Other Liabilities

12 Months Ended

Dec. 31, 2020

Other Liabilities Disclosure [Abstract]

A summary of “Other liabilities” as of December 31, 2020 and 2019 is as follows:


	2020		2019
	(in millions)
Advances on buy-back agreements	$	1,355	$	1,472
Warranty and campaign programs	995		919
Marketing and sales incentive programs	1,324		1,279
Tax payables	654		696
Accrued expenses and deferred income	672		639
Accrued employee benefits	681		562
Lease liabilities	453		449
Legal reserves and other provisions	332		299
Contract reserve	389		319
Contract liabilities	1,381		1,236
Restructuring reserve	76		103
Other	1,100		866
Total	$	9,412	$	8,839

Warranty and Campaign Program

As described in “Note 2: Summary of Significant Accounting Policies,” CNH Industrial pays for basic warranty and other service action costs. A summary of recorded activity for the basic warranty and campaign program accrual for the years ended December 31, 2020 and 2019 are as follows:


	2020		2019
	(in millions)
Balance, beginning of year	$	919	$	925
Current year additions	784		801
Claims paid	(685)		(749)
Currency translation adjustment and other	(23)		(58)
Balance, end of year	$	995	$	919

Advance on Buy-back Agreements

As described in “Note 2: Summary of Significant Accounting Policies,” the repurchase value of the asset relating to new vehicle sales with a buy-back commitment by Commercial and Specialty Vehicles is recognized as advances on buy-back agreements.

Restructuring Provision

The Company incurred restructuring costs of $49 million, $109 million and $61 million for the years ended December 31, 2020, 2019, and 2018, respectively. These costs were as follows:

•In 2020, Commercial and Specialty Vehicles, Agriculture, Construction and Powertrain recorded $11 million, $13 million, $9 million and $16 million respectively.

•In 2019, Commercial and Specialty Vehicles, Agriculture, Construction and Powertrain recorded $37 million, $41 million, $18 million and $7 million respectively, which were primarily attributable to actions included in the “Transform2Win” strategy.

•In 2018, Commercial and Specialty Vehicles and Agriculture recorded $30 million and $26 million respectively, which were primarily attributable to actions as part of the Efficiency Program launched in 2014.

The following table sets forth restructuring activity for the years ended December 31, 2020, 2019 and 2018:


	Severance and Other Employee Costs		Facility Related Costs		Other Restructuring		Total
	(in millions)
Balance at January 1, 2018	$	48	$	12	$	—	$	60
Restructuring charges	39		17		5		61
Reserves utilized: cash	(36)		—		(2)		(38)
Reserves utilized: non-cash	(9)		1		—		(8)
Currency translation adjustments	(2)		—		(2)		(4)
Balance at December 31, 2018	$	40	$	30	$	1	$	71
Restructuring charges	98		(2)		13		109
Reserves utilized: cash	(77)		25		(4)		(56)
Reserves utilized: non-cash	3		(16)		(7)		(20)
Currency translation adjustments	(2)		1		—		(1)
Balance at December 31, 2019	$	62	$	38	$	3	$	103
Restructuring charges	46		3		—		49
Reserves utilized: cash	(61)		(7)		(4)		(72)
Reserves utilized: non-cash	(6)		(5)		2		(9)
Currency translation adjustments	3		1		1		5
Balance at December 31, 2020	$	44	$	30	$	2	$	76