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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
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, 2020, 2019, and 2018 are as follows:
|  | 2020 |  | 2019 |  | 2018
|  | (in millions)
Parent country source |  | $ | (131) |  |  | $ | (3) |  |  | $ | (6) |
Foreign sources |  | (374) |  |  | 1,173 |  |  | 1,472 |
Income (loss) before taxes and equity in income of unconsolidated subsidiaries and affiliates |  | $ | (505) |  |  | $ | 1,170 |  |  | $ | 1,466 |
Schedule of income tax provision | The provision for income taxes for the years ended December 31, 2020, 2019 and 2018 consisted of the following:
|  | 2020 |  | 2019 |  | 2018
|  | (in millions)
Current income taxes |  | $ | 235 |  |  | $ | 203 |  |  | $ | 353 |
Deferred income taxes |  | (285) |  |  | (474) |  |  | 64 |
Total income tax provision (benefit) |  | $ | (50) |  |  | $ | (271) |  |  | $ | 417 |
Schedule of reconciliation of income tax expense | Reconciliations of CNH Industrial’s income tax expense for the years ended December 31, 2020, 2019 and 2018 are as follows:
|  | 2020 |  | 2019 |  | 2018
|  | (in millions)
Tax provision at the parent statutory rate |  | $ | (96) |  |  | $ | 222 |  |  | $ | 278 |
Foreign income taxed at different rates |  | (6) |  |  | 79 |  |  | 102 |
Change in valuation allowance |  | (9) |  |  | (502) |  |  | 31 |
Italian IRAP taxes |  | 12 |  |  | 14 |  |  | 21 |
Tax contingencies |  | 5 |  |  | 7 |  |  | 29 |
Tax credits and incentives |  | (36) |  |  | (88) |  |  | (66) |
Goodwill impairment |  | 111 |  |  | — |  |  | — |
Nikola fair value remeasurement effect |  | (24) |  |  | — |  |  | — |
Change in tax rate or law |  | (14) |  |  | (5) |  |  | (8) |
Withholding taxes |  | — |  |  | 2 |  |  | 7 |
Other |  | 7 |  |  | — |  |  | 23 |
Total income tax provision (benefit) |  | $ | (50) |  |  | $ | (271) |  |  | $ | 417 |
Schedule of components of net deferred tax assets | The components of net deferred tax assets as of December 31, 2020 and 2019 are as follows:
|  | 2020 |  | 2019
|  | (in millions)
Deferred tax assets: |  |  |  |
Inventories |  | $ | 85 |  |  | $ | 66 |
Warranty and campaigns |  | 217 |  |  | 170 |
Allowance for credit losses |  | 159 |  |  | 155 |
Marketing and sales incentive programs |  | 272 |  |  | 285 |
Other risk and future charges reserve |  | 256 |  |  | 265 |
Pension, postretirement and postemployment benefits |  | 271 |  |  | 253 |
Leasing liabilities |  | 117 |  |  | 114 |
Research and development costs |  | 306 |  |  | 311 |
Other reserves |  | 400 |  |  | 347 |
Tax credits and loss carry forwards |  | 798 |  |  | 677 |
Less: Valuation allowances |  | (941) |  |  | (993) |
Total deferred tax assets |  | $ | 1,940 |  |  | $ | 1,650 |
Deferred tax liabilities: |  |  |  |
Property, plant and equipment |  | $ | 423 |  |  | $ | 523 |
Other |  | 178 |  |  | 165 |
Total deferred tax liabilities |  | 601 |  |  | 688 |
Net deferred tax assets |  | $ | 1,339 |  |  | $ | 962 |
Net deferred tax assets are reflected in the accompanying consolidated balance sheets as of December 31, 2020 and 2019 as follows:
|  | 2020 |  | 2019
|  | (in millions)
Deferred tax assets |  | $ | 1,451 |  |  | $ | 1,134 |
Deferred tax liabilities |  | (112) |  |  | (172) |
Net deferred tax assets |  | $ | 1,339 |  |  | $ | 962 |
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:
|  | 2020 |  | 2019
|  | (in millions)
Balance, beginning of year |  | $ | 255 |  |  | $ | 268 |
Additions based on tax positions related to the current year |  | 19 |  |  | 26 |
Additions for tax positions of prior years |  | 39 |  |  | 32 |
Reductions for tax positions of prior years |  | (5) |  |  | (32) |
Reductions for tax positions as a result of lapse of statute |  | (37) |  |  | (14) |
Settlements |  | (1) |  |  | (25) |
Balance, end of year |  | $ | 270 |  |  | $ | 255 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
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