FORD CREDIT ALLOWANCE FOR CREDIT LOSSES

An analysis of the allowance for credit losses related to finance receivables for the periods ended September 30 was as follows (in millions):



	Third Quarter 2017									First Nine Months 2017
	Consumer			Non-Consumer			Total			Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	507		$	15		$	522		$	469		$	15		$	484
Charge-offs	(132		)	—			(132		)	(366		)	(3		)	(369		)
Recoveries	36			4			40			105			8			113
Provision for credit losses	146			(6		)	140			341			(7		)	334
Other (a)	5			—			5			13			—			13
Ending balance (b)	$	562		$	13		$	575		$	562		$	13		$	575

Analysis of ending balance of allowance for credit losses
Collective impairment allowance										$	541		$	13		$	554
Specific impairment allowance										21			—			21
Ending balance (b)										562			13			575

Analysis of ending balance of finance receivables
Collectively evaluated for impairment										71,929			31,971			103,900
Specifically evaluated for impairment										387			152			539
Recorded investment										72,316			32,123			104,439

Ending balance, net of allowance for credit losses										$	71,754		$	32,110		$	103,864

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(a)	Primarily represents amounts related to translation adjustments.


(b)	Total allowance, including for operating leases, was $644 million.



	Third Quarter 2018									First Nine Months 2018
	Consumer			Non-Consumer			Total			Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	573		$	14		$	587		$	582		$	15		$	597
Charge-offs (a)	(128		)	(43		)	(171		)	(382		)	(46		)	(428		)
Recoveries	40			4			44			126			6			132
Provision for credit losses	73			52			125			237			52			289
Other (b)	1			—			1			(4		)	—			(4		)
Ending balance (c)	$	559		$	27		$	586		$	559		$	27		$	586

Analysis of ending balance of allowance for credit losses
Collective impairment allowance										$	538		$	14		$	552
Specific impairment allowance										21			13			34
Ending balance (c)										559			27			586

Analysis of ending balance of finance receivables
Collectively evaluated for impairment										76,315			31,588			107,903
Specifically evaluated for impairment										379			165			544
Recorded investment										76,694			31,753			108,447

Ending balance, net of allowance for credit losses										$	76,135		$	31,726		$	107,861

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(a)	The charge-off of non-consumer (dealer financing) receivables primarily reflects a specific U.S. dealer’s wholesale vehicle inventory and dealer loan determined to be uncollectible.


(b)	Primarily represents amounts related to translation adjustments.


(c)	Total allowance, including for operating leases, was $663 million.