EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS

6 Months Ended

Jun. 30, 2020

Postemployment Benefits [Abstract]

EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS

EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT BENEFITS

The following table summarizes the components of net periodic benefit cost of CNH Industrial’s defined benefit pension plans and postretirement health and life insurance plans for the three and six months ended June 30, 2020 and 2019:

	Pension				Healthcare				Other
	Three Months Ended June 30,				Three Months Ended June 30,				Three Months Ended June 30,
	2020		2019		2020		2019		2020		2019
	(in millions)
Service cost	$	6	$	6	$	1	$	2	$	4	$	3
Interest cost	12		19		2		4		1		1
Expected return on assets	(22)		(25)		(1)		(2)		—		—
Amortization of:
Prior service credit	—		—		(32)		(30)		—		1
Actuarial loss	10		17		—		—		—		—
Net periodic benefit cost	$	6	$	17	$	(30)	$	(26)	$	5	$	5

	Pension				Healthcare				Other
	Six Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019		2020		2019
	(in millions)
Service cost	$	11	$	12	$	2	$	3	$	8	$	6
Interest cost	23		38		5		8		1		2
Expected return on assets	(42)		(50)		(3)		(4)		—		—
Amortization of:
Prior service credit	—		—		(65)		(60)		—		1
Actuarial loss	20		34		1		—		—		—
Net periodic benefit cost	$	12	$	34	$	(60)	$	(53)	$	9	$	9

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 ("OCI") 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 six months ended June 30, 2020 and 2019, $30 million and $60 million of amortization (“Benefit Modification Amortization”) was recorded as a pre-tax gain in Other, net, respectively.