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Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Gross impact of changes in fair value of derivatives designated as cash flow hedges on AOCI and net income

The following table summarizes the gross impact of changes in the fair value of derivatives designated as cash flow hedges on accumulated other comprehensive income (loss) and net income during the year ended December 31, 2020, December 31, 2019, and December 31, 2018 (in millions):

												Recognized in Net Income
For the Year Ended December 31,						Gain (Loss) Recognized in Accumulated Other Comprehensive Income						Classification of Gain (Loss)						Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
2020
Foreign exchange contracts						$	96					Net sales						$	(7)
												Cost of goods sold						31
												Other, net						6
												Interest expense, net						(5)
Interest rate contracts						(14)
Total						$	82											$	25
2019
Foreign exchange contracts						$	(113)					Net sales						$	—
												Cost of goods sold						(69)
												Other, net						(16)
												Interest expense, net						(8)
Interest rate contracts						(22)
Total						$	(135)											$	(93)
2018
Foreign currency contracts						$	2					Net sales						$	(7)
												Cost of goods sold						15
												Other, net						20
												Interest expense, net						(4)
Interest rate contracts						1
Total						$	3											$	24

Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in December 31, 2020 and 2019 consisted of the following:

						Amount Reclassified from Other Comprehensive Income (Loss)												Consolidated Statement of Operations line
						2020						2019
						(in millions)
Cash flow hedges						$	7					$	—					Net sales
						(31)						69						Cost of goods sold
						(6)						16						Other, net
						5						8						Interest expense
						(1)						(14)						Income taxes
						$	(26)					$	79
Change in retirement plans’ funded status:
Amortization of actuarial losses						$	47					$	79					*
Amortization of prior service cost						(130)						(123)						*
						(63)						—						Income taxes
						$	(146)					$	(44)
Total reclassifications, net of tax						$	(172)					$	35

(*)    These amounts are included in net periodic pension and other postretirement benefit cost. See “Note 12: Employee Benefit Plans and Postretirement Benefits” for additional information.

Summary of impact of changes in fair value of fair value hedges and derivatives not designated as hedging instruments on earnings

The following table summarizes the activity in accumulated other comprehensive income related to the derivatives held by the Company during the years ended December 31, 2020, December 31, 2019, and December 31, 2018:

(in millions)						Before-Tax Amount						Income Tax						After-Tax Amount
Accumulated derivative net losses as of December 31, 2019						$	(62)					$	8					$	(54)
Net changes in fair value of derivatives						82						(8)						74
Net losses reclassified from accumulated other comprehensive income into income						(25)						(1)						(26)
Accumulated derivative net losses as of December 31, 2020						$	(5)					$	(1)					$	(6)

(in millions)						Before-Tax Amount						Income Tax						After-Tax Amount
Accumulated derivative net losses as of December 31, 2018						$	(20)					$	(2)					$	(22)
Net changes in fair value of derivatives						(135)						24						(111)
Net losses reclassified from accumulated other comprehensive income into income						93						(14)						79
Accumulated derivative net losses as of December 31, 2019						$	(62)					$	8					$	(54)

(in millions)						Before-Tax Amount						Income Tax						After-Tax Amount
Accumulated derivative net losses as of December 31, 2017						$	1					$	—					$	1
Net changes in fair value of derivatives						3						(4)						(1)
Net losses reclassified from accumulated other comprehensive income into income						(24)						2						(22)
Accumulated derivative net losses as of December 31, 2018						$	(20)					$	(2)					$	(22)

The following tables summarize the impact of the changes in the fair value of fair value hedges and derivatives not designated as hedging instruments had on earnings for the year ended December 31, 2020, December 31, 2019, and December 31, 2018:

												For the Year Ended December 31,
(in millions)						Classification of Gain						2020						2019			2018
Fair Value Hedges
Interest rate derivatives						Interest expense						$	31					$	31		$	9
Not Designated as Hedges
Foreign exchange contracts						Other, Net						$	86					$	(73)		$	68

Summary of fair value of derivatives

The fair values of CNH Industrial’s derivatives as of December 31, 2020 and December 31, 2019 in the consolidated balance sheets are recorded as follows:

December 31, 2020

December 31, 2019

(in millions)

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Derivatives designated as hedging instruments under Subtopic 815-20

Interest rate contracts

Derivative assets

77

Derivative assets

44

Foreign currency contracts

Derivative assets

67

Derivative assets

17

Total derivative assets designated as hedging instruments

144

61

Interest rate contracts

Derivative liabilities

46

Derivative liabilities

29

Foreign currency contracts

Derivative liabilities

62

Derivative liabilities

69

Total derivative liabilities designated as hedging instruments

108

98

Derivatives not designated as hedging instruments under Subtopic 815-20

Interest rate contracts

Derivative assets

—

Derivative assets

—

Foreign currency contracts

Derivative assets

16

Derivative assets

12

Total derivative assets not designated as hedging instruments

16

12

Interest rate contracts

Derivative liabilities

—

Derivative liabilities

—

Foreign currency contracts

Derivative liabilities

31

Derivative liabilities

23

Total derivative liabilities not designated as hedging instruments

31

23

Summary of fair value hierarchy levels

The following tables present for each of the fair-value hierarchy levels the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2020 and December 31, 2019:

			Level 1												Level 2												Total
			December 31, 2020						December 31, 2019						December 31, 2020						December 31, 2019						December 31, 2020						December 31, 2019
			(in millions)
Assets
Foreign exchange derivatives			$	—					$	—					$	83					$	29					$	83					$	29
Interest rate derivatives			—						—						77						44						77						44
Investments			—						1						—						—						—						1
Investments at fair value through profit & loss			392						—						—						—						392						—
Total Assets			$	392					$	1					$	160					$	73					$	552					$	74
Liabilities
Foreign exchange derivatives			$	—					$	—					$	93					$	(92)					$	93					$	(92)
Interest rate derivatives			—						—						46						(29)						46						(29)
Total Liabilities			$	—					$	—					$	139					$	(121)					$	139					$	(121)

Summary of estimated fair market values

The estimated fair market values of financial instruments not carried at fair value in the consolidated balance sheets as of December 31, 2020 and 2019 are as follows:

			December 31, 2020												December 31, 2019
			Carrying Amount						Fair Value						Carrying Amount						Fair Value
			(in millions)
Financing receivables			$18,457						$18,726						$19,428						$19,375
Debt			$26,053						$26,630						$24,854						$25,249

Schedule of investments measured on nonrecurring basis

The following tables present the fair value for nonrecurring Level 3 measurements from impairments as of September 30, 2020 and 2019:

			Fair Value												Losses
			2020						2019						2020						2019
			(in millions)
Property, plant and equipment			$	107					$	—					$	163					$	—
Other intangible assets			$	—					$	—					$	92					$	—

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