v3.25.4
Receivables
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Receivables Receivables
Trade Receivables, net
As of December 31, 2025 and 2024, the Company had trade receivables of $226 million and $125 million, respectively. Trade receivables are shown net of allowances for credit losses of $27 million and $21 million at December 31, 2025 and 2024 respectively. Trade accounts have significant concentrations of credit risk in the Agriculture and Construction segments. There is not a disproportionate concentration of credit risk in any geographic region.
The Industrial Activities businesses sell a significant portion of their trade receivables to Financial Services and provide compensation to Financial Services at approximate market interest rates.
Financing Receivables, net
A summary of financing receivables included in the Consolidated Balance Sheets as of December 31, 2025 and 2024 is as follows (in millions of dollars):
As of December 31,
20252024
Retail$14,616 $14,297 
Wholesale8,437 8,749 
Other52 39 
Total$23,105 $23,085 
Included in the financing receivables balance at December 31, 2025 and 2024, is unearned finance income and unamortized deferred fees and costs of $722 million and $533 million, respectively, and allowance for credit losses of $572 million and $424 million, respectively.
CNH provides and administers retail note and lease financing to end-use customers for the purchase of new and used equipment and components sold through its dealer network, as well as revolving charge account financing. The terms of retail notes and finance leases generally range from two to seven years, and interest rates vary depending on the prevailing market interest rates and certain incentive programs offered on behalf of and sustained by Industrial Activities. Revolving charge accounts are generally accompanied by higher interest rates than the Company's other retail financing products, require minimum monthly payments and do not have pre-determined maturity dates.
Wholesale receivables arise primarily from dealer floorplan financing, and to a lesser extent, from the financing of dealer operations. Under the standard terms of the wholesale receivable agreements, these receivables typically have "interest-free" periods of up to twelve months and stated original maturities of up to twenty-four months, with repayment accelerated upon the sale of the underlying equipment by the dealer. During the interest-free period, Financial Services is compensated by Industrial Activities based on market interest rates. After the expiration of any "interest-free" period, interest is charged to dealers on outstanding balances until CNH receives payment in full. The "interest-free" periods are determined based on the type of equipment sold and the time of year of the sale. The Company evaluates and assesses dealers on an ongoing basis as to their creditworthiness. CNH may be obligated to repurchase the dealer's equipment upon cancellation or termination of the dealer's contract for such causes as change in ownership, closeout of the business, or default. There were no significant losses in 2025, 2024 or 2023 relating to the termination of dealer contracts.
Maturities of financing receivables as of December 31, 2025 are as follows (in millions of dollars):
As of December 31, 2025
2026$14,158 
20273,263 
20282,497 
20291,747 
20301,025 
2031 and thereafter415 
Total$23,105 
It has been the Company's experience that substantial portions of retail receivables, which include retail notes and finance leases, are repaid before their contractual maturity dates. As a result, the above table should not be regarded as a forecast of future cash collections. Financing receivables has significant concentrations of credit risk in the agriculture and construction business sectors. On a geographic basis, there is not a disproportionate concentration of credit risk in any area. The Company typically retains, as collateral, a security interest in the equipment associated with retail and wholesale receivables, while revolving charge accounts are generally unsecured.
Transfers of Financial Assets
As part of its overall funding strategy, CNH periodically transfers certain receivables into bankruptcy-remote special purpose entities ("SPEs") as part of its asset-backed securitization ("ABS") programs or through factoring transactions.
Assets transferred to SPEs are legally isolated and their related cash flows are restricted to satisfy the SPEs’ obligations. The SPEs, including certain VIE trusts, are consolidated as CNH has both the power to direct their significant activities and exposure to potentially significant benefits or losses. Accordingly, transfers to these entities do not qualify for sale accounting and are recorded as secured borrowings.
CNH may retain subordinated interests but does not guarantee securities issued by the trusts. CNH provides customary representations and warranties, which may require it to repurchase receivables if those representations or warranties are breached. The trusts generally terminate upon final investor distributions or exercise of a cleanup call.
Factoring transactions may be with or without recourse. Transfers that include deferred purchase price features, first‑loss positions, or other forms of continuing involvement do not meet the criteria for derecognition. In those cases, CNH continues to recognize the receivables and records a corresponding liability within asset‑backed financing.
The secured borrowings related to the transferred receivables are obligations that are payable as the receivables are collected. At December 31, 2025 and 2024, the carrying amount of such restricted assets included in financing receivables are the following (in millions of dollars):
As of December 31,
20252024
Retail$8,041 $8,692 
Wholesale5,053 5,246 
Total$13,094 $13,938 
Allowance for Credit Losses
CNH's allowance for credit losses is segregated into two portfolio products: retail and wholesale. A portfolio product is the level at which CNH develops a systematic methodology for determining its allowance for credit losses. Further, the class
of receivables by which CNH evaluates its portfolio products is by geographic region. Typically, CNH's receivables within a geographic area have similar risk profiles and methods for assessing and monitoring risk. The classes align with management reporting.
Allowance for credit losses activity for the year ended December 31, 2025, is as follows (in millions of dollars):
Year Ended December 31, 2025
RetailWholesale
Balance at beginning of year$376 $48 
Provision310 3 
Charge-offs(229)(4)
Recoveries31 3 
Foreign currency translation and other30 4 
Balance at end of year$518 $54 
For the period ended on December 31, 2025, the allowance for credit losses included an increase in retail reserves of $121 million for Brazil as compared to December 31, 2024. This increase reflects Brazilian market conditions, primarily related to current crop prices, flooding, and drought events. CNH plans to continue updating the macroeconomic factors in future periods, as warranted. The provision for credit losses is included in "Selling, general and administrative" expenses in the Consolidated Statements of Operations.
Allowance for credit losses activity for the year ended December 31, 2024, is as follows (in millions of dollars):
Year Ended December 31, 2024
RetailWholesale
Balance at beginning of year$310 $53 
Provision201 3 
Charge-offs(89)(7)
Recoveries6 3 
Foreign currency translation and other(52)(4)
Balance at end of year$376 $48 
Allowance for credit losses activity for the year ended December 31, 2023, is as follows (in millions of dollars):
Year Ended December 31, 2023
RetailWholesale
Balance at beginning of year$270 $64 
Provision86 (6)
Charge-offs(42)(5)
Recoveries4 — 
Foreign currency translation and other(8)— 
Balance at end of year$310 $53 
CNH assesses and monitors the credit quality of its financing receivables based on delinquency status. Receivables are considered past due if the required principal and interest payments have not yet been received as of the date such payments were due. Delinquency is reported on financing receivables greater than 30 days past due. Non-performing financing receivables represent receivables for which CNH has ceased accruing finance income. These receivables are generally over 90 days past due. Accrued interest is charged off to interest income. Interest income charged-off was not material for the year ended December 31, 2025.
Interest accrual is resumed if the receivable becomes contractually current and collection becomes probable. Previously suspended income is recognized at that time. As the terms for retail financing receivables are greater than one year, the performing/non-performing information is presented by year of origination for North America, South America and Asia Pacific.
The aging of financing receivables and charge-offs by vintage, net of allowance for credit losses, as of December 31, 2025, is as follows (in millions of dollars):
31-60 Days
Past Due
61-90 Days
Past Due
Total Past
Due
Current
Total
Performing
Non-
Performing
TotalGross Charge-offs
Retail
North America
2025$4,270 $9 $4,279 $7 
20242,549 15 2,564 17 
20231,343 9 1,352 23 
2022729 5 734 10 
2021374 2 376 3 
Prior to 202172 2 74 4 
Total60 3 63 9,274 9,337 42 9,379 64 
South America
20251,031 4 1,035 13 
20241,017 54 1,071 53 
2023826 84 910 70 
2022331 41 372 20 
2021159 12 171 4 
Prior to 202176 5 81 3 
Total42 30 72 3,368 3,440 200 3,640 163 
Asia Pacific
2025641 — 641 — 
2024426 1 427 — 
2023277 1 278 — 
2022164 — 164 — 
202160 — 60 1 
Prior to 202112 — 12 1 
Total3 3 6 1,574 1,580 2 1,582 2 
EMEA— — — 4 4 11 15 — 
Total Retail$105 $36 $141 $14,220 $14,361 $255 $14,616 $229 
Wholesale
North America$— $— $— $4,142 $4,142 $17 $4,159 $— 
South America3 — 3 1,251 1,254 — 1,254 — 
Asia Pacific2 2 4 877 881 1 882 1 
EMEA6 3 9 2,133 2,142 — 2,142 3 
Total Wholesale$11 $5 $16 $8,403 $8,419 $18 $8,437 $4 
The aging of financing receivables and charge-offs by vintage, net of allowance for credit losses, as of December 31, 2024, is as follows (in millions of dollars):
31-60 Days
Past Due
61-90 Days
Past Due
Total Past
Due
Current
Total
Performing
Non-
Performing
TotalGross Charge-offs
Retail
North America
2024$4,485 $5 $4,490 $5 
20232,145 6 2,151 12 
20221,421 4 1,425 9 
2021766 2 768 5 
2020249 1 250 3 
Prior to 202058 1 59 3 
Total64 4 68 9,056 9,124 19 9,143 37 
South America
20241,400 5 1,405 — 
20231,255 26 1,281 2 
2022518 26 544 24 
2021287 8 295 12 
2020127 2 129 4 
Prior to 202065 1 66 3 
Total29 1 30 3,622 3,652 68 3,720 45 
Asia Pacific
2024563 — 563 — 
2023402 1 403 1 
2022276 1 277 1 
2021129 — 129 1 
202041 — 41 2 
Prior to 20203 — 3 2 
Total4 3 7 1,407 1,414 2 1,416 7 
EMEA— — — 11 11 7 18 — 
Total Retail$97 $8 $105 $14,096 $14,201 $96 $14,297 $89 
Wholesale
North America$— $— $— $4,817 $4,817 $23 $4,840 $— 
South America— — — 1,048 1,048 — 1,048 — 
Asia Pacific2 1 3 883 886 1 887 2 
EMEA7 — 7 1,967 1,974 — 1,974 5 
Total Wholesale$9 $1 $10 $8,715 $8,725 $24 $8,749 $7 
Modifications
CNH periodically modifies the terms of finance receivable agreements with customers experiencing financial difficulties. Typically, the types of modifications granted are payment deferrals, extended contract maturities, modification of a contractual interest rate or waiving of interest and principal. As a collateral-based lender, CNH has recourse to the financed assets on default. The Company continues to monitor the credit quality of these modified financing receivables. CNH's allowance for credit losses incorporates historical loss information, including the effects of the modified financing receivables. Therefore, additional adjustments to the allowance are generally not recorded upon modification of the financing receivable.
As of December 31, 2025, modifications of CNH's retail and wholesale receivables for customers experiencing financial difficulties and defaults and subsequent write-offs of receivables modified for the year ended December 31, 2025 were immaterial.
Due to conditions in the Brazilian market, including crop prices and extreme weather events like flooding and drought, CNH has offered payment refinancing to South American customers. These refinancings are not deemed to be modifications as they are insignificant adjustments to the contract. To qualify, customers must make partial payments on their outstanding installments. As of December 31, 2025, $126 million of installments were refinanced relating to $513 million of retail Agricultural receivables in South America. As of December 31, 2024, $95 million of installments were refinanced relating to $380 million of retail Agricultural receivables in South America. As of December 31, 2025, these refinancings demonstrated a higher delinquency rate, specifically those greater than 90 days past due, compared to non-refinanced receivables within the portfolio. CNH has taken this into account when provisioning for credit losses.