Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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, 2022, 2021, and 2020 are as follows:

	2022		2021		2020
	(in millions)
Parent country source	$	143	$	161	$	(97)
Foreign sources	2,539		1,778		(82)
Income (loss) before taxes and equity in income of unconsolidated subsidiaries and affiliates	$	2,682	$	1,939	$	(179)

Schedule of income tax provision

The provision for income taxes for the years ended December 31, 2022, 2021 and 2020 consisted of the following:

	2022		2021		2020
	(in millions)
Current income taxes	$	819	$	498	$	185
Deferred income taxes	(72)		(269)		(100)
Total income tax provision (benefit)	$	747	$	229	$	85

Schedule of reconciliation of income tax expense

Reconciliations of CNH Industrial’s income tax expense for the years ended December 31, 2022, 2021 and 2020 are as follows:

	2022		2021		2020
	(in millions)
Tax provision at the parent statutory rate	$	510	$	368	$	(34)
Foreign income taxed at different rates	243		136		34
Change in valuation allowance	(70)		(207)		6
Tax contingencies	58		(18)		(8)
Tax credits and incentives	(54)		(79)		(25)
Goodwill impairment	—		—		111
Change in tax rate or law	—		(5)		—
Other	60		34		1
Total income tax provision (benefit)	$	747	$	229	$	85

Schedule of components of net deferred tax assets

The components of net deferred tax assets as of December 31, 2022 and 2021 are as follows:

	2022		2021
	(in millions)
Deferred tax assets:
Warranty and campaigns	$	86	$	84
Allowance for credit losses	108		83
Marketing and sales incentive programs	359		293
Other risk and future charges reserve	40		42
Pension, postretirement and postemployment benefits	87		146
Leasing liabilities	55		49
Research and development costs	139		27
Other reserves	251		335
Tax credits and loss carry forwards	266		388
Less: Valuation allowances	(343)		(438)
Total deferred tax assets	$	1,048	$	1,009
Deferred tax liabilities:
Property, plant and equipment	$	370	$	414
Intangibles	180		190
Inventories	70		92
Other	80		47
Total deferred tax liabilities	700		743
Net deferred tax assets	$	348	$	266

Net deferred tax assets are reflected in the accompanying consolidated balance sheets as of December 31, 2022 and 2021 as follows:

	2022		2021
	(in millions)
Deferred tax assets	$	433	$	421
Deferred tax liabilities	(85)		(125)
Other liabilities	—		(30)
Net deferred tax assets	$	348	$	266

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:

	2022		2021
	(in millions)
Balance, beginning of year	$	143	$	179
Additions based on tax positions related to the current year	16		17
Additions for tax positions of prior years	35		9
Reductions for tax positions of prior years	(16)		(24)
Reductions for tax positions as a result of lapse of statute	(2)		(1)
Settlements	(14)		(37)
Balance, end of year	$	162	$	143