Document and Entity Information
Document and Entity Information Document | 6 Months Ended |
Jun. 30, 2019shares | |
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 |
Document Period End Date | Jun. 30, 2019 |
Entity File Number | 1-6368 |
Document Fiscal Year Focus | 2019 |
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 |
F/20S [Member] | |
Trading Symbol | F/20S |
Security Exchange Name | NYSE |
Title of 12(b) Security | 3.588% Notes due June 2, 2020 |
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/19A [Member] | |
Trading Symbol | F/19A |
Security Exchange Name | NYSE |
Title of 12(b) Security | Floating Rate Notes due December 12, 2019* |
F/19C [Member] | |
Trading Symbol | F/19C |
Security Exchange Name | NYSE |
Title of 12(b) Security | Floating Rate Notes due December 16, 2019* |
F/21C [Member] | |
Trading Symbol | F/21C |
Security Exchange Name | NYSE |
Title of 12(b) Security | Floating Rate Notes due May 14, 2021* |
F/24L [Member] | |
Trading Symbol | F/24L |
Security Exchange Name | NYSE |
Title of 12(b) Security | Floating Rate Notes due December 1, 2021* |
F/21AQ [Member] | |
Trading Symbol | F/21AQ |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing revenue | ||||
Operating leases | $ 1,472 | $ 1,443 | $ 2,949 | $ 2,858 |
Retail financing | 987 | 959 | 1,971 | 1,907 |
Dealer financing | 596 | 569 | 1,204 | 1,105 |
Other | 26 | 20 | 50 | 42 |
Revenue from Contract with Customer, Excluding Assessed Tax | 3,081 | 2,991 | 6,174 | 5,912 |
Depreciation on vehicles subject to operating leases | (894) | (986) | (1,818) | (2,039) |
Interest expense | (1,114) | (997) | (2,235) | (1,909) |
Net financing margin | 1,073 | 1,008 | 2,121 | 1,964 |
Other revenue | ||||
Insurance premiums earned | 46 | 43 | 93 | 84 |
Fee based revenue and other | 61 | 65 | 115 | 123 |
Total financing margin and other revenue | 1,180 | 1,116 | 2,329 | 2,171 |
Operating expenses | 350 | 357 | 714 | 702 |
Provision for credit losses | 63 | 69 | 96 | 163 |
Insurance expenses | 60 | 46 | 70 | 58 |
Total expenses | 473 | 472 | 880 | 923 |
Other income, net | 124 | 1 | 183 | 38 |
Income before income taxes | 831 | 645 | 1,632 | 1,286 |
Provision for income taxes | 218 | 166 | 416 | 106 |
Net income | $ 613 | $ 479 | $ 1,216 | $ 1,180 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income | $ 613 | $ 479 | $ 1,216 | $ 1,180 |
Other comprehensive income/(loss), net of tax | ||||
Foreign currency translation | 8 | (364) | 28 | (251) |
Other Comprehensive Income (Loss), Net of Tax | 8 | (364) | ||
Comprehensive income / (loss) | $ 621 | $ 115 | $ 1,244 | $ 929 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 12,618 | $ 9,607 |
Marketable securities | 2,247 | 1,308 |
Finance receivables, net | 115,741 | 118,814 |
Net Investment in operating leases | 27,738 | 27,449 |
Notes and accounts receivable from affiliated companies | 935 | 905 |
Derivative financial instruments | 1,186 | 670 |
Other assets | 3,553 | 3,456 |
Total assets | 164,018 | 162,209 |
Liabilities | ||
Accounts Payable, Trade | 1,067 | 1,097 |
Affiliated companies | 885 | 426 |
Accounts Payable and Accrued Liabilities | 1,952 | 1,523 |
Debt | 141,470 | 140,146 |
Deferred income taxes | 2,669 | 2,595 |
Derivative financial instruments | 477 | 663 |
Other liabilities and deferred income | 2,556 | 2,307 |
Total liabilities | 149,124 | 147,234 |
Shareholder's interest | ||
Stockholders' Equity Attributable to Parent | 5,227 | 5,227 |
Accumulated other comprehensive income | (801) | (829) |
Retained earnings | 10,468 | 10,577 |
Total shareholder’s interest | 14,894 | 14,975 |
Total liabilities and shareholder's interest | 164,018 | 162,209 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
ASSETS | ||
Cash and cash equivalents | 3,719 | 2,728 |
Finance receivables, net | 58,118 | 58,662 |
Net Investment in operating leases | 13,986 | 16,332 |
Derivative financial instruments | 8 | 27 |
Liabilities | ||
Debt | 51,791 | 53,269 |
Derivative financial instruments | 62 | 24 |
Retail Installment loans, dealer financing, and other financing [Domain] [Member] | ||
ASSETS | ||
Finance receivables, net | 107,119 | 110,388 |
Loans and Finance Receivables [Member] | ||
ASSETS | ||
Finance receivables, net | $ 8,622 | $ 8,426 |
Consolidated Statement of Share
Consolidated Statement of Shareholder's Interest - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 14,894 | $ 14,923 | $ 15,350 | $ 15,685 | $ 14,894 | $ 15,350 |
Shareholder's Interest [Roll Forward] | ||||||
Balance at beginning of period | 5,227 | 5,227 | ||||
Net income | 613 | 603 | 479 | 701 | 1,216 | 1,180 |
Other Comprehensive Income (Loss), Net of Tax | 8 | 20 | (364) | 113 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 8 | (364) | 28 | (251) | ||
Distributions declared | (650) | (675) | (450) | (1,013) | ||
Balance at end of period | 5,227 | 5,227 | ||||
Shareholder's Interest [Member] | ||||||
Shareholder's Interest [Roll Forward] | ||||||
Balance at beginning of period | 5,227 | 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 | ||
Balance at end of period | 5,227 | 5,227 | 5,227 | 5,227 | 5,227 | 5,227 |
Accumulated Other Comprehensive Income/(Loss) (Note11) [Member] | ||||||
Shareholder's Interest [Roll Forward] | ||||||
Balance at beginning of period | (809) | (829) | (306) | (419) | (829) | (419) |
Net income | 0 | 0 | 0 | 0 | ||
Other Comprehensive Income (Loss), Net of Tax | 8 | 20 | 113 | |||
Distributions declared | 0 | 0 | 0 | 0 | ||
Balance at end of period | (801) | (809) | (670) | (306) | (801) | (670) |
Retained Earnings [Member] | ||||||
Shareholder's Interest [Roll Forward] | ||||||
Balance at beginning of period | 10,505 | 10,577 | 10,764 | 11,076 | 10,577 | 11,076 |
Net income | 613 | 603 | 701 | |||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | 0 | ||
Distributions declared | (650) | (675) | (450) | (1,013) | ||
Balance at end of period | $ 10,468 | $ 10,505 | $ 10,793 | $ 10,764 | $ 10,468 | $ 10,793 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Net Cash Provided by (Used in) Operating Activities | $ 2,909 | $ 2,986 |
Cash flows from investing activities | ||
Purchases of finance receivables | (17,770) | (22,494) |
Principal collections of finance receivables | 20,888 | 21,659 |
Purchases of operating lease vehicles | (6,500) | (7,537) |
Proceeds From Liquidations of Operating Lease Vehicles | 4,734 | 4,816 |
Net change in wholesale receivables and other | 896 | (130) |
Purchases of marketable securities | (2,099) | (2,821) |
Proceeds from sales and maturities of marketable securities | 1,183 | 3,368 |
Settlements of derivatives | 23 | 156 |
All other investing activities | (24) | 131 |
Net Cash Provided by (Used in) Investing Activities | 1,331 | (2,852) |
Cash flows from financing activities | ||
Proceeds from issuances of long-term debt | 24,983 | 27,959 |
Principal payments on long-term debt | (24,298) | (24,792) |
Change in short-term debt, net | (565) | (2,093) |
Cash distributions to parent | (1,325) | (1,463) |
All other financing activities | (64) | (50) |
Net Cash Provided by (Used in) Financing Activities | (1,269) | (439) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 24 | (152) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at January 1 | 9,747 | 9,682 |
Net increase/(decrease) in cash, cash equivalents, and restricted cash | 2,995 | (457) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at March 31 | $ 12,742 | $ 9,225 |
Presentation
Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Presentation | PRESENTATION Principles of Consolidation The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information, and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited financial statements include all adjustments considered necessary for a fair statement of the results of operations and financial condition for interim periods for Ford Motor Credit Company LLC, its consolidated subsidiaries and consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Results for interim periods should not be considered indicative of results for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Form 10-K Report”). We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation. Restructuring and Other Actions During the first six months of 2019, we continued to execute separation and restructuring actions associated with our plans to transform the operational fitness of our business. |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES Provision for Income Taxes For interim tax reporting we estimate one single effective tax rate, which is applied to the year-to-date ordinary income / (loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. Adoption of New Accounting Standards Accounting Standards Update (“ASU”) 2016-02, Leases . On January 1, 2019, we adopted the Accounting Standards Codification 842, Leases, and all the related amendments (“new lease standard”) to contracts using the modified retrospective method. The comparative information has not been restated and continues to be reported under the lease accounting standard in effect for those periods. Adoption of the standard as a lessor did not significantly impact our financial statements. As a lessee, it added about $100 million of right-of-use assets and lease obligations to our consolidated balance sheet and did not significantly impact our income statement. We do not expect the adoption of the new lease standard to have a significant impact to our net income on an ongoing basis. We elected the practical expedients permitted under the transition guidance of the new standard that retained the lease classification and initial direct costs for any leases that existed prior to adoption of the standard. We did not reassess whether any contracts entered into prior to adoption are leases or contain leases. We also adopted the following ASUs during 2019 , none of which had a material impact to our financial statements or financial statement disclosures: ASU Effective Date 2018-16 Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes January 1, 2019 2018-08 Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made January 1, 2019 NOTE 2. ACCOUNTING POLICIES (Continued) Accounting Standards Issued But Not Yet Adopted The following standard is expected to result in a significant change in practice to Ford Credit. ASU 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments . In June 2016, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard which replaces the current incurred loss impairment method with a method that reflects expected credit losses. We plan to adopt the new standard and the related amendments on the effective date of January 1, 2020 by recognizing the cumulative effect of initially applying the new standard as an adjustment to the opening balance of Retained earnings . We anticipate adoption will increase the amount of expected credit losses reported in Finance receivables, net on our consolidated balance sheet and do not expect a material impact to our income statement . Change in Accounting Method As of January 1, 2019, we changed our accounting method for reporting early termination losses related to customer defaults on operating leases. See Note 5 for additional information. |
Cash, Cash Equivalents, and Mar
Cash, Cash Equivalents, and Marketable Securities | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES | CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES The following table categorizes the fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis (in millions): Fair Value Level December 31, 2018 June 30, 2019 Cash and cash equivalents U.S. government 1 $ 139 $ 575 U.S. government and agencies 2 25 849 Non-U.S. government and agencies 2 114 875 Corporate debt 2 884 907 Total marketable securities classified as cash equivalents 1,162 3,206 Cash, time deposits and money market funds 8,445 9,412 Total cash and cash equivalents $ 9,607 $ 12,618 Marketable securities U.S. government 1 $ 289 $ 338 U.S. government and agencies 2 65 135 Non-U.S. government and agencies 2 610 1,349 Corporate debt 2 198 200 Other marketable securities 2 146 225 Total marketable securities $ 1,308 $ 2,247 Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash as reported in the statement of cash flows are presented separately on our consolidated balance sheet as follows (in millions): December 31, 2018 June 30, 2019 Cash and cash equivalents $ 9,607 $ 12,618 Restricted cash included in other assets (a) 140 124 Total cash, cash equivalents, and restricted cash $ 9,747 $ 12,742 __________ (a) Restricted cash primarily includes cash held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of certain contractual agreements. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions. |
Finance Receivables
Finance Receivables | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Financing Receivables | FINANCE RECEIVABLES We manage finance receivables as “consumer” and “non-consumer” portfolios. The receivables are generally secured by the vehicles, inventory, or other property being financed. Finance receivables, net were as follows (in millions): December 31, 2018 June 30, 2019 Consumer Retail installment contracts, gross $ 70,999 $ 68,846 Finance leases, gross 8,748 8,984 Retail financing, gross 79,747 77,830 Unearned interest supplements from Ford and affiliated companies (3,508 ) (3,512 ) Consumer finance receivables 76,239 74,318 Non-Consumer Dealer financing 40,996 40,144 Other financing 2,168 1,792 Non-Consumer finance receivables 43,164 41,936 Total recorded investment $ 119,403 $ 116,254 Recorded investment in finance receivables $ 119,403 $ 116,254 Allowance for credit losses (589 ) (513 ) Finance receivables, net $ 118,814 $ 115,741 Net finance receivables subject to fair value (a) $ 110,388 $ 107,119 Fair value (b) 109,794 107,251 __________ (a) Net finance receivables subject to fair value exclude finance leases. Previously, certain consumer financing products in Europe were classified as retail installment contracts. We now classify these products as finance leases. Comparative information has been revised to reflect this change. (b) The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy. At December 31, 2018 and June 30, 2019 , accrued uncollected interest was $264 million and $263 million , respectively, which we report in Other assets on our balance sheet. Included in recorded investment in finance receivables at December 31, 2018 and June 30, 2019 were consumer receivables of $40.7 billion and $39.3 billion , respectively, and non-consumer receivables of $25.7 billion and $ 25.1 billion , respectively, that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. The receivables are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions; they are not available to pay the other obligations or the claims of Ford Credit’s other creditors. Ford Credit holds the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions (see Note 7 for additional information). Finance Leases Finance leases are comprised of sales-type and direct financing leases. We offer finance leases to individuals, leasing companies, government entities, daily rental companies, and fleet customers. These financings include primarily lease plans for terms of 24 to 60 months. In limited cases, a customer may extend the lease term. Early terminations of leases may also occur at the customer’s request subject to our approval. We offer financing products in which the customer may be required to pay any shortfall, or may receive as payment any excess amount between the fair market value and the contractual vehicle value at the end of the term, which are classified as finance leases. In some markets, we finance a vehicle with a series of monthly payments followed by a single balloon payment or the option for the customer to return the vehicle to Ford Credit; these arrangements containing a purchase option are classified as finance leases. NOTE 4. FINANCE RECEIVABLES (Continued) The amounts contractually due on finance lease receivables were as follows (in millions): June 30, Within one year $ 2,075 After one year and within two years 2,006 After two years and within three years 1,599 After three years and within four years 708 After four years and within five years 120 After five years 2 Total future cash payments 6,510 Less: Present value discount (313 ) Finance lease receivables $ 6,197 The reconciliation from finance lease receivables to finance leases, gross and finance leases, net is as follows (in millions): June 30, Finance lease receivables $ 6,197 Unguaranteed residual assets 2,661 Initial direct costs 126 Finance leases, gross 8,984 Unearned interest supplements from Ford and affiliated companies (345 ) Allowance for credit losses (17 ) Finance leases, net $ 8,622 Financing revenue from finance leases for the second quarter of 2018 and 2019 was $ 95 million and $ 97 million , respectively, and for the first half of 2018 and 2019 was $190 million and $189 million , respectively. Financing revenue from finance leases is included in Retail financing on the income statement. Revenue is recognized using the interest method and includes the accretion of certain direct origination costs that are deferred and interest supplements received from Ford and affiliated companies. NOTE 4. FINANCE RECEIVABLES (Continued) Aging For all finance receivables, we define “past due” as any payment, including principal and interest, that is at least 31 days past the contractual due date. The recorded investment of consumer receivables greater than 90 days past due and still accruing interest was $20 million at December 31, 2018 . At June 30, 2019, there were no balances greater than 90 days past due for which we are still accruing interest. The aging analysis of our finance receivables balances was as follows (in millions): December 31, 2018 June 30, Consumer 31-60 days past due $ 859 $ 662 61-90 days past due 123 103 91-120 days past due 39 31 Greater than 120 days past due 39 39 Total past due 1,060 835 Current 75,179 73,483 Consumer finance receivables 76,239 74,318 Non-Consumer Total past due 76 70 Current 43,088 41,866 Non-Consumer finance receivables 43,164 41,936 Total recorded investment $ 119,403 $ 116,254 Credit Quality Consumer Portfolio. Credit quality ratings for consumer receivables are based on our aging analysis. Consumer receivables credit quality ratings are as follows: • Pass – current to 60 days past due; • Special Mention – 61 to 120 days past due and in intensified collection status; and • Substandard – greater than 120 days past due and for which the uncollectible portion of the receivables has already been charged off, as measured using the fair value of collateral less costs to sell. Non-Consumer Portfolio. Dealers are assigned to one of four groups according to risk ratings as follows: • Group I – strong to superior financial metrics; • Group II – fair to favorable financial metrics; • Group III – marginal to weak financial metrics; and • Group IV – poor financial metrics, including dealers classified as uncollectible. The credit quality analysis of dealer financing receivables was as follows (in millions): December 31, 2018 June 30, Dealer financing Group I $ 33,656 $ 32,541 Group II 5,635 6,020 Group III 1,576 1,468 Group IV 129 115 Total recorded investment $ 40,996 $ 40,144 NOTE 4. FINANCE RECEIVABLES (Continued) Impaired Receivables Impaired consumer receivables include accounts that have been rewritten or modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code that are considered to be Troubled Debt Restructurings (“TDRs”), as well as all accounts greater than 120 days past due. Impaired non-consumer receivables represent accounts with dealers that have weak or poor financial metrics or dealer financing that has been modified in TDRs. The recorded investment of consumer receivables that were impaired at December 31, 2018 and June 30, 2019 was $370 million and $337 million , or 0.5% and 0.5% of consumer receivables, respectively. The recorded investment of non-consumer receivables that were impaired at December 31, 2018 and June 30, 2019 was $129 million and $115 million , or 0.3% and 0.3% of non-consumer receivables, respectively. Impaired finance receivables are evaluated both collectively and specifically. The accrual of revenue is discontinued at the time a receivable is determined to be uncollectible. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance. |
Net Investments in Operating Le
Net Investments in Operating Leases | 6 Months Ended |
Jun. 30, 2019 | |
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 . Payment extensions may be requested by the customer and are generally limited to a maximum of six months over the term of the lease. Term extensions may also be requested by the customer. Term and payment extensions in total generally do not exceed twelve months. A lease can be terminated at any time by satisfying the obligations under the lease agreement. Early termination programs may be occasionally offered to eligible lessees. At the end of the lease, the customer returns the vehicle to the dealer or may have the option to buy the leased vehicle. In the case of a contract default and repossession, the customer typically remains liable for any deficiency between net auction proceeds and the defaulted contract obligations, including any repossession-related expenses. Accumulated depreciation reduces the value of the vehicles from their initial acquisition value to their expected residual value at the end of the lease, with the associated depreciation expense recognized on a straight-line basis over the term of the lease. At the time of purchase, we establish the expected residual value for the vehicle based on recent auction values, return volumes for our leased vehicles, industry-wide used vehicle prices, marketing incentive plans, and vehicle quality data. We monitor residual values each month and review the accuracy of our accumulated depreciation on a quarterly basis. Change in Accounting Method . As of January 1, 2019, we changed our accounting method for reporting early termination losses related to customer defaults on operating leases. Prior to the first quarter of 2019, we presented the early termination loss reserve on operating leases due to customer default events as part of the allowance for credit losses which reduces Net investment in operating leases on the balance sheet. On the income statement, the incurred losses were included in Provision for credit losses . We now consider the effects of operating lease early terminations when determining depreciation estimates, which are included as part of accumulated depreciation within Net investment in operating leases on the balance sheet, and Depreciation on vehicles subject to operating leases on the income statement. In conjunction with the January 1, 2019 adoption of ASU 2016-02, Leases (described in Note 2), we reviewed our leasing-related accounting policies and updated our depreciation policy for operating leases so that the useful life of the vehicles incorporates our historical experience on early terminations due to customer defaults. We believe this change in accounting method is preferable as the characterization of these changes is better reflected as depreciation. At December 31, 2018, this reclassification increased accumulated depreciation and decreased allowance for credit losses by $ 78 million , respectively, and had no impact on Net Investment in operating leases . On the income statement, this reclassification increased Depreciation on vehicles subject to operating leases and decreased Provision for credit losses by $ 23 million and $ 48 million , for the second quarter of 2018 and first half of 2018, respectively. These changes had no impact on Income before income taxes, Net investment in operating leases, Retained earnings, or to the Net cash provided by / (used in) operating activities . We have reclassified prior period amounts to reflect the above changes. Net investment in operating leases were as follows (in millions): December 31, June 30, Vehicles, at cost (a) $ 33,593 $ 33,632 Accumulated depreciation (6,144 ) (5,894 ) Net investment in operating leases $ 27,449 $ 27,738 __________ (a) Includes interest supplements and residual support payments we receive on certain leasing transactions under agreements with Ford and affiliated companies, and other vehicle acquisition costs. We recognize these upfront collections from Ford and other vehicle acquisition costs as part of Net investment in operating leases , which are amortized to Depreciation on vehicles subject to operating leases over the term of the lease contract. NOTE 5. NET INVESTMENT IN OPERATING LEASES (Continued) At December 31, 2018 and June 30, 2019 , Net investment in operating leases includes $16.3 billion and $14.0 billion, respectively, that have been included in securitization transactions but continue to be reported in our consolidated financial statements. These net investments in operating leases are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions; they are not available to pay our other obligations or the claims of our other creditors. We hold the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions (see Note 7 for additional information). The amounts contractually due for minimum rentals on operating leases at December 31, 2018 were as follows (in millions): 2019 2020 2021 2022 2023 Total Minimum rentals on operating leases $ 4,708 $ 2,929 $ 1,083 $ 83 $ 6 $ 8,809 The amounts contractually due on our operating leases at June 30, 2019 were as follows (in millions): Within 1 year After 1 year and within 2 years After 2 years and within 3 years After 3 years and within 4 years After 4 years and within 5 years Total Operating lease payments $ 4,746 $ 2,940 $ 1,029 $ 73 $ 5 $ 8,793 |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2019 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |
ALLOWANCE FOR CREDIT LOSSES | ALLOWANCE FOR CREDIT LOSSES An analysis of the allowance for credit losses related to finance receivables for the periods ended June 30 was as follows (in millions): Second Quarter 2018 Consumer Non-Consumer Total Allowance Allowance for credit losses Beginning balance $ 584 $ 16 $ 600 Charge-offs (123 ) (1 ) (124 ) Recoveries 47 1 48 Provision for credit losses 72 (2 ) 70 Other (7 ) — (7 ) Ending balance $ 573 $ 14 $ 587 First Half 2018 Consumer Non-Consumer Total Allowance Allowance for credit losses Beginning balance $ 582 $ 15 $ 597 Charge-offs (254 ) (3 ) (257 ) Recoveries 86 2 88 Provision for credit losses 164 — 164 Other (5 ) — (5 ) Ending balance $ 573 $ 14 $ 587 Analysis of ending balance of allowance for credit losses Collective impairment allowance $ 552 $ 13 $ 565 Specific impairment allowance 21 1 22 Ending balance 573 14 587 Analysis of ending balance of finance receivables Collectively evaluated for impairment $ 75,338 $ 40,668 $ 116,006 Specifically evaluated for impairment 378 96 474 Recorded investment 75,716 40,764 116,480 Ending balance, net of allowance for credit losses $ 75,143 $ 40,750 $ 115,893 NOTE 6. ALLOWANCE FOR CREDIT LOSSES ( Continued) Second Quarter 2019 Consumer Non-Consumer Total Allowance Allowance for credit losses Beginning balance $ 496 $ 17 $ 513 Charge-offs (117 ) — (117 ) Recoveries 45 6 51 Provision for credit losses 70 (7 ) 63 Other 2 1 3 Ending balance $ 496 $ 17 $ 513 First Half 2019 Consumer Non-Consumer Total Allowance Allowance for credit losses Beginning balance $ 566 $ 23 $ 589 Charge-offs (254 ) (17 ) (271 ) Recoveries 88 8 96 Provision for credit losses 94 2 96 Other 2 1 3 Ending balance $ 496 $ 17 $ 513 Analysis of ending balance of allowance for credit losses Collective impairment allowance $ 477 $ 16 $ 493 Specific impairment allowance 19 1 20 Ending balance 496 17 513 Analysis of ending balance of finance receivables Collectively evaluated for impairment $ 73,981 $ 41,821 $ 115,802 Specifically evaluated for impairment 337 115 452 Recorded investment 74,318 41,936 116,254 Ending balance, net of allowance for credit losses $ 73,822 $ 41,919 $ 115,741 |
Transfers of Receivables
Transfers of Receivables | 6 Months Ended |
Jun. 30, 2019 | |
Transfers and Servicing [Abstract] | |
TRANSFERS OF RECEIVABLES | TRANSFERS OF RECEIVABLES We securitize finance receivables and net investment in operating leases through a variety of programs using amortizing, variable funding, and revolving structures. We also sell finance receivables in structured financing transactions. Due to the similarities between securitization and structured financing, we refer to structured financings as securitization transactions. Our securitization programs are targeted to institutional investors in both public and private transactions in capital markets primarily in the United States, Canada, the United Kingdom, Germany and China. We engage in securitization transactions to fund operations and to maintain liquidity. Our securitization transactions are recorded as asset-backed debt and the associated assets are not derecognized and continue to be included in our financial statements. The finance receivables sold for legal purposes and net investment in operating leases included in securitization transactions are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. They are not available to pay our other obligations or the claims of our other creditors. We hold the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. The debt is the obligation of our consolidated securitization entities and not the obligation of Ford Credit or our other subsidiaries. Most of these securitization transactions utilize VIEs. See Note 8 for additional information concerning VIEs. The following tables show the assets and debt related to our securitization transactions that were included in our financial statements (in billions): December 31, 2018 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt (c) Before Allowance Allowance for After Allowance VIE (b) Retail financing $ 1.9 $ 34.0 $ 0.2 $ 33.8 $ 29.2 Wholesale financing 0.3 24.9 — 24.9 13.9 Finance receivables 2.2 58.9 0.2 58.7 43.1 Net investment in operating leases 0.5 16.3 — 16.3 10.2 Total VIE $ 2.7 $ 75.2 $ 0.2 $ 75.0 $ 53.3 Non-VIE Retail financing $ 0.3 $ 6.7 $ — $ 6.7 $ 5.9 Wholesale financing — 0.8 — 0.8 0.6 Finance receivables 0.3 7.5 — 7.5 6.5 Net investment in operating leases — — — — — Total Non-VIE $ 0.3 $ 7.5 $ — $ 7.5 $ 6.5 Total securitization transactions Retail financing $ 2.2 $ 40.7 $ 0.2 $ 40.5 $ 35.1 Wholesale financing 0.3 25.7 — 25.7 14.5 Finance receivables 2.5 66.4 0.2 66.2 49.6 Net investment in operating leases 0.5 16.3 — 16.3 10.2 Total securitization transactions $ 3.0 $ 82.7 $ 0.2 $ 82.5 $ 59.8 __________ (a) Unearned interest supplements and residual support are excluded from securitization transactions. (b) Includes assets to be used to settle the liabilities of the consolidated VIEs. (c) Includes unamortized discount and debt issuance costs. NOTE 7. TRANSFERS OF RECEIVABLES (Continued) June 30, 2019 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt (c) Before Allowance for Credit Losses Allowance for Credit Losses After Allowance for Credit Losses VIE (b) Retail financing $ 1.9 $ 34.1 $ 0.2 $ 33.9 $ 29.5 Wholesale financing 1.2 24.2 — 24.2 13.6 Finance receivables 3.1 58.3 0.2 58.1 43.1 Net investment in operating leases 0.6 14.0 — 14.0 8.7 Total VIE $ 3.7 $ 72.3 $ 0.2 $ 72.1 $ 51.8 Non-VIE Retail financing $ 0.3 $ 5.2 $ — $ 5.2 $ 4.6 Wholesale financing — 0.9 — 0.9 0.6 Finance receivables 0.3 6.1 — 6.1 5.2 Net investment in operating leases — — — — — Total Non-VIE $ 0.3 $ 6.1 $ — $ 6.1 $ 5.2 Total securitization transactions Retail financing $ 2.2 $ 39.3 $ 0.2 $ 39.1 $ 34.1 Wholesale financing 1.2 25.1 — 25.1 14.2 Finance receivables 3.4 64.4 0.2 64.2 48.3 Net investment in operating leases 0.6 14.0 — 14.0 8.7 Total securitization transactions $ 4.0 $ 78.4 $ 0.2 $ 78.2 $ 57.0 __________ (a) Unearned interest supplements and residual support are excluded from securitization transactions. (b) Includes assets to be used to settle the liabilities of the consolidated VIEs. (c) Includes unamortized discount and debt issuance cost. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES We use special purpose entities to issue asset-backed securities in transactions to public and private investors. We have deemed most of these special purpose entities to be VIEs of which we are the primary beneficiary. The asset-backed securities are backed by finance receivables and interests in net investments in operating leases. The assets continue to be consolidated by us. We retain interests in our securitization VIEs, including subordinated securities issued by the VIEs, rights to cash held for the benefit of the securitization investors, and rights to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. We have no obligation to repurchase or replace any securitized asset that subsequently becomes delinquent in payment or otherwise is in default, except when representations and warranties about the eligibility of the securitized assets are breached, or when certain changes are made to the underlying asset contracts. Securitization investors have no recourse to us or our other assets and have no right to require us to repurchase the investments. We generally have no obligation to provide liquidity or contribute cash or additional assets to the VIEs and do not guarantee any asset-backed securities. We may be required to support the performance of certain securitization transactions, however, by increasing cash reserves. See Note 7 for additional information on the financial position and financial performance of our VIEs and Note 9 for additional information regarding derivatives. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES In the normal course of business, our operations are exposed to global market risks, including the effect of changes in interest rates and foreign currency exchange rates. To manage these risks, we enter into highly effective derivative contracts. We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting. Income Effect of Derivative Financial Instruments The gains / (losses), by hedge designation, reported in income for the periods ended June 30 were as follows (in millions): Second Quarter First Half 2018 2019 2018 2019 Fair value hedges Interest rate contracts Net interest settlements and accruals on hedging instruments $ (2 ) $ (12 ) $ 24 $ (32 ) Fair value changes on hedging instruments (90 ) 474 (429 ) 724 Fair value changes on hedged debt 82 (463 ) 411 (716 ) Derivatives not designated as hedging instruments Interest rate contracts (20 ) (3 ) (37 ) (30 ) Foreign currency exchange contracts (a) 110 40 98 34 Cross-currency interest rate swap contracts (125 ) 141 (183 ) (4 ) Total $ (45 ) $ 177 $ (116 ) $ (24 ) __________ (a) Reflects forward contracts between Ford Credit and an affiliated company. NOTE 9. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued) Balance Sheet Effect of Derivative Financial Instruments Derivative assets and liabilities are reported on the balance sheet at fair value and are presented on a gross basis. The notional amounts of the derivative instruments do not necessarily represent amounts exchanged by the parties and are not a direct measure of our financial exposure. We also enter into master agreements with counterparties that may allow for netting of exposures in the event of default or breach of the counterparty agreement. Collateral represents cash received or paid under reciprocal arrangements that we have entered into with our derivative counterparties which we do not use to offset our derivative assets and liabilities. The fair value of our derivative instruments and the associated notional amounts, presented gross, were as follows (in millions): December 31, 2018 June 30, 2019 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Fair value hedges Interest rate contracts $ 22,989 $ 158 $ 208 $ 25,308 $ 687 $ 13 Derivatives not designated as hedging instruments Interest rate contracts 76,904 235 274 63,877 255 270 Foreign currency exchange contracts 4,318 45 24 4,371 16 31 Cross-currency interest rate swap contracts 5,235 232 157 7,879 228 163 Total derivative financial instruments, gross (a) (b) $ 109,446 $ 670 $ 663 $ 101,435 $ 1,186 $ 477 __________ (a) At December 31, 2018 and June 30, 2019 , we held collateral of $19 million and $24 million , respectively, and we posted collateral of $59 million and $85 million , respectively. (b) At December 31, 2018 and June 30, 2019 , the fair value of assets and liabilities available for counterparty netting was $233 million and $190 |
Other Assets and Other Liabilit
Other Assets and Other Liabilities and Deferred Income | 6 Months Ended |
Jun. 30, 2019 | |
Other Assets and Other Liabilities and Deferred Income [Abstract] | |
OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED INCOME | OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED REVENUE Other assets and other liabilities and deferred revenue consist of various balance sheet items that are combined for financial statement presentation due to their respective materiality compared with other individual asset and liability items. Other assets were as follows (in millions): December 31, June 30, Accrued interest and other non-finance receivables $ 1,080 $ 1,155 Collateral held for resale, at net realizable value, and other inventory 877 742 Prepaid reinsurance premiums and other reinsurance recoverables 658 675 Property and equipment, net of accumulated depreciation (a) 192 200 Deferred charges - income taxes 216 193 Deferred charges 96 133 Investment in non-consolidated affiliates 123 130 Restricted cash 140 124 Operating lease assets — 93 Other 74 108 Total other assets $ 3,456 $ 3,553 __________ (a) Accumulated depreciation was $367 million and $380 million at December 31, 2018 and June 30, 2019 , respectively. Other liabilities and deferred revenue were as follows (in millions): December 31, June 30, Interest payable $ 752 $ 796 Unearned insurance premiums and fees 775 794 Income tax and related interest (a) 369 491 Deferred revenue 113 130 Operating lease liabilities — 95 Payroll and employee benefits 70 52 Other 228 198 Total other liabilities and deferred revenue $ 2,307 $ 2,556 __________ (a) Includes tax and interest payable to affiliated companies of $ 193 million and $ 331 million at December 31, 2018 and June 30, 2019 , respectively. We have investments in entities for which we do not have the ability to exercise significant influence and fair values are not readily available. We have elected to record these investments at cost (less impairment, if any), adjusted for changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. We report the carrying value of these investments in Other assets in our consolidated balance sheet. These investments were $ 9 million and $8 million at December 31, 2018 and June 30, 2019 , respectively. There were no material adjustments to the fair values of these investments during the period ending June 30, 2019 . Deferred revenue balances presented above include amounts from contracts with customers primarily related to admission fee revenue on group financing products available in Argentina and were $87 million and $81 million at December 31, 2018 and June 30, 2019 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | DEBT Debt outstanding and interest rates were as follows (in millions): Interest Rates Debt Average Contractual Average Effective December 31, June 30, 2018 2019 2018 2019 Short-term debt Unsecured debt Floating rate demand notes $ 5,880 $ 6,146 Commercial paper 3,749 3,832 Other short-term debt 4,213 3,338 Asset-backed debt 943 985 Total short-term debt 14,785 14,301 3.5 % 3.1 % 3.5 % 3.1 % Long-term debt Unsecured debt Notes payable within one year 14,373 13,387 Notes payable after one year 52,409 57,379 Asset-backed debt (a) Notes payable within one year 22,130 22,836 Notes payable after one year 36,844 33,248 Unamortized discount 2 — Unamortized issuance costs (211 ) (224 ) Fair value adjustments (b) (186 ) 543 Total long-term debt 125,361 127,169 2.8 % 3.0 % 2.8 % 3.0 % Total debt $ 140,146 $ 141,470 2.8 % 3.0 % 2.9 % 3.1 % Fair value of debt (c) $ 138,888 $ 142,775 __________ (a) Asset-backed debt issued in securitizations is the obligation of the consolidated securitization entity that issued the debt and is payable only out of collections on the underlying securitized assets and related enhancements. This asset-backed debt is not the obligation of Ford Credit or our other subsidiaries. (b) These adjustments relate to designated fair value hedges. The carrying value of hedged debt was $38.0 billion and $39.4 billion at December 31, 2018 and June 30, 2019 , respectively. (c) The fair value of debt includes $13.8 billion and $13.3 billion of short-term debt at December 31, 2018 and June 30, 2019 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) The changes in the balance of Accumulated Other Comprehensive Income / (Loss) (“AOCI”) attributable to Ford Credit for the periods ended June 30 were as follows (in millions): Second Quarter First Half 2018 2019 2018 2019 Beginning AOCI balance $ (306 ) $ (809 ) $ (419 ) $ (829 ) Net gain / (loss) on foreign currency translation (364 ) 8 (251 ) 28 Ending AOCI balance $ (670 ) $ (801 ) $ (670 ) $ (801 ) |
Other Income, Net
Other Income, Net | 6 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | OTHER INCOME, NET Other income consists of various line items that are combined on the income statement due to their respective materiality compared with other individual income and expense items. The amounts included in Other income, net for the periods ended June 30 were as follows (in millions): Second Quarter First Half 2018 2019 2018 2019 Gains / (Losses) on derivatives $ (35 ) $ 178 $ (122 ) $ — Currency revaluation gains / (losses) (18 ) (147 ) 44 (16 ) Interest and investment income 49 83 $ 91 $ 162 Other 5 10 25 37 Total other income, net $ 1 $ 124 $ 38 $ 183 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We conduct our financing operations directly and indirectly through our subsidiaries and affiliates. We offer substantially similar products and services throughout many different regions, subject to local legal restrictions and market conditions. We segment our business based on geographic regions: the Americas, Europe, and Asia Pacific. Items excluded in assessing segment performance because they are managed at the corporate level, including market valuation adjustments to derivatives and exchange-rate fluctuations on foreign currency-denominated transactions, are reflected in Unallocated Other. The following is a brief description of our segments: • Americas segment – United States, Canada, Mexico, Brazil, and Argentina • Europe segment – European region and South Africa • Asia Pacific segment – China and India NOTE 14. SEGMENT INFORMATION (Continued) Key financial information for our business segments for the periods ended or at June 30 were as follows (in millions): Americas Europe Asia Pacific Total Segments Unallocated Other (a) Total Second Quarter 2018 Total revenue $ 2,661 $ 298 $ 140 $ 3,099 $ — $ 3,099 Income before income taxes 548 103 27 678 (33 ) 645 Other disclosures: Depreciation on vehicles subject to operating leases 983 3 — 986 — 986 Interest expense 830 76 90 996 1 997 Provision for credit losses 61 8 — 69 — 69 Second Quarter 2019 Total revenue $ 2,792 $ 307 $ 89 $ 3,188 $ — $ 3,188 Income before income taxes 608 116 15 739 92 831 Other disclosures: Depreciation on vehicles subject to operating leases 885 9 — 894 — 894 Interest expense 979 86 51 1,116 (2 ) 1,114 Provision for credit losses 54 7 2 63 — 63 First Half 2018 Total revenue $ 5,241 $ 594 $ 284 $ 6,119 $ — $ 6,119 Income before income taxes 1,063 214 73 1,350 (64 ) 1,286 Other disclosures: Depreciation on vehicles subject to operating leases 2,031 8 — 2,039 — 2,039 Interest expense 1,582 148 181 1,911 (2 ) 1,909 Provision for credit losses 147 13 3 163 — 163 Net finance receivables and net investment in operating leases 119,611 25,437 6,405 151,453 (8,246 ) 143,207 Total assets 125,436 27,391 6,784 159,611 — 159,611 First Half 2019 Total revenue $ 5,585 $ 610 $ 187 $ 6,382 $ — $ 6,382 Income before income taxes 1,252 232 49 1,533 99 1,632 Other disclosures: Depreciation on vehicles subject to operating leases 1,797 21 — 1,818 — 1,818 Interest expense 1,951 166 112 2,229 6 2,235 Provision for credit losses 92 12 (8 ) 96 — 96 Net finance receivables and net investment in operating leases 120,486 27,224 4,212 151,922 (8,443 ) 143,479 Total assets 130,735 28,745 4,538 164,018 — 164,018 __________ (a) Net finance receivables and Net investment in operating leases include unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation). |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments and contingencies primarily consist of lease commitments, guarantees and indemnifications, and litigation and claims. Lease Commitments We lease various land, buildings, and equipment under agreements that expire over various contractual periods ranging from less than one year to 11 years. Many of our leases contain one or more options to extend. We include options that we are reasonably certain to exercise in our evaluation of the lease term after considering all relevant economic and financial factors. The leased (“right-of-use”) assets in operating lease arrangements are presented in Other assets on our consolidated balance sheet. We do not separate the non-lease components (e.g., maintenance and operating services) from the lease components to which they relate. Instead, non-lease components are included in the measurement of the lease liabilities. We calculate the initial lease liability as the present value of fixed payments not yet paid using the discount rate implicit in the lease. If the discount rate is not readily determinable, we use our incremental borrowing rate. Operating lease liabilities are reported in Other liabilities and deferred revenue. Variable payments are included in the lease liability if they are based on a market rate or an index (e.g., CPI). Variable payments that do not meet this criterion are expensed as incurred. We have rental commitments for certain land, buildings, and equipment that expire over various contractual periods. Minimum non-cancelable operating lease commitments at December 31, 2018 were as follows (in millions): 2019 2020 2021 2022 2023 Thereafter Total Minimum rentals on operating leases $ 19 $ 14 $ 11 $ 10 $ 9 $ 34 $ 97 The amounts contractually due on our operating lease liabilities at June 30, 2019 were as follows (in millions): Within 1 year After 1 year and within 2 years After 2 years and within 3 years After 3 years and within 4 years After 4 years and within 5 years After 5 years Total Operating lease $ 20 $ 16 $ 13 $ 13 $ 13 $ 32 $ 107 Less: Present value discount (12 ) Total operating lease liabilities $ 95 Operating and variable lease expense for the second quarter and first half of 2019 was $ 5 million and $11 million , respectively. The right-of-use assets obtained in exchange for operating lease liabilities for the second quarter and first half of 2019 was $ 6 million and $17 million , respectively. As of June 30, 2019 , the weighted average remaining lease term for operating leases was seven years and the weighted average remaining discount rate for operating leases was 3.4% . Guarantees and Indemnifications Guarantees and indemnifications are recorded at fair value at their inception. We regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the amount of probable payment is recorded. The maximum potential payments under these guarantees and limited indemnities totaled $34 million at both December 31, 2018 and June 30, 2019 . Of these values, $ 29 million at both December 31, 2018 and June 30, 2019 were counter-guaranteed by Ford to us. There were no recorded liabilities related to guarantees and limited indemnities at December 31, 2018 or June 30, 2019 . NOTE 15. COMMITMENTS AND CONTINGENCIES (Continued) In some cases, we have guaranteed debt and other financial obligations of outside third parties and unconsolidated affiliates, including Ford. Expiration dates vary, and guarantees will terminate on payment and/or cancellation of the underlying obligation. A payment by us would be triggered by failure of the guaranteed party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from a third party amounts paid by us under the guarantee. However, our ability to enforce these rights is sometimes stayed until the guaranteed party is paid in full, and may be limited in the event of insolvency of the third party or other circumstances. In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction. These indemnifications might include and are not limited to claims relating to any of the following: environmental, tax, and shareholder matters; intellectual property rights; governmental regulations and employment-related matters; dealer and other commercial contractual relationships; and financial matters, such as securitizations. Performance under these indemnities generally would be triggered by a breach of terms of the contract or by a third-party claim. While some of these indemnifications are limited in nature, many of them do not limit potential payment. Therefore, we are unable to estimate a maximum amount of future payments that could result from claims made under these unlimited indemnities. Litigation and Claims Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include but are not limited to matters arising out of governmental regulations; tax matters; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer and other contractual relationships; personal injury matters; investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages in very large amounts, sanctions, assessments, or other relief, which, if granted, would require very large expenditures. The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome. We accrue for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time. For nearly all of our matters, where our historical experience with similar matters is of limited value (i.e., “non-pattern matters”), we evaluate the matters primarily based on the individual facts and circumstances. For non-pattern matters, we evaluate whether there is a reasonable possibility of a material loss in excess of any accrual that can be estimated. It is reasonably possible that some of the matters for which accruals have not been established could be decided unfavorably and could require us to pay damages or make other expenditures. On January 9, 2019, FCE Bank plc (“FCE”) received a decision from the Italian Competition Authority, which included an assessment of a fine against FCE in the amount of about $ 50 million . On March 8, 2019, FCE appealed the decision and the fine with the ultimate resolution of the matter potentially taking several years. While we have determined that an adverse outcome is not probable, the reasonably possible loss could be up to the fine amount. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Basis of Accounting and Intercompany Transactions [Abstract] | |
Basis of Accounting and Intercompany Transactions [Policy Text Block] | The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information, and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited financial statements include all adjustments considered necessary for a fair statement of the results of operations and financial condition for interim periods for Ford Motor Credit Company LLC, its consolidated subsidiaries and consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Results for interim periods should not be considered indicative of results for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Form 10-K Report”). We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). |
Reclassifications [Abstract] | |
Comparability of Prior Year Financial Data, Policy [Policy Text Block] | We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation.At December 31, 2018, this reclassification increased accumulated depreciation and decreased allowance for credit losses by $ 78 million , respectively, and had no impact on Net Investment in operating leases . On the income statement, this reclassification increased Depreciation on vehicles subject to operating leases and decreased Provision for credit losses by $ 23 million and $ 48 million , for the second quarter of 2018 and first half of 2018, respectively. These changes had no impact on Income before income taxes, Net investment in operating leases, Retained earnings, or to the Net cash provided by / (used in) operating activities . We have reclassified prior period amounts to reflect the above changes. |
Income Tax, Policy [Policy Text Block] | For interim tax reporting we estimate one single effective tax rate, which is applied to the year-to-date ordinary income / (loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. |
Loans and Leases Receivable Disclosure [Abstract] | |
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | The accrual of revenue is discontinued at the time a receivable is determined to be uncollectible. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance. Impaired consumer receivables include accounts that have been rewritten or modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code that are considered to be Troubled Debt Restructurings (“TDRs”), as well as all accounts greater than 120 days |
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 . Payment extensions may be requested by the customer and are generally limited to a maximum of six months over the term of the lease. Term extensions may also be requested by the customer. Term and payment extensions in total generally do not exceed twelve months. A lease can be terminated at any time by satisfying the obligations under the lease agreement. Early termination programs may be occasionally offered to eligible lessees. At the end of the lease, the customer returns the vehicle to the dealer or may have the option to buy the leased vehicle. In the case of a contract default and repossession, the customer typically remains liable for any deficiency between net auction proceeds and the defaulted contract obligations, including any repossession-related expenses. Accumulated depreciation reduces the value of the vehicles from their initial acquisition value to their expected residual value at the end of the lease, with the associated depreciation expense recognized on a straight-line basis over the term of the lease. At the time of purchase, we establish the expected residual value for the vehicle based on recent auction values, return volumes for our leased vehicles, industry-wide used vehicle prices, marketing incentive plans, and vehicle quality data. We monitor residual values each month and review the accuracy of our accumulated depreciation on a quarterly basis. |
Guarantees and Indemnifications Policies [Policy Text Block] | Guarantees and indemnifications are recorded at fair value at their inception. We regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the amount of probable payment is recorded. |
Net Investments in Operating _2
Net Investments in Operating Leases Loans and Lease Receivable (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Loans and Leases Receivable 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 . Payment extensions may be requested by the customer and are generally limited to a maximum of six months over the term of the lease. Term extensions may also be requested by the customer. Term and payment extensions in total generally do not exceed twelve months. A lease can be terminated at any time by satisfying the obligations under the lease agreement. Early termination programs may be occasionally offered to eligible lessees. At the end of the lease, the customer returns the vehicle to the dealer or may have the option to buy the leased vehicle. In the case of a contract default and repossession, the customer typically remains liable for any deficiency between net auction proceeds and the defaulted contract obligations, including any repossession-related expenses. Accumulated depreciation reduces the value of the vehicles from their initial acquisition value to their expected residual value at the end of the lease, with the associated depreciation expense recognized on a straight-line basis over the term of the lease. At the time of purchase, we establish the expected residual value for the vehicle based on recent auction values, return volumes for our leased vehicles, industry-wide used vehicle prices, marketing incentive plans, and vehicle quality data. We monitor residual values each month and review the accuracy of our accumulated depreciation on a quarterly basis. |
Comparability of Prior Year Financial Data, Policy [Policy Text Block] | We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation.At December 31, 2018, this reclassification increased accumulated depreciation and decreased allowance for credit losses by $ 78 million , respectively, and had no impact on Net Investment in operating leases . On the income statement, this reclassification increased Depreciation on vehicles subject to operating leases and decreased Provision for credit losses by $ 23 million and $ 48 million , for the second quarter of 2018 and first half of 2018, respectively. These changes had no impact on Income before income taxes, Net investment in operating leases, Retained earnings, or to the Net cash provided by / (used in) operating activities . We have reclassified prior period amounts to reflect the above changes. |
Cash, Cash Equivalents, and M_2
Cash, Cash Equivalents, and Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table categorizes the fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis (in millions): Fair Value Level December 31, 2018 June 30, 2019 Cash and cash equivalents U.S. government 1 $ 139 $ 575 U.S. government and agencies 2 25 849 Non-U.S. government and agencies 2 114 875 Corporate debt 2 884 907 Total marketable securities classified as cash equivalents 1,162 3,206 Cash, time deposits and money market funds 8,445 9,412 Total cash and cash equivalents $ 9,607 $ 12,618 Marketable securities U.S. government 1 $ 289 $ 338 U.S. government and agencies 2 65 135 Non-U.S. government and agencies 2 610 1,349 Corporate debt 2 198 200 Other marketable securities 2 146 225 Total marketable securities $ 1,308 $ 2,247 |
Schedule of cash, cash equivalents and restricted cash [Table Text Block] | Cash, cash equivalents, and restricted cash as reported in the statement of cash flows are presented separately on our consolidated balance sheet as follows (in millions): December 31, 2018 June 30, 2019 Cash and cash equivalents $ 9,607 $ 12,618 Restricted cash included in other assets (a) 140 124 Total cash, cash equivalents, and restricted cash $ 9,747 $ 12,742 __________ (a) Restricted cash primarily includes cash held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of certain contractual agreements. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions. |
Finance Receivables (Tables)
Finance Receivables (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Financing Receivables [Line Items] | |
Sales-type and direct finance leases [Table Text Block] | The reconciliation from finance lease receivables to finance leases, gross and finance leases, net is as follows (in millions): June 30, Finance lease receivables $ 6,197 Unguaranteed residual assets 2,661 Initial direct costs 126 Finance leases, gross 8,984 Unearned interest supplements from Ford and affiliated companies (345 ) Allowance for credit losses (17 ) Finance leases, net $ 8,622 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Finance receivables, net were as follows (in millions): December 31, 2018 June 30, 2019 Consumer Retail installment contracts, gross $ 70,999 $ 68,846 Finance leases, gross 8,748 8,984 Retail financing, gross 79,747 77,830 Unearned interest supplements from Ford and affiliated companies (3,508 ) (3,512 ) Consumer finance receivables 76,239 74,318 Non-Consumer Dealer financing 40,996 40,144 Other financing 2,168 1,792 Non-Consumer finance receivables 43,164 41,936 Total recorded investment $ 119,403 $ 116,254 Recorded investment in finance receivables $ 119,403 $ 116,254 Allowance for credit losses (589 ) (513 ) Finance receivables, net $ 118,814 $ 115,741 Net finance receivables subject to fair value (a) $ 110,388 $ 107,119 Fair value (b) 109,794 107,251 __________ (a) Net finance receivables subject to fair value exclude finance leases. Previously, certain consumer financing products in Europe were classified as retail installment contracts. We now classify these products as finance leases. Comparative information has been revised to reflect this change. (b) The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy. |
Schedule of Aging Analysis for Total Finance Receivables [Table Text Block] | The aging analysis of our finance receivables balances was as follows (in millions): December 31, 2018 June 30, Consumer 31-60 days past due $ 859 $ 662 61-90 days past due 123 103 91-120 days past due 39 31 Greater than 120 days past due 39 39 Total past due 1,060 835 Current 75,179 73,483 Consumer finance receivables 76,239 74,318 Non-Consumer Total past due 76 70 Current 43,088 41,866 Non-Consumer finance receivables 43,164 41,936 Total recorded investment $ 119,403 $ 116,254 |
Non-Consumer Segment [Member] | |
Financing Receivables [Line Items] | |
Schedule of Financing Receivable Credit Quality Indicators [Table Text Block] | The credit quality analysis of dealer financing receivables was as follows (in millions): December 31, 2018 June 30, Dealer financing Group I $ 33,656 $ 32,541 Group II 5,635 6,020 Group III 1,576 1,468 Group IV 129 115 Total recorded investment $ 40,996 $ 40,144 |
Finance Receivables Undiscounte
Finance Receivables Undiscounted Future Cash Payments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Finance Lease [Abstract] | |
Sales-type and Direct Financing Leases, Lease Receivable, Maturity [Table Text Block] | The amounts contractually due on finance lease receivables were as follows (in millions): June 30, Within one year $ 2,075 After one year and within two years 2,006 After two years and within three years 1,599 After three years and within four years 708 After four years and within five years 120 After five years 2 Total future cash payments 6,510 Less: Present value discount (313 ) Finance lease receivables $ 6,197 |
Net Investment in Operating Lea
Net Investment in Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases, Operating [Abstract] | |
Schedule of Amounts Contractually Due for Minimum Rentals on Operating Leases [Table Text Block] | The amounts contractually due for minimum rentals on operating leases at December 31, 2018 were as follows (in millions): 2019 2020 2021 2022 2023 Total Minimum rentals on operating leases $ 4,708 $ 2,929 $ 1,083 $ 83 $ 6 $ 8,809 |
Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block] | The amounts contractually due on our operating leases at June 30, 2019 were as follows (in millions): Within 1 year After 1 year and within 2 years After 2 years and within 3 years After 3 years and within 4 years After 4 years and within 5 years Total Operating lease payments $ 4,746 $ 2,940 $ 1,029 $ 73 $ 5 $ 8,793 |
Net investment in operating leases [Table Text Block] | Net investment in operating leases were as follows (in millions): December 31, June 30, Vehicles, at cost (a) $ 33,593 $ 33,632 Accumulated depreciation (6,144 ) (5,894 ) Net investment in operating leases $ 27,449 $ 27,738 __________ (a) Includes interest supplements and residual support payments we receive on certain leasing transactions under agreements with Ford and affiliated companies, and other vehicle acquisition costs. We recognize these upfront collections from Ford and other vehicle acquisition costs as part of Net investment in operating leases , which are amortized to Depreciation on vehicles subject to operating leases over the term of the lease contract. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |
Allowance for Credit Losses on Financing and Loans and Leases Receivable [Table Text Block] | An analysis of the allowance for credit losses related to finance receivables for the periods ended June 30 was as follows (in millions): Second Quarter 2018 Consumer Non-Consumer Total Allowance Allowance for credit losses Beginning balance $ 584 $ 16 $ 600 Charge-offs (123 ) (1 ) (124 ) Recoveries 47 1 48 Provision for credit losses 72 (2 ) 70 Other (7 ) — (7 ) Ending balance $ 573 $ 14 $ 587 First Half 2018 Consumer Non-Consumer Total Allowance Allowance for credit losses Beginning balance $ 582 $ 15 $ 597 Charge-offs (254 ) (3 ) (257 ) Recoveries 86 2 88 Provision for credit losses 164 — 164 Other (5 ) — (5 ) Ending balance $ 573 $ 14 $ 587 Analysis of ending balance of allowance for credit losses Collective impairment allowance $ 552 $ 13 $ 565 Specific impairment allowance 21 1 22 Ending balance 573 14 587 Analysis of ending balance of finance receivables Collectively evaluated for impairment $ 75,338 $ 40,668 $ 116,006 Specifically evaluated for impairment 378 96 474 Recorded investment 75,716 40,764 116,480 Ending balance, net of allowance for credit losses $ 75,143 $ 40,750 $ 115,893 NOTE 6. ALLOWANCE FOR CREDIT LOSSES ( Continued) Second Quarter 2019 Consumer Non-Consumer Total Allowance Allowance for credit losses Beginning balance $ 496 $ 17 $ 513 Charge-offs (117 ) — (117 ) Recoveries 45 6 51 Provision for credit losses 70 (7 ) 63 Other 2 1 3 Ending balance $ 496 $ 17 $ 513 First Half 2019 Consumer Non-Consumer Total Allowance Allowance for credit losses Beginning balance $ 566 $ 23 $ 589 Charge-offs (254 ) (17 ) (271 ) Recoveries 88 8 96 Provision for credit losses 94 2 96 Other 2 1 3 Ending balance $ 496 $ 17 $ 513 Analysis of ending balance of allowance for credit losses Collective impairment allowance $ 477 $ 16 $ 493 Specific impairment allowance 19 1 20 Ending balance 496 17 513 Analysis of ending balance of finance receivables Collectively evaluated for impairment $ 73,981 $ 41,821 $ 115,802 Specifically evaluated for impairment 337 115 452 Recorded investment 74,318 41,936 116,254 Ending balance, net of allowance for credit losses $ 73,822 $ 41,919 $ 115,741 |
Transfers of Receivables (Table
Transfers of Receivables (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Transfers and Servicing [Abstract] | |
Schedule of Assets and Liabilities Related to Securitization Transactions [Table Text Block] | The following tables show the assets and debt related to our securitization transactions that were included in our financial statements (in billions): December 31, 2018 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt (c) Before Allowance Allowance for After Allowance VIE (b) Retail financing $ 1.9 $ 34.0 $ 0.2 $ 33.8 $ 29.2 Wholesale financing 0.3 24.9 — 24.9 13.9 Finance receivables 2.2 58.9 0.2 58.7 43.1 Net investment in operating leases 0.5 16.3 — 16.3 10.2 Total VIE $ 2.7 $ 75.2 $ 0.2 $ 75.0 $ 53.3 Non-VIE Retail financing $ 0.3 $ 6.7 $ — $ 6.7 $ 5.9 Wholesale financing — 0.8 — 0.8 0.6 Finance receivables 0.3 7.5 — 7.5 6.5 Net investment in operating leases — — — — — Total Non-VIE $ 0.3 $ 7.5 $ — $ 7.5 $ 6.5 Total securitization transactions Retail financing $ 2.2 $ 40.7 $ 0.2 $ 40.5 $ 35.1 Wholesale financing 0.3 25.7 — 25.7 14.5 Finance receivables 2.5 66.4 0.2 66.2 49.6 Net investment in operating leases 0.5 16.3 — 16.3 10.2 Total securitization transactions $ 3.0 $ 82.7 $ 0.2 $ 82.5 $ 59.8 __________ (a) Unearned interest supplements and residual support are excluded from securitization transactions. (b) Includes assets to be used to settle the liabilities of the consolidated VIEs. (c) Includes unamortized discount and debt issuance costs. NOTE 7. TRANSFERS OF RECEIVABLES (Continued) June 30, 2019 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt (c) Before Allowance for Credit Losses Allowance for Credit Losses After Allowance for Credit Losses VIE (b) Retail financing $ 1.9 $ 34.1 $ 0.2 $ 33.9 $ 29.5 Wholesale financing 1.2 24.2 — 24.2 13.6 Finance receivables 3.1 58.3 0.2 58.1 43.1 Net investment in operating leases 0.6 14.0 — 14.0 8.7 Total VIE $ 3.7 $ 72.3 $ 0.2 $ 72.1 $ 51.8 Non-VIE Retail financing $ 0.3 $ 5.2 $ — $ 5.2 $ 4.6 Wholesale financing — 0.9 — 0.9 0.6 Finance receivables 0.3 6.1 — 6.1 5.2 Net investment in operating leases — — — — — Total Non-VIE $ 0.3 $ 6.1 $ — $ 6.1 $ 5.2 Total securitization transactions Retail financing $ 2.2 $ 39.3 $ 0.2 $ 39.1 $ 34.1 Wholesale financing 1.2 25.1 — 25.1 14.2 Finance receivables 3.4 64.4 0.2 64.2 48.3 Net investment in operating leases 0.6 14.0 — 14.0 8.7 Total securitization transactions $ 4.0 $ 78.4 $ 0.2 $ 78.2 $ 57.0 __________ (a) Unearned interest supplements and residual support are excluded from securitization transactions. (b) Includes assets to be used to settle the liabilities of the consolidated VIEs. (c) Includes unamortized discount and debt issuance cost. |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The gains / (losses), by hedge designation, reported in income for the periods ended June 30 were as follows (in millions): Second Quarter First Half 2018 2019 2018 2019 Fair value hedges Interest rate contracts Net interest settlements and accruals on hedging instruments $ (2 ) $ (12 ) $ 24 $ (32 ) Fair value changes on hedging instruments (90 ) 474 (429 ) 724 Fair value changes on hedged debt 82 (463 ) 411 (716 ) Derivatives not designated as hedging instruments Interest rate contracts (20 ) (3 ) (37 ) (30 ) Foreign currency exchange contracts (a) 110 40 98 34 Cross-currency interest rate swap contracts (125 ) 141 (183 ) (4 ) Total $ (45 ) $ 177 $ (116 ) $ (24 ) __________ (a) Reflects forward contracts between Ford Credit and an affiliated company. |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The fair value of our derivative instruments and the associated notional amounts, presented gross, were as follows (in millions): December 31, 2018 June 30, 2019 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Fair value hedges Interest rate contracts $ 22,989 $ 158 $ 208 $ 25,308 $ 687 $ 13 Derivatives not designated as hedging instruments Interest rate contracts 76,904 235 274 63,877 255 270 Foreign currency exchange contracts 4,318 45 24 4,371 16 31 Cross-currency interest rate swap contracts 5,235 232 157 7,879 228 163 Total derivative financial instruments, gross (a) (b) $ 109,446 $ 670 $ 663 $ 101,435 $ 1,186 $ 477 __________ (a) At December 31, 2018 and June 30, 2019 , we held collateral of $19 million and $24 million , respectively, and we posted collateral of $59 million and $85 million , respectively. (b) At December 31, 2018 and June 30, 2019 , the fair value of assets and liabilities available for counterparty netting was $233 million and $190 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy. |
Other Assets and Other Liabil_2
Other Assets and Other Liabilities and Deferred Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Assets and Other Liabilities and Deferred Income [Abstract] | |
Schedule of Other Assets and Other Liabilities [Table Text Block] | Other assets were as follows (in millions): December 31, June 30, Accrued interest and other non-finance receivables $ 1,080 $ 1,155 Collateral held for resale, at net realizable value, and other inventory 877 742 Prepaid reinsurance premiums and other reinsurance recoverables 658 675 Property and equipment, net of accumulated depreciation (a) 192 200 Deferred charges - income taxes 216 193 Deferred charges 96 133 Investment in non-consolidated affiliates 123 130 Restricted cash 140 124 Operating lease assets — 93 Other 74 108 Total other assets $ 3,456 $ 3,553 __________ (a) Accumulated depreciation was $367 million and $380 million at December 31, 2018 and June 30, 2019 , respectively. Other liabilities and deferred revenue were as follows (in millions): December 31, June 30, Interest payable $ 752 $ 796 Unearned insurance premiums and fees 775 794 Income tax and related interest (a) 369 491 Deferred revenue 113 130 Operating lease liabilities — 95 Payroll and employee benefits 70 52 Other 228 198 Total other liabilities and deferred revenue $ 2,307 $ 2,556 __________ (a) Includes tax and interest payable to affiliated companies of $ 193 million and $ 331 million at December 31, 2018 and June 30, 2019 , respectively. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Debt outstanding and interest rates were as follows (in millions): Interest Rates Debt Average Contractual Average Effective December 31, June 30, 2018 2019 2018 2019 Short-term debt Unsecured debt Floating rate demand notes $ 5,880 $ 6,146 Commercial paper 3,749 3,832 Other short-term debt 4,213 3,338 Asset-backed debt 943 985 Total short-term debt 14,785 14,301 3.5 % 3.1 % 3.5 % 3.1 % Long-term debt Unsecured debt Notes payable within one year 14,373 13,387 Notes payable after one year 52,409 57,379 Asset-backed debt (a) Notes payable within one year 22,130 22,836 Notes payable after one year 36,844 33,248 Unamortized discount 2 — Unamortized issuance costs (211 ) (224 ) Fair value adjustments (b) (186 ) 543 Total long-term debt 125,361 127,169 2.8 % 3.0 % 2.8 % 3.0 % Total debt $ 140,146 $ 141,470 2.8 % 3.0 % 2.9 % 3.1 % Fair value of debt (c) $ 138,888 $ 142,775 __________ (a) Asset-backed debt issued in securitizations is the obligation of the consolidated securitization entity that issued the debt and is payable only out of collections on the underlying securitized assets and related enhancements. This asset-backed debt is not the obligation of Ford Credit or our other subsidiaries. (b) These adjustments relate to designated fair value hedges. The carrying value of hedged debt was $38.0 billion and $39.4 billion at December 31, 2018 and June 30, 2019 , respectively. (c) The fair value of debt includes $13.8 billion and $13.3 billion of short-term debt at December 31, 2018 and June 30, 2019 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The changes in the balance of Accumulated Other Comprehensive Income / (Loss) (“AOCI”) attributable to Ford Credit for the periods ended June 30 were as follows (in millions): Second Quarter First Half 2018 2019 2018 2019 Beginning AOCI balance $ (306 ) $ (809 ) $ (419 ) $ (829 ) Net gain / (loss) on foreign currency translation (364 ) 8 (251 ) 28 Ending AOCI balance $ (670 ) $ (801 ) $ (670 ) $ (801 ) |
Other Income, Net (Tables)
Other Income, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income [Table Text Block] | The amounts included in Other income, net for the periods ended June 30 were as follows (in millions): Second Quarter First Half 2018 2019 2018 2019 Gains / (Losses) on derivatives $ (35 ) $ 178 $ (122 ) $ — Currency revaluation gains / (losses) (18 ) (147 ) 44 (16 ) Interest and investment income 49 83 $ 91 $ 162 Other 5 10 25 37 Total other income, net $ 1 $ 124 $ 38 $ 183 |
Segment and Geographic Informat
Segment and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Key financial information for our business segments for the periods ended or at June 30 were as follows (in millions): Americas Europe Asia Pacific Total Segments Unallocated Other (a) Total Second Quarter 2018 Total revenue $ 2,661 $ 298 $ 140 $ 3,099 $ — $ 3,099 Income before income taxes 548 103 27 678 (33 ) 645 Other disclosures: Depreciation on vehicles subject to operating leases 983 3 — 986 — 986 Interest expense 830 76 90 996 1 997 Provision for credit losses 61 8 — 69 — 69 Second Quarter 2019 Total revenue $ 2,792 $ 307 $ 89 $ 3,188 $ — $ 3,188 Income before income taxes 608 116 15 739 92 831 Other disclosures: Depreciation on vehicles subject to operating leases 885 9 — 894 — 894 Interest expense 979 86 51 1,116 (2 ) 1,114 Provision for credit losses 54 7 2 63 — 63 First Half 2018 Total revenue $ 5,241 $ 594 $ 284 $ 6,119 $ — $ 6,119 Income before income taxes 1,063 214 73 1,350 (64 ) 1,286 Other disclosures: Depreciation on vehicles subject to operating leases 2,031 8 — 2,039 — 2,039 Interest expense 1,582 148 181 1,911 (2 ) 1,909 Provision for credit losses 147 13 3 163 — 163 Net finance receivables and net investment in operating leases 119,611 25,437 6,405 151,453 (8,246 ) 143,207 Total assets 125,436 27,391 6,784 159,611 — 159,611 First Half 2019 Total revenue $ 5,585 $ 610 $ 187 $ 6,382 $ — $ 6,382 Income before income taxes 1,252 232 49 1,533 99 1,632 Other disclosures: Depreciation on vehicles subject to operating leases 1,797 21 — 1,818 — 1,818 Interest expense 1,951 166 112 2,229 6 2,235 Provision for credit losses 92 12 (8 ) 96 — 96 Net finance receivables and net investment in operating leases 120,486 27,224 4,212 151,922 (8,443 ) 143,479 Total assets 130,735 28,745 4,538 164,018 — 164,018 __________ (a) Net finance receivables and Net investment in operating leases include unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation). |
Commitments and Contingencies O
Commitments and Contingencies Operating Lease Liability Maturity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Operating Lease, Liability, Maturity [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The amounts contractually due on our operating lease liabilities at June 30, 2019 were as follows (in millions): Within 1 year After 1 year and within 2 years After 2 years and within 3 years After 3 years and within 4 years After 4 years and within 5 years After 5 years Total Operating lease $ 20 $ 16 $ 13 $ 13 $ 13 $ 32 $ 107 Less: Present value discount (12 ) Total operating lease liabilities $ 95 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | We have rental commitments for certain land, buildings, and equipment that expire over various contractual periods. Minimum non-cancelable operating lease commitments at December 31, 2018 were as follows (in millions): 2019 2020 2021 2022 2023 Thereafter Total Minimum rentals on operating leases $ 19 $ 14 $ 11 $ 10 $ 9 $ 34 $ 97 |
Accounting Policies (Details)
Accounting Policies (Details) - Minimum [Member] - Accounting Standards Update 2016-02 [Member] $ in Millions | Jun. 30, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating Lease Liability Expected | $ 100 |
Operating Lease Right Of Use Asset Expected | $ 100 |
Cash, Cash Equivalents, and M_3
Cash, Cash Equivalents, and Marketable Securities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash, Cash Equivalents, and Short-term Investments | $ 9,412 | $ 8,445 | ||
Total cash and cash equivalents | 12,618 | 9,607 | ||
Restricted Cash | 124 | 140 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 12,742 | 9,747 | $ 9,225 | $ 9,682 |
Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 3,206 | 1,162 | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Marketable securities | 2,247 | 1,308 | ||
US Government [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 575 | 139 | ||
Marketable securities | 338 | 289 | ||
US Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 849 | 25 | ||
Marketable securities | 135 | 65 | ||
Debt Security, Government, Non-US [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 875 | 114 | ||
Marketable securities | 1,349 | 610 | ||
Corporate debt [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 907 | 884 | ||
Marketable securities | 200 | 198 | ||
Other Debt Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Marketable securities | $ 225 | $ 146 |
Finance Receivables Net (Detail
Finance Receivables Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Sales-Type and Direct Financing Lease, Revenue | $ 97 | $ 95 | $ 189 | $ 190 | |
Sales-type and Direct Financing Leases, Lease Receivable | 6,197 | 6,197 | |||
Net Finance Receivables [Abstract] | |||||
Financing Receivable, Gross | 116,254 | 116,480 | 116,254 | 116,480 | $ 119,403 |
Net finance receivables subject to fair value | 107,119 | 107,119 | 110,388 | ||
Uncollected interest receivable excluded from finance receivable | 263 | 263 | 264 | ||
Consumer Segment [Member] | |||||
Net Finance Receivables [Abstract] | |||||
Financing Receivable, Gross | 74,318 | 75,716 | 74,318 | 75,716 | 76,239 |
Continuing Involvement with Continued to be Recognized Transferred Financial Assets, Amount Outstanding | 39,300 | 39,300 | 40,700 | ||
Non-Consumer Segment [Member] | |||||
Net Finance Receivables [Abstract] | |||||
Financing Receivable, Gross | 41,936 | $ 40,764 | 41,936 | $ 40,764 | 43,164 |
Continuing Involvement with Continued to be Recognized Transferred Financial Assets, Amount Outstanding | 25,100 | 25,100 | 25,700 | ||
Retail Installment loans [Member] | Consumer Segment [Member] | |||||
Net Finance Receivables [Abstract] | |||||
Financing Receivable, Gross | 68,846 | 68,846 | 70,999 | ||
Retail [Member] | |||||
Net Finance Receivables [Abstract] | |||||
Unearned interest supplements from Ford and affiliated companies | (345) | (345) | |||
Retail [Member] | Consumer Segment [Member] | |||||
Net Finance Receivables [Abstract] | |||||
Unearned interest supplements from Ford and affiliated companies | (3,512) | (3,512) | (3,508) | ||
Financing Receivable, Gross | 74,318 | 74,318 | 76,239 | ||
Finance Receivable Before Unearned Interest Supplements | 77,830 | 77,830 | 79,747 | ||
Finance leases [Domain] | |||||
Net Finance Receivables [Abstract] | |||||
Financing Receivable, Gross | 8,984 | 8,984 | |||
Finance leases [Domain] | Consumer Segment [Member] | |||||
Net Finance Receivables [Abstract] | |||||
Financing Receivable, Gross | 8,984 | 8,984 | 8,748 | ||
Wholesale and Dealer Loans [Member] | Non-Consumer Segment [Member] | |||||
Net Finance Receivables [Abstract] | |||||
Financing Receivable, Gross | 40,144 | 40,144 | 40,996 | ||
Other Finance Receivables [Member] | Non-Consumer Segment [Member] | |||||
Net Finance Receivables [Abstract] | |||||
Financing Receivable, Gross | 1,792 | 1,792 | 2,168 | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Net Finance Receivables [Abstract] | |||||
Fair value (b) | $ 107,251 | $ 107,251 | $ 109,794 |
Finance Receivables - Aging Ana
Finance Receivables - Aging Analysis (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold Period For Past Due Finance Receivables | 31 days | ||
Finance Receivables Aging Analysis [Abstract] | |||
Financing Receivables | $ 116,254 | $ 119,403 | $ 116,480 |
Uncollected Interest Receivable Excluded From Finance Receivable | 263 | 264 | |
Consumer Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 20 | |
Finance Receivables Aging Analysis [Abstract] | |||
Total past due | 835 | 1,060 | |
Current | 73,483 | 75,179 | |
Financing Receivables | 74,318 | 76,239 | 75,716 |
Non-Consumer Segment [Member] | |||
Finance Receivables Aging Analysis [Abstract] | |||
Total past due | 70 | 76 | |
Current | 41,866 | 43,088 | |
Financing Receivables | 41,936 | 43,164 | $ 40,764 |
31-60 Days Past Due [Member] | Consumer Segment [Member] | |||
Finance Receivables Aging Analysis [Abstract] | |||
Total past due | 662 | 859 | |
61-90 Days Past Due [Member] | Consumer Segment [Member] | |||
Finance Receivables Aging Analysis [Abstract] | |||
Total past due | 103 | 123 | |
91-120 Days Past Due [Member] | Consumer Segment [Member] | |||
Finance Receivables Aging Analysis [Abstract] | |||
Total past due | 31 | 39 | |
Greater Than 120 Days Past Due [Member] | Consumer Segment [Member] | |||
Finance Receivables Aging Analysis [Abstract] | |||
Total past due | $ 39 | $ 39 |
Finance Receivables - Credit Qu
Finance Receivables - Credit Quality and Impaired Receivables (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | $ 116,254 | $ 119,403 | $ 116,480 |
Consumer Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold Period for Impaired Finance Receivables | 120 days | ||
Financing Receivables | $ 74,318 | 76,239 | 75,716 |
Impaired Financing Receivable, Recorded Investment | $ 337 | $ 370 | |
Impaired Financing Receivable Recorded Investment, Percentage of Receivable | 0.50% | 0.50% | |
Consumer Segment [Member] | Pass [Member] | Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance Receivables Credit Quality Ratings Term Range | 60 days | ||
Consumer Segment [Member] | Special Mention [Member] | Minimum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance Receivables Credit Quality Ratings Term Range | 61 days | ||
Consumer Segment [Member] | Special Mention [Member] | Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance Receivables Credit Quality Ratings Term Range | 120 days | ||
Consumer Segment [Member] | Substandard [Member] | Minimum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance Receivables Credit Quality Ratings Term Range | 120 days | ||
Non-Consumer Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | $ 41,936 | $ 43,164 | $ 40,764 |
Impaired Financing Receivable, Recorded Investment | $ 115 | $ 129 | |
Impaired Financing Receivable Recorded Investment, Percentage of Receivable | 0.30% | 0.30% | |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | $ 40,144 | $ 40,996 | |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group I | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | 32,541 | 33,656 | |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group II | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | 6,020 | 5,635 | |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group III | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | 1,468 | 1,576 | |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group IV | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivables | $ 115 | $ 129 |
Finance Receivables Undiscoun_2
Finance Receivables Undiscounted Future Cash Payments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | ||||||||
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Next Twelve Months | $ 2,075 | $ 2,075 | ||||||
Sales-type and Direct Financing Leases, Lease Receivable, Lease Payments to be Received, Rolling Year Two | 2,006 | 2,006 | ||||||
Sales-type and Direct Financing Leases, Lease Receivable, Lease Payments to be Received, Rolling Year Three | 1,599 | 1,599 | ||||||
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Rolling Year Four | 708 | 708 | ||||||
Sales-type and Direct Financing Leases, Lease Receivable, Lease Payments to be Received, Rolling Year Five | 120 | 120 | ||||||
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Thereafter | 2 | 2 | ||||||
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received | 6,510 | 6,510 | ||||||
Sales-type and Direct Financing Leases, Lease Receivable, Undiscounted Excess Amount | (313) | (313) | ||||||
Sales-type and Direct Financing Leases, Lease Receivable | 6,197 | 6,197 | ||||||
Sales-type and Direct Financing Leases, Unguaranteed Residual Asset | 2,661 | 2,661 | ||||||
Deferred Costs, Leasing, Gross | 126 | 126 | ||||||
Financing Receivable, Gross | 116,254 | $ 116,480 | 116,254 | $ 116,480 | $ 119,403 | |||
Allowance for credit losses | (513) | (587) | (513) | (587) | $ (513) | (589) | $ (600) | $ (597) |
Finance receivables, net | 115,741 | 115,893 | 115,741 | 115,893 | 118,814 | |||
Sales-Type and Direct Financing Lease, Revenue | 97 | $ 95 | 189 | $ 190 | ||||
Finance leases [Domain] | ||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Financing Receivable, Gross | 8,984 | 8,984 | ||||||
Finance receivables, net | 8,622 | 8,622 | $ 8,426 | |||||
Finance Leases Portfolio Segment [Member] | ||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Allowance for credit losses | (17) | (17) | ||||||
Automobile Loan [Member] | ||||||||
Financing Receivable, Impaired [Line Items] | ||||||||
Related Party Transaction Unearned Interest Supplements From Transactions With Related Party | $ 345 | $ 345 |
Net Investments in Operating _3
Net Investments in Operating Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Net Investment in Operating Leases, Length of Lease | 60 months or less | |||||||
Net investment in operating lease, term and payment extension | 12 months | |||||||
Vehicles, at cost | $ 33,632 | $ 33,632 | $ 33,593 | |||||
Accumulated depreciation | 5,894 | 5,894 | 6,144 | |||||
Net Investment in operating leases | 27,738 | 27,738 | 27,449 | |||||
Allowance for credit losses | (513) | $ (587) | (513) | $ (587) | $ (513) | (589) | $ (600) | $ (597) |
Provision for Loan and Lease Losses | (63) | (69) | (96) | (163) | ||||
Operating Leases, Income Statement, Depreciation Expense on Property Subject to or Held-for-lease | 894 | 986 | 1,818 | 2,039 | ||||
Net Investment in Operating Leases [Member] | ||||||||
Continuing Involvement with Continued to be Recognized Transferred Financial Assets, Amount Outstanding | $ 14,000 | $ 14,000 | 16,300 | |||||
Adjustments for New Accounting Pronouncement [Member] | ||||||||
Accumulated depreciation | 78 | |||||||
Allowance for credit losses | $ (78) | |||||||
Provision for Loan and Lease Losses | 0 | (48) | ||||||
Operating Leases, Income Statement, Depreciation Expense on Property Subject to or Held-for-lease | $ 23 | $ 48 | ||||||
Maximum [Member] | ||||||||
Net investment in operating lease, payment extension | 6 months |
Net Investments in Operating _4
Net Investments in Operating Leases Contractual Maturities: Minimum Rentals on Operating Lease (Details) $ in Millions | Dec. 31, 2018USD ($) |
Contractual Maturities: Minimum Rentals [Abstract] | |
Operating Leases, Future Minimum Payments Receivable, Current | $ 4,708 |
Operating Leases, Future Minimum Payments Receivable, in Two Years | 2,929 |
Operating Leases, Future Minimum Payments Receivable, in Three Years | 1,083 |
Operating Leases, Future Minimum Payments Receivable, in Four Years | 83 |
Operating Leases, Future Minimum Payments Receivable, in Five Years | 6 |
Operating Leases, Future Minimum Payments Receivable | $ 8,809 |
Net Investments in Operating _5
Net Investments in Operating Leases Contractual Maturities: Operating Lease Payments (Details) $ in Millions | Jun. 30, 2019USD ($) |
Contractual Maturities: Operating Lease Payments [Abstract] | |
Lessor, Operating Lease, Payments to be Received, Next Rolling Twelve Months | $ 4,746 |
Lessor, Operating Lease, Payments to be Received, Rolling Year Two | 2,940 |
Lessor, Operating Lease, Payments to be Received, Rolling Year Three | 1,029 |
Lessor, Operating Lease, Payments to be Received, Rolling Year Four | 73 |
Lessor, Operating Lease, Payments to be Received, Rolling Year Five | 5 |
Lessor, Operating Lease, Payments to be Received | $ 8,793 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Allowance for credit losses, finance receivables | |||||
Beginning balance | $ 513 | $ 600 | $ 589 | $ 597 | |
Charge-offs | (117) | (124) | (271) | (257) | |
Recoveries | 51 | 48 | 96 | 88 | |
Provision for credit losses | 63 | 70 | 96 | 164 | |
Other | 3 | (7) | 3 | (5) | |
Ending balance | 513 | 587 | 513 | 587 | |
Analysis of ending balance of allowance for credit losses, finance receivables | |||||
Collective impairment allowance | 493 | 565 | 493 | 565 | |
Specific impairment allowance | 20 | 22 | 20 | 22 | |
Ending balance | 513 | 587 | 513 | 587 | |
Analysis of ending balance of finance receivables | |||||
Collectively evaluated for impairment | 115,802 | 116,006 | 115,802 | 116,006 | |
Specifically evaluated for impairment | 452 | 474 | 452 | 474 | |
Financing Receivables | 116,254 | 116,480 | 116,254 | 116,480 | $ 119,403 |
Ending balance, net of allowance for credit losses | 115,741 | 115,893 | 115,741 | 115,893 | 118,814 |
Consumer Segment [Member] | |||||
Allowance for credit losses, finance receivables | |||||
Beginning balance | 496 | 584 | 566 | 582 | |
Charge-offs | (117) | (123) | (254) | (254) | |
Recoveries | 45 | 47 | 88 | 86 | |
Provision for credit losses | 70 | 72 | 94 | 164 | |
Other | 2 | (7) | 2 | (5) | |
Ending balance | 496 | 573 | 496 | 573 | |
Analysis of ending balance of allowance for credit losses, finance receivables | |||||
Collective impairment allowance | 477 | 552 | 477 | 552 | |
Specific impairment allowance | 19 | 21 | 19 | 21 | |
Ending balance | 496 | 573 | 496 | 573 | |
Analysis of ending balance of finance receivables | |||||
Collectively evaluated for impairment | 73,981 | 75,338 | 73,981 | 75,338 | |
Specifically evaluated for impairment | 337 | 378 | 337 | 378 | |
Financing Receivables | 74,318 | 75,716 | 74,318 | 75,716 | 76,239 |
Ending balance, net of allowance for credit losses | 73,822 | 75,143 | 73,822 | 75,143 | |
Non-Consumer Segment [Member] | |||||
Allowance for credit losses, finance receivables | |||||
Beginning balance | 17 | 16 | 23 | 15 | |
Charge-offs | 0 | (1) | (17) | (3) | |
Recoveries | 6 | 1 | 8 | 2 | |
Provision for credit losses | (7) | (2) | 2 | 0 | |
Other | 1 | 0 | 1 | 0 | |
Ending balance | 17 | 14 | 17 | 14 | |
Analysis of ending balance of allowance for credit losses, finance receivables | |||||
Collective impairment allowance | 16 | 13 | 16 | 13 | |
Specific impairment allowance | 1 | 1 | 1 | 1 | |
Ending balance | 17 | 14 | 17 | 14 | |
Analysis of ending balance of finance receivables | |||||
Collectively evaluated for impairment | 41,821 | 40,668 | 41,821 | 40,668 | |
Specifically evaluated for impairment | 115 | 96 | 115 | 96 | |
Financing Receivables | 41,936 | 40,764 | 41,936 | 40,764 | $ 43,164 |
Ending balance, net of allowance for credit losses | $ 41,919 | $ 40,750 | $ 41,919 | $ 40,750 |
Transfers of Receivables - Asse
Transfers of Receivables - Assets and Liabilities of Securitizations (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | $ 12,618 | $ 9,607 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 143,479 | $ 143,207 | |
Related Debt | 141,470 | 140,146 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 3,719 | 2,728 | |
Related Debt | 51,791 | 53,269 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 3,700 | 2,700 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 72,300 | 75,200 | |
Allowance for Credit Losses | 200 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 72,100 | 75,000 | |
Related Debt | 51,800 | 53,300 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 3,100 | 2,200 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 58,300 | 58,900 | |
Allowance for Credit Losses | 200 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 58,100 | 58,700 | |
Related Debt | 43,100 | 43,100 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Retail [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 1,900 | 1,900 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 34,100 | 34,000 | |
Allowance for Credit Losses | 200 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 33,900 | 33,800 | |
Related Debt | 29,500 | 29,200 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Wholesale [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 1,200 | 300 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 24,200 | 24,900 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 24,200 | 24,900 | |
Related Debt | 13,600 | 13,900 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 600 | 500 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 14,000 | 16,300 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 14,000 | 16,300 | |
Related Debt | 8,700 | 10,200 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 4,000 | 3,000 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 78,400 | 82,700 | |
Allowance for Credit Losses | 200 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 78,200 | 82,500 | |
Related Debt | 57,000 | 59,800 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 3,400 | 2,500 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 64,400 | 66,400 | |
Allowance for Credit Losses | 200 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 64,200 | 66,200 | |
Related Debt | 48,300 | 49,600 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Retail [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 2,200 | 2,200 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 39,300 | 40,700 | |
Allowance for Credit Losses | 200 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 39,100 | 40,500 | |
Related Debt | 34,100 | 35,100 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Wholesale [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 1,200 | 300 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 25,100 | 25,700 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 25,100 | 25,700 | |
Related Debt | 14,200 | 14,500 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 600 | 500 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 14,000 | 16,300 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 14,000 | 16,300 | |
Related Debt | 8,700 | 10,200 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 300 | 300 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 6,100 | 7,500 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 6,100 | 7,500 | |
Related Debt | 5,200 | 6,500 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 300 | 300 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 6,100 | 7,500 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 6,100 | 7,500 | |
Related Debt | 5,200 | 6,500 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Retail [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 300 | 300 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 5,200 | 6,700 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 5,200 | 6,700 | |
Related Debt | 4,600 | 5,900 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Wholesale [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 900 | 800 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 900 | 800 | |
Related Debt | 600 | 600 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 0 | 0 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 0 | 0 | |
Related Debt | $ 0 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | |||||
Debt Carrying Value Fair Value | $ 39,400 | $ 39,400 | $ 38,000 | ||
Income Effect of Derivative Financial Instruments [Abstract] | |||||
Derivative, Gain (Loss) on Derivative, Net | 177 | $ (45) | (24) | $ (116) | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Notional | 101,435 | 101,435 | 109,446 | ||
Fair Value of Derivative Assets | 1,186 | 1,186 | 670 | ||
Fair Value of Derivative Liabilities | 477 | 477 | 663 | ||
Derivative, Collateral, Obligation to Return Cash | 24 | 24 | 19 | ||
Derivative, Collateral, Right to Reclaim Cash | 85 | 85 | 59 | ||
Derivative Asset, Not Offset, Policy Election Deduction | 190 | 190 | 233 | ||
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Income Effect of Derivative Financial Instruments [Abstract] | |||||
Derivative, Gain (Loss) on Derivative, Net | (3) | (20) | (30) | (37) | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Notional | 63,877 | 63,877 | 76,904 | ||
Interest Rate Contract [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | |||||
Income Effect of Derivative Financial Instruments [Abstract] | |||||
Net interest settlements and accruals excluded from the assessment of hedge effectiveness | (12) | (2) | (32) | 24 | |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 474 | (90) | 724 | (429) | |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (463) | 82 | (716) | 411 | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Notional | 25,308 | 25,308 | 22,989 | ||
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Income Effect of Derivative Financial Instruments [Abstract] | |||||
Derivative, Gain (Loss) on Derivative, Net | 40 | 110 | 34 | 98 | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Notional | 4,371 | 4,371 | 4,318 | ||
Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Income Effect of Derivative Financial Instruments [Abstract] | |||||
Derivative, Gain (Loss) on Derivative, Net | 141 | $ (125) | (4) | $ (183) | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Notional | 7,879 | 7,879 | 5,235 | ||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Fair Value of Derivative Assets | 255 | 255 | 235 | ||
Fair Value of Derivative Liabilities | 270 | 270 | 274 | ||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | |||||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Fair Value of Derivative Assets | 687 | 687 | 158 | ||
Fair Value of Derivative Liabilities | 13 | 13 | 208 | ||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Fair Value of Derivative Assets | 16 | 16 | 45 | ||
Fair Value of Derivative Liabilities | 31 | 31 | 24 | ||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||||
Fair Value of Derivative Assets | 228 | 228 | 232 | ||
Fair Value of Derivative Liabilities | $ 163 | $ 163 | $ 157 |
Other Assets and Other Liabil_3
Other Assets and Other Liabilities and Deferred Income (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Other Assets [Abstract] | |||
Accrued interest and other non-finance receivables | $ 1,155 | $ 1,080 | |
Collateral held for resale, at net realizable value, and other inventory | 742 | 877 | |
Prepaid reinsurance premiums and other reinsurance recoverables | 675 | 658 | |
Deferred charges - income taxes | 193 | 216 | |
Property and equipment, net of accumulated depreciation | 200 | 192 | |
Deferred charges | 133 | 96 | |
Operating lease assets | 93 | 0 | |
Restricted cash | 124 | 140 | |
Investment in non-consolidated affiliates | 130 | 123 | |
Other | 108 | 74 | |
Total other assets | 3,553 | 3,456 | |
Accumulated depreciation | 380 | 367 | |
Other Liabilities and Deferred Income [Abstract] | |||
Interest Payable | 796 | 752 | |
Unearned insurance premiums and fees | 794 | 775 | |
Taxes Payable | 491 | 369 | |
Deferred revenue | 130 | 113 | |
Payroll and employee benefits | 52 | 70 | |
Operating Lease, Liability | 95 | 0 | |
Other | 198 | 228 | |
Total other liabilities and deferred income | 2,556 | 2,307 | |
Deferred Revenue, Admission Fees | 81 | 87 | |
Cost Method Investments | 8 | 9 | |
Total assets | 164,018 | 162,209 | $ 159,611 |
Related Party Transactions Income Taxes and Related Interest Payable | $ 331 | $ 193 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total short-term debt | $ 14,301 | $ 14,785 |
Unamortized discount | 0 | 2 |
Unamortized debt issuance costs | (224) | (211) |
Fair value adjustments | 543 | (186) |
Total long-term debt | 127,169 | 125,361 |
Total debt | $ 141,470 | $ 140,146 |
Average Contractual (interest rate) | 3.00% | 2.80% |
Average Effective (interest rate) | 3.10% | 2.90% |
Debt Carrying Value Fair Value | $ 39,400 | $ 38,000 |
Fair value of short-term debt | 13,300 | 13,800 |
Floating Rate Demand Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 6,146 | 5,880 |
Unsecured commercial paper [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 3,832 | 3,749 |
Other short-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 3,338 | 4,213 |
Asset-backed Securities [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 985 | 943 |
Notes payable within one year | 22,836 | 22,130 |
Notes payable after one year | $ 33,248 | $ 36,844 |
Total short-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Average Contractual (interest rate) | 3.10% | 3.50% |
Average Effective (interest rate) | 3.10% | 3.50% |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable within one year | $ 13,387 | $ 14,373 |
Notes payable after one year | $ 57,379 | $ 52,409 |
Total long-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Average Contractual (interest rate) | 3.00% | 2.80% |
Average Effective (interest rate) | 3.00% | 2.80% |
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 142,775 | $ 138,888 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Cumulative Translation Adjustment Summary [Roll Forward] | ||||
Beginning balance | $ (809) | $ (306) | $ (829) | $ (419) |
Net gain/(loss) on Foreign Currency Transaction | 8 | (364) | 28 | (251) |
Ending balance | $ (801) | $ (670) | $ (801) | $ (670) |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Gains/(Losses) on derivatives | $ 178 | $ (35) | $ 0 | $ (122) |
Currency revaluation gains/(losses) | (147) | (18) | (16) | 44 |
Interest and investment income | 83 | 49 | 162 | 91 |
Other | 10 | 5 | 37 | 25 |
Other income, net | $ 124 | $ 1 | $ 183 | $ 38 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Total revenue | $ 3,188,000,000 | $ 3,099,000,000 | $ 6,382,000,000 | $ 6,119,000,000 | |
Income before income taxes | 831,000,000 | 645,000,000 | 1,632,000,000 | 1,286,000,000 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | (894,000,000) | (986,000,000) | (1,818,000,000) | (2,039,000,000) | |
Interest expense | 1,114,000,000 | 997,000,000 | 2,235,000,000 | 1,909,000,000 | |
Provision for credit losses | 63,000,000 | 69,000,000 | 96,000,000 | 163,000,000 | |
Net finance receivables and net investment in operating leases | 143,479,000,000 | 143,207,000,000 | 143,479,000,000 | 143,207,000,000 | |
Total assets | 164,018,000,000 | 159,611,000,000 | 164,018,000,000 | 159,611,000,000 | $ 162,209,000,000 |
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 3,188,000,000 | 3,099,000,000 | 6,382,000,000 | 6,119,000,000 | |
Income before income taxes | 739,000,000 | 678,000,000 | 1,533,000,000 | 1,350,000,000 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | (894,000,000) | (986,000,000) | (1,818,000,000) | (2,039,000,000) | |
Interest expense | 1,116,000,000 | 996,000,000 | 2,229,000,000 | 1,911,000,000 | |
Provision for credit losses | 63,000,000 | 69,000,000 | 96,000,000 | 163,000,000 | |
Net finance receivables and net investment in operating leases | 151,922,000,000 | 151,453,000,000 | 151,922,000,000 | 151,453,000,000 | |
Total assets | 164,018,000,000 | 159,611,000,000 | 164,018,000,000 | 159,611,000,000 | |
Operating Segments [Member] | Americas [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 2,792,000,000 | 2,661,000,000 | 5,585,000,000 | 5,241,000,000 | |
Income before income taxes | 608,000,000 | 548,000,000 | 1,252,000,000 | 1,063,000,000 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | (885,000,000) | (983,000,000) | (1,797,000,000) | (2,031,000,000) | |
Interest expense | 979,000,000 | 830,000,000 | 1,951,000,000 | 1,582,000,000 | |
Provision for credit losses | 54,000,000 | 61,000,000 | 92,000,000 | 147,000,000 | |
Net finance receivables and net investment in operating leases | 120,486,000,000 | 119,611,000,000 | 120,486,000,000 | 119,611,000,000 | |
Total assets | 130,735,000,000 | 125,436,000,000 | 130,735,000,000 | 125,436,000,000 | |
Operating Segments [Member] | Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 307,000,000 | 298,000,000 | 610,000,000 | 594,000,000 | |
Income before income taxes | 116,000,000 | 103,000,000 | 232,000,000 | 214,000,000 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | (9,000,000) | (3,000,000) | (21,000,000) | (8,000,000) | |
Interest expense | 86,000,000 | 76,000,000 | 166,000,000 | 148,000,000 | |
Provision for credit losses | 7,000,000 | 8,000,000 | 12,000,000 | 13,000,000 | |
Net finance receivables and net investment in operating leases | 27,224,000,000 | 25,437,000,000 | 27,224,000,000 | 25,437,000,000 | |
Total assets | 28,745,000,000 | 27,391,000,000 | 28,745,000,000 | 27,391,000,000 | |
Operating Segments [Member] | Asia Pacific [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 89,000,000 | 140,000,000 | 187,000,000 | 284,000,000 | |
Income before income taxes | 15,000,000 | 27,000,000 | 49,000,000 | 73,000,000 | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | 0 | 0 | 0 | 0 | |
Interest expense | 51,000,000 | 90,000,000 | 112,000,000 | 181,000,000 | |
Provision for credit losses | 2,000,000 | 0 | (8,000,000) | 3,000,000 | |
Net finance receivables and net investment in operating leases | 4,212,000,000 | 6,405,000,000 | 4,212,000,000 | 6,405,000,000 | |
Total assets | 4,538,000,000 | 6,784,000,000 | 4,538,000,000 | 6,784,000,000 | |
Corporate, Non-Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 0 | 0 | 0 | 0 | |
Income before income taxes | 92,000,000 | (33,000,000) | 99,000,000 | (64,000,000) | |
Other disclosures [Abstract] | |||||
Depreciation on vehicles subject to operating leases | 0 | 0 | 0 | 0 | |
Interest expense | (2,000,000) | 1,000,000 | 6,000,000 | (2,000,000) | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Net finance receivables and net investment in operating leases | (8,443,000,000) | (8,246,000,000) | (8,443,000,000) | (8,246,000,000) | |
Total assets | $ 0 | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Guarantor Obligations [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 50 | |
Financial Guarantee [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 34 | $ 34 |
Counter Guarantee [Member] | Ford Motor Company [Member] | ||
Guarantor Obligations [Line Items] | ||
Counter guarantee | $ 29 | $ 29 |
Minimum [Member] | ||
Guarantor Obligations [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 1 year | |
Maximum [Member] | ||
Guarantor Obligations [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 11 years |
Commitments and Contingencies_2
Commitments and Contingencies Operating Lease Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Operating Lease Maturities [Abstract] | |||
Lessee, Operating Lease, Liability, Payments, Due Next Rolling Twelve Months | $ 20 | $ 20 | |
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Two | 16 | 16 | |
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Three | 13 | 13 | |
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Four | 13 | 13 | |
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Five | 13 | 13 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 32 | 32 | |
Lessee, Operating Lease, Liability, Payments, Due | 107 | 107 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (12) | (12) | |
Operating Lease, Liability | 95 | 95 | $ 0 |
Operating and Variable Lease Expense | 5 | 11 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 6 | $ 17 | |
Operating Lease, Weighted Average Remaining Lease Term | 7 years | 7 years | |
Operating Lease, Weighted Average Discount Rate, Percent | 3.40% | 3.40% | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 19 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 14 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 11 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 10 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 9 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 34 | ||
Operating Leases, Future Minimum Payments Due | $ 97 |