INCOME TAXES

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective tax rate for the three months ended June 30, 2024 and 2023 was 20.9% and 22.9%, respectively. The 2024 effective tax rate was reduced by the impact of discrete items, including the impact of highly-inflationary accounting and tax-related inflation adjustments in Argentina. The 2023 effective tax rate was reduced by the tax benefits related to the sale of CNH Industrial Russia.

The effective tax rate for the six months ended June 30, 2024 and 2023 was 20.1% and 24.9%. respectively. The 2024 effective tax rate was reduced by the impact of discrete items, including the impact of highly-inflationary accounting and tax-related inflation adjustments in Argentina. The 2023 effective tax rate was reduced by the tax benefits related to the sale of CNH Industrial Russia, although these benefits were partially offset by discrete tax expenses associated with prior periods.

The Organization for Economic Cooperation and Development (the “OECD”) has proposed a global minimum tax of 15% of reported profits (“Pillar Two”) that has been agreed upon in principle by over 140 countries. The Company has determined that Pillar Two legislation has been enacted in one or more jurisdictions in which it operates and that the Company is within the scope of the legislation. The Company has assessed such enacted Pillar Two legislation and related transitional safe harbor provisions and concluded that the tax impacts of the legislation are not material to the Company’s financial results.