CNH Industrial NV
For the period ended Dec 31, 2023. Filed Feb 29, 2024.
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FY2023 · Filed Feb 29, 2024
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Accumulated Other Comprehensive Income (Loss)
Note 19: Accumulated Other Comprehensive Income (Loss)
The Company’s share of comprehensive income (loss) includes net income plus other comprehensive income, which includes changes in fair value of certain derivatives designated as cash flow hedges, certain changes in pension and other retirement benefit plans, foreign currency translation gains and losses, changes in the fair value of available-for-sale securities, the Company’s share of other comprehensive income of entities accounted for using the equity method, and reclassifications for amounts included in net income less net income and other comprehensive income attributable to the noncontrolling interest. For more information on the Company’s derivative instruments, see “Note 15: Financial Instruments”. For more information on the Company’s pensions and retirement benefit obligations, see “Note 12: Employee Benefit Plans and Postretirement Benefits”. The Company’s other comprehensive income (loss) amounts are aggregated within accumulated other comprehensive income (loss). The tax effect for each component of other comprehensive income (loss) consisted of the following:
| (in millions of dollars) | GrossAmount | IncomeTaxes | NetAmount |
|---|---|---|---|
| Unrealized gain (loss) on cash flow hedges | $(90) | $34 | $(56) |
| Changes in retirement plans’ funded status | (87) | 21 | (66) |
| Foreign currency translation | 40 | — | 40 |
| Share of other comprehensive loss of entities using the equity method | (11) | — | (11) |
| Other comprehensive income (loss) | $(148) | $55 | $(93) |
| (in millions of dollars) | GrossAmount | IncomeTaxes | NetAmount |
|---|---|---|---|
| Unrealized gain (loss) on cash flow hedges | $56 | $(12) | $44 |
| Changes in retirement plans’ funded status | 29 | 12 | 41 |
| Foreign currency translation | 158 | — | 158 |
| Share of other comprehensive loss of entities using the equity method | (25) | — | (25) |
| Other comprehensive income (loss) | $218 | $— | $218 |
| (in millions of dollars) | GrossAmount | IncomeTaxes | NetAmount |
|---|---|---|---|
| Unrealized gain (loss) on cash flow hedges | $2 | $(13) | $(11) |
| Changes in retirement plans’ funded status | 109 | (15) | 94 |
| Foreign currency translation | 247 | — | 247 |
| Share of other comprehensive loss of entities using the equity method | (93) | — | (93) |
| Other comprehensive income (loss) | $265 | $(28) | $237 |
The changes, net of tax, in each component of accumulated other comprehensive income (loss) consisted of the following:
| (in millions of dollars) | UnrealizedGain (Loss) onCash FlowHedges | Change inRetirement Plans’Funded Status | Foreign CurrencyTranslation | Share of OtherComprehensiveIncome ofEntities Usingthe EquityMethod | Total |
|---|---|---|---|---|---|
| Balance, December 31, 2020 | $(6) | $(653) | $(1,884) | $(133) | $(2,676) |
| Other comprehensive income (loss), before reclassifications | (20) | 202 | 241 | (93) | 330 |
| Amounts reclassified from other comprehensive income | 9 | (108) | — | — | (99) |
| Other comprehensive income (loss)1 | (11) | 94 | 241 | (93) | 231 |
| Balance, December 31, 2021 | (17) | (559) | (1,643) | (226) | (2,445) |
| Demerger of Iveco Group | 19 | 233 | (316) | 12 | (52) |
| Balance, January 1, 2022 | 2 | (326) | (1,959) | (214) | (2,497) |
| Other comprehensive income (loss), before reclassifications | (126) | 102 | 159 | (25) | 110 |
| Amounts reclassified from other comprehensive income | 170 | (61) | — | — | 109 |
| Other comprehensive income (loss)1 | 44 | 41 | 159 | (25) | 219 |
| Balance, December 31, 2022 | 46 | (285) | (1,800) | (239) | (2,278) |
| Other comprehensive income (loss), before reclassifications | (80) | (54) | 37 | (11) | (108) |
| Amounts reclassified from other comprehensive income | 24 | (12) | — | — | 12 |
| Other comprehensive income (loss)1 | (56) | (66) | 37 | (11) | (96) |
| Balance, December 31, 2023 | $(10) | $(351) | $(1,763) | $(250) | $(2,374) |
(1) Excluded from the table above is other comprehensive (income) loss allocated to noncontrolling interests of $3 million, $(1) million and $6 million for the years ended December 31, 2023, 2022 and 2021, respectively.
Significant amounts reclassified out of each component of accumulated other comprehensive income (loss) at December 31, 2023 and 2022 consisted of the following:
| Amount Reclassified from OtherComprehensive Income (Loss) · Consolidated Statementof Operations line | |||
|---|---|---|---|
| (in millions of dollars) · 2023 · 2022 | |||
| Cash flow hedges | $7 | $1 | Net sales |
| 33 | 219 | Cost of goods sold | |
| (7) | (3) | Other, net | |
| (6) | (30) | Interest expense | |
| (3) | (17) | Income taxes | |
| 24 | 170 | ||
| Change in retirement plans’ funded status: | |||
| Amortization of actuarial losses | 20 | 18 | (1) |
| Amortization of prior service cost | (36) | (126) | (1) |
| 4 | 47 | Income taxes | |
| (12) | (61) | ||
| Total reclassifications, net of tax | $12 | $109 | |
(1) 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.
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