Ford Credit Finance Receivables and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Net finance receivables [Table Text Block]

Ford Credit finance receivables, net at December 31 were as follows (in millions):

	2022		2023
Consumer
Retail installment contracts, gross	$	66,954	$	73,825
Finance leases, gross	6,765		7,793
Retail financing, gross	73,719		81,618
Unearned interest supplements	(2,305)		(3,344)
Consumer finance receivables	71,414		78,274
Non-Consumer
Dealer financing	18,054		24,683
Non-Consumer finance receivables	18,054		24,683
Total recorded investment	$	89,468	$	102,957
Recorded investment in finance receivables	$	89,468	$	102,957
Allowance for credit losses	(845)		(882)
Total finance receivables, net	$	88,623	$	102,075
Current portion	$	38,720	$	46,425
Non-current portion	49,903		55,650
Total finance receivables, net	$	88,623	$	102,075
Net finance receivables subject to fair value (a)	$	82,200	$	94,728
Fair value (b)	79,521		93,189

__________

(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.

Sales-type and Direct Financing Leases, Lease Receivable, Maturity [Table Text Block]

The amounts contractually due on Ford Credit’s finance leases at December 31 were as follows (in millions):

	2023
2024	$	1,488
2025	1,686
2026	1,242
2027	640
2028	87
Thereafter	2
Total future cash payments	5,145
Less: Present value discount	358
Finance lease receivables	$	4,787

Sales-Type and Direct Financing Leases [Table Text Block]

The reconciliation from finance lease receivables to finance leases, gross and finance leases, net at December 31 is as follows (in millions):

	2022		2023
Finance lease receivables	$	4,297	$	4,787
Unguaranteed residual assets	2,389		2,910
Initial direct costs	79		96
Finance leases, gross	6,765		7,793
Unearned interest supplements from Ford and affiliated companies	(307)		(408)
Allowance for credit losses	(35)		(38)
Finance leases, net	$	6,423	$	7,347

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 December 31, 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	$	40	$	49	$	130	$	125	$	187	$	159	$	690	0.9	%
61 - 120 days past due	9		11		30		37		58		50		195		0.2
Greater than 120 days past due	7		4		7		10		10		5		43		0.1
Total past due	56		64		167		172		255		214		928		1.2
Current	891		2,359		7,385		11,301		20,247		35,163		77,346		98.8
Total	$	947	$	2,423	$	7,552	$	11,473	$	20,502	$	35,377	$	78,274	100.0	%
Gross charge-offs	$	47	$	40	$	75	$	85	$	117	$	37	$	401

Financing receivable credit quality indicators [Table Text Block]

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 December 31, 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	$	383	$	30	$	58	$	156	$	61	$	331	$	1,019	$	20,419	$	21,438	86.9	%
Group II	16		—		1		3		2		44		66		2,834		2,900		11.7
Group III	—		—		—		—		1		8		9		292		301		1.2
Group IV	—		1		—		—		—		2		3		41		44		0.2
Total (a)	$	399	$	31	$	59	$	159	$	64	$	385	$	1,097	$	23,586	$	24,683	100.0	%
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	1	$	1	$	3	$	4

__________

(a)Total past due dealer financing receivables at December 31, 2023 were $33 million.

Allowance For Credit Losses on Financing And Loans And Leases Receivable [Table Text Block]

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

	2022
	Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	903	$	22	$	925
Charge-offs	(278)		(1)		(279)
Recoveries	165		5		170
Provision for/(Benefit from) credit losses	56		(17)		39
Other (a)	(8)		(2)		(10)
Ending balance	$	838	$	7	$	845

	2023
	Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	838	$	7	$	845
Charge-offs	(401)		(4)		(405)
Recoveries	151		2		153
Provision for/(Benefit from) credit losses	280		(2)		278
Other (a)	11		—		11
Ending balance	$	879	$	3	$	882

__________

(a)Primarily represents amounts related to translation adjustments.