6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2019

Commission File No. 001-36085

CNH INDUSTRIAL N.V.

(Translation of registrant’s name into English)

25 St. James’s Street

London, SW1A 1HA

United Kingdom

Tel. No.: +44 1268 533000

(Address of Principal Executive Offices)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

Form 20-F   ý   Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨

CNH INDUSTRIAL N.V.

Form 6-K for the month of November 2019.

This report on Form 6-K contains the following exhibits:

Exhibit 99.1	CNH Industrial N.V. Quarterly Report for the three and nine months ended September 30, 2019 (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

Exhibit 99.1 to this Report on Form 6-K is hereby incorporated by reference into CNH Industrial N.V.’s registration statement on Form F-3ASR (File No. 333-230334) and CNH Industrial N.V.’s registration statements on Form S-8 (File Nos. 333-191477 and 333-196574).

SIGNATURES

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

CNH Industrial N.V.
By:	/s/ Michael P. Going
Name:	Michael P. Going
Title:	Corporate Secretary

November 12, 2019

Index of Exhibits

Exhibit Number	Description of Exhibit
Exhibit 99.1	CNH Industrial N.V. Quarterly Report for the three and nine months ended September 30, 2019 (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

EX-99.1

Exhibit 99.1

CNH INDUSTRIAL N.V.

QUARTERLY REPORT FOR THE THREE AND NINE MONTHS

ENDED September 30, 2019

TABLE OF CONTENTS

INDEX

	Page
PART I – FINANCIAL INFORMATION
Condensed consolidated balance sheets as of September 30, 2019 (unaudited) and December 31, 2018	1
Condensed consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018 (unaudited)	2
Condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2019 and 2018 (unaudited)	3
Condensed consolidated statements of cash flows for the nine months ended September 30, 2019 and 2018 (unaudited)	4
Condensed consolidated statements of changes in equity for the nine months ended September 30, 2019 and 2018 (unaudited)	5
Notes to condensed consolidated financial statements (unaudited)	7
Management’s discussion and analysis of financial condition and results of operations	39
Quantitative and qualitative disclosures about market risk	59
PART II – OTHER INFORMATION
Legal proceedings	60
Risk factors	60
Unregistered sales of equity securities and use of proceeds	60
Default upon senior securities	60
Mine safety disclosures	60
Other information	60

PART I – FINANCIAL INFORMATION

CNH INDUSTRIAL N.V.

CONDENSED CONSOLIDATED BALANCE SHEETS

As of September 30, 2019 and December 31, 2018

(Unaudited)

	September 30, 2019			December 31, 2018
	(in millions)
ASSETS
Cash and cash equivalents	$	3,384		$	5,031
Restricted cash	781			772
Trade receivables, net	424			399
Financing receivables, net	18,455			19,167
Inventories, net	8,116			6,726
Property, plant and equipment, net	5,191			5,901
Investments in unconsolidated subsidiaries and affiliates	635			526
Equipment under operating leases	1,803			1,774
Goodwill	2,452			2,453
Other intangible assets, net	760			788
Deferred tax assets	1,054			591
Derivative assets	135			98
Other assets	2,321			1,874
Total Assets	$	45,511		$	46,100
LIABILITIES AND EQUITY
Debt	23,906			24,445
Trade payables	5,169			5,889
Deferred tax liabilities	131			114
Pension, postretirement and other postemployment benefits	1,374			1,488
Derivative liabilities	132			108
Other liabilities	8,639			8,958
Total Liabilities	$	39,351		$	41,002
Redeemable noncontrolling interest	34			30
Common shares, €0.01, par value; outstanding 1,351,332,628 common shares and 387,951,529 special voting shares at 9/30/2019; and outstanding 1,353,831,958 common shares and 388,725,624 special voting shares at 12/31/2018	25			25
Treasury stock, at cost; 13,067,568 common shares at 9/30/2019 and 10,568,238 common shares at 12/31/2018	(142		)	(128		)
Additional paid in capital	4,402			4,409
Retained earnings	3,694			2,596
Accumulated other comprehensive loss	(1,892		)	(1,859		)
Noncontrolling interests	39			25
Total Equity	$	6,126		$	5,068
Total Liabilities and Equity	$	45,511		$	46,100

See accompanying notes to the condensed consolidated financial statements

1

CNH INDUSTRIAL N.V.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three and Nine Months Ended September 30, 2019 and 2018

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019		2018
	(in millions)						(in millions)
Revenues
Net sales	$	5,892		$	6,245		$	18,966	$	20,124
Finance, interest and other income	468			441			1,418		1,380
Total Revenues	$	6,360		$	6,686		$	20,384	$	21,504
Costs and Expenses
Cost of goods sold	5,015			5,162			15,732		16,606
Selling, general and administrative expenses	540			523			1,634		1,706
Research and development expenses	238			254			755		743
Restructuring expenses	42			8			78		16
Interest expense	192			189			570		581
Other, net	173			199			552		752
Total Costs and Expenses	$	6,200		$	6,335		$	19,321	$	20,404
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates	160			351			1,063		1,100
Income tax (expense)	486			(131		)	261		(312		)
Equity in income of unconsolidated subsidiaries and affiliates	(3		)	11			10		53
Net income	$	643		$	231		$	1,334	$	841
Net income attributable to noncontrolling interests	6			9			26		27
Net income attributable to CNH Industrial N.V.	$	637		$	222		$	1,308	$	814
Earnings per share attributable to common shareholders
Basic	$	0.47		$	0.16		$	0.97	$	0.60
Diluted	$	0.47		$	0.16		$	0.97	$	0.60
Cash dividends declared per common share	$	—		$	—		$	0.203	$	0.173

See accompanying notes to the condensed consolidated financial statements

2

CNH INDUSTRIAL N.V.

CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME

For the Three and Nine Months Ended September 30, 2019 and 2018

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)						(in millions)
Net income	$	643		$	231		$	1,334		$	841
Other comprehensive income (loss), net of tax
Unrealized income (loss) on cash flow hedges	(22		)	15			(39		)	10
Changes in retirement plans’ funded status	(9		)	(6		)	(23		)	450
Foreign currency translation	31			(38		)	109			(373		)
Share of other comprehensive loss of entities using the equity method	(14		)	(18		)	(17		)	(36		)
Other comprehensive income (loss), net of tax	(14		)	(47		)	30			51
Comprehensive income	629			184			1,364			892
Less: Comprehensive income attributable to noncontrolling interests	4			2			24			20
Comprehensive income (loss) attributable to CNH Industrial N.V.	$	625		$	182		$	1,340		$	872

See accompanying notes to condensed consolidated financial statements

3

CNH INDUSTRIAL N.V.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Nine Months Ended September 30, 2019 and 2018

(Unaudited)

	Nine Months Ended September 30,
	2019			2018
	(in millions)
Operating activities:
Net income	$	1,334		$	841
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	494			538
Depreciation and amortization expense of assets under operating leases and assets sold under buy-back commitments	419			478
Loss on disposal of assets	3			—
Undistributed income (loss) of unconsolidated subsidiaries	5			(4		)
Other non-cash items	150			109
Changes in operating assets and liabilities:
Provisions	(144		)	(85		)
Deferred income taxes	(445		)	7
Trade and financing receivables related to sales, net	55			448
Inventories, net	(1,058		)	(848		)
Trade payables	(501		)	(35		)
Other assets and liabilities	(456		)	(253		)
Net cash provided by (used in) operating activities	$	(144	)	$	1,196
Investing activities:
Additions to retail receivables	(3,027		)	(3,040		)
Collections of retail receivables	3,218			3,029
Proceeds from the sale of assets, net of assets under operating leases and assets sold under buy-back commitments	10			3
Expenditures for property, plant and equipment and intangible assets, net of assets under operating leases and assets sold under buy-back commitments	(325		)	(293		)
Expenditures for assets under operating leases and assets sold under buy-back commitments	(944		)	(959		)
Other	41			265
Net cash used in investing activities	$	(1,027	)	$	(995	)
Financing activities:
Proceeds from long-term debt	9,986			11,298
Payments of long-term debt	(10,190		)	(12,439		)
Net increase in other financial liabilities	235			219
Dividends paid	(280		)	(240		)
Other	(45		)	(156		)
Net cash used in financing activities	$	(294	)	$	(1,318	)
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash	(173		)	(262		)
Decrease in cash and cash equivalents and restricted cash	(1,638		)	(1,379		)
Cash and cash equivalents and restricted cash, beginning of year	5,803			6,200
Cash and cash equivalents and restricted cash, end of period	$	4,165		$	4,821

See accompanying notes to the condensed consolidated financial statements

4

CNH INDUSTRIAL N.V.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the Nine Months Ended September 30, 2019

(Unaudited)

	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	$	25	$	(128	)	$	4,409		$	2,596		$	(1,859	)	$	25		$	5,068		$	30
Net income	—		—			—			257			—			6			263			1
Other Comprehensive income (loss), net of tax	—		—			—			—			47			2			49			—
Reclassification of certain tax effects	—		—			—			65			(65		)	—			—			—
Dividends paid	—		—			—			—			—			—			—			(1		)
Acquisition of treasury stock	—		—			—			—			—			—			—			—
Common shares issued from treasury stock and capital increase for share-based compensation	—		6			(6		)	—			—			—			—			—
Share-based compensation expense	—		—			9			—			—			—			9			—
Other changes	—		—			3			—			—			(1		)	2			—
Balance, March 31, 2019	$	25	$	(122	)	$	4,415		$	2,918		$	(1,877	)	$	32		$	5,391		$	30
Net income	—		—			—			414			—			8			422			5
Other comprehensive income (loss), net of tax	—		—			—			—			(3		)	(2		)	(5		)	—
Dividends paid	—		—			—			(275		)	—			—			(275		)	(2		)
Acquisition of treasury stock	—		(45		)	—			—			—			—			(45		)	—
Common shares issued from treasury stock and capital increase for share-based compensation	—		19			(21		)	—			—			—			(2		)	—
Share-based compensation expense	—		—			12			—			—			—			12			—
Other changes	—		—			(9		)	—			—			—			(9		)	—
Balance, June 30, 2019	$	25	$	(148	)	$	4,397		$	3,057		$	(1,880	)	$	38		$	5,489		$	33
Net income	—		—			—			637			—			3			640			3
Other comprehensive income (loss), net of tax	—		—			—			—			(12		)	(2		)	(14		)	—
Dividends paid	—		—			—			—			—			—			—			(2		)
Acquisition of treasury stock	—		—			—			—			—			—			—			—
Common shares issued from treasury stock and capital increase for share-based compensation	—		6			(7		)	—			—			—			(1		)	—
Share-based compensation expense	—		—			9			—			—			—			9			—
Other changes	—		—			3			—			—			—			3			—
Balance, September 30, 2019	$	25	$	(142	)	$	4,402		$	3,694		$	(1,892	)	$	39		$	6,126		$	34

See accompanying notes to condensed consolidated financial statements

5

CNH INDUSTRIAL N.V.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the Nine Months Ended September 30, 2018

(Unaudited)

	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, 2018	$	25	$	(10	)	$	4,412		$	1,763		$	(1,966	)	$	8		$	4,232		$	25
Net income	—		—			—			196			—			4			200			2
Other comprehensive income (loss), net of tax	—		—			—			—			(254		)	1			(253		)	—
Dividends paid	—		—			—			—			—			—			—			(1		)
Acquisition of treasury stock	—		(90		)	—			—			—			—			(90		)	—
Common shares issued from treasury stock and capital increase for share-based compensation	—		10			(8		)	—			—			—			2			—
Share-based compensation expense	—		—			4			—			—			—			4			—
Other changes	—		—			(1		)	—			—			—			(1		)	—
Balance, March 31, 2018	$	25	$	(90	)	$	4,407		$	1,959		$	(2,220	)	$	13		$	4,094		$	26
Net income	—		—			—			396			—			9			405			3
Other comprehensive income (loss), net of tax	—		—			—			—			352			(1		)	351			—
Dividends paid	—		—			—			(235		)	—			—			(235		)	(2		)
Acquisition of treasury stock	—		(44		)	—			—			—			—			(44		)	—
Common shares issued from treasury stock and capital increase for share-based compensation	—		24			(25		)	—			—			—			(1		)	—
Share-based compensation expense	—		—			12			—			—			—			12			—
Other changes	—		—			(2		)	—			—			(1		)	(3		)	—
Balance, June 30, 2018	$	25	$	(110	)	$	4,392		$	2,120		$	(1,868	)	$	20		$	4,579		$	27
Net income	—		—			—			222			—			5			227			4
Other comprehensive loss, net of tax	—		—			—			—			(40		)	(7		)	(47		)	—
Dividends paid	—		—			—			—			—			—			—			(2		)
Acquisition of treasury stock	—		(22		)	—			—			—			—			(22		)	—
Common shares issued from treasury stock and capital increase for share-based compensation	—		3			(2		)	—			—			—			1			—
Share-based compensation expense	—		—			9			—			—			—			9			—
Other changes	—		—			(4		)	—			—			4			—			—
Balance, September 30, 2018	$	25	$	(129	)	$	4,395		$	2,342		$	(1,908	)	$	22		$	4,747		$	29

See accompanying notes to condensed consolidated financial statements

6

CNH INDUSTRIAL N.V.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. 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, 2018. 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. Actual results could differ materially from those estimates.

Certain financial information in this report has been presented by geographic area. Starting from the first quarter of 2019, the composition of CNH Industrial's regions has been revised as follows: (1) North America; (2) Europe; (3) South America and (4) Rest of World. The geographic designations have the following meanings:

• North America (formerly NAFTA): United States, Canada and Mexico;

• Europe: member countries of the European Union, European Free Trade Association, Ukraine, and Balkans, formerly included in EMEA;

• South America (formerly LATAM): 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), formerly included in APAC, and African continent and Middle East, formerly included in EMEA.

2. NEW ACCOUNTING PRONOUNCEMENTS

Adopted in 2019

Derivatives and Hedging

In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”), which amends ASC 815, Derivatives and Hedging. The purpose of this ASU is to better align a company’s risk management activities and financial reporting for hedging relationships, simplify the hedge accounting requirements and improve the disclosures of hedging arrangements. Among other provisions, the new standard (1) requires an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported, (2) eliminates the separate measurement and reporting of hedge ineffectiveness and (3) permits an entity to recognize in earnings the initial value of an excluded component under a systematic and rational method over the life of the derivative instrument. The Company adopted ASU 2017-12 on January 1, 2019. The adoption did not have a material impact on our results of operations, financial position and cash flows.

Leases

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which supersedes ASC 840, Leases. Subsequently, the FASB has issued additional ASUs which further clarify this guidance. The ASU's most prominent change is the requirement for lessees to recognize leased assets and liabilities classified as operating leases under the previous standard. The ASU does not significantly change the lessee’s recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors’ accounting under the ASC is largely unchanged from the previous accounting standard. ASU 2016-02 also will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases.

7

CNH Industrial has adopted the new standard effective January 1, 2019, using the modified retrospective approach, without recasting prior periods. CNH Industrial has applied certain practical expedients upon transition, including: not to reassess under the new guidance its prior conclusions about lease identification, lease classification and initial direct costs; and, those provided for short-term leases. In such case, the lease payments associated with leases are recognized as expense in the income statement. In addition, the Company has elected not to separate lease and non-lease components.

At January 1, 2019, the Company recognized approximately $480 million of right-of-use assets and lease liabilities without transition effect to equity.

The following paragraph presents the Company’s policy for leases for which it is a lessee after the adoption of the new accounting standard ASU 2016-02.

Lease policy

A lease is a contract that conveys the right to control the use of an identified asset (the leased asset) for a period of time in exchange for consideration. The lease term determined by the Company comprises the non-cancellable period of lease contract together with both periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option. For lease agreements, we combine lease and non-lease components.

For leases with terms not exceeding twelve months (short-term leases), the Company recognizes the lease payments associated with those leases on a straight-line basis over the lease term as operating expense in the income statement.

For all other leases, the right-of-use asset includes the amount of lease liability recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Correspondingly, the Company recognizes a lease liability, measured at the present value of lease payments to be made over the lease term. In calculating the present value of lease payments, the Company uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable.

For finance leases, the right-of-use asset is classified within Property, plant and equipment, net and the lease liability, within Debt. Assets held under finance leases, which the Company assumes substantially all the risks and rewards of ownership, are recognized as assets of the Company at the lower of fair value or present value of the minimum lease payments.

In case of operating leases, the right-of-use asset is classified within Other assets and the lease liability, within Other liabilities. After the commencement date, the Company recognizes in profit or loss a single lease cost, calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis. In particular, after lease commencement, the lease liability is measured at the present value of any remaining lease payments, discounted by using the rate determined at lease commencement, consistently with the model used to calculate the liability related to the finance lease. Correspondingly, the right-of-use asset is measured as the lease liability adjusted by accrued or prepaid rents (i.e., the aggregate difference between the cash payment and straight-line lease cost), remaining unamortized initial direct costs and lease incentives, and any impairments of the right-of-use asset.

Comprehensive Income

In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”), which amends ASC 220, Income Statement - Reporting Comprehensive Income. In December 2017, the U.S. government enacted new tax legislation (“U.S. Tax Reform”). Included in the provisions of U.S. Tax Reform was a reduction of the corporate income tax rate from 35 percent to 21 percent. U.S. GAAP requires that the remeasurement of deferred taxes to the new corporate tax rate occur in the period in which the legislation is enacted with the deferred tax adjustment being recorded in the provision for income taxes, including items for which the tax effects were originally recorded in Other Comprehensive Income (“OCI”). This treatment results in the items in OCI reflecting a disproportionate tax rate, a result often referred to as stranded tax effects. This ASU allows a reclassification from accumulated OCI to retained earnings for stranded tax effects resulting from U.S. Tax Reform. ASU 2018-02 is effective for annual reporting periods beginning after December 15, 2018 including interim periods within those fiscal years. The Company adopted this standard on January 1, 2019, and reclassified $65 million of tax effects from "Accumulated other comprehensive income (loss)" to "Retained earnings" within its Condensed Consolidated Balance Sheet.

Changes in Stockholders' Equity and Noncontrolling Interests

In August 2018, the SEC adopted a final rule that amends certain disclosure requirements that have become duplicative, overlapping, or outdated in light of other SEC disclosure requirements, U.S. GAAP, or changes in the information environment. However, the guidance also added requirements for registrants to include in their interim financial statements a reconciliation of changes in stockholders’ equity for each period for which an income statement is required (both year-to-date and quarterly periods). The Company adopted the new interim disclosure requirement in its U.S. GAAP quarterly report for the three months ended March 31, 2019, which had no material impact to the Statement of Changes in Equity.

8

Not Yet Adopted

Financial Instruments

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which establishes ASC 326, Financial Instruments - Credit Losses. In November 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses (“ASU 2018-19”), which supersedes existing Measurement of Credit Losses on Financial Instruments (“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 are also required. ASU 2018-19 is effective for annual periods beginning after December 15, 2019. The Company has established a cross functional implementation team. The team is validating and testing the models and procedures that will be used to calculate the allowance for credit losses and has started to design related processes and controls.

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 effective date is the first quarter of fiscal year 2021, with early adoption permitted for the removed disclosures and delayed adoption until fiscal year 2021 permitted for the new disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

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. ASU 2018-15 may be applied prospectively from the date the guidance is first applied or retrospectively.

ASU 2018-15 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted. The Company expects to adopt the ASU on a prospective basis. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

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. ASU 2018-17 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted in any interim period. ASU 2018-17 is required to be applied retrospectively from the date the guidance is first applied. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements.

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. ASU 2018-14 is effective for annual periods beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact of adoption of this ASU on its related disclosures.

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3. REVENUE

The following table summarizes revenues for the three and nine months ended September 30, 2019 and 2018:

	Three Months Ended September 30,
	2019			2018
	(in millions)
Agriculture	$	2,446		$	2,636
Construction	664			726
Commercial and Specialty Vehicles	2,331			2,404
Powertrain	940			972
Eliminations and Other	(489		)	(493		)
Total Industrial Activities	$	5,892		$	6,245
Financial Services	487			469
Eliminations and Other	(19		)	(28		)
Total Revenues	$	6,360		$	6,686

	Nine Months Ended September 30,
	2019			2018
	(in millions)
Agriculture	$	8,031		$	8,527
Construction	2,061			2,207
Commercial and Specialty Vehicles	7,443			7,788
Powertrain	3,109			3,376
Eliminations and Other	(1,678		)	(1,774		)
Total Industrial Activities	$	18,966		$	20,124
Financial Services	1,480			1,469
Eliminations and Other	(62		)	(89		)
Total Revenues	$	20,384		$	21,504

The following table disaggregates revenues by major source for the three and nine months ended September 30, 2019 and 2018:

	Three Months Ended September 30,
	2019		2018
	(in millions)
Revenues from:
Sales of goods	$	5,603	$	6,018
Rendering of services and other revenues	196		112
Rents on assets sold with a buy-back commitment	93		115
Revenues from sales of goods and services	5,892		6,245
Finance and interest income	290		261
Rents and other income on operating lease	178		180
Finance, interest and other income	468		441
Total Revenues	$	6,360	$	6,686

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	Nine Months Ended September 30,
	2019		2018
	(in millions)
Revenues from:
Sales of goods	$	18,168	$	19,467
Rendering of services and other revenues	500		297
Rents on assets sold with a buy-back commitment	298		360
Revenues from sales of goods and services	18,966		20,124
Finance and interest income	869		835
Rents and other income on operating lease	549		545
Finance, interest and other income	1,418		1,380
Total Revenues	$	20,384	$	21,504

Contract liabilities recorded in Other liabilities were $1,206 million and $1,368 million at September 30, 2019 and December 31, 2018, 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, 2019 and 2018, revenues included $118 million and $125 million, respectively, relating to contract liabilities outstanding at the beginning of each period. During the nine months ended September 30, 2019 and 2018, revenues included $415 million and $440 million, respectively, relating to contract liabilities outstanding at the beginning of each period. As of September 30, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $1.9 billion. The Company expects to recognize revenue on approximately 40% and 84% of the remaining performance obligations over the next 12 and 36 months, respectively, with the remaining recognized thereafter.

4. 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.

	September 30, 2019		December 31, 2018
	(in millions)
Restricted cash	$	630	$	732
Financing receivables	9,040		9,732
Total Assets	$	9,670	$	10,464
Debt	$	8,858	$	9,692
Total Liabilities	$	8,858	$	9,692

5. 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.

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A reconciliation of basic and diluted earnings per share is as follows (in millions, except per share amounts):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Basic:
Net income attributable to CNH Industrial	$	637	$	222	$	1,308	$	814
Weighted average common shares outstanding—basic	1,351		1,355		1,353		1,358
Basic earnings per share	$	0.47	$	0.16	$	0.97	$	0.60
Diluted:
Net income attributable to CNH Industrial	$	637	$	222	$	1,308	$	814
Weighted average common shares outstanding—basic	1,351		1,355		1,353		1,358
Effect of dilutive securities (when dilutive):
Stock compensation plans (1)	1		3		2		4
Weighted average common shares outstanding—diluted	1,352		1,358		1,355		1,362
Diluted earnings per share	$	0.47	$	0.16	$	0.97	$	0.60

(1) For the three and nine months ended September 30, 2019 and 2018, no shares were excluded from the computation of diluted earnings per share due to an anti-dilutive impact.

6. 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, 2019 and 2018:

	Pension						Healthcare						Other
	Three Months Ended September 30,						Three Months Ended September 30,						Three Months Ended September 30,
	2019			2018			2019			2018			2019		2018
	(in millions)
Service cost	$	5		$	6		$	1		$	1		$	4	$	3
Interest cost	19			18			3			5			—		1
Expected return on assets	(26		)	(27		)	(2		)	(1		)	—		—
Amortization of:
Prior service credit	1			—			(33		)	(31		)	—		1
Actuarial loss	17			18			1			2			—		—
Net periodic benefit cost	$	16		$	15		$	(30	)	$	(24	)	$	4	$	5

	Pension						Healthcare						Other
	Nine Months Ended September 30,						Nine Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018			2019		2018
	(in millions)
Service cost	$	17		$	19		$	4		$	4		$	10	$	11
Interest cost	57			54			11			19			2		2
Expected return on assets	(76		)	(84		)	(6		)	(5		)	—		—
Amortization of:
Prior service credit	1			(1		)	(93		)	(52		)	1		1
Actuarial loss	51			56			1			5			—		1
Net periodic benefit cost	$	50		$	44		$	(83	)	$	(29	)	$	13	$	15

On February 20, 2018, CNH Industrial announced that the United States Supreme Court ruled in its favor in Reese vs. CNH Industrial N.V. and CNH Industrial America LLC. The decision allowed CNH Industrial to terminate or modify various retiree healthcare benefits previously provided to certain UAW Union represented Company retirees. On April 16, 2018, CNH Industrial announced its determination to modify the benefits provided to the applicable retirees (“Benefit Modification”) to make them consistent with the benefits provided

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to current eligible CNH Industrial retirees who had been represented by the UAW. The Benefit Modification resulted in a reduction of the plan liability by $527 million. This amount will be amortized from other comprehensive income (loss) to the income statement over approximately 4.5 years, which represents the average service period to attain eligibility conditions for active participants. For the three and nine months ended September 30, 2019, $30 million and $90 million of amortization (“Benefit Modification Amortization”) was recorded as a pre-tax gain in Other, net, respectively. For the three and nine months ended September 30, 2018, $30 million and $50 million of Benefit Modification Amortization was recorded as a pre-tax gain in Other, net, respectively.

7. INCOME TAXES

The effective tax rates for the three months ended September 30, 2019 and 2018 were (303.8)% and 37.3%, respectively. The effective tax rates for the nine months ended September 30, 2019 and 2018 were (24.6)% and 28.4%, respectively.

As in prior periods, the Company continued to evaluate the realizability of its Italian deferred tax assets. In accordance with applicable guidance, the Company assessed and weighed all positive and negative evidence including, but not limited to, historic pre-tax results, forecast pre-tax results for the current and five succeeding years in accordance with its updated current year forecast and the public announcement, on September 3, 2019, of its strategic business plan, including the Company’s plan to spin-off its on-highway operations into a separate, publicly-traded legal entity. Following this analysis, the Company concluded it was more likely than not that a substantial portion of the Company’s Italian deferred tax assets will be realized. Accordingly, we released 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 that caused distorted effective tax rates for the three- and nine-month periods ended September 30, 2019.

The Company is subject to income taxes and, therefore, routinely encounters income tax audits in many jurisdictions around the world. As various ongoing audits in multiple income tax jurisdictions are brought to conclusion during the next twelve months, it is possible the Company’s amount of unrecognized tax benefits will change during the next twelve months. We do not, however, anticipate that those changes will have a material impact on the Company’s results of operations, balance sheet, or cash flows.

8. 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, Överum, and JF 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, compact track loaders, and telehandlers. 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, commuter buses and touring coaches 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 a range of engines, transmission systems and axles for on- and off-road applications, as well as for marine and power generation under the FPT Industrial brand.

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 dealers. In addition, Financial Services provides wholesale financing to CNH Industrial 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.

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.

The CODM assesses segment performance and makes decisions about resource allocation based upon Adjusted EBIT and Adjusted EBITDA. The Company believes Adjusted EBIT and Adjusted EBITDA more fully reflect segment and consolidated profitability. Adjusted

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EBIT is defined as net income/(loss) before income taxes, interest expenses of Industrial Activities, 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.

Adjusted EBITDA is defined as Adjusted EBIT plus depreciation and amortization (including on assets under operating leases and assets sold under buy-back commitments). With reference to Financial Services, the CODM assesses the performance of the segment 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 and Adjusted EBITDA for the three and nine months ended September 30, 2019 and 2018.

	Three Months Ended September 30, 2019
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other			Total Industrial Activities			Financial Services		Eliminations			Total
	(in millions)
Revenues	$	2,446	$	664	$	2,331	$	940	$	(489	)	$	5,892		$	487	$	(19	)	$	6,360
Net income(1)												561			82		—			643
Add back:
Income tax expense												(520		)	34		—			(486		)
Interest expense of Industrial Activities, net of interest income and eliminations												62			—		—			62
Foreign exchange losses, net												19			—		—			19
Finance and non-service component of Pension and OPEB costs(2)												(16		)	—		—			(16		)
Adjustments:
Restructuring expenses	9		18		9		5		—			41			1		—			42
Other discrete items(3)	—		—		135		—		2			137			—		—			137
Adjusted EBIT	$	152	$	10	$	70	$	81	$	(29	)	$	284		$	117	$	—		$	401
Depreciation and amortization	69		13		49		29		2			162			—		—			162
Depreciation of assets on operating lease and assets sold with buy-back commitment	—		—		77		—		—			77			60		—			137
Adjusted EBITDA	$	221	$	23	$	196	$	110	$	(27	)	$	523		$	177	$	—		$	700

(1) For Industrial Activities, net income is net of “Results from intersegment investments”.

(2) 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 certain healthcare benefits in the U.S.

(3) In the three months ended September 30, 2019, this item includes other asset optimization charges of $135 million due to actions included in the 'Transform 2 Win' Strategic Business Plan announced at the Company's Capital Markets Day on September 3, 2019.

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	Nine Months Ended September 30, 2019
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other			Total Industrial Activities			Financial Services		Eliminations			Total
	(in millions)
Revenues	$	8,031	$	2,061	$	7,443	$	3,109	$	(1,678	)	$	18,966		$	1,480	$	(62	)	$	20,384
Net income(1)												1,066			268		—			1,334
Add back:
Income tax expense												(362		)	101		—			(261		)
Interest expense of Industrial Activities, net of interest income and eliminations												181			—		—			181
Foreign exchange losses, net												39			—		—			39
Finance and non-service component of Pension and OPEB costs(2)												(47		)	—		—			(47		)
Adjustments:
Restructuring expenses	27		22		20		5		1			75			3		—			78
Other discrete items(3)	—		—		135		—		2			137			—		—			137
Adjusted EBIT	$	661	$	48	$	221	$	279	$	(120	)	$	1,089		$	372	$	—		$	1,461
Depreciation and amortization	213		42		143		92		2			492			2		—			494
Depreciation of assets on operating lease and assets sold with buy-back commitment	—		—		235		—		—			235			184		—			419
Adjusted EBITDA	$	874	$	90	$	599	$	371	$	(118	)	$	1,816		$	558	$	—		$	2,374

(1) For Industrial Activities, net income is net of “Results from intersegment investments”.

(2) 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 certain healthcare benefits in the U.S.

(3) In the nine months ended September 30, 2019, this item includes other asset optimization charges of $135 million due to actions included in the 'Transform 2 Win' Strategy.

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	Three Months Ended September 30, 2018
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other			Total Industrial Activities			Financial Services		Eliminations			Total
	(in millions)
Revenues	$	2,636	$	726	$	2,404	$	972	$	(493	)	$	6,245		$	469	$	(28	)	$	6,686
Net income(1)												139			92		—			231
Add back:
Income tax expense												100			31		—			131
Interest expense of Industrial Activities, net of interest income and eliminations												79			—		—			79
Foreign exchange losses, net												12			—		—			12
Finance and non-service component of Pension and OPEB costs(2)												(17		)	—		—			(17		)
Adjustments:
Restructuring expenses	3		—		5		—		—			8			—		—			8
Adjusted EBIT	$	196	$	26	$	68	$	82	$	(51	)	$	321		$	123	$	—		$	444
Depreciation and amortization	75		15		53		31		—			174			—		—			174
Depreciation of assets on operating lease and assets sold with buy-back commitment	1		—		95		—		—			96			59		—			155
Adjusted EBITDA	$	272	$	41	$	216	$	113	$	(51	)	$	591		$	182	$	—		$	773

(1) For Industrial Activities, net income is net of “Results from intersegment investments”.

(2) 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 certain healthcare benefits in the U.S.

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	Nine Months Ended September 30, 2018
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other			Total Industrial Activities			Financial Services		Eliminations			Total
	(in millions)
Revenues	$	8,527	$	2,207	$	7,788	$	3,376	$	(1,774	)	$	20,124		$	1,469	$	(89	)	$	21,504
Net income(1)												544			297		—			841
Add back:
Income tax expense												202			110		—			312
Interest expense of Industrial Activities, net of interest income and eliminations												260			—		—			260
Foreign exchange losses, net												134			—		—			134
Finance and non-service component of Pension and OPEB costs(2)												(3		)	—		—			(3		)
Adjustments:
Restructuring expenses	4		—		11		1		—			16			—		—			16
Adjusted EBIT	$	778	$	59	$	209	$	285	$	(178	)	$	1,153		$	407	$	—		$	1,560
Depreciation and amortization	229		46		161		98		1			535			3		—			538
Depreciation of assets on operating lease and assets sold with buy-back commitment	2		—		291		—		—			293			185		—			478
Adjusted EBITDA	$	1,009	$	105	$	661	$	383	$	(177	)	$	1,981		$	595	$	—		$	2,576

(1) For Industrial Activities, net income is net of “Results from intersegment investments”.

(2) This item includes the pre-tax gain of $50 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of certain healthcare benefits in the U.S.

9. RECEIVABLES

Financing Receivables, net

A summary of financing receivables as of September 30, 2019 and December 31, 2018 is as follows:

	September 30, 2019		December 31, 2018
	(in millions)
Retail	$	9,002	$	9,350
Wholesale	9,382		9,749
Other	71		68
Total	$	18,455	$	19,167

Past due balances of financing receivables still accruing finance income represent the total balance held (principal plus accrued interest) with any payment amounts 30 days or more past the contractual payment due date. Non-performing financing receivables represent loans for which the Company has ceased accruing finance income. These receivables are generally 120 days delinquent. Finance income for non-performing receivables is recognized on a cash basis. Accrual of finance income is resumed when the receivable becomes contractually current and collections are reasonably assured.

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The aging of financing receivables as of September 30, 2019 and December 31, 2018 is as follows (in millions):

	September 30, 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	$	24	$	6	$	—	$	30	$	6,210	$	6,240	$	9	$	6,249
Europe	—		—		—		—		146		146		—		146
South America	13		2		8		23		1,739		1,762		38		1,800
Rest of World	3		2		1		6		801		807		—		807
Total Retail	$	40	$	10	$	9	$	59	$	8,896	$	8,955	$	47	$	9,002
Wholesale
North America	$	4	$	—	$	—	$	4	$	3,669	$	3,673	$	3	$	3,676
Europe	14		13		32		59		4,207		4,266		—		4,266
South America	—		—		1		1		722		723		53		776
Rest of World	8		6		5		19		645		664		—		664
Total Wholesale	$	26	$	19	$	38	$	83	$	9,243	$	9,326	$	56	$	9,382

	December 31, 2018
	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	$	21	$	5	$	—	$	26	$	6,285	$	6,311	$	12	$	6,323
Europe	1		—		10		11		164		175		40		215
South America	11		9		7		27		1,885		1,912		83		1,995
Rest of World	2		1		—		3		814		817		—		817
Total Retail	$	35	$	15	$	17	$	67	$	9,148	$	9,215	$	135	$	9,350
Wholesale
North America	$	—	$	—	$	—	$	—	$	3,613	$	3,613	$	18	$	3,631
Europe	20		9		—		29		4,727		4,756		—		4,756
South America	—		—		—		—		656		656		—		656
Rest of World	7		3		—		10		696		706		—		706
Total Wholesale	$	27	$	12	$	—	$	39	$	9,692	$	9,731	$	18	$	9,749

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Allowance for credit losses activity for the three and nine months ended September 30, 2019 and 2018 is as follows:

	Three Months Ended September 30, 2019
	Retail			Wholesale			Other		Total
Opening balance	$	319		$	158		$	—	$	477
Provision	11			2			—		13
Charge-offs, net of recoveries	(17		)	(2		)	—		(19		)
Foreign currency translation and other	(18		)	(3		)	—		(21		)
Ending balance	$	295		$	155		$	—	$	450

	Nine Months Ended September 30, 2019
	Retail			Wholesale			Other		Total
Opening Balance	$	326		$	164		$	—	$	490
Provision (benefit)	34			3			—		37
Charge-offs, net of recoveries	(44		)	(8		)	—		(52		)
Foreign Currency Translation and Other	(21		)	(4		)	—		(25		)
Ending Balance	295			155			—		450
Ending Balance: Individually Evaluated for Impairment	188			123			—		311
Ending Balance: Collectively Evaluated for Impairment	107			32			—		139
Receivables:
Ending Balance	9,002			9,382			71		18,455
Ending Balance: Individually Evaluated for Impairment	319			241			—		560
Ending Balance: Collectively Evaluated for Impairment	$	8,683		$	9,141		$	71	$	17,895

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	Three Months Ended September 30, 2018
	Retail			Wholesale			Other		Total
Opening balance	$	349		$	193		$	—	$	542
Provision	13			(12		)	—		1
Charge-offs, net of recoveries	(20		)	(4		)	—		(24		)
Foreign currency translation and other	(6		)	(5		)	—		(11		)
Ending balance	$	336		$	172		$	—	$	508

	Nine Months Ended September 30, 2018
	Retail			Wholesale			Other		Total
Opening Balance	$	383		$	200		$	—	$	583
Provision (benefit)	38			(9		)	—		29
Charge-offs, net of recoveries	(60		)	(5		)	—		(65		)
Foreign Currency Translation and Other	(25		)	(14		)	—		(39		)
Ending Balance	336			172			—		508
Ending Balance: Individually Evaluated for Impairment	217			143			—		360
Ending Balance: Collectively Evaluated for Impairment	119			29			—		148
Receivables:
Ending Balance	9,152			9,140			74		18,366
Ending Balance: Individually Evaluated for Impairment	329			330			—		659
Ending Balance: Collectively Evaluated for Impairment	$	8,823		$	8,810		$	74	$	17,707

Allowance for credit losses activity for the year ended December 31, 2018 is as follows:

	December 31, 2018
	Retail			Wholesale			Other		Total
Opening Balance	$	383		$	200		$	—	$	583
Provision (benefit)	53			(5		)	—		48
Charge-offs, net of recoveries	(85		)	(15		)	—		(100		)
Foreign Currency Translation and Other	(25		)	(16		)	—		(41		)
Ending Balance	326			164			—		490
Ending Balance: Individually Evaluated for Impairment	204			135			—		339
Ending Balance: Collectively Evaluated for Impairment	122			29			—		151
Receivables:
Ending Balance	9,350			9,749			68		19,167
Ending Balance: Individually Evaluated for Impairment	359			314			—		673
Ending Balance: Collectively Evaluated for Impairment	$	8,991		$	9,435		$	68	$	18,494

Financing receivables are considered impaired when it is probable that the Company will be unable to collect all amounts due according to the contractual terms. Receivables reviewed for impairment generally include those that are either past due, have provided bankruptcy notification, or require significant collection efforts. Impaired receivables are generally classified as non-performing.

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	September 30, 2019								December 31, 2018
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Investment		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Investment
	(in millions)
With an allowance recorded
Retail
North America	$	37	$	36	$	19	$	39	$	31	$	30	$	16	$	33
Europe	$	204	$	204	$	146	$	215	$	234	$	234	$	167	$	249
South America	$	76	$	76	$	21	$	83	$	91	$	91	$	20	$	88
Rest of World	$	2	$	2	$	2	$	3	$	3	$	3	$	1	$	4
Wholesale
North America	$	5	$	5	$	2	$	8	$	25	$	23	$	5	$	27
Europe	$	217	$	217	$	93	$	241	$	256	$	256	$	107	$	260
South America	$	15	$	8	$	16	$	16	$	23	$	14	$	16	$	26
Rest of World	$	4	$	3	$	12	$	7	$	10	$	10	$	7	$	9
Total
Retail	$	319	$	318	$	188	$	340	$	359	$	358	$	204	$	374
Wholesale	$	241	$	233	$	123	$	272	$	314	$	303	$	135	$	322

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 experiencing financial difficulties. As a collateral based lender, the Company typically will repossess collateral in lieu of restructuring receivables. As such, for retail receivables, concessions are typically provided based on bankruptcy court proceedings. For wholesale receivables, concessions granted may include extended contract maturities, inclusion of interest-only periods, modification of a contractual interest rate to a below market interest rate and waiving of interest and principal.

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

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

As of September 30, 2019, the Company had 284 retail and finance lease contracts classified as TDRs where a court in the North America region 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 undergoing bankruptcy proceedings where a concession has not yet been determined. As of September 30, 2018, the Company had 278 retail and finance lease contracts classified as TDRs where a court in the North America region has determined the concession. The pre-modification value of these contracts was $9 million and the post-modification value was $9 million. Additionally, the Company had 365 accounts with a balance of $17 million undergoing bankruptcy proceedings in North America 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, 2019 and 2018.

As of September 30, 2019, the Company had retail and finance lease receivable contracts classified as TDRs in Europe. The pre-modification value was $88 million and the post-modification value was $81 million. 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, 2019.

As of September 30, 2019 and 2018, the Company’s wholesale TDR agreements 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

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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, 2019 and December 31, 2018, the carrying amount of such restricted assets included in financing receivables above are the following (in millions):

	Restricted Receivables
	September 30, 2019		December 31, 2018
Retail note and finance lease receivables	$	6,322	$	6,371
Wholesale receivables	6,480		7,052
Total	$	12,802	$	13,423

10. INVENTORIES

Inventories as of September 30, 2019 and December 31, 2018 consist of the following:

	September 30, 2019		December 31, 2018
	(in millions)
Raw materials	$	1,493	$	1,293
Work-in-process	776		576
Finished goods	5,847		4,857
Total inventories	$	8,116	$	6,726

11. 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; the Company recognizes lease expense ($4 million in the three months ended September 30, 2019 and $12 million in the nine months ended September 30, 2019) for these leases on a straight-line basis over the lease term.

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, 2019, the Company has recorded approximately $397 million of a right-of-use asset and $395 million of lease liability included in Other Assets and Other Liabilities, respectively.

During the nine months ended September 30, 2019, leased assets obtained in exchange for operating lease obligations were $50 million. The operating cash outflow for amounts included in the measurement of operating lease obligations was $116 million.

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At September 30, 2019, 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 3.6%, respectively.

Future minimum lease payments repayments under non-cancellable leases as of September 30, 2019 were as follows:

Operating Leases	($ million)
2019 (excluding the nine months ended September 2019)	$	34
2020	113
2021	77
2022	54
2023	42
2024 and thereafter	133
Total future minimum lease payments	$	453
Less: Interest	(58		)
Total	$	395

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:

	Amount
	(in millions)
2019	$	148
2020	165
2021	100
2022	37
2023 and thereafter	17
Total undiscounted lease payments	$	467

12. INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES

A summary of investments in unconsolidated subsidiaries and affiliates as of September 30, 2019 and December 31, 2018 is as follows:

	September 30, 2019		December 31, 2018
	(in millions)
Equity method	$	501	$	523
Cost method	134		3
Total	$	635	$	526

During the three months ended September 30, 2019, CNH Industrial announced a strategic and exclusive Heavy-Duty Truck partnership with Nikola Corporation, a U.S. based leader in fuel cell truck technology. In this context, CNH Industrial made an initial subscription to Nikola's share capital (approximately 2.5% shareholding) through a cash contribution of $50 million and an in-kind contribution of $50 million, granting Nikola access to certain Iveco technology (reported as revenue). The investment in Nikola is accounted for using the cost method and is expected, in coming quarters, to grow to reflect an additional $150 million of contributions ($50 million of cash and $100 million in services).

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13. GOODWILL AND OTHER INTANGIBLES

Changes in the carrying amount of goodwill for the nine months ended September 30, 2019 are as follows:

	Agriculture		Construction		Commercial and Specialty Vehicles			Powertrain		Financial Services			Total
	(in millions)
Balance at Balance at January 1, 2019	$	1,646	$	587	$	62		$	5	$	153		$	2,453
Foreign currency translation and other	4		—		(4		)	—		(1		)	(1		)
Balance at Balance at September 30, 2019	$	1,650	$	587	$	58		$	5	$	152		$	2,452

As of September 30, 2019 and December 31, 2018, the Company’s other intangible assets and related accumulated amortization consisted of the following:

		September 30, 2019						December 31, 2018
	Weighted Avg. Life	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
		(in millions)
Other intangible assets subject to    amortization:
Dealer networks	15	$	318	$	217	$	101	$	320	$	207	$	113
Patents, concessions and licenses and other	5-25	1,889		1,503		386		1,879		1,477		402
		2,207		1,720		487		2,199		1,684		515
Other intangible assets not subject to    amortization:
Trademarks		273		—		273		273		—		273
Total Other intangible assets		$	2,480	$	1,720	$	760	$	2,472	$	1,684	$	788

CNH Industrial recorded amortization expense of $28 million and $27 million for the three months ended September 30, 2019 and 2018, respectively, and $82 million and $87 million for the nine months ended September 30, 2019 and 2018, respectively.

14. OTHER LIABILITIES

A summary of Other liabilities as of September 30, 2019 and December 31, 2018 is as follows:

	September 30, 2019		December 31, 2018
	(in millions)
Repurchase price on buy-back agreements	$	1,556	$	1,870
Warranty and campaign programs	891		925
Marketing and sales incentive programs	1,282		1,329
Tax payables	617		685
Accrued expenses and deferred income	620		609
Accrued employee benefits	602		680
Lease liabilities	395		—
Legal reserves and other provisions	326		368
Contract reserve	289		262
Contract liabilities(1)	1,206		1,368
Restructuring reserve	99		71
Other	756		791
Total	$	8,639	$	8,958

(1) Contract liabilities include $645 million and $773 million at September 30, 2019 and December 31, 2018, respectively, for future rents related to buy-back agreements.

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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, 2019 and 2018 for the basic warranty and accruals for campaign programs are as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)						(in millions)
Balance at beginning of period	$	941		$	927		$	925		$	932
Current year additions	162			166			566			603
Claims paid	(170		)	(162		)	(553		)	(532		)
Currency translation adjustment and other	(42		)	(14		)	(47		)	(86		)
Balance at September 30	$	891		$	917		$	891		$	917

Restructuring Provision

The Company incurred restructuring expenses of $42 million and $78 million during the three and nine months ended September 30, 2019, respectively, primarily attributable to actions taken by CNH Industrial in the context of the 'Transform 2 Win' Strategic Business Plan announced at the Company's Capital Markets Day on September 3, 2019. Restructuring costs recognized in the period refer to the asset write-offs related to the recently announced closure of two plants and other activities related to the previously announced launch of a new organization structure focused on operating segments. The Company incurred restructuring expenses of $8 million and $16 million during the three and nine months ended September 30, 2018, respectively.

15. 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.

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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, 2019 and December 31, 2018, environmental reserves of approximately $32 million and $38 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, 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 Medium and Heavy ("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 base 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 various other jurisdictions. The extent and outcome of these claims cannot be predicted at this time.

Guarantees

CNH Industrial provided guarantees on the debt or commitments of third parties and performance guarantees on non-consolidated affiliates as of September 30, 2019 and December 31, 2018 totaling of $438 million and $471 million, respectively.

16. 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

26

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 $7.3 billion and $7.2 billion at September 30, 2019 and December 31, 2018, 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, 2019 and 2018.

All of CNH Industrial’s interest rate derivatives outstanding as of September 30, 2019 and December 31, 2018 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 $5.2 billion and $5.4 billion at September 30, 2019 and December 31, 2018, respectively.

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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 during the three months and nine months ended September 30, 2019 and 2018 (in millions):

				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
2019
Foreign exchange contracts	$	(42	)
				Net sales	2
				Cost of goods sold	(17		)
				Other, Net	(3		)
Interest rate contracts	(6		)	Interest expense	(3		)
Total	$	(48	)		$	(21	)
2018
Foreign currency contracts	$	20
				Net sales	(2		)
				Cost of goods sold	(6		)
				Other, Net	10
Interest rate contracts	(4		)	Interest expense	(2		)
Total	$	16			$	—

				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
2019
Foreign exchange contracts	(87		)
				Net sales	(2		)
				Cost of goods sold	(46		)
				Other, Net	(10		)
Interest rate contracts	(26		)	Interest expense	(6		)
Total	(113		)		$	(64	)
2018
Foreign currency contracts	31
				Net sales	(1		)
				Cost of goods sold	14
				Other, Net	24
Interest rate contracts	9			Interest expense	(4		)
Total	$	40			$	33

28

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, 2019 and 2018:

In Millions	Before-Tax Amount			Income Tax			After-Tax Amount
Accumulated derivative net losses as of December 31, 2018	$	(23	)	$	1		$	(22	)
Net changes in fair value of derivatives	(113		)	20			(93		)
Net losses reclassified from accumulated other comprehensive income into income	64			(10		)	54
Accumulated derivative net losses as of September 30, 2019	$	(72	)	$	11		$	(61	)

In Millions	Before-Tax Amount			Income Tax			After-Tax Amount
Accumulated derivative net losses as of December 31, 2017	$	1		$	—		$	1
Net changes in fair value of derivatives	40			(2		)	38
Net losses reclassified from accumulated other comprehensive income into income	(33		)	5			(28		)
Accumulated derivative net losses as of September 30, 2018	$	8		$	3		$	11

The following tables summarize the impact that changes in the fair value of fair value hedges and derivatives not designated as hedging instruments had on earnings (in millions) for the three and nine months ended September 30, 2019:

		For the Three Months Ended September 30,
	Classification of Gain	2019		2018
Fair Value Hedges
Interest rate derivatives	Interest expense	$	7	$	(3	)
Not Designated as Hedges
Foreign exchange contracts	Other, Net	$	29	$	24

		For the Nine Months Ended September 30,
	Classification of Gain	2019			2018
Fair Value Hedges
Interest rate derivatives	Interest expense	$	38		$	(13	)
Not Designated as Hedges
Foreign exchange contracts	Other, Net	$	(39	)	$	133

29

The fair values of CNH Industrial’s derivatives as of September 30, 2019 and December 31, 2018 in the condensed consolidated balance sheets are recorded as follows:

	September 30, 2019		December 31, 2018
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	61	Derivative assets	21
Foreign currency contracts	Derivative assets	38	Derivative assets	52
Total derivative assets designated as hedging instruments		99		73
Interest rate contracts	Derivative liabilities	44	Derivative liabilities	29
Foreign currency contracts	Derivative liabilities	80	Derivative liabilities	41
Total derivative liabilities designated as hedging instruments		124		70
Derivatives not designated as hedging instruments under Subtopic 815-20
Interest rate contracts	Derivative assets	—	Derivative assets	1
Foreign currency contracts	Derivative assets	36	Derivative assets	24
Total derivative assets not designated as hedging instruments		36		25
Interest rate contracts	Derivative liabilities	—	Derivative liabilities	—
Foreign currency contracts	Derivative liabilities	8	Derivative liabilities	38
Total derivative liabilities not designated as hedging instruments		8		38

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, 2019 and December 31, 2018:

	Level 1				Level 2						Total
	September 30, 2019		December 31, 2018		September 30, 2019			December 31, 2018			September 30, 2019			December 31, 2018
	(in millions)
Assets
Foreign exchange derivatives	$	—	$	—	$	74		$	76		$	74		$	76
Interest rate derivatives	—		—		61			22			61			22
Investments	1		1		—			—			1			1
Total Assets	$	1	$	1	$	135		$	98		$	136		$	99
Liabilities
Foreign exchange derivatives	$	—	$	—	$	(88	)	$	(79	)	$	(88	)	$	(79	)
Interest rate derivatives	—		—		(44		)	(29		)	(44		)	(29		)
Total Liabilities	$	—	$	—	$	(132	)	$	(108	)	$	(132	)	$	(108	)

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.

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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, 2019 and December 31, 2018 are as follows:

	September 30, 2019				December 31, 2018
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in millions)
Financing receivables	$	18,455	$	18,345	$	19,167	$	19,017
Debt	$	23,906	$	24,366	$	24,445	$	24,481

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.

17. 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, the Company’s share of other comprehensive income (loss) of entities accounted for using the equity method, and reclassifications for amounts included in net income (loss) less net income (loss) and other comprehensive income (loss) attributable to the noncontrolling interest. For more information on derivative instruments, see “Note 16: Financial Instruments”. For more information on pensions and retirement benefit obligations, see “Note 6: Employee Benefit Plans and Postretirement Benefits”. The Company’s other comprehensive income (loss) amounts are aggregated within accumulated other comprehensive income (loss). The tax effect for each component of other comprehensive income (loss) consisted of the following (in millions):

	Three Months Ended September 30, 2019
	Gross Amount			Income Taxes		Net Amount
Unrealized gain (loss) on cash flow hedges	$	(28	)	$	6	$	(22	)
Changes in retirement plans’ funded status	(15		)	6		(9		)
Foreign currency translation	31			—		31
Share of other comprehensive (loss) of entities using the    equity method	(14		)	—		(14		)
Other comprehensive income (loss)	$	(26	)	$	12	$	(14	)

	Nine Months Ended September 30, 2019
	Gross Amount			Income Taxes		Net Amount
Unrealized gain (loss) on cash flow hedges	$	(50	)	$	11	$	(39	)
Changes in retirement plans’ funded status	(37		)	14		(23		)
Foreign currency translation	109			—		109
Share of other comprehensive loss of entities using the equity method	(17		)	—		(17		)
Other comprehensive income (loss)	$	5		$	25	$	30

31

	Three Months Ended September 30, 2018
	Gross Amount			Income Taxes			Net Amount
Unrealized gain (loss) on cash flow hedges	$	16		$	(1	)	$	15
Changes in retirement plans’ funded status	(14		)	8			(6		)
Foreign currency translation	(38		)	—			(38		)
Share of other comprehensive income of entities using the    equity method	(18		)	—			(18		)
Other comprehensive income (loss)	$	(54	)	$	7		$	(47	)

	Nine Months Ended September 30, 2018
	Gross Amount			Income Taxes			Net Amount
Unrealized gain (loss) on cash flow hedges	$	8		$	2		$	10
Changes in retirement plans’ funded status	585			(135		)	450
Foreign currency translation	(373		)	—			(373		)
Share of other comprehensive income of entities using the equity method	(36		)	—			(36		)
Other comprehensive income (loss)	$	184		$	(133	)	$	51

The changes, net of tax, in each component of accumulated other comprehensive income (loss) consisted of the following (in millions):

	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, 2018	$	1		$	(950	)	$	(899	)	$	(118	)	$	(1,966	)
Other comprehensive income (loss), before reclassifications	38			438			(373		)	(29		)	74
Amounts reclassified from other comprehensive income	(28		)	12			—			—			(16		)
Other comprehensive income (loss) *	10			450			(373		)	(29		)	58
Balance, Balance, September 30, 2018	$	11		$	(500	)	$	(1,272	)	$	(147	)	$	(1,908	)
Balance, January 1, 2019	$	(22	)	$	(473	)	$	(1,216	)	$	(148	)	$	(1,859	)
Other comprehensive income (loss), before reclassifications	(93		)	30			111			(17		)	31
Amounts reclassified from other comprehensive income (loss)	54			(53		)	—			—			1
Other comprehensive income (loss) *	(39		)	(23		)	111			(17		)	32
Reclassification of certain tax effects	—			(65		)	—			—			(65		)
Balance, September 30, 2019	$	(61	)	$	(561	)	$	(1,105	)	$	(165	)	$	(1,892	)

(*) Excluded from the table above is other comprehensive income (loss) allocated to noncontrolling interests of $(2) million and $(7) million for the nine months ended September 30, 2019 and 2018, respectively.

32

Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three and nine months ended September 30, 2019 and 2018 consisted of the following:

	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,
	2019			2018			2019			2018
	(in millions)						(in millions)
Cash flow hedges	$	(2	)	$	2		$	2		$	1		Net sales
	17			6			46			(14		)	Cost of goods sold
	3			(10		)	10			(24		)	Other, net
	3			2			6			4			Interest expense
	(4		)	1			(10		)	5			Income taxes
	$	17		$	1		$	54		$	(28	)
Change in retirement plans’ funded status:
Amortization of actuarial losses	$	18		$	20		$	52		$	62		*
Amortization of prior service cost	(32		)	(30		)	(91		)	(52		)	*
	(4		)	(3		)	(14		)	2			Income taxes
	$	(18	)	$	(13	)	$	(53	)	$	12
Total reclassifications, net of tax	$	(1	)	$	(12	)	$	1		$	(16	)

(*) 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.

18. 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, 2019, EXOR N.V. held 42.2% 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, 2019. 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, 2019 and 2018.

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.

33

These transactions with FCA are reflected in the Company’s condensed consolidated financial statements as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(in millions)				(in millions)
Net sales	$	171	$	168	$	533	$	564
Cost of goods sold	$	69	$	86	$	265	$	348
Selling, general and administrative expenses	$	34	$	36	$	102	$	112

	September 30, 2019		December 31, 2018
	(in millions)
Trade receivables	$	15	$	10
Trade payables	$	73	$	118

Transactions with Unconsolidated Subsidiaries and Affiliates

CNH Industrial sells commercial vehicles, agricultural and construction equipment, and provides technical services to unconsolidated subsidiaries and affiliates such as IVECO-OTO MELARA Società Consortile a responsabilità limitata, CNH de Mexico SA de CV, Turk Traktor ve Ziraat Makineleri A.S. and New Holland HFT Japan Inc. CNH Industrial also purchases equipment from unconsolidated subsidiaries and affiliates, such as Turk Traktor ve Ziraat Makineleri A.S. These transactions primarily affected revenues, finance and interest income, cost of goods sold, trade receivables and payables and are presented as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(in millions)				(in millions)
Net sales	$	175	$	201	$	677	$	845
Cost of goods sold	$	121	$	113	$	377	$	356

	September 30, 2019		December 31, 2018
	(in millions)
Trade receivables	$	103	$	107
Trade payables	$	89	$	103

At September 30, 2019 and December 31, 2018, CNH Industrial had provided guarantees on commitments of its joint ventures for an amount of $140 million and $160 million, respectively, mainly related to IVECO-OTO MELARA Società Consortile a responsabilità limitata. At September 30, 2019 and December 31, 2018, CNH Industrial had provided guarantees on commitments of its associated company for an amount of $265 million and $261 million respectively, related to CNH Industrial Capital Europe S.a.S.

19. SUPPLEMENTAL INFORMATION

The operations and key financial measures and financial analysis differ significantly for manufacturing and distribution businesses and financial services businesses; therefore, management believes that certain supplemental disclosures are important in understanding the consolidated operations and financial results of CNH Industrial. This supplemental data is as follows:

Industrial Activities - The financial information captioned “Industrial Activities” reflects the consolidation of all majority-owned subsidiaries except for Financial Services. Financial Services has been included using the equity method of accounting whereby the net income and net assets of Financial Services are reflected, respectively, in “Equity in income of unconsolidated subsidiaries and affiliates” in the accompanying condensed consolidated statements of operations, and in “Investment in Financial Services” in the accompanying condensed consolidated balance sheets.

Financial Services - The financial information captioned “Financial Services” reflects the consolidation or combination of Financial Services business.

Transactions between the “Industrial Activities” and “Financial Services” have been eliminated to arrive at the condensed consolidated financial statements.

34

	Statement of Operations
	Industrial Activities						Financial Services
	Three Months Ended September 30,						Three Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Revenues
Net sales	$	5,892		$	6,245		$	—		$	—
Finance, interest and other income	23			23			487			469
Total Revenues	$	5,915		$	6,268		$	487		$	469
Costs and Expenses
Cost of goods sold	$	5,015		$	5,162		$	—		$	—
Selling, general and administrative expenses	485			481			55			42
Research and development expenses	238			254			—			—
Restructuring expenses	41			8			1			—
Interest expense	85			102			149			138
Other, net	—			24			173			175
Total Costs and Expenses	$	5,864		$	6,031		$	378		$	355
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates	51			237			109			114
Income tax (expense) benefit	520			(100		)	(34		)	(31		)
Equity in income of unconsolidated subsidiaries      and affiliates	(10		)	2			7			9
Results from intersegment investments	82			92			—			—
Net income	$	643		$	231		$	82		$	92

	Statement of Operations
	Industrial Activities						Financial Services
	Nine Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Revenues
Net sales	$	18,966		$	20,124		$	—		$	—
Finance, interest and other income	76			73			1,480			1,469
Total Revenues	$	19,042		$	20,197		$	1,480		$	1,469
Costs and Expenses
Cost of goods sold	$	15,732		$	16,606		$	—		$	—
Selling, general and administrative expenses	1,475			1,553			159			153
Research and development expenses	755			743			—			—
Restructuring expenses	75			16			3			—
Interest expense	257			333			451			410
Other, net	34			228			518			524
Total Costs and Expenses	$	18,328		$	19,479		$	1,131		$	1,087
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates	714			718			349			382
Income tax (expense) benefit	362			(202		)	(101		)	(110		)
Equity in income of unconsolidated subsidiaries      and affiliates	(10		)	28			20			25
Results from intersegment investments	268			297			—			—
Net income	$	1,334		$	841		$	268		$	297

35

	Balance Sheets
	Industrial Activities				Financial Services
	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
	(in millions)
ASSETS
Cash and cash equivalents	$	2,956	$	4,553	$	428	$	478
Restricted cash	108		—		673		772
Trade receivables, net	423		398		30		34
Financing receivables, net	1,321		1,253		19,582		20,252
Inventories, net	7,895		6,510		221		216
Property, plant and equipment, net	5,190		5,899		1		2
Investments in unconsolidated subsidiaries and affiliates	3,244		3,126		223		219
Equipment under operating leases	40		34		1,763		1,740
Goodwill	2,300		2,301		152		152
Other intangible assets, net	745		774		15		14
Deferred tax assets	1,072		635		155		175
Derivative assets	81		81		62		24
Other assets	2,099		1,707		313		323
Total Assets	$	27,474	$	27,271	$	23,618	$	24,401
LIABILITIES AND EQUITY
Debt	$	6,729	$	6,347	$	19,625	$	20,436
Trade payables	5,133		5,771		83		173
Deferred tax liabilities	14		83		290		250
Pension, postretirement and other postemployment benefits	1,356		1,470		18		18
Derivative liabilities	92		89		48		26
Other liabilities	7,990		8,413		724		681
Total Liabilities	$	21,314	$	22,173	$	20,788	$	21,584
Equity	6,126		5,068		2,830		2,817
Redeemable noncontrolling interest	34		30		—		—
Total Liabilities and Equity	$	27,474	$	27,271	$	23,618	$	24,401

36

	Statements of Cash Flows
	Industrial Activities						Financial Services
	Nine Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Operating activities:
Net income	$	1,334		$	841		$	268		$	297
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	492			535			2			3
Depreciation and amortization expense of assets under operating leases and assets sold under buy-back commitments	235			293			184			185
Loss on disposal of assets	3			—			—			—
Undistributed loss of unconsolidated subsidiaries	(32		)	(147		)	(20		)	(25		)
Other non-cash items	110			80			40			29
Changes in operating assets and liabilities:
Provisions	(133		)	(88		)	(11		)	3
Deferred income taxes	(503		)	(8		)	58			15
Trade and financing receivables related to sales, net	(38		)	(56		)	96			513
Inventories, net	(1,395		)	(1,186		)	337			338
Trade payables	(416		)	(10		)	(89		)	(36		)
Other assets and liabilities	(506		)	(306		)	51			55
Net cash provided by (used in) operating activities	$	(849	)	$	(52	)	$	916		$	1,377
Investing activities:
Additions to retail receivables	—			—			(3,027		)	(3,040		)
Collections of retail receivables	—			—			3,218			3,029
Proceeds from sale of assets, net of assets sold under operating leases and assets sold under buy-back commitments	10			3			—			—
Expenditures for property, plant and equipment and intangible assets, net of assets under operating leases and sold under buy-back commitments	(323		)	(288		)	(2		)	(5		)
Expenditures for assets under operating leases and assets sold under buy-back commitments	(404		)	(505		)	(540		)	(454		)
Other	(2		)	696			23			(470		)
Net cash used in investing activities	$	(719	)	$	(94	)	$	(328	)	$	(940	)
Financing activities:
Proceeds from long-term debt	1,315			616			8,671			10,682
Payments of long-term debt	(735		)	(1,242		)	(9,455		)	(11,197		)
Net increase (decrease) in other financial liabilities	(18		)	23			253			196
Dividends paid	(280		)	(240		)	(211		)	(129		)
Other	(45		)	(156		)	20			39
Net cash provided by (used in) financing activities	$	237		$	(999	)	$	(722	)	$	(409	)
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash	(158		)	(207		)	(15		)	(55		)
Decrease in cash and cash equivalents and restricted cash	(1,489		)	(1,352		)	(149		)	(27		)
Cash and cash equivalents and restricted cash, beginning of year	4,553			4,901			1,250			1,299
Cash and cash equivalents and restricted cash, end of period	$	3,064		$	3,549		$	1,101		$	1,272

37

20. SUBSEQUENT EVENTS

On October 31, 2019, CNH Industrial announced it has agreed the sale of its Truckline parts business, a distributor of aftermarket commercial vehicle parts and accessories in Australia.

On November 4, 2019, CNH Industrial announced the acquisition of the Australian agricultural tillage and crop implement manufacturer K-Line Ag.

On November 5, 2019, CNH Industrial announced the acquisition of ATI, Inc., a global manufacturer of rubber track systems for high horsepower tractors and combine harvesters.

On November 7, 2019, in connection with the expiration of the previous buyback program, CNH Industrial announced the launch of its new share buyback program (the “Program”). The Program will involve the repurchase from time to time of up to $700 million in the Company’s common shares and is intended to optimize the capital structure of the Company and to meet the obligations arising from the Company’s equity incentive plans. The Program has a duration up to and including October 11, 2020, will be funded by the Company’s liquidity and will be conducted in the framework of the buyback authorization granted by the Shareholders’ Meeting held on April 12, 2019.

38

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

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. Unless otherwise indicated or the context otherwise requires, the terms “CNH Industrial” and the “Company” refer to CNH Industrial and its subsidiaries.

The Company has five reportable segments reflecting the five businesses directly managed by CNH Industrial N.V., consisting of: (i) Agriculture, which designs, produces and sells agricultural equipment (ii) Construction, which designs, produces and sells construction equipment (iii) Commercial and Specialty Vehicles, which designs, produces and sell trucks, commercial and specialty vehicles, and buses, (iv) Powertrain, which designs, produces and sells engines, transmissions and axles for those vehicles and engines for marine and power generation applications; and (v) Financial Services, which provides financial services to customers acquiring our products. The Company’s worldwide agricultural equipment, construction equipment, commercial and specialty vehicles, powertrain operations as well as corporate functions are collectively referred to as “Industrial Activities.”

The following discussion and analysis should be read in conjunction with our unaudited condensed consolidated financial statements and the notes to our unaudited condensed consolidated financial statements in this report, as well as our annual report on Form 20-F for the year ended December 31, 2018 filed with the U.S. Securities and Exchange Commission (“SEC”). Results for the interim periods presented are not necessarily indicative of the results to be expected for the full fiscal year due to seasonal and other factors.

Certain financial information in this report has been presented by geographic area. Starting from the first quarter of 2019, the composition of CNH Industrial's regions has been revised as follows: (1) North America; (2) Europe; (3) South America and (4) Rest of World. The geographic designations have the following meanings:

• North America (formerly NAFTA): United States, Canada and Mexico;

• Europe: member countries of the European Union, European Free Trade Association, Ukraine, and Balkans, formerly included in EMEA;

• South America (formerly LATAM): 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), formerly included in APAC, and African continent and Middle East, formerly included in EMEA.

Non-GAAP Financial Measures

We monitor our operations through the use of several non-GAAP financial measures. We believe that these non-GAAP financial measures provide useful and relevant information regarding our operating results and enhance the reader’s ability to assess our financial performance and financial position. These measures facilitate management’s ability to identify operational trends as well as make decisions regarding future spending, resource allocations and other operational decisions as they provide additional transparency with respect to our core operations. These financial measures have no standardized meaning in U.S. GAAP, and are unlikely to be comparable to other similarly titled measures used by other companies and are not intended to be substitutes for measures of financial performance and financial position as prepared in accordance with U.S. GAAP.

Our primary non-GAAP financial measures are defined as follows:

Adjusted EBIT

Adjusted EBIT is defined as net income (loss) before income taxes, interest expenses of Industrial Activities, net, restructuring expenses, the finance and non-service component of pension and other post-employment 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. We provide a reconciliation of Net Income (Loss), the most directly comparable U.S. GAAP financial measure included in our consolidated statements of operations, to Adjusted EBIT and Adjusted EBITDA.

Adjusted EBITDA

Adjusted EBITDA is defined as Adjusted EBIT plus depreciation and amortization including on assets sold under operating leases and assets sold under buy-back commitments. We provide a reconciliation of Net Income (Loss), the most directly comparable U.S. GAAP financial measure included in our consolidated statements of operations, to Adjusted EBIT and Adjusted EBITDA.

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Net Debt and Net Debt of Industrial Activities (or Net Industrial Debt)

Net Debt is defined as total debt less intersegment notes receivable, cash and cash equivalents, restricted cash and derivative hedging debt. We provide a reconciliation of Total Debt, which is the most directly comparable U.S. GAAP financial measure included in our consolidated balance sheets, to Net Debt. Due to different sources of cash flows used for the repayment of the debt between Industrial Activities and Financial Services (by cash from operations for Industrial Activities and by collection of financing receivables for Financial Services), management separately evaluates the cash flow performance of Industrial Activities using Net Debt of Industrial Activities.

Revenues on a Constant Currency Basis

We discuss the fluctuations in revenues on a constant currency basis by applying the prior-year average exchange rates to current year’s revenue expressed in local currency in order to eliminate the impact of foreign exchange (“FX”) rate fluctuations.

Free Cash Flow of Industrial Activities

Free Cash Flow of Industrial Activities (or Industrial Free Cash Flow): refers to Industrial Activities, only, and is computed as consolidated cash flow from operating activities less: cash flow from operating activities of Financial Services; investments of Industrial Activities in assets sold under buy-back commitments, assets under operating leases, property, plant and equipment and intangible assets; change in derivatives hedging debt of Industrial Activities; as well as other changes and intersegment eliminations.

RESULTS OF OPERATIONS

The operations, and key financial measures and financial analysis, differ significantly for manufacturing and distribution businesses and financial services businesses; therefore, management believes that certain supplemental disclosures are important in understanding our consolidated operations and financial results. For further information, see “Note 19: Supplemental Information” to our condensed consolidated financial statements for the nine months ended September 30, 2019, where we present supplemental consolidating data split by Industrial Activities and Financial Services. Industrial Activities include the Financial Services business on the equity basis of accounting. Transactions between Industrial Activities and Financial Services have been eliminated to arrive at the consolidated data.

Planned Spin-off of On-Highway Business

On September 3, 2019, the Company announced its intention to separate its "On-Highway" (commercial vehicles and powertrain) and "Off-Highway" (agriculture, construction and specialty vehicles) businesses. The separation is expected to be effected through the spin-off of CNH Industrial N.V.’s equity interest in "On-Highway" to CNH Industrial N.V. shareholders. The proposed spin-off is expected to be completed in early 2021, subject to approval at an Extraordinary General Meeting of shareholders.

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Three Months Ended September 30, 2019 Compared to Three Months Ended September 30, 2018

Consolidated Results of Operations

	Three Months Ended September 30,
	2019			2018
	(in millions)
Revenues:
Net sales	$	5,892		$	6,245
Finance, interest and other income	468			441
Total Revenues	6,360			6,686
Costs and Expenses:
Cost of goods sold	5,015			5,162
Selling, general and administrative expenses	540			523
Research and development expenses	238			254
Restructuring expenses	42			8
Interest expense	192			189
Other, net	173			199
Total Costs and Expenses	6,200			6,335
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates	160			351
Income tax (expense) benefit	486			(131		)
Equity in income of unconsolidated subsidiaries and affiliates	(3		)	11
Net income	643			231
Net income attributable to noncontrolling interests	6			9
Net income attributable to CNH Industrial N.V.	$	637		$	222

Revenues

We recorded revenues of $6,360 million for the third quarter of 2019, down 4.9% compared to the third quarter of 2018 (down 2.6% on a constant currency basis). Net sales of Industrial Activities were $5,892 million in the third quarter of 2019, down 5.7% compared to the third quarter of 2018 (down 3.2% on a constant currency basis), as lower sales volume and negative currency translation offset positive price realization.

Cost of Goods Sold

Cost of goods sold were $5,015 million for the third quarter of 2019 compared with $5,162 million for the third quarter of 2018. As a percentage of net sales of Industrial Activities, cost of goods sold was 85.1% in the third quarter of 2019 (82.7% for the third quarter of 2018). In the third quarter of 2019, cost of goods sold includes $135 million of asset optimization charges included in the Company's previously announced 'Transform 2 Win' Strategy.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were $540 million during the third quarter of 2019 (8.5% of total revenues), up $17 million compared to the third quarter of 2018 (7.8% of total revenues).

Research and Development Expenses

For the third quarter of 2019, research and development expenses were $238 million compared to $254 million for the third quarter of 2018. The expenses in both periods were primarily attributable to spending on engine development costs associated with emission requirements and continued investment in new products.

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Restructuring Expenses

Restructuring expenses for the third quarter of 2019 were $42 million, compared to $8 million for the third quarter of 2018. The expenses in the third quarter of 2019 were primarily attributable to actions taken by CNH Industrial in the context of the 'Transform 2 Win' Strategy announced on September 3, 2019. Restructuring costs recognized in the period refer to the assets write-offs related to the recently announced closure of two plants and other activities related to the previously announced launch of a new organization structure focused on operating segments.

Interest Expense

Interest expense was $192 million for the third quarter of 2019 compared to $189 million for the third quarter of 2018. The interest expense attributable to Industrial Activities for the third quarter of 2019, net of interest income and eliminations, was $62 million compared to $79 million in the third quarter of 2018. The decrease was primarily attributable to refinancing and early retirement of certain high yield debt.

Other, net

Other, net expenses were $173 million for the third quarter of 2019 and includes a pre-tax gain of $30 million as a result of the Benefit Modification Amortization over approximately 4.5 years of the $527 million positive impact from the Benefit Modification. Other, net expenses for the third quarter of 2019 also included foreign exchange losses of $19 million. Other, net expenses were $199 million for the third quarter of 2018 and included a pre-tax gain of $30 million due to the Benefit Modification Amortization. Other, net expenses for the third quarter of 2018 included foreign exchange losses of $12 million.

Income Taxes

	Three Months Ended September 30,
	2019			2018
	(in millions, except percentages)
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates	$	160		$	351
Income tax (expense) benefit	$	486		$	(131	)
Effective tax rate	(303.8		)%	37.3		%

Income tax benefit for the third quarter of 2019 was $486 million compared to income tax expense of $131 million for the third quarter of 2018. The effective tax rates for the third quarter of 2019 and 2018 were (303.8)% and 37.3%, respectively. The 2019 effective tax rate was primarily caused by a $539 million non-cash tax benefit associated with releasing valuation allowances on certain of the Company's deferred tax assets. Excluding the impacts of the non-cash tax benefit, restructuring, the Benefit Modification Amortization, and the asset optimization charges taken due to actions included in the 'Transform 2 Win' Strategy, the effective tax rate was 28% in the third quarter of 2019. Excluding the impacts of restructuring, the Benefit Modification Amortization and other discrete tax items, the effective tax rate was 36% in the third quarter of 2018.

Equity in Income of Unconsolidated Subsidiaries and Affiliates

Equity in income of unconsolidated subsidiaries and affiliates totaled $(3) million and $11 million for the third quarter of 2019 and 2018, respectively.

Net Income

Net income was $643 million in the third quarter of 2019, compared to net income of $231 million in the third quarter of 2018. In the third quarter of 2019, net income included a $539 million non-cash tax benefit due to the release of valuation allowances on certain net deferred tax assets and a charge of $135 million related to the asset optimization portion of the 'Transform 2 Win' Strategy. Net income also included a pre-tax gain of $30 million ($23 million net of tax impact) as a result of the Benefit Modification Amortization and a $42 million restructuring expense. In the third quarter of 2018, net income included $30 million ($23 million net of tax impact) as a result of the Benefit Modification Amortization and a charge of $8 million of restructuring expenses.

Industrial Activities and Business Segments

The following tables show revenues, Adjusted EBIT and Adjusted EBITDA by segment. We have also included a discussion of our results by Industrial Activities and each of our business segments.

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	Three Months Ended September 30,
	2019			2018			% Change		% Change Excl. FX
	(in millions, except percentages)
Revenues:
Agriculture	$	2,446		$	2,636		(7.2	)%	(6.0	)%
Construction	664			726			(8.5	)%	(7.8	)%
Commercial and Specialty Vehicles	2,331			2,404			(3.0	)%	0.9	%
Powertrain	940			972			(3.3	)%	0.5	%
Eliminations and other	(489		)	(493		)
Total Net sales of Industrial Activities	5,892			6,245			(5.7	)%	(3.2	)%
Financial Services	487			469			3.8	%	4.6	%
Eliminations and other	(19		)	(28		)
Total Revenues	$	6,360		$	6,686		(4.9	)%	(2.6	)%

	Three Months Ended September 30,
	2019			2018			$ Change			2019 Adj EBIT Margin		2018 Adj EBIT Margin
	(in millions, except percentages)
Adjusted EBIT by segment:
Agriculture	$	152		$	196		$	(44	)	6.2	%	7.4	%
Construction	10			26			(16		)	1.5	%	3.6	%
Commercial and Specialty Vehicles	70			68			2			3.0	%	2.8	%
Powertrain	81			82			(1		)	8.6	%	8.4	%
Unallocated items, eliminations and other	(29		)	(51		)	22
Total Industrial Activities	284			321			(37		)	4.8	%	5.1	%
Financial Services	117			123			(6		)	24.0	%	26.2	%
Eliminations and other	—			—			—
Adjusted EBIT	$	401		$	444		$	(43	)	6.3	%	6.6	%

	Three Months Ended September 30,
	2019			2018			$ Change			2019 Adj EBITDA Margin		2018 Adj EBITDA Margin
	(in millions, except percentages)
Adjusted EBITDA by segment:
Agriculture	$	221		$	272		$	(51	)	9.0	%	10.3	%
Construction	23			41			(18		)	3.5	%	5.6	%
Commercial and Specialty Vehicles	196			216			(20		)	8.4	%	9.0	%
Powertrain	110			113			(3		)	11.7	%	11.6	%
Unallocated items, eliminations and other	(27		)	(51		)	24
Total Industrial Activities	523			591			(68		)	8.9	%	9.5	%
Financial Services	177			182			(5		)	36.3	%	38.8	%
Eliminations and other	—			—			—
Adjusted EBITDA	$	700		$	773		$	(73	)	11.0	%	11.6	%

Net sales of Industrial Activities were $5,892 million during the third quarter of 2019, down 5.7% compared to the third quarter of 2018 (down 3.2% on a constant currency basis), as lower sales volume and negative currency translation offset positive price realization.

Adjusted EBIT of Industrial Activities was $284 million during the third quarter of 2019 ($321 million during the third quarter of 2018), equivalent to an Adjusted EBIT margin of 4.8%, down 30 basis points compared to the third quarter of 2018.

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Adjusted EBITDA of Industrial Activities was $523 million during the third quarter of 2019 compared to $591 million during the third quarter of 2018, with an Adjusted EBITDA margin of 8.9% (9.5% in the third quarter of 2018).

Business Segment Performance

Agriculture

Net Sales

The following table shows Agriculture net sales by geographic region for the three months ended September 30, 2019 compared to the three months ended September 30, 2018:

Agriculture Sales—by geographic region:

	Three Months Ended September 30,
(in millions, except percentages)	2019		2018		% Change
North America	$	877	$	945	(7.2	)%
Europe	788		822		(4.1	)%
South America	406		401		1.2	%
Rest of World	375		468		(19.9	)%
Total	$	2,446	$	2,636	(7.2	)%

Agriculture's net sales decreased 7.2% in the third quarter of 2019 compared to the third quarter of 2018 (down 6.0% on a constant currency basis). Industry volume deceleration, coupled with an unfavorable product mix, drove sales down, primarily in North America and the Rest of World geographies. This was partially offset by a sustained price realization performance in excess of 2 percentage points.

For the third quarter of 2019, worldwide industry unit sales for tractors were down 5% compared to the third quarter of 2018, while worldwide industry sales for combines were down 9%. In North America, industry volumes in the over 140 horsepower (“hp”) tractor market sector were down 5% and combines were down 12%. Industry volumes for under 140 hp tractors in North America were up 5%. European markets were up 2% and down 13% for tractors and combines, respectively. In South America, the tractor market decreased 13% and the combine market was flat. Rest of World markets decreased 7% for tractors and 10% for combines.

Adjusted EBIT

Adjusted EBIT was $152 million in the third quarter of 2019 ($196 million in the third quarter of 2018), representing an adjusted EBIT margin at 6.2%. Net price realization and sustained aftermarket activity were more than offset by the unfavorable volume and product mix impact, the lower fixed cost absorption primarily due to production adjustments to reflect the lower industry demand levels experienced during the third quarter, as well as higher product costs as result of increased raw material and tariffs.

Construction

Net Sales

The following table shows Construction net sales by geographic region for the three months ended September 30, 2019 compared to the three months ended September 30, 2018:

Construction Sales—by geographic region:

	Three Months Ended September 30,
(in millions, except percentages)	2019		2018		% Change
North America	$	341	$	388	(12.1	)%
Europe	105		116		(9.5	)%
South America	96		83		15.7	%
Rest of World	122		139		(12.2	)%
Total	$	664	$	726	(8.5	)%

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Construction's net sales decreased 8.5% in the third quarter of 2019 compared to the third quarter of 2018 (down 7.8% on a constant currency basis), as a result of lower production and sales volume in North America to rebalance channel inventory and in certain Rest of World markets as a result of lower industry demand, partially offset by positive price realization.

During the third quarter of 2019, Construction’s worldwide compact equipment industry sales were flat compared to the third quarter of 2018. Worldwide general equipment and road building and site equipment industry sales were down 5% and 7%, respectively.

Adjusted EBIT

Adjusted EBIT was $10 million in the third quarter of 2019 ($26 million in the third quarter of 2018), representing an adjusted EBIT margin of 1.5%. The decrease was due mainly to higher raw material cost and tariffs and to an acceleration of spending related to our quality excellence initiative, as announced at the Capital Markets Day held on September 3, 2019. These negative factors were partially offset by positive net price realization.

Commercial and Specialty Vehicles

Net Sales

The following table shows Commercial and Specialty Vehicles’ net sales by geographic region for the three months ended September 30, 2019 compared to the three months ended September 30, 2018:

Commercial and Specialty Vehicles Sales—by geographic region:

	Three Months Ended September 30,
(in millions, except percentages)	2019		2018		% Change
North America	$	17	$	3	n.m.
Europe	1,894		1,935		(2.1	)%
South America	126		167		(24.6	)%
Rest of World	294		299		(1.7	)%
Total	$	2,331	$	2,404	(3.0	)%

n.m. – not meaningful

Commercial and Specialty Vehicles’ net sales decreased 3.0% in the third quarter of 2019 compared to the third quarter of 2018 (substantially flat on a constant currency basis). Decreased volume in truck and bus, primarily related to the non-repeat of fleet transactions in Medium-duty trucks in Europe and extremely low industry demand in Argentina, were offset by increased deliveries in specialty vehicles and sustained activity in aftermarket.

During the third quarter of 2019, the European truck market (GVW ≥3.5 tons), excluding U.K. and Ireland, decreased 1% compared to the same period in 2018. In Europe, the Light Commercial Vehicles (“LCV”) market (GVW 3.5-7.49 tons) increased 11% and the Medium & Heavy (“M&H”) truck market (GVW ≥7.5 tons) decreased 21%. In South America, new truck registrations (GVW ≥3.5 tons) increased 20% over the same period of 2018 with an increase of 32% in Brazil, partially offset by a decrease of 30% in Argentina. In Rest of World, new truck registrations decreased by 5%.

In the third quarter of 2019, trucks’ estimated market share in the European truck market (GVW ≥3.5 tons), excluding U.K. and Ireland, was 11.4%, flat compared to the third quarter of 2018. Trucks' market share in South America in the third quarter of 2019 was 7.0%, down 1.8 p.p. compared to the third quarter of 2018.

Commercial and Specialty Vehicles delivered approximately 28,700 vehicles (including buses and specialty vehicles) in the third quarter of 2019, representing an 8% decrease from the same prior-year period. Volumes were 7% and 13% lower in LCV and M&H truck segments, respectively. Commercial and Specialty Vehicles’ deliveries were 5% lower in Europe and decreased 25% and 11% in South America and in Rest of World, respectively.

In the third quarter of 2019, trucks’ ratio of orders received to units shipped and billed, or book-to-bill ratio, for the European truck market was 0.91. In the third quarter of 2019, truck order intake in Europe decreased 10% compared to the third quarter of 2018, with a decrease of 12% and 1% in LCV and in M&H, respectively.

Adjusted EBIT

Adjusted EBIT was $70 million in the third quarter of 2019 ($68 million in the third quarter of 2018) and includes a gain of $50 million realized from granting to Nikola Corporation access to certain Iveco technology as part of the consideration for the initial interest in Nikola. Absent the Nikola gain, the adjusted EBIT would have been $20 million, a reduction of $48 million compared to

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the prior year, primarily due to higher production costs, mainly related to inflationary cost increases and supply chain inefficiencies in our truck and bus business, and higher expenses related to the launch of the new S-Way heavy-duty truck. Adjusted EBIT margin including the Nikola gain was 3.0% in third quarter of 2019, and was 0.9% excluding the Nikola deal.

Powertrain

Net Sales

Powertrain's net sales decreased 3.3% in the third quarter of 2019 compared to the third quarter of 2018 (substantially flat on a constant currency basis). Sales to external customers accounted for 51% of total net sales (52% in the third quarter of 2018).

During the third quarter of 2019, Powertrain sold approximately 139,900 engines, an increase of 4% compared to the third quarter of 2018. In terms of major customers, 22% of engine units were supplied to Commercial and Specialty Vehicles, 17% to Agriculture, 5% to Construction and the remaining 56% to external customers. Additionally, Powertrain delivered approximately 14,400 transmissions, a decrease of 7% compared to the third quarter of 2018, and approximately 35,900 axles, an increase of 3% compared to the third quarter of 2018.

Adjusted EBIT

Adjusted EBIT was $81 million for the third quarter of 2019 ($82 million in the third quarter of 2018), with positive net pricing and product cost efficiencies offset by an unfavorable mix of engine sales and increased product development activity supporting Powertrain’s electrification and alternative propulsion strategy. As well, incremental selling expenses were incurred related to the development of the third-party business portfolio, where certain new contracts were awarded during the quarter with a run-rate revenue potential in excess of $150 million annually. Adjusted EBIT margin was 8.6% in the third quarter of 2019 (up 20 bps compared to the third quarter of 2018).

Financial Services

Finance, Interest and Other Income

Financial Services' revenues totaled $487 million in the third quarter of 2019, a 3.8% increase compared to the third quarter of 2018 (up 4.6% on a constant currency basis), primarily due to higher average portfolios.

Net Income

Net income of Financial Services was $82 million for the third quarter of 2019, a decrease of $10 million compared to the third quarter of 2018, primarily attributable to differences in risk cost accruals period to period, and an acceleration of aged used equipment liquidation. Delinquencies continue to improve and reached a historical low of 2.8% in the third quarter of 2019.

In the third quarter of 2019, retail loan originations, including unconsolidated joint ventures, were $2.4 billion, flat compared to the third quarter of 2018. The managed portfolio, including unconsolidated joint ventures, was $25.5 billion as of September 30, 2019 (of which retail was 62% and wholesale 38%), flat compared to September 30, 2018. Excluding the impact of currency translation, the managed portfolio increased $0.8 billion compared to the same period in 2018.

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Reconciliation of Net Income (Loss) to Adjusted EBIT and Adjusted EBITDA

The following table includes the reconciliation of Adjusted EBIT and Adjusted EBITDA, non-GAAP financial measures, to net income, the most comparable U.S. GAAP financial measure.

	Three Months Ended September 30,
	2019			2018
	(in millions)
Net income	$	643		$	231
Income tax expense	(486		)	131
Interest expenses of Industrial Activities, net of interest income and eliminations	62			79
Foreign exchange (gains) losses, net	19			12
Finance and non-service component of Pension and other post-employment benefit costs	(16		)	(17		)
Restructuring expenses	42			8
Other discrete items(1)	137			—
Adjusted EBIT	$	401		$	444
Depreciation and Amortization	162			174
Depreciation of assets under operating leases and assets sold with buy-back commitments	137			155
Adjusted EBITDA	$	700		$	773

(1) For the three months ended September 30, 2019, this item includes other asset optimization charges for $135 million due to actions included in the 'Transform 2 Win' Strategy.

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Nine Months Ended September 30, 2019 Compared to Nine Months Ended September 30, 2018

Consolidated Results of Operations

	Nine Months Ended September 30,
	2019		2018
	(in millions)
Revenues:
Net sales	$	18,966	$	20,124
Finance, interest and other income	1,418		1,380
Total Revenues	20,384		21,504
Costs and Expenses:
Cost of goods sold	15,732		16,606
Selling, general and administrative expenses	1,634		1,706
Research and development expenses	755		743
Restructuring expenses	78		16
Interest expense	570		581
Other, net	552		752
Total Costs and Expenses	19,321		20,404
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates	1,063		1,100
Income tax (expense) benefit	261		(312		)
Equity in income of unconsolidated subsidiaries and affiliates	10		53
Net income	1,334		841
Net income attributable to noncontrolling interests	26		27
Net income attributable to CNH Industrial N.V.	$	1,308	$	814

Revenues

We recorded revenues of $20,384 million for the nine months ended September 30, 2019, a decrease of 5.2% (down 0.9% on a constant currency basis) compared to the nine months ended September 30, 2018. Net sales of Industrial Activities were $18,966 million in the nine months ended September 30, 2019, a decrease of 5.8% (down 1.3% on a constant currency basis) compared to the prior period as a result of an unfavorable foreign currency translation impact and lower sales volume.

Cost of Goods Sold

Cost of goods sold were $15,732 million for the nine months ended September 30, 2019 compared with $16,606 million for the nine months ended September 30, 2018. As a percentage of net sales of Industrial Activities, cost of goods sold was 82.9% in the nine months ended September 30, 2019 (82.5% for the nine months ended September 30, 2018). For the nine months ended September 30, 2019, cost of goods sold includes $135 million of asset optimization charges included in the Company's previously announced 'Transform 2 Win' Strategy.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were $1,634 million during the nine months ended September 30, 2019 (8.0% of total revenues), down $72 million compared to the nine months ended September 30, 2018 (7.9% of total revenues).

Research and Development Expenses

For the nine months ended September 30, 2019, research and development expenses were $755 million compared to $743 million for the nine months ended September 30, 2018. The expenses in both periods were primarily attributable to spending on engine development costs associated with emission requirements and continued investment in new products.

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Restructuring Expenses

Restructuring expenses for the nine months ended September 30, 2019 were $78 million compared to $16 million for the nine months ended September 30, 2018. The expenses in the nine months ended September 30, 2019 were primarily attributable to actions taken by CNH Industrial in the context of the 'Transform 2 Win' Strategy announced on September 3, 2019. Restructuring costs recognized in the period refer to asset write-offs related to the recently announced closure of two plants and other activities related to the previously announced launch of a new organization structure focused on operating segments.

Interest Expense

Interest expense was $570 million for the nine months ended September 30, 2019 compared to $581 million for the nine months ended September 30, 2018. The interest expense attributable to Industrial Activities for the nine months ended September 30, 2019, net of interest income and eliminations, was $181 million compared to $260 million in the nine months ended September 30, 2018. The decrease was primarily attributable to refinancing and early retirement of certain high yield debt, as well as lower average indebtedness.

Other, net

Other, net expenses were $552 million for the nine months ended September 30, 2019 and includes a pre-tax gain of $90 million as a result of the Benefit Modification Amortization over approximately 4.5 years of the $527 million positive impact from the Benefit Modification and foreign exchange losses of $39 million. Other, net expenses were $752 million for the nine months ended September 30, 2018 and included a pre-tax gain of $50 million due to the Benefit Modification Amortization and foreign exchange losses of $134 million.

Income Taxes

	Nine Months Ended September 30,
	2019			2018
	(in millions, except percentages)
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates	$	1,063		$	1,100
Income tax (expense) benefit	$	261		$	(312	)
Effective tax rate	(24.6		)%	28.4		%

Income tax benefit for the nine months ended September 30, 2019 was $261 million compared to income tax expense of $312 million for the nine months ended September 30, 2018. The effective tax rates for the nine months ended September 30, 2019 and 2018 were (24.6)% and 28.4%, respectively. The 2019 effective tax rate was primarily caused by the $539 million non-cash tax benefit, partially offset by restructuring expenses, discrete items, and pre-tax gain on the modification of a U.S healthcare plan. Excluding the impacts of the non-cash tax benefit, restructuring, the Benefit Modification Amortization, and the asset optimization charges taken due to actions included in the 'Transform 2 Win' Strategy, the effective tax rate was 25% in the nine months ended September 30, 2019. Excluding the impacts of restructuring, the Benefit Modification Amortization and other discrete tax items, the effective tax rate was 28% in the nine months ended September 30, 2018.

Equity in Income of Unconsolidated Subsidiaries and Affiliates

Equity in income of unconsolidated subsidiaries and affiliates totaled $10 million and $53 million for the nine months ended September 30, 2019 and 2018, respectively.

Net Income

Net income was $1,334 million in the nine months ended September 30, 2019 compared to net income of $841 million in the nine months ended September 30, 2018. Net income of $1,334 million in the nine months ended September 30, 2019 included a $539 million non-cash tax benefit due to the release of valuation allowances on certain net deferred tax assets accounted for in the third quarter of 2019, a charge of $135 million related to the asset optimization portion of the 'Transform 2 Win' Strategy, a pre-tax gain of $90 million ($68 million net of tax impact) as a result of the Benefit Modification Amortization and a $78 million restructuring expense. In the nine months ended September 30, 2018, net income included $50 million ($38 million net of tax impact) as a result of the Benefit Modification Amortization and a charge of $16 million of restructuring expenses.

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Industrial Activities and Business Segments

The following tables show revenues, Adjusted EBIT and Adjusted EBITDA by segment. We have also included a discussion of our results by Industrial Activities and each of our business segments.

	Nine Months Ended September 30,
	2019			2018			% Change		% Change Excl. FX
	(in millions, except percentages)
Revenues:
Agriculture	$	8,031		$	8,527		(5.8	)%	(2.6	)%
Construction	2,061			2,207			(6.6	)%	(4.3	)%
Commercial and Specialty Vehicles	7,443			7,788			(4.4	)%	1.8	%
Powertrain	3,109			3,376			(7.9	)%	(2.3	)%
Eliminations and other	(1,678		)	(1,774		)
Total Net sales of Industrial Activities	18,966			20,124			(5.8	)%	(1.3	)%
Financial Services	1,480			1,469			0.7	%	3.3	%
Eliminations and other	(62		)	(89		)
Total Revenues	$	20,384		$	21,504		(5.2	)%	(0.9	)%

	Nine Months Ended September 30,
	2019			2018			$ Change			2019 Adj EBIT Margin		2018 Adj EBIT Margin
	(in millions, except percentages)
Adjusted EBIT by segment:
Agriculture	$	661		$	778		$	(117	)	8.2	%	9.1	%
Construction	48			59			(11		)	2.3	%	2.7	%
Commercial and Specialty Vehicles	221			209			12			3.0	%	2.7	%
Powertrain	279			285			(6		)	9.0	%	8.4	%
Unallocated items, eliminations and other	(120		)	(178		)	58
Total Industrial Activities	1,089			1,153			(64		)	5.7	%	5.7	%
Financial Services	372			407			(35		)	25.1	%	27.7	%
Eliminations and other	—			—			—
Adjusted EBIT	$	1,461		$	1,560		$	(99	)	7.2	%	7.3	%

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	Nine Months Ended September 30,
	2019			2018			$ Change			2019 Adj EBITDA Margin		2018 Adj EBITDA Margin
	(in millions, except percentages)
Adjusted EBITDA by segment:
Agriculture	$	874		$	1,009		$	(135	)	10.9	%	11.8	%
Construction	90			105			(15		)	4.4	%	4.8	%
Commercial and Specialty Vehicles	599			661			(62		)	8.0	%	8.5	%
Powertrain	371			383			(12		)	11.9	%	11.3	%
Unallocated items, eliminations and other	(118		)	(177		)	59
Total Industrial Activities	1,816			1,981			(165		)	9.6	%	9.8	%
Financial Services	558			595			(37		)	37.7	%	40.5	%
Eliminations and other	—			—			—
Adjusted EBITDA	$	2,374		$	2,576		$	(202	)	11.6	%	12.0	%

Net sales of Industrial Activities were $18,966 million during the nine months ended September 30, 2019, down 5.8% compared to the nine months ended September 30, 2018 (down 1.3% on a constant currency basis), as a result of unfavorable foreign currency translation and lower sales volume.

Adjusted EBIT of Industrial Activities was $1,089 million during the nine months ended September 30, 2019 compared to $1,153 million during the nine months ended September 30, 2018, with an Adjusted EBIT margin of 5.7%, flat compared to the nine months ended September 30, 2018.

Adjusted EBITDA of Industrial Activities was $1,816 million during the nine months ended September 30, 2019 compared to $1,981 million during the nine months ended September 30, 2018, with an Adjusted EBITDA margin of 9.6%, flat compared to the nine months ended September 30, 2018.

Business Segment Performance

Agriculture

Net Sales

The following table shows Agriculture net sales by geographic region for the nine months ended September 30, 2019 compared to the nine months ended September 30, 2018:

Agriculture Sales—by geographic region:

	Nine Months Ended September 30,
(in millions, except percentages)	2019		2018		% Change
North America	$	2,843	$	2,793	1.8	%
Europe	2,921		3,113		(6.2	)%
South America	1,126		1,110		1.4	%
Rest of World	1,141		1,511		(24.5	)%
Total	$	8,031	$	8,527	(5.8	)%

Agriculture's net sales decreased 5.8% in the nine months ended September 30, 2019 compared to the nine months ended September 30, 2018, down 2.6% on a constant currency basis, as a result of lower sales volume primarily in North America and Rest of World, and negative impact of foreign currency translation, partially offset by sustained positive price realization.

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For the nine months ended September 30, 2019, worldwide industry unit sales for tractors were down 7% compared to the nine months ended September 30, 2018, while worldwide industry sales for combines were down 2%. In North America, industry volumes in the over 140 hp tractor market sector were down 4% and combines were down 7%. Industry volumes for under 140 hp tractors in North America were up 4%. European markets were up 8% and down 18% for tractors and combines, respectively. In South America, the tractor market decreased 11% and the combine market increased 7%. Rest of World markets decreased 12% for tractors and increased 3% for combines.

Adjusted EBIT

Adjusted EBIT was $661 million for the nine months ended September 30, 2019 ($778 million for the nine months ended September 30, 2018), with Adjusted EBIT margin at 8.2%. Positive net price realization and sustained aftermarket activity was more than offset by unfavorable volume and product mix, lower fixed cost absorption and higher raw material product costs as a result of increased tariffs.

Construction

Net Sales

The following table shows Construction net sales by geographic region for the nine months ended September 30, 2019 compared to the nine months ended September 30, 2018:

Construction Sales—by geographic region:

	Nine Months Ended September 30,
	2019		2018		% Change
North America	$	1,035	$	1,113	(7.0	)%
Europe	371		389		(4.6	)%
South America	255		252		1.2	%
Rest of World	400		453		(11.7	)%
Total	$	2,061	$	2,207	(6.6	)%

Construction's net sales decreased 6.6% for the nine months ended September 30, 2019 compared to the nine months ended September 30, 2018, down 4.3% on a constant currency basis, primarily due to production and sales volume in North America to rebalance channel inventory and weaker markets in Rest of World, partially offset by positive price realization.

During the nine months ended September 30, 2019, Construction’s worldwide compact equipment industry sales were up 4% compared to the nine months ended September 30, 2018, while worldwide general equipment industry sales were down 1% compared to the nine months ended September 30, 2018 and worldwide road building and site equipment industry sales were down 9%.

Adjusted EBIT

Adjusted EBIT was $48 million for the nine months ended September 30, 2019 (down $11 million compared to the nine months ended September 30, 2018), with an Adjusted EBIT margin of 2.3%. The decrease was due to the increase in raw material costs, tariffs, and spending related to the quality excellence initiative in North America, partially offset by positive net price realization.

Commercial and Specialty Vehicles

Net Sales

The following table shows Commercial and Specialty Vehicles’ net sales by geographic region for the nine months ended September 30, 2019 compared to the nine months ended September 30, 2018:

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Commercial and Specialty Vehicles Sales—by geographic region:

	Nine Months Ended September 30,
(in millions, except percentages)	2019		2018		% Change
North America	$	47	$	9	n.m.
Europe	6,033		6,263		(3.7	)%
South America	433		555		(22.0	)%
Rest of World	930		961		(3.2	)%
Total	$	7,443	$	7,788	(4.4	)%

Commercial and Specialty Vehicles’ net sales decreased 4.4% in the nine months ended September 30, 2019 compared to the nine months ended September 30, 2018 (up 1.8% on a constant currency basis). Positive price across all geographies was more than offset by the negative impact of foreign currency translation.

During the nine months ended September 30, 2019, the European truck market (GVW ≥3.5 tons), excluding U.K. and Ireland, increased 9% compared to the same period in 2018. In Europe, the LCV market (GVW 3.5-7.49 tons) increased 12% and the M&H truck market (GVW ≥7.5 tons) increased 3%. In South America, new truck registrations (GVW ≥3.5 tons) increased 20% over the same period of 2018 with an increase of 43% in Brazil, partially offset by a decrease of 44% in Argentina. In Rest of World, new truck registrations decreased by 9%.

In the nine months ended September 30, 2019, trucks’ estimated market share in the European truck market (GVW ≥3.5 tons), excluding U.K. and Ireland, was 10.7%, down 1.1 percentage points compared to the nine months ended September 30, 2018. In the nine months ended September 30, 2019, trucks' market share in South America was 7.6%, down 2.3 p.p. compared to the nine months ended September 30, 2018.

Commercial and Specialty Vehicles delivered approximately 99,200 vehicles (including buses and specialty vehicles) in the nine months ended September 30, 2019, representing a 5% decrease compared to the same period of 2018. Volumes were down 2% in LCV and 15% lower in M&H truck segments. Commercial and Specialty Vehicles’ deliveries were lower 3% in Europe, and decreased 18% and 11% in South America and in Rest of World, respectively.

Adjusted EBIT

Adjusted EBIT was $221 million for the nine months ended September 30, 2019 ($209 million in the nine months ended September 30, 2018) and includes a gain of $50 million realized from granting to Nikola access to certain Iveco technology as part of the consideration for the initial interest in Nikola. Absent the Nikola gain, the adjusted EBIT would have been $171 million, a reduction of $38 million compared to the prior year due to higher production costs, mainly related to inflationary cost increases and supply chain inefficiencies in our truck and bus business and higher expenses related to the launch of the new S-Way heavy-duty truck. Adjusted EBIT margin including the Nikola gain increased 30 bps to 3.0% compared to the nine months ended September 30, 2018.

Powertrain

Net Sales

Powertrain's net sales decreased 7.9% in the nine months ended September 30, 2019 compared to the nine months ended September 30, 2018, down 2.3% on a constant currency basis due to lower sales volume. Sales to external customers accounted for 49% of total net sales (50% in the nine months ended September 30, 2018).

During the nine months ended September 30, 2019, Powertrain sold approximately 449,100 engines, a decrease of 1% compared to the nine months ended September 30, 2018. In terms of major customers, 25% of engine units were supplied to Commercial and Specialty Vehicles, 17% to Agriculture, 5% to Construction and the remaining 53% to external customers. Additionally, Powertrain delivered approximately 49,400 transmissions, a decrease of 10% compared to the nine months ended September 30, 2018, and approximately 133,000 axles, a decrease of 2% compared to the nine months ended September 30, 2018.

Adjusted EBIT

Adjusted EBIT was $279 million for the nine months ended September 30, 2019 ($285 million in the nine months ended September 30, 2018). Manufacturing efficiencies, favorable product mix and positive pricing were more than offset by higher product development

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investments supporting Powertrain's electrification and alternative propulsion strategy and negative foreign exchange impacts. Adjusted EBIT margin increased 60 bps to 9.0% in the nine months ended September 30, 2019.

Financial Services

Finance, Interest and Other Income

Financial Services' revenues totaled $1,480 million in the nine months ended September 30, 2019, a 0.7% increase compared to the nine months ended September 30, 2018 (up 3.3% on a constant currency basis), primarily due to higher used equipment sales and higher average portfolios, partially offset by pricing and the negative impact from the foreign currency translation.

Net Income

Net income of Financial Services was $268 million for the nine months ended September 30, 2019 compared to $297 million for the nine months ended September 30, 2018. The decrease is primarily attributable to pricing, the negative impact from currency translation and risk cost accruals, offset by higher average portfolios in South America and Rest of World and improved operating lease performance.

In the nine months ended September 30, 2019, retail loan originations, including unconsolidated joint ventures, were $7.1 billion, down $0.1 billion compared to the nine months ended September 30, 2018. The managed portfolio, including unconsolidated joint ventures, was $25.5 billion as of September 30, 2019 (of which retail was 62% and wholesale 38%), flat compared to September 30, 2018 (up $0,8 billion on a constant currency basis).

Reconciliation of Net Income (Loss) to Adjusted EBIT and Adjusted EBITDA

The following table includes the reconciliation of Adjusted EBIT and Adjusted EBITDA, non-GAAP financial measures, to net income, the most comparable U.S. GAAP financial measure.

	Nine Months Ended September 30,
	2019			2018
	(in millions)
Net income	$	1,334		$	841
Income tax expense	(261		)	312
Interest expenses of Industrial Activities, net of interest income and eliminations	181			260
Foreign exchange (gains) losses, net	39			134
Finance and non-service component of Pension and other post-employment benefit costs	(47		)	(3		)
Restructuring expenses	78			16
Other discrete items(1)	$	137		$	—
Adjusted EBIT	$	1,461		$	1,560
Depreciation and Amortization	494			538
Depreciation of assets under operating leases and assets sold with buy-back commitments	419			478
Adjusted EBITDA	$	2,374		$	2,576

(1) For the nine months ended September 30, 2019, this item mainly includes other asset optimization charges for $135 million due to actions included in the 'Transform 2 Win' Strategy.

CRITICAL ACCOUNTING POLICIES

See our critical accounting policies discussed in the Management’s Discussion and Analysis of the most recent annual report filed on Form 20-F. There have been no material changes to these policies.

LIQUIDITY AND CAPITAL RESOURCES

The following discussion of liquidity and capital resources principally focuses on our condensed consolidated statements of cash flows and our condensed consolidated balance sheets. Our operations are capital intensive and subject to seasonal variations in financing requirements for dealer receivables and dealer and company inventories. Whenever necessary, funds from operating activities are supplemented from external sources. We expect to have available cash reserves and cash generated from operations and from sources

54

of debt and financing activities that are sufficient to fund our working capital requirements, capital expenditures and debt service at least through the next twelve months.

Cash Flows

During the nine months ended September 30, 2019, consolidated cash, cash equivalents and restricted cash decreased by $1,638 million primarily as a result of $1,960 million usage in working capital, the repayment of the remaining outstanding CNH Industrial Finance Europe S.A. 2.75% notes for $621 million (€547 million), and of the CNH Industrial Capital LLC 3.375% notes for $500 million (€445 million), and the distribution of annual dividend to CNH Industrial N.V.'s shareholders for $275 million, partially offset by the issuance of €600 million ($679 million) in principal amount of 1.75% CNH Industrial Finance Europe S.A. notes due 2027 and the issuance of the CNH Industrial Finance Europe S.A. €500 million ($565 million) in principal amount of 1.625% notes due in 2029. Cash and cash equivalents of Industrial Activities decreased by $1,489 million, while cash and cash equivalents of Financial Services decreased by $149 million.

Cash Flows of Industrial Activities

Net cash used by operating activities was $849 million in the nine months ended September 30, 2019 compared to $52 million used by operating activities in the nine months ended September 30, 2018. The increase in cash usage was primarily due to increased net working capital mainly due to lower trade payables and higher inventories.

Net cash used by investing activities was $719 million in the nine months ended September 30, 2019 compared to $94 million used by investing activities in the nine months ended September 30, 2018. The increase in cash used by investing activities was primarily due to a decrease in net cash receipts related to intersegment receivables and payables included in Other changes.

Net cash provided from financing activities was $237 million in the nine months ended September 30, 2019 compared to net cash used of $999 million in the nine months ended September 30, 2018, which was primarily impacted by the repayment of the outstanding €853 million ($1.0 billion) CNH Industrial Finance Europe S.A. 6.25% notes, partially offset by new bond issuance.

Cash Flows of Financial Services

Net cash provided from operating activities was $916 million in the nine months ended September 30, 2019 compared to $1,377 million provided by operating activities in the nine months ended September 30, 2018.

Net cash used by investing activities was $328 million in the nine months ended September 30, 2019 compared to net cash used by investing activities of $940 million in the nine months ended September 30, 2018, primarily reflecting an increase in net cash received related to intersegment payables and receivables included in Other changes.

Net cash used by financing activities was $722 million in the nine months ended September 30, 2019 compared to $409 million used by financing activities in the nine months ended September 30, 2018. The increase in cash used was primarily due to higher net repayments of debt and an increase in dividends paid.

Debt

Our consolidated debt as of September 30, 2019 and December 31, 2018 is as detailed in the following table:

	Consolidated				Industrial Activities				Financial Services
	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
	(in millions)
Total Debt	$	23,906	$	24,445	$	6,729	$	6,347	$	19,625	$	20,436

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A summary of total debt as of September 30, 2019 and December 31, 2018, is as follows:

	September 30, 2019						December 31, 2018
	Industrial Activities		Financial Services		Total		Industrial Activities		Financial Services		Total
	(in millions)
Total Bonds	$	5,349	$	2,529	$	7,878	$	4,888	$	2,990	$	7,878
Asset-backed debt	—		10,700		10,700		—		11,268		11,268
Other debt	207		5,121		5,328		323		4,976		5,299
Intersegment debt	1,173		1,275		—		1,136		1,202		—
Total Debt	$	6,729	$	19,625	$	23,906	$	6,347	$	20,436	$	24,445

A summary of issued bonds outstanding as of September 30, 2019 is as follows:

	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	432	2.875	%	September 27, 2021	470
CNH Industrial Finance Europe S.A. (1)	EUR	75	1.625	%	March 29, 2022	81
CNH Industrial Finance Europe S.A. (1)	EUR	500	1.375	%	May 23, 2022	545
CNH Industrial Finance Europe S.A. (1)	EUR	500	2.875	%	May 17, 2023	545
CNH Industrial Finance Europe S.A. (1)	EUR	650	1.750	%	September 12, 2025	707
CNH Industrial Finance Europe S.A. (1)	EUR	100	3.500	%	November 12, 2025	109
CNH Industrial Finance Europe S.A. (1)	EUR	500	1.875	%	January 19, 2026	545
CNH Industrial Finance Europe S.A. (1)	EUR	600	1.750	%	March 25, 2027	653
CNH Industrial Finance Europe S.A. (1)	EUR	50	3.875	%	April 21, 2028	54
CNH Industrial Finance Europe S.A. (1)	EUR	500	1.625	%	July 3, 2029	545
CNH Industrial Finance Europe S.A. (1)	EUR	50	2.200	%	July 15, 2039	54
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						(59		)
Total Industrial Activities						$	5,349
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 LLC	USD	400	3.875	%	October 15, 2021	400
CNH Industrial Capital LLC	USD	500	4.375	%	April 5, 2022	500
CNH Industrial Capital LLC	USD	500	4.200	%	January 15, 2024	500
Hedging effects, bond premium/discount, and unamortized issuance costs						29
Total Financial Services						$	2,529

(1) Bond listed on the Irish Stock Exchange.

(2) Bond listed on the New York Stock Exchange.

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The calculation of Net Debt as of September 30, 2019 and December 31, 2018 and the reconciliation of Total Debt, the U.S. GAAP financial measure that we believe to be most directly comparable, to Net Debt are shown below:

	Consolidated						Industrial Activities						Financial Services
	September 30, 2019			December 31, 2018			September 30, 2019			December 31, 2018			September 30, 2019		December 31, 2018
	(in millions)
Third party debt(3)	$	23,906		$	24,445		$	5,556		$	5,211		$	18,350	$	19,234
Intersegment notes payable	—			—			1,173			1,136			1,275		1,202
Total Debt (1)	23,906			24,445			6,729			6,347			19,625		20,436
Less:
Cash and cash equivalents	3,384			5,031			2,956			4,553			428		478
Restricted cash	781			772			108			—			673		772
Intersegment notes receivable	—			—			1,275			1,202			1,173		1,136
Derivatives hedging debt	(2		)	(8		)	(2		)	(8		)	—		—
Net Debt (Cash) (2)	$	19,743		$	18,650		$	2,392		$	600		$	17,351	$	18,050

(1) Total Debt of Industrial Activities includes Intersegment notes payable to Financial Services of $1,173 million and $1,136 million as of September 30, 2019 and December 31, 2018, respectively. Total Debt of Financial Services includes Intersegment notes payable to Industrial Activities of $1,275 million and $1,202 million as of September 30, 2019 and December 31, 2018, respectively.

(2) The net intersegment receivable/payable balance owed by Financial Services to Industrial Activities was $102 million and $66 million as of September 30, 2019 and December 31, 2018, respectively.

(3) Includes adjustments related to fair value hedges.

The increase in Net Debt at September 30, 2019 compared to December 31, 2018 mainly reflects the seasonal cash usage related to operating activities, the distribution of the annual dividend to CNH Industrial N.V.'s shareholders for $275 million and the purchase of CNH Industrial N.V. shares for $45 million under the Company buy-back program.

The following table shows the change in Net Debt of Industrial Activities for the nine months ended September 30, 2019 and 2018:

(in millions)	2019			2018
Net Debt of Industrial Activities at beginning of period	$	(600	)	$	(908	)
Adjusted EBITDA of Industrial Activities	1,816			1,981
Cash interest and taxes	(328		)	(465		)
Changes in provisions and similar(1)	(366		)	(374		)
Change in working capital	(2,370		)	(1,706		)
Operating cash flow of Industrial Activities	(1,248		)	(564		)
Investments in property, plant and equipment, and intangible assets(2)	(323		)	(288		)
Other changes	(140		)	(22		)
Free cash flow of Industrial Activities	(1,711		)	(874		)
Capital increases and dividends(3)	(325		)	(396		)
Currency translation differences and other	244			189
Change in Net Debt of Industrial Activities	(1,792		)	(1,081		)
Net Debt of Industrial Activities at end of period	$	(2,392	)	$	(1,989	)

(1) Including other cash flow items related to operating lease and buy-back activities.

(2) Excluding assets sold under buy-back commitments and assets under operating leases.

(3) Including share buy-back transactions.

For the nine months ended September 30, 2019, the Free cash flow of Industrial Activities was an usage of $1,711 million, primarily due to the increase in net working capital.

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The following table shows the change in Net cash provided by (used in) Operating Activities to Free cash flow of Industrial Activities for the nine months ended September 30, 2019 and 2018:

(in millions)	2019			2018
Net cash provided by (used in) Operating Activities	$	(144	)	$	1,196
Net cash (provided by) used in Operating Activities of Financial Services	(916		)	(1,377		)
Intersegment eliminations	211			129
Net cash (provided by) used in Operating Activities of Industrial Activities	(849		)	(52		)
Change in derivatives hedging debt of Industrial Activities	5			(7		)
Investments in assets sold under buy-back commitments and operating lease assets of Industrial Activities	(404		)	(505		)
Operating cash flow of Industrial Activities	(1,248		)	(564		)
Investments in property plant and equipment, and intangible assets of Industrial Activities	(323		)	(288		)
Other changes (1)	(140		)	(22		)
Free cash flow of Industrial Activities	$	(1,711	)	$	(874	)

(1) This item primarily includes change in intersegment financial receivables and capital increases in intersegment investments.

In March 2019, CNH Industrial signed a five-year committed revolving credit facility for €4 billion ($4.5 billion at March 31, 2019 exchange rate) due to mature in 2024 with two extension options of 1-year each, exercisable on the first and second anniversary of the signing date. The credit facility replaces the existing five-year €1.75 billion credit facility due to mature in 2021. Available committed unsecured facilities expiring after twelve months amounted to approximately $5.3 billion at September 30, 2019 ($3.1 billion at December 31, 2018). Total committed secured facilities expiring after twelve months amounted to approximately $3.9 billion at September 30, 2019 ($3.9 billion at December 31, 2018) of which $1 billion was available at September 30, 2019 ($0.9 billion at December 31, 2018).

Please refer to “Note 10: Debt” in our most recent annual report on Form 20-F for more information related to our debt and credit facilities.

CONTINGENCIES

As a global company with a diverse business portfolio, CNH Industrial is exposed to numerous legal risks, including legal proceedings, claims and governmental investigations, particularly in the areas of product liability (including asbestos-related liability), product performance, emissions and fuel economy, retail and wholesale credit, competition and antitrust law, intellectual property matters (including patent infringement), disputes with dealers and suppliers and service providers, environmental risks, and tax and employment matters. For more information, please refer to the information presented in “Note 15: Commitments and Contingencies” to our condensed consolidated financial statements.

SAFE HARBOR STATEMENT

All statements other than statements of historical fact contained in this filing, including statements regarding our competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, earnings (or loss) per share, capital expenditures, dividends, capital structure or other financial items; costs; and plans and objectives of management regarding operations and products, are forward-looking statements. These statements may include terminology such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “outlook”, “continue”, “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “prospects”, “plan”, or similar terminology. Forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside our control and are difficult to predict. If any of these risks and uncertainties materialize or other assumptions underlying any of the forward-looking statements prove to be incorrect, the actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements.

Factors, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others: the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods-related products; general economic conditions in each of our markets; changes in government policies regarding banking, monetary and fiscal policy; legislation, particularly relating to capital goods-related issues such as agriculture, the

58

environment, debt relief and subsidy program policies, trade and commerce and infrastructure development; government policies on international trade and investment, including sanctions, import quotas, capital controls and tariffs; actions of competitors in the various industries in which we compete; development and use of new technologies and technological difficulties; the interpretation of, or adoption of new, compliance requirements with respect to engine emissions, safety or other aspects of our products; production difficulties, including capacity and supply constraints and excess inventory levels; labor relations; interest rates and currency exchange rates; inflation and deflation; energy prices; prices for agricultural commodities; housing starts and other construction activity; our ability to obtain financing or to refinance existing debt; a decline in the price of used vehicles; the resolution of pending litigation and investigations on a wide range of topics, including dealer and supplier litigation, follow-on private litigation in various jurisdictions after the settlement of the EU antitrust investigation announced on July 19, 2016, intellectual property rights disputes, product warranty and defective product claims, and emissions and/or fuel economy regulatory and contractual issues; the Company’s pension plans and other post-employment obligations; political and civil unrest; volatility and deterioration of capital and financial markets, including possible effects of “Brexit”, terror attacks in Europe and elsewhere; our ability to achieve the targets set out in the Strategic Business Plan announced on September 3, 2019 at our Capital Markets Day event; our ability to successfully implement the planned spin-off of the Company's On-Highway business; and other similar risks and uncertainties and our success in managing the risks involved in the foregoing.

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

All future written and oral forward-looking statements by CNH Industrial or persons acting on the behalf of CNH Industrial are expressly qualified in their entirety by the cautionary statements contained herein or referred to above.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

See our most recent annual report filed on Form 20-F (Part I, Item 11). There has been no material change in this information.

59

PART II – OTHER INFORMATION

LEGAL PROCEEDINGS

See “Note 15: Commitments and Contingencies” to our condensed consolidated financial statements.

RISK FACTORS

See our most recent annual report filed on Form 20-F (Part I, Item 3D). There was no material change in this information during the nine months ended September 30, 2019. The risks described in the annual report on Form 20-F and in the “Safe Harbor Statement” within this report are not the only risks faced by us. Additional risks and uncertainties not currently known or that are currently judged to be immaterial may also materially affect our business, financial condition or operating results.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The Company did not purchase any of its equity securities during any month of the third quarter of 2019.

DEFAULT UPON SENIOR SECURITIES

Not applicable.

MINE SAFETY DISCLOSURES

Not applicable.

OTHER INFORMATION

None.

60

XML

FINANCIAL INSTRUMENTS - Estimated Fair Values of Instruments Not Carried at Fair Value in Balance Sheets (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financing receivables	$ 18,455	$ 19,167
Debt	23,906	24,445
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financing receivables	18,345	19,017
Debt	$ 24,366	$ 24,481

XML

OTHER LIABILITIES - Summary of Other Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Other Liabilities Disclosure [Abstract]
Repurchase price on buy-back agreements	$ 1,556		$ 1,870
Warranty and campaign programs	891	$ 941	925	$ 917	$ 927	$ 932
Marketing and sales incentive programs	1,282		1,329
Tax payables	617		685
Accrued expenses and deferred income	620		609
Accrued employee benefits	602		680
Lease liabilities	395
Legal reserves and other provisions	326		368
Contract reserve	289		262
Contract liabilities	1,206		1,368
Restructuring reserve	99		71
Other	756		791
Total	8,639		8,958
Future rents related to buy-back agreements	$ 645		$ 773

XML

FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) $ in Billions	Sep. 30, 2019	Dec. 31, 2018
Foreign exchange derivatives
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Notional amount of foreign exchange derivatives	$ 7.3	$ 7.2
Interest rate derivatives
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Notional amount of foreign exchange derivatives	$ 5.2	$ 5.4

XML

RELATED PARTY INFORMATION - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
EXOR N.V.
Related Party Transaction [Line Items]
Percentage of common shares outstanding held by related parties	42.20%
IVECO-OTO MELARA Societa Consortile
Related Party Transaction [Line Items]
Pledged guarantees on commitments	$ 140	$ 160
CNH Industrial Capital Europe S.A.S.
Related Party Transaction [Line Items]
Pledged guarantees on commitments	$ 265	$ 261

XML

SUPPLEMENTAL INFORMATION - Cash Flow (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Operating activities:
Net income	$ 643	$ 231	$ 1,334	$ 841
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			494	538
Depreciation and amortization expense of assets under operating leases and assets sold under buy-back commitments			419	478
Loss on disposal of assets			3	0
Undistributed income (loss) of unconsolidated subsidiaries			5	(4)
Other non-cash items			150	109
Changes in operating assets and liabilities:
Provisions			(144)	(85)
Deferred income taxes			(445)	7
Trade and financing receivables related to sales, net			55	448
Inventories, net			(1,058)	(848)
Trade payables			(501)	(35)
Other assets and liabilities			(456)	(253)
Net cash provided by (used in) operating activities			(144)	1,196
Investing activities:
Additions to retail receivables			(3,027)	(3,040)
Collections of retail receivables			3,218	3,029
Proceeds from the sale of assets, net of assets under operating leases and assets sold under buy-back commitments			10	3
Expenditures for property, plant and equipment and intangible assets, net of assets under operating leases and assets sold under buy-back commitments			(325)	(293)
Expenditures for assets under operating leases and assets sold under buy-back commitments			(944)	(959)
Other			41	265
Net cash used in investing activities			(1,027)	(995)
Financing activities:
Proceeds from long-term debt			9,986	11,298
Payments of long-term debt			(10,190)	(12,439)
Net increase in other financial liabilities			235	219
Dividends paid			(280)	(240)
Other			(45)	(156)
Net cash used in financing activities			(294)	(1,318)
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash			(173)	(262)
Decrease in cash and cash equivalents and restricted cash			(1,638)	(1,379)
Cash and cash equivalents and restricted cash, beginning of year			5,803	6,200
Cash and cash equivalents and restricted cash, end of period	4,165	4,821	4,165	4,821
Industrial Activities
Operating activities:
Net income	643	231	1,334	841
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			492	535
Depreciation and amortization expense of assets under operating leases and assets sold under buy-back commitments			235	293
Loss on disposal of assets			3	0
Undistributed income (loss) of unconsolidated subsidiaries			(32)	(147)
Other non-cash items			110	80
Changes in operating assets and liabilities:
Provisions			(133)	(88)
Deferred income taxes			(503)	(8)
Trade and financing receivables related to sales, net			(38)	(56)
Inventories, net			(1,395)	(1,186)
Trade payables			(416)	(10)
Other assets and liabilities			(506)	(306)
Net cash provided by (used in) operating activities			(849)	(52)
Investing activities:
Additions to retail receivables			0	0
Collections of retail receivables			0	0
Proceeds from the sale of assets, net of assets under operating leases and assets sold under buy-back commitments			10	3
Expenditures for property, plant and equipment and intangible assets, net of assets under operating leases and assets sold under buy-back commitments			(323)	(288)
Expenditures for assets under operating leases and assets sold under buy-back commitments			(404)	(505)
Other			(2)	696
Net cash used in investing activities			(719)	(94)
Financing activities:
Proceeds from long-term debt			1,315	616
Payments of long-term debt			(735)	(1,242)
Net increase in other financial liabilities			(18)	23
Dividends paid			(280)	(240)
Other			(45)	(156)
Net cash used in financing activities			237	(999)
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash			(158)	(207)
Decrease in cash and cash equivalents and restricted cash			(1,489)	(1,352)
Cash and cash equivalents and restricted cash, beginning of year			4,553	4,901
Cash and cash equivalents and restricted cash, end of period	3,064	3,549	3,064	3,549
Financial Services
Operating activities:
Net income	82	92	268	297
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			2	3
Depreciation and amortization expense of assets under operating leases and assets sold under buy-back commitments			184	185
Loss on disposal of assets			0	0
Undistributed income (loss) of unconsolidated subsidiaries			(20)	(25)
Other non-cash items			40	29
Changes in operating assets and liabilities:
Provisions			(11)	3
Deferred income taxes			58	15
Trade and financing receivables related to sales, net			96	513
Inventories, net			337	338
Trade payables			(89)	(36)
Other assets and liabilities			51	55
Net cash provided by (used in) operating activities			916	1,377
Investing activities:
Additions to retail receivables			(3,027)	(3,040)
Collections of retail receivables			3,218	3,029
Proceeds from the sale of assets, net of assets under operating leases and assets sold under buy-back commitments			0	0
Expenditures for property, plant and equipment and intangible assets, net of assets under operating leases and assets sold under buy-back commitments			(2)	(5)
Expenditures for assets under operating leases and assets sold under buy-back commitments			(540)	(454)
Other			23	(470)
Net cash used in investing activities			(328)	(940)
Financing activities:
Proceeds from long-term debt			8,671	10,682
Payments of long-term debt			(9,455)	(11,197)
Net increase in other financial liabilities			253	196
Dividends paid			(211)	(129)
Other			20	39
Net cash used in financing activities			(722)	(409)
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash			(15)	(55)
Decrease in cash and cash equivalents and restricted cash			(149)	(27)
Cash and cash equivalents and restricted cash, beginning of year			1,250	1,299
Cash and cash equivalents and restricted cash, end of period	$ 1,101	$ 1,272	$ 1,101	$ 1,272

XML

FINANCIAL INSTRUMENTS - Fair Values of Derivatives (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Derivative assets	$ 135	$ 98
Derivative liabilities	132	108
Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative assets	99	73
Derivative liabilities	124	70
Derivatives designated as hedging instruments | Interest rate derivatives
Derivatives, Fair Value [Line Items]
Derivative assets	61	21
Derivative liabilities	44	29
Derivatives designated as hedging instruments | Foreign currency contracts
Derivatives, Fair Value [Line Items]
Derivative assets	38	52
Derivative liabilities	80	41
Derivatives not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative assets	36	25
Derivative liabilities	8	38
Derivatives not designated as hedging instruments | Interest rate derivatives
Derivatives, Fair Value [Line Items]
Derivative assets	0	1
Derivative liabilities	0	0
Derivatives not designated as hedging instruments | Foreign currency contracts
Derivatives, Fair Value [Line Items]
Derivative assets	36	24
Derivative liabilities	$ 8	$ 38

XML

RECEIVABLES - Summary of Financing Receivables (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, net	$ 18,455	$ 19,167	$ 18,366
Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, net	9,002	9,350	9,152
Wholesale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, net	9,382	9,749	9,140
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, net	$ 71	$ 68	$ 74

XML

EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
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	$ 50

XML

BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2019

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, 2018. 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. Actual results could differ materially from those estimates.

Certain financial information in this report has been presented by geographic area. Starting from the first quarter of 2019, the composition of CNH Industrial's regions has been revised as follows: (1) North America; (2) Europe; (3) South America and (4) Rest of World. The geographic designations have the following meanings:

• North America (formerly NAFTA): United States, Canada and Mexico;

• Europe: member countries of the European Union, European Free Trade Association, Ukraine, and Balkans, formerly included in EMEA;

• South America (formerly LATAM): 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), formerly included in APAC, and African continent and Middle East, formerly included in EMEA.

XML

SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2019

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 and Adjusted EBITDA for the three and nine months ended September 30, 2019 and 2018.

	Three Months Ended September 30, 2019
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other			Total Industrial Activities			Financial Services		Eliminations			Total
	(in millions)
Revenues	$	2,446	$	664	$	2,331	$	940	$	(489	)	$	5,892		$	487	$	(19	)	$	6,360
Net income(1)												561			82		—			643
Add back:
Income tax expense												(520		)	34		—			(486		)
Interest expense of Industrial Activities, net of interest income and eliminations												62			—		—			62
Foreign exchange losses, net												19			—		—			19
Finance and non-service component of Pension and OPEB costs(2)												(16		)	—		—			(16		)
Adjustments:
Restructuring expenses	9		18		9		5		—			41			1		—			42
Other discrete items(3)	—		—		135		—		2			137			—		—			137
Adjusted EBIT	$	152	$	10	$	70	$	81	$	(29	)	$	284		$	117	$	—		$	401
Depreciation and amortization	69		13		49		29		2			162			—		—			162
Depreciation of assets on operating lease and assets sold with buy-back commitment	—		—		77		—		—			77			60		—			137
Adjusted EBITDA	$	221	$	23	$	196	$	110	$	(27	)	$	523		$	177	$	—		$	700

(1) For Industrial Activities, net income is net of “Results from intersegment investments”.

(2) 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 certain healthcare benefits in the U.S.

(3) In the three months ended September 30, 2019, this item includes other asset optimization charges of $135 million due to actions included in the 'Transform 2 Win' Strategic Business Plan announced at the Company's Capital Markets Day on September 3, 2019.

	Nine Months Ended September 30, 2019
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other			Total Industrial Activities			Financial Services		Eliminations			Total
	(in millions)
Revenues	$	8,031	$	2,061	$	7,443	$	3,109	$	(1,678	)	$	18,966		$	1,480	$	(62	)	$	20,384
Net income(1)												1,066			268		—			1,334
Add back:
Income tax expense												(362		)	101		—			(261		)
Interest expense of Industrial Activities, net of interest income and eliminations												181			—		—			181
Foreign exchange losses, net												39			—		—			39
Finance and non-service component of Pension and OPEB costs(2)												(47		)	—		—			(47		)
Adjustments:
Restructuring expenses	27		22		20		5		1			75			3		—			78
Other discrete items(3)	—		—		135		—		2			137			—		—			137
Adjusted EBIT	$	661	$	48	$	221	$	279	$	(120	)	$	1,089		$	372	$	—		$	1,461
Depreciation and amortization	213		42		143		92		2			492			2		—			494
Depreciation of assets on operating lease and assets sold with buy-back commitment	—		—		235		—		—			235			184		—			419
Adjusted EBITDA	$	874	$	90	$	599	$	371	$	(118	)	$	1,816		$	558	$	—		$	2,374

(1) For Industrial Activities, net income is net of “Results from intersegment investments”.

(2) 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 certain healthcare benefits in the U.S.

(3) In the nine months ended September 30, 2019, this item includes other asset optimization charges of $135 million due to actions included in the 'Transform 2 Win' Strategy.

	Three Months Ended September 30, 2018
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other			Total Industrial Activities			Financial Services		Eliminations			Total
	(in millions)
Revenues	$	2,636	$	726	$	2,404	$	972	$	(493	)	$	6,245		$	469	$	(28	)	$	6,686
Net income(1)												139			92		—			231
Add back:
Income tax expense												100			31		—			131
Interest expense of Industrial Activities, net of interest income and eliminations												79			—		—			79
Foreign exchange losses, net												12			—		—			12
Finance and non-service component of Pension and OPEB costs(2)												(17		)	—		—			(17		)
Adjustments:
Restructuring expenses	3		—		5		—		—			8			—		—			8
Adjusted EBIT	$	196	$	26	$	68	$	82	$	(51	)	$	321		$	123	$	—		$	444
Depreciation and amortization	75		15		53		31		—			174			—		—			174
Depreciation of assets on operating lease and assets sold with buy-back commitment	1		—		95		—		—			96			59		—			155
Adjusted EBITDA	$	272	$	41	$	216	$	113	$	(51	)	$	591		$	182	$	—		$	773

(1) For Industrial Activities, net income is net of “Results from intersegment investments”.

(2) 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 certain healthcare benefits in the U.S.

	Nine Months Ended September 30, 2018
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other			Total Industrial Activities			Financial Services		Eliminations			Total
	(in millions)
Revenues	$	8,527	$	2,207	$	7,788	$	3,376	$	(1,774	)	$	20,124		$	1,469	$	(89	)	$	21,504
Net income(1)												544			297		—			841
Add back:
Income tax expense												202			110		—			312
Interest expense of Industrial Activities, net of interest income and eliminations												260			—		—			260
Foreign exchange losses, net												134			—		—			134
Finance and non-service component of Pension and OPEB costs(2)												(3		)	—		—			(3		)
Adjustments:
Restructuring expenses	4		—		11		1		—			16			—		—			16
Adjusted EBIT	$	778	$	59	$	209	$	285	$	(178	)	$	1,153		$	407	$	—		$	1,560
Depreciation and amortization	229		46		161		98		1			535			3		—			538
Depreciation of assets on operating lease and assets sold with buy-back commitment	2		—		291		—		—			293			185		—			478
Adjusted EBITDA	$	1,009	$	105	$	661	$	383	$	(177	)	$	1,981		$	595	$	—		$	2,576

(1) For Industrial Activities, net income is net of “Results from intersegment investments”.

(2)

This item includes the pre-tax gain of $50 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of certain healthcare benefits in the U.S.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues
Net sales	$ 5,892	$ 6,245	$ 18,966	$ 20,124
Finance, interest and other income	468	441	1,418	1,380
Total Revenues	6,360	6,686	20,384	21,504
Costs and Expenses
Cost of goods sold	5,015	5,162	15,732	16,606
Selling, general and administrative expenses	540	523	1,634	1,706
Research and development expenses	238	254	755	743
Restructuring expenses	42	8	78	16
Interest expense	192	189	570	581
Other, net	173	199	552	752
Total Costs and Expenses	6,200	6,335	19,321	20,404
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates	160	351	1,063	1,100
Income tax (expense)	486	(131)	261	(312)
Equity in income of unconsolidated subsidiaries and affiliates	(3)	11	10	53
Net income	643	231	1,334	841
Net income attributable to noncontrolling interests	6	9	26	27
Net income attributable to CNH Industrial N.V.	$ 637	$ 222	$ 1,308	$ 814
Earnings (loss) per share attributable to common shareholders
Basic (in usd per share)	$ 0.47	$ 0.16	$ 0.97	$ 0.60
Diluted (in usd per share)	0.47	0.16	0.97	0.60
Cash dividends declared per common share (in usd per share)	$ 0	$ 0	$ 0.203	$ 0.173

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INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES (Tables)

9 Months Ended

Sep. 30, 2019

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, 2019 and December 31, 2018 is as follows:

	September 30, 2019		December 31, 2018
	(in millions)
Equity method	$	501	$	523
Cost method	134		3
Total	$	635	$	526

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LEASES

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

LEASES

LEASES

Lessee

The Company has mainly operating lease contracts for buildings, plant and machinery, vehicles, IT equipment and machinery.

Leases with a term of 12 months or less are not recorded in the balance sheet; the Company recognizes lease expense ($4 million in the three months ended September 30, 2019 and $12 million in the nine months ended September 30, 2019) for these leases on a straight-line basis over the lease term.

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, 2019, the Company has recorded approximately $397 million of a right-of-use asset and $395 million of lease liability included in Other Assets and Other Liabilities, respectively.

During the nine months ended September 30, 2019, leased assets obtained in exchange for operating lease obligations were $50 million. The operating cash outflow for amounts included in the measurement of operating lease obligations was $116 million.

At September 30, 2019, 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 3.6%, respectively.

Future minimum lease payments repayments under non-cancellable leases as of September 30, 2019 were as follows:

Operating Leases	($ million)
2019 (excluding the nine months ended September 2019)	$	34
2020	113
2021	77
2022	54
2023	42
2024 and thereafter	133
Total future minimum lease payments	$	453
Less: Interest	(58		)
Total	$	395

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:

	Amount
	(in millions)
2019	$	148
2020	165
2021	100
2022	37
2023 and thereafter	17
Total undiscounted lease payments	$	467

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INCOME TAXES

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective tax rates for the three months ended September 30, 2019 and 2018 were (303.8)% and 37.3%, respectively. The effective tax rates for the nine months ended September 30, 2019 and 2018 were (24.6)% and 28.4%, respectively.

As in prior periods, the Company continued to evaluate the realizability of its Italian deferred tax assets. In accordance with applicable guidance, the Company assessed and weighed all positive and negative evidence including, but not limited to, historic pre-tax results, forecast pre-tax results for the current and five succeeding years in accordance with its updated current year forecast and the public announcement, on September 3, 2019, of its strategic business plan, including the Company’s plan to spin-off its on-highway operations into a separate, publicly-traded legal entity. Following this analysis, the Company concluded it was more likely than not that a substantial portion of the Company’s Italian deferred tax assets will be realized. Accordingly, we released 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 that caused distorted effective tax rates for the three- and nine-month periods ended September 30, 2019.

The Company is subject to income taxes and, therefore, routinely encounters income tax audits in many jurisdictions around the world. As various ongoing audits in multiple income tax jurisdictions are brought to conclusion during the next twelve months, it is possible the Company’s amount of unrecognized tax benefits will change during the next twelve months. We do not, however, anticipate that those changes will have a material impact on the Company’s results of operations, balance sheet, or cash flows.

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REVENUE

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

The following table summarizes revenues for the three and nine months ended September 30, 2019 and 2018:

	Three Months Ended September 30,
	2019			2018
	(in millions)
Agriculture	$	2,446		$	2,636
Construction	664			726
Commercial and Specialty Vehicles	2,331			2,404
Powertrain	940			972
Eliminations and Other	(489		)	(493		)
Total Industrial Activities	$	5,892		$	6,245
Financial Services	487			469
Eliminations and Other	(19		)	(28		)
Total Revenues	$	6,360		$	6,686

	Nine Months Ended September 30,
	2019			2018
	(in millions)
Agriculture	$	8,031		$	8,527
Construction	2,061			2,207
Commercial and Specialty Vehicles	7,443			7,788
Powertrain	3,109			3,376
Eliminations and Other	(1,678		)	(1,774		)
Total Industrial Activities	$	18,966		$	20,124
Financial Services	1,480			1,469
Eliminations and Other	(62		)	(89		)
Total Revenues	$	20,384		$	21,504

The following table disaggregates revenues by major source for the three and nine months ended September 30, 2019 and 2018:

	Three Months Ended September 30,
	2019		2018
	(in millions)
Revenues from:
Sales of goods	$	5,603	$	6,018
Rendering of services and other revenues	196		112
Rents on assets sold with a buy-back commitment	93		115
Revenues from sales of goods and services	5,892		6,245
Finance and interest income	290		261
Rents and other income on operating lease	178		180
Finance, interest and other income	468		441
Total Revenues	$	6,360	$	6,686

	Nine Months Ended September 30,
	2019		2018
	(in millions)
Revenues from:
Sales of goods	$	18,168	$	19,467
Rendering of services and other revenues	500		297
Rents on assets sold with a buy-back commitment	298		360
Revenues from sales of goods and services	18,966		20,124
Finance and interest income	869		835
Rents and other income on operating lease	549		545
Finance, interest and other income	1,418		1,380
Total Revenues	$	20,384	$	21,504

Contract liabilities recorded in Other liabilities were $1,206 million and $1,368 million at September 30, 2019 and December 31, 2018, 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, 2019 and 2018, revenues included $118 million and $125 million, respectively, relating to contract liabilities outstanding at the beginning of each period. During the nine months ended September 30, 2019 and 2018, revenues included $415 million and $440 million, respectively, relating to contract liabilities outstanding at the beginning of each period. As of September 30, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $1.9 billion. The Company expects to recognize revenue on approximately 40% and 84% of the remaining performance obligations over the next 12 and 36 months, respectively, with the remaining recognized thereafter.

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SUPPLEMENTAL INFORMATION

9 Months Ended

Sep. 30, 2019

Supplemental Information [Abstract]

SUPPLEMENTAL INFORMATION

SUPPLEMENTAL INFORMATION

The operations and key financial measures and financial analysis differ significantly for manufacturing and distribution businesses and financial services businesses; therefore, management believes that certain supplemental disclosures are important in understanding the consolidated operations and financial results of CNH Industrial. This supplemental data is as follows:

Industrial Activities - The financial information captioned “Industrial Activities” reflects the consolidation of all majority-owned subsidiaries except for Financial Services. Financial Services has been included using the equity method of accounting whereby the net income and net assets of Financial Services are reflected, respectively, in “Equity in income of unconsolidated subsidiaries and affiliates” in the accompanying condensed consolidated statements of operations, and in “Investment in Financial Services” in the accompanying condensed consolidated balance sheets.

Financial Services - The financial information captioned “Financial Services” reflects the consolidation or combination of Financial Services business.

Transactions between the “Industrial Activities” and “Financial Services” have been eliminated to arrive at the condensed consolidated financial statements.

	Statement of Operations
	Industrial Activities						Financial Services
	Three Months Ended September 30,						Three Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Revenues
Net sales	$	5,892		$	6,245		$	—		$	—
Finance, interest and other income	23			23			487			469
Total Revenues	$	5,915		$	6,268		$	487		$	469
Costs and Expenses
Cost of goods sold	$	5,015		$	5,162		$	—		$	—
Selling, general and administrative expenses	485			481			55			42
Research and development expenses	238			254			—			—
Restructuring expenses	41			8			1			—
Interest expense	85			102			149			138
Other, net	—			24			173			175
Total Costs and Expenses	$	5,864		$	6,031		$	378		$	355
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates	51			237			109			114
Income tax (expense) benefit	520			(100		)	(34		)	(31		)
Equity in income of unconsolidated subsidiaries      and affiliates	(10		)	2			7			9
Results from intersegment investments	82			92			—			—
Net income	$	643		$	231		$	82		$	92

	Statement of Operations
	Industrial Activities						Financial Services
	Nine Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Revenues
Net sales	$	18,966		$	20,124		$	—		$	—
Finance, interest and other income	76			73			1,480			1,469
Total Revenues	$	19,042		$	20,197		$	1,480		$	1,469
Costs and Expenses
Cost of goods sold	$	15,732		$	16,606		$	—		$	—
Selling, general and administrative expenses	1,475			1,553			159			153
Research and development expenses	755			743			—			—
Restructuring expenses	75			16			3			—
Interest expense	257			333			451			410
Other, net	34			228			518			524
Total Costs and Expenses	$	18,328		$	19,479		$	1,131		$	1,087
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates	714			718			349			382
Income tax (expense) benefit	362			(202		)	(101		)	(110		)
Equity in income of unconsolidated subsidiaries      and affiliates	(10		)	28			20			25
Results from intersegment investments	268			297			—			—
Net income	$	1,334		$	841		$	268		$	297

	Balance Sheets
	Industrial Activities				Financial Services
	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
	(in millions)
ASSETS
Cash and cash equivalents	$	2,956	$	4,553	$	428	$	478
Restricted cash	108		—		673		772
Trade receivables, net	423		398		30		34
Financing receivables, net	1,321		1,253		19,582		20,252
Inventories, net	7,895		6,510		221		216
Property, plant and equipment, net	5,190		5,899		1		2
Investments in unconsolidated subsidiaries and affiliates	3,244		3,126		223		219
Equipment under operating leases	40		34		1,763		1,740
Goodwill	2,300		2,301		152		152
Other intangible assets, net	745		774		15		14
Deferred tax assets	1,072		635		155		175
Derivative assets	81		81		62		24
Other assets	2,099		1,707		313		323
Total Assets	$	27,474	$	27,271	$	23,618	$	24,401
LIABILITIES AND EQUITY
Debt	$	6,729	$	6,347	$	19,625	$	20,436
Trade payables	5,133		5,771		83		173
Deferred tax liabilities	14		83		290		250
Pension, postretirement and other postemployment benefits	1,356		1,470		18		18
Derivative liabilities	92		89		48		26
Other liabilities	7,990		8,413		724		681
Total Liabilities	$	21,314	$	22,173	$	20,788	$	21,584
Equity	6,126		5,068		2,830		2,817
Redeemable noncontrolling interest	34		30		—		—
Total Liabilities and Equity	$	27,474	$	27,271	$	23,618	$	24,401

	Statements of Cash Flows
	Industrial Activities						Financial Services
	Nine Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Operating activities:
Net income	$	1,334		$	841		$	268		$	297
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	492			535			2			3
Depreciation and amortization expense of assets under operating leases and assets sold under buy-back commitments	235			293			184			185
Loss on disposal of assets	3			—			—			—
Undistributed loss of unconsolidated subsidiaries	(32		)	(147		)	(20		)	(25		)
Other non-cash items	110			80			40			29
Changes in operating assets and liabilities:
Provisions	(133		)	(88		)	(11		)	3
Deferred income taxes	(503		)	(8		)	58			15
Trade and financing receivables related to sales, net	(38		)	(56		)	96			513
Inventories, net	(1,395		)	(1,186		)	337			338
Trade payables	(416		)	(10		)	(89		)	(36		)
Other assets and liabilities	(506		)	(306		)	51			55
Net cash provided by (used in) operating activities	$	(849	)	$	(52	)	$	916		$	1,377
Investing activities:
Additions to retail receivables	—			—			(3,027		)	(3,040		)
Collections of retail receivables	—			—			3,218			3,029
Proceeds from sale of assets, net of assets sold under operating leases and assets sold under buy-back commitments	10			3			—			—
Expenditures for property, plant and equipment and intangible assets, net of assets under operating leases and sold under buy-back commitments	(323		)	(288		)	(2		)	(5		)
Expenditures for assets under operating leases and assets sold under buy-back commitments	(404		)	(505		)	(540		)	(454		)
Other	(2		)	696			23			(470		)
Net cash used in investing activities	$	(719	)	$	(94	)	$	(328	)	$	(940	)
Financing activities:
Proceeds from long-term debt	1,315			616			8,671			10,682
Payments of long-term debt	(735		)	(1,242		)	(9,455		)	(11,197		)
Net increase (decrease) in other financial liabilities	(18		)	23			253			196
Dividends paid	(280		)	(240		)	(211		)	(129		)
Other	(45		)	(156		)	20			39
Net cash provided by (used in) financing activities	$	237		$	(999	)	$	(722	)	$	(409	)
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash	(158		)	(207		)	(15		)	(55		)
Decrease in cash and cash equivalents and restricted cash	(1,489		)	(1,352		)	(149		)	(27		)
Cash and cash equivalents and restricted cash, beginning of year	4,553			4,901			1,250			1,299
Cash and cash equivalents and restricted cash, end of period	$	3,064		$	3,549		$	1,101		$	1,272

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2019

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, 2019 and December 31, 2018, environmental reserves of approximately $32 million and $38 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, 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 Medium and Heavy ("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 base 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 various other jurisdictions. The extent and outcome of these claims cannot be predicted at this time.

Guarantees

CNH Industrial provided guarantees on the debt or commitments of third parties and performance guarantees on non-consolidated affiliates as of September 30, 2019 and December 31, 2018 totaling of $438 million and $471 million, respectively.

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GOODWILL AND OTHER INTANGIBLES - Changes in the Carrying Amount of Goodwill (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Goodwill [Roll Forward]
Balance at beginning	$ 2,453
Foreign currency translation and other	(1)
Balance at ending	2,452
Agriculture
Goodwill [Roll Forward]
Balance at beginning	1,646
Foreign currency translation and other	4
Balance at ending	1,650
Construction
Goodwill [Roll Forward]
Balance at beginning	587
Foreign currency translation and other	0
Balance at ending	587
Commercial and Specialty Vehicles
Goodwill [Roll Forward]
Balance at beginning	62
Foreign currency translation and other	(4)
Balance at ending	58
Powertrain
Goodwill [Roll Forward]
Balance at beginning	5
Foreign currency translation and other	0
Balance at ending	5
Financial Services
Goodwill [Roll Forward]
Balance at beginning	153
Foreign currency translation and other	(1)
Balance at ending	$ 152

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LEASES - Schedule of Future Minimum Lease Payments Under Operating Leases (Details) $ in Millions	Sep. 30, 2019 USD ($)
Operating Lease Liabilities, Payments Due [Abstract]
2019 (excluding the nine months ended September 2019)	$ 34
2020	113
2021	77
2022	54
2023	42
2024 and thereafter	133
Total future minimum lease payments	453
Less: Interest	(58)
Operating lease liabilities	$ 395

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RECEIVABLES - Investment in Impaired Receivables (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Retail
Financing Receivable, Impaired [Line Items]
Related Allowance	$ 188	$ 204
Recorded investment, total	319	359
Unpaid principal balance, total	318	358
Average recorded investment, total	340	374
Retail | North America
Financing Receivable, Impaired [Line Items]
Recorded investment, allowance recorded	37	31
Unpaid principal balance, allowance recorded	36	30
Related Allowance	19	16
Average recorded investment, allowance recorded	39	33
Retail | Europe
Financing Receivable, Impaired [Line Items]
Recorded investment, allowance recorded	204	234
Unpaid principal balance, allowance recorded	204	234
Related Allowance	146	167
Average recorded investment, allowance recorded	215	249
Retail | South America
Financing Receivable, Impaired [Line Items]
Recorded investment, allowance recorded	76	91
Unpaid principal balance, allowance recorded	76	91
Related Allowance	21	20
Average recorded investment, allowance recorded	83	88
Retail | Rest of World
Financing Receivable, Impaired [Line Items]
Recorded investment, allowance recorded	2	3
Unpaid principal balance, allowance recorded	2	3
Related Allowance	2	1
Average recorded investment, allowance recorded	3	4
Wholesale
Financing Receivable, Impaired [Line Items]
Related Allowance	123	135
Recorded investment, total	241	314
Unpaid principal balance, total	233	303
Average recorded investment, total	272	322
Wholesale | North America
Financing Receivable, Impaired [Line Items]
Recorded investment, allowance recorded	5	25
Unpaid principal balance, allowance recorded	5	23
Related Allowance	2	5
Average recorded investment, allowance recorded	8	27
Wholesale | Europe
Financing Receivable, Impaired [Line Items]
Recorded investment, allowance recorded	217	256
Unpaid principal balance, allowance recorded	217	256
Related Allowance	93	107
Average recorded investment, allowance recorded	241	260
Wholesale | South America
Financing Receivable, Impaired [Line Items]
Recorded investment, allowance recorded	15	23
Unpaid principal balance, allowance recorded	8	14
Related Allowance	16	16
Average recorded investment, allowance recorded	16	26
Wholesale | Rest of World
Financing Receivable, Impaired [Line Items]
Recorded investment, allowance recorded	4	10
Unpaid principal balance, allowance recorded	3	10
Related Allowance	12	7
Average recorded investment, allowance recorded	$ 7	$ 9

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SUBSEQUENT EVENTS (Details)	Nov. 07, 2019 USD ($)
Subsequent Event
Subsequent Event [Line Items]
Authorized amount of share repurchases	$ 700,000,000

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SUPPLEMENTAL INFORMATION (Tables)

9 Months Ended

Sep. 30, 2019

Supplemental Information [Abstract]

Summary of Supplemental Information, Income Statement

	Statement of Operations
	Industrial Activities						Financial Services
	Three Months Ended September 30,						Three Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Revenues
Net sales	$	5,892		$	6,245		$	—		$	—
Finance, interest and other income	23			23			487			469
Total Revenues	$	5,915		$	6,268		$	487		$	469
Costs and Expenses
Cost of goods sold	$	5,015		$	5,162		$	—		$	—
Selling, general and administrative expenses	485			481			55			42
Research and development expenses	238			254			—			—
Restructuring expenses	41			8			1			—
Interest expense	85			102			149			138
Other, net	—			24			173			175
Total Costs and Expenses	$	5,864		$	6,031		$	378		$	355
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates	51			237			109			114
Income tax (expense) benefit	520			(100		)	(34		)	(31		)
Equity in income of unconsolidated subsidiaries      and affiliates	(10		)	2			7			9
Results from intersegment investments	82			92			—			—
Net income	$	643		$	231		$	82		$	92

	Statement of Operations
	Industrial Activities						Financial Services
	Nine Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Revenues
Net sales	$	18,966		$	20,124		$	—		$	—
Finance, interest and other income	76			73			1,480			1,469
Total Revenues	$	19,042		$	20,197		$	1,480		$	1,469
Costs and Expenses
Cost of goods sold	$	15,732		$	16,606		$	—		$	—
Selling, general and administrative expenses	1,475			1,553			159			153
Research and development expenses	755			743			—			—
Restructuring expenses	75			16			3			—
Interest expense	257			333			451			410
Other, net	34			228			518			524
Total Costs and Expenses	$	18,328		$	19,479		$	1,131		$	1,087
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates	714			718			349			382
Income tax (expense) benefit	362			(202		)	(101		)	(110		)
Equity in income of unconsolidated subsidiaries      and affiliates	(10		)	28			20			25
Results from intersegment investments	268			297			—			—
Net income	$	1,334		$	841		$	268		$	297

Summary of Supplemental Information, Balance Sheet

	Balance Sheets
	Industrial Activities				Financial Services
	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
	(in millions)
ASSETS
Cash and cash equivalents	$	2,956	$	4,553	$	428	$	478
Restricted cash	108		—		673		772
Trade receivables, net	423		398		30		34
Financing receivables, net	1,321		1,253		19,582		20,252
Inventories, net	7,895		6,510		221		216
Property, plant and equipment, net	5,190		5,899		1		2
Investments in unconsolidated subsidiaries and affiliates	3,244		3,126		223		219
Equipment under operating leases	40		34		1,763		1,740
Goodwill	2,300		2,301		152		152
Other intangible assets, net	745		774		15		14
Deferred tax assets	1,072		635		155		175
Derivative assets	81		81		62		24
Other assets	2,099		1,707		313		323
Total Assets	$	27,474	$	27,271	$	23,618	$	24,401
LIABILITIES AND EQUITY
Debt	$	6,729	$	6,347	$	19,625	$	20,436
Trade payables	5,133		5,771		83		173
Deferred tax liabilities	14		83		290		250
Pension, postretirement and other postemployment benefits	1,356		1,470		18		18
Derivative liabilities	92		89		48		26
Other liabilities	7,990		8,413		724		681
Total Liabilities	$	21,314	$	22,173	$	20,788	$	21,584
Equity	6,126		5,068		2,830		2,817
Redeemable noncontrolling interest	34		30		—		—
Total Liabilities and Equity	$	27,474	$	27,271	$	23,618	$	24,401

Summary of Supplemental Information, Cash Flows

	Statements of Cash Flows
	Industrial Activities						Financial Services
	Nine Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Operating activities:
Net income	$	1,334		$	841		$	268		$	297
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	492			535			2			3
Depreciation and amortization expense of assets under operating leases and assets sold under buy-back commitments	235			293			184			185
Loss on disposal of assets	3			—			—			—
Undistributed loss of unconsolidated subsidiaries	(32		)	(147		)	(20		)	(25		)
Other non-cash items	110			80			40			29
Changes in operating assets and liabilities:
Provisions	(133		)	(88		)	(11		)	3
Deferred income taxes	(503		)	(8		)	58			15
Trade and financing receivables related to sales, net	(38		)	(56		)	96			513
Inventories, net	(1,395		)	(1,186		)	337			338
Trade payables	(416		)	(10		)	(89		)	(36		)
Other assets and liabilities	(506		)	(306		)	51			55
Net cash provided by (used in) operating activities	$	(849	)	$	(52	)	$	916		$	1,377
Investing activities:
Additions to retail receivables	—			—			(3,027		)	(3,040		)
Collections of retail receivables	—			—			3,218			3,029
Proceeds from sale of assets, net of assets sold under operating leases and assets sold under buy-back commitments	10			3			—			—
Expenditures for property, plant and equipment and intangible assets, net of assets under operating leases and sold under buy-back commitments	(323		)	(288		)	(2		)	(5		)
Expenditures for assets under operating leases and assets sold under buy-back commitments	(404		)	(505		)	(540		)	(454		)
Other	(2		)	696			23			(470		)
Net cash used in investing activities	$	(719	)	$	(94	)	$	(328	)	$	(940	)
Financing activities:
Proceeds from long-term debt	1,315			616			8,671			10,682
Payments of long-term debt	(735		)	(1,242		)	(9,455		)	(11,197		)
Net increase (decrease) in other financial liabilities	(18		)	23			253			196
Dividends paid	(280		)	(240		)	(211		)	(129		)
Other	(45		)	(156		)	20			39
Net cash provided by (used in) financing activities	$	237		$	(999	)	$	(722	)	$	(409	)
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash	(158		)	(207		)	(15		)	(55		)
Decrease in cash and cash equivalents and restricted cash	(1,489		)	(1,352		)	(149		)	(27		)
Cash and cash equivalents and restricted cash, beginning of year	4,553			4,901			1,250			1,299
Cash and cash equivalents and restricted cash, end of period	$	3,064		$	3,549		$	1,101		$	1,272

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REVENUE - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Contract liabilities	$ 1,206		$ 1,206		$ 1,368
Revenues relating to contract liabilities outstanding	118	$ 125	415	$ 440
Transaction price allocated to remaining performance obligations	$ 1,900		$ 1,900

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SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2019

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

On October 31, 2019, CNH Industrial announced it has agreed the sale of its Truckline parts business, a distributor of aftermarket commercial vehicle parts and accessories in Australia.

On November 4, 2019, CNH Industrial announced the acquisition of the Australian agricultural tillage and crop implement manufacturer K-Line Ag.

On November 5, 2019, CNH Industrial announced the acquisition of ATI, Inc., a global manufacturer of rubber track systems for high horsepower tractors and combine harvesters.

On November 7, 2019, in connection with the expiration of the previous buyback program, CNH Industrial announced the launch of its new share buyback program (the “Program”). The Program will involve the repurchase from time to time of up to $700 million in the Company’s common shares and is intended to optimize the capital structure of the Company and to meet the obligations arising from the Company’s equity incentive plans. The Program has a duration up to and including October 11, 2020, will be funded by the Company’s liquidity and will be conducted in the framework of the buyback authorization granted by the Shareholders’ Meeting held on April 12, 2019.

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FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2019

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 $7.3 billion and $7.2 billion at September 30, 2019 and December 31, 2018, 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, 2019 and 2018.

All of CNH Industrial’s interest rate derivatives outstanding as of September 30, 2019 and December 31, 2018 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 $5.2 billion and $5.4 billion at September 30, 2019 and December 31, 2018, respectively.

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 during the three months and nine months ended September 30, 2019 and 2018 (in millions):

				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
2019
Foreign exchange contracts	$	(42	)
				Net sales	2
				Cost of goods sold	(17		)
				Other, Net	(3		)
Interest rate contracts	(6		)	Interest expense	(3		)
Total	$	(48	)		$	(21	)
2018
Foreign currency contracts	$	20
				Net sales	(2		)
				Cost of goods sold	(6		)
				Other, Net	10
Interest rate contracts	(4		)	Interest expense	(2		)
Total	$	16			$	—

				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
2019
Foreign exchange contracts	(87		)
				Net sales	(2		)
				Cost of goods sold	(46		)
				Other, Net	(10		)
Interest rate contracts	(26		)	Interest expense	(6		)
Total	(113		)		$	(64	)
2018
Foreign currency contracts	31
				Net sales	(1		)
				Cost of goods sold	14
				Other, Net	24
Interest rate contracts	9			Interest expense	(4		)
Total	$	40			$	33

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, 2019 and 2018:

In Millions	Before-Tax Amount			Income Tax			After-Tax Amount
Accumulated derivative net losses as of December 31, 2018	$	(23	)	$	1		$	(22	)
Net changes in fair value of derivatives	(113		)	20			(93		)
Net losses reclassified from accumulated other comprehensive income into income	64			(10		)	54
Accumulated derivative net losses as of September 30, 2019	$	(72	)	$	11		$	(61	)

In Millions	Before-Tax Amount			Income Tax			After-Tax Amount
Accumulated derivative net losses as of December 31, 2017	$	1		$	—		$	1
Net changes in fair value of derivatives	40			(2		)	38
Net losses reclassified from accumulated other comprehensive income into income	(33		)	5			(28		)
Accumulated derivative net losses as of September 30, 2018	$	8		$	3		$	11

The following tables summarize the impact that changes in the fair value of fair value hedges and derivatives not designated as hedging instruments had on earnings (in millions) for the three and nine months ended September 30, 2019:

		For the Three Months Ended September 30,
	Classification of Gain	2019		2018
Fair Value Hedges
Interest rate derivatives	Interest expense	$	7	$	(3	)
Not Designated as Hedges
Foreign exchange contracts	Other, Net	$	29	$	24

		For the Nine Months Ended September 30,
	Classification of Gain	2019			2018
Fair Value Hedges
Interest rate derivatives	Interest expense	$	38		$	(13	)
Not Designated as Hedges
Foreign exchange contracts	Other, Net	$	(39	)	$	133

The fair values of CNH Industrial’s derivatives as of September 30, 2019 and December 31, 2018 in the condensed consolidated balance sheets are recorded as follows:

	September 30, 2019		December 31, 2018
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	61	Derivative assets	21
Foreign currency contracts	Derivative assets	38	Derivative assets	52
Total derivative assets designated as hedging instruments		99		73
Interest rate contracts	Derivative liabilities	44	Derivative liabilities	29
Foreign currency contracts	Derivative liabilities	80	Derivative liabilities	41
Total derivative liabilities designated as hedging instruments		124		70
Derivatives not designated as hedging instruments under Subtopic 815-20
Interest rate contracts	Derivative assets	—	Derivative assets	1
Foreign currency contracts	Derivative assets	36	Derivative assets	24
Total derivative assets not designated as hedging instruments		36		25
Interest rate contracts	Derivative liabilities	—	Derivative liabilities	—
Foreign currency contracts	Derivative liabilities	8	Derivative liabilities	38
Total derivative liabilities not designated as hedging instruments		8		38

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, 2019 and December 31, 2018:

	Level 1				Level 2						Total
	September 30, 2019		December 31, 2018		September 30, 2019			December 31, 2018			September 30, 2019			December 31, 2018
	(in millions)
Assets
Foreign exchange derivatives	$	—	$	—	$	74		$	76		$	74		$	76
Interest rate derivatives	—		—		61			22			61			22
Investments	1		1		—			—			1			1
Total Assets	$	1	$	1	$	135		$	98		$	136		$	99
Liabilities
Foreign exchange derivatives	$	—	$	—	$	(88	)	$	(79	)	$	(88	)	$	(79	)
Interest rate derivatives	—		—		(44		)	(29		)	(44		)	(29		)
Total Liabilities	$	—	$	—	$	(132	)	$	(108	)	$	(132	)	$	(108	)

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, 2019 and December 31, 2018 are as follows:

	September 30, 2019				December 31, 2018
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in millions)
Financing receivables	$	18,455	$	18,345	$	19,167	$	19,017
Debt	$	23,906	$	24,366	$	24,445	$	24,481

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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LEASES - Schedule of Future Minimum Lease Payments to be Received (Details) $ in Millions	Sep. 30, 2019 USD ($)
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
2019	$ 148
2020	165
2021	100
2022	37
2023 and thereafter	17
Total undiscounted lease payments	$ 467

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RECEIVABLES - Carrying Amount of Receivables (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Restricted Receivables	$ 12,802	$ 13,423
Retail note and finance lease receivables
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Restricted Receivables	6,322	6,371
Wholesale
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Restricted Receivables	$ 6,480	$ 7,052

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GOODWILL AND OTHER INTANGIBLES - Other Intangible Assets and Related Accumulated Amortization (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items]
Other intangible assets subject to amortization, gross	$ 2,207	$ 2,199
Other intangible assets subject to amortization, accumulated amortization	1,720	1,684
Other intangible assets subject to amortization, net	487	515
Other intangible assets not subject to amortization	273	273
Total other intangible assets, gross	2,480	2,472
Total other intangible assets, net	760	788
Dealer networks
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items]
Other intangible assets subject to amortization, gross	318	320
Other intangible assets subject to amortization, accumulated amortization	217	207
Other intangible assets subject to amortization, net	$ 101	113
Other intangible assets subject to amortization, weighted average life	15 years
Patents, concessions and licenses and other
Schedule Of Indefinite And Finite Lived Intangible Assets [Line Items]
Other intangible assets subject to amortization, gross	$ 1,889	1,879
Other intangible assets subject to amortization, accumulated amortization	1,503	1,477
Other intangible assets subject to amortization, net	$ 386	$ 402
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

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RELATED PARTY INFORMATION (Tables)

9 Months Ended

Sep. 30, 2019

Related Party Transactions [Abstract]

Summary of Related Party Transactions

These transactions primarily affected revenues, finance and interest income, cost of goods sold, trade receivables and payables and are presented as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(in millions)				(in millions)
Net sales	$	175	$	201	$	677	$	845
Cost of goods sold	$	121	$	113	$	377	$	356

	September 30, 2019		December 31, 2018
	(in millions)
Trade receivables	$	103	$	107
Trade payables	$	89	$	103

These transactions with FCA are reflected in the Company’s condensed consolidated financial statements as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(in millions)				(in millions)
Net sales	$	171	$	168	$	533	$	564
Cost of goods sold	$	69	$	86	$	265	$	348
Selling, general and administrative expenses	$	34	$	36	$	102	$	112

	September 30, 2019		December 31, 2018
	(in millions)
Trade receivables	$	15	$	10
Trade payables	$	73	$	118

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REVENUE - Disaggregation of Net Revenues by Major Source (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Net sales	$ 5,892	$ 6,245	$ 18,966	$ 20,124
Finance and interest income	290	261	869	835
Rents and other income on operating lease	178	180	549	545
Finance, interest and other income	468	441	1,418	1,380
Total Revenues	6,360	6,686	20,384	21,504
Sales of goods
Disaggregation of Revenue [Line Items]
Net sales	5,603	6,018	18,168	19,467
Rendering of services and other revenues
Disaggregation of Revenue [Line Items]
Net sales	196	112	500	297
Rents on assets sold with a buy-back commitment
Disaggregation of Revenue [Line Items]
Net sales	$ 93	$ 115	$ 298	$ 360

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SUPPLEMENTAL INFORMATION - Balance Sheet (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
ASSETS
Cash and cash equivalents	$ 3,384			$ 5,031
Restricted cash	781			772
Trade receivables, net	424			399
Financing receivables, net	18,455			19,167	$ 18,366
Inventories, net	8,116			6,726
Property, plant and equipment, net	5,191			5,901
Investments in unconsolidated subsidiaries and affiliates	635			526
Equipment under operating leases	1,803
Equipment under operating leases				1,774
Goodwill	2,452			2,453
Other intangible assets, net	760			788
Deferred tax assets	1,054			591
Derivative assets	135			98
Other assets	2,321			1,874
Total Assets	45,511			46,100
LIABILITIES AND EQUITY
Debt	23,906			24,445
Trade payables	5,169			5,889
Deferred tax liabilities	131			114
Pension, postretirement and other postemployment benefits	1,374			1,488
Derivative liabilities	132			108
Other liabilities	8,639			8,958
Total Liabilities	39,351			41,002
Total Equity	6,126	$ 5,489	$ 5,391	5,068	$ 4,747	$ 4,579	$ 4,094	$ 4,232
Redeemable noncontrolling interest	34			30
Total Liabilities and Equity	45,511			46,100
Industrial Activities
ASSETS
Cash and cash equivalents	2,956			4,553
Restricted cash	108			0
Trade receivables, net	423			398
Financing receivables, net	1,321			1,253
Inventories, net	7,895			6,510
Property, plant and equipment, net	5,190			5,899
Investments in unconsolidated subsidiaries and affiliates	3,244			3,126
Equipment under operating leases	40
Equipment under operating leases				34
Goodwill	2,300			2,301
Other intangible assets, net	745			774
Deferred tax assets	1,072			635
Derivative assets	81			81
Other assets	2,099			1,707
Total Assets	27,474			27,271
LIABILITIES AND EQUITY
Debt	6,729			6,347
Trade payables	5,133			5,771
Deferred tax liabilities	14			83
Pension, postretirement and other postemployment benefits	1,356			1,470
Derivative liabilities	92			89
Other liabilities	7,990			8,413
Total Liabilities	21,314			22,173
Total Equity	6,126			5,068
Redeemable noncontrolling interest	34			30
Total Liabilities and Equity	27,474			27,271
Financial Services
ASSETS
Cash and cash equivalents	428			478
Restricted cash	673			772
Trade receivables, net	30			34
Financing receivables, net	19,582			20,252
Inventories, net	221			216
Property, plant and equipment, net	1			2
Investments in unconsolidated subsidiaries and affiliates	223			219
Equipment under operating leases	1,763
Equipment under operating leases				1,740
Goodwill	152			152
Other intangible assets, net	15			14
Deferred tax assets	155			175
Derivative assets	62			24
Other assets	313			323
Total Assets	23,618			24,401
LIABILITIES AND EQUITY
Debt	19,625			20,436
Trade payables	83			173
Deferred tax liabilities	290			250
Pension, postretirement and other postemployment benefits	18			18
Derivative liabilities	48			26
Other liabilities	724			681
Total Liabilities	20,788			21,584
Total Equity	2,830			2,817
Redeemable noncontrolling interest	0			0
Total Liabilities and Equity	$ 23,618			$ 24,401

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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, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest expense | Fair Value Hedges | Interest rate derivatives
Fair Value Hedges
Interest rate derivatives, fair value hedges	$ 7	$ (3)	$ 38	$ (13)
Other, Net | Foreign exchange derivatives | Derivatives not designated as hedging instruments
Not Designated as Hedges
Foreign exchange contracts, not designated as hedges	$ 29	$ 24	$ (39)	$ 133

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FINANCIAL INSTRUMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Value on Recurring Basis (Details) - Fair Value, measurements, recurring - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	$ 136	$ 99
Total Liabilities	(132)	(108)
Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	1	1
Foreign exchange derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	74	76
Total Liabilities	(88)	(79)
Interest rate derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	61	22
Total Liabilities	(44)	(29)
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	1	1
Total Liabilities	0	0
Level 1 | Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	1	1
Level 1 | Foreign exchange derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	0	0
Total Liabilities	0	0
Level 1 | Interest rate derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	0	0
Total Liabilities	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	135	98
Total Liabilities	(132)	(108)
Level 2 | Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	0	0
Level 2 | Foreign exchange derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	74	76
Total Liabilities	(88)	(79)
Level 2 | Interest rate derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	61	22
Total Liabilities	$ (44)	$ (29)

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GOODWILL AND OTHER INTANGIBLES - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 28	$ 27	$ 82	$ 87

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COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($) site	Dec. 31, 2018 USD ($)
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 | $	$ 32	$ 38
Guarantees at carrying value | $	$ 438	$ 471

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Reclassifications (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Revenues	$ 6,360	$ 6,686	$ 20,384	$ 21,504
Cost of goods sold	(5,015)	(5,162)	(15,732)	(16,606)
Other, net	(173)	(199)	(552)	(752)
Interest expense	(192)	(189)	(570)	(581)
Income taxes	486	(131)	261	(312)
Net income	643	231	1,334	841
Reclassification out of accumulated other comprehensive income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	(1)	(12)	1	(16)
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	(2)	2	2	1
Cost of goods sold	17	6	46	(14)
Other, net	3	(10)	10	(24)
Interest expense	3	2	6	4
Income taxes	(4)	1	(10)	5
Net income	17	1	54	(28)
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	18	20	52	62
Amortization of prior service cost	(32)	(30)	(91)	(52)
Reclassification out of accumulated other comprehensive income | Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income taxes	(4)	(3)	(14)	2
Net income	$ (18)	$ (13)	$ (53)	$ 12

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RECEIVABLES - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($) contract	Sep. 30, 2018 USD ($) contract
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contractual payments period	30 days
Receivables delinquency period	120 days
Number of accounts receivable undergoing bankruptcy proceedings (in contracts) | contract	346	365
Amount of accounts receivable undergoing bankruptcy proceedings	$ 15	$ 17
North America
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance lease, contracts (in contracts) | contract	284	278
Pre-modification value of retail and finance lease receivable contracts	$ 11	$ 9
Post-modification value of retail and finance lease receivable contracts	10	$ 9
Europe
Accounts, Notes, Loans and Financing Receivable [Line Items]
Pre-modification value of retail and finance lease receivable contracts	88
Post-modification value of retail and finance lease receivable contracts	$ 81

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INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Effective tax rate	(303.80%)	37.30%	(24.60%)	28.40%
Discrete tax benefit	$ 539		$ 539

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EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS (Tables)

9 Months Ended

Sep. 30, 2019

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, 2019 and 2018:

	Pension						Healthcare						Other
	Three Months Ended September 30,						Three Months Ended September 30,						Three Months Ended September 30,
	2019			2018			2019			2018			2019		2018
	(in millions)
Service cost	$	5		$	6		$	1		$	1		$	4	$	3
Interest cost	19			18			3			5			—		1
Expected return on assets	(26		)	(27		)	(2		)	(1		)	—		—
Amortization of:
Prior service credit	1			—			(33		)	(31		)	—		1
Actuarial loss	17			18			1			2			—		—
Net periodic benefit cost	$	16		$	15		$	(30	)	$	(24	)	$	4	$	5

	Pension						Healthcare						Other
	Nine Months Ended September 30,						Nine Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018			2019		2018
	(in millions)
Service cost	$	17		$	19		$	4		$	4		$	10	$	11
Interest cost	57			54			11			19			2		2
Expected return on assets	(76		)	(84		)	(6		)	(5		)	—		—
Amortization of:
Prior service credit	1			(1		)	(93		)	(52		)	1		1
Actuarial loss	51			56			1			5			—		1
Net periodic benefit cost	$	50		$	44		$	(83	)	$	(29	)	$	13	$	15

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2019
Document And Entity Information [Abstract]
Document Type	6-K
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Registrant Name	CNH Industrial N.V.
Entity Central Index Key	0001567094
Current Fiscal Year End Date	--12-31

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 643	$ 231	$ 1,334	$ 841
Other comprehensive income (loss), net of tax
Unrealized income (loss) on cash flow hedges	(22)	15	(39)	10
Changes in retirement plans’ funded status	(9)	(6)	(23)	450
Foreign currency translation	31	(38)	109	(373)
Share of other comprehensive loss of entities using the equity method	(14)	(18)	(17)	(36)
Other comprehensive income (loss), net of tax	(14)	(47)	30	51
Comprehensive income	629	184	1,364	892
Less: Comprehensive income attributable to noncontrolling interests	4	2	24	20
Comprehensive income (loss) attributable to CNH Industrial N.V.	$ 625	$ 182	$ 1,340	$ 872

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LEASES (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Schedule of Future Minimum Lease Payments Under Operating Leases and Payments to be Received

Future minimum lease payments repayments under non-cancellable leases as of September 30, 2019 were as follows:

Operating Leases	($ million)
2019 (excluding the nine months ended September 2019)	$	34
2020	113
2021	77
2022	54
2023	42
2024 and thereafter	133
Total future minimum lease payments	$	453
Less: Interest	(58		)
Total	$	395

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:

	Amount
	(in millions)
2019	$	148
2020	165
2021	100
2022	37
2023 and thereafter	17
Total undiscounted lease payments	$	467

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NEW ACCOUNTING PRONOUNCEMENTS

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

NEW ACCOUNTING PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS

Adopted in 2019

Derivatives and Hedging

In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”), which amends ASC 815, Derivatives and Hedging. The purpose of this ASU is to better align a company’s risk management activities and financial reporting for hedging relationships, simplify the hedge accounting requirements and improve the disclosures of hedging arrangements. Among other provisions, the new standard (1) requires an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported, (2) eliminates the separate measurement and reporting of hedge ineffectiveness and (3) permits an entity to recognize in earnings the initial value of an excluded component under a systematic and rational method over the life of the derivative instrument. The Company adopted ASU 2017-12 on January 1, 2019. The adoption did not have a material impact on our results of operations, financial position and cash flows.

Leases

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which supersedes ASC 840, Leases. Subsequently, the FASB has issued additional ASUs which further clarify this guidance. The ASU's most prominent change is the requirement for lessees to recognize leased assets and liabilities classified as operating leases under the previous standard. The ASU does not significantly change the lessee’s recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors’ accounting under the ASC is largely unchanged from the previous accounting standard. ASU 2016-02 also will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases.

CNH Industrial has adopted the new standard effective January 1, 2019, using the modified retrospective approach, without recasting prior periods. CNH Industrial has applied certain practical expedients upon transition, including: not to reassess under the new guidance its prior conclusions about lease identification, lease classification and initial direct costs; and, those provided for short-term leases. In such case, the lease payments associated with leases are recognized as expense in the income statement. In addition, the Company has elected not to separate lease and non-lease components.

At January 1, 2019, the Company recognized approximately $480 million of right-of-use assets and lease liabilities without transition effect to equity.

The following paragraph presents the Company’s policy for leases for which it is a lessee after the adoption of the new accounting standard ASU 2016-02.

Lease policy

A lease is a contract that conveys the right to control the use of an identified asset (the leased asset) for a period of time in exchange for consideration. The lease term determined by the Company comprises the non-cancellable period of lease contract together with both periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option. For lease agreements, we combine lease and non-lease components.

For leases with terms not exceeding twelve months (short-term leases), the Company recognizes the lease payments associated with those leases on a straight-line basis over the lease term as operating expense in the income statement.

For all other leases, the right-of-use asset includes the amount of lease liability recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Correspondingly, the Company recognizes a lease liability, measured at the present value of lease payments to be made over the lease term. In calculating the present value of lease payments, the Company uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable.

For finance leases, the right-of-use asset is classified within Property, plant and equipment, net and the lease liability, within Debt. Assets held under finance leases, which the Company assumes substantially all the risks and rewards of ownership, are recognized as assets of the Company at the lower of fair value or present value of the minimum lease payments.

In case of operating leases, the right-of-use asset is classified within Other assets and the lease liability, within Other liabilities. After the commencement date, the Company recognizes in profit or loss a single lease cost, calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis. In particular, after lease commencement, the lease liability is measured at the present value of any remaining lease payments, discounted by using the rate determined at lease commencement, consistently with the model used to calculate the liability related to the finance lease. Correspondingly, the right-of-use asset is measured as the lease liability adjusted by accrued or prepaid rents (i.e., the aggregate difference between the cash payment and straight-line lease cost), remaining unamortized initial direct costs and lease incentives, and any impairments of the right-of-use asset.

Comprehensive Income

In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”), which amends ASC 220, Income Statement - Reporting Comprehensive Income. In December 2017, the U.S. government enacted new tax legislation (“U.S. Tax Reform”). Included in the provisions of U.S. Tax Reform was a reduction of the corporate income tax rate from 35 percent to 21 percent. U.S. GAAP requires that the remeasurement of deferred taxes to the new corporate tax rate occur in the period in which the legislation is enacted with the deferred tax adjustment being recorded in the provision for income taxes, including items for which the tax effects were originally recorded in Other Comprehensive Income (“OCI”). This treatment results in the items in OCI reflecting a disproportionate tax rate, a result often referred to as stranded tax effects. This ASU allows a reclassification from accumulated OCI to retained earnings for stranded tax effects resulting from U.S. Tax Reform. ASU 2018-02 is effective for annual reporting periods beginning after December 15, 2018 including interim periods within those fiscal years. The Company adopted this standard on January 1, 2019, and reclassified $65 million of tax effects from "Accumulated other comprehensive income (loss)" to "Retained earnings" within its Condensed Consolidated Balance Sheet.

Changes in Stockholders' Equity and Noncontrolling Interests

In August 2018, the SEC adopted a final rule that amends certain disclosure requirements that have become duplicative, overlapping, or outdated in light of other SEC disclosure requirements, U.S. GAAP, or changes in the information environment. However, the guidance also added requirements for registrants to include in their interim financial statements a reconciliation of changes in stockholders’ equity for each period for which an income statement is required (both year-to-date and quarterly periods). The Company adopted the new interim disclosure requirement in its U.S. GAAP quarterly report for the three months ended March 31, 2019, which had no material impact to the Statement of Changes in Equity.

Not Yet Adopted

Financial Instruments

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which establishes ASC 326, Financial Instruments - Credit Losses. In November 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses (“ASU 2018-19”), which supersedes existing Measurement of Credit Losses on Financial Instruments (“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 are also required. ASU 2018-19 is effective for annual periods beginning after December 15, 2019. The Company has established a cross functional implementation team. The team is validating and testing the models and procedures that will be used to calculate the allowance for credit losses and has started to design related processes and controls.

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 effective date is the first quarter of fiscal year 2021, with early adoption permitted for the removed disclosures and delayed adoption until fiscal year 2021 permitted for the new disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

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. ASU 2018-15 may be applied prospectively from the date the guidance is first applied or retrospectively.

ASU 2018-15 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted. The Company expects to adopt the ASU on a prospective basis. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

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. ASU 2018-17 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted in any interim period. ASU 2018-17 is required to be applied retrospectively from the date the guidance is first applied. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements.

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. ASU 2018-14 is effective for annual periods beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact of adoption of this ASU on its related disclosures.

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SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2019

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, Överum, and JF 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, compact track loaders, and telehandlers. 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, commuter buses and touring coaches 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 a range of engines, transmission systems and axles for on- and off-road applications, as well as for marine and power generation under the FPT Industrial brand.

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 dealers. In addition, Financial Services provides wholesale financing to CNH Industrial 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.

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.

The CODM assesses segment performance and makes decisions about resource allocation based upon Adjusted EBIT and Adjusted EBITDA. The Company believes Adjusted EBIT and Adjusted EBITDA more fully reflect segment and consolidated profitability. Adjusted

EBIT is defined as net income/(loss) before income taxes, interest expenses of Industrial Activities, 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.

Adjusted EBITDA is defined as Adjusted EBIT plus depreciation and amortization (including on assets under operating leases and assets sold under buy-back commitments). With reference to Financial Services, the CODM assesses the performance of the segment 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 and Adjusted EBITDA for the three and nine months ended September 30, 2019 and 2018.

	Three Months Ended September 30, 2019
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other			Total Industrial Activities			Financial Services		Eliminations			Total
	(in millions)
Revenues	$	2,446	$	664	$	2,331	$	940	$	(489	)	$	5,892		$	487	$	(19	)	$	6,360
Net income(1)												561			82		—			643
Add back:
Income tax expense												(520		)	34		—			(486		)
Interest expense of Industrial Activities, net of interest income and eliminations												62			—		—			62
Foreign exchange losses, net												19			—		—			19
Finance and non-service component of Pension and OPEB costs(2)												(16		)	—		—			(16		)
Adjustments:
Restructuring expenses	9		18		9		5		—			41			1		—			42
Other discrete items(3)	—		—		135		—		2			137			—		—			137
Adjusted EBIT	$	152	$	10	$	70	$	81	$	(29	)	$	284		$	117	$	—		$	401
Depreciation and amortization	69		13		49		29		2			162			—		—			162
Depreciation of assets on operating lease and assets sold with buy-back commitment	—		—		77		—		—			77			60		—			137
Adjusted EBITDA	$	221	$	23	$	196	$	110	$	(27	)	$	523		$	177	$	—		$	700

(1) For Industrial Activities, net income is net of “Results from intersegment investments”.

(2) 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 certain healthcare benefits in the U.S.

(3) In the three months ended September 30, 2019, this item includes other asset optimization charges of $135 million due to actions included in the 'Transform 2 Win' Strategic Business Plan announced at the Company's Capital Markets Day on September 3, 2019.

	Nine Months Ended September 30, 2019
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other			Total Industrial Activities			Financial Services		Eliminations			Total
	(in millions)
Revenues	$	8,031	$	2,061	$	7,443	$	3,109	$	(1,678	)	$	18,966		$	1,480	$	(62	)	$	20,384
Net income(1)												1,066			268		—			1,334
Add back:
Income tax expense												(362		)	101		—			(261		)
Interest expense of Industrial Activities, net of interest income and eliminations												181			—		—			181
Foreign exchange losses, net												39			—		—			39
Finance and non-service component of Pension and OPEB costs(2)												(47		)	—		—			(47		)
Adjustments:
Restructuring expenses	27		22		20		5		1			75			3		—			78
Other discrete items(3)	—		—		135		—		2			137			—		—			137
Adjusted EBIT	$	661	$	48	$	221	$	279	$	(120	)	$	1,089		$	372	$	—		$	1,461
Depreciation and amortization	213		42		143		92		2			492			2		—			494
Depreciation of assets on operating lease and assets sold with buy-back commitment	—		—		235		—		—			235			184		—			419
Adjusted EBITDA	$	874	$	90	$	599	$	371	$	(118	)	$	1,816		$	558	$	—		$	2,374

(1) For Industrial Activities, net income is net of “Results from intersegment investments”.

(2) 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 certain healthcare benefits in the U.S.

(3) In the nine months ended September 30, 2019, this item includes other asset optimization charges of $135 million due to actions included in the 'Transform 2 Win' Strategy.

	Three Months Ended September 30, 2018
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other			Total Industrial Activities			Financial Services		Eliminations			Total
	(in millions)
Revenues	$	2,636	$	726	$	2,404	$	972	$	(493	)	$	6,245		$	469	$	(28	)	$	6,686
Net income(1)												139			92		—			231
Add back:
Income tax expense												100			31		—			131
Interest expense of Industrial Activities, net of interest income and eliminations												79			—		—			79
Foreign exchange losses, net												12			—		—			12
Finance and non-service component of Pension and OPEB costs(2)												(17		)	—		—			(17		)
Adjustments:
Restructuring expenses	3		—		5		—		—			8			—		—			8
Adjusted EBIT	$	196	$	26	$	68	$	82	$	(51	)	$	321		$	123	$	—		$	444
Depreciation and amortization	75		15		53		31		—			174			—		—			174
Depreciation of assets on operating lease and assets sold with buy-back commitment	1		—		95		—		—			96			59		—			155
Adjusted EBITDA	$	272	$	41	$	216	$	113	$	(51	)	$	591		$	182	$	—		$	773

(1) For Industrial Activities, net income is net of “Results from intersegment investments”.

(2) 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 certain healthcare benefits in the U.S.

	Nine Months Ended September 30, 2018
	Agriculture		Construction		Commercial and Specialty Vehicles		Powertrain		Unallocated items, eliminations and other			Total Industrial Activities			Financial Services		Eliminations			Total
	(in millions)
Revenues	$	8,527	$	2,207	$	7,788	$	3,376	$	(1,774	)	$	20,124		$	1,469	$	(89	)	$	21,504
Net income(1)												544			297		—			841
Add back:
Income tax expense												202			110		—			312
Interest expense of Industrial Activities, net of interest income and eliminations												260			—		—			260
Foreign exchange losses, net												134			—		—			134
Finance and non-service component of Pension and OPEB costs(2)												(3		)	—		—			(3		)
Adjustments:
Restructuring expenses	4		—		11		1		—			16			—		—			16
Adjusted EBIT	$	778	$	59	$	209	$	285	$	(178	)	$	1,153		$	407	$	—		$	1,560
Depreciation and amortization	229		46		161		98		1			535			3		—			538
Depreciation of assets on operating lease and assets sold with buy-back commitment	2		—		291		—		—			293			185		—			478
Adjusted EBITDA	$	1,009	$	105	$	661	$	383	$	(177	)	$	1,981		$	595	$	—		$	2,576

(1) For Industrial Activities, net income is net of “Results from intersegment investments”.

(2)

This item includes the pre-tax gain of $50 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of certain healthcare benefits in the U.S.

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VARIABLE INTEREST ENTITIES

9 Months Ended

Sep. 30, 2019

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.

	September 30, 2019		December 31, 2018
	(in millions)
Restricted cash	$	630	$	732
Financing receivables	9,040		9,732
Total Assets	$	9,670	$	10,464
Debt	$	8,858	$	9,692
Total Liabilities	$	8,858	$	9,692

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INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES

9 Months Ended

Sep. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES

INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES

A summary of investments in unconsolidated subsidiaries and affiliates as of September 30, 2019 and December 31, 2018 is as follows:

	September 30, 2019		December 31, 2018
	(in millions)
Equity method	$	501	$	523
Cost method	134		3
Total	$	635	$	526

During the three months ended September 30, 2019, CNH Industrial announced a strategic and exclusive Heavy-Duty Truck partnership with Nikola Corporation, a U.S. based leader in fuel cell truck technology. In this context, CNH Industrial made an initial subscription to Nikola's share capital (approximately 2.5% shareholding) through a cash contribution of $50 million and an in-kind contribution of $50 million, granting Nikola access to certain Iveco technology (reported as revenue). The investment in Nikola is accounted for using the cost method and is expected, in coming quarters, to grow to reflect an additional $150 million of contributions ($50 million of cash and $100 million in services).

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REVENUE (Tables)

9 Months Ended

Sep. 30, 2019

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, 2019 and 2018:

	Three Months Ended September 30,
	2019			2018
	(in millions)
Agriculture	$	2,446		$	2,636
Construction	664			726
Commercial and Specialty Vehicles	2,331			2,404
Powertrain	940			972
Eliminations and Other	(489		)	(493		)
Total Industrial Activities	$	5,892		$	6,245
Financial Services	487			469
Eliminations and Other	(19		)	(28		)
Total Revenues	$	6,360		$	6,686

	Nine Months Ended September 30,
	2019			2018
	(in millions)
Agriculture	$	8,031		$	8,527
Construction	2,061			2,207
Commercial and Specialty Vehicles	7,443			7,788
Powertrain	3,109			3,376
Eliminations and Other	(1,678		)	(1,774		)
Total Industrial Activities	$	18,966		$	20,124
Financial Services	1,480			1,469
Eliminations and Other	(62		)	(89		)
Total Revenues	$	20,384		$	21,504

The following table disaggregates revenues by major source for the three and nine months ended September 30, 2019 and 2018:

	Three Months Ended September 30,
	2019		2018
	(in millions)
Revenues from:
Sales of goods	$	5,603	$	6,018
Rendering of services and other revenues	196		112
Rents on assets sold with a buy-back commitment	93		115
Revenues from sales of goods and services	5,892		6,245
Finance and interest income	290		261
Rents and other income on operating lease	178		180
Finance, interest and other income	468		441
Total Revenues	$	6,360	$	6,686

	Nine Months Ended September 30,
	2019		2018
	(in millions)
Revenues from:
Sales of goods	$	18,168	$	19,467
Rendering of services and other revenues	500		297
Rents on assets sold with a buy-back commitment	298		360
Revenues from sales of goods and services	18,966		20,124
Finance and interest income	869		835
Rents and other income on operating lease	549		545
Finance, interest and other income	1,418		1,380
Total Revenues	$	20,384	$	21,504

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RELATED PARTY INFORMATION

9 Months Ended

Sep. 30, 2019

Related Party Transactions [Abstract]

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, 2019, EXOR N.V. held 42.2% 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, 2019. 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, 2019 and 2018.

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:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(in millions)				(in millions)
Net sales	$	171	$	168	$	533	$	564
Cost of goods sold	$	69	$	86	$	265	$	348
Selling, general and administrative expenses	$	34	$	36	$	102	$	112

	September 30, 2019		December 31, 2018
	(in millions)
Trade receivables	$	15	$	10
Trade payables	$	73	$	118

Transactions with Unconsolidated Subsidiaries and Affiliates

CNH Industrial sells commercial vehicles, agricultural and construction equipment, and provides technical services to unconsolidated subsidiaries and affiliates such as IVECO-OTO MELARA Società Consortile a responsabilità limitata, CNH de Mexico SA de CV, Turk Traktor ve Ziraat Makineleri A.S. and New Holland HFT Japan Inc. CNH Industrial also purchases equipment from unconsolidated subsidiaries and affiliates, such as Turk Traktor ve Ziraat Makineleri A.S. These transactions primarily affected revenues, finance and interest income, cost of goods sold, trade receivables and payables and are presented as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(in millions)				(in millions)
Net sales	$	175	$	201	$	677	$	845
Cost of goods sold	$	121	$	113	$	377	$	356

	September 30, 2019		December 31, 2018
	(in millions)
Trade receivables	$	103	$	107
Trade payables	$	89	$	103

At September 30, 2019 and December 31, 2018, CNH Industrial had provided guarantees on commitments of its joint ventures for an amount of $140 million and $160 million, respectively, mainly related to IVECO-OTO MELARA Società Consortile a responsabilità limitata. At September 30, 2019 and December 31, 2018, CNH Industrial had provided guarantees on commitments of its associated company for an amount of $265 million and $261 million respectively, related to CNH Industrial Capital Europe S.a.S.

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OTHER LIABILITIES

9 Months Ended

Sep. 30, 2019

Other Liabilities Disclosure [Abstract]

OTHER LIABILITIES

OTHER LIABILITIES

A summary of Other liabilities as of September 30, 2019 and December 31, 2018 is as follows:

	September 30, 2019		December 31, 2018
	(in millions)
Repurchase price on buy-back agreements	$	1,556	$	1,870
Warranty and campaign programs	891		925
Marketing and sales incentive programs	1,282		1,329
Tax payables	617		685
Accrued expenses and deferred income	620		609
Accrued employee benefits	602		680
Lease liabilities	395		—
Legal reserves and other provisions	326		368
Contract reserve	289		262
Contract liabilities(1)	1,206		1,368
Restructuring reserve	99		71
Other	756		791
Total	$	8,639	$	8,958

(1) Contract liabilities include $645 million and $773 million at September 30, 2019 and December 31, 2018, 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, 2019 and 2018 for the basic warranty and accruals for campaign programs are as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)						(in millions)
Balance at beginning of period	$	941		$	927		$	925		$	932
Current year additions	162			166			566			603
Claims paid	(170		)	(162		)	(553		)	(532		)
Currency translation adjustment and other	(42		)	(14		)	(47		)	(86		)
Balance at September 30	$	891		$	917		$	891		$	917

Restructuring Provision

The Company incurred restructuring expenses of $42 million and $78 million during the three and nine months ended September 30, 2019, respectively, primarily attributable to actions taken by CNH Industrial in the context of the 'Transform 2 Win' Strategic Business Plan announced at the Company's Capital Markets Day on September 3, 2019. Restructuring costs recognized in the period refer to the asset write-offs related to the recently announced closure of two plants and other activities related to the previously announced launch of a new organization structure focused on operating segments. The Company incurred restructuring expenses of $8 million and $16 million during the three and nine months ended September 30, 2018, respectively.

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FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2019

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 during the three months and nine months ended September 30, 2019 and 2018 (in millions):

				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
2019
Foreign exchange contracts	$	(42	)
				Net sales	2
				Cost of goods sold	(17		)
				Other, Net	(3		)
Interest rate contracts	(6		)	Interest expense	(3		)
Total	$	(48	)		$	(21	)
2018
Foreign currency contracts	$	20
				Net sales	(2		)
				Cost of goods sold	(6		)
				Other, Net	10
Interest rate contracts	(4		)	Interest expense	(2		)
Total	$	16			$	—

				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
2019
Foreign exchange contracts	(87		)
				Net sales	(2		)
				Cost of goods sold	(46		)
				Other, Net	(10		)
Interest rate contracts	(26		)	Interest expense	(6		)
Total	(113		)		$	(64	)
2018
Foreign currency contracts	31
				Net sales	(1		)
				Cost of goods sold	14
				Other, Net	24
Interest rate contracts	9			Interest expense	(4		)
Total	$	40			$	33

Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three and nine months ended September 30, 2019 and 2018 consisted of the following:

	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,
	2019			2018			2019			2018
	(in millions)						(in millions)
Cash flow hedges	$	(2	)	$	2		$	2		$	1		Net sales
	17			6			46			(14		)	Cost of goods sold
	3			(10		)	10			(24		)	Other, net
	3			2			6			4			Interest expense
	(4		)	1			(10		)	5			Income taxes
	$	17		$	1		$	54		$	(28	)
Change in retirement plans’ funded status:
Amortization of actuarial losses	$	18		$	20		$	52		$	62		*
Amortization of prior service cost	(32		)	(30		)	(91		)	(52		)	*
	(4		)	(3		)	(14		)	2			Income taxes
	$	(18	)	$	(13	)	$	(53	)	$	12
Total reclassifications, net of tax	$	(1	)	$	(12	)	$	1		$	(16	)

(*) These amounts are included in net periodic pension and other postretirement benefit cost. See “Note 6: Employee Benefit Plans and Postretirement Benefits” for additional information.

Summary of Impact of Changes in Fair Value of Fair Value Hedges and Derivatives Not Designated as Hedging Instruments on Earnings

The following table summarizes the activity in accumulated other comprehensive income related to the derivatives held by the Company during the nine months ended September 30, 2019 and 2018:

In Millions	Before-Tax Amount			Income Tax			After-Tax Amount
Accumulated derivative net losses as of December 31, 2018	$	(23	)	$	1		$	(22	)
Net changes in fair value of derivatives	(113		)	20			(93		)
Net losses reclassified from accumulated other comprehensive income into income	64			(10		)	54
Accumulated derivative net losses as of September 30, 2019	$	(72	)	$	11		$	(61	)

In Millions	Before-Tax Amount			Income Tax			After-Tax Amount
Accumulated derivative net losses as of December 31, 2017	$	1		$	—		$	1
Net changes in fair value of derivatives	40			(2		)	38
Net losses reclassified from accumulated other comprehensive income into income	(33		)	5			(28		)
Accumulated derivative net losses as of September 30, 2018	$	8		$	3		$	11

The following tables summarize the impact that changes in the fair value of fair value hedges and derivatives not designated as hedging instruments had on earnings (in millions) for the three and nine months ended September 30, 2019:

		For the Three Months Ended September 30,
	Classification of Gain	2019		2018
Fair Value Hedges
Interest rate derivatives	Interest expense	$	7	$	(3	)
Not Designated as Hedges
Foreign exchange contracts	Other, Net	$	29	$	24

		For the Nine Months Ended September 30,
	Classification of Gain	2019			2018
Fair Value Hedges
Interest rate derivatives	Interest expense	$	38		$	(13	)
Not Designated as Hedges
Foreign exchange contracts	Other, Net	$	(39	)	$	133

Summary of Fair Value of Derivatives

The fair values of CNH Industrial’s derivatives as of September 30, 2019 and December 31, 2018 in the condensed consolidated balance sheets are recorded as follows:

	September 30, 2019		December 31, 2018
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	61	Derivative assets	21
Foreign currency contracts	Derivative assets	38	Derivative assets	52
Total derivative assets designated as hedging instruments		99		73
Interest rate contracts	Derivative liabilities	44	Derivative liabilities	29
Foreign currency contracts	Derivative liabilities	80	Derivative liabilities	41
Total derivative liabilities designated as hedging instruments		124		70
Derivatives not designated as hedging instruments under Subtopic 815-20
Interest rate contracts	Derivative assets	—	Derivative assets	1
Foreign currency contracts	Derivative assets	36	Derivative assets	24
Total derivative assets not designated as hedging instruments		36		25
Interest rate contracts	Derivative liabilities	—	Derivative liabilities	—
Foreign currency contracts	Derivative liabilities	8	Derivative liabilities	38
Total derivative liabilities not designated as hedging instruments		8		38

Summary of Fair Value Hierarchy Levels

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, 2019 and December 31, 2018:

	Level 1				Level 2						Total
	September 30, 2019		December 31, 2018		September 30, 2019			December 31, 2018			September 30, 2019			December 31, 2018
	(in millions)
Assets
Foreign exchange derivatives	$	—	$	—	$	74		$	76		$	74		$	76
Interest rate derivatives	—		—		61			22			61			22
Investments	1		1		—			—			1			1
Total Assets	$	1	$	1	$	135		$	98		$	136		$	99
Liabilities
Foreign exchange derivatives	$	—	$	—	$	(88	)	$	(79	)	$	(88	)	$	(79	)
Interest rate derivatives	—		—		(44		)	(29		)	(44		)	(29		)
Total Liabilities	$	—	$	—	$	(132	)	$	(108	)	$	(132	)	$	(108	)

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, 2019 and December 31, 2018 are as follows:

	September 30, 2019				December 31, 2018
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in millions)
Financing receivables	$	18,455	$	18,345	$	19,167	$	19,017
Debt	$	23,906	$	24,366	$	24,445	$	24,481

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NEW ACCOUNTING PRONOUNCEMENTS - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets	$ 397
Operating lease liabilities	$ 395
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets		$ 480
Operating lease liabilities		480
Retained Earnings | Accounting Standards Update 2018-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reclassification of certain tax effects		65
Accumulated Other Comprehensive Income (Loss) | Accounting Standards Update 2018-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reclassification of certain tax effects		$ (65)

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REVENUE - Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01	Sep. 30, 2019
Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percentage of revenue recognized on remaining performance obligation	40.00%
Revenue over the remaining lives of the contracts	12 months
Maximum
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

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INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES - Additional Information (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2019 USD ($)
Nikola Corporation
Noncontrolling Interest [Line Items]
Cash contribution to acquire noncontrolling interest	$ 50
In-kind cash contribution to acquire noncontrolling interest	$ 50
Expected future contributions		$ 150
Expected future contributions, cash		50
Expected future contributions, services		$ 100
Nikola Corporation
Noncontrolling Interest [Line Items]
Noncontrolling interest percentage acquired	2.50%	2.50%

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LEASES - Additional Information (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2019 USD ($)
Leases [Abstract]
Short-term lease expenses	$ 4	$ 12
Operating lease expenses	37	116
Operating lease right-of-use assets	397	397
Operating lease liabilities	$ 395	395
Leased assets obtained in exchange for operating lease obligations		50
Operating cash outflow for amounts included in the measurement of operating lease obligations		$ 116
Weighted average remaining lease term	6 years 10 months 24 days	6 years 10 months 24 days
Weighted average discount rate	3.60%	3.60%
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

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RECEIVABLES - Allowance for Credit Losses Activity (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Opening balance	$ 477	$ 542	$ 490	$ 583	$ 583
Provision (benefit)	13	1	37	29	48
Charge-offs, net of recoveries	(19)	(24)	(52)	(65)	(100)
Foreign currency translation and other	(21)	(11)	(25)	(39)	(41)
Ending balance	450	508	450	508	490
Ending Balance: Individually Evaluated for Impairment	311	360	311	360	339
Ending Balance: Collectively Evaluated for Impairment	139	148	139	148	151
Ending Balance	18,455	18,366	18,455	18,366	19,167
Ending Balance: Individually Evaluated for Impairment	560	659	560	659	673
Ending Balance: Collectively Evaluated for Impairment	17,895	17,707	17,895	17,707	18,494
Retail
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Opening balance	319	349	326	383	383
Provision (benefit)	11	13	34	38	53
Charge-offs, net of recoveries	(17)	(20)	(44)	(60)	(85)
Foreign currency translation and other	(18)	(6)	(21)	(25)	(25)
Ending balance	295	336	295	336	326
Ending Balance: Individually Evaluated for Impairment	188	217	188	217	204
Ending Balance: Collectively Evaluated for Impairment	107	119	107	119	122
Ending Balance	9,002	9,152	9,002	9,152	9,350
Ending Balance: Individually Evaluated for Impairment	319	329	319	329	359
Ending Balance: Collectively Evaluated for Impairment	8,683	8,823	8,683	8,823	8,991
Wholesale
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Opening balance	158	193	164	200	200
Provision (benefit)	2	(12)	3	(9)	(5)
Charge-offs, net of recoveries	(2)	(4)	(8)	(5)	(15)
Foreign currency translation and other	(3)	(5)	(4)	(14)	(16)
Ending balance	155	172	155	172	164
Ending Balance: Individually Evaluated for Impairment	123	143	123	143	135
Ending Balance: Collectively Evaluated for Impairment	32	29	32	29	29
Ending Balance	9,382	9,140	9,382	9,140	9,749
Ending Balance: Individually Evaluated for Impairment	241	330	241	330	314
Ending Balance: Collectively Evaluated for Impairment	9,141	8,810	9,141	8,810	9,435
Other
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Opening balance	0	0	0	0	0
Provision (benefit)	0	0	0	0	0
Charge-offs, net of recoveries	0	0	0	0	0
Foreign currency translation and other	0	0	0	0	0
Ending balance	0	0	0	0	0
Ending Balance: Individually Evaluated for Impairment	0	0	0	0	0
Ending Balance: Collectively Evaluated for Impairment	0	0	0	0	0
Ending Balance	71	74	71	74	68
Ending Balance: Individually Evaluated for Impairment	0	0	0	0	0
Ending Balance: Collectively Evaluated for Impairment	$ 71	$ 74	$ 71	$ 74	$ 68

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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, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information [Line Items]
Revenues	$ 6,360	$ 6,686	$ 20,384	$ 21,504
Net income	643	231	1,334	841
Add back:
Income tax expense	(486)	131	(261)	312
Interest expense of Industrial Activities, net of interest income and eliminations	62	79	181	260
Foreign exchange losses, net	19	12	39	134
Finance and non-service component of Pension and OPEB costs(2)	(16)	(17)	(47)	(3)
Adjustments:
Restructuring expenses	42	8	78	16
Other discrete items	137		137
Adjusted EBIT	401	444	1,461	1,560
Depreciation and amortization	162	174	494	538
Depreciation of assets on operating lease and assets sold with buy-back commitment	137	155	419	478
Adjusted EBITDA	700	773	2,374	2,576
Benefits modification amortization	$ 30	$ 30	$ 90	$ 50
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 expense	135		135
Eliminations
Segment Reporting Information [Line Items]
Revenues	(19)	(28)	(62)	(89)
Net income	0	0	0	0
Add back:
Income tax expense	0	0	0	0
Interest expense of Industrial Activities, net of interest income and eliminations	0	0	0	0
Foreign exchange losses, net	0	0	0	0
Finance and non-service component of Pension and OPEB costs(2)	0	0	0	0
Adjustments:
Restructuring expenses	0	0	0	0
Other discrete items	0		0
Adjusted EBIT	0	0	0	0
Depreciation and amortization	0	0	0	0
Depreciation of assets on operating lease and assets sold with buy-back commitment	0	0	0	0
Adjusted EBITDA	0	0	0	0
Industrial Activities
Segment Reporting Information [Line Items]
Revenues	5,915	6,268	19,042	20,197
Net income	643	231	1,334	841
Add back:
Income tax expense	(520)	100	(362)	202
Adjustments:
Restructuring expenses	41	8	75	16
Industrial Activities | Operating segments
Segment Reporting Information [Line Items]
Revenues	5,892	6,245	18,966	20,124
Net income	561	139	1,066	544
Add back:
Income tax expense	(520)	100	(362)	202
Interest expense of Industrial Activities, net of interest income and eliminations	62	79	181	260
Foreign exchange losses, net	19	12	39	134
Finance and non-service component of Pension and OPEB costs(2)	(16)	(17)	(47)	(3)
Adjustments:
Restructuring expenses	41	8	75	16
Other discrete items	137		137
Adjusted EBIT	284	321	1,089	1,153
Depreciation and amortization	162	174	492	535
Depreciation of assets on operating lease and assets sold with buy-back commitment	77	96	235	293
Adjusted EBITDA	523	591	1,816	1,981
Industrial Activities | Unallocated items, eliminations and other
Segment Reporting Information [Line Items]
Revenues	(489)	(493)	(1,678)	(1,774)
Adjustments:
Restructuring expenses	0	0	1	0
Other discrete items	2		2
Adjusted EBIT	(29)	(51)	(120)	(178)
Depreciation and amortization	2	0	2	1
Depreciation of assets on operating lease and assets sold with buy-back commitment	0	0	0	0
Adjusted EBITDA	(27)	(51)	(118)	(177)
Agriculture | Operating segments
Segment Reporting Information [Line Items]
Revenues	2,446	2,636	8,031	8,527
Adjustments:
Restructuring expenses	9	3	27	4
Other discrete items	0		0
Adjusted EBIT	152	196	661	778
Depreciation and amortization	69	75	213	229
Depreciation of assets on operating lease and assets sold with buy-back commitment	0	1	0	2
Adjusted EBITDA	221	272	874	1,009
Construction | Operating segments
Segment Reporting Information [Line Items]
Revenues	664	726	2,061	2,207
Adjustments:
Restructuring expenses	18	0	22	0
Other discrete items	0		0
Adjusted EBIT	10	26	48	59
Depreciation and amortization	13	15	42	46
Depreciation of assets on operating lease and assets sold with buy-back commitment	0	0	0	0
Adjusted EBITDA	23	41	90	105
Commercial and Specialty Vehicles | Operating segments
Segment Reporting Information [Line Items]
Revenues	2,331	2,404	7,443	7,788
Adjustments:
Restructuring expenses	9	5	20	11
Other discrete items	135		135
Adjusted EBIT	70	68	221	209
Depreciation and amortization	49	53	143	161
Depreciation of assets on operating lease and assets sold with buy-back commitment	77	95	235	291
Adjusted EBITDA	196	216	599	661
Powertrain | Operating segments
Segment Reporting Information [Line Items]
Revenues	940	972	3,109	3,376
Adjustments:
Restructuring expenses	5	0	5	1
Other discrete items	0		0
Adjusted EBIT	81	82	279	285
Depreciation and amortization	29	31	92	98
Depreciation of assets on operating lease and assets sold with buy-back commitment	0	0	0	0
Adjusted EBITDA	110	113	371	383
Financial Services
Segment Reporting Information [Line Items]
Revenues	487	469	1,480	1,469
Net income	82	92	268	297
Add back:
Income tax expense	34	31	101	110
Adjustments:
Restructuring expenses	1	0	3	0
Financial Services | Operating segments
Segment Reporting Information [Line Items]
Revenues	487	469	1,480	1,469
Net income	82	92	268	297
Add back:
Income tax expense	34	31	101	110
Interest expense of Industrial Activities, net of interest income and eliminations	0	0	0	0
Foreign exchange losses, net	0	0	0	0
Finance and non-service component of Pension and OPEB costs(2)	0	0	0	0
Adjustments:
Restructuring expenses	1	0	3	0
Other discrete items	0		0
Adjusted EBIT	117	123	372	407
Depreciation and amortization	0	0	2	3
Depreciation of assets on operating lease and assets sold with buy-back commitment	60	59	184	185
Adjusted EBITDA	177	182	558	595
Financial Services | Eliminations
Segment Reporting Information [Line Items]
Revenues	$ (19)	$ (28)	$ (62)	$ (89)

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EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Pension
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 5	$ 6	$ 17	$ 19
Interest cost	19	18	57	54
Expected return on assets	(26)	(27)	(76)	(84)
Amortization of:
Prior service credit	1	0	1	(1)
Actuarial loss	17	18	51	56
Net periodic benefit cost	16	15	50	44
Healthcare
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	1	1	4	4
Interest cost	3	5	11	19
Expected return on assets	(2)	(1)	(6)	(5)
Amortization of:
Prior service credit	(33)	(31)	(93)	(52)
Actuarial loss	1	2	1	5
Net periodic benefit cost	(30)	(24)	(83)	(29)
Other
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	4	3	10	11
Interest cost	0	1	2	2
Expected return on assets	0	0	0	0
Amortization of:
Prior service credit	0	1	1	1
Actuarial loss	0	0	0	1
Net periodic benefit cost	$ 4	$ 5	$ 13	$ 15

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of OCI (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Unrealized gain (loss) on cash flow hedges
Gross Amount	$ (28)			$ 16			$ (50)	$ 8
Income Taxes	6			(1)			11	2
Net Amount	(22)			15			(39)	10
Changes in retirement plans’ funded status
Gross Amount	(15)			(14)			(37)	585
Income Taxes	6			8			14	(135)
Net Amount	(9)			(6)			(23)	450
Foreign currency translation
Gross Amount	31			(38)			109	(373)
Income Taxes	0			0			0	0
Net Amount	31			(38)			109	(373)
Share of other comprehensive (loss) of entities using the equity method
Gross Amount	(14)			(18)			(17)	(36)
Income Taxes	0			0			0	0
Net Amount	(14)			(18)			(17)	(36)
Other comprehensive income (loss)
Gross Amount	(26)			(54)			5	184
Income Taxes	12			7			25	(133)
Other comprehensive income (loss), net of tax	$ (14)	$ (5)	$ 49	$ (47)	$ 351	$ (253)	$ 30	$ 51

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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, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance at beginning of period	$ 941	$ 927	$ 925	$ 932
Current year additions	162	166	566	603
Claims paid	(170)	(162)	(553)	(532)
Currency translation adjustment and other	(42)	(14)	(47)	(86)
Balance at September 30	$ 891	$ 917	$ 891	$ 917

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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, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (Loss) Recognized in Accumulated Other Comprehensive Income	$ (48)	$ 16	$ (113)	$ 40
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	(21)	0	(64)	33
Net sales | Foreign exchange derivatives
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (Loss) Recognized in Accumulated Other Comprehensive Income	(42)	20	(87)	31
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	2	(2)	(2)	(1)
Cost of goods sold | Foreign exchange derivatives
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	(17)	(6)	(46)	14
Other, Net | Foreign exchange derivatives
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	(3)	10	(10)	24
Interest expense | Interest rate contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (Loss) Recognized in Accumulated Other Comprehensive Income	(6)	(4)	(26)	9
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	$ (3)	$ (2)	$ (6)	$ (4)

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RELATED PARTY INFORMATION - Schedule of Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
FCA Group
Related Party Transaction [Line Items]
Net sales	$ 171	$ 168	$ 533	$ 564
Cost of goods sold	69	86	265	348
Selling, general and administrative expenses	34	36	102	112
Trade receivables	15		15		$ 10
Trade payables	73		73		118
Unconsolidated subsidiaries and affiliates
Related Party Transaction [Line Items]
Net sales	175	201	677	845
Cost of goods sold	121	$ 113	377	$ 356
Trade receivables	103		103		107
Trade payables	$ 89		$ 89		$ 103

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INVENTORIES

9 Months Ended

Sep. 30, 2019

Inventory Disclosure [Abstract]

INVENTORIES

INVENTORIES

Inventories as of September 30, 2019 and December 31, 2018 consist of the following:

	September 30, 2019		December 31, 2018
	(in millions)
Raw materials	$	1,493	$	1,293
Work-in-process	776		576
Finished goods	5,847		4,857
Total inventories	$	8,116	$	6,726

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EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS

9 Months Ended

Sep. 30, 2019

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, 2019 and 2018:

	Pension						Healthcare						Other
	Three Months Ended September 30,						Three Months Ended September 30,						Three Months Ended September 30,
	2019			2018			2019			2018			2019		2018
	(in millions)
Service cost	$	5		$	6		$	1		$	1		$	4	$	3
Interest cost	19			18			3			5			—		1
Expected return on assets	(26		)	(27		)	(2		)	(1		)	—		—
Amortization of:
Prior service credit	1			—			(33		)	(31		)	—		1
Actuarial loss	17			18			1			2			—		—
Net periodic benefit cost	$	16		$	15		$	(30	)	$	(24	)	$	4	$	5

	Pension						Healthcare						Other
	Nine Months Ended September 30,						Nine Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018			2019		2018
	(in millions)
Service cost	$	17		$	19		$	4		$	4		$	10	$	11
Interest cost	57			54			11			19			2		2
Expected return on assets	(76		)	(84		)	(6		)	(5		)	—		—
Amortization of:
Prior service credit	1			(1		)	(93		)	(52		)	1		1
Actuarial loss	51			56			1			5			—		1
Net periodic benefit cost	$	50		$	44		$	(83	)	$	(29	)	$	13	$	15

On February 20, 2018, CNH Industrial announced that the United States Supreme Court ruled in its favor in Reese vs. CNH Industrial N.V. and CNH Industrial America LLC. The decision allowed CNH Industrial to terminate or modify various retiree healthcare benefits previously provided to certain UAW Union represented Company retirees. On April 16, 2018, CNH Industrial announced its determination to modify the benefits provided to the applicable retirees (“Benefit Modification”) to make them consistent with the benefits provided

to current eligible CNH Industrial retirees who had been represented by the UAW. The Benefit Modification resulted in a reduction of the plan liability by $527 million. This amount will be amortized from other comprehensive income (loss) to the income statement over approximately 4.5 years, which represents the average service period to attain eligibility conditions for active participants. For the three and nine months ended September 30, 2019, $30 million and $90 million of amortization (“Benefit Modification Amortization”) was recorded as a pre-tax gain in Other, net, respectively. For the three and nine months ended September 30, 2018, $30 million and $50 million of Benefit Modification Amortization was recorded as a pre-tax gain in Other, net, respectively.

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VARIABLE INTEREST ENTITIES (Tables)

9 Months Ended

Sep. 30, 2019

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.

	September 30, 2019		December 31, 2018
	(in millions)
Restricted cash	$	630	$	732
Financing receivables	9,040		9,732
Total Assets	$	9,670	$	10,464
Debt	$	8,858	$	9,692
Total Liabilities	$	8,858	$	9,692

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - € / shares	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common shares, par value (in eur per share)	€ 0.01	€ 0.01
Common shares, shares outstanding (in shares)	1,351,332,628	1,353,831,958
Special voting shares, shares outstanding (in shares)	387,951,529	388,725,624
Treasury stock, shares (in shares)	13,067,568	10,568,238

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions	Total	Common Shares	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests	Redeemable Noncontrolling Interest
Beginning balance at Dec. 31, 2017	$ 4,232	$ 25	$ (10)	$ 4,412	$ 1,763	$ (1,966)	$ 8
Beginning balance, redeemable noncontrolling interests at Dec. 31, 2017								$ 25
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	200				196		4
Net income, redeemable non controlling interests								2
Other Comprehensive income (loss), net of tax	(253)					(254)	1
Dividends paid	0							(1)
Acquisition of treasury stock	(90)		(90)
Common shares issued from treasury stock and capital increase for share-based compensation	2		10	(8)
Share-based compensation expense	4			4
Other changes	(1)			(1)
Ending balance at Mar. 31, 2018	4,094	25	(90)	4,407	1,959	(2,220)	13
Ending balance, redeemable noncontrolling interests at Mar. 31, 2018								26
Beginning balance at Dec. 31, 2017	4,232	25	(10)	4,412	1,763	(1,966)	8
Beginning balance, redeemable noncontrolling interests at Dec. 31, 2017								25
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other Comprehensive income (loss), net of tax	51
Ending balance at Sep. 30, 2018	4,747	25	(129)	4,395	2,342	(1,908)	22
Ending balance, redeemable noncontrolling interests at Sep. 30, 2018								29
Beginning balance at Mar. 31, 2018	4,094	25	(90)	4,407	1,959	(2,220)	13
Beginning balance, redeemable noncontrolling interests at Mar. 31, 2018								26
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	405				396		9
Net income, redeemable non controlling interests								3
Other Comprehensive income (loss), net of tax	351					352	(1)
Dividends paid	(235)				(235)			(2)
Acquisition of treasury stock	(44)		(44)
Common shares issued from treasury stock and capital increase for share-based compensation	(1)		24	(25)
Share-based compensation expense	12			12
Other changes	(3)			(2)			(1)
Ending balance at Jun. 30, 2018	4,579	25	(110)	4,392	2,120	(1,868)	20
Ending balance, redeemable noncontrolling interests at Jun. 30, 2018								27
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	227				222		5
Net income, redeemable non controlling interests								4
Other Comprehensive income (loss), net of tax	(47)					(40)	(7)
Dividends paid	0							(2)
Acquisition of treasury stock	(22)		(22)
Common shares issued from treasury stock and capital increase for share-based compensation	1		3	(2)
Share-based compensation expense	9			9
Other changes	0			(4)			4
Ending balance at Sep. 30, 2018	4,747	25	(129)	4,395	2,342	(1,908)	22
Ending balance, redeemable noncontrolling interests at Sep. 30, 2018								29
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							30
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	263				257		6
Net income, 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)
Acquisition of treasury stock	0
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							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							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	422				414		8
Net income, 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	640				637		3
Net income, redeemable non controlling interests								3
Other Comprehensive income (loss), net of tax	(14)					(12)	(2)
Dividends paid	0							(2)
Acquisition of treasury stock	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							$ 34

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RECEIVABLES (Tables)

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

Summary of Financing Receivables

A summary of financing receivables as of September 30, 2019 and December 31, 2018 is as follows:

	September 30, 2019		December 31, 2018
	(in millions)
Retail	$	9,002	$	9,350
Wholesale	9,382		9,749
Other	71		68
Total	$	18,455	$	19,167

Summary of Aging of Financing Receivables

The aging of financing receivables as of September 30, 2019 and December 31, 2018 is as follows (in millions):

	September 30, 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	$	24	$	6	$	—	$	30	$	6,210	$	6,240	$	9	$	6,249
Europe	—		—		—		—		146		146		—		146
South America	13		2		8		23		1,739		1,762		38		1,800
Rest of World	3		2		1		6		801		807		—		807
Total Retail	$	40	$	10	$	9	$	59	$	8,896	$	8,955	$	47	$	9,002
Wholesale
North America	$	4	$	—	$	—	$	4	$	3,669	$	3,673	$	3	$	3,676
Europe	14		13		32		59		4,207		4,266		—		4,266
South America	—		—		1		1		722		723		53		776
Rest of World	8		6		5		19		645		664		—		664
Total Wholesale	$	26	$	19	$	38	$	83	$	9,243	$	9,326	$	56	$	9,382

	December 31, 2018
	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	$	21	$	5	$	—	$	26	$	6,285	$	6,311	$	12	$	6,323
Europe	1		—		10		11		164		175		40		215
South America	11		9		7		27		1,885		1,912		83		1,995
Rest of World	2		1		—		3		814		817		—		817
Total Retail	$	35	$	15	$	17	$	67	$	9,148	$	9,215	$	135	$	9,350
Wholesale
North America	$	—	$	—	$	—	$	—	$	3,613	$	3,613	$	18	$	3,631
Europe	20		9		—		29		4,727		4,756		—		4,756
South America	—		—		—		—		656		656		—		656
Rest of World	7		3		—		10		696		706		—		706
Total Wholesale	$	27	$	12	$	—	$	39	$	9,692	$	9,731	$	18	$	9,749

Summary of Allowance for Credit Loss Activity

Allowance for credit losses activity for the three and nine months ended September 30, 2019 and 2018 is as follows:

	Three Months Ended September 30, 2019
	Retail			Wholesale			Other		Total
Opening balance	$	319		$	158		$	—	$	477
Provision	11			2			—		13
Charge-offs, net of recoveries	(17		)	(2		)	—		(19		)
Foreign currency translation and other	(18		)	(3		)	—		(21		)
Ending balance	$	295		$	155		$	—	$	450

	Nine Months Ended September 30, 2019
	Retail			Wholesale			Other		Total
Opening Balance	$	326		$	164		$	—	$	490
Provision (benefit)	34			3			—		37
Charge-offs, net of recoveries	(44		)	(8		)	—		(52		)
Foreign Currency Translation and Other	(21		)	(4		)	—		(25		)
Ending Balance	295			155			—		450
Ending Balance: Individually Evaluated for Impairment	188			123			—		311
Ending Balance: Collectively Evaluated for Impairment	107			32			—		139
Receivables:
Ending Balance	9,002			9,382			71		18,455
Ending Balance: Individually Evaluated for Impairment	319			241			—		560
Ending Balance: Collectively Evaluated for Impairment	$	8,683		$	9,141		$	71	$	17,895

	Three Months Ended September 30, 2018
	Retail			Wholesale			Other		Total
Opening balance	$	349		$	193		$	—	$	542
Provision	13			(12		)	—		1
Charge-offs, net of recoveries	(20		)	(4		)	—		(24		)
Foreign currency translation and other	(6		)	(5		)	—		(11		)
Ending balance	$	336		$	172		$	—	$	508

	Nine Months Ended September 30, 2018
	Retail			Wholesale			Other		Total
Opening Balance	$	383		$	200		$	—	$	583
Provision (benefit)	38			(9		)	—		29
Charge-offs, net of recoveries	(60		)	(5		)	—		(65		)
Foreign Currency Translation and Other	(25		)	(14		)	—		(39		)
Ending Balance	336			172			—		508
Ending Balance: Individually Evaluated for Impairment	217			143			—		360
Ending Balance: Collectively Evaluated for Impairment	119			29			—		148
Receivables:
Ending Balance	9,152			9,140			74		18,366
Ending Balance: Individually Evaluated for Impairment	329			330			—		659
Ending Balance: Collectively Evaluated for Impairment	$	8,823		$	8,810		$	74	$	17,707

Allowance for credit losses activity for the year ended December 31, 2018 is as follows:

	December 31, 2018
	Retail			Wholesale			Other		Total
Opening Balance	$	383		$	200		$	—	$	583
Provision (benefit)	53			(5		)	—		48
Charge-offs, net of recoveries	(85		)	(15		)	—		(100		)
Foreign Currency Translation and Other	(25		)	(16		)	—		(41		)
Ending Balance	326			164			—		490
Ending Balance: Individually Evaluated for Impairment	204			135			—		339
Ending Balance: Collectively Evaluated for Impairment	122			29			—		151
Receivables:
Ending Balance	9,350			9,749			68		19,167
Ending Balance: Individually Evaluated for Impairment	359			314			—		673
Ending Balance: Collectively Evaluated for Impairment	$	8,991		$	9,435		$	68	$	18,494

Summary of Financing Receivable Impairment

Financing receivables are considered impaired when it is probable that the Company will be unable to collect all amounts due according to the contractual terms. Receivables reviewed for impairment generally include those that are either past due, have provided bankruptcy notification, or require significant collection efforts. Impaired receivables are generally classified as non-performing.

	September 30, 2019								December 31, 2018
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Investment		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Investment
	(in millions)
With an allowance recorded
Retail
North America	$	37	$	36	$	19	$	39	$	31	$	30	$	16	$	33
Europe	$	204	$	204	$	146	$	215	$	234	$	234	$	167	$	249
South America	$	76	$	76	$	21	$	83	$	91	$	91	$	20	$	88
Rest of World	$	2	$	2	$	2	$	3	$	3	$	3	$	1	$	4
Wholesale
North America	$	5	$	5	$	2	$	8	$	25	$	23	$	5	$	27
Europe	$	217	$	217	$	93	$	241	$	256	$	256	$	107	$	260
South America	$	15	$	8	$	16	$	16	$	23	$	14	$	16	$	26
Rest of World	$	4	$	3	$	12	$	7	$	10	$	10	$	7	$	9
Total
Retail	$	319	$	318	$	188	$	340	$	359	$	358	$	204	$	374
Wholesale	$	241	$	233	$	123	$	272	$	314	$	303	$	135	$	322

Summary of Carrying Amount of Restricted Assets

At September 30, 2019 and December 31, 2018, the carrying amount of such restricted assets included in financing receivables above are the following (in millions):

	Restricted Receivables
	September 30, 2019		December 31, 2018
Retail note and finance lease receivables	$	6,322	$	6,371
Wholesale receivables	6,480		7,052
Total	$	12,802	$	13,423

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GOODWILL AND OTHER INTANGIBLES (Tables)

9 Months Ended

Sep. 30, 2019

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, 2019 are as follows:

	Agriculture		Construction		Commercial and Specialty Vehicles			Powertrain		Financial Services			Total
	(in millions)
Balance at Balance at January 1, 2019	$	1,646	$	587	$	62		$	5	$	153		$	2,453
Foreign currency translation and other	4		—		(4		)	—		(1		)	(1		)
Balance at Balance at September 30, 2019	$	1,650	$	587	$	58		$	5	$	152		$	2,452

Summary of Other Intangible Assets

As of September 30, 2019 and December 31, 2018, the Company’s other intangible assets and related accumulated amortization consisted of the following:

		September 30, 2019						December 31, 2018
	Weighted Avg. Life	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
		(in millions)
Other intangible assets subject to    amortization:
Dealer networks	15	$	318	$	217	$	101	$	320	$	207	$	113
Patents, concessions and licenses and other	5-25	1,889		1,503		386		1,879		1,477		402
		2,207		1,720		487		2,199		1,684		515
Other intangible assets not subject to    amortization:
Trademarks		273		—		273		273		—		273
Total Other intangible assets		$	2,480	$	1,720	$	760	$	2,472	$	1,684	$	788

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SEGMENT INFORMATION - Additional Information (Details)	9 Months Ended
	Sep. 30, 2019 segment
Segment Reporting [Abstract]
Number of segments (in segments)	5

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EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Basic:
Net income attributable to CNH Industrial	$ 637	$ 222	$ 1,308	$ 814
Weighted average common shares outstanding—basic (in shares)	1,351,000,000	1,355,000,000	1,353,000,000	1,358,000,000
Basic earnings per share (in usd per share)	$ 0.47	$ 0.16	$ 0.97	$ 0.60
Diluted:
Net income attributable to CNH Industrial	$ 637	$ 222	$ 1,308	$ 814
Weighted average common shares outstanding—basic (in shares)	1,351,000,000	1,355,000,000	1,353,000,000	1,358,000,000
Effect of dilutive securities (when dilutive):
Stock compensation plans (in shares)	1,000,000	3,000,000	2,000,000	4,000,000
Weighted average common shares outstanding—diluted (in shares)	1,352,000,000	1,358,000,000	1,355,000,000	1,362,000,000
Diluted earnings per share (in usd per share)	$ 0.47	$ 0.16	$ 0.97	$ 0.60
Antidilutive securities excluded from EPS computation (in shares)	0	0	0	0

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RECEIVABLES - Summary of Aging of Receivables (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	$ 18,455	$ 19,167	$ 18,366
Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	59	67
Current	8,896	9,148
Total	9,002	9,350	9,152
Retail | Total Performing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	8,955	9,215
Retail | Non- Performing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	47	135
Retail | North America
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	30	26
Current	6,210	6,285
Total	6,249	6,323
Retail | North America | Total Performing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	6,240	6,311
Retail | North America | Non- Performing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	9	12
Retail | Europe
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	11
Current	146	164
Total	146	215
Retail | Europe | Total Performing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	146	175
Retail | Europe | Non- Performing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	0	40
Retail | South America
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	23	27
Current	1,739	1,885
Total	1,800	1,995
Retail | South America | Total Performing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	1,762	1,912
Retail | South America | Non- Performing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	38	83
Retail | Rest of World
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6	3
Current	801	814
Total	807	817
Retail | Rest of World | Total Performing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	807	817
Retail | Rest of World | 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	40	35
Retail | 31-60 Days Past Due | North America
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	24	21
Retail | 31-60 Days Past Due | Europe
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	1
Retail | 31-60 Days Past Due | South America
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	13	11
Retail | 31-60 Days Past Due | Rest of World
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	3	2
Retail | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	10	15
Retail | 61-90 Days Past Due | North America
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6	5
Retail | 61-90 Days Past Due | Europe
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Retail | 61-90 Days Past Due | South America
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2	9
Retail | 61-90 Days Past Due | Rest of World
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2	1
Retail | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	9	17
Retail | Greater Than 90 Days | North America
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Retail | Greater Than 90 Days | Europe
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	10
Retail | Greater Than 90 Days | South America
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	8	7
Retail | Greater Than 90 Days | Rest of World
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1	0
Wholesale
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	83	39
Current	9,243	9,692
Total	9,382	9,749	$ 9,140
Wholesale | Total Performing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	9,326	9,731
Wholesale | Non- Performing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	56	18
Wholesale | North America
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4	0
Current	3,669	3,613
Total	3,676	3,631
Wholesale | North America | Total Performing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	3,673	3,613
Wholesale | North America | Non- Performing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	3	18
Wholesale | Europe
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	59	29
Current	4,207	4,727
Total	4,266	4,756
Wholesale | Europe | Total Performing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	4,266	4,756
Wholesale | Europe | Non- Performing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	0	0
Wholesale | South America
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1	0
Current	722	656
Total	776	656
Wholesale | South America | Total Performing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	723	656
Wholesale | South America | Non- Performing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	53	0
Wholesale | Rest of World
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	19	10
Current	645	696
Total	664	706
Wholesale | Rest of World | Total Performing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	664	706
Wholesale | Rest of World | 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	26	27
Wholesale | 31-60 Days Past Due | North America
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4	0
Wholesale | 31-60 Days Past Due | Europe
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	14	20
Wholesale | 31-60 Days Past Due | South America
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Wholesale | 31-60 Days Past Due | Rest of World
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	8	7
Wholesale | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	19	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 | Europe
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	13	9
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	6	3
Wholesale | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	38	0
Wholesale | Greater Than 90 Days | North America
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Wholesale | Greater Than 90 Days | Europe
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	32	0
Wholesale | Greater Than 90 Days | South America
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1	0
Wholesale | Greater Than 90 Days | Rest of World
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 5	$ 0

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of AOCI (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	$ 5,068	$ 5,068	$ 4,232
Reclassification of certain tax effects	0
Ending balance	5,391	6,126	4,747
Other comprehensive income (loss) allocated to noncontrolling interests		(2)	(7)
Unrealized Gain (Loss) on Cash Flow Hedges
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(22)	(22)	1
Other comprehensive income (loss), before reclassifications		(93)	38
Amounts reclassified from other comprehensive income		54	(28)
Other comprehensive income (loss)		(39)	10
Reclassification of certain tax effects		0
Ending balance		(61)	11
Change in Retirement Plans’ Funded Status
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(473)	(473)	(950)
Other comprehensive income (loss), before reclassifications		30	438
Amounts reclassified from other comprehensive income		(53)	12
Other comprehensive income (loss)		(23)	450
Reclassification of certain tax effects		(65)
Ending balance		(561)	(500)
Foreign Currency Translation
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(1,216)	(1,216)	(899)
Other comprehensive income (loss), before reclassifications		111	(373)
Amounts reclassified from other comprehensive income		0	0
Other comprehensive income (loss)		111	(373)
Reclassification of certain tax effects		0
Ending balance		(1,105)	(1,272)
Share of Other Comprehensive Income (Loss) of Entities Using the Equity Method
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(148)	(148)	(118)
Other comprehensive income (loss), before reclassifications		(17)	(29)
Amounts reclassified from other comprehensive income		0	0
Other comprehensive income (loss)		(17)	(29)
Reclassification of certain tax effects		0
Ending balance		(165)	(147)
Total
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(1,859)	(1,859)	(1,966)
Other comprehensive income (loss), before reclassifications		31	74
Amounts reclassified from other comprehensive income		1	(16)
Other comprehensive income (loss)		32	58
Reclassification of certain tax effects	65	(65)
Ending balance	$ (1,877)	$ (1,892)	$ (1,908)

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OTHER LIABILITIES - Additional Information (Details) $ in Millions		3 Months Ended		9 Months Ended
	Sep. 03, 2019 building	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)
Other Liabilities [Abstract]
Restructuring expenses | $		$ 42	$ 8	$ 78	$ 16
Number of plants closed | building	2

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FINANCIAL INSTRUMENTS - Summary of Activity in Accumulated Other Comprehensive Income Related to Derivatives (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Before-Tax Amount
Accumulated derivative net losses, beginning of period	$ (23)	$ 1
Net changes in fair value of derivatives	(113)	40
Net losses reclassified from accumulated other comprehensive income into income	64	(33)
Accumulated derivative net losses, end of period	(72)	8
Income Tax
Accumulated derivative net losses, beginning of period	1	0
Net changes in fair value of derivatives	20	(2)
Reclassification from AOCI, Current Period, Tax	(10)	5
Accumulated derivative net losses, end of period	11	3
After-Tax Amount
Accumulated derivative net losses, beginning of period	(22)	1
Net changes in fair value of derivatives	(93)	38
Net losses reclassified from accumulated other comprehensive income into income	54	(28)
Accumulated derivative net losses, end of period	$ (61)	$ 11

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SUPPLEMENTAL INFORMATION - Income Statement (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues
Net sales	$ 5,892	$ 6,245	$ 18,966	$ 20,124
Finance, interest and other income	468	441	1,418	1,380
Total Revenues	6,360	6,686	20,384	21,504
Costs and Expenses
Cost of goods sold	5,015	5,162	15,732	16,606
Selling, general and administrative expenses	540	523	1,634	1,706
Research and development expenses	238	254	755	743
Restructuring expenses	42	8	78	16
Interest expense	192	189	570	581
Other, net	173	199	552	752
Total Costs and Expenses	6,200	6,335	19,321	20,404
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates	160	351	1,063	1,100
Income tax (expense)	486	(131)	261	(312)
Equity in income of unconsolidated subsidiaries and affiliates	(3)	11	10	53
Net income	643	231	1,334	841
Industrial Activities
Revenues
Net sales	5,892	6,245	18,966	20,124
Finance, interest and other income	23	23	76	73
Total Revenues	5,915	6,268	19,042	20,197
Costs and Expenses
Cost of goods sold	5,015	5,162	15,732	16,606
Selling, general and administrative expenses	485	481	1,475	1,553
Research and development expenses	238	254	755	743
Restructuring expenses	41	8	75	16
Interest expense	85	102	257	333
Other, net	0	24	34	228
Total Costs and Expenses	5,864	6,031	18,328	19,479
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates	51	237	714	718
Income tax (expense)	520	(100)	362	(202)
Equity in income of unconsolidated subsidiaries and affiliates	(10)	2	(10)	28
Results from intersegment investments	82	92	268	297
Net income	643	231	1,334	841
Financial Services
Revenues
Net sales	0	0	0	0
Finance, interest and other income	487	469	1,480	1,469
Total Revenues	487	469	1,480	1,469
Costs and Expenses
Cost of goods sold	0	0	0	0
Selling, general and administrative expenses	55	42	159	153
Research and development expenses	0	0	0	0
Restructuring expenses	1	0	3	0
Interest expense	149	138	451	410
Other, net	173	175	518	524
Total Costs and Expenses	378	355	1,131	1,087
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates	109	114	349	382
Income tax (expense)	(34)	(31)	(101)	(110)
Equity in income of unconsolidated subsidiaries and affiliates	7	9	20	25
Results from intersegment investments	0	0	0	0
Net income	$ 82	$ 92	$ 268	$ 297

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RECEIVABLES

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

RECEIVABLES

RECEIVABLES

Financing Receivables, net

A summary of financing receivables as of September 30, 2019 and December 31, 2018 is as follows:

	September 30, 2019		December 31, 2018
	(in millions)
Retail	$	9,002	$	9,350
Wholesale	9,382		9,749
Other	71		68
Total	$	18,455	$	19,167

Past due balances of financing receivables still accruing finance income represent the total balance held (principal plus accrued interest) with any payment amounts 30 days or more past the contractual payment due date. Non-performing financing receivables represent loans for which the Company has ceased accruing finance income. These receivables are generally 120 days delinquent. Finance income for non-performing receivables is recognized on a cash basis. Accrual of finance income is resumed when the receivable becomes contractually current and collections are reasonably assured.

The aging of financing receivables as of September 30, 2019 and December 31, 2018 is as follows (in millions):

	September 30, 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	$	24	$	6	$	—	$	30	$	6,210	$	6,240	$	9	$	6,249
Europe	—		—		—		—		146		146		—		146
South America	13		2		8		23		1,739		1,762		38		1,800
Rest of World	3		2		1		6		801		807		—		807
Total Retail	$	40	$	10	$	9	$	59	$	8,896	$	8,955	$	47	$	9,002
Wholesale
North America	$	4	$	—	$	—	$	4	$	3,669	$	3,673	$	3	$	3,676
Europe	14		13		32		59		4,207		4,266		—		4,266
South America	—		—		1		1		722		723		53		776
Rest of World	8		6		5		19		645		664		—		664
Total Wholesale	$	26	$	19	$	38	$	83	$	9,243	$	9,326	$	56	$	9,382

	December 31, 2018
	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	$	21	$	5	$	—	$	26	$	6,285	$	6,311	$	12	$	6,323
Europe	1		—		10		11		164		175		40		215
South America	11		9		7		27		1,885		1,912		83		1,995
Rest of World	2		1		—		3		814		817		—		817
Total Retail	$	35	$	15	$	17	$	67	$	9,148	$	9,215	$	135	$	9,350
Wholesale
North America	$	—	$	—	$	—	$	—	$	3,613	$	3,613	$	18	$	3,631
Europe	20		9		—		29		4,727		4,756		—		4,756
South America	—		—		—		—		656		656		—		656
Rest of World	7		3		—		10		696		706		—		706
Total Wholesale	$	27	$	12	$	—	$	39	$	9,692	$	9,731	$	18	$	9,749

Allowance for credit losses activity for the three and nine months ended September 30, 2019 and 2018 is as follows:

	Three Months Ended September 30, 2019
	Retail			Wholesale			Other		Total
Opening balance	$	319		$	158		$	—	$	477
Provision	11			2			—		13
Charge-offs, net of recoveries	(17		)	(2		)	—		(19		)
Foreign currency translation and other	(18		)	(3		)	—		(21		)
Ending balance	$	295		$	155		$	—	$	450

	Nine Months Ended September 30, 2019
	Retail			Wholesale			Other		Total
Opening Balance	$	326		$	164		$	—	$	490
Provision (benefit)	34			3			—		37
Charge-offs, net of recoveries	(44		)	(8		)	—		(52		)
Foreign Currency Translation and Other	(21		)	(4		)	—		(25		)
Ending Balance	295			155			—		450
Ending Balance: Individually Evaluated for Impairment	188			123			—		311
Ending Balance: Collectively Evaluated for Impairment	107			32			—		139
Receivables:
Ending Balance	9,002			9,382			71		18,455
Ending Balance: Individually Evaluated for Impairment	319			241			—		560
Ending Balance: Collectively Evaluated for Impairment	$	8,683		$	9,141		$	71	$	17,895

	Three Months Ended September 30, 2018
	Retail			Wholesale			Other		Total
Opening balance	$	349		$	193		$	—	$	542
Provision	13			(12		)	—		1
Charge-offs, net of recoveries	(20		)	(4		)	—		(24		)
Foreign currency translation and other	(6		)	(5		)	—		(11		)
Ending balance	$	336		$	172		$	—	$	508

	Nine Months Ended September 30, 2018
	Retail			Wholesale			Other		Total
Opening Balance	$	383		$	200		$	—	$	583
Provision (benefit)	38			(9		)	—		29
Charge-offs, net of recoveries	(60		)	(5		)	—		(65		)
Foreign Currency Translation and Other	(25		)	(14		)	—		(39		)
Ending Balance	336			172			—		508
Ending Balance: Individually Evaluated for Impairment	217			143			—		360
Ending Balance: Collectively Evaluated for Impairment	119			29			—		148
Receivables:
Ending Balance	9,152			9,140			74		18,366
Ending Balance: Individually Evaluated for Impairment	329			330			—		659
Ending Balance: Collectively Evaluated for Impairment	$	8,823		$	8,810		$	74	$	17,707

Allowance for credit losses activity for the year ended December 31, 2018 is as follows:

	December 31, 2018
	Retail			Wholesale			Other		Total
Opening Balance	$	383		$	200		$	—	$	583
Provision (benefit)	53			(5		)	—		48
Charge-offs, net of recoveries	(85		)	(15		)	—		(100		)
Foreign Currency Translation and Other	(25		)	(16		)	—		(41		)
Ending Balance	326			164			—		490
Ending Balance: Individually Evaluated for Impairment	204			135			—		339
Ending Balance: Collectively Evaluated for Impairment	122			29			—		151
Receivables:
Ending Balance	9,350			9,749			68		19,167
Ending Balance: Individually Evaluated for Impairment	359			314			—		673
Ending Balance: Collectively Evaluated for Impairment	$	8,991		$	9,435		$	68	$	18,494

Financing receivables are considered impaired when it is probable that the Company will be unable to collect all amounts due according to the contractual terms. Receivables reviewed for impairment generally include those that are either past due, have provided bankruptcy notification, or require significant collection efforts. Impaired receivables are generally classified as non-performing.

	September 30, 2019								December 31, 2018
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Investment		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Investment
	(in millions)
With an allowance recorded
Retail
North America	$	37	$	36	$	19	$	39	$	31	$	30	$	16	$	33
Europe	$	204	$	204	$	146	$	215	$	234	$	234	$	167	$	249
South America	$	76	$	76	$	21	$	83	$	91	$	91	$	20	$	88
Rest of World	$	2	$	2	$	2	$	3	$	3	$	3	$	1	$	4
Wholesale
North America	$	5	$	5	$	2	$	8	$	25	$	23	$	5	$	27
Europe	$	217	$	217	$	93	$	241	$	256	$	256	$	107	$	260
South America	$	15	$	8	$	16	$	16	$	23	$	14	$	16	$	26
Rest of World	$	4	$	3	$	12	$	7	$	10	$	10	$	7	$	9
Total
Retail	$	319	$	318	$	188	$	340	$	359	$	358	$	204	$	374
Wholesale	$	241	$	233	$	123	$	272	$	314	$	303	$	135	$	322

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 experiencing financial difficulties. As a collateral based lender, the Company typically will repossess collateral in lieu of restructuring receivables. As such, for retail receivables, concessions are typically provided based on bankruptcy court proceedings. For wholesale receivables, concessions granted may include extended contract maturities, inclusion of interest-only periods, modification of a contractual interest rate to a below market interest rate and waiving of interest and principal.

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

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

As of September 30, 2019, the Company had 284 retail and finance lease contracts classified as TDRs where a court in the North America region 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 undergoing bankruptcy proceedings where a concession has not yet been determined. As of September 30, 2018, the Company had 278 retail and finance lease contracts classified as TDRs where a court in the North America region has determined the concession. The pre-modification value of these contracts was $9 million and the post-modification value was $9 million. Additionally, the Company had 365 accounts with a balance of $17 million undergoing bankruptcy proceedings in North America 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, 2019 and 2018.

As of September 30, 2019, the Company had retail and finance lease receivable contracts classified as TDRs in Europe. The pre-modification value was $88 million and the post-modification value was $81 million. 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, 2019.

As of September 30, 2019 and 2018, the Company’s wholesale TDR agreements 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, 2019 and December 31, 2018, the carrying amount of such restricted assets included in financing receivables above are the following (in millions):

	Restricted Receivables
	September 30, 2019		December 31, 2018
Retail note and finance lease receivables	$	6,322	$	6,371
Wholesale receivables	6,480		7,052
Total	$	12,802	$	13,423

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EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

The Company’s basic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding during the period.

Diluted EPS reflects the potential dilution that could occur if dilutive securities were exercised into common stock. Stock options, restricted stock units and performance stock units are considered dilutive securities.

A reconciliation of basic and diluted earnings per share is as follows (in millions, except per share amounts):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Basic:
Net income attributable to CNH Industrial	$	637	$	222	$	1,308	$	814
Weighted average common shares outstanding—basic	1,351		1,355		1,353		1,358
Basic earnings per share	$	0.47	$	0.16	$	0.97	$	0.60
Diluted:
Net income attributable to CNH Industrial	$	637	$	222	$	1,308	$	814
Weighted average common shares outstanding—basic	1,351		1,355		1,353		1,358
Effect of dilutive securities (when dilutive):
Stock compensation plans (1)	1		3		2		4
Weighted average common shares outstanding—diluted	1,352		1,358		1,355		1,362
Diluted earnings per share	$	0.47	$	0.16	$	0.97	$	0.60

(1)

For the three and nine months ended September 30, 2019 and 2018, no shares were excluded from the computation of diluted earnings per share due to an anti-dilutive impact.

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OTHER LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2019

Other Liabilities Disclosure [Abstract]

Summary of Other Liabilities

A summary of Other liabilities as of September 30, 2019 and December 31, 2018 is as follows:

	September 30, 2019		December 31, 2018
	(in millions)
Repurchase price on buy-back agreements	$	1,556	$	1,870
Warranty and campaign programs	891		925
Marketing and sales incentive programs	1,282		1,329
Tax payables	617		685
Accrued expenses and deferred income	620		609
Accrued employee benefits	602		680
Lease liabilities	395		—
Legal reserves and other provisions	326		368
Contract reserve	289		262
Contract liabilities(1)	1,206		1,368
Restructuring reserve	99		71
Other	756		791
Total	$	8,639	$	8,958

(1)

Contract liabilities include $645 million and $773 million at September 30, 2019 and December 31, 2018, respectively, for future rents related to buy-back agreements.

Summary of Basic Warranty and Accruals for Campaign Programs

A summary of recorded activity for the three and nine months ended September 30, 2019 and 2018 for the basic warranty and accruals for campaign programs are as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)						(in millions)
Balance at beginning of period	$	941		$	927		$	925		$	932
Current year additions	162			166			566			603
Claims paid	(170		)	(162		)	(553		)	(532		)
Currency translation adjustment and other	(42		)	(14		)	(47		)	(86		)
Balance at September 30	$	891		$	917		$	891		$	917

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EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Summary of Basic and Diluted Earnings Per Share

A reconciliation of basic and diluted earnings per share is as follows (in millions, except per share amounts):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Basic:
Net income attributable to CNH Industrial	$	637	$	222	$	1,308	$	814
Weighted average common shares outstanding—basic	1,351		1,355		1,353		1,358
Basic earnings per share	$	0.47	$	0.16	$	0.97	$	0.60
Diluted:
Net income attributable to CNH Industrial	$	637	$	222	$	1,308	$	814
Weighted average common shares outstanding—basic	1,351		1,355		1,353		1,358
Effect of dilutive securities (when dilutive):
Stock compensation plans (1)	1		3		2		4
Weighted average common shares outstanding—diluted	1,352		1,358		1,355		1,362
Diluted earnings per share	$	0.47	$	0.16	$	0.97	$	0.60

(1)

For the three and nine months ended September 30, 2019 and 2018, no shares were excluded from the computation of diluted earnings per share due to an anti-dilutive impact.

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 3,384	$ 5,031
Restricted cash	781	772
Trade receivables, net	424	399
Financing receivables, net	18,455	19,167
Inventories, net	8,116	6,726
Property, plant and equipment, net	5,191	5,901
Investments in unconsolidated subsidiaries and affiliates	635	526
Equipment under operating leases	1,803
Equipment under operating leases		1,774
Goodwill	2,452	2,453
Other intangible assets, net	760	788
Deferred tax assets	1,054	591
Derivative assets	135	98
Other assets	2,321	1,874
Total Assets	45,511	46,100
LIABILITIES AND EQUITY
Debt	23,906	24,445
Trade payables	5,169	5,889
Deferred tax liabilities	131	114
Pension, postretirement and other postemployment benefits	1,374	1,488
Derivative liabilities	132	108
Other liabilities	8,639	8,958
Total Liabilities	39,351	41,002
Redeemable noncontrolling interest	34	30
Common shares, €0.01, par value; outstanding 1,351,332,628 common shares and 387,951,529 special voting shares at 9/30/2019; and outstanding 1,353,831,958 common shares and 388,725,624 special voting shares at 12/31/2018	25	25
Treasury stock, at cost; 13,067,568 common shares at 9/30/2019 and 10,568,238 common shares at 12/31/2018	(142)	(128)
Additional paid in capital	4,402	4,409
Retained earnings	3,694	2,596
Accumulated other comprehensive loss	(1,892)	(1,859)
Noncontrolling interests	39	25
Total Equity	6,126	5,068
Total Liabilities and Equity	$ 45,511	$ 46,100

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating activities:
Net income	$ 1,334	$ 841
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	494	538
Depreciation and amortization expense of assets under operating leases and assets sold under buy-back commitments	419	478
Loss on disposal of assets	3	0
Undistributed income (loss) of unconsolidated subsidiaries	5	(4)
Other non-cash items	150	109
Changes in operating assets and liabilities:
Provisions	(144)	(85)
Deferred income taxes	(445)	7
Trade and financing receivables related to sales, net	55	448
Inventories, net	(1,058)	(848)
Trade payables	(501)	(35)
Other assets and liabilities	(456)	(253)
Net cash provided by (used in) operating activities	(144)	1,196
Investing activities:
Additions to retail receivables	(3,027)	(3,040)
Collections of retail receivables	3,218	3,029
Proceeds from the sale of assets, net of assets under operating leases and assets sold under buy-back commitments	10	3
Expenditures for property, plant and equipment and intangible assets, net of assets under operating leases and assets sold under buy-back commitments	(325)	(293)
Expenditures for assets under operating leases and assets sold under buy-back commitments	(944)	(959)
Other	41	265
Net cash used in investing activities	(1,027)	(995)
Financing activities:
Proceeds from long-term debt	9,986	11,298
Payments of long-term debt	(10,190)	(12,439)
Net increase in other financial liabilities	235	219
Dividends paid	(280)	(240)
Other	(45)	(156)
Net cash used in financing activities	(294)	(1,318)
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash	(173)	(262)
Decrease in cash and cash equivalents and restricted cash	(1,638)	(1,379)
Cash and cash equivalents and restricted cash, beginning of year	5,803	6,200
Cash and cash equivalents and restricted cash, end of period	$ 4,165	$ 4,821

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INVENTORIES (Tables)

9 Months Ended

Sep. 30, 2019

Inventory Disclosure [Abstract]

Summary of Inventories

Inventories as of September 30, 2019 and December 31, 2018 consist of the following:

	September 30, 2019		December 31, 2018
	(in millions)
Raw materials	$	1,493	$	1,293
Work-in-process	776		576
Finished goods	5,847		4,857
Total inventories	$	8,116	$	6,726

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Sep. 30, 2019

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, the Company’s share of other comprehensive income (loss) of entities accounted for using the equity method, and reclassifications for amounts included in net income (loss) less net income (loss) and other comprehensive income (loss) attributable to the noncontrolling interest. For more information on derivative instruments, see “Note 16: Financial Instruments”. For more information on pensions and retirement benefit obligations, see “Note 6: Employee Benefit Plans and Postretirement Benefits”. The Company’s other comprehensive income (loss) amounts are aggregated within accumulated other comprehensive income (loss). The tax effect for each component of other comprehensive income (loss) consisted of the following (in millions):

	Three Months Ended September 30, 2019
	Gross Amount			Income Taxes		Net Amount
Unrealized gain (loss) on cash flow hedges	$	(28	)	$	6	$	(22	)
Changes in retirement plans’ funded status	(15		)	6		(9		)
Foreign currency translation	31			—		31
Share of other comprehensive (loss) of entities using the    equity method	(14		)	—		(14		)
Other comprehensive income (loss)	$	(26	)	$	12	$	(14	)

	Nine Months Ended September 30, 2019
	Gross Amount			Income Taxes		Net Amount
Unrealized gain (loss) on cash flow hedges	$	(50	)	$	11	$	(39	)
Changes in retirement plans’ funded status	(37		)	14		(23		)
Foreign currency translation	109			—		109
Share of other comprehensive loss of entities using the equity method	(17		)	—		(17		)
Other comprehensive income (loss)	$	5		$	25	$	30

	Three Months Ended September 30, 2018
	Gross Amount			Income Taxes			Net Amount
Unrealized gain (loss) on cash flow hedges	$	16		$	(1	)	$	15
Changes in retirement plans’ funded status	(14		)	8			(6		)
Foreign currency translation	(38		)	—			(38		)
Share of other comprehensive income of entities using the    equity method	(18		)	—			(18		)
Other comprehensive income (loss)	$	(54	)	$	7		$	(47	)

	Nine Months Ended September 30, 2018
	Gross Amount			Income Taxes			Net Amount
Unrealized gain (loss) on cash flow hedges	$	8		$	2		$	10
Changes in retirement plans’ funded status	585			(135		)	450
Foreign currency translation	(373		)	—			(373		)
Share of other comprehensive income of entities using the equity method	(36		)	—			(36		)
Other comprehensive income (loss)	$	184		$	(133	)	$	51

The changes, net of tax, in each component of accumulated other comprehensive income (loss) consisted of the following (in millions):

	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, 2018	$	1		$	(950	)	$	(899	)	$	(118	)	$	(1,966	)
Other comprehensive income (loss), before reclassifications	38			438			(373		)	(29		)	74
Amounts reclassified from other comprehensive income	(28		)	12			—			—			(16		)
Other comprehensive income (loss) *	10			450			(373		)	(29		)	58
Balance, Balance, September 30, 2018	$	11		$	(500	)	$	(1,272	)	$	(147	)	$	(1,908	)
Balance, January 1, 2019	$	(22	)	$	(473	)	$	(1,216	)	$	(148	)	$	(1,859	)
Other comprehensive income (loss), before reclassifications	(93		)	30			111			(17		)	31
Amounts reclassified from other comprehensive income (loss)	54			(53		)	—			—			1
Other comprehensive income (loss) *	(39		)	(23		)	111			(17		)	32
Reclassification of certain tax effects	—			(65		)	—			—			(65		)
Balance, September 30, 2019	$	(61	)	$	(561	)	$	(1,105	)	$	(165	)	$	(1,892	)

(*) Excluded from the table above is other comprehensive income (loss) allocated to noncontrolling interests of $(2) million and $(7) million for the nine months ended September 30, 2019 and 2018, respectively.

Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three and nine months ended September 30, 2019 and 2018 consisted of the following:

	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,
	2019			2018			2019			2018
	(in millions)						(in millions)
Cash flow hedges	$	(2	)	$	2		$	2		$	1		Net sales
	17			6			46			(14		)	Cost of goods sold
	3			(10		)	10			(24		)	Other, net
	3			2			6			4			Interest expense
	(4		)	1			(10		)	5			Income taxes
	$	17		$	1		$	54		$	(28	)
Change in retirement plans’ funded status:
Amortization of actuarial losses	$	18		$	20		$	52		$	62		*
Amortization of prior service cost	(32		)	(30		)	(91		)	(52		)	*
	(4		)	(3		)	(14		)	2			Income taxes
	$	(18	)	$	(13	)	$	(53	)	$	12
Total reclassifications, net of tax	$	(1	)	$	(12	)	$	1		$	(16	)

(*) 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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GOODWILL AND OTHER INTANGIBLES

9 Months Ended

Sep. 30, 2019

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, 2019 are as follows:

	Agriculture		Construction		Commercial and Specialty Vehicles			Powertrain		Financial Services			Total
	(in millions)
Balance at Balance at January 1, 2019	$	1,646	$	587	$	62		$	5	$	153		$	2,453
Foreign currency translation and other	4		—		(4		)	—		(1		)	(1		)
Balance at Balance at September 30, 2019	$	1,650	$	587	$	58		$	5	$	152		$	2,452

As of September 30, 2019 and December 31, 2018, the Company’s other intangible assets and related accumulated amortization consisted of the following:

		September 30, 2019						December 31, 2018
	Weighted Avg. Life	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
		(in millions)
Other intangible assets subject to    amortization:
Dealer networks	15	$	318	$	217	$	101	$	320	$	207	$	113
Patents, concessions and licenses and other	5-25	1,889		1,503		386		1,879		1,477		402
		2,207		1,720		487		2,199		1,684		515
Other intangible assets not subject to    amortization:
Trademarks		273		—		273		273		—		273
Total Other intangible assets		$	2,480	$	1,720	$	760	$	2,472	$	1,684	$	788

CNH Industrial recorded amortization expense of $28 million and $27 million for the three months ended September 30, 2019 and 2018, respectively, and $82 million and $87 million for the nine months ended September 30, 2019 and 2018, respectively.

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NEW ACCOUNTING PRONOUNCEMENTS (Policies)

9 Months Ended

Sep. 30, 2019

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, 2018. 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. Actual results could differ materially from those estimates.

Certain financial information in this report has been presented by geographic area. Starting from the first quarter of 2019, the composition of CNH Industrial's regions has been revised as follows: (1) North America; (2) Europe; (3) South America and (4) Rest of World. The geographic designations have the following meanings:

• North America (formerly NAFTA): United States, Canada and Mexico;

• Europe: member countries of the European Union, European Free Trade Association, Ukraine, and Balkans, formerly included in EMEA;

• South America (formerly LATAM): 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), formerly included in APAC, and African continent and Middle East, formerly included in EMEA.

Derivatives and Hedging

In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”), which amends ASC 815, Derivatives and Hedging. The purpose of this ASU is to better align a company’s risk management activities and financial reporting for hedging relationships, simplify the hedge accounting requirements and improve the disclosures of hedging arrangements. Among other provisions, the new standard (1) requires an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported, (2) eliminates the separate measurement and reporting of hedge ineffectiveness and (3) permits an entity to recognize in earnings the initial value of an excluded component under a systematic and rational method over the life of the derivative instrument. The Company adopted ASU 2017-12 on January 1, 2019. The adoption did not have a material impact on our results of operations, financial position and cash flows.

Leases

A lease is a contract that conveys the right to control the use of an identified asset (the leased asset) for a period of time in exchange for consideration. The lease term determined by the Company comprises the non-cancellable period of lease contract together with both periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option. For lease agreements, we combine lease and non-lease components.

For leases with terms not exceeding twelve months (short-term leases), the Company recognizes the lease payments associated with those leases on a straight-line basis over the lease term as operating expense in the income statement.

For all other leases, the right-of-use asset includes the amount of lease liability recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Correspondingly, the Company recognizes a lease liability, measured at the present value of lease payments to be made over the lease term. In calculating the present value of lease payments, the Company uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable.

For finance leases, the right-of-use asset is classified within Property, plant and equipment, net and the lease liability, within Debt. Assets held under finance leases, which the Company assumes substantially all the risks and rewards of ownership, are recognized as assets of the Company at the lower of fair value or present value of the minimum lease payments.

In case of operating leases, the right-of-use asset is classified within Other assets and the lease liability, within Other liabilities. After the commencement date, the Company recognizes in profit or loss a single lease cost, calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis. In particular, after lease commencement, the lease liability is measured at the present value of any remaining lease payments, discounted by using the rate determined at lease commencement, consistently with the model used to calculate the liability related to the finance lease. Correspondingly, the right-of-use asset is measured as the lease liability adjusted by accrued or prepaid rents (i.e., the aggregate difference between the cash payment and straight-line lease cost), remaining unamortized initial direct costs and lease incentives, and any impairments of the right-of-use asset.

Comprehensive Income

In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”), which amends ASC 220, Income Statement - Reporting Comprehensive Income. In December 2017, the U.S. government enacted new tax legislation (“U.S. Tax Reform”). Included in the provisions of U.S. Tax Reform was a reduction of the corporate income tax rate from 35 percent to 21 percent. U.S. GAAP requires that the remeasurement of deferred taxes to the new corporate tax rate occur in the period in which the legislation is enacted with the deferred tax adjustment being recorded in the provision for income taxes, including items for which the tax effects were originally recorded in Other Comprehensive Income (“OCI”). This treatment results in the items in OCI reflecting a disproportionate tax rate, a result often referred to as stranded tax effects. This ASU allows a reclassification from accumulated OCI to retained earnings for stranded tax effects resulting from U.S. Tax Reform. ASU 2018-02 is effective for annual reporting periods beginning after December 15, 2018 including interim periods within those fiscal years.

Changes in Stockholders' Equity and Noncontrolling Interest

In August 2018, the SEC adopted a final rule that amends certain disclosure requirements that have become duplicative, overlapping, or outdated in light of other SEC disclosure requirements, U.S. GAAP, or changes in the information environment. However, the guidance also added requirements for registrants to include in their interim financial statements a reconciliation of changes in stockholders’ equity for each period for which an income statement is required (both year-to-date and quarterly periods). The Company adopted the new interim disclosure requirement in its U.S. GAAP quarterly report for the three months ended March 31, 2019, which had no material impact to the Statement of Changes in Equity.

New Accounting Policies Not Yet Adopted

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which establishes ASC 326, Financial Instruments - Credit Losses. In November 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses (“ASU 2018-19”), which supersedes existing Measurement of Credit Losses on Financial Instruments (“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 are also required. ASU 2018-19 is effective for annual periods beginning after December 15, 2019. The Company has established a cross functional implementation team. The team is validating and testing the models and procedures that will be used to calculate the allowance for credit losses and has started to design related processes and controls.

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 effective date is the first quarter of fiscal year 2021, with early adoption permitted for the removed disclosures and delayed adoption until fiscal year 2021 permitted for the new disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

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. ASU 2018-15 may be applied prospectively from the date the guidance is first applied or retrospectively.

ASU 2018-15 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted. The Company expects to adopt the ASU on a prospective basis. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

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. ASU 2018-17 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted in any interim period. ASU 2018-17 is required to be applied retrospectively from the date the guidance is first applied. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements.

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. ASU 2018-14 is effective for annual periods beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact of adoption of this ASU on its related disclosures.

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VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Variable Interest Entity [Line Items]
Restricted cash	$ 781	$ 772
Financing receivables, net	18,455	19,167	$ 18,366
Total Assets	45,511	46,100
Debt	23,906	24,445
Total Liabilities	39,351	41,002
Variable interest entities
Variable Interest Entity [Line Items]
Restricted cash	630	732
Financing receivables, net	9,040	9,732
Total Assets	9,670	10,464
Debt	8,858	9,692
Total Liabilities	$ 8,858	$ 9,692

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Summary of Tax Effects on Components of Other Comprehensive Income (Loss)

The tax effect for each component of other comprehensive income (loss) consisted of the following (in millions):

	Three Months Ended September 30, 2019
	Gross Amount			Income Taxes		Net Amount
Unrealized gain (loss) on cash flow hedges	$	(28	)	$	6	$	(22	)
Changes in retirement plans’ funded status	(15		)	6		(9		)
Foreign currency translation	31			—		31
Share of other comprehensive (loss) of entities using the    equity method	(14		)	—		(14		)
Other comprehensive income (loss)	$	(26	)	$	12	$	(14	)

	Nine Months Ended September 30, 2019
	Gross Amount			Income Taxes		Net Amount
Unrealized gain (loss) on cash flow hedges	$	(50	)	$	11	$	(39	)
Changes in retirement plans’ funded status	(37		)	14		(23		)
Foreign currency translation	109			—		109
Share of other comprehensive loss of entities using the equity method	(17		)	—		(17		)
Other comprehensive income (loss)	$	5		$	25	$	30

	Three Months Ended September 30, 2018
	Gross Amount			Income Taxes			Net Amount
Unrealized gain (loss) on cash flow hedges	$	16		$	(1	)	$	15
Changes in retirement plans’ funded status	(14		)	8			(6		)
Foreign currency translation	(38		)	—			(38		)
Share of other comprehensive income of entities using the    equity method	(18		)	—			(18		)
Other comprehensive income (loss)	$	(54	)	$	7		$	(47	)

	Nine Months Ended September 30, 2018
	Gross Amount			Income Taxes			Net Amount
Unrealized gain (loss) on cash flow hedges	$	8		$	2		$	10
Changes in retirement plans’ funded status	585			(135		)	450
Foreign currency translation	(373		)	—			(373		)
Share of other comprehensive income of entities using the equity method	(36		)	—			(36		)
Other comprehensive income (loss)	$	184		$	(133	)	$	51

Summary of Changes in Other Comprehensive Income (Loss)

The changes, net of tax, in each component of accumulated other comprehensive income (loss) consisted of the following (in millions):

	Unrealized 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, 2018	$	1		$	(950	)	$	(899	)	$	(118	)	$	(1,966	)
Other comprehensive income (loss), before reclassifications	38			438			(373		)	(29		)	74
Amounts reclassified from other comprehensive income	(28		)	12			—			—			(16		)
Other comprehensive income (loss) *	10			450			(373		)	(29		)	58
Balance, Balance, September 30, 2018	$	11		$	(500	)	$	(1,272	)	$	(147	)	$	(1,908	)
Balance, January 1, 2019	$	(22	)	$	(473	)	$	(1,216	)	$	(148	)	$	(1,859	)
Other comprehensive income (loss), before reclassifications	(93		)	30			111			(17		)	31
Amounts reclassified from other comprehensive income (loss)	54			(53		)	—			—			1
Other comprehensive income (loss) *	(39		)	(23		)	111			(17		)	32
Reclassification of certain tax effects	—			(65		)	—			—			(65		)
Balance, September 30, 2019	$	(61	)	$	(561	)	$	(1,105	)	$	(165	)	$	(1,892	)

(*)

Excluded from the table above is other comprehensive income (loss) allocated to noncontrolling interests of $(2) million and $(7) million for the nine months ended September 30, 2019 and 2018, respectively.

Summary of Reclassification of Accumulated Other Comprehensive Income (Loss)

The following table summarizes the gross impact of changes in the fair value of derivatives designated as cash flow hedges on accumulated other comprehensive income (loss) and net income during the three months and nine months ended September 30, 2019 and 2018 (in millions):

				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
2019
Foreign exchange contracts	$	(42	)
				Net sales	2
				Cost of goods sold	(17		)
				Other, Net	(3		)
Interest rate contracts	(6		)	Interest expense	(3		)
Total	$	(48	)		$	(21	)
2018
Foreign currency contracts	$	20
				Net sales	(2		)
				Cost of goods sold	(6		)
				Other, Net	10
Interest rate contracts	(4		)	Interest expense	(2		)
Total	$	16			$	—

				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
2019
Foreign exchange contracts	(87		)
				Net sales	(2		)
				Cost of goods sold	(46		)
				Other, Net	(10		)
Interest rate contracts	(26		)	Interest expense	(6		)
Total	(113		)		$	(64	)
2018
Foreign currency contracts	31
				Net sales	(1		)
				Cost of goods sold	14
				Other, Net	24
Interest rate contracts	9			Interest expense	(4		)
Total	$	40			$	33

Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three and nine months ended September 30, 2019 and 2018 consisted of the following:

	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,
	2019			2018			2019			2018
	(in millions)						(in millions)
Cash flow hedges	$	(2	)	$	2		$	2		$	1		Net sales
	17			6			46			(14		)	Cost of goods sold
	3			(10		)	10			(24		)	Other, net
	3			2			6			4			Interest expense
	(4		)	1			(10		)	5			Income taxes
	$	17		$	1		$	54		$	(28	)
Change in retirement plans’ funded status:
Amortization of actuarial losses	$	18		$	20		$	52		$	62		*
Amortization of prior service cost	(32		)	(30		)	(91		)	(52		)	*
	(4		)	(3		)	(14		)	2			Income taxes
	$	(18	)	$	(13	)	$	(53	)	$	12
Total reclassifications, net of tax	$	(1	)	$	(12	)	$	1		$	(16	)

(*) 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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REVENUE - Summary of Net Revenues (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Net sales	$ 5,892	$ 6,245	$ 18,966	$ 20,124
Total Revenues	6,360	6,686	20,384	21,504
Eliminations
Disaggregation of Revenue [Line Items]
Total Revenues	(19)	(28)	(62)	(89)
Industrial Activities
Disaggregation of Revenue [Line Items]
Net sales	5,892	6,245	18,966	20,124
Total Revenues	5,915	6,268	19,042	20,197
Industrial Activities | Operating segments
Disaggregation of Revenue [Line Items]
Total Revenues	5,892	6,245	18,966	20,124
Industrial Activities | Operating segments | Agriculture
Disaggregation of Revenue [Line Items]
Net sales	2,446	2,636	8,031	8,527
Industrial Activities | Operating segments | Construction
Disaggregation of Revenue [Line Items]
Net sales	664	726	2,061	2,207
Industrial Activities | Operating segments | Commercial and Specialty Vehicles
Disaggregation of Revenue [Line Items]
Net sales	2,331	2,404	7,443	7,788
Industrial Activities | Operating segments | Powertrain
Disaggregation of Revenue [Line Items]
Net sales	940	972	3,109	3,376
Industrial Activities | Eliminations
Disaggregation of Revenue [Line Items]
Net sales	(489)	(493)	(1,678)	(1,774)
Financial Services
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Total Revenues	487	469	1,480	1,469
Financial Services | Operating segments
Disaggregation of Revenue [Line Items]
Total Revenues	487	469	1,480	1,469
Financial Services | Eliminations
Disaggregation of Revenue [Line Items]
Total Revenues	$ (19)	$ (28)	$ (62)	$ (89)

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INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES - Summary of Investments in Unconsolidated Subsidiaries and Affiliates (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Equity method	$ 501	$ 523
Cost method	134	3
Total	$ 635	$ 526

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INVENTORIES (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 1,493	$ 1,293
Work-in-process	776	576
Finished goods	5,847	4,857
Total inventories	$ 8,116	$ 6,726