v3.25.4
Employee Benefit Plans and Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Schedule of defined benefit pension, healthcare and other postemployment plans
The following summarizes data from CNH's defined benefit pension, healthcare and other postemployment plans for the years ended December 31, 2025 and 2024 (in millions of dollars):
Pension
Healthcare(1)
Other(1)
Years Ended December 31,Years Ended December 31,Years Ended December 31,
202520242025202420252024
Change in benefit obligations:
Beginning benefit obligation$1,169 $1,274 $186 $179 $81 $100 
Service cost8 10 2 2 4 5 
Interest cost54 52 9 8 3 3 
Plan participants' contributions— 1 2 3 — — 
Actuarial loss (gain)(16)(95)(7)8 (4)(7)
Gross benefits paid(90)(85)(21)(21)(7)(13)
Plan amendments— 16 3 1 (6)(2)
Currency translation adjustments and other
87 (4)1 6 10 (5)
Ending benefit obligation1,212 1,169 175 186 81 81 
Change in the fair value of plan assets:
Beginning plan assets1,018 1,049 60 58 — — 
Actual return on plan assets50 8 5 4 — — 
Employer contributions31 32 — — — — 
Plan participants' contributions1 1 — — — — 
Gross benefits paid(78)(74)(2)(2)— — 
Currency translation adjustments and other
71 2 (15)— — — 
Ending plan assets1,093 1,018 48 60 — — 
Funded status:$(119)$(151)$(127)$(126)$(81)$(81)
(1)The healthcare and other postemployment plans are not required to be prefunded.
Schedule of defined benefit pension plans by significant geographical area
The following summarizes data from CNH's defined benefit pension plans by significant geographical area for the years ended December 31, 2025 and 2024 (in millions of dollars):
U.S.U.K.
Germany(1)
Other Countries(1)
Years Ended December 31,Years Ended December 31,Years Ended December 31,Years Ended December 31,
20252024202520242025202420252024
Change in benefit obligations:
Beginning benefit obligation$141 $139 $756 $825 $98 $117 $174 $193 
Service cost1 1 — — — — 7 9 
Interest cost7 7 39 36 3 3 5 6 
Plan participants' contributions— — — — — — — 1 
Actuarial loss (gain)5 — (9)(87)(4)(5)(8)(3)
Gross benefits paid(6)(6)(58)(51)(11)(11)(15)(17)
Plan amendments— — — 16 — — — — 
Currency translation adjustments and other
— — 55 17 12 (6)20 (15)
Ending benefit obligation148 141 783 756 98 98 183 174 
Change in the fair value of plan assets:
Beginning plan assets162 161 683 707 4 4 169 177 
Actual return on plan assets6 6 34 (13)— — 10 14 
Employer contributions— — 25 25 — — 6 7 
Plan participants' contributions— — — — — — 1 1 
Gross benefits paid(6)(5)(58)(52)— — (14)(17)
Currency translation adjustments and other
— — 52 16 — — 19 (13)
Ending plan assets162 162 736 683 4 4 191 169 
Funded status:$14 $21 $(47)$(73)$(94)$(94)$8 $(5)
(1)Pension benefits in Germany and some other countries are not required to be prefunded.
Schedule of net amounts recognized in consolidated balance sheets
Net amounts recognized in the Consolidated Balance Sheets as of December 31, 2025 and 2024 consist of (in millions of dollars):
PensionHealthcareOther
As of December 31,As of December 31,As of December 31,
202520242025202420252024
Other assets$39 $34 $— $— $— $— 
Pension, postretirement and other postemployment benefits(158)(185)(127)(126)(81)(81)
Net liability recognized at end of year$(119)$(151)$(127)$(126)$(81)$(81)
Schedule of pre-tax amounts recognized in accumulated other comprehensive loss
Pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 2025, consist of (in millions of dollars):
As of December 31, 2025
PensionHealthcareOther
Unrecognized actuarial losses (gains)
$313 $3 $(20)
Unrecognized prior service credit18 1 — 
Accumulated other comprehensive (income) loss
$331 $4 $(20)
Schedule of aggregate pension accumulated benefit obligation
The following table summarizes the aggregate pension accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets (in millions of dollars):
Pension
As of December 31,
20252024
Accumulated benefit obligation$640 $904 
Fair value of plan assets$485 $724 
Schedule of projected benefit obligations in excess of plan assets
The following table summarizes CNH's pension and other postemployment plans with projected benefit obligations in excess of plan assets (in millions of dollars):
PensionHealthcareOther
As of December 31,As of December 31,As of December 31,
202520242025202420252024
Projected benefit obligation$645 $908 $175 $187 $81 $81 
Fair value of plan assets$485 $724 $48 $60 $— $— 
Schedule of net periodic benefit cost
The following summarizes the components of net periodic benefit cost (income) of CNH's defined benefit for the years ended December 31, 2025, 2024 and 2023 (in millions of dollars):
PensionHealthcareOther
Years Ended December 31,Years Ended December 31,Years Ended December 31,
202520242023202520242023202520242023
Service cost$8 $10 $9 $2 $2 $3 $4 $5 $5 
Interest cost54 52 54 9 8 9 3 3 4 
Expected return on assets(49)(54)(45)(3)(3)(4)— — — 
Amortization of:
Prior service cost (credit)1 — — (20)(24)(36)(8)— — 
Actuarial loss (gain)20 22 18 1 — — (1)(3)2 
Settlement loss and other— — 2 — 7 — (6)1 (1)
Net periodic benefit cost (income)
$34 $30 $38 $(11)$(10)$(28)$(8)$6 $10 
Schedule of net periodic benefit cost recognized in net income and other changes in plan assets and benefit obligations
Net periodic benefit cost (income) recognized in net income and other changes in plan assets and benefit obligations that are recognized in other comprehensive loss during the year ended December 31, 2025 consist of (in millions of dollars):
Year Ended December 31, 2025
PensionHealthcareOther
Net periodic benefit cost (income)
$34 $(11)$(8)
Benefit adjustments included in other comprehensive (income) loss:
Net actuarial loss (gain)
(16)(6)(10)
Amortization of actuarial (loss) gain
(20)(1)1 
Amortization of prior service (cost) credit
(1)20 8 
Curtailment of prior service credit
— — 6 
Currency translation adjustments and other22 (1)(2)
Total recognized in other comprehensive (income) loss
(15)12 3 
Total recognized in comprehensive (income) loss
$19 $1 $(5)
Schedule of assumptions utilized in determining the funded status and the net periodic benefit cost
The following assumptions were utilized in determining the funded status at December 31, 2025 and 2024, and the net periodic benefit cost of CNH's defined benefit plans for the years ended December 31, 2025, 2024 and 2023 (in percentages):
Pension plansHealthcare plansOther
Years Ended December 31,Years Ended December 31,Years Ended December 31,
202520242023202520242023202520242023
Weighted-average rate assumptions used to determine funded status
Discount rate4.934.894.224.965.364.973.803.673.50
Rate of compensation increase2.802.802.91n/a4.004.002.713.002.94
Initial healthcare cost trend raten/an/an/a5.465.354.70n/an/an/a
Ultimate healthcare cost trend rate(1)
n/an/an/a4.034.083.74n/an/an/a
Weighted-average rate assumptions used to determine expense
Discount rates—service cost2.772.803.515.595.115.373.873.734.32
Discount rates—interest cost4.664.224.655.074.915.173.613.514.08
Rate of compensation increase2.802.913.034.004.004.003.002.943.19
Long-term rates of return on plan assets4.785.224.545.256.255.75n/an/an/a
Initial healthcare cost trend raten/an/an/a5.354.705.12n/an/an/a
Ultimate healthcare cost trend rate(1)
n/an/an/a4.083.744.00n/an/an/a
 
(1)CNH expects to achieve the ultimate healthcare cost trend rate in 2037 for U.S. plans. A flat trend rate assumption is utilized for the Canada plans.
Schedule of weighted average target asset allocation
Weighted-average target asset allocation for all plans for December 31, 2025 are as follows:
As of December 31, 2025
All Plans
Asset category:
Equity securities9 %
Debt securities68 %
Cash/Other23 %
Schedule of fair value of plan assets by asset category and level within the fair value hierarchy
The following summarizes the fair value of plan assets by asset category and levels within the fair value hierarchy as of December 31, 2025 (in millions of dollars):
As of December 31, 2025
TotalLevel 1Level 2Level 3
Fixed income securities:
U.S. government bonds$18 $18 $— $— 
U.S. corporate bonds9 9 — — 
Non-U.S. government bonds20 — 20 — 
Non-U.S. corporate bonds10 — 10 — 
Mortgage-backed securities2 — 2 — 
Other fixed income8 — 8 — 
Total Fixed income securities67 27 40 — 
Other types of investments:
Mutual funds(1)
939 — 939 — 
Insurance contracts71 — — 71 
Derivatives—credit contracts— — — — 
Real estate— — — — 
Total Other types of investments1,010 — 939 71 
Cash:18 15 3 — 
Total of Level 1, Level 2 and Level 3 Assets1,095 42 982 71 
Investments at net asset value:
Mutual funds(2)
46
Total Net Assets$1,141 
 
(1)This category includes mutual funds, which primarily invest in non-U.S. equities and non-U.S. corporate bonds.
(2)This category includes open-ended mutual fund, the underlying assets of the mutual fund are illiquid in nature and are not classified in the fair value hierarchy using the net asset per share practical expedient.
The following summarizes the fair value of plan assets by asset category and level within the fair value hierarchy as of December 31, 2024 (in millions of dollars):
As of December 31, 2024
TotalLevel 1Level 2Level 3
Fixed income securities:
U.S. government bonds$18 $18 $— $— 
U.S. corporate bonds8 8 — — 
Non-U.S. government bonds24 — 24 — 
Non-U.S. corporate bonds11 — 11 — 
Mortgage-backed securities2 — 2 — 
Other fixed income3 — 3 — 
Total Fixed income securities66 26 40 — 
Other types of investments:
Mutual funds(1)
860 — 860 — 
Insurance contracts66 — — 66 
Derivatives—credit contracts— — — — 
Real estate— — — — 
Total Other types of investments926 — 860 66 
Cash:36 14 22 — 
Total of Level 1, Level 2 and Level 3 Assets1,028 40 922 66 
Investments at net asset value:
Mutual funds(2)
49 
Total Net Assets$1,077 
(1)This category includes mutual funds, which primarily invest in non-U.S. equities and non-U.S. corporate bonds.
(2)This category includes open-ended mutual fund, the underlying assets of the mutual fund are illiquid in nature and are not classified in the fair value hierarchy using the net asset per share practical expedient.
Schedule of changes in level 3 plan assets
The following table presents the changes in the Level 3 plan assets for the year ended December 31, 2025 (in millions of dollars):
Level 3 Assets
Balance at December 31, 2024$66 
Actual return on plan assets relating to assets still held at reporting date
2 
Purchases3 
Settlements(6)
Transfers in and/or out of level 3— 
Currency impact6 
Balance at December 31, 2025$71 
The following table presents the changes in the Level 3 plan assets for the year ended December 31, 2024 (in millions of dollars):
Level 3 Assets
Balance at December 31, 2023$45 
Actual return on plan assets relating to assets still held at reporting date
1 
Purchases28 
Settlements(5)
Transfers in and/or out of Level 3(1)
Currency impact(2)
Balance at December 31, 2024$66 
Schedule of cash flows related to total benefits expected to be paid
The benefit expected to be paid from the benefit plans, which reflect expected future years of service, and the Medicare subsidy expected to be received are as follows (in millions of dollars):
Pension PlansHealthcareOther
2026$100 $19 $7 
202793 18 6 
202893 16 6 
202992 16 7 
203089 15 8 
2031 - 2035424 76 38 
Total$891 $160 $72