIT of Industrial Activities | $ | 32 | $ | 1,089 |
Consolidated | Industrial Activities | Financial Services | |||||||||||||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Total Debt | $ | 24,670 | $ | 24,854 | $ | 8,456 | $ | 6,558 | $ | 18,184 | $ | 20,748 |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Industrial Activities | Financial Services | Total | Industrial Activities | Financial Services | Total | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Total Bonds | $ | 5,248 | $ | 3,313 | $ | 8,561 | $ | 5,061 | $ | 2,649 | $ | 7,710 | |||||||||||||||||||||||
Asset-backed debt | — | 10,577 | 10,577 | — | 11,757 | 11,757 | |||||||||||||||||||||||||||||
Other debt | 2,236 | 3,296 | 5,532 | 165 | 5,222 | 5,387 | |||||||||||||||||||||||||||||
Intersegment debt | 972 | 998 | — | 1,332 | 1,120 | — | |||||||||||||||||||||||||||||
Total Debt | $ | 8,456 | $ | 18,184 | $ | 24,670 | $ | 6,558 | $ | 20,748 | $ | 24,854 |
Currency | Face value of outstanding bonds (in millions) | Coupon | Maturity | Outstanding amount ($ millions) | |||||||||||||||||||||||||
Industrial Activities | |||||||||||||||||||||||||||||
Euro Medium Term Notes: | |||||||||||||||||||||||||||||
CNH Industrial Finance Europe S.A. (1) | EUR | 367 | 2.875 | % | September 27, 2021 | 430 | |||||||||||||||||||||||
CNH Industrial Finance Europe S.A. (1) | EUR | 75 | 1.625 | % | March 29, 2022 | 88 | |||||||||||||||||||||||
CNH Industrial Finance Europe S.A. (1) | EUR | 316 | 1.375 | % | May 23, 2022 | 370 | |||||||||||||||||||||||
CNH Industrial Finance Europe S.A. (1) | EUR | 369 | 2.875 | % | May 17, 2023 | 431 | |||||||||||||||||||||||
CNH Industrial Finance Europe S.A. (1) | EUR | 650 | 1.750 | % | September 12, 2025 | 761 | |||||||||||||||||||||||
CNH Industrial Finance Europe S.A. (1) | EUR | 100 | 3.500 | % | November 12, 2025 | 117 | |||||||||||||||||||||||
CNH Industrial Finance Europe S.A. (1) | EUR | 500 | 1.875 | % | January 19, 2026 | 585 | |||||||||||||||||||||||
CNH Industrial Finance Europe S.A. (1) | EUR | 600 | 1.750 | % | March 25, 2027 | 703 | |||||||||||||||||||||||
CNH Industrial Finance Europe S.A. (1) | EUR | 50 | 3.875 | % | April 21, 2028 | 59 | |||||||||||||||||||||||
CNH Industrial Finance Europe S.A. (1) | EUR | 500 | 1.625 | % | July 3, 2029 | 585 | |||||||||||||||||||||||
CNH Industrial Finance Europe S.A. (1) | EUR | 50 | 2.200 | % | July 15, 2039 | 59 | |||||||||||||||||||||||
Other Bonds: | |||||||||||||||||||||||||||||
CNH Industrial N.V. (2) | USD | 600 | 4.500 | % | August 15, 2023 | 600 | |||||||||||||||||||||||
CNH Industrial N.V. (2) | USD | 500 | 3.850 | % | November 15, 2027 | 500 | |||||||||||||||||||||||
Hedging effects, bond premium/discount, and unamortized issuance costs | (40) | ||||||||||||||||||||||||||||
Total Industrial Activities | $ | 5,248 | |||||||||||||||||||||||||||
Financial Services | |||||||||||||||||||||||||||||
CNH Industrial Capital LLC | USD | 600 | 4.375 | % | November 6, 2020 | 600 | |||||||||||||||||||||||
CNH Industrial Capital LLC | USD | 500 | 4.875 | % | April 1, 2021 | 500 | |||||||||||||||||||||||
CNH Industrial Capital ARG | ARS | 701 | 36.000 | % | August 31, 2021 | 9 | |||||||||||||||||||||||
CNH Industrial Capital LLC | USD | 400 | 3.875 | % | October 15, 2021 | 400 | |||||||||||||||||||||||
CNH Industrial Capital LLC | USD | 500 | 4.375 | % | April 5, 2022 | 500 | |||||||||||||||||||||||
CNH Industrial Capital Australia Pty Ltd. | AUD | 175 | 2.100 | % | December 12, 2022 | 125 | |||||||||||||||||||||||
CNH Industrial Capital LLC | USD | 600 | 1.950 | % | July 2, 2023 | 600 | |||||||||||||||||||||||
CNH Industrial Capital ARG | USD | 31 | — | % | August 31, 2023 | 31 | |||||||||||||||||||||||
CNH Industrial Capital LLC | USD | 500 | 4.200 | % | January 15, 2024 | 500 | |||||||||||||||||||||||
Hedging effects, bond premium/discount, and unamortized issuance costs | 48 | ||||||||||||||||||||||||||||
Total Financial Services | $ | 3,313 |
Consolidated | Industrial Activities | Financial Services | |||||||||||||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Third party debt | $ | 24,670 | $ | 24,854 | $ | 7,484 | $ | 5,226 | $ | 17,186 | $ | 19,628 | |||||||||||||||||||||||
Intersegment notes payable | — | — | 972 | 1,332 | 998 | 1,120 | |||||||||||||||||||||||||||||
Total Debt(1) | 24,670 | 24,854 | 8,456 | 6,558 | 18,184 | 20,748 | |||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 6,425 | 4,875 | 5,677 | 4,407 | 748 | 468 | |||||||||||||||||||||||||||||
Restricted cash | 708 | 898 | 87 | 120 | 621 | 778 | |||||||||||||||||||||||||||||
Intersegment notes receivable | — | — | 998 | 1,120 | 972 | 1,332 | |||||||||||||||||||||||||||||
Other current financial assets(2) | 141 | 58 | 141 | 58 | — | — | |||||||||||||||||||||||||||||
Derivatives hedging debt | 9 | (1) | 9 | (1) | — | — | |||||||||||||||||||||||||||||
Net Debt (Cash)(3) | $ | 17,387 | $ | 19,024 | $ | 1,544 | $ | 854 | $ | 15,843 | $ | 18,170 |
(in millions) | 2020 | 2019* | |||||||||
Net (debt)/cash of Industrial Activities at beginning of period | $ | (854) | $ | (599) | |||||||
Adjusted EBIT of Industrial Activities | 32 | 1,089 | |||||||||
Depreciation and amortization | 458 | 492 | |||||||||
Depreciation of assets under operating leases and assets sold with buy-back commitments | 198 | 235 | |||||||||
Cash interest and taxes | (198) | (328) | |||||||||
Changes in provisions and similar(1) | (385) | (366) | |||||||||
Change in working capital | (136) | (2,370) | |||||||||
Operating cash flow of Industrial Activities | (31) | (1,248) | |||||||||
Investments in property, plant and equipment, and intangible assets(2) | (228) | (323) | |||||||||
Other changes | (180) | (119) | |||||||||
Free Cash Flow of Industrial Activities | (439) | (1,690) | |||||||||
Capital increases and dividends(3) | (4) | (325) | |||||||||
Currency translation differences and other | (247) | 244 | |||||||||
Change in Net debt of Industrial Activities | (690) | (1,771) | |||||||||
Net (debt)/cash of Industrial Activities at end of period | $ | (1,544) | $ | (2,370) |
(in millions) | 2020 | 2019* | ||||||||||||
Net cash provided by (used in) Operating Activities | $ | 2,763 | $ | (144) | ||||||||||
Less: Cash flows from Operating Activities of Financial Services net of Eliminations | (2,470) | (705) | ||||||||||||
Change in derivatives hedging debt of Industrial Activities | 9 | 5 | ||||||||||||
Investments in assets sold under but-back commitments and operating lease assets of Industrial Activities | (333) | (404) | ||||||||||||
Operating cash flow of Industrial Activities | (31) | (1,248) | ||||||||||||
Investments in property plant and equipment, and intangible assets of Industrial Activities | (228) | (323) | ||||||||||||
Other changes (1) | (180) | (119) | ||||||||||||
Free Cash Flow of Industrial Activities | $ | (439) | $ | (1,690) |
Cover Page |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q3 |
Entity Registrant Name | CNH Industrial N.V. |
Entity Central Index Key | 0001567094 |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - € / shares |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common shares, par value (in eur per share) | € 0.01 | € 0.01 |
Common shares, shares outstanding (in shares) | 1,351,329,248 | 1,350,132,117 |
Special voting shares, shares outstanding (in shares) | 371,378,230 | 387,951,166 |
Treasury stock, shares (in shares) | 13,070,948 | 14,268,079 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (932) | $ 643 | $ (625) | $ 1,334 |
Other comprehensive income (loss), net of tax | ||||
Unrealized income (loss) on cash flow hedges | 30 | (22) | 87 | (39) |
Changes in retirement plans’ funded status | (15) | (9) | (43) | (23) |
Foreign currency translation | (221) | 31 | (697) | 109 |
Share of other comprehensive income (loss) of entities using the equity method | 12 | (14) | (2) | (17) |
Other comprehensive income (loss), net of tax | (194) | (14) | (655) | 30 |
Comprehensive income (loss) | (1,126) | 629 | (1,280) | 1,364 |
Less: Comprehensive income attributable to noncontrolling interests | 13 | 4 | 33 | 24 |
Comprehensive income (loss) attributable to CNH Industrial N.V. | $ (1,139) | $ 625 | $ (1,313) | $ 1,340 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2020
USD ($)
| |
Statement of Cash Flows [Abstract] | |
Pre-tax gain from remeasurement of investment at fair value | $ 268 |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions |
Total |
Adoption of ASC 326 |
Adjusted Balance |
Common Shares |
Common Shares
Adjusted Balance
|
Treasury Stock |
Treasury Stock
Adjusted Balance
|
Additional Paid-in Capital |
Additional Paid-in Capital
Adjusted Balance
|
Retained Earnings |
Retained Earnings
Adoption of ASC 326
|
Retained Earnings
Adjusted Balance
|
Accumulated Other Comprehensive Income (Loss) |
Accumulated Other Comprehensive Income (Loss)
Adjusted Balance
|
Noncontrolling Interests |
Noncontrolling Interests
Adjusted Balance
|
Redeemable Noncontrolling Interest |
Redeemable Noncontrolling Interest
Adjusted Balance
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2018 | $ 5,068 | $ 25 | $ (128) | $ 4,409 | $ 2,596 | $ (1,859) | $ 25 | |||||||||||
Beginning balance, redeemable noncontrolling interests at Dec. 31, 2018 | $ 30 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income (loss) | 263 | 257 | 6 | |||||||||||||||
Net income (loss), redeemable non controlling interests | 1 | |||||||||||||||||
Other comprehensive income (loss), net of tax | 49 | 47 | 2 | |||||||||||||||
Reclassification of certain tax effects | 0 | 65 | (65) | |||||||||||||||
Dividends paid | 0 | (1) | ||||||||||||||||
Common shares issued from treasury stock and capital increase for share-based compensation | 0 | 6 | (6) | |||||||||||||||
Share-based compensation expense | 9 | 9 | ||||||||||||||||
Other changes | 2 | 3 | (1) | |||||||||||||||
Ending balance at Mar. 31, 2019 | 5,391 | 25 | (122) | 4,415 | 2,918 | (1,877) | 32 | |||||||||||
Ending balance, redeemable noncontrolling interests at Mar. 31, 2019 | 30 | |||||||||||||||||
Beginning balance at Dec. 31, 2018 | 5,068 | 25 | (128) | 4,409 | 2,596 | (1,859) | 25 | |||||||||||
Beginning balance, redeemable noncontrolling interests at Dec. 31, 2018 | 30 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Other comprehensive income (loss), net of tax | 30 | |||||||||||||||||
Reclassification of certain tax effects | (65) | |||||||||||||||||
Ending balance at Sep. 30, 2019 | 6,126 | 25 | (142) | 4,402 | 3,694 | (1,892) | 39 | |||||||||||
Ending balance, redeemable noncontrolling interests at Sep. 30, 2019 | 34 | |||||||||||||||||
Beginning balance at Mar. 31, 2019 | 5,391 | 25 | (122) | 4,415 | 2,918 | (1,877) | 32 | |||||||||||
Beginning balance, redeemable noncontrolling interests at Mar. 31, 2019 | 30 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income (loss) | 422 | 414 | 8 | |||||||||||||||
Net income (loss), redeemable non controlling interests | 5 | |||||||||||||||||
Other comprehensive income (loss), net of tax | (5) | (3) | (2) | |||||||||||||||
Dividends paid | (275) | (275) | (2) | |||||||||||||||
Acquisition of treasury stock | (45) | (45) | ||||||||||||||||
Common shares issued from treasury stock and capital increase for share-based compensation | (2) | 19 | (21) | |||||||||||||||
Share-based compensation expense | 12 | 12 | ||||||||||||||||
Other changes | (9) | (9) | ||||||||||||||||
Ending balance at Jun. 30, 2019 | 5,489 | 25 | (148) | 4,397 | 3,057 | (1,880) | 38 | |||||||||||
Ending balance, redeemable noncontrolling interests at Jun. 30, 2019 | 33 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income (loss) | 640 | 637 | 3 | |||||||||||||||
Net income (loss), redeemable non controlling interests | 3 | |||||||||||||||||
Other comprehensive income (loss), net of tax | (14) | (12) | (2) | |||||||||||||||
Dividends paid | 0 | (2) | ||||||||||||||||
Acquisition of treasury stock | 0 | 0 | ||||||||||||||||
Common shares issued from treasury stock and capital increase for share-based compensation | (1) | 6 | (7) | |||||||||||||||
Share-based compensation expense | 9 | 9 | ||||||||||||||||
Other changes | 3 | 3 | ||||||||||||||||
Ending balance at Sep. 30, 2019 | 6,126 | 25 | (142) | 4,402 | 3,694 | (1,892) | 39 | |||||||||||
Ending balance, redeemable noncontrolling interests at Sep. 30, 2019 | 34 | |||||||||||||||||
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 | $ 35 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income (loss) | (56) | (65) | 9 | |||||||||||||||
Net income (loss), redeemable non controlling interests | 2 | |||||||||||||||||
Other comprehensive income (loss), net of tax | (401) | (399) | (2) | |||||||||||||||
Dividends paid | 0 | (1) | ||||||||||||||||
Decrease in non controlling 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 | $ 35 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Other comprehensive income (loss), net of tax | (655) | |||||||||||||||||
Ending balance at Sep. 30, 2020 | 4,799 | 25 | (140) | 4,397 | 3,115 | (2,657) | 59 | |||||||||||
Ending balance, redeemable noncontrolling interests at Sep. 30, 2020 | 41 | 41 | ||||||||||||||||
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 (loss), 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 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income (loss) | (936) | (942) | 6 | |||||||||||||||
Net income (loss), redeemable non controlling interests | 4 | |||||||||||||||||
Other comprehensive income (loss), net of tax | (194) | (197) | 3 | |||||||||||||||
Dividends paid | 0 | (1) | ||||||||||||||||
Share-based compensation expense | 3 | 3 | ||||||||||||||||
Other changes | 1 | 2 | (1) | |||||||||||||||
Ending balance at Sep. 30, 2020 | 4,799 | $ 25 | $ (140) | $ 4,397 | $ 3,115 | $ (2,657) | $ 59 | |||||||||||
Ending balance, redeemable noncontrolling interests at Sep. 30, 2020 | $ 41 | $ 41 |
BASIS OF PRESENTATION |
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Sep. 30, 2020 | |
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, 2019. 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, Ukraine, and Balkans; •South America: Central and South America, and the Caribbean Islands; and •Rest of World: Continental Asia (including Turkey and Russia), Oceania and member countries of the Commonwealth of Independent States (excluding Ukraine), and African continent and Middle East.
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NEW ACCOUNTING PRONOUNCEMENTS |
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Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS Adopted in 2020 Financial Instruments In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which established ASC 326, Financial Instruments – Credit Losses (ASC 326”). In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses (“ASU 2018-19”), which superseded existing ASU 2016-13. The ASU introduced a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. Additional disclosures about significant estimates and credit quality were also required. The Company adopted ASU 2018-19 on January 1, 2020, using the modified retrospective approach. The impact to the consolidated balance sheet on January 1, 2020 was an increase to the allowance for credit losses of $26 million, a decrease to the investments in non-consolidated affiliates of $17 million and an increase to deferred tax assets of $7 million, with the offset to retained earnings of $36 million. The following paragraphs present the Company’s policy for Allowance for Credit Losses: Allowance for Credit Losses The allowance for credit losses is the Company’s estimate of the lifetime expected credit losses inherent in the trade receivables and financing receivables portfolios owned by the Company. Retail financing receivables that share the same risk characteristics (such as, collateralization levels, geography, product type and other relevant factors) are reviewed on a collective basis using measurement models and management judgment. The allowance for retail credit losses is based on loss forecast models that consider a variety of factors that include, but are not limited to, historical loss experience, collateral value, portfolio balance and delinquency. The loss forecast models are updated on a quarterly basis. The calculation is adjusted for forward looking macroeconomic factors, such as gross domestic product (GDP) and Net Farm Income. The forward-looking macroeconomic factors are updated quarterly. In addition, qualitative factors that are not fully captured in the loss forecast models are considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective and require a degree of management judgment. Wholesale financing receivables and trade receivables that share the same risk characteristics (such as collateralization levels, term, geography and other relevant factors) are reviewed on a collective basis using measurement models and management judgment. The allowances for trade and wholesale credit losses are based on loss forecast models that consider a variety of factors that include, but are not limited to, historical loss experience, collateral value, portfolio balance and delinquency. The loss forecast models are updated on a quarterly basis. The calculation is adjusted for forward looking macroeconomic factors, such as industry sales volumes. The forward-looking macroeconomic factors are updated quarterly. In addition, qualitative factors that are not fully captured in the loss forecast models are considered in the evaluation of the adequacy of the allowances for credit losses. These qualitative factors are subjective and require a degree of management judgment. Wholesale and retail financing receivables and trade receivables that do not have similar risk characteristics are individually reviewed based on, among other items, amounts outstanding, days past due and prior collection history. Expected credit losses are measured by considering: the probability-weighted estimates of cash flows and collateral value; the time value of money; current conditions and forecasts of future economic conditions. Expected credit losses are measured as the probability-weighted present value of all cash shortfalls (including the value of the collateral, if appropriate) over the expected life of each financial asset. Intangibles - Cloud Computing Arrangements In August 2018, the FASB issued ASU No. 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement ("ASU 2018-15"), which expands upon the guidance set forth in ASU 2015-05, Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. ASU 2018-15 aligns the requirements for capitalization of implementation costs in a cloud computing service contract with those requirements for capitalization of implementation costs incurred for an internal-use software license. The Company adopted ASU 2018-15 on a prospective basis on January 1, 2020. The adoption did not have a material impact on our results of operations, financial position and cash flows. Related Party Guidance for Variable Interest Entities In October 2018, the FASB issued ASU No. 2018-17, Targeted Improvements to Related Party Guidance for Variable Interest Entities ("ASU 2018-17"), which expands the application of a specific private company alternative related to VIEs and changes the guidance for determining whether a decision-making fee is a variable interest. Under the new guidance, to determine whether decision-making fees represent a variable interest, an entity considers indirect interests held through related parties under common control on a proportionate basis, rather than in their entirety. The Company adopted ASU 2018-17 on January 1, 2020. The adoption did not have a material impact on our consolidated financial statements. Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which makes targeted changes to standards on credit losses, hedging, and recognizing and measuring financial instruments to clarify them and address implementation issues. The amendments clarify the scope of the credit losses standard and address issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayments, among other things. On recognizing and measuring financial instruments, the amendments address the scope of the guidance, the requirement for remeasurement under ASC 820 when using the measurement alternative, certain disclosure requirements and which equity securities have to be remeasured at historical exchange rates. The Company adopted the amendments related to ASU 2016-13, ASU 2017-12 and ASU 2016-01 at January 1, 2020. The adoption of this standard did not have a material impact on our consolidated financial statements. Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which amends ASC 820, Fair Value Measurement. This ASU modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The removed and modified disclosures were adopted on a retrospective basis and the new disclosures were adopted on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements. Not Yet Adopted Defined Benefit Plans Disclosure In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General: Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU 2018-14"), which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The guidance is effective for public companies beginning with its annual report for fiscal year 2020. The Company is currently evaluating the impact of adoption of this ASU on its related disclosures. 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. ASU 2019-12 will be effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. The Company is evaluating the impact of the adoption of this standard on its consolidated financial statements. 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 U.S. GAAP to contract modifications, hedging relationships, and other transactions affected by Reference Rate Reform if certain criteria are met. ASU 2020-04 can be adopted beginning as of March 12, 2020 through December 31, 2022 and may be applied as of the beginning of the interim period that includes March 12, 2020 or any date thereafter. The Company has not adopted ASU 2020-04 as of September 30, 2020. ASU 2020-04 is not expected to have a significant impact on the Company's consolidated financial statements.
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REVENUE |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE | REVENUE The following table summarizes revenues for the three and nine months ended September 30, 2020 and 2019:
The following table disaggregates revenues by major source for the three and nine months ended September 30, 2020 and 2019:
Contract liabilities recorded in Other liabilities were $1,207 million and $1,236 million at September 30, 2020 and December 31, 2019, 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 September 30, 2020 and 2019, revenues included $107 million and $118 million, respectively, relating to contract liabilities outstanding at the beginning of each period. During the nine months ended September 30, 2020 and 2019 revenues included $365 million and $415 million respectively, relating to contract liabilities outstanding at the beginning of each period. At September 30, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $1.9 billion ($2.0 billion as of December 31, 2019). The Company expects to recognize revenue on approximately 32% and 77% of the remaining performance obligations over the next 12 and 36 months, respectively (approximately 39% and 84% as of December 31, 2019), with the remaining recognized thereafter.
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VARIABLE INTEREST ENTITIES |
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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.
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EARNINGS PER SHARE |
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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):
(1) For the three and nine months ended September 30, 2020, the assumed exercise of stock-based compensation awards was not considered because the impact would be anti-dilutive. For the three and nine months ended September 30, 2019, no shares were excluded from the computation of diluted earnings per share due to an anti-dilutive impact.
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EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 nine months ended September 30, 2020 and 2019:
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INCOME TAXES |
9 Months Ended |
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Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe effective tax rates for the three months ended September 30, 2020 and 2019 were positive 1.5% and negative 303.8%, respectively. The current period effective tax rate reflects the inability to record tax benefits on pre-tax losses in certain jurisdictions, and the minimal discrete tax benefit related to the pre-tax loss of $1,207 million due to the remeasurement to fair value of the investment in Nikola Corporation, calculated in accordance with the applicable jurisdictional tax laws, the effects of which were partially offset by the impact of net discrete tax benefits. The discrete tax benefits were primarily non-cash and included $82 million related to the recognition of certain deferred tax assets, primarily based on the recent profit history and expected future profitability of consolidated tax reporting groups in certain jurisdictions. The effective tax rate for the three months ended September 30, 2019 was primarily attributable to releasing a significant portion of the valuation allowance previously recorded against the net Italian deferred tax assets, which resulted in a discrete tax benefit of $539 million. The effective tax rates for the nine months ended September 30, 2020 and 2019 were positive 10.6% and negative 24.6%, respectively. The current period effective tax rate reflects the inability to record tax benefits on pre-tax losses in certain jurisdictions and the goodwill impairment related to the Company’s construction segment, the effects of which were partially offset by the minimal discrete tax charge related to the pre-tax gain of $268 million due to the remeasurement to fair value of the investment in Nikola Corporation, calculated in accordance with the applicable jurisdictional tax laws, and the effect of net discrete tax benefits. The discrete tax benefits were primarily non-cash and included $82 million related to the recognition of certain deferred tax assets, largely based on the recent profit history and expected future profitability of consolidated tax reporting groups in certain jurisdictions. The effective tax rate for the nine months ended September 30, 2019 was primarily attributable to releasing a significant portion of the valuation allowance previously recorded against the net Italian deferred tax assets, which resulted in a discrete tax benefit of $539 million. As in all financial reporting periods, the Company assessed the realizability of its various deferred tax assets, which relate to multiple tax jurisdictions in all regions of the world. It is possible assessment changes could occur within the next 12 months, with those changes potentially having a material impact on the Company’s results of operations. The Company is subject to income taxes and, therefore, routinely encounters income tax audits in many tax jurisdictions of the world. As various ongoing audits are concluded, or as the applicable statutes of limitations expire, it is possible the Company’s amount of unrecognized tax benefits could change during the next twelve months. Those changes, however, are not expected to have a material impact on the Company’s results of operations, balance sheet, or cash flows.
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SEGMENT INFORMATION |
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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 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 brands dealers. In addition, Financial Services provides wholesale financing to CNH Industrial brands 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' profitability. Adjusted EBIT of Industrial Activities is defined as net income/(loss) of Industrial Activities before Industrial Activities income taxes, interest expenses net, restructuring expenses, the finance and non-service component of pension and other post-employment benefits costs, foreign exchange gains/(losses) 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 tables summarize selected financial information by segment as well as the reconciliation from consolidated net income (loss) under U.S. GAAP to Adjusted EBIT for the three and nine months ended September 30, 2020 and 2019.
(1)In the three months ended September 30, 2020, this item includes the pre-tax gain of $30 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of a healthcare plan in the U.S.
(1)In the nine months ended September 30, 2020, this item includes the pre-tax gain of $90 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of a healthcare plan in the U.S. (2)In the nine months ended September 30, 2020, this item mainly includes impairment of intangible and other long-lived assets and other optimization charges.
(1)In the three months ended September 30, 2019, this item includes the pre-tax gain of $30 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of a healthcare plan in the U.S. (2)In the three months ended September 30, 2019, this item mainly included other asset optimization charges for $135 million due to actions included in the “Transform2Win” strategy.
(1)In the nine months ended September 30, 2019, this item includes the pre-tax gain of $90 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of a healthcare plan in the U.S. (2)In the nine months ended September 30, 2019, this item mainly included other asset optimization charges for $135 million due to actions included in the “Transform2Win” strategy.
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RECEIVABLES |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RECEIVABLES | RECEIVABLES Financing Receivables, net A summary of financing receivables as of September 30, 2020 and December 31, 2019 is as follows:
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 nine months ended September 30, 2020. 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 September 30, 2020 and December 31, 2019 is as follows (in millions):
The above aging table is not necessarily reflective of the potential credit risk in the portfolio due to payment schedules changes granted by the Company and government stimulus policies benefiting the Company's dealers and end-use customers.
Allowance for credit losses activity for the three and nine months ended September 30, 2020 and 2019 is as follows (in millions):
At September 30, 2020, the allowance for credit losses includes a continued build of reserves primarily due to the expectation of deteriorating credit conditions related to the COVID-19 pandemic. The Company continues to monitor the situation and will update the macroeconomic factors and qualitative factors in future periods, as warranted. The provision for credit losses is included in selling, general, and administrative expenses.
Allowance for credit losses activity for the year ended December 31, 2019 is as follows (in millions):
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 exist about the future ability of the borrower to meet its obligations based on a credit review, the TDR classification is not removed from the receivable. As of September 30, 2020, the Company had 254 retail and finance lease contracts classified as TDRs where a court in North America has determined the concession. The pre-modification value was $8 million and the post-modification value was $7 million. Additionally, the Company had 394 accounts with a balance of $26 million in North America undergoing bankruptcy proceedings where a concession has not yet been determined. As of September 30, 2019, the Company had 284 retail and finance lease contracts classified as TDRs where a court in North America has determined the concession. The pre-modification value was $11 million and the post-modification value was $10 million. Additionally, the Company had 346 accounts with a balance of $15 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 a court based on available assets, subsequent re-defaults are unusual and were not material for retail and finance lease contracts that were modified in a TDR during the previous twelve months ended September 30, 2020 and 2019. As of September 30, 2020 and 2019, the Company had retail and finance lease receivable contracts classified as TDRs in Europe. The pre-modification value was $96 million and $88 million, respectively, and the post-modification value was $89 million and $81 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 September 30, 2020 and 2019. As of September 30, 2020 and 2019, 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 September 30, 2020 and December 31, 2019, the carrying amount of such restricted assets included in financing receivables above are the following (in millions):
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INVENTORIES |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES Inventories as of September 30, 2020 and December 31, 2019 consist of the following:
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LEASES |
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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 $3 million and $4 million in the three months ended September 30, 2020 and 2019, respectively, and $9 million and $12 million in the nine months ended September 30, 2020 and 2019, respectively. For the three and nine months ended September 30, 2020 the Company incurred operating lease expenses of $35 million and $105 million, respectively. For the three and nine months ended September 30, 2019, the Company incurred operating lease expenses of $37 million and $116 million, respectively. At September 30, 2020, the Company has recorded approximately $391 million of right-of-use assets and $388 million of related lease liability included in Other Assets and Other Liabilities, respectively. At September 30, 2020, 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 6.9 years and 3.2%, respectively. During the nine months ended September 30, 2020 and 2019, leased assets obtained in exchange for operating lease obligations were $66 million and $50 million, respectively. The operating cash outflow for amounts included in the measurement of operating lease obligations was $106 million and $116 million as of September 30, 2020 and 2019, respectively. Future minimum lease payments under non-cancellable leases as of September 30, 2020 were as follows:
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. The following table sets out a maturity analysis of operating lease payments, showing the undiscounted lease payments to be received after the reporting date:
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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 $3 million and $4 million in the three months ended September 30, 2020 and 2019, respectively, and $9 million and $12 million in the nine months ended September 30, 2020 and 2019, respectively. For the three and nine months ended September 30, 2020 the Company incurred operating lease expenses of $35 million and $105 million, respectively. For the three and nine months ended September 30, 2019, the Company incurred operating lease expenses of $37 million and $116 million, respectively. At September 30, 2020, the Company has recorded approximately $391 million of right-of-use assets and $388 million of related lease liability included in Other Assets and Other Liabilities, respectively. At September 30, 2020, 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 6.9 years and 3.2%, respectively. During the nine months ended September 30, 2020 and 2019, leased assets obtained in exchange for operating lease obligations were $66 million and $50 million, respectively. The operating cash outflow for amounts included in the measurement of operating lease obligations was $106 million and $116 million as of September 30, 2020 and 2019, respectively. Future minimum lease payments under non-cancellable leases as of September 30, 2020 were as follows:
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. The following table sets out a maturity analysis of operating lease payments, showing the undiscounted lease payments to be received after the reporting date:
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INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES |
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INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES | INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES A summary of investments in unconsolidated subsidiaries and affiliates as of September 30, 2020 and December 31, 2019 is as follows:
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GOODWILL AND OTHER INTANGIBLES |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES Changes in the carrying amount of goodwill for the nine months ended September 30, 2020 are as follows:
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, 2019. At that date, the estimated fair values of the Agriculture, Construction and Financial Services reporting units exceeded the carrying value by approximately 143%, 28%, and 43% respectively. For the Construction reporting unit, CNH Industrial had determined that the goodwill was at risk for impairment going forward should there be a deterioration of projected cash flows of the reporting unit. Refer to Footnote 9 of the Company’s annual report on Form 20-F for the year ended December 31, 2019 for further details. During the second quarter of 2020, the Company considered whether a quantitative interim assessment of goodwill for impairment was required as a result of the significant economic disruption caused by the COVID-19 pandemic. Based on the internal and external sources of information considered through June 30, 2020, including the current and expected future economic and market conditions surrounding the COVID-19 pandemic and its impact on each of the reporting units, industry and market considerations, overall financial performance (both current and projected), as well as the amount by which the fair value of the Company’s reporting units exceeded their respective carrying values at the date of the last quantitative assessment, the Company, as part of the qualitative assessment performed, determined these conditions indicated that it was more likely than not that the carrying value of the Construction reporting unit exceeded its fair value as of June 30, 2020. At June 30, 2020, CNH Industrial completed a quantitative impairment assessment for the Construction reporting unit which resulted in a fair value below carrying value. Based on the assessment, the Company recognized a goodwill impairment charge of $585 million for the Construction reporting unit. As of September 30, 2020 and December 31, 2019, the Company’s other intangible assets and related accumulated amortization consisted of the following:
Finite-lived intangible assets are amortized over their estimated useful lives and tested for impairment if events or changes in circumstances indicate that the asset may be impaired. During the second quarter of 2020, the Company recorded impairment charges of $27 million related to its Construction dealer network and $65 million related to certain software costs in its Agriculture segment. The impairments are included in Cost of goods sold on the Condensed Consolidated Statement of Operations. CNH Industrial recorded amortization expense of $25 million and $28 million for the three months ended September 30, 2020 and 2019, respectively, and $72 million and $82 million for the nine months ended September 30, 2020 and 2019, respectively.
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OTHER LIABILITIES |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER LIABILITIES | OTHER LIABILITIES A summary of Other liabilities as of September 30, 2020 and December 31, 2019 is as follows:
(1)Contract liabilities include $614 million and $657 million at September 30, 2020 and December 31, 2019, 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 nine months ended September 30, 2020 and 2019 for the basic warranty and accruals for campaign programs are as follows:
Restructuring Expense The Company incurred restructuring expenses of $7 million and $19 million during the three and nine months ended September 30, 2020, respectively. The Company incurred restructuring expenses of $42 million and $78 million during the three and nine months ended September 30, 2019, respectively.
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COMMITMENTS AND CONTINGENCIES |
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Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES As a global company with a diverse business portfolio, CNH Industrial is exposed to numerous legal risks, including 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 and environmental claims that arise in the ordinary course of business. 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 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 September 30, 2020 and December 31, 2019, environmental reserves of approximately $31 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: Iveco S.p.A., the Company’s wholly owned subsidiary, and its competitors were subject to an investigation by the European Commission (the “Commission”) into certain business practices in the European Union in relation to M&H trucks. On July 19, 2016, the Commission announced a settlement with Iveco. Following the settlement, CNH Industrial 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. 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 the Group's offices in Europe were visited by investigators in the context of a request for assistance by the public prosecutors of Frankfurt am Main and Turin in relation to alleged noncompliance of two engines produced by FPT Industrial S.p.A., a wholly owned subsidiary of the Company. The Company immediately made itself available to these investigators and is providing its full cooperation to properly address the requests received. Although at the date hereof the Company has no evidence of any wrongdoing, the Company 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 September 30, 2020 and December 31, 2019 totaling of $468 million and $453 million, respectively.
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FINANCIAL INSTRUMENTS |
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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 $7.7 billion and $6.9 billion at September 30, 2020 and December 31, 2019, 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 nine months ended September 30, 2020 and 2019. All of CNH Industrial’s interest rate derivatives outstanding as of September 30, 2020 and December 31, 2019 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 $6.0 billion and $5.5 billion at September 30, 2020 and December 31, 2019, 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 September 30, 2020, the notional amount of hedging instruments directly affected by the reform of benchmark interest rates is $992 million. In the nine months ended September 30, 2020, the COVID-19 pandemic significantly impacted the economic environment. 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 on accumulated other comprehensive income (loss) and net income (loss) during the three and nine months ended September 30, 2020 and 2019 (in millions):
The following table summarizes the activity in accumulated other comprehensive income related to the derivatives held by the Company during the nine months ended September 30, 2020 and 2019:
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):
The fair values of CNH Industrial’s derivatives as of September 30, 2020 and December 31, 2019 in the condensed consolidated balance sheets are recorded as follows:
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 September 30, 2020 and December 31, 2019:
At June 30, 2020, the line item “Investments at fair value through profit & loss” includes the fair value of the approximate 7% 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. During the second quarter of 2020, Nikola completed a business combination with VectoIQ Acquisition Corp., a publicly-traded special purpose acquisition company. Under the terms and conditions of the business combination, the former shareholders of Nikola received 1.901 shares of VectoIQ for every one share held in Nikola and became shareholders of VectoIQ, which, in turn, changed its name to “Nikola Corporation”. The combined company's shares continued listing on NASDAQ under the new ticker symbol “NKLA”. Before the completion of the business combination, CNH Industrial increased its investment in Nikola, that was accounted for using the cost method in the absence of a readily determinable fair value, to $250 million. The market price of Nikola shares as of September 30, 2020 was $20.48, determining a value of $526 million for the 25,661,448 shares held by CNH Industrial through its fully-owned subsidiary Iveco S.p.A. As a consequence, for the three and nine months ended September 30, 2020, the Company recorded a pre-tax loss of $1,207 million ($1,192 million after tax) and a pre-tax gain of $268 million ($265 million after tax), respectively, from the remeasurement at fair value of the investment in Nikola, recorded in the line item “Other, net”. Iveco S.p.A. and Nikola Corporation are jointly developing cab over battery-electric vehicle (“BEV”) and hydrogen fuel cell electric vehicle (“FCEV”) trucks, which will be manufactured through a 50/50 owned joint venture in Europe for distribution in European market and to Nikola for distribution in North America. During 2020, Iveco S.p.A. and Nikola have entered into a series of agreements to establish the joint venture. The operations of the joint venture are expected to commence in the fourth quarter of 2020. 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 are 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 to certain dealer network and software intangible assets. See Note 13 for further details. The following tables present the fair value for nonrecurring Level 3 measurements from impairments as of September 30, 2020 and 2019:
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 September 30, 2020 and December 31, 2019 are as follows:
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.
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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):
The changes, net of tax, in each component of accumulated other comprehensive income (loss) consisted of the following (in millions):
(*) Excluded from the table above is other comprehensive income (loss) allocated to noncontrolling interests of $0 million and $(2) million for the nine months ended September 30, 2020 and 2019, respectively. Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three and nine months ended September 30, 2020 and 2019 consisted of the following:
(*) 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.
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RELATED PARTY INFORMATION |
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RELATED PARTY INFORMATION | RELATED PARTY INFORMATION CNH Industrial’s related parties are primarily EXOR N.V. and the companies that EXOR N.V. controls or has significant influence over, including Fiat Chrysler Automobiles N.V. and its subsidiaries and affiliates (“FCA”) and Ferrari N.V. and its subsidiaries and affiliates (“Ferrari”). As of September 30, 2020, EXOR N.V. held 42.6% 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 September 30, 2020. 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 in Europe. Among other things, EXOR N.V. manages a portfolio that includes investments in FCA and Ferrari. CNH Industrial did not enter into any significant transactions with EXOR N.V. during the three and nine months ended September 30, 2020 and 2019. In connection with the establishment of Fiat Industrial (now CNH Industrial) through the demerger from Fiat (now FCA), 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 FCA 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. FCA subsidiaries provide CNH Industrial with administrative services such as accounting, cash management, 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 sells engines and light commercial vehicles to and purchases engine blocks and other components from FCA subsidiaries. Furthermore, CNH Industrial and FCA may engage in other minor transactions in the ordinary course of business. These transactions with FCA are reflected in the Company’s condensed consolidated financial statements as follows:
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:
At September 30, 2020 and December 31, 2019, CNH Industrial had provided guarantees on commitments of its joint ventures for an amount of $138 million and $145 million, respectively, mainly related to IVECO-OTO MELARA Società Consortile a responsabilità limitata. At September 30, 2020 and December 31, 2019, CNH Industrial had provided guarantees on commitments of its associated company for an amount of $297 million and $276 million, respectively, related to CNH Industrial Capital Europe S.a.S.
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SUBSEQUENT EVENTS |
9 Months Ended |
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Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On October 6, 2020, CNH Industrial Capital LLC completed its previously announced offering of $500 million in aggregate principal amount of 1.875% notes due 2026, with an issue price of 99.761%. On October 29, 2020, CNH Industrial announced that it completed its acquisition of a minority stake in Zasso Group AG, a global specialist in non-chemical weed and invasive plant management solutions using electrical power.
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NEW ACCOUNTING PRONOUNCEMENTS (Policies) |
9 Months Ended |
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Sep. 30, 2020 | |
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, 2019. 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, Ukraine, and Balkans; •South America: Central and South America, and the Caribbean Islands; and •Rest of World: Continental Asia (including Turkey and Russia), Oceania and member countries of the Commonwealth of Independent States (excluding Ukraine), and African continent and Middle East.
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New Accounting Policies Adopted and Not Yet Adopted | Financial Instruments In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which established ASC 326, Financial Instruments – Credit Losses (ASC 326”). In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses (“ASU 2018-19”), which superseded existing ASU 2016-13. The ASU introduced a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. Additional disclosures about significant estimates and credit quality were also required. The Company adopted ASU 2018-19 on January 1, 2020, using the modified retrospective approach. The impact to the consolidated balance sheet on January 1, 2020 was an increase to the allowance for credit losses of $26 million, a decrease to the investments in non-consolidated affiliates of $17 million and an increase to deferred tax assets of $7 million, with the offset to retained earnings of $36 million. The following paragraphs present the Company’s policy for Allowance for Credit Losses: Allowance for Credit Losses The allowance for credit losses is the Company’s estimate of the lifetime expected credit losses inherent in the trade receivables and financing receivables portfolios owned by the Company. Retail financing receivables that share the same risk characteristics (such as, collateralization levels, geography, product type and other relevant factors) are reviewed on a collective basis using measurement models and management judgment. The allowance for retail credit losses is based on loss forecast models that consider a variety of factors that include, but are not limited to, historical loss experience, collateral value, portfolio balance and delinquency. The loss forecast models are updated on a quarterly basis. The calculation is adjusted for forward looking macroeconomic factors, such as gross domestic product (GDP) and Net Farm Income. The forward-looking macroeconomic factors are updated quarterly. In addition, qualitative factors that are not fully captured in the loss forecast models are considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective and require a degree of management judgment. Wholesale financing receivables and trade receivables that share the same risk characteristics (such as collateralization levels, term, geography and other relevant factors) are reviewed on a collective basis using measurement models and management judgment. The allowances for trade and wholesale credit losses are based on loss forecast models that consider a variety of factors that include, but are not limited to, historical loss experience, collateral value, portfolio balance and delinquency. The loss forecast models are updated on a quarterly basis. The calculation is adjusted for forward looking macroeconomic factors, such as industry sales volumes. The forward-looking macroeconomic factors are updated quarterly. In addition, qualitative factors that are not fully captured in the loss forecast models are considered in the evaluation of the adequacy of the allowances for credit losses. These qualitative factors are subjective and require a degree of management judgment. Wholesale and retail financing receivables and trade receivables that do not have similar risk characteristics are individually reviewed based on, among other items, amounts outstanding, days past due and prior collection history. Expected credit losses are measured by considering: the probability-weighted estimates of cash flows and collateral value; the time value of money; current conditions and forecasts of future economic conditions. Expected credit losses are measured as the probability-weighted present value of all cash shortfalls (including the value of the collateral, if appropriate) over the expected life of each financial asset. Intangibles - Cloud Computing Arrangements In August 2018, the FASB issued ASU No. 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement ("ASU 2018-15"), which expands upon the guidance set forth in ASU 2015-05, Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. ASU 2018-15 aligns the requirements for capitalization of implementation costs in a cloud computing service contract with those requirements for capitalization of implementation costs incurred for an internal-use software license. The Company adopted ASU 2018-15 on a prospective basis on January 1, 2020. The adoption did not have a material impact on our results of operations, financial position and cash flows. Related Party Guidance for Variable Interest Entities In October 2018, the FASB issued ASU No. 2018-17, Targeted Improvements to Related Party Guidance for Variable Interest Entities ("ASU 2018-17"), which expands the application of a specific private company alternative related to VIEs and changes the guidance for determining whether a decision-making fee is a variable interest. Under the new guidance, to determine whether decision-making fees represent a variable interest, an entity considers indirect interests held through related parties under common control on a proportionate basis, rather than in their entirety. The Company adopted ASU 2018-17 on January 1, 2020. The adoption did not have a material impact on our consolidated financial statements. Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which makes targeted changes to standards on credit losses, hedging, and recognizing and measuring financial instruments to clarify them and address implementation issues. The amendments clarify the scope of the credit losses standard and address issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayments, among other things. On recognizing and measuring financial instruments, the amendments address the scope of the guidance, the requirement for remeasurement under ASC 820 when using the measurement alternative, certain disclosure requirements and which equity securities have to be remeasured at historical exchange rates. The Company adopted the amendments related to ASU 2016-13, ASU 2017-12 and ASU 2016-01 at January 1, 2020. The adoption of this standard did not have a material impact on our consolidated financial statements. Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which amends ASC 820, Fair Value Measurement. This ASU modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The removed and modified disclosures were adopted on a retrospective basis and the new disclosures were adopted on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements. Not Yet Adopted Defined Benefit Plans Disclosure In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General: Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU 2018-14"), which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The guidance is effective for public companies beginning with its annual report for fiscal year 2020. The Company is currently evaluating the impact of adoption of this ASU on its related disclosures. 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. ASU 2019-12 will be effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. The Company is evaluating the impact of the adoption of this standard on its consolidated financial statements. 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 U.S. GAAP to contract modifications, hedging relationships, and other transactions affected by Reference Rate Reform if certain criteria are met. ASU 2020-04 can be adopted beginning as of March 12, 2020 through December 31, 2022 and may be applied as of the beginning of the interim period that includes March 12, 2020 or any date thereafter. The Company has not adopted ASU 2020-04 as of September 30, 2020. ASU 2020-04 is not expected to have a significant impact on the Company's consolidated financial statements.
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REVENUE (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Disaggregation of Revenue by Segment and Source | The following table summarizes revenues for the three and nine months ended September 30, 2020 and 2019:
The following table disaggregates revenues by major source for the three and nine months ended September 30, 2020 and 2019:
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VARIABLE INTEREST ENTITIES (Tables) |
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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.
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EARNINGS PER SHARE (Tables) |
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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):
(1) For the three and nine months ended September 30, 2020, the assumed exercise of stock-based compensation awards was not considered because the impact would be anti-dilutive. For the three and nine months ended September 30, 2019, no shares were excluded from the computation of diluted earnings per share due to an anti-dilutive impact.
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EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS (Tables) |
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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 nine months ended September 30, 2020 and 2019:
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SEGMENT INFORMATION (Tables) |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Financial Information by Segment | The following tables summarize selected financial information by segment as well as the reconciliation from consolidated net income (loss) under U.S. GAAP to Adjusted EBIT for the three and nine months ended September 30, 2020 and 2019.
(1)In the three months ended September 30, 2020, this item includes the pre-tax gain of $30 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of a healthcare plan in the U.S.
(1)In the nine months ended September 30, 2020, this item includes the pre-tax gain of $90 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of a healthcare plan in the U.S. (2)In the nine months ended September 30, 2020, this item mainly includes impairment of intangible and other long-lived assets and other optimization charges.
(1)In the three months ended September 30, 2019, this item includes the pre-tax gain of $30 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of a healthcare plan in the U.S. (2)In the three months ended September 30, 2019, this item mainly included other asset optimization charges for $135 million due to actions included in the “Transform2Win” strategy.
(1)In the nine months ended September 30, 2019, this item includes the pre-tax gain of $90 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of a healthcare plan in the U.S. (2)In the nine months ended September 30, 2019, this item mainly included other asset optimization charges for $135 million due to actions included in the “Transform2Win” strategy.
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RECEIVABLES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Financing Receivables | A summary of financing receivables as of September 30, 2020 and December 31, 2019 is as follows:
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Summary of Aging of Financing Receivables | The aging of financing receivables as of September 30, 2020 and December 31, 2019 is as follows (in millions):
The above aging table is not necessarily reflective of the potential credit risk in the portfolio due to payment schedules changes granted by the Company and government stimulus policies benefiting the Company's dealers and end-use customers.
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Summary of Allowance for Credit Loss Activity | Allowance for credit losses activity for the three and nine months ended September 30, 2020 and 2019 is as follows (in millions):
At September 30, 2020, the allowance for credit losses includes a continued build of reserves primarily due to the expectation of deteriorating credit conditions related to the COVID-19 pandemic. The Company continues to monitor the situation and will update the macroeconomic factors and qualitative factors in future periods, as warranted. The provision for credit losses is included in selling, general, and administrative expenses.
Allowance for credit losses activity for the year ended December 31, 2019 is as follows (in millions):
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Summary of Carrying Amount of Restricted Assets | At September 30, 2020 and December 31, 2019, the carrying amount of such restricted assets included in financing receivables above are the following (in millions):
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INVENTORIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Inventories | Inventories as of September 30, 2020 and December 31, 2019 consist of the following:
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LEASES (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Lease Payments Under Operating Leases and Payments to be Received | Future minimum lease payments under non-cancellable leases as of September 30, 2020 were as follows:
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Schedule of Undiscounted Lease Payments to be Received | The following table sets out a maturity analysis of operating lease payments, showing the undiscounted lease payments to be received after the reporting date:
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INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 September 30, 2020 and December 31, 2019 is as follows:
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GOODWILL AND OTHER INTANGIBLES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the nine months ended September 30, 2020 are as follows:
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Summary of Other Intangible Assets | As of September 30, 2020 and December 31, 2019, the Company’s other intangible assets and related accumulated amortization consisted of the following:
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OTHER LIABILITIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Other Liabilities | A summary of Other liabilities as of September 30, 2020 and December 31, 2019 is as follows:
(1)Contract liabilities include $614 million and $657 million at September 30, 2020 and December 31, 2019, respectively, for future rents related to buy-back agreements.
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Summary of Basic Warranty and Accruals for Campaign Programs | A summary of recorded activity for the three and nine months ended September 30, 2020 and 2019 for the basic warranty and accruals for campaign programs are as follows:
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FINANCIAL INSTRUMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 on accumulated other comprehensive income (loss) and net income (loss) during the three and nine months ended September 30, 2020 and 2019 (in millions):
Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three and nine months ended September 30, 2020 and 2019 consisted of the following:
(*) 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.
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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 nine months ended September 30, 2020 and 2019:
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):
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Summary of Fair Value of Derivatives | The fair values of CNH Industrial’s derivatives as of September 30, 2020 and December 31, 2019 in the condensed consolidated balance sheets are recorded as follows:
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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 September 30, 2020 and December 31, 2019:
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Summary of Investments Measured on Nonrecurring Basis | The following tables present the fair value for nonrecurring Level 3 measurements from impairments as of September 30, 2020 and 2019:
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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 September 30, 2020 and December 31, 2019 are as follows:
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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):
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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):
(*) Excluded from the table above is other comprehensive income (loss) allocated to noncontrolling interests of $0 million and $(2) million for the nine months ended September 30, 2020 and 2019, respectively.
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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 on accumulated other comprehensive income (loss) and net income (loss) during the three and nine months ended September 30, 2020 and 2019 (in millions):
Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three and nine months ended September 30, 2020 and 2019 consisted of the following:
(*) 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.
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RELATED PARTY INFORMATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Related Party Transactions | These transactions with FCA are reflected in the Company’s condensed consolidated financial statements as follows:
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NEW ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Jan. 01, 2020 |
Dec. 31, 2019 |
---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Investments in unconsolidated subsidiaries and affiliates | $ 508 | $ 631 | |
Deferred tax assets | 1,433 | 1,134 | |
Decrease in retained earnings | $ (3,115) | $ (3,808) | |
Cumulative Effect, Period of Adoption, Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for credit losses | $ 26 | ||
Investments in unconsolidated subsidiaries and affiliates | 17 | ||
Deferred tax assets | 7 | ||
Decrease in retained earnings | $ 36 |
REVENUE - Summary of Net Revenues (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
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Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | $ 6,107 | $ 5,892 | $ 16,250 | $ 18,966 |
Total Revenues | 6,492 | 6,360 | 17,531 | 20,384 |
Industrial Activities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 6,107 | 5,892 | 16,250 | 18,966 |
Industrial Activities | Operating segments | Agriculture | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 2,713 | 2,446 | 7,498 | 8,031 |
Industrial Activities | Operating segments | Construction | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 576 | 664 | 1,418 | 2,061 |
Industrial Activities | Operating segments | Commercial and Specialty Vehicles | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 2,371 | 2,331 | 6,131 | 7,443 |
Industrial Activities | Operating segments | Powertrain | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 909 | 940 | 2,425 | 3,109 |
Industrial Activities | Eliminations and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | (462) | (489) | (1,222) | (1,678) |
Financial Services | Operating segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 408 | 487 | 1,338 | 1,480 |
Financial Services | Eliminations and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ (23) | $ (19) | $ (57) | $ (62) |
REVENUE - Disaggregation of Net Revenues by Major Source (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
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Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | $ 6,107 | $ 5,892 | $ 16,250 | $ 18,966 |
Finance and interest income | 228 | 290 | 755 | 869 |
Rents and other income on operating lease | 157 | 178 | 526 | 549 |
Finance, interest and other income | 385 | 468 | 1,281 | 1,418 |
Total Revenues | 6,492 | 6,360 | 17,531 | 20,384 |
Sales of goods | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 5,874 | 5,603 | 15,575 | 18,168 |
Rendering of services and other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | 158 | 196 | 440 | 500 |
Rents on assets sold with a buy-back commitment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from sales of goods and services | $ 75 | $ 93 | $ 235 | $ 298 |
REVENUE - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
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Revenue from Contract with Customer [Abstract] | |||||
Contract liabilities | $ 1,207 | $ 1,207 | $ 1,236 | ||
Revenues relating to contract liabilities outstanding | 107 | $ 118 | 365 | $ 415 | |
Transaction price allocated to remaining performance obligations | $ 1,900 | $ 1,900 | $ 2,000 |
REVENUE - Performance Obligation (Details) |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of revenue recognized on remaining performance obligation | 39.00% | |
Revenue over the remaining lives of the contracts | 12 months | |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | ||
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 | |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of revenue recognized on remaining performance obligation | 84.00% | |
Revenue over the remaining lives of the contracts | 36 months | |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | ||
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 |
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Restricted cash | $ 708 | $ 898 |
Financing receivables, net | 17,098 | 19,428 |
Total Assets | 45,069 | 47,352 |
Debt | 24,670 | 24,854 |
Total Liabilities | 40,229 | 41,196 |
Variable interest entities | ||
Variable Interest Entity [Line Items] | ||
Restricted cash | 581 | 739 |
Financing receivables, net | 8,176 | 9,026 |
Total Assets | 8,757 | 9,765 |
Debt | 8,076 | 9,011 |
Total Liabilities | $ 8,076 | $ 9,011 |
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
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Basic: | ||||
Net income (loss) attributable to CNH Industrial | $ (942) | $ 637 | $ (657) | $ 1,308 |
Weighted average common shares outstanding—basic (in shares) | 1,351,000,000 | 1,351,000,000 | 1,351,000,000 | 1,353,000,000 |
Basic earnings (loss) per share (in usd per share) | $ (0.70) | $ 0.47 | $ (0.49) | $ 0.97 |
Diluted: | ||||
Net income (loss) attributable to CNH Industrial | $ (942) | $ 637 | $ (657) | $ 1,308 |
Weighted average common shares outstanding—basic (in shares) | 1,351,000,000 | 1,351,000,000 | 1,351,000,000 | 1,353,000,000 |
Effect of dilutive securities (when dilutive): | ||||
Stock compensation plans (in shares) | 0 | 1,000,000 | 0 | 2,000,000 |
Weighted average common shares outstanding—diluted (in shares) | 1,351,000,000 | 1,352,000,000 | 1,351,000,000 | 1,355,000,000 |
Diluted earnings (loss) per share (in usd per share) | $ (0.70) | $ 0.47 | $ (0.49) | $ 0.97 |
Antidilutive securities excluded from EPS computation (in shares) | 0 | 0 |
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
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Pension | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 5 | $ 5 | $ 16 | $ 17 |
Interest cost | 11 | 19 | 34 | 57 |
Expected return on assets | (20) | (26) | (62) | (76) |
Amortization of: | ||||
Prior service credit | 0 | 1 | 0 | 1 |
Actuarial loss | 11 | 17 | 31 | 51 |
Net periodic benefit cost | 7 | 16 | 19 | 50 |
Healthcare | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 1 | 1 | 3 | 4 |
Interest cost | 3 | 3 | 8 | 11 |
Expected return on assets | (2) | (2) | (5) | (6) |
Amortization of: | ||||
Prior service credit | (33) | (33) | (98) | (93) |
Actuarial loss | 1 | 1 | 2 | 1 |
Net periodic benefit cost | (30) | (30) | (90) | (83) |
Other | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 4 | 4 | 12 | 10 |
Interest cost | 0 | 0 | 1 | 2 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of: | ||||
Prior service credit | 0 | 0 | 0 | 1 |
Actuarial loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 4 | $ 4 | $ 13 | $ 13 |
EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
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Postemployment Benefits [Abstract] | ||||
Reduction of plan liability | $ 527 | $ 527 | $ 527 | $ 527 |
Amortization period of retirement benefits payable | 4 years 6 months | 4 years 6 months | 4 years 6 months | 4 years 6 months |
Benefits modification amortization | $ 30 | $ 30 | $ 90 | $ 90 |
INCOME TAXES (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 1.50% | (303.80%) | 10.60% | (24.60%) |
Discrete tax benefit (charges) related to pre-tax loss (gain) from remeasurement of unconsolidated entities to fair value | $ 1,207 | $ (268) | ||
Discrete tax benefit from release of valuation allowance and recognition of certain deferred tax assets | $ 82 | $ 539 | $ 82 | $ 539 |
SEGMENT INFORMATION - Additional Information (Details) |
9 Months Ended |
---|---|
Sep. 30, 2020
segment
| |
Segment Reporting [Abstract] | |
Number of segments (in segments) | 5 |
SEGMENT INFORMATION - Reconciliation from Net Income Under US GAAP To Adjusted EBIT and Adjusted EBITDA (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Segment Reporting Information [Line Items] | ||||
Net income (loss) | $ (932) | $ 643 | $ (625) | $ 1,334 |
Income tax (expense) benefit | 15 | 486 | 78 | 261 |
Consolidated income (loss) before taxes | (947) | 157 | (703) | 1,073 |
Adjustments [Abstract] | ||||
Restructuring expenses | 7 | 42 | 19 | 78 |
Goodwill impairment charge | 0 | 0 | 585 | 0 |
Benefits modification amortization | $ 30 | $ 30 | $ 90 | $ 90 |
Amortization period of retirement benefits payable | 4 years 6 months | 4 years 6 months | 4 years 6 months | 4 years 6 months |
Reduction of plan liability | $ 527 | $ 527 | $ 527 | $ 527 |
Other asset optimization charges | 135 | 135 | ||
Industrial Activities | Operating segments | ||||
Add back of the following Industrial Activities items: | ||||
Interest expenses, net of interest income and eliminations | 63 | 62 | 181 | 181 |
Foreign exchanges (gains) losses, net | 17 | 19 | 22 | 39 |
Finance and non-service component of Pension and OPEB costs | (29) | (16) | (85) | (47) |
Adjustments [Abstract] | ||||
Restructuring expenses | 7 | 41 | 19 | 75 |
Goodwill impairment charge | 585 | |||
Other discrete items | 137 | 544 | 137 | |
Nikola investment fair value adjustment | 1,207 | (268) | ||
Adjusted EBIT of Industrial Activities | 238 | 284 | 32 | 1,089 |
Industrial Activities | Unallocated items, eliminations and other | ||||
Adjustments [Abstract] | ||||
Restructuring expenses | 0 | 0 | 0 | 1 |
Goodwill impairment charge | 585 | |||
Other discrete items | 2 | 7 | 2 | |
Nikola investment fair value adjustment | 1,207 | (268) | ||
Adjusted EBIT of Industrial Activities | (65) | (29) | (179) | 120 |
Agriculture | Operating segments | ||||
Adjustments [Abstract] | ||||
Restructuring expenses | 2 | 9 | 9 | 27 |
Goodwill impairment charge | 0 | |||
Other discrete items | 0 | 176 | 0 | |
Nikola investment fair value adjustment | 0 | 0 | ||
Adjusted EBIT of Industrial Activities | 274 | 152 | 501 | 661 |
Construction | Operating segments | ||||
Adjustments [Abstract] | ||||
Restructuring expenses | 3 | 18 | 5 | 22 |
Goodwill impairment charge | 0 | |||
Other discrete items | 0 | 72 | 0 | |
Nikola investment fair value adjustment | 0 | 0 | ||
Adjusted EBIT of Industrial Activities | (24) | 10 | (194) | 48 |
Commercial and Specialty Vehicles | Operating segments | ||||
Adjustments [Abstract] | ||||
Restructuring expenses | 1 | 9 | 4 | 20 |
Goodwill impairment charge | 0 | |||
Other discrete items | 135 | 289 | 135 | |
Nikola investment fair value adjustment | 0 | 0 | ||
Adjusted EBIT of Industrial Activities | (7) | 70 | (219) | 221 |
Powertrain | Operating segments | ||||
Adjustments [Abstract] | ||||
Restructuring expenses | 1 | 5 | 1 | 5 |
Goodwill impairment charge | 0 | |||
Other discrete items | 0 | 0 | 0 | |
Nikola investment fair value adjustment | 0 | 0 | ||
Adjusted EBIT of Industrial Activities | 60 | 81 | 123 | 279 |
Financial Services | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | 56 | 82 | 189 | 268 |
Income tax (expense) benefit | $ (24) | $ (34) | $ (74) | $ (101) |
RECEIVABLES - Summary of Financing Receivables (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | $ 17,098 | $ 19,428 |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | 8,820 | 9,218 |
Wholesale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | 8,205 | 10,081 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net | $ 73 | $ 129 |
RECEIVABLES - Additional Information (Details) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2020
USD ($)
contract
account
|
Sep. 30, 2019
USD ($)
contract
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Contractual payments period | 30 days | |
Receivables delinquency period | 90 days | |
Number of accounts receivable undergoing bankruptcy proceedings (in contracts) | contract | 346 | |
Amount of accounts receivable undergoing bankruptcy proceedings | $ 15 | |
North America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance lease, contracts (in contracts) | contract | 254 | 284 |
Pre-modification value of retail and finance lease receivable contracts | $ 8 | $ 11 |
Post-modification value of retail and finance lease receivable contracts | $ 7 | 10 |
Number of accounts receivable undergoing bankruptcy proceedings (in contracts) | account | 394 | |
Amount of accounts receivable undergoing bankruptcy proceedings | $ 26 | |
Europe | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Pre-modification value of retail and finance lease receivable contracts | 96 | 88 |
Post-modification value of retail and finance lease receivable contracts | $ 89 | $ 81 |
RECEIVABLES - Summary of Aging of Receivables (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 53 | $ 51 |
Current | 8,718 | 9,133 |
Total | 8,820 | 9,218 |
Retail | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 8,771 | 9,184 |
Retail | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 49 | 34 |
Retail | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
2020 | 1,903 | |
2019 | 1,800 | |
2018 | 1,201 | |
2017 | 656 | |
2016 | 344 | |
Prior to 2016 | 152 | |
Total Past Due | 42 | 28 |
Current | 5,998 | 6,123 |
Total | 6,056 | 6,167 |
Retail | North America | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
2020 | 1,902 | |
2019 | 1,795 | |
2018 | 1,198 | |
2017 | 653 | |
2016 | 342 | |
Prior to 2016 | 150 | |
Total | 6,040 | 6,151 |
Retail | North America | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
2020 | 1 | |
2019 | 5 | |
2018 | 3 | |
2017 | 3 | |
2016 | 2 | |
Prior to 2016 | 2 | |
Total | 16 | 16 |
Retail | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
2020 | 584 | |
2019 | 453 | |
2018 | 303 | |
2017 | 169 | |
2016 | 86 | |
Prior to 2016 | 71 | |
Total Past Due | 6 | 17 |
Current | 1,629 | 1,974 |
Total | 1,666 | 2,009 |
Retail | South America | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
2020 | 583 | |
2019 | 444 | |
2018 | 294 | |
2017 | 164 | |
2016 | 83 | |
Prior to 2016 | 67 | |
Total | 1,635 | 1,991 |
Retail | South America | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
2020 | 1 | |
2019 | 9 | |
2018 | 9 | |
2017 | 5 | |
2016 | 3 | |
Prior to 2016 | 4 | |
Total | 31 | 18 |
Retail | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
2020 | 369 | |
2019 | 264 | |
2018 | 195 | |
2017 | 122 | |
2016 | 44 | |
Prior to 2016 | 3 | |
Total Past Due | 5 | 6 |
Current | 990 | 900 |
Total | 997 | 906 |
Retail | Rest of World | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
2020 | 369 | |
2019 | 263 | |
2018 | 195 | |
2017 | 121 | |
2016 | 44 | |
Prior to 2016 | 3 | |
Total | 995 | 906 |
Retail | Rest of World | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
2020 | 0 | |
2019 | 1 | |
2018 | 0 | |
2017 | 1 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 2 | 0 |
Retail | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 101 | 136 |
Total | 101 | 136 |
Retail | Europe | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 101 | 136 |
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 | 49 | 36 |
Retail | 31-60 Days Past Due | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 40 | 24 |
Retail | 31-60 Days Past Due | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5 | 9 |
Retail | 31-60 Days Past Due | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4 | 3 |
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 | 4 | 7 |
Retail | 61-90 Days Past Due | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2 | 4 |
Retail | 61-90 Days Past Due | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | 2 |
Retail | 61-90 Days Past Due | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | 1 |
Retail | 61-90 Days Past Due | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Retail | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 8 | |
Retail | Greater Than 90 Days | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | |
Retail | Greater Than 90 Days | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6 | |
Retail | Greater Than 90 Days | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2 | |
Retail | Greater Than 90 Days | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | |
Wholesale | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 14 | 57 |
Current | 8,124 | 9,943 |
Total | 8,205 | 10,081 |
Wholesale | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 8,138 | 10,000 |
Wholesale | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 67 | 81 |
Wholesale | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 2,956 | 3,641 |
Total | 2,985 | 3,667 |
Wholesale | North America | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2,956 | 3,641 |
Wholesale | North America | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 29 | 26 |
Wholesale | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 3 |
Current | 511 | 829 |
Total | 547 | 887 |
Wholesale | South America | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 511 | 832 |
Wholesale | South America | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 36 | 55 |
Wholesale | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2 | 14 |
Current | 538 | 616 |
Total | 542 | 630 |
Wholesale | Rest of World | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 540 | 630 |
Wholesale | Rest of World | Non- Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2 | 0 |
Wholesale | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 12 | 40 |
Current | 4,119 | 4,857 |
Total | 4,131 | 4,897 |
Wholesale | Europe | Total Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 4,131 | 4,897 |
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 | 13 | 31 |
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 | 2 |
Wholesale | 31-60 Days Past Due | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | 5 |
Wholesale | 31-60 Days Past Due | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 12 | 24 |
Wholesale | 61-90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | 12 |
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 | 1 | 3 |
Wholesale | 61-90 Days Past Due | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 0 | 9 |
Wholesale | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 14 | |
Wholesale | Greater Than 90 Days | North America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | |
Wholesale | Greater Than 90 Days | South America | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | |
Wholesale | Greater Than 90 Days | Rest of World | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6 | |
Wholesale | Greater Than 90 Days | Europe | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 7 |
RECEIVABLES - Allowance for Credit Losses Activity (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Retail | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Opening balance | $ 326 | $ 319 | $ 299 | $ 326 | $ 326 |
Provision | 28 | 11 | 82 | 34 | 44 |
Charge-offs, net of recoveries | (18) | (17) | (62) | (44) | (51) |
Foreign currency translation and other | 3 | (18) | (15) | (21) | (20) |
Ending balance | 339 | 295 | 339 | 295 | 299 |
Retail | Adoption of ASC 326 | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Opening balance | 35 | ||||
Ending balance | 35 | ||||
Retail | Adjusted Balance | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Opening balance | 334 | ||||
Ending balance | 334 | ||||
Wholesale | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Opening balance | 159 | 158 | 159 | 164 | 164 |
Provision | 6 | 2 | 23 | 3 | 12 |
Charge-offs, net of recoveries | (4) | (2) | (5) | (8) | (18) |
Foreign currency translation and other | 6 | (3) | (1) | (4) | 1 |
Ending balance | $ 167 | $ 155 | 167 | $ 155 | 159 |
Wholesale | Adoption of ASC 326 | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Opening balance | (9) | ||||
Ending balance | (9) | ||||
Wholesale | Adjusted Balance | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Opening balance | $ 150 | ||||
Ending balance | $ 150 |
RECEIVABLES - Carrying Amount of Receivables (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Restricted Receivables | $ 11,535 | $ 13,606 |
Retail note and finance lease receivables | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Restricted Receivables | 5,596 | 6,340 |
Wholesale | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Restricted Receivables | $ 5,939 | $ 7,266 |
INVENTORIES (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,561 | $ 1,332 |
Work-in-process | 808 | 612 |
Finished goods | 4,375 | 5,138 |
Total inventories | $ 6,744 | $ 7,082 |
LEASES - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Leases [Abstract] | |||||
Short-term lease expenses | $ 3 | $ 4 | $ 9 | $ 12 | |
Operating lease expenses | 35 | $ 37 | 105 | 116 | |
Operating lease right-of-use assets | 391 | 391 | |||
Operating lease liabilities | $ 388 | $ 388 | $ 449 | ||
Weighted average remaining lease term | 6 years 10 months 24 days | 6 years 10 months 24 days | |||
Weighted average discount rate | 3.20% | 3.20% | |||
Leased assets obtained in exchange for operating lease obligations | $ 66 | 50 | |||
Operating cash outflow for amounts included in the measurement of operating lease obligations | $ 106 | $ 116 | |||
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 |
LEASES - Schedule of Future Minimum Lease Payments Under Operating Leases (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Operating Lease Liabilities, Payments Due [Abstract] | ||
2020 (excluding the nine months ended September 30, 2020) | $ 30 | |
2021 | 105 | |
2022 | 76 | |
2023 | 59 | |
2024 | 41 | |
2025 and thereafter | 120 | |
Total future minimum lease payments | 431 | |
Less: Interest | 43 | |
Operating lease liabilities | $ 388 | $ 449 |
LEASES - Schedule of Future Minimum Lease Payments to be Received (Details) $ in Millions |
Sep. 30, 2020
USD ($)
|
---|---|
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |
2020 | $ 200 |
2021 | 149 |
2022 | 82 |
2023 | 30 |
2024 | 8 |
2025 and thereafter | 3 |
Total undiscounted lease payments | $ 472 |
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES - Summary of Investments in Unconsolidated Subsidiaries and Affiliates (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Equity Method Investments and Joint Ventures [Abstract] | ||
Equity method | $ 499 | $ 513 |
Cost method | 9 | 118 |
Total | $ 508 | $ 631 |
GOODWILL AND OTHER INTANGIBLES - Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Goodwill [Roll Forward] | |||||
Balance at beginning | $ 2,538 | ||||
Decrease | (14) | ||||
Foreign currency translation and other | (3) | ||||
Goodwill impairment charge | $ 0 | $ 0 | (585) | $ 0 | |
Balance at ending | 1,936 | 1,936 | |||
Agriculture | |||||
Goodwill [Roll Forward] | |||||
Balance at beginning | 1,732 | ||||
Decrease | (14) | ||||
Foreign currency translation and other | (3) | ||||
Goodwill impairment charge | 0 | ||||
Balance at ending | 1,715 | 1,715 | |||
Construction | |||||
Goodwill [Roll Forward] | |||||
Balance at beginning | 587 | ||||
Decrease | 0 | ||||
Foreign currency translation and other | (2) | ||||
Goodwill impairment charge | $ (585) | (585) | |||
Balance at ending | 0 | 0 | |||
Commercial and Specialty Vehicles | |||||
Goodwill [Roll Forward] | |||||
Balance at beginning | 59 | ||||
Decrease | 0 | ||||
Foreign currency translation and other | 2 | ||||
Goodwill impairment charge | 0 | ||||
Balance at ending | 61 | 61 | |||
Powertrain | |||||
Goodwill [Roll Forward] | |||||
Balance at beginning | 5 | ||||
Decrease | 0 | ||||
Foreign currency translation and other | 0 | ||||
Goodwill impairment charge | 0 | ||||
Balance at ending | 5 | 5 | |||
Financial Services | |||||
Goodwill [Roll Forward] | |||||
Balance at beginning | 155 | ||||
Decrease | 0 | ||||
Foreign currency translation and other | 0 | ||||
Goodwill impairment charge | 0 | ||||
Balance at ending | $ 155 | $ 155 |
GOODWILL AND OTHER INTANGIBLES - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Goodwill [Line Items] | ||||||
Goodwill impairment charge | $ 0 | $ 0 | $ 585 | $ 0 | ||
Amortization expense | $ 25 | $ 28 | 72 | $ 82 | ||
Agriculture | ||||||
Goodwill [Line Items] | ||||||
Impairment of intangible assets | $ 65 | |||||
Dealer networks | ||||||
Goodwill [Line Items] | ||||||
Impairment of intangible assets | 27 | |||||
Agriculture | ||||||
Goodwill [Line Items] | ||||||
Percentage of fair value in excess of carrying value | 143.00% | |||||
Goodwill impairment charge | 0 | |||||
Construction | ||||||
Goodwill [Line Items] | ||||||
Percentage of fair value in excess of carrying value | 28.00% | |||||
Goodwill impairment charge | $ 585 | 585 | ||||
Commercial and Specialty Vehicles | ||||||
Goodwill [Line Items] | ||||||
Percentage of fair value in excess of carrying value | 43.00% | |||||
Goodwill impairment charge | $ 0 |
GOODWILL AND OTHER INTANGIBLES - Other Intangible Assets and Related Accumulated Amortization (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, gross | $ 2,282 | $ 2,285 |
Other intangible assets subject to amortization, accumulated amortization | 1,835 | 1,752 |
Other intangible assets subject to amortization, net | 447 | 533 |
Other intangible assets not subject to amortization | 273 | 273 |
Total other intangible assets, gross | 2,555 | 2,558 |
Total other intangible assets, net | $ 720 | 806 |
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 | $ 305 | 320 |
Other intangible assets subject to amortization, accumulated amortization | 234 | 224 |
Other intangible assets subject to amortization, net | 71 | 96 |
Patents, concessions, and licenses and other | ||
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Other intangible assets subject to amortization, gross | 1,977 | 1,965 |
Other intangible assets subject to amortization, accumulated amortization | 1,601 | 1,528 |
Other intangible assets subject to amortization, net | $ 376 | $ 437 |
Patents, concessions, and 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, and 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 (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Jun. 30, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|---|---|
Other Liabilities Disclosure [Abstract] | ||||||
Repurchase price on buy-back agreements | $ 1,235 | $ 1,472 | ||||
Warranty and campaign programs | 932 | $ 903 | 919 | $ 891 | $ 941 | $ 925 |
Marketing and sales incentive programs | 1,244 | 1,279 | ||||
Tax payables | 601 | 696 | ||||
Accrued expenses and deferred income | 652 | 639 | ||||
Accrued employee benefits | 672 | 562 | ||||
Lease liabilities | 388 | 449 | ||||
Legal reserves and other provisions | 331 | 299 | ||||
Contract reserve | 362 | 319 | ||||
Contract liabilities | 1,207 | 1,236 | ||||
Restructuring reserve | 67 | 103 | ||||
Other | 1,005 | 866 | ||||
Total | 8,696 | 8,839 | ||||
Future rents related to buy-back agreements | $ 614 | $ 657 |
OTHER LIABILITIES - Summary of Recorded Activity for Basic Warranty and Accruals for Campaign Programs (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||||
Balance at beginning of period | $ 903 | $ 941 | $ 919 | $ 925 |
Current year additions | 180 | 162 | 522 | 566 |
Claims paid | (171) | (170) | (493) | (553) |
Currency translation adjustment and other | 20 | (42) | (16) | (47) |
Balance at end of period | $ 932 | $ 891 | $ 932 | $ 891 |
OTHER LIABILITIES - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Other Liabilities [Abstract] | ||||
Restructuring expenses | $ 7 | $ 42 | $ 19 | $ 78 |
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2020
USD ($)
site
|
Dec. 31, 2019
USD ($)
|
|
Commitments and Contingencies Disclosure [Abstract] | ||
Number of non-owned sites (in sites) | 66 | |
Number of national priority list (in sites) | 16 | |
Number of sites not named as PRP, with resolved liability, or deemed de minimis (in sites) | 60 | |
Incurred and claims to be resolved over extended period of time | 30 years | |
Environmental reserves | $ | $ 31 | $ 32 |
Guarantees at carrying value | $ | $ 468 | $ 453 |
FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Cost method | $ 9,000,000 | $ 9,000,000 | $ 118,000,000 | |
Fair value of investment held | $ 526,000,000 | $ 526,000,000 | ||
Shares held in affiliate | 25,661,448 | 25,661,448 | ||
Loss from downward adjustment to equity securities without readily determinable fair value, before tax | $ 1,207,000,000 | |||
Loss from downward adjustment to equity securities without readily determinable fair value, after tax | 1,192,000,000 | |||
Gain from upward adjustment to equity securities without readily determinable fair value, before tax | $ 268,000,000 | |||
Gain from upward adjustment to equity securities without readily determinable fair value, after tax | 265,000,000 | |||
Impairment of property, plant and equipment | $ 163,000,000 | |||
Nikola Corporation | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Ownership percentage of investment held | 7.00% | |||
Cost method | $ 250,000,000 | $ 250,000,000 | ||
Nikola Corporation | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Number of shares acquired per acquire share (in shares) | 1.901 | |||
Share price (in dollars per share) | $ 20.48 | $ 20.48 | ||
Agriculture | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Impairment of property, plant and equipment | $ 111,000,000 | |||
Construction | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Impairment of property, plant and equipment | 45,000,000 | |||
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 | $ 7,000,000 | |||
Foreign exchange derivatives | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Notional amount of foreign exchange derivatives | $ 7,700,000,000 | $ 7,700,000,000 | 6,900,000,000 | |
Interest rate derivatives | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Notional amount of foreign exchange derivatives | 6,000,000,000.0 | 6,000,000,000.0 | $ 5,500,000,000 | |
Nominal amount of hedging instruments affected by reform of benchmark | $ 992,000,000 | $ 992,000,000 |
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 | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in Accumulated Other Comprehensive Income | $ 48 | $ (48) | $ 95 | $ (113) |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 8 | (21) | (5) | (64) |
Net sales | Foreign exchange contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in Accumulated Other Comprehensive Income | 40 | (42) | 106 | (87) |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (4) | 2 | (5) | (2) |
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 | 12 | (17) | (7) | (46) |
Other, Net | Foreign exchange contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 1 | (3) | 11 | (10) |
Interest expense | Interest rate contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in Accumulated Other Comprehensive Income | 8 | (6) | (11) | (26) |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | $ (1) | $ (3) | $ (4) | $ (6) |
FINANCIAL INSTRUMENTS - Summary of Activity in Accumulated Other Comprehensive Income Related to Derivatives (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Before-Tax Amount | ||
Accumulated derivative net losses, beginning of period | $ (62) | $ (23) |
Net changes in fair value of derivatives | 95 | (113) |
Net losses reclassified from accumulated other comprehensive income into income | 5 | 64 |
Accumulated derivative net losses, end of period | 38 | (72) |
Income Tax | ||
Accumulated derivative net losses, beginning of period | 8 | 1 |
Net changes in fair value of derivatives | (9) | 20 |
Reclassification from AOCI, Current Period, Tax | (4) | (10) |
Accumulated derivative net losses, end of period | (5) | 11 |
After-Tax Amount | ||
Accumulated derivative net losses, beginning of period | (54) | (22) |
Net changes in fair value of derivatives | 86 | (93) |
Net losses reclassified from accumulated other comprehensive income into income | 1 | 54 |
Accumulated derivative net losses, end of period | $ 33 | $ (61) |
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 | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Interest expense | Fair Value Hedges | Interest rate derivatives | ||||
Fair Value Hedges | ||||
Interest rate derivatives, fair value hedges | $ (5) | $ 7 | $ 37 | $ 38 |
Other, Net | Foreign exchange derivatives | Derivatives not designated as hedging instruments | ||||
Not Designated as Hedges | ||||
Foreign exchange contracts, not designated as hedges | $ 6 | $ 29 | $ 160 | $ (39) |
FINANCIAL INSTRUMENTS - Fair Values of Derivatives (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 188 | $ 73 |
Derivative liabilities | 88 | 121 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 153 | 61 |
Derivative liabilities | 73 | 98 |
Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 81 | 44 |
Derivative liabilities | 41 | 29 |
Derivatives designated as hedging instruments | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 72 | 17 |
Derivative liabilities | 32 | 69 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 35 | 12 |
Derivative liabilities | 15 | 23 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Derivatives not designated as hedging instruments | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 35 | 12 |
Derivative liabilities | $ 15 | $ 23 |
FINANCIAL INSTRUMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Value on Recurring Basis (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 188 | $ 73 |
Investments at fair value through profit and loss | 526 | 0 |
Derivative liabilities | (88) | (121) |
Fair Value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 1 |
Investments at fair value through profit and loss | 526 | 0 |
Total Assets | 714 | 74 |
Total Liabilities | (88) | (121) |
Fair Value, measurements, recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 1 |
Investments at fair value through profit and loss | 526 | 0 |
Total Assets | 526 | 1 |
Total Liabilities | 0 | 0 |
Fair Value, measurements, recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Investments at fair value through profit and loss | 0 | 0 |
Total Assets | 188 | 73 |
Total Liabilities | (88) | (121) |
Fair Value, measurements, recurring | Foreign exchange derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 107 | 29 |
Derivative liabilities | (46) | (92) |
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 | 107 | 29 |
Derivative liabilities | (46) | (92) |
Fair Value, measurements, recurring | Interest rate derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 81 | 44 |
Derivative liabilities | (41) | (29) |
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 | 81 | 44 |
Derivative liabilities | (41) | (29) |
Fair Value, measurements, recurring | Commodities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (1) | 0 |
Fair Value, measurements, recurring | Commodities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value, measurements, recurring | Commodities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ (1) | $ 0 |
FINANCIAL INSTRUMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Value on Nonrecurring Basis (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Jun. 30, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, losses | $ 163 | ||
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 | |
Other intangible assets, fair value | 0 | 0 | |
Property, plant and equipment, losses | 163 | 0 | |
Other intangible assets, losses | $ 92 | $ 0 |
FINANCIAL INSTRUMENTS - Estimated Fair Values of Instruments Not Carried at Fair Value in Balance Sheets (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivables | $ 17,098 | $ 19,428 |
Debt | 24,670 | 24,854 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivables | 17,315 | 19,375 |
Debt | $ 25,018 | $ 25,249 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of OCI (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Unrealized gain (loss) on cash flow hedges | ||||||||
Gross Amount | $ 40 | $ (28) | $ 100 | $ (50) | ||||
Income Taxes | (10) | 6 | (13) | 11 | ||||
Net Amount | 30 | (22) | 87 | (39) | ||||
Changes in retirement plans’ funded status | ||||||||
Gross Amount | (21) | (15) | (63) | (37) | ||||
Income Taxes | 6 | 6 | 20 | 14 | ||||
Net Amount | (15) | (9) | (43) | (23) | ||||
Foreign currency translation | ||||||||
Gross Amount | (221) | 31 | (697) | 109 | ||||
Income Taxes | 0 | 0 | 0 | 0 | ||||
Net Amount | (221) | 31 | (697) | 109 | ||||
Share of other comprehensive income (loss) of entities using the equity method | ||||||||
Gross Amount | 12 | (14) | (2) | (17) | ||||
Income Taxes | 0 | 0 | 0 | 0 | ||||
Net Amount | 12 | (14) | (2) | (17) | ||||
Other comprehensive income (loss) | ||||||||
Gross Amount | (190) | (26) | (662) | 5 | ||||
Income Taxes | (4) | 12 | 7 | 25 | ||||
Other comprehensive income (loss), net of tax | $ (194) | $ (59) | $ (401) | $ (14) | $ (5) | $ 49 | $ (655) | $ 30 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of AOCI (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Mar. 31, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | $ 5,068 | $ 6,121 | $ 5,068 |
Reclassification of certain tax effects | 0 | ||
Ending balance | 5,391 | 4,799 | 6,126 |
Other comprehensive income (loss) allocated to noncontrolling interests | 0 | (2) | |
Unrealized Gain (Loss) on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (22) | (54) | (22) |
Other comprehensive income (loss), before reclassifications | 86 | (93) | |
Amounts reclassified from other comprehensive income | 1 | 54 | |
Other comprehensive income (loss) | 87 | (39) | |
Reclassification of certain tax effects | 0 | ||
Ending balance | 33 | (61) | |
Change in Retirement Plans’ Funded Status | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (473) | (650) | (473) |
Other comprehensive income (loss), before reclassifications | 43 | 30 | |
Amounts reclassified from other comprehensive income | (86) | (53) | |
Other comprehensive income (loss) | (43) | (23) | |
Reclassification of certain tax effects | (65) | ||
Ending balance | (693) | (561) | |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (1,216) | (1,145) | (1,216) |
Other comprehensive income (loss), before reclassifications | (697) | 111 | |
Amounts reclassified from other comprehensive income | 0 | 0 | |
Other comprehensive income (loss) | (697) | 111 | |
Reclassification of certain tax effects | 0 | ||
Ending balance | (1,842) | (1,105) | |
Share of Other Comprehensive Income (Loss) of Entities Using the Equity Method | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (148) | (153) | (148) |
Other comprehensive income (loss), before reclassifications | (2) | (17) | |
Amounts reclassified from other comprehensive income | 0 | 0 | |
Other comprehensive income (loss) | (2) | (17) | |
Reclassification of certain tax effects | 0 | ||
Ending balance | (155) | (165) | |
Total | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (1,859) | (2,002) | (1,859) |
Other comprehensive income (loss), before reclassifications | (570) | 31 | |
Amounts reclassified from other comprehensive income | (85) | 1 | |
Other comprehensive income (loss) | (655) | 32 | |
Reclassification of certain tax effects | (65) | (65) | |
Ending balance | $ (1,877) | $ (2,657) | $ (1,892) |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Reclassifications (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | $ 6,492 | $ 6,360 | $ 17,531 | $ 20,384 |
Cost of goods sold | (5,178) | (5,015) | (14,706) | (15,732) |
Other, net | (1,388) | (173) | (290) | (552) |
Interest expense | (161) | (192) | (512) | (570) |
Income taxes | 15 | 486 | 78 | 261 |
Net income (loss) | (932) | 643 | (625) | 1,334 |
Reclassification out of accumulated other comprehensive income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income (loss) | (35) | (1) | (85) | 1 |
Reclassification out of accumulated other comprehensive income | Unrealized Gain (Loss) on Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | 4 | (2) | 5 | 2 |
Cost of goods sold | (12) | 17 | 7 | 46 |
Other, net | (1) | 3 | (11) | 10 |
Interest expense | 1 | 3 | 4 | 6 |
Income taxes | 0 | (4) | (4) | (10) |
Net income (loss) | (8) | 17 | 1 | 54 |
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 | 12 | 18 | 33 | 52 |
Amortization of prior service cost | (33) | (32) | (98) | (91) |
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 | (6) | (4) | (21) | (14) |
Net income (loss) | $ (27) | $ (18) | $ (86) | $ (53) |
RELATED PARTY INFORMATION - Additional Information (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
|
EXOR N.V. | ||
Related Party Transaction [Line Items] | ||
Percentage of common shares outstanding held by related parties | 42.60% | |
IVECO-OTO MELARA Societa Consortile | ||
Related Party Transaction [Line Items] | ||
Pledged guarantees on commitments | $ 138 | $ 145 |
CNH Industrial Capital Europe S.A.S. | ||
Related Party Transaction [Line Items] | ||
Pledged guarantees on commitments | $ 297 | $ 276 |
RELATED PARTY INFORMATION - Schedule of Related Party Transactions (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
FCA Group | |||||
Related Party Transaction [Line Items] | |||||
Net sales | $ 155 | $ 171 | $ 398 | $ 533 | |
Cost of goods sold | 59 | 69 | 146 | 265 | |
Selling, general and administrative expenses | 33 | 34 | 89 | 102 | |
Trade receivables | 2 | 2 | $ 4 | ||
Trade payables | 80 | 80 | 83 | ||
Unconsolidated subsidiaries and affiliates | |||||
Related Party Transaction [Line Items] | |||||
Net sales | 274 | 175 | 702 | 677 | |
Cost of goods sold | 93 | $ 121 | 248 | $ 377 | |
Trade receivables | 154 | 154 | 121 | ||
Trade payables | $ 83 | $ 83 | $ 70 |
SUBSEQUENT EVENTS (Details) - Subsequent Event - Notes Due 2026 |
Oct. 06, 2020
USD ($)
|
---|---|
Subsequent Event [Line Items] | |
Aggregate principal | $ 500,000,000 |
Interest rate | 1.875% |
Issuance price, as a percentage of principal amount | 99.761% |
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