Employee Benefit Plans and Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2023

Retirement Benefits [Abstract]

Schedule of defined benefit pension, healthcare and other postemployment plans

The following summarizes data from CNH’s defined benefit pension, healthcare and other postemployment plans for the years ended December 31, 2023 and 2022:

	Pension				Healthcare (1)				Other (1)
(in millions of dollars)	2023		2022		2023		2022		2023		2022
Change in benefit obligations:
Beginning benefit obligation	$	1,175	$	1,843	$	181	$	281	$	89	$	113
Service cost	9		11		3		4		5		5
Interest cost	54		27		9		6		4		1
Plan participants’ contributions	1		1		4		4		—		—
Actuarial loss (gain)	53		(476)		10		(52)		5		(15)
Gross benefits paid	(80)		(77)		(29)		(28)		(7)		(7)
Plan amendments	4		—		1		(6)		—		—
Currency translation adjustments and other (2)	58		(154)		—		(28)		4		(8)
Ending benefit obligation	1,274		1,175		179		181		100		89
Change in the fair value of plan assets:
Beginning plan assets	979		1,474		58		130		—		—
Actual return on plan assets	51		(357)		6		(21)		—		—
Employer contributions	41		46		—		—		—		—
Plan participants’ contributions	1		1		—		—		—		—
Gross benefits paid	(68)		(65)		(6)		(9)		—		—
Currency translation adjustments and other (2)	45		(120)		—		(42)		—		—
Ending plan assets	1,049		979		58		58		—		—
Funded status:	$	(225)	$	(196)	$	(121)	$	(123)	$	(100)	$	(89)

(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 group annuity contract purchases in 2022.

Schedule of defined benefit pension plans by significant geographical area

The following summarizes data from CNH’s defined benefit pension plans by significant geographical area for the years ended December 31, 2023 and 2022:

	U.S.				U.K.				Germany (1)				Other Countries (1)
(in millions of dollars)	2023		2022		2023		2022		2023		2022		2023		2022
Change in benefit obligations:
Beginning benefit obligation	$	128	$	174	$	770	$	1,288	$	108	$	157	$	169	$	224
Service cost	2		3		—		—		—		—		7		8
Interest cost	7		5		38		20		4		1		5		1
Plan participants’ contributions	—		—		—		—		—		—		1		1
Actuarial loss (gain)	7		(51)		17		(360)		12		(29)		17		(36)
Gross benefits paid	(5)		(3)		(48)		(48)		(11)		(11)		(16)		(15)
Plan amendments	—		—		4		—		—		—		—		—
Currency translation adjustments and other (2)	—		—		44		(130)		4		(10)		10		(14)
Ending benefit obligation	139		128		825		770		117		108		193		169
Change in the fair value of plan assets:
Beginning plan assets	159		205		650		1,057		4		4		166		208
Actual return on plan assets	6		(43)		36		(292)		—		—		9		(22)
Employer contributions	—		—		31		39		—		—		10		7
Plan participants’ contributions	—		—		—		—		—		—		1		1
Gross benefits paid	(4)		(3)		(48)		(48)		—		—		(16)		(14)
Currency translation adjustments and other (2)	—		—		38		(106)		—		—		7		(14)
Ending plan assets	161		159		707		650		4		4		177		166
Funded status:	$	22	$	31	$	(118)	$	(120)	$	(113)	$	(104)	$	(16)	$	(3)

(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 group annuity contract purchases in the fourth quarter of 2022.

Schedule of net amounts recognized in consolidated balance sheets

Net amounts recognized in the consolidated balance sheets as of December 31, 2023 and 2022 consist of:

	Pension				Healthcare				Other
(in millions of dollars)	2023		2022		2023		2022		2023		2022
Other assets	$	30	$	41	$	—	$	—	$	—	$	—
Pension, postretirement and other postemployment benefits	(255)		(237)		(121)		(123)		(100)		(89)
Net liability recognized at end of year	$	(225)	$	(196)	$	(121)	$	(123)	$	(100)	$	(89)

Schedule of pre-tax amounts recognized in accumulated other comprehensive loss

Pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 2023 consist of:

(in millions of dollars)	Pension		Healthcare		Other
Unrecognized actuarial losses (gains)	$	407	$	8	$	(9)
Unrecognized prior service credit	2		(48)		(7)
Accumulated other comprehensive loss	$	409	$	(40)	$	(16)

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
(in millions of dollars)	2023		2022
Accumulated benefit obligation	$	998	$	888
Fair value of plan assets	$	753	$	656

Schedule of projected benefit obligations in excess of plan assets

The following table summarizes CNH’s pension and other post-employment plans with projected benefit obligations in excess of plan assets:

	Pension				Healthcare				Other
(in millions of dollars)	2023		2022		2023		2022		2023		2022
Projected benefit obligation	$	1,091	$	969	$	179	$	181	$	100	$	89
Fair value of plan assets	$	836	$	733	$	58	$	58	$	—	$	—

Schedule of net periodic benefit cost

The following summarizes the components of net periodic benefit cost of CNH’s defined benefit for the years ended December 31, 2023, 2022 and 2021:

	Pension						Healthcare						Other
(in millions of dollars)	2023		2022		2021		2023		2022		2021		2023		2022		2021
Service cost	$	9	$	11	$	13	$	3	$	4	$	4	$	5	$	5	$	6
Interest cost	54		27		19		9		6		6		4		1		1
Expected return on assets	(45)		(47)		(53)		(4)		(5)		(7)		—		—		—
Amortization of:
Prior service cost (credit)	—		—		—		(36)		(126)		(136)		—		—		—
Actuarial loss (gain)	18		19		25		—		1		3		2		(2)		2
Settlement loss and other	2		(3)		—		—		3		—		(1)		1		2
Net periodic benefit cost (credit)	$	38	$	7	$	4	$	(28)	$	(117)	$	(130)	$	10	$	5	$	11

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 2023 consist of:

(in millions of dollars)	Pension		Healthcare		Other
Net periodic benefit cost	$	38	$	(28)	$	10
Benefit adjustments included in other comprehensive (income) loss:
Net actuarial losses (gains)	51		9		5
Amortization of actuarial losses	(18)		—		(2)
Amortization of prior service (cost) credit	—		36		—
Currency translation adjustments and other	19		—		(1)
Total recognized in other comprehensive (income) loss	52		45		2
Total recognized in comprehensive loss	$	90	$	17	$	12

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, 2023 and 2022, and the net periodic benefit cost of CNH’s defined benefit plans for the years ended December 31, 2023, 2022 and 2021:

	Pension plans			Healthcare plans			Other
(in percentages)	2023	2022	2021	2023	2022	2021	2023	2022	2021
Weighted-average rate assumptions used to determine funded status
Discount rate	4.22	4.64	1.79	4.97	5.28	2.59	3.50	4.11	1.12
Rate of compensation increase	2.91	3.03	2.41	4.00	4.00	4.00	2.94	3.19	2.33
Initial healthcare cost trend rate	n/a	n/a	n/a	4.70	5.12	4.18	n/a	n/a	n/a
Ultimate healthcare cost trend rate(1)	n/a	n/a	n/a	3.74	4.00	3.58	n/a	n/a	n/a
Weighted-average rate assumptions used to determine expense
Discount rates—service cost	3.51	1.32	0.94	5.37	3.15	2.57	4.32	1.36	0.77
Discount rates—interest cost	4.65	1.59	0.98	5.17	2.87	1.55	4.08	0.99	0.47
Rate of compensation increase	3.03	2.41	2.26	4.00	4.00	n/a	3.19	2.33	2.08
Long-term rates of return on plan assets	4.54	3.42	3.71	5.75	4.76	4.85	n/a	n/a	n/a
Initial healthcare cost trend rate	n/a	n/a	n/a	5.12	4.18	4.39	n/a	n/a	n/a
Ultimate healthcare cost trend rate(1)	n/a	n/a	n/a	4.00	3.58	3.95	n/a	n/a	n/a

(1)    CNH expects to achieve the ultimate healthcare cost trend rate in 2033 for U.S. plans. A flat trend rate assumption is utilized for the Canada plans.

Schedule of weighted average target asset allocation

Weighted-average target asset allocation for all plans for 2023 are as follows:

	All Plans
Asset category:
Equity securities	7	%
Debt securities	61	%
Cash/Other	32	%

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, 2023:

(in millions of dollars)	Total		Level 1		Level 2		Level 3
Equity securities:
U.S. equities	$	—	$	—	$	—	$	—
Non-U.S. equities	—		—		—		—
Total Equity securities	—		—		—		—
Fixed income securities:
U.S. government bonds	13		12		1		—
U.S. corporate bonds	17		14		3		—
Non-U.S. government bonds	26		—		26		—
Non-U.S. corporate bonds	13		—		13		—
Mortgage backed securities	2		—		2		—
Other fixed income	2		—		2		—
Total Fixed income securities	73		26		47		—
Other types of investments:
Mutual funds (1)	919		—		919		—
Insurance contracts	45		—		—		45
Derivatives—credit contracts	—		—		—		—
Real estate	—		—		—		—
Total Other types of investments	964		—		919		45
Cash:	22		11		11		—
Total of Level 1, Level 2 and Level 3 Assets	$	1,059	$	37	$	977	$	45
Investments at net asset value:
Mutual funds (2)	48
Total Net Assets	$	1,107	$	37	$	977	$	45

(1)     This category includes mutual funds, which primarily invest in non-U.S. equities and non-U.S. corporate bonds.

(2)         This category includes open ended mutual fund, the underlying assets of the mutual fund are illiquid in nature and are not

        classified in the fair value hierarchy using the net asset per share practical expedient.

The following summarizes the fair value of plan assets by asset category and level within the fair value hierarchy as of December 31, 2022:

(in millions of dollars)	Total		Level 1		Level 2		Level 3
Equity securities:
U.S. equities	$	—	$	—	$	—	$	—
Non-U.S. equities	—		—		—		—
Total Equity securities	—		—		—		—
Fixed income securities:
U.S. government bonds	7		6		1		—
U.S. corporate bonds	20		15		5		—
Non-U.S. government bonds	29		7		22		—
Non-U.S. corporate bonds	13		—		13		—
Mortgage backed securities	3		—		3		—
Other fixed income	3		—		3		—
Total Fixed income securities	75		28		47		—
Other types of investments:
Mutual funds (1)	901		—		901		—
Insurance contracts	40		—		—		40
Derivatives—credit contracts	—		—		—		—
Real estate	—		—		—		—
Total Other types of investments	941		—		901		40
Cash:	21		6		15		—
Total	$	1,037	$	34	$	963	$	40

(1) 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, 2023:

 

(in millions of dollars)	Level 3 Assets
Balance at December 31, 2022	$	40
Actual return on plan assets relating to assets still held at reporting date	1
Purchases	4
Settlements	(2)
Transfers in and/or out of level 3	—
Currency impact	2
Balance at December 31, 2023	$	45

The following table presents the changes in the Level 3 plan assets for the year ended December 31, 2022:

(in millions of dollars)	Level 3 Assets
Balance at December 31, 2021	$	45
Actual return on plan assets relating to assets still held at reporting date	(1)
Purchases	4
Settlements	(7)
Transfers in and/or out of Level 3	—
Currency impact	(1)
Balance at December 31, 2022	$	40

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:

(in millions of dollars)	Pension Plans		Healthcare		Other
2024	$	77	$	20	$	9
2025	77		19		10
2026	78		18		9
2027	88		17		8
2028	85		16		9
2029 - 2033	409		72		46
Total	$	814	$	162	$	91