Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of sources of income before taxes in equity in income of unconsolidated subsidiaries and affiliates

The sources of income before taxes and equity in income of unconsolidated subsidiaries and affiliates for the years ended December 31, 2019, 2018, and 2017 are as follows:

	2019			2018			2017
	(in millions)
Parent country source	$	(3	)	$	(6	)	$	(211	)
Foreign sources	1,173			1,472			870
Income (loss) before taxes and equity in income of unconsolidated subsidiaries and affiliates	$	1,170		$	1,466		$	659

Schedule of income tax provision

The provision for income taxes for the years ended December 31, 2019, 2018 and 2017 consisted of the following:

	2019			2018		2017
	(in millions)
Current income taxes	$	203		$	353	$	354
Deferred income taxes	(474		)	64		103
Total income tax provision (benefit)	$	(271	)	$	417	$	457

Schedule of reconciliation of income tax expense

A reconciliation of CNH Industrial’s income tax expense for the years ended December 31, 2019, 2018 and 2017 is as follows:

	2019			2018			2017
	(in millions)
Tax provision at the parent statutory rate	$	222		$	278		$	127
Foreign income taxed at different rates	79			102			94
Change in valuation allowance	(502		)	31			166
Italian IRAP taxes	14			21			17
Tax contingencies	7			29			18
Tax credits and incentives	(88		)	(66		)	(48		)
Venezuela remeasurement, and impairment and deconsolidation charges	—			—			18
Change in tax rate or law	(5		)	(8		)	46
Withholding taxes	2			7			6
Other	—			23			13
Total income tax provision (benefit)	$	(271	)	$	417		$	457

Schedule of components of net deferred tax assets

The components of net deferred tax assets as of December 31, 2019 and 2018 are as follows:

	2019			2018
	(in millions)
Deferred tax assets:
Inventories	$	66		$	104
Warranty and campaigns	170			192
Allowance for credit losses	155			163
Marketing and sales incentive programs	285			268
Other risk and future charges reserve	265			273
Pension, postretirement and postemployment benefits	253			237
Leasing liabilities	114			—
Research and development costs	311			420
Other reserves	347			393
Tax credits and loss carry forwards	677			616
Less: Valuation allowances	(993		)	(1,626		)
Total deferred tax assets	$	1,650		$	1,040
Deferred tax liabilities:
Property, plant and equipment	$	523		$	357
Other	165			206
Total deferred tax liabilities	688			563
Net deferred tax assets	$	962		$	477

Net deferred tax assets are reflected in the accompanying consolidated balance sheets as of December 31, 2019 and 2018 as follows:

	2019			2018
	(in millions)
Deferred tax assets	$	1,134		$	591
Deferred tax liabilities	(172		)	(114		)
Net deferred tax assets	$	962		$	477

Schedule of reconciliation of the gross amounts of tax contingencies

A reconciliation of the gross amounts of tax contingencies at the beginning and end of the year is as follows:

	2019			2018
	(in millions)
Balance, beginning of year	$	268		$	320
Additions based on tax positions related to the current year	26			22
Additions for tax positions of prior years	32			46
Reductions for tax positions of prior years	(32		)	(60		)
Reductions for tax positions as a result of lapse of statute	(14		)	(24		)
Settlements	(25		)	(36		)
Balance, end of year	$	255		$	268