Document and Entity Information
Document and Entity Information Document | 6 Months Ended |
Jun. 30, 2022 shares | |
Document Transition Report | false |
Entity Incorporation, State or Country Code | DE |
Document Quarterly Report | true |
Entity Registrant Name | Ford Motor Credit Co LLC |
Entity Central Index Key | 0000038009 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Document Type | 10-Q |
Entity File Number | 1-6368 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 0 |
Entity Small Business | false |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
Membership Interests Description | All of the limited liability company interests in the registrant (“Shares”) are held by an affiliate of the registrant. None of the Shares are publicly traded. |
Local Phone Number | (313) |
Entity Tax Identification Number | 38-1612444 |
Entity Address, Address Line One | One American Road |
Entity Address, City or Town | Dearborn, |
Entity Address, State or Province | MI |
Entity Address, Postal Zip Code | 48126 |
Local Phone Number | 322-3000 |
Entity Interactive Data Current | Yes |
Entity Shell Company | false |
Document Period End Date | Jun. 30, 2022 |
F/23E [Member] | |
Trading Symbol | F/23E |
Security Exchange Name | NYSE |
Title of 12(b) Security | 0.623% Notes due June 28, 2023* |
F/25i [Member] | |
Trading Symbol | F/25I |
Security Exchange Name | NYSE |
Title of 12(b) Security | 1.355% Notes due February 7, 2025* |
F/24O [Member] | |
Trading Symbol | F/24O |
Security Exchange Name | NYSE |
Title of 12(b) Security | 4.125% Notes due on June 20, 2024* |
F/24M [Member] | |
Trading Symbol | F/24M |
Security Exchange Name | NYSE |
Title of 12(b) Security | 3.021% Notes due March 6, 2024* |
F/25K [Member] | |
Trading Symbol | F/25K |
Security Exchange Name | NYSE |
Title of 12(b) Security | 4.535% Notes due March 6, 2025* |
F/26N [Member] | |
Trading Symbol | F/26N |
Security Exchange Name | NYSE |
Title of 12(b) Security | 3.350% Notes due Nine Months or More from the Date of Issue due August 20, 2026 |
F/23G [Member] | |
Trading Symbol | F/23G |
Security Exchange Name | NYSE |
Title of 12(b) Security | 1.514% Notes due February 17, 2023* |
F/26AB [Member] | |
Trading Symbol | F/26AB |
Security Exchange Name | NYSE |
Title of 12(b) Security | 2.386% Notes due February 17, 2026* |
F/24R [Member] | |
Trading Symbol | F/24R |
Security Exchange Name | NYSE |
Title of 12(b) Security | 1.744% Notes due July 19, 2024* |
F/25L [Member] | |
Trading Symbol | F/25L |
Security Exchange Name | NYSE |
Title of 12(b) Security | 2.330% Notes due on November 25, 2025* |
F/24Q [Member] | |
Trading Symbol | F/24Q |
Security Exchange Name | NYSE |
Title of 12(b) Security | 3.683% Notes due on December 3, 2024* |
F/25M | |
Trading Symbol | F/25M |
Security Exchange Name | NYSE |
Title of 12(b) Security | 3.250% Notes due September 15, 2025* |
F/24S | |
Trading Symbol | F/24S |
Security Exchange Name | NYSE |
Title of 12(b) Security | 2.748% Notes due on June 14, 2024* |
F/24L [Member] | |
Trading Symbol | F/24L |
Security Exchange Name | NYSE |
Title of 12(b) Security | Floating Rate Notes due December 1, 2024* |
F/22T [Member] | |
Trading Symbol | F/22T |
Security Exchange Name | NYSE |
Title of 12(b) Security | Floating Rate Notes due December 7, 2022* |
F/23D [Member] | |
Trading Symbol | F/23D |
Security Exchange Name | NYSE |
Title of 12(b) Security | Floating Rate Notes due November 15, 2023* |
Consolidated Income Statement
Consolidated Income Statement - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Financing revenue | ||||
Retail financing | $ 874 | $ 1,004 | $ 1,780 | $ 1,994 |
Dealer financing | 221 | 187 | 385 | 473 |
Other | 15 | 13 | 22 | 27 |
Revenue from Contract with Customer, Excluding Assessed Tax | 2,276 | 2,571 | 4,564 | 5,241 |
Depreciation on vehicles subject to operating leases | (549) | (191) | (1,064) | (759) |
Interest expense | (657) | (680) | (1,268) | (1,484) |
Net financing margin | 1,070 | 1,700 | 2,232 | 2,998 |
Other revenue | ||||
Premiums Earned, Net | 17 | 17 | 32 | 44 |
Fee based revenue and other | 55 | 53 | 78 | 73 |
Total financing margin and other revenue | 1,142 | 1,770 | 2,342 | 3,115 |
Operating expenses | 307 | 322 | 655 | 665 |
Financing Receivable, Credit Loss, Expense (Reversal) | (56) | (166) | (120) | (206) |
Insurance expenses | 9 | 4 | 2 | 9 |
Total expenses | 260 | 160 | 537 | 468 |
Other Income / Loss | 21 | 13 | (148) | (62) |
Income before income taxes | 903 | 1,623 | 1,657 | 2,585 |
Provision for income taxes | 99 | (28) | 184 | 89 |
Net income | 804 | 1,651 | 1,473 | 2,496 |
Operating Lease, Lease Income | $ 1,166 | $ 1,367 | $ 2,377 | $ 2,747 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net income | $ 804 | $ 1,651 | $ 1,473 | $ 2,496 |
Other comprehensive income/(loss), net of tax | ||||
Comprehensive income / (loss) | 437 | 1,759 | 1,258 | 2,503 |
Parent [Member] | ||||
Other comprehensive income/(loss), net of tax | ||||
Foreign currency translation | (403) | 108 | (446) | 7 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | $ 36 | $ 0 | $ 231 | $ 0 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 6,298 | $ 10,963 |
Marketable securities | 2,186 | 2,173 |
Net Investment in Operating Leases | 23,408 | 25,167 |
Finance receivables, net | 92,219 | 92,350 |
Notes and accounts receivable from affiliated companies | 907 | 703 |
Derivative financial instruments | 748 | 1,065 |
Other assets | 2,484 | 2,524 |
Total assets | 128,250 | 134,945 |
Liabilities | ||
Accounts Payable, Trade | 1,135 | 1,051 |
Affiliated companies | 601 | 425 |
Accounts Payable And Due To Affiliated Entities | 1,736 | 1,476 |
Debt | 109,461 | 117,717 |
Deferred income taxes | 885 | 676 |
Derivative financial instruments | 2,208 | 512 |
Other liabilities and deferred income | 1,987 | 2,166 |
Total liabilities | 116,277 | 122,547 |
Shareholder's Interest [Member] | 5,166 | 5,227 |
SHAREHOLDER’S INTEREST | 0 | 22 |
Shareholder's interest | ||
Accumulated other comprehensive income | (905) | (690) |
Retained earnings | 7,712 | 7,839 |
Stockholders' Equity Attributable to Parent | 11,973 | 12,376 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 11,973 | 12,398 |
Total liabilities and shareholder's interest | 128,250 | 134,945 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
ASSETS | ||
Cash and cash equivalents | 2,284 | 3,407 |
Net Investment in Operating Leases | 10,494 | 7,540 |
Finance receivables, net | 43,162 | 43,001 |
Derivative financial instruments | 199 | 39 |
Liabilities | ||
Debt | 41,072 | 38,274 |
Derivative financial instruments | 0 | 6 |
Retail Installment loans, dealer financing, and other financing [Member] | ||
ASSETS | ||
Finance receivables, net | 85,873 | 85,347 |
Loans and Finance Receivables [Member] | ||
ASSETS | ||
Finance receivables, net | 6,346 | 7,003 |
Property Subject to Operating Lease [Member] | ||
ASSETS | ||
Net Investment in Operating Leases | $ 23,408 | $ 25,167 |
Consolidated Balance Sheet (par
Consolidated Balance Sheet (parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||||||
Financing Receivable, Allowance for Credit Loss | $ (763) | $ (845) | $ (925) | $ (1,061) | $ (1,223) | $ (1,305) |
Consolidated Statement of Share
Consolidated Statement of Shareholder's Interest - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shareholder's Interest [Roll Forward] | ||||||||
Balance at beginning of period | $ 12,376 | $ 12,376 | ||||||
Net income | $ (804) | (669) | $ (1,651) | $ (845) | (1,473) | $ (2,496) | ||
Other Comprehensive Income (Loss), Net of Tax | (367) | 152 | 108 | (101) | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | 12,136 | 12,398 | 15,311 | 15,567 | 12,398 | 15,567 | ||
Distributions declared | (600) | (1,000) | (4,000) | (1,000) | ||||
Stockholders' Equity, Other | (83) | |||||||
Balance at end of period | 11,973 | 11,973 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 11,973 | 12,136 | 13,070 | 15,311 | 11,973 | 13,070 | ||
SHAREHOLDER’S INTEREST | 0 | 0 | $ 22 | |||||
Shareholder's Interest [Member] | ||||||||
Shareholder's Interest [Roll Forward] | ||||||||
Balance at beginning of period | 5,166 | 5,227 | 5,227 | 5,227 | 5,227 | 5,227 | ||
Net income | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | 0 | ||||
Distributions declared | 0 | 0 | 0 | 0 | ||||
Stockholders' Equity, Other | (61) | |||||||
Balance at end of period | 5,166 | 5,166 | 5,227 | 5,227 | 5,166 | 5,227 | ||
Accumulated Other Comprehensive Income/(Loss) (Note11) [Member] | ||||||||
Shareholder's Interest [Roll Forward] | ||||||||
Balance at beginning of period | (538) | (690) | (579) | (478) | (690) | (478) | ||
Net income | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax | (367) | 152 | 108 | (101) | ||||
Distributions declared | 0 | 0 | 0 | 0 | ||||
Stockholders' Equity, Other | 0 | |||||||
Balance at end of period | (905) | (538) | (471) | (579) | (905) | (471) | ||
Retained Earnings [Member] | ||||||||
Shareholder's Interest [Roll Forward] | ||||||||
Balance at beginning of period | 7,508 | 7,839 | 10,663 | 10,818 | 7,839 | 10,818 | ||
Net income | (669) | 1,651 | 845 | |||||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | 0 | ||||
Distributions declared | (600) | (1,000) | (4,000) | (1,000) | ||||
Stockholders' Equity, Other | 0 | |||||||
Balance at end of period | 7,712 | 7,508 | 8,314 | 10,663 | 7,712 | 8,314 | ||
Noncontrolling Interest | ||||||||
Shareholder's Interest [Roll Forward] | ||||||||
Net income | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | 0 | ||||
Distributions declared | 0 | 0 | 0 | 0 | ||||
Stockholders' Equity, Other | (22) | |||||||
SHAREHOLDER’S INTEREST | 0 | 0 | 0 | 0 | 0 | 0 | $ 22 | $ 0 |
Parent [Member] | ||||||||
Shareholder's Interest [Roll Forward] | ||||||||
Balance at beginning of period | 12,136 | 12,376 | 12,376 | |||||
Net income | (804) | (669) | (1,651) | (845) | ||||
Other Comprehensive Income (Loss), Net of Tax | (367) | 152 | 108 | (101) | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | 15,311 | 15,567 | 15,567 | |||||
Distributions declared | (600) | (1,000) | (4,000) | (1,000) | ||||
Stockholders' Equity, Other | (61) | |||||||
Balance at end of period | $ 11,973 | $ 12,136 | $ 11,973 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | $ 13,070 | $ 15,311 | $ 13,070 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | ||
Net Income | $ 1,473 | $ 2,496 |
Financing Receivable, Credit Loss, Expense (Reversal) | (120) | (206) |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||
Depreciation Depletion and Amortizations | 1,395 | 1,116 |
Amortization Of Upfront Interest Supplements | (987) | (1,166) |
Net change in deferred income taxes | 192 | (81) |
Net change in other assets | (521) | 548 |
Net change in other liabilities | 369 | (69) |
All other operating activities | 126 | 76 |
Net Cash Provided by (Used in) Operating Activities | 1,927 | 2,714 |
Cash flows from investing activities | ||
Purchases of finance receivables | (15,513) | (17,194) |
Principal collections of finance receivables | 19,135 | 21,320 |
Purchases of operating lease vehicles | (4,515) | (5,943) |
Proceeds From Liquidations of Operating Lease Vehicles | 5,207 | 5,998 |
Net change in wholesale receivables and other | (4,613) | 10,565 |
Purchases of marketable securities | (2,683) | (5,998) |
Proceeds from sales and maturities of marketable securities | 2,606 | 8,792 |
Settlements of derivatives | 128 | (47) |
All other investing activities | (85) | (39) |
Net Cash Provided by (Used in) Investing Activities | (333) | 17,454 |
Cash flows from financing activities | ||
Proceeds from issuances of long-term debt | 17,924 | 9,388 |
Principal payments on long-term debt | (22,089) | (26,525) |
Change in short-term debt, net | (237) | 1,065 |
Cash distributions to parent | (1,600) | (5,000) |
All other financing activities | (48) | (29) |
Net Cash Provided by (Used in) Financing Activities | (6,050) | (21,101) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (229) | 18 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at January 1 | 11,091 | 14,996 |
Net increase/(decrease) in cash, cash equivalents, and restricted cash | (4,685) | (915) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at March 31 | $ 6,406 | $ 14,081 |
Presentation
Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Presentation | PRESENTATIONPrinciples of ConsolidationThe consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) for interim financial information, and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited financial statements include all adjustments considered necessary for a fair statement of the results of operations and financial condition for interim periods for Ford Motor Credit Company LLC, its consolidated subsidiaries, and its consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Results for interim periods should not be considered indicative of results for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K Report”). We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation. |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES Adoption of New Accounting Standards We adopted the following Accounting Standards Updates (“ASUs”) during 2022, none of which had a material impact to our consolidated financial statements or financial statement disclosures: ASU Effective Date 2021-05 Lessors - Certain Leases with Variable Lease Payments January 1, 2022 2021-08 Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers January 1, 2022 2021-10 Government Assistance: Disclosures by Business Entities about Government Assistance January 1, 2022 Accounting Standards Issued But Not Yet Adopted ASU 2022-02, Financial Instruments - Credit Losses, Troubled Debt Restructurings and Vintage Disclosures. In March 2022, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard that eliminates the troubled debt recognition and measurement guidance. The new standard requires that an entity apply the loan refinancing and restructuring guidance in ASC 310 to all loan modifications and/or receivable modifications. It also enhances disclosure requirements for certain refinancings and restructurings by creditors when a borrower is experiencing financial difficulty and requires disclosure of current-period gross charge-offs by year of origination in the vintage disclosure. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. We are assessing the effect of the new standard on our financial statements and disclosures. The Company considers the applicability and impacts of all ASUs. All other ASUs were assessed and determined to be either not applicable or are not expected to have a material impact on our consolidated financial statements or financial statement disclosures. Provision for Income Taxes For interim tax reporting, we estimate one single effective tax rate for subsidiaries that are subject to tax, which is applied to the year-to-date ordinary income/(loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES | CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES The fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis were as follows (in millions): Fair Value Level December 31, June 30, Cash and cash equivalents United States government 1 $ 711 $ 40 United States government agencies 2 240 — Non-United States government and agencies 2 152 382 Corporate debt 2 940 630 Total marketable securities classified as cash equivalents 2,043 1,052 Cash, time deposits, and money market funds 8,920 5,246 Total cash and cash equivalents $ 10,963 $ 6,298 Marketable securities United States government 1 $ 864 $ 325 United States government agencies 2 75 223 Non-United States government and agencies 2 697 1,184 Corporate debt 2 304 274 Other marketable securities 2 233 180 Total marketable securities $ 2,173 $ 2,186 Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash, as reported in the consolidated statements of cash flows, were as follows (in millions): December 31, June 30, Cash and cash equivalents $ 10,963 $ 6,298 Restricted cash (a) 128 108 Total cash, cash equivalents, and restricted cash $ 11,091 $ 6,406 __________ (a) Restricted cash is included in Other assets on our consolidated balance sheets and is primarily held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of certain contractual agreements. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions. |
Finance Receivables
Finance Receivables | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Financing Receivables | FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES We manage finance receivables as “consumer” and “non-consumer” portfolios. The receivables are generally secured by the vehicles, inventory, or other property being financed. Finance receivables are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses. For all finance receivables, we define “past due” as any payment, including principal and interest, that is at least 31 days past the contractual due date. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) Total Finance Receivables, Net Total finance receivables, net were as follows (in millions): December 31, June 30, Consumer Retail installment contracts, gross $ 69,247 $ 65,219 Finance leases, gross 7,318 6,647 Retail financing, gross 76,565 71,866 Unearned interest supplements from Ford and affiliated companies (3,020) (2,535) Consumer finance receivables 73,545 69,331 Non-Consumer Dealer financing 18,197 21,995 Other financing 1,533 1,656 Non-Consumer finance receivables 19,730 23,651 Total recorded investment $ 93,275 $ 92,982 Recorded investment in finance receivables $ 93,275 $ 92,982 Allowance for credit losses (925) (763) Total finance receivables, net $ 92,350 $ 92,219 Net finance receivables subject to fair value (a) $ 85,347 $ 85,873 Fair value (b) 86,199 84,220 __________ (a) Net finance receivables subject to fair value exclude finance leases. (b) The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy. Finance leases are comprised of sales-type and direct financing leases. Financing revenue from finance leases for the second quarter of 2021 and 2022 was $88 million and $73 million, respectively, and for the first half of 2021 and 2022 was $178 million and $150 million, respectively, and is included in Retail financing on our consolidated income statements. At December 31, 2021 and June 30, 2022, accrued interest was $125 million and $119 million, respectively, which we report in Other assets on our consolidated balance sheets. Included in the recorded investment in finance receivables were consumer and non-consumer receivables that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information. Credit Quality Consumer Portfolio. Credit quality ratings for consumer receivables are based on our aging analysis. Consumer receivables credit quality ratings are as follows: • Pass – current to 60 days past due; • Special Mention – 61 to 120 days past due and in intensified collection status; and • Substandard – greater than 120 days past due and for which the uncollectible portion of the receivables has already been charged off, as measured using the fair value of collateral less costs to sell. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) The credit quality analysis of consumer receivables at December 31, 2021 was as follows (in millions): Amortized Cost Basis by Origination Year Prior to 2017 2017 2018 2019 2020 2021 Total Percent Consumer 31-60 days past due $ 39 $ 52 $ 98 $ 120 $ 186 $ 91 $ 586 0.8 % 61-120 days past due 7 10 20 29 40 21 127 0.2 Greater than 120 days past due 10 6 6 9 11 1 43 — Total past due 56 68 124 158 237 113 756 1.0 Current 812 2,608 6,568 12,717 22,730 27,354 72,789 99.0 Total $ 868 $ 2,676 $ 6,692 $ 12,875 $ 22,967 $ 27,467 $ 73,545 100.0 % The credit quality analysis of consumer receivables at June 30, 2022 was as follows (in millions): Amortized Cost Basis by Origination Year Prior to 2018 2018 2019 2020 2021 2022 Total Percent Consumer 31-60 days past due $ 57 $ 68 $ 91 $ 170 $ 113 $ 30 $ 529 0.8 % 61-120 days past due 11 15 23 36 31 7 123 0.2 Greater than 120 days past due 13 5 8 7 6 1 40 — Total past due 81 88 122 213 150 38 692 1.0 Current 1,838 4,249 8,916 17,720 22,552 13,364 68,639 99.0 Total $ 1,919 $ 4,337 $ 9,038 $ 17,933 $ 22,702 $ 13,402 $ 69,331 100.0 % Non-Consumer Portfolio. The credit quality of dealer financing receivables is evaluated based on our internal dealer risk rating analysis. We use a proprietary model to assign each dealer a risk rating. This model uses historical dealer performance data to identify key factors about a dealer that we consider most significant in predicting a dealer’s ability to meet its financial obligations. We also consider numerous other financial and qualitative factors of the dealer’s operations, including capitalization and leverage, liquidity and cash flow, profitability, and credit history with ourselves and other creditors. Dealers are assigned to one of four groups according to risk ratings as follows: • Group I – strong to superior financial metrics; • Group II – fair to favorable financial metrics; • Group III – marginal to weak financial metrics; and • Group IV – poor financial metrics, including dealers classified as uncollectible. The credit quality analysis of dealer financing receivables at December 31, 2021 was as follows (in millions): Amortized Cost Basis by Origination Year Dealer Loans Prior to 2017 2017 2018 2019 2020 2021 Total Wholesale Loans Total Percent Group I $ 391 $ 68 $ 151 $ 45 $ 109 $ 345 $ 1,109 $ 13,670 $ 14,779 81.2 % Group II 11 7 26 2 4 54 104 2,689 2,793 15.3 Group III 8 — 1 — 1 20 30 529 559 3.1 Group IV — — 4 — — 6 10 56 66 0.4 Total (a) $ 410 $ 75 $ 182 $ 47 $ 114 $ 425 $ 1,253 $ 16,944 $ 18,197 100.0 % __________ (a) Total past due dealer financing receivables at December 31, 2021 were $62 million. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) The credit quality analysis of dealer financing receivables at June 30, 2022 was as follows (in millions): Amortized Cost Basis by Origination Year Dealer Loans Prior to 2018 2018 2019 2020 2021 2022 Total Wholesale Loans Total Percent Group I $ 452 $ 155 $ 40 $ 65 $ 225 $ 144 $ 1,081 $ 18,089 $ 19,170 87.2 % Group II 7 22 1 5 10 43 88 2,353 2,441 11.1 Group III — — — — 4 10 14 331 345 1.6 Group IV — 2 — 1 2 2 7 32 39 0.1 Total (a) $ 459 $ 179 $ 41 $ 71 $ 241 $ 199 $ 1,190 $ 20,805 $ 21,995 100.0 % __________ (a) Total past due dealer financing receivables at June 30, 2022 were $8 million. Non-Accrual of Revenue. The accrual of financing revenue is discontinued at the time a receivable is determined to be uncollectible or when it is 90 days past due. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance. Troubled Debt Restructuring (“TDR”). A restructuring of debt constitutes a TDR if we grant a concession to a debtor for economic or legal reasons related to the debtor’s financial difficulties that we otherwise would not consider. Consumer and non-consumer receivables that have a modified interest rate below market rate or that were modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code, except non-consumer receivables that are current with minimal risk of loss, are considered to be TDRs. We do not grant concessions on the principal balance of the receivables. If a receivable is modified in a reorganization proceeding, all payment requirements of the reorganization plan need to be met before remaining balances are forgiven. Allowance for Credit Losses The allowance for credit losses represents our estimate of the lifetime expected credit losses inherent in finance receivables as of the balance sheet date. The adequacy of the allowance for credit losses is assessed quarterly. Adjustments to the allowance for credit losses are made by recording charges to the Provision for/(benefit from) credit losses on our consolidated income statements. The uncollectible portion of a finance receivable is charged to the allowance for credit losses at the earlier of when an account is deemed to be uncollectible or when an account is 120 days delinquent, taking into consideration the financial condition of the customer or borrower, the value of the collateral, recourse to guarantors, and other factors. Charge-offs on finance receivables include uncollected amounts related to principal, interest, late fees, and other allowable charges. Recoveries on finance receivables previously charged off as uncollectible are credited to the allowance for credit losses. In the event we repossess the collateral, the receivable is charged off and the collateral is recorded at its estimated fair value less costs to sell and reported in Other assets on our consolidated balance sheets. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) An analysis of the allowance for credit losses related to finance receivables for the periods ended June 30 was as follows (in millions): Second Quarter 2021 First Half 2021 Consumer Non-Consumer Total Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 1,170 $ 53 $ 1,223 $ 1,245 $ 60 $ 1,305 Charge-offs (55) (3) (58) (152) (3) (155) Recoveries 55 2 57 108 5 113 Provision for/(benefit from) credit losses (154) (12) (166) (184) (22) (206) Other (a) 6 (1) 5 5 (1) 4 Ending balance $ 1,022 $ 39 $ 1,061 $ 1,022 $ 39 $ 1,061 Second Quarter 2022 First Half 2022 Consumer Non-Consumer Total Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 826 $ 19 $ 845 $ 903 $ 22 $ 925 Charge-offs (61) (1) (62) (123) (1) (124) Recoveries 44 1 45 87 2 89 Provision for/(benefit from) credit losses (48) (8) (56) (107) (13) (120) Other (a) (7) (2) (9) (6) (1) (7) Ending balance $ 754 $ 9 $ 763 $ 754 $ 9 $ 763 __________ (a) Primarily represents amounts related to translation adjustments. During the second quarter and first half of 2022, the allowance for credit losses decreased $82 million and $162 million, respectively, primarily due to our current expectation that COVID-related losses have been avoided. Although net charge-offs remained low in the second quarter and first half of 2022, due in part to high vehicle auction values, the impact of rising inflation, high energy prices, and higher interest rates on future credit losses remains uncertain. We will continue to monitor economic trends and conditions and portfolio performance and will adjust the reserve accordingly. |
Net Investments in Operating Le
Net Investments in Operating Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases, Operating [Abstract] | |
NET INVESTMENT IN OPERATING LEASES | NET INVESTMENT IN OPERATING LEASES Net investment in operating leases consists primarily of lease contracts for vehicles with individuals, daily rental companies, and fleet customers with terms of 60 months or less. Included in Net investment in operating leases are net investment in operating leases that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information. Net investment in operating leases was as follows (in millions): December 31, June 30, Vehicles, at cost (a) $ 29,982 $ 27,883 Accumulated depreciation (4,815) (4,475) Net investment in operating leases $ 25,167 $ 23,408 __________ |
Transfers of Receivables
Transfers of Receivables | 6 Months Ended |
Jun. 30, 2022 | |
Transfers and Servicing [Abstract] | |
TRANSFERS OF RECEIVABLES | TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES We securitize finance receivables and net investment in operating leases through a variety of programs using amortizing, variable funding, and revolving structures. We also sell finance receivables, or pledge them as collateral in certain transactions outside of the United States, in other types of structured financing transactions. Due to the similarities between securitization and structured financing, we refer to structured financings as securitization transactions. Our securitization programs are targeted to institutional investors in both public and private transactions in capital markets primarily in the United States, Canada, the United Kingdom, Germany, and China. The finance receivables sold for legal purposes and net investment in operating leases included in securitization transactions are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. They are not available to pay our other obligations or the claims of our other creditors. The debt is the obligation of our consolidated securitization entities and not the obligation of Ford Credit or our other subsidiaries. We use special purpose entities (“SPEs”) to issue asset-backed securities in our securitization transactions. We have deemed most of these SPEs to be VIEs of which we are the primary beneficiary, and therefore, are consolidated. The SPEs are established for the sole purpose of financing the securitized financial assets. The SPEs are generally financed through the issuance of notes or commercial paper into the public or private markets or directly with conduits. We continue to recognize our financial assets related to our sales of receivables when the financial assets are sold to a consolidated VIE or a consolidated voting interest entity. We derecognize our financial assets when the financial assets are sold to a non-consolidated entity and we do not maintain control over the financial assets. We have the power to direct significant activities of our SPEs when we have the ability to exercise discretion in the servicing of financial assets, issue additional debt, exercise a unilateral call option, add assets to revolving structures, or control investment decisions. We generally retain a portion of the economic interests in the asset-backed securitization transactions, which could be retained in the form of a portion of the senior interests, the subordinated interests, cash reserve accounts, residual interests, and servicing rights. The transfers of assets in our securitization transactions do not qualify for accounting sale treatment. From time to time in Europe, we may retain all of the economic interests in some of our public asset-backed securitization transactions. The most senior retained notes are held as, or with the intent to become, eligible collateral to access central bank liquidity facilities in Europe. In addition, we regularly pledge receivables that are not securitized as eligible collateral for these facilities. In accordance with applicable regulatory guidance, the underlying assets in these transactions are considered unencumbered if they are not being used as security for a central bank funding. At December 31, 2021 and June 30, 2022, the value of unencumbered assets related to these transactions was $0.9 billion and $0.5 billion, respectively. We have no obligation to repurchase or replace any securitized asset that subsequently becomes delinquent in payment or otherwise is in default, except when representations and warranties about the eligibility of the securitized assets are breached, or when certain changes are made to the underlying asset contracts. Securitization investors have no recourse to us or our other assets and have no right to require us to repurchase the investments. We generally have no obligation to provide liquidity or contribute cash or additional assets to the VIEs and do not guarantee any asset-backed securities. We may be required to support the performance of certain securitization transactions, however, by increasing cash reserves. Certain of our securitization entities may enter into derivative transactions to mitigate interest rate exposure, primarily resulting from fixed-rate assets securing floating-rate debt. In certain instances, the counterparty enters into offsetting derivative transactions with us to mitigate its interest rate risk resulting from derivatives with our securitization entities. These related derivatives are not the obligations of our securitization entities. See Note 7 for additional information regarding the accounting for derivatives. NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued) Most of these securitization transactions utilize VIEs. The following tables show the assets and debt related to our securitization transactions that were included in our financial statements (in billions): December 31, 2021 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt Before Allowance Allowance for After Allowance VIE (b) Retail financing $ 1.7 $ 31.6 $ 0.3 $ 31.3 $ 24.5 Wholesale financing 1.3 11.7 — 11.7 8.7 Finance receivables 3.0 43.3 0.3 43.0 33.2 Net investment in operating leases 0.4 7.5 — 7.5 5.1 Total VIE $ 3.4 $ 50.8 $ 0.3 $ 50.5 $ 38.3 Non-VIE Retail financing $ 0.4 $ 7.4 $ 0.1 $ 7.3 $ 6.9 Wholesale financing — 0.3 — 0.3 0.2 Finance receivables 0.4 7.7 0.1 7.6 7.1 Net investment in operating leases — — — — — Total Non-VIE $ 0.4 $ 7.7 $ 0.1 $ 7.6 $ 7.1 Total securitization transactions Retail financing $ 2.1 $ 39.0 $ 0.4 $ 38.6 $ 31.4 Wholesale financing 1.3 12.0 — 12.0 8.9 Finance receivables 3.4 51.0 0.4 50.6 40.3 Net investment in operating leases 0.4 7.5 — 7.5 5.1 Total securitization transactions $ 3.8 $ 58.5 $ 0.4 $ 58.1 $ 45.4 __________ (a) Unearned interest supplements and residual support are excluded from securitization transactions. (b) Includes assets to be used to settle the liabilities of the consolidated VIEs. (c) Includes unamortized discount and debt issuance costs. NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued) June 30, 2022 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt Before Allowance Allowance for After Allowance VIE (b) Retail financing $ 1.6 $ 30.1 $ 0.2 $ 29.9 $ 25.4 Wholesale financing 0.1 13.3 — 13.3 8.6 Finance receivables 1.7 43.4 0.2 43.2 34.0 Net investment in operating leases 0.6 10.5 — 10.5 7.1 Total VIE $ 2.3 $ 53.9 $ 0.2 $ 53.7 $ 41.1 Non-VIE Retail financing $ 0.3 $ 6.4 $ 0.1 $ 6.3 $ 5.8 Wholesale financing — 0.3 — 0.3 0.2 Finance receivables 0.3 6.7 0.1 6.6 6.0 Net investment in operating leases — — — — — Total Non-VIE $ 0.3 $ 6.7 $ 0.1 $ 6.6 $ 6.0 Total securitization transactions Retail financing $ 1.9 $ 36.5 $ 0.3 $ 36.2 $ 31.2 Wholesale financing 0.1 13.6 — 13.6 8.8 Finance receivables 2.0 50.1 0.3 49.8 40.0 Net investment in operating leases 0.6 10.5 — 10.5 7.1 Total securitization transactions $ 2.6 $ 60.6 $ 0.3 $ 60.3 $ 47.1 __________ (a) Unearned interest supplements and residual support are excluded from securitization transactions. (b) Includes assets to be used to settle the liabilities of the consolidated VIEs. (c) Includes unamortized discount and debt issuance cost. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES In the normal course of business, our operations are exposed to global market risks, including the effect of changes in interest rates and foreign currency exchange rates. To manage these risks, we enter into highly effective derivative contracts. We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting. Income Effect of Derivative Financial Instruments The gains/(losses), by hedge designation, reported in income for the periods ended June 30 were as follows (in millions): Second Quarter First Half 2021 2022 2021 2022 Fair value hedges Interest rate contracts Net interest settlements and accruals on hedging instruments $ 100 $ 25 $ 201 $ 101 Fair value changes on hedging instruments 103 (336) (538) (1,322) Fair value changes on hedged debt (87) 385 503 1,376 Cross-currency interest rate swap contracts Net interest settlements and accruals on hedging instruments (1) (6) (4) (9) Fair value changes on hedging instruments 11 (61) (39) (98) Fair value changes on hedged debt (11) 65 33 106 Derivatives not designated as hedging instruments Interest rate contracts 6 89 (25) 212 Foreign currency exchange contracts (a) (44) 27 8 25 Cross-currency interest rate swap contracts 49 (443) (196) (670) Total $ 126 $ (255) $ (57) $ (279) __________ (a) Reflects forward contracts between us and an affiliated company. NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued) Balance Sheet Effect of Derivative Financial Instruments Derivative assets and liabilities are reported on the balance sheets at fair value and are presented on a gross basis. The notional amounts of the derivative instruments do not necessarily represent amounts exchanged by the parties and are not a direct measure of our financial exposure. We also enter into master agreements with counterparties that may allow for netting of exposures in the event of default or breach of the counterparty agreement. Collateral represents cash received or paid under reciprocal arrangements that we have entered into with our derivative counterparties, which we do not use to offset our derivative assets and liabilities. The fair value of our derivative instruments and the associated notional amounts were as follows (in millions): December 31, 2021 June 30, 2022 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Fair value hedges Interest rate contracts $ 23,893 $ 544 $ 274 $ 19,711 $ — $ 1,100 Cross-currency interest rate swap contracts 885 — 49 884 — 135 Derivatives not designated as hedging instruments Interest rate contracts 50,060 338 126 44,788 651 259 Foreign currency exchange contracts 4,407 66 2 4,454 66 24 Cross-currency interest rate swap contracts 6,533 117 61 6,633 31 690 Total derivative financial instruments, gross (a) (b) $ 85,778 $ 1,065 $ 512 $ 76,470 $ 748 $ 2,208 __________ (a) At December 31, 2021 and June 30, 2022, we held collateral of $26 million and $147 million, respectively, and we posted collateral of $71 million and $115 million, respectively. |
Other Assets and Other Liabilit
Other Assets and Other Liabilities and Deferred Income | 6 Months Ended |
Jun. 30, 2022 | |
Other Assets and Other Liabilities and Deferred Income [Abstract] | |
OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED INCOME | OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED REVENUE Other assets and other liabilities and deferred revenue consist of various balance sheet items that are combined for financial statement presentation due to their respective materiality compared with other individual asset and liability items. Other assets were as follows (in millions): December 31, June 30, Prepaid reinsurance premiums and other reinsurance recoverables $ 743 $ 761 Accrued interest and other non-finance receivables 584 563 Property and equipment, net of accumulated depreciation (a) 224 220 Deferred charges - income taxes 190 216 Collateral held for resale, at net realizable value 258 186 Investment in non-consolidated affiliates 133 152 Restricted cash 128 108 Operating lease assets 76 67 Other 188 211 Total other assets $ 2,524 $ 2,484 __________ (a) Accumulated depreciation was $397 million and $404 million at December 31, 2021 and June 30, 2022, respectively. Other liabilities and deferred revenue were as follows (in millions): December 31, June 30, Unearned insurance premiums and fees $ 857 $ 874 Interest payable 667 544 Income tax and related interest (a) 229 262 Operating lease liabilities 78 69 Deferred revenue 62 24 Other 273 214 Total other liabilities and deferred revenue $ 2,166 $ 1,987 __________ (a) Includes income tax and interest payable to affiliated companies of $101 million and $155 million at December 31, 2021 and June 30, 2022, respectively. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | DEBT Debt outstanding and interest rates were as follows (in millions): Interest Rates Debt Average Contractual Average Effective December 31, June 30, 2021 2022 2021 2022 Short-term debt Unsecured debt Floating rate demand notes $ 9,400 $ 9,386 Other short-term debt 4,701 3,781 Asset-backed debt (a) 709 762 Total short-term debt 14,810 13,929 1.2 % 1.8 % 1.3 % 1.8 % Long-term debt Unsecured debt Notes payable within one year 13,660 10,471 Notes payable after one year 44,337 39,999 Asset-backed debt (a) Notes payable within one year 18,049 17,884 Notes payable after one year 26,654 28,472 Unamortized (discount)/premium 29 25 Unamortized issuance costs (212) (210) Fair value adjustments (b) 390 (1,109) Total long-term debt 102,907 95,532 2.6 % 2.7 % 2.6 % 2.7 % Total debt $ 117,717 $ 109,461 2.4 % 2.6 % 2.4 % 2.6 % Fair value of debt (c) $ 120,204 $ 106,884 __________ (a) Asset-backed debt issued in securitizations is the obligation of the consolidated securitization entity that issued the debt and is payable only out of collections on the underlying securitized assets and related enhancements. This asset-backed debt is not the obligation of Ford Credit or our other subsidiaries. (b) These adjustments are related to hedging activity and include discontinued hedging relationship adjustments of $257 million and $179 million at December 31, 2021 and June 30, 2022, respectively. The carrying value of hedged debt was $37.5 billion and $33.4 billion at December 31, 2021 and June 30, 2022, respectively. (c) At December 31, 2021 and June 30, 2022, the fair value of debt includes $14.1 billion and $13.2 billion of short-term debt, respectively, carried at cost, which approximates fair value. All other debt is categorized within Level 2 of the fair value hierarchy. 2022 Debt Extinguishment Pursuant to our June 2022 cash tender offer, we repurchased approximately $3 billion principal amount of our public unsecured debt securities for an aggregate cost of approximately $3 billion (including transaction costs and accrued and unpaid interest payments for such tendered securities). As a result of these transactions, we recorded a pre-tax gain of $16.6 million (net of unamortized discounts, premiums, fees, and fair value adjustments) in Other income/(loss), net in the second quarter of 2022. |
OTHER INCOME, NET | OTHER INCOME/(LOSS) Other income/(loss) consists of various line items that are combined on the consolidated income statements due to their respective materiality compared with other individual income and expense items. The amounts included in Other income/(loss), net for the periods ended June 30 were as follows (in millions): Second Quarter First Half 2021 2022 2021 2022 Gains/(Losses) on derivatives $ 24 $ (383) $ (241) $ (506) Currency revaluation gains/(losses) (30) 417 153 569 Interest and investment income (a) 15 1 13 (4) Gains/(Losses) on changes in investments in affiliates (b) — (36) 1 (231) Other 4 22 12 24 Total other income/(loss), net $ 13 $ 21 $ (62) $ (148) __________ (a) Includes a $20 million unrealized gain for an observable price event on a non-consolidated investment in the first quarter of 2022. (b) Includes losses related to our restructuring in South America described in Note 10. |
Restructuring and Related Activ
Restructuring and Related Activities | 3 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | RESTRUCTURING ACTIONS In June 2021, we announced that our subsidiaries in Brazil and Argentina would cease originating receivables and wind down operations. During the fourth quarter of 2021, we completed the sale of our wholesale and dealer receivables portfolio in Brazil and ceased originations of wholesale and dealer receivables in Argentina. In the second quarter and first half of 2022, we reclassified accumulated foreign currency translation losses of $36 million and $155 million, respectively, to Other income/(loss), net upon the liquidation of three of our investments in Brazil. In December 2021, we received a capital contribution from a subsidiary of Ford in exchange for a minority interest share in one of our Argentina-based subsidiaries. As a result, we recorded $22 million in Shareholder’s interest attributable to noncontrolling interests on our consolidated balance sheets. During the first quarter of 2022, we reacquired Ford’s minority interest share and, in exchange, transferred assets associated with an Argentina-based subsidiary to Ford. In addition, during the first quarter of 2022, we sold our shares in a second Argentina-based subsidiary to Ford. The difference between the carrying value of the net assets transferred and sold to Ford and the consideration received from Ford was $61 million, reported as a reduction to Shareholder’s interest . As a result of the transfer and sale, Ford Credit reclassified $75 million of accumulated foreign currency translation losses to net income, included in Other income/(loss), net. Accumulated foreign currency translation losses associated with our remaining investments in Brazil and Argentina included in Accumulated other comprehensive income/(loss) at June 30, 2022 were $223 million. We expect to reclassify these losses to income upon substantially complete liquidation of our investments, which may occur over multiple reporting periods. Although the timing for the completion of these actions is uncertain, we expect the majority of losses to be recognized in 2024 or later. |
Other Income, Net
Other Income, Net | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | OTHER INCOME/(LOSS) Other income/(loss) consists of various line items that are combined on the consolidated income statements due to their respective materiality compared with other individual income and expense items. The amounts included in Other income/(loss), net for the periods ended June 30 were as follows (in millions): Second Quarter First Half 2021 2022 2021 2022 Gains/(Losses) on derivatives $ 24 $ (383) $ (241) $ (506) Currency revaluation gains/(losses) (30) 417 153 569 Interest and investment income (a) 15 1 13 (4) Gains/(Losses) on changes in investments in affiliates (b) — (36) 1 (231) Other 4 22 12 24 Total other income/(loss), net $ 13 $ 21 $ (62) $ (148) __________ (a) Includes a $20 million unrealized gain for an observable price event on a non-consolidated investment in the first quarter of 2022. (b) Includes losses related to our restructuring in South America described in Note 10. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We conduct our financing operations directly and indirectly through our subsidiaries and affiliates. We offer substantially similar products and services throughout many different regions, subject to local legal restrictions and market conditions. In our consolidated financial statements, we have three reportable segments based on geographic regions: the United States and Canada, Europe, and All Other. Our All Other segment includes China, India, Mexico, Brazil, Argentina, and our joint venture in South Africa. Items excluded in assessing segment performance because they are managed at the corporate level, including market valuation adjustments to derivatives and exchange-rate fluctuations on foreign currency-denominated transactions, are reflected in Unallocated Other. Effective for the first quarter of 2022, we have eliminated the use of non-GAAP measures and now present receivables on a net basis. Key financial information for our business segments for the periods ended or at June 30 was as follows (in millions): United States and Canada Europe All Other Total Unallocated Other (a) Total Second Quarter 2021 Total revenue $ 2,295 $ 238 $ 108 $ 2,641 $ — $ 2,641 Income before income taxes 1,466 81 22 1,569 54 1,623 Depreciation on vehicles subject to operating leases 184 7 — 191 — 191 Interest expense 600 72 51 723 (43) 680 Provision for credit losses (165) (6) 5 (166) — (166) Second Quarter 2022 Total revenue $ 2,029 $ 221 $ 98 $ 2,348 $ — $ 2,348 Income before income taxes 698 97 (17) 778 125 903 Depreciation on vehicles subject to operating leases 559 (10) — 549 — 549 Interest expense 632 57 53 742 (85) 657 Provision for credit losses (57) (2) 3 (56) — (56) First Half 2021 Total revenue $ 4,679 $ 479 $ 200 $ 5,358 $ — $ 5,358 Income before income taxes 2,462 147 7 2,616 (31) 2,585 Depreciation on vehicles subject to operating leases 746 13 — 759 — 759 Interest expense 1,238 152 107 1,497 (13) 1,484 Provision for credit losses (217) (7) 18 (206) — (206) Net finance receivables and net investment in operating leases (a) (b) 93,783 19,305 4,672 117,760 — 117,760 Total assets 111,149 22,226 5,436 138,811 — 138,811 First Half 2022 Total revenue $ 4,058 $ 416 $ 200 $ 4,674 $ — $ 4,674 Income before income taxes 1,481 166 (191) 1,456 201 1,657 Depreciation on vehicles subject to operating leases 1,085 (21) — 1,064 — 1,064 Interest expense 1,174 112 111 1,397 (129) 1,268 Provision for credit losses (124) (5) 9 (120) — (120) Net finance receivables and net investment in operating leases (a) (b) 94,291 16,212 5,124 115,627 — 115,627 Total assets 103,289 19,158 5,803 128,250 — 128,250 __________ (a) Excludes held-for-sale finance receivables. (b) Prior periods have been restated to display net receivables in lieu of the non-GAAP measure of managed receivables. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments and contingencies primarily consist of guarantees and indemnifications as well as litigation and claims. Guarantees and Indemnifications Guarantees and indemnifications are recorded at fair value at their inception. For financial guarantees, subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. The probability of default is applied to the expected exposure at the time of default less recoveries to determine the expected payments. Factors to consider when estimating the probability of default include the obligor’s financial position, forecasted economic environment, historical loss rates, and other communications. For non-financial guarantees, we regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the amount of probable payment is recorded. The maximum potential payments under these guarantees and limited indemnities totaled $102 million and $92 million at December 31, 2021 and June 30, 2022, respectively. Of these values, $19 million and $17 million at December 31, 2021 and June 30, 2022, respectively, were counter-guaranteed by Ford to us. There were no recorded liabilities related to guarantees and limited indemnities at December 31, 2021 or June 30, 2022. In some cases, we have guaranteed debt and other financial obligations of outside third parties and unconsolidated affiliates, including Ford. Expiration dates vary, and guarantees will terminate on payment and/or cancellation of the underlying obligation. A payment by us would be triggered by the failure of the third party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from a third party amounts paid by us under the guarantee. However, our ability to enforce these rights is sometimes stayed until the guaranteed party is paid in full and may be limited in the event of insolvency of the third party or other circumstances. In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction. These indemnifications might include and are not limited to claims relating to any of the following: environmental, tax, and shareholder matters; intellectual property rights; governmental regulations and employment-related matters; dealer and other commercial contractual relationships; and financial matters, such as securitizations. Performance under these indemnities generally would be triggered by a breach of the contract brought by a counterparty or a third-party claim. While some of these indemnifications are limited in nature, many of them do not limit potential payment. Therefore, we are unable to estimate a maximum amount of future payments that could result from claims made under these unlimited indemnities. Litigation and Claims Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include, but are not limited to, matters arising out of governmental regulations; tax matters; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer and other contractual relationships; personal injury matters; investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages in very large amounts, sanctions, assessments, or other relief, which, if granted, would require very large expenditures. The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome. We accrue for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time. NOTE 13. COMMITMENTS AND CONTINGENCIES (Continued) For nearly all matters where our historical experience with similar matters is of limited value (i.e., “non-pattern matters”), we evaluate the matters primarily based on the individual facts and circumstances. For non-pattern matters, we evaluate whether there is a reasonable possibility of a material loss in excess of any accrual that can be estimated. It is reasonably possible that some of the matters for which accruals have not been established could be decided unfavorably and could require us to pay damages or make other expenditures. We do not reasonably expect, based on our analysis, that such matters would have a material effect on future financial statements for a particular year, although such an outcome is possible. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Basis of Accounting and Intercompany Transactions [Abstract] | |
Basis of Accounting and Intercompany Transactions [Policy Text Block] | The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) for interim financial information, and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited financial statements include all adjustments considered necessary for a fair statement of the results of operations and financial condition for interim periods for Ford Motor Credit Company LLC, its consolidated subsidiaries, and its consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Results for interim periods should not be considered indicative of results for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K Report”). We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation. |
Loans and Leases Receivable Disclosure [Abstract] | |
Financing Receivable [Policy Text Block] | Non-Accrual of Revenue. The accrual of financing revenue is discontinued at the time a receivable is determined to be uncollectible or when it is 90 days past due. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance. |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Policy [Policy Text Block] | We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting. |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Leases [Policy Text Block] | Net investment in operating leases consists primarily of lease contracts for vehicles with individuals, daily rental companies, and fleet customers with terms of 60 months or less. Included in Net investment in operating leases are net investment in operating leases that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information. |
Guarantees and Indemnifications Policies [Policy Text Block] | Guarantees and indemnifications are recorded at fair value at their inception. For financial guarantees, subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. The probability of default is applied to the expected exposure at the time of default less recoveries to determine the expected payments. Factors to consider when estimating the probability of default include the obligor’s financial position, forecasted economic environment, historical loss rates, and other communications. For non-financial guarantees, we regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the amount of probable payment is recorded. |
Cash, Cash Equivalents, and Mar
Cash, Cash Equivalents, and Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis were as follows (in millions): Fair Value Level December 31, June 30, Cash and cash equivalents United States government 1 $ 711 $ 40 United States government agencies 2 240 — Non-United States government and agencies 2 152 382 Corporate debt 2 940 630 Total marketable securities classified as cash equivalents 2,043 1,052 Cash, time deposits, and money market funds 8,920 5,246 Total cash and cash equivalents $ 10,963 $ 6,298 Marketable securities United States government 1 $ 864 $ 325 United States government agencies 2 75 223 Non-United States government and agencies 2 697 1,184 Corporate debt 2 304 274 Other marketable securities 2 233 180 Total marketable securities $ 2,173 $ 2,186 |
Schedule of cash, cash equivalents and restricted cash [Table Text Block] | Cash, cash equivalents, and restricted cash, as reported in the consolidated statements of cash flows, were as follows (in millions): December 31, June 30, Cash and cash equivalents $ 10,963 $ 6,298 Restricted cash (a) 128 108 Total cash, cash equivalents, and restricted cash $ 11,091 $ 6,406 __________ (a) Restricted cash is included in Other assets on our consolidated balance sheets and is primarily held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of certain contractual agreements. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions. |
Finance Receivables (Tables)
Finance Receivables (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Financing Receivable, Allowance for Credit Loss | An analysis of the allowance for credit losses related to finance receivables for the periods ended June 30 was as follows (in millions): Second Quarter 2021 First Half 2021 Consumer Non-Consumer Total Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 1,170 $ 53 $ 1,223 $ 1,245 $ 60 $ 1,305 Charge-offs (55) (3) (58) (152) (3) (155) Recoveries 55 2 57 108 5 113 Provision for/(benefit from) credit losses (154) (12) (166) (184) (22) (206) Other (a) 6 (1) 5 5 (1) 4 Ending balance $ 1,022 $ 39 $ 1,061 $ 1,022 $ 39 $ 1,061 Second Quarter 2022 First Half 2022 Consumer Non-Consumer Total Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 826 $ 19 $ 845 $ 903 $ 22 $ 925 Charge-offs (61) (1) (62) (123) (1) (124) Recoveries 44 1 45 87 2 89 Provision for/(benefit from) credit losses (48) (8) (56) (107) (13) (120) Other (a) (7) (2) (9) (6) (1) (7) Ending balance $ 754 $ 9 $ 763 $ 754 $ 9 $ 763 __________ |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Total finance receivables, net were as follows (in millions): December 31, June 30, Consumer Retail installment contracts, gross $ 69,247 $ 65,219 Finance leases, gross 7,318 6,647 Retail financing, gross 76,565 71,866 Unearned interest supplements from Ford and affiliated companies (3,020) (2,535) Consumer finance receivables 73,545 69,331 Non-Consumer Dealer financing 18,197 21,995 Other financing 1,533 1,656 Non-Consumer finance receivables 19,730 23,651 Total recorded investment $ 93,275 $ 92,982 Recorded investment in finance receivables $ 93,275 $ 92,982 Allowance for credit losses (925) (763) Total finance receivables, net $ 92,350 $ 92,219 Net finance receivables subject to fair value (a) $ 85,347 $ 85,873 Fair value (b) 86,199 84,220 __________ (a) Net finance receivables subject to fair value exclude finance leases. |
Financing Receivable, Past Due [Table Text Block] | The credit quality analysis of consumer receivables at December 31, 2021 was as follows (in millions): Amortized Cost Basis by Origination Year Prior to 2017 2017 2018 2019 2020 2021 Total Percent Consumer 31-60 days past due $ 39 $ 52 $ 98 $ 120 $ 186 $ 91 $ 586 0.8 % 61-120 days past due 7 10 20 29 40 21 127 0.2 Greater than 120 days past due 10 6 6 9 11 1 43 — Total past due 56 68 124 158 237 113 756 1.0 Current 812 2,608 6,568 12,717 22,730 27,354 72,789 99.0 Total $ 868 $ 2,676 $ 6,692 $ 12,875 $ 22,967 $ 27,467 $ 73,545 100.0 % The credit quality analysis of consumer receivables at June 30, 2022 was as follows (in millions): Amortized Cost Basis by Origination Year Prior to 2018 2018 2019 2020 2021 2022 Total Percent Consumer 31-60 days past due $ 57 $ 68 $ 91 $ 170 $ 113 $ 30 $ 529 0.8 % 61-120 days past due 11 15 23 36 31 7 123 0.2 Greater than 120 days past due 13 5 8 7 6 1 40 — Total past due 81 88 122 213 150 38 692 1.0 Current 1,838 4,249 8,916 17,720 22,552 13,364 68,639 99.0 Total $ 1,919 $ 4,337 $ 9,038 $ 17,933 $ 22,702 $ 13,402 $ 69,331 100.0 % |
Financing Receivables Credit Quality Indicators [Table Text Block] | The credit quality analysis of dealer financing receivables at December 31, 2021 was as follows (in millions): Amortized Cost Basis by Origination Year Dealer Loans Prior to 2017 2017 2018 2019 2020 2021 Total Wholesale Loans Total Percent Group I $ 391 $ 68 $ 151 $ 45 $ 109 $ 345 $ 1,109 $ 13,670 $ 14,779 81.2 % Group II 11 7 26 2 4 54 104 2,689 2,793 15.3 Group III 8 — 1 — 1 20 30 529 559 3.1 Group IV — — 4 — — 6 10 56 66 0.4 Total (a) $ 410 $ 75 $ 182 $ 47 $ 114 $ 425 $ 1,253 $ 16,944 $ 18,197 100.0 % __________ (a) Total past due dealer financing receivables at December 31, 2021 were $62 million. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) The credit quality analysis of dealer financing receivables at June 30, 2022 was as follows (in millions): Amortized Cost Basis by Origination Year Dealer Loans Prior to 2018 2018 2019 2020 2021 2022 Total Wholesale Loans Total Percent Group I $ 452 $ 155 $ 40 $ 65 $ 225 $ 144 $ 1,081 $ 18,089 $ 19,170 87.2 % Group II 7 22 1 5 10 43 88 2,353 2,441 11.1 Group III — — — — 4 10 14 331 345 1.6 Group IV — 2 — 1 2 2 7 32 39 0.1 Total (a) $ 459 $ 179 $ 41 $ 71 $ 241 $ 199 $ 1,190 $ 20,805 $ 21,995 100.0 % __________ |
Net Investment in Operating Lea
Net Investment in Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases, Operating [Abstract] | |
Net investment in operating leases [Table Text Block] | Net investment in operating leases was as follows (in millions): December 31, June 30, Vehicles, at cost (a) $ 29,982 $ 27,883 Accumulated depreciation (4,815) (4,475) Net investment in operating leases $ 25,167 $ 23,408 __________ |
Transfers of Receivables (Table
Transfers of Receivables (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Transfers and Servicing [Abstract] | |
Schedule of Assets and Liabilities Related to Securitization Transactions [Table Text Block] | Most of these securitization transactions utilize VIEs. The following tables show the assets and debt related to our securitization transactions that were included in our financial statements (in billions): December 31, 2021 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt Before Allowance Allowance for After Allowance VIE (b) Retail financing $ 1.7 $ 31.6 $ 0.3 $ 31.3 $ 24.5 Wholesale financing 1.3 11.7 — 11.7 8.7 Finance receivables 3.0 43.3 0.3 43.0 33.2 Net investment in operating leases 0.4 7.5 — 7.5 5.1 Total VIE $ 3.4 $ 50.8 $ 0.3 $ 50.5 $ 38.3 Non-VIE Retail financing $ 0.4 $ 7.4 $ 0.1 $ 7.3 $ 6.9 Wholesale financing — 0.3 — 0.3 0.2 Finance receivables 0.4 7.7 0.1 7.6 7.1 Net investment in operating leases — — — — — Total Non-VIE $ 0.4 $ 7.7 $ 0.1 $ 7.6 $ 7.1 Total securitization transactions Retail financing $ 2.1 $ 39.0 $ 0.4 $ 38.6 $ 31.4 Wholesale financing 1.3 12.0 — 12.0 8.9 Finance receivables 3.4 51.0 0.4 50.6 40.3 Net investment in operating leases 0.4 7.5 — 7.5 5.1 Total securitization transactions $ 3.8 $ 58.5 $ 0.4 $ 58.1 $ 45.4 __________ (a) Unearned interest supplements and residual support are excluded from securitization transactions. (b) Includes assets to be used to settle the liabilities of the consolidated VIEs. (c) Includes unamortized discount and debt issuance costs. NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued) June 30, 2022 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt Before Allowance Allowance for After Allowance VIE (b) Retail financing $ 1.6 $ 30.1 $ 0.2 $ 29.9 $ 25.4 Wholesale financing 0.1 13.3 — 13.3 8.6 Finance receivables 1.7 43.4 0.2 43.2 34.0 Net investment in operating leases 0.6 10.5 — 10.5 7.1 Total VIE $ 2.3 $ 53.9 $ 0.2 $ 53.7 $ 41.1 Non-VIE Retail financing $ 0.3 $ 6.4 $ 0.1 $ 6.3 $ 5.8 Wholesale financing — 0.3 — 0.3 0.2 Finance receivables 0.3 6.7 0.1 6.6 6.0 Net investment in operating leases — — — — — Total Non-VIE $ 0.3 $ 6.7 $ 0.1 $ 6.6 $ 6.0 Total securitization transactions Retail financing $ 1.9 $ 36.5 $ 0.3 $ 36.2 $ 31.2 Wholesale financing 0.1 13.6 — 13.6 8.8 Finance receivables 2.0 50.1 0.3 49.8 40.0 Net investment in operating leases 0.6 10.5 — 10.5 7.1 Total securitization transactions $ 2.6 $ 60.6 $ 0.3 $ 60.3 $ 47.1 __________ (a) Unearned interest supplements and residual support are excluded from securitization transactions. (b) Includes assets to be used to settle the liabilities of the consolidated VIEs. (c) Includes unamortized discount and debt issuance cost. |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The gains/(losses), by hedge designation, reported in income for the periods ended June 30 were as follows (in millions): Second Quarter First Half 2021 2022 2021 2022 Fair value hedges Interest rate contracts Net interest settlements and accruals on hedging instruments $ 100 $ 25 $ 201 $ 101 Fair value changes on hedging instruments 103 (336) (538) (1,322) Fair value changes on hedged debt (87) 385 503 1,376 Cross-currency interest rate swap contracts Net interest settlements and accruals on hedging instruments (1) (6) (4) (9) Fair value changes on hedging instruments 11 (61) (39) (98) Fair value changes on hedged debt (11) 65 33 106 Derivatives not designated as hedging instruments Interest rate contracts 6 89 (25) 212 Foreign currency exchange contracts (a) (44) 27 8 25 Cross-currency interest rate swap contracts 49 (443) (196) (670) Total $ 126 $ (255) $ (57) $ (279) __________ (a) Reflects forward contracts between us and an affiliated company. |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The fair value of our derivative instruments and the associated notional amounts were as follows (in millions): December 31, 2021 June 30, 2022 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Fair value hedges Interest rate contracts $ 23,893 $ 544 $ 274 $ 19,711 $ — $ 1,100 Cross-currency interest rate swap contracts 885 — 49 884 — 135 Derivatives not designated as hedging instruments Interest rate contracts 50,060 338 126 44,788 651 259 Foreign currency exchange contracts 4,407 66 2 4,454 66 24 Cross-currency interest rate swap contracts 6,533 117 61 6,633 31 690 Total derivative financial instruments, gross (a) (b) $ 85,778 $ 1,065 $ 512 $ 76,470 $ 748 $ 2,208 __________ (a) At December 31, 2021 and June 30, 2022, we held collateral of $26 million and $147 million, respectively, and we posted collateral of $71 million and $115 million, respectively. |
Other Assets and Other Liabil_2
Other Assets and Other Liabilities and Deferred Income (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Assets and Other Liabilities and Deferred Income [Abstract] | |
Schedule of Other Assets and Other Liabilities [Table Text Block] | Other assets and other liabilities and deferred revenue consist of various balance sheet items that are combined for financial statement presentation due to their respective materiality compared with other individual asset and liability items. Other assets were as follows (in millions): December 31, June 30, Prepaid reinsurance premiums and other reinsurance recoverables $ 743 $ 761 Accrued interest and other non-finance receivables 584 563 Property and equipment, net of accumulated depreciation (a) 224 220 Deferred charges - income taxes 190 216 Collateral held for resale, at net realizable value 258 186 Investment in non-consolidated affiliates 133 152 Restricted cash 128 108 Operating lease assets 76 67 Other 188 211 Total other assets $ 2,524 $ 2,484 __________ (a) Accumulated depreciation was $397 million and $404 million at December 31, 2021 and June 30, 2022, respectively. Other liabilities and deferred revenue were as follows (in millions): December 31, June 30, Unearned insurance premiums and fees $ 857 $ 874 Interest payable 667 544 Income tax and related interest (a) 229 262 Operating lease liabilities 78 69 Deferred revenue 62 24 Other 273 214 Total other liabilities and deferred revenue $ 2,166 $ 1,987 __________ (a) Includes income tax and interest payable to affiliated companies of $101 million and $155 million at December 31, 2021 and June 30, 2022, respectively. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Debt outstanding and interest rates were as follows (in millions): Interest Rates Debt Average Contractual Average Effective December 31, June 30, 2021 2022 2021 2022 Short-term debt Unsecured debt Floating rate demand notes $ 9,400 $ 9,386 Other short-term debt 4,701 3,781 Asset-backed debt (a) 709 762 Total short-term debt 14,810 13,929 1.2 % 1.8 % 1.3 % 1.8 % Long-term debt Unsecured debt Notes payable within one year 13,660 10,471 Notes payable after one year 44,337 39,999 Asset-backed debt (a) Notes payable within one year 18,049 17,884 Notes payable after one year 26,654 28,472 Unamortized (discount)/premium 29 25 Unamortized issuance costs (212) (210) Fair value adjustments (b) 390 (1,109) Total long-term debt 102,907 95,532 2.6 % 2.7 % 2.6 % 2.7 % Total debt $ 117,717 $ 109,461 2.4 % 2.6 % 2.4 % 2.6 % Fair value of debt (c) $ 120,204 $ 106,884 __________ (a) Asset-backed debt issued in securitizations is the obligation of the consolidated securitization entity that issued the debt and is payable only out of collections on the underlying securitized assets and related enhancements. This asset-backed debt is not the obligation of Ford Credit or our other subsidiaries. (b) These adjustments are related to hedging activity and include discontinued hedging relationship adjustments of $257 million and $179 million at December 31, 2021 and June 30, 2022, respectively. The carrying value of hedged debt was $37.5 billion and $33.4 billion at December 31, 2021 and June 30, 2022, respectively. |
Other Income, Net (Tables)
Other Income, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income [Table Text Block] | The amounts included in Other income/(loss), net for the periods ended June 30 were as follows (in millions): Second Quarter First Half 2021 2022 2021 2022 Gains/(Losses) on derivatives $ 24 $ (383) $ (241) $ (506) Currency revaluation gains/(losses) (30) 417 153 569 Interest and investment income (a) 15 1 13 (4) Gains/(Losses) on changes in investments in affiliates (b) — (36) 1 (231) Other 4 22 12 24 Total other income/(loss), net $ 13 $ 21 $ (62) $ (148) __________ (a) Includes a $20 million unrealized gain for an observable price event on a non-consolidated investment in the first quarter of 2022. (b) Includes losses related to our restructuring in South America described in Note 10. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Key financial information for our business segments for the periods ended or at June 30 was as follows (in millions): United States and Canada Europe All Other Total Unallocated Other (a) Total Second Quarter 2021 Total revenue $ 2,295 $ 238 $ 108 $ 2,641 $ — $ 2,641 Income before income taxes 1,466 81 22 1,569 54 1,623 Depreciation on vehicles subject to operating leases 184 7 — 191 — 191 Interest expense 600 72 51 723 (43) 680 Provision for credit losses (165) (6) 5 (166) — (166) Second Quarter 2022 Total revenue $ 2,029 $ 221 $ 98 $ 2,348 $ — $ 2,348 Income before income taxes 698 97 (17) 778 125 903 Depreciation on vehicles subject to operating leases 559 (10) — 549 — 549 Interest expense 632 57 53 742 (85) 657 Provision for credit losses (57) (2) 3 (56) — (56) First Half 2021 Total revenue $ 4,679 $ 479 $ 200 $ 5,358 $ — $ 5,358 Income before income taxes 2,462 147 7 2,616 (31) 2,585 Depreciation on vehicles subject to operating leases 746 13 — 759 — 759 Interest expense 1,238 152 107 1,497 (13) 1,484 Provision for credit losses (217) (7) 18 (206) — (206) Net finance receivables and net investment in operating leases (a) (b) 93,783 19,305 4,672 117,760 — 117,760 Total assets 111,149 22,226 5,436 138,811 — 138,811 First Half 2022 Total revenue $ 4,058 $ 416 $ 200 $ 4,674 $ — $ 4,674 Income before income taxes 1,481 166 (191) 1,456 201 1,657 Depreciation on vehicles subject to operating leases 1,085 (21) — 1,064 — 1,064 Interest expense 1,174 112 111 1,397 (129) 1,268 Provision for credit losses (124) (5) 9 (120) — (120) Net finance receivables and net investment in operating leases (a) (b) 94,291 16,212 5,124 115,627 — 115,627 Total assets 103,289 19,158 5,803 128,250 — 128,250 __________ (a) Excludes held-for-sale finance receivables. |
Cash, Cash Equivalents, and M_2
Cash, Cash Equivalents, and Marketable Securities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash, Cash Equivalents, and Short-term Investments | $ 5,246 | $ 8,920 | ||
Total cash and cash equivalents | 6,298 | 10,963 | ||
Restricted Cash | 108 | 128 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 6,406 | 11,091 | $ 14,081 | $ 14,996 |
Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 1,052 | 2,043 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Marketable securities | 2,186 | 2,173 | ||
US Government [Member] | Fair Value, Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 40 | 711 | ||
Marketable securities | 325 | 864 | ||
US Government Agencies [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 0 | 240 | ||
Marketable securities | 223 | 75 | ||
Debt Security, Government, Non-US [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 382 | 152 | ||
Marketable securities | 1,184 | 697 | ||
Corporate debt [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 630 | 940 | ||
Marketable securities | 274 | 304 | ||
Other Debt Obligations [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Marketable securities | $ 180 | $ 233 |
Finance Receivables Net (Detail
Finance Receivables Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Sales Type and Direct Financing Lease Revenue | $ 73 | $ 88 | $ 150 | $ 178 | ||||
Net Finance Receivables [Abstract] | ||||||||
Financing Receivable, before Allowance for Credit Loss | 92,982 | 92,982 | $ 93,275 | |||||
Financing Receivable, Allowance for Credit Loss | (763) | (1,061) | (763) | (1,061) | $ (845) | (925) | $ (1,223) | $ (1,305) |
Finance leases, net | 92,219 | 92,219 | 92,350 | |||||
Uncollected interest receivable excluded from finance receivable | $ 119 | $ 119 | 125 | |||||
Financing Receivable, Threshold Period Past Due | 31 days | 31 days | ||||||
Consumer Segment [Member] | ||||||||
Net Finance Receivables [Abstract] | ||||||||
Financing Receivable, before Allowance for Credit Loss | $ 69,331 | $ 69,331 | 73,545 | |||||
Financing Receivable, Allowance for Credit Loss | (754) | (1,022) | (754) | (1,022) | (826) | (903) | (1,170) | (1,245) |
Non-Consumer Segment [Member] | ||||||||
Net Finance Receivables [Abstract] | ||||||||
Financing Receivable, before Allowance for Credit Loss | 23,651 | 23,651 | 19,730 | |||||
Financing Receivable, Allowance for Credit Loss | (9) | $ (39) | (9) | $ (39) | $ (19) | (22) | $ (53) | $ (60) |
Retail Installment Loans [Member] | Consumer Segment [Member] | ||||||||
Net Finance Receivables [Abstract] | ||||||||
Financing Receivable, before Allowance for Credit Loss | 65,219 | 65,219 | 69,247 | |||||
Retail [Member] | Consumer Segment [Member] | ||||||||
Net Finance Receivables [Abstract] | ||||||||
Unearned interest supplements from Ford and affiliated companies | (2,535) | (2,535) | (3,020) | |||||
Financing Receivable, before Allowance for Credit Loss | 69,331 | 69,331 | 73,545 | |||||
Finance Receivable Before Unearned Interest Supplements | 71,866 | 71,866 | 76,565 | |||||
Finance leases [Member] | ||||||||
Net Finance Receivables [Abstract] | ||||||||
Finance leases, net | 6,346 | 6,346 | 7,003 | |||||
Finance leases [Member] | Consumer Segment [Member] | ||||||||
Net Finance Receivables [Abstract] | ||||||||
Financing Receivable, before Allowance for Credit Loss | 6,647 | 6,647 | 7,318 | |||||
Wholesale and Dealer Loans [Member] | Non-Consumer Segment [Member] | ||||||||
Net Finance Receivables [Abstract] | ||||||||
Financing Receivable, before Allowance for Credit Loss | 21,995 | 21,995 | 18,197 | |||||
Other Finance Receivables [Member] | Non-Consumer Segment [Member] | ||||||||
Net Finance Receivables [Abstract] | ||||||||
Financing Receivable, before Allowance for Credit Loss | 1,656 | 1,656 | 1,533 | |||||
Retail Installment loans, dealer financing, and other financing [Member] | ||||||||
Net Finance Receivables [Abstract] | ||||||||
Finance leases, net | 85,873 | 85,873 | 85,347 | |||||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Net Finance Receivables [Abstract] | ||||||||
Finance leases, net | 85,873 | 85,873 | 85,347 | |||||
Fair value (b) | $ 84,220 | $ 84,220 | $ 86,199 |
Finance Receivables - Credit Qu
Finance Receivables - Credit Quality and Impaired Receivables (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Non-Accrual of Revenue | 90 | |
Financing Receivables | $ 92,982,000,000 | $ 93,275,000,000 |
Wholesale and Dealer Loans [Member] | Financing Receivable [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 8,000,000 | 62,000,000 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 23,651,000,000 | 19,730,000,000 |
Financing Receivable, Revolving | 20,805,000,000 | 16,944,000,000 |
Commercial Portfolio Segment [Member] | Group I | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 19,170,000,000 | 14,779,000,000 |
Financing Receivable, Revolving | 18,089,000,000 | 13,670,000,000 |
Commercial Portfolio Segment [Member] | Group I | Percent of Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 0.872 | 0.812 |
Commercial Portfolio Segment [Member] | Group II | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 2,441,000,000 | 2,793,000,000 |
Financing Receivable, Revolving | 2,353,000,000 | 2,689,000,000 |
Commercial Portfolio Segment [Member] | Group II | Percent of Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 0.111 | 0.153 |
Commercial Portfolio Segment [Member] | Group III | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 345,000,000 | 559,000,000 |
Financing Receivable, Revolving | 331,000,000 | 529,000,000 |
Commercial Portfolio Segment [Member] | Group III | Percent of Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 0.016 | 0.031 |
Commercial Portfolio Segment [Member] | Group IV | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 39,000,000 | 66,000,000 |
Financing Receivable, Revolving | 32,000,000 | 56,000,000 |
Commercial Portfolio Segment [Member] | Group IV | Percent of Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 0.001 | 0.004 |
Commercial Portfolio Segment [Member] | Dealer Loan | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 459,000,000 | 410,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 179,000,000 | 75,000,000 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 41,000,000 | 182,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 71,000,000 | 47,000,000 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 241,000,000 | 114,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 199,000,000 | 425,000,000 |
Financing Receivable Originations Total | 1,190,000,000 | 1,253,000,000 |
Commercial Portfolio Segment [Member] | Dealer Loan | Group I | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 452,000,000 | 391,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 155,000,000 | 68,000,000 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 40,000,000 | 151,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 65,000,000 | 45,000,000 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 225,000,000 | 109,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 144,000,000 | 345,000,000 |
Financing Receivable Originations Total | 1,081,000,000 | 1,109,000,000 |
Commercial Portfolio Segment [Member] | Dealer Loan | Group II | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 7,000,000 | 11,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 22,000,000 | 7,000,000 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 1,000,000 | 26,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 5,000,000 | 2,000,000 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 10,000,000 | 4,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 43,000,000 | 54,000,000 |
Financing Receivable Originations Total | 88,000,000 | 104,000,000 |
Commercial Portfolio Segment [Member] | Dealer Loan | Group III | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 0 | 8,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 0 | 0 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0 | 1,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0 | 0 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 4,000,000 | 1,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 10,000,000 | 20,000,000 |
Financing Receivable Originations Total | 14,000,000 | 30,000,000 |
Commercial Portfolio Segment [Member] | Dealer Loan | Group IV | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 0 | 0 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 2,000,000 | 0 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0 | 4,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 1,000,000 | 0 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 2,000,000 | 0 |
Financing Receivable, Originated in Current Fiscal Year | 2,000,000 | 6,000,000 |
Financing Receivable Originations Total | 7,000,000 | 10,000,000 |
Commercial Portfolio Segment [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 21,995,000,000 | 18,197,000,000 |
Commercial Portfolio Segment [Member] | Commercial Portfolio Segment [Member] | Percent of Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 1 | 1 |
Commercial Portfolio Segment [Member] | Wholesale and Dealer Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 21,995,000,000 | 18,197,000,000 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 69,331,000,000 | 73,545,000,000 |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 1,919,000,000 | 868,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 4,337,000,000 | 2,676,000,000 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 9,038,000,000 | 6,692,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 17,933,000,000 | 12,875,000,000 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 22,702,000,000 | 22,967,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 13,402,000,000 | 27,467,000,000 |
Consumer Portfolio Segment [Member] | Financing Receivables, 31-60 Days Past Due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 529,000,000 | 586,000,000 |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 57,000,000 | 39,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 68,000,000 | 52,000,000 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 91,000,000 | 98,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 170,000,000 | 120,000,000 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 113,000,000 | 186,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 30,000,000 | 91,000,000 |
Consumer Portfolio Segment [Member] | Financing Receivables, 61-120 Days past due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 123,000,000 | 127,000,000 |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 11,000,000 | 7,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 15,000,000 | 10,000,000 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 23,000,000 | 20,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 36,000,000 | 29,000,000 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 31,000,000 | 40,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 7,000,000 | 21,000,000 |
Consumer Portfolio Segment [Member] | Financing Receivables, Greater Than 120 Days Past Due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 40,000,000 | 43,000,000 |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 13,000,000 | 10,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 5,000,000 | 6,000,000 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 8,000,000 | 6,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 7,000,000 | 9,000,000 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 6,000,000 | 11,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 1,000,000 | 1,000,000 |
Consumer Portfolio Segment [Member] | Total past due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 692,000,000 | 756,000,000 |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 81,000,000 | 56,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 88,000,000 | 68,000,000 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 122,000,000 | 124,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 213,000,000 | 158,000,000 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 150,000,000 | 237,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 38,000,000 | 113,000,000 |
Consumer Portfolio Segment [Member] | Financial Asset, 1 to 29 Days Past Due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 68,639,000,000 | 72,789,000,000 |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 1,838,000,000 | 812,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 4,249,000,000 | 2,608,000,000 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 8,916,000,000 | 6,568,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 17,720,000,000 | 12,717,000,000 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 22,552,000,000 | 22,730,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 13,364,000,000 | 27,354,000,000 |
Consumer Portfolio Segment [Member] | Percent of Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 1 | 1 |
Consumer Portfolio Segment [Member] | Percent of Total | Financing Receivables, 31-60 Days Past Due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 0.008 | 0.008 |
Consumer Portfolio Segment [Member] | Percent of Total | Financing Receivables, 61-120 Days past due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 0.002 | 0.002 |
Consumer Portfolio Segment [Member] | Percent of Total | Financing Receivables, Greater Than 120 Days Past Due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 0 | 0 |
Consumer Portfolio Segment [Member] | Percent of Total | Total past due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 0.010 | 0.010 |
Consumer Portfolio Segment [Member] | Percent of Total | Financial Asset, 1 to 29 Days Past Due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | $ 0.990 | $ 0.990 |
Consumer Portfolio Segment [Member] | Pass [Member] | Maximum [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Finance Receivables Credit Quality Ratings Term Range | 60 days | |
Consumer Portfolio Segment [Member] | Substandard [Member] | Minimum [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Finance Receivables Credit Quality Ratings Term Range | 120 days | |
Consumer Portfolio Segment [Member] | Special Mention [Member] | Maximum [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Finance Receivables Credit Quality Ratings Term Range | 120 days | |
Consumer Portfolio Segment [Member] | Special Mention [Member] | Minimum [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Finance Receivables Credit Quality Ratings Term Range | 61 days |
Finance Receivables and Allowan
Finance Receivables and Allowance for Credit Losses Allowance for credit losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Allowance for Credit Losses [Line Items] | ||||||||
Financing Receivable, Allowance for Credit Loss | $ 763 | $ 1,061 | $ 763 | $ 1,061 | $ 845 | $ 925 | $ 1,223 | $ 1,305 |
Finance receivables, net | 92,219 | 92,219 | 92,350 | |||||
Financing Receivable, Allowance for Credit Loss, Writeoff | (62) | (58) | (124) | (155) | ||||
Financing Receivable, Allowance for Credit Loss, Recovery | 45 | 57 | 89 | 113 | ||||
Financing Receivable, Credit Loss, Expense (Reversal) | (56) | (166) | (120) | (206) | ||||
Financing Receivable, Allowance for Credit Losses, Other | (9) | 5 | (7) | 4 | ||||
Financing Receivable, before Allowance for Credit Loss | 92,982 | 92,982 | 93,275 | |||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | $ 82 | $ 162 | ||||||
Financing Receivable, Threshold Period Past Due, Writeoff | 120 days | 120 days | ||||||
Commercial Portfolio Segment [Member] | ||||||||
Allowance for Credit Losses [Line Items] | ||||||||
Financing Receivable, Allowance for Credit Loss | $ 9 | 39 | $ 9 | 39 | 19 | 22 | 53 | 60 |
Financing Receivable, Allowance for Credit Loss, Writeoff | (1) | (3) | (1) | (3) | ||||
Financing Receivable, Allowance for Credit Loss, Recovery | 1 | 2 | 2 | 5 | ||||
Financing Receivable, Credit Loss, Expense (Reversal) | (8) | (12) | (13) | (22) | ||||
Financing Receivable, Allowance for Credit Losses, Other | (2) | (1) | (1) | (1) | ||||
Financing Receivable, before Allowance for Credit Loss | 23,651 | 23,651 | 19,730 | |||||
Consumer Portfolio Segment [Member] | ||||||||
Allowance for Credit Losses [Line Items] | ||||||||
Financing Receivable, Allowance for Credit Loss | 754 | 1,022 | 754 | 1,022 | $ 826 | 903 | $ 1,170 | $ 1,245 |
Financing Receivable, Allowance for Credit Loss, Writeoff | (61) | (55) | (123) | (152) | ||||
Financing Receivable, Allowance for Credit Loss, Recovery | 44 | 55 | 87 | 108 | ||||
Financing Receivable, Credit Loss, Expense (Reversal) | (48) | (154) | (107) | (184) | ||||
Financing Receivable, Allowance for Credit Losses, Other | (7) | $ 6 | (6) | $ 5 | ||||
Financing Receivable, before Allowance for Credit Loss | 69,331 | 69,331 | 73,545 | |||||
Retail Installment loans, dealer financing, and other financing [Member] | ||||||||
Allowance for Credit Losses [Line Items] | ||||||||
Finance receivables, net | $ 85,873 | $ 85,873 | $ 85,347 |
Net Investments in Operating _2
Net Investments in Operating Leases (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 404 | $ 397 |
Net Investment in Operating Leases | $ 23,408 | 25,167 |
Maximum [Member] | ||
Net Investment in Operating Leases, Length of Lease | 60 months | |
Property Subject to Operating Lease [Member] | ||
Property Subject to or Available for Operating Lease, Gross | $ 27,883 | 29,982 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 4,475 | 4,815 |
Net Investment in Operating Leases | $ 23,408 | $ 25,167 |
Transfers of Receivables - Asse
Transfers of Receivables - Assets and Liabilities of Securitizations (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | $ 6,298 | $ 10,963 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 115,627 | $ 117,760 | |
Related Debt | 109,461 | 117,717 | |
Total assets | 128,250 | 134,945 | $ 138,811 |
Unencumbered Assets | 500 | 900 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 2,600 | 3,800 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 60,600 | 58,500 | |
Allowance for Credit Losses | 300 | 400 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 60,300 | 58,100 | |
Related Debt | 47,100 | 45,400 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 2,000 | 3,400 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 50,100 | 51,000 | |
Allowance for Credit Losses | 300 | 400 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 49,800 | 50,600 | |
Related Debt | 40,000 | 40,300 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Retail [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 1,900 | 2,100 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 36,500 | 39,000 | |
Allowance for Credit Losses | 300 | 400 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 36,200 | 38,600 | |
Related Debt | 31,200 | 31,400 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Wholesale [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 100 | 1,300 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 13,600 | 12,000 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 13,600 | 12,000 | |
Related Debt | 8,800 | 8,900 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 600 | 400 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 10,500 | 7,500 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 10,500 | 7,500 | |
Related Debt | 7,100 | 5,100 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 2,284 | 3,407 | |
Related Debt | 41,072 | 38,274 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 2,300 | 3,400 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 53,900 | 50,800 | |
Allowance for Credit Losses | 200 | 300 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 53,700 | 50,500 | |
Related Debt | 41,100 | 38,300 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 1,700 | 3,000 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 43,400 | 43,300 | |
Allowance for Credit Losses | 200 | 300 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 43,200 | 43,000 | |
Related Debt | 34,000 | 33,200 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Retail [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 1,600 | 1,700 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 30,100 | 31,600 | |
Allowance for Credit Losses | 200 | 300 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 29,900 | 31,300 | |
Related Debt | 25,400 | 24,500 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Wholesale [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 100 | 1,300 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 13,300 | 11,700 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 13,300 | 11,700 | |
Related Debt | 8,600 | 8,700 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 600 | 400 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 10,500 | 7,500 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 10,500 | 7,500 | |
Related Debt | 7,100 | 5,100 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 300 | 400 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 6,700 | 7,700 | |
Allowance for Credit Losses | 100 | 100 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 6,600 | 7,600 | |
Related Debt | 6,000 | 7,100 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 300 | 400 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 6,700 | 7,700 | |
Allowance for Credit Losses | 100 | 100 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 6,600 | 7,600 | |
Related Debt | 6,000 | 7,100 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Retail [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 300 | 400 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 6,400 | 7,400 | |
Allowance for Credit Losses | 100 | 100 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 6,300 | 7,300 | |
Related Debt | 5,800 | 6,900 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Wholesale [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 300 | 300 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 300 | 300 | |
Related Debt | 200 | 200 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 0 | 0 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 0 | 0 | |
Related Debt | $ 0 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Derivative [Line Items] | |||||
Debt Carrying Value Fair Value | $ 33,400 | $ 33,400 | $ 37,500 | ||
Income Effect of Derivative Financial Instruments [Abstract] | |||||
Derivative, Gain (Loss) on Derivative, Net | (255) | $ 126 | (279) | $ (57) | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Fair Value of Derivative Assets | 748 | 748 | 1,065 | ||
Fair Value of Derivative Liabilities | 2,208 | 2,208 | 512 | ||
Derivative, Notional Amount | 76,470 | 76,470 | 85,778 | ||
Derivative, Collateral, Obligation to Return Cash | 147 | 147 | 26 | ||
Derivative, Collateral, Right to Reclaim Cash | 115 | 115 | 71 | ||
Derivative Asset, Not Offset, Policy Election Deduction | 161 | 161 | 415 | ||
Derivative Liability, Not Offset, Policy Election Deduction | 161 | 161 | 415 | ||
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | |||||
Income Effect of Derivative Financial Instruments [Abstract] | |||||
Net interest settlements and accruals excluded from the assessment of hedge effectiveness | 25 | 100 | 101 | 201 | |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (336) | 103 | (1,322) | (538) | |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 385 | (87) | 1,376 | 503 | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Derivative, Notional Amount | 19,711 | 19,711 | 23,893 | ||
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Currency Swap | |||||
Income Effect of Derivative Financial Instruments [Abstract] | |||||
Net interest settlements and accruals excluded from the assessment of hedge effectiveness | (6) | (1) | (9) | (4) | |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (61) | 11 | (98) | (39) | |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 65 | (11) | 106 | 33 | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Derivative, Notional Amount | 884 | 884 | 885 | ||
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | Fair Value Hedging [Member] | |||||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Fair Value of Derivative Assets | 0 | 0 | 544 | ||
Fair Value of Derivative Liabilities | 1,100 | 1,100 | 274 | ||
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | Currency Swap | |||||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Fair Value of Derivative Assets | 0 | 0 | 0 | ||
Fair Value of Derivative Liabilities | 135 | 135 | 49 | ||
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Income Effect of Derivative Financial Instruments [Abstract] | |||||
Derivative, Gain (Loss) on Derivative, Net | 89 | 6 | 212 | (25) | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Derivative, Notional Amount | 44,788 | 44,788 | 50,060 | ||
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | |||||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Fair Value of Derivative Assets | 651 | 651 | 338 | ||
Fair Value of Derivative Liabilities | 259 | 259 | 126 | ||
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Income Effect of Derivative Financial Instruments [Abstract] | |||||
Derivative, Gain (Loss) on Derivative, Net | 27 | (44) | 25 | 8 | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Derivative, Notional Amount | 4,454 | 4,454 | 4,407 | ||
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | |||||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Fair Value of Derivative Assets | 66 | 66 | 66 | ||
Fair Value of Derivative Liabilities | 24 | 24 | 2 | ||
Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Income Effect of Derivative Financial Instruments [Abstract] | |||||
Derivative, Gain (Loss) on Derivative, Net | (443) | $ 49 | (670) | $ (196) | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Derivative, Notional Amount | 6,633 | 6,633 | 6,533 | ||
Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | |||||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Fair Value of Derivative Assets | 31 | 31 | 117 | ||
Fair Value of Derivative Liabilities | $ 690 | $ 690 | $ 61 |
Other Assets and Other Liabil_3
Other Assets and Other Liabilities and Deferred Income (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Other Assets and Other Liabilities [Abstract] | ||
Accrued interest and other non-finance receivables | $ 563 | $ 584 |
Property, Plant and Equipment, Net | 220 | 224 |
Collateral held for resale, at net realizable value, and other inventory | 186 | 258 |
Deferred charges - income taxes | 216 | 190 |
Prepaid Reinsurance Premiums and Other Reinsurance Recoverables | 761 | 743 |
Operating lease assets | 67 | 76 |
Investment in non-consolidated affiliates | 152 | 133 |
Restricted Cash and Cash Equivalents | 108 | 128 |
Other | 211 | 188 |
Other assets | 2,484 | 2,524 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 404 | 397 |
Unearned Premiums and Fees | 874 | 857 |
Interest Payable | 544 | 667 |
Taxes Payable | 262 | 229 |
Deferred Revenue | 24 | 62 |
Operating Lease, Liability | 69 | 78 |
Other Liabilities | 1,987 | 2,166 |
Related Party Transactions Income Taxes and Related Interest Payable | 155 | 101 |
Other Liabilities, Miscellaneous | 214 | 273 |
Restricted Cash | 108 | 128 |
Property Subject to Operating Lease [Member] | ||
Other Assets and Other Liabilities [Abstract] | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 4,475 | $ 4,815 |
Debt (Details)
Debt (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total short-term debt | $ 13,929,000,000 | $ 14,810,000,000 |
Unamortized discount | 25,000,000 | 29,000,000 |
Unamortized debt issuance costs | (210,000,000) | (212,000,000) |
Fair value adjustments | (1,109,000,000) | 390,000,000 |
Total long-term debt | 95,532,000,000 | 102,907,000,000 |
Total debt | $ 109,461,000,000 | $ 117,717,000,000 |
Average Contractual (interest rate) | 2.60% | 2.40% |
Average Effective (interest rate) | 2.60% | 2.40% |
Debt Carrying Value Fair Value | $ 33,400,000,000 | $ 37,500,000,000 |
Fair value of short-term debt | 13,200,000,000 | 14,100,000,000 |
Discontinued Hedged Debt | 179,000,000 | 257,000,000 |
Unsecured Debt [Member] | Corporate debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Repurchased Face Amount | 3 | |
DebtInstrumentRepurchaseAmountIncludingFees | 3 | |
Floating Rate Demand Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 9,386,000,000 | 9,400,000,000 |
Other short-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 3,781,000,000 | 4,701,000,000 |
Asset-backed Securities [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 762,000,000 | 709,000,000 |
Notes payable within one year | 17,884,000,000 | 18,049,000,000 |
Notes payable after one year | $ 28,472,000,000 | $ 26,654,000,000 |
Total short-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Average Contractual (interest rate) | 1.80% | 1.20% |
Average Effective (interest rate) | 1.80% | 1.30% |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable within one year | $ 10,471,000,000 | $ 13,660,000,000 |
Notes payable after one year | $ 39,999,000,000 | $ 44,337,000,000 |
Total long-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Average Contractual (interest rate) | 2.70% | 2.60% |
Average Effective (interest rate) | 2.70% | 2.60% |
Fair Value, Nonrecurring [Member] | Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 106,884,000,000 | $ 120,204,000,000 |
Debt (Details)_2
Debt (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Unsecured Debt [Member] | Corporate debt [Member] | ||
Schedule of Debt [Line Items] | ||
GainLossOnRepurchaseOfDebtInstrumentIncludingFees | $ 16,600,000 | |
Financial Guarantee [Member] | ||
Schedule of Debt [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 92,000,000 | $ 102,000,000 |
Restructuring and Related Act_2
Restructuring and Related Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||||
SHAREHOLDER’S INTEREST | $ 0 | $ 0 | $ 22 | |||
Shareholder's Interest [Member] | 5,166 | 5,166 | $ 5,227 | |||
ARGENTINA | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | $ 75 | |||||
BRAZIL | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 36 | 155 | ||||
Parent [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 36 | $ 0 | 231 | $ 0 | ||
Foreign Currency Translation Adjustment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 223 | 223 | ||||
Equity Component [Domain] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Shareholder's Interest [Member] | $ 61 | $ 61 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | ||||
Gains/(Losses) on derivatives | $ (383) | $ 24 | $ (506) | $ (241) |
Currency revaluation gains/(losses) | 417 | (30) | 569 | 153 |
Interest and investment income | 1 | 15 | (4) | 13 |
Gains/(Losses) On Changes In Investments In Affiliates | (36) | 0 | (231) | 1 |
Other | 22 | 4 | 24 | 12 |
Other income, net | 21 | $ 13 | $ (148) | $ (62) |
Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Annual Amount | $ 20 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Total revenue | $ 2,348 | $ 2,641 | $ 4,674 | $ 5,358 | |
Income before income taxes | 903 | 1,623 | 1,657 | 2,585 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | 549 | 191 | 1,064 | 759 | |
Interest expense | 657 | 680 | 1,268 | 1,484 | |
Financing Receivable, Credit Loss, Expense (Reversal) | (56) | (166) | (120) | (206) | |
Provision for credit losses | (56) | (166) | (206) | ||
Net finance receivables and net investment in operating leases | 115,627 | 117,760 | 115,627 | 117,760 | |
Total assets | 128,250 | 138,811 | 128,250 | 138,811 | $ 134,945 |
Reportable segments | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 2,348 | 2,641 | 4,674 | 5,358 | |
Income before income taxes | 778 | 1,569 | 1,456 | 2,616 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | 549 | 191 | 1,064 | 759 | |
Interest expense | 742 | 723 | 1,397 | 1,497 | |
Financing Receivable, Credit Loss, Expense (Reversal) | (56) | (166) | (120) | (206) | |
Net finance receivables and net investment in operating leases | 115,627 | 117,760 | 115,627 | 117,760 | |
Total assets | 128,250 | 138,811 | 128,250 | 138,811 | |
Reportable segments | Europe [Member] | |||||
Other disclosures [Abstract] | |||||
Net finance receivables and net investment in operating leases | 16,212 | 19,305 | 16,212 | 19,305 | |
Total assets | 19,158 | 22,226 | 19,158 | 22,226 | |
Reportable segments | All Other | |||||
Other disclosures [Abstract] | |||||
Net finance receivables and net investment in operating leases | 5,124 | 4,672 | 5,124 | 4,672 | |
Total assets | 5,803 | 5,436 | 5,803 | 5,436 | |
Reportable segments | United States and Canada | |||||
Other disclosures [Abstract] | |||||
Net finance receivables and net investment in operating leases | 94,291 | 93,783 | 94,291 | 93,783 | |
Total assets | 103,289 | 111,149 | 103,289 | 111,149 | |
Reportable segments | United States and Canada | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 2,029 | 2,295 | 4,058 | 4,679 | |
Income before income taxes | 698 | 1,466 | 1,481 | 2,462 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | 559 | 184 | 1,085 | 746 | |
Interest expense | 632 | 600 | 1,174 | 1,238 | |
Financing Receivable, Credit Loss, Expense (Reversal) | (57) | (165) | (124) | (217) | |
Reportable segments | Europe | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 221 | 238 | 416 | 479 | |
Income before income taxes | 97 | 81 | 166 | 147 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | (10) | 7 | (21) | 13 | |
Interest expense | 57 | 72 | 112 | 152 | |
Financing Receivable, Credit Loss, Expense (Reversal) | (2) | (6) | (5) | (7) | |
Reportable segments | All Other | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 98 | 108 | 200 | 200 | |
Income before income taxes | (17) | 22 | (191) | 7 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | 0 | 0 | 0 | 0 | |
Interest expense | 53 | 51 | 111 | 107 | |
Financing Receivable, Credit Loss, Expense (Reversal) | 3 | 5 | 9 | 18 | |
Unallocated other | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 0 | 0 | 0 | 0 | |
Income before income taxes | 125 | 54 | 201 | (31) | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | 0 | 0 | 0 | 0 | |
Interest expense | (85) | (43) | (129) | (13) | |
Financing Receivable, Credit Loss, Expense (Reversal) | 0 | 0 | 0 | 0 | |
Net finance receivables and net investment in operating leases | 0 | 0 | 0 | 0 | |
Total assets | $ 0 | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Guarantor Obligations [Line Items] | ||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments and contingencies primarily consist of guarantees and indemnifications as well as litigation and claims. Guarantees and Indemnifications Guarantees and indemnifications are recorded at fair value at their inception. For financial guarantees, subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. The probability of default is applied to the expected exposure at the time of default less recoveries to determine the expected payments. Factors to consider when estimating the probability of default include the obligor’s financial position, forecasted economic environment, historical loss rates, and other communications. For non-financial guarantees, we regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the amount of probable payment is recorded. The maximum potential payments under these guarantees and limited indemnities totaled $102 million and $92 million at December 31, 2021 and June 30, 2022, respectively. Of these values, $19 million and $17 million at December 31, 2021 and June 30, 2022, respectively, were counter-guaranteed by Ford to us. There were no recorded liabilities related to guarantees and limited indemnities at December 31, 2021 or June 30, 2022. In some cases, we have guaranteed debt and other financial obligations of outside third parties and unconsolidated affiliates, including Ford. Expiration dates vary, and guarantees will terminate on payment and/or cancellation of the underlying obligation. A payment by us would be triggered by the failure of the third party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from a third party amounts paid by us under the guarantee. However, our ability to enforce these rights is sometimes stayed until the guaranteed party is paid in full and may be limited in the event of insolvency of the third party or other circumstances. In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction. These indemnifications might include and are not limited to claims relating to any of the following: environmental, tax, and shareholder matters; intellectual property rights; governmental regulations and employment-related matters; dealer and other commercial contractual relationships; and financial matters, such as securitizations. Performance under these indemnities generally would be triggered by a breach of the contract brought by a counterparty or a third-party claim. While some of these indemnifications are limited in nature, many of them do not limit potential payment. Therefore, we are unable to estimate a maximum amount of future payments that could result from claims made under these unlimited indemnities. Litigation and Claims Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include, but are not limited to, matters arising out of governmental regulations; tax matters; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer and other contractual relationships; personal injury matters; investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages in very large amounts, sanctions, assessments, or other relief, which, if granted, would require very large expenditures. The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome. We accrue for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time. NOTE 13. COMMITMENTS AND CONTINGENCIES (Continued) For nearly all matters where our historical experience with similar matters is of limited value (i.e., “non-pattern matters”), we evaluate the matters primarily based on the individual facts and circumstances. For non-pattern matters, we evaluate whether there is a reasonable possibility of a material loss in excess of any accrual that can be estimated. It is reasonably possible that some of the matters for which accruals have not been established could be decided unfavorably and could require us to pay damages or make other expenditures. We do not reasonably expect, based on our analysis, that such matters would have a material effect on future financial statements for a particular year, although such an outcome is possible. | |
Financial Guarantee [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 92 | $ 102 |
Counter Guarantee [Member] | Ford Motor Company [Member] | ||
Guarantor Obligations [Line Items] | ||
Counter guarantee | $ 17 | $ 19 |