CNH Industrial NV
For the period ended Dec 31, 2024. Filed Feb 28, 2025.
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FY2024 · Filed Feb 28, 2025
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Other Liabilities
Note 14: Other Liabilities
A summary of “Other liabilities” as of December 31, 2024 and 2023 is as follows:
| (in millions of dollars) | 2024 | 2023 |
|---|---|---|
| Warranty and campaign programs | $633 | $610 |
| Marketing and sales incentive programs | 2,075 | 2,433 |
| Tax payables | 243 | 704 |
| Accrued expenses and deferred income | 917 | 946 |
| Accrued employee benefits | 376 | 524 |
| Lease liabilities | 282 | 300 |
| Legal reserves and other provisions | 390 | 342 |
| Contract liabilities | 72 | 50 |
| Restructuring reserve | 30 | 43 |
| Other | 345 | 355 |
| Total | $5,363 | $6,307 |
Warranty and Campaign Program
As described in "Note 2: Summary of Significant Accounting Policies," CNH pays for basic warranty and other service action costs. A summary of recorded activity for the basic warranty and campaign program accrual for the years ended December 31, 2024 and 2023 are as follows:
| (in millions of dollars) | 2024 | 2023 |
|---|---|---|
| Balance at beginning of year | $610 | $544 |
| Current year additions | 628 | 566 |
| Claims paid | (570) | (510) |
| Currency translation adjustment and other | (35) | 10 |
| Balance at end of year | $633 | $610 |
Restructuring Provision
The Company’s restructuring program announced in November 2023 targeted both labor and non-labor SG&A expenses. This program was completed in 2024, and the Company has incurred a total of $128 million from launch to December 31, 2024, under this program.
The Company incurred restructuring costs of $118 million, $67 million and $31 million for the years ended December 31, 2024, 2023 and 2022, respectively. These costs were as follows:
In 2024, Agriculture, Construction and Financial Services recorded $104 million, $13 million and $1 million respectively.
In 2023, Agriculture, Construction and Financial Services recorded $51 million, $14 million and $2 million, respectively.
In 2022, Agriculture and Construction recorded $21 million and $10 million, respectively.
The following table sets forth restructuring activity for the years ended December 31, 2024, 2023 and 2022:
| (in millions of dollars) | Severance and Other Employee Costs | Facility RelatedCosts | OtherRestructuring | Total |
|---|---|---|---|---|
| Balance at January 1, 2022 | $17 | $11 | $1 | $29 |
| Restructuring charges | 23 | 4 | 4 | 31 |
| Reserves utilized: cash | (12) | (3) | (3) | (18) |
| Reserves utilized: non-cash | (2) | (9) | — | (11) |
| Currency translation adjustments | (1) | — | — | (1) |
| Balance at December 31, 2022 | 25 | 3 | 2 | 30 |
| Restructuring charges | 36 | 23 | 8 | 67 |
| Reserves utilized: cash | (19) | (23) | (12) | (54) |
| Reserves utilized: non-cash | (3) | 1 | 2 | — |
| Currency translation adjustments | — | — | — | — |
| Balance at December 31, 2023 | 39 | 4 | — | 43 |
| Restructuring charges | 81 | 17 | 20 | 118 |
| Reserves utilized: cash | (99) | (5) | (14) | (118) |
| Reserves utilized: non-cash | (2) | (5) | (7) | (14) |
| Currency translation adjustments | (4) | (3) | 8 | 1 |
| Balance at December 31, 2024 | $15 | $8 | $7 | $30 |
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