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FINANCIAL INSTRUMENTS (Tables)
 3 Months Ended
Mar. 31, 2022
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 recognized in accumulated other comprehensive income (loss) and net income (loss) during the three months ended March 31, 2022 and 2021 (in millions):
Recognized in Net Income
For the Three Months Ended March 31,Gain (Loss) Recognized in Accumulated Other Comprehensive IncomeClassification of Gain (Loss)Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
2022
Foreign exchange contracts$(150)
Net sales1 
Cost of goods sold(17)
Other, net(10)
Interest rate contracts37 Interest expense8 
Total$(113)$(18)
2021
Foreign exchange contracts$(26)
Net sales(2)
Cost of goods sold25 
Other, net(7)
Interest rate contracts20 Interest expense(2)
Total$(6)$14 
Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three months ended March 31, 2022 and 2021 consisted of the following:
Amounts Reclassified from Other
Comprehensive Income (Loss)		Consolidated Statement
of Operations Line
Three Months Ended March 31,
20222021
(in millions)
Cash flow hedges$(1)$2 Net sales
17 (25)Cost of goods sold
10 7 Other, net
(8)2 Interest expense
(2)1 Income taxes
$16 $(13)
Change in retirement plans’ funded status:
Amortization of actuarial losses$5 $9 *
Amortization of prior service cost(31)(32)*
(7)(7)Income taxes
$(33)$(30)
Total reclassifications, net of tax$(17)$(43)
(*) These amounts are included in net periodic pension and other postretirement benefit cost. See “Note 6: 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 three months ended March 31, 2022 and 2021:
In MillionsBefore-Tax AmountIncome TaxAfter-Tax Amount
Accumulated derivative net losses as of December 31, 2021$(3)$(14)$(17)
Impact of demerger19 — 19 
Net changes in fair value of derivatives(113)2 (111)
Net losses reclassified from accumulated other comprehensive income into income18 (2)16 
Accumulated derivative net losses as of March 31, 2022$(79)$(14)$(93)

In MillionsBefore-Tax AmountIncome TaxAfter-Tax Amount
Accumulated derivative net losses as of December 31, 2020$(5)$(1)$(6)
Net changes in fair value of derivatives(6)(1)(7)
Net losses reclassified from accumulated other comprehensive income into income(14)1 (13)
Accumulated derivative net losses as of March 31, 2021$(25)$(1)$(26)
The following tables summarize the impact that changes in the fair value of fair value hedges and derivatives not designated as hedging instruments had on earnings (in millions):
For the Three Months Ended March 31,
Classification of Gain20222021
Fair Value Hedges
Interest rate derivativesInterest expense$(55)$(21)
Not Designated as Hedges
Foreign exchange contractsOther, Net$(47)$(4)
Summary of Fair Value of Derivatives
The fair values of CNH Industrial’s derivatives as of March 31, 2022 and December 31, 2021 in the condensed consolidated balance sheets are recorded as follows:
March 31, 2022December 31, 2021
in millions of dollarsBalance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivatives designated as hedging instruments under Subtopic 815-20
Interest rate contractsDerivative assets75 Derivative assets65 
Foreign currency contractsDerivative assets15 Derivative assets77 
Total derivative assets designated as hedging instruments90 142 
Interest rate contractsDerivative liabilities72 Derivative liabilities28 
Foreign currency contractsDerivative liabilities169 Derivative liabilities101 
Total derivative liabilities designated as hedging instruments241 129 
Derivatives not designated as hedging instruments under Subtopic 815-20
Interest rate contractsDerivative assets48 Derivative assets11 
Foreign currency contractsDerivative assets78 Derivative assets29 
Total derivative assets not designated as hedging instruments126 40 
Interest rate contractsDerivative liabilities48 Derivative liabilities12 
Foreign currency contractsDerivative liabilities92 Derivative liabilities40 
Total derivative liabilities not designated as hedging instruments140 52 
Summary of Investments Measured on Recurring Basis
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 March 31, 2022 and December 31, 2021:
Level 1Level 2Total
March 31, 2022December 31, 2021March 31, 2022December 31, 2021March 31, 2022December 31, 2021
(in millions)
Assets
Foreign exchange derivatives$— $— $93 $106 $93 $106 
Interest rate derivatives— — 123 76 123 76 
Total Assets$— $— $216 $182 $216 $182 
Liabilities
Foreign exchange derivatives$— $— $261 $141 $261 $141 
Interest rate derivatives— — 120 40 120 40 
Total Liabilities$— $— $381 $181 $381 $181 
Summary of Investments Measured on Nonrecurring Basis
The following tables present the fair value for nonrecurring Level 3 measurements from impairments as of March 31, 2022 and 2021:
Fair ValueLosses
2022202120222021
(in millions)
Property, plant and equipment$7 $— $17 $— 
Summary of Estimated Fair Market Values
The estimated fair market values of financial instruments not carried at fair value in the condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021 are as follows:
March 31, 2022December 31, 2021
Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
(in millions)
Financing receivables$16,083 $16,225 $15,376 $15,605 
Debt$21,335 $21,138 $20,897 $21,091