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Employee Benefit Plans and Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Schedule of defined benefit pension, healthcare and other postemployment plans
The following summarizes data from CNH Industrial’s defined benefit pension, healthcare and other postemployment plans for the years ended December 31, 2019 and 2018:
 
 
Pension
 
Healthcare (1)
 
Other (1)
 
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
 
(in millions)
Change in benefit obligations:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning benefit obligation
 
$
3,029

 
$
3,365

 
$
434

 
$
1,120

 
$
422

 
$
470

Service cost
 
23

 
25

 
5

 
6

 
13

 
15

Interest cost
 
74

 
71

 
14

 
24

 
3

 
3

Plan participants’ contributions
 
3

 
3

 
10

 
9

 
—

 
—

Actuarial loss (gain)
 
377

 
(140
)
 
45

 
(129
)
 
37

 
(8
)
Gross benefits paid
 
(156
)
 
(207
)
 
(42
)
 
(63
)
 
(37
)
 
(37
)
Plan amendments
 
(2
)
 
22

 
(47
)
 
(530
)
 
—

 
—

Currency translation adjustments and other (2)
 
(410
)
 
(110
)
 
(7
)
 
(3
)
 
(7
)
 
(21
)
Ending benefit obligation
 
$
2,938

 
$
3,029

 
$
412

 
$
434

 
$
431

 
$
422

Change in the fair value of plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning plan assets
 
2,281

 
2,517

 
141

 
184

 
—

 
—

Actual return on plan assets
 
305

 
(46
)
 
27

 
(6
)
 
—

 
—

Employer contributions
 
53

 
55

 
—

 
—

 
—

 
—

Plan participants’ contributions
 
3

 
3

 
—

 
—

 
—

 
—

Gross benefits paid
 
(130
)
 
(179
)
 
(16
)
 
(37
)
 
—

 
—

Currency translation adjustments and other (2)
 
(416
)
 
(69
)
 
—

 
—

 
—

 
—

Ending plan assets
 
2,096

 
2,281

 
152

 
141

 
—

 
—

Funded status:
 
$
(842
)
 
$
(748
)
 
$
(260
)
 
$
(293
)
 
$
(431
)
 
$
(422
)
(1)
The healthcare and other postemployment plans are not required to be prefunded.
(2)
Includes the impact of the transfer of the outstanding pension benefit obligations related to certain retirees and beneficiaries within the U.S. plans through a group annuity contract purchase in November 2019.
Schedule of defined benefit pension plans by significant geographical area
The following summarizes data from CNH Industrial’s defined benefit pension plans by significant geographical area for the years ended December 31, 2019 and 2018:
 
 
U.S.
 
U.K
 
Germany (1)
 
Other Countries (1)
 
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
 
(in millions)
Change in benefit obligations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning benefit obligation
 
$
1,015

 
$
1,173

 
$
1,290

 
$
1,409

 
$
409

 
$
453

 
$
315

 
$
330

Service cost
 
3

 
4

 
4

 
4

 
3

 
4

 
13

 
13

Interest cost
 
36

 
35

 
30

 
29

 
4

 
4

 
4

 
3

Plan participants’ contributions
 
—

 
—

 
—

 
—

 
—

 
—

 
3

 
3

Actuarial loss (gain)
 
132

 
(85
)
 
166

 
(39
)
 
39

 
(4
)
 
40

 
(10
)
Gross benefits paid
 
(70
)
 
(112
)
 
(47
)
 
(56
)
 
(25
)
 
(28
)
 
(14
)
 
(11
)
Plan amendments
 
—

 
—

 
—

 
21

 
—

 
—

 
(2
)
 
—

Currency translation adjustments and other (2)
 
(450
)
 
—

 
45

 
(78
)
 
(6
)
 
(20
)
 
1

 
(13
)
Ending benefit obligation
 
$
666

 
$
1,015

 
$
1,488

 
$
1,290

 
$
424

 
$
409

 
$
360

 
$
315

Change in the fair value of plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning plan assets
 
1,030

 
1,207

 
951

 
1,005

 
5

 
5

 
295

 
300

Actual return on plan assets
 
190

 
(65
)
 
88

 
14

 
—

 
—

 
27

 
3

Employer contributions
 
—

 
—

 
42

 
44

 
—

 
—

 
11

 
11

Plan participants’ contributions
 
—

 
—

 
—

 
—

 
—

 
—

 
3

 
3

Gross benefits paid
 
(69
)
 
(112
)
 
(47
)
 
(56
)
 
—

 
—

 
(14
)
 
(11
)
Currency translation adjustments and other (2)
 
(451
)
 
—

 
33

 
(56
)
 
—

 
—

 
2

 
(11
)
Ending plan assets
 
$
700

 
$
1,030

 
$
1,067

 
$
951

 
$
5

 
$
5

 
$
324

 
$
295

Funded status:
 
$
34

 
$
15

 
$
(421
)
 
$
(339
)
 
$
(419
)
 
$
(404
)
 
$
(36
)
 
$
(20
)
(1)
Pension benefits in Germany and some other countries are not required to be prefunded.
(2)
Includes the impact of the transfer of the outstanding pension benefit obligations related to certain retirees and beneficiaries within the U.S. plans through a group annuity contract purchase in November 2019.

Schedule of net amounts recognized in consolidated balance sheets
Net amounts recognized in the consolidated balance sheets as of December 31, 2019 and 2018 consist of:
 
 
Pension
 
Healthcare
 
Other
 
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
 
(in millions)
Other assets
 
$
45

 
$
25

 
$
—

 
$
—

 
$
—

 
$
—

Pension, postretirement and other postemployment benefits
 
(887
)
 
(773
)
 
(260
)
 
(293
)
 
(431
)
 
(422
)
Net liability recognized at end of year
 
$
(842
)
 
$
(748
)
 
$
(260
)
 
$
(293
)
 
$
(431
)
 
$
(422
)
Schedule of pre-tax amounts recognized in accumulated other comprehensive loss
Pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 2019 consist of:
 
 
Pension
 
Healthcare
 
Other
 
 
(in millions)
 
 
Unrecognized actuarial losses
 
$
859

 
$
50

 
$
103

Unrecognized prior service credit
 
1

 
(374
)
 
(5
)
Accumulated other comprehensive loss
 
$
860

 
$
(324
)
 
$
98
Schedule of aggregate pension accumulated benefit obligation
The following table summarizes the aggregate pension accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets:
 
 
Pension
 
 
2019
 
2018
 
 
(in millions)
Accumulated benefit obligation
 
$
2,108

 
$
1,753

Fair value of plan assets
 
$
1,240

 
$
991
Schedule of projected benefit obligations in excess of plan assets
The following table summarizes CNH Industrial’s pension and other postemployment plans with projected benefit obligations in excess of plan assets:
 
 
Pension
 
Healthcare
 
Other
 
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
 
(in millions)
Projected benefit obligation
 
$
2,219

 
$
1,951

 
$
412

 
$
434

 
$
431

 
$
422

Fair value of plan assets
 
$
1,332

 
$
1,178

 
$
152

 
$
141

 
$
—

 
$
—
Schedule of net periodic benefit cost
The following summarizes the components of net periodic benefit cost of CNH Industrial’s defined benefit for the years ended December 31, 2019, 2018, and 2017:
 
 
Pension
 
Healthcare
 
Other
 
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
 
(in millions)
Service cost
 
$
23

 
$
25

 
$
30

 
$
5

 
$
6

 
$
6

 
$
13

 
$
15

 
$
15

Interest cost
 
74

 
71

 
74

 
14

 
24

 
36

 
3

 
3

 
3

Expected return on assets
 
(99
)
 
(112
)
 
(111
)
 
(7
)
 
(7
)
 
(7
)
 
—

 
—

 
—

Amortization of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior service cost (credit)
 
1

 
(1
)
 
(1
)
 
(125
)
 
(82
)
 
(2
)
 
1

 
1

 
1

Actuarial loss (gain)
 
67

 
74

 
90

 
(2
)
 
7

 
6

 
14

 
4

 
5

Settlement loss and other
 
125

 
1

 
4

 
—

 
—

 
—

 
2

 
1

 
2

Net periodic benefit cost
 
$
191

 
$
58

 
$
86

 
$
(115
)
 
$
(52
)
 
$
39

 
$
33

 
$
24

 
$
26
Schedule of net periodic benefit cost recognized in net income and other changes in plan assets and benefit obligations
Net periodic benefit cost recognized in net income and other changes in plan assets and benefit obligations that are recognized in other comprehensive loss during 2019 consist of:
 
 
Pension
 
Healthcare
 
Other
 
 
(in millions)
Net periodic benefit cost
 
$
191

 
$
(115
)
 
$
33

Benefit adjustments included in other comprehensive (income) loss:
 
 
 
 
 
 
Net actuarial losses (gains)
 
55

 
25

 
35

Amortization of actuarial losses
 
(67
)
 
2

 
(14
)
Amortization of prior service (cost) credit
 
(2
)
 
125

 
(1
)
Currency translation adjustments and other
 
13

 
(55
)
 
—

Total recognized in other comprehensive (income) loss
 
(1
)
 
97

 
20

Total recognized in comprehensive loss
 
$
190

 
$
(18
)
 
$
53
Schedule of pre-tax amounts expected to be amortized from accumulated other comprehensive income (loss)
Pre-tax amounts expected to be amortized in 2020 from accumulated other comprehensive loss consist of:
 
 
Pension
 
Healthcare
 
Other
 
 
(in millions)
Actuarial losses
 
$
41

 
$
3

 
$
1

Prior service cost (credit)
 
—

 
(131
)
 
—

Total
 
$
41

 
$
(128
)
 
$
1
Schedule of assumptions utilized in determining the funded status and the net periodic benefit cost
The following assumptions were utilized in determining the funded status at December 31, 2019 and 2018, and the net periodic benefit cost of CNH Industrial’s defined benefit plans for the years ended December 31, 2019, 2018, and 2017:
 
 
Pension plans
 
Healthcare plans
 
Other
(in %)
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Assumptions used to determine funded status at December 31
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average discount rate
 
1.88
 
2.91
 
2.57
 
2.99
 
4.12
 
3.53
 
0.69
 
1.62
 
1.47
Weighted-average rate of compensation increase
 
2.99
 
3.00
 
3.01
 
n/a
 
n/a
 
n/a
 
1.91
 
1.41
 
1.11
Weighted-average, initial healthcare cost trend rate
 
n/a
 
n/a
 
n/a
 
4.68
 
6.17
 
6.46
 
n/a
 
n/a
 
n/a
Weighted-average, ultimate healthcare cost trend rate(*)
 
n/a
 
n/a
 
n/a
 
4.20
 
5.00
 
5.00
 
n/a
 
n/a
 
n/a
Assumptions used to determine expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average discount rates - service cost
 
1.97
 
1.79
 
2.15
 
4.03
 
3.58
 
3.96
 
1.76
 
1.64
 
1.67
Weighted-average discount rates - interest cost
 
2.58
 
2.20
 
2.33
 
3.53
 
3.19
 
3.39
 
1.50
 
1.34
 
1.40
Weighted-average rate of compensation increase
 
3.00
 
3.01
 
2.95
 
n/a
 
n/a
 
n/a
 
1.41
 
1.11
 
1.19
Weighted-average long-term rates of return on plan assets
 
4.68
 
4.58
 
4.74
 
5.50
 
4.50
 
6.25
 
n/a
 
n/a
 
n/a
Weighted-average, initial healthcare cost trend rate
 
n/a
 
n/a
 
n/a
 
6.17
 
6.46
 
6.72
 
n/a
 
n/a
 
n/a
Weighted-average, ultimate healthcare cost trend rate(*)
 
n/a
 
n/a
 
n/a
 
5.00
 
5.00
 
5.00
 
n/a
 
n/a
 
n/a
 
(*)
CNH Industrial expects to achieve the ultimate healthcare cost trend rate in 2025 for U.S. plans. A flat trend rate assumption is utilized for the Canada plans.
Schedule of effect of one percentage point change in the assumed healthcare cost trend rates
A one percentage point change in the assumed healthcare cost trend rates would have the following effect:
 
 
 
One Percentage-
Point Increase
 
One Percentage-
Point Decrease
 
 
(in millions)
 
 
Total increase/(decrease) in service cost and interest cost components of 2019 Healthcare Plan benefit expense
 
$
2

 
$
(1
)
Total increase/(decrease) in accumulated Healthcare benefit obligations as of December 31, 2019
 
$
22

 
$
(19
)
Schedule of weighted average target asset allocation
Weighted average target asset allocation for all plans for 2019 are as follows:
 
 
All
Plans
Asset category:
 
 
Equity securities
 
17
%
Debt securities
 
54
%
Cash/Other
 
29
%
Schedule of fair value of plan assets by asset category and level within the fair value hierarchy
The following summarizes the fair value of plan assets by asset category and level within the fair value hierarchy as of December 31, 2018:
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
(in millions)
Equity securities:
 
 
 
 
 
 
 
 
U.S. equities
 
$
288

 
$
16

 
$
272

 
$
—

Non-U.S. equities
 
—

 
—

 
—

 
—

Total Equity securities
 
288

 
16

 
272

 
—

Fixed income securities:
 
 
 
 
 
 
 
 
U.S. government bonds
 
356

 
349

 
7

 
—

U.S. corporate bonds
 
421

 
—

 
421

 
—

Non-U.S. government bonds
 
47

 
9

 
38

 
—

Non-U.S. corporate bonds
 
73

 
—

 
73

 
—

Mortgage backed securities
 
—

 
—

 
—

 
—

Other fixed income
 
11

 
—

 
11

 
—

Total Fixed income securities
 
908

 
358

 
550

 
—

Other types of investments:
 
 
 
 
 
 
 
 
Mutual funds(A)
 
990

 
—

 
990

 
—

Insurance contracts
 
152

 
—

 
—

 
152

Derivatives—credit contracts
 
—

 
—

 
—

 
—

Real estate
 
—

 
—

 
—

 
—

Total Other types of investments
 
1,142

 
—

 
990

 
152

Cash:
 
84

 
46

 
38

 
—

Total
 
$
2,422

 
$
420

 
$
1,850

 
$
152

(A) This category includes mutual funds, which primarily invest in non-U.S. equities and non-U.S. corporate bonds.  
The following summarizes the fair value of plan assets by asset category and level within the fair value hierarchy as of December 31, 2019:
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
(in millions)
Equity securities:
 
 
 
 
 
 
 
 
U.S. equities
 
$
—

 
$
—

 
$
—

 
$
—

Non-U.S. equities
 
—

 
—

 
—

 
—

Total Equity securities
 
—

 
—

 
—

 
—

Fixed income securities:
 
 
 
 
 
 
 
 
U.S. government bonds
 
124

 
122

 
2

 
—

U.S. corporate bonds
 
34

 
5

 
29

 
—

Non-U.S. government bonds
 
47

 
9

 
38

 
—

Non-U.S. corporate bonds
 
25

 
—

 
25

 
—

Mortgage backed securities
 
—

 
—

 
—

 
—

Other fixed income
 
—

 
—

 
—

 
—

Total Fixed income securities
 
230

 
136

 
94

 
—

Other types of investments:
 
 
 
 
 
 
 
 
Mutual funds (A)
 
1,802

 
20

 
1,782

 
—

Insurance contracts
 
171

 
—

 
—

 
171

Derivatives—credit contracts
 
—

 
—

 
—

 
—

Real estate
 
—

 
—

 
—

 
—

Total Other types of investments
 
1,973

 
20

 
1,782

 
171

Cash:
 
45

 
17

 
28

 
—

Total
 
$
2,248

 
$
173

 
$
1,904

 
$
171

 
(A) This category includes mutual funds, which primarily invest in non-U.S. equities and non-U.S. corporate bonds.
Schedule of changes in level 3 plan assets

The following table presents the changes in the Level 3 plan assets for the year ended December 31, 2018:
 
 
Insurance
Contracts (in millions)
Balance at December 31, 2017
 
$
149

Actual return on plan assets relating to assets still held at
   reporting date
 
3

Purchases
 
8

Settlements
 
(4
)
Transfers in and/or out of Level 3
 
—

Currency impact
 
(4
)
Balance at December 31, 2018
 
$
152



The following table presents the changes in the Level 3 plan assets for the year ended December 31, 2019:
 
 
 
Insurance
Contracts (in millions)
Balance at December 31, 2018
 
$
152

Actual return on plan assets relating to assets still held at
   reporting date
 
12

Purchases
 
8

Settlements
 
(3
)
Transfers in and/or out of level 3
 
—

Currency impact
 
2

Balance at December 31, 2019
 
$
171
Schedule of cash flows related to total benefits expected to be paid
The benefit expected to be paid from the benefit plans which reflect expected future years of service, and the Medicare subsidy expected to be received are as follows:
 
 
Pension Plans
 
Healthcare
 
Medicare
Part D
Reimbursement
 
Other
 
(in millions)
2020
 
$
136

 
$
33

 
$
—

 
$
31

2021
 
135

 
32

 
—

 
27

2022
 
138

 
30

 
—

 
30

2023
 
142

 
30

 
—

 
28

2024
 
138

 
29

 
—

 
28

2025 - 2029
 
713

 
139

 
(1
)
 
137

Total
 
$
1,402

 
$
293

 
$
(1
)
 
$
281