FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2021

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 recognized in accumulated other comprehensive income (loss) and net income (loss) during the three and nine months ended September 30, 2021 and 2020 (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
2021
Foreign exchange contracts	$	27
			Net sales	1
			Cost of goods sold	(9)
			Other, Net	—
Interest rate contracts	8		Interest expense	1
Total	$	35		$	(7)
2020
Foreign exchange contracts	$	40
			Net sales	(4)
			Cost of goods sold	12
			Other, Net	1
Interest rate contracts	8		Interest expense	(1)
Total	$	48		$	8

			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
2021
Foreign exchange contracts	$	(54)
			Net sales	(2)
			Cost of goods sold	18
			Other, Net	(6)
Interest rate contracts	33		Interest expense	(2)
Total	$	(21)		$	8
2020
Foreign exchange contracts	$	106
			Net sales	(5)
			Cost of goods sold	(7)
			Other, Net	11
Interest rate contracts	(11)		Interest expense	(4)
Total	$	95		$	(5)

Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three and nine months ended September 30, 2021 and 2020 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,
	2021		2020		2021		2020
	(in millions)				(in millions)
Cash flow hedges	$	(1)	$	4	$	2	$	5	Net sales
	9		(12)		(18)		7		Cost of goods sold
	—		(1)		6		(11)		Other, net
	(1)		1		2		4		Interest expense
	(1)		—		—		(4)		Income taxes
	$	6	$	(8)	$	(8)	$	1
Change in retirement plans’ funded status:
Amortization of actuarial losses	$	8	$	12	$	26	$	33	*
Amortization of prior service cost	(35)		(33)		(100)		(98)		*
	(15)		(6)		(29)		(21)		Income taxes
	$	(42)	$	(27)	$	(103)	$	(86)
Total reclassifications, net of tax	$	(36)	$	(35)	$	(111)	$	(85)

(*) 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, 2021 and 2020:

In Millions	Before-Tax Amount		Income Tax		After-Tax Amount
Accumulated derivative net losses as of December 31, 2020	$	(5)	$	(1)	$	(6)
Net changes in fair value of derivatives	(21)		(4)		(25)
Net losses reclassified from accumulated other comprehensive income into income	(8)		—		(8)
Accumulated derivative net losses as of September 30, 2021	$	(34)	$	(5)	$	(39)

In Millions	Before-Tax Amount		Income Tax		After-Tax Amount
Accumulated derivative net losses as of December 31, 2019	$	(62)	$	8	$	(54)
Net changes in fair value of derivatives	95		(9)		86
Net losses reclassified from accumulated other comprehensive income into income	5		(4)		1
Accumulated derivative net losses as of September 30, 2020	$	38	$	(5)	$	33

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 Months Ended September 30,
	Classification of Gain	2021		2020
Fair Value Hedges
Interest rate derivatives	Interest expense	$	(6)	$	(5)
Not Designated as Hedges
Foreign exchange contracts	Other, Net	$	36	$	6

		For the Nine Months Ended September 30,
	Classification of Gain	2021		2020
Fair Value Hedges
Interest rate derivatives	Interest expense	$	(28)	$	37
Not Designated as Hedges
Foreign exchange contracts	Other, Net	$	(40)	$	160

Summary of Fair Value of Derivatives

The fair values of CNH Industrial’s derivatives as of September 30, 2021 and December 31, 2020 in the condensed consolidated balance sheets are recorded as follows:

	September 30, 2021		December 31, 2020
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	60	Derivative assets	77
Foreign currency contracts	Derivative assets	45	Derivative assets	67
Total derivative assets designated as hedging instruments		105		144
Interest rate contracts	Derivative liabilities	24	Derivative liabilities	46
Foreign currency contracts	Derivative liabilities	82	Derivative liabilities	62
Total derivative liabilities designated as hedging instruments		106		108
Derivatives not designated as hedging instruments under Subtopic 815-20
Interest rate contracts	Derivative assets	7	Derivative assets	—
Foreign currency contracts	Derivative assets	47	Derivative assets	16
Total derivative assets not designated as hedging instruments		54		16
Interest rate contracts	Derivative liabilities	7	Derivative liabilities	—
Foreign currency contracts	Derivative liabilities	18	Derivative liabilities	31
Total derivative liabilities not designated as hedging instruments		25		31

Summary of Investments Measured on 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, 2021 and December 31, 2020:

	Level 1				Level 2				Total
	September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
	(in millions)
Assets
Foreign exchange derivatives	$	—	$	—	$	92	$	83	$	92	$	83
Interest rate derivatives	—		—		67		77		67		77
Investments at fair value through profit & loss	274		392		—		—		274		392
Total Assets	$	274	$	392	$	159	$	160	$	433	$	552
Liabilities
Foreign exchange derivatives	$	—	$	—	$	100	$	93	$	100	$	93
Interest rate derivatives	—		—		31		46		31		46
Total Liabilities	$	—	$	—	$	131	$	139	$	131	$	139

Summary of Investments Measured on Nonrecurring Basis

The following tables present the fair value for nonrecurring Level 3 measurements from impairments as of September 30, 2021 and 2020:

	Fair Value				Losses
	2021		2020		2021		2020
	(in millions)
Property, plant and equipment	$	—	$	107	$	—	$	163
Other intangible assets	$	—	$	—	$	—	$	92

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, 2021 and December 31, 2020 are as follows:

	September 30, 2021				December 31, 2020
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in millions)
Financing receivables	$	17,943	$	18,223	$	18,457	$	18,726
Debt	$	23,749	$	24,175	$	26,053	$	26,630