Document and Entity Information
Document and Entity Information Document shares in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)shares | |
Entity Registrant Name | FORD MOTOR CREDIT CO LLC |
Entity Central Index Key | 38,009 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Document Type | 8-K |
Document Period End Date | Dec. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | shares | 0 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Public Float | $ | $ 0 |
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. |
Consolidated Income Statement
Consolidated Income Statement - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing revenue | |||
Operating leases | $ 5,555 | $ 4,865 | $ 4,129 |
Retail financing | 3,070 | 2,819 | 2,776 |
Dealer financing | 1,760 | 1,539 | 1,620 |
Other | 38 | 57 | 81 |
Total financing revenue | 10,423 | 9,280 | 8,606 |
Depreciation on vehicles subject to operating leases | (4,329) | (3,640) | (3,088) |
Interest expense | (2,755) | (2,416) | (2,656) |
Net financing margin | 3,339 | 3,224 | 2,862 |
Other revenue | |||
Insurance premiums earned | 156 | 133 | 125 |
Other income, net | 330 | 284 | 265 |
Total financing margin and other revenue | 3,825 | 3,641 | 3,252 |
Expenses | |||
Operating expenses | 1,274 | 1,139 | 1,094 |
Provision for credit losses | 547 | 347 | 197 |
Insurance expenses | 125 | 69 | 107 |
Total expenses | 1,946 | 1,555 | 1,398 |
Income before income taxes | 1,879 | 2,086 | 1,854 |
Provision for income taxes | 506 | 723 | 149 |
Net income | $ 1,373 | $ 1,363 | $ 1,705 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 1,373 | $ 1,363 | $ 1,705 |
Other comprehensive income/(loss), net of tax | |||
Foreign currency translation | (283) | (766) | (547) |
Other comprehensive income/(loss), net of tax | (283) | (766) | (547) |
Comprehensive Income (Loss) | 1,090 | 597 | 1,158 |
Comprehensive income/(loss) attributable to noncontrolling interests | 0 | 1 | 0 |
Comprehensive income/(loss) attributable to Ford Motor Credit Company | $ 1,090 | $ 596 | $ 1,158 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 8,077 | $ 8,886 |
Marketable securities | 3,280 | 2,723 |
Finance receivables, net | 102,981 | 96,823 |
Net investment in operating leases | 27,209 | 25,079 |
Notes and accounts receivable from affiliated companies | 811 | 727 |
Derivative financial instruments | 909 | 924 |
Other assets | 2,822 | 2,286 |
Total assets | 146,089 | 137,448 |
Liabilities | ||
Customer deposits, dealer reserves, and other | 1,065 | 1,104 |
Affiliated companies | 336 | 313 |
Total accounts payable | 1,401 | 1,417 |
Debt | 126,492 | 119,601 |
Deferred income taxes | 3,230 | 2,808 |
Derivative financial instruments | 166 | 243 |
Other liabilities and deferred income | 1,997 | 1,665 |
Total liabilities | 133,286 | 125,734 |
Shareholder's interest | ||
Shareholder's interest | 5,227 | 5,227 |
Accumulated other comprehensive income | (890) | (607) |
Retained earnings | 8,466 | 7,093 |
Total shareholder's interest attributable to Ford Motor Credit Company | 12,803 | 11,713 |
Stockholders' interest attributable to noncontrolling interest | 0 | 1 |
Total shareholder’s interest | 12,803 | 11,714 |
Total liabilities and shareholder's interest | 146,089 | 137,448 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
ASSETS | ||
Cash and cash equivalents | 3,047 | 3,949 |
Finance receivables, net | 50,857 | 45,902 |
Net investment in operating leases | 11,761 | 13,309 |
Derivative financial instruments | 25 | 85 |
Liabilities | ||
Debt | 43,730 | 43,086 |
Derivative financial instruments | $ 5 | $ 19 |
Consolidated Statement of Share
Consolidated Statement of Shareholder's Interest - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stockholders' interest attributable to noncontrolling interest | $ 0 | $ 1 | $ 0 | $ 1 | $ 0 | ||
Total shareholder’s interest | 12,803 | 11,714 | 12,803 | 11,714 | 11,367 | ||
Shareholder's Interest [Roll Forward] | |||||||
Balance at beginning of period | $ 11,713 | $ 11,367 | 11,713 | 11,367 | 10,604 | ||
Net income | 333 | 358 | 352 | 306 | 1,373 | 1,363 | 1,705 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1,373 | 1,363 | 1,705 | ||||
Other comprehensive income/(loss), net of tax | (283) | (766) | (547) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (283) | (767) | (547) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | 1 | 0 | ||||
Distributions declared | (1) | (250) | (395) | ||||
Balance at end of period | 12,803 | 11,713 | 12,803 | 11,713 | 11,367 | ||
Shareholder's Interest [Member] | |||||||
Shareholder's Interest [Roll Forward] | |||||||
Balance at beginning of period | 5,227 | 5,227 | 5,227 | 5,227 | 5,217 | ||
Net income | 0 | 0 | 0 | ||||
Other comprehensive income/(loss), net of tax | 0 | 0 | 10 | ||||
Distributions declared | 0 | 0 | 0 | ||||
Balance at end of period | 5,227 | 5,227 | 5,227 | 5,227 | 5,227 | ||
Accumulated Other Comprehensive Income/(Loss) (Note11) [Member] | |||||||
Shareholder's Interest [Roll Forward] | |||||||
Balance at beginning of period | (607) | 160 | (607) | 160 | 717 | ||
Net income | 0 | 0 | 0 | ||||
Other comprehensive income/(loss), net of tax | (283) | (767) | (557) | ||||
Distributions declared | 0 | 0 | 0 | ||||
Balance at end of period | (890) | (607) | (890) | (607) | 160 | ||
Retained Earnings [Member] | |||||||
Shareholder's Interest [Roll Forward] | |||||||
Balance at beginning of period | $ 7,093 | $ 5,980 | 7,093 | 5,980 | 4,670 | ||
Net income | 1,373 | 1,363 | 1,705 | ||||
Other comprehensive income/(loss), net of tax | 0 | 0 | 0 | ||||
Distributions declared | 0 | (250) | (395) | ||||
Balance at end of period | $ 8,466 | $ 7,093 | 8,466 | 7,093 | 5,980 | ||
Noncontrolling Interest [Member] | |||||||
Shareholder's Interest [Roll Forward] | |||||||
Distributions declared | (1) | 0 | 0 | ||||
Parent [Member] | |||||||
Shareholder's Interest [Roll Forward] | |||||||
Distributions declared | $ 0 | $ (250) | $ (395) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | |||
Net income | $ 1,373 | $ 1,363 | $ 1,705 |
Adjustments to reconcile net income/(loss) to net cash provided by operations | |||
Provision for credit losses | 547 | 347 | 197 |
Depreciation and amortization | 5,121 | 4,465 | 3,955 |
Amortization of upfront interest supplements | (1,341) | (1,078) | (1,021) |
Net change in deferred income taxes | 340 | 1,042 | 230 |
Net change in other assets | (413) | 129 | 106 |
Net change in other liabilities | 462 | (348) | (294) |
All other operating activities | 142 | (210) | (63) |
Net cash provided by/(used in) operating activities | 6,231 | 5,710 | 4,815 |
Cash flows from investing activities | |||
Purchases of finance receivables (excluding wholesale and other) | (37,494) | (39,512) | (35,818) |
Collections of finance receivables (excluding wholesale and other) | 30,924 | 31,560 | 30,341 |
Purchases of operating lease vehicles | (14,441) | (14,355) | (12,694) |
Liquidations of operating lease vehicles | 7,920 | 6,570 | 6,152 |
Net change in wholesale receivables and other | (1,499) | (5,126) | (2,189) |
Purchases of marketable securities | (7,289) | (12,199) | (13,598) |
Proceeds from sales and maturities of marketable securities | 6,756 | 12,704 | 12,236 |
Settlements of derivatives | 215 | 210 | 34 |
All other investing activities | (164) | 20 | 33 |
Net cash provided by/(used in) investing activities | (15,072) | (20,128) | (15,503) |
Cash flows from financing activities | |||
Proceeds from issuances of long-term debt | 42,971 | 48,124 | 39,858 |
Principal payments on long-term debt | (38,000) | (31,474) | (27,801) |
Change in short-term debt, net | 3,403 | 1,229 | (3,757) |
Cash distributions to parent | 0 | (250) | (395) |
All other financing activities | (103) | (101) | (109) |
Net cash provided by/(used in) financing activities | 8,271 | 17,528 | 7,796 |
Effect of exchange rate changes on cash and cash equivalents | (239) | (403) | (353) |
Net increase/(decrease) in cash and cash equivalents | (809) | 2,707 | (3,245) |
Cash and cash equivalents at January 1 | 8,886 | 6,179 | 9,424 |
Net increase/(decrease) in cash and cash equivalents | (809) | 2,707 | (3,245) |
Cash and cash equivalents at December 31 | 8,077 | 8,886 | 6,179 |
Supplementary cash flow information for continuing operations | |||
Interest paid | 2,443 | 2,239 | 2,652 |
Income taxes paid | $ 107 | $ 74 | $ 314 |
Presentation
Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Presentation | PRESENTATION Principles of Consolidation The accompanying consolidated financial statements include Ford Motor Credit Company LLC, its controlled domestic and foreign subsidiaries and joint ventures, and consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Affiliates that we do not consolidate, but for which we have significant influence over operating and financial policies, are accounted for using the equity method. We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). We prepare our financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”). We reclassified certain prior period amounts in our consolidated financial statements to conform to current year presentation. Nature of Operations We offer a wide variety of automotive financing products to and through automotive dealers throughout the world. Our portfolio consists of finance receivables and net investment in operating leases. We also service the finance receivables and net investment in operating leases we originate and purchase, make loans to Ford affiliates, and provide insurance services related to our financing programs. See Notes 4 and 5 for additional 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. See Note 17 for key operating data on our business segments and for geographic information on our regions. The predominant share of our business consists of financing Ford vehicles and supporting Ford dealers. Any extended reduction or suspension of Ford’s production or sale of vehicles due to a decline in consumer demand, work stoppage, governmental action, negative publicity or other event, or significant changes to marketing programs sponsored by Ford, would have an adverse effect on our business. Certain subsidiaries are subject to regulatory capital requirements that may limit the ability of those subsidiaries to pay dividends. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES For each accounting topic that is addressed in its own note, the description of the accompanying accounting policy may be found in the related note. The remaining accounting policies are described below. Use of Estimates The preparation of financial statements requires the use of estimates, as determined by management. Because of the inherent uncertainty involved in making estimates, actual results reported in future periods might be based upon amounts that differ from those estimates. The accounting estimates that are most important to our business involve the allowance for credit losses and accumulated depreciation on vehicles subject to operating leases. NOTE 2. ACCOUNTING POLICIES (Continued) Foreign Currency We remeasure monetary assets and liabilities denominated in a currency that is different than a reporting entity’s functional currency from the transactional currency to the legal entity’s functional currency. The effect of this remeasurement process, and the results of our foreign currency hedging activities are reported in Other income, net . Generally, our foreign subsidiaries use the local currency as their functional currency. We translate the assets and liabilities of our foreign subsidiaries from their respective functional currencies to U.S. dollars using end-of-period exchange rates. Changes in the carrying value of these assets and liabilities attributable to fluctuations in exchange rates are recognized in Foreign currency translation , a component of Other comprehensive income/(Ioss), net of tax . Upon sale or upon complete or substantially complete liquidation of an investment in a foreign subsidiary, the amount of accumulated foreign currency translation related to the entity is reclassified to Net income and recognized as part of the gain or loss on the investment. Fair Value Measurements Cash equivalents, marketable securities, and derivative financial instruments are remeasured and presented on our financial statements on a recurring basis at fair value, while other assets and liabilities are measured at fair value on a nonrecurring basis. In measuring fair value, we use various valuation methods and prioritize the use of observable inputs. The use of observable and unobservable inputs and their significance in measuring fair value are reflected in our fair value hierarchy. • Level 1 – inputs include quoted prices for identical instruments and are the most observable • Level 2 – inputs include quoted prices for similar instruments and observable inputs such as interest rates, currency exchange rates, and yield curves • Level 3 – inputs include data not observable in the market and reflect management judgment about the assumptions market participants would use in pricing the instruments Transfers into and transfers out of the hierarchy levels are recognized as if they had taken place at the end of the reporting period. Adoption of New Accounting Standards We adopted the following standards during 2016 , none of which have a material impact to our financial statements or financial statement disclosures: Standard Effective Date 2015-16 Business Combinations - Simplifying the Accounting for Measurement-Period Adjustments January 1, 2016 2015-09 Insurance - Disclosures about Short-Duration Contracts January 1, 2016 2015-05 Internal-Use Software - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement January 1, 2016 2015-02 Consolidation - Amendments to the Consolidation Analysis January 1, 2016 2015-01 Extraordinary and Unusual Items - Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items January 1, 2016 2014-12 Stock Compensation - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period January 1, 2016 2014-15 Going Concern - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern December 31, 2016 NOTE 2. ACCOUNTING POLICIES (Continued) Accounting Standards Issued But Not Yet Adopted The following represent the standards that will, or are expected to, result in a significant change in practice and/or have a significant financial impact to Ford Credit. Accounting Standard Update (“ASU”) 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments. In June 2016, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard which replaces the current incurred loss impairment method with a method that reflects expected credit losses. The new standard is effective as of January 1, 2020, and early adoption is permitted as of January 1, 2019. We are assessing the potential impact to our financial statements and disclosures. ASU 2016-02, Leases . In February 2016, the FASB issued a new accounting standard which provides guidance on the recognition, measurement, presentation, and disclosure of leases. The new standard supersedes present U.S. GAAP guidance on leases and requires substantially all leases to be reported on the balance sheet as right-of-use assets and lease liabilities, as well as additional disclosures. The new standard is effective as of January 1, 2019, and early adoption is permitted. We are assessing the potential impact to our financial statements and disclosures. ASU 2014-09, Revenue - Revenue from Contracts with Customers. In May 2014, the FASB issued a new accounting standard that requires recognition of revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. The FASB has also issued several updates to ASU 2014-09. The new standard supersedes U.S. GAAP guidance on revenue recognition and requires the use of more estimates and judgments than the present standards. It also requires additional disclosures. We will adopt the new revenue guidance effective January 1, 2017, by recognizing the cumulative effect of initially applying the new standard as an increase of about $10 million to the opening balance of retained earnings. We expect this adjustment to have an immaterial impact to our net income on an ongoing basis. Adoption of the new standard will also result in changes in classification between Other revenue and Other income/(loss), net . |
Cash, Cash Equivalents, and Mar
Cash, Cash Equivalents, and Marketable Securities | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES | CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES Cash and Cash Equivalents. Included in Cash and cash equivalents are highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of change in value due to interest rate, quoted price, or penalty on withdrawal. A debt security is classified as a cash equivalent if it meets these criteria and if it has a remaining time to maturity of three months or less from the date of acquisition. Amounts on deposit and available upon demand, or negotiated to provide for daily liquidity without penalty, are classified as Cash and cash equivalents . Time deposits, certificates of deposit, and money market accounts that meet the above criteria are reported at par value on our balance sheet. Marketable Securities. Investments in securities with a maturity date greater than three months at the date of purchase and other securities for which there is more than an insignificant risk of change in value due to interest rate, quoted price, or penalty on withdrawal are classified as Marketable securities . We generally measure fair value using prices obtained from pricing services. Pricing methods and inputs to valuation models used by the pricing services depend on the security type (i.e., asset class). Where possible, fair values are generated using market inputs including quoted prices (the closing price in an exchange market), bid prices (the price at which a buyer stands ready to purchase), and other market information. For fixed income securities that are not actively traded, the pricing services use alternative methods to determine fair value for the securities, including quotes for similar fixed income securities, matrix pricing, discounted cash flow using benchmark curves, or other factors. In certain cases, when market data are not available, we may use broker quotes to determine fair value. An annual review is performed on the security prices received from our pricing services, which includes discussion and analysis of the inputs used by the pricing services to value our securities. We also compare the price of certain securities sold close to the quarter end to the price of the same security at the balance sheet date to ensure the reported fair value is reasonable. Realized and unrealized gains and losses and interest income on our marketable securities are recorded in Other income, net . Realized gains and losses are measured using the specific identification method. NOTE 3. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES (Continued) The following table categorizes the fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis on our balance sheet at December 31 (in millions): Fair Value Level 2015 2016 Cash and cash equivalents U.S. government 1 $ — $ 924 U.S. government and agencies 2 — — Non-U.S. government and agencies 2 266 142 Corporate debt 2 — — Total marketable securities classified as cash equivalents 266 1,066 Cash, time deposits and money market funds 8,620 7,011 Total cash and cash equivalents $ 8,886 $ 8,077 Marketable Securities U.S. government 1 $ 298 $ 1,634 U.S. government and agencies 2 1,169 505 Non-U.S. government and agencies 2 832 632 Corporate debt 2 384 475 Other marketable securities 2 40 34 Total marketable securities $ 2,723 $ 3,280 |
Finance Receivables
Finance Receivables | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Financing Receivables | FINANCE RECEIVABLES We segment finance receivables into “consumer” and “non-consumer” receivables. 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. Revenue from finance receivables is recognized using the interest method and includes the accretion of certain direct origination costs that are deferred and interest supplements received from Ford and affiliated companies. The unearned interest supplements on consumer finance receivables are included in Finance receivables, net on the balance sheet, and the earned interest supplements are included in Financing revenue on the income statement. We measure finance receivables at fair value for purposes of disclosure using internal valuation models. These models project future cash flows of financing contracts based on scheduled contract payments (including principal and interest). The projected cash flows are discounted to present value based on assumptions regarding credit losses, pre-payment speed, and applicable spreads to approximate current rates. Our assumptions regarding pre-payment speed and credit losses are based on historical performance. The fair value of finance receivables is categorized within Level 3 of the hierarchy. On a nonrecurring basis, we also measure at fair value retail contracts greater than 120 days past due or deemed to be uncollectible, and individual dealer loans probable of foreclosure. We use the fair value of collateral, adjusted for estimated costs to sell, to determine the fair value of our receivables. The collateral for a retail receivable is the vehicle financed, and for dealer loans is real estate or other property. The fair value of collateral for retail receivables is calculated by multiplying the outstanding receivable balances by the average recovery value percentage. The fair value of collateral for dealer loans is determined by reviewing various appraisals, which include total adjusted appraised value of land and improvements, alternate use appraised value, broker’s opinion of value, and purchase offers. Consumer Segment . Receivables in this portfolio segment include products offered to individuals and businesses that finance the acquisition of Ford and Lincoln vehicles from dealers for personal or commercial use. Retail financing includes retail installment contracts for new and used vehicles and direct financing leases with retail customers, government entities, daily rental companies, and fleet customers. Non-Consumer Segment. Receivables in this portfolio segment include products offered to automotive dealers and receivables purchased from Ford and its affiliates. The products include: • Dealer financing – includes wholesale loans to dealers to finance the purchase of vehicle inventory, also known as floorplan financing, as well as loans to dealers to finance working capital and improvements to dealership facilities, finance the purchase of dealership real estate, and finance other dealer programs. Wholesale financing is approximately 93% of our dealer financing. • Other financing – includes purchased receivables from Ford and its affiliates, primarily related to the sale of parts and accessories to dealers, receivables from Ford related loans, and certain used vehicles from daily rental fleet companies. These receivables are excluded from our credit quality reporting since the performance of this group of receivables is generally guaranteed by Ford. Notes and accounts receivable from affiliated companies are presented separately on the balance sheet. These receivables are based on intercompany relationships and the balances are settled regularly. We do not assess these receivables for potential credit losses, nor are they subjected to aging analysis, credit quality reviews, or other formal assessments. As a result, Notes and accounts receivable from affiliated companies are not subject to the following disclosures contained herein. NOTE 4. FINANCE RECEIVABLES (Continued) Finance Receivables, Net Finance receivables, net at December 31 were as follows (in millions): 2015 2016 Consumer Retail financing, gross $ 62,068 $ 68,121 Unearned interest supplements from Ford and affiliated companies (2,119 ) (2,783 ) Consumer finance receivables 59,949 65,338 Non-Consumer Dealer financing (a) 36,037 36,951 Other financing 1,210 1,176 Non-Consumer finance receivables (b) 37,247 38,127 Total recorded investment (c) $ 97,196 $ 103,465 Recorded investment in finance receivables $ 97,196 $ 103,465 Allowance for credit losses (373 ) (484 ) Finance receivables, net (a) $ 96,823 $ 102,981 Net finance receivables subject to fair value (d) $ 95,008 $ 100,857 Fair value 96,180 101,576 __________ (a) At December 31, 2015 and 2016 , includes $4.4 billion and $5.2 billion , respectively, of receivables generated by divisions and affiliates of Ford in connection with vehicle inventories released from Ford and in delivery to the destination dealers, and $508 million and $399 million , respectively, of dealer financing receivables with entities (primarily dealers) that are reported as consolidated subsidiaries of Ford. For the years ended December 31, 2014 , 2015 , and 2016 , the interest earned on receivables from consolidated subsidiaries of Ford to which we provide financing was $5 million , $6 million , and $9 million , respectively. Consolidated subsidiaries of Ford include dealerships that are partially owned by Ford as consolidated VIEs and also certain overseas affiliates. The associated vehicles that are being financed by us are reported as inventory on Ford’s balance sheet. (b) The amount of interest earned from Ford and affiliated companies associated with purchased receivables and receivables from gate released vehicles in transit to dealers for the years ended December 31, 2014 , 2015 , and 2016 , were $171 million , $183 million , and $167 million , respectively. (c) The amount of interest supplements from Ford and affiliated companies earned for the years ended December 31, 2014 , 2015 , and 2016 were $1.4 billion, $1.3 billion , and $1.6 billion , respectively, and the amount of interest supplements cash received related to consumer finance receivables totaled $1.3 billion , $1.5 billion , and $2.0 billion , respectively. (d) Included in Finance receivables, net at December 31, 2015 and 2016 , was $1.8 billion and $2.1 billion , respectively, of net investment in direct financing leases that are not subject to fair value disclosure requirements. Excluded from finance receivables at December 31, 2015 and 2016 was $209 million and $224 million , respectively, of accrued uncollected interest, which we report in Other assets on our balance sheet. Included in recorded investment in finance receivables at December 31, 2015 and 2016 were consumer receivables of $27.6 billion and $32.5 billion , respectively, and non-consumer receivables of $26.1 billion and $26.0 billion , respectively, that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. The receivables 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 Ford Credit’s other creditors. 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 (see Note 7 for additional information). NOTE 4. FINANCE RECEIVABLES (Continued) Contractual maturities of total finance receivables outstanding at December 31, 2016 reflect contractual repayments due from customers or borrowers and were as follows (in millions): Due in Year Ending December 31, 2017 2018 2019 Thereafter Total Consumer Retail financing, gross (a) $ 19,460 $ 17,550 $ 14,185 $ 16,926 $ 68,121 Non-Consumer Dealer financing 33,207 1,028 141 2,575 36,951 Other financing 1,176 — — — 1,176 Total finance receivables $ 53,843 $ 18,578 $ 14,326 $ 19,501 $ 106,248 __________ (a) Contractual maturities of retail financing, gross include $183 million of estimated unguaranteed residual values related to direct financing leases. Our finance receivables are generally pre-payable without penalty, so prepayments may cause actual maturities to differ from contractual maturities. The above table, therefore, is not to be regarded as a forecast of future cash collections. For wholesale receivables, which are included in dealer financing, maturities stated above are estimated based on historical trends, as maturities on outstanding amounts are scheduled upon the sale of the underlying vehicle by the dealer. Aging 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. The recorded investment of consumer receivables greater than 90 days past due and still accruing interest was $16 million and $21 million at December 31, 2015 and 2016 , respectively. The recorded investment of non-consumer receivables greater than 90 days past due and still accruing interest was $1 million and de minimus at December 31, 2015 and 2016 , respectively. The aging analysis of finance receivables balances at December 31 was as follows (in millions): 2015 2016 Consumer 31-60 days past due $ 708 $ 760 61-90 days past due 108 114 91-120 days past due 27 34 Greater than 120 days past due 38 39 Total past due 881 947 Current 59,068 64,391 Consumer finance receivables 59,949 65,338 Non-Consumer Total past due 116 107 Current 37,131 38,020 Non-Consumer finance receivables 37,247 38,127 Total recorded investment $ 97,196 $ 103,465 NOTE 4. FINANCE RECEIVABLES (Continued) Credit Quality Consumer Segment. When originating all classes of consumer receivables (i.e., retail and lease products), we use a proprietary scoring system that measures credit quality using information in the credit application, proposed contract terms, credit bureau data, and other information we obtain. After a proprietary risk score is generated, we decide whether to originate 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 creditworthiness focusing on payment, affordability, applicant credit history, and stability as key considerations. Subsequent to origination, we review the credit quality of retail financing based on customer payment activity. As each customer develops a payment history, we use an internally developed behavioral scoring model to assist in determining the best collection strategies, which allows us to focus collection activity on higher-risk accounts. These models are used to refine our risk-based staffing model to ensure collection resources are aligned with portfolio risk. Based on data from this scoring model, contracts are categorized by collection risk. Our collection models evaluate several factors, including origination characteristics, updated credit bureau data, and payment patterns. Credit quality ratings for consumer receivables are based on our aging analysis. Refer to the aging table above. 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 • 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 Non-Consumer Segment. We extend credit to dealers primarily in the form of lines of credit to purchase new Ford and Lincoln vehicles as well as used vehicles. Payment is required when the dealer has sold the vehicle. Each non-consumer lending request is evaluated by taking into consideration the borrower’s financial condition and the underlying collateral securing the loan. 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 • Group IV – poor financial metrics, including dealers classified as uncollectible We generally suspend credit lines and extend no further funding to dealers classified in Group IV. We regularly review our model to confirm the continued business significance and statistical predictability of the factors and update the model to incorporate new factors or other information that improves its statistical predictability. In addition, we regularly audit dealer inventory and dealer sales records to verify that the dealer is in possession of the financed vehicles and is promptly paying each receivable following the sale of the financed vehicle. The frequency of on-site vehicle inventory audits depends on factors such as the dealer’s risk rating and our security position. Under our policies, on-site vehicle inventory audits of low-risk dealers are conducted only as circumstances warrant. Audits of higher-risk dealers are conducted with increased frequency based on risk ratings and our security position. We perform a credit review of each dealer at least annually and adjust the dealer’s risk rating, if necessary. The credit quality of dealer financing receivables is evaluated based on our internal dealer risk rating analysis. A dealer has the same risk rating for its entire dealer financing regardless of the type of financing. NOTE 4. FINANCE RECEIVABLES (Continued) The credit quality analysis of our dealer financing receivables at December 31 was as follows (in millions): 2015 2016 Dealer financing Group I $ 27,054 $ 29,926 Group II 7,185 5,552 Group III 1,687 1,380 Group IV 111 93 Total recorded investment $ 36,037 $ 36,951 Impaired Receivables Impaired consumer receivables include accounts that have been rewritten or modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code that are considered to be Troubled Debt Restructurings (“TDRs”), as well as all accounts greater than 120 days past due. Impaired non-consumer receivables represent accounts with dealers that have weak or poor financial metrics or dealer financing that has been modified in TDRs. The recorded investment of consumer receivables that were impaired at December 31, 2015 and 2016 was $375 million , or 0.6% of consumer receivables, and $367 million , or 0.6% of consumer receivables, respectively. The recorded investment of non-consumer receivables that were impaired at December 31, 2015 and 2016 was $134 million , or 0.4% of non-consumer receivables, and $107 million , or 0.3% of non-consumer receivables, respectively. Impaired finance receivables are evaluated both collectively and specifically. See Note 6 for additional information related to the development of our allowance for credit losses. The accrual of revenue is discontinued at the time a receivable is determined to be uncollectible. 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. 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 our 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. Finance receivables involved in TDRs are specifically assessed for impairment. |
Net Investments in Operating Le
Net Investments in Operating Leases | 12 Months Ended |
Dec. 31, 2016 | |
Leases, Operating [Abstract] | |
NET INVESTMENT IN OPERATING LEASES | NET INVESTMENT IN OPERATING LEASES Net investment in operating leases consist primarily of lease contracts for vehicles with retail customers, daily rental companies, and fleet customers with terms of 60 months or less . Revenue from rental payments received on operating leases is recognized on a straight-line basis over the term of the lease. The accrual of revenue on operating leases is discontinued at the time an account is determined to be uncollectible. We receive interest supplements and residual support payments on certain leasing transactions under agreements with Ford. We recognize these upfront collections from Ford and other vehicle acquisition costs as part of Net investment in operating leases , which are amortized to Depreciation on vehicles subject to operating leases over the term of the lease contract. The amount of unearned interest supplements and residual support included in Net investment in operating leases at December 31, 2015 and 2016 was $2.4 billion and $2.5 billion , respectively. The amount of earned interest supplements and residual support costs included in Depreciation on vehicles subject to operating lease for the years ended December 31, 2014 , 2015 , and 2016 was $1.3 billion , $1.5 billion , and $1.9 billion , respectively. The amount of interest supplements and residual support cash received totaled $1.8 billion , $1.9 billion , and $2.0 billion for the years ended December 31, 2014 , 2015 , and 2016 , respectively. Depreciation expense on vehicles subject to operating leases is recognized on a straight-line basis in an amount necessary to reduce the leased vehicle value to its estimated residual value at the end of the lease term. Our policy is to promptly sell returned off-lease vehicles. We evaluate our depreciation for leased vehicles on a regular basis taking into consideration various assumptions, such as expected residual values at lease termination (including residual value support payments from Ford) and the estimated number of vehicles that will be returned to us. Adjustments to depreciation expense reflecting revised estimates of expected residual values at the end of the lease terms are recorded prospectively on a straight-line basis. Upon disposition of the vehicle, the difference between net book value and actual proceeds is recorded as an adjustment to Depreciation on vehicles subject to operating leases . We evaluate the carrying value of held-and-used long-lived asset groups (such as vehicles subject to operating leases) for potential impairment when we determine a triggering event has occurred. When a triggering event occurs, a test for recoverability is performed by comparing projected undiscounted future cash flows to the carrying value of the asset group. If the test for recoverability identifies a possible impairment, the asset group’s fair value is measured in accordance with the fair value measurement framework. An impairment charge is recognized for the amount by which the carrying value of the asset group exceeds its estimated fair value. For the periods presented, we have not recorded any impairment charges. Net investment in operating leases at December 31 was as follows (in millions): 2015 2016 Vehicles, at cost (a) $ 29,673 $ 32,823 Accumulated depreciation (4,545 ) (5,550 ) Net investment in operating leases before allowance for credit losses 25,128 27,273 Allowance for credit losses (49 ) (64 ) Net investment in operating leases $ 25,079 $ 27,209 __________ (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. At December 31, 2015 and 2016 , net investment in operating leases before allowance for credit losses includes $13.3 billion and $11.8 billion, respectively, of net investment in operating leases that have been included in securitization transactions but continue to be reported in our consolidated financial statements. These net investments 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 our 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 (see Note 7 for additional information). NOTE 5. NET INVESTMENT IN OPERATING LEASES (Continued) We have entered into a sale-leaseback agreement with Ford primarily for vehicles that Ford leases to employees of Ford and its subsidiaries. The investment in these vehicles is included in Net investment in operating leases and Ford provides a limited guarantee of the residual value of these vehicles. The amount of employee and company vehicles at December 31, 2015 and 2016 was $652 million and $907 million , respectively. For the years ended December 31, 2014 , 2015 , and 2016 , the operating lease revenue related to these vehicles was $259 million , $284 million , and $302 million, respectively. The amounts contractually due for minimum rentals on operating leases at December 31, 2016 were as follows (in millions): 2017 2018 2019 2020 2021 Minimum rentals on operating leases $ 4,349 $ 2,750 $ 949 $ 66 $ 5 |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |
ALLOWANCE FOR CREDIT LOSSES | ALLOWANCE FOR CREDIT LOSSES The allowance for credit losses represents our estimate of the probable credit loss inherent in finance receivables and operating leases as of the balance sheet date. The adequacy of the allowance for credit losses is assessed quarterly and the assumptions and models used in establishing the allowance are evaluated regularly. Because credit losses may vary substantially over time, estimating credit losses requires a number of assumptions about matters that are uncertain. The majority of credit losses are attributable to consumer receivables. Additions to the allowance for credit losses are made by recording charges to the Provision for credit losses on the income statement. The uncollectible portion of finance receivables and operating leases are 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, borrower, or lessee, the value of the collateral, recourse to guarantors, and other factors. In the event we repossess the collateral, the receivable is charged off and we record the collateral at its estimated fair value less costs to sell and report it in Other assets on the balance sheet. Charge-offs on finance receivables and operating leases include uncollected amounts related to principal, interest, rental payments, late fees, and other allowable charges. Recoveries on finance receivables and operating leases previously charged off as uncollectible are credited to the allowance for credit losses. Consumer Segment and Operating Leases We estimate the allowance for credit losses on consumer receivables and on operating leases using a combination of measurement models and management judgment. The models consider factors such as historical trends in credit losses and recoveries (including key metrics such as delinquencies, repossessions, and bankruptcies), the composition of the present portfolio (including vehicle brand, term, risk evaluation, and new/used vehicles), trends in historical used vehicle values, and economic conditions. Estimates from these models rely on historical information and may not fully reflect losses inherent in the present portfolio. Therefore, we may adjust the estimate to reflect management judgment regarding observable changes in recent economic trends and conditions, portfolio composition, and other relevant factors. We make projections of two key assumptions to assist in estimating the consumer allowance for credit losses: • Frequency – number of finance receivables and operating lease contracts that are expected to default over the loss emergence period, measured as repossessions; and • Loss severity – 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. NOTE 6. ALLOWANCE FOR CREDIT LOSSES (Continued) Collective Allowance for Credit Losses. The collective allowance is evaluated primarily using a collective loss-to-receivables (“LTR”) model that, based on historical experience, indicates credit losses have been incurred in the portfolio even though the particular accounts that are uncollectible cannot be specifically identified. The LTR model is based on the most recent years of history. Each LTR is calculated by dividing credit losses by average finance receivables or average operating leases, excluding unearned interest supplements and allowance for credit losses. An average LTR is calculated for each product and multiplied by the end-of-period balances for that given product. Our largest markets also use a loss projection model to estimate losses inherent in the portfolio. The loss projection model applies recent monthly performance metrics, stratified by contract type (retail or lease), contract term (e.g., 60-month), and risk rating to our active portfolio to estimate the losses that have been incurred. The loss emergence period (“LEP”) is an assumption within our models and represents the average amount of time between when a loss event first occurs to when it is charged off. This time period starts when the consumer begins to experience financial difficulty. It is evidenced, typically through delinquency, before eventually resulting in a charge-off. The LEP is a multiplier in the calculation of the collective consumer allowance for credit losses. For accounts greater than 120 days past due , the uncollectible portion is charged off such that the remaining recorded investment is equal to the estimated fair value of the collateral less costs to sell. Specific Allowance for Impaired Receivables. Consumer receivables involved in TDRs are specifically assessed for impairment. A specific allowance is estimated based on the present value of the expected future cash flows of the receivable discounted at the contract’s original effective interest rate or the fair value of any collateral adjusted for estimated costs to sell. After establishing the collective and specific allowance for credit losses, if management believes the allowance does not reflect all losses inherent in the portfolio due to changes in recent economic trends and conditions, or other relevant factors, an adjustment is made based on management judgment. Non-Consumer Segment We estimate the allowance for credit losses for non-consumer receivables based on historical LTR ratios, expected future cash flows, and the fair value of collateral. Collective Allowance for Credit Losses. We estimate an allowance for non-consumer receivables that are not specifically identified as impaired using a LTR model for each financing product based on historical experience. This LTR is an average of the most recent historical experience and is calculated consistent with the consumer receivables LTR approach. All accounts that are specifically identified as impaired are excluded from the calculation of the non-specific or collective allowance. Specific Allowance for Impaired Receivables. Dealer financing is evaluated by segmenting individual loans by the risk characteristics of the loan (such as the amount of the loan, the nature of the collateral, and the financial status of the debtor). The loans are analyzed to determine whether individual loans are impaired, and a specific allowance is estimated based on the present value of the expected future cash flows of the receivable discounted at the loan’s original effective interest rate or the fair value of the collateral adjusted for estimated costs to sell. After establishing the collective and specific allowance for credit losses, if management believes the allowance does not reflect all losses inherent in the portfolio due to changes in recent economic trends and conditions, or other relevant factors, an adjustment is made based on management judgment. NOTE 6. ALLOWANCE FOR CREDIT LOSSES (Continued) An analysis of the allowance for credit losses related to finance receivables and net investment in operating leases for the years ended December 31 was as follows (in millions): 2015 Finance Receivables Net Investment in Operating Leases Total Allowance Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 305 $ 16 $ 321 $ 38 $ 359 Charge-offs (333 ) (3 ) (336 ) (123 ) (459 ) Recoveries 120 6 126 62 188 Provision for credit losses 276 (2 ) 274 73 347 Other (a) (11 ) (1 ) (12 ) (1 ) (13 ) Ending balance $ 357 $ 16 $ 373 $ 49 $ 422 Analysis of ending balance of allowance for credit losses Collective impairment allowance $ 338 $ 12 $ 350 $ 49 $ 399 Specific impairment allowance 19 4 23 — 23 Ending balance 357 16 373 49 $ 422 Analysis of ending balance of finance receivables and net investment in operating leases Collectively evaluated for impairment 59,574 37,113 96,687 25,128 Specifically evaluated for impairment 375 134 509 — Recorded investment 59,949 37,247 97,196 25,128 Ending balance, net of allowance for credit losses $ 59,592 $ 37,231 $ 96,823 $ 25,079 __________ (a) Primarily represents amounts related to translation adjustments. 2016 Finance Receivables Net Investment in Operating Leases Total Allowance Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 357 $ 16 $ 373 $ 49 $ 422 Charge-offs (435 ) (8 ) (443 ) (175 ) (618 ) Recoveries 116 6 122 81 203 Provision for credit losses 436 2 438 109 547 Other (a) (5 ) (1 ) (6 ) — (6 ) Ending balance $ 469 $ 15 $ 484 $ 64 $ 548 Analysis of ending balance of allowance for credit losses Collective impairment allowance $ 450 $ 13 $ 463 $ 64 $ 527 Specific impairment allowance 19 2 21 — 21 Ending balance 469 15 484 64 $ 548 Analysis of ending balance of finance receivables and net investment in operating leases Collectively evaluated for impairment 64,971 38,020 102,991 27,273 Specifically evaluated for impairment 367 107 474 — Recorded investment 65,338 38,127 103,465 27,273 Ending balance, net of allowance for credit losses $ 64,869 $ 38,112 $ 102,981 $ 27,209 __________ (a) Primarily represents amounts related to translation adjustments. |
Transfers of Receivables
Transfers of Receivables | 12 Months Ended |
Dec. 31, 2016 | |
Transfers and Servicing [Abstract] | |
TRANSFERS OF RECEIVABLES | TRANSFERS OF RECEIVABLES 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 in 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 including the United States, Canada, several European countries, Mexico, and China. We use special purpose entities (“SPEs”) that are considered VIEs for most of our on-balance sheet securitizations. 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 may purchase subordinated notes of the VIEs in addition to the investment we make as the residual interest holder of the transaction. 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. Finance Receivables Classification Finance receivables are accounted for as held for investment (“HFI”) if management has the intent and ability to hold the receivables for the foreseeable future or until maturity or payoff. The determination of intent and ability to hold for the foreseeable future is highly judgmental and requires management to make good faith estimates based on all information available at the time of origination or purchase. If management does not have the intent and ability to hold the receivables, then the receivables are classified as held for sale (“HFS”). Each quarter, we make a determination of whether it is probable that finance receivables originated or purchased during the quarter will be held for the foreseeable future based on historical receivables sale experience, internal forecasts and budgets, as well as other relevant, reliable information available through the date of evaluation. For purposes of this determination, we define probable to mean at least 70% likely and, consistent with our budgeting and forecasting period, we define foreseeable future to mean twelve months. We classify receivables on a receivable-by-receivable basis. Specific receivables included in off-balance sheet securitizations or whole-loan sale transactions are usually not identified until the month in which the sale occurs. Held for Investment Finance receivables originated or purchased during the quarter for which we determine that it is probable we will hold for the following twelve months are classified as HFI and 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. Cash flows resulting from the origination or purchase of and from the sale of receivables that were originally classified as HFI are recorded as an investing activity since GAAP requires the statement of cash flows presentation to be based on the original classification of the receivables. Held for Sale Finance receivables originated or purchased during the quarter for which we determine that it is not probable we will hold for the following twelve months are classified as HFS and carried at the lower of cost or fair value. Cash flows resulting from the origination or purchase and sale of these receivables are recorded as an operating activity. Once a decision has been made to sell receivables that were originally classified as HFI, the receivables are reclassified as HFS and carried at the lower of cost or fair value. The valuation adjustment, if applicable, is recorded in Other income, net to recognize the receivables at the lower of cost or fair value. Once receivables that were classified as HFS are sold, the receivables are removed from the balance sheet and the fair value adjustment is incorporated into the book value of receivables for purposes of determining the gain or loss on sale. NOTE 7. TRANSFERS OF RECEIVABLES (Continued) On-Balance Sheet Securitization Transactions We engage in securitization transactions to fund operations and to maintain liquidity. Our securitization transactions are recorded as asset-backed debt and the associated assets are not derecognized and continue to be included in our financial statements. 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. 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. The debt is the obligation of our consolidated securitization entities and not the obligation of Ford Credit or our other subsidiaries. Most of these securitization transactions utilize VIEs. See Note 8 for additional information concerning VIEs. The following tables show the assets and debt related to our securitization transactions that were included in our financial statements at December 31 (in billions): 2015 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt (c) Before Allowance Allowance for After Allowance VIE (b) Retail financing $ 1.4 $ 20.9 $ 0.1 $ 20.8 $ 18.9 Wholesale financing 2.0 25.1 — 25.1 15.3 Finance receivables 3.4 46.0 0.1 45.9 34.2 Net investment in operating leases 0.5 13.3 — 13.3 8.9 Total VIE $ 3.9 $ 59.3 $ 0.1 $ 59.2 $ 43.1 Non-VIE Retail financing $ 0.4 $ 6.7 $ — $ 6.7 $ 6.1 Wholesale financing — 1.0 — 1.0 0.8 Finance receivables $ 0.4 $ 7.7 $ — $ 7.7 $ 6.9 Net investment in operating leases — — — — — Total Non-VIE $ 0.4 $ 7.7 $ — $ 7.7 $ 6.9 Total securitization transactions Retail financing $ 1.8 $ 27.6 $ 0.1 $ 27.5 $ 25.0 Wholesale financing 2.0 26.1 — 26.1 16.1 Finance receivables $ 3.8 $ 53.7 $ 0.1 $ 53.6 $ 41.1 Net investment in operating leases 0.5 13.3 — 13.3 8.9 Total securitization transactions $ 4.3 $ 67.0 $ 0.1 $ 66.9 $ 50.0 __________ (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 7. TRANSFERS OF RECEIVABLES (Continued) 2016 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 $ 1.5 $ 25.9 $ 0.2 $ 25.7 $ 22.7 Wholesale financing 1.0 25.2 — 25.2 13.6 Finance receivables 2.5 51.1 0.2 50.9 36.3 Net investment in operating leases 0.5 11.8 — 11.8 7.4 Total VIE $ 3.0 $ 62.9 $ 0.2 $ 62.7 $ 43.7 Non-VIE Retail financing $ 0.4 $ 6.6 $ — $ 6.6 $ 6.1 Wholesale financing — 0.8 — 0.8 0.6 Finance receivables 0.4 7.4 — 7.4 6.7 Net investment in operating leases — — — — — Total Non-VIE $ 0.4 $ 7.4 $ — $ 7.4 $ 6.7 Total securitization transactions Retail financing $ 1.9 $ 32.5 $ 0.2 $ 32.3 $ 28.8 Wholesale financing 1.0 26.0 — 26.0 14.2 Finance receivables 2.9 58.5 0.2 58.3 43.0 Net investment in operating leases 0.5 11.8 — 11.8 7.4 Total securitization transactions $ 3.4 $ 70.3 $ 0.2 $ 70.1 $ 50.4 __________ (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. Interest expense related to securitization debt for the years ended December 31 was as follows (in millions): 2014 2015 2016 VIE $ 504 $ 541 $ 671 Non-VIE 91 89 102 Total securitization transactions $ 595 $ 630 $ 773 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 and, in certain instances, currency exposure resulting from assets in one currency and debt in another currency. 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 9 for additional information regarding the accounting for derivatives. Our exposures based on the fair value of derivative instruments with external counterparties related to securitization programs at December 31 were as follows (in millions): 2015 2016 Derivative Derivative Derivative Asset Derivative Liability Derivatives of the VIEs $ 85 $ 19 $ 25 $ 5 Derivatives related to the VIEs 19 29 11 21 Other securitization related derivatives 12 — 21 1 Total exposures related to securitization $ 116 $ 48 $ 57 $ 27 NOTE 7. TRANSFERS OF RECEIVABLES (Continued) Derivative expense/(income) related to our securitization transactions for the years ended December 31 was as follows (in millions): 2014 2015 2016 Derivatives of the VIEs $ (9 ) $ (32 ) $ 23 Derivatives related to the VIEs (16 ) 12 (4 ) Other securitization related derivatives 21 18 10 Total derivative expense/(income) related to securitization $ (4 ) $ (2 ) $ 29 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. Nearly all of our VIEs are special purpose entities used for our securitizations. We have the power to direct the activities of our special purpose entities 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. Assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims against our general assets. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIEs. VIEs of Which We Are the Primary Beneficiary We use special purpose entities to issue asset-backed securities in transactions to public and private investors. We have deemed most of these special purpose entities to be VIEs. The asset-backed securities are backed by finance receivables and interests in net investments in operating leases. The assets continue to be consolidated by us. We retain interests in our securitization VIEs, including subordinated securities issued by the VIEs, rights to cash held for the benefit of the securitization investors, and rights 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. The transactions create and pass along risks to the variable interest holders, depending on the assets securing the debt and the specific terms of the transactions. We aggregate and analyze the asset-backed securitization transactions based on the risk profile of the product and the type of funding structure, including: • Retail financing – consumer credit risk and pre-payment risk; • Wholesale financing – dealer credit risk and Ford risk, as the receivables owned by the VIEs primarily arise from the financing provided by us to Ford-franchised dealers; therefore, the collections depend upon the sale of Ford vehicles; and • Net investment in operating leases – vehicle residual value risk, consumer credit risk, and pre-payment risk. As residual interest holder, we are exposed to the underlying residual and credit risk of the collateral and are exposed to interest rate risk in some transactions. The amount of risk absorbed by our residual interests generally is represented by and limited to the amount of overcollateralization of the assets securing the debt and any cash reserves. NOTE 8. VARIABLE INTEREST ENTITIES (Continued) 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. VIEs that are exposed to interest rate or currency risk may reduce their risks by entering into derivative transactions. In certain instances, we have entered into derivative transactions with the counterparty to protect the counterparty from risks absorbed through its derivative transactions with the VIEs. Although not contractually required, we regularly support our wholesale securitization programs by repurchasing receivables of a dealer from a VIE when the dealer’s performance is at risk, which transfers the corresponding risk of loss from the VIE to us. In order to continue to fund the wholesale receivables, we also may contribute additional cash or wholesale receivables if the collateral falls below the required levels. The balances of cash related to these contributions were $0 at December 31, 2015 and 2016 , and ranged from $0 to $72 million during 2015 and $0 to $12 million during 2016 . See Note 7 for additional information on the financial position and financial performance of our VIEs and Note 9 for additional information regarding derivatives. VIEs of Which We Are Not the Primary Beneficiary We have an investment in Forso Nordic AB, a joint venture determined to be a VIE of which we are not the primary beneficiary. The joint venture provides retail and dealer financing in its local markets and is financed by external debt and additional subordinated debt provided by the joint venture partner. The operating agreement indicates that the power to direct economically significant activities is shared with the joint venture partner, and the obligation to absorb losses or right to receive benefits resides primarily with the joint venture partner. Our investment in the joint venture is accounted for as an equity method investment and is included in Other assets. Our maximum exposure to any potential losses associated with this VIE is limited to our equity investment and amounted to $66 million and $68 million at December 31, 2015 and 2016 , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2016 | |
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: • Interest rate contracts, including swaps, that are used to manage the effects of interest rate fluctuations; • Foreign currency exchange contracts, including forwards, that are used to manage foreign exchange exposure; and • Cross-currency interest rate swap contracts that are used to manage foreign currency and interest rate exposures on foreign-denominated debt. We review our hedging program, derivative positions, and overall risk management strategy on a regular basis. Derivative Financial Instruments and Hedge Accounting. Derivative assets and derivative liabilities are recorded in Derivative financial instruments on our balance sheet at fair value and presented on a gross basis. Our derivatives are over-the-counter customized derivative transactions and are not exchange traded. We estimate the fair value of these instruments using industry-standard valuation models such as a discounted cash flow. These models project future cash flows and discount the future amounts to a present value using market-based expectations for interest rates, foreign exchange rates, and the contractual terms of the derivative instruments. The discount rate used is the relevant interbank deposit rate (e.g., LIBOR) plus an adjustment for nonperformance risk. The adjustment reflects the full credit default swap (“CDS”) spread applied to a net exposure, by counterparty, considering the master netting agreements and any posted collateral. We use our counterparty’s CDS spread when we are in a net asset position and our own CDS spread when we are in a net liability position. 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. Fair Value Hedges . We use derivatives to reduce the risk of changes in the fair value of debt. We have designated certain receive-fixed, pay-float interest rate swaps as fair value hedges of fixed-rate debt. The risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark interest rate. If the hedge relationship is deemed to be highly effective, we record the changes in the fair value of the hedged debt related to the risk being hedged in Debt with the offset in Other income, net . The change in fair value of the related derivative (excluding accrued interest) also is recorded in Other income, net . Net interest settlements and accruals on fair value hedges are excluded from the assessment of hedge effectiveness and are reported in Interest expense . The cash flows associated with fair value hedges are reported in Net cash provided by/(used in) operating activities in our statement of cash flows. When a fair value hedge is de-designated, or when the derivative is terminated before maturity, the fair value adjustment to the hedged debt continues to be reported as part of the carrying value of the debt and is amortized over its remaining life. Derivatives Not Designated as Hedging Instruments. We report net interest settlements and accruals and changes in the fair value of interest rate swaps not designated as hedging instruments in Other income, net . Foreign currency revaluation on accrued interest along with gains and losses on foreign exchange contracts and cross currency interest rate swaps are reported in Other income, net. Cash flows associated with non-designated or de-designated derivatives are reported in Net cash provided by/(used in) investing activities in our statement of cash flows. NOTE 9. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued) Income Effect of Derivative Financial Instruments The gains/(losses), by hedge designation, recorded in income for the years ended December 31 were as follows (in millions): 2014 2015 2016 Fair value hedges Interest rate contracts Net interest settlements and accruals excluded from the assessment of hedge effectiveness $ 304 $ 370 $ 367 Ineffectiveness (a) 20 3 4 Derivatives not designated as hedging instruments Interest rate contracts (41 ) (58 ) (9 ) Foreign currency exchange contracts (b) 68 66 179 Cross-currency interest rate swap contracts 161 100 398 Total $ 512 $ 481 $ 939 __________ (a) For 2014 , 2015 , and 2016 , hedge ineffectiveness reflects the net change in fair value on derivatives of $407 million gain, $72 million gain, and $120 million loss, respectively, and change in value on hedged debt attributable to the change in benchmark interest rates of $387 million loss, $69 million loss, and $124 million gain, respectively. (b) The gains related to forward contracts between Ford Credit and an affiliated company were $68 million , $66 million , and $210 million for the years ended December 31, 2014 , 2015 , and 2016 , respectively. Balance Sheet Effect of Derivative Financial Instruments Derivative assets and liabilities are recorded on the balance sheet 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 exposure in the event of default or breach of the counterparty agreement. The fair value of our derivative instruments and the associated notional amounts, presented gross, at December 31 were as follows (in millions): 2015 2016 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Fair value hedges Interest rate contracts $ 28,964 $ 670 $ 16 $ 33,175 $ 487 $ 80 Derivatives not designated as hedging instruments Interest rate contracts 62,638 159 112 61,689 156 74 Foreign currency exchange contracts (a) 1,713 22 4 1,791 24 4 Cross-currency interest rate swap contracts 3,137 73 111 3,201 242 8 Total derivative financial instruments, gross (b) (c) $ 96,452 924 243 $ 99,856 909 166 __________ (a) Includes forward contracts between Ford Credit and an affiliated company. (b) As of December 31, 2015 and 2016 , the net obligation to return cash collateral was $0 and $3 million , respectively. (c) At December 31, 2015 and 2016 , the fair value of derivative assets and liabilities available for counterparty netting was $167 million and $113 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy. |
Other Assets and Other Liabilit
Other Assets and Other Liabilities and Deferred Income | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets and Other Liabilities and Deferred Income [Abstract] | |
OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED INCOME | OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED INCOME Other assets and other liabilities and deferred income 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 at December 31 were as follows (in millions): 2015 2016 Accrued interest and other non-finance receivables $ 763 $ 889 Collateral held for resale, at net realizable value 498 621 Prepaid reinsurance premiums and other reinsurance recoverables 472 546 Deferred charges – income taxes 135 205 Property and equipment, net of accumulated depreciation (a) 142 156 Investment in non-consolidated affiliates 133 153 Deferred charges 63 122 Restricted cash (b) 56 108 Other 24 22 Total other assets $ 2,286 $ 2,822 __________ (a) Accumulated depreciation was $335 million and $347 million at December 31, 2015 and 2016 , respectively. (b) 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. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions. Other liabilities and deferred income at December 31 were as follows (in millions): 2015 2016 Interest payable $ 553 $ 661 Unearned insurance premiums 484 556 Tax related payables to Ford and affiliated companies 105 96 Unrecognized tax benefits 75 65 Other 448 619 Total other liabilities and deferred income $ 1,665 $ 1,997 |
Debt and Commitments
Debt and Commitments | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | DEBT AND COMMITMENTS We have a commercial paper program with qualified institutional investors. We also obtain other short-term funding from the issuance of demand notes to retail investors through our floating rate demand notes program. We have certain securitization programs that issue short-term asset-backed debt securities that are sold to institutional investors. Bank borrowings by several of our international affiliates in the ordinary course of business are an additional source of short-term funding. We obtain long-term debt funding through the issuance of a variety of unsecured and asset-backed debt securities in the U.S. and international capital markets. 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. Debt is recorded on our balance sheet at par value adjusted for unamortized discount or premium, unamortized issuance costs, and adjustments related to designated fair value hedges (see Note 9 for additional information). Debt due within one year at issuance is classified as short-term. Debt due after one year at issuance is classified as long-term. Discounts, premiums, and costs directly related to the issuance of debt are capitalized and amortized over the life of the debt or to the put date and are recorded in Interest expense using the effective interest method. Gains and losses on the extinguishment of debt are recorded in Other income, net. Debt outstanding and interest rates at December 31 were as follows (in millions): Interest Rates Debt Average Contractual Average Effective 2015 2016 2015 2016 2015 2016 Short-term debt Unsecured debt Floating rate demand notes $ 5,926 $ 5,986 Commercial paper 1,722 4,507 Other short-term debt 2,708 3,803 Asset-backed debt 1,855 1,063 Total short-term debt 12,211 15,359 1.6 % 2.3 % 1.6 % 2.3 % Long-term debt Unsecured debt Notes payable within one year 10,254 12,369 Notes payable after one year 48,672 49,308 Asset-backed debt Notes payable within one year 18,855 19,286 Notes payable after one year 29,390 30,112 Unamortized discount (25 ) (8 ) Unamortized issuance costs (214 ) (212 ) Fair value adjustments 458 278 Total long-term debt 107,390 111,133 2.3 % 2.4 % 2.4 % 2.5 % Total debt $ 119,601 $ 126,492 2.2 % 2.4 % 2.3 % 2.4 % Fair value of debt $ 120,546 $ 128,001 Interest rate characteristics of debt payable after one year Fixed interest rate 54,396 56,684 Variable interest rate (generally based on LIBOR or other short-term rates) 23,666 22,736 Total payable after one year $ 78,062 $ 79,420 NOTE 11. DEBT AND COMMITMENTS (Continued) With the exception of commercial paper, which is issued at a discount, the average contractual rates reflect the stated contractual interest rate. Average effective rates reflect the average contractual interest rate plus amortization of discounts, premiums, and issuance fees. Fair value adjustments relate to designated fair value hedges of unsecured debt. We measure debt at fair value for purposes of disclosure using quoted prices for our own debt with approximately the same remaining maturities. Where quoted prices are not available, we estimate fair value using discounted cash flows and market-based expectations for interest rates, credit risk, and the contractual terms of the debt instruments. For certain short-term debt with an original maturity date of one year or less, we assume that book value is a reasonable approximation of the debt’s fair value. The fair value of debt is categorized within Level 2 of the hierarchy. The fair value of debt reflects interest accrued but not yet paid of $550 million and $658 million at December 31, 2015 and 2016 , respectively. Accrued interest is reported in Other liabilities and deferred income for outside debt and Accounts payable - affiliated companies for debt with affiliated companies. The fair value of debt includes $10.4 billion and $14.3 billion of short-term debt at December 31, 2015 and 2016 , respectively, carried at cost, which approximates fair value. Debt with affiliated companies included in the above table at December 31 was as follows (in millions): 2015 2016 Other short-term debt $ 88 $ 29 Notes payable within one year 13 — Notes payable after one year 83 — Total debt with affiliated companies $ 184 $ 29 Interest expense on debt with affiliated companies is reported in Interest expense and was $25 million , $19 million , and $4 million for the years ended December 31, 2014 , 2015 , and 2016 , respectively. Maturities Debt maturities at December 31, 2016 were as follows (in millions): 2017 (a) 2018 2019 2020 2021 Thereafter (b) Total Unsecured debt $ 26,665 $ 12,374 $ 11,135 $ 6,843 $ 9,125 $ 9,831 $ 75,973 Asset-backed debt 20,349 12,129 9,725 4,909 2,299 1,050 50,461 Total 47,014 24,503 20,860 11,752 11,424 10,881 126,434 Unamortized discount (8 ) Unamortized issuance costs (212 ) Fair value adjustments 278 Total debt $ 126,492 __________ (a) Includes $15,359 million for short-term and $31,655 million for long-term debt. (b) Includes $9,828 million of unsecured debt maturing between 2022 and 2026 with the remaining balance maturing by 2048. 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 receivables or to purchase or make advances under asset-backed securities backed by retail or wholesale finance receivables or operating leases for proceeds of up to $34.6 billion ( $18.2 billion of retail financing, $6.1 billion of wholesale financing, and $10.3 billion of operating leases) at December 31, 2016 . These committed liquidity facilities have varying maturity dates, with $17.5 billion having maturities within the next twelve months and the remaining balance having maturities through 2018. We plan capacity renewals to protect our global funding needs, optimize capacity utilization, and maintain sufficient liquidity. NOTE 11. DEBT AND COMMITMENTS (Continued) 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 December 31, 2016 , $19.9 billion of these commitments were in use. 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. FCE Bank plc (“FCE”) has pre-positioned retail receivables with the Bank of England which supports access to the Discount Window Facility. Pre-positioned assets are neither pledged to nor held as collateral by the Bank of England unless the Discount Window Facility is accessed. Unsecured Credit Facilities At December 31, 2016 , we and our majority-owned subsidiaries had $5.5 billion of contractually committed unsecured credit facilities with financial institutions, including the FCE Credit Agreement (as defined below) and the allocation under Ford’s corporate credit facility. At December 31, 2016 , $4.8 billion was available for use. FCE’s £ 990 million (equivalent to $1.2 billion at December 31, 2016 ) syndicated credit facility (the “FCE Credit Agreement”) matures in 2019. At December 31, 2016 , £ 690 million (equivalent to $ 850 million ) was available for use. The FCE Credit Agreement contains certain covenants, including an obligation for FCE to maintain its ratio of regulatory capital to risk-weighted assets at no less than the applicable regulatory minimum, and for the support agreement between FCE and Ford Credit to remain in full force and effect (and enforced by FCE to ensure that its net worth is maintained at no less than $500 million). Lenders under the Ford corporate credit facility have commitments totaling $ 13.4 billion , with 75% of the commitments maturing on April 30, 2021 and 25% of the commitments maturing on April 30, 2019. Ford has allocated $3.0 billion of commitments, including commitments under a Chinese renminbi sub-facility, to us on an irrevocable and exclusive basis to support our growth and liquidity. At December 31, 2016 , all $3.0 billion was available for use. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Ford Motor Credit Company LLC is a disregarded entity for United States income tax purposes and Ford’s consolidated United States federal and state income tax returns include certain of our domestic subsidiaries. In accordance with our intercompany tax sharing agreement with Ford, United States income tax liabilities or credits are allocated to us generally on a separate return basis calculated as if we were taxable as a corporation. The Provision for income taxes for the years ended December 31 was estimated as follows (in millions): 2014 2015 2016 Current Federal $ (198 ) $ (454 ) $ (41 ) Non-U.S. 154 161 222 State and local (38 ) (26 ) (15 ) Total current (82 ) (319 ) 166 Deferred Federal 193 893 284 Non-U.S. (6 ) 93 1 State and local 44 56 55 Total deferred 231 1,042 340 Provision for income taxes $ 149 $ 723 $ 506 A reconciliation of the Provision for income taxes with the United States statutory tax rate as a percentage of Income before income taxes for the years ended December 31 is as follows: 2014 2015 2016 U.S. statutory tax rate 35.0 % 35.0 % 35.0 % Effect of (in percentage points): Non-U.S. tax rates under U.S. rate (3.0 ) (3.0 ) (3.8 ) State and local income taxes (0.2 ) 1.0 1.3 U.S. tax on non-U.S. earnings (a) (21.4 ) 0.2 (4.9 ) Other (2.4 ) (0.2 ) (0.7 ) Valuation allowance — 1.7 — Effective tax rate 8.0 % 34.7 % 26.9 % ________ (a) During 2014, we changed our method for measuring currency gains and losses in computing the earnings of our European operations under U.S. tax law. Implementation of the new method resulted in a reduction of U.S. tax on non-U.S. earnings of approximately $360 million due to realization of additional foreign tax credits. At December 31, 2016 , $3.2 billion of non-U.S. earnings are considered indefinitely reinvested in operations outside the United States, for which deferred taxes have not been provided. Repatriation of these earnings in their entirety would result in a residual U.S. tax liability of about $700 million . Our measure of the amount of non-U.S. earnings considered indefinitely reinvested in operations outside the United States reflects accumulated earnings determined under U.S. tax law. NOTE 12. INCOME TAXES ( Continued ) Deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences that exist between the financial statement carrying value of assets and liabilities and their respective tax bases, and net operating loss carryforwards and tax credit carryforwards on a taxing jurisdiction basis. We measure deferred tax assets and liabilities using enacted tax rates that will apply in the years in which we expect the temporary differences to be recovered or paid. Our accounting for deferred tax consequences represents our best estimate of the likely future tax consequences of events that have been recognized in our financial statements or tax returns and their future probability. In assessing the need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. If, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized, we record a valuation allowance. The components of deferred tax assets and liabilities at December 31 were as follows (in millions): 2015 2016 Deferred tax assets Net operating loss carryforwards $ 540 $ 1,207 Provision for credit losses 87 191 Other foreign 75 83 Employee benefit plans 10 34 Foreign tax credits 756 803 Other 280 89 Total gross deferred tax assets 1,748 2,407 Less: Valuation allowance (47 ) (42 ) Total net deferred tax assets 1,701 2,365 Deferred tax liabilities Leasing transactions 3,338 4,479 Finance receivables 688 594 Other foreign 330 303 Other 18 14 Total deferred tax liabilities 4,374 5,390 Net deferred tax liability $ 2,673 $ 3,025 At December 31, 2016 , we have a valuation allowance of $42 million for deferred tax assets related to our Latin American operations. In accordance with our intercompany tax sharing agreement with Ford, United States income tax liabilities or credits are allocated to us, generally on a separate return basis. In this regard, the deferred tax assets related to foreign tax credits and net operating loss carryforwards represent amounts primarily due from Ford. Under our tax sharing agreement with Ford, we are generally paid for these assets at the earlier of our use on a separate return basis or their expiration. Operating loss carryforwards for tax purposes were $3.6 billion at December 31, 2016 , resulting in a deferred tax asset of $1.2 billion . These losses begin to expire in 2019 with a substantial portion expiring in 2037. Tax benefits of net operating loss carryforwards and tax credit carryforwards are evaluated on an ongoing basis, including a review of historical and projected future operating results, the eligible carryforward period, and other circumstances. NOTE 12. INCOME TAXES ( Continued ) In accordance with our intercompany tax sharing agreement with Ford, we earn interest on net tax assets and pay interest on certain tax liabilities. Interest earned is included in Other income, net while interest expense is included in Interest expense . The changes in the unrecognized tax benefits for the years ended December 31 were as follows (in millions): 2014 2015 2016 Beginning balance $ 159 $ 111 $ 91 Increase - tax positions in prior periods 28 9 2 Increase - tax positions in current period 1 1 — Decrease - tax positions in prior periods (44 ) (22 ) (1 ) Settlements (33 ) (8 ) (12 ) Ending balance $ 111 $ 91 $ 80 The amount of unrecognized tax benefits at December 31, 2014 , 2015 , and 2016 that would impact the effective tax rate if recognized, was $88 million , $76 million , and $69 million , respectively. We do not believe it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease during the next twelve months. We have settled our U.S. federal income tax matters related to tax years prior to 2012 in accordance with our intercompany tax sharing agreement with Ford. The Ford consolidated tax return is currently under examination for the 2012 and 2013 tax years. Examinations by tax authorities have been completed through 2008 in Germany, 2010 in Canada, and 2014 in the United Kingdom. We recognize income tax-related penalties in Provision for/(Benefit from) income taxes on our income statement. We recognize accrued interest expense related to unrecognized tax benefits in jurisdictions where we file tax returns separate from Ford in Other income, net on our income statement. For the years ended December 31, 2014 , 2015 , and 2016 , we recorded $13 million in net tax related interest expense, $3 million in net tax related interest income, and $8 million in net tax related interest income, respectively, in our income statement. At December 31, 2015 and 2016 , we recorded a net payable of $37 million and $11 million , respectively, for tax related interest in Other liabilities and deferred income . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) The changes in the balance of Accumulated Other Comprehensive Income/(Loss) (“AOCI”) attributable to Ford Credit for the years ended December 31 were as follows (in millions): 2014 2015 2016 Foreign currency translation Beginning balance $ 717 $ 160 $ (607 ) Net gain/(loss) on foreign currency translation (547 ) (767 ) (283 ) Reclassifications from shareholder’s interest (a) (10 ) — — Other comprehensive income/(loss) including reclassification adjustments, net of tax (557 ) (767 ) (283 ) Ending balance $ 160 $ (607 ) $ (890 ) Total AOCI ending balance at December 31 $ 160 $ (607 ) $ (890 ) __________ (a) In 2014, we recorded a foreign currency translation adjustment related to the acquisition of a subsidiary of Ford. This adjustment also increased Shareholder’s interest and did not impact the Total Shareholder’s interest on our balance sheet. |
Insurance
Insurance | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
INSURANCE | INSURANCE We conduct insurance underwriting operations primarily through The American Road Insurance Company (“TARIC”). TARIC is a wholly owned subsidiary of Ford Credit operating in the United States and Canada. TARIC provides physical damage insurance coverage for Ford Credit financed vehicles at dealer locations and Ford and Lincoln vehicles in transit between final assembly plants and dealer locations. In addition, TARIC provides a variety of other insurance products and services to Ford and its affiliates, including contractual liability insurance on extended service contracts. TARIC provides commercial automobile and general liability insurance and surety bonds for Ford in the United States. Insurance premiums earned are reported net of reinsurance as Insurance premiums earned . These premiums are earned over their respective policy periods. Physical damage insurance premiums, including premiums on vehicles financed at wholesale by us, are recognized as income on a monthly basis. Premiums from extended service plan contracts and other contractual liability coverages are earned over the life of the policy based on historical loss experience. Commissions and premium taxes are deferred and amortized over the term of the related policies on the same basis on which premiums are earned. Reserves for insurance losses and loss adjustment expenses are established based on actuarial estimates and historical loss development patterns, which represents management’s best estimate. If management believes the reserves do not reflect all losses due to changes in conditions, or other relevant factors, an adjustment is made based on management judgment. Reinsurance activity primarily consists of ceding a majority of the contractual liability insurance business related to automotive extended service plan contracts for a ceding commission. Commissions on ceded amounts are earned on the same basis as related premiums. Reinsurance contracts do not relieve TARIC from its obligations to its policyholders. Failure of reinsurers to honor their obligations could result in losses to TARIC. Therefore, TARIC either directly or indirectly (via insurance brokers) monitors the underlying business and financial performance of the reinsurers. In addition, where deemed necessary, TARIC may require collateral or utilize multiple reinsurers to mitigate concentration risk. Insurance Assets Cash, cash equivalents, and marketable securities related to insurance activities at December 31 were as follows (in millions): 2015 2016 Cash and cash equivalents $ 210 $ 99 Marketable securities 369 475 Total cash, cash equivalents, and marketable securities $ 579 $ 574 TARIC is required by law to maintain deposits with regulatory authorities. These deposited securities totaled $12 million at December 31, 2015 and 2016 and were included in Marketable securities. Amounts paid to reinsurers relating to the unexpired portion of the underlying automotive service contracts, and amounts recoverable from reinsurers on unpaid losses, including incurred but not reported losses are reported in Other assets . Prepaid reinsurance premiums and other reinsurance recoverables were $472 million and $546 million at December 31, 2015 and 2016, respectively. This includes amounts ceded to Ford and its affiliates of $176 million and $91 million at December 31, 2015 and 2016, respectively. Insurance Liabilities Other liabilities and deferred income includes unearned insurance premiums of $484 million and $556 million at December 31, 2015 and 2016, respectively, all of which are from Ford and its affiliates. The reserve for reported insurance losses and an estimate of unreported insurance losses, based on past experience, was $8 million and $6 million at December 31, 2015 and 2016 , respectively, and was included in Other liabilities and deferred income . NOTE 14. INSURANCE (Continued) Insurance Premiums Insurance premiums written and earned for the years ended December 31 were as follows (in millions): 2014 2015 2016 Written Earned Written Earned Written Earned Direct $ 293 $ 230 $ 328 $ 254 $ 371 $ 298 Assumed — — — — — — Ceded (166 ) (105 ) (194 ) (121 ) (215 ) (142 ) Net premiums $ 127 $ 125 $ 134 $ 133 $ 156 $ 156 The net premiums earned with Ford and its affiliates were $75 million , $90 million , and $133 million for the years ended December 31, 2014 , 2015 , and 2016 , respectively. Insurance Expenses Insurance underwriting losses and expenses are reported as Insurance expenses . The components of insurance expenses for the years ended December 31 were as follows (in millions): 2014 2015 2016 Insurance losses $ 115 $ 80 $ 146 Loss adjustment expenses 6 5 5 Reinsurance income and other expenses, net (14 ) (16 ) (26 ) Insurance expenses $ 107 $ 69 $ 125 Insurance expenses with Ford and its affiliates were $30 million , $36 million , and $55 million for the years ended December 31, 2014 , 2015 , and 2016 , respectively. Insurance expenses were reduced by ceded insurance expenses of $68 million , $76 million , and $95 million for the years ended December 31, 2014 , 2015 , and 2016 , respectively. |
Other Income, Net
Other Income, Net | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | OTHER INCOME, NET Other income consists of various line items that are combined on the income statement due to their respective materiality compared with other individual income and expense items. The amounts included in Other income, net for the years ended December 31 were as follows (in millions): 2014 2015 2016 Gains/(Losses) on derivatives $ 208 $ 110 $ 575 Currency revaluation gains/(losses) (236 ) (161 ) (575 ) Interest and investment income (a) 53 69 85 Insurance fee income 74 88 90 Other 166 178 155 Total other income, net $ 265 $ 284 $ 330 __________ (a) Includes interest income primarily on notes receivable from affiliated companies of $5 million , $3 million , and $5 million , for December 31, 2014 , 2015 , and 2016 respectively. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
RETIREMENT BENEFITS AND SHARE-BASED COMPENSATION | RETIREMENT BENEFITS We are a participating employer in certain retirement plans that are sponsored by Ford. As described below, Ford allocates costs to us under these plans based on the total number of participating or eligible employees at Ford Credit. Further information about these sponsored plans is available in Ford’s Annual Report on Form 10-K for the year ended December 31, 2016 , filed separately with the Securities and Exchange Commission. Employee Retirement Plans Benefits earned under certain Ford-sponsored retirement plans are generally based on an employee’s length of service, salary, and contributions. The allocation amount can be impacted by key assumptions (e.g., discount rate and average rate of increase in compensation) that Ford uses in determining its retirement plan obligations. Retirement plan costs allocated to Ford Credit for our employees participating in the Ford-sponsored defined benefit plans were $71 million , $86 million , and $125 million for the years ended December 31, 2014 , 2015 , and 2016 , respectively. Allocated costs for defined contribution and savings plans were $4 million , $4 million , and $5 million for the years ended December 31, 2014, 2015, and 2016, respectively. All retirement plan costs are charged to Operating expenses . Postretirement Health Care and Life Insurance Benefits Postretirement health care and life insurance benefits are provided under certain Ford plans, which provide benefits to retired salaried employees in the United States and Canada. Our employees generally may become eligible for these benefits if they retire while working for us; however, benefits and eligibility rules may be modified from time to time. Postretirement health care and life insurance costs allocated to Ford Credit for our employees participating in the Ford-sponsored plans were $4 million , $4 million , and $3 million for the years ended December 31, 2014, 2015, and 2016, respectively, and were charged to Operating expenses. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT AND GEOGRAPHIC 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. We segment our business based on geographic regions: the Americas, Europe, and Asia Pacific. 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. The following is a brief description of our segments: • Americas Segment -- United States, Canada, Mexico, Brazil, and Argentina • Europe Segment -- European region and South Africa • Asia Pacific Segment -- China and India We review our business performance by segment on a managed basis. Receivables are presented on a managed basis, as it closely approximates the customer’s outstanding balance on the receivables, which is the basis for earning revenue. Our managed receivables equal net finance receivables and net investment in operating leases, excluding unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation). We measure the performance of our segments primarily on an income before income taxes basis, after excluding market valuation adjustments to derivatives and exchange-rate fluctuations on foreign currency-denominated transactions, which are reflected in Unallocated Other. These adjustments are excluded when assessing our segment performance because they are carried out at the corporate level. We also adjust segment performance to reallocate interest expense among the segments reflecting debt and equity levels proportionate to their product risk. NOTE 17. SEGMENT AND GEOGRAPHIC INFORMATION (Continued) Key operating data for our segments for the years ended or at December 31 were as follows (in millions): Americas Europe Asia Pacific Total Segments Unallocated Other (a) Total 2014 Total revenue (b) $ 7,657 $ 1,071 $ 274 $ 9,002 $ (6 ) $ 8,996 Income before income taxes 1,509 338 13 1,860 (6 ) 1,854 Other disclosures: Depreciation on vehicles subject to operating leases 3,045 43 — 3,088 — 3,088 Interest expense 2,119 356 181 2,656 — 2,656 Provision for credit losses 176 15 6 197 — 197 Net finance receivables and net investment in operating leases 92,484 17,036 3,263 112,783 (4,350 ) 108,433 Total assets 98,093 20,439 3,576 122,108 — 122,108 2015 Total revenue (b) $ 8,386 $ 982 $ 330 $ 9,698 $ (1 ) $ 9,697 Income before income taxes 1,763 297 27 2,087 (1 ) 2,086 Other disclosures: Depreciation on vehicles subject to operating leases 3,603 37 — 3,640 — 3,640 Interest expense 1,931 294 191 2,416 — 2,416 Provision for credit losses 309 16 22 347 — 347 Net finance receivables and net investment in operating leases 104,497 18,947 3,788 127,232 (5,330 ) 121,902 Total assets 111,147 22,085 4,216 137,448 — 137,448 2016 Total revenue (b) $ 9,505 $ 984 $ 351 $ 10,840 $ 69 $ 10,909 Income before income taxes 1,511 238 61 1,810 69 1,879 Other disclosures: Depreciation on vehicles subject to operating leases 4,291 38 — 4,329 — 4,329 Interest expense 2,301 278 176 2,755 — 2,755 Provision for credit losses 494 29 24 547 — 547 Net finance receivables and net investment in operating leases 113,335 18,846 4,684 136,865 (6,675 ) 130,190 Total assets 119,012 21,755 5,322 146,089 — 146,089 __________ (a) Net finance receivables and Net investment in operating leases includes unearned interest supplements and residual support, allowances for credit losses, and other (primarily accumulated supplemental depreciation). (b) Represents Total financing revenue and Other revenue . NOTE 17. SEGMENT AND GEOGRAPHIC INFORMATION (Continued) Geographic Information Key data, split geographically into the United States (which is our country of domicile), Canada, and All other, for the years ended or at December 31 were as follows (in millions): 2014 2015 2016 Total revenue (a) United States $ 6,377 $ 7,070 $ 8,151 Canada 998 981 1,093 All other 1,621 1,646 1,665 Total revenue $ 8,996 $ 9,697 $ 10,909 Income before income taxes United States $ 1,199 $ 1,298 $ 1,070 Canada 148 247 304 All other 507 541 505 Total income before income taxes $ 1,854 $ 2,086 $ 1,879 Finance receivables, net and net investment in operating leases United States $ 76,578 $ 88,237 $ 93,254 Canada 10,449 10,037 12,168 All other 21,406 23,628 24,768 Total finance receivables, net and net investment in operating leases $ 108,433 $ 121,902 $ 130,190 __________ (a) Represents Total financing revenue and Other revenue. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA | SELECTED QUARTERLY FINANCIAL DATA (unaudited) Selected financial data by calendar quarter were as follows (in millions): First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2015 Total revenue (a) $ 2,282 $ 2,338 $ 2,478 $ 2,599 $ 9,697 Depreciation on vehicles subject to operating leases (816 ) (858 ) (956 ) (1,010 ) (3,640 ) Interest expense (638 ) (599 ) (582 ) (597 ) (2,416 ) Total financing margin and other revenue 828 881 940 992 3,641 Provision for credit losses 67 72 100 108 347 Net income 306 340 365 352 1,363 2016 Total revenue (a) $ 2,608 $ 2,688 $ 2,796 $ 2,817 $ 10,909 Depreciation on vehicles subject to operating leases (1,014 ) (1,075 ) (1,085 ) (1,155 ) (4,329 ) Interest expense (646 ) (687 ) (697 ) (725 ) (2,755 ) Total financing margin and other revenue 948 926 1,014 937 3,825 Provision for credit losses 128 137 138 144 547 Net income 358 296 386 333 1,373 __________ (a) Represents Total financing revenue, Insurance premiums earned, and Other income, net. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments and contingencies primarily consist of lease commitments, guarantees and indemnifications, and litigation and claims. Lease Commitments We have rental commitments for certain land, buildings, and equipment that expire over various contractual periods. Minimum non-cancelable operating lease commitments at December 31, 2016 were as follows (in millions): 2017 2018 2019 2020 2021 Thereafter Minimum rentals on operating leases $ 18 $ 11 $ 8 $ 6 $ 4 $ 8 Rental expense under cancelable and non-cancelable leases of $26 million , $27 million , and $26 million was recorded in Operating expenses for the years ended December 31, 2014 , 2015 , and 2016 , respectively. Guarantees and Indemnifications Guarantees and indemnifications are recorded at fair value at their inception. 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. 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 failure of the guaranteed party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from Ford, an affiliate of Ford, or 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 terms of the contract or by 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. The maximum potential payments under these guarantees and limited indemnities totaled $80 million and $35 million at December 31, 2015 and 2016 , respectively. Of these values, $74 million and $31 million at December 31, 2015 and 2016 , respectively, were counter-guaranteed by Ford to us. There were no recorded liabilities related to guarantees and limited indemnities at December 31, 2015 and 2016 . 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. NOTE 19. COMMITMENTS AND CONTINGENCIES (Continued) 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 of our 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 to us 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. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Basis of Accounting and Intercompany Transactions [Abstract] | |
Basis of Accounting and Intercompany Transactions [Policy Text Block] | The accompanying consolidated financial statements include Ford Motor Credit Company LLC, its controlled domestic and foreign subsidiaries and joint ventures, and consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Affiliates that we do not consolidate, but for which we have significant influence over operating and financial policies, are accounted for using the equity method. We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). |
Reclassifications [Abstract] | |
Comparability of Prior Year Financial Data, Policy [Policy Text Block] | We reclassified certain prior period amounts in our consolidated financial statements to conform to current year presentation. |
Use of Estimates [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | The preparation of financial statements requires the use of estimates, as determined by management. Because of the inherent uncertainty involved in making estimates, actual results reported in future periods might be based upon amounts that differ from those estimates. The accounting estimates that are most important to our business involve the allowance for credit losses and accumulated depreciation on vehicles subject to operating leases. |
Foreign Currency Translation [Abstract] | |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | We remeasure monetary assets and liabilities denominated in a currency that is different than a reporting entity’s functional currency from the transactional currency to the legal entity’s functional currency. The effect of this remeasurement process, and the results of our foreign currency hedging activities are reported in Other income, net . Generally, our foreign subsidiaries use the local currency as their functional currency. We translate the assets and liabilities of our foreign subsidiaries from their respective functional currencies to U.S. dollars using end-of-period exchange rates. Changes in the carrying value of these assets and liabilities attributable to fluctuations in exchange rates are recognized in Foreign currency translation , a component of Other comprehensive income/(Ioss), net of tax . Upon sale or upon complete or substantially complete liquidation of an investment in a foreign subsidiary, the amount of accumulated foreign currency translation related to the entity is reclassified to Net income and recognized as part of the gain or loss on the investment. |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Cash equivalents, marketable securities, and derivative financial instruments are remeasured and presented on our financial statements on a recurring basis at fair value, while other assets and liabilities are measured at fair value on a nonrecurring basis. In measuring fair value, we use various valuation methods and prioritize the use of observable inputs. The use of observable and unobservable inputs and their significance in measuring fair value are reflected in our fair value hierarchy. • Level 1 – inputs include quoted prices for identical instruments and are the most observable • Level 2 – inputs include quoted prices for similar instruments and observable inputs such as interest rates, currency exchange rates, and yield curves • Level 3 – inputs include data not observable in the market and reflect management judgment about the assumptions market participants would use in pricing the instruments Transfers into and transfers out of the hierarchy levels are recognized as if they had taken place at the end of the reporting period. Cash and Cash Equivalents. Included in Cash and cash equivalents are highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of change in value due to interest rate, quoted price, or penalty on withdrawal. A debt security is classified as a cash equivalent if it meets these criteria and if it has a remaining time to maturity of three months or less from the date of acquisition. Amounts on deposit and available upon demand, or negotiated to provide for daily liquidity without penalty, are classified as Cash and cash equivalents . Time deposits, certificates of deposit, and money market accounts that meet the above criteria are reported at par value on our balance sheet. Marketable Securities. Investments in securities with a maturity date greater than three months at the date of purchase and other securities for which there is more than an insignificant risk of change in value due to interest rate, quoted price, or penalty on withdrawal are classified as Marketable securities . We generally measure fair value using prices obtained from pricing services. Pricing methods and inputs to valuation models used by the pricing services depend on the security type (i.e., asset class). Where possible, fair values are generated using market inputs including quoted prices (the closing price in an exchange market), bid prices (the price at which a buyer stands ready to purchase), and other market information. For fixed income securities that are not actively traded, the pricing services use alternative methods to determine fair value for the securities, including quotes for similar fixed income securities, matrix pricing, discounted cash flow using benchmark curves, or other factors. In certain cases, when market data are not available, we may use broker quotes to determine fair value. An annual review is performed on the security prices received from our pricing services, which includes discussion and analysis of the inputs used by the pricing services to value our securities. We also compare the price of certain securities sold close to the quarter end to the price of the same security at the balance sheet date to ensure the reported fair value is reasonable. Realized and unrealized gains and losses and interest income on our marketable securities are recorded in Other income, net . Realized gains and losses are measured using the specific identification method. We measure finance receivables at fair value for purposes of disclosure using internal valuation models. These models project future cash flows of financing contracts based on scheduled contract payments (including principal and interest). The projected cash flows are discounted to present value based on assumptions regarding credit losses, pre-payment speed, and applicable spreads to approximate current rates. Our assumptions regarding pre-payment speed and credit losses are based on historical performance. The fair value of finance receivables is categorized within Level 3 of the hierarchy. On a nonrecurring basis, we also measure at fair value retail contracts greater than 120 days past due or deemed to be uncollectible, and individual dealer loans probable of foreclosure. We use the fair value of collateral, adjusted for estimated costs to sell, to determine the fair value of our receivables. The collateral for a retail receivable is the vehicle financed, and for dealer loans is real estate or other property. The fair value of collateral for retail receivables is calculated by multiplying the outstanding receivable balances by the average recovery value percentage. The fair value of collateral for dealer loans is determined by reviewing various appraisals, which include total adjusted appraised value of land and improvements, alternate use appraised value, broker’s opinion of value, and purchase offers. Our derivatives are over-the-counter customized derivative transactions and are not exchange traded. We estimate the fair value of these instruments using industry-standard valuation models such as a discounted cash flow. These models project future cash flows and discount the future amounts to a present value using market-based expectations for interest rates, foreign exchange rates, and the contractual terms of the derivative instruments. The discount rate used is the relevant interbank deposit rate (e.g., LIBOR) plus an adjustment for nonperformance risk. The adjustment reflects the full credit default swap (“CDS”) spread applied to a net exposure, by counterparty, considering the master netting agreements and any posted collateral. We use our counterparty’s CDS spread when we are in a net asset position and our own CDS spread when we are in a net liability position. We measure debt at fair value for purposes of disclosure using quoted prices for our own debt with approximately the same remaining maturities. Where quoted prices are not available, we estimate fair value using discounted cash flows and market-based expectations for interest rates, credit risk, and the contractual terms of the debt instruments. For certain short-term debt with an original maturity date of one year or less, we assume that book value is a reasonable approximation of the debt’s fair value. The fair value of debt is categorized within Level 2 of the hierarchy. |
Loans and Leases Receivable Disclosure [Abstract] | |
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | 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. 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. Revenue from finance receivables is recognized using the interest method and includes the accretion of certain direct origination costs that are deferred and interest supplements received from Ford and affiliated companies. The unearned interest supplements on consumer finance receivables are included in Finance receivables, net on the balance sheet, and the earned interest supplements are included in Financing revenue on the income statement. 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 our 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. Finance receivables involved in TDRs are specifically assessed for impairment. The accrual of revenue is discontinued at the time a receivable is determined to be uncollectible. 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. Impaired consumer receivables include accounts that have been rewritten or modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code that are considered to be Troubled Debt Restructurings (“TDRs”), as well as all accounts greater than 120 days past due. Impaired non-consumer receivables represent accounts with dealers that have weak or poor financial metrics or dealer financing that has been modified in TDRs. |
Lease Policy [Abstract] | |
Lease, Policy [Policy Text Block] | Revenue from rental payments received on operating leases is recognized on a straight-line basis over the term of the lease. The accrual of revenue on operating leases is discontinued at the time an account is determined to be uncollectible. We receive interest supplements and residual support payments on certain leasing transactions under agreements with Ford. We recognize these upfront collections from Ford and other vehicle acquisition costs as part of Net investment in operating leases , which are amortized to Depreciation on vehicles subject to operating leases over the term of the lease contract. Depreciation expense on vehicles subject to operating leases is recognized on a straight-line basis in an amount necessary to reduce the leased vehicle value to its estimated residual value at the end of the lease term. Our policy is to promptly sell returned off-lease vehicles. We evaluate our depreciation for leased vehicles on a regular basis taking into consideration various assumptions, such as expected residual values at lease termination (including residual value support payments from Ford) and the estimated number of vehicles that will be returned to us. Adjustments to depreciation expense reflecting revised estimates of expected residual values at the end of the lease terms are recorded prospectively on a straight-line basis. Upon disposition of the vehicle, the difference between net book value and actual proceeds is recorded as an adjustment to Depreciation on vehicles subject to operating leases . We evaluate the carrying value of held-and-used long-lived asset groups (such as vehicles subject to operating leases) for potential impairment when we determine a triggering event has occurred. When a triggering event occurs, a test for recoverability is performed by comparing projected undiscounted future cash flows to the carrying value of the asset group. If the test for recoverability identifies a possible impairment, the asset group’s fair value is measured in accordance with the fair value measurement framework. An impairment charge is recognized for the amount by which the carrying value of the asset group exceeds its estimated fair value. For the periods presented, we have not recorded any impairment charges. |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses, Policy [Policy Text Block] | The allowance for credit losses represents our estimate of the probable credit loss inherent in finance receivables and operating leases as of the balance sheet date. The adequacy of the allowance for credit losses is assessed quarterly and the assumptions and models used in establishing the allowance are evaluated regularly. Because credit losses may vary substantially over time, estimating credit losses requires a number of assumptions about matters that are uncertain. The majority of credit losses are attributable to consumer receivables. Additions to the allowance for credit losses are made by recording charges to the Provision for credit losses on the income statement. The uncollectible portion of finance receivables and operating leases are 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, borrower, or lessee, the value of the collateral, recourse to guarantors, and other factors. In the event we repossess the collateral, the receivable is charged off and we record the collateral at its estimated fair value less costs to sell and report it in Other assets on the balance sheet. Charge-offs on finance receivables and operating leases include uncollected amounts related to principal, interest, rental payments, late fees, and other allowable charges. Recoveries on finance receivables and operating leases previously charged off as uncollectible are credited to the allowance for credit losses. Consumer Segment and Operating Leases We estimate the allowance for credit losses on consumer receivables and on operating leases using a combination of measurement models and management judgment. The models consider factors such as historical trends in credit losses and recoveries (including key metrics such as delinquencies, repossessions, and bankruptcies), the composition of the present portfolio (including vehicle brand, term, risk evaluation, and new/used vehicles), trends in historical used vehicle values, and economic conditions. Estimates from these models rely on historical information and may not fully reflect losses inherent in the present portfolio. Therefore, we may adjust the estimate to reflect management judgment regarding observable changes in recent economic trends and conditions, portfolio composition, and other relevant factors. We make projections of two key assumptions to assist in estimating the consumer allowance for credit losses: • Frequency – number of finance receivables and operating lease contracts that are expected to default over the loss emergence period, measured as repossessions; and • Loss severity – 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. NOTE 6. ALLOWANCE FOR CREDIT LOSSES (Continued) Collective Allowance for Credit Losses. The collective allowance is evaluated primarily using a collective loss-to-receivables (“LTR”) model that, based on historical experience, indicates credit losses have been incurred in the portfolio even though the particular accounts that are uncollectible cannot be specifically identified. The LTR model is based on the most recent years of history. Each LTR is calculated by dividing credit losses by average finance receivables or average operating leases, excluding unearned interest supplements and allowance for credit losses. An average LTR is calculated for each product and multiplied by the end-of-period balances for that given product. Our largest markets also use a loss projection model to estimate losses inherent in the portfolio. The loss projection model applies recent monthly performance metrics, stratified by contract type (retail or lease), contract term (e.g., 60-month), and risk rating to our active portfolio to estimate the losses that have been incurred. The loss emergence period (“LEP”) is an assumption within our models and represents the average amount of time between when a loss event first occurs to when it is charged off. This time period starts when the consumer begins to experience financial difficulty. It is evidenced, typically through delinquency, before eventually resulting in a charge-off. The LEP is a multiplier in the calculation of the collective consumer allowance for credit losses. For accounts greater than 120 days past due , the uncollectible portion is charged off such that the remaining recorded investment is equal to the estimated fair value of the collateral less costs to sell. Specific Allowance for Impaired Receivables. Consumer receivables involved in TDRs are specifically assessed for impairment. A specific allowance is estimated based on the present value of the expected future cash flows of the receivable discounted at the contract’s original effective interest rate or the fair value of any collateral adjusted for estimated costs to sell. After establishing the collective and specific allowance for credit losses, if management believes the allowance does not reflect all losses inherent in the portfolio due to changes in recent economic trends and conditions, or other relevant factors, an adjustment is made based on management judgment. Non-Consumer Segment We estimate the allowance for credit losses for non-consumer receivables based on historical LTR ratios, expected future cash flows, and the fair value of collateral. Collective Allowance for Credit Losses. We estimate an allowance for non-consumer receivables that are not specifically identified as impaired using a LTR model for each financing product based on historical experience. This LTR is an average of the most recent historical experience and is calculated consistent with the consumer receivables LTR approach. All accounts that are specifically identified as impaired are excluded from the calculation of the non-specific or collective allowance. Specific Allowance for Impaired Receivables. Dealer financing is evaluated by segmenting individual loans by the risk characteristics of the loan (such as the amount of the loan, the nature of the collateral, and the financial status of the debtor). The loans are analyzed to determine whether individual loans are impaired, and a specific allowance is estimated based on the present value of the expected future cash flows of the receivable discounted at the loan’s original effective interest rate or the fair value of the collateral adjusted for estimated costs to sell. After establishing the collective and specific allowance for credit losses, if management believes the allowance does not reflect all losses inherent in the portfolio due to changes in recent economic trends and conditions, or other relevant factors, an adjustment is made based on management judgment. |
Transfers of Receivables [Abstract] | |
Receivables Classification, Policy [Policy Text Block] | Finance receivables are accounted for as held for investment (“HFI”) if management has the intent and ability to hold the receivables for the foreseeable future or until maturity or payoff. The determination of intent and ability to hold for the foreseeable future is highly judgmental and requires management to make good faith estimates based on all information available at the time of origination or purchase. If management does not have the intent and ability to hold the receivables, then the receivables are classified as held for sale (“HFS”). Each quarter, we make a determination of whether it is probable that finance receivables originated or purchased during the quarter will be held for the foreseeable future based on historical receivables sale experience, internal forecasts and budgets, as well as other relevant, reliable information available through the date of evaluation. For purposes of this determination, we define probable to mean at least 70% likely and, consistent with our budgeting and forecasting period, we define foreseeable future to mean twelve months. We classify receivables on a receivable-by-receivable basis. Specific receivables included in off-balance sheet securitizations or whole-loan sale transactions are usually not identified until the month in which the sale occurs. Held for Investment Finance receivables originated or purchased during the quarter for which we determine that it is probable we will hold for the following twelve months are classified as HFI and 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. Cash flows resulting from the origination or purchase of and from the sale of receivables that were originally classified as HFI are recorded as an investing activity since GAAP requires the statement of cash flows presentation to be based on the original classification of the receivables. Held for Sale Finance receivables originated or purchased during the quarter for which we determine that it is not probable we will hold for the following twelve months are classified as HFS and carried at the lower of cost or fair value. Cash flows resulting from the origination or purchase and sale of these receivables are recorded as an operating activity. Once a decision has been made to sell receivables that were originally classified as HFI, the receivables are reclassified as HFS and carried at the lower of cost or fair value. The valuation adjustment, if applicable, is recorded in Other income, net to recognize the receivables at the lower of cost or fair value. Once receivables that were classified as HFS are sold, the receivables are removed from the balance sheet and the fair value adjustment is incorporated into the book value of receivables for purposes of determining the gain or loss on sale. |
Variable Interest Entities [Abstract] | |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. Nearly all of our VIEs are special purpose entities used for our securitizations. We have the power to direct the activities of our special purpose entities 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. Assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims against our general assets. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIEs. |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Policy [Policy Text Block] | Derivative Financial Instruments and Hedge Accounting. Derivative assets and derivative liabilities are recorded in Derivative financial instruments on our balance sheet at fair value and presented on a gross basis. 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. Fair Value Hedges . We use derivatives to reduce the risk of changes in the fair value of debt. We have designated certain receive-fixed, pay-float interest rate swaps as fair value hedges of fixed-rate debt. The risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark interest rate. If the hedge relationship is deemed to be highly effective, we record the changes in the fair value of the hedged debt related to the risk being hedged in Debt with the offset in Other income, net . The change in fair value of the related derivative (excluding accrued interest) also is recorded in Other income, net . Net interest settlements and accruals on fair value hedges are excluded from the assessment of hedge effectiveness and are reported in Interest expense . The cash flows associated with fair value hedges are reported in Net cash provided by/(used in) operating activities in our statement of cash flows. When a fair value hedge is de-designated, or when the derivative is terminated before maturity, the fair value adjustment to the hedged debt continues to be reported as part of the carrying value of the debt and is amortized over its remaining life. Derivatives Not Designated as Hedging Instruments. We report net interest settlements and accruals and changes in the fair value of interest rate swaps not designated as hedging instruments in Other income, net . Foreign currency revaluation on accrued interest along with gains and losses on foreign exchange contracts and cross currency interest rate swaps are reported in Other income, net. Cash flows associated with non-designated or de-designated derivatives are reported in Net cash provided by/(used in) investing activities in our statement of cash flows. |
Restricted Cash [Abstract] | |
Restricted Cash, Policy [Policy Text Block] | 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. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions. |
Debt Disclosure [Abstract] | |
Debt, Policy [Policy Text Block] | Debt is recorded on our balance sheet at par value adjusted for unamortized discount or premium, unamortized issuance costs, and adjustments related to designated fair value hedges (see Note 9 for additional information). Debt due within one year at issuance is classified as short-term. Debt due after one year at issuance is classified as long-term. Discounts, premiums, and costs directly related to the issuance of debt are capitalized and amortized over the life of the debt or to the put date and are recorded in Interest expense using the effective interest method. Gains and losses on the extinguishment of debt are recorded in Other income, net. |
Income Tax Disclosure [Abstract] | |
Income Tax, Policy [Policy Text Block] | Deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences that exist between the financial statement carrying value of assets and liabilities and their respective tax bases, and net operating loss carryforwards and tax credit carryforwards on a taxing jurisdiction basis. We measure deferred tax assets and liabilities using enacted tax rates that will apply in the years in which we expect the temporary differences to be recovered or paid. Our accounting for deferred tax consequences represents our best estimate of the likely future tax consequences of events that have been recognized in our financial statements or tax returns and their future probability. In assessing the need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. If, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized, we record a valuation allowance. |
Insurance [Abstract] | |
Insurance Premiums Revenue Recognition, Policy [Policy Text Block] | Insurance premiums earned are reported net of reinsurance as Insurance premiums earned . These premiums are earned over their respective policy periods. Physical damage insurance premiums, including premiums on vehicles financed at wholesale by us, are recognized as income on a monthly basis. Premiums from extended service plan contracts and other contractual liability coverages are earned over the life of the policy based on historical loss experience. Commissions and premium taxes are deferred and amortized over the term of the related policies on the same basis on which premiums are earned. |
Insurance Losses and Claims, Policy [Policy Text Block] | Reserves for insurance losses and loss adjustment expenses are established based on actuarial estimates and historical loss development patterns, which represents management’s best estimate. If management believes the reserves do not reflect all losses due to changes in conditions, or other relevant factors, an adjustment is made based on management judgment. Insurance underwriting losses and expenses are reported as Insurance expenses . |
Reinsurance Accounting Policy [Policy Text Block] | Reinsurance activity primarily consists of ceding a majority of the contractual liability insurance business related to automotive extended service plan contracts for a ceding commission. Commissions on ceded amounts are earned on the same basis as related premiums. Reinsurance contracts do not relieve TARIC from its obligations to its policyholders. Failure of reinsurers to honor their obligations could result in losses to TARIC. Therefore, TARIC either directly or indirectly (via insurance brokers) monitors the underlying business and financial performance of the reinsurers. In addition, where deemed necessary, TARIC may require collateral or utilize multiple reinsurers to mitigate concentration risk. Amounts paid to reinsurers relating to the unexpired portion of the underlying automotive service contracts, and amounts recoverable from reinsurers on unpaid losses, including incurred but not reported losses are reported in Other assets . |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees and Indemnifications Policies [Policy Text Block] | Guarantees and indemnifications are recorded at fair value at their inception. 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. 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 of our 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. |
Cash, Cash Equivalents, and M27
Cash, Cash Equivalents, and Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table categorizes the fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis on our balance sheet at December 31 (in millions): Fair Value Level 2015 2016 Cash and cash equivalents U.S. government 1 $ — $ 924 U.S. government and agencies 2 — — Non-U.S. government and agencies 2 266 142 Corporate debt 2 — — Total marketable securities classified as cash equivalents 266 1,066 Cash, time deposits and money market funds 8,620 7,011 Total cash and cash equivalents $ 8,886 $ 8,077 Marketable Securities U.S. government 1 $ 298 $ 1,634 U.S. government and agencies 2 1,169 505 Non-U.S. government and agencies 2 832 632 Corporate debt 2 384 475 Other marketable securities 2 40 34 Total marketable securities $ 2,723 $ 3,280 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Financing Receivables [Line Items] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Finance receivables, net at December 31 were as follows (in millions): 2015 2016 Consumer Retail financing, gross $ 62,068 $ 68,121 Unearned interest supplements from Ford and affiliated companies (2,119 ) (2,783 ) Consumer finance receivables 59,949 65,338 Non-Consumer Dealer financing (a) 36,037 36,951 Other financing 1,210 1,176 Non-Consumer finance receivables (b) 37,247 38,127 Total recorded investment (c) $ 97,196 $ 103,465 Recorded investment in finance receivables $ 97,196 $ 103,465 Allowance for credit losses (373 ) (484 ) Finance receivables, net (a) $ 96,823 $ 102,981 Net finance receivables subject to fair value (d) $ 95,008 $ 100,857 Fair value 96,180 101,576 __________ (a) At December 31, 2015 and 2016 , includes $4.4 billion and $5.2 billion , respectively, of receivables generated by divisions and affiliates of Ford in connection with vehicle inventories released from Ford and in delivery to the destination dealers, and $508 million and $399 million , respectively, of dealer financing receivables with entities (primarily dealers) that are reported as consolidated subsidiaries of Ford. For the years ended December 31, 2014 , 2015 , and 2016 , the interest earned on receivables from consolidated subsidiaries of Ford to which we provide financing was $5 million , $6 million , and $9 million , respectively. Consolidated subsidiaries of Ford include dealerships that are partially owned by Ford as consolidated VIEs and also certain overseas affiliates. The associated vehicles that are being financed by us are reported as inventory on Ford’s balance sheet. (b) The amount of interest earned from Ford and affiliated companies associated with purchased receivables and receivables from gate released vehicles in transit to dealers for the years ended December 31, 2014 , 2015 , and 2016 , were $171 million , $183 million , and $167 million , respectively. (c) The amount of interest supplements from Ford and affiliated companies earned for the years ended December 31, 2014 , 2015 , and 2016 were $1.4 billion, $1.3 billion , and $1.6 billion , respectively, and the amount of interest supplements cash received related to consumer finance receivables totaled $1.3 billion , $1.5 billion , and $2.0 billion , respectively. (d) Included in Finance receivables, net at December 31, 2015 and 2016 , was $1.8 billion and $2.1 billion , respectively, of net investment in direct financing leases that are not subject to fair value disclosure requirements. |
Schedule of Financing Receivables, Minimum Payments [Table Text Block] | Contractual maturities of total finance receivables outstanding at December 31, 2016 reflect contractual repayments due from customers or borrowers and were as follows (in millions): Due in Year Ending December 31, 2017 2018 2019 Thereafter Total Consumer Retail financing, gross (a) $ 19,460 $ 17,550 $ 14,185 $ 16,926 $ 68,121 Non-Consumer Dealer financing 33,207 1,028 141 2,575 36,951 Other financing 1,176 — — — 1,176 Total finance receivables $ 53,843 $ 18,578 $ 14,326 $ 19,501 $ 106,248 __________ (a) Contractual maturities of retail financing, gross include $183 million of estimated unguaranteed residual values related to direct financing leases. |
Schedule of Aging Analysis for Total Finance Receivables [Table Text Block] | The aging analysis of finance receivables balances at December 31 was as follows (in millions): 2015 2016 Consumer 31-60 days past due $ 708 $ 760 61-90 days past due 108 114 91-120 days past due 27 34 Greater than 120 days past due 38 39 Total past due 881 947 Current 59,068 64,391 Consumer finance receivables 59,949 65,338 Non-Consumer Total past due 116 107 Current 37,131 38,020 Non-Consumer finance receivables 37,247 38,127 Total recorded investment $ 97,196 $ 103,465 |
Non-Consumer Segment [Member] | |
Financing Receivables [Line Items] | |
Schedule of Financing Receivable Credit Quality Indicators [Table Text Block] | The credit quality analysis of our dealer financing receivables at December 31 was as follows (in millions): 2015 2016 Dealer financing Group I $ 27,054 $ 29,926 Group II 7,185 5,552 Group III 1,687 1,380 Group IV 111 93 Total recorded investment $ 36,037 $ 36,951 |
Net Investment in Operating Lea
Net Investment in Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases, Operating [Abstract] | |
Net investment in operating leases [Table Text Block] | Net investment in operating leases at December 31 was as follows (in millions): 2015 2016 Vehicles, at cost (a) $ 29,673 $ 32,823 Accumulated depreciation (4,545 ) (5,550 ) Net investment in operating leases before allowance for credit losses 25,128 27,273 Allowance for credit losses (49 ) (64 ) Net investment in operating leases $ 25,079 $ 27,209 __________ (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. |
Schedule of Minimum Payments Receivable on Operating Leases [Table Text Block] | The amounts contractually due for minimum rentals on operating leases at December 31, 2016 were as follows (in millions): 2017 2018 2019 2020 2021 Minimum rentals on operating leases $ 4,349 $ 2,750 $ 949 $ 66 $ 5 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |
Allowance for Credit Losses on Financing and Loans and Leases Receivable [Table Text Block] | An analysis of the allowance for credit losses related to finance receivables and net investment in operating leases for the years ended December 31 was as follows (in millions): 2015 Finance Receivables Net Investment in Operating Leases Total Allowance Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 305 $ 16 $ 321 $ 38 $ 359 Charge-offs (333 ) (3 ) (336 ) (123 ) (459 ) Recoveries 120 6 126 62 188 Provision for credit losses 276 (2 ) 274 73 347 Other (a) (11 ) (1 ) (12 ) (1 ) (13 ) Ending balance $ 357 $ 16 $ 373 $ 49 $ 422 Analysis of ending balance of allowance for credit losses Collective impairment allowance $ 338 $ 12 $ 350 $ 49 $ 399 Specific impairment allowance 19 4 23 — 23 Ending balance 357 16 373 49 $ 422 Analysis of ending balance of finance receivables and net investment in operating leases Collectively evaluated for impairment 59,574 37,113 96,687 25,128 Specifically evaluated for impairment 375 134 509 — Recorded investment 59,949 37,247 97,196 25,128 Ending balance, net of allowance for credit losses $ 59,592 $ 37,231 $ 96,823 $ 25,079 __________ (a) Primarily represents amounts related to translation adjustments. 2016 Finance Receivables Net Investment in Operating Leases Total Allowance Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 357 $ 16 $ 373 $ 49 $ 422 Charge-offs (435 ) (8 ) (443 ) (175 ) (618 ) Recoveries 116 6 122 81 203 Provision for credit losses 436 2 438 109 547 Other (a) (5 ) (1 ) (6 ) — (6 ) Ending balance $ 469 $ 15 $ 484 $ 64 $ 548 Analysis of ending balance of allowance for credit losses Collective impairment allowance $ 450 $ 13 $ 463 $ 64 $ 527 Specific impairment allowance 19 2 21 — 21 Ending balance 469 15 484 64 $ 548 Analysis of ending balance of finance receivables and net investment in operating leases Collectively evaluated for impairment 64,971 38,020 102,991 27,273 Specifically evaluated for impairment 367 107 474 — Recorded investment 65,338 38,127 103,465 27,273 Ending balance, net of allowance for credit losses $ 64,869 $ 38,112 $ 102,981 $ 27,209 __________ (a) Primarily represents amounts related to translation adjustments. |
Transfers of Receivables (Table
Transfers of Receivables (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Transfers and Servicing [Abstract] | |
Schedule of Assets and Liabilities Related to Securitization Transactions [Table Text Block] | The following tables show the assets and debt related to our securitization transactions that were included in our financial statements at December 31 (in billions): 2015 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt (c) Before Allowance Allowance for After Allowance VIE (b) Retail financing $ 1.4 $ 20.9 $ 0.1 $ 20.8 $ 18.9 Wholesale financing 2.0 25.1 — 25.1 15.3 Finance receivables 3.4 46.0 0.1 45.9 34.2 Net investment in operating leases 0.5 13.3 — 13.3 8.9 Total VIE $ 3.9 $ 59.3 $ 0.1 $ 59.2 $ 43.1 Non-VIE Retail financing $ 0.4 $ 6.7 $ — $ 6.7 $ 6.1 Wholesale financing — 1.0 — 1.0 0.8 Finance receivables $ 0.4 $ 7.7 $ — $ 7.7 $ 6.9 Net investment in operating leases — — — — — Total Non-VIE $ 0.4 $ 7.7 $ — $ 7.7 $ 6.9 Total securitization transactions Retail financing $ 1.8 $ 27.6 $ 0.1 $ 27.5 $ 25.0 Wholesale financing 2.0 26.1 — 26.1 16.1 Finance receivables $ 3.8 $ 53.7 $ 0.1 $ 53.6 $ 41.1 Net investment in operating leases 0.5 13.3 — 13.3 8.9 Total securitization transactions $ 4.3 $ 67.0 $ 0.1 $ 66.9 $ 50.0 __________ (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 7. TRANSFERS OF RECEIVABLES (Continued) 2016 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 $ 1.5 $ 25.9 $ 0.2 $ 25.7 $ 22.7 Wholesale financing 1.0 25.2 — 25.2 13.6 Finance receivables 2.5 51.1 0.2 50.9 36.3 Net investment in operating leases 0.5 11.8 — 11.8 7.4 Total VIE $ 3.0 $ 62.9 $ 0.2 $ 62.7 $ 43.7 Non-VIE Retail financing $ 0.4 $ 6.6 $ — $ 6.6 $ 6.1 Wholesale financing — 0.8 — 0.8 0.6 Finance receivables 0.4 7.4 — 7.4 6.7 Net investment in operating leases — — — — — Total Non-VIE $ 0.4 $ 7.4 $ — $ 7.4 $ 6.7 Total securitization transactions Retail financing $ 1.9 $ 32.5 $ 0.2 $ 32.3 $ 28.8 Wholesale financing 1.0 26.0 — 26.0 14.2 Finance receivables 2.9 58.5 0.2 58.3 43.0 Net investment in operating leases 0.5 11.8 — 11.8 7.4 Total securitization transactions $ 3.4 $ 70.3 $ 0.2 $ 70.1 $ 50.4 __________ (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. |
Schedule Of Interest Expense related to Securitization Transactions [Table Text Block] | Interest expense related to securitization debt for the years ended December 31 was as follows (in millions): 2014 2015 2016 VIE $ 504 $ 541 $ 671 Non-VIE 91 89 102 Total securitization transactions $ 595 $ 630 $ 773 |
Schedule of Exposures Based on the Fair Value of Derivative Instruments Related to Securitization Programs [Table Text Block] | Our exposures based on the fair value of derivative instruments with external counterparties related to securitization programs at December 31 were as follows (in millions): 2015 2016 Derivative Derivative Derivative Asset Derivative Liability Derivatives of the VIEs $ 85 $ 19 $ 25 $ 5 Derivatives related to the VIEs 19 29 11 21 Other securitization related derivatives 12 — 21 1 Total exposures related to securitization $ 116 $ 48 $ 57 $ 27 |
Schedule of Derivative Expense/(Income) Related to Securitization Transactions [Table Text Block] | Derivative expense/(income) related to our securitization transactions for the years ended December 31 was as follows (in millions): 2014 2015 2016 Derivatives of the VIEs $ (9 ) $ (32 ) $ 23 Derivatives related to the VIEs (16 ) 12 (4 ) Other securitization related derivatives 21 18 10 Total derivative expense/(income) related to securitization $ (4 ) $ (2 ) $ 29 |
Derivative Financial Instrume32
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, recorded in income for the years ended December 31 were as follows (in millions): 2014 2015 2016 Fair value hedges Interest rate contracts Net interest settlements and accruals excluded from the assessment of hedge effectiveness $ 304 $ 370 $ 367 Ineffectiveness (a) 20 3 4 Derivatives not designated as hedging instruments Interest rate contracts (41 ) (58 ) (9 ) Foreign currency exchange contracts (b) 68 66 179 Cross-currency interest rate swap contracts 161 100 398 Total $ 512 $ 481 $ 939 __________ (a) For 2014 , 2015 , and 2016 , hedge ineffectiveness reflects the net change in fair value on derivatives of $407 million gain, $72 million gain, and $120 million loss, respectively, and change in value on hedged debt attributable to the change in benchmark interest rates of $387 million loss, $69 million loss, and $124 million gain, respectively. (b) The gains related to forward contracts between Ford Credit and an affiliated company were $68 million , $66 million , and $210 million for the years ended December 31, 2014 , 2015 , and 2016 , respectively. |
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, presented gross, at December 31 were as follows (in millions): 2015 2016 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Fair value hedges Interest rate contracts $ 28,964 $ 670 $ 16 $ 33,175 $ 487 $ 80 Derivatives not designated as hedging instruments Interest rate contracts 62,638 159 112 61,689 156 74 Foreign currency exchange contracts (a) 1,713 22 4 1,791 24 4 Cross-currency interest rate swap contracts 3,137 73 111 3,201 242 8 Total derivative financial instruments, gross (b) (c) $ 96,452 924 243 $ 99,856 909 166 __________ (a) Includes forward contracts between Ford Credit and an affiliated company. (b) As of December 31, 2015 and 2016 , the net obligation to return cash collateral was $0 and $3 million , respectively. (c) At December 31, 2015 and 2016 , the fair value of derivative assets and liabilities available for counterparty netting was $167 million and $113 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy. |
Other Assets and Other Liabil33
Other Assets and Other Liabilities and Deferred Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets and Other Liabilities and Deferred Income [Abstract] | |
Schedule of Other Assets and Other Liabilities [Table Text Block] | Other assets at December 31 were as follows (in millions): 2015 2016 Accrued interest and other non-finance receivables $ 763 $ 889 Collateral held for resale, at net realizable value 498 621 Prepaid reinsurance premiums and other reinsurance recoverables 472 546 Deferred charges – income taxes 135 205 Property and equipment, net of accumulated depreciation (a) 142 156 Investment in non-consolidated affiliates 133 153 Deferred charges 63 122 Restricted cash (b) 56 108 Other 24 22 Total other assets $ 2,286 $ 2,822 __________ (a) Accumulated depreciation was $335 million and $347 million at December 31, 2015 and 2016 , respectively. (b) 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. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions. Other liabilities and deferred income at December 31 were as follows (in millions): 2015 2016 Interest payable $ 553 $ 661 Unearned insurance premiums 484 556 Tax related payables to Ford and affiliated companies 105 96 Unrecognized tax benefits 75 65 Other 448 619 Total other liabilities and deferred income $ 1,665 $ 1,997 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Debt outstanding and interest rates at December 31 were as follows (in millions): Interest Rates Debt Average Contractual Average Effective 2015 2016 2015 2016 2015 2016 Short-term debt Unsecured debt Floating rate demand notes $ 5,926 $ 5,986 Commercial paper 1,722 4,507 Other short-term debt 2,708 3,803 Asset-backed debt 1,855 1,063 Total short-term debt 12,211 15,359 1.6 % 2.3 % 1.6 % 2.3 % Long-term debt Unsecured debt Notes payable within one year 10,254 12,369 Notes payable after one year 48,672 49,308 Asset-backed debt Notes payable within one year 18,855 19,286 Notes payable after one year 29,390 30,112 Unamortized discount (25 ) (8 ) Unamortized issuance costs (214 ) (212 ) Fair value adjustments 458 278 Total long-term debt 107,390 111,133 2.3 % 2.4 % 2.4 % 2.5 % Total debt $ 119,601 $ 126,492 2.2 % 2.4 % 2.3 % 2.4 % Fair value of debt $ 120,546 $ 128,001 Interest rate characteristics of debt payable after one year Fixed interest rate 54,396 56,684 Variable interest rate (generally based on LIBOR or other short-term rates) 23,666 22,736 Total payable after one year $ 78,062 $ 79,420 |
Schedule of Debt with Affilated Companies [Table Text Block] | Debt with affiliated companies included in the above table at December 31 was as follows (in millions): 2015 2016 Other short-term debt $ 88 $ 29 Notes payable within one year 13 — Notes payable after one year 83 — Total debt with affiliated companies $ 184 $ 29 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Debt maturities at December 31, 2016 were as follows (in millions): 2017 (a) 2018 2019 2020 2021 Thereafter (b) Total Unsecured debt $ 26,665 $ 12,374 $ 11,135 $ 6,843 $ 9,125 $ 9,831 $ 75,973 Asset-backed debt 20,349 12,129 9,725 4,909 2,299 1,050 50,461 Total 47,014 24,503 20,860 11,752 11,424 10,881 126,434 Unamortized discount (8 ) Unamortized issuance costs (212 ) Fair value adjustments 278 Total debt $ 126,492 __________ (a) Includes $15,359 million for short-term and $31,655 million for long-term debt. (b) Includes $9,828 million of unsecured debt maturing between 2022 and 2026 with the remaining balance maturing by 2048. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The Provision for income taxes for the years ended December 31 was estimated as follows (in millions): 2014 2015 2016 Current Federal $ (198 ) $ (454 ) $ (41 ) Non-U.S. 154 161 222 State and local (38 ) (26 ) (15 ) Total current (82 ) (319 ) 166 Deferred Federal 193 893 284 Non-U.S. (6 ) 93 1 State and local 44 56 55 Total deferred 231 1,042 340 Provision for income taxes $ 149 $ 723 $ 506 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the Provision for income taxes with the United States statutory tax rate as a percentage of Income before income taxes for the years ended December 31 is as follows: 2014 2015 2016 U.S. statutory tax rate 35.0 % 35.0 % 35.0 % Effect of (in percentage points): Non-U.S. tax rates under U.S. rate (3.0 ) (3.0 ) (3.8 ) State and local income taxes (0.2 ) 1.0 1.3 U.S. tax on non-U.S. earnings (a) (21.4 ) 0.2 (4.9 ) Other (2.4 ) (0.2 ) (0.7 ) Valuation allowance — 1.7 — Effective tax rate 8.0 % 34.7 % 26.9 % ________ (a) During 2014, we changed our method for measuring currency gains and losses in computing the earnings of our European operations under U.S. tax law. Implementation of the new method resulted in a reduction of U.S. tax on non-U.S. earnings of approximately $360 million due to realization of additional foreign tax credits. |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of deferred tax assets and liabilities at December 31 were as follows (in millions): 2015 2016 Deferred tax assets Net operating loss carryforwards $ 540 $ 1,207 Provision for credit losses 87 191 Other foreign 75 83 Employee benefit plans 10 34 Foreign tax credits 756 803 Other 280 89 Total gross deferred tax assets 1,748 2,407 Less: Valuation allowance (47 ) (42 ) Total net deferred tax assets 1,701 2,365 Deferred tax liabilities Leasing transactions 3,338 4,479 Finance receivables 688 594 Other foreign 330 303 Other 18 14 Total deferred tax liabilities 4,374 5,390 Net deferred tax liability $ 2,673 $ 3,025 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | The changes in the unrecognized tax benefits for the years ended December 31 were as follows (in millions): 2014 2015 2016 Beginning balance $ 159 $ 111 $ 91 Increase - tax positions in prior periods 28 9 2 Increase - tax positions in current period 1 1 — Decrease - tax positions in prior periods (44 ) (22 ) (1 ) Settlements (33 ) (8 ) (12 ) Ending balance $ 111 $ 91 $ 80 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The changes in the balance of Accumulated Other Comprehensive Income/(Loss) (“AOCI”) attributable to Ford Credit for the years ended December 31 were as follows (in millions): 2014 2015 2016 Foreign currency translation Beginning balance $ 717 $ 160 $ (607 ) Net gain/(loss) on foreign currency translation (547 ) (767 ) (283 ) Reclassifications from shareholder’s interest (a) (10 ) — — Other comprehensive income/(loss) including reclassification adjustments, net of tax (557 ) (767 ) (283 ) Ending balance $ 160 $ (607 ) $ (890 ) Total AOCI ending balance at December 31 $ 160 $ (607 ) $ (890 ) __________ (a) In 2014, we recorded a foreign currency translation adjustment related to the acquisition of a subsidiary of Ford. This adjustment also increased Shareholder’s interest and did not impact the Total Shareholder’s interest on our balance sheet. |
Insurance (Tables)
Insurance (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Schedule of Insurance Assets [Table Text Block] | Cash, cash equivalents, and marketable securities related to insurance activities at December 31 were as follows (in millions): 2015 2016 Cash and cash equivalents $ 210 $ 99 Marketable securities 369 475 Total cash, cash equivalents, and marketable securities $ 579 $ 574 |
Schedule of Insurance Underwriting Losses and Expenses [Table Text Block] | The components of insurance expenses for the years ended December 31 were as follows (in millions): 2014 2015 2016 Insurance losses $ 115 $ 80 $ 146 Loss adjustment expenses 6 5 5 Reinsurance income and other expenses, net (14 ) (16 ) (26 ) Insurance expenses $ 107 $ 69 $ 125 |
Schedule of the Effect of Reinsurance Premiums Written and Earned [Table Text Block] | Insurance premiums written and earned for the years ended December 31 were as follows (in millions): 2014 2015 2016 Written Earned Written Earned Written Earned Direct $ 293 $ 230 $ 328 $ 254 $ 371 $ 298 Assumed — — — — — — Ceded (166 ) (105 ) (194 ) (121 ) (215 ) (142 ) Net premiums $ 127 $ 125 $ 134 $ 133 $ 156 $ 156 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income [Table Text Block] | The amounts included in Other income, net for the years ended December 31 were as follows (in millions): 2014 2015 2016 Gains/(Losses) on derivatives $ 208 $ 110 $ 575 Currency revaluation gains/(losses) (236 ) (161 ) (575 ) Interest and investment income (a) 53 69 85 Insurance fee income 74 88 90 Other 166 178 155 Total other income, net $ 265 $ 284 $ 330 __________ (a) Includes interest income primarily on notes receivable from affiliated companies of $5 million , $3 million , and $5 million , for December 31, 2014 , 2015 , and 2016 respectively. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Key operating data for our segments for the years ended or at December 31 were as follows (in millions): Americas Europe Asia Pacific Total Segments Unallocated Other (a) Total 2014 Total revenue (b) $ 7,657 $ 1,071 $ 274 $ 9,002 $ (6 ) $ 8,996 Income before income taxes 1,509 338 13 1,860 (6 ) 1,854 Other disclosures: Depreciation on vehicles subject to operating leases 3,045 43 — 3,088 — 3,088 Interest expense 2,119 356 181 2,656 — 2,656 Provision for credit losses 176 15 6 197 — 197 Net finance receivables and net investment in operating leases 92,484 17,036 3,263 112,783 (4,350 ) 108,433 Total assets 98,093 20,439 3,576 122,108 — 122,108 2015 Total revenue (b) $ 8,386 $ 982 $ 330 $ 9,698 $ (1 ) $ 9,697 Income before income taxes 1,763 297 27 2,087 (1 ) 2,086 Other disclosures: Depreciation on vehicles subject to operating leases 3,603 37 — 3,640 — 3,640 Interest expense 1,931 294 191 2,416 — 2,416 Provision for credit losses 309 16 22 347 — 347 Net finance receivables and net investment in operating leases 104,497 18,947 3,788 127,232 (5,330 ) 121,902 Total assets 111,147 22,085 4,216 137,448 — 137,448 2016 Total revenue (b) $ 9,505 $ 984 $ 351 $ 10,840 $ 69 $ 10,909 Income before income taxes 1,511 238 61 1,810 69 1,879 Other disclosures: Depreciation on vehicles subject to operating leases 4,291 38 — 4,329 — 4,329 Interest expense 2,301 278 176 2,755 — 2,755 Provision for credit losses 494 29 24 547 — 547 Net finance receivables and net investment in operating leases 113,335 18,846 4,684 136,865 (6,675 ) 130,190 Total assets 119,012 21,755 5,322 146,089 — 146,089 __________ (a) Net finance receivables and Net investment in operating leases includes unearned interest supplements and residual support, allowances for credit losses, and other (primarily accumulated supplemental depreciation). (b) Represents Total financing revenue and Other revenue . |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | Key data, split geographically into the United States (which is our country of domicile), Canada, and All other, for the years ended or at December 31 were as follows (in millions): 2014 2015 2016 Total revenue (a) United States $ 6,377 $ 7,070 $ 8,151 Canada 998 981 1,093 All other 1,621 1,646 1,665 Total revenue $ 8,996 $ 9,697 $ 10,909 Income before income taxes United States $ 1,199 $ 1,298 $ 1,070 Canada 148 247 304 All other 507 541 505 Total income before income taxes $ 1,854 $ 2,086 $ 1,879 Finance receivables, net and net investment in operating leases United States $ 76,578 $ 88,237 $ 93,254 Canada 10,449 10,037 12,168 All other 21,406 23,628 24,768 Total finance receivables, net and net investment in operating leases $ 108,433 $ 121,902 $ 130,190 __________ (a) Represents Total financing revenue and Other revenue. |
Selected Quarterly Financial 40
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Selected financial data by calendar quarter were as follows (in millions): First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2015 Total revenue (a) $ 2,282 $ 2,338 $ 2,478 $ 2,599 $ 9,697 Depreciation on vehicles subject to operating leases (816 ) (858 ) (956 ) (1,010 ) (3,640 ) Interest expense (638 ) (599 ) (582 ) (597 ) (2,416 ) Total financing margin and other revenue 828 881 940 992 3,641 Provision for credit losses 67 72 100 108 347 Net income 306 340 365 352 1,363 2016 Total revenue (a) $ 2,608 $ 2,688 $ 2,796 $ 2,817 $ 10,909 Depreciation on vehicles subject to operating leases (1,014 ) (1,075 ) (1,085 ) (1,155 ) (4,329 ) Interest expense (646 ) (687 ) (697 ) (725 ) (2,755 ) Total financing margin and other revenue 948 926 1,014 937 3,825 Provision for credit losses 128 137 138 144 547 Net income 358 296 386 333 1,373 __________ (a) Represents Total financing revenue, Insurance premiums earned, and Other income, net. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum rentals on operating leases [Table Text Block] | Minimum non-cancelable operating lease commitments at December 31, 2016 were as follows (in millions): 2017 2018 2019 2020 2021 Thereafter Minimum rentals on operating leases $ 18 $ 11 $ 8 $ 6 $ 4 $ 8 |
Accounting Policies (Details)
Accounting Policies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Accounting Standards Update 2014-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Expected Cumulative Effect of Change on Equity or Net Assets | $ 10 |
Cash, Cash Equivalents, and M43
Cash, Cash Equivalents, and Marketable Securities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Total cash and cash equivalents | $ 8,077 | $ 8,886 | $ 6,179 | $ 9,424 |
Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 1,066 | 266 | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Marketable securities | 3,280 | 2,723 | ||
Investment Type [Member] | Fair Value, Estimate Not Practicable, Carrying (Reported) Amount [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash, time deposits and money market funds | 7,011 | 8,620 | ||
US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 924 | 0 | ||
Marketable securities | 1,634 | 298 | ||
US Government Agencies Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Marketable securities | 505 | 1,169 | ||
Foreign Government Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 142 | 266 | ||
Marketable securities | 632 | 832 | ||
Corporate debt [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Marketable securities | 475 | 384 | ||
Other Debt Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Marketable securities | $ 34 | $ 40 |
Finance Receivables Net (Detail
Finance Receivables Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Wholesale Loans Percentage of Dealer Financing | 93.00% | ||
Net Finance Receivables [Abstract] | |||
Finance receivables before unearned interest supplements | $ 106,248 | ||
Financing Receivable, Gross | 103,465 | $ 97,196 | |
Allowance for credit losses | (484) | (373) | $ (321) |
Financing Receivable, Net | 102,981 | 96,823 | |
Net finance receivables subject to fair value | 100,857 | 95,008 | |
Related Party, Interest Income, Finance Receivables | 9 | 6 | 5 |
Related Party Transaction, Interest Income, Purchased Receivables | 167 | 183 | 171 |
Related Party Transaction, Earned Interest Supplements, Financing Receivables | 1,600 | 1,300 | 1,400 |
Related Party Transactions Cash Received Interest Supplements Financing Receivables | 2,000 | 1,500 | 1,300 |
Finance receivables not subject to fair value | 2,100 | 1,800 | |
Uncollected interest receivable excluded from finance receivable | 224 | 209 | |
Consumer Segment [Member] | |||
Net Finance Receivables [Abstract] | |||
Financing Receivable, Gross | 65,338 | 59,949 | |
Allowance for credit losses | (469) | (357) | (305) |
Financing Receivable, Net | 64,869 | 59,592 | |
Amount of finance receivables that secure certain debt obligations | 32,500 | 27,600 | |
Non-Consumer Segment [Member] | |||
Net Finance Receivables [Abstract] | |||
Financing Receivable, Gross | 38,127 | 37,247 | |
Allowance for credit losses | (15) | (16) | $ (16) |
Financing Receivable, Net | 38,112 | 37,231 | |
Amount of finance receivables that secure certain debt obligations | 26,000 | 26,100 | |
Retail [Member] | Consumer Segment [Member] | |||
Net Finance Receivables [Abstract] | |||
Finance receivables before unearned interest supplements | 68,121 | 62,068 | |
Unearned interest supplements from Ford and affiliated companies | (2,783) | (2,119) | |
Financing Receivable, Gross | 65,338 | 59,949 | |
Wholesale and Dealer Loans [Member] | Non-Consumer Segment [Member] | |||
Net Finance Receivables [Abstract] | |||
Financing Receivable, Gross | 36,951 | 36,037 | |
Wholesale and Dealer Loans [Member] | Non-Consumer Segment [Member] | Subsidiary of Common Parent [Member] | |||
Net Finance Receivables [Abstract] | |||
Related Party Transaction, Dealer Financing | 399 | 508 | |
Wholesale and Dealer Loans [Member] | Non-Consumer Segment [Member] | Ford Motor Company [Member] | |||
Net Finance Receivables [Abstract] | |||
Related Party Transaction, Dealer Financing | 5,200 | 4,400 | |
Other Finance Receivables [Member] | Non-Consumer Segment [Member] | |||
Net Finance Receivables [Abstract] | |||
Financing Receivable, Gross | 1,176 | 1,210 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Net Finance Receivables [Abstract] | |||
Fair value | $ 101,576 | $ 96,180 |
Finance Receivables - Contractu
Finance Receivables - Contractual Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Finance Receivables Maturity [Abstract] | ||
2,017 | $ 53,843 | |
2,018 | 18,578 | |
2,019 | 14,326 | |
Thereafter | 19,501 | |
Financing Receivable, Gross | 103,465 | $ 97,196 |
Finance receivables before unearned interest supplements | 106,248 | |
Consumer Segment [Member] | ||
Finance Receivables Maturity [Abstract] | ||
Financing Receivable, Gross | 65,338 | 59,949 |
Consumer Segment [Member] | Retail [Member] | ||
Finance Receivables Maturity [Abstract] | ||
2,017 | 19,460 | |
2,018 | 17,550 | |
2,019 | 14,185 | |
Thereafter | 16,926 | |
Financing Receivable, Gross | 65,338 | 59,949 |
Finance receivables before unearned interest supplements | 68,121 | 62,068 |
Consumer Segment [Member] | Finance Leases Portfolio Segment [Member] | ||
Finance Receivables Maturity [Abstract] | ||
Capital Leases, Net Investment in Direct Financing Leases, Unguaranteed Residual Values of Leased Property | 183 | |
Non-Consumer Segment [Member] | ||
Finance Receivables Maturity [Abstract] | ||
Financing Receivable, Gross | 38,127 | 37,247 |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | ||
Finance Receivables Maturity [Abstract] | ||
2,017 | 33,207 | |
2,018 | 1,028 | |
2,019 | 141 | |
Thereafter | 2,575 | |
Financing Receivable, Gross | 36,951 | 36,037 |
Non-Consumer Segment [Member] | Other Finance Receivables [Member] | ||
Finance Receivables Maturity [Abstract] | ||
2,017 | 1,176 | |
2,018 | 0 | |
2,019 | 0 | |
Thereafter | 0 | |
Financing Receivable, Gross | $ 1,176 | $ 1,210 |
Finance Receivables - Aging Ana
Finance Receivables - Aging Analysis (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Threshold Period For Past Due Finance Receivables | 31 days | |
Finance Receivables Aging Analysis [Abstract] | ||
Financing Receivables | $ 103,465 | $ 97,196 |
Consumer Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 21 | 16 |
Finance Receivables Aging Analysis [Abstract] | ||
Total past due | 947 | 881 |
Current | 64,391 | 59,068 |
Financing Receivables | 65,338 | 59,949 |
Non-Consumer Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 1 |
Finance Receivables Aging Analysis [Abstract] | ||
Total past due | 107 | 116 |
Current | 38,020 | 37,131 |
Financing Receivables | 38,127 | 37,247 |
31-60 Days Past Due [Member] | Consumer Segment [Member] | ||
Finance Receivables Aging Analysis [Abstract] | ||
Total past due | 760 | 708 |
61-90 Days Past Due [Member] | Consumer Segment [Member] | ||
Finance Receivables Aging Analysis [Abstract] | ||
Total past due | 114 | 108 |
91-120 Days Past Due [Member] | Consumer Segment [Member] | ||
Finance Receivables Aging Analysis [Abstract] | ||
Total past due | 34 | 27 |
Greater Than 120 Days Past Due [Member] | Consumer Segment [Member] | ||
Finance Receivables Aging Analysis [Abstract] | ||
Total past due | $ 39 | $ 38 |
Finance Receivables - Credit Qu
Finance Receivables - Credit Quality and Impaired Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | $ 103,465 | $ 97,196 |
Consumer Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Threshold Period for Impaired Finance Receivables | 120 days | |
Financing Receivables | $ 65,338 | 59,949 |
Impaired Financing Receivable, Recorded Investment | $ 367 | $ 375 |
Impaired Financing Receivable Recorded Investment, Percentage of Receivable | 0.60% | 0.60% |
Consumer Segment [Member] | Pass [Member] | Maximum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance Receivables Credit Quality Ratings Term Range | 60 days | |
Consumer Segment [Member] | Special Mention [Member] | Minimum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance Receivables Credit Quality Ratings Term Range | 61 days | |
Consumer Segment [Member] | Special Mention [Member] | Maximum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance Receivables Credit Quality Ratings Term Range | 120 days | |
Consumer Segment [Member] | Substandard [Member] | Minimum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance Receivables Credit Quality Ratings Term Range | 120 days | |
Non-Consumer Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | $ 38,127 | $ 37,247 |
Impaired Financing Receivable, Recorded Investment | $ 107 | $ 134 |
Impaired Financing Receivable Recorded Investment, Percentage of Receivable | 0.30% | 0.40% |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | $ 36,951 | $ 36,037 |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group I | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 29,926 | 27,054 |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group II | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 5,552 | 7,185 |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group III | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 1,380 | 1,687 |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group IV | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | $ 93 | $ 111 |
Net Investments in Operating 48
Net Investments in Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Length of lease contract | 60 months or less | ||
Vehicles, at cost | $ 32,823 | $ 29,673 | |
Accumulated depreciation | (5,550) | (4,545) | |
Net investment in operating leases before allowance for credit losses | 27,273 | 25,128 | |
Allowance for credit losses | (64) | (49) | $ (38) |
Net investment in operating leases | 27,209 | 25,079 | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |||
2,017 | 4,349 | ||
2,018 | 2,750 | ||
2,019 | 949 | ||
2,020 | 66 | ||
2,021 | 5 | ||
Securitization Transactions [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Net investment in operating leases | 11,800 | 13,300 | |
Affiliated Entity [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Related Party Transaction, Deferred Interest Supplements and Residual Support Payments on Net Investment in Operating Leases | 2,500 | 2,400 | |
Related Party Transaction, Earned Interest Supplements and Residual Support Costs, Net Investment in Operating Lease | 1,900 | 1,500 | 1,300 |
Related Party Transactions, Cash Received and Interest Supplements, Net Investment in Operating Lease | 2,000 | 1,900 | 1,800 |
Net investment in leased vehicles-Employee and company vehicles | 907 | 652 | |
Operating lease revenue on employee leased vehicles | $ 302 | $ 284 | $ 259 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Term To Charge Off Finance Receivables | greater than 120 days past due | ||||||||||
Number Of Days At Which Finance Receivables Impaired | when an account is deemed to be uncollectible or when an account is 120 days delinquent | ||||||||||
Allowance for credit losses, finance receivables | |||||||||||
Beginning balance | $ 373 | $ 321 | $ 373 | $ 321 | |||||||
Charge-offs | (443) | (336) | |||||||||
Recoveries | 122 | 126 | |||||||||
Provision for credit losses | 438 | 274 | |||||||||
Other | (6) | (12) | |||||||||
Ending balance | $ 484 | $ 373 | 484 | 373 | $ 321 | ||||||
Analysis of ending balance of allowance for credit losses, finance receivables | |||||||||||
Collective impairment allowance | 463 | 350 | 463 | 350 | |||||||
Specific impairment allowance | 21 | 23 | 21 | 23 | |||||||
Ending balance | 484 | 373 | 484 | 373 | 321 | ||||||
Analysis of ending balance of finance receivables | |||||||||||
Collectively evaluated for impairment | 102,991 | 96,687 | 102,991 | 96,687 | |||||||
Specifically evaluated for impairment | 474 | 509 | 474 | 509 | |||||||
Financing Receivables | 103,465 | 97,196 | 103,465 | 97,196 | |||||||
Allowance for credit losses, net investment in operating leases | |||||||||||
Beginning balance | 49 | 38 | 49 | 38 | |||||||
Charge-offs | (175) | (123) | |||||||||
Recoveries | 81 | 62 | |||||||||
Other | 0 | (1) | |||||||||
Ending balance | 64 | 49 | 64 | 49 | 38 | ||||||
Analysis of ending balance of allowance for credit losses, net investment in operating leases | |||||||||||
Collective impairment allowance | 64 | 49 | 64 | 49 | |||||||
Specific impairment allowance | 0 | 0 | 0 | 0 | |||||||
Ending balance | 64 | 49 | 64 | 49 | 38 | ||||||
Analysis of ending balance of net investment in operating leases | |||||||||||
Collectively evaluated for impairment | 27,273 | 25,128 | 27,273 | 25,128 | |||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | |||||||
Net investment in operating leases before allowance for credit losses | 27,273 | 25,128 | 27,273 | 25,128 | |||||||
Total allowance | |||||||||||
Beginning balance | 422 | 359 | 422 | 359 | |||||||
Charge-offs | (618) | (459) | |||||||||
Recoveries | 203 | 188 | |||||||||
Provision for credit losses | 144 | $ 138 | $ 137 | 128 | 108 | $ 100 | $ 72 | 67 | 547 | 347 | 197 |
Other | (6) | (13) | |||||||||
Ending balance | 548 | 422 | 548 | 422 | 359 | ||||||
Analysis of Ending Balance of Finance Receivables and Net Investment in Operating Leases [Abstract] | |||||||||||
Collective impairment allowance | 527 | 399 | 527 | 399 | |||||||
Specific impairment allowance | 21 | 23 | 21 | 23 | |||||||
Ending balance | 548 | 422 | 548 | 422 | 359 | ||||||
Ending balance, net of allowance for credit losses | 102,981 | 96,823 | 102,981 | 96,823 | |||||||
Ending balance, net investment in operating leases | 27,209 | 25,079 | 27,209 | 25,079 | |||||||
Net Investment in Operating Leases [Member] | |||||||||||
Allowance for credit losses, finance receivables | |||||||||||
Provision for credit losses | 109 | 73 | |||||||||
Consumer Segment [Member] | |||||||||||
Allowance for credit losses, finance receivables | |||||||||||
Beginning balance | 357 | 305 | 357 | 305 | |||||||
Charge-offs | (435) | (333) | |||||||||
Recoveries | 116 | 120 | |||||||||
Provision for credit losses | 436 | 276 | |||||||||
Other | (5) | (11) | |||||||||
Ending balance | 469 | 357 | 469 | 357 | 305 | ||||||
Analysis of ending balance of allowance for credit losses, finance receivables | |||||||||||
Collective impairment allowance | 450 | 338 | 450 | 338 | |||||||
Specific impairment allowance | 19 | 19 | 19 | 19 | |||||||
Ending balance | 469 | 357 | 469 | 357 | 305 | ||||||
Analysis of ending balance of finance receivables | |||||||||||
Collectively evaluated for impairment | 64,971 | 59,574 | 64,971 | 59,574 | |||||||
Specifically evaluated for impairment | 367 | 375 | 367 | 375 | |||||||
Financing Receivables | 65,338 | 59,949 | 65,338 | 59,949 | |||||||
Analysis of Ending Balance of Finance Receivables and Net Investment in Operating Leases [Abstract] | |||||||||||
Ending balance, net of allowance for credit losses | 64,869 | 59,592 | 64,869 | 59,592 | |||||||
Non-Consumer Segment [Member] | |||||||||||
Allowance for credit losses, finance receivables | |||||||||||
Beginning balance | $ 16 | $ 16 | 16 | 16 | |||||||
Charge-offs | (8) | (3) | |||||||||
Recoveries | 6 | 6 | |||||||||
Provision for credit losses | 2 | (2) | |||||||||
Other | (1) | (1) | |||||||||
Ending balance | 15 | 16 | 15 | 16 | 16 | ||||||
Analysis of ending balance of allowance for credit losses, finance receivables | |||||||||||
Collective impairment allowance | 13 | 12 | 13 | 12 | |||||||
Specific impairment allowance | 2 | 4 | 2 | 4 | |||||||
Ending balance | 15 | 16 | 15 | 16 | $ 16 | ||||||
Analysis of ending balance of finance receivables | |||||||||||
Collectively evaluated for impairment | 38,020 | 37,113 | 38,020 | 37,113 | |||||||
Specifically evaluated for impairment | 107 | 134 | 107 | 134 | |||||||
Financing Receivables | 38,127 | 37,247 | 38,127 | 37,247 | |||||||
Analysis of Ending Balance of Finance Receivables and Net Investment in Operating Leases [Abstract] | |||||||||||
Ending balance, net of allowance for credit losses | $ 38,112 | $ 37,231 | $ 38,112 | $ 37,231 |
Transfers of Receivables - Asse
Transfers of Receivables - Assets and Liabilities of Securitizations (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Securitization Transactions [Line Items] | ||||
Cash and cash equivalents | $ 8,077 | $ 8,886 | $ 6,179 | $ 9,424 |
Allowance for Credit Losses | 548 | 422 | 359 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 130,190 | 121,902 | $ 108,433 | |
Related Debt | $ 126,492 | 119,601 | ||
Finance Receivables Classification [Abstract] | ||||
Threshold of whether it is probable that finance receivables will be held for the foreseeable future | 70.00% | |||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Securitization Transactions [Line Items] | ||||
Cash and cash equivalents | $ 3,047 | 3,949 | ||
Related Debt | 43,730 | 43,086 | ||
Securitization Transactions [Member] | Consolidated Entity Including Variable Interest Entities (VIE) [Member] | ||||
Securitization Transactions [Line Items] | ||||
Cash and cash equivalents | 3,400 | 4,300 | ||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 70,300 | 67,000 | ||
Allowance for Credit Losses | 200 | 100 | ||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 70,100 | 66,900 | ||
Related Debt | 50,400 | 50,000 | ||
Securitization Transactions [Member] | Consolidated Entity Including Variable Interest Entities (VIE) [Member] | Financing Receivable [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 | 58,500 | 53,700 | ||
Allowance for Credit Losses | 200 | 100 | ||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 58,300 | 53,600 | ||
Related Debt | 43,000 | 41,100 | ||
Securitization Transactions [Member] | Consolidated Entity Including Variable Interest Entities (VIE) [Member] | Retail [Member] | ||||
Securitization Transactions [Line Items] | ||||
Cash and cash equivalents | 1,900 | 1,800 | ||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 32,500 | 27,600 | ||
Allowance for Credit Losses | 200 | 100 | ||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 32,300 | 27,500 | ||
Related Debt | 28,800 | 25,000 | ||
Securitization Transactions [Member] | Consolidated Entity Including Variable Interest Entities (VIE) [Member] | Wholesale [Member] | ||||
Securitization Transactions [Line Items] | ||||
Cash and cash equivalents | 1,000 | 2,000 | ||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 26,000 | 26,100 | ||
Allowance for Credit Losses | 0 | 0 | ||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 26,000 | 26,100 | ||
Related Debt | 14,200 | 16,100 | ||
Securitization Transactions [Member] | Consolidated Entity Including Variable Interest Entities (VIE) [Member] | Net Investment in Operating Leases [Member] | ||||
Securitization Transactions [Line Items] | ||||
Cash and cash equivalents | 500 | 500 | ||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 11,800 | 13,300 | ||
Allowance for Credit Losses | 0 | 0 | ||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 11,800 | 13,300 | ||
Related Debt | 7,400 | 8,900 | ||
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Securitization Transactions [Line Items] | ||||
Cash and cash equivalents | 3,000 | 3,900 | ||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 62,900 | 59,300 | ||
Allowance for Credit Losses | 200 | 100 | ||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 62,700 | 59,200 | ||
Related Debt | 43,700 | 43,100 | ||
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Financing Receivable [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 | 51,100 | 46,000 | ||
Allowance for Credit Losses | 200 | 100 | ||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 50,900 | 45,900 | ||
Related Debt | 36,300 | 34,200 | ||
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Retail [Member] | ||||
Securitization Transactions [Line Items] | ||||
Cash and cash equivalents | 1,500 | 1,400 | ||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 25,900 | 20,900 | ||
Allowance for Credit Losses | 200 | 100 | ||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 25,700 | 20,800 | ||
Related Debt | 22,700 | 18,900 | ||
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Wholesale [Member] | ||||
Securitization Transactions [Line Items] | ||||
Cash and cash equivalents | 1,000 | 2,000 | ||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 25,200 | 25,100 | ||
Allowance for Credit Losses | 0 | 0 | ||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 25,200 | 25,100 | ||
Related Debt | 13,600 | 15,300 | ||
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Net Investment in Operating Leases [Member] | ||||
Securitization Transactions [Line Items] | ||||
Cash and cash equivalents | 500 | 500 | ||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 11,800 | 13,300 | ||
Allowance for Credit Losses | 0 | 0 | ||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 11,800 | 13,300 | ||
Related Debt | 7,400 | 8,900 | ||
Securitization Transactions [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | ||||
Securitization Transactions [Line Items] | ||||
Cash and cash equivalents | 400 | 400 | ||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 7,400 | 7,700 | ||
Allowance for Credit Losses | 0 | 0 | ||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 7,400 | 7,700 | ||
Related Debt | 6,700 | 6,900 | ||
Securitization Transactions [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [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 | 7,400 | 7,700 | ||
Allowance for Credit Losses | 0 | 0 | ||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 7,400 | 7,700 | ||
Related Debt | 6,700 | 6,900 | ||
Securitization Transactions [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [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 | 6,600 | 6,700 | ||
Allowance for Credit Losses | 0 | 0 | ||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 6,600 | 6,700 | ||
Related Debt | 6,100 | 6,100 | ||
Securitization Transactions [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [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 | 800 | 1,000 | ||
Allowance for Credit Losses | 0 | 0 | ||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 800 | 1,000 | ||
Related Debt | 600 | 800 | ||
Securitization Transactions [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [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 |
Transfers of Receivables - Fina
Transfers of Receivables - Financial Performance Related to Securitizations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Securitization Transactions [Line Items] | |||||||||||
Interest expense | $ 725 | $ 697 | $ 687 | $ 646 | $ 597 | $ 582 | $ 599 | $ 638 | $ 2,755 | $ 2,416 | $ 2,656 |
Securitization Transactions [Member] | |||||||||||
Securitization Transactions [Line Items] | |||||||||||
Interest expense | 773 | 630 | 595 | ||||||||
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||||||||||
Securitization Transactions [Line Items] | |||||||||||
Interest expense | 671 | 541 | 504 | ||||||||
Securitization Transactions [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | |||||||||||
Securitization Transactions [Line Items] | |||||||||||
Interest expense | $ 102 | $ 89 | $ 91 |
Transfers of Receivables - Expo
Transfers of Receivables - Exposure Based on Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Securitization Transactions [Line Items] | ||
Fair Value of Derivative Assets | $ 909 | $ 924 |
Fair Value of Derivative Liabilities | 166 | 243 |
Securitization Transactions [Member] | ||
Securitization Transactions [Line Items] | ||
Fair Value of Derivative Assets | 57 | 116 |
Fair Value of Derivative Liabilities | 27 | 48 |
Related to Variable Interest Entity - Not VIE [Member] | Securitization Transactions [Member] | ||
Securitization Transactions [Line Items] | ||
Fair Value of Derivative Assets | 11 | 19 |
Fair Value of Derivative Liabilities | 21 | 29 |
Other, Not Variable Interest Entity Related [Member] | Securitization Transactions [Member] | ||
Securitization Transactions [Line Items] | ||
Fair Value of Derivative Assets | 21 | 12 |
Fair Value of Derivative Liabilities | 1 | 0 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Securitization Transactions [Line Items] | ||
Fair Value of Derivative Assets | 25 | 85 |
Fair Value of Derivative Liabilities | 5 | 19 |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | ||
Securitization Transactions [Line Items] | ||
Fair Value of Derivative Assets | 25 | 85 |
Fair Value of Derivative Liabilities | $ 5 | $ 19 |
Transfers of Receivables - Deri
Transfers of Receivables - Derivative Income and Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative expense/(income) related to securitization transactions [Abstract] | |||
Derivative expense/(income) | $ (939) | $ (481) | $ (512) |
Securitization Transactions [Member] | |||
Derivative expense/(income) related to securitization transactions [Abstract] | |||
Derivative expense/(income) | 29 | (2) | (4) |
Securitization Transactions [Member] | Related to Variable Interest Entity - Not VIE [Member] | |||
Derivative expense/(income) related to securitization transactions [Abstract] | |||
Derivative expense/(income) | (4) | 12 | (16) |
Securitization Transactions [Member] | Other, Not Variable Interest Entity Related [Member] | |||
Derivative expense/(income) related to securitization transactions [Abstract] | |||
Derivative expense/(income) | 10 | 18 | 21 |
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Derivative expense/(income) related to securitization transactions [Abstract] | |||
Derivative expense/(income) | $ 23 | $ (32) | $ (9) |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Cash Collateral to Support Wholesale Transactions | $ 0 | $ 0 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Total maximum exposure | 68 | 66 |
Minimum [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Cash Contribution Collateral to Support Wholesale Securitization Program | 0 | 0 |
Maximum [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Cash Contribution Collateral to Support Wholesale Securitization Program | $ 12 | $ 72 |
Derivative Financial Instrume55
Derivative Financial Instruments and Hedging Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Gain (Loss) on Derivative, Net | $ 939 | $ 481 | $ 512 |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Notional | 99,856 | 96,452 | |
Fair Value of Derivative Assets | 909 | 924 | |
Fair Value of Derivative Liabilities | 166 | 243 | |
Derivative, Collateral, Obligation to Return Cash | 3 | 0 | |
Derivative Asset, Not Offset, Policy Election Deduction | 113 | 167 | |
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Income Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Gain (Loss) on Derivative, Net | (9) | (58) | (41) |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Notional | 61,689 | 62,638 | |
Interest Rate Contract [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | |||
Income Effect of Derivative Financial Instruments [Abstract] | |||
Net interest settlements and accruals excluded from the assessment of hedge effectiveness | 367 | 370 | 304 |
Ineffectiveness | 4 | 3 | 20 |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (120) | 72 | 407 |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 124 | (69) | (387) |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Notional | 33,175 | 28,964 | |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Income Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Gain (Loss) on Derivative, Net | 179 | 66 | 68 |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Notional | 1,791 | 1,713 | |
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 | 398 | 100 | 161 |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Notional | 3,201 | 3,137 | |
Affiliated Entity [Member] | |||
Income Effect of Derivative Financial Instruments [Abstract] | |||
Gains/(Losses) from derivative transactions | 210 | 66 | $ 68 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 156 | 159 | |
Fair Value of Derivative Liabilities | 74 | 112 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | |||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 487 | 670 | |
Fair Value of Derivative Liabilities | 80 | 16 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 24 | 22 | |
Fair Value of Derivative Liabilities | 4 | 4 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 242 | 73 | |
Fair Value of Derivative Liabilities | $ 8 | $ 111 |
Other Assets and Other Liabil56
Other Assets and Other Liabilities and Deferred Income (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Other Assets [Abstract] | ||
Accrued interest and other non-finance receivables | $ 889 | $ 763 |
Collateral held for resale, at net realizable value | 621 | 498 |
Prepaid reinsurance premiums and other reinsurance receivables | 546 | 472 |
Deferred charges - income taxes | 205 | 135 |
Property and equipment, net of accumulated depreciation | 156 | 142 |
Investment in non-consolidated affiliates | 153 | 133 |
Deferred charges | 122 | 63 |
Restricted cash | 108 | 56 |
Other | 22 | 24 |
Total other assets | 2,822 | 2,286 |
Accumulated depreciation | 347 | 335 |
Other Liabilities and Deferred Income [Abstract] | ||
Interest payable | 661 | 553 |
Unearned insurance premiums | 556 | 484 |
Tax Related payables to Ford and affiliated companies | 96 | 105 |
Unrecognized Tax Benefits, Other Liabilities | 65 | 75 |
Other | 619 | 448 |
Total other liabilities and deferred income | $ 1,997 | $ 1,665 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total short-term debt | $ 15,359 | $ 12,211 |
Notes payable after one year | 79,420 | 78,062 |
Unamortized discount | (8) | (25) |
Unamortized debt issuance costs | (212) | (214) |
Fair value adjustments | 278 | 458 |
Total long-term debt | 111,133 | 107,390 |
Total debt | $ 126,492 | $ 119,601 |
Average Contractual (interest rate) | 2.40% | 2.20% |
Average Effective (interest rate) | 2.40% | 2.30% |
Accrued interest included in fair value of debt | $ 658 | $ 550 |
Fair value of short-term debt | 14,300 | 10,400 |
Fixed Interest Rate [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable after one year | 56,684 | 54,396 |
Variable Interest Rate [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable after one year | 22,736 | 23,666 |
Floating Rate Demand Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 5,986 | 5,926 |
Unsecured commercial paper [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 4,507 | 1,722 |
Other short-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 3,803 | 2,708 |
Asset-backed Securities [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 1,063 | 1,855 |
Notes payable within one year | 19,286 | 18,855 |
Notes payable after one year | 30,112 | $ 29,390 |
Total debt | $ 50,461 | |
Total short-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Average Contractual (interest rate) | 2.30% | 1.60% |
Average Effective (interest rate) | 2.30% | 1.60% |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable within one year | $ 12,369 | $ 10,254 |
Notes payable after one year | 49,308 | $ 48,672 |
Total debt | $ 75,973 | |
Total long-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Average Contractual (interest rate) | 2.40% | 2.30% |
Average Effective (interest rate) | 2.50% | 2.40% |
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 128,001 | $ 120,546 |
Debt with Affiliated Companies
Debt with Affiliated Companies (Details) - Affiliated Entity [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Other short-term debt | $ 29 | $ 88 | |
Notes payable within one year | 0 | 13 | |
Notes payable after one year | 0 | 83 | |
Debt with affiliated companies | 29 | 184 | |
Interest Expense, Related Party | $ 4 | $ 19 | $ 25 |
Debt Maturities (Details)
Debt Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Maturities [Abstract] | ||
2,017 | $ 47,014 | |
2,018 | 24,503 | |
2,019 | 20,860 | |
2,020 | 11,752 | |
2,021 | 11,424 | |
Thereafter | 10,881 | |
DebtAndCapitalLeaseObligationTotal | 126,434 | |
Total debt | 126,492 | $ 119,601 |
Total unamortized discount | (8) | (25) |
Unamortized debt issuance costs | (212) | (214) |
Total fair value adjustments | 278 | $ 458 |
Unsecured Debt [Member] | ||
Debt Maturities [Abstract] | ||
2,017 | 26,665 | |
2,018 | 12,374 | |
2,019 | 11,135 | |
2,020 | 6,843 | |
2,021 | 9,125 | |
Thereafter | 9,831 | |
Total debt | 75,973 | |
Asset-backed Securities [Member] | ||
Debt Maturities [Abstract] | ||
2,017 | 20,349 | |
2,018 | 12,129 | |
2,019 | 9,725 | |
2,020 | 4,909 | |
2,021 | 2,299 | |
Thereafter | 1,050 | |
Total debt | 50,461 | |
Short-term debt [Member] | ||
Debt Maturities [Abstract] | ||
2,017 | 15,359 | |
Long-term debt [Member] | ||
Debt Maturities [Abstract] | ||
2,017 | 31,655 | |
Unsecured Debt Maturing Primarily by 2024 [Member] | ||
Debt Maturities [Abstract] | ||
Thereafter | $ 9,828 |
Debt - Credit Facilties and Com
Debt - Credit Facilties and Committed Liquidity Programs (Details) £ in Millions, $ in Millions | Dec. 31, 2016USD ($) | Dec. 31, 2016GBP (£) |
FCE Bank plc [Member] | ||
Schedule Of Debt [Line Items] | ||
Debt Covenant Minimum Net Worth Requirement | $ 500 | |
Ford Motor Company [Member] | ||
Schedule Of Debt [Line Items] | ||
Borrowing capacity under credit facilities | 3,000 | |
Unsecured Debt [Member] | ||
Schedule Of Debt [Line Items] | ||
Borrowing capacity under credit facilities | 5,500 | |
Borrowing availability | 4,800 | |
Syndicated Credit Facility [Member] | FCE Bank plc [Member] | ||
Schedule Of Debt [Line Items] | ||
Borrowing capacity under credit facilities | 1,200 | £ 990 |
Borrowing availability | 850 | £ 690 |
Revolving Credit Facility [Member] | ||
Schedule Of Debt [Line Items] | ||
Borrowing availability | 3,000 | |
Revolving Credit Facility [Member] | Ford Motor Company [Member] | ||
Schedule Of Debt [Line Items] | ||
Borrowing capacity under credit facilities | $ 13,400 | |
Revolving Credit Facility [Member] | Ford Motor Company [Member] | Committments maturing by 2019 [Member] | ||
Schedule Of Debt [Line Items] | ||
Line of Credit, Percent Maturing | 75.00% | 75.00% |
Revolving Credit Facility [Member] | Ford Motor Company [Member] | Commitments maturing by 2017 [Member] | ||
Schedule Of Debt [Line Items] | ||
Line of Credit, Percent Maturing | 25.00% | 25.00% |
Contractually Committed Liquidity Facilities [Member] | ||
Schedule Of Debt [Line Items] | ||
Commitment To Sell Commercial Paper Conduits Maximum | $ 34,600 | |
Commitment To Sell Commercial Paper Conduits Current | 17,500 | |
Commitment To Sell Commercial Paper Conduits Utilized | 19,900 | |
Operating Lease [Member] | Contractually Committed Liquidity Facilities [Member] | ||
Schedule Of Debt [Line Items] | ||
Commitment To Sell Commercial Paper Conduits Maximum | 10,300 | |
Retail [Member] | Contractually Committed Liquidity Facilities [Member] | ||
Schedule Of Debt [Line Items] | ||
Commitment To Sell Commercial Paper Conduits Maximum | 18,200 | |
Wholesale [Member] | Contractually Committed Liquidity Facilities [Member] | ||
Schedule Of Debt [Line Items] | ||
Commitment To Sell Commercial Paper Conduits Maximum | $ 6,100 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current [Abstract] | |||
Federal | $ (41) | $ (454) | $ (198) |
Non-U.S. | 222 | 161 | 154 |
State and local | (15) | (26) | (38) |
Total current | 166 | (319) | (82) |
Deferred [Abstract] | |||
Federal | 284 | 893 | 193 |
Non-U.S. | 1 | 93 | (6) |
State and local | 55 | 56 | 44 |
Total deferred | 340 | 1,042 | 231 |
Provision for income taxes | $ 506 | $ 723 | $ 149 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
U.S. statutory tax rate | 35.00% | 35.00% | 35.00% |
Non-U.S. tax rates under U.S. rate | (3.80%) | (3.00%) | (3.00%) |
State and local income taxes | 1.30% | 1.00% | (0.20%) |
Effective Income Tax Rate Reconciliation Foreign Operations Taxed in United States | (4.90%) | 0.20% | (21.40%) |
Other | (0.70%) | (0.20%) | (2.40%) |
Valuation allowance | 0.00% | 1.70% | 0.00% |
Effective tax rate | 26.90% | 34.70% | 8.00% |
Effective Income Tax Rate Reconciliation, Tax Credit, Foreign, Amount | $ 360 | ||
Undistributed Foreign Earnings, Deferred Taxes Not Provided | $ 3,200 | ||
Potential Deferred Tax Liability Undistributed Foreign Earnings | 700 | ||
Deferred tax assets [Abstract] | |||
Net operating loss carryforwards | 1,207 | $ 540 | |
Provision for credit losses | 191 | 87 | |
Other foreign | 83 | 75 | |
Employee benefit plans | 34 | 10 | |
Foreign tax credits | 803 | 756 | |
Other | 89 | 280 | |
Total gross deferred tax assets | 2,407 | 1,748 | |
Less: valuation allowance | (42) | (47) | |
Total net deferred tax assets | 2,365 | 1,701 | |
Deferred tax liabilities [Abstract] | |||
Leasing transactions | 4,479 | 3,338 | |
Finance receivables | 594 | 688 | |
Other foreign | 303 | 330 | |
Other | 14 | 18 | |
Total deferred tax liabilities | 5,390 | 4,374 | |
Net deferred tax liability | 3,025 | 2,673 | |
Amount of valuation allowance released | 42 | ||
Operating Loss Carryforwards | 3,600 | ||
Net operating loss carryforwards | 1,207 | 540 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at January 1 | 91 | 111 | 159 |
Increase - tax positions in prior years | 2 | 9 | 28 |
Increases - tax positions in current year | 0 | 1 | 1 |
Decrease - tax positions in prior years | (1) | (22) | (44) |
Settlements | (12) | (8) | (33) |
Balance at December 31 | 80 | 91 | 111 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 69 | 76 | 88 |
Unrecognized Tax Benefits Interest Income | 8 | 3 | |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | $ 13 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 11 | $ 37 |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cumulative Translation Adjustment Summary [Roll Forward] | |||
Beginning balance | $ (607) | $ 160 | $ 717 |
Net gain/(loss) on Foreign Currency Transaction | (283) | (767) | (547) |
Ending balance | (890) | (607) | 160 |
Total AOCI ending balance at December 31 | (890) | (607) | 160 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax [Abstract] | |||
Net gain/(loss) on foreign currency translation, tax adjustment | 0 | 0 | 0 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Cumulative Translation Adjustment Summary [Roll Forward] | |||
Other Comprehensive Income/(Loss), Net of Tax | (283) | (767) | (557) |
Affiliated Entity [Member] | |||
Cumulative Translation Adjustment Summary [Roll Forward] | |||
Net gain/(loss) on Foreign Currency Transaction | 0 | 0 | (10) |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax [Abstract] | |||
Net gain/(loss) on foreign currency translation, tax adjustment | $ 0 | $ 0 | $ 0 |
Insurance (Details)
Insurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statutory Accounting Practices [Line Items] | |||
Cash and cash equivalents | $ 99 | $ 210 | |
Marketable securities | 475 | 369 | |
Total cash, cash equivalents, and marketable securities | 574 | 579 | |
Assets Held by Insurance Regulators | 12 | 12 | |
Prepaid Reinsurance Premiums and Other Reinsurance Receivables | 546 | 472 | |
Premiums Written and Earned [Abstract] | |||
Direct premiums written | 371 | 328 | $ 293 |
Assumed premiums written | 0 | 0 | 0 |
Ceded premiums written | (215) | (194) | (166) |
Net premiums written | 156 | 134 | 127 |
Direct premiums earned | 298 | 254 | 230 |
Assumed premiums earned | 0 | 0 | 0 |
Ceded premiums earned | (142) | (121) | (105) |
Premiums Earned, Net | 156 | 133 | 125 |
Insurance Expenses [Abstract] | |||
Insurance losses | 146 | 80 | 115 |
Loss adjustment expenses | 5 | 5 | 6 |
Reinsurance Income and Other Expenses, Net | (26) | (16) | (14) |
Insurance expenses | 125 | 69 | 107 |
Unearned Premiums | 556 | 484 | |
Liability for reported insurance claims and estimate of unreported claims | 6 | 8 | |
Ceded insurance expenses | 95 | 76 | 68 |
Affiliated Entity [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Earned insurance premiums | 133 | 90 | 75 |
Insurance loss and loss adjustment expenses | 55 | 36 | $ 30 |
Affiliated Entity [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Related Party Transaction, Unearned Insurance Premium | $ 91 | $ 176 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Component of Other Income, Nonoperating [Line Items] | |||
Gains/(Losses) on derivatives | $ 575 | $ 110 | $ 208 |
Currency revaluation gains/(losses) | (575) | (161) | (236) |
Interest and investment income | 85 | 69 | 53 |
Insurance fee income | 90 | 88 | 74 |
Other | 155 | 178 | 166 |
Total other income, net | 330 | 284 | 265 |
Affiliated Entity [Member] | |||
Component of Other Income, Nonoperating [Line Items] | |||
Related Party Transaction, Interest Income, Notes Receivable, Tax Sharing Agreement | $ 5 | $ 3 | $ 5 |
Retirement Benefits (Details)
Retirement Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Allocated Service Cost | $ 125 | $ 86 | $ 71 |
Defined Contribution Plan, Cost Recognized | 5 | 4 | 4 |
Other Postretirement Benefit Expense | $ 3 | $ 4 | $ 4 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 2,817 | $ 2,796 | $ 2,688 | $ 2,608 | $ 2,599 | $ 2,478 | $ 2,338 | $ 2,282 | $ 10,909 | $ 9,697 | $ 8,996 |
Income before income taxes | 1,879 | 2,086 | 1,854 | ||||||||
Other disclosures [Abstract] | |||||||||||
Depreciation on vehicles subject to operating leases | 1,155 | 1,085 | 1,075 | 1,014 | 1,010 | 956 | 858 | 816 | 4,329 | 3,640 | 3,088 |
Interest expense | 725 | 697 | 687 | 646 | 597 | 582 | 599 | 638 | 2,755 | 2,416 | 2,656 |
Provision for credit losses | 144 | $ 138 | $ 137 | $ 128 | 108 | $ 100 | $ 72 | $ 67 | 547 | 347 | 197 |
Net finance receivables and net investment in operating leases | 130,190 | 121,902 | 130,190 | 121,902 | 108,433 | ||||||
Total assets | 146,089 | 137,448 | 146,089 | 137,448 | 122,108 | ||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 10,840 | 9,698 | 9,002 | ||||||||
Income before income taxes | 1,810 | 2,087 | 1,860 | ||||||||
Other disclosures [Abstract] | |||||||||||
Depreciation on vehicles subject to operating leases | 4,329 | 3,640 | 3,088 | ||||||||
Interest expense | 2,755 | 2,416 | 2,656 | ||||||||
Provision for credit losses | 547 | 347 | 197 | ||||||||
Net finance receivables and net investment in operating leases | 136,865 | 127,232 | 136,865 | 127,232 | 112,783 | ||||||
Total assets | 146,089 | 137,448 | 146,089 | 137,448 | 122,108 | ||||||
Operating Segments [Member] | Americas [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 9,505 | 8,386 | 7,657 | ||||||||
Income before income taxes | 1,511 | 1,763 | 1,509 | ||||||||
Other disclosures [Abstract] | |||||||||||
Depreciation on vehicles subject to operating leases | 4,291 | 3,603 | 3,045 | ||||||||
Interest expense | 2,301 | 1,931 | 2,119 | ||||||||
Provision for credit losses | 494 | 309 | 176 | ||||||||
Net finance receivables and net investment in operating leases | 113,335 | 104,497 | 113,335 | 104,497 | 92,484 | ||||||
Total assets | 119,012 | 111,147 | 119,012 | 111,147 | 98,093 | ||||||
Operating Segments [Member] | Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 984 | 982 | 1,071 | ||||||||
Income before income taxes | 238 | 297 | 338 | ||||||||
Other disclosures [Abstract] | |||||||||||
Depreciation on vehicles subject to operating leases | 38 | 37 | 43 | ||||||||
Interest expense | 278 | 294 | 356 | ||||||||
Provision for credit losses | 29 | 16 | 15 | ||||||||
Net finance receivables and net investment in operating leases | 18,846 | 18,947 | 18,846 | 18,947 | 17,036 | ||||||
Total assets | 21,755 | 22,085 | 21,755 | 22,085 | 20,439 | ||||||
Operating Segments [Member] | Asia Pacific [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 351 | 330 | 274 | ||||||||
Income before income taxes | 61 | 27 | 13 | ||||||||
Other disclosures [Abstract] | |||||||||||
Depreciation on vehicles subject to operating leases | 0 | 0 | 0 | ||||||||
Interest expense | 176 | 191 | 181 | ||||||||
Provision for credit losses | 24 | 22 | 6 | ||||||||
Net finance receivables and net investment in operating leases | 4,684 | 3,788 | 4,684 | 3,788 | 3,263 | ||||||
Total assets | 5,322 | 4,216 | 5,322 | 4,216 | 3,576 | ||||||
Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 69 | (1) | (6) | ||||||||
Income before income taxes | 69 | (1) | (6) | ||||||||
Other disclosures [Abstract] | |||||||||||
Depreciation on vehicles subject to operating leases | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Provision for credit losses | 0 | 0 | 0 | ||||||||
Net finance receivables and net investment in operating leases | (6,675) | (5,330) | (6,675) | (5,330) | (4,350) | ||||||
Total assets | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 2,817 | $ 2,796 | $ 2,688 | $ 2,608 | $ 2,599 | $ 2,478 | $ 2,338 | $ 2,282 | $ 10,909 | $ 9,697 | $ 8,996 |
Income before income taxes | 1,879 | 2,086 | 1,854 | ||||||||
Net finance receivables and net investment in operating leases | 130,190 | 121,902 | 130,190 | 121,902 | 108,433 | ||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 8,151 | 7,070 | 6,377 | ||||||||
Income before income taxes | 1,070 | 1,298 | 1,199 | ||||||||
Net finance receivables and net investment in operating leases | 93,254 | 88,237 | 93,254 | 88,237 | 76,578 | ||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 1,093 | 981 | 998 | ||||||||
Income before income taxes | 304 | 247 | 148 | ||||||||
Net finance receivables and net investment in operating leases | 12,168 | 10,037 | 12,168 | 10,037 | 10,449 | ||||||
All Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 1,665 | 1,646 | 1,621 | ||||||||
Income before income taxes | 505 | 541 | 507 | ||||||||
Net finance receivables and net investment in operating leases | $ 24,768 | $ 23,628 | $ 24,768 | $ 23,628 | $ 21,406 |
Selected Quarterly Financial 68
Selected Quarterly Financial Data (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 2,817 | $ 2,796 | $ 2,688 | $ 2,608 | $ 2,599 | $ 2,478 | $ 2,338 | $ 2,282 | $ 10,909 | $ 9,697 | $ 8,996 |
Depreciation on vehicles subject to operating leases | (1,155) | (1,085) | (1,075) | (1,014) | (1,010) | (956) | (858) | (816) | (4,329) | (3,640) | (3,088) |
Interest expense | (725) | (697) | (687) | (646) | (597) | (582) | (599) | (638) | (2,755) | (2,416) | (2,656) |
Total financing margin and other revenue | 937 | 1,014 | 926 | 948 | 992 | 940 | 881 | 828 | 3,825 | 3,641 | 3,252 |
Provision for credit losses | 144 | 138 | 137 | 128 | 108 | 100 | 72 | 67 | 547 | 347 | 197 |
Net income | $ 333 | $ 386 | $ 296 | $ 358 | $ 352 | $ 365 | $ 340 | $ 306 | $ 1,373 | $ 1,363 | $ 1,705 |
Commitments and Contingencies69
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Minimum rentals on operating leases [Abstract] | |||
2,016 | $ 18 | ||
2,017 | 11 | ||
2,018 | 8 | ||
2,019 | 6 | ||
2,020 | 4 | ||
Thereafter | 8 | ||
Rent expense | 26 | $ 27 | $ 26 |
Guarantor Obligations, Current Carrying Value | 0 | 0 | |
Financial Guarantee [Member] | |||
Minimum rentals on operating leases [Abstract] | |||
Maximum potential payments | 35 | 80 | |
Counter Guarantee [Member] | Ford Motor Company [Member] | |||
Minimum rentals on operating leases [Abstract] | |||
Counter guarantee | $ 31 | $ 74 |