Ford Credit Finance Receivables (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

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

	December 31, 2022		September 30, 2023
Consumer
Retail installment contracts, gross	$	66,954	$	71,134
Finance leases, gross	6,765		7,339
Retail financing, gross	73,719		78,473
Unearned interest supplements	(2,305)		(2,967)
Consumer finance receivables	71,414		75,506
Non-Consumer
Dealer financing	18,054		21,376
Non-Consumer finance receivables	18,054		21,376
Total recorded investment	$	89,468	$	96,882
Recorded investment in finance receivables	$	89,468	$	96,882
Allowance for credit losses	(845)		(876)
Total finance receivables, net	$	88,623	$	96,006
Current portion	$	38,720	$	42,572
Non-current portion	49,903		53,434
Total finance receivables, net	$	88,623	$	96,006
Net finance receivables subject to fair value (a)	$	82,200	$	89,078
Fair value (b)	79,521		86,812

__________

(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, 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	$	41	$	60	$	91	$	181	$	150	$	126	$	649	0.9	%
61 - 120 days past due	9		12		20		39		40		29		149		0.2
Greater than 120 days past due	9		4		5		7		7		6		38		0.1
Total past due	59		76		116		227		197		161		836		1.2
Current	883		2,563		6,137		13,844		18,357		28,794		70,578		98.8
Total	$	942	$	2,639	$	6,253	$	14,071	$	18,554	$	28,955	$	71,414	100.0	%

The credit quality analysis of consumer receivables at September 30, 2023 was as follows (in millions):

	Amortized Cost Basis by Origination Year
	Prior to 2019		2019		2020		2021		2022		2023		Total		Percent
Consumer
31 - 60 days past due	$	50	$	58	$	140	$	129	$	172	$	96	$	645	0.9	%
61 - 120 days past due	9		12		30		35		50		28		164		0.2
Greater than 120 days past due	8		4		6		10		10		3		41		—
Total past due	67		74		176		174		232		127		850		1.1
Current	1,296		3,090		8,787		12,867		22,254		26,362		74,656		98.9
Total	$	1,363	$	3,164	$	8,963	$	13,041	$	22,486	$	26,489	$	75,506	100.0	%
Gross charge-offs	$	38	$	30	$	55	$	61	$	81	$	14	$	279

Financing Receivable Credit Quality Indicators

The credit quality analysis of dealer financing receivables at December 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	$	402	$	148	$	35	$	67	$	185	$	224	$	1,061	$	13,888	$	14,949	82.8	%
Group II	2		21		—		5		2		42		72		2,751		2,823		15.6
Group III	—		—		—		—		—		10		10		233		243		1.4
Group IV	—		—		1		—		—		3		4		35		39		0.2
Total (a)	$	404	$	169	$	36	$	72	$	187	$	279	$	1,147	$	16,907	$	18,054	100.0	%

__________

(a)Total past due dealer financing receivables at December 31, 2022 were $9 million.

The credit quality analysis of dealer financing receivables at September 30, 2023 was as follows (in millions):

	Amortized Cost Basis by Origination Year														Wholesale Loans
	Dealer Loans
	Prior to 2019		2019		2020		2021		2022		2023		Total				Total		Percent
Group I	$	491	$	31	$	66	$	159	$	62	$	285	$	1,094	$	17,393	$	18,487	86.5	%
Group II	2		—		2		4		2		50		60		2,384		2,444		11.4
Group III	—		—		—		—		1		6		7		386		393		1.8
Group IV	—		1		—		—		—		2		3		49		52		0.3
Total (a)	$	493	$	32	$	68	$	163	$	65	$	343	$	1,164	$	20,212	$	21,376	100.0	%
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

__________

(a)Total past due dealer financing receivables at September 30, 2023 were $4 million.

Financing Receivable, Allowance for Credit Loss

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 2022						First Nine Months 2022
	Consumer		Non-Consumer		Total		Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	754	$	9	$	763	$	903	$	22	$	925
Charge-offs	(73)		—		(73)		(196)		(1)		(197)
Recoveries	39		1		40		126		3		129
Provision for/(Benefit from) credit losses	40		(1)		39		(67)		(14)		(81)
Other (a)	(9)		—		(9)		(15)		(1)		(16)
Ending balance	$	751	$	9	$	760	$	751	$	9	$	760

	Third Quarter 2023						First Nine Months 2023
	Consumer		Non-Consumer		Total		Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	866	$	7	$	873	$	838	$	7	$	845
Charge-offs	(105)		—		(105)		(279)		—		(279)
Recoveries	37		—		37		113		1		114
Provision for/(Benefit from) credit losses	75		(1)		74		193		(2)		191
Other (a)	(3)		—		(3)		5		—		5
Ending balance	$	870	$	6	$	876	$	870	$	6	$	876

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(a)    Primarily represents amounts related to translation adjustments.