v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of sources of income before taxes in equity in income of unconsolidated subsidiaries and affiliates
The sources of income before taxes and equity in income of unconsolidated affiliates for the years ended December 31, 2025, 2024 and 2023 are as follows (in millions of dollars):
Years Ended December 31,
202520242023
Parent country source$(386)$(36)$(48)
Foreign sources1,006 1,493 2,751 
Consolidated income before income taxes
$620 $1,457 $2,703 
Schedule of income tax provision
The provision for income taxes for the years ended December 31, 2025, 2024 and 2023 consisted of the following (in millions of dollars):
Years Ended December 31,
202520242023
Parent country source
$13 $29 $18 
Foreign sources
367 413 1,100 
Total current income taxes
380 442 1,118 
Parent country source
(35)(43)(107)
Foreign sources
(161)(63)(417)
Total deferred income taxes
(196)(106)(524)
Total income tax provision
$184 $336 $594 
Schedule of reconciliation of income tax expense
Reconciliation of CNH's income tax expense for the year ended December 31, 2025 in accordance with the guidance in ASU 2023-09 is presented in the following table (in millions of dollars):
Years Ended December 31,
2025
Consolidated income taxes
$620 
Amount Percent
U.K. Federal Statutory Tax Rate$155 25.0 %
Foreign Tax Effects
Argentina
Hyper-inflationary tax impacts15 2.4 %
Statutory tax rate difference10 1.6 %
Valuation allowance
(13)(2.1)%
Other(2)(0.3)%
Brazil
NID(1)
(11)(1.8)%
Other1 0.2 %
Italy11 1.8 %
U.S.
Tax incentives(20)(3.2)%
Functional Currency(42)(6.8)%
Other(11)(1.8)%
Total Other Jurisdictions14 2.3 %
Effect of Cross-Border Tax Laws
NID(1)
11 1.8%
Other
4 0.6%
Valuation Allowance8 1.3%
Nontaxable or Nondeductible Items
Functional Currency50 8.1 %
Other Adjustments2 0.3 %
Changes in Unrecognized Tax Benefits11 1.8 %
Other Adjustments(9)(1.5)%
Total $184 29.7 %
(1)Notional interest deduction on qualifying equity under local tax law.
Reconciliations of CNH's income tax expense in accordance with the guidance prior to the adoption of ASU 2023-09 for the years ended December 31, 2024 and 2023 are as follows (in millions of dollars):
Years Ended December 31,
20242023
Tax provision at the parent statutory rate$364 $635 
Foreign income taxed at different rates37 73 
Change in valuation allowance(7)(117)
Tax contingencies69 66 
Tax credits and incentives(88)(136)
Hyper-inflationary tax impacts
(64)27 
Withholding taxes
26 28 
Other
(1)18 
Total income tax provision
$336 $594 
Schedule of components of net deferred tax assets
The components of net deferred tax assets as of December 31, 2025 and 2024 are as follows (in millions of dollars):
As of December 31,
20252024
Deferred tax assets:
Warranty and campaigns$88 $99 
Allowance for credit losses208 158 
Marketing and sales incentive programs465 504 
Other risk and future charges reserve48 46 
Pension, postretirement and postemployment benefits86 82 
Leasing liabilities67 68 
Research and development costs334 293 
Other reserves258 200 
Tax credits and loss carry forwards319 293 
Other
2 — 
Less: Valuation allowances(209)(183)
Total deferred tax assets1,666 1,560 
Deferred tax liabilities:
Property, plant and equipment278 365 
Intangibles144 183 
Inventories54 33 
Other— 80 
Total deferred tax liabilities476 661 
Net deferred tax assets$1,190 $899 
Net deferred tax assets are reflected in the accompanying Consolidated Balance Sheets as of December 31, 2025 and 2024 as follows (in millions of dollars):
As of December 31,
20252024
Deferred tax assets$1,207 $927 
Deferred tax liabilities(17)(28)
Net deferred tax assets$1,190 $899 
Schedule of Income Taxes Paid, Net of Refunds
Income taxes paid, net of refunds, by jurisdiction for the years ended December 31, 2025, 2024 and 2023 were as follows:
Years Ended December 31,
202520242023
United Kingdom$— $(5)$4 
Foreign:
Austria(12)52 36 
Brazil55 109 203 
Canada37 52 90 
India28 30 28 
Italy3 28 43 
United States67 375 266 
All other foreign49 128 132 
Total
$227 $769 $802 
Schedule of reconciliation of the gross amounts of tax contingencies
A reconciliation of the gross amounts of tax contingencies at the beginning and end of the year is as follows (in millions of dollars):
Years Ended December 31,
20252024
Balance at beginning of year$268 $234 
Additions based on tax positions related to the current year22 36 
Additions for tax positions of prior years9 16 
Reductions for tax positions of prior years(1)(6)
Reductions for tax positions as a result of lapse of statute(24)(12)
Settlements(3)— 
Balance at end of year$271 $268