10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2022

or

☐	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from ____________________ to ____________________

Commission file number 1-6368

Ford Motor Credit Company LLC

(Exact name of registrant as specified in its charter)

Delaware		38-1612444
(State of organization)		(I.R.S. employer identification no.)
One American Road
Dearborn,	Michigan	48126
(Address of principal executive offices)		(Zip Code)

(313) 322-3000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
0.623% Notes due June 28, 2023*	F/23E	New York Stock Exchange
1.355% Notes due February 7, 2025*	F/25I	New York Stock Exchange
4.125% Notes due on June 20, 2024*	F/24O	New York Stock Exchange
3.021% Notes due March 6, 2024*	F/24M	New York Stock Exchange
4.535% Notes due March 6, 2025*	F/25K	New York Stock Exchange
3.350% Notes due Nine Months or More from the Date of Issue due August 20, 2026	F/26N	New York Stock Exchange
1.514% Notes due February 17, 2023*	F/23G	New York Stock Exchange
2.386% Notes due February 17, 2026*	F/26AB	New York Stock Exchange
1.744% Notes due July 19, 2024*	F/24R	New York Stock Exchange
2.330% Notes due on November 25, 2025*	F/25L	New York Stock Exchange
3.683% Notes due on December 3, 2024*	F/24Q	New York Stock Exchange
3.250% Notes due September 15, 2025*	F/25M	New York Stock Exchange
2.748% Notes due on June 14, 2024*	F/24S	New York Stock Exchange
Floating Rate Notes due December 7, 2022*	F/22T	New York Stock Exchange
Floating Rate Notes due November 15, 2023*	F/23D	New York Stock Exchange
Floating Rate Notes due December 1, 2024*	F/24L	New York Stock Exchange
*Issued under Euro Medium Term Notes due Nine Months or More from The Date of Issue Program

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þ Yes  o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). þ Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐     Non-accelerated filer þ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes ☑ No

All of the limited liability company interests in the registrant (“Shares”) are held by an affiliate of the registrant. None of the Shares are publicly traded.

REDUCED DISCLOSURE FORMAT

The registrant meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this Form with the reduced disclosure format.

Exhibit Index begins on page 37

FORD MOTOR CREDIT COMPANY LLC

QUARTERLY REPORT ON FORM 10-Q

For the Quarter Ended March 31, 2022

	Table of Contents	Page
	Part I. Financial Information
Item 1	Financial Statements	1
	Consolidated Income Statements	1
	Consolidated Statements of Comprehensive Income	1
	Consolidated Balance Sheets	2
	Consolidated Statements of Shareholder’s Interest	3
	Consolidated Statements of Cash Flows	4
	Notes to the Financial Statements	5
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
	Recent Developments	22
	Definitions and Information Regarding Causal Factors	23
	Results of Operations	25
	Financing Shares and Contract Placement Volume	27
	Financial Condition	28
	Credit Risk	29
	Residual Risk	31
	Credit Ratings	32
	Funding and Liquidity	33
	Leverage	34
	Outlook	34
	Cautionary Note on Forward-Looking Statements	35
	Accounting Standards Issued But Not Yet Adopted	36
Item 3	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4	Controls and Procedures	36
	Part II. Other Information
Item 1	Legal Proceedings	37
Item 5	Other Information	37
Item 6	Exhibits	37
	Signature	38

i

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements.

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(in millions)

	For the periods ended March 31,
	2021		2022
	First Quarter
	(unaudited)
Financing revenue
Operating leases	$	1,380	$	1,211
Retail financing	990		906
Dealer financing	286		164
Other financing	14		7
Total financing revenue	2,670		2,288
Depreciation on vehicles subject to operating leases	(568)		(515)
Interest expense	(804)		(611)
Net financing margin	1,298		1,162
Other revenue
Insurance premiums earned	27		15
Fee based revenue and other	20		23
Total financing margin and other revenue	1,345		1,200
Expenses
Operating expenses	343		348
Provision for/(Benefit from) credit losses (Note 4)	(40)		(64)
Insurance expenses	5		(7)
Total expenses	308		277
Other income/(loss), net (Note 11)	(75)		(169)
Income before income taxes	962		754
Provision for/(Benefit from) income taxes	117		85
Net income	$	845	$	669

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

	For the periods ended March 31,
	2021		2022
	First Quarter
	(unaudited)
Net income	$	845	$	669
Other comprehensive income/(loss), net of tax
Foreign currency translation gains/(losses)	(101)		(43)
Reclassification of accumulated foreign currency translation (gains)/losses to net income	—		195
Comprehensive income	$	744	$	821

The accompanying notes are part of the consolidated financial statements.

1

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in millions)

	December 31, 2021		March 31, 2022
	(unaudited)
ASSETS
Cash and cash equivalents (Note 3)	$	10,963	$	10,579
Marketable securities (Note 3)	2,173		2,036
Finance receivables, net
Retail installment contracts, dealer financing, and other financing	85,347		86,261
Finance leases	7,003		6,770
Total finance receivables, net of allowance for credit losses of $925 and $845 (Note 4)	92,350		93,031
Net investment in operating leases (Note 5)	25,167		24,364
Notes and accounts receivable from affiliated companies	703		446
Derivative financial instruments (Note 7)	1,065		639
Other assets (Note 8)	2,524		2,482
Total assets	$	134,945	$	133,577
LIABILITIES
Accounts payable
Customer deposits, dealer reserves, and other	$	1,051	$	1,005
Affiliated companies	425		878
Total accounts payable	1,476		1,883
Debt (Note 9)	117,717		115,516
Deferred income taxes	676		740
Derivative financial instruments (Note 7)	512		1,337
Other liabilities and deferred revenue (Note 8)	2,166		1,965
Total liabilities	122,547		121,441
SHAREHOLDER’S INTEREST
Shareholder’s interest	5,227		5,166
Accumulated other comprehensive income/(loss)	(690)		(538)
Retained earnings	7,839		7,508
Shareholder’s interest attributable to Ford Motor Credit Company	12,376		12,136
Shareholder’s interest attributable to noncontrolling interests	22		—
Total shareholder’s interest	12,398		12,136
Total liabilities and shareholder’s interest	$	134,945	$	133,577

The following table includes assets to be used to settle the liabilities of the consolidated variable interest entities (“VIEs”).  These assets and liabilities are included in the consolidated balance sheets above.  

	December 31, 2021		March 31, 2022
	(unaudited)
ASSETS
Cash and cash equivalents	$	3,407	$	2,473
Finance receivables, net	43,001		42,119
Net investment in operating leases	7,540		10,191
Derivative financial instruments	39		152
LIABILITIES
Debt	$	38,274	$	40,139
Derivative financial instruments	6		1

The accompanying notes are part of the consolidated financial statements.

2

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDER’S INTEREST

(in millions, unaudited)

	Shareholder’s Interest		Accumulated Other Comprehensive Income/(Loss)		Retained Earnings		Total Shareholder’s Interest		Shareholder’s Interest Attributable to Non-controlling Interests		Total Shareholder’s Interest
Balance at December 31, 2020	$	5,227	$	(478)	$	10,818	$	15,567	$	—	$	15,567
Net income/(loss)	—		—		845		845		—		845
Other comprehensive income/(loss), net of tax	—		(101)		—		(101)		—		(101)
Distributions declared	—		—		(1,000)		(1,000)		—		(1,000)
Balance at March 31, 2021	$	5,227	$	(579)	$	10,663	$	15,311	$	—	$	15,311
Balance at December 31, 2021	$	5,227	$	(690)	$	7,839	$	12,376	$	22	$	12,398
Net income/(loss)	—		—		669		669		—		669
Other comprehensive income/(loss), net of tax	—		152		—		152		—		152
Distributions declared	—		—		(1,000)		(1,000)		—		(1,000)
Other (Note 10)	(61)		—		—		(61)		(22)		(83)
Balance at March 31, 2022	$	5,166	$	(538)	$	7,508	$	12,136	$	—	$	12,136

The accompanying notes are part of the consolidated financial statements.

3

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

	For the periods ended March 31,
	2021		2022
	First Three Months
	(unaudited)
Cash flows from operating activities
Net income	$	845	$	669
Provision for/(Benefit From) credit losses	(40)		(64)
Depreciation and amortization	738		682
Amortization of upfront interest supplements	(578)		(508)
Net change in deferred income taxes	13		37
Net change in other assets	341		(24)
Net change in other liabilities	229		418
All other operating activities	114		152
Net cash provided by/(used in) operating activities	1,662		1,362
Cash flows from investing activities
Purchases of finance receivables	(8,467)		(7,891)
Principal collections of finance receivables	10,315		9,615
Purchases of operating lease vehicles	(2,841)		(2,041)
Proceeds from termination of operating lease vehicles	2,488		2,469
Net change in wholesale receivables and other short-duration receivables	2,628		(2,224)
Purchases of marketable securities	(3,701)		(909)
Proceeds from sales and maturities of marketable securities	4,598		1,007
Settlements of derivatives	56		148
All other investing activities	(10)		(39)
Net cash provided by/(used in) investing activities	5,066		135
Cash flows from financing activities
Proceeds from issuances of long-term debt	4,631		12,489
Payments of long-term debt	(14,814)		(12,705)
Net change in short-term debt	568		(608)
Cash distributions to parent	(1,000)		(1,000)
All other financing activities	(11)		(32)
Net cash provided by/(used in) financing activities	(10,626)		(1,856)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(67)		(34)
Net increase/(decrease) in cash, cash equivalents and restricted cash	$	(3,965)	$	(393)
Cash, cash equivalents, and restricted cash at beginning of period (Note 3)	$	14,996	$	11,091
Net increase/(decrease) in cash, cash equivalents, and restricted cash	(3,965)		(393)
Cash, cash equivalents, and restricted cash at end of period (Note 3)	$	11,031	$	10,698

The accompanying notes are part of the consolidated financial statements.

4

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

Table of Contents

Footnote		Page
Note 1	Presentation	6
Note 2	Accounting Policies	6
Note 3	Cash, Cash Equivalents, and Marketable Securities	7
Note 4	Finance Receivables and Allowance for Credit Losses	7
Note 5	Net Investment in Operating Leases	11
Note 6	Transfers of Receivables and Variable Interest Entities	12
Note 7	Derivative Financial Instruments and Hedging Activities	15
Note 8	Other Assets and Other Liabilities and Deferred Revenue	17
Note 9	Debt	18
Note 10	Restructuring Actions	18
Note 11	Other Income/(Loss), Net	19
Note 12	Segment Information	20
Note 13	Commitments and Contingencies	20

5

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1. PRESENTATION

Principles of Consolidation

The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) for interim financial information, and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited financial statements include all adjustments considered necessary for a fair statement of the results of operations and financial condition for interim periods for Ford Motor Credit Company LLC, its consolidated subsidiaries, and its consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Results for interim periods should not be considered indicative of results for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K Report”). We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation.

NOTE 2. ACCOUNTING POLICIES

Adoption of New Accounting Standards

We adopted the following Accounting Standards Updates (“ASUs”) during 2022, none of which had a material impact to our consolidated financial statements or financial statement disclosures:

ASU		Effective Date
2021-05	Lessors - Certain Leases with Variable Lease Payments	January 1, 2022
2021-08	Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers	January 1, 2022
2021-10	Government Assistance: Disclosures by Business Entities about Government Assistance	January 1, 2022

Accounting Standards Issued But Not Yet Adopted

ASU 2022-02, Financial Instruments - Credit Losses, Troubled Debt Restructurings and Vintage Disclosures. In March 2022, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard that eliminates the troubled debt recognition and measurement guidance. The new standard requires that an entity apply the loan refinancing and restructuring guidance in ASC 310 to all loan modifications and/or receivable modifications. It also enhances disclosure requirements for certain refinancings and restructurings by creditors when a borrower is experiencing financial difficulty and requires disclosure of current-period gross charge-offs by year of origination in the vintage disclosure. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. We are assessing the effect of the new standard on our financial statements and disclosures.

The Company considers the applicability and impacts of all ASUs. All other ASUs were assessed and determined to be either not applicable or are not expected to have a material impact on our consolidated financial statements or financial statement disclosures.

Provision for Income Taxes

For interim tax reporting, we estimate one single effective tax rate for subsidiaries that are subject to tax, which is applied to the year-to-date ordinary income/(loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.

6

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES

The fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis were as follows (in millions):

	Fair Value Level	December 31, 2021		March 31, 2022
Cash and cash equivalents
United States government	1	$	711	$	615
United States government agencies	2	240		200
Non-United States government and agencies	2	152		436
Corporate debt	2	940		889
Total marketable securities classified as cash equivalents		2,043		2,140
Cash, time deposits, and money market funds		8,920		8,439
Total cash and cash equivalents		$	10,963	$	10,579
Marketable securities
United States government	1	$	864	$	413
United States government agencies	2	75		75
Non-United States government and agencies	2	697		1,036
Corporate debt	2	304		297
Other marketable securities	2	233		215
Total marketable securities		$	2,173	$	2,036

Cash, Cash Equivalents, and Restricted Cash 

Cash, cash equivalents, and restricted cash, as reported in the consolidated statements of cash flows, were as follows (in millions):

	December 31, 2021		March 31, 2022
Cash and cash equivalents	$	10,963	$	10,579
Restricted cash (a)	128		119
Total cash, cash equivalents, and restricted cash	$	11,091	$	10,698

__________

(a)Restricted cash is included in Other assets on our consolidated balance sheets and is primarily held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of certain contractual agreements. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions.

NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES

We manage finance receivables as “consumer” and “non-consumer” portfolios. The receivables are generally secured by the vehicles, inventory, or other property being financed.

Finance receivables are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses.

For all finance receivables, we define “past due” as any payment, including principal and interest, that is at least 31 days past the contractual due date.

7

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Total Finance Receivables, Net

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

	December 31, 2021		March 31, 2022
Consumer
Retail installment contracts, gross	$	69,247	$	67,796
Finance leases, gross	7,318		7,079
Retail financing, gross	76,565		74,875
Unearned interest supplements from Ford and affiliated companies	(3,020)		(2,796)
Consumer finance receivables	73,545		72,079
Non-Consumer
Dealer financing	18,197		20,170
Other financing	1,533		1,627
Non-Consumer finance receivables	19,730		21,797
Total recorded investment	$	93,275	$	93,876
Recorded investment in finance receivables	$	93,275	$	93,876
Allowance for credit losses	(925)		(845)
Total finance receivables, net	$	92,350	$	93,031
Net finance receivables subject to fair value (a)	$	85,347	$	86,261
Fair value (b)	86,199		85,485

__________

(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.

Finance leases are comprised of sales-type and direct financing leases. Financing revenue from finance leases for the first quarter of 2021 and 2022 was $90 million and $77 million, respectively, and is included in Retail financing on the consolidated income statements.

At December 31, 2021 and March 31, 2022, accrued interest was $125 million and $122 million, respectively, which we report in Other assets on the consolidated balance sheets.

Included in the recorded investment in finance receivables were consumer and non-consumer receivables that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information.

Credit Quality

Consumer Portfolio. Credit quality ratings for consumer receivables are based on our aging analysis. Consumer receivables credit quality ratings are as follows:

•Pass – current to 60 days past due;

•Special Mention – 61 to 120 days past due and in intensified collection status; and

•Substandard – greater than 120 days past due and for which the uncollectible portion of the receivables has already been charged off, as measured using the fair value of collateral less costs to sell.

8

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

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		2,608		6,568		12,717		22,730		27,354		72,789		99.0
Total	$	868	$	2,676	$	6,692	$	12,875	$	22,967	$	27,467	$	73,545	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	2,565		5,360		10,895		20,346		25,311		6,854		71,331		99.0
Total	$	2,667	$	5,466	$	11,039	$	20,582	$	25,461	$	6,864	$	72,079	100.0	%

Non-Consumer Portfolio. The credit quality of dealer financing receivables is evaluated based on our internal dealer risk rating analysis. We use a proprietary model to assign each dealer a risk rating. This model uses historical dealer performance data to identify key factors about a dealer that we consider most significant in predicting a dealer’s ability to meet its financial obligations. We also consider numerous other financial and qualitative factors of the dealer’s operations, including capitalization and leverage, liquidity and cash flow, profitability, and credit history with ourselves and other creditors.

Dealers are assigned to one of four groups according to risk ratings as follows:

•Group I – strong to superior financial metrics;

•Group II – fair to favorable financial metrics;

•Group III – marginal to weak financial metrics; and

•Group IV – poor financial metrics, including dealers classified as uncollectible.

The credit quality analysis of dealer financing receivables at December 31, 2021 was as follows (in millions):

	Amortized Cost Basis by Origination Year
	Dealer Loans
	Prior to 2017		2017		2018		2019		2020		2021		Total		Wholesale Loans		Total		Percent
Group I	$	391	$	68	$	151	$	45	$	109	$	345	$	1,109	$	13,670	$	14,779	81.2	%
Group II	11		7		26		2		4		54		104		2,689		2,793		15.3
Group III	8		—		1		—		1		20		30		529		559		3.1
Group IV	—		—		4		—		—		6		10		56		66		0.4
Total (a)	$	410	$	75	$	182	$	47	$	114	$	425	$	1,253	$	16,944	$	18,197	100.0	%

__________

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

9

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

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

	Amortized Cost Basis by Origination Year
	Dealer Loans
	Prior to 2018		2018		2019		2020		2021		2022		Total		Wholesale Loans		Total		Percent
Group I	$	470	$	155	$	44	$	78	$	232	$	111	$	1,090	$	15,628	$	16,718	82.9	%
Group II	12		26		1		5		13		42		99		2,845		2,944		14.6
Group III	8		—		—		—		5		11		24		423		447		2.2
Group IV	—		5		—		1		2		2		10		51		61		0.3
Total (a)	$	490	$	186	$	45	$	84	$	252	$	166	$	1,223	$	18,947	$	20,170	100.0	%

__________

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

Non-Accrual of Revenue. The accrual of financing revenue is discontinued at the time a receivable is determined to be uncollectible or when it is 90 days past due. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance.

Troubled Debt Restructuring (“TDR”). A restructuring of debt constitutes a TDR if we grant a concession to a debtor for economic or legal reasons related to the debtor’s financial difficulties that we otherwise would not consider. Consumer and non-consumer receivables that have a modified interest rate below market rate or that were modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code, except non-consumer receivables that are current with minimal risk of loss, are considered to be TDRs. We do not grant concessions on the principal balance of the receivables. If a receivable is modified in a reorganization proceeding, all payment requirements of the reorganization plan need to be met before remaining balances are forgiven.

Allowance for Credit Losses

The allowance for credit losses represents our estimate of the lifetime expected credit losses inherent in finance receivables as of the balance sheet date. The adequacy of the allowance for credit losses is assessed quarterly.

Adjustments to the allowance for credit losses are made by recording charges to the Provision for/(Benefit from) credit losses on our consolidated income statements. The uncollectible portion of a finance receivable is charged to the allowance for credit losses at the earlier of when an account is deemed to be uncollectible or when an account is 120 days delinquent, taking into consideration the financial condition of the customer or borrower, the value of the collateral, recourse to guarantors, and other factors.

Charge-offs on finance receivables include uncollected amounts related to principal, interest, late fees, and other allowable charges. Recoveries on finance receivables previously charged off as uncollectible are credited to the allowance for credit losses. In the event we repossess the collateral, the receivable is charged off and the collateral is recorded at its estimated fair value less costs to sell and reported in Other assets on our consolidated balance sheets.

10

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

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.

During the first quarter of 2022, the allowance for credit losses decreased $80 million, primarily reflecting improvement in the economic outlook that caused us to lower our expectation of lifetime losses attributable to macroeconomic assumptions driven by COVID-19. Although net charge-offs in the first quarter ended March 31, 2022 remained low, due in part to high vehicle auction values, the impact of higher inflation on future credit losses remains uncertain. We will continue to monitor economic trends and conditions and portfolio performance and will adjust the reserve accordingly.

NOTE 5. NET INVESTMENT IN OPERATING LEASES

Net investment in operating leases consists primarily of lease contracts for vehicles with individuals, daily rental companies, and fleet customers with terms of 60 months or less. Included in Net investment in operating leases are net investment in operating leases that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information.

Net investment in operating leases was as follows (in millions):

	December 31, 2021		March 31, 2022
Vehicles, at cost (a)	$	29,982	$	29,084
Accumulated depreciation	(4,815)		(4,720)
Net investment in operating leases	$	25,167	$	24,364

__________

(a)Includes interest supplements and residual support payments we receive on certain leasing transactions under agreements with Ford and affiliated companies, and other vehicle acquisition costs.

11

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES

We securitize finance receivables and net investment in operating leases through a variety of programs using amortizing, variable funding, and revolving structures. We also sell finance receivables, or pledge them as collateral in certain transactions outside of the United States, in other types of structured financing transactions. Due to the similarities between securitization and structured financing, we refer to structured financings as securitization transactions. Our securitization programs are targeted to institutional investors in both public and private transactions in capital markets primarily in the United States, Canada, the United Kingdom, Germany, and China.

The finance receivables sold for legal purposes and net investment in operating leases included in securitization transactions are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. They are not available to pay our other obligations or the claims of our other creditors. The debt is the obligation of our consolidated securitization entities and not the obligation of Ford Credit or our other subsidiaries.

We use special purpose entities (“SPEs”) to issue asset-backed securities in our securitization transactions. We have deemed most of these SPEs to be VIEs of which we are the primary beneficiary, and therefore, are consolidated. The SPEs are established for the sole purpose of financing the securitized financial assets. The SPEs are generally financed through the issuance of notes or commercial paper into the public or private markets or directly with conduits.

We continue to recognize our financial assets related to our sales of receivables when the financial assets are sold to a consolidated VIE or a consolidated voting interest entity. We derecognize our financial assets when the financial assets are sold to a non-consolidated entity and we do not maintain control over the financial assets.

We have the power to direct significant activities of our SPEs when we have the ability to exercise discretion in the servicing of financial assets, issue additional debt, exercise a unilateral call option, add assets to revolving structures, or control investment decisions. We generally retain a portion of the economic interests in the asset-backed securitization transactions, which could be retained in the form of a portion of the senior interests, the subordinated interests, cash reserve accounts, residual interests, and servicing rights. The transfers of assets in our securitization transactions do not qualify for accounting sale treatment.

From time to time in Europe, we may retain all of the economic interests in some of our public asset-backed securitization transactions. The most senior retained notes are held as, or with the intent to become, eligible collateral to access central bank liquidity facilities in Europe. In addition, we regularly pledge receivables that are not securitized as eligible collateral for these facilities. In accordance with applicable regulatory guidance, the underlying assets in these transactions are considered unencumbered if they are not being used as security for a central bank funding. At December 31, 2021 and March 31, 2022, the value of unencumbered assets related to these transactions was $0.9 billion and $1.0 billion, respectively.

We have no obligation to repurchase or replace any securitized asset that subsequently becomes delinquent in payment or otherwise is in default, except when representations and warranties about the eligibility of the securitized assets are breached, or when certain changes are made to the underlying asset contracts. Securitization investors have no recourse to us or our other assets and have no right to require us to repurchase the investments. We generally have no obligation to provide liquidity or contribute cash or additional assets to the VIEs and do not guarantee any asset-backed securities. We may be required to support the performance of certain securitization transactions, however, by increasing cash reserves.

Certain of our securitization entities may enter into derivative transactions to mitigate interest rate exposure, primarily resulting from fixed-rate assets securing floating-rate debt. In certain instances, the counterparty enters into offsetting derivative transactions with us to mitigate its interest rate risk resulting from derivatives with our securitization entities. These related derivatives are not the obligations of our securitization entities. See Note 7 for additional information regarding the accounting for derivatives.

12

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued)

Most of these securitization transactions utilize VIEs. The following tables show the assets and debt related to our securitization transactions that were included in our consolidated financial statements (in billions):

	December 31, 2021
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt (c)
			Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses
VIE (b)
Retail financing	$	1.7	$	31.6	$	0.3	$	31.3	$	24.5
Wholesale financing	1.3		11.7		—		11.7		8.7
Finance receivables	3.0		43.3		0.3		43.0		33.2
Net investment in operating leases	0.4		7.5		—		7.5		5.1
Total VIE	$	3.4	$	50.8	$	0.3	$	50.5	$	38.3
Non-VIE
Retail financing	$	0.4	$	7.4	$	0.1	$	7.3	$	6.9
Wholesale financing	—		0.3		—		0.3		0.2
Finance receivables	0.4		7.7		0.1		7.6		7.1
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.4	$	7.7	$	0.1	$	7.6	$	7.1
Total securitization transactions
Retail financing	$	2.1	$	39.0	$	0.4	$	38.6	$	31.4
Wholesale financing	1.3		12.0		—		12.0		8.9
Finance receivables	3.4		51.0		0.4		50.6		40.3
Net investment in operating leases	0.4		7.5		—		7.5		5.1
Total securitization transactions	$	3.8	$	58.5	$	0.4	$	58.1	$	45.4

__________

(a)Unearned interest supplements and residual support are excluded from securitization transactions.

(b)Includes assets to be used to settle the liabilities of the consolidated VIEs.

(c)Includes unamortized discount and debt issuance costs.

13

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued)

	March 31, 2022
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt (c)
			Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses
VIE (b)
Retail financing	$	1.7	$	30.8	$	0.3	$	30.5	$	25.3
Wholesale financing	0.3		11.6		—		11.6		8.0
Finance receivables	2.0		42.4		0.3		42.1		33.3
Net investment in operating leases	0.5		10.2		—		10.2		6.8
Total VIE	$	2.5	$	52.6	$	0.3	$	52.3	$	40.1
Non-VIE
Retail financing	$	0.4	$	7.5	$	—	$	7.5	$	6.8
Wholesale financing	—		0.3		—		0.3		0.2
Finance receivables	0.4		7.8		—		7.8		7.0
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.4	$	7.8	$	—	$	7.8	$	7.0
Total securitization transactions
Retail financing	$	2.1	$	38.3	$	0.3	$	38.0	$	32.1
Wholesale financing	0.3		11.9		—		11.9		8.2
Finance receivables	2.4		50.2		0.3		49.9		40.3
Net investment in operating leases	0.5		10.2		—		10.2		6.8
Total securitization transactions	$	2.9	$	60.4	$	0.3	$	60.1	$	47.1

__________

(a)Unearned interest supplements and residual support are excluded from securitization transactions.

(b)Includes assets to be used to settle the liabilities of the consolidated VIEs.

(c)Includes unamortized discount and debt issuance cost.

14

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

In the normal course of business, our operations are exposed to global market risks, including the effect of changes in interest rates and foreign currency exchange rates. To manage these risks, we enter into highly effective derivative contracts. We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting.

Income Effect of Derivative Financial Instruments

The gains/(losses), by hedge designation, reported in income for the periods ended March 31 were as follows (in millions):

	First Quarter
	2021		2022
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments	$	101	$	76
Fair value changes on hedging instruments	(641)		(986)
Fair value changes on hedged debt	590		991
Cross-currency interest rate swap contracts
Net interest settlements and accruals on hedging instruments	(3)		(3)
Fair value changes on hedging instruments	(50)		(37)
Fair value changes on hedged debt	44		41
Derivatives not designated as hedging instruments
Interest rate contracts	(31)		123
Foreign currency exchange contracts (a)	52		(2)
Cross-currency interest rate swap contracts	(245)		(227)
Total	$	(183)	$	(24)

__________

(a)Reflects forward contracts between us and an affiliated company.

15

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)

Balance Sheet Effect of Derivative Financial Instruments

Derivative assets and liabilities are reported on the balance sheets at fair value and are presented on a gross basis. The notional amounts of the derivative instruments do not necessarily represent amounts exchanged by the parties and are not a direct measure of our financial exposure. We also enter into master agreements with counterparties that may allow for netting of exposures in the event of default or breach of the counterparty agreement. Collateral represents cash received or paid under reciprocal arrangements that we have entered into with our derivative counterparties, which we do not use to offset our derivative assets and liabilities.

The fair value of our derivative instruments and the associated notional amounts were as follows (in millions):

	December 31, 2021						March 31, 2022
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	23,893	$	544	$	274	$	21,985	$	41	$	758
Cross-currency interest rate swap contracts	885		—		49		885		—		79
Derivatives not designated as hedging instruments
Interest rate contracts	50,060		338		126		49,854		496		195
Foreign currency exchange contracts	4,407		66		2		4,695		51		29
Cross-currency interest rate swap contracts	6,533		117		61		6,520		51		276
Total derivative financial instruments, gross (a) (b)	$	85,778	$	1,065	$	512	$	83,939	$	639	$	1,337

__________

(a)At December 31, 2021 and March 31, 2022, we held collateral of $26 million and $102 million, respectively, and we posted collateral of $71 million and $109 million, respectively.

(b)At December 31, 2021 and March 31, 2022, the fair value of assets and liabilities available for counterparty netting was $415 million and $189 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.

16

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 8. OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED REVENUE

Other assets and other liabilities and deferred revenue consist of various balance sheet items that are combined for financial statement presentation due to their respective materiality compared with other individual asset and liability items.

Other assets were as follows (in millions):

	December 31, 2021		March 31, 2022
Prepaid reinsurance premiums and other reinsurance recoverables	$	743	$	751
Accrued interest and other non-finance receivables	584		538
Property and equipment, net of accumulated depreciation (a)	224		225
Deferred charges - income taxes	190		207
Collateral held for resale, at net realizable value	258		188
Investment in non-consolidated affiliates	133		159
Restricted cash	128		119
Operating lease assets	76		71
Other	188		224
Total other assets	$	2,524	$	2,482

__________

(a)Accumulated depreciation was $397 million and $403 million at December 31, 2021 and March 31, 2022, respectively.

Other liabilities and deferred revenue were as follows (in millions):

	December 31, 2021		March 31, 2022
Unearned insurance premiums and fees	$	857	$	864
Interest payable	667		544
Income tax and related interest (a)	229		232
Operating lease liabilities	78		73
Deferred revenue	62		26
Other	273		226
Total other liabilities and deferred revenue	$	2,166	$	1,965

__________

(a)Includes income tax and interest payable to affiliated companies of $101 million and $127 million at December 31, 2021 and March 31, 2022, respectively.

17

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 9. DEBT

Debt outstanding and interest rates were as follows (in millions):

					Interest Rates
	Debt				Average Contractual				Average Effective
	December 31, 2021		March 31, 2022		2021		2022		2021		2022
Short-term debt
Unsecured debt
Floating rate demand notes	$	9,400	$	9,870
Other short-term debt	4,701		3,615
Asset-backed debt (a)	709		603
Total short-term debt	14,810		14,088		1.2	%	1.2	%	1.3	%	1.3	%
Long-term debt
Unsecured debt
Notes payable within one year	13,660		12,045
Notes payable after one year	44,337		43,651
Asset-backed debt (a)
Notes payable within one year	18,049		19,219
Notes payable after one year	26,654		27,365
Unamortized (discount)/premium	29		27
Unamortized issuance costs	(212)		(219)
Fair value adjustments (b)	390		(660)
Total long-term debt	102,907		101,428		2.6	%	2.6	%	2.6	%	2.6	%
Total debt	$	117,717	$	115,516	2.4	%	2.4	%	2.4	%	2.4	%
Fair value of debt (c)	$	120,204	$	115,576

__________

(a)Asset-backed debt issued in securitizations is the obligation of the consolidated securitization entity that issued the debt and is payable only out of collections on the underlying securitized assets and related enhancements. This asset-backed debt is not the obligation of Ford Credit or our other subsidiaries.

(b)These adjustments are related to hedging activity and include discontinued hedging relationship adjustments of $257 million and $242 million at December 31, 2021 and March 31, 2022, respectively. The carrying value of hedged debt was $37.5 billion and $36.3 billion at December 31, 2021 and March 31, 2022, respectively.

(c)At December 31, 2021 and March 31, 2022, the fair value of debt includes $14.1 billion and $13.5 billion of short-term debt, respectively, carried at cost, which approximates fair value. All other debt is categorized within Level 2 of the fair value hierarchy.

NOTE 10. RESTRUCTURING ACTIONS

In June 2021, we announced that our subsidiaries in Brazil and Argentina would cease originating receivables and wind down operations. In the first quarter of 2022, we liquidated two of our investments in Brazil and reclassified foreign currency translation losses of $119 million to net income, included in Other income/(loss), net.

In December 2021, we received a capital contribution from a subsidiary of Ford in exchange for a minority interest share in one of our Argentina-based subsidiaries. As a result, we recorded $22 million in Shareholder’s interest attributable to noncontrolling interests on our consolidated balance sheets. During the first quarter of 2022, we reacquired Ford’s minority interest share and, in exchange, transferred assets associated with an Argentina-based subsidiary to Ford. In addition, during the first quarter of 2022, we sold our shares in a second Argentina-based subsidiary to Ford. The difference between the carrying value of the net assets transferred and sold to Ford and the consideration received from Ford was $61 million, reported as a reduction to Shareholder’s interest. As a result of the transfer and sale, Ford Credit reclassified $75 million of accumulated foreign currency translation losses to net income, included in Other income/(loss), net.

Accumulated foreign currency translation losses associated with our remaining investments in Brazil and Argentina included in Accumulated other comprehensive income/(loss) at March 31, 2022 were $259 million. We expect to reclassify these losses to income upon substantially complete liquidation of our investments, which may occur over multiple reporting periods. Although the timing for the completion of these actions is uncertain, we expect the majority of losses to be recognized in 2024 or later.

18

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 11. OTHER INCOME/(LOSS)

Other income/(loss) consists of various line items that are combined on the consolidated income statements due to their respective materiality compared with other individual income and expense items.

The amounts included in Other income/(loss), net for the periods ended March 31 were as follows (in millions):

	First Quarter
	2021		2022
Gains/(Losses) on derivatives	$	(265)	$	(123)
Currency revaluation gains/(losses)	183		152
Interest and investment income (a)	(2)		(5)
Gains/(Losses) on changes in investments in affiliates (b)	1		(195)
Other	8		2
Total other income/(loss), net	$	(75)	$	(169)

__________

(a)Includes a $20 million unrealized gain for an observable price event on a non-consolidated investment.

(b)Includes losses related to our restructuring in South America described in Note 10.

19

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 12. SEGMENT INFORMATION

We conduct our financing operations directly and indirectly through our subsidiaries and affiliates. We offer substantially similar products and services throughout many different regions, subject to local legal restrictions and market conditions. In our consolidated financial statements, we have three reportable segments based on geographic regions: the United States and Canada, Europe, and All Other. Our All Other segment includes China, India, Mexico, Brazil, Argentina, and our joint venture in South Africa. Items excluded in assessing segment performance because they are managed at the corporate level, including market valuation adjustments to derivatives and exchange-rate fluctuations on foreign currency-denominated transactions, are reflected in Unallocated Other. Effective for the first quarter of 2022, we have eliminated the use of non-GAAP measures and now present receivables on a net basis.

Key financial information for our business segments for the periods ended or at March 31 was as follows (in millions):

	United States and Canada		Europe		All Other		Total Segments		Unallocated Other (a)		Total
First Quarter 2021
Total revenue	$	2,384	$	241	$	92	$	2,717	$	—	$	2,717
Income before income taxes	996		66		(15)		1,047		(85)		962
Depreciation on vehicles subject to operating leases	562		6		—		568		—		568
Interest expense	638		80		56		774		30		804
Provision for credit losses	(52)		(1)		13		(40)		—		(40)
Net finance receivables and net investment in operating leases (a) (b)	100,542		21,943		4,653		127,138		—		127,138
Total assets	116,720		25,110		5,438		147,268		—		147,268
First Quarter 2022
Total revenue	$	2,029	$	195	$	102	$	2,326	$	—	$	2,326
Income before income taxes	783		69		(174)		678		76		754
Depreciation on vehicles subject to operating leases	526		(11)		—		515		—		515
Interest expense	542		55		57		654		(43)		611
Provision for credit losses	(67)		(3)		6		(64)		—		(64)
Net finance receivables and net investment in operating leases (a)	93,955		17,991		5,449		117,395		—		117,395
Total assets	106,762		20,633		6,182		133,577		—		133,577

__________

(a)Excludes held-for-sale finance receivables.

(b)Prior periods have been restated to display net receivables in lieu of the non-GAAP measure of managed receivables.

NOTE 13. COMMITMENTS AND CONTINGENCIES

Commitments and contingencies primarily consist of guarantees and indemnifications as well as litigation and claims.

Guarantees and Indemnifications

Guarantees and indemnifications are recorded at fair value at their inception. For financial guarantees, subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. The probability of default is applied to the expected exposure at the time of default less recoveries to determine the expected payments. Factors to consider when estimating the probability of default include the obligor’s financial position, forecasted economic environment, historical loss rates, and other communications. For non-financial guarantees, we regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the amount of probable payment is recorded.

20

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 13. COMMITMENTS AND CONTINGENCIES (Continued)

The maximum potential payments under these guarantees and limited indemnities totaled $102 million at both December 31, 2021 and March 31, 2022, respectively. Of these values, $19 million and $22 million at December 31, 2021 and March 31, 2022, respectively, were counter-guaranteed by Ford to us. There were no recorded liabilities related to guarantees and limited indemnities at December 31, 2021 or March 31, 2022.

In some cases, we have guaranteed debt and other financial obligations of outside third parties and unconsolidated affiliates, including Ford. Expiration dates vary, and guarantees will terminate on payment and/or cancellation of the underlying obligation. A payment by us would be triggered by the failure of the third party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from a third party amounts paid by us under the guarantee. However, our ability to enforce these rights is sometimes stayed until the guaranteed party is paid in full and may be limited in the event of insolvency of the third party or other circumstances.

In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction. These indemnifications might include and are not limited to claims relating to any of the following: environmental, tax, and shareholder matters; intellectual property rights; governmental regulations and employment-related matters; dealer and other commercial contractual relationships; and financial matters, such as securitizations. Performance under these indemnities generally would be triggered by a breach of the contract brought by a counterparty or a third-party claim. While some of these indemnifications are limited in nature, many of them do not limit potential payment. Therefore, we are unable to estimate a maximum amount of future payments that could result from claims made under these unlimited indemnities.

Litigation and Claims

Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include, but are not limited to, matters arising out of governmental regulations; tax matters; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer and other contractual relationships; personal injury matters; investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages in very large amounts, sanctions, assessments, or other relief, which, if granted, would require very large expenditures.

The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome.

We accrue for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time.

For nearly all matters where our historical experience with similar matters is of limited value (i.e., “non-pattern matters”), we evaluate the matters primarily based on the individual facts and circumstances. For non-pattern matters, we evaluate whether there is a reasonable possibility of a material loss in excess of any accrual that can be estimated. It is reasonably possible that some of the matters for which accruals have not been established could be decided unfavorably and could require us to pay damages or make other expenditures. We do not reasonably expect, based on our analysis, that such matters would have a material effect on future financial statements for a particular year, although such an outcome is possible.

As noted, the litigation process is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance. Our assessments are based on our knowledge and experience, but the ultimate outcome of any matter could require payment substantially in excess of the amount that we have accrued and/or disclosed.

21

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Recent Developments

COVID-19 and Supplier Disruptions

The impact of COVID-19, including changes in consumer behavior, pandemic fears and market downturns, and restrictions on business and individual activities, has created significant volatility in the global economy. Recent outbreaks in certain regions, including China where lock-downs due to COVID-19 have been imposed in more than 40 cities, continue to cause intermittent COVID-19-related disruptions in Ford’s supply chain. Ford also continues to face supplier disruptions due to the semiconductor shortage. Further, actions taken by Russia in Ukraine could impact Ford’s suppliers, particularly its lower tier suppliers, as well as Ford’s operations in Europe. For additional information regarding the impact of supplier disruptions, see the “Key Trends and Economic Factors Affecting Ford and the Automotive Industry” section in Item 7 of Ford Motor Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as supplemented by Item 2 of Ford Motor Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.

Inflation

Despite recent increases, interest rates, notably mature market government bond yields, remain low by historical standards. At the same time, inflation has accelerated and government deficits and debt remain at high levels in many major markets. In the United States, inflation rose 8.5% annually in March 2022 to a 40-year high as Russia’s invasion of Ukraine drove up energy costs as well as other costs. The eventual implications of higher government deficits and debt, tighter monetary policy, and potentially higher long-term interest rates may drive a higher cost of capital during our plan period.

Reporting Changes

Effective with the first quarter of 2022, we no longer review our business performance on a managed basis. Accordingly, we will no longer include managed receivables or managed leverage in our periodic reports.

22

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Definitions and Information Regarding Causal Factors

In general, we measure year-over-year changes in EBT using the causal factors listed below:

•Volume and Mix – Volume and Mix are primarily reflected within Net financing margin on the consolidated income statements.

◦Volume primarily measures changes in net financing margin driven by changes in average net receivables excluding the allowance for credit losses at prior period financing margin yield (defined below in financing margin) at prior period exchange rates. Volume changes are primarily driven by the volume of new and used vehicles sold and leased, the extent to which we purchase retail financing and operating lease contracts, the extent to which we provide wholesale financing, the sales price of the vehicles financed, the level of dealer inventories, Ford-sponsored special financing programs available exclusively through us, and the availability of cost-effective funding.

◦Mix primarily measures changes in net financing margin driven by period-over-period changes in the composition of our average net receivables excluding the allowance for credit losses by product within each region.

•Financing Margin – Financing Margin is reflected within Net financing margin on the consolidated income statements.

◦Financing margin variance is the period-to-period change in financing margin yield multiplied by the present period average net receivables excluding the allowance for credit losses at prior period exchange rates. This calculation is performed at the product and country level and then aggregated. Financing margin yield equals revenue, less interest expense and scheduled depreciation for the period, divided by average net receivables excluding the allowance for credit losses for the same period.

◦Financing margin changes are driven by changes in revenue and interest expense. Changes in revenue are primarily driven by the level of market interest rates, cost assumptions in pricing, mix of business, and competitive environment. Changes in interest expense are primarily driven by the level of market interest rates, borrowing spreads, and asset-liability management.

•Credit Loss – Credit Loss is reflected within Provision for/(Benefit from) credit losses on the consolidated income statements.

◦Credit loss is the change in the provision for credit losses at prior period exchange rates. For analysis purposes, management splits the provision for credit losses into net charge-offs and the change in the allowance for credit losses.

◦Net charge-off changes are primarily driven by the number of repossessions, severity per repossession, and recoveries. Changes in the allowance for credit losses are primarily driven by changes in historical trends in credit losses and recoveries, changes in the composition and size of our present portfolio, changes in trends in historical used vehicle values, and changes in forward looking macroeconomic conditions. For additional information, refer to the “Critical Accounting Estimates - Allowance for Credit Losses” section of Item 7 of Part II of our 2021 Form 10-K Report.

•Lease Residual – Lease Residual is reflected within Depreciation on vehicles subject to operating leases on the consolidated income statements.

◦Lease residual measures changes to residual performance at prior period exchange rates. For analysis purposes, management splits residual performance primarily into residual gains and losses, and the change in accumulated supplemental depreciation.

◦Residual gain and loss changes are primarily driven by the number of vehicles returned to us and sold, and the difference between the auction value and the depreciated value (which includes both base and accumulated supplemental depreciation) of the vehicles sold. Changes in accumulated supplemental depreciation are primarily driven by changes in our estimate of the expected auction value at the end of the lease term and changes in our estimate of the number of vehicles that will be returned to us and sold. Depreciation on vehicles subject to operating leases reflects early termination losses on operating leases due to customer default events. For additional information, refer to the “Critical Accounting Estimates – Accumulated Depreciation on Vehicles Subject to Operating Leases” section of Item 7 of Part II of our 2021 Form 10-K Report.

•Exchange – Reflects changes in EBT driven by the effects of converting functional currency income to U.S. dollars.

23

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

•Other – Primarily includes Operating expenses, Other revenue, Insurance expenses, and Other income/(Loss), net on the consolidated income statements at prior period exchange rates.

◦Changes in operating expenses are primarily driven by salaried personnel costs, facilities costs, and costs associated with the origination and servicing of customer contracts.

◦In general, other income/(loss) changes are primarily driven by changes in earnings related to market valuation adjustments to derivatives (primarily related to movements in interest rates), which are included in unallocated risk management, and other miscellaneous items.

•    Cash (as shown in the Funding and Liquidity section) – Cash and cash equivalents and Marketable securities reported on Ford Credit’s balance sheets, excluding amounts related to insurance activities.

•    Debt (as shown in the Key Metrics and Leverage tables) – Debt on Ford Credit’s balance sheets. Includes debt issued in securitizations and payable only out of collections on the underlying securitized assets and related enhancements. Ford Credit holds the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions.

•    Earnings Before Taxes (“EBT”) – Reflects Income before income taxes as reported on our consolidated income statements.

•Loss-to-Receivables (“LTR”) Ratio (as shown in Credit Loss tables) – LTR ratio is calculated using net charge-offs divided by average finance receivables, excluding unearned interest supplements and the allowance for credit losses.

•    Reserve as a % of EOP Receivables Ratio (as shown in the Credit Loss tables) – The reserve as a percentage of EOP receivables ratio is calculated as the credit loss reserve amount, divided by end of period finance receivables, excluding unearned interest supplements and the allowance for credit losses.

•    Return on Equity (“ROE”) (as shown in the Key Metrics table) – Reflects return on equity calculated by annualizing net income for the period and dividing by monthly average equity for the period.

•Securitization and Restricted Cash (as shown in the Liquidity table) – Securitization cash is held for the benefit of the securitization investors (for example, a reserve fund). Restricted cash primarily includes cash held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of certain contractual agreements.

•    Securitizations (as shown in the Public Term Funding Plan table) – Public securitization transactions, Rule 144A offerings sponsored by Ford Credit, and widely distributed offerings by Ford Credit Canada.

•    Term Asset-Backed Securities (as shown in the Funding Structure table) – Obligations issued in securitization transactions that are payable only out of collections on the underlying securitized assets and related enhancements.

•Total Net Receivables (as shown in the Key Metrics and Financial Condition tables) – Includes finance receivables (retail financing and wholesale) sold for legal purposes and net investment in operating leases included in securitization transactions that do not satisfy the requirements for accounting sale treatment. These receivables and operating leases are reported on Ford Credit’s balance sheets and are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions; they are not available to pay the other obligations of Ford Credit or the claims of Ford Credit’s other creditors.

•    Unallocated Other (as shown in the Segment Results table) – Items excluded in assessing segment performance because they are managed at the corporate level, including market valuation adjustments to derivatives and exchange-rate fluctuations on foreign currency-denominated transactions.

24

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Results of Operations

Key Metrics

	First Quarter
GAAP Financial Measures	2021			2022			H / (L)
Total Net Receivables ($B)	$	127.1		$	117.4		(8)		%
Loss-to-Receivables (bps) (a)	22			8			(14)
Auction values (b)	$	22,955		$	30,300		32		%
EBT ($M)	$	962		$	754		$	(208)
ROE (%)	22.0		%	21.6		%	(0.4) ppts
Other Balance Sheet Metrics
Debt ($B)	$	126.8		$	115.5		(9)		%
Net liquidity ($B)	$	33.7		$	28.4		(16)		%
Financial statement leverage (to 1)	8.3			9.5			1.2

__________

(a)United States retail financing only.

(b)United States 36-month off-lease auction values at Q1 2022 mix.

First Quarter 2022 Compared with First Quarter 2021

The following table shows the factors that contributed to the first quarter 2022 EBT (in millions):

Change in EBT by Causal Factor
First quarter 2021 EBT	$	962
Volume / Mix	(78)
Financing margin	(101)
Credit loss	24
Lease residual	(5)
Exchange	11
Other	(59)
First quarter 2022 EBT	$	754

Our first quarter 2022 EBT was $754 million, $208 million lower than a year ago, primarily reflecting unfavorable net financing margin, lower volume due to supply constraints on new vehicle production, and the effects of our restructuring in South America (which is included in Other), partially offset by positive market valuation adjustments to derivatives (which is also included in Other). ROE was 21.6%, 0.4 percentage points lower than a year ago driven by lower net income. Total net receivables were $9.7 billion lower than a year ago, an 8% decline, resulting from lower volume due to supply constraints. The LTR ratio remained at a low level in the first quarter of 2022, at eight basis points, 14 basis points lower than a year ago. First quarter 2022 auction values were 32% higher than a year ago. Our balance sheet is strong and inherently liquid, reflecting cumulative debt maturities having a longer tenor than asset maturities. This means that we generate liquidity as our balance sheet size declines because of lower Ford volume. At the end of the first quarter, we had $28.4 billion in net liquidity.

25

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Segment Results

Results of operations by segment and Unallocated Other for the periods ended March 31 are shown below (in millions):

	First Quarter
	2021		2022		H / (L)
Results
United States and Canada segment	$	996	$	783	$	(213)
Europe segment	66		69		3
All Other segment	(15)		(174)		(159)
Total segments earnings before taxes	$	1,047	$	678	$	(369)
Unallocated other	(85)		76		161
Earnings before taxes	$	962	$	754	$	(208)
Provision for/(Benefit from) income taxes	117		85		(32)
Net Income	$	845	$	669	$	(176)

For additional information, see Note 12 of our Notes to the Financial Statements.

United States and Canada Segment

The United States and Canada segment first quarter 2022 EBT of $783 million was $213 million lower than first quarter 2021, explained primarily by unfavorable financing margin, lower volume driven by supply constraints, and lower lease residual gains driven by lower lease return volume, offset partially by a $20 million unrealized gain on an equity investment recognized in the first quarter of 2022.

Europe Segment

The Europe segment first quarter 2022 EBT of $69 million was $3 million higher than first quarter 2021, explained primarily by favorable residual performance, offset partially by lower volume reflecting supply constraints on new vehicle production.

All Other Segment

The All Other segment first quarter 2022 loss of $174 million was $159 million lower than first quarter 2021, explained primarily by our exit from Brazil and Argentina which resulted in losses of $194 million being recognized in the first quarter of 2022. For additional information on our restructuring in South America, refer to Note 10 of our Notes to the Financial Statements.

Unallocated Other

Unallocated Other was a $76 million gain for first quarter 2022, a $161 million improvement from first quarter 2021, reflecting positive market valuation adjustments to derivatives due to higher interest rates.

26

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Financing Shares and Contract Placement Volume

Our focus is on supporting Ford and Lincoln dealers and customers. This includes going to market with Ford and our dealers to support vehicle sales with financing products and marketing programs. Ford’s marketing programs may encourage or require Ford Credit financing and influence the financing choices customers make. As a result, our financing share, volume, and contract characteristics vary from period to period as Ford’s marketing programs change.

The following table shows our retail financing and operating lease share of new Ford and Lincoln brand sales, wholesale financing share of new Ford and Lincoln brand vehicles acquired by dealers (in percent), and contract placement volume for new and used vehicles (in thousands) in several key markets:

	First Quarter
	2021		2022
Share of Ford and Lincoln Sales (a)
United States	47	%	45	%
Canada	60		60
United Kingdom	35		34
Germany	37		33
China	41		44
Wholesale Share
United States	72	%	73	%
Canada	13		8
United Kingdom	100		100
Germany	91		92
China	66		65
Contract Placement Volume - New and Used (000)
United States	196		162
Canada	25		20
United Kingdom	25		22
Germany	18		14
China	32		30

__________

(a)United States and Canada exclude Fleet sales, other markets include Fleet sales.

Contract placement volumes in our key markets in the first quarter of 2022 were lower than a year ago, primarily reflecting lower Ford sales.

27

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Financial Condition

Our receivables, including finance receivables and operating leases, were as follows (in billions):

	March 31, 2021		December 31, 2021		March 31, 2022
Net Receivables
United States and Canada Segment
Consumer financing	$	57.4	$	55.6	$	54.8
Non-Consumer financing	16.8		13.7		15.0
Net investment in operating leases	26.3		25.0		24.2
Total United States and Canada Segment	$	100.5	$	94.3	$	94.0
Europe Segment
Consumer financing	$	14.3	$	12.7	$	12.1
Non-Consumer financing	7.3		4.7		5.7
Net investment in operating leases	0.3		0.2		0.2
Total Europe Segment	$	21.9	$	17.6	$	18.0
All Other Segment
Consumer financing	$	3.6	$	4.3	$	4.3
Non-Consumer financing	1.1		1.3		1.1
Net investment in operating leases	—		—		—
Total Other Segment	$	4.7	$	5.6	$	5.4
Total net receivables	$	127.1	$	117.5	$	117.4

At March 31, 2021, December 31, 2021, and March 31, 2022, total net receivables includes consumer receivables before allowance for credit losses of $41.2 billion, $39.0 billion, and $38.3 billion, respectively, and non-consumer receivables before allowance for credit losses of $15.3 billion, $12.0 billion, and $11.9 billion, respectively, that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. In addition, at March 31, 2021, December 31, 2021, and March 31, 2022, total net receivables includes net investment in operating leases of $10.0 billion, $7.5 billion, and $10.2 billion, respectively, that have been included in securitization transactions but continue to be reported in our consolidated financial statements. The receivables and net investment in operating leases are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions; they are not available to pay the other obligations or the claims of our other creditors. We hold the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. For additional information on our securitization transactions, refer to the “Securitization Transactions” and “On-Balance Sheet Arrangements” sections of Item 7 of Part II of our 2021 Form 10-K Report and Note 6 of our Notes to the Financial Statements herein.

Total net receivables at March 31, 2022 were $9.7 billion lower compared with March 31, 2021, an 8% decline resulting from lower volume due to supply constraints. Compared to December 31, 2021, total net receivables were $0.1 billion lower.

Our operating lease portfolio was 21% of total net receivables at March 31, 2022. Leasing is an important product, and our leasing strategy balances sales, share, residuals, and long-term profitability. Operating leases in the United States and Canada represent 99% of our total operating lease portfolio.

28

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Credit Risk

Credit risk is the possibility of loss from a customer’s or dealer’s failure to make payments according to contract terms. Credit losses are a normal part of a lending business, and credit risk has a significant impact on our business. We manage the credit risk of our consumer (retail financing) and non-consumer (dealer financing) receivables to balance our level of risk and return using our consistent underwriting standards, effective proprietary scoring system (discussed below), and world-class servicing. The allowance for credit losses (also referred to as the credit loss reserve) represents our estimate of the expected credit losses inherent in our finance receivables for the lifetime of those receivables as of the balance sheet date. The allowance for credit losses is estimated using a combination of models and management judgment and is based on such factors as historical loss performance, portfolio quality, receivable levels, and forward-looking macroeconomic scenarios. The adequacy of our allowance for credit losses is assessed quarterly and the assumptions and models used in establishing the allowance are evaluated regularly.

Most of our charge-offs are related to retail financing. Net charge-offs are affected by the number of vehicle repossessions, the unpaid balance outstanding at the time of repossession, the auction price of repossessed vehicles, and other amounts owed. We also incur credit losses on our dealer financing, but default rates for these receivables historically have been substantially lower than those for retail financing.

In purchasing retail financing contracts, we use a proprietary scoring system that measures credit quality using information from sources including the credit application, proposed contract terms, credit bureau data, and other information. After a proprietary risk score is generated, we decide whether to purchase a contract using a decision process based on a judgmental evaluation of the applicant, the credit application, the proposed contract terms, credit bureau information (e.g., FICO score), proprietary risk score, and other information. Our evaluation emphasizes the applicant’s ability to pay and the applicant’s creditworthiness with a focus on payment, affordability, applicant credit history, and stability as key considerations. While FICO is a part of our scoring system, our models enable us to more effectively determine the probability that a customer will pay than using credit scores alone. When we originate business, our models project expected losses and we price accordingly. We ensure the business fits our risk appetite.

For additional information on our allowance for credit losses and the quality of our receivables, see Note 4 of our Notes to the Financial Statements.

United States Origination Metrics

The following table shows United States retail financing and operating lease average placement FICO and higher risk portfolio mix metrics. Also shown are extended term mix and United States retail financing average placement terms.

	First Quarter
	2021		2022
Origination Metrics
Average placement FICO	748		749
Higher risk portfolio mix	6	%	5	%
Greater than or equal to 84 months placement mix	4	%	4	%
Average placement term (months)	64		61

Our first quarter 2022 average placement FICO score increased compared with the same period a year ago, and remained strong. We support customers across the credit spectrum. Our higher risk business, as classified at contract inception, represents 5% of our portfolio and has been stable for over 15 years.

During the first quarter of 2022, our average retail financing placement term decreased by three months from a year ago. Retail financing contracts of 84 months and longer remained flat compared to a year ago, and continue to be a small part of our business. We remain focused on managing the trade cycle—building customer relationships and loyalty while offering financing products and terms that customers want. Our origination and risk management processes deliver robust portfolio performance.

29

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

United States Retail Financing Credit Losses

The following table shows the primary drivers of credit losses in the United States retail financing business, which comprised 65% of our worldwide consumer finance receivables at March 31, 2022.

	First Quarter
	2021			2022
Credit Loss Drivers
Over-60-Day delinquencies (excl. bankruptcies)	0.13		%	0.14		%
Repossessions (000)	5			4
Repossession ratio	0.92		%	0.74		%
Loss severity (000) (a)	$	10.6		$	8.1
Net charge-offs ($M)	$	29		$	10
LTR ratio (%) (b)	0.22		%	0.08		%

__________

(a)The expected difference between the amount a customer owes when the finance contract is charged off and the amount received, net of expenses, from selling the repossessed vehicle.

(b) See Definitions and Information Regarding Causal Factors section for calculation.

Delinquencies and net charge-offs remained at low levels during the first quarter. The first quarter 2022 repossessions, repossession ratio, and severity were lower than a year ago. Our improved LTR ratio and net charge-offs for the first quarter of 2022, compared to the prior year, reflect changes in consumer spending behavior and high used vehicle auction values that contributed to the extraordinarily low losses. Although the impact of the COVID-19 pandemic has created significant volatility in the economy, the macroeconomic outlook has improved since the onset of the pandemic, and credit performance has remained strong. However, rising inflation has caused further economic uncertainty, and the future impact on our retail credit losses remains uncertain.

Worldwide Credit Losses

The following table shows key metrics related to worldwide credit losses:

	First Quarter
	2021			2022
Net charge-offs ($M)	$	41		$	18
LTR ratio (%) (a)	0.16		%	0.08		%
Credit loss reserve ($M)	$	1,223		$	845
Reserve as percent of EOP Receivables (a)	1.17		%	0.87		%

__________

(a)See Definitions and Information Regarding Causal Factors section for calculation.

Our worldwide credit loss metrics remain strong. Net charge-offs and the worldwide LTR ratio in the first quarter of 2022 improved from a year ago reflecting changes in consumer spending behaviors and the impact of high used vehicle auction values.

Our credit loss reserve is based on such factors as historical loss performance, portfolio quality, receivables level, and forward-looking macroeconomic scenarios. The credit loss reserve and reserve as a percent of end of period receivables were both lower than a year ago, reflecting low net charge-offs and an improved macroeconomic outlook that caused us to lower our expectation of lifetime losses attributable to macroeconomic assumptions driven by COVID-19. The credit loss reserve at March 31, 2022 considers a range of potential scenarios that include the economic impact of rising inflation, high energy prices, and supply chain disruptions. Our credit loss reserve reflects lifetime expected losses as of the balance sheet date and is adjusted accordingly based on our assessment of the portfolio and economic trends and conditions. During the first quarter of 2022, we reduced our reserve, primarily due to improvements in the economic outlook that caused us to lower our expectation of lifetime losses attributable to macroeconomic assumptions driven by the COVID-19 pandemic. See Note 4 of our Notes to the Financial Statements for more information.

30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Residual Risk

Leasing is an important product that many customers want and value, and operating lease customers also are more likely to buy or lease another Ford or Lincoln vehicle. We manage our lease share with an enterprise view to support sales, protect residual values, and manage the trade cycle. Ford Credit and Ford work together under a leasing strategy that considers share, term, model mix, geography, and other factors.

We are exposed to residual risk on operating leases and similar balloon payment products where the customer may return the financed vehicle to us. Residual risk is the possibility that the amount we obtain from returned vehicles will be less than our estimate of the expected residual value for the vehicle. We estimate the expected residual value by evaluating recent auction values, return volumes for our leased vehicles, industry wide used vehicle prices, marketing incentive plans, and vehicle quality data. For operating leases, changes in expected residual values impact depreciation expense, which is recognized on a straight-line basis over the life of the lease.

For additional information on our residual risk on operating leases, refer to the “Critical Accounting Estimates – Accumulated Depreciation on Vehicles Subject to Operating Leases” section of Item 7 of Part II of our 2021 Form 10-K Report.

United States Ford and Lincoln Brand Operating Leases

The following table shows share of Ford and Lincoln brand retail financing and operating lease sales, placement volume, and residual performance metrics for our United States operating lease portfolio, which represents 82% of our total net investment in operating leases at March 31, 2022.

	First Quarter
	2021			2022
Lease Share of Retail Sales
Ford Credit	16		%	14		%
Industry (a)	26		%	19		%
Placement Volume (000)
24-Month	10			12
36-Month	41			24
39-Month / Other	11			8
Total	62			44
Residual Performance
Return rates	61		%	11		%
Return volume (000)	51			9
Off-lease auction values (b)	$	22,955		$	30,300

__________

(a)Source: J.D. Power PIN.

(b)36-month off-lease auction values; quarterly amounts at Q1 2022 mix.

Our United States operating lease share of retail sales in the first quarter of 2022 was lower compared with a year ago and remains below the industry average, reflecting the Ford sales mix. Our first quarter 2022 total lease placement volume was down compared with a year ago, reflecting lower total industry volume, lower Ford retail deliveries, and lower Ford Credit share of Ford retail sales.

Lease return volume and return rate in the first quarter of 2022 were down from a year ago, reflecting improved auction values. Our first quarter 2022 36-month off-lease auction values were up 32% year-over-year, reflecting continued strong demand for used vehicles including the impact of lower new vehicle production due to supply constraints.

31

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Credit Ratings

Our short-term and long-term debt is rated by four credit rating agencies designated as nationally recognized statistical rating organizations (“NRSROs”) by the United States Securities and Exchange Commission (“SEC”): DBRS, Fitch, Moody’s, and S&P.

In several markets, locally recognized rating agencies also rate us. A credit rating reflects an assessment by the rating agency of the credit risk associated with a corporate entity or particular securities issued by that entity. Rating agencies’ ratings of us are based on information provided by us and other sources. Credit ratings assigned to us from all of the NRSROs are closely associated with their opinions on Ford. Credit ratings are not recommendations to buy, sell, or hold securities and are subject to revision or withdrawal at any time by the assigning rating agency. Each rating agency may have different criteria for evaluating company risk and, therefore, ratings should be evaluated independently for each rating agency.

There have been no rating actions taken by these NRSROs since the filing of our 2021 Form 10-K Report.

The following table summarizes certain of the credit ratings and outlook presently assigned by these four NRSROs:

		NRSRO RATINGS
		Ford Credit						NRSROs
	Long-Term Senior Unsecured		Short -Term Unsecured		Outlook/Trend		Minimum Long-Term Investment Grade Rating
DBRS		BB (high)		R-4		Stable		BBB (low)
Fitch		BB+		B		Stable		BBB-
Moody’s		Ba2		NP		Stable		Baa3
S&P		BB+		B		Positive		BBB-

32

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Funding and Liquidity

We ended the first quarter of 2022 with $28.4 billion of liquidity. During the quarter, we completed $5 billion of public term funding.

Key elements of our funding strategy include:

•Maintain strong liquidity;

•Prudently access public markets;

•Continue growth of retail deposits in Europe;

•Flexibility to increase ABS mix as needed; preserving assets and committed capacity;

•Target financial statement leverage of 9:1 to 10:1; and

•Maintain self-liquidating balance sheet.

Our liquidity profile continues to be diverse, robust, and focused on maintaining liquidity levels that meet our business and funding requirements. We regularly stress test our balance sheet and liquidity to ensure that we continue to meet our financial obligations through economic cycles.

The following table shows funding for our net receivables (in billions):

Funding Structure	March 31, 2021			December 31, 2021			March 31, 2022
Term unsecured debt	$	66.1		$	59.4		$	55.1
Term asset-backed securities	50.2			45.4			47.1
Ford Interest Advantage / Retail Deposits	10.5			12.9			13.3
Other	(0.9)			(0.2)			1.7
Equity	15.3			12.4			12.1
Adjustments for cash	(14.1)			(12.4)			(11.9)
Total Net Receivables	$	127.1		$	117.5		$	117.4
Securitized Funding as a percent of Total Debt	39.6		%	38.5		%	40.8		%

Net receivables of $117.4 billion as of March 31, 2022, were funded primarily with term unsecured debt and term asset-backed securities. Securitized funding as a percent of total debt was 40.8% at the end of the first quarter. Securitized funding is presented as a percentage of total debt in lieu of managed receivables. Historically, securitized funding as a percentage of total debt has been approximately two percentage points higher than securitized funding as a percentage of managed receivables.

Public Term Funding Plan

The following table shows our issuances for full year 2020 and 2021, planned issuances for full year 2022, and our global public term funding issuances through April 26, 2022, excluding short-term funding programs (in billions):

	2020 Actual		2021 Actual		2022 Forecast	Through April 26
Unsecured	$	14	$	5	8-11	$	4
Securitizations	13		9		6-9	3
Total public	$	27	$	14	14-20	$	7

For 2022, we project full year public term funding in the range of $14 billion to $20 billion. Through April 26, 2022, we have completed $7 billion of public term issuances.

Liquidity

We define gross liquidity as cash, cash equivalents, and marketable securities (excluding amounts related to insurance activities) and committed capacity (which includes our asset-backed facilities and unsecured credit facilities), less utilization of liquidity. Utilization of liquidity is the amount funded under our liquidity sources and also includes the cash required to support securitization transactions and restricted cash. Net liquidity available for use is defined as gross liquidity less certain adjustments as described below. While not included in available liquidity, these adjustments represent additional funding sources for future originations.

The following table shows our liquidity sources and utilization (in billions):

	March 31, 2021		December 31, 2021		March 31, 2022
Liquidity Sources
Cash	$	14.1	$	12.4	$	11.9
Committed asset-backed facilities	38.2		37.1		36.1
Other unsecured credit facilities	2.5		2.7		2.8
Total liquidity sources	$	54.8	$	52.2	$	50.8
Utilization of Liquidity
Securitization and restricted cash	$	(5.4)	$	(3.9)	$	(3.0)
Committed asset-backed facilities	(11.9)		(12.5)		(17.0)
Other unsecured credit facilities	(0.6)		(1.0)		(0.4)
Total utilization of liquidity	$	(17.9)	$	(17.4)	$	(20.4)
Gross liquidity	$	36.9	$	34.8	$	30.4
Asset-backed capacity in excess of eligible receivables and other adjustments	(3.2)		(2.8)		(2.0)
Net liquidity available for use	$	33.7	$	32.0	$	28.4

Our net liquidity available for use will fluctuate quarterly based on factors including near-term debt maturities, receivable growth and decline, and timing of funding transactions. At March 31, 2022, our net liquidity available for use was $28.4 billion, $3.6 billion lower than year-end 2021. At March 31, 2022, our liquidity sources totaled $50.8 billion, down $1.4 billion from year-end 2021.

Cash.  At March 31, 2022, our Cash totaled $11.9 billion, compared with $12.4 billion at year-end 2021.  In the normal course of our funding activities, we may generate more proceeds than are required for our immediate funding needs.  These excess amounts are held primarily in highly liquid investments, which provide liquidity for our anticipated and unanticipated cash needs and give us flexibility in the use of our other funding programs. Our Cash primarily includes United States Department of Treasury obligations, federal agency securities, bank time deposits with investment-grade institutions, investment-grade commercial paper, debt obligations of a select group of non-U.S. governments, non-U.S. governmental agencies, supranational institutions, non-U.S. central banks, and money market funds that carry the highest possible ratings.

The average maturity of these investments ranges from approximately three to six months and is adjusted based on market conditions and liquidity needs.  We monitor our cash levels and average maturity on a daily basis.  Cash includes restricted cash and amounts to be used only to support our securitization transactions of $3.9 billion and $3.0 billion at December 31, 2021 and March 31, 2022, respectively.

Material Cash Requirements. Our material cash requirements include: (1) the purchase of retail financing and operating lease contracts from dealers and providing wholesale financing for dealers to finance new and used vehicles; and (2) debt repayments (for additional information on debt, see the “Balance Sheet Liquidity Profile” section below and the “Aggregate Contractual Obligations” table in Item 7 and Note 9 of the Notes to the Financial Statements in our 2021 Form 10-K Report). In addition, subject to approval by our Board of Directors, shareholder distributions may require the expenditure of a material amount of cash. Moreover, we may be subject to additional material cash requirements that are contingent upon the occurrence of certain events, e.g., legal contingencies, uncertain tax positions, and other matters.

We plan to utilize our liquidity (as described above) and our cash flows from business operations to fund our material cash requirements.

Committed Capacity. At March 31, 2022, our committed capacity totaled $38.9 billion, compared with $39.8 billion at December 31, 2021. Our committed capacity is primarily comprised of committed ABS facilities from bank-sponsored commercial paper conduits and other financial institutions and committed unsecured credit facilities with financial institutions.

Committed Asset-Backed Facilities. We and our subsidiaries have entered into agreements with a number of bank-sponsored asset-backed commercial paper conduits and other financial institutions. Such counterparties are contractually committed, at our option, to purchase from us eligible retail financing receivables or to purchase or make advances under asset-backed securities backed by retail financing or wholesale finance receivables or operating leases for proceeds of up to $36.1 billion ($20.3 billion of retail financing, $3.3 billion of wholesale financing, and $12.5 billion of operating leases) at March 31, 2022. In the United States, we are able to obtain funding within two days of our unutilized capacity in some of our committed asset-backed facilities. These committed facilities have varying maturity dates, with $11.3 billion having maturities within the next twelve months and the remaining balance having maturities through first quarter 2024. We plan capacity renewals to protect our global funding needs and to optimize capacity utilization.

Our ability to obtain funding under these facilities is subject to having a sufficient amount of eligible assets as well as our ability to obtain interest rate hedging arrangements for certain facilities. At March 31, 2022, $17.0 billion of these commitments were in use and we had $2.5 billion of asset-backed capacity that was in excess of eligible receivables primarily due to the decline in wholesale asset balances. These programs are free of material adverse change clauses, restrictive financial covenants (for example, debt-to-equity limitations and minimum net worth requirements), and generally, credit rating triggers that could limit our ability to obtain funding. However, the unused portion of these commitments may be terminated if the performance of the underlying assets deteriorates beyond specified levels. Based on our experience and knowledge as servicer of the related assets, we do not expect any of these programs to be terminated due to such events.

As of March 31, 2022, Ford Bank GmbH (“Ford Bank”) had liquidity of €356 million (equivalent to $395 million) and FCE Bank plc (“FCE”) had liquidity of in the form of £138 million (equivalent to $181 million) eligible collateral available for use in the monetary policy programs of the European Central Bank and Bank of England, respectively.

Unsecured Credit Facilities. At March 31, 2022, we and our majority-owned subsidiaries had $2.8 billion of contractually committed unsecured credit facilities with financial institutions, including the FCE Credit Agreement and the Ford Bank Credit Agreement. At March 31, 2022, $2.4 billion was available for use.

FCE’s £690 million (equivalent to $906 million at March 31, 2022) syndicated credit facility (the “FCE Credit Agreement”) and Ford Bank’s €240 million (equivalent to $267 million at March 31, 2022) syndicated credit facility (the “Ford Bank Credit Agreement”) both mature in 2024. At March 31, 2022, £640 million under the FCE Credit Agreement and all €240 million under the Ford Bank Credit Agreement were available for use.

Both the FCE Credit Agreement and Ford Bank Credit Agreement contain certain covenants, including an obligation for FCE and Ford Bank to maintain their ratio of regulatory capital to risk-weighted assets at no less than the applicable regulatory minimum. The FCE Credit Agreement requires the support agreement between FCE and Ford Credit to remain in effect (and enforced by FCE to ensure that its net worth is maintained at no less than $500 million). The Ford Bank Credit Agreement requires a guarantee of Ford Bank’s obligations under the agreement, provided by Ford Credit, to remain in effect. In addition, both the FCE Credit Agreement and the Ford Bank Credit Agreement include certain sustainability-linked targets, pursuant to which the applicable margin may be adjusted if Ford Motor Company achieves, or fails to achieve, the specified targets related to global manufacturing facility greenhouse gas emissions, renewable electricity consumption, and Ford Europe CO2 tailpipe emissions.

Balance Sheet Liquidity Profile

We define our balance sheet liquidity profile as the cumulative maturities, including the impact of expected prepayments and allowance for credit losses, of our finance receivables, investment in operating leases, and cash, less the cumulative debt maturities over upcoming annual periods. Our balance sheet is inherently liquid because of the short-term nature of our finance receivables, investment in operating leases, and cash. We ensure our cumulative debt maturities have a longer tenor than our cumulative asset maturities. This positive maturity profile is intended to provide additional liquidity after all of our assets have been funded and is in addition to liquidity available to protect for stress scenarios.

The following table shows our cumulative maturities for assets and total debt for the periods presented and unsecured long-term debt maturities in the individual periods presented (in billions):

	April - December 2022		2023		2024		2025 & Beyond
Balance Sheet Liquidity Profile
Assets (a)	$	56	$	85	$	108	$	134
Total debt (b)	43		69		86		116
Memo: Unsecured long-term debt maturities	8		11		11		26

__________

(a)Includes gross finance receivables less the allowance for credit losses, investment in operating leases net of accumulated depreciation, and cash. Amounts shown include the impact of expected prepayments.

(b)Excludes unamortized debt (discount)/premium, unamortized issuance costs, and fair value adjustments.

Maturities of investment in operating leases consist primarily of the portion of rental payments attributable to depreciation over the remaining life of the lease and the expected residual value at lease termination. Maturities of finance receivables and investment in operating leases in the table above include expected prepayments for our retail installment sale contracts and investment in operating leases. The table above also reflects adjustments to debt maturities to match the asset-backed debt maturities with the underlying asset maturities.

All wholesale securitization transactions and wholesale receivables are shown maturing in the next 12 months, even if the maturities extend beyond first quarter 2023. The retail securitization transactions under certain committed asset-backed facilities are assumed to amortize immediately rather than amortizing after the expiration of the commitment period. As of March 31, 2022, we had $134 billion of assets, $72 billion of which were unencumbered. For additional information on finance receivables, investment in operating leases, and debt, see Notes 4, 5, and 9 of our Notes to the Financial Statements.

Funding and Liquidity Risks

Our funding plan is subject to risks and uncertainties, many of which are beyond our control, including disruption in the capital markets, that could impact both unsecured debt and asset-backed securities issuance and the effects of regulatory changes on the financial markets. Refer to the “Funding and Liquidity Risks” section of Item 7 of Part II of our 2021 Form 10-K Report for more information.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Leverage

We use leverage, or the debt-to-equity ratio, to make various business decisions, including evaluating and establishing pricing for finance receivable and operating lease financing, and assessing our capital structure. We refer to our shareholder’s interest as equity.

The following table shows the calculation of our financial statement leverage (in billions):

	March 31, 2021		December 31, 2021		March 31, 2022
Leverage Calculation
Debt	$	126.8	$	117.7	$	115.5
Equity	$	15.3	$	12.4	$	12.1
Financial statement leverage (to 1)	8.3		9.5		9.5

We plan our leverage by considering market conditions and the risk characteristics of our business. At March 31, 2022, our financial statement leverage was 9.5:1. We target financial statement leverage in the range of 9:1 to 10:1.

Outlook

We continue to expect full year 2022 EBT to be strong but lower than 2021.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Cautionary Note on Forward-Looking Statements

Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptions by our management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, including, without limitation:

•Ford and Ford Credit’s financial condition and results of operations have been and may continue to be adversely affected by public health issues, including epidemics or pandemics such as COVID-19;

•Ford is highly dependent on its suppliers to deliver components in accordance with Ford’s production schedule, and a shortage of key components, such as semiconductors, or raw materials can disrupt Ford’s production of vehicles;

•Ford’s long-term competitiveness depends on the successful execution of Ford+;

•Ford’s vehicles could be affected by defects that result in delays in new model launches, recall campaigns, or increased warranty costs;

•Ford may not realize the anticipated benefits of existing or pending strategic alliances, joint ventures, acquisitions, divestitures, or new business strategies;

•Operational systems, security systems, vehicles, and services could be affected by cyber incidents, ransomware attacks, and other disruptions;

•Ford’s production, as well as Ford’s suppliers’ production, could be disrupted by labor issues, natural or man-made disasters, financial distress, production difficulties, capacity limitations, or other factors;

•Ford’s ability to maintain a competitive cost structure could be affected by labor or other constraints;

•Ford’s ability to attract and retain talented, diverse, and highly skilled employees is critical to its success and competitiveness;

•Ford’s new and existing products, digital and physical services, and mobility services are subject to market acceptance and face significant competition from existing and new entrants in the automotive, mobility, and digital services industries;

•Ford’s near-term results are dependent on sales of larger, more profitable vehicles, particularly in the United States;

•With a global footprint, Ford’s results could be adversely affected by economic, geopolitical, protectionist trade policies, or other events, including tariffs;

•Industry sales volume in any of Ford’s key markets can be volatile and could decline if there is a financial crisis, recession, or significant geopolitical event;

•Ford may face increased price competition or a reduction in demand for its products resulting from industry excess capacity, currency fluctuations, competitive actions, or other factors;

•Inflationary pressure and fluctuations in commodity prices, foreign currency exchange rates, interest rates, and market value of Ford or Ford Credit’s investments, including marketable securities, can have a significant effect on results;

•Ford and Ford Credit’s access to debt, securitization, or derivative markets around the world at competitive rates or in sufficient amounts could be affected by credit rating downgrades, market volatility, market disruption, regulatory requirements, or other factors;

•Ford’s receipt of government incentives could be subject to reduction, termination, or clawback;

•Ford Credit could experience higher-than-expected credit losses, lower-than-anticipated residual values, or higher-than-expected return volumes for leased vehicles;

•Economic and demographic experience for pension and other postretirement benefit plans (e.g., discount rates or investment returns) could be worse than Ford has assumed;

•Pension and other postretirement liabilities could adversely affect Ford’s liquidity and financial condition;

•Ford and Ford Credit could experience unusual or significant litigation, governmental investigations, or adverse publicity arising out of alleged defects in products, services, perceived environmental impacts, or otherwise;

•Ford may need to substantially modify its product plans to comply with safety, emissions, fuel economy, autonomous vehicle, and other regulations;

•Ford and Ford Credit could be affected by the continued development of more stringent privacy, data use, and data protection laws and regulations as well as consumers’ heightened expectations to safeguard their personal information; and

•Ford Credit could be subject to new or increased credit regulations, consumer protection regulations, or other regulations.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

We cannot be certain that any expectation, forecast, or assumption made in preparing forward-looking statements will prove accurate, or that any projection will be realized.  It is to be expected that there may be differences between projected and actual results.  Our forward-looking statements speak only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events, or otherwise. For additional discussion, see “Item 1A. Risk Factors” in our 2021 Form 10-K Report, as updated by our subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Accounting Standards Issued But Not Yet Adopted

ASU 2022-01 was assessed and not expected to have a material impact to our financial statements and disclosures. We are presently assessing the impact of ASU 2022-02. For additional information, see Note 2 of the Notes to the Financial Statements.

ASU		Effective Date (a)
2022-01	Derivatives and Hedging: Fair Value Hedging - Portfolio Layer Method	January 1, 2023
2022-02	Financial Instruments - Credit Losses: Troubled Debt Restructurings and Vintage Disclosures	January 1, 2023

__________

(a)Early adoption for each of the standards is permitted.

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk.

In our 2021 Form 10-K Report, we discuss in greater detail our market risk, counterparty risk, credit risk, residual risk, liquidity risk, and operating risk.

To provide a quantitative measure of the sensitivity of our pre-tax cash flow to changes in interest rates, we use interest rate scenarios that assume a hypothetical, instantaneous increase or decrease of one percentage point in all interest rates across all maturities (a “parallel shift”), as well as a base case that assumes that all interest rates remain constant at existing levels. The differences in pre-tax cash flow between these scenarios and the base case over a 12 month period represent an estimate of the sensitivity of our pre-tax cash flow. Under this model, we estimate that at March 31, 2022, all else constant, such an increase in interest rates would decrease our pre-tax cash flow by $27 million over the next 12 months, compared with a decrease of $76 million at December 31, 2021. In reality, interest rate changes are rarely instantaneous or parallel and rates could move more or less than the one percentage point assumed in our analysis. As a result, the actual impact to pre-tax cash flow could be higher or lower than the results detailed above.

ITEM 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures. Marion B. Harris, our President and Chief Executive Officer (“CEO”), and Brian E. Schaaf, our Executive Vice President, Chief Financial Officer (“CFO”), Treasurer and Strategy, have performed an evaluation of the Company’s disclosure controls and procedures, as that term is defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (“Exchange Act”), as of March 31, 2022, and each has concluded that such disclosure controls and procedures are effective to ensure that information required to be disclosed in our periodic reports filed under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified by SEC rules and forms, and that such information is accumulated and communicated to the CEO and CFO to allow timely decisions regarding required disclosures.

Changes in Internal Control Over Financial Reporting. There were no changes in internal control over financial reporting during the quarter ended March 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. Legal Proceedings.

We have no legal proceedings arising under any federal, state, or local provisions that have been enacted or adopted regulating the discharge of materials into the environment or primarily for the purpose of protecting the environment, in which (i) a governmental authority is a party, and (ii) we believe there is the possibility of monetary sanctions (exclusive of interest and costs) in excess of $1 million.

ITEM 5. Other Information.

None.

ITEM 6. Exhibits.

Designation	Description	Method of Filing
Exhibit 10	Third Amended and Restated Relationship Agreement dated as of April 27, 2022 between Ford Motor Company and Ford Motor Credit Company LLC.	Filed with this Report.
Exhibit 31.1	Rule 15d-14(a) Certification of CEO.	Filed with this Report.
Exhibit 31.2	Rule 15d-14(a) Certification of CFO.	Filed with this Report.
Exhibit 32.1	Section 1350 Certification of CEO.	Furnished with this Report.
Exhibit 32.2	Section 1350 Certification of CFO.	Furnished with this Report.
Exhibit 101.INS	Interactive Data Files pursuant to Rule 405 of Regulation S-T formatted in Inline Extensible Business Reporting Language (“Inline XBRL”).	*
Exhibit 101.SCH	XBRL Taxonomy Extension Schema Document.	*
Exhibit 101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.	*
Exhibit 101.LAB	XBRL Taxonomy Extension Label Linkbase Document.	*
Exhibit 101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.	*
Exhibit 101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.	*
Exhibit 104	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).	*

__________

*Submitted electronically with this Report in accordance with the provisions of Regulation S-T.

Instruments defining the rights of holders of certain issues of long-term debt of Ford Credit have not been filed as exhibits to this Report because the authorized principal amount of any one of such issues does not exceed 10% of the total assets of Ford Credit. Ford Credit will furnish a copy of each such instrument to the SEC upon request.

37

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, Ford Motor Credit Company LLC has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

FORD MOTOR CREDIT COMPANY LLC

By:	/s/ Brian E. Schaaf
	Brian E. Schaaf
	Executive Vice President, Chief Financial Officer,
	Treasurer, and Strategy
Date:	April 27, 2022

38

EX-10

THIRD AMENDED AND RESTATED RELATIONSHIP AGREEMENT

This Third Amended and Restated Relationship Agreement (the “Agreement”) dated as of April 27th, 2022 (the “Effective Date”) is made and entered into between Ford Motor Company, a Delaware corporation (“Ford”), and Ford Motor Credit Company LLC, a Delaware limited liability company (“Ford Credit”).

RECITALS

A. Ford Credit supports the sale of Ford’s products by providing, among other things, wholesale, retail, and lease financing for the purchase and lease of those products.

B. Ford Credit is highly dependent on the public debt markets to raise funds for its business.

C. Ford Credit’s ability to raise funds in the public debt markets is highly dependent on its credit ratings, which, in turn, are dependent on the level of Ford Credit’s equity, the quality of its assets, and its liquidity.

D. It is important to the success of Ford that Ford Credit remains a viable finance company that can fund itself in the public debt markets and continue supporting the sale of Ford’s products.

E. Towards maintaining the viability of Ford Credit, the parties entered into (i) an agreement dated October 18, 2001, as amended on December 12, 2006, and as further amended on March 14, 2008 (the “Intercompany Agreement”), which provided for certain agreements regarding transactions between them and the creditworthiness of Ford Credit, and (ii) an Amended and Restated Support Agreement dated November 6, 2008 (the “Support Agreement”), which provided for Ford to make capital contributions to Ford Credit to keep its Managed Leverage (as defined in the Support Agreement, and, subsequently, the 2014 Relationship Agreement, the 2015 Relationship Agreement, and the 2020 Relationship Agreement) from exceeding 11.5 to 1.

F. On April 30, 2014, the parties entered into a Relationship Agreement (the “2014 Relationship Agreement”) in order to, among other things, combine the provisions of the Intercompany Agreement and the Support Agreement into a new, single agreement. On the Effective Date of the 2014 Relationship Agreement, the Intercompany Agreement and the Support Agreement were terminated.

G. The 2014 Relationship Agreement was subsequently amended and restated on April 30, 2015 (the “2015 Relationship Agreement”) and further amended and restated on March 19, 2020 (the “2020 Relationship Agreement”).

H. The parties now desire to amend and restate the 2020 Relationship Agreement to remove the references to “Managed Leverage,” and the calculation thereof, from Paragraph 3, and replace them with references to “Financial Statement Leverage” and the calculation thereof.

NOW, THEREFORE, for good and valuable consideration and the mutual agreements herein provided, the parties agree as follows:

1. The parties agree that all Affiliate Receivables (as defined below) shall be on arm’s-length terms. For purposes hereof, “Affiliate Receivables” means any advance, loan, extension of credit, or other financing to Ford or any affiliate of Ford other than a Credit Affiliate (as defined below) whose assets and liabilities are consolidated with Ford’s on Ford’s consolidated

balance sheet (“Automotive Affiliate”). Ford Credit shall enforce, and cause any affiliate of Ford Credit whose assets and liabilities are consolidated with Ford Credit’s on Ford Credit’s consolidated balance sheet (“Credit Affiliate”) to enforce, all Affiliate Receivables in a commercially reasonable manner, and Ford shall pay, shall cause its Automotive Affiliates to pay, and shall guarantee its Automotive Affiliates’ payment of, Affiliate Receivables in accordance with their terms.

2. Ford Credit shall not, nor shall it permit any Credit Affiliate to, guarantee any indebtedness of (other than Permitted Guarantees), or purchase any equity securities issued by, or make any other investment in, Ford (parent company only) or any Automotive Affiliate. In addition, Ford Credit shall not, nor shall it permit any Credit Affiliate to, purchase or finance any real property (other than Permitted Mortgages) or manufacturing equipment (including tooling) from or of Ford or any Automotive Affiliate that is classified as an Automotive asset on Ford’s consolidated balance sheet. Ford shall not, nor shall it permit any Automotive Affiliate to request or require Ford Credit or any Credit Affiliate to do any of the transactions prohibited by this paragraph 2. For purposes hereof, “Permitted Guarantees” shall mean guarantees by Ford Credit or Credit Affiliates of indebtedness of Ford or Automotive Affiliates that are cash collateralized in full and guarantees that are not cash collateralized in full but which at any time do not exceed $500 million in the aggregate, and “Permitted Mortgages” shall mean financing by Ford Credit or Credit Affiliates of real property of Ford or Automotive Affiliates which at any time does not exceed $500 million in the aggregate.

3. As used herein, “Financial Statement Leverage” means, as of the end of each calendar quarter, Ford Credit’s financial statement leverage reported in, and calculated in accordance with the financial leverage formula as set forth in, Ford Credit’s periodic report (Form 10-Q or Form 10-K, as the case may be) covering such calendar quarter filed with the United States Securities and Exchange Commission. In the event that Ford Credit’s Financial Statement Leverage as of the end of any calendar quarter, beginning with the calendar quarter ending March 31, 2022, is higher than 12.5 to 1, then, upon demand by Ford Credit, Ford shall make or cause to be made a capital contribution to Ford Credit in an amount sufficient to have caused such Financial Leverage to have been 12.5 to 1. Such capital contribution, if required, will be made not later than 30 days after the filing by Ford Credit of its Form 10-Q or Form 10-K, as the case may be, covering such calendar quarter.

4. Ford Credit shall, and shall cause each Credit Affiliate to, conduct its business, including its finance and lease business, in a prudent and commercially reasonable manner, including maintaining and adhering to credit risk underwriting standards for finance and lease receivables and residual assumptions for lease receivables it acquires or originates that are consistent with industry standards. Ford shall not, nor shall it permit any Automotive Affiliate to, require Ford Credit or any Credit Affiliate to accept credit or residual risk beyond what it would be willing to accept acting in a prudent and commercially reasonable manner. For avoidance of doubt, acquisition or origination of finance or lease receivables having terms that are not market-based shall be considered to be prudent and commercially reasonable if subsidies (in the form of interest rate subvention payments, guarantees, residual risk sharing arrangements, or otherwise) are provided by Ford or an Automotive Affiliate in an amount sufficient to assure that Ford Credit or a Credit Affiliate, as the case may be, will receive the economic benefits of such receivables as if they had been acquired or originated on market-based terms. Notwithstanding the foregoing, in recognition of the fact that Ford uses Ford Credit as the exclusive provider of financial services for special retail and lease programs to support the sale of products manufactured by Ford and other Automotive Affiliates, it is understood that it would be commercially reasonable and prudent for Ford Credit to accept, to a limited extent, higher levels of credit risk than it might otherwise accept in order to continue as the exclusive provider of financial services to Ford and the other Automotive Affiliates with respect to such programs.

2

For any given program, Ford Credit may waive its right to be the exclusive provider of financial services to Ford and the other Automotive Affiliates.

5. Ford and Ford Credit agree that (a) Ford Credit shall at all times maintain its books, records, financial statements, and bank accounts separate from those of Ford and any Automotive Affiliate; (b) Ford Credit shall maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain, or identify its assets from those of Ford and any Automotive Affiliate; (c) the funds and other assets of Ford Credit shall not be commingled with those of Ford or any Automotive Affiliate; (d) Ford Credit shall at all times hold itself out as a legal entity separate and distinct from Ford and any Automotive Affiliate; (e) except with respect to the agreements set forth in Paragraph 3 hereof and Paragraphs 9 through 16 hereof, each will act in a manner and conduct its business such that creditors of Ford, acting reasonably, will rely primarily on the creditworthiness of, and look solely to the assets of Ford, for repayment of indebtedness, and creditors of Ford Credit, acting reasonably, will rely primarily on the creditworthiness of, and look solely to the assets of Ford Credit, for repayment of indebtedness; and (f) they otherwise will take such reasonable and customary action so that Ford Credit will not be consolidated with Ford or any Automotive Affiliate in any case or other proceeding seeking liquidation, reorganization, or other relief with respect to Ford or any Automotive Affiliate or its debts under any bankruptcy, insolvency, or other similar law.

6. In the event that Ford or any of its subsidiaries engages in a corporate transaction that causes the Pension Benefit Guaranty Corporation (“PBGC”) to threaten to terminate the pension plans sponsored by Ford or any of its subsidiaries, Ford shall, or shall cause any of its subsidiaries to, seek to negotiate a settlement with the PBGC to avoid an involuntary plan termination. In connection with such negotiated settlement, Ford shall endeavor not to grant to the PBGC a security interest in the assets of Ford Credit that has priority over the claims of unsecured creditors of Ford Credit.

7. All determinations to be made under this Agreement shall be made in accordance with, or with reference to financial statements prepared in accordance with, United States generally accepted accounting principles. For purposes of this Agreement, the term “lease receivables” shall mean “net investment in operating leases” as stated on or reflected in Ford Credit’s consolidated financial statements.

8. During the term of this Agreement, Ford Credit shall continue to make inventory and capital financing generally available to dealers of vehicles manufactured or sold by Ford or its Automotive Affiliates and shall continue to make retail and lease financing generally available to such dealers’ customers to substantially the same extent that Ford Credit has historically made such services available, so long as providing such services to such an extent would not result in a breach of any of the foregoing provisions. Nothing herein precludes Ford Credit from providing or continuing to provide financial services to automotive manufacturers other than Ford or its Automotive Affiliates.

9. This Agreement shall be construed and interpreted in accordance with, and governed by, the internal laws of the State of New York, excluding any choice of law rules that may direct the application of the laws of another jurisdiction.

10. This Agreement shall terminate initially on April 30, 2027 (the “Termination Date”). On April 30, 2023, and on each April 30 thereafter during the term of this Agreement, the Termination Date shall be extended automatically for an additional one-year period (ending on the April 30 next following the then-current Termination Date) unless either party shall have given the other party written notice during the period beginning on the January 1 and ending on the April 1 immediately preceding such April 30, specifying its election not to extend the

3

Termination Date beyond the then-current Termination Date and that the term of this Agreement shall, therefore, expire on such then-current Termination Date.

11. No person other than Ford and Ford Credit, and their permitted successors and assigns, shall have any right to enforce any term of this Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written.

FORD MOTOR COMPANY		FORD MOTOR CREDIT COMPANY LLC
By:	/s/ David A. Webb	By:	/s/ Brian E. Schaaf
	David A. Webb		Brian E. Schaaf
	Vice President, Treasurer		Executive Vice President, Chief Financial Officer, Treasurer, and Strategy

4

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Marion B. Harris, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 of Ford Motor Credit Company LLC;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: April 27, 2022	/s/ Marion B. Harris
	Marion B. Harris
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Brian E. Schaaf, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 of Ford Motor Credit Company LLC;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: April 27, 2022	/s/ Brian E. Schaaf
	Brian E. Schaaf, Executive Vice President,
	Chief Financial Officer, Treasurer, and Strategy

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Marion B. Harris, President and Chief Executive Officer of Ford Motor Credit Company LLC (the “Company”), hereby certify pursuant to Rule 15d-14(b) of the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of the United States Code, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1.the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, to which this statement is furnished as an exhibit (the “Report”), fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: April 27, 2022	/s/ Marion B. Harris
	Marion B. Harris
	President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Brian E. Schaaf, Chief Financial Officer and Treasurer of Ford Motor Credit Company LLC (the “Company”), hereby certify pursuant to Rule 15d-14(b) of the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of the United States Code, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1.the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, to which this statement is furnished as an exhibit (the “Report”), fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: April 27, 2022	/s/ Brian E. Schaaf
	Brian E. Schaaf, Executive Vice President,
	Chief Financial Officer, Treasurer, and Strategy

XML

Document and Entity Information Document	3 Months Ended
	Mar. 31, 2022 shares
Document Transition Report	false
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Entity Registrant Name	Ford Motor Credit Co LLC
Entity Central Index Key	0000038009
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Entity File Number	1-6368
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding	0
Entity Small Business	false
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Membership Interests Description	All of the limited liability company interests in the registrant (“Shares”) are held by an affiliate of the registrant. None of the Shares are publicly traded.
Local Phone Number	(313)
Entity Tax Identification Number	38-1612444
Entity Address, Address Line One	One American Road
Entity Address, City or Town	Dearborn,
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48126
Local Phone Number	322-3000
Entity Interactive Data Current	Yes
Entity Shell Company	false
Document Period End Date	Mar. 31, 2022
F/23E [Member]
Trading Symbol	F/23E
Security Exchange Name	NYSE
Title of 12(b) Security	0.623% Notes due June 28, 2023*
F/25i [Member]
Trading Symbol	F/25I
Security Exchange Name	NYSE
Title of 12(b) Security	1.355% Notes due February 7, 2025*
F/24O [Member]
Trading Symbol	F/24O
Security Exchange Name	NYSE
Title of 12(b) Security	4.125% Notes due on June 20, 2024*
F/24M [Member]
Trading Symbol	F/24M
Security Exchange Name	NYSE
Title of 12(b) Security	3.021% Notes due March 6, 2024*
F/25K [Member]
Trading Symbol	F/25K
Security Exchange Name	NYSE
Title of 12(b) Security	4.535% Notes due March 6, 2025*
F/26N [Member]
Trading Symbol	F/26N
Security Exchange Name	NYSE
Title of 12(b) Security	3.350% Notes due Nine Months or More from the Date of Issue due August 20, 2026
F/23G [Member]
Trading Symbol	F/23G
Security Exchange Name	NYSE
Title of 12(b) Security	1.514% Notes due February 17, 2023*
F/26AB [Member]
Trading Symbol	F/26AB
Security Exchange Name	NYSE
Title of 12(b) Security	2.386% Notes due February 17, 2026*
F/24R [Member]
Trading Symbol	F/24R
Security Exchange Name	NYSE
Title of 12(b) Security	1.744% Notes due July 19, 2024*
F/25L [Member]
Trading Symbol	F/25L
Security Exchange Name	NYSE
Title of 12(b) Security	2.330% Notes due on November 25, 2025*
F/24Q [Member]
Trading Symbol	F/24Q
Security Exchange Name	NYSE
Title of 12(b) Security	3.683% Notes due on December 3, 2024*
F/25M
Trading Symbol	F/25M
Security Exchange Name	NYSE
Title of 12(b) Security	3.250% Notes due September 15, 2025*
F/24S
Trading Symbol	F/24S
Security Exchange Name	NYSE
Title of 12(b) Security	2.748% Notes due on June 14, 2024*
F/24L [Member]
Trading Symbol	F/24L
Security Exchange Name	NYSE
Title of 12(b) Security	Floating Rate Notes due December 1, 2024*
F/22T [Member]
Trading Symbol	F/22T
Security Exchange Name	NYSE
Title of 12(b) Security	Floating Rate Notes due December 7, 2022*
F/23D [Member]
Trading Symbol	F/23D
Security Exchange Name	NYSE
Title of 12(b) Security	Floating Rate Notes due November 15, 2023*

XML

Consolidated Income Statement - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Financing revenue
Retail financing	$ 906	$ 990
Dealer financing	164	286
Other	7	14
Revenue from Contract with Customer, Excluding Assessed Tax	2,288	2,670
Depreciation on vehicles subject to operating leases	(515)	(568)
Interest expense	(611)	(804)
Net financing margin	1,162	1,298
Other revenue
Premiums Earned, Net	15	27
Fee based revenue and other	23	20
Total financing margin and other revenue	1,200	1,345
Operating expenses	348	343
Financing Receivable, Credit Loss, Expense (Reversal)	(64)	(40)
Insurance expenses	(7)	5
Total expenses	277	308
Other Income / Loss	(169)	(75)
Income before income taxes	754	962
Provision for income taxes	85	117
Net income	669	845
Operating Lease, Lease Income	$ 1,211	$ 1,380

XML

Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Net income	$ 669	$ 845
Other comprehensive income/(loss), net of tax
Comprehensive income / (loss)	821	744
Parent [Member]
Other comprehensive income/(loss), net of tax
Foreign currency translation	(43)	(101)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax	$ 195	$ 0

XML

Consolidated Balance Sheet - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
ASSETS
Cash and cash equivalents	$ 10,579	$ 10,963
Marketable securities	2,036	2,173
Net Investment in Operating Leases	24,364	25,167
Finance receivables, net	93,031	92,350
Notes and accounts receivable from affiliated companies	446	703
Derivative financial instruments	639	1,065
Other assets	2,482	2,524
Total assets	133,577	134,945
Liabilities
Accounts Payable, Trade	1,005	1,051
Affiliated companies	878	425
Accounts Payable And Due To Affiliated Entities	1,883	1,476
Debt	115,516	117,717
Deferred income taxes	740	676
Derivative financial instruments	1,337	512
Other liabilities and deferred income	1,965	2,166
Total liabilities	121,441	122,547
Shareholder's Interest [Member]	5,166	5,227
SHAREHOLDER’S INTEREST	0	22
Shareholder's interest
Accumulated other comprehensive income	(538)	(690)
Retained earnings	7,508	7,839
Stockholders' Equity Attributable to Parent	12,136	12,376
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	12,136	12,398
Total liabilities and shareholder's interest	133,577	134,945
Variable Interest Entity, Primary Beneficiary [Member]
ASSETS
Cash and cash equivalents	2,473	3,407
Net Investment in Operating Leases	10,191	7,540
Finance receivables, net	42,119	43,001
Derivative financial instruments	152	39
Liabilities
Debt	40,139	38,274
Derivative financial instruments	1	6
Retail Installment loans, dealer financing, and other financing [Member]
ASSETS
Finance receivables, net	86,261	85,347
Loans and Finance Receivables [Member]
ASSETS
Finance receivables, net	6,770	7,003
Property Subject to Operating Lease [Member]
ASSETS
Net Investment in Operating Leases	$ 24,364	$ 25,167

XML

Consolidated Balance Sheet (parenthetical) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Financing Receivable, Allowance for Credit Loss	$ (845)	$ (925)	$ (1,223)	$ (1,305)

XML

Consolidated Statement of Shareholder's Interest - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Shareholder's Interest [Roll Forward]
Balance at beginning of period	$ 12,376
Net income	(669)	$ (845)
Other Comprehensive Income (Loss), Net of Tax	152	(101)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance	12,398	15,567
Distributions declared	(1,000)	(1,000)
Stockholders' Equity, Other	(83)
Balance at end of period	12,136
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance	12,136	15,311
SHAREHOLDER’S INTEREST	0		$ 22
Shareholder's Interest [Member]
Shareholder's Interest [Roll Forward]
Balance at beginning of period	5,227	5,227
Net income	0	0
Other Comprehensive Income (Loss), Net of Tax	0	0
Distributions declared	0	0
Stockholders' Equity, Other	(61)
Balance at end of period	5,166	5,227
Accumulated Other Comprehensive Income/(Loss) (Note11) [Member]
Shareholder's Interest [Roll Forward]
Balance at beginning of period	(690)	(478)
Net income	0	0
Other Comprehensive Income (Loss), Net of Tax	152	(101)
Distributions declared	0	0
Stockholders' Equity, Other	0
Balance at end of period	(538)	(579)
Retained Earnings [Member]
Shareholder's Interest [Roll Forward]
Balance at beginning of period	7,839	10,818
Net income	(669)	845
Other Comprehensive Income (Loss), Net of Tax	0	0
Distributions declared	(1,000)	(1,000)
Stockholders' Equity, Other	0
Balance at end of period	7,508	10,663
Noncontrolling Interest
Shareholder's Interest [Roll Forward]
Net income	0	0
Other Comprehensive Income (Loss), Net of Tax	0	0
Distributions declared	0	0
Stockholders' Equity, Other	(22)
SHAREHOLDER’S INTEREST	0	0	$ 22	$ 0
Parent [Member]
Shareholder's Interest [Roll Forward]
Balance at beginning of period	12,376
Net income	(669)	(845)
Other Comprehensive Income (Loss), Net of Tax	152	(101)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance		15,567
Distributions declared	(1,000)	(1,000)
Stockholders' Equity, Other	(61)
Balance at end of period	$ 12,136
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance		$ 15,311

XML

Consolidated Statement of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities
Net Income	$ 669	$ 845
Financing Receivable, Credit Loss, Expense (Reversal)	(64)	(40)
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract]
Depreciation Depletion and Amortizations	682	738
Amortization Of Upfront Interest Supplements	(508)	(578)
Net change in deferred income taxes	37	13
Net change in other assets	(24)	341
Net change in other liabilities	418	229
All other operating activities	152	114
Net Cash Provided by (Used in) Operating Activities	1,362	1,662
Cash flows from investing activities
Purchases of finance receivables	(7,891)	(8,467)
Principal collections of finance receivables	9,615	10,315
Purchases of operating lease vehicles	(2,041)	(2,841)
Proceeds From Liquidations of Operating Lease Vehicles	2,469	2,488
Net change in wholesale receivables and other	(2,224)	2,628
Purchases of marketable securities	(909)	(3,701)
Proceeds from sales and maturities of marketable securities	1,007	4,598
Settlements of derivatives	148	56
All other investing activities	(39)	(10)
Net Cash Provided by (Used in) Investing Activities	135	5,066
Cash flows from financing activities
Proceeds from issuances of long-term debt	12,489	4,631
Principal payments on long-term debt	(12,705)	(14,814)
Change in short-term debt, net	(608)	568
Cash distributions to parent	(1,000)	(1,000)
All other financing activities	(32)	(11)
Net Cash Provided by (Used in) Financing Activities	(1,856)	(10,626)
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	(34)	(67)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at January 1	11,091	14,996
Net increase/(decrease) in cash, cash equivalents, and restricted cash	(393)	(3,965)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at March 31	$ 10,698	$ 11,031

XML

Presentation	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Presentation	PRESENTATIONPrinciples of ConsolidationThe consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) for interim financial information, and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited financial statements include all adjustments considered necessary for a fair statement of the results of operations and financial condition for interim periods for Ford Motor Credit Company LLC, its consolidated subsidiaries, and its consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Results for interim periods should not be considered indicative of results for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K Report”). We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation.

XML

Accounting Policies

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Accounting Policies

ACCOUNTING POLICIES

Adoption of New Accounting Standards

We adopted the following Accounting Standards Updates (“ASUs”) during 2022, none of which had a material impact to our consolidated financial statements or financial statement disclosures:

ASU		Effective Date
2021-05	Lessors - Certain Leases with Variable Lease Payments	January 1, 2022
2021-08	Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers	January 1, 2022
2021-10	Government Assistance: Disclosures by Business Entities about Government Assistance	January 1, 2022

Accounting Standards Issued But Not Yet Adopted

ASU 2022-02, Financial Instruments - Credit Losses, Troubled Debt Restructurings and Vintage Disclosures. In March 2022, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard that eliminates the troubled debt recognition and measurement guidance. The new standard requires that an entity apply the loan refinancing and restructuring guidance in ASC 310 to all loan modifications and/or receivable modifications. It also enhances disclosure requirements for certain refinancings and restructurings by creditors when a borrower is experiencing financial difficulty and requires disclosure of current-period gross charge-offs by year of origination in the vintage disclosure. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. We are assessing the effect of the new standard on our financial statements and disclosures.

The Company considers the applicability and impacts of all ASUs. All other ASUs were assessed and determined to be either not applicable or are not expected to have a material impact on our consolidated financial statements or financial statement disclosures.

Provision for Income Taxes

For interim tax reporting, we estimate one single effective tax rate for subsidiaries that are subject to tax, which is applied to the year-to-date ordinary income/(loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.

XML

Cash and Cash Equivalents

3 Months Ended

Mar. 31, 2022

Cash and Cash Equivalents [Abstract]

CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES

CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES

The fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis were as follows (in millions):

	Fair Value Level	December 31, 2021		March 31, 2022
Cash and cash equivalents
United States government	1	$	711	$	615
United States government agencies	2	240		200
Non-United States government and agencies	2	152		436
Corporate debt	2	940		889
Total marketable securities classified as cash equivalents		2,043		2,140
Cash, time deposits, and money market funds		8,920		8,439
Total cash and cash equivalents		$	10,963	$	10,579
Marketable securities
United States government	1	$	864	$	413
United States government agencies	2	75		75
Non-United States government and agencies	2	697		1,036
Corporate debt	2	304		297
Other marketable securities	2	233		215
Total marketable securities		$	2,173	$	2,036

Cash, Cash Equivalents, and Restricted Cash 

Cash, cash equivalents, and restricted cash, as reported in the consolidated statements of cash flows, were as follows (in millions):

	December 31, 2021		March 31, 2022
Cash and cash equivalents	$	10,963	$	10,579
Restricted cash (a)	128		119
Total cash, cash equivalents, and restricted cash	$	11,091	$	10,698

__________

(a)Restricted cash is included in Other assets on our consolidated balance sheets and is primarily held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of certain contractual agreements. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions.

XML

Finance Receivables

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Financing Receivables

FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES

We manage finance receivables as “consumer” and “non-consumer” portfolios. The receivables are generally secured by the vehicles, inventory, or other property being financed.

Finance receivables are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses.

For all finance receivables, we define “past due” as any payment, including principal and interest, that is at least 31 days past the contractual due date.

NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Total Finance Receivables, Net

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

	December 31, 2021		March 31, 2022
Consumer
Retail installment contracts, gross	$	69,247	$	67,796
Finance leases, gross	7,318		7,079
Retail financing, gross	76,565		74,875
Unearned interest supplements from Ford and affiliated companies	(3,020)		(2,796)
Consumer finance receivables	73,545		72,079
Non-Consumer
Dealer financing	18,197		20,170
Other financing	1,533		1,627
Non-Consumer finance receivables	19,730		21,797
Total recorded investment	$	93,275	$	93,876
Recorded investment in finance receivables	$	93,275	$	93,876
Allowance for credit losses	(925)		(845)
Total finance receivables, net	$	92,350	$	93,031
Net finance receivables subject to fair value (a)	$	85,347	$	86,261
Fair value (b)	86,199		85,485

__________

(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.

Finance leases are comprised of sales-type and direct financing leases. Financing revenue from finance leases for the first quarter of 2021 and 2022 was $90 million and $77 million, respectively, and is included in Retail financing on the consolidated income statements.

At December 31, 2021 and March 31, 2022, accrued interest was $125 million and $122 million, respectively, which we report in Other assets on the consolidated balance sheets.

Included in the recorded investment in finance receivables were consumer and non-consumer receivables that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information.

Credit Quality

Consumer Portfolio. Credit quality ratings for consumer receivables are based on our aging analysis. Consumer receivables credit quality ratings are as follows:

•Pass – current to 60 days past due;

•Special Mention – 61 to 120 days past due and in intensified collection status; and

•Substandard – greater than 120 days past due and for which the uncollectible portion of the receivables has already been charged off, as measured using the fair value of collateral less costs to sell.

NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

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		2,608		6,568		12,717		22,730		27,354		72,789		99.0
Total	$	868	$	2,676	$	6,692	$	12,875	$	22,967	$	27,467	$	73,545	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	2,565		5,360		10,895		20,346		25,311		6,854		71,331		99.0
Total	$	2,667	$	5,466	$	11,039	$	20,582	$	25,461	$	6,864	$	72,079	100.0	%

Non-Consumer Portfolio. The credit quality of dealer financing receivables is evaluated based on our internal dealer risk rating analysis. We use a proprietary model to assign each dealer a risk rating. This model uses historical dealer performance data to identify key factors about a dealer that we consider most significant in predicting a dealer’s ability to meet its financial obligations. We also consider numerous other financial and qualitative factors of the dealer’s operations, including capitalization and leverage, liquidity and cash flow, profitability, and credit history with ourselves and other creditors.

Dealers are assigned to one of four groups according to risk ratings as follows:

•Group I – strong to superior financial metrics;

•Group II – fair to favorable financial metrics;

•Group III – marginal to weak financial metrics; and

•Group IV – poor financial metrics, including dealers classified as uncollectible.

The credit quality analysis of dealer financing receivables at December 31, 2021 was as follows (in millions):

	Amortized Cost Basis by Origination Year
	Dealer Loans
	Prior to 2017		2017		2018		2019		2020		2021		Total		Wholesale Loans		Total		Percent
Group I	$	391	$	68	$	151	$	45	$	109	$	345	$	1,109	$	13,670	$	14,779	81.2	%
Group II	11		7		26		2		4		54		104		2,689		2,793		15.3
Group III	8		—		1		—		1		20		30		529		559		3.1
Group IV	—		—		4		—		—		6		10		56		66		0.4
Total (a)	$	410	$	75	$	182	$	47	$	114	$	425	$	1,253	$	16,944	$	18,197	100.0	%

__________

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

NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

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

	Amortized Cost Basis by Origination Year
	Dealer Loans
	Prior to 2018		2018		2019		2020		2021		2022		Total		Wholesale Loans		Total		Percent
Group I	$	470	$	155	$	44	$	78	$	232	$	111	$	1,090	$	15,628	$	16,718	82.9	%
Group II	12		26		1		5		13		42		99		2,845		2,944		14.6
Group III	8		—		—		—		5		11		24		423		447		2.2
Group IV	—		5		—		1		2		2		10		51		61		0.3
Total (a)	$	490	$	186	$	45	$	84	$	252	$	166	$	1,223	$	18,947	$	20,170	100.0	%

__________

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

Non-Accrual of Revenue. The accrual of financing revenue is discontinued at the time a receivable is determined to be uncollectible or when it is 90 days past due. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance.

Troubled Debt Restructuring (“TDR”). A restructuring of debt constitutes a TDR if we grant a concession to a debtor for economic or legal reasons related to the debtor’s financial difficulties that we otherwise would not consider. Consumer and non-consumer receivables that have a modified interest rate below market rate or that were modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code, except non-consumer receivables that are current with minimal risk of loss, are considered to be TDRs. We do not grant concessions on the principal balance of the receivables. If a receivable is modified in a reorganization proceeding, all payment requirements of the reorganization plan need to be met before remaining balances are forgiven.

Allowance for Credit Losses

The allowance for credit losses represents our estimate of the lifetime expected credit losses inherent in finance receivables as of the balance sheet date. The adequacy of the allowance for credit losses is assessed quarterly.

Adjustments to the allowance for credit losses are made by recording charges to the Provision for/(Benefit from) credit losses on our consolidated income statements. The uncollectible portion of a finance receivable is charged to the allowance for credit losses at the earlier of when an account is deemed to be uncollectible or when an account is 120 days delinquent, taking into consideration the financial condition of the customer or borrower, the value of the collateral, recourse to guarantors, and other factors.

Charge-offs on finance receivables include uncollected amounts related to principal, interest, late fees, and other allowable charges. Recoveries on finance receivables previously charged off as uncollectible are credited to the allowance for credit losses. In the event we repossess the collateral, the receivable is charged off and the collateral is recorded at its estimated fair value less costs to sell and reported in Other assets on our consolidated balance sheets.

NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

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.

During the first quarter of 2022, the allowance for credit losses decreased $80 million, primarily reflecting improvement in the economic outlook that caused us to lower our expectation of lifetime losses attributable to macroeconomic assumptions driven by COVID-19. Although net charge-offs in the first quarter ended March 31, 2022 remained low, due in part to high vehicle auction values, the impact of higher inflation on future credit losses remains uncertain. We will continue to monitor economic trends and conditions and portfolio performance and will adjust the reserve accordingly.

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Net Investments in Operating Leases

3 Months Ended

Mar. 31, 2022

Leases, Operating [Abstract]

NET INVESTMENT IN OPERATING LEASES

NET INVESTMENT IN OPERATING LEASES

Net investment in operating leases consists primarily of lease contracts for vehicles with individuals, daily rental companies, and fleet customers with terms of 60 months or less. Included in Net investment in operating leases are net investment in operating leases that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information.

Net investment in operating leases was as follows (in millions):

	December 31, 2021		March 31, 2022
Vehicles, at cost (a)	$	29,982	$	29,084
Accumulated depreciation	(4,815)		(4,720)
Net investment in operating leases	$	25,167	$	24,364

__________

(a)Includes interest supplements and residual support payments we receive on certain leasing transactions under agreements with Ford and affiliated companies, and other vehicle acquisition costs.

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Transfers of Receivables

3 Months Ended

Mar. 31, 2022

Transfers and Servicing [Abstract]

TRANSFERS OF RECEIVABLES

TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES

We securitize finance receivables and net investment in operating leases through a variety of programs using amortizing, variable funding, and revolving structures. We also sell finance receivables, or pledge them as collateral in certain transactions outside of the United States, in other types of structured financing transactions. Due to the similarities between securitization and structured financing, we refer to structured financings as securitization transactions. Our securitization programs are targeted to institutional investors in both public and private transactions in capital markets primarily in the United States, Canada, the United Kingdom, Germany, and China.

The finance receivables sold for legal purposes and net investment in operating leases included in securitization transactions are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. They are not available to pay our other obligations or the claims of our other creditors. The debt is the obligation of our consolidated securitization entities and not the obligation of Ford Credit or our other subsidiaries.

We use special purpose entities (“SPEs”) to issue asset-backed securities in our securitization transactions. We have deemed most of these SPEs to be VIEs of which we are the primary beneficiary, and therefore, are consolidated. The SPEs are established for the sole purpose of financing the securitized financial assets. The SPEs are generally financed through the issuance of notes or commercial paper into the public or private markets or directly with conduits.

We continue to recognize our financial assets related to our sales of receivables when the financial assets are sold to a consolidated VIE or a consolidated voting interest entity. We derecognize our financial assets when the financial assets are sold to a non-consolidated entity and we do not maintain control over the financial assets.

We have the power to direct significant activities of our SPEs when we have the ability to exercise discretion in the servicing of financial assets, issue additional debt, exercise a unilateral call option, add assets to revolving structures, or control investment decisions. We generally retain a portion of the economic interests in the asset-backed securitization transactions, which could be retained in the form of a portion of the senior interests, the subordinated interests, cash reserve accounts, residual interests, and servicing rights. The transfers of assets in our securitization transactions do not qualify for accounting sale treatment.

From time to time in Europe, we may retain all of the economic interests in some of our public asset-backed securitization transactions. The most senior retained notes are held as, or with the intent to become, eligible collateral to access central bank liquidity facilities in Europe. In addition, we regularly pledge receivables that are not securitized as eligible collateral for these facilities. In accordance with applicable regulatory guidance, the underlying assets in these transactions are considered unencumbered if they are not being used as security for a central bank funding. At December 31, 2021 and March 31, 2022, the value of unencumbered assets related to these transactions was $0.9 billion and $1.0 billion, respectively.

We have no obligation to repurchase or replace any securitized asset that subsequently becomes delinquent in payment or otherwise is in default, except when representations and warranties about the eligibility of the securitized assets are breached, or when certain changes are made to the underlying asset contracts. Securitization investors have no recourse to us or our other assets and have no right to require us to repurchase the investments. We generally have no obligation to provide liquidity or contribute cash or additional assets to the VIEs and do not guarantee any asset-backed securities. We may be required to support the performance of certain securitization transactions, however, by increasing cash reserves.

Certain of our securitization entities may enter into derivative transactions to mitigate interest rate exposure, primarily resulting from fixed-rate assets securing floating-rate debt. In certain instances, the counterparty enters into offsetting derivative transactions with us to mitigate its interest rate risk resulting from derivatives with our securitization entities. These related derivatives are not the obligations of our securitization entities. See Note 7 for additional information regarding the accounting for derivatives.

NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued)

Most of these securitization transactions utilize VIEs. The following tables show the assets and debt related to our securitization transactions that were included in our consolidated financial statements (in billions):

	December 31, 2021
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt (c)
			Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses
VIE (b)
Retail financing	$	1.7	$	31.6	$	0.3	$	31.3	$	24.5
Wholesale financing	1.3		11.7		—		11.7		8.7
Finance receivables	3.0		43.3		0.3		43.0		33.2
Net investment in operating leases	0.4		7.5		—		7.5		5.1
Total VIE	$	3.4	$	50.8	$	0.3	$	50.5	$	38.3
Non-VIE
Retail financing	$	0.4	$	7.4	$	0.1	$	7.3	$	6.9
Wholesale financing	—		0.3		—		0.3		0.2
Finance receivables	0.4		7.7		0.1		7.6		7.1
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.4	$	7.7	$	0.1	$	7.6	$	7.1
Total securitization transactions
Retail financing	$	2.1	$	39.0	$	0.4	$	38.6	$	31.4
Wholesale financing	1.3		12.0		—		12.0		8.9
Finance receivables	3.4		51.0		0.4		50.6		40.3
Net investment in operating leases	0.4		7.5		—		7.5		5.1
Total securitization transactions	$	3.8	$	58.5	$	0.4	$	58.1	$	45.4

__________

(a)Unearned interest supplements and residual support are excluded from securitization transactions.

(b)Includes assets to be used to settle the liabilities of the consolidated VIEs.

(c)Includes unamortized discount and debt issuance costs.

NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued)

	March 31, 2022
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt (c)
			Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses
VIE (b)
Retail financing	$	1.7	$	30.8	$	0.3	$	30.5	$	25.3
Wholesale financing	0.3		11.6		—		11.6		8.0
Finance receivables	2.0		42.4		0.3		42.1		33.3
Net investment in operating leases	0.5		10.2		—		10.2		6.8
Total VIE	$	2.5	$	52.6	$	0.3	$	52.3	$	40.1
Non-VIE
Retail financing	$	0.4	$	7.5	$	—	$	7.5	$	6.8
Wholesale financing	—		0.3		—		0.3		0.2
Finance receivables	0.4		7.8		—		7.8		7.0
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.4	$	7.8	$	—	$	7.8	$	7.0
Total securitization transactions
Retail financing	$	2.1	$	38.3	$	0.3	$	38.0	$	32.1
Wholesale financing	0.3		11.9		—		11.9		8.2
Finance receivables	2.4		50.2		0.3		49.9		40.3
Net investment in operating leases	0.5		10.2		—		10.2		6.8
Total securitization transactions	$	2.9	$	60.4	$	0.3	$	60.1	$	47.1

__________

(a)Unearned interest supplements and residual support are excluded from securitization transactions.

(b)Includes assets to be used to settle the liabilities of the consolidated VIEs.

(c)Includes unamortized discount and debt issuance cost.

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Derivative Financial Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

In the normal course of business, our operations are exposed to global market risks, including the effect of changes in interest rates and foreign currency exchange rates. To manage these risks, we enter into highly effective derivative contracts. We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting.

Income Effect of Derivative Financial Instruments

The gains/(losses), by hedge designation, reported in income for the periods ended March 31 were as follows (in millions):

	First Quarter
	2021		2022
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments	$	101	$	76
Fair value changes on hedging instruments	(641)		(986)
Fair value changes on hedged debt	590		991
Cross-currency interest rate swap contracts
Net interest settlements and accruals on hedging instruments	(3)		(3)
Fair value changes on hedging instruments	(50)		(37)
Fair value changes on hedged debt	44		41
Derivatives not designated as hedging instruments
Interest rate contracts	(31)		123
Foreign currency exchange contracts (a)	52		(2)
Cross-currency interest rate swap contracts	(245)		(227)
Total	$	(183)	$	(24)

__________

(a)Reflects forward contracts between us and an affiliated company.

NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)

Balance Sheet Effect of Derivative Financial Instruments

Derivative assets and liabilities are reported on the balance sheets at fair value and are presented on a gross basis. The notional amounts of the derivative instruments do not necessarily represent amounts exchanged by the parties and are not a direct measure of our financial exposure. We also enter into master agreements with counterparties that may allow for netting of exposures in the event of default or breach of the counterparty agreement. Collateral represents cash received or paid under reciprocal arrangements that we have entered into with our derivative counterparties, which we do not use to offset our derivative assets and liabilities.

The fair value of our derivative instruments and the associated notional amounts were as follows (in millions):

	December 31, 2021						March 31, 2022
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	23,893	$	544	$	274	$	21,985	$	41	$	758
Cross-currency interest rate swap contracts	885		—		49		885		—		79
Derivatives not designated as hedging instruments
Interest rate contracts	50,060		338		126		49,854		496		195
Foreign currency exchange contracts	4,407		66		2		4,695		51		29
Cross-currency interest rate swap contracts	6,533		117		61		6,520		51		276
Total derivative financial instruments, gross (a) (b)	$	85,778	$	1,065	$	512	$	83,939	$	639	$	1,337

__________

(a)At December 31, 2021 and March 31, 2022, we held collateral of $26 million and $102 million, respectively, and we posted collateral of $71 million and $109 million, respectively.

(b)At December 31, 2021 and March 31, 2022, the fair value of assets and liabilities available for counterparty netting was $415 million and $189 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.

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Other Assets and Other Liabilities and Deferred Income

3 Months Ended

Mar. 31, 2022

Other Assets and Other Liabilities and Deferred Income [Abstract]

OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED INCOME

OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED REVENUE

Other assets and other liabilities and deferred revenue consist of various balance sheet items that are combined for financial statement presentation due to their respective materiality compared with other individual asset and liability items.

Other assets were as follows (in millions):

	December 31, 2021		March 31, 2022
Prepaid reinsurance premiums and other reinsurance recoverables	$	743	$	751
Accrued interest and other non-finance receivables	584		538
Property and equipment, net of accumulated depreciation (a)	224		225
Deferred charges - income taxes	190		207
Collateral held for resale, at net realizable value	258		188
Investment in non-consolidated affiliates	133		159
Restricted cash	128		119
Operating lease assets	76		71
Other	188		224
Total other assets	$	2,524	$	2,482

__________

(a)Accumulated depreciation was $397 million and $403 million at December 31, 2021 and March 31, 2022, respectively.

Other liabilities and deferred revenue were as follows (in millions):

	December 31, 2021		March 31, 2022
Unearned insurance premiums and fees	$	857	$	864
Interest payable	667		544
Income tax and related interest (a)	229		232
Operating lease liabilities	78		73
Deferred revenue	62		26
Other	273		226
Total other liabilities and deferred revenue	$	2,166	$	1,965

__________

(a)Includes income tax and interest payable to affiliated companies of $101 million and $127 million at December 31, 2021 and March 31, 2022, respectively.

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Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

DEBT

Debt outstanding and interest rates were as follows (in millions):

					Interest Rates
	Debt				Average Contractual				Average Effective
	December 31, 2021		March 31, 2022		2021		2022		2021		2022
Short-term debt
Unsecured debt
Floating rate demand notes	$	9,400	$	9,870
Other short-term debt	4,701		3,615
Asset-backed debt (a)	709		603
Total short-term debt	14,810		14,088		1.2	%	1.2	%	1.3	%	1.3	%
Long-term debt
Unsecured debt
Notes payable within one year	13,660		12,045
Notes payable after one year	44,337		43,651
Asset-backed debt (a)
Notes payable within one year	18,049		19,219
Notes payable after one year	26,654		27,365
Unamortized (discount)/premium	29		27
Unamortized issuance costs	(212)		(219)
Fair value adjustments (b)	390		(660)
Total long-term debt	102,907		101,428		2.6	%	2.6	%	2.6	%	2.6	%
Total debt	$	117,717	$	115,516	2.4	%	2.4	%	2.4	%	2.4	%
Fair value of debt (c)	$	120,204	$	115,576

__________

(a)Asset-backed debt issued in securitizations is the obligation of the consolidated securitization entity that issued the debt and is payable only out of collections on the underlying securitized assets and related enhancements. This asset-backed debt is not the obligation of Ford Credit or our other subsidiaries.

(b)These adjustments are related to hedging activity and include discontinued hedging relationship adjustments of $257 million and $242 million at December 31, 2021 and March 31, 2022, respectively. The carrying value of hedged debt was $37.5 billion and $36.3 billion at December 31, 2021 and March 31, 2022, respectively.

(c)At December 31, 2021 and March 31, 2022, the fair value of debt includes $14.1 billion and $13.5 billion of short-term debt, respectively, carried at cost, which approximates fair value. All other debt is categorized within Level 2 of the fair value hierarchy.

OTHER INCOME, NET

OTHER INCOME/(LOSS)

Other income/(loss) consists of various line items that are combined on the consolidated income statements due to their respective materiality compared with other individual income and expense items.

The amounts included in Other income/(loss), net for the periods ended March 31 were as follows (in millions):

	First Quarter
	2021		2022
Gains/(Losses) on derivatives	$	(265)	$	(123)
Currency revaluation gains/(losses)	183		152
Interest and investment income (a)	(2)		(5)
Gains/(Losses) on changes in investments in affiliates (b)	1		(195)
Other	8		2
Total other income/(loss), net	$	(75)	$	(169)

__________

(a)Includes a $20 million unrealized gain for an observable price event on a non-consolidated investment.

(b)Includes losses related to our restructuring in South America described in Note 10.

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Restructuring and Related Activities

3 Months Ended

Mar. 31, 2022

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

RESTRUCTURING ACTIONS

In June 2021, we announced that our subsidiaries in Brazil and Argentina would cease originating receivables and wind down operations. In the first quarter of 2022, we liquidated two of our investments in Brazil and reclassified foreign currency translation losses of $119 million to net income, included in Other income/(loss), net.

In December 2021, we received a capital contribution from a subsidiary of Ford in exchange for a minority interest share in one of our Argentina-based subsidiaries. As a result, we recorded $22 million in Shareholder’s interest attributable to noncontrolling interests on our consolidated balance sheets. During the first quarter of 2022, we reacquired Ford’s minority interest share and, in exchange, transferred assets associated with an Argentina-based subsidiary to Ford. In addition, during the first quarter of 2022, we sold our shares in a second Argentina-based subsidiary to Ford. The difference between the carrying value of the net assets transferred and sold to Ford and the consideration received from Ford was $61 million, reported as a reduction to Shareholder’s interest. As a result of the transfer and sale, Ford Credit reclassified $75 million of accumulated foreign currency translation losses to net income, included in Other income/(loss), net.

Accumulated foreign currency translation losses associated with our remaining investments in Brazil and Argentina included in Accumulated other comprehensive income/(loss) at March 31, 2022 were $259 million. We expect to reclassify these losses to income upon substantially complete liquidation of our investments, which may occur over multiple reporting periods. Although the timing for the completion of these actions is uncertain, we expect the majority of losses to be recognized in 2024 or later.

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Other Income, Net

3 Months Ended

Mar. 31, 2022

Other Income and Expenses [Abstract]

OTHER INCOME, NET

OTHER INCOME/(LOSS)

Other income/(loss) consists of various line items that are combined on the consolidated income statements due to their respective materiality compared with other individual income and expense items.

The amounts included in Other income/(loss), net for the periods ended March 31 were as follows (in millions):

	First Quarter
	2021		2022
Gains/(Losses) on derivatives	$	(265)	$	(123)
Currency revaluation gains/(losses)	183		152
Interest and investment income (a)	(2)		(5)
Gains/(Losses) on changes in investments in affiliates (b)	1		(195)
Other	8		2
Total other income/(loss), net	$	(75)	$	(169)

__________

(a)Includes a $20 million unrealized gain for an observable price event on a non-consolidated investment.

(b)Includes losses related to our restructuring in South America described in Note 10.

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Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

We conduct our financing operations directly and indirectly through our subsidiaries and affiliates. We offer substantially similar products and services throughout many different regions, subject to local legal restrictions and market conditions. In our consolidated financial statements, we have three reportable segments based on geographic regions: the United States and Canada, Europe, and All Other. Our All Other segment includes China, India, Mexico, Brazil, Argentina, and our joint venture in South Africa. Items excluded in assessing segment performance because they are managed at the corporate level, including market valuation adjustments to derivatives and exchange-rate fluctuations on foreign currency-denominated transactions, are reflected in Unallocated Other. Effective for the first quarter of 2022, we have eliminated the use of non-GAAP measures and now present receivables on a net basis.

Key financial information for our business segments for the periods ended or at March 31 was as follows (in millions):

	United States and Canada		Europe		All Other		Total Segments		Unallocated Other (a)		Total
First Quarter 2021
Total revenue	$	2,384	$	241	$	92	$	2,717	$	—	$	2,717
Income before income taxes	996		66		(15)		1,047		(85)		962
Depreciation on vehicles subject to operating leases	562		6		—		568		—		568
Interest expense	638		80		56		774		30		804
Provision for credit losses	(52)		(1)		13		(40)		—		(40)
Net finance receivables and net investment in operating leases (a) (b)	100,542		21,943		4,653		127,138		—		127,138
Total assets	116,720		25,110		5,438		147,268		—		147,268
First Quarter 2022
Total revenue	$	2,029	$	195	$	102	$	2,326	$	—	$	2,326
Income before income taxes	783		69		(174)		678		76		754
Depreciation on vehicles subject to operating leases	526		(11)		—		515		—		515
Interest expense	542		55		57		654		(43)		611
Provision for credit losses	(67)		(3)		6		(64)		—		(64)
Net finance receivables and net investment in operating leases (a)	93,955		17,991		5,449		117,395		—		117,395
Total assets	106,762		20,633		6,182		133,577		—		133,577

__________

(a)Excludes held-for-sale finance receivables.

(b)Prior periods have been restated to display net receivables in lieu of the non-GAAP measure of managed receivables.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Commitments and contingencies primarily consist of guarantees and indemnifications as well as litigation and claims.

Guarantees and Indemnifications

Guarantees and indemnifications are recorded at fair value at their inception. For financial guarantees, subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. The probability of default is applied to the expected exposure at the time of default less recoveries to determine the expected payments. Factors to consider when estimating the probability of default include the obligor’s financial position, forecasted economic environment, historical loss rates, and other communications. For non-financial guarantees, we regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the amount of probable payment is recorded.

NOTE 13. COMMITMENTS AND CONTINGENCIES (Continued)

The maximum potential payments under these guarantees and limited indemnities totaled $102 million at both December 31, 2021 and March 31, 2022, respectively. Of these values, $19 million and $22 million at December 31, 2021 and March 31, 2022, respectively, were counter-guaranteed by Ford to us. There were no recorded liabilities related to guarantees and limited indemnities at December 31, 2021 or March 31, 2022.

In some cases, we have guaranteed debt and other financial obligations of outside third parties and unconsolidated affiliates, including Ford. Expiration dates vary, and guarantees will terminate on payment and/or cancellation of the underlying obligation. A payment by us would be triggered by the failure of the third party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from a third party amounts paid by us under the guarantee. However, our ability to enforce these rights is sometimes stayed until the guaranteed party is paid in full and may be limited in the event of insolvency of the third party or other circumstances.

In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction. These indemnifications might include and are not limited to claims relating to any of the following: environmental, tax, and shareholder matters; intellectual property rights; governmental regulations and employment-related matters; dealer and other commercial contractual relationships; and financial matters, such as securitizations. Performance under these indemnities generally would be triggered by a breach of the contract brought by a counterparty or a third-party claim. While some of these indemnifications are limited in nature, many of them do not limit potential payment. Therefore, we are unable to estimate a maximum amount of future payments that could result from claims made under these unlimited indemnities.

Litigation and Claims

Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include, but are not limited to, matters arising out of governmental regulations; tax matters; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer and other contractual relationships; personal injury matters; investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages in very large amounts, sanctions, assessments, or other relief, which, if granted, would require very large expenditures.

The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome.

We accrue for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time.

For nearly all matters where our historical experience with similar matters is of limited value (i.e., “non-pattern matters”), we evaluate the matters primarily based on the individual facts and circumstances. For non-pattern matters, we evaluate whether there is a reasonable possibility of a material loss in excess of any accrual that can be estimated. It is reasonably possible that some of the matters for which accruals have not been established could be decided unfavorably and could require us to pay damages or make other expenditures. We do not reasonably expect, based on our analysis, that such matters would have a material effect on future financial statements for a particular year, although such an outcome is possible.

As noted, the litigation process is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance. Our assessments are based on our knowledge and experience, but the ultimate outcome of any matter could require payment substantially in excess of the amount that we have accrued and/or disclosed.

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Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Basis of Accounting and Intercompany Transactions [Abstract]
Basis of Accounting and Intercompany Transactions [Policy Text Block]	The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) for interim financial information, and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited financial statements include all adjustments considered necessary for a fair statement of the results of operations and financial condition for interim periods for Ford Motor Credit Company LLC, its consolidated subsidiaries, and its consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Results for interim periods should not be considered indicative of results for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K Report”). We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation.
Loans and Leases Receivable Disclosure [Abstract]
Financing Receivable [Policy Text Block]	Non-Accrual of Revenue. The accrual of financing revenue is discontinued at the time a receivable is determined to be uncollectible or when it is 90 days past due. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance.Troubled Debt Restructuring (“TDR”). A restructuring of debt constitutes a TDR if we grant a concession to a debtor for economic or legal reasons related to the debtor’s financial difficulties that we otherwise would not consider. Consumer and non-consumer receivables that have a modified interest rate below market rate or that were modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code, except non-consumer receivables that are current with minimal risk of loss, are considered to be TDRs. We do not grant concessions on the principal balance of the receivables. If a receivable is modified in a reorganization proceeding, all payment requirements of the reorganization plan need to be met before remaining balances are forgiven.
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives, Policy [Policy Text Block]	We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting.
Commitments and Contingencies Disclosure [Abstract]
Lessee, Leases [Policy Text Block]	Net investment in operating leases consists primarily of lease contracts for vehicles with individuals, daily rental companies, and fleet customers with terms of 60 months or less. Included in Net investment in operating leases are net investment in operating leases that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information.
Guarantees and Indemnifications Policies [Policy Text Block]	Guarantees and indemnifications are recorded at fair value at their inception. For financial guarantees, subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. The probability of default is applied to the expected exposure at the time of default less recoveries to determine the expected payments. Factors to consider when estimating the probability of default include the obligor’s financial position, forecasted economic environment, historical loss rates, and other communications. For non-financial guarantees, we regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the amount of probable payment is recorded.

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Cash, Cash Equivalents, and Marketable Securities (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis were as follows (in millions):

	Fair Value Level	December 31, 2021		March 31, 2022
Cash and cash equivalents
United States government	1	$	711	$	615
United States government agencies	2	240		200
Non-United States government and agencies	2	152		436
Corporate debt	2	940		889
Total marketable securities classified as cash equivalents		2,043		2,140
Cash, time deposits, and money market funds		8,920		8,439
Total cash and cash equivalents		$	10,963	$	10,579
Marketable securities
United States government	1	$	864	$	413
United States government agencies	2	75		75
Non-United States government and agencies	2	697		1,036
Corporate debt	2	304		297
Other marketable securities	2	233		215
Total marketable securities		$	2,173	$	2,036

Schedule of cash, cash equivalents and restricted cash [Table Text Block]

Cash, cash equivalents, and restricted cash, as reported in the consolidated statements of cash flows, were as follows (in millions):

	December 31, 2021		March 31, 2022
Cash and cash equivalents	$	10,963	$	10,579
Restricted cash (a)	128		119
Total cash, cash equivalents, and restricted cash	$	11,091	$	10,698

__________

(a)Restricted cash is included in Other assets on our consolidated balance sheets and is primarily held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of certain contractual agreements. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions.

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Finance Receivables (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

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.

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

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

	December 31, 2021		March 31, 2022
Consumer
Retail installment contracts, gross	$	69,247	$	67,796
Finance leases, gross	7,318		7,079
Retail financing, gross	76,565		74,875
Unearned interest supplements from Ford and affiliated companies	(3,020)		(2,796)
Consumer finance receivables	73,545		72,079
Non-Consumer
Dealer financing	18,197		20,170
Other financing	1,533		1,627
Non-Consumer finance receivables	19,730		21,797
Total recorded investment	$	93,275	$	93,876
Recorded investment in finance receivables	$	93,275	$	93,876
Allowance for credit losses	(925)		(845)
Total finance receivables, net	$	92,350	$	93,031
Net finance receivables subject to fair value (a)	$	85,347	$	86,261
Fair value (b)	86,199		85,485

__________

(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 [Table Text Block]

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		2,608		6,568		12,717		22,730		27,354		72,789		99.0
Total	$	868	$	2,676	$	6,692	$	12,875	$	22,967	$	27,467	$	73,545	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	2,565		5,360		10,895		20,346		25,311		6,854		71,331		99.0
Total	$	2,667	$	5,466	$	11,039	$	20,582	$	25,461	$	6,864	$	72,079	100.0	%

Financing Receivables Credit Quality Indicators [Table Text Block]

The credit quality analysis of dealer financing receivables at December 31, 2021 was as follows (in millions):

	Amortized Cost Basis by Origination Year
	Dealer Loans
	Prior to 2017		2017		2018		2019		2020		2021		Total		Wholesale Loans		Total		Percent
Group I	$	391	$	68	$	151	$	45	$	109	$	345	$	1,109	$	13,670	$	14,779	81.2	%
Group II	11		7		26		2		4		54		104		2,689		2,793		15.3
Group III	8		—		1		—		1		20		30		529		559		3.1
Group IV	—		—		4		—		—		6		10		56		66		0.4
Total (a)	$	410	$	75	$	182	$	47	$	114	$	425	$	1,253	$	16,944	$	18,197	100.0	%

__________

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

NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

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

	Amortized Cost Basis by Origination Year
	Dealer Loans
	Prior to 2018		2018		2019		2020		2021		2022		Total		Wholesale Loans		Total		Percent
Group I	$	470	$	155	$	44	$	78	$	232	$	111	$	1,090	$	15,628	$	16,718	82.9	%
Group II	12		26		1		5		13		42		99		2,845		2,944		14.6
Group III	8		—		—		—		5		11		24		423		447		2.2
Group IV	—		5		—		1		2		2		10		51		61		0.3
Total (a)	$	490	$	186	$	45	$	84	$	252	$	166	$	1,223	$	18,947	$	20,170	100.0	%

__________

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

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Net Investment in Operating Leases (Tables)

3 Months Ended

Mar. 31, 2022

Leases, Operating [Abstract]

Net investment in operating leases [Table Text Block]

Net investment in operating leases was as follows (in millions):

	December 31, 2021		March 31, 2022
Vehicles, at cost (a)	$	29,982	$	29,084
Accumulated depreciation	(4,815)		(4,720)
Net investment in operating leases	$	25,167	$	24,364

__________

(a)Includes interest supplements and residual support payments we receive on certain leasing transactions under agreements with Ford and affiliated companies, and other vehicle acquisition costs.

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Transfers of Receivables (Tables)

3 Months Ended

Mar. 31, 2022

Transfers and Servicing [Abstract]

Schedule of Assets and Liabilities Related to Securitization Transactions [Table Text Block]

Most of these securitization transactions utilize VIEs. The following tables show the assets and debt related to our securitization transactions that were included in our consolidated financial statements (in billions):

	December 31, 2021
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt (c)
			Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses
VIE (b)
Retail financing	$	1.7	$	31.6	$	0.3	$	31.3	$	24.5
Wholesale financing	1.3		11.7		—		11.7		8.7
Finance receivables	3.0		43.3		0.3		43.0		33.2
Net investment in operating leases	0.4		7.5		—		7.5		5.1
Total VIE	$	3.4	$	50.8	$	0.3	$	50.5	$	38.3
Non-VIE
Retail financing	$	0.4	$	7.4	$	0.1	$	7.3	$	6.9
Wholesale financing	—		0.3		—		0.3		0.2
Finance receivables	0.4		7.7		0.1		7.6		7.1
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.4	$	7.7	$	0.1	$	7.6	$	7.1
Total securitization transactions
Retail financing	$	2.1	$	39.0	$	0.4	$	38.6	$	31.4
Wholesale financing	1.3		12.0		—		12.0		8.9
Finance receivables	3.4		51.0		0.4		50.6		40.3
Net investment in operating leases	0.4		7.5		—		7.5		5.1
Total securitization transactions	$	3.8	$	58.5	$	0.4	$	58.1	$	45.4

__________

(a)Unearned interest supplements and residual support are excluded from securitization transactions.

(b)Includes assets to be used to settle the liabilities of the consolidated VIEs.

(c)Includes unamortized discount and debt issuance costs.

NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued)

	March 31, 2022
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt (c)
			Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses
VIE (b)
Retail financing	$	1.7	$	30.8	$	0.3	$	30.5	$	25.3
Wholesale financing	0.3		11.6		—		11.6		8.0
Finance receivables	2.0		42.4		0.3		42.1		33.3
Net investment in operating leases	0.5		10.2		—		10.2		6.8
Total VIE	$	2.5	$	52.6	$	0.3	$	52.3	$	40.1
Non-VIE
Retail financing	$	0.4	$	7.5	$	—	$	7.5	$	6.8
Wholesale financing	—		0.3		—		0.3		0.2
Finance receivables	0.4		7.8		—		7.8		7.0
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.4	$	7.8	$	—	$	7.8	$	7.0
Total securitization transactions
Retail financing	$	2.1	$	38.3	$	0.3	$	38.0	$	32.1
Wholesale financing	0.3		11.9		—		11.9		8.2
Finance receivables	2.4		50.2		0.3		49.9		40.3
Net investment in operating leases	0.5		10.2		—		10.2		6.8
Total securitization transactions	$	2.9	$	60.4	$	0.3	$	60.1	$	47.1

__________

(a)Unearned interest supplements and residual support are excluded from securitization transactions.

(b)Includes assets to be used to settle the liabilities of the consolidated VIEs.

(c)Includes unamortized discount and debt issuance cost.

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Derivative Financial Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

The gains/(losses), by hedge designation, reported in income for the periods ended March 31 were as follows (in millions):

	First Quarter
	2021		2022
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments	$	101	$	76
Fair value changes on hedging instruments	(641)		(986)
Fair value changes on hedged debt	590		991
Cross-currency interest rate swap contracts
Net interest settlements and accruals on hedging instruments	(3)		(3)
Fair value changes on hedging instruments	(50)		(37)
Fair value changes on hedged debt	44		41
Derivatives not designated as hedging instruments
Interest rate contracts	(31)		123
Foreign currency exchange contracts (a)	52		(2)
Cross-currency interest rate swap contracts	(245)		(227)
Total	$	(183)	$	(24)

__________

(a)Reflects forward contracts between us and an affiliated company.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The fair value of our derivative instruments and the associated notional amounts were as follows (in millions):

	December 31, 2021						March 31, 2022
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	23,893	$	544	$	274	$	21,985	$	41	$	758
Cross-currency interest rate swap contracts	885		—		49		885		—		79
Derivatives not designated as hedging instruments
Interest rate contracts	50,060		338		126		49,854		496		195
Foreign currency exchange contracts	4,407		66		2		4,695		51		29
Cross-currency interest rate swap contracts	6,533		117		61		6,520		51		276
Total derivative financial instruments, gross (a) (b)	$	85,778	$	1,065	$	512	$	83,939	$	639	$	1,337

__________

(a)At December 31, 2021 and March 31, 2022, we held collateral of $26 million and $102 million, respectively, and we posted collateral of $71 million and $109 million, respectively.

(b)At December 31, 2021 and March 31, 2022, the fair value of assets and liabilities available for counterparty netting was $415 million and $189 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.

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Other Assets and Other Liabilities and Deferred Income (Tables)

3 Months Ended

Mar. 31, 2022

Other Assets and Other Liabilities and Deferred Income [Abstract]

Schedule of Other Assets and Other Liabilities [Table Text Block]

Other assets and other liabilities and deferred revenue consist of various balance sheet items that are combined for financial statement presentation due to their respective materiality compared with other individual asset and liability items.

Other assets were as follows (in millions):

	December 31, 2021		March 31, 2022
Prepaid reinsurance premiums and other reinsurance recoverables	$	743	$	751
Accrued interest and other non-finance receivables	584		538
Property and equipment, net of accumulated depreciation (a)	224		225
Deferred charges - income taxes	190		207
Collateral held for resale, at net realizable value	258		188
Investment in non-consolidated affiliates	133		159
Restricted cash	128		119
Operating lease assets	76		71
Other	188		224
Total other assets	$	2,524	$	2,482

__________

(a)Accumulated depreciation was $397 million and $403 million at December 31, 2021 and March 31, 2022, respectively.

Other liabilities and deferred revenue were as follows (in millions):

	December 31, 2021		March 31, 2022
Unearned insurance premiums and fees	$	857	$	864
Interest payable	667		544
Income tax and related interest (a)	229		232
Operating lease liabilities	78		73
Deferred revenue	62		26
Other	273		226
Total other liabilities and deferred revenue	$	2,166	$	1,965

__________

(a)Includes income tax and interest payable to affiliated companies of $101 million and $127 million at December 31, 2021 and March 31, 2022, respectively.

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Debt (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

Debt outstanding and interest rates were as follows (in millions):

					Interest Rates
	Debt				Average Contractual				Average Effective
	December 31, 2021		March 31, 2022		2021		2022		2021		2022
Short-term debt
Unsecured debt
Floating rate demand notes	$	9,400	$	9,870
Other short-term debt	4,701		3,615
Asset-backed debt (a)	709		603
Total short-term debt	14,810		14,088		1.2	%	1.2	%	1.3	%	1.3	%
Long-term debt
Unsecured debt
Notes payable within one year	13,660		12,045
Notes payable after one year	44,337		43,651
Asset-backed debt (a)
Notes payable within one year	18,049		19,219
Notes payable after one year	26,654		27,365
Unamortized (discount)/premium	29		27
Unamortized issuance costs	(212)		(219)
Fair value adjustments (b)	390		(660)
Total long-term debt	102,907		101,428		2.6	%	2.6	%	2.6	%	2.6	%
Total debt	$	117,717	$	115,516	2.4	%	2.4	%	2.4	%	2.4	%
Fair value of debt (c)	$	120,204	$	115,576

__________

(a)Asset-backed debt issued in securitizations is the obligation of the consolidated securitization entity that issued the debt and is payable only out of collections on the underlying securitized assets and related enhancements. This asset-backed debt is not the obligation of Ford Credit or our other subsidiaries.

(b)These adjustments are related to hedging activity and include discontinued hedging relationship adjustments of $257 million and $242 million at December 31, 2021 and March 31, 2022, respectively. The carrying value of hedged debt was $37.5 billion and $36.3 billion at December 31, 2021 and March 31, 2022, respectively.

(c)At December 31, 2021 and March 31, 2022, the fair value of debt includes $14.1 billion and $13.5 billion of short-term debt, respectively, carried at cost, which approximates fair value. All other debt is categorized within Level 2 of the fair value hierarchy.

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Other Income, Net (Tables)

3 Months Ended

Mar. 31, 2022

Other Income and Expenses [Abstract]

Schedule of Other Income [Table Text Block]

The amounts included in Other income/(loss), net for the periods ended March 31 were as follows (in millions):

	First Quarter
	2021		2022
Gains/(Losses) on derivatives	$	(265)	$	(123)
Currency revaluation gains/(losses)	183		152
Interest and investment income (a)	(2)		(5)
Gains/(Losses) on changes in investments in affiliates (b)	1		(195)
Other	8		2
Total other income/(loss), net	$	(75)	$	(169)

__________

(a)Includes a $20 million unrealized gain for an observable price event on a non-consolidated investment.

(b)Includes losses related to our restructuring in South America described in Note 10.

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Key financial information for our business segments for the periods ended or at March 31 was as follows (in millions):

	United States and Canada		Europe		All Other		Total Segments		Unallocated Other (a)		Total
First Quarter 2021
Total revenue	$	2,384	$	241	$	92	$	2,717	$	—	$	2,717
Income before income taxes	996		66		(15)		1,047		(85)		962
Depreciation on vehicles subject to operating leases	562		6		—		568		—		568
Interest expense	638		80		56		774		30		804
Provision for credit losses	(52)		(1)		13		(40)		—		(40)
Net finance receivables and net investment in operating leases (a) (b)	100,542		21,943		4,653		127,138		—		127,138
Total assets	116,720		25,110		5,438		147,268		—		147,268
First Quarter 2022
Total revenue	$	2,029	$	195	$	102	$	2,326	$	—	$	2,326
Income before income taxes	783		69		(174)		678		76		754
Depreciation on vehicles subject to operating leases	526		(11)		—		515		—		515
Interest expense	542		55		57		654		(43)		611
Provision for credit losses	(67)		(3)		6		(64)		—		(64)
Net finance receivables and net investment in operating leases (a)	93,955		17,991		5,449		117,395		—		117,395
Total assets	106,762		20,633		6,182		133,577		—		133,577

__________

(a)Excludes held-for-sale finance receivables.

(b)Prior periods have been restated to display net receivables in lieu of the non-GAAP measure of managed receivables

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Cash, Cash Equivalents, and Marketable Securities (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash, Cash Equivalents, and Short-term Investments	$ 8,439	$ 8,920
Total cash and cash equivalents	10,579	10,963
Restricted Cash	119	128
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	10,698	11,091	$ 11,031	$ 14,996
Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash and cash equivalents	2,140	2,043
Fair Value, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Marketable securities	2,036	2,173
US Government [Member] | Fair Value, Recurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash and cash equivalents	615	711
Marketable securities	413	864
US Government Agencies [Member] | Fair Value, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash and cash equivalents	200	240
Marketable securities	75	75
Debt Security, Government, Non-US [Member] | Fair Value, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash and cash equivalents	436	152
Marketable securities	1,036	697
Corporate debt [Member] | Fair Value, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash and cash equivalents	889	940
Marketable securities	297	304
Other Debt Obligations [Member] | Fair Value, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Marketable securities	$ 215	$ 233

XML

Finance Receivables Net (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Sales Type and Direct Financing Lease Revenue	$ 77	$ 90
Net Finance Receivables [Abstract]
Financing Receivable, before Allowance for Credit Loss	93,876		$ 93,275
Financing Receivable, Allowance for Credit Loss	(845)	(1,223)	(925)	$ (1,305)
Finance leases, net	93,031		92,350
Uncollected interest receivable excluded from finance receivable	$ 122		125
Financing Receivable, Threshold Period Past Due	31 days
Consumer Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivable, before Allowance for Credit Loss	$ 72,079		73,545
Financing Receivable, Allowance for Credit Loss	(826)	(1,170)	(903)	(1,245)
Non-Consumer Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivable, before Allowance for Credit Loss	21,797		19,730
Financing Receivable, Allowance for Credit Loss	(19)	$ (53)	(22)	$ (60)
Retail Installment Loans [Member] | Consumer Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivable, before Allowance for Credit Loss	67,796		69,247
Retail [Member] | Consumer Segment [Member]
Net Finance Receivables [Abstract]
Unearned interest supplements from Ford and affiliated companies	(2,796)		(3,020)
Financing Receivable, before Allowance for Credit Loss	72,079		73,545
Finance Receivable Before Unearned Interest Supplements	74,875		76,565
Finance leases [Member]
Net Finance Receivables [Abstract]
Finance leases, net	6,770		7,003
Finance leases [Member] | Consumer Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivable, before Allowance for Credit Loss	7,079		7,318
Wholesale and Dealer Loans [Member] | Non-Consumer Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivable, before Allowance for Credit Loss	20,170		18,197
Other Finance Receivables [Member] | Non-Consumer Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivable, before Allowance for Credit Loss	1,627		1,533
Retail Installment loans, dealer financing, and other financing [Member]
Net Finance Receivables [Abstract]
Finance leases, net	86,261		85,347
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Net Finance Receivables [Abstract]
Finance leases, net	86,261		85,347
Fair value (b)	$ 85,485		$ 86,199

XML

Finance Receivables - Credit Quality and Impaired Receivables (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
Non-Accrual of Revenue	90
Financing Receivables	$ 93,876,000,000	$ 93,275,000,000
Wholesale and Dealer Loans [Member] | Financing Receivable [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	13,000,000	62,000,000
Commercial Portfolio Segment [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	21,797,000,000	19,730,000,000
Financing Receivable, Revolving	18,947,000,000	16,944,000,000
Commercial Portfolio Segment [Member] | Group I
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	16,718,000,000	14,779,000,000
Financing Receivable, Revolving	15,628,000,000	13,670,000,000
Commercial Portfolio Segment [Member] | Group I | Percent of Total
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	0.829	0.812
Commercial Portfolio Segment [Member] | Group II
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	2,944,000,000	2,793,000,000
Financing Receivable, Revolving	2,845,000,000	2,689,000,000
Commercial Portfolio Segment [Member] | Group II | Percent of Total
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	0.146	0.153
Commercial Portfolio Segment [Member] | Group III
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	447,000,000	559,000,000
Financing Receivable, Revolving	423,000,000	529,000,000
Commercial Portfolio Segment [Member] | Group III | Percent of Total
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	0.022	0.031
Commercial Portfolio Segment [Member] | Group IV
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	61,000,000	66,000,000
Financing Receivable, Revolving	51,000,000	56,000,000
Commercial Portfolio Segment [Member] | Group IV | Percent of Total
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	0.003	0.004
Commercial Portfolio Segment [Member] | Dealer Loan
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	490,000,000	410,000,000
Financing Receivable, Originated Four Years before Latest Fiscal Year	186,000,000	75,000,000
Financing Receivable, Originated Three Years before Latest Fiscal Year	45,000,000	182,000,000
Financing Receivable, Originated Two Years before Latest Fiscal Year	84,000,000	47,000,000
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	252,000,000	114,000,000
Financing Receivable, Originated in Current Fiscal Year	166,000,000	425,000,000
Financing Receivable Originations Total	1,223,000,000	1,253,000,000
Commercial Portfolio Segment [Member] | Dealer Loan | Group I
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	470,000,000	391,000,000
Financing Receivable, Originated Four Years before Latest Fiscal Year	155,000,000	68,000,000
Financing Receivable, Originated Three Years before Latest Fiscal Year	44,000,000	151,000,000
Financing Receivable, Originated Two Years before Latest Fiscal Year	78,000,000	45,000,000
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	232,000,000	109,000,000
Financing Receivable, Originated in Current Fiscal Year	111,000,000	345,000,000
Financing Receivable Originations Total	1,090,000,000	1,109,000,000
Commercial Portfolio Segment [Member] | Dealer Loan | Group II
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	12,000,000	11,000,000
Financing Receivable, Originated Four Years before Latest Fiscal Year	26,000,000	7,000,000
Financing Receivable, Originated Three Years before Latest Fiscal Year	1,000,000	26,000,000
Financing Receivable, Originated Two Years before Latest Fiscal Year	5,000,000	2,000,000
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	13,000,000	4,000,000
Financing Receivable, Originated in Current Fiscal Year	42,000,000	54,000,000
Financing Receivable Originations Total	99,000,000	104,000,000
Commercial Portfolio Segment [Member] | Dealer Loan | Group III
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	8,000,000	8,000,000
Financing Receivable, Originated Four Years before Latest Fiscal Year	0	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0	1,000,000
Financing Receivable, Originated Two Years before Latest Fiscal Year	0	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	5,000,000	1,000,000
Financing Receivable, Originated in Current Fiscal Year	11,000,000	20,000,000
Financing Receivable Originations Total	24,000,000	30,000,000
Commercial Portfolio Segment [Member] | Dealer Loan | Group IV
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	0	0
Financing Receivable, Originated Four Years before Latest Fiscal Year	5,000,000	0
Financing Receivable, Originated Three Years before Latest Fiscal Year	0	4,000,000
Financing Receivable, Originated Two Years before Latest Fiscal Year	1,000,000	0
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	2,000,000	0
Financing Receivable, Originated in Current Fiscal Year	2,000,000	6,000,000
Financing Receivable Originations Total	10,000,000	10,000,000
Commercial Portfolio Segment [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	20,170,000,000	18,197,000,000
Commercial Portfolio Segment [Member] | Commercial Portfolio Segment [Member] | Percent of Total
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	1.000	1.000
Commercial Portfolio Segment [Member] | Wholesale and Dealer Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	20,170,000,000	18,197,000,000
Consumer Portfolio Segment [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	72,079,000,000	73,545,000,000
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	2,667,000,000	868,000,000
Financing Receivable, Originated Four Years before Latest Fiscal Year	5,466,000,000	2,676,000,000
Financing Receivable, Originated Three Years before Latest Fiscal Year	11,039,000,000	6,692,000,000
Financing Receivable, Originated Two Years before Latest Fiscal Year	20,582,000,000	12,875,000,000
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	25,461,000,000	22,967,000,000
Financing Receivable, Originated in Current Fiscal Year	6,864,000,000	27,467,000,000
Consumer Portfolio Segment [Member] | Financing Receivables, 31-60 Days Past Due [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	600,000,000	586,000,000
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	76,000,000	39,000,000
Financing Receivable, Originated Four Years before Latest Fiscal Year	84,000,000	52,000,000
Financing Receivable, Originated Three Years before Latest Fiscal Year	116,000,000	98,000,000
Financing Receivable, Originated Two Years before Latest Fiscal Year	192,000,000	120,000,000
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	123,000,000	186,000,000
Financing Receivable, Originated in Current Fiscal Year	9,000,000	91,000,000
Consumer Portfolio Segment [Member] | Financing Receivables, 61-120 Days past due [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	105,000,000	127,000,000
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	11,000,000	7,000,000
Financing Receivable, Originated Four Years before Latest Fiscal Year	16,000,000	10,000,000
Financing Receivable, Originated Three Years before Latest Fiscal Year	20,000,000	20,000,000
Financing Receivable, Originated Two Years before Latest Fiscal Year	31,000,000	29,000,000
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	26,000,000	40,000,000
Financing Receivable, Originated in Current Fiscal Year	1,000,000	21,000,000
Consumer Portfolio Segment [Member] | Financing Receivables, Greater Than 120 Days Past Due [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	43,000,000	43,000,000
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	15,000,000	10,000,000
Financing Receivable, Originated Four Years before Latest Fiscal Year	6,000,000	6,000,000
Financing Receivable, Originated Three Years before Latest Fiscal Year	8,000,000	6,000,000
Financing Receivable, Originated Two Years before Latest Fiscal Year	13,000,000	9,000,000
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	1,000,000	11,000,000
Financing Receivable, Originated in Current Fiscal Year	0	1,000,000
Consumer Portfolio Segment [Member] | Total past due [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	748,000,000	756,000,000
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	102,000,000	56,000,000
Financing Receivable, Originated Four Years before Latest Fiscal Year	106,000,000	68,000,000
Financing Receivable, Originated Three Years before Latest Fiscal Year	144,000,000	124,000,000
Financing Receivable, Originated Two Years before Latest Fiscal Year	236,000,000	158,000,000
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	150,000,000	237,000,000
Financing Receivable, Originated in Current Fiscal Year	10,000,000	113,000,000
Consumer Portfolio Segment [Member] | Financial Asset, 1 to 29 Days Past Due [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	71,331,000,000	72,789,000,000
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	2,565,000,000	812,000,000
Financing Receivable, Originated Four Years before Latest Fiscal Year	5,360,000,000	2,608,000,000
Financing Receivable, Originated Three Years before Latest Fiscal Year	10,895,000,000	6,568,000,000
Financing Receivable, Originated Two Years before Latest Fiscal Year	20,346,000,000	12,717,000,000
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	25,311,000,000	22,730,000,000
Financing Receivable, Originated in Current Fiscal Year	6,854,000,000	27,354,000,000
Consumer Portfolio Segment [Member] | Percent of Total
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	1.000	1.000
Consumer Portfolio Segment [Member] | Percent of Total | Financing Receivables, 31-60 Days Past Due [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	0.008	0.008
Consumer Portfolio Segment [Member] | Percent of Total | Financing Receivables, 61-120 Days past due [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	0.002	0.002
Consumer Portfolio Segment [Member] | Percent of Total | Financing Receivables, Greater Than 120 Days Past Due [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	0	0
Consumer Portfolio Segment [Member] | Percent of Total | Total past due [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	0.010	0.010
Consumer Portfolio Segment [Member] | Percent of Total | Financial Asset, 1 to 29 Days Past Due [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivables	$ 0.990	$ 0.990
Consumer Portfolio Segment [Member] | Pass [Member] | Maximum [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Finance Receivables Credit Quality Ratings Term Range	60 days
Consumer Portfolio Segment [Member] | Substandard [Member] | Minimum [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Finance Receivables Credit Quality Ratings Term Range	120 days
Consumer Portfolio Segment [Member] | Special Mention [Member] | Maximum [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Finance Receivables Credit Quality Ratings Term Range	120 days
Consumer Portfolio Segment [Member] | Special Mention [Member] | Minimum [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Finance Receivables Credit Quality Ratings Term Range	61 days

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Finance Receivables and Allowance for Credit Losses Allowance for credit losses (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Loss	$ 845	$ 1,223	$ 925	$ 1,305
Finance receivables, net	93,031		92,350
Financing Receivable, Allowance for Credit Loss, Writeoff	(62)	(97)
Financing Receivable, Allowance for Credit Loss, Recovery	44	56
Financing Receivable, Credit Loss, Expense (Reversal)	(64)	(40)
Financing Receivable, Allowance for Credit Losses, Other	2	(1)
Financing Receivable, before Allowance for Credit Loss	93,876		93,275
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease)	$ 80
Financing Receivable, Threshold Period Past Due, Writeoff	120 days
Commercial Portfolio Segment [Member]
Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Loss	$ 19	53	22	60
Financing Receivable, Allowance for Credit Loss, Writeoff	0	0
Financing Receivable, Allowance for Credit Loss, Recovery	1	3
Financing Receivable, Credit Loss, Expense (Reversal)	(5)	(10)
Financing Receivable, Allowance for Credit Losses, Other	1	0
Financing Receivable, before Allowance for Credit Loss	21,797		19,730
Consumer Portfolio Segment [Member]
Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Loss	826	1,170	903	$ 1,245
Financing Receivable, Allowance for Credit Loss, Writeoff	(62)	(97)
Financing Receivable, Allowance for Credit Loss, Recovery	43	53
Financing Receivable, Credit Loss, Expense (Reversal)	(59)	(30)
Financing Receivable, Allowance for Credit Losses, Other	1	$ (1)
Financing Receivable, before Allowance for Credit Loss	72,079		73,545
Retail Installment loans, dealer financing, and other financing [Member]
Allowance for Credit Losses [Line Items]
Finance receivables, net	$ 86,261		$ 85,347

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Net Investments in Operating Leases (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$ 403	$ 397
Net Investment in Operating Leases	$ 24,364	25,167
Maximum [Member]
Net Investment in Operating Leases, Length of Lease	60 months
Property Subject to Operating Lease [Member]
Property Subject to or Available for Operating Lease, Gross	$ 29,084	29,982
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	4,720	4,815
Net Investment in Operating Leases	$ 24,364	$ 25,167

XML

Transfers of Receivables - Assets and Liabilities of Securitizations (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Securitization Transactions [Line Items]
Cash and cash equivalents	$ 10,579	$ 10,963
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	117,395		$ 127,138
Related Debt	115,516	117,717
Total assets	133,577	134,945	$ 147,268
Unencumbered Assets	1,000	900
Consolidated Entities [Member] | Securitization Transactions [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	2,900	3,800
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	60,400	58,500
Allowance for Credit Losses	300	400
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	60,100	58,100
Related Debt	47,100	45,400
Consolidated Entities [Member] | Securitization Transactions [Member] | Financing Receivable [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	2,400	3,400
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	50,200	51,000
Allowance for Credit Losses	300	400
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	49,900	50,600
Related Debt	40,300	40,300
Consolidated Entities [Member] | Securitization Transactions [Member] | Retail [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	2,100	2,100
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	38,300	39,000
Allowance for Credit Losses	300	400
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	38,000	38,600
Related Debt	32,100	31,400
Consolidated Entities [Member] | Securitization Transactions [Member] | Wholesale [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	300	1,300
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	11,900	12,000
Allowance for Credit Losses	0	0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	11,900	12,000
Related Debt	8,200	8,900
Consolidated Entities [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	500	400
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	10,200	7,500
Allowance for Credit Losses	0	0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	10,200	7,500
Related Debt	6,800	5,100
Variable Interest Entity, Primary Beneficiary [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	2,473	3,407
Related Debt	40,139	38,274
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	2,500	3,400
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	52,600	50,800
Allowance for Credit Losses	300	300
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	52,300	50,500
Related Debt	40,100	38,300
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Financing Receivable [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	2,000	3,000
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	42,400	43,300
Allowance for Credit Losses	300	300
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	42,100	43,000
Related Debt	33,300	33,200
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Retail [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	1,700	1,700
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	30,800	31,600
Allowance for Credit Losses	300	300
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	30,500	31,300
Related Debt	25,300	24,500
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Wholesale [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	300	1,300
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	11,600	11,700
Allowance for Credit Losses	0	0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	11,600	11,700
Related Debt	8,000	8,700
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	500	400
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	10,200	7,500
Allowance for Credit Losses	0	0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	10,200	7,500
Related Debt	6,800	5,100
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	400	400
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	7,800	7,700
Allowance for Credit Losses	0	100
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	7,800	7,600
Related Debt	7,000	7,100
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Financing Receivable [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	400	400
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	7,800	7,700
Allowance for Credit Losses	0	100
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	7,800	7,600
Related Debt	7,000	7,100
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Retail [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	400	400
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	7,500	7,400
Allowance for Credit Losses	0	100
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	7,500	7,300
Related Debt	6,800	6,900
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Wholesale [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	0	0
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	300	300
Allowance for Credit Losses	0	0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	300	300
Related Debt	200	200
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	0	0
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	0	0
Allowance for Credit Losses	0	0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	0	0
Related Debt	$ 0	$ 0

XML

Derivative Financial Instruments and Hedging Activities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Derivative [Line Items]
Debt Carrying Value Fair Value	$ 36,300		$ 37,500
Income Effect of Derivative Financial Instruments [Abstract]
Derivative, Gain (Loss) on Derivative, Net	(24)	$ (183)
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Fair Value of Derivative Assets	639		1,065
Fair Value of Derivative Liabilities	1,337		512
Derivative, Notional Amount	83,939		85,778
Derivative, Collateral, Obligation to Return Cash	102		26
Derivative, Collateral, Right to Reclaim Cash	109		71
Derivative Asset, Not Offset, Policy Election Deduction	189		415
Derivative Liability, Not Offset, Policy Election Deduction	189		415
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member]
Income Effect of Derivative Financial Instruments [Abstract]
Net interest settlements and accruals excluded from the assessment of hedge effectiveness	76	101
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments	(986)	(641)
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge	991	590
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Derivative, Notional Amount	21,985		23,893
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Currency Swap
Income Effect of Derivative Financial Instruments [Abstract]
Net interest settlements and accruals excluded from the assessment of hedge effectiveness	(3)	(3)
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments	(37)	(50)
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge	41	44
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Derivative, Notional Amount	885		885
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | Fair Value Hedging [Member]
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Fair Value of Derivative Assets	41		544
Fair Value of Derivative Liabilities	758		274
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | Currency Swap
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Fair Value of Derivative Assets	0		0
Fair Value of Derivative Liabilities	79		49
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member]
Income Effect of Derivative Financial Instruments [Abstract]
Derivative, Gain (Loss) on Derivative, Net	123	(31)
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Derivative, Notional Amount	49,854		50,060
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Level 2 [Member] | Fair Value, Recurring [Member]
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Fair Value of Derivative Assets	496		338
Fair Value of Derivative Liabilities	195		126
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Income Effect of Derivative Financial Instruments [Abstract]
Derivative, Gain (Loss) on Derivative, Net	(2)	52
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Derivative, Notional Amount	4,695		4,407
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Level 2 [Member] | Fair Value, Recurring [Member]
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Fair Value of Derivative Assets	51		66
Fair Value of Derivative Liabilities	29		2
Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member]
Income Effect of Derivative Financial Instruments [Abstract]
Derivative, Gain (Loss) on Derivative, Net	(227)	$ (245)
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Derivative, Notional Amount	6,520		6,533
Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Level 2 [Member] | Fair Value, Recurring [Member]
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Fair Value of Derivative Assets	51		117
Fair Value of Derivative Liabilities	$ 276		$ 61

XML

Other Assets and Other Liabilities and Deferred Income (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Other Assets and Other Liabilities [Abstract]
Accrued interest and other non-finance receivables	$ 538	$ 584
Property, Plant and Equipment, Net	225	224
Collateral held for resale, at net realizable value, and other inventory	188	258
Deferred charges - income taxes	207	190
Prepaid Reinsurance Premiums and Other Reinsurance Recoverables	751	743
Operating lease assets	71	76
Investment in non-consolidated affiliates	159	133
Restricted Cash and Cash Equivalents	119	128
Other	224	188
Other assets	2,482	2,524
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	403	397
Unearned Premiums and Fees	864	857
Interest Payable	544	667
Taxes Payable	232	229
Deferred Revenue	26	62
Operating Lease, Liability	73	78
Other Liabilities	1,965	2,166
Related Party Transactions Income Taxes and Related Interest Payable	127	101
Other Liabilities, Miscellaneous	226	273
Restricted Cash	119	128
Property Subject to Operating Lease [Member]
Other Assets and Other Liabilities [Abstract]
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$ 4,720	$ 4,815

XML

Debt (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total short-term debt	$ 14,088	$ 14,810
Unamortized discount	27	29
Unamortized debt issuance costs	(219)	(212)
Fair value adjustments	(660)	390
Total long-term debt	101,428	102,907
Total debt	$ 115,516	$ 117,717
Average Contractual (interest rate)	2.40%	2.40%
Average Effective (interest rate)	2.40%	2.40%
Debt Carrying Value Fair Value	$ 36,300	$ 37,500
Fair value of short-term debt	13,500	14,100
Discontinued Hedged Debt	242	257
Floating Rate Demand Notes [Member]
Debt Instrument [Line Items]
Total short-term debt	9,870	9,400
Other short-term debt [Member]
Debt Instrument [Line Items]
Total short-term debt	3,615	4,701
Asset-backed Securities [Member]
Debt Instrument [Line Items]
Total short-term debt	603	709
Notes payable within one year	19,219	18,049
Notes payable after one year	$ 27,365	$ 26,654
Total short-term debt [Member]
Debt Instrument [Line Items]
Average Contractual (interest rate)	1.20%	1.20%
Average Effective (interest rate)	1.30%	1.30%
Unsecured Debt [Member]
Debt Instrument [Line Items]
Notes payable within one year	$ 12,045	$ 13,660
Notes payable after one year	$ 43,651	$ 44,337
Total long-term debt [Member]
Debt Instrument [Line Items]
Average Contractual (interest rate)	2.60%	2.60%
Average Effective (interest rate)	2.60%	2.60%
Fair Value, Nonrecurring [Member] | Level 2 [Member]
Debt Instrument [Line Items]
Fair value of debt	$ 115,576	$ 120,204

XML

Restructuring and Related Activities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Restructuring Cost and Reserve [Line Items]
SHAREHOLDER’S INTEREST	$ 0		$ 22
Shareholder's Interest [Member]	5,166		$ 5,227
ARGENTINA
Restructuring Cost and Reserve [Line Items]
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax	75
BRAZIL
Restructuring Cost and Reserve [Line Items]
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax	119
Parent [Member]
Restructuring Cost and Reserve [Line Items]
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax	195	$ 0
Foreign Currency Translation Adjustment
Restructuring Cost and Reserve [Line Items]
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	259
Equity Component [Domain]
Restructuring Cost and Reserve [Line Items]
Shareholder's Interest [Member]	$ 61

XML

Other Income, Net (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Other Income and Expenses [Abstract]
Gains/(Losses) on derivatives	$ (123)	$ (265)
Currency revaluation gains/(losses)	152	183
Interest and investment income	(5)	(2)
Gains/(Losses) On Changes In Investments In Affiliates	(195)	1
Other	2	8
Other income, net	(169)	$ (75)
Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Annual Amount	$ 20

XML

Segment Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total revenue	$ 2,326	$ 2,717
Income before income taxes	754	962
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases	515	568
Interest expense	611	804
Financing Receivable, Credit Loss, Expense (Reversal)	(64)	(40)
Provision for credit losses		(40)
Net finance receivables and net investment in operating leases	117,395	127,138
Total assets	133,577	147,268	$ 134,945
Reportable segments
Segment Reporting Information [Line Items]
Total revenue	2,326	2,717
Income before income taxes	678	1,047
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases	515	568
Interest expense	654	774
Financing Receivable, Credit Loss, Expense (Reversal)	(64)	(40)
Net finance receivables and net investment in operating leases	117,395	127,138
Total assets	133,577	147,268
Reportable segments | Americas [Member]
Other disclosures [Abstract]
Net finance receivables and net investment in operating leases	93,955	100,542
Total assets	106,762	116,720
Reportable segments | Europe [Member]
Other disclosures [Abstract]
Net finance receivables and net investment in operating leases	17,991	21,943
Total assets	20,633	25,110
Reportable segments | Asia Pacific [Member]
Other disclosures [Abstract]
Net finance receivables and net investment in operating leases	5,449	4,653
Total assets	6,182	5,438
Reportable segments | United States and Canada
Segment Reporting Information [Line Items]
Total revenue	2,029	2,384
Income before income taxes	783	996
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases	526	562
Interest expense	542	638
Financing Receivable, Credit Loss, Expense (Reversal)	(67)	(52)
Reportable segments | Europe
Segment Reporting Information [Line Items]
Total revenue	195	241
Income before income taxes	69	66
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases	(11)	6
Interest expense	55	80
Financing Receivable, Credit Loss, Expense (Reversal)	(3)	(1)
Reportable segments | All Other
Segment Reporting Information [Line Items]
Total revenue	102	92
Income before income taxes	(174)	(15)
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases	0	0
Interest expense	57	56
Financing Receivable, Credit Loss, Expense (Reversal)	6	13
Unallocated other
Segment Reporting Information [Line Items]
Total revenue	0	0
Income before income taxes	76	(85)
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases	0	0
Interest expense	(43)	30
Financing Receivable, Credit Loss, Expense (Reversal)	0	0
Net finance receivables and net investment in operating leases	0	0
Total assets	$ 0	$ 0

XML

Commitments and Contingencies (Details) - USD ($)
$ in Millions

3 Months Ended

Mar. 31, 2022

Dec. 31, 2021

Guarantor Obligations [Line Items]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Commitments and contingencies primarily consist of guarantees and indemnifications as well as litigation and claims.

Guarantees and Indemnifications

Guarantees and indemnifications are recorded at fair value at their inception. For financial guarantees, subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. The probability of default is applied to the expected exposure at the time of default less recoveries to determine the expected payments. Factors to consider when estimating the probability of default include the obligor’s financial position, forecasted economic environment, historical loss rates, and other communications. For non-financial guarantees, we regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the amount of probable payment is recorded.

NOTE 13. COMMITMENTS AND CONTINGENCIES (Continued)

The maximum potential payments under these guarantees and limited indemnities totaled $102 million at both December 31, 2021 and March 31, 2022, respectively. Of these values, $19 million and $22 million at December 31, 2021 and March 31, 2022, respectively, were counter-guaranteed by Ford to us. There were no recorded liabilities related to guarantees and limited indemnities at December 31, 2021 or March 31, 2022.

In some cases, we have guaranteed debt and other financial obligations of outside third parties and unconsolidated affiliates, including Ford. Expiration dates vary, and guarantees will terminate on payment and/or cancellation of the underlying obligation. A payment by us would be triggered by the failure of the third party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from a third party amounts paid by us under the guarantee. However, our ability to enforce these rights is sometimes stayed until the guaranteed party is paid in full and may be limited in the event of insolvency of the third party or other circumstances.

In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction. These indemnifications might include and are not limited to claims relating to any of the following: environmental, tax, and shareholder matters; intellectual property rights; governmental regulations and employment-related matters; dealer and other commercial contractual relationships; and financial matters, such as securitizations. Performance under these indemnities generally would be triggered by a breach of the contract brought by a counterparty or a third-party claim. While some of these indemnifications are limited in nature, many of them do not limit potential payment. Therefore, we are unable to estimate a maximum amount of future payments that could result from claims made under these unlimited indemnities.

Litigation and Claims

Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include, but are not limited to, matters arising out of governmental regulations; tax matters; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer and other contractual relationships; personal injury matters; investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages in very large amounts, sanctions, assessments, or other relief, which, if granted, would require very large expenditures.

The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome.

We accrue for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time.

For nearly all matters where our historical experience with similar matters is of limited value (i.e., “non-pattern matters”), we evaluate the matters primarily based on the individual facts and circumstances. For non-pattern matters, we evaluate whether there is a reasonable possibility of a material loss in excess of any accrual that can be estimated. It is reasonably possible that some of the matters for which accruals have not been established could be decided unfavorably and could require us to pay damages or make other expenditures. We do not reasonably expect, based on our analysis, that such matters would have a material effect on future financial statements for a particular year, although such an outcome is possible.

As noted, the litigation process is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance. Our assessments are based on our knowledge and experience, but the ultimate outcome of any matter could require payment substantially in excess of the amount that we have accrued and/or disclosed.

Financial Guarantee [Member]

Guarantor Obligations [Line Items]

Guarantor Obligations, Maximum Exposure, Undiscounted

$ 102

$ 102

Counter Guarantee [Member] | Ford Motor Company [Member]

Guarantor Obligations [Line Items]

Counter guarantee

$ 22

$ 19