XML 55 R44.htm IDEA: XBRL DOCUMENT

Ford Credit Finance Receivables (Tables)

6 Months Ended

Jun. 30, 2021

Schedule of Accounts, Notes, Loans and Financing Receivable

Ford Credit finance receivables, net were as follows (in millions):


	December 31, 2020		June 30, 2021
Consumer
Retail installment contracts, gross	$	73,631	$	70,434
Finance leases, gross	8,431		8,132
Retail financing, gross	82,062		78,566
Unearned interest supplements	(3,987)		(3,358)
Consumer finance receivables	78,075		75,208
Non-Consumer
Dealer financing	20,908		12,028
Non-Consumer finance receivables	20,908		12,028
Total recorded investment	$	98,983	$	87,236

Recorded investment in finance receivables	$	98,983	$	87,236
Allowance for credit losses	(1,305)		(1,061)
Total finance receivables, net	$	97,678	$	86,175

Current portion	$	42,401	$	34,339
Non-current portion	55,277		51,836
Total finance receivables, net	$	97,678	$	86,175

Net finance receivables subject to fair value (a)	$	89,651	$	78,427
Fair value (b)	91,238		79,987

__________

(a)Net finance receivables subject to fair value exclude finance leases.

(b)The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy.

Financing Receivable, Past Due

The credit quality analysis of consumer receivables at December 31, 2020 was as follows (in millions):


	Amortized Cost Basis by Origination Year
	Prior to 2016		2016		2017		2018		2019		2020		Total		Percent
Consumer
31 - 60 days past due	$	45	$	62	$	103	$	162	$	166	$	143	$	681	0.9	%
61 - 120 days past due	7		12		24		44		45		31		163		0.2
Greater than 120 days past due	11		6		7		8		7		2		41		—
Total past due	63		80		134		214		218		176		885		1.1
Current	782		2,518		6,648		13,704		20,822		32,716		77,190		98.9
Total	$	845	$	2,598	$	6,782	$	13,918	$	21,040	$	32,892	$	78,075	100.0	%

The credit quality analysis of consumer receivables at June 30, 2021 was as follows (in millions):


	Amortized Cost Basis by Origination Year
	Prior to 2017		2017		2018		2019		2020		2021		Total		Percent
Consumer
31 - 60 days past due	$	52	$	60	$	98	$	114	$	134	$	24	$	482	0.6	%
61 - 120 days past due	9		13		23		29		31		7		112		0.2
Greater than 120 days past due	13		7		9		10		8		—		47		0.1
Total past due	74		80		130		153		173		31		641		0.9
Current	1,747		4,419		9,952		16,768		28,228		13,453		74,567		99.1
Total	$	1,821	$	4,499	$	10,082	$	16,921	$	28,401	$	13,484	$	75,208	100.0	%

Financing Receivable Credit Quality Indicators

The credit quality analysis of dealer financing receivables at December 31, 2020 was as follows (in millions):


	Amortized Cost Basis by Origination Year														Wholesale Loans
	Dealer Loans
	Prior to 2016		2016		2017		2018		2019		2020		Total				Total		Percent
Group I	$	503	$	129	$	110	$	188	$	70	$	248	$	1,248	$	13,160	$	14,408	68.9	%
Group II	38		20		11		35		3		87		194		4,680		4,874		23.3
Group III	9		—		3		19		3		35		69		1,464		1,533		7.3
Group IV	2		—		—		—		2		6		10		83		93		0.5
Total (a)	$	552	$	149	$	124	$	242	$	78	$	376	$	1,521	$	19,387	$	20,908	100.0	%

__________

(a)Total past due dealer financing receivables at December 31, 2020 were $99 million.

The credit quality analysis of dealer financing receivables at June 30, 2021 was as follows (in millions):


	Amortized Cost Basis by Origination Year														Wholesale Loans
	Dealer Loans
	Prior to 2017		2017		2018		2019		2020		2021		Total				Total		Percent
Group I	$	530	$	87	$	178	$	52	$	115	$	175	$	1,137	$	6,993	$	8,130	67.6	%
Group II	15		7		33		3		15		96		169		2,806		2,975		24.7
Group III	17		1		5		2		3		35		63		797		860		7.2
Group IV	—		—		—		4		1		5		10		53		63		0.5
Total (a)	$	562	$	95	$	216	$	61	$	134	$	311	$	1,379	$	10,649	$	12,028	100.0	%

__________

(a)Total past due dealer financing receivables at June 30, 2021 were $56 million.

Financing Receivable, Allowance for Credit Loss

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


	Second Quarter 2020						First Half 2020
	Consumer		Non-Consumer		Total		Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	1,157	$	74	$	1,231	$	496	$	17	$	513
Adoption of ASU 2016-13 (a)	—		—		—		247		5		252
Charge-offs	(80)		—		(80)		(225)		(1)		(226)
Recoveries	33		1		34		76		3		79
Provision for credit losses	94		(1)		93		628		51		679
Other (b)	7		—		7		(11)		(1)		(12)
Ending balance	$	1,211	$	74	$	1,285	$	1,211	$	74	$	1,285


	Second Quarter 2021						First Half 2021
	Consumer		Non-Consumer		Total		Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	1,170	$	53	$	1,223	$	1,245	$	60	$	1,305
Charge-offs	(55)		(3)		(58)		(152)		(3)		(155)
Recoveries	55		2		57		108		5		113
Provision for credit losses	(154)		(12)		(166)		(184)		(22)		(206)
Other (b)	6		(1)		5		5		(1)		4
Ending balance	$	1,022	$	39	$	1,061	$	1,022	$	39	$	1,061

__________

(a)Cumulative pre-tax adjustments related to the adoption of ASU 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments, were recorded in retained earnings as of January 1, 2020.

(b)Primarily represents amounts related to translation adjustments.