Document and Entity Information
Document and Entity Information Document | 9 Months Ended |
Sep. 30, 2018USD ($)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, 2018 |
Document Fiscal Year Focus | 2,018 |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financing revenue | ||||
Operating leases | $ 1,463 | $ 1,394 | $ 4,321 | $ 4,141 |
Retail financing | 983 | 891 | 2,890 | 2,518 |
Dealer financing | 519 | 462 | 1,624 | 1,389 |
Other | 20 | 17 | 62 | 51 |
Total financing revenue | 2,985 | 2,764 | 8,897 | 8,099 |
Depreciation on vehicles subject to operating leases | (907) | (989) | (2,898) | (3,090) |
Interest expense | (989) | (810) | (2,898) | (2,308) |
Net financing margin | 1,089 | 965 | 3,101 | 2,701 |
Other revenue | ||||
Insurance premiums earned | 39 | 38 | 123 | 120 |
Fee based revenue and other | 57 | 61 | 180 | 177 |
Total financing margin and other revenue | 1,185 | 1,064 | 3,404 | 2,998 |
Operating expenses | 368 | 324 | 1,070 | 930 |
Provision for credit losses (Note 6) | 156 | 169 | 367 | 420 |
Insurance expenses | 19 | 28 | 77 | 121 |
Total expenses | 543 | 521 | 1,514 | 1,471 |
Other income, net | 36 | 57 | 74 | 173 |
Income before income taxes | 678 | 600 | 1,964 | 1,700 |
Provision for income taxes | 160 | 186 | 266 | 507 |
Net income | $ 518 | $ 414 | $ 1,698 | $ 1,193 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net income | $ 518 | $ 414 | $ 1,698 | $ 1,193 |
Other comprehensive income/(loss), net of tax | ||||
Foreign currency translation | (49) | 204 | (300) | 485 |
Comprehensive income / (loss) | $ 469 | $ 618 | $ 1,398 | $ 1,678 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 10,997 | $ 9,558 |
Marketable securities | 1,740 | 2,881 |
Finance receivables, net | 116,044 | 116,003 |
Net investment in operating leases | 27,570 | 26,661 |
Notes and accounts receivable from affiliated companies | 971 | 1,076 |
Derivative financial instruments | 607 | 935 |
Other assets | 3,317 | 3,329 |
Total assets | 161,246 | 160,443 |
Liabilities | ||
Customer deposits, dealer reserves, and other | 1,140 | 1,171 |
Affiliated companies | 1,013 | 592 |
Total accounts payable | 2,153 | 1,763 |
Debt | 138,230 | 137,828 |
Deferred income taxes | 2,503 | 2,386 |
Derivative financial instruments | 1,102 | 310 |
Other liabilities and deferred income | 2,039 | 2,272 |
Total liabilities | 146,027 | 144,559 |
Shareholder's interest | ||
Shareholder's interest | 5,227 | 5,227 |
Accumulated other comprehensive income | (719) | (419) |
Retained earnings | 10,711 | 11,076 |
Total shareholder’s interest | 15,219 | 15,884 |
Total liabilities and shareholder's interest | 161,246 | 160,443 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
ASSETS | ||
Cash and cash equivalents | 2,746 | 3,479 |
Finance receivables, net | 56,412 | 56,250 |
Net investment in operating leases | 12,441 | 11,503 |
Derivative financial instruments | 55 | 64 |
Liabilities | ||
Debt | 50,564 | 46,437 |
Derivative financial instruments | $ 2 | $ 2 |
Consolidated Statement of Share
Consolidated Statement of Shareholder's Interest - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Shareholder's Interest [Roll Forward] | ||||
Balance at beginning of period | $ 15,884 | $ 12,803 | ||
Net income | $ 518 | $ 414 | 1,698 | 1,193 |
Other Comprehensive Income (Loss), Net of Tax | (300) | 485 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 9 | 9 | ||
Distributions declared | (2,063) | (406) | ||
Balance at end of period | 15,219 | 14,084 | 15,219 | 14,084 |
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 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | 0 | ||
Distributions declared | 0 | 0 | ||
Balance at end of period | 5,227 | 5,227 | 5,227 | 5,227 |
Accumulated Other Comprehensive Income/(Loss) (Note11) [Member] | ||||
Shareholder's Interest [Roll Forward] | ||||
Balance at beginning of period | (419) | (890) | ||
Net income | 0 | 0 | ||
Other Comprehensive Income (Loss), Net of Tax | (300) | 485 | ||
Distributions declared | 0 | 0 | ||
Balance at end of period | (719) | (405) | (719) | (405) |
Accumulated Other Comprehensive Income/(Loss) (Note11) [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Shareholder's Interest [Roll Forward] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | 0 | ||
Retained Earnings [Member] | ||||
Shareholder's Interest [Roll Forward] | ||||
Balance at beginning of period | 11,076 | 8,466 | ||
Net income | 1,698 | 1,193 | ||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | ||
Distributions declared | (2,063) | (406) | ||
Balance at end of period | $ 10,711 | 9,262 | $ 10,711 | 9,262 |
Retained Earnings [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Shareholder's Interest [Roll Forward] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 9 | $ 9 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities | ||
Net Cash Provided by (Used in) Operating Activities | $ 4,594 | $ 4,451 |
Cash flows from investing activities | ||
Purchases of finance receivables | (33,751) | (30,543) |
Principal collections of finance receivables | 31,993 | 27,254 |
Purchases of operating lease vehicles | (11,015) | (9,935) |
Proceeds From Liquidations of Operating Lease Vehicles | 7,086 | 6,623 |
Net change in wholesale receivables and other | 686 | 1,560 |
Purchases of marketable securities | (3,401) | (4,359) |
Proceeds from sales and maturities of marketable securities | 4,504 | 4,564 |
Settlements of derivatives | 228 | (48) |
All other investing activities | 117 | (18) |
Net Cash Provided by (Used in) Investing Activities | (3,553) | (4,902) |
Cash flows from financing activities | ||
Proceeds from issuances of long-term debt | 37,035 | 29,982 |
Principal payments on long-term debt | (32,588) | (30,291) |
Change in short-term debt, net | (1,677) | 1,709 |
Cash distributions to parent | (2,063) | (406) |
All other financing activities | (141) | (74) |
Net Cash Provided by (Used in) Financing Activities | 566 | 920 |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (145) | 302 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at January 1 | 9,682 | 8,185 |
Net increase/(decrease) in cash, cash equivalents, and restricted cash | 1,462 | 771 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at March 31 | $ 11,144 | $ 8,956 |
Presentation
Presentation number in Thousands | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Argentina was classified as having a highly inflationary economy due to the three-year cumulative consumer price index exceeding 100% . As a result, we changed the functional currency for our operations in Argentina from the Argentine peso to the U.S. dollar as of July 1, 2018. |
Presentation | 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, and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited financial statements include all adjustments considered necessary for a fair statement of the results of operations and financial condition for interim periods for Ford Motor Credit Company LLC, its consolidated subsidiaries and consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Results for interim periods should not be considered indicative of results for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2017 (“2017 Form 10-K Report”). We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation. In June 2018, Argentina was classified as having a highly inflationary economy due to the three-year cumulative consumer price index exceeding 100% . As a result, we changed the functional currency for our operations in Argentina from the Argentine peso to the U.S. dollar as of July 1, 2018. |
Consumer Price Index | 0.00% |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
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. For the third quarter and first nine months of 2018, our effective tax rates were 23.6% and 13.5% , respectively. During the first quarter of 2018, we recognized $ 235 million of benefit for non-U.S. capital loss carryforwards expected to be realized in the foreseeable future. Adoption of New Accounting Standards Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging. On January 1, 2018, we adopted the amendments to Accounting Standards Codification (“ASC”) 815 which aligns hedge accounting with risk management activities and simplifies the requirements to qualify for hedge accounting. Adoption did not have a material impact on our financial statements. We continue to assess opportunities enabled by the new standard to expand our risk management strategies. ASU 2016-01, Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities. On January 1, 2018, we adopted ASU 2016-01 and the related amendments. This standard amends various aspects of the recognition, measurement, presentation, and disclosure of financial instruments. We adopted the measurement alternative for equity investments without readily determinable fair values (often referred to as cost method investments) on a prospective basis. As a result, these investments will be revalued upon occurrence of an observable price change for similar investments and for impairments. We anticipate adoption may increase the volatility on our consolidated income statement. We also adopted the following ASUs during 2018 , none of which had a material impact to our financial statements or financial statement disclosures: ASU Effective Date 2017-08 Nonrefundable Fees and Other Costs - Premium Amortization on Purchased Callable Debt Securities January 1, 2018 2016-18 Statement of Cash Flows - Restricted Cash January 1, 2018 2016-16 Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory January 1, 2018 2016-15 Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments January 1, 2018 NOTE 2. ACCOUNTING POLICIES (Continued) Accounting Standards Issued But Not Yet Adopted The following represent the standards that will, or are expected to, result in a significant change in practice and / or have a significant financial impact to Ford Credit. 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. We plan to adopt the new standard on its effective date of January 1, 2020 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 obligations. We plan to adopt the new standard on its effective date of January 1, 2019. We anticipate adoption of the standard will add about $100 million of right-of-use assets and lease obligations to our consolidated balance sheet and will not significantly impact our income statement. 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 process of cataloging our existing lease contracts, assessing impact as a lessor, and implementing changes to our systems. |
Cash, Cash Equivalents, and Mar
Cash, Cash Equivalents, and Marketable Securities | 9 Months Ended |
Sep. 30, 2018 | |
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 (in millions): Fair Value Level December 31, 2017 September 30, 2018 Cash and cash equivalents U.S. government 1 $ — $ 569 U.S. government and agencies 2 300 422 Non-U.S. government and agencies 2 703 565 Corporate debt 2 25 889 Total marketable securities classified as cash equivalents 1,028 2,445 Cash, time deposits and money market funds 8,530 8,552 Total cash and cash equivalents $ 9,558 $ 10,997 Marketable Securities U.S. government 1 $ 966 $ 257 U.S. government and agencies 2 384 139 Non-U.S. government and agencies 2 660 888 Corporate debt 2 848 305 Other marketable securities 2 23 151 Total marketable securities $ 2,881 $ 1,740 Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash as reported in the statement of cash flows are presented separately on our consolidated balance sheet as follows (in millions): December 31, 2017 September 30, 2018 Cash and cash equivalents $ 9,558 $ 10,997 Restricted cash included in other assets (a) 124 147 Total cash, cash equivalents, and restricted cash $ 9,682 $ 11,144 __________ (a) 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. |
Finance Receivables
Finance Receivables | 9 Months Ended |
Sep. 30, 2018 | |
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, 2017 September 30, 2018 Consumer Retail financing, gross $ 78,467 $ 80,269 Unearned interest supplements from Ford and affiliated companies (3,280 ) (3,442 ) Consumer finance receivables 75,187 76,827 Non-Consumer Dealer financing 39,241 38,017 Other financing 2,172 1,786 Non-Consumer finance receivables 41,413 39,803 Total recorded investment $ 116,600 $ 116,630 Recorded investment in finance receivables $ 116,600 $ 116,630 Allowance for credit losses (597 ) (586 ) Finance receivables, net $ 116,003 $ 116,044 Net finance receivables subject to fair value (a) $ 112,717 $ 112,367 Fair value 112,133 111,591 __________ (a) At December 31, 2017 and September 30, 2018 , Finance receivables, net includes $3.3 billion and $3.7 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 both December 31, 2017 and September 30, 2018 was $241 million of accrued uncollected interest, which we report in Other assets on our balance sheet. Included in recorded investment in finance receivables at December 31, 2017 and September 30, 2018 , were consumer receivables of $38.9 billion and $38.8 billion , respectively, and non-consumer receivables of $24.5 billion and $ 23.3 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 $24 million and $21 million at December 31, 2017 and September 30, 2018 , respectively. The recorded investment of non-consumer receivables greater than 90 days past due and still accruing interest was $1 million and de minimis at December 31, 2017 and September 30, 2018 , respectively. The aging analysis of finance receivables balances was as follows (in millions): December 31, 2017 September 30, 2018 Consumer 31-60 days past due $ 748 $ 691 61-90 days past due 113 109 91-120 days past due 36 42 Greater than 120 days past due 37 40 Total past due 934 882 Current 74,253 75,945 Consumer finance receivables 75,187 76,827 Non-Consumer Total past due 122 77 Current 41,291 39,726 Non-Consumer finance receivables 41,413 39,803 Total recorded investment $ 116,600 $ 116,630 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; and • Substandard – greater than 120 days past due and for which the uncollectible portion of the receivables has already been charged off, as measured using the fair value of collateral less costs to sell. 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; and • 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, 2017 September 30, 2018 Dealer financing Group I $ 31,551 $ 30,704 Group II 5,912 5,532 Group III 1,640 1,616 Group IV 138 165 Total recorded investment $ 39,241 $ 38,017 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, 2017 and September 30, 2018 was $386 million and $379 million , or 0.5% and 0.5% of consumer receivables, respectively. The recorded investment of non-consumer receivables that were impaired at December 31, 2017 and September 30, 2018 was $138 million and $165 million , or 0.3% and 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 Investments in Operating Le
Net Investments in Operating Leases | 9 Months Ended |
Sep. 30, 2018 | |
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) $ 32,659 $ 33,703 Accumulated depreciation (5,927 ) (6,056 ) Net investment in operating leases before allowance for credit losses 26,732 27,647 Allowance for credit losses (71 ) (77 ) Net investment in operating leases $ 26,661 $ 27,570 __________ (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, 2017 and September 30, 2018 , net investment in operating leases before allowance for credit losses includes $11.5 billion and $12.4 billion, respectively, of net investment in operating leases that have been included in securitization transactions but continue to be reported in our consolidated financial statements. These net investments in operating leases are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions; they are not available to pay our other obligations or the claims of our other creditors. We hold the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions (see Note 7 for additional information). |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2018 | |
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 was as follows (in millions): 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. NOTE 6. ALLOWANCE FOR CREDIT LOSSES (Continued) Third Quarter 2018 Finance Receivables Net Investment in Operating Leases Total Allowance Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 573 $ 14 $ 587 $ 72 $ 659 Charge-offs (a) (128 ) (43 ) (171 ) (51 ) (222 ) Recoveries 40 4 44 26 70 Provision for credit losses 73 52 125 31 156 Other (b) 1 — 1 (1 ) — Ending balance $ 559 $ 27 $ 586 $ 77 $ 663 First Nine Months 2018 Finance Receivables Net Investment in Operating Leases Total Allowance Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 582 $ 15 $ 597 $ 71 $ 668 Charge-offs (a) (382 ) (46 ) (428 ) (149 ) (577 ) Recoveries 126 6 132 78 210 Provision for credit losses 237 52 289 78 367 Other (b) (4 ) — (4 ) (1 ) (5 ) Ending balance $ 559 $ 27 $ 586 $ 77 $ 663 Analysis of ending balance of allowance for credit losses Collective impairment allowance $ 538 $ 14 $ 552 $ 77 $ 629 Specific impairment allowance 21 13 34 — 34 Ending balance 559 27 586 77 $ 663 Analysis of ending balance of finance receivables and net investment in operating leases Collectively evaluated for impairment 76,448 39,638 116,086 27,647 Specifically evaluated for impairment 379 165 544 — Recorded investment 76,827 39,803 116,630 27,647 Ending balance, net of allowance for credit losses $ 76,268 $ 39,776 $ 116,044 $ 27,570 __________ (a) The charge-off of non-consumer (dealer financing) receivables primarily reflects a specific U.S. dealer’s wholesale vehicle inventory and dealer loan determined to be uncollectible. (b) Primarily represents amounts related to translation adjustments. |
Transfers of Receivables
Transfers of Receivables | 9 Months Ended |
Sep. 30, 2018 | |
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, 2017 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt (c) Before Allowance Allowance for After Allowance VIE (b) Retail financing $ 1.8 $ 32.6 $ 0.2 $ 32.4 $ 27.7 Wholesale financing 1.2 23.9 — 23.9 11.5 Finance receivables 3.0 56.5 0.2 56.3 39.2 Net investment in operating leases 0.5 11.5 — 11.5 7.2 Total VIE $ 3.5 $ 68.0 $ 0.2 $ 67.8 $ 46.4 Non-VIE Retail financing $ 0.3 $ 6.3 $ — $ 6.3 $ 5.7 Wholesale financing — 0.6 — 0.6 0.5 Finance receivables 0.3 6.9 — 6.9 6.2 Net investment in operating leases — — — — — Total Non-VIE $ 0.3 $ 6.9 $ — $ 6.9 $ 6.2 Total securitization transactions Retail financing $ 2.1 $ 38.9 $ 0.2 $ 38.7 $ 33.4 Wholesale financing 1.2 24.5 — 24.5 12.0 Finance receivables 3.3 63.4 0.2 63.2 45.4 Net investment in operating leases 0.5 11.5 — 11.5 7.2 Total securitization transactions $ 3.8 $ 74.9 $ 0.2 $ 74.7 $ 52.6 __________ (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, 2018 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 $ 1.9 $ 33.9 $ 0.2 $ 33.7 $ 29.4 Wholesale financing 0.3 22.7 — 22.7 13.5 Finance receivables 2.2 56.6 0.2 56.4 42.9 Net investment in operating leases 0.5 12.4 — 12.4 7.7 Total VIE $ 2.7 $ 69.0 $ 0.2 $ 68.8 $ 50.6 Non-VIE Retail financing $ 0.3 $ 4.9 $ — $ 4.9 $ 4.3 Wholesale financing — 0.6 — 0.6 0.5 Finance receivables 0.3 5.5 — 5.5 4.8 Net investment in operating leases — — — — — Total Non-VIE $ 0.3 $ 5.5 $ — $ 5.5 $ 4.8 Total securitization transactions Retail financing $ 2.2 $ 38.8 $ 0.2 $ 38.6 $ 33.7 Wholesale financing 0.3 23.3 — 23.3 14.0 Finance receivables 2.5 62.1 0.2 61.9 47.7 Net investment in operating leases 0.5 12.4 — 12.4 7.7 Total securitization transactions $ 3.0 $ 74.5 $ 0.2 $ 74.3 $ 55.4 __________ (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 cost. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2018 | |
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 and Note 9 for additional information regarding derivatives. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2018 | |
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 2017 2018 2017 2018 Fair value hedges Interest rate contracts Net interest settlements and accruals on hedging instruments $ 50 $ (5 ) 182 $ 19 Fair value changes on hedging instruments (a) (40 ) (102 ) (95 ) (531 ) Fair value changes on hedged debt (a) 40 110 95 521 Derivatives not designated as hedging instruments Interest rate contracts 20 9 57 (28 ) Foreign currency exchange contracts (b) (61 ) 6 (151 ) 104 Cross-currency interest rate swap contracts 5 (75 ) $ 79 (258 ) Total $ 14 $ (57 ) $ 167 $ (173 ) __________ (a) For 2017 , the fair value changes on hedging instruments and on hedged debt were recorded in Other income, net ; effective 2018 , these amounts were reported in Interest expense. (b) Reflects forward contracts between Ford Credit and an affiliated company. 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 exposure 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, 2017 September 30, 2018 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Fair value hedges Interest rate contracts $ 28,008 $ 248 $ 135 $ 27,769 $ 112 $ 632 Derivatives not designated as hedging instruments Interest rate contracts 60,504 276 137 68,226 250 298 Foreign currency exchange contracts 2,406 3 10 3,510 39 6 Cross-currency interest rate swap contracts 4,006 408 28 5,649 206 166 Total derivative financial instruments, gross (a) (b) $ 94,924 $ 935 $ 310 $ 105,154 $ 607 $ 1,102 __________ (a) At December 31, 2017 and September 30, 2018 , we held collateral of $15 million and $16 million , respectively, and we posted collateral of $38 million and $59 million , respectively. (b) At December 31, 2017 and September 30, 2018 , the fair value of assets and liabilities available for counterparty netting was $162 million and $146 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, 2018 | |
Other Assets and Other Liabilities and Deferred Income [Abstract] | |
OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED INCOME | OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED REVENUE Other assets and other liabilities and deferred revenue consist of various balance sheet items that are combined for financial statement presentation due to their respective materiality compared with other individual asset and liability items. Other assets were as follows (in millions): December 31, September 30, Accrued interest and other non-finance receivables $ 1,117 $ 1,075 Collateral held for resale, at net realizable value, and other inventory 780 740 Prepaid reinsurance premiums and other reinsurance recoverables 611 651 Deferred charges – income taxes 247 225 Property and equipment, net of accumulated depreciation (a) 177 187 Restricted cash 124 147 Investment in non-consolidated affiliates 107 117 Deferred charges 127 95 Other 39 80 Total other assets $ 3,329 $ 3,317 __________ (a) Accumulated depreciation was $354 million and $361 million at December 31, 2017 and September 30, 2018 , respectively. Other liabilities and deferred revenue were as follows (in millions): December 31, September 30, Unearned insurance premiums and fees $ 723 $ 769 Interest payable 722 572 Income tax and related interest (a) 301 290 Deferred revenue 148 103 Payroll and employee benefits 68 70 Other 310 235 Total other liabilities and deferred income $ 2,272 $ 2,039 __________ (a) Includes tax and interest payable to affiliated companies of $ 99 million and $ 94 million at December 31, 2017 and September 30, 2018 , respectively. We have investments in entities for which we do not have the ability to exercise significant influence and fair values are not readily available. We have elected to record these investments at cost (less impairment, if any), adjusted for changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. We report the carrying value of these investments in Other assets in our consolidated balance sheet. These investments were $ 7 million and $ 9 million at December 31, 2017 and September 30, 2018 , respectively. There were no material adjustments to the fair values of these investments during the period ending September 30, 2018 . 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 $124 million and $76 million at December 31, 2017 and September 30, 2018 , respectively. 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. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | DEBT AND COMMITMENTS Debt outstanding and interest rates were as follows (in millions): Interest Rates Debt Average Contractual Average Effective December 31, September 30, 2017 2018 2017 2018 Short-term debt Unsecured debt Floating rate demand notes $ 5,660 $ 5,939 Commercial paper 4,889 4,175 Other short-term debt 5,890 3,698 Asset-backed debt 786 1,564 Total short-term debt 17,225 15,376 3.0 % 3.1 % 3.0 % 3.1 % Long-term debt Unsecured debt Notes payable within one year 13,298 13,123 Notes payable after one year 55,687 56,591 Asset-backed debt (a) Notes payable within one year 17,817 19,139 Notes payable after one year 34,051 34,784 Unamortized discount (1 ) — Unamortized issuance costs (228 ) (224 ) Fair value adjustments (b) (21 ) (559 ) Total long-term debt 120,603 122,854 2.5 % 2.7 % 2.6 % 2.8 % Total debt $ 137,828 $ 138,230 2.6 % 2.8 % 2.6 % 2.8 % Fair value of debt (c) $ 139,677 $ 138,374 __________ (a) Asset-backed debt issued in securitizations is the obligation of the consolidated securitization entity that issued the debt and is payable only out of collections on the underlying securitized assets and related enhancements. This asset-backed debt is not the obligation of Ford Credit or our other subsidiaries. (b) These adjustments relate to designated fair value hedges. The carrying value of hedged debt was $39.0 billion and $39.1 billion at December 31, 2017 and September 30, 2018 , respectively. (c) The fair value of debt includes $16.4 billion and $13.8 billion of short-term debt at December 31, 2017 and September 30, 2018 , 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 | 9 Months Ended |
Sep. 30, 2018 | |
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 2017 2018 2017 2018 Beginning AOCI balance $ (609 ) $ (670 ) $ (890 ) $ (419 ) Net gain / (loss) on foreign currency translation 204 (49 ) 485 (300 ) Ending AOCI balance $ (405 ) $ (719 ) $ (405 ) $ (719 ) |
Other Income, Net
Other Income, Net | 9 Months Ended |
Sep. 30, 2018 | |
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 2017 2018 2017 2018 Gains / (Losses) on derivatives $ (36 ) $ (60 ) $ (15 ) $ (182 ) Currency revaluation gains / (losses) 51 36 73 80 Interest and investment income 33 49 80 140 Other 9 11 35 36 Total other income, net $ 57 $ 36 $ 173 $ 74 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | Key financial information 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 2017 Total revenue $ 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 Third Quarter 2018 Total revenue $ 2,677 $ 284 $ 120 $ 3,081 $ — $ 3,081 Income before income taxes 556 89 13 658 20 678 Other disclosures: Depreciation on vehicles subject to operating leases 895 12 — 907 — 907 Interest expense 848 68 75 991 (2 ) 989 Provision for credit losses 145 1 10 156 — 156 First Nine Months 2017 Total revenue $ 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 First Nine Months 2018 Total revenue $ 7,918 $ 878 $ 404 $ 9,200 $ — $ 9,200 Income before income taxes 1,619 303 86 2,008 (44 ) 1,964 Other disclosures: Depreciation on vehicles subject to operating leases 2,878 20 — 2,898 — 2,898 Interest expense 2,430 216 256 2,902 (4 ) 2,898 Provision for credit losses 340 14 13 367 — 367 Net finance receivables and net investment in operating leases 120,425 25,995 5,720 152,140 (8,526 ) 143,614 Total assets 128,103 27,120 6,023 161,246 — 161,246 __________ (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). We conduct our financing operations directly and indirectly through our subsidiaries and affiliates. We offer substantially similar products and services throughout many different regions, subject to local legal restrictions and market conditions. We segment our business based on geographic regions: the Americas, Europe, and Asia Pacific. Items excluded in assessing segment performance because they are managed at the corporate level, including market valuation adjustments to derivatives and exchange-rate fluctuations on foreign currency-denominated transactions, are reflected in Unallocated Other. The following is a brief description of our segments: • Americas Segment – United States, Canada, Mexico, Brazil, and Argentina • Europe Segment – European region and South Africa • Asia Pacific Segment – China and India |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
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 $52 million and $55 million at December 31, 2017 and September 30, 2018 , respectively. Of these values, $44 million at both December 31, 2017 and September 30, 2018 , respectively, were counter-guaranteed by Ford to us. There were no recorded liabilities related to guarantees and limited indemnities at December 31, 2017 or September 30, 2018 . 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. On October 5, 2018, FCE Bank plc received a notice from the Italian Competition Authority (the “ICA”) concerning an alleged violation of Article 101 of the Treaty on the Functioning of the European Union. While we have determined that an adverse outcome is not probable, the reasonably possible loss could be up to $ 300 million . If the matter results in an adverse outcome at the administrative phase of the proceedings, based on our understanding of the facts we have grounds to challenge and would appeal to the administrative court based in Rome. We could be required to pay a fine during the appellate process, with the ultimate resolution of the matter potentially taking several years. 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, 2018 | |
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, and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited financial statements include all adjustments considered necessary for a fair statement of the results of operations and financial condition for interim periods for Ford Motor Credit Company LLC, its consolidated subsidiaries and consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Results for interim periods should not be considered indicative of results for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2017 (“2017 Form 10-K Report”). We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). |
Reclassifications [Abstract] | |
Comparability of Prior Year Financial Data, Policy [Policy Text Block] | We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Argentina was classified as having a highly inflationary economy due to the three-year cumulative consumer price index exceeding 100% . As a result, we changed the functional currency for our operations in Argentina from the Argentine peso to the U.S. dollar as of July 1, 2018. |
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. A restructuring of debt constitutes a TDR if we grant a concession to a debtor for economic or legal reasons related to the debtor’s financial difficulties that we otherwise would not consider. Consumer and non-consumer receivables that have a modified interest rate below market rate or that were modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code, except non-consumer receivables that are current with minimal risk of loss, are considered to be TDRs. We do not grant concessions on the principal balance of our receivables. If a receivable is modified in a reorganization proceeding, all payment requirements of the reorganization plan need to be met before remaining balances are forgiven. Finance receivables involved in TDRs are specifically assessed for impairment. The accrual of revenue is discontinued at the time a receivable is determined to be uncollectible. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance. |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Policy [Policy Text Block] | We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting. |
Commitments and Contingencies Disclosure [Abstract] | |
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. 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. 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. |
Cash, Cash Equivalents, and M_2
Cash, Cash Equivalents, and Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table categorizes the fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis (in millions): Fair Value Level December 31, 2017 September 30, 2018 Cash and cash equivalents U.S. government 1 $ — $ 569 U.S. government and agencies 2 300 422 Non-U.S. government and agencies 2 703 565 Corporate debt 2 25 889 Total marketable securities classified as cash equivalents 1,028 2,445 Cash, time deposits and money market funds 8,530 8,552 Total cash and cash equivalents $ 9,558 $ 10,997 Marketable Securities U.S. government 1 $ 966 $ 257 U.S. government and agencies 2 384 139 Non-U.S. government and agencies 2 660 888 Corporate debt 2 848 305 Other marketable securities 2 23 151 Total marketable securities $ 2,881 $ 1,740 |
Schedule of cash, cash equivalents and restricted cash [Table Text Block] | Cash, cash equivalents, and restricted cash as reported in the statement of cash flows are presented separately on our consolidated balance sheet as follows (in millions): December 31, 2017 September 30, 2018 Cash and cash equivalents $ 9,558 $ 10,997 Restricted cash included in other assets (a) 124 147 Total cash, cash equivalents, and restricted cash $ 9,682 $ 11,144 __________ (a) 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. |
Finance Receivables (Tables)
Finance Receivables (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2017 September 30, 2018 Consumer Retail financing, gross $ 78,467 $ 80,269 Unearned interest supplements from Ford and affiliated companies (3,280 ) (3,442 ) Consumer finance receivables 75,187 76,827 Non-Consumer Dealer financing 39,241 38,017 Other financing 2,172 1,786 Non-Consumer finance receivables 41,413 39,803 Total recorded investment $ 116,600 $ 116,630 Recorded investment in finance receivables $ 116,600 $ 116,630 Allowance for credit losses (597 ) (586 ) Finance receivables, net $ 116,003 $ 116,044 Net finance receivables subject to fair value (a) $ 112,717 $ 112,367 Fair value 112,133 111,591 __________ (a) At December 31, 2017 and September 30, 2018 , Finance receivables, net includes $3.3 billion and $3.7 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, 2017 September 30, 2018 Consumer 31-60 days past due $ 748 $ 691 61-90 days past due 113 109 91-120 days past due 36 42 Greater than 120 days past due 37 40 Total past due 934 882 Current 74,253 75,945 Consumer finance receivables 75,187 76,827 Non-Consumer Total past due 122 77 Current 41,291 39,726 Non-Consumer finance receivables 41,413 39,803 Total recorded investment $ 116,600 $ 116,630 |
Non-Consumer Segment [Member] | |
Financing Receivables [Line Items] | |
Schedule of Financing Receivable Credit Quality Indicators [Table Text Block] | The credit quality analysis of our dealer financing receivables was as follows (in millions): December 31, 2017 September 30, 2018 Dealer financing Group I $ 31,551 $ 30,704 Group II 5,912 5,532 Group III 1,640 1,616 Group IV 138 165 Total recorded investment $ 39,241 $ 38,017 |
Net Investment in Operating Lea
Net Investment in Operating Leases (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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) $ 32,659 $ 33,703 Accumulated depreciation (5,927 ) (6,056 ) Net investment in operating leases before allowance for credit losses 26,732 27,647 Allowance for credit losses (71 ) (77 ) Net investment in operating leases $ 26,661 $ 27,570 __________ (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, 2018 | |
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 was as follows (in millions): 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. NOTE 6. ALLOWANCE FOR CREDIT LOSSES (Continued) Third Quarter 2018 Finance Receivables Net Investment in Operating Leases Total Allowance Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 573 $ 14 $ 587 $ 72 $ 659 Charge-offs (a) (128 ) (43 ) (171 ) (51 ) (222 ) Recoveries 40 4 44 26 70 Provision for credit losses 73 52 125 31 156 Other (b) 1 — 1 (1 ) — Ending balance $ 559 $ 27 $ 586 $ 77 $ 663 First Nine Months 2018 Finance Receivables Net Investment in Operating Leases Total Allowance Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 582 $ 15 $ 597 $ 71 $ 668 Charge-offs (a) (382 ) (46 ) (428 ) (149 ) (577 ) Recoveries 126 6 132 78 210 Provision for credit losses 237 52 289 78 367 Other (b) (4 ) — (4 ) (1 ) (5 ) Ending balance $ 559 $ 27 $ 586 $ 77 $ 663 Analysis of ending balance of allowance for credit losses Collective impairment allowance $ 538 $ 14 $ 552 $ 77 $ 629 Specific impairment allowance 21 13 34 — 34 Ending balance 559 27 586 77 $ 663 Analysis of ending balance of finance receivables and net investment in operating leases Collectively evaluated for impairment 76,448 39,638 116,086 27,647 Specifically evaluated for impairment 379 165 544 — Recorded investment 76,827 39,803 116,630 27,647 Ending balance, net of allowance for credit losses $ 76,268 $ 39,776 $ 116,044 $ 27,570 __________ (a) The charge-off of non-consumer (dealer financing) receivables primarily reflects a specific U.S. dealer’s wholesale vehicle inventory and dealer loan determined to be uncollectible. (b) Primarily represents amounts related to translation adjustments. |
Transfers of Receivables (Table
Transfers of Receivables (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2017 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt (c) Before Allowance Allowance for After Allowance VIE (b) Retail financing $ 1.8 $ 32.6 $ 0.2 $ 32.4 $ 27.7 Wholesale financing 1.2 23.9 — 23.9 11.5 Finance receivables 3.0 56.5 0.2 56.3 39.2 Net investment in operating leases 0.5 11.5 — 11.5 7.2 Total VIE $ 3.5 $ 68.0 $ 0.2 $ 67.8 $ 46.4 Non-VIE Retail financing $ 0.3 $ 6.3 $ — $ 6.3 $ 5.7 Wholesale financing — 0.6 — 0.6 0.5 Finance receivables 0.3 6.9 — 6.9 6.2 Net investment in operating leases — — — — — Total Non-VIE $ 0.3 $ 6.9 $ — $ 6.9 $ 6.2 Total securitization transactions Retail financing $ 2.1 $ 38.9 $ 0.2 $ 38.7 $ 33.4 Wholesale financing 1.2 24.5 — 24.5 12.0 Finance receivables 3.3 63.4 0.2 63.2 45.4 Net investment in operating leases 0.5 11.5 — 11.5 7.2 Total securitization transactions $ 3.8 $ 74.9 $ 0.2 $ 74.7 $ 52.6 __________ (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, 2018 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 $ 1.9 $ 33.9 $ 0.2 $ 33.7 $ 29.4 Wholesale financing 0.3 22.7 — 22.7 13.5 Finance receivables 2.2 56.6 0.2 56.4 42.9 Net investment in operating leases 0.5 12.4 — 12.4 7.7 Total VIE $ 2.7 $ 69.0 $ 0.2 $ 68.8 $ 50.6 Non-VIE Retail financing $ 0.3 $ 4.9 $ — $ 4.9 $ 4.3 Wholesale financing — 0.6 — 0.6 0.5 Finance receivables 0.3 5.5 — 5.5 4.8 Net investment in operating leases — — — — — Total Non-VIE $ 0.3 $ 5.5 $ — $ 5.5 $ 4.8 Total securitization transactions Retail financing $ 2.2 $ 38.8 $ 0.2 $ 38.6 $ 33.7 Wholesale financing 0.3 23.3 — 23.3 14.0 Finance receivables 2.5 62.1 0.2 61.9 47.7 Net investment in operating leases 0.5 12.4 — 12.4 7.7 Total securitization transactions $ 3.0 $ 74.5 $ 0.2 $ 74.3 $ 55.4 __________ (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 cost. |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The gains / (losses), by hedge designation, recorded in income for the periods ended September 30 were as follows (in millions): Third Quarter First Nine Months 2017 2018 2017 2018 Fair value hedges Interest rate contracts Net interest settlements and accruals on hedging instruments $ 50 $ (5 ) 182 $ 19 Fair value changes on hedging instruments (a) (40 ) (102 ) (95 ) (531 ) Fair value changes on hedged debt (a) 40 110 95 521 Derivatives not designated as hedging instruments Interest rate contracts 20 9 57 (28 ) Foreign currency exchange contracts (b) (61 ) 6 (151 ) 104 Cross-currency interest rate swap contracts 5 (75 ) $ 79 (258 ) Total $ 14 $ (57 ) $ 167 $ (173 ) __________ (a) For 2017 , the fair value changes on hedging instruments and on hedged debt were recorded in Other income, net ; effective 2018 , these amounts were reported in Interest expense. (b) Reflects forward contracts between Ford Credit and an affiliated company. |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The fair value of our derivative instruments and the associated notional amounts, presented gross, were as follows (in millions): December 31, 2017 September 30, 2018 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Fair value hedges Interest rate contracts $ 28,008 $ 248 $ 135 $ 27,769 $ 112 $ 632 Derivatives not designated as hedging instruments Interest rate contracts 60,504 276 137 68,226 250 298 Foreign currency exchange contracts 2,406 3 10 3,510 39 6 Cross-currency interest rate swap contracts 4,006 408 28 5,649 206 166 Total derivative financial instruments, gross (a) (b) $ 94,924 $ 935 $ 310 $ 105,154 $ 607 $ 1,102 __________ (a) At December 31, 2017 and September 30, 2018 , we held collateral of $15 million and $16 million , respectively, and we posted collateral of $38 million and $59 million , respectively. (b) At December 31, 2017 and September 30, 2018 , the fair value of assets and liabilities available for counterparty netting was $162 million and $146 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy. |
Other Assets and Other Liabil_2
Other Assets and Other Liabilities and Deferred Income (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 $ 1,117 $ 1,075 Collateral held for resale, at net realizable value, and other inventory 780 740 Prepaid reinsurance premiums and other reinsurance recoverables 611 651 Deferred charges – income taxes 247 225 Property and equipment, net of accumulated depreciation (a) 177 187 Restricted cash 124 147 Investment in non-consolidated affiliates 107 117 Deferred charges 127 95 Other 39 80 Total other assets $ 3,329 $ 3,317 __________ (a) Accumulated depreciation was $354 million and $361 million at December 31, 2017 and September 30, 2018 , respectively. Other liabilities and deferred revenue were as follows (in millions): December 31, September 30, Unearned insurance premiums and fees $ 723 $ 769 Interest payable 722 572 Income tax and related interest (a) 301 290 Deferred revenue 148 103 Payroll and employee benefits 68 70 Other 310 235 Total other liabilities and deferred income $ 2,272 $ 2,039 __________ (a) Includes tax and interest payable to affiliated companies of $ 99 million and $ 94 million at December 31, 2017 and September 30, 2018 , respectively. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Interest Rates Debt Average Contractual Average Effective December 31, September 30, 2017 2018 2017 2018 Short-term debt Unsecured debt Floating rate demand notes $ 5,660 $ 5,939 Commercial paper 4,889 4,175 Other short-term debt 5,890 3,698 Asset-backed debt 786 1,564 Total short-term debt 17,225 15,376 3.0 % 3.1 % 3.0 % 3.1 % Long-term debt Unsecured debt Notes payable within one year 13,298 13,123 Notes payable after one year 55,687 56,591 Asset-backed debt (a) Notes payable within one year 17,817 19,139 Notes payable after one year 34,051 34,784 Unamortized discount (1 ) — Unamortized issuance costs (228 ) (224 ) Fair value adjustments (b) (21 ) (559 ) Total long-term debt 120,603 122,854 2.5 % 2.7 % 2.6 % 2.8 % Total debt $ 137,828 $ 138,230 2.6 % 2.8 % 2.6 % 2.8 % Fair value of debt (c) $ 139,677 $ 138,374 __________ (a) Asset-backed debt issued in securitizations is the obligation of the consolidated securitization entity that issued the debt and is payable only out of collections on the underlying securitized assets and related enhancements. This asset-backed debt is not the obligation of Ford Credit or our other subsidiaries. (b) These adjustments relate to designated fair value hedges. The carrying value of hedged debt was $39.0 billion and $39.1 billion at December 31, 2017 and September 30, 2018 , respectively. (c) The fair value of debt includes $16.4 billion and $13.8 billion of short-term debt at December 31, 2017 and September 30, 2018 , respectively, carried at cost, which approximates fair value. All other debt is categorized within Level 2 of the fair value hierarchy. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 2017 2018 2017 2018 Beginning AOCI balance $ (609 ) $ (670 ) $ (890 ) $ (419 ) Net gain / (loss) on foreign currency translation 204 (49 ) 485 (300 ) Ending AOCI balance $ (405 ) $ (719 ) $ (405 ) $ (719 ) |
Other Income, Net (Tables)
Other Income, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 2017 2018 2017 2018 Gains / (Losses) on derivatives $ (36 ) $ (60 ) $ (15 ) $ (182 ) Currency revaluation gains / (losses) 51 36 73 80 Interest and investment income 33 49 80 140 Other 9 11 35 36 Total other income, net $ 57 $ 36 $ 173 $ 74 |
Segment and Geographic Informat
Segment and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Key financial information for our business segments for the periods ended or at September 30 were as follows (in millions): Americas Europe Asia Pacific Total Segments Unallocated Other (a) Total Third Quarter 2017 Total revenue $ 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 Third Quarter 2018 Total revenue $ 2,677 $ 284 $ 120 $ 3,081 $ — $ 3,081 Income before income taxes 556 89 13 658 20 678 Other disclosures: Depreciation on vehicles subject to operating leases 895 12 — 907 — 907 Interest expense 848 68 75 991 (2 ) 989 Provision for credit losses 145 1 10 156 — 156 First Nine Months 2017 Total revenue $ 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 First Nine Months 2018 Total revenue $ 7,918 $ 878 $ 404 $ 9,200 $ — $ 9,200 Income before income taxes 1,619 303 86 2,008 (44 ) 1,964 Other disclosures: Depreciation on vehicles subject to operating leases 2,878 20 — 2,898 — 2,898 Interest expense 2,430 216 256 2,902 (4 ) 2,898 Provision for credit losses 340 14 13 367 — 367 Net finance receivables and net investment in operating leases 120,425 25,995 5,720 152,140 (8,526 ) 143,614 Total assets 128,103 27,120 6,023 161,246 — 161,246 __________ (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). |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 23.60% | 13.50% | ||
Capital Loss Carryforward | $ 235 | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 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 | $ 100 | ||
Minimum [Member] | Accounting Standards Update 2016-02 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating Lease Liability Expected | $ 100 | $ 100 |
Cash, Cash Equivalents, and M_3
Cash, Cash Equivalents, and Marketable Securities (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Total cash and cash equivalents | $ 10,997 | $ 10,997 | $ 9,558 | ||
Restricted Cash | 147 | 124 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 11,144 | 9,682 | $ 8,956 | $ 8,185 | |
Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash and cash equivalents | 2,445 | 1,028 | |||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Marketable securities | 1,740 | 2,881 | |||
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 | 8,552 | 8,530 | |||
US Government [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash and cash equivalents | 569 | 0 | |||
Marketable securities | 257 | 966 | |||
US Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash and cash equivalents | 422 | 300 | |||
Marketable securities | 139 | 384 | |||
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 | 565 | 703 | |||
Marketable securities | 888 | 660 | |||
Corporate debt [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash and cash equivalents | 889 | 25 | |||
Marketable securities | 305 | 848 | |||
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 | $ 151 | $ 23 |
Finance Receivables Net (Detail
Finance Receivables Net (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Net Finance Receivables [Abstract] | ||||||
Financing Receivable, Gross | $ 116,630 | $ 116,600 | $ 111,172 | |||
Allowance for credit losses | (586) | $ (587) | (597) | (575) | $ (522) | $ (484) |
Financing Receivable, Net | 116,044 | 116,003 | 110,597 | |||
Net finance receivables subject to fair value | 112,367 | 112,717 | ||||
Finance receivables not subject to fair value | 3,700 | 3,300 | ||||
Uncollected interest receivable excluded from finance receivable | 241 | 241 | ||||
Consumer Segment [Member] | ||||||
Net Finance Receivables [Abstract] | ||||||
Financing Receivable, Gross | 76,827 | 75,187 | 72,456 | |||
Allowance for credit losses | (559) | (573) | (582) | (562) | (507) | (469) |
Financing Receivable, Net | 76,268 | 71,894 | ||||
Continuing Involvement with Continued to be Recognized Transferred Financial Assets, Amount Outstanding | 38,800 | 38,900 | ||||
Non-Consumer Segment [Member] | ||||||
Net Finance Receivables [Abstract] | ||||||
Financing Receivable, Gross | 39,803 | 41,413 | 38,716 | |||
Allowance for credit losses | (27) | $ (14) | (15) | (13) | $ (15) | $ (15) |
Financing Receivable, Net | 39,776 | $ 38,703 | ||||
Continuing Involvement with Continued to be Recognized Transferred Financial Assets, Amount Outstanding | 23,300 | 24,500 | ||||
Retail [Member] | Consumer Segment [Member] | ||||||
Net Finance Receivables [Abstract] | ||||||
Finance receivables before unearned interest supplements | 80,269 | 78,467 | ||||
Unearned interest supplements from Ford and affiliated companies | (3,442) | (3,280) | ||||
Financing Receivable, Gross | 76,827 | 75,187 | ||||
Wholesale and Dealer Loans [Member] | Non-Consumer Segment [Member] | ||||||
Net Finance Receivables [Abstract] | ||||||
Financing Receivable, Gross | 38,017 | 39,241 | ||||
Other Finance Receivables [Member] | Non-Consumer Segment [Member] | ||||||
Net Finance Receivables [Abstract] | ||||||
Financing Receivable, Gross | 1,786 | 2,172 | ||||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Net Finance Receivables [Abstract] | ||||||
Fair value | $ 111,591 | $ 112,133 |
Finance Receivables - Aging Ana
Finance Receivables - Aging Analysis (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold Period For Past Due Finance Receivables | 31 days | ||
Finance Receivables Aging Analysis [Abstract] | |||
Financing Receivables | $ 116,630 | $ 116,600 | $ 111,172 |
Uncollected Interest Receivable Excluded From Finance Receivable | 241 | 241 | |
Consumer Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 21 | 24 | |
Finance Receivables Aging Analysis [Abstract] | |||
Total past due | 882 | 934 | |
Current | 75,945 | 74,253 | |
Financing Receivables | 76,827 | 75,187 | 72,456 |
Non-Consumer Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 1 | |
Finance Receivables Aging Analysis [Abstract] | |||
Total past due | 77 | 122 | |
Current | 39,726 | 41,291 | |
Financing Receivables | 39,803 | 41,413 | $ 38,716 |
31-60 Days Past Due [Member] | Consumer Segment [Member] | |||
Finance Receivables Aging Analysis [Abstract] | |||
Total past due | 691 | 748 | |
61-90 Days Past Due [Member] | Consumer Segment [Member] | |||
Finance Receivables Aging Analysis [Abstract] | |||
Total past due | 109 | 113 | |
91-120 Days Past Due [Member] | Consumer Segment [Member] | |||
Finance Receivables Aging Analysis [Abstract] | |||
Total past due | 42 | 36 | |
Greater Than 120 Days Past Due [Member] | Consumer Segment [Member] | |||
Finance Receivables Aging Analysis [Abstract] | |||
Total past due | $ 40 | $ 37 |
Finance Receivables - Credit Qu
Finance Receivables - Credit Quality and Impaired Receivables (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | $ 116,630 | $ 116,600 | $ 111,172 |
Consumer Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold Period for Impaired Finance Receivables | 120 days | ||
Financing Receivables | $ 76,827 | 75,187 | 72,456 |
Impaired Financing Receivable, Recorded Investment | $ 379 | $ 386 | |
Impaired Financing Receivable Recorded Investment, Percentage of Receivable | 0.50% | 0.50% | |
Consumer Segment [Member] | Pass [Member] | Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance Receivables Credit Quality Ratings Term Range | 60 days | ||
Consumer Segment [Member] | Special Mention [Member] | Minimum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance Receivables Credit Quality Ratings Term Range | 61 days | ||
Consumer Segment [Member] | Special Mention [Member] | Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance Receivables Credit Quality Ratings Term Range | 120 days | ||
Consumer Segment [Member] | Substandard [Member] | Minimum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance Receivables Credit Quality Ratings Term Range | 120 days | ||
Non-Consumer Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | $ 39,803 | $ 41,413 | $ 38,716 |
Impaired Financing Receivable, Recorded Investment | $ 165 | $ 138 | |
Impaired Financing Receivable Recorded Investment, Percentage of Receivable | 0.40% | 0.30% | |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | $ 38,017 | $ 39,241 | |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group I | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | 30,704 | 31,551 | |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group II | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | 5,532 | 5,912 | |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group III | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | 1,616 | 1,640 | |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group IV | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | $ 165 | $ 138 |
Net Investments in Operating _2
Net Investments in Operating Leases (Details) - USD ($) $ in Millions | 9 Months Ended | |||||
Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Property Subject to or Available for Operating Lease [Line Items] | ||||||
Length of lease contract | 60 months or less | |||||
Vehicles, at cost | $ 33,703 | $ 32,659 | ||||
Accumulated depreciation | (6,056) | (5,927) | ||||
Net investment in operating leases before allowance for credit losses | 27,647 | 26,732 | $ 27,000 | |||
Allowance for credit losses | (77) | $ (72) | (71) | (69) | $ (66) | $ (64) |
Net investment in operating leases | 27,570 | 26,661 | $ 26,931 | |||
Net Investment in Operating Leases [Member] | ||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||
Continuing Involvement with Continued to be Recognized Transferred Financial Assets, Amount Outstanding | $ 12,400 | $ 11,500 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Allowance for credit losses, finance receivables | |||||
Beginning balance | $ 587 | $ 522 | $ 597 | $ 484 | |
Charge-offs | (171) | (132) | (428) | (369) | |
Recoveries | 44 | 40 | 132 | 113 | |
Provision for credit losses | 125 | 140 | 289 | 334 | |
Other | 1 | 5 | (4) | 13 | |
Ending balance | 586 | 575 | 586 | 575 | |
Analysis of ending balance of allowance for credit losses, finance receivables | |||||
Collective impairment allowance | 552 | 554 | 552 | 554 | |
Specific impairment allowance | 34 | 21 | 34 | 21 | |
Ending balance | 586 | 575 | 586 | 575 | |
Analysis of ending balance of finance receivables | |||||
Collectively evaluated for impairment | 116,086 | 110,633 | 116,086 | 110,633 | |
Specifically evaluated for impairment | 544 | 539 | 544 | 539 | |
Financing Receivables | 116,630 | 111,172 | 116,630 | 111,172 | $ 116,600 |
Allowance for credit losses, net investment in operating leases | |||||
Beginning balance | 72 | 66 | 71 | 64 | |
Charge-offs | (51) | (51) | (149) | (155) | |
Recoveries | 26 | 25 | 78 | 73 | |
Other | (1) | 0 | (1) | 1 | |
Ending balance | 77 | 69 | 77 | 69 | |
Analysis of ending balance of allowance for credit losses, net investment in operating leases | |||||
Collective impairment allowance | 77 | 69 | 77 | 69 | |
Specific impairment allowance | 0 | 0 | 0 | 0 | |
Ending balance | 77 | 69 | 77 | 69 | |
Analysis of ending balance of net investment in operating leases | |||||
Collectively evaluated for impairment | 27,647 | 27,000 | 27,647 | 27,000 | |
Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Net investment in operating leases before allowance for credit losses | 27,647 | 27,000 | 27,647 | 27,000 | 26,732 |
Total allowance | |||||
Beginning balance | 659 | 588 | 668 | 548 | |
Charge-offs | (222) | (183) | (577) | (524) | |
Recoveries | 70 | 65 | 210 | 186 | |
Provision for credit losses | 156 | 169 | 367 | 420 | |
Other | 0 | 5 | (5) | 14 | |
Ending balance | 663 | 644 | 663 | 644 | |
Analysis of Ending Balance of Finance Receivables and Net Investment in Operating Leases [Abstract] | |||||
Collective impairment allowance | 629 | 623 | 629 | 623 | |
Specific impairment allowance | 34 | 21 | 34 | 21 | |
Ending balance | 663 | 644 | 663 | 644 | |
Ending balance, net of allowance for credit losses | 116,044 | 110,597 | 116,044 | 110,597 | 116,003 |
Ending balance, net investment in operating leases | 27,570 | 26,931 | 27,570 | 26,931 | 26,661 |
Net Investment in Operating Leases [Member] | |||||
Allowance for credit losses, finance receivables | |||||
Provision for credit losses | 31 | 29 | 78 | 86 | |
Consumer Segment [Member] | |||||
Allowance for credit losses, finance receivables | |||||
Beginning balance | 573 | 507 | 582 | 469 | |
Charge-offs | (128) | (132) | (382) | (366) | |
Recoveries | 40 | 36 | 126 | 105 | |
Provision for credit losses | 73 | 146 | 237 | 341 | |
Other | 1 | 5 | (4) | 13 | |
Ending balance | 559 | 562 | 559 | 562 | |
Analysis of ending balance of allowance for credit losses, finance receivables | |||||
Collective impairment allowance | 538 | 541 | 538 | 541 | |
Specific impairment allowance | 21 | 21 | 21 | 21 | |
Ending balance | 559 | 562 | 559 | 562 | |
Analysis of ending balance of finance receivables | |||||
Collectively evaluated for impairment | 76,448 | 72,069 | 76,448 | 72,069 | |
Specifically evaluated for impairment | 379 | 387 | 379 | 387 | |
Financing Receivables | 76,827 | 72,456 | 76,827 | 72,456 | 75,187 |
Analysis of Ending Balance of Finance Receivables and Net Investment in Operating Leases [Abstract] | |||||
Ending balance, net of allowance for credit losses | 76,268 | 71,894 | 76,268 | 71,894 | |
Non-Consumer Segment [Member] | |||||
Allowance for credit losses, finance receivables | |||||
Beginning balance | 14 | 15 | 15 | 15 | |
Charge-offs | (43) | 0 | (46) | (3) | |
Recoveries | 4 | 4 | 6 | 8 | |
Provision for credit losses | 52 | (6) | 52 | (7) | |
Other | 0 | 0 | 0 | 0 | |
Ending balance | 27 | 13 | 27 | 13 | |
Analysis of ending balance of allowance for credit losses, finance receivables | |||||
Collective impairment allowance | 14 | 13 | 14 | 13 | |
Specific impairment allowance | 13 | 0 | 13 | 0 | |
Ending balance | 27 | 13 | 27 | 13 | |
Analysis of ending balance of finance receivables | |||||
Collectively evaluated for impairment | 39,638 | 38,564 | 39,638 | 38,564 | |
Specifically evaluated for impairment | 165 | 152 | 165 | 152 | |
Financing Receivables | 39,803 | 38,716 | 39,803 | 38,716 | $ 41,413 |
Analysis of Ending Balance of Finance Receivables and Net Investment in Operating Leases [Abstract] | |||||
Ending balance, net of allowance for credit losses | $ 39,776 | $ 38,703 | $ 39,776 | $ 38,703 |
Transfers of Receivables - Asse
Transfers of Receivables - Assets and Liabilities of Securitizations (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | $ 10,997 | $ 10,997 | $ 9,558 | |||
Allowance for Credit Losses | 663 | $ 659 | 668 | $ 644 | $ 588 | $ 548 |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 143,614 | $ 137,528 | ||||
Related Debt | 138,230 | 137,828 | ||||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 2,746 | 3,479 | ||||
Related Debt | 50,564 | 46,437 | ||||
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 2,700 | 3,500 | ||||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 69,000 | 68,000 | ||||
Allowance for Credit Losses | 200 | 200 | ||||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 68,800 | 67,800 | ||||
Related Debt | 50,600 | 46,400 | ||||
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 2,200 | 3,000 | ||||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 56,600 | 56,500 | ||||
Allowance for Credit Losses | 200 | 200 | ||||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 56,400 | 56,300 | ||||
Related Debt | 42,900 | 39,200 | ||||
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Retail [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 1,900 | 1,800 | ||||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 33,900 | 32,600 | ||||
Allowance for Credit Losses | 200 | 200 | ||||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 33,700 | 32,400 | ||||
Related Debt | 29,400 | 27,700 | ||||
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Wholesale [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 300 | 1,200 | ||||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 22,700 | 23,900 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 22,700 | 23,900 | ||||
Related Debt | 13,500 | 11,500 | ||||
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 500 | 500 | ||||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 12,400 | 11,500 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 12,400 | 11,500 | ||||
Related Debt | 7,700 | 7,200 | ||||
Consolidated Entities [Member] | Securitization Transactions [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 3,000 | 3,800 | ||||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 74,500 | 74,900 | ||||
Allowance for Credit Losses | 200 | 200 | ||||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 74,300 | 74,700 | ||||
Related Debt | 55,400 | 52,600 | ||||
Consolidated Entities [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 2,500 | 3,300 | ||||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 62,100 | 63,400 | ||||
Allowance for Credit Losses | 200 | 200 | ||||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 61,900 | 63,200 | ||||
Related Debt | 47,700 | 45,400 | ||||
Consolidated Entities [Member] | Securitization Transactions [Member] | Retail [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 2,200 | 2,100 | ||||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 38,800 | 38,900 | ||||
Allowance for Credit Losses | 200 | 200 | ||||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 38,600 | 38,700 | ||||
Related Debt | 33,700 | 33,400 | ||||
Consolidated Entities [Member] | Securitization Transactions [Member] | Wholesale [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 300 | 1,200 | ||||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 23,300 | 24,500 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 23,300 | 24,500 | ||||
Related Debt | 14,000 | 12,000 | ||||
Consolidated Entities [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 500 | 500 | ||||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 12,400 | 11,500 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 12,400 | 11,500 | ||||
Related Debt | 7,700 | 7,200 | ||||
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 300 | 300 | ||||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 5,500 | 6,900 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 5,500 | 6,900 | ||||
Related Debt | 4,800 | 6,200 | ||||
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 300 | 300 | ||||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 5,500 | 6,900 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 5,500 | 6,900 | ||||
Related Debt | 4,800 | 6,200 | ||||
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Retail [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 300 | 300 | ||||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 4,900 | 6,300 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 4,900 | 6,300 | ||||
Related Debt | 4,300 | 5,700 | ||||
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Wholesale [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 600 | 600 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 600 | 600 | ||||
Related Debt | 500 | 500 | ||||
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member] | ||||||
Securitization Transactions [Line Items] | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 0 | 0 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 0 | 0 | ||||
Related Debt | $ 0 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Derivative [Line Items] | |||||
Debt Carrying Value Fair Value | $ 39,100 | $ 39,100 | $ 39,000 | ||
Income Effect of Derivative Financial Instruments [Abstract] | |||||
Derivative, Gain (Loss) on Derivative, Net | (57) | $ 14 | (173) | $ 167 | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Notional | 105,154 | 105,154 | 94,924 | ||
Fair Value of Derivative Assets | 607 | 607 | 935 | ||
Fair Value of Derivative Liabilities | 1,102 | 1,102 | 310 | ||
Derivative, Collateral, Obligation to Return Cash | 16 | 16 | 15 | ||
Derivative, Collateral, Right to Reclaim Cash | 59 | 59 | 38 | ||
Derivative Asset, Not Offset, Policy Election Deduction | 146 | 146 | 162 | ||
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Income Effect of Derivative Financial Instruments [Abstract] | |||||
Derivative, Gain (Loss) on Derivative, Net | 9 | 20 | (28) | 57 | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Notional | 68,226 | 68,226 | 60,504 | ||
Interest Rate Contract [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | |||||
Income Effect of Derivative Financial Instruments [Abstract] | |||||
Net interest settlements and accruals excluded from the assessment of hedge effectiveness | (5) | 50 | 19 | 182 | |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (102) | (40) | (531) | (95) | |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 110 | 40 | 521 | 95 | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Notional | 27,769 | 27,769 | 28,008 | ||
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Income Effect of Derivative Financial Instruments [Abstract] | |||||
Derivative, Gain (Loss) on Derivative, Net | 6 | (61) | 104 | (151) | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Notional | 3,510 | 3,510 | 2,406 | ||
Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Income Effect of Derivative Financial Instruments [Abstract] | |||||
Derivative, Gain (Loss) on Derivative, Net | (75) | $ 5 | (258) | $ 79 | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Notional | 5,649 | 5,649 | 4,006 | ||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Fair Value of Derivative Assets | 250 | 250 | 276 | ||
Fair Value of Derivative Liabilities | 298 | 298 | 137 | ||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | |||||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Fair Value of Derivative Assets | 112 | 112 | 248 | ||
Fair Value of Derivative Liabilities | 632 | 632 | 135 | ||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Fair Value of Derivative Assets | 39 | 39 | 3 | ||
Fair Value of Derivative Liabilities | 6 | 6 | 10 | ||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Fair Value of Derivative Assets | 206 | 206 | 408 | ||
Fair Value of Derivative Liabilities | $ 166 | $ 166 | $ 28 |
Other Assets and Other Liabil_3
Other Assets and Other Liabilities and Deferred Income (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Other Assets and Liabilities [Line Items] | ||
Related Party Transactions Income Taxes and Related Interest Payable | $ 94 | $ 99 |
Other Assets [Abstract] | ||
Accrued interest and other non-finance receivables | 1,075 | 1,117 |
Collateral held for resale, at net realizable value, and other inventory | 740 | 780 |
Prepaid reinsurance premiums and other reinsurance recoverables | 651 | 611 |
Deferred charges - income taxes | 225 | 247 |
Property and equipment, net of accumulated depreciation | 187 | 177 |
Deferred charges | 95 | 127 |
Restricted cash | 147 | 124 |
Investment in non-consolidated affiliates | 117 | 107 |
Other | 80 | 39 |
Total other assets | 3,317 | 3,329 |
Accumulated depreciation | 361 | 354 |
Other Liabilities and Deferred Income [Abstract] | ||
Unearned insurance premiums and fees | 769 | 723 |
Interest payable | 572 | 722 |
Taxes Payable | 290 | 301 |
Deferred revenue | 103 | 148 |
Payroll and employee benefits | 70 | 68 |
Other | 235 | 310 |
Total other liabilities and deferred income | 2,039 | 2,272 |
Deferred Revenue, Admission Fees | 76 | 124 |
Cost Method Investments | $ 9 | $ 7 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total short-term debt | $ 15,376 | $ 17,225 |
Unamortized discount | 0 | (1) |
Unamortized debt issuance costs | (224) | (228) |
Fair value adjustments | (559) | (21) |
Total long-term debt | 122,854 | 120,603 |
Total debt | $ 138,230 | $ 137,828 |
Average Contractual (interest rate) | 2.80% | 2.60% |
Average Effective (interest rate) | 2.80% | 2.60% |
Debt Carrying Value Fair Value | $ 39,100 | $ 39,000 |
Fair value of short-term debt | 13,800 | 16,400 |
Floating Rate Demand Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 5,939 | 5,660 |
Unsecured commercial paper [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 4,175 | 4,889 |
Other short-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 3,698 | 5,890 |
Asset-backed Securities [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 1,564 | 786 |
Notes payable within one year | 19,139 | 17,817 |
Notes payable after one year | $ 34,784 | $ 34,051 |
Total short-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Average Contractual (interest rate) | 3.10% | 3.00% |
Average Effective (interest rate) | 3.10% | 3.00% |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable within one year | $ 13,123 | $ 13,298 |
Notes payable after one year | $ 56,591 | $ 55,687 |
Total long-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Average Contractual (interest rate) | 2.70% | 2.50% |
Average Effective (interest rate) | 2.80% | 2.60% |
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 138,374 | $ 139,677 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2014 | Sep. 30, 2012 | Sep. 30, 2018 | Sep. 30, 2017 | |
Cumulative Translation Adjustment Summary [Roll Forward] | ||||||
Beginning balance | $ (670,000,000) | $ (609,000,000) | $ (419,000,000) | $ (890,000,000) | ||
Net gain/(loss) on Foreign Currency Transaction | (49,000,000) | 204,000,000 | (300,000,000) | 485,000,000 | ||
Ending balance | $ (719,000,000) | $ (405,000,000) | (719,000,000) | (405,000,000) | ||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax [Abstract] | ||||||
Net gain/(loss) on foreign currency translation, tax adjustment | $ 0 | $ 0 | $ 0 | $ 0 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | ||||
Gains/(Losses) on derivatives | $ (60) | $ (36) | $ (182) | $ (15) |
Currency revaluation gains/(losses) | 36 | 51 | 80 | 73 |
Interest and investment income | 49 | 33 | 140 | 80 |
Other | 11 | 9 | 36 | 35 |
Total other income, net | $ 36 | $ 57 | $ 74 | $ 173 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Total revenue | $ 3,081 | $ 2,863 | $ 9,200 | $ 8,396 | |
Income before income taxes | 678 | 600 | 1,964 | 1,700 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | 907 | 989 | 2,898 | 3,090 | |
Interest expense | 989 | 810 | 2,898 | 2,308 | |
Provision for credit losses | 156 | 169 | 367 | 420 | |
Net finance receivables and net investment in operating leases | 143,614 | 137,528 | 143,614 | 137,528 | |
Total assets | 161,246 | 154,478 | 161,246 | 154,478 | $ 160,443 |
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 3,081 | 2,863 | 9,200 | 8,396 | |
Income before income taxes | 658 | 580 | 2,008 | 1,600 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | 907 | 989 | 2,898 | 3,090 | |
Interest expense | 991 | 810 | 2,902 | 2,308 | |
Provision for credit losses | 156 | 169 | 367 | 420 | |
Net finance receivables and net investment in operating leases | 152,140 | 145,107 | 152,140 | 145,107 | |
Total assets | 161,246 | 154,478 | 161,246 | 154,478 | |
Operating Segments [Member] | Americas [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 2,677 | 2,493 | 7,918 | 7,359 | |
Income before income taxes | 556 | 485 | 1,619 | 1,308 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | 895 | 975 | 2,878 | 3,055 | |
Interest expense | 848 | 669 | 2,430 | 1,930 | |
Provision for credit losses | 145 | 159 | 340 | 389 | |
Net finance receivables and net investment in operating leases | 120,425 | 115,331 | 120,425 | 115,331 | |
Total assets | 128,103 | 120,398 | 128,103 | 120,398 | |
Operating Segments [Member] | Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 284 | 247 | 878 | 709 | |
Income before income taxes | 89 | 72 | 303 | 223 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | 12 | 14 | 20 | 35 | |
Interest expense | 68 | 65 | 216 | 187 | |
Provision for credit losses | 1 | 7 | 14 | 21 | |
Net finance receivables and net investment in operating leases | 25,995 | 23,855 | 25,995 | 23,855 | |
Total assets | 27,120 | 27,323 | 27,120 | 27,323 | |
Operating Segments [Member] | Asia Pacific [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 120 | 123 | 404 | 328 | |
Income before income taxes | 13 | 23 | 86 | 69 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | 0 | 0 | 0 | 0 | |
Interest expense | 75 | 76 | 256 | 191 | |
Provision for credit losses | 10 | 3 | 13 | 10 | |
Net finance receivables and net investment in operating leases | 5,720 | 5,921 | 5,720 | 5,921 | |
Total assets | 6,023 | 6,757 | 6,023 | 6,757 | |
Corporate, Non-Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 0 | 0 | 0 | 0 | |
Income before income taxes | 20 | 20 | (44) | 100 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | 0 | 0 | 0 | 0 | |
Interest expense | (2) | 0 | (4) | 0 | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Net finance receivables and net investment in operating leases | (8,526) | (7,579) | (8,526) | (7,579) | |
Total assets | $ 0 | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Guarantor Obligations [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 300 | |
Guarantor Obligations, Current Carrying Value | 0 | $ 0 |
Financial Guarantee [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum potential payments | 55 | 52 |
Counter Guarantee [Member] | Ford Motor Company [Member] | ||
Guarantor Obligations [Line Items] | ||
Counter guarantee | $ 44 | $ 44 |