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Income Taxes (Tables)

12 Months Ended

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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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.

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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.

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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.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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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.

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