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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Other Liabilities
Note 13: Other Liabilities
A summary of “Other liabilities” as of December 31, 2023 and 2022 is as follows:
| (in millions of dollars) | 2023 | 2022 |
|---|---|---|
| Warranty and campaign programs | $610 | $544 |
| Marketing and sales incentive programs | 2,409 | 1,556 |
| Tax payables | 704 | 506 |
| Accrued expenses and deferred income | 946 | 700 |
| Accrued employee benefits | 524 | 535 |
| Lease liabilities | 300 | 228 |
| Legal reserves and other provisions | 342 | 263 |
| Contract reserve | 24 | 16 |
| Contract liabilities | 50 | 33 |
| Restructuring reserve | 43 | 30 |
| Other | 355 | 436 |
| Total | $6,307 | $4,847 |
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, 2023 and 2022 are as follows:
| (in millions of dollars) | 2023 | 2022 |
|---|---|---|
| Balance at beginning of year | $544 | $526 |
| Current year additions | 566 | 475 |
| Claims paid | (510) | (440) |
| Currency translation adjustment and other | 10 | (17) |
| Balance at end of year | $610 | $544 |
Restructuring Provision
The Company incurred restructuring costs of $67 million, $31 million and $35 million for the years ended December 31, 2023, 2022 and 2021, respectively. These costs were as follows:
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.
In 2021, Agriculture and Construction recorded $20 million and $15 million, respectively.
The following table sets forth restructuring activity for the years ended December 31, 2023, 2022 and 2021:
| (in millions of dollars) | Severance and Other Employee Costs | Facility RelatedCosts | OtherRestructuring | Total |
|---|---|---|---|---|
| Balance at January 1, 2021 | $5 | $18 | $3 | $26 |
| Restructuring charges | 34 | — | 1 | 35 |
| Reserves utilized: cash | (30) | (1) | (1) | (32) |
| Reserves utilized: non-cash | 8 | (6) | (2) | — |
| Currency translation adjustments | — | — | — | — |
| Balance at December 31, 2021 | 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 |
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