v3.25.2
FINANCIAL INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of 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 and six months ended June 30, 2025 and 2024 (in millions of dollars):
Recognized in Net Income
For the Three Months Ended June 30,Gain (Loss) Recognized in Accumulated Other Comprehensive IncomeClassification of Gain (Loss)Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
2025
Foreign exchange contracts$46 
Net sales(2)
Cost of goods sold5 
Other, net— 
Interest rate contracts(22)Interest expense7 
Total$24 $10 
2024
Foreign exchange contracts$(15)
Net sales(2)
Cost of goods sold(14)
Other, net(9)
Interest rate contracts47 Interest expense(7)
Total$32 $(32)
Recognized in Net Income
For the Six Months Ended June 30,Gain (Loss) Recognized in Accumulated Other Comprehensive IncomeClassification of Gain (Loss)Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
2025
Foreign exchange contracts$37 
Net sales(4)
Cost of goods sold(3)
Other, net(4)
Interest rate contracts(35)Interest expense10 
Total$2 $(1)
2024
Foreign exchange contracts$(19)
Net sales(3)
Cost of goods sold(18)
Other, net(3)
Interest rate contracts58 Interest expense(12)
Total$39 $(36)
Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) in the three and six months ended June 30, 2025 and 2024 consisted of the following (in millions of dollars):
Amounts Reclassified from Other
Comprehensive Income (Loss)		Consolidated Statement
of Operations Line
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Cash flow hedges$2 $2 $4 $3 Net sales
(5)14 3 18 Cost of goods sold
— 9 4 3 Other, net
(7)7 (10)12 Interest expense
1 (1)— (2)Income taxes
(9)31 1 34 
Change in retirement plans' funded status:
Amortization of actuarial losses5 5 10 10 
(1)
Amortization of prior service cost(4)(6)(9)(12)
(1)
(1)— (1)1 Income taxes
— (1)— (1)
Total reclassifications, net of tax$(9)$30 $1 $33 
(1)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.
Schedule 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 six months ended June 30, 2025 and 2024 (in millions of dollars):
Before-Tax AmountIncome TaxAfter-Tax Amount
Accumulated derivative net income at December 31, 2024$115 $(43)$72 
Net changes in fair value of derivatives3 6 9 
Net income reclassified from accumulated other comprehensive income into income1 — 1 
Accumulated derivative net losses at June 30, 2025$119 $(37)$82 
Accumulated derivative net losses at December 31, 2023$(19)$9 $(10)
Net changes in fair value of derivatives39 (22)17 
Net income reclassified from accumulated other comprehensive income into income36 (2)34 
Accumulated derivative net losses at June 30, 2024$56 $(15)$41 
The following tables summarize the impact related to changes in the fair value of fair value hedges and derivatives not designated as hedges during the three and six months ended June 30, 2025 and 2024 (in millions of dollars):
For the Three Months Ended June 30,
Classification of Gain (Loss)20252024
Fair Value Hedges
Interest rate derivativesInterest expense$9 $1 
Not Designated as Hedges
Foreign exchange contractsOther, Net$11 $(34)
For the Six Months Ended June 30,
Classification of Gain (Loss)20252024
Fair Value Hedges
Interest rate derivativesInterest expense$35 $(3)
Not Designated as Hedges
Foreign exchange contractsOther, Net$22 $(44)
Schedule of Fair Value of Derivatives
The fair values of CNH's derivatives as of June 30, 2025 and December 31, 2024 in the consolidated balance sheets are recorded as follows (in millions of dollars):
June 30, 2025December 31, 2024
Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivatives designated as hedging instruments
Foreign currency contractsDerivative assets$49 Derivative assets$44 
Interest rate contractsDerivative assets96 Derivative assets103 
Total derivative assets $145 $147 
Foreign currency contractsDerivative liabilities$18 Derivative liabilities$51 
Interest rate contractsDerivative liabilities53 Derivative liabilities58 
Total derivative liabilities $71 $109 
Derivatives not designated as hedging instruments
Foreign currency contractsDerivative assets$12 Derivative assets$27 
Interest rate contractsDerivative assets11 Derivative assets22 
Total derivative assets $23 $49 
Foreign currency contractsDerivative liabilities$8 Derivative liabilities$15 
Interest rate contractsDerivative liabilities11 Derivative liabilities22 
Total derivative liabilities$19 $37 
Schedule of Investments Measured on Recurring Basis
The following tables present for each of the fair value hierarchy levels the Company's assets and liabilities that are measured at fair value on a recurring basis at June 30, 2025 and December 31, 2024 (in millions of dollars):
Level 1Level 2Total
June 30,
2025		December 31, 2024June 30,
2025		December 31, 2024June 30,
2025		December 31, 2024
Assets
Foreign exchange derivatives$— $— $61 $71 $61 $71 
Interest rate derivatives— — 107 125 107 125 
Total Assets$— $— $168 $196 $168 $196 
Liabilities
Foreign exchange derivatives$— $— $26 $66 $26 $66 
Interest rate derivatives— — 64 80 64 80 
Total Liabilities$— $— $90 $146 $90 $146 
Schedule 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 June 30, 2025, and December 31, 2024, were as follows (in millions of dollars):
June 30, 2025December 31, 2024
Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
Financing receivables$23,387 $23,264 $23,085 $22,920 
Debt$27,408 $27,858 $26,882 $27,222