OTHER LIABILITIES

9 Months Ended

Sep. 30, 2020

Other Liabilities Disclosure [Abstract]

OTHER LIABILITIES

OTHER LIABILITIES

A summary of Other liabilities as of September 30, 2020 and December 31, 2019 is as follows:

	September 30, 2020		December 31, 2019
	(in millions)
Repurchase price on buy-back agreements	$	1,235	$	1,472
Warranty and campaign programs	932		919
Marketing and sales incentive programs	1,244		1,279
Tax payables	601		696
Accrued expenses and deferred income	652		639
Accrued employee benefits	672		562
Lease liabilities	388		449
Legal reserves and other provisions	331		299
Contract reserve	362		319
Contract liabilities(1)	1,207		1,236
Restructuring reserve	67		103
Other	1,005		866
Total	$	8,696	$	8,839

(1)Contract liabilities include $614 million and $657 million at September 30, 2020 and December 31, 2019, respectively, for future rents related to buy-back agreements.

Warranty and Campaign Programs

CNH Industrial pays for basic warranty and other service action costs. A summary of recorded activity for the three and nine months ended September 30, 2020 and 2019 for the basic warranty and accruals for campaign programs are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in millions)				(in millions)
Balance at beginning of period	$	903	$	941	$	919	$	925
Current year additions	180		162		522		566
Claims paid	(171)		(170)		(493)		(553)
Currency translation adjustment and other	20		(42)		(16)		(47)
Balance at September 30, 2020	$	932	$	891	$	932	$	891

Restructuring Expense

The Company incurred restructuring expenses of $7 million and $19 million during the three and nine months ended September 30, 2020, respectively. The Company incurred restructuring expenses of $42 million and $78 million during the three and nine months ended September 30, 2019, respectively.