Net Investment in Operating Leases Net Investment in Operating Leases (Notes)

3 Months Ended

Mar. 31, 2019

Net Investment in Operating Leases [Abstract]

Lessor, Operating Leases [Text Block]

NET INVESTMENT IN OPERATING LEASES

Net investment in operating leases consist primarily of lease contracts for vehicles with individuals, daily rental

companies, government entities, and fleet customers. Assets subject to operating leases are depreciated using the

straight-line method over the term of the lease to reduce the asset to its estimated residual value. Estimated residual

values are based on assumptions for used vehicle prices at lease termination and the number of vehicles that are

expected to be returned.

The net investment in operating leases was as follows (in millions):

	December 31, 2018			March 31, 2019
Automotive Segment
Vehicles, net of depreciation	$	1,705		$	1,656
Ford Credit Segment
Vehicles and other equipment, at cost (a)	33,557			33,551
Accumulated depreciation	(6,143		)	(5,978		)
Total Ford Credit Segment	27,414			27,573
Total	$	29,119		$	29,229

__________

(a) Includes Ford Credit’s operating lease assets of $16.3 billion and $16 billion at December 31, 2018 and March 31, 2019, respectively, which have been included in certain lease securitization transactions. These net investments in operating leases are available only for payment of the debt or other obligations issued or arising in the securitization transactions; they are not available to pay other obligations or the claims of other creditors.

Ford Credit Segment

Included in Ford Credit revenues are rents on operating leases. The amounts contractually due for minimum rentals on operating leases at December 31, 2018 were as follows (in millions):

	2019		2020		2021		2022		2023		Total
Minimum rentals on operating leases	$	4,708	$	2,929	$	1,083	$	83	$	6	$	8,809

The amounts contractually due on our operating leases at March 31, 2019 were as follows (in millions):

	Within one year		After one year and within two years		After two years and within three years		After three years and within four years		After four years and within five years		Total
Operating lease payments	$	4,719	$	2,924	$	1,040	$	80	$	5	$	8,768