Document and Entity Information
Document and Entity Information Document | 9 Months Ended |
Sep. 30, 2017USD ($)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 | 10-Q |
Document Period End Date | Sep. 30, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q3 |
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 | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Financing revenue | ||||
Operating leases | $ 1,394 | $ 1,409 | $ 4,141 | $ 4,115 |
Retail Financing | 891 | 780 | 2,518 | 2,273 |
Dealer Financing | 462 | 450 | 1,389 | 1,333 |
Other | 17 | 10 | 51 | 29 |
Total financing revenue | 2,764 | 2,649 | 8,099 | 7,750 |
Depreciation on vehicles subject to operating leases | (989) | (1,085) | (3,090) | (3,174) |
Interest expense | (810) | (697) | (2,308) | (2,030) |
Net financing margin | 965 | 867 | 2,701 | 2,546 |
Other revenue | ||||
Insurance premiums earned | 38 | 38 | 120 | 118 |
Fee based revenue and other | 61 | 0 | 177 | 0 |
Total financing margin and other revenue | 1,064 | 905 | 2,998 | 2,664 |
Expenses | ||||
Operating expenses | 324 | 287 | 930 | 891 |
Provision for credit losses | 169 | 138 | 420 | 403 |
Insurance expenses | 28 | 22 | 121 | 113 |
Total expenses | 521 | 447 | 1,471 | 1,407 |
Other income, net | 57 | 109 | 173 | 224 |
Income before income taxes | 600 | 567 | 1,700 | 1,481 |
Provision for income taxes | 186 | 181 | 507 | 441 |
Net income | $ 414 | $ 386 | $ 1,193 | $ 1,040 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income | $ 414 | $ 386 | $ 1,193 | $ 1,040 |
Other comprehensive income/(loss), net of tax | ||||
Foreign currency translation | 204 | (72) | 485 | (41) |
Total other comprehensive income/(loss), net of tax | 204 | (72) | 485 | (41) |
Comprehensive income (loss) | 618 | 314 | 1,678 | 999 |
Comprehensive income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Ford Motor Credit Company | $ 618 | $ 314 | $ 1,678 | $ 999 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 8,835 | $ 8,077 |
Marketable securities | 3,101 | 3,280 |
Finance receivables, net | 110,597 | 102,981 |
Net investment in operating leases | 26,931 | 27,209 |
Notes and accounts receivable from affiliated companies | 957 | 811 |
Derivative financial instruments | 982 | 909 |
Other assets | 3,075 | 2,822 |
Total assets | 154,478 | 146,089 |
Liabilities | ||
Customer deposits, dealer reserves, and other | 1,236 | 1,065 |
Affiliated companies | 705 | 336 |
Total accounts payable | 1,941 | 1,401 |
Debt | 132,380 | 126,492 |
Deferred income taxes | 3,633 | 3,230 |
Derivative financial instruments | 420 | 166 |
Other liabilities and deferred income | 2,020 | 1,997 |
Total liabilities | 140,394 | 133,286 |
Shareholder's interest | ||
Shareholder's interest | 5,227 | 5,227 |
Accumulated other comprehensive income | (405) | (890) |
Retained earnings | 9,262 | 8,466 |
Total shareholder's interest attributable to Ford Motor Credit Company | 14,084 | 12,803 |
Shareholder's Interest Attributable to Noncontrolling Interest | 0 | 0 |
Total Shareholder's Interest | 14,084 | 12,803 |
Total liabilities and shareholder's interest | 154,478 | 146,089 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
ASSETS | ||
Cash and cash equivalents | 2,511 | 3,047 |
Finance receivables, net | 52,834 | 50,857 |
Net investment in operating leases | 9,908 | 11,761 |
Derivative financial instruments | 60 | 25 |
Liabilities | ||
Debt | 43,302 | 43,730 |
Derivative financial instruments | $ 2 | $ 5 |
Consolidated Statement of Share
Consolidated Statement of Shareholder's Interest - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Shareholder's Interest [Roll Forward] | ||||
Balance at beginning of period | $ 12,803 | $ 11,713 | ||
Shareholder's Interest Attributable to Noncontrolling Interest | 0 | 1 | ||
Total Shareholder's Interest | 12,803 | 11,714 | ||
Net income | $ 414 | $ 386 | 1,193 | 1,040 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1,193 | 1,040 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 485 | (41) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | 0 | ||
Other Comprehensive Income (Loss), Net of Tax | 204 | (72) | 485 | (41) |
Distributions | (406) | (1) | ||
Balance at end of period | 14,084 | 12,712 | 14,084 | 12,712 |
Shareholder's Interest Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 |
Total Shareholder's Interest | 14,084 | 12,712 | 14,084 | 12,712 |
Accounting Standards Update 2014-09 [Member] | ||||
Shareholder's Interest [Roll Forward] | ||||
Adoption of accounting standards | 9 | 9 | ||
Shareholder's Interest [Member] | ||||
Shareholder's Interest [Roll Forward] | ||||
Balance at beginning of period | 5,227 | 5,227 | ||
Net income | 0 | 0 | ||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | ||
Distributions | 0 | 0 | ||
Balance at end of period | 5,227 | 5,227 | 5,227 | 5,227 |
Shareholder's Interest [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Shareholder's Interest [Roll Forward] | ||||
Adoption of accounting standards | 0 | 0 | ||
Accumulated Other Comprehensive Income/(Loss) [Member] | ||||
Shareholder's Interest [Roll Forward] | ||||
Balance at beginning of period | (890) | (607) | ||
Net income | 0 | 0 | ||
Other Comprehensive Income (Loss), Net of Tax | 204 | (72) | 485 | (41) |
Distributions | 0 | 0 | ||
Balance at end of period | (405) | (648) | (405) | (648) |
Accumulated Other Comprehensive Income/(Loss) [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Shareholder's Interest [Roll Forward] | ||||
Adoption of accounting standards | 0 | 0 | ||
Retained Earnings [Member] | ||||
Shareholder's Interest [Roll Forward] | ||||
Balance at beginning of period | 8,466 | 7,093 | ||
Net income | 1,193 | 1,040 | ||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | ||
Distributions | (406) | 0 | ||
Balance at end of period | 9,262 | $ 8,133 | 9,262 | 8,133 |
Retained Earnings [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Shareholder's Interest [Roll Forward] | ||||
Adoption of accounting standards | 9 | 9 | ||
Parent [Member] | ||||
Shareholder's Interest [Roll Forward] | ||||
Distributions | (406) | 0 | ||
Parent [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Shareholder's Interest [Roll Forward] | ||||
Adoption of accounting standards | 9 | 9 | ||
Noncontrolling Interest [Member] | ||||
Shareholder's Interest [Roll Forward] | ||||
Distributions | 0 | $ (1) | ||
Noncontrolling Interest [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Shareholder's Interest [Roll Forward] | ||||
Adoption of accounting standards | $ 0 | $ 0 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities | ||
Net cash provided by/(used in) operating activities | $ 4,451 | $ 4,807 |
Cash flows from investing activities | ||
Purchases of finance receivables | (30,543) | (29,605) |
Collections of finance receivables | 27,254 | 24,174 |
Purchases of operating lease vehicles | (9,935) | (10,974) |
Liquidations of operating lease vehicles | 6,623 | 6,090 |
Net change in wholesale receivables and other short-duration receivables | 1,560 | 836 |
Purchases of marketable securities | (4,359) | (5,794) |
Proceeds from sales and maturities of marketable securities | 4,564 | 4,368 |
Settlements of derivatives | (48) | 8 |
All other investing activities | (20) | (152) |
Net cash provided by/(used in) investing activities | (4,904) | (11,049) |
Cash flows from financing activities | ||
Proceeds from issuances of long-term debt | 29,982 | 31,789 |
Principal payments on long-term debt | (30,291) | (29,499) |
Change in short-term debt, net | 1,709 | 905 |
Cash distributions to parent | (406) | 0 |
All other financing activities | (74) | (90) |
Net cash provided by/(used in) financing activities | 920 | 3,105 |
Effect of exchange rate changes on cash and cash equivalents | 291 | (74) |
Net increase/(decrease) in cash and cash equivalents | 758 | (3,211) |
Cash and cash equivalents at January 1 | 8,077 | 8,886 |
Net increase/(decrease) in cash and cash equivalents | 758 | (3,211) |
Cash and cash equivalents at September 30 | $ 8,835 | $ 5,675 |
Presentation
Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | PRESENTATION The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information, instructions to the Quarterly Report on Form 10-Q, and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited financial statements include all adjustments considered necessary for a fair statement of the results of operations and financial condition for interim periods for Ford Motor Credit Company LLC, its consolidated subsidiaries, and consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Results for interim periods should not be considered indicative of results for any other interim period or for the full year. Reference should be made to the financial statements contained in our Current Report on Form 8-K dated April 27, 2017 (“April 27, 2017 Form 8-K Report”). We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). We reclassified certain prior period amounts in our consolidated financial statements to conform to current year presentation. Forso Nordic AB. We hold a 50% interest in Forso Nordic AB (“Forso”), a joint venture with Credit Agricole Consumer Finance SA (“CACF”). Forso was established to support the sale of Ford vehicles in Denmark, Finland, Norway, and Sweden by providing retail and dealer financing in these markets. We have exercised our call option to purchase CACF’s shares in the joint venture, and as a result, effective August 23, 2017, we consolidated the joint venture for financial reporting purposes. The consolidated results are included in the Europe segment. Our Income before income taxes includes a $17 million loss, reflecting historical foreign currency translation, as a result of the consolidation. We measured the fair value of joint venture assets and liabilities at the date of consolidation and recognized $1.5 billion in assets (primarily finance receivables) and $1.3 billion in liabilities (primarily debt) on our balance sheet. We expect to finalize the purchase price of CACF’s shares during the fourth quarter of 2017. |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | ACCOUNTING POLICIES Provision for Income Taxes For interim tax reporting we estimate one single effective tax rate, which is applied to the year-to-date ordinary income/(loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. Adoption of New Accounting Standards Accounting Standard Update (“ASU”) 2014-09, Revenue - Revenue from Contracts with Customers. We have adopted the new accounting standard, ASC 606 Revenue from Contracts with Customers and all the related amendments as of January 1, 2017 using the modified retrospective method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Adoption of the new revenue standard resulted in changes to the timing of revenue recognition and in the reclassification between financial statement line items. Under the new standard, we recognize insurance commissions at the time of sale of the product or service to our customer; previously, such income was recognized over the life of the insurance contract. The new standard also provided additional clarity that resulted in reclassifications from Other income, net to a new financial statement line entitled Fee based revenue and other . We recognized the cumulative effect of initially applying the new standard as a $9 million increase to the opening balance of Retained earnings with the offset primarily reflected in Other assets . When compared to the previous standard, the impact of adopting the new standard was immaterial to Other assets and Retained earnings at September 30, 2017 and Net income for the periods ended September 30, 2017. Under the previous standard, amounts reported in Fee based revenue and other for the period ended September 30, 2017 would have been included in Other income, net . NOTE 2. ACCOUNTING POLICIES (Continued) We also adopted the following standards during 2017, none of which had a material impact to our financial statements or financial statement disclosures: Standard Effective Date 2017-05 Gains and Losses from the Derecognition of Nonfinancial Assets - Clarifying the Scope of Asset Derecognition Guidance January 1, 2017 2017-04 Goodwill and Other - Simplifying the Test for Goodwill Impairment January 1, 2017 2017-03 Accounting Changes and Error Corrections and Investments - Equity Method and Joint Ventures January 1, 2017 2017-01 Business Combinations - Clarifying the Definition of a Business January 1, 2017 2016-17 Consolidation - Interests Held through Related Parties That Are Under Common Control January 1, 2017 2016-09 Stock Compensation - Improvements to Employee Share-Based Payment Accounting January 1, 2017 2016-07 Equity Method and Joint Ventures - Simplifying the Transition to the Equity Method of Accounting January 1, 2017 2016-06 Derivatives and Hedging - Contingent Put and Call Options in Debt Instruments January 1, 2017 2016-05 Derivatives and Hedging - Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships January 1, 2017 2016-04 Extinguishments of Liabilities - Recognition of Breakage for Certain Prepaid Stored-Value Products January 1, 2017 2017-09 Stock Compensation - Scope of Modification Accounting April 1, 2017 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. 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 will adopt the new credit loss guidance by recognizing the cumulative effect of initially applying the new standard as an adjustment to the opening balance of Retained earnings . We anticipate adoption will increase the amount of expected credit losses reported in Finance Receivables, Net on our consolidated balance sheet and do not expect a material impact to our income statement. 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 the present U.S. GAAP standard 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. We plan to adopt the standard at its effective date of January 1, 2019. We anticipate adoption of the standard will add about $100 million in right-of-use assets and lease obligations to our balance sheet and will not significantly impact pre-tax profit. We plan to elect the practical expedients upon transition that will retain the lease classification and initial direct costs for any leases that exist prior to adoption of the standard. We will not reassess whether any contracts entered into prior to adoption are leases. We are in the early stages of implementation. ASU 2017-12, Derivatives and Hedging. In August 2017, the FASB issued a new accounting standard which aligns hedge accounting with risk management activities and simplifies the requirements to qualify for hedge accounting. We plan to adopt the new standard effective January 1, 2018 and are assessing the impact to our hedge accounting processes and financial statement disclosures. We anticipate adoption will not have a material impact to our financial statements. |
Cash, Cash Equivalents, and Mar
Cash, Cash Equivalents, and Marketable Securities | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES | CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES 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 (in millions): Fair Value Level December 31, September 30, Cash and cash equivalents U.S. government 1 $ 924 $ 112 U.S. government agencies 2 — 200 Non-U.S. government and agencies 2 142 357 Corporate debt 2 — — Total marketable securities classified as cash equivalents 1,066 669 Cash, time deposits and money market funds 7,011 8,166 Total cash and cash equivalents $ 8,077 $ 8,835 Marketable securities U.S. government 1 $ 1,634 $ 670 U.S. government agencies 2 505 384 Non-U.S. government and agencies 2 632 971 Corporate debt 2 475 1,051 Other marketable securities 2 34 25 Total marketable securities $ 3,280 $ 3,101 |
Finance Receivables
Finance Receivables | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Financing Receivables | FINANCE RECEIVABLES We manage finance receivables as “consumer” and “non-consumer” portfolios. The receivables are generally secured by the vehicles, inventory, or other property being financed. Finance receivables, net were as follows (in millions): December 31, September 30, Consumer Retail financing, gross $ 68,121 $ 75,592 Unearned interest supplements from Ford and affiliated companies (2,783 ) (3,136 ) Consumer finance receivables 65,338 72,456 Non-Consumer Dealer financing 36,951 36,818 Other financing 1,176 1,898 Non-Consumer finance receivables 38,127 38,716 Total recorded investment $ 103,465 $ 111,172 Recorded investment in finance receivables $ 103,465 $ 111,172 Allowance for credit losses (484 ) (575 ) Finance receivables, net $ 102,981 $ 110,597 Net finance receivables subject to fair value (a) $ 100,857 $ 107,506 Fair value 101,576 107,286 __________ (a) At December 31, 2016 and September 30, 2017 , Finance receivables, net includes $2.1 billion and $3.1 billion , respectively, of direct financing leases that are not subject to fair value disclosure requirements. The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy. Excluded from finance receivables at December 31, 2016 and September 30, 2017 was $224 million and $225 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, 2016 and September 30, 2017 were consumer receivables of $32.5 billion and $35.2 billion , respectively, and non-consumer receivables of $26.0 billion and $23.6 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) 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 $21 million and $28 million at December 31, 2016 and September 30, 2017 , respectively. The recorded investment of non-consumer receivables greater than 90 days past due and still accruing interest was de minimis and $1 million at December 31, 2016 and September 30, 2017 , respectively. The aging analysis of finance receivables balances was as follows (in millions): December 31, September 30, Consumer 31-60 days past due $ 760 $ 682 61-90 days past due 114 111 91-120 days past due 34 40 Greater than 120 days past due 39 37 Total past due 947 870 Current 64,391 71,586 Consumer finance receivables 65,338 72,456 Non-Consumer Total past due 107 135 Current 38,020 38,581 Non-Consumer finance receivables 38,127 38,716 Total recorded investment $ 103,465 $ 111,172 Credit Quality Consumer Portfolio 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 Portfolio 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 NOTE 4. FINANCE RECEIVABLES (Continued) The credit quality analysis of our dealer financing receivables was as follows (in millions): December 31, September 30, Dealer financing Group I $ 29,926 $ 29,602 Group II 5,552 5,585 Group III 1,380 1,479 Group IV 93 152 Total recorded investment $ 36,951 $ 36,818 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, 2016 and September 30, 2017 was $367 million , or 0.6% of consumer receivables, and $387 million , or 0.5% of consumer receivables, respectively. The recorded investment of non-consumer receivables that were impaired at December 31, 2016 and September 30, 2017 was $107 million , or 0.3% of non-consumer receivables, and $152 million , or 0.4% of non-consumer receivables, respectively. Impaired finance receivables are evaluated both collectively and specifically. 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 Investment in Operating Lea
Net Investment in Operating Leases | 9 Months Ended |
Sep. 30, 2017 | |
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 . Net investment in operating leases were as follows (in millions): December 31, September 30, Vehicles, at cost (a) $ 32,823 $ 32,684 Accumulated depreciation (5,550 ) (5,684 ) Net investment in operating leases before allowance for credit losses 27,273 27,000 Allowance for credit losses (64 ) (69 ) Net investment in operating leases $ 27,209 $ 26,931 __________ (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, 2016 and September 30, 2017 , net investment in operating leases before allowance for credit losses includes $11.8 billion and $9.9 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 investment in operating leases are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions; they are not available to pay 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). We have a sale-leaseback agreement with Ford primarily for vehicles that Ford leases to employees of Ford and its subsidiaries. Effective January 1, 2017, the financing we provide under this agreement is reflected on our balance sheet in Finance receivables, net . Previously, these amounts were reflected in Net investment in operating leases . The amount included in Net investment in operating leases at December 31, 2016 was $907 million . The revenue related to these agreements is now reflected in Other financing revenue . Previously, this activity was reflected on our income statement in Operating leases revenue and Depreciation on vehicles subject to operating leases which was $73 million and $67 million for the third quarter of 2016, respectively, and $222 million and $201 million for the first nine months of 2016, respectively. |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2017 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |
ALLOWANCE FOR CREDIT LOSSES | ALLOWANCE FOR CREDIT LOSSES An analysis of the allowance for credit losses related to finance receivables and net investment in operating leases for the periods ended September 30 (in millions) was as follows: Third Quarter 2016 Finance Receivables Net Investment in Operating Leases Total Allowance Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 432 $ 17 $ 449 $ 63 $ 512 Charge-offs (108 ) (5 ) (113 ) (44 ) (157 ) Recoveries 29 1 30 20 50 Provision for credit losses 112 1 113 25 138 Other (a) (1 ) — (1 ) (1 ) (2 ) Ending balance $ 464 $ 14 $ 478 $ 63 $ 541 First Nine Months 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 (304 ) (7 ) (311 ) (125 ) (436 ) Recoveries 89 4 93 60 153 Provision for credit losses 323 1 324 79 403 Other (a) (1 ) — (1 ) — (1 ) Ending balance $ 464 $ 14 $ 478 $ 63 $ 541 Analysis of ending balance of allowance for credit losses Collective impairment allowance $ 445 $ 12 $ 457 $ 63 $ 520 Specific impairment allowance 19 2 21 — 21 Ending balance 464 14 478 63 $ 541 Analysis of ending balance of finance receivables and net investment in operating leases Collectively evaluated for impairment 64,743 36,120 100,863 27,024 Specifically evaluated for impairment 366 140 506 — Recorded investment 65,109 36,260 101,369 27,024 Ending balance, net of allowance for credit losses $ 64,645 $ 36,246 $ 100,891 $ 26,961 __________ (a) Primarily represents amounts related to translation adjustments. NOTE 6. ALLOWANCE FOR CREDIT LOSSES (Continued) Third Quarter 2017 Finance Receivables Net Investment in Operating Leases Total Allowance Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 507 $ 15 $ 522 $ 66 $ 588 Charge-offs (132 ) — (132 ) (51 ) (183 ) Recoveries 36 4 40 25 65 Provision for credit losses 146 (6 ) 140 29 169 Other (a) 5 — 5 — 5 Ending balance $ 562 $ 13 $ 575 $ 69 $ 644 First Nine Months 2017 Finance Receivables Net Investment in Operating Leases Total Allowance Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 469 $ 15 $ 484 $ 64 $ 548 Charge-offs (366 ) (3 ) (369 ) (155 ) (524 ) Recoveries 105 8 113 73 186 Provision for credit losses 341 (7 ) 334 86 420 Other (a) 13 — 13 1 14 Ending balance $ 562 $ 13 $ 575 $ 69 $ 644 Analysis of ending balance of allowance for credit losses Collective impairment allowance $ 541 $ 13 $ 554 $ 69 $ 623 Specific impairment allowance 21 — 21 — 21 Ending balance 562 13 575 69 $ 644 Analysis of ending balance of finance receivables and net investment in operating leases Collectively evaluated for impairment 72,069 38,564 110,633 27,000 Specifically evaluated for impairment 387 152 539 — Recorded investment 72,456 38,716 111,172 27,000 Ending balance, net of allowance for credit losses $ 71,894 $ 38,703 $ 110,597 $ 26,931 __________ (a) Primarily represents amounts related to translation adjustments. |
Transfers of Receivables
Transfers of Receivables | 9 Months Ended |
Sep. 30, 2017 | |
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 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 (in billions): December 31, 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. NOTE 7. TRANSFERS OF RECEIVABLES (Continued) September 30, 2017 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt (c) Before Allowance for Credit Losses Allowance for Credit Losses After Allowance for Credit Losses VIE (b) Retail financing $ 1.7 $ 29.9 $ 0.2 $ 29.7 $ 25.7 Wholesale financing 0.3 23.1 — 23.1 11.3 Finance receivables 2.0 53.0 0.2 52.8 37.0 Net investment in operating leases 0.5 9.9 — 9.9 6.3 Total VIE $ 2.5 $ 62.9 $ 0.2 $ 62.7 $ 43.3 Non-VIE Retail financing $ 0.3 $ 5.3 $ — $ 5.3 $ 4.7 Wholesale financing — 0.5 — 0.5 0.5 Finance receivables 0.3 5.8 — 5.8 5.2 Net investment in operating leases — — — — — Total Non-VIE $ 0.3 $ 5.8 $ — $ 5.8 $ 5.2 Total securitization transactions Retail financing $ 2.0 $ 35.2 $ 0.2 $ 35.0 $ 30.4 Wholesale financing 0.3 23.6 — 23.6 11.8 Finance receivables 2.3 58.8 0.2 58.6 42.2 Net investment in operating leases 0.5 9.9 — 9.9 6.3 Total securitization transactions $ 2.8 $ 68.7 $ 0.2 $ 68.5 $ 48.5 __________ (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. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2017 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES 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 of which we are the primary beneficiary. 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. 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. See Note 7 for additional information on the financial position and financial performance of our VIEs. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES In the normal course of business, our operations are exposed to global market risks, including the effect of changes in interest rates and foreign currency exchange rates. To manage these risks, we enter into highly effective derivative contracts. We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting. Income Effect of Derivative Financial Instruments The gains/(losses), by hedge designation, recorded in income for the periods ended September 30 were as follows (in millions): Third Quarter First Nine Months 2016 2017 2016 2017 Fair value hedges Interest rate contracts Net interest settlements and accruals excluded from the assessment of hedge effectiveness $ 95 $ 50 $ 292 $ 182 Ineffectiveness (a) (1 ) — 21 — Derivatives not designated as hedging instruments Interest rate contracts 21 20 (70 ) 57 Foreign currency exchange contracts 37 (61 ) 129 (151 ) Cross-currency interest rate swap contracts 128 5 463 79 Total $ 280 $ 14 $ 835 $ 167 __________ (a) For the third quarter and first nine months of 2016, hedge ineffectiveness reflects the net change in fair value on derivatives of $228 million loss and $655 million gain , respectively, and change in value on hedged debt attributable to the change in benchmark interest rates of $227 million gain and $634 million loss , respectively. For the third quarter and first nine months of 2017, hedge ineffectiveness reflects the net change in fair value on derivatives of $40 million loss and $95 million loss , respectively, and change in value on hedged debt attributable to the change in benchmark interest rates of $40 million gain and $95 million gain , respectively. NOTE 9. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued) 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 exposures in the event of default or breach of the counterparty agreement. Collateral represents cash received or paid under reciprocal arrangements that we have entered into with our derivative counterparties which we do not use to offset our derivative assets and liabilities. The fair value of our derivative instruments and the associated notional amounts, presented gross, were as follows (in millions): December 31, 2016 September 30, 2017 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Fair value hedges Interest rate contracts $ 33,175 $ 487 $ 80 $ 31,802 $ 323 $ 132 Derivatives not designated as hedging instruments Interest rate contracts 61,689 156 74 57,144 227 119 Foreign currency exchange contracts (a) 1,791 24 4 3,732 62 147 Cross-currency interest rate swap contracts 3,201 242 8 3,998 370 22 Total derivative financial instruments, gross (b) (c) $ 99,856 $ 909 $ 166 $ 96,676 $ 982 $ 420 __________ (a) Includes forward contracts between Ford Credit and an affiliated company. (b) At December 31, 2016 and September 30, 2017 , we held collateral of $15 million and $11 million , respectively, and we posted collateral of $12 million and $31 million , respectively. (c) At December 31, 2016 and September 30, 2017 , the fair value of assets and liabilities available for counterparty netting was $113 million and $226 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 | 9 Months Ended |
Sep. 30, 2017 | |
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 were as follows (in millions): December 31, September 30, Accrued interest and other non-finance receivables $ 889 $ 1,048 Collateral held for resale, at net realizable value, and other inventory 621 607 Prepaid reinsurance premiums and other reinsurance recoverables 546 594 Deferred charges – income taxes 205 244 Property and equipment, net of accumulated depreciation (a) 156 176 Deferred charges 122 129 Restricted cash (b) 108 121 Investment in non-consolidated affiliates 153 113 Other 22 43 Total other assets $ 2,822 $ 3,075 __________ (a) Accumulated depreciation was $347 million and $359 million at December 31, 2016 and September 30, 2017 , 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 were as follows (in millions): December 31, September 30, Unearned insurance premiums and fees $ 650 $ 706 Interest payable 661 535 Income tax and related interest 294 281 Deferred revenue 143 152 Payroll and employee benefits 51 65 Other 198 281 Total other liabilities and deferred income $ 1,997 $ 2,020 Deferred revenue balances presented above include amounts from contracts with customers primarily related to admission fee revenue on group financing products available in Argentina and were $120 million , $120 million , and $128 million at December 31, 2016, January 1, 2017, and September 30, 2017, respectively. The January 1, 2017 balance reflects adoption of the new revenue recognition standard. See Note 2 for additional information. Admission fee revenue on group financing products is generally recognized evenly over the term of the agreement, which is up to 84 months. Increases in the admission fee deferred revenue balance are the result of payments due during the current period in advance of satisfying our performance under the contract and decreases are a result of revenue recognized during the current period that was previously deferred. The total amount of admission fee revenue recognized for the first nine months of 2017 that was included in the beginning balance of deferred revenue at January 1, 2017 was $21 million. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | DEBT Debt outstanding and interest rates were as follows (in millions): Interest Rates Debt Average Contractual Average Effective December 31, September 30, 2016 2017 2016 2017 Short-term debt Unsecured debt Floating rate demand notes $ 5,986 $ 5,718 Commercial paper 4,507 5,627 Other short-term debt 3,803 5,196 Asset-backed debt 1,063 1,151 Total short-term debt 15,359 17,692 2.3 % 2.6 % 2.3 % 2.6 % Long-term debt Unsecured debt Notes payable within one year 12,369 13,487 Notes payable after one year 49,308 53,858 Asset-backed debt (a) Notes payable within one year 19,286 16,496 Notes payable after one year 30,112 30,909 Unamortized discount (8 ) (1 ) Unamortized issuance costs (212 ) (223 ) Fair value adjustments (b) 278 162 Total long-term debt 111,133 114,688 2.4 % 2.5 % 2.5 % 2.5 % Total debt $ 126,492 $ 132,380 2.4 % 2.5 % 2.4 % 2.5 % Fair value of debt (c) $ 128,001 $ 134,141 __________ (a) Asset-backed debt issued in securitizations is the obligation of the consolidated securitization entity that issued the debt and is payable only out of collections on the underlying securitized assets and related enhancements. This asset-backed debt is not the obligation of Ford Credit or our other subsidiaries. (b) Adjustments related to designated fair value hedges of unsecured debt. (c) The fair value of debt includes $14.3 billion and $16.5 billion of short-term debt at December 31, 2016 and September 30, 2017, respectively, carried at cost, which approximates fair value. All other debt is categorized within Level 2 of the fair value hierarchy. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income/(Loss) | 9 Months Ended |
Sep. 30, 2017 | |
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 periods ended September 30 were as follows (in millions): Third Quarter First Nine Months 2016 2017 2016 2017 Foreign currency translation Beginning balance $ (576 ) $ (609 ) $ (607 ) $ (890 ) Net gain/(loss) on foreign currency translation (72 ) 204 (41 ) 485 Other comprehensive income/(loss), net of tax (72 ) 204 (41 ) 485 Ending balance $ (648 ) $ (405 ) $ (648 ) $ (405 ) Total AOCI ending balance at September 30 $ (648 ) $ (405 ) $ (648 ) $ (405 ) |
Other Income, Net
Other Income, Net | 9 Months Ended |
Sep. 30, 2017 | |
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 periods ended September 30 were as follows (in millions): Third Quarter First Nine Months 2016 2017 2016 2017 Gains/(Losses) on derivatives $ 186 $ (36 ) $ 545 $ (15 ) Currency revaluation gains/(losses) (157 ) 51 (585 ) 73 Interest and investment income 19 33 71 80 Insurance fee income 21 — 68 — Other 40 9 125 35 Total other income, net $ 109 $ 57 $ 224 $ 173 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We have three reportable segments in our consolidated financial statements that align with our management reporting structure and reflect the manner in which our Chief Operating Decision Maker manages our business, including resource allocation and performance assessment. These segments are: 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 conduct our financing operations directly and indirectly through our subsidiaries and affiliates. NOTE 14. SEGMENT INFORMATION (Continued) Key operating data for our business segments for the periods ended or at September 30 were as follows (in millions): Americas Europe Asia Pacific Total Segments Unallocated Other (a) Total Third Quarter 2016 Total revenue (b) $ 2,419 $ 244 $ 88 $ 2,751 $ 45 $ 2,796 Income before income taxes 423 79 20 522 45 567 Other disclosures: Depreciation on vehicles subject to operating leases 1,072 13 — 1,085 — 1,085 Interest expense 586 69 42 697 — 697 Provision for credit losses 128 6 4 138 — 138 Third Quarter 2017 Total revenue (b) $ 2,493 $ 247 123 $ 2,863 $ — $ 2,863 Income before income taxes 485 72 23 580 20 600 Other disclosures: Depreciation on vehicles subject to operating leases 975 14 — 989 — 989 Interest expense 669 65 76 810 — 810 Provision for credit losses 159 7 3 169 — 169 First Nine Months 2016 Total revenue (b) $ 7,063 $ 761 $ 258 $ 8,082 $ 10 $ 8,092 Income before income taxes 1,168 257 46 1,471 10 1,481 Other disclosures: Depreciation on vehicles subject to operating leases 3,149 25 — 3,174 — 3,174 Interest expense 1,687 213 130 2,030 — 2,030 Provision for credit losses 369 21 13 403 — 403 Net finance receivables and net investment in operating leases 111,110 19,266 4,049 134,425 (6,573 ) 127,852 Total assets 116,462 22,150 4,380 142,992 — 142,992 First Nine Months 2017 Total revenue (b) $ 7,359 $ 709 $ 328 $ 8,396 $ — $ 8,396 Income before income taxes 1,308 223 69 1,600 100 1,700 Other disclosures: Depreciation on vehicles subject to operating leases 3,055 35 — 3,090 — 3,090 Interest expense 1,930 187 191 2,308 — 2,308 Provision for credit losses 389 21 10 420 — 420 Net finance receivables and net investment in operating leases 115,331 23,855 5,921 145,107 (7,579 ) 137,528 Total assets 120,398 27,323 6,757 154,478 — 154,478 __________ (a) Net finance receivables and Net investment in operating leases include unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation). (b) Total revenue for 2016 includes Total financing revenue, Insurance premiums earned, and Other income, net . For 2017, Total revenue includes Total financing revenue, Insurance premiums earned, and Fee based revenue and other . The change in the definition of Total revenue is the result of our adoption of the new revenue recognition accounting standard as of January 1, 2017 (see Note 2 for additional information). |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
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. 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 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 $35 million and $36 million at December 31, 2016 and September 30, 2017 , respectively. Of these values, $31 million and $33 million at December 31, 2016 and September 30, 2017 , respectively, were counter-guaranteed by Ford to us. There were no recorded liabilities related to guarantees and limited indemnities at December 31, 2016 and September 30, 2017 . Litigation and Claims Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include but are not limited to matters arising out of governmental regulations; tax matters; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer and other contractual relationships; personal injury matters; investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages in very large amounts, sanctions, assessments, or other relief, which, if granted, would require very large expenditures. The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome. We accrue for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time. NOTE 15. COMMITMENTS AND CONTINGENCIES (Continued) 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 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) | 9 Months Ended |
Sep. 30, 2017 | |
Basis of Accounting and Intercompany Transactions [Abstract] | |
Basis of Accounting and Intercompany Transactions [Policy Text Block] | The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information, instructions to the Quarterly Report on Form 10-Q, and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited financial statements include all adjustments considered necessary for a fair statement of the results of operations and financial condition for interim periods for Ford Motor Credit Company LLC, its consolidated subsidiaries, and consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Results for interim periods should not be considered indicative of results for any other interim period or for the full year. Reference should be made to the financial statements contained in our Current Report on Form 8-K dated April 27, 2017 (“April 27, 2017 Form 8-K Report”). We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). |
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. |
Income Tax Disclosure [Abstract] | |
Income Tax, Policy [Policy Text Block] | For interim tax reporting we estimate one single effective tax rate, which is applied to the year-to-date ordinary income/(loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. |
Loans and Leases Receivable Disclosure [Abstract] | |
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | 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 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. 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. |
Lease Policy [Abstract] | |
Lease, Policy [Policy Text Block] | 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 . |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Policy [Policy Text Block] | We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, 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. |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees and Indemnifications Policies [Policy Text Block] | 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. 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. 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. |
Cash, Cash Equivalents, and M23
Cash, Cash Equivalents, and Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets 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 (in millions): Fair Value Level December 31, September 30, Cash and cash equivalents U.S. government 1 $ 924 $ 112 U.S. government agencies 2 — 200 Non-U.S. government and agencies 2 142 357 Corporate debt 2 — — Total marketable securities classified as cash equivalents 1,066 669 Cash, time deposits and money market funds 7,011 8,166 Total cash and cash equivalents $ 8,077 $ 8,835 Marketable securities U.S. government 1 $ 1,634 $ 670 U.S. government agencies 2 505 384 Non-U.S. government and agencies 2 632 971 Corporate debt 2 475 1,051 Other marketable securities 2 34 25 Total marketable securities $ 3,280 $ 3,101 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Financing Receivables [Line Items] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Finance receivables, net were as follows (in millions): December 31, September 30, Consumer Retail financing, gross $ 68,121 $ 75,592 Unearned interest supplements from Ford and affiliated companies (2,783 ) (3,136 ) Consumer finance receivables 65,338 72,456 Non-Consumer Dealer financing 36,951 36,818 Other financing 1,176 1,898 Non-Consumer finance receivables 38,127 38,716 Total recorded investment $ 103,465 $ 111,172 Recorded investment in finance receivables $ 103,465 $ 111,172 Allowance for credit losses (484 ) (575 ) Finance receivables, net $ 102,981 $ 110,597 Net finance receivables subject to fair value (a) $ 100,857 $ 107,506 Fair value 101,576 107,286 __________ (a) At December 31, 2016 and September 30, 2017 , Finance receivables, net includes $2.1 billion and $3.1 billion , respectively, of direct financing leases that are not subject to fair value disclosure requirements. The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy. |
Schedule of Aging Analysis for Total Finance Receivables [Table Text Block] | The aging analysis of finance receivables balances was as follows (in millions): December 31, September 30, Consumer 31-60 days past due $ 760 $ 682 61-90 days past due 114 111 91-120 days past due 34 40 Greater than 120 days past due 39 37 Total past due 947 870 Current 64,391 71,586 Consumer finance receivables 65,338 72,456 Non-Consumer Total past due 107 135 Current 38,020 38,581 Non-Consumer finance receivables 38,127 38,716 Total recorded investment $ 103,465 $ 111,172 |
Commercial Portfolio 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 was as follows (in millions): December 31, September 30, Dealer financing Group I $ 29,926 $ 29,602 Group II 5,552 5,585 Group III 1,380 1,479 Group IV 93 152 Total recorded investment $ 36,951 $ 36,818 |
Net Investment in Operating L25
Net Investment in Operating Leases (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Leases, Operating [Abstract] | |
Net investment in operating leases [Table Text Block] | Net investment in operating leases were as follows (in millions): December 31, September 30, Vehicles, at cost (a) $ 32,823 $ 32,684 Accumulated depreciation (5,550 ) (5,684 ) Net investment in operating leases before allowance for credit losses 27,273 27,000 Allowance for credit losses (64 ) (69 ) Net investment in operating leases $ 27,209 $ 26,931 __________ (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. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 periods ended September 30 (in millions) was as follows: Third Quarter 2016 Finance Receivables Net Investment in Operating Leases Total Allowance Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 432 $ 17 $ 449 $ 63 $ 512 Charge-offs (108 ) (5 ) (113 ) (44 ) (157 ) Recoveries 29 1 30 20 50 Provision for credit losses 112 1 113 25 138 Other (a) (1 ) — (1 ) (1 ) (2 ) Ending balance $ 464 $ 14 $ 478 $ 63 $ 541 First Nine Months 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 (304 ) (7 ) (311 ) (125 ) (436 ) Recoveries 89 4 93 60 153 Provision for credit losses 323 1 324 79 403 Other (a) (1 ) — (1 ) — (1 ) Ending balance $ 464 $ 14 $ 478 $ 63 $ 541 Analysis of ending balance of allowance for credit losses Collective impairment allowance $ 445 $ 12 $ 457 $ 63 $ 520 Specific impairment allowance 19 2 21 — 21 Ending balance 464 14 478 63 $ 541 Analysis of ending balance of finance receivables and net investment in operating leases Collectively evaluated for impairment 64,743 36,120 100,863 27,024 Specifically evaluated for impairment 366 140 506 — Recorded investment 65,109 36,260 101,369 27,024 Ending balance, net of allowance for credit losses $ 64,645 $ 36,246 $ 100,891 $ 26,961 __________ (a) Primarily represents amounts related to translation adjustments. NOTE 6. ALLOWANCE FOR CREDIT LOSSES (Continued) Third Quarter 2017 Finance Receivables Net Investment in Operating Leases Total Allowance Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 507 $ 15 $ 522 $ 66 $ 588 Charge-offs (132 ) — (132 ) (51 ) (183 ) Recoveries 36 4 40 25 65 Provision for credit losses 146 (6 ) 140 29 169 Other (a) 5 — 5 — 5 Ending balance $ 562 $ 13 $ 575 $ 69 $ 644 First Nine Months 2017 Finance Receivables Net Investment in Operating Leases Total Allowance Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 469 $ 15 $ 484 $ 64 $ 548 Charge-offs (366 ) (3 ) (369 ) (155 ) (524 ) Recoveries 105 8 113 73 186 Provision for credit losses 341 (7 ) 334 86 420 Other (a) 13 — 13 1 14 Ending balance $ 562 $ 13 $ 575 $ 69 $ 644 Analysis of ending balance of allowance for credit losses Collective impairment allowance $ 541 $ 13 $ 554 $ 69 $ 623 Specific impairment allowance 21 — 21 — 21 Ending balance 562 13 575 69 $ 644 Analysis of ending balance of finance receivables and net investment in operating leases Collectively evaluated for impairment 72,069 38,564 110,633 27,000 Specifically evaluated for impairment 387 152 539 — Recorded investment 72,456 38,716 111,172 27,000 Ending balance, net of allowance for credit losses $ 71,894 $ 38,703 $ 110,597 $ 26,931 __________ (a) Primarily represents amounts related to translation adjustments. |
Transfers of Receivables (Table
Transfers of Receivables (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 (in billions): December 31, 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. NOTE 7. TRANSFERS OF RECEIVABLES (Continued) September 30, 2017 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt (c) Before Allowance for Credit Losses Allowance for Credit Losses After Allowance for Credit Losses VIE (b) Retail financing $ 1.7 $ 29.9 $ 0.2 $ 29.7 $ 25.7 Wholesale financing 0.3 23.1 — 23.1 11.3 Finance receivables 2.0 53.0 0.2 52.8 37.0 Net investment in operating leases 0.5 9.9 — 9.9 6.3 Total VIE $ 2.5 $ 62.9 $ 0.2 $ 62.7 $ 43.3 Non-VIE Retail financing $ 0.3 $ 5.3 $ — $ 5.3 $ 4.7 Wholesale financing — 0.5 — 0.5 0.5 Finance receivables 0.3 5.8 — 5.8 5.2 Net investment in operating leases — — — — — Total Non-VIE $ 0.3 $ 5.8 $ — $ 5.8 $ 5.2 Total securitization transactions Retail financing $ 2.0 $ 35.2 $ 0.2 $ 35.0 $ 30.4 Wholesale financing 0.3 23.6 — 23.6 11.8 Finance receivables 2.3 58.8 0.2 58.6 42.2 Net investment in operating leases 0.5 9.9 — 9.9 6.3 Total securitization transactions $ 2.8 $ 68.7 $ 0.2 $ 68.5 $ 48.5 __________ (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. |
Derivative Financial Instrume28
Derivative Financial Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Income Effect of Derivative Financial Instruments [Table Text Block] | The gains/(losses), by hedge designation, recorded in income for the periods ended September 30 were as follows (in millions): Third Quarter First Nine Months 2016 2017 2016 2017 Fair value hedges Interest rate contracts Net interest settlements and accruals excluded from the assessment of hedge effectiveness $ 95 $ 50 $ 292 $ 182 Ineffectiveness (a) (1 ) — 21 — Derivatives not designated as hedging instruments Interest rate contracts 21 20 (70 ) 57 Foreign currency exchange contracts 37 (61 ) 129 (151 ) Cross-currency interest rate swap contracts 128 5 463 79 Total $ 280 $ 14 $ 835 $ 167 __________ (a) For the third quarter and first nine months of 2016, hedge ineffectiveness reflects the net change in fair value on derivatives of $228 million loss and $655 million gain , respectively, and change in value on hedged debt attributable to the change in benchmark interest rates of $227 million gain and $634 million loss , respectively. For the third quarter and first nine months of 2017, hedge ineffectiveness reflects the net change in fair value on derivatives of $40 million loss and $95 million loss , respectively, and change in value on hedged debt attributable to the change in benchmark interest rates of $40 million gain and $95 million gain , respectively. |
Balance Sheet Effect of Derivative Financial Instruments [Table Text Block] | The fair value of our derivative instruments and the associated notional amounts, presented gross, were as follows (in millions): December 31, 2016 September 30, 2017 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Fair value hedges Interest rate contracts $ 33,175 $ 487 $ 80 $ 31,802 $ 323 $ 132 Derivatives not designated as hedging instruments Interest rate contracts 61,689 156 74 57,144 227 119 Foreign currency exchange contracts (a) 1,791 24 4 3,732 62 147 Cross-currency interest rate swap contracts 3,201 242 8 3,998 370 22 Total derivative financial instruments, gross (b) (c) $ 99,856 $ 909 $ 166 $ 96,676 $ 982 $ 420 __________ (a) Includes forward contracts between Ford Credit and an affiliated company. (b) At December 31, 2016 and September 30, 2017 , we held collateral of $15 million and $11 million , respectively, and we posted collateral of $12 million and $31 million , respectively. (c) At December 31, 2016 and September 30, 2017 , the fair value of assets and liabilities available for counterparty netting was $113 million and $226 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy. |
Other Assets and Other Liabil29
Other Assets and Other Liabilities and Deferred Income (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Assets and Other Liabilities and Deferred Income [Abstract] | |
Schedule of Other Assets and Other Liabilities [Table Text Block] | Other assets were as follows (in millions): December 31, September 30, Accrued interest and other non-finance receivables $ 889 $ 1,048 Collateral held for resale, at net realizable value, and other inventory 621 607 Prepaid reinsurance premiums and other reinsurance recoverables 546 594 Deferred charges – income taxes 205 244 Property and equipment, net of accumulated depreciation (a) 156 176 Deferred charges 122 129 Restricted cash (b) 108 121 Investment in non-consolidated affiliates 153 113 Other 22 43 Total other assets $ 2,822 $ 3,075 __________ (a) Accumulated depreciation was $347 million and $359 million at December 31, 2016 and September 30, 2017 , 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 were as follows (in millions): December 31, September 30, Unearned insurance premiums and fees $ 650 $ 706 Interest payable 661 535 Income tax and related interest 294 281 Deferred revenue 143 152 Payroll and employee benefits 51 65 Other 198 281 Total other liabilities and deferred income $ 1,997 $ 2,020 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Debt outstanding and interest rates were as follows (in millions): Interest Rates Debt Average Contractual Average Effective December 31, September 30, 2016 2017 2016 2017 Short-term debt Unsecured debt Floating rate demand notes $ 5,986 $ 5,718 Commercial paper 4,507 5,627 Other short-term debt 3,803 5,196 Asset-backed debt 1,063 1,151 Total short-term debt 15,359 17,692 2.3 % 2.6 % 2.3 % 2.6 % Long-term debt Unsecured debt Notes payable within one year 12,369 13,487 Notes payable after one year 49,308 53,858 Asset-backed debt (a) Notes payable within one year 19,286 16,496 Notes payable after one year 30,112 30,909 Unamortized discount (8 ) (1 ) Unamortized issuance costs (212 ) (223 ) Fair value adjustments (b) 278 162 Total long-term debt 111,133 114,688 2.4 % 2.5 % 2.5 % 2.5 % Total debt $ 126,492 $ 132,380 2.4 % 2.5 % 2.4 % 2.5 % Fair value of debt (c) $ 128,001 $ 134,141 __________ (a) Asset-backed debt issued in securitizations is the obligation of the consolidated securitization entity that issued the debt and is payable only out of collections on the underlying securitized assets and related enhancements. This asset-backed debt is not the obligation of Ford Credit or our other subsidiaries. (b) Adjustments related to designated fair value hedges of unsecured debt. (c) The fair value of debt includes $14.3 billion and $16.5 billion of short-term debt at December 31, 2016 and September 30, 2017, respectively, carried at cost, which approximates fair value. All other debt is categorized within Level 2 of the fair value hierarchy. |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income/(Loss) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 periods ended September 30 were as follows (in millions): Third Quarter First Nine Months 2016 2017 2016 2017 Foreign currency translation Beginning balance $ (576 ) $ (609 ) $ (607 ) $ (890 ) Net gain/(loss) on foreign currency translation (72 ) 204 (41 ) 485 Other comprehensive income/(loss), net of tax (72 ) 204 (41 ) 485 Ending balance $ (648 ) $ (405 ) $ (648 ) $ (405 ) Total AOCI ending balance at September 30 $ (648 ) $ (405 ) $ (648 ) $ (405 ) |
Other Income, Net (Tables)
Other Income, Net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income [Table Text Block] | The amounts included in Other income, net for the periods ended September 30 were as follows (in millions): Third Quarter First Nine Months 2016 2017 2016 2017 Gains/(Losses) on derivatives $ 186 $ (36 ) $ 545 $ (15 ) Currency revaluation gains/(losses) (157 ) 51 (585 ) 73 Interest and investment income 19 33 71 80 Insurance fee income 21 — 68 — Other 40 9 125 35 Total other income, net $ 109 $ 57 $ 224 $ 173 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Key operating data for our business segments for the periods ended or at September 30 were as follows (in millions): Americas Europe Asia Pacific Total Segments Unallocated Other (a) Total Third Quarter 2016 Total revenue (b) $ 2,419 $ 244 $ 88 $ 2,751 $ 45 $ 2,796 Income before income taxes 423 79 20 522 45 567 Other disclosures: Depreciation on vehicles subject to operating leases 1,072 13 — 1,085 — 1,085 Interest expense 586 69 42 697 — 697 Provision for credit losses 128 6 4 138 — 138 Third Quarter 2017 Total revenue (b) $ 2,493 $ 247 123 $ 2,863 $ — $ 2,863 Income before income taxes 485 72 23 580 20 600 Other disclosures: Depreciation on vehicles subject to operating leases 975 14 — 989 — 989 Interest expense 669 65 76 810 — 810 Provision for credit losses 159 7 3 169 — 169 First Nine Months 2016 Total revenue (b) $ 7,063 $ 761 $ 258 $ 8,082 $ 10 $ 8,092 Income before income taxes 1,168 257 46 1,471 10 1,481 Other disclosures: Depreciation on vehicles subject to operating leases 3,149 25 — 3,174 — 3,174 Interest expense 1,687 213 130 2,030 — 2,030 Provision for credit losses 369 21 13 403 — 403 Net finance receivables and net investment in operating leases 111,110 19,266 4,049 134,425 (6,573 ) 127,852 Total assets 116,462 22,150 4,380 142,992 — 142,992 First Nine Months 2017 Total revenue (b) $ 7,359 $ 709 $ 328 $ 8,396 $ — $ 8,396 Income before income taxes 1,308 223 69 1,600 100 1,700 Other disclosures: Depreciation on vehicles subject to operating leases 3,055 35 — 3,090 — 3,090 Interest expense 1,930 187 191 2,308 — 2,308 Provision for credit losses 389 21 10 420 — 420 Net finance receivables and net investment in operating leases 115,331 23,855 5,921 145,107 (7,579 ) 137,528 Total assets 120,398 27,323 6,757 154,478 — 154,478 __________ (a) Net finance receivables and Net investment in operating leases include unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation). (b) Total revenue for 2016 includes Total financing revenue, Insurance premiums earned, and Other income, net . For 2017, Total revenue includes Total financing revenue, Insurance premiums earned, and Fee based revenue and other . The change in the definition of Total revenue is the result of our adoption of the new revenue recognition accounting standard as of January 1, 2017 (see Note 2 for additional information). |
Presentation (Details)
Presentation (Details) $ in Millions | 1 Months Ended |
Sep. 30, 2017USD ($) | |
Forso Nordic AB [Member] | |
Presentation [Line Items] | |
Equity Method Investment, Ownership Percentage | 50.00% |
Forso Nordic AB [Member] | |
Presentation [Line Items] | |
Business Combination, Separately Recognized Transactions, Net Gains and Losses | $ 17 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 1,500 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 1,300 |
Accounting Policies (Details)
Accounting Policies (Details) $ in Millions | Sep. 30, 2017USD ($) |
Accounting Standards Update 2014-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 9 |
Accounting Standards Update 2016-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating Lease Right Of Use Asset Expected | 100 |
Operating Lease Liability Expected | $ 100 |
Cash, Cash Equivalents, and M36
Cash, Cash Equivalents, and Marketable Securities (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Total cash and cash equivalents | $ 8,835 | $ 8,835 | $ 8,077 | $ 5,675 | $ 8,886 |
Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash and cash equivalents | 669 | 1,066 | |||
Marketable securities | 3,101 | 3,280 | |||
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 | 8,166 | 7,011 | |||
U.S. government | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash and cash equivalents | 112 | 924 | |||
Marketable securities | 670 | 1,634 | |||
U.S. government agencies | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash and cash equivalents | 200 | 0 | |||
Marketable securities | 384 | 505 | |||
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 | 357 | 142 | |||
Marketable securities | 971 | 632 | |||
Corporate debt | 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 | 1,051 | 475 | |||
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 | $ 25 | $ 34 |
Finance Receivables, Net (Detai
Finance Receivables, Net (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Net Finance Receivables [Abstract] | ||||||
Financing Receivables | $ 111,172 | $ 103,465 | $ 101,369 | |||
Allowance for credit losses | (575) | $ (522) | (484) | (478) | $ (449) | $ (373) |
Finance receivables, net | 110,597 | 102,981 | 100,891 | |||
Net finance receivables subject to fair value | 107,506 | 100,857 | ||||
Finance receivables not subject to fair value | 3,100 | 2,100 | ||||
Uncollected interest receivable excluded from finance receivable | 225 | 224 | ||||
Consumer Portfolio Segment [Member] | ||||||
Net Finance Receivables [Abstract] | ||||||
Financing Receivables | 72,456 | 65,338 | 65,109 | |||
Allowance for credit losses | (562) | (507) | (469) | (464) | (432) | (357) |
Finance receivables, net | 71,894 | 64,645 | ||||
Amount of finance receivables that secure certain debt obligations | 35,200 | 32,500 | ||||
Commercial Portfolio Segment [Member] | ||||||
Net Finance Receivables [Abstract] | ||||||
Financing Receivables | 38,716 | 38,127 | 36,260 | |||
Allowance for credit losses | (13) | $ (15) | (15) | (14) | $ (17) | $ (16) |
Finance receivables, net | 38,703 | $ 36,246 | ||||
Amount of finance receivables that secure certain debt obligations | 23,600 | 26,000 | ||||
Automobile Loan [Member] | Consumer Portfolio Segment [Member] | ||||||
Net Finance Receivables [Abstract] | ||||||
Finance receivables before unearned interest supplements | 75,592 | 68,121 | ||||
Unearned interest supplements from Ford and affiliated companies | (3,136) | (2,783) | ||||
Financing Receivables | 72,456 | 65,338 | ||||
Wholesale and Dealer Loans [Member] | Commercial Portfolio Segment [Member] | ||||||
Net Finance Receivables [Abstract] | ||||||
Financing Receivables | 36,818 | 36,951 | ||||
Other Finance Receivables [Member] | Commercial Portfolio Segment [Member] | ||||||
Net Finance Receivables [Abstract] | ||||||
Financing Receivables | 1,898 | 1,176 | ||||
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | ||||||
Net Finance Receivables [Abstract] | ||||||
Fair Value | $ 107,286 | $ 101,576 |
Finance Receivables - Aging Ana
Finance Receivables - Aging Analysis (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold Period For Past Due Finance Receivables | 31 days | ||
Finance Receivables Aging Analysis [Abstract] | |||
Financing Receivables | $ 111,172 | $ 103,465 | $ 101,369 |
Consumer Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 28 | 21 | |
Finance Receivables Aging Analysis [Abstract] | |||
Total past due | 870 | 947 | |
Current | 71,586 | 64,391 | |
Financing Receivables | 72,456 | 65,338 | 65,109 |
Consumer Portfolio Segment [Member] | 31-60 Days Past Due [Member] | |||
Finance Receivables Aging Analysis [Abstract] | |||
Total past due | 682 | 760 | |
Consumer Portfolio Segment [Member] | 61-90 Days Past Due [Member] | |||
Finance Receivables Aging Analysis [Abstract] | |||
Total past due | 111 | 114 | |
Consumer Portfolio Segment [Member] | 91-120 Days Past Due [Member] | |||
Finance Receivables Aging Analysis [Abstract] | |||
Total past due | 40 | 34 | |
Consumer Portfolio Segment [Member] | Greater Than 120 Days Past Due [Member] | |||
Finance Receivables Aging Analysis [Abstract] | |||
Total past due | 37 | 39 | |
Commercial Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 1 | 0 | |
Finance Receivables Aging Analysis [Abstract] | |||
Total past due | 135 | 107 | |
Current | 38,581 | 38,020 | |
Financing Receivables | $ 38,716 | $ 38,127 | $ 36,260 |
Finance Receivables - Credit Qu
Finance Receivables - Credit Quality and Impaired Receivables (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | $ 111,172 | $ 103,465 | $ 101,369 |
Consumer Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | $ 72,456 | 65,338 | 65,109 |
Number of Days Past Due After Which Consumer Receivables are Considered Impaired | 120 days | ||
Impaired Financing Receivable, Recorded Investment | $ 387 | $ 367 | |
Impaired Financing Receivable Recorded Investment, Percentage of Receivable | 0.50% | 0.60% | |
Consumer Portfolio Segment [Member] | Pass [Member] | Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance Receivables Credit Quality Ratings Term Range | 60 days | ||
Consumer Portfolio 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 Portfolio 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 Portfolio Segment [Member] | Substandard [Member] | Minimum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance Receivables Credit Quality Ratings Term Range | 120 days | ||
Commercial Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | $ 38,716 | $ 38,127 | $ 36,260 |
Impaired Financing Receivable, Recorded Investment | $ 152 | $ 107 | |
Impaired Financing Receivable Recorded Investment, Percentage of Receivable | 0.40% | 0.30% | |
Commercial Portfolio Segment [Member] | Wholesale and Dealer Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | $ 36,818 | $ 36,951 | |
Commercial Portfolio Segment [Member] | Wholesale and Dealer Loans [Member] | Group I | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | 29,602 | 29,926 | |
Commercial Portfolio Segment [Member] | Wholesale and Dealer Loans [Member] | Group II | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | 5,585 | 5,552 | |
Commercial Portfolio Segment [Member] | Wholesale and Dealer Loans [Member] | Group III | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | 1,479 | 1,380 | |
Commercial Portfolio Segment [Member] | Wholesale and Dealer Loans [Member] | Group IV | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | $ 152 | $ 93 |
Net Investment in Operating L40
Net Investment in Operating Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Property Subject to or Available for Operating Lease [Line Items] | |||||||
Length of lease contract | 60 months or less | ||||||
Vehicles, at cost | $ 32,684 | $ 32,823 | |||||
Accumulated depreciation | (5,684) | (5,550) | |||||
Net investment in operating leases before allowance for credit losses | $ 27,024 | 27,000 | $ 27,024 | 27,273 | |||
Allowance for credit losses | (63) | (69) | (63) | $ (66) | (64) | $ (63) | $ (49) |
Net investment in operating leases | 26,961 | 26,931 | 26,961 | 27,209 | |||
Related Party Transaction, Net Investment in Operating Leases | 907 | ||||||
Related Party Transaction, Operating Leases, Income | 73 | 222 | |||||
Related Party Transaction Depreciation On Vehicles Subject to Operating Leases | $ 67 | $ 201 | |||||
Securitization Transactions [Member] | |||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||
Net investment in operating leases | $ 9,900 | $ 11,800 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Allowance for credit losses, finance receivables | |||||
Beginning balance | $ 522 | $ 449 | $ 484 | $ 373 | |
Charge-offs | (132) | (113) | (369) | (311) | |
Recoveries | 40 | 30 | 113 | 93 | |
Provision for credit losses | 140 | 113 | 334 | 324 | |
Other | 5 | (1) | 13 | (1) | |
Ending balance | 575 | 478 | 575 | 478 | |
Analysis of ending balance of allowance for credit losses, finance receivables | |||||
Collective impairment allowance | 554 | 457 | 554 | 457 | |
Specific impairment allowance | 21 | 21 | 21 | 21 | |
Ending balance | 575 | 478 | 575 | 478 | |
Analysis of ending balance of finance receivables | |||||
Collectively evaluated for impairment | 110,633 | 100,863 | 110,633 | 100,863 | |
Specifically evaluated for impairment | 539 | 506 | 539 | 506 | |
Financing Receivables | 111,172 | 101,369 | 111,172 | 101,369 | $ 103,465 |
Ending balance, net of allowance for credit losses | 110,597 | 100,891 | 110,597 | 100,891 | |
Allowance for credit losses, net investment in operating leases | |||||
Beginning balance | 66 | 63 | 64 | 49 | |
Charge-offs | (51) | (44) | (155) | (125) | |
Recoveries | 25 | 20 | 73 | 60 | |
Other | 0 | (1) | 1 | 0 | |
Ending balance | 69 | 63 | 69 | 63 | |
Analysis of Ending Balance of Allowance for Credit Losses, Net Investment in Operating Leases [Abstract] | |||||
Collective impairment allowance | 69 | 63 | 69 | 63 | |
Specific impairment allowance | 0 | 0 | 0 | 0 | |
Ending balance | 69 | 63 | 69 | 63 | |
Analysis of ending balance of net investment in operating leases | |||||
Collectively evaluated for impairment | 27,000 | 27,024 | 27,000 | 27,024 | |
Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Net investment in operating leases before allowance for credit losses | 27,000 | 27,024 | 27,000 | 27,024 | 27,273 |
Ending balance, net investment in operating leases | 26,931 | 26,961 | 26,931 | 26,961 | |
Total allowance | |||||
Beginning balance | 588 | 512 | 548 | 422 | |
Charge-offs | (183) | (157) | (524) | (436) | |
Recoveries | 65 | 50 | 186 | 153 | |
Provision for credit losses | 169 | 138 | 420 | 403 | |
Other | 5 | (2) | 14 | (1) | |
Ending balance | 644 | 541 | 644 | 541 | |
Analysis of Ending Balance of Finance Receivables and Net Investment in Operating Leases [Abstract] | |||||
Collective impairment allowance | 623 | 520 | 623 | 520 | |
Specific impairment allowance | 21 | 21 | 21 | 21 | |
Ending balance | 644 | 541 | 644 | 541 | |
Net Investment in Operating Leases [Member] | |||||
Allowance for credit losses, finance receivables | |||||
Provision for credit losses | 29 | 25 | 86 | 79 | |
Consumer Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 28 | 28 | 21 | ||
Allowance for credit losses, finance receivables | |||||
Beginning balance | 507 | 432 | 469 | 357 | |
Charge-offs | (132) | (108) | (366) | (304) | |
Recoveries | 36 | 29 | 105 | 89 | |
Provision for credit losses | 146 | 112 | 341 | 323 | |
Other | 5 | (1) | 13 | (1) | |
Ending balance | 562 | 464 | 562 | 464 | |
Analysis of ending balance of allowance for credit losses, finance receivables | |||||
Collective impairment allowance | 541 | 445 | 541 | 445 | |
Specific impairment allowance | 21 | 19 | 21 | 19 | |
Ending balance | 562 | 464 | 562 | 464 | |
Analysis of ending balance of finance receivables | |||||
Collectively evaluated for impairment | 72,069 | 64,743 | 72,069 | 64,743 | |
Specifically evaluated for impairment | 387 | 366 | 387 | 366 | |
Financing Receivables | 72,456 | 65,109 | 72,456 | 65,109 | 65,338 |
Ending balance, net of allowance for credit losses | 71,894 | 64,645 | 71,894 | 64,645 | |
Commercial Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 1 | 1 | 0 | ||
Allowance for credit losses, finance receivables | |||||
Beginning balance | 15 | 17 | 15 | 16 | |
Charge-offs | 0 | (5) | (3) | (7) | |
Recoveries | 4 | 1 | 8 | 4 | |
Provision for credit losses | (6) | 1 | (7) | 1 | |
Other | 0 | 0 | 0 | 0 | |
Ending balance | 13 | 14 | 13 | 14 | |
Analysis of ending balance of allowance for credit losses, finance receivables | |||||
Collective impairment allowance | 13 | 12 | 13 | 12 | |
Specific impairment allowance | 0 | 2 | 0 | 2 | |
Ending balance | 13 | 14 | 13 | 14 | |
Analysis of ending balance of finance receivables | |||||
Collectively evaluated for impairment | 38,564 | 36,120 | 38,564 | 36,120 | |
Specifically evaluated for impairment | 152 | 140 | 152 | 140 | |
Financing Receivables | 38,716 | 36,260 | 38,716 | 36,260 | $ 38,127 |
Ending balance, net of allowance for credit losses | $ 38,703 | $ 36,246 | $ 38,703 | $ 36,246 |
Transfers of Receivables - Asse
Transfers of Receivables - Assets and Liabilities of Securitizations (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | $ 8,835 | $ 8,835 | $ 8,077 | $ 5,675 | $ 8,886 | |
Financing and Loans and Leases Receivable Allowance | 644 | $ 588 | 548 | 541 | $ 512 | $ 422 |
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses | 137,528 | $ 127,852 | ||||
Related Debt | 132,380 | 126,492 | ||||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 2,511 | 3,047 | ||||
Related Debt | 43,302 | 43,730 | ||||
Securitization Transactions [Member] | Consolidated Entity Including Variable Interest Entities (VIE) [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 2,800 | 3,400 | ||||
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses | 68,700 | 70,300 | ||||
Financing and Loans and Leases Receivable Allowance | 200 | 200 | ||||
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses | 68,500 | 70,100 | ||||
Related Debt | 48,500 | 50,400 | ||||
Securitization Transactions [Member] | Consolidated Entity Including Variable Interest Entities (VIE) [Member] | Financing Receivable [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 2,300 | 2,900 | ||||
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses | 58,800 | 58,500 | ||||
Financing and Loans and Leases Receivable Allowance | 200 | 200 | ||||
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses | 58,600 | 58,300 | ||||
Related Debt | 42,200 | 43,000 | ||||
Securitization Transactions [Member] | Consolidated Entity Including Variable Interest Entities (VIE) [Member] | Retail [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 2,000 | 1,900 | ||||
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses | 35,200 | 32,500 | ||||
Financing and Loans and Leases Receivable Allowance | 200 | 200 | ||||
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses | 35,000 | 32,300 | ||||
Related Debt | 30,400 | 28,800 | ||||
Securitization Transactions [Member] | Consolidated Entity Including Variable Interest Entities (VIE) [Member] | Wholesale [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 300 | 1,000 | ||||
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses | 23,600 | 26,000 | ||||
Financing and Loans and Leases Receivable Allowance | 0 | 0 | ||||
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses | 23,600 | 26,000 | ||||
Related Debt | 11,800 | 14,200 | ||||
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 & Net Investment in Operating Leases, Before Allowance for Credit Losses | 9,900 | 11,800 | ||||
Financing and Loans and Leases Receivable Allowance | 0 | 0 | ||||
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses | 9,900 | 11,800 | ||||
Related Debt | 6,300 | 7,400 | ||||
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 2,500 | 3,000 | ||||
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses | 62,900 | 62,900 | ||||
Financing and Loans and Leases Receivable Allowance | 200 | 200 | ||||
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses | 62,700 | 62,700 | ||||
Related Debt | 43,300 | 43,700 | ||||
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Financing Receivable [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 2,000 | 2,500 | ||||
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses | 53,000 | 51,100 | ||||
Financing and Loans and Leases Receivable Allowance | 200 | 200 | ||||
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses | 52,800 | 50,900 | ||||
Related Debt | 37,000 | 36,300 | ||||
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Retail [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 1,700 | 1,500 | ||||
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses | 29,900 | 25,900 | ||||
Financing and Loans and Leases Receivable Allowance | 200 | 200 | ||||
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses | 29,700 | 25,700 | ||||
Related Debt | 25,700 | 22,700 | ||||
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Wholesale [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 300 | 1,000 | ||||
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses | 23,100 | 25,200 | ||||
Financing and Loans and Leases Receivable Allowance | 0 | 0 | ||||
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses | 23,100 | 25,200 | ||||
Related Debt | 11,300 | 13,600 | ||||
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 & Net Investment in Operating Leases, Before Allowance for Credit Losses | 9,900 | 11,800 | ||||
Financing and Loans and Leases Receivable Allowance | 0 | 0 | ||||
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses | 9,900 | 11,800 | ||||
Related Debt | 6,300 | 7,400 | ||||
Securitization Transactions [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 300 | 400 | ||||
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses | 5,800 | 7,400 | ||||
Financing and Loans and Leases Receivable Allowance | 0 | 0 | ||||
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses | 5,800 | 7,400 | ||||
Related Debt | 5,200 | 6,700 | ||||
Securitization Transactions [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Financing Receivable [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 300 | 400 | ||||
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses | 5,800 | 7,400 | ||||
Financing and Loans and Leases Receivable Allowance | 0 | 0 | ||||
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses | 5,800 | 7,400 | ||||
Related Debt | 5,200 | 6,700 | ||||
Securitization Transactions [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Retail [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 300 | 400 | ||||
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses | 5,300 | 6,600 | ||||
Financing and Loans and Leases Receivable Allowance | 0 | 0 | ||||
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses | 5,300 | 6,600 | ||||
Related Debt | 4,700 | 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 & Net Investment in Operating Leases, Before Allowance for Credit Losses | 500 | 800 | ||||
Financing and Loans and Leases Receivable Allowance | 0 | 0 | ||||
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses | 500 | 800 | ||||
Related Debt | 500 | 600 | ||||
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 & Net Investment in Operating Leases, Before Allowance for Credit Losses | 0 | 0 | ||||
Financing and Loans and Leases Receivable Allowance | 0 | 0 | ||||
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses | 0 | 0 | ||||
Related Debt | $ 0 | $ 0 |
Income Effect of Derivative Fin
Income Effect of Derivative Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 14 | $ 280 | $ 167 | $ 835 |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Net interest settlements and accruals excluded from the assessment of hedge effectiveness | 50 | 95 | 182 | 292 |
Ineffectiveness | 0 | (1) | 0 | 21 |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (40) | (228) | (95) | 655 |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 40 | 227 | 95 | (634) |
Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 20 | 21 | 57 | (70) |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (61) | 37 | (151) | 129 |
Not Designated as Hedging Instrument [Member] | Cross Currency Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 5 | $ 128 | $ 79 | $ 463 |
Balance Sheet Effect of Derivat
Balance Sheet Effect of Derivative Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Derivative, Collateral, Right to Reclaim Cash | $ 31 | $ 12 |
Derivative, Collateral, Obligation to Return Cash | 11 | 15 |
Notional | 96,676 | 99,856 |
Fair Value of Derivative Assets | 982 | 909 |
Fair Value of Derivative Liabilities | 420 | 166 |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Notional | 31,802 | 33,175 |
Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Notional | 57,144 | 61,689 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Notional | 3,732 | 1,791 |
Not Designated as Hedging Instrument [Member] | Cross Currency Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Notional | 3,998 | 3,201 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Not Offset, Policy Election Deduction | 226 | 113 |
Derivative Liability, Not Offset, Policy Election Deduction | 226 | 113 |
Fair Value of Derivative Assets | 982 | 909 |
Fair Value of Derivative Liabilities | 420 | 166 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Fair Value of Derivative Assets | 323 | 487 |
Fair Value of Derivative Liabilities | 132 | 80 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Fair Value of Derivative Assets | 227 | 156 |
Fair Value of Derivative Liabilities | 119 | 74 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Fair Value of Derivative Assets | 62 | 24 |
Fair Value of Derivative Liabilities | 147 | 4 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Not Designated as Hedging Instrument [Member] | Cross Currency Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Fair Value of Derivative Assets | 370 | 242 |
Fair Value of Derivative Liabilities | $ 22 | $ 8 |
Other Assets and Other Liabil45
Other Assets and Other Liabilities and Deferred Income (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | |
Other Assets [Abstract] | |||
Accrued interest and other non-finance receivables | $ 1,048 | $ 889 | |
Collateral held for resale, at net realizable value | 607 | 621 | |
Prepaid reinsurance premiums and other reinsurance receivables | 594 | 546 | |
Deferred charges - income taxes | 244 | 205 | |
Property and equipment, net of accumulated depreciation | 176 | 156 | |
Deferred charges | 129 | 122 | |
Restricted cash | 121 | 108 | |
Investment in non-consolidated affiliates | 113 | 153 | |
Other | 43 | 22 | |
Total other assets | 3,075 | 2,822 | |
Accumulated depreciation | 359 | 347 | |
Other Liabilities and Deferred Income [Abstract] | |||
Unearned insurance premiums and fees | 706 | 650 | |
Interest payable | 535 | 661 | |
Income tax and related interest | 281 | 294 | |
Deferred revenue | 152 | 143 | |
Payroll and employee benefits | 65 | 51 | |
Other | 281 | 198 | |
Total other liabilities and deferred income | 2,020 | 1,997 | |
Deferred Revenue, Admission Fees | 128 | $ 120 | $ 120 |
Admission Fee Revenue | $ 21 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total short-term debt | $ 17,692 | $ 15,359 |
Unamortized discount | (1) | (8) |
Unamortized issuance costs | (223) | (212) |
Fair value adjustments | 162 | 278 |
Total long-term debt | 114,688 | 111,133 |
Total debt | $ 132,380 | $ 126,492 |
Average Contractual (interest rate) | 2.50% | 2.40% |
Average Effective (interest rate) | 2.50% | 2.40% |
Short Term Debt Carrying Value Fair Value | $ 16,500 | $ 14,300 |
Floating Rate Demand Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 5,718 | 5,986 |
Unsecured commercial paper [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 5,627 | 4,507 |
Other short-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 5,196 | 3,803 |
Asset-backed Securities [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 1,151 | 1,063 |
Notes payable within one year | 16,496 | 19,286 |
Notes payable after one year | $ 30,909 | $ 30,112 |
Total short-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Average Contractual (interest rate) | 2.60% | 2.30% |
Average Effective (interest rate) | 2.60% | 2.30% |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable within one year | $ 13,487 | $ 12,369 |
Notes payable after one year | $ 53,858 | $ 49,308 |
Total long-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Average Contractual (interest rate) | 2.50% | 2.40% |
Average Effective (interest rate) | 2.50% | 2.50% |
Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 134,141 | $ 128,001 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Cumulative Translation Adjustment Summary [Roll Forward] | |||||
Beginning Balance | $ (609,000,000) | $ (576,000,000) | $ (890,000,000) | $ (607,000,000) | |
Net gain/(loss) on Foreign Currency Translation | 204,000,000 | (72,000,000) | 485,000,000 | (41,000,000) | |
Other Comprehensive Income (Loss), Net of Tax | 204,000,000 | (72,000,000) | 485,000,000 | (41,000,000) | |
Ending Balance | (405,000,000) | (648,000,000) | (405,000,000) | (648,000,000) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (405,000,000) | (648,000,000) | (405,000,000) | (648,000,000) | $ (890,000,000) |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax [Abstract] | |||||
Net gain/(loss) on foreign currency translation, tax adjustment | 0 | 0 | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Cumulative Translation Adjustment Summary [Roll Forward] | |||||
Other Comprehensive Income (Loss), Net of Tax | $ 204,000,000 | $ (72,000,000) | $ 485,000,000 | $ (41,000,000) |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Income and Expenses [Abstract] | ||||
Gains/(Losses) on derivatives | $ (36) | $ 186 | $ (15) | $ 545 |
Currency revaluation gains/(losses) | 51 | (157) | 73 | (585) |
Interest and investment income | 33 | 19 | 80 | 71 |
Insurance Fee Income | 0 | 21 | 0 | 68 |
Other | 9 | 40 | 35 | 125 |
Total other income, net | $ 57 | $ 109 | $ 173 | $ 224 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Total revenue | $ 2,863 | $ 2,796 | $ 8,396 | $ 8,092 | |
Income before income taxes | 600 | 567 | 1,700 | 1,481 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | 989 | 1,085 | 3,090 | 3,174 | |
Interest expense | 810 | 697 | 2,308 | 2,030 | |
Provision for credit losses | 169 | 138 | 420 | 403 | |
Net finance receivables and net investment in operating leases | 137,528 | 127,852 | 137,528 | 127,852 | |
Total assets | 154,478 | 142,992 | 154,478 | 142,992 | $ 146,089 |
Unallocated Other | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 0 | 45 | 0 | 10 | |
Income before income taxes | 20 | 45 | 100 | 10 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Net finance receivables and net investment in operating leases | (7,579) | (6,573) | (7,579) | (6,573) | |
Total assets | 0 | 0 | 0 | 0 | |
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 2,863 | 2,751 | 8,396 | 8,082 | |
Income before income taxes | 580 | 522 | 1,600 | 1,471 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | 989 | 1,085 | 3,090 | 3,174 | |
Interest expense | 810 | 697 | 2,308 | 2,030 | |
Provision for credit losses | 169 | 138 | 420 | 403 | |
Net finance receivables and net investment in operating leases | 145,107 | 134,425 | 145,107 | 134,425 | |
Total assets | 154,478 | 142,992 | 154,478 | 142,992 | |
Operating Segments [Member] | Americas [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 2,493 | 2,419 | 7,359 | 7,063 | |
Income before income taxes | 485 | 423 | 1,308 | 1,168 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | 975 | 1,072 | 3,055 | 3,149 | |
Interest expense | 669 | 586 | 1,930 | 1,687 | |
Provision for credit losses | 159 | 128 | 389 | 369 | |
Net finance receivables and net investment in operating leases | 115,331 | 111,110 | 115,331 | 111,110 | |
Total assets | 120,398 | 116,462 | 120,398 | 116,462 | |
Operating Segments [Member] | Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 247 | 244 | 709 | 761 | |
Income before income taxes | 72 | 79 | 223 | 257 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | 14 | 13 | 35 | 25 | |
Interest expense | 65 | 69 | 187 | 213 | |
Provision for credit losses | 7 | 6 | 21 | 21 | |
Net finance receivables and net investment in operating leases | 23,855 | 19,266 | 23,855 | 19,266 | |
Total assets | 27,323 | 22,150 | 27,323 | 22,150 | |
Operating Segments [Member] | Asia Pacific [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 123 | 88 | 328 | 258 | |
Income before income taxes | 23 | 20 | 69 | 46 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | 0 | 0 | 0 | 0 | |
Interest expense | 76 | 42 | 191 | 130 | |
Provision for credit losses | 3 | 4 | 10 | 13 | |
Net finance receivables and net investment in operating leases | 5,921 | 4,049 | 5,921 | 4,049 | |
Total assets | $ 6,757 | $ 4,380 | $ 6,757 | $ 4,380 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Minimum rentals on operating leases [Abstract] | ||
Guarantor Obligations, Current Carrying Value | $ 0 | $ 0 |
Counter Guarantee [Member] | Ford Motor Company [Member] | ||
Minimum rentals on operating leases [Abstract] | ||
Counter guarantee | 33,000,000 | 31,000,000 |
Financial Guarantee [Member] | ||
Minimum rentals on operating leases [Abstract] | ||
Maximum potential payments | $ 36,000,000 | $ 35,000,000 |