Document and Entity Information
Document and Entity Information Document | 3 Months Ended |
Mar. 31, 2019USD ($)shares | |
Entity Registrant Name | FORD MOTOR CREDIT CO LLC |
Entity Central Index Key | 0000038009 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | shares | 0 |
Entity Small Business | false |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Financing revenue | ||
Operating leases | $ 1,477 | $ 1,415 |
Retail financing | 984 | 948 |
Dealer financing | 608 | 536 |
Other | 24 | 22 |
Revenue from Contract with Customer, Excluding Assessed Tax | 3,093 | 2,921 |
Depreciation on vehicles subject to operating leases | (924) | (1,053) |
Interest expense | (1,121) | (912) |
Net financing margin | 1,048 | 956 |
Other revenue | ||
Insurance premiums earned | 47 | 41 |
Fee based revenue and other | 54 | 58 |
Total financing margin and other revenue | 1,149 | 1,055 |
Operating expenses | 364 | 345 |
Provision for credit losses | 33 | 94 |
Insurance expenses | 10 | 12 |
Total expenses | 407 | 451 |
Other income, net | 59 | 37 |
Income before income taxes | 801 | 641 |
Provision for income taxes | 198 | (60) |
Net income | $ 603 | $ 701 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income | $ 603 | $ 701 |
Other comprehensive income/(loss), net of tax | ||
Foreign currency translation | 20 | 113 |
Comprehensive income / (loss) | $ 623 | $ 814 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 11,733 | $ 9,607 |
Marketable securities | 1,846 | 1,308 |
Finance receivables, net | 119,250 | 118,814 |
Net investment in operating leases | 27,606 | 27,449 |
Notes and accounts receivable from affiliated companies | 907 | 905 |
Derivative financial instruments | 631 | 670 |
Other assets | 3,442 | 3,456 |
Total assets | 165,415 | 162,209 |
Liabilities | ||
Customer deposits, dealer reserves, and other | 1,126 | 1,097 |
Affiliated companies | 872 | 426 |
Total accounts payable | 1,998 | 1,523 |
Debt | 142,950 | 140,146 |
Deferred income taxes | 2,642 | 2,595 |
Derivative financial instruments | 684 | 663 |
Other liabilities and deferred income | 2,218 | 2,307 |
Total liabilities | 150,492 | 147,234 |
Shareholder's interest | ||
Shareholder's interest | 5,227 | 5,227 |
Accumulated other comprehensive income | (809) | (829) |
Retained earnings | 10,505 | 10,577 |
Total shareholder’s interest | 14,923 | 14,975 |
Total liabilities and shareholder's interest | 165,415 | 162,209 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
ASSETS | ||
Cash and cash equivalents | 2,990 | 2,728 |
Finance receivables, net | 60,745 | 58,662 |
Net investment in operating leases | 16,013 | 16,332 |
Derivative financial instruments | 14 | 27 |
Liabilities | ||
Debt | 52,248 | 53,269 |
Derivative financial instruments | 45 | 24 |
Retail Installment loans, dealer financing, and other financing [Domain] [Member] | ||
ASSETS | ||
Finance receivables, net | 110,595 | 110,388 |
Loans and Finance Receivables [Member] | ||
ASSETS | ||
Finance receivables, net | $ 8,655 | $ 8,426 |
Consolidated Statement of Share
Consolidated Statement of Shareholder's Interest - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Shareholder's Interest [Roll Forward] | ||
Balance at beginning of period | $ 14,975 | $ 15,884 |
Net income | 603 | 701 |
Other Comprehensive Income (Loss), Net of Tax | 20 | 113 |
Distributions declared | (675) | (1,013) |
Balance at end of period | 14,923 | 15,685 |
Shareholder's Interest [Member] | ||
Shareholder's Interest [Roll Forward] | ||
Balance at beginning of period | 5,227 | 5,227 |
Net income | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 |
Distributions declared | 0 | 0 |
Balance at end of period | 5,227 | 5,227 |
Accumulated Other Comprehensive Income/(Loss) (Note11) [Member] | ||
Shareholder's Interest [Roll Forward] | ||
Balance at beginning of period | (829) | (419) |
Net income | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 20 | 113 |
Distributions declared | 0 | 0 |
Balance at end of period | (809) | (306) |
Retained Earnings [Member] | ||
Shareholder's Interest [Roll Forward] | ||
Balance at beginning of period | 10,577 | 11,076 |
Net income | 603 | 701 |
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 |
Distributions declared | (675) | (1,013) |
Balance at end of period | $ 10,505 | $ 10,764 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net Cash Provided by (Used in) Operating Activities | $ 1,692 | $ 2,009 |
Cash flows from investing activities | ||
Purchases of finance receivables | (8,542) | (11,085) |
Principal collections of finance receivables | 10,432 | 10,814 |
Purchases of operating lease vehicles | (3,184) | (3,592) |
Proceeds From Liquidations of Operating Lease Vehicles | 2,306 | 2,481 |
Net change in wholesale receivables and other | (1,844) | (3,668) |
Purchases of marketable securities | (803) | (2,287) |
Proceeds from sales and maturities of marketable securities | 274 | 1,422 |
Settlements of derivatives | 12 | 100 |
All other investing activities | (14) | 143 |
Net Cash Provided by (Used in) Investing Activities | (1,363) | (5,672) |
Cash flows from financing activities | ||
Proceeds from issuances of long-term debt | 15,411 | 16,779 |
Principal payments on long-term debt | (12,683) | (12,156) |
Change in short-term debt, net | (276) | (793) |
Cash distributions to parent | (675) | (1,013) |
All other financing activities | (37) | (28) |
Net Cash Provided by (Used in) Financing Activities | 1,740 | 2,789 |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 38 | 106 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at January 1 | 9,747 | 9,682 |
Net increase/(decrease) in cash, cash equivalents, and restricted cash | 2,107 | (768) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at March 31 | $ 11,854 | $ 8,914 |
Presentation
Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Presentation | PRESENTATION Principles of Consolidation 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, 2018 (“2018 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. Restructuring and Other Actions In the first three months of 2019, we executed separation and restructuring actions associated with our plans to transform the operational fitness of our business. |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES Provision for Income Taxes For interim tax reporting we estimate one single effective tax rate, which is applied to the year-to-date ordinary income / (loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. Adoption of New Accounting Standards Accounting Standards Update (“ASU”) 2016-02, Leases . On January 1, 2019, we adopted the Accounting Standards Codification 842, Leases, and all the related amendments (“new lease standard”) to contracts using the modified retrospective method. The comparative information has not been restated and continues to be reported under the lease accounting standard in effect for those periods. Adoption of the standard as a lessor did not significantly impact our financial statements. As a lessee, it added about $100 million of right-of-use assets and lease obligations to our consolidated balance sheet and did not significantly impact our income statement. We do not expect the adoption of the new lease standard to have a significant impact to our net income on an ongoing basis. We elected the practical expedients permitted under the transition guidance of the new standard that retained the lease classification and initial direct costs for any leases that existed prior to adoption of the standard. We did not reassess whether any contracts entered into prior to adoption are leases or contain leases. We also adopted the following ASUs during 2019 , none of which had a material impact to our financial statements or financial statement disclosures: ASU Effective Date 2018-16 Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes January 1, 2019 2018-08 Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made January 1, 2019 NOTE 2. ACCOUNTING POLICIES (Continued) Accounting Standards Issued But Not Yet Adopted The following standard is expected to result in a significant change in practice 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 and the related amendment on the 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 . Change in Accounting Method As of January 1, 2019, we changed our accounting method for reporting early termination losses related to customer defaults on operating leases. See Note 5 for additional information. |
Cash, Cash Equivalents, and Mar
Cash, Cash Equivalents, and Marketable Securities | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 March 31, 2019 Cash and cash equivalents U.S. government 1 $ 139 $ 1,112 U.S. government and agencies 2 25 599 Non-U.S. government and agencies 2 114 394 Corporate debt 2 884 639 Total marketable securities classified as cash equivalents 1,162 2,744 Cash, time deposits and money market funds 8,445 8,989 Total cash and cash equivalents $ 9,607 $ 11,733 Marketable Securities U.S. government 1 $ 289 $ 241 U.S. government and agencies 2 65 40 Non-U.S. government and agencies 2 610 803 Corporate debt 2 198 556 Other marketable securities 2 146 206 Total marketable securities $ 1,308 $ 1,846 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, 2018 March 31, 2019 Cash and cash equivalents $ 9,607 $ 11,733 Restricted cash included in other assets (a) 140 121 Total cash, cash equivalents, and restricted cash $ 9,747 $ 11,854 __________ (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 | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 March 31, 2019 Consumer Retail installment contracts, gross $ 70,999 $ 69,380 Finance leases, gross 8,748 9,012 Retail financing, gross 79,747 78,392 Unearned interest supplements from Ford and affiliated companies (3,508 ) (3,478 ) Consumer finance receivables 76,239 74,914 Non-Consumer Dealer financing 40,996 42,804 Other financing 2,168 2,045 Non-Consumer finance receivables 43,164 44,849 Total recorded investment $ 119,403 $ 119,763 Recorded investment in finance receivables $ 119,403 $ 119,763 Allowance for credit losses (589 ) (513 ) Finance receivables, net $ 118,814 $ 119,250 Net finance receivables subject to fair value (a) $ 110,388 $ 110,595 Fair value (b) 109,794 110,296 __________ (a) Net finance receivables subject to fair value exclude finance leases. Previously, certain consumer financing products in Europe were classified as retail installment contracts. We now classify these products as finance leases. Comparative information has been revised to reflect this change. (b) The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy. At December 31, 2018 and March 31, 2019 , accrued uncollected interest was $264 million and $275 million , respectively, which we report in Other assets on our balance sheet. Included in recorded investment in finance receivables at December 31, 2018 and March 31, 2019 , were consumer receivables of $40.7 billion and $43.2 billion , respectively, and non-consumer receivables of $25.7 billion and $ 26.3 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). Finance Leases Our finance leases are comprised of sales-type and direct financing leases. We offer finance leases to individuals, leasing companies, government entities, daily rental companies, and fleet customers. These financings include primarily lease plans for terms of 24 to 60 months. In limited cases, a customer may extend the lease term. Early terminations of leases may also occur at the customer’s request subject to our approval. We offer financing products in which the customer may be required to pay any shortfall, or may receive as payment any excess amount between the fair market value and the contractual vehicle value at the end of the term, which are classified as finance leases. In some markets, we finance a vehicle with a series of monthly payments followed by a single balloon payment or the option for the customer to return the vehicle to Ford Credit; these arrangements containing a purchase option are classified as finance leases. NOTE 4. FINANCE RECEIVABLES (Continued) The amounts contractually due on our finance lease receivables were as follows (in millions): March 31, Within one year $ 2,065 After one year and within two years 1,955 After two years and within three years 1,646 After three years and within four years 691 After four years and within five years 124 After five years 2 Total future cash payments 6,483 Less: Present value discount (315 ) Finance lease receivables $ 6,168 The reconciliation from our finance lease receivables to our finance leases, gross and our finance leases, net is as follows (in millions): March 31, Finance lease receivables $ 6,168 Unguaranteed residual assets 2,713 Initial direct costs 131 Finance leases, gross 9,012 Unearned interest supplements from Ford and affiliated companies (340 ) Allowance for credit losses (17 ) Finance leases, net $ 8,655 Financing revenue from finance leases was $ 95 million and $ 92 million for the periods ended March 31, 2018 and March 31, 2019 , respectively, and is included in Retail financing on the income statement. Revenue is recognized using the interest method and includes the accretion of certain direct origination costs that are deferred and interest supplements received from Ford and affiliated companies. 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 $20 million at December 31, 2018 . At March 31, 2019, there were no balances greater than 90 days past due for which we are still accruing interest. The aging analysis of finance receivables balances was as follows (in millions): December 31, 2018 March 31, Consumer 31-60 days past due $ 859 $ 563 61-90 days past due 123 82 91-120 days past due 39 34 Greater than 120 days past due 39 40 Total past due 1,060 719 Current 75,179 74,195 Consumer finance receivables 76,239 74,914 Non-Consumer Total past due 76 81 Current 43,088 44,768 Non-Consumer finance receivables 43,164 44,849 Total recorded investment $ 119,403 $ 119,763 Credit Quality Consumer Portfolio. Credit quality ratings for consumer receivables are based on our aging analysis. Consumer receivables credit quality ratings are as follows: • Pass – current to 60 days past due; • Special Mention – 61 to 120 days past due and in intensified collection status; and • Substandard – greater than 120 days past due and for which the uncollectible portion of the receivables has already been charged off, as measured using the fair value of collateral less costs to sell. 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. The credit quality analysis of our dealer financing receivables was as follows (in millions): December 31, 2018 March 31, Dealer financing Group I $ 33,656 $ 35,403 Group II 5,635 5,744 Group III 1,576 1,533 Group IV 129 124 Total recorded investment $ 40,996 $ 42,804 NOTE 4. FINANCE RECEIVABLES (Continued) 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, 2018 and March 31, 2019 was $370 million and $359 million , or 0.5% and 0.5% of consumer receivables, respectively. The recorded investment of non-consumer receivables that were impaired at December 31, 2018 and March 31, 2019 was $129 million and $124 million , or 0.3% and 0.3% 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 | 3 Months Ended |
Mar. 31, 2019 | |
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 individuals, daily rental companies, and fleet customers with terms of 60 months or less . Payment extensions may be requested by the customer and are generally limited to a maximum of six months over the term of the lease. Term extensions may also be requested by the customer. Term and payment extensions in total generally do not exceed twelve months. A lease can be terminated at any time by satisfying the obligations under the lease agreement. Early termination programs may be occasionally offered to eligible lessees. At the end of the lease, the customer returns the vehicle to the dealer or may have the option to buy the leased vehicle. In the case of a contract default and repossession, the customer typically remains liable for any deficiency between net auction proceeds and the defaulted contract obligations, including any repossession-related expenses. Accumulated depreciation reduces the value of the vehicles from their initial acquisition value to their expected residual value at the end of the lease. At the time of purchase, we establish the expected residual value for the vehicle based on recent auction values, return volumes for our leased vehicles, industry-wide used vehicle prices, marketing incentive plans, and vehicle quality data. We monitor residual values each month and review the accuracy of our accumulated depreciation on a quarterly basis. Change in Accounting Method . As of January 1, 2019, we changed our accounting method for reporting early termination losses related to customer defaults on operating leases. Prior to the first quarter of 2019, we presented the early termination loss reserve on operating leases due to customer default events as part of the allowance for credit losses which reduces Net investment in operating leases on the balance sheet. On the income statement, the incurred losses were included in Provision for credit losses . We now consider the effects of operating lease early terminations when determining depreciation estimates, which are included as part of accumulated depreciation within Net investment in operating leases on the balance sheet, and Depreciation on vehicles subject to operating leases on the income statement. In conjunction with the January 1, 2019 adoption of ASU 2016-02, Leases (described in Note 2), we reviewed our leasing-related accounting policies and updated our depreciation policy for operating leases so that the useful life of the vehicles incorporates our historical experience on early terminations due to customer defaults. We believe this change in accounting method is preferable as the characterization of these changes are better reflected as depreciation. At December 31, 2018, this reclassification increased accumulated depreciation and decreased allowance for credit losses by $ 78 million , respectively, and had no impact on Net Investment in operating leases . On the income statement, this reclassification increased Depreciation on vehicles subject to operating leases and decreased Provision for credit losses by $ 25 million , respectively, for the first quarter of 2018. These changes had no impact on Income before income taxes, Net investment in operating leases, Retained earnings, or to the Net cash provided by / (used in) operating activities . We have reclassified prior period amounts to reflect the above changes. Net investment in operating leases were as follows (in millions): December 31, March 31, Vehicles, at cost (a) $ 33,593 $ 33,585 Accumulated depreciation (6,144 ) (5,979 ) Net investment in operating leases $ 27,449 27,606 __________ (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. We recognize these upfront collections from Ford and other vehicle acquisition costs as part of Net investment in operating leases , which are amortized to Depreciation on vehicles subject to operating leases over the term of the lease contract. NOTE 5. NET INVESTMENT IN OPERATING LEASES (Continued) At December 31, 2018 and March 31, 2019 , net investment in operating leases includes $16.3 billion and $16.0 billion, respectively, 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). The amounts contractually due for minimum rentals on operating leases at December 31, 2018 were as follows (in millions): 2019 2020 2021 2022 2023 Total Minimum rentals on operating leases $ 4,708 $ 2,929 $ 1,083 $ 83 $ 6 $ 8,809 The amounts contractually due on our operating leases at March 31, 2019 were as follows (in millions): Within 1 year After 1 year and within 2 years After 2 years and within 3 years After 3 years and within 4 years After 4 years and within 5 years Total Operating lease payments $ 4,719 $ 2,924 $ 1,040 $ 80 $ 5 $ 8,768 Our operating leases are generally pre-payable without penalty and may cause actual amounts to differ from amounts contractually due. |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2019 | |
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 for the periods ended March 31 was as follows (in millions): First Quarter 2018 Consumer Non-Consumer Total Allowance Allowance for credit losses Beginning balance $ 582 $ 15 $ 597 Charge-offs (131 ) (2 ) (133 ) Recoveries 39 1 40 Provision for credit losses 92 2 94 Other 2 — 2 Ending balance $ 584 $ 16 $ 600 Analysis of ending balance of allowance for credit losses Collective impairment allowance $ 563 $ 15 $ 578 Specific impairment allowance 21 1 22 Ending balance 584 16 600 Analysis of ending balance of finance receivables Collectively evaluated for impairment 75,989 45,059 121,048 Specifically evaluated for impairment 380 108 488 Recorded investment 76,369 45,167 121,536 Ending balance, net of allowance for credit losses $ 75,785 $ 45,151 $ 120,936 First Quarter 2019 Consumer Non-Consumer Total Allowance Allowance for credit losses Beginning balance $ 566 $ 23 $ 589 Charge-offs (137 ) (17 ) (154 ) Recoveries 43 2 45 Provision for credit losses 24 9 33 Other — — — Ending balance $ 496 $ 17 $ 513 Analysis of ending balance of allowance for credit losses Collective impairment allowance $ 477 $ 16 $ 493 Specific impairment allowance 19 1 20 Ending balance 496 17 513 Analysis of ending balance of finance receivables Collectively evaluated for impairment 74,555 44,725 119,280 Specifically evaluated for impairment 359 124 483 Recorded investment 74,914 44,849 119,763 Ending balance, net of allowance for credit losses $ 74,418 $ 44,832 $ 119,250 |
Transfers of Receivables
Transfers of Receivables | 3 Months Ended |
Mar. 31, 2019 | |
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 primarily in the United States, Canada, the United Kingdom, Germany 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, 2018 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 $ 1.9 $ 34.0 $ 0.2 $ 33.8 $ 29.2 Wholesale financing 0.3 24.9 — 24.9 13.9 Finance receivables 2.2 58.9 0.2 58.7 43.1 Net investment in operating leases 0.5 16.3 — 16.3 10.2 Total VIE $ 2.7 $ 75.2 $ 0.2 $ 75.0 $ 53.3 Non-VIE Retail financing $ 0.3 $ 6.7 $ — $ 6.7 $ 5.9 Wholesale financing — 0.8 — 0.8 0.6 Finance receivables 0.3 7.5 — 7.5 6.5 Net investment in operating leases — — — — — Total Non-VIE $ 0.3 $ 7.5 $ — $ 7.5 $ 6.5 Total securitization transactions Retail financing $ 2.2 $ 40.7 $ 0.2 $ 40.5 $ 35.1 Wholesale financing 0.3 25.7 — 25.7 14.5 Finance receivables 2.5 66.4 0.2 66.2 49.6 Net investment in operating leases 0.5 16.3 — 16.3 10.2 Total securitization transactions $ 3.0 $ 82.7 $ 0.2 $ 82.5 $ 59.8 __________ (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) March 31, 2019 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 $ 2.1 $ 35.4 $ 0.2 $ 35.2 $ 30.6 Wholesale financing 0.3 25.5 — 25.5 11.5 Finance receivables 2.4 60.9 0.2 60.7 42.1 Net investment in operating leases 0.6 16.0 — 16.0 10.1 Total VIE $ 3.0 $ 76.9 $ 0.2 $ 76.7 $ 52.2 Non-VIE Retail financing $ 0.3 $ 7.8 $ — $ 7.8 $ 6.9 Wholesale financing — 0.8 — 0.8 0.6 Finance receivables 0.3 8.6 — 8.6 7.5 Net investment in operating leases — — — — — Total Non-VIE $ 0.3 $ 8.6 $ — $ 8.6 $ 7.5 Total securitization transactions Retail financing $ 2.4 $ 43.2 $ 0.2 $ 43.0 $ 37.5 Wholesale financing 0.3 26.3 — 26.3 12.1 Finance receivables 2.7 69.5 0.2 69.3 49.6 Net investment in operating leases 0.6 16.0 — 16.0 10.1 Total securitization transactions $ 3.3 $ 85.5 $ 0.2 $ 85.3 $ 59.7 __________ (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 | 3 Months Ended |
Mar. 31, 2019 | |
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 | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES In the normal course of business, our operations are exposed to global market risks, including the effect of changes in interest rates and foreign currency exchange rates. To manage these risks, we enter into highly effective derivative contracts. We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting. Income Effect of Derivative Financial Instruments The gains / (losses), by hedge designation, reported in income for the periods ended March 31 were as follows (in millions): First Quarter 2018 2019 Fair value hedges Interest rate contracts Net interest settlements and accruals on hedging instruments $ 26 $ (20 ) Fair value changes on hedging instruments (339 ) 250 Fair value changes on hedged debt 329 (253 ) Derivatives not designated as hedging instruments Interest rate contracts (17 ) (27 ) Foreign currency exchange contracts (a) (12 ) (6 ) Cross-currency interest rate swap contracts (58 ) (145 ) Total $ (71 ) $ (201 ) __________ (a) 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 reported 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, 2018 March 31, 2019 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Fair value hedges Interest rate contracts $ 22,989 $ 158 $ 208 $ 23,894 $ 217 $ 143 Derivatives not designated as hedging instruments Interest rate contracts 76,904 235 274 67,726 216 295 Foreign currency exchange contracts 4,318 45 24 3,893 52 30 Cross-currency interest rate swap contracts 5,235 232 157 6,331 146 216 Total derivative financial instruments, gross (a) (b) $ 109,446 $ 670 $ 663 $ 101,844 $ 631 $ 684 __________ (a) At December 31, 2018 and March 31, 2019 , we held collateral of $19 million and $26 million , respectively, and we posted collateral of $59 million and $63 million , respectively. (b) At December 31, 2018 and March 31, 2019 , the fair value of assets and liabilities available for counterparty netting was $233 million and $219 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 | 3 Months Ended |
Mar. 31, 2019 | |
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, March 31, Accrued interest and other non-finance receivables $ 1,080 $ 1,116 Collateral held for resale, at net realizable value, and other inventory 877 737 Prepaid reinsurance premiums and other reinsurance recoverables 658 663 Deferred charges – income taxes 216 200 Property and equipment, net of accumulated depreciation (a) 192 200 Investment in non-consolidated affiliates 123 127 Restricted cash 140 121 Operating lease assets — 92 Deferred charges 96 89 Other 74 97 Total other assets $ 3,456 $ 3,442 __________ (a) Accumulated depreciation was $367 million and $375 million at December 31, 2018 and March 31, 2019 , respectively. Other liabilities and deferred revenue were as follows (in millions): December 31, March 31, Unearned insurance premiums and fees $ 775 $ 779 Interest payable 752 637 Income tax and related interest (a) 369 329 Deferred revenue 113 126 Operating lease liabilities — 94 Payroll and employee benefits 70 45 Other 228 208 Total other liabilities and deferred revenue $ 2,307 $ 2,218 __________ (a) Includes tax and interest payable to affiliated companies of $ 193 million and $ 182 million at December 31, 2018 and March 31, 2019 , 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 $ 9 million at both December 31, 2018 and March 31, 2019 . There were no material adjustments to the fair values of these investments during the period ending March 31, 2019 . 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 $87 million and $76 million at December 31, 2018 and March 31, 2019 , 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 | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | DEBT Debt outstanding and interest rates were as follows (in millions): Interest Rates Debt Average Contractual Average Effective December 31, March 31, 2018 2019 2018 2019 Short-term debt Unsecured debt Floating rate demand notes $ 5,880 $ 6,170 Commercial paper 3,749 3,713 Other short-term debt 4,213 3,760 Asset-backed debt 943 983 Total short-term debt 14,785 14,626 3.5 % 3.4 % 3.5 % 3.4 % Long-term debt Unsecured debt Notes payable within one year 14,373 13,814 Notes payable after one year 52,409 55,849 Asset-backed debt (a) Notes payable within one year 22,130 23,502 Notes payable after one year 36,844 35,306 Unamortized discount 2 1 Unamortized issuance costs (211 ) (221 ) Fair value adjustments (b) (186 ) 73 Total long-term debt 125,361 128,324 2.8 % 3.0 % 2.8 % 3.0 % Total debt $ 140,146 $ 142,950 2.8 % 3.0 % 2.9 % 3.1 % Fair value of debt (c) $ 138,888 $ 142,595 __________ (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 $38.0 billion and $38.1 billion at December 31, 2018 and March 31, 2019 , respectively. (c) The fair value of debt includes $13.8 billion and $13.6 billion of short-term debt at December 31, 2018 and March 31, 2019 , 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 | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31 were as follows (in millions): First Quarter 2018 2019 Beginning AOCI balance $ (419 ) $ (829 ) Net gain / (loss) on foreign currency translation 113 20 Ending AOCI balance $ (306 ) $ (809 ) |
Other Income, Net
Other Income, Net | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31 were as follows (in millions): First Quarter 2018 2019 Gains / (Losses) on derivatives $ (87 ) $ (178 ) Currency revaluation gains / (losses) 62 131 Interest and investment income 42 79 Other 20 27 Total other income, net $ 37 $ 59 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We conduct our financing operations directly and indirectly through our subsidiaries and affiliates. We offer substantially similar products and services throughout many different regions, subject to local legal restrictions and market conditions. 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 Key financial information for our business segments for the periods ended or at March 31 were as follows (in millions): Americas Europe Asia Pacific Total Segments Unallocated Other (a) Total First Quarter 2018 Total revenue $ 2,581 $ 295 $ 144 $ 3,020 $ — $ 3,020 Income before income taxes 515 111 46 672 (31 ) 641 Other disclosures: Depreciation on vehicles subject to operating leases 1,048 5 — 1,053 — 1,053 Interest expense 752 72 91 915 (3 ) 912 Provision for credit losses 86 5 3 94 — 94 Net finance receivables and net investment in operating leases 120,392 27,702 7,574 155,668 (8,017 ) 147,651 Total assets 127,013 30,109 7,961 165,083 — 165,083 First Quarter 2019 Total revenue $ 2,793 $ 303 $ 98 $ 3,194 $ — $ 3,194 Income before income taxes 644 116 34 794 7 801 Other disclosures: Depreciation on vehicles subject to operating leases 912 12 — 924 — 924 Interest expense 972 80 61 1,113 8 1,121 Provision for credit losses 38 5 (10 ) 33 — 33 Net finance receivables and net investment in operating leases 123,323 27,066 4,885 155,274 (8,418 ) 146,856 Total assets 130,603 29,459 5,353 165,415 — 165,415 __________ (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 | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments and contingencies primarily consist of lease commitments, guarantees and indemnifications, and litigation and claims. Lease Commitments We lease various land, buildings, and equipment under agreements that expire over various contractual periods ranging from less than one year to 11 years. Many of our leases contain one or more options to extend. We include options that we are reasonably certain to exercise in our evaluation of the lease term after considering all relevant economic and financial factors. The leased (“right-of-use”) assets in operating lease arrangements are presented in Other assets on our consolidated balance sheet. We do not separate the non-lease components (e.g., maintenance and operating services) from the lease components to which they relate. Instead, non-lease components are included in the measurement of the lease liabilities. We calculate the initial lease liability as the present value of fixed payments not yet paid using the discount rate implicit in the lease. If the discount rate is not readily determinable, we use our incremental borrowing rate. Operating lease liabilities are reported in Other liabilities and deferred revenue. Variable payments are included in the lease liability if they are based on a market rate or an index (e.g., CPI). Variable payments that do not meet this criterion are expensed as incurred. We have rental commitments for certain land, buildings, and equipment that expire over various contractual periods. Minimum non-cancelable operating lease commitments at December 31, 2018 were as follows (in millions): 2019 2020 2021 2022 2023 Thereafter Total Minimum rentals on operating leases $ 19 $ 14 $ 11 $ 10 $ 9 $ 34 $ 97 The amounts contractually due on our operating lease liabilities as of March 31, 2019 were as follows (in millions): Within 1 year After 1 year and within 2 years After 2 years and within 3 years After 3 years and within 4 years After 4 years and within 5 years After 5 years Total Operating lease $ 20 $ 16 $ 12 $ 12 $ 11 $ 35 $ 106 Less: Present value discount (12 ) Total operating lease liabilities $ 94 Our operating and variable lease expense for the period ending March 31 , 2019 was $ 6 million . The right-of-use assets obtained in exchange for operating lease liabilities for the same period was $ 11 million . As of March 31, 2019 , the weighted average remaining lease term for operating leases was 7 years and the weighted average remaining discount rate for operating leases was 3.3% . 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. The maximum potential payments under these guarantees and limited indemnities totaled $34 million and $38 million at December 31, 2018 and March 31, 2019 , respectively. Of these values, $ 29 million and $32 million at December 31, 2018 and March 31, 2019 , respectively, were counter-guaranteed by Ford to us. There were no recorded liabilities related to guarantees and limited indemnities at December 31, 2018 or March 31, 2019 . NOTE 15. COMMITMENTS AND CONTINGENCIES (Continued) 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. Litigation and Claims Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include but are not limited to matters arising out of governmental regulations; tax matters; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer and other contractual relationships; personal injury matters; investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages in very large amounts, sanctions, assessments, or other relief, which, if granted, would require very large expenditures. The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome. We accrue for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time. For nearly all 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 January 9, 2019, FCE Bank plc (“FCE”) received a decision from the Italian Competition Authority, which included an assessment of a fine against FCE in the amount of about $ 50 million . On March 8, 2019, FCE appealed the decision and the fine with the ultimate resolution of the matter potentially taking several years. While we have determined that an adverse outcome is not probable, the reasonably possible loss could be up to the fine amount. 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) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 (“2018 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. $ 78 million , respectively, and had no impact on Net Investment in operating leases . On the income statement, this reclassification increased Depreciation on vehicles subject to operating leases and decreased Provision for credit losses by $ 25 million , respectively, for the first quarter of 2018. These changes had no impact on Income before income taxes, Net investment in operating leases, Retained earnings, or to the Net cash provided by / (used in) operating activities . We have reclassified prior period amounts to reflect the above changes. |
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] | A restructuring of debt constitutes a TDR if we grant a concession to a debtor for economic or legal reasons related to the debtor’s financial difficulties that we otherwise would not consider. Consumer and non-consumer receivables that have a modified interest rate below market rate or that were modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code, except non-consumer receivables that are current with minimal risk of loss, are considered to be TDRs. We do not grant concessions on the principal balance of our receivables. If a receivable is modified in a reorganization proceeding, all payment requirements of the reorganization plan need to be met before remaining balances are forgiven. Finance receivables involved in TDRs are specifically assessed for impairment. The accrual of revenue is discontinued at the time a receivable is determined to be uncollectible. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance. Impaired consumer receivables include accounts that have been rewritten or modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code that are considered to be Troubled Debt Restructurings (“TDRs”), as well as all accounts greater than 120 days past due. Impaired non-consumer receivables represent accounts with dealers that have weak or poor financial metrics or dealer financing that has been modified in TDRs. |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Policy [Policy Text Block] | We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting. |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Leases [Policy Text Block] | Net investment in operating leases consist primarily of lease contracts for vehicles with individuals, daily rental companies, and fleet customers with terms of 60 months or less . Payment extensions may be requested by the customer and are generally limited to a maximum of six months over the term of the lease. Term extensions may also be requested by the customer. Term and payment extensions in total generally do not exceed twelve months. A lease can be terminated at any time by satisfying the obligations under the lease agreement. Early termination programs may be occasionally offered to eligible lessees. At the end of the lease, the customer returns the vehicle to the dealer or may have the option to buy the leased vehicle. In the case of a contract default and repossession, the customer typically remains liable for any deficiency between net auction proceeds and the defaulted contract obligations, including any repossession-related expenses. Accumulated depreciation reduces the value of the vehicles from their initial acquisition value to their expected residual value at the end of the lease. At the time of purchase, we establish the expected residual value for the vehicle based on recent auction values, return volumes for our leased vehicles, industry-wide used vehicle prices, marketing incentive plans, and vehicle quality data. We monitor residual values each month and review the accuracy of our accumulated depreciation on a quarterly basis. |
Guarantees and Indemnifications Policies [Policy Text Block] | Guarantees and indemnifications are recorded at fair value at their inception. We regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the amount of probable payment is recorded. |
Net Investments in Operating _2
Net Investments in Operating Leases Loans and Lease Receivable (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Lessee, Leases [Policy Text Block] | Net investment in operating leases consist primarily of lease contracts for vehicles with individuals, daily rental companies, and fleet customers with terms of 60 months or less . Payment extensions may be requested by the customer and are generally limited to a maximum of six months over the term of the lease. Term extensions may also be requested by the customer. Term and payment extensions in total generally do not exceed twelve months. A lease can be terminated at any time by satisfying the obligations under the lease agreement. Early termination programs may be occasionally offered to eligible lessees. At the end of the lease, the customer returns the vehicle to the dealer or may have the option to buy the leased vehicle. In the case of a contract default and repossession, the customer typically remains liable for any deficiency between net auction proceeds and the defaulted contract obligations, including any repossession-related expenses. Accumulated depreciation reduces the value of the vehicles from their initial acquisition value to their expected residual value at the end of the lease. At the time of purchase, we establish the expected residual value for the vehicle based on recent auction values, return volumes for our leased vehicles, industry-wide used vehicle prices, marketing incentive plans, and vehicle quality data. We monitor residual values each month and review the accuracy of our accumulated depreciation on a quarterly basis. |
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. $ 78 million , respectively, and had no impact on Net Investment in operating leases . On the income statement, this reclassification increased Depreciation on vehicles subject to operating leases and decreased Provision for credit losses by $ 25 million , respectively, for the first quarter of 2018. These changes had no impact on Income before income taxes, Net investment in operating leases, Retained earnings, or to the Net cash provided by / (used in) operating activities . We have reclassified prior period amounts to reflect the above changes. |
Cash, Cash Equivalents, and M_2
Cash, Cash Equivalents, and Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 March 31, 2019 Cash and cash equivalents U.S. government 1 $ 139 $ 1,112 U.S. government and agencies 2 25 599 Non-U.S. government and agencies 2 114 394 Corporate debt 2 884 639 Total marketable securities classified as cash equivalents 1,162 2,744 Cash, time deposits and money market funds 8,445 8,989 Total cash and cash equivalents $ 9,607 $ 11,733 Marketable Securities U.S. government 1 $ 289 $ 241 U.S. government and agencies 2 65 40 Non-U.S. government and agencies 2 610 803 Corporate debt 2 198 556 Other marketable securities 2 146 206 Total marketable securities $ 1,308 $ 1,846 |
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, 2018 March 31, 2019 Cash and cash equivalents $ 9,607 $ 11,733 Restricted cash included in other assets (a) 140 121 Total cash, cash equivalents, and restricted cash $ 9,747 $ 11,854 __________ (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) | 3 Months Ended |
Mar. 31, 2019 | |
Financing Receivables [Line Items] | |
Sales-type and direct finance leases [Table Text Block] | The reconciliation from our finance lease receivables to our finance leases, gross and our finance leases, net is as follows (in millions): March 31, Finance lease receivables $ 6,168 Unguaranteed residual assets 2,713 Initial direct costs 131 Finance leases, gross 9,012 Unearned interest supplements from Ford and affiliated companies (340 ) Allowance for credit losses (17 ) Finance leases, net $ 8,655 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Finance receivables, net were as follows (in millions): December 31, 2018 March 31, 2019 Consumer Retail installment contracts, gross $ 70,999 $ 69,380 Finance leases, gross 8,748 9,012 Retail financing, gross 79,747 78,392 Unearned interest supplements from Ford and affiliated companies (3,508 ) (3,478 ) Consumer finance receivables 76,239 74,914 Non-Consumer Dealer financing 40,996 42,804 Other financing 2,168 2,045 Non-Consumer finance receivables 43,164 44,849 Total recorded investment $ 119,403 $ 119,763 Recorded investment in finance receivables $ 119,403 $ 119,763 Allowance for credit losses (589 ) (513 ) Finance receivables, net $ 118,814 $ 119,250 Net finance receivables subject to fair value (a) $ 110,388 $ 110,595 Fair value (b) 109,794 110,296 __________ (a) Net finance receivables subject to fair value exclude finance leases. Previously, certain consumer financing products in Europe were classified as retail installment contracts. We now classify these products as finance leases. Comparative information has been revised to reflect this change. (b) 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, 2018 March 31, Consumer 31-60 days past due $ 859 $ 563 61-90 days past due 123 82 91-120 days past due 39 34 Greater than 120 days past due 39 40 Total past due 1,060 719 Current 75,179 74,195 Consumer finance receivables 76,239 74,914 Non-Consumer Total past due 76 81 Current 43,088 44,768 Non-Consumer finance receivables 43,164 44,849 Total recorded investment $ 119,403 $ 119,763 |
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, 2018 March 31, Dealer financing Group I $ 33,656 $ 35,403 Group II 5,635 5,744 Group III 1,576 1,533 Group IV 129 124 Total recorded investment $ 40,996 $ 42,804 |
Finance Receivables Undiscounte
Finance Receivables Undiscounted Future Cash Payments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Finance Lease [Abstract] | |
Sales-type and Direct Financing Leases, Lease Receivable, Maturity [Table Text Block] | The amounts contractually due on our finance lease receivables were as follows (in millions): March 31, Within one year $ 2,065 After one year and within two years 1,955 After two years and within three years 1,646 After three years and within four years 691 After four years and within five years 124 After five years 2 Total future cash payments 6,483 Less: Present value discount (315 ) Finance lease receivables $ 6,168 |
Net Investment in Operating Lea
Net Investment in Operating Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases, Operating [Abstract] | |
Schedule of Amounts Contractually Due for Minimum Rentals on Operating Leases [Table Text Block] | The amounts contractually due for minimum rentals on operating leases at December 31, 2018 were as follows (in millions): 2019 2020 2021 2022 2023 Total Minimum rentals on operating leases $ 4,708 $ 2,929 $ 1,083 $ 83 $ 6 $ 8,809 |
Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block] | The amounts contractually due on our operating leases at March 31, 2019 were as follows (in millions): Within 1 year After 1 year and within 2 years After 2 years and within 3 years After 3 years and within 4 years After 4 years and within 5 years Total Operating lease payments $ 4,719 $ 2,924 $ 1,040 $ 80 $ 5 $ 8,768 |
Net investment in operating leases [Table Text Block] | Net investment in operating leases were as follows (in millions): December 31, March 31, Vehicles, at cost (a) $ 33,593 $ 33,585 Accumulated depreciation (6,144 ) (5,979 ) Net investment in operating leases $ 27,449 27,606 __________ (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) | 3 Months Ended |
Mar. 31, 2019 | |
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 for the periods ended March 31 was as follows (in millions): First Quarter 2018 Consumer Non-Consumer Total Allowance Allowance for credit losses Beginning balance $ 582 $ 15 $ 597 Charge-offs (131 ) (2 ) (133 ) Recoveries 39 1 40 Provision for credit losses 92 2 94 Other 2 — 2 Ending balance $ 584 $ 16 $ 600 Analysis of ending balance of allowance for credit losses Collective impairment allowance $ 563 $ 15 $ 578 Specific impairment allowance 21 1 22 Ending balance 584 16 600 Analysis of ending balance of finance receivables Collectively evaluated for impairment 75,989 45,059 121,048 Specifically evaluated for impairment 380 108 488 Recorded investment 76,369 45,167 121,536 Ending balance, net of allowance for credit losses $ 75,785 $ 45,151 $ 120,936 First Quarter 2019 Consumer Non-Consumer Total Allowance Allowance for credit losses Beginning balance $ 566 $ 23 $ 589 Charge-offs (137 ) (17 ) (154 ) Recoveries 43 2 45 Provision for credit losses 24 9 33 Other — — — Ending balance $ 496 $ 17 $ 513 Analysis of ending balance of allowance for credit losses Collective impairment allowance $ 477 $ 16 $ 493 Specific impairment allowance 19 1 20 Ending balance 496 17 513 Analysis of ending balance of finance receivables Collectively evaluated for impairment 74,555 44,725 119,280 Specifically evaluated for impairment 359 124 483 Recorded investment 74,914 44,849 119,763 Ending balance, net of allowance for credit losses $ 74,418 $ 44,832 $ 119,250 |
Transfers of Receivables (Table
Transfers of Receivables (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 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 $ 1.9 $ 34.0 $ 0.2 $ 33.8 $ 29.2 Wholesale financing 0.3 24.9 — 24.9 13.9 Finance receivables 2.2 58.9 0.2 58.7 43.1 Net investment in operating leases 0.5 16.3 — 16.3 10.2 Total VIE $ 2.7 $ 75.2 $ 0.2 $ 75.0 $ 53.3 Non-VIE Retail financing $ 0.3 $ 6.7 $ — $ 6.7 $ 5.9 Wholesale financing — 0.8 — 0.8 0.6 Finance receivables 0.3 7.5 — 7.5 6.5 Net investment in operating leases — — — — — Total Non-VIE $ 0.3 $ 7.5 $ — $ 7.5 $ 6.5 Total securitization transactions Retail financing $ 2.2 $ 40.7 $ 0.2 $ 40.5 $ 35.1 Wholesale financing 0.3 25.7 — 25.7 14.5 Finance receivables 2.5 66.4 0.2 66.2 49.6 Net investment in operating leases 0.5 16.3 — 16.3 10.2 Total securitization transactions $ 3.0 $ 82.7 $ 0.2 $ 82.5 $ 59.8 __________ (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) March 31, 2019 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 $ 2.1 $ 35.4 $ 0.2 $ 35.2 $ 30.6 Wholesale financing 0.3 25.5 — 25.5 11.5 Finance receivables 2.4 60.9 0.2 60.7 42.1 Net investment in operating leases 0.6 16.0 — 16.0 10.1 Total VIE $ 3.0 $ 76.9 $ 0.2 $ 76.7 $ 52.2 Non-VIE Retail financing $ 0.3 $ 7.8 $ — $ 7.8 $ 6.9 Wholesale financing — 0.8 — 0.8 0.6 Finance receivables 0.3 8.6 — 8.6 7.5 Net investment in operating leases — — — — — Total Non-VIE $ 0.3 $ 8.6 $ — $ 8.6 $ 7.5 Total securitization transactions Retail financing $ 2.4 $ 43.2 $ 0.2 $ 43.0 $ 37.5 Wholesale financing 0.3 26.3 — 26.3 12.1 Finance receivables 2.7 69.5 0.2 69.3 49.6 Net investment in operating leases 0.6 16.0 — 16.0 10.1 Total securitization transactions $ 3.3 $ 85.5 $ 0.2 $ 85.3 $ 59.7 __________ (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) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The gains / (losses), by hedge designation, reported in income for the periods ended March 31 were as follows (in millions): First Quarter 2018 2019 Fair value hedges Interest rate contracts Net interest settlements and accruals on hedging instruments $ 26 $ (20 ) Fair value changes on hedging instruments (339 ) 250 Fair value changes on hedged debt 329 (253 ) Derivatives not designated as hedging instruments Interest rate contracts (17 ) (27 ) Foreign currency exchange contracts (a) (12 ) (6 ) Cross-currency interest rate swap contracts (58 ) (145 ) Total $ (71 ) $ (201 ) __________ (a) 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, 2018 March 31, 2019 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Fair value hedges Interest rate contracts $ 22,989 $ 158 $ 208 $ 23,894 $ 217 $ 143 Derivatives not designated as hedging instruments Interest rate contracts 76,904 235 274 67,726 216 295 Foreign currency exchange contracts 4,318 45 24 3,893 52 30 Cross-currency interest rate swap contracts 5,235 232 157 6,331 146 216 Total derivative financial instruments, gross (a) (b) $ 109,446 $ 670 $ 663 $ 101,844 $ 631 $ 684 __________ (a) At December 31, 2018 and March 31, 2019 , we held collateral of $19 million and $26 million , respectively, and we posted collateral of $59 million and $63 million , respectively. (b) At December 31, 2018 and March 31, 2019 , the fair value of assets and liabilities available for counterparty netting was $233 million and $219 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) | 3 Months Ended |
Mar. 31, 2019 | |
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, March 31, Accrued interest and other non-finance receivables $ 1,080 $ 1,116 Collateral held for resale, at net realizable value, and other inventory 877 737 Prepaid reinsurance premiums and other reinsurance recoverables 658 663 Deferred charges – income taxes 216 200 Property and equipment, net of accumulated depreciation (a) 192 200 Investment in non-consolidated affiliates 123 127 Restricted cash 140 121 Operating lease assets — 92 Deferred charges 96 89 Other 74 97 Total other assets $ 3,456 $ 3,442 __________ (a) Accumulated depreciation was $367 million and $375 million at December 31, 2018 and March 31, 2019 , respectively. Other liabilities and deferred revenue were as follows (in millions): December 31, March 31, Unearned insurance premiums and fees $ 775 $ 779 Interest payable 752 637 Income tax and related interest (a) 369 329 Deferred revenue 113 126 Operating lease liabilities — 94 Payroll and employee benefits 70 45 Other 228 208 Total other liabilities and deferred revenue $ 2,307 $ 2,218 __________ (a) Includes tax and interest payable to affiliated companies of $ 193 million and $ 182 million at December 31, 2018 and March 31, 2019 , respectively. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Debt outstanding and interest rates were as follows (in millions): Interest Rates Debt Average Contractual Average Effective December 31, March 31, 2018 2019 2018 2019 Short-term debt Unsecured debt Floating rate demand notes $ 5,880 $ 6,170 Commercial paper 3,749 3,713 Other short-term debt 4,213 3,760 Asset-backed debt 943 983 Total short-term debt 14,785 14,626 3.5 % 3.4 % 3.5 % 3.4 % Long-term debt Unsecured debt Notes payable within one year 14,373 13,814 Notes payable after one year 52,409 55,849 Asset-backed debt (a) Notes payable within one year 22,130 23,502 Notes payable after one year 36,844 35,306 Unamortized discount 2 1 Unamortized issuance costs (211 ) (221 ) Fair value adjustments (b) (186 ) 73 Total long-term debt 125,361 128,324 2.8 % 3.0 % 2.8 % 3.0 % Total debt $ 140,146 $ 142,950 2.8 % 3.0 % 2.9 % 3.1 % Fair value of debt (c) $ 138,888 $ 142,595 __________ (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 $38.0 billion and $38.1 billion at December 31, 2018 and March 31, 2019 , respectively. (c) The fair value of debt includes $13.8 billion and $13.6 billion of short-term debt at December 31, 2018 and March 31, 2019 , 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) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31 were as follows (in millions): First Quarter 2018 2019 Beginning AOCI balance $ (419 ) $ (829 ) Net gain / (loss) on foreign currency translation 113 20 Ending AOCI balance $ (306 ) $ (809 ) |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income [Table Text Block] | The amounts included in Other income, net for the periods ended March 31 were as follows (in millions): First Quarter 2018 2019 Gains / (Losses) on derivatives $ (87 ) $ (178 ) Currency revaluation gains / (losses) 62 131 Interest and investment income 42 79 Other 20 27 Total other income, net $ 37 $ 59 |
Segment and Geographic Informat
Segment and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Key financial information for our business segments for the periods ended or at March 31 were as follows (in millions): Americas Europe Asia Pacific Total Segments Unallocated Other (a) Total First Quarter 2018 Total revenue $ 2,581 $ 295 $ 144 $ 3,020 $ — $ 3,020 Income before income taxes 515 111 46 672 (31 ) 641 Other disclosures: Depreciation on vehicles subject to operating leases 1,048 5 — 1,053 — 1,053 Interest expense 752 72 91 915 (3 ) 912 Provision for credit losses 86 5 3 94 — 94 Net finance receivables and net investment in operating leases 120,392 27,702 7,574 155,668 (8,017 ) 147,651 Total assets 127,013 30,109 7,961 165,083 — 165,083 First Quarter 2019 Total revenue $ 2,793 $ 303 $ 98 $ 3,194 $ — $ 3,194 Income before income taxes 644 116 34 794 7 801 Other disclosures: Depreciation on vehicles subject to operating leases 912 12 — 924 — 924 Interest expense 972 80 61 1,113 8 1,121 Provision for credit losses 38 5 (10 ) 33 — 33 Net finance receivables and net investment in operating leases 123,323 27,066 4,885 155,274 (8,418 ) 146,856 Total assets 130,603 29,459 5,353 165,415 — 165,415 __________ (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). |
Commitments and Contingencies O
Commitments and Contingencies Operating Lease Liability Maturity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Operating Lease, Liability, Maturity [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The amounts contractually due on our operating lease liabilities as of March 31, 2019 were as follows (in millions): Within 1 year After 1 year and within 2 years After 2 years and within 3 years After 3 years and within 4 years After 4 years and within 5 years After 5 years Total Operating lease $ 20 $ 16 $ 12 $ 12 $ 11 $ 35 $ 106 Less: Present value discount (12 ) Total operating lease liabilities $ 94 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | We have rental commitments for certain land, buildings, and equipment that expire over various contractual periods. Minimum non-cancelable operating lease commitments at December 31, 2018 were as follows (in millions): 2019 2020 2021 2022 2023 Thereafter Total Minimum rentals on operating leases $ 19 $ 14 $ 11 $ 10 $ 9 $ 34 $ 97 |
Accounting Policies (Details)
Accounting Policies (Details) - Accounting Standards Update 2016-02 [Member] $ in Millions | Mar. 31, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating Lease Right Of Use Asset Expected | $ 100 |
Minimum [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating Lease Liability Expected | $ 100 |
Cash, Cash Equivalents, and M_3
Cash, Cash Equivalents, and Marketable Securities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash, Cash Equivalents, and Short-term Investments | $ 8,989 | $ 8,445 | ||
Total cash and cash equivalents | 11,733 | 9,607 | ||
Restricted Cash | 121 | 140 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 11,854 | 9,747 | $ 8,914 | $ 9,682 |
Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 2,744 | 1,162 | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Marketable securities | 1,846 | 1,308 | ||
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 | 1,112 | 139 | ||
Marketable securities | 241 | 289 | ||
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 | 599 | 25 | ||
Marketable securities | 40 | 65 | ||
Debt Security, Government, Non-US [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 394 | 114 | ||
Marketable securities | 803 | 610 | ||
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 | 639 | 884 | ||
Marketable securities | 556 | 198 | ||
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 | $ 206 | $ 146 |
Finance Receivables Net (Detail
Finance Receivables Net (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Sales-Type and Direct Financing Lease, Revenue | $ 92 | $ 95 | ||
Sales-type and Direct Financing Leases, Lease Receivable | 6,168 | |||
Net Finance Receivables [Abstract] | ||||
Financing Receivable, Gross | 119,763 | 121,536 | $ 119,403 | |
Allowance for credit losses | (513) | (600) | (589) | $ (597) |
Finance receivables, net | 119,250 | 120,936 | 118,814 | |
Net finance receivables subject to fair value | 110,595 | 110,388 | ||
Uncollected interest receivable excluded from finance receivable | 275 | 264 | 241 | |
Sales-type and Direct Financing Leases, Unguaranteed Residual Asset | 2,713 | |||
Deferred Costs, Leasing, Gross | 131 | |||
Consumer Segment [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Financing Receivable, Gross | 74,914 | 76,369 | 76,239 | |
Allowance for credit losses | (496) | (584) | (566) | (582) |
Finance receivables, net | 74,418 | 75,785 | ||
Continuing Involvement with Continued to be Recognized Transferred Financial Assets, Amount Outstanding | 43,200 | 40,700 | ||
Non-Consumer Segment [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Financing Receivable, Gross | 44,849 | 45,167 | 43,164 | |
Allowance for credit losses | (17) | (16) | (23) | (15) |
Finance receivables, net | 44,832 | $ 45,151 | ||
Continuing Involvement with Continued to be Recognized Transferred Financial Assets, Amount Outstanding | 26,300 | $ 25,700 | ||
Retail Installment loans [Member] | Consumer Segment [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Financing Receivable, Gross | 69,380 | 70,999 | ||
Retail [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Unearned interest supplements from Ford and affiliated companies | (340) | |||
Retail [Member] | Consumer Segment [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Unearned interest supplements from Ford and affiliated companies | (3,478) | (3,508) | ||
Financing Receivable, Gross | 74,914 | 76,239 | ||
Finance Receivable Before Unearned Interest Supplements | 78,392 | 79,747 | ||
Finance Leases Portfolio Segment [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Allowance for credit losses | (17) | |||
Finance leases [Domain] | ||||
Net Finance Receivables [Abstract] | ||||
Financing Receivable, Gross | 9,012 | |||
Finance receivables, net | 8,655 | 8,426 | ||
Finance leases [Domain] | Consumer Segment [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Financing Receivable, Gross | 9,012 | 8,748 | ||
Wholesale and Dealer Loans [Member] | Non-Consumer Segment [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Financing Receivable, Gross | 42,804 | 40,996 | ||
Other Finance Receivables [Member] | Non-Consumer Segment [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Financing Receivable, Gross | 2,045 | 2,168 | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Fair value (b) | $ 110,296 | $ 109,794 |
Finance Receivables - Aging Ana
Finance Receivables - Aging Analysis (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 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 | $ 119,763 | $ 119,403 | $ 121,536 | |
Uncollected Interest Receivable Excluded From Finance Receivable | 275 | 264 | $ 241 | |
Consumer Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 20 | ||
Finance Receivables Aging Analysis [Abstract] | ||||
Total past due | 719 | 1,060 | ||
Current | 74,195 | 75,179 | ||
Financing Receivables | 74,914 | 76,239 | 76,369 | |
Non-Consumer Segment [Member] | ||||
Finance Receivables Aging Analysis [Abstract] | ||||
Total past due | 81 | 76 | ||
Current | 44,768 | 43,088 | ||
Financing Receivables | 44,849 | 43,164 | $ 45,167 | |
31-60 Days Past Due [Member] | Consumer Segment [Member] | ||||
Finance Receivables Aging Analysis [Abstract] | ||||
Total past due | 563 | 859 | ||
61-90 Days Past Due [Member] | Consumer Segment [Member] | ||||
Finance Receivables Aging Analysis [Abstract] | ||||
Total past due | 82 | 123 | ||
91-120 Days Past Due [Member] | Consumer Segment [Member] | ||||
Finance Receivables Aging Analysis [Abstract] | ||||
Total past due | 34 | 39 | ||
Greater Than 120 Days Past Due [Member] | Consumer Segment [Member] | ||||
Finance Receivables Aging Analysis [Abstract] | ||||
Total past due | $ 40 | $ 39 |
Finance Receivables - Credit Qu
Finance Receivables - Credit Quality and Impaired Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | $ 119,763 | $ 119,403 | $ 121,536 |
Consumer Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold Period for Impaired Finance Receivables | 120 days | ||
Financing Receivables | $ 74,914 | 76,239 | 76,369 |
Impaired Financing Receivable, Recorded Investment | $ 359 | $ 370 | |
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 | $ 44,849 | $ 43,164 | $ 45,167 |
Impaired Financing Receivable, Recorded Investment | $ 124 | $ 129 | |
Impaired Financing Receivable Recorded Investment, Percentage of Receivable | 0.30% | 0.30% | |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | $ 42,804 | $ 40,996 | |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group I | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | 35,403 | 33,656 | |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group II | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | 5,744 | 5,635 | |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group III | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | 1,533 | 1,576 | |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group IV | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | $ 124 | $ 129 |
Finance Receivables Undiscoun_2
Finance Receivables Undiscounted Future Cash Payments (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Financing Receivable, Impaired [Line Items] | |||
Financing Receivable, Gross | $ 119,763 | $ 119,403 | $ 121,536 |
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Next Twelve Months | 2,065 | ||
Sales-type and Direct Financing Leases, Lease Receivable, Lease Payments to be Received, Rolling Year Two | 1,955 | ||
Sales-type and Direct Financing Leases, Lease Receivable, Lease Payments to be Received, Rolling Year Three | 1,646 | ||
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Rolling Year Four | 691 | ||
Sales-type and Direct Financing Leases, Lease Receivable, Lease Payments to be Received, Rolling Year Five | 124 | ||
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Thereafter | 2 | ||
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received | 6,483 | ||
Sales-type and Direct Financing Leases, Lease Receivable, Undiscounted Excess Amount | (315) | ||
Sales-type and Direct Financing Leases, Lease Receivable | 6,168 | ||
Finance leases [Domain] | |||
Financing Receivable, Impaired [Line Items] | |||
Financing Receivable, Gross | 9,012 | ||
Automobile Loan [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Related Party Transaction Unearned Interest Supplements From Transactions With Related Party | $ 340 |
Net Investments in Operating _3
Net Investments in Operating Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Investment in Operating Leases, Length of Lease | 60 months or less | |||
Net investment in operating lease, term and payment extension | 12 months | |||
Investment In Operating Leases, Net | $ 27,606 | $ 27,449 | ||
Property Subject to or Available for Operating Lease, Gross | 33,585 | 33,593 | ||
Property Subject to or Available for Operating Lease, Accumulated Depreciation | 5,979 | 6,144 | ||
Allowance for credit losses | (513) | $ (600) | (589) | $ (597) |
Provision for Loan and Lease Losses | (33) | (94) | ||
Operating Leases, Income Statement, Depreciation Expense on Property Subject to or Held-for-lease | 924 | 1,053 | ||
Net Investment in Operating Leases [Member] | ||||
Continuing Involvement with Continued to be Recognized Transferred Financial Assets, Amount Outstanding | $ 16,000 | 16,300 | ||
Adjustments for New Accounting Pronouncement [Member] | ||||
Property Subject to or Available for Operating Lease, Accumulated Depreciation | 78 | |||
Allowance for credit losses | $ (78) | |||
Provision for Loan and Lease Losses | (25) | |||
Operating Leases, Income Statement, Depreciation Expense on Property Subject to or Held-for-lease | $ 25 | |||
Maximum [Member] | ||||
Net investment in operating lease, payment extension | 6 months |
Net Investments in Operating _4
Net Investments in Operating Leases Contractual Maturities: Minimum Rentals on Operating Lease (Details) $ in Millions | Dec. 31, 2018USD ($) |
Contractual Maturities: Minimum Rentals [Abstract] | |
Operating Leases, Future Minimum Payments Receivable, Current | $ 4,708 |
Operating Leases, Future Minimum Payments Receivable, in Two Years | 2,929 |
Operating Leases, Future Minimum Payments Receivable, in Three Years | 1,083 |
Operating Leases, Future Minimum Payments Receivable, in Four Years | 83 |
Operating Leases, Future Minimum Payments Receivable, in Five Years | 6 |
Operating Leases, Future Minimum Payments Receivable | $ 8,809 |
Net Investments in Operating _5
Net Investments in Operating Leases Contractual Maturities: Operating Lease Payments (Details) $ in Millions | Mar. 31, 2019USD ($) |
Contractual Maturities: Operating Lease Payments [Abstract] | |
Lessor, Operating Lease, Payments to be Received, Next Rolling Twelve Months | $ 4,719 |
Lessor, Operating Lease, Payments to be Received, Rolling Year Two | 2,924 |
Lessor, Operating Lease, Payments to be Received, Rolling Year Three | 1,040 |
Lessor, Operating Lease, Payments to be Received, Rolling Year Four | 80 |
Lessor, Operating Lease, Payments to be Received, Rolling Year Five | 5 |
Lessor, Operating Lease, Payments to be Received | $ 8,768 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Allowance for credit losses, finance receivables | |||
Beginning balance | $ 589 | $ 597 | |
Charge-offs | (154) | (133) | |
Recoveries | 45 | 40 | |
Provision for credit losses | 33 | 94 | |
Other | 0 | 2 | |
Ending balance | 513 | 600 | |
Analysis of ending balance of allowance for credit losses, finance receivables | |||
Collective impairment allowance | 493 | 578 | |
Specific impairment allowance | 20 | 22 | |
Ending balance | 513 | 600 | |
Analysis of ending balance of finance receivables | |||
Collectively evaluated for impairment | 119,280 | 121,048 | |
Specifically evaluated for impairment | 483 | 488 | |
Financing Receivables | 119,763 | 121,536 | $ 119,403 |
Ending balance, net of allowance for credit losses | 119,250 | 120,936 | 118,814 |
Consumer Segment [Member] | |||
Allowance for credit losses, finance receivables | |||
Beginning balance | 566 | 582 | |
Charge-offs | (137) | (131) | |
Recoveries | 43 | 39 | |
Provision for credit losses | 24 | 92 | |
Other | 0 | 2 | |
Ending balance | 496 | 584 | |
Analysis of ending balance of allowance for credit losses, finance receivables | |||
Collective impairment allowance | 477 | 563 | |
Specific impairment allowance | 19 | 21 | |
Ending balance | 496 | 584 | |
Analysis of ending balance of finance receivables | |||
Collectively evaluated for impairment | 74,555 | 75,989 | |
Specifically evaluated for impairment | 359 | 380 | |
Financing Receivables | 74,914 | 76,369 | 76,239 |
Ending balance, net of allowance for credit losses | 74,418 | 75,785 | |
Non-Consumer Segment [Member] | |||
Allowance for credit losses, finance receivables | |||
Beginning balance | 23 | 15 | |
Charge-offs | (17) | (2) | |
Recoveries | 2 | 1 | |
Provision for credit losses | 9 | 2 | |
Other | 0 | 0 | |
Ending balance | 17 | 16 | |
Analysis of ending balance of allowance for credit losses, finance receivables | |||
Collective impairment allowance | 16 | 15 | |
Specific impairment allowance | 1 | 1 | |
Ending balance | 17 | 16 | |
Analysis of ending balance of finance receivables | |||
Collectively evaluated for impairment | 44,725 | 45,059 | |
Specifically evaluated for impairment | 124 | 108 | |
Financing Receivables | 44,849 | 45,167 | $ 43,164 |
Ending balance, net of allowance for credit losses | $ 44,832 | $ 45,151 |
Transfers of Receivables - Asse
Transfers of Receivables - Assets and Liabilities of Securitizations (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | $ 11,733 | $ 9,607 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 146,856 | $ 147,651 | |
Related Debt | 142,950 | 140,146 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 2,990 | 2,728 | |
Related Debt | 52,248 | 53,269 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 3,000 | 2,700 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 76,900 | 75,200 | |
Allowance for Credit Losses | 200 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 76,700 | 75,000 | |
Related Debt | 52,200 | 53,300 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 2,400 | 2,200 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 60,900 | 58,900 | |
Allowance for Credit Losses | 200 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 60,700 | 58,700 | |
Related Debt | 42,100 | 43,100 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Retail [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 2,100 | 1,900 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 35,400 | 34,000 | |
Allowance for Credit Losses | 200 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 35,200 | 33,800 | |
Related Debt | 30,600 | 29,200 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Wholesale [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 300 | 300 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 25,500 | 24,900 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 25,500 | 24,900 | |
Related Debt | 11,500 | 13,900 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 600 | 500 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 16,000 | 16,300 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 16,000 | 16,300 | |
Related Debt | 10,100 | 10,200 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 3,300 | 3,000 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 85,500 | 82,700 | |
Allowance for Credit Losses | 200 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 85,300 | 82,500 | |
Related Debt | 59,700 | 59,800 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 2,700 | 2,500 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 69,500 | 66,400 | |
Allowance for Credit Losses | 200 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 69,300 | 66,200 | |
Related Debt | 49,600 | 49,600 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Retail [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 2,400 | 2,200 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 43,200 | 40,700 | |
Allowance for Credit Losses | 200 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 43,000 | 40,500 | |
Related Debt | 37,500 | 35,100 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Wholesale [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 300 | 300 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 26,300 | 25,700 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 26,300 | 25,700 | |
Related Debt | 12,100 | 14,500 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 600 | 500 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 16,000 | 16,300 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 16,000 | 16,300 | |
Related Debt | 10,100 | 10,200 | |
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 | 8,600 | 7,500 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 8,600 | 7,500 | |
Related Debt | 7,500 | 6,500 | |
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 | 8,600 | 7,500 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 8,600 | 7,500 | |
Related Debt | 7,500 | 6,500 | |
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 | 7,800 | 6,700 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 7,800 | 6,700 | |
Related Debt | 6,900 | 5,900 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Wholesale [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 800 | 800 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 800 | 800 | |
Related Debt | 600 | 600 | |
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 | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Debt Carrying Value Fair Value | $ 38,100 | $ 38,000 | |
Income Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Gain (Loss) on Derivative, Net | (201) | $ (71) | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Notional | 101,844 | 109,446 | |
Fair Value of Derivative Assets | 631 | 670 | |
Fair Value of Derivative Liabilities | 684 | 663 | |
Derivative, Collateral, Obligation to Return Cash | 26 | 19 | |
Derivative, Collateral, Right to Reclaim Cash | 63 | 59 | |
Derivative Asset, Not Offset, Policy Election Deduction | 219 | 233 | |
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Income Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Gain (Loss) on Derivative, Net | (27) | (17) | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Notional | 67,726 | 76,904 | |
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 | (20) | 26 | |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 250 | (339) | |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (253) | 329 | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Notional | 23,894 | 22,989 | |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Income Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Gain (Loss) on Derivative, Net | (6) | (12) | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Notional | 3,893 | 4,318 | |
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 | (145) | $ (58) | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Notional | 6,331 | 5,235 | |
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 | 216 | 235 | |
Fair Value of Derivative Liabilities | 295 | 274 | |
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 | 217 | 158 | |
Fair Value of Derivative Liabilities | 143 | 208 | |
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 | 52 | 45 | |
Fair Value of Derivative Liabilities | 30 | 24 | |
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 | 146 | 232 | |
Fair Value of Derivative Liabilities | $ 216 | $ 157 |
Other Assets and Other Liabil_3
Other Assets and Other Liabilities and Deferred Income (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Schedule of Other Assets and Liabilities [Line Items] | |||
Related Party Transactions Income Taxes and Related Interest Payable | $ 182 | $ 193 | |
Other Assets [Abstract] | |||
Accrued interest and other non-finance receivables | 1,116 | 1,080 | |
Collateral held for resale, at net realizable value, and other inventory | 737 | 877 | |
Prepaid reinsurance premiums and other reinsurance recoverables | 663 | 658 | |
Deferred charges - income taxes | 200 | 216 | |
Property and equipment, net of accumulated depreciation | 200 | 192 | |
Deferred charges | 89 | 96 | |
Finance Lease, Right-of-Use Asset | 92 | 0 | |
Restricted cash | 121 | 140 | |
Investment in non-consolidated affiliates | 127 | 123 | |
Other | 97 | 74 | |
Total other assets | 3,442 | 3,456 | |
Accumulated depreciation | 375 | 367 | |
Other Liabilities and Deferred Income [Abstract] | |||
Unearned insurance premiums and fees | 779 | 775 | |
Interest payable | 637 | 752 | |
Taxes Payable | 329 | 369 | |
Deferred revenue | 126 | 113 | |
Payroll and employee benefits | 45 | 70 | |
Lessee, Operating Lease, Liability, Payments, Due | 106 | 0 | |
Operating Lease, Liability | 94 | ||
Other | 208 | 228 | |
Total other liabilities and deferred income | 2,218 | 2,307 | |
Deferred Revenue, Admission Fees | 76 | 87 | |
Cost Method Investments | 9 | 9 | |
Total assets | $ 165,415 | $ 162,209 | $ 165,083 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total short-term debt | $ 14,626 | $ 14,785 |
Unamortized discount | 1 | 2 |
Unamortized debt issuance costs | (221) | (211) |
Fair value adjustments | 73 | (186) |
Total long-term debt | 128,324 | 125,361 |
Total debt | $ 142,950 | $ 140,146 |
Average Contractual (interest rate) | 3.00% | 2.80% |
Average Effective (interest rate) | 3.10% | 2.90% |
Debt Carrying Value Fair Value | $ 38,100 | $ 38,000 |
Fair value of short-term debt | 13,600 | 13,800 |
Floating Rate Demand Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 6,170 | 5,880 |
Unsecured commercial paper [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 3,713 | 3,749 |
Other short-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 3,760 | 4,213 |
Asset-backed Securities [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 983 | 943 |
Notes payable within one year | 23,502 | 22,130 |
Notes payable after one year | $ 35,306 | $ 36,844 |
Total short-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Average Contractual (interest rate) | 3.40% | 3.50% |
Average Effective (interest rate) | 3.40% | 3.50% |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable within one year | $ 13,814 | $ 14,373 |
Notes payable after one year | $ 55,849 | $ 52,409 |
Total long-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Average Contractual (interest rate) | 3.00% | 2.80% |
Average Effective (interest rate) | 3.00% | 2.80% |
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 142,595 | $ 138,888 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cumulative Translation Adjustment Summary [Roll Forward] | ||
Beginning balance | $ (829) | $ (419) |
Net gain/(loss) on Foreign Currency Transaction | 20 | 113 |
Ending balance | (809) | (306) |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax [Abstract] | ||
Net gain/(loss) on foreign currency translation, tax adjustment | $ 0 | $ 0 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | ||
Gains/(Losses) on derivatives | $ (178) | $ (87) |
Currency revaluation gains/(losses) | 131 | 62 |
Interest and investment income | 79 | 42 |
Other | 27 | 20 |
Total other income, net | $ 59 | $ 37 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 3,194 | $ 3,020 | |
Income before income taxes | 801 | 641 | |
Other disclosures [Abstract] | |||
Depreciation on vehicles subject to operating leases | (924) | (1,053) | |
Interest expense | 1,121 | 912 | |
Provision for credit losses | 33 | 94 | |
Net finance receivables and net investment in operating leases | 146,856 | 147,651 | |
Total assets | 165,415 | 165,083 | $ 162,209 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 3,194 | 3,020 | |
Income before income taxes | 794 | 672 | |
Other disclosures [Abstract] | |||
Depreciation on vehicles subject to operating leases | (924) | (1,053) | |
Interest expense | 1,113 | 915 | |
Provision for credit losses | 33 | 94 | |
Net finance receivables and net investment in operating leases | 155,274 | 155,668 | |
Total assets | 165,415 | 165,083 | |
Operating Segments [Member] | Americas [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 2,793 | 2,581 | |
Income before income taxes | 644 | 515 | |
Other disclosures [Abstract] | |||
Depreciation on vehicles subject to operating leases | (912) | (1,048) | |
Interest expense | 972 | 752 | |
Provision for credit losses | 38 | 86 | |
Net finance receivables and net investment in operating leases | 123,323 | 120,392 | |
Total assets | 130,603 | 127,013 | |
Operating Segments [Member] | Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 303 | 295 | |
Income before income taxes | 116 | 111 | |
Other disclosures [Abstract] | |||
Depreciation on vehicles subject to operating leases | (12) | (5) | |
Interest expense | 80 | 72 | |
Provision for credit losses | 5 | 5 | |
Net finance receivables and net investment in operating leases | 27,066 | 27,702 | |
Total assets | 29,459 | 30,109 | |
Operating Segments [Member] | Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 98 | 144 | |
Income before income taxes | 34 | 46 | |
Other disclosures [Abstract] | |||
Depreciation on vehicles subject to operating leases | 0 | 0 | |
Interest expense | 61 | 91 | |
Provision for credit losses | (10) | 3 | |
Net finance receivables and net investment in operating leases | 4,885 | 7,574 | |
Total assets | 5,353 | 7,961 | |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 0 | 0 | |
Income before income taxes | 7 | (31) | |
Other disclosures [Abstract] | |||
Depreciation on vehicles subject to operating leases | 0 | 0 | |
Interest expense | 8 | (3) | |
Provision for credit losses | 0 | 0 | |
Net finance receivables and net investment in operating leases | (8,418) | (8,017) | |
Total assets | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Current Carrying Value | $ 0 | |
Loss Contingency, Estimate of Possible Loss | $ 50 | |
Financial Guarantee [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 38 | 34 |
Counter Guarantee [Member] | Ford Motor Company [Member] | ||
Guarantor Obligations [Line Items] | ||
Counter guarantee | $ 32 | $ 29 |
Minimum [Member] | ||
Guarantor Obligations [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 1 year | |
Maximum [Member] | ||
Guarantor Obligations [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 11 years |
Commitments and Contingencies_2
Commitments and Contingencies Operating Lease Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Operating Lease Maturities [Abstract] | ||
Lessee, Operating Lease, Liability, Payments, Due Next Rolling Twelve Months | $ 20 | |
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Two | 16 | |
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Three | 12 | |
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Four | 12 | |
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Five | 11 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 35 | |
Lessee, Operating Lease, Liability, Payments, Due | 106 | $ 0 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (12) | |
Operating Lease, Liability | 94 | |
Operating and Variable Lease Expense | 6 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 11 | |
Operating Lease, Weighted Average Remaining Lease Term | 7 years | |
Operating Lease, Weighted Average Discount Rate, Percent | 3.30% | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 19 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 14 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 11 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 10 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 9 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 34 | |
Operating Leases, Future Minimum Payments Due | $ 97 |