Ford Credit Finance Receivables (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

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

	December 31, 2021		March 31, 2022
Consumer
Retail installment contracts, gross	$	69,148	$	67,699
Finance leases, gross	7,318		7,079
Retail financing, gross	76,466		74,778
Unearned interest supplements	(3,020)		(2,796)
Consumer finance receivables	73,446		71,982
Non-Consumer
Dealer financing	11,278		11,638
Non-Consumer finance receivables	11,278		11,638
Total recorded investment	$	84,724	$	83,620
Recorded investment in finance receivables	$	84,724	$	83,620
Allowance for credit losses	(925)		(845)
Total finance receivables, net	$	83,799	$	82,775
Current portion	$	32,543	$	32,775
Non-current portion	51,256		50,000
Total finance receivables, net	$	83,799	$	82,775
Net finance receivables subject to fair value (a)	$	76,796	$	76,005
Fair value (b)	77,648		75,229

__________

(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, 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	$	39	$	52	$	98	$	120	$	186	$	91	$	586	0.8	%
61 - 120 days past due	7		10		20		29		40		21		127		0.2
Greater than 120 days past due	10		6		6		9		11		1		43		—
Total past due	56		68		124		158		237		113		756		1.0
Current	812		2,607		6,559		12,689		22,701		27,322		72,690		99.0
Total	$	868	$	2,675	$	6,683	$	12,847	$	22,938	$	27,435	$	73,446	100.0	%

The credit quality analysis of consumer receivables at March 31, 2022 was as follows (in millions):

	Amortized Cost Basis by Origination Year
	Prior to 2018		2018		2019		2020		2021		2022		Total		Percent
Consumer
31 - 60 days past due	$	76	$	84	$	116	$	192	$	123	$	9	$	600	0.8	%
61 - 120 days past due	11		16		20		31		26		1		105		0.2
Greater than 120 days past due	15		6		8		13		1		—		43		—
Total past due	102		106		144		236		150		10		748		1.0
Current	2,564		5,354		10,871		20,319		25,281		6,845		71,234		99.0
Total	$	2,666	$	5,460	$	11,015	$	20,555	$	25,431	$	6,855	$	71,982	100.0	%

Financing Receivable Credit Quality Indicators

The credit quality analysis of dealer financing receivables at December 31, 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	$	391	$	68	$	151	$	45	$	109	$	345	$	1,109	$	6,751	$	7,860	69.7	%
Group II	11		7		26		2		4		54		104		2,689		2,793		24.8
Group III	8		—		1		—		1		20		30		529		559		4.9
Group IV	—		—		4		—		—		6		10		56		66		0.6
Total (a)	$	410	$	75	$	182	$	47	$	114	$	425	$	1,253	$	10,025	$	11,278	100.0	%

__________

(a)Total past due dealer financing receivables at December 31, 2021 were $62 million.

The credit quality analysis of dealer financing receivables at March 31, 2022 was as follows (in millions):

	Amortized Cost Basis by Origination Year														Wholesale Loans
	Dealer Loans
	Prior to 2018		2018		2019		2020		2021		2022		Total				Total		Percent
Group I	$	470	$	155	$	44	$	78	$	232	$	111	$	1,090	$	7,096	$	8,186	70.3	%
Group II	12		26		1		5		13		42		99		2,845		2,944		25.3
Group III	8		—		—		—		5		11		24		423		447		3.9
Group IV	—		5		—		1		2		2		10		51		61		0.5
Total (a)	$	490	$	186	$	45	$	84	$	252	$	166	$	1,223	$	10,415	$	11,638	100.0	%

__________

(a)Total past due dealer financing receivables at March 31, 2022 were $13 million.

Financing Receivable, Allowance for Credit Loss

An analysis of the allowance for credit losses related to finance receivables for the periods ended March 31 was as follows (in millions):

	First Quarter 2021
	Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	1,245	$	60	$	1,305
Charge-offs	(97)		—		(97)
Recoveries	53		3		56
Provision for/(Benefit from) credit losses	(30)		(10)		(40)
Other (a)	(1)		—		(1)
Ending balance	$	1,170	$	53	$	1,223

	First Quarter 2022
	Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	903	$	22	$	925
Charge-offs	(62)		—		(62)
Recoveries	43		1		44
Provision for/(Benefit from) credit losses	(59)		(5)		(64)
Other (a)	1		1		2
Ending balance	$	826	$	19	$	845

__________

(a)    Primarily represents amounts related to translation adjustments.