Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

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, 2024, 2023 and 2022 are as follows:

(in millions of dollars)	2024		2023		2022
Parent country source	$	(36)	$	(48)	$	143
Foreign sources	1,493		2,751		2,539
Income (loss) of Consolidated Group before Income Taxes	$	1,457	$	2,703	$	2,682

Schedule of income tax provision

The provision for income taxes for the years ended December 31, 2024, 2023 and 2022 consisted of the following:

(in millions of dollars)	2024		2023		2022
Current income taxes	$	442	$	1,118	$	819
Deferred income taxes	(106)		(524)		(72)
Total income tax provision (benefit)	$	336	$	594	$	747

Schedule of reconciliation of income tax expense

Reconciliations of CNH’s income tax expense for the years ended December 31, 2024, 2023 and 2022 are as follows:

(in millions of dollars)	2024		2023		2022
Tax provision at the parent statutory rate	$	364	$	635	$	510
Foreign income taxed at different rates	37		73		243
Change in valuation allowance	(7)		(117)		(70)
Tax contingencies	69		66		58
Tax credits and incentives	(88)		(136)		(54)
Hyper-inflationary tax impacts (1)	(64)		27		(6)
Withholding taxes (1)	26		28		3
Other	(1)		18		63
Total income tax provision (benefit)	$	336	$	594	$	747

(1) These balances were shown within "Other" in previous periods. In the current period, they have been presented separately. Prior period amounts have been reclassified for comparability.

Schedule of components of net deferred tax assets

The components of net deferred tax assets as of December 31, 2024 and 2023 are as follows:

(in millions of dollars)	2024		2023
Deferred tax assets:
Warranty and campaigns	$	99	$	94
Allowance for credit losses	158		137
Marketing and sales incentive programs	504		551
Other risk and future charges reserve	46		57
Pension, postretirement and postemployment benefits	82		104
Leasing liabilities	68		69
Research and development costs	293		234
Other reserves	200		267
Tax credits and loss carry forwards	293		262
Less: Valuation allowances	(183)		(207)
Total deferred tax assets	1,560		1,568
Deferred tax liabilities:
Property, plant and equipment	365		380
Intangibles	183		192
Inventories	33		25
Other	80		27
Total deferred tax liabilities	661		624
Net deferred tax assets	$	899	$	944

Net deferred tax assets are reflected in the accompanying consolidated balance sheets as of December 31, 2024 and 2023 as follows:

(in millions of dollars)	2024		2023
Deferred tax assets	$	927	$	979
Deferred tax liabilities	(28)		(35)
Net deferred tax assets	$	899	$	944

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:

(in millions of dollars)	2024		2023
Balance, beginning of year	$	234	$	162
Additions based on tax positions related to the current year	36		52
Additions for tax positions of prior years	16		63
Reductions for tax positions of prior years	(6)		(35)
Reductions for tax positions as a result of lapse of statute	(12)		—
Settlements	—		(8)
Balance, end of year	$	268	$	234