CNH Industrial SEC Filings

6-K
CNH INDUSTRIAL N.V. filed this Form 6-K on 11/06/2017
Entire Document
 

Financial Statement Impact of CNH Industrial Derivatives

The fair values of CNH Industrial’s derivatives as of September 30, 2017 and December 31, 2016 in the condensed consolidated balance sheets are recorded as follows:

 

 

September 30, 2017

 

 

December 31, 2016

 

 

 

(in millions)

 

Derivatives Designated as Hedging Instruments

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Foreign exchange contracts

 

$

50

 

 

$

47

 

Interest rate derivatives

 

 

10

 

 

 

15

 

Total assets

 

$

60

 

 

$

62

 

Liabilities

 

 

 

 

 

 

 

 

Foreign exchange contracts

 

$

(51

)

 

$

(105

)

Interest rate derivatives

 

 

(12

)

 

 

(17

)

Total liabilities

 

$

(63

)

 

$

(122

)

Derivatives Not Designated as Hedging Instruments

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Foreign exchange contracts

 

$

25

 

 

$

31

 

Interest rate derivatives

 

 

4

 

 

 

2

 

Total assets

 

$

29

 

 

$

33

 

Liabilities

 

 

 

 

 

 

 

 

Foreign exchange contracts

 

$

(17

)

 

$

(116

)

Interest rate derivatives

 

 

(4

)

 

 

(11

)

Total liabilities

 

$

(21

)

 

$

(127

)

Pre-tax gains (losses) on the condensed consolidated statements of operations related to CNH Industrial’s derivatives for the three and nine months ended September 30, 2017 and 2016 are recorded in the following accounts:

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(in millions)

 

 

(in millions)

 

Fair Value Hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate derivatives—Interest expense

 

$

 

 

$

(10

)

 

$

(7

)

 

$

(8

)

Gains/(losses) on hedged items—Interest expense

 

$

 

 

$

10

 

 

$

7

 

 

$

8

 

Cash Flow Hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recognized in accumulated other comprehensive income (effective portion):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange contracts—accumulated other

   comprehensive income

 

$

13

 

 

$

4

 

 

$

37

 

 

$

5

 

Interest rate derivatives—accumulated other

   comprehensive income

 

$

(1

)

 

$

(1

)

 

$

4

 

 

$

14

 

Reclassified from accumulated other comprehensive income (effective portion):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange contracts—Net sales

 

$

2

 

 

$

18

 

 

$

4

 

 

$

38

 

Foreign exchange contracts—Cost of goods sold

 

$

(9

)

 

$

(5

)

 

$

(43

)

 

$

17

 

Foreign exchange contracts—Other, net

 

$

4

 

 

$

(1

)

 

$

8

 

 

$

5

 

Interest rate derivatives—Interest expense

 

$

(1

)

 

$

 

 

$

(2

)

 

$

(3

)

Not Designated as Hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange contracts—Other, net

 

$

(11

)

 

$

(33

)

 

$

13

 

 

$

(147

)

 

23