Document and Entity Information
Document and Entity Information Document | 3 Months Ended |
Mar. 31, 2020shares | |
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 | Mar. 31, 2020 |
Entity File Number | 1-6368 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
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/24R [Member] | |
Trading Symbol | F/24R |
Security Exchange Name | NYSE |
Title of 12(b) Security | 1.744% Notes due July 19, 2024* |
F/25L [Member] | |
Trading Symbol | F/25L |
Security Exchange Name | NYSE |
Title of 12(b) Security | 2.330% Notes due on November 25, 2025* |
F/24Q [Member] | |
Trading Symbol | F/24Q |
Security Exchange Name | NYSE |
Title of 12(b) Security | 3.683% Notes due on December 3, 2024* |
F/19A [Member] | |
Trading Symbol | F/19A |
Title of 12(b) Security | Floating Rate Notes due December 12, 2019* |
F/19C [Member] | |
Trading Symbol | F/19C |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing revenue | ||
Operating leases | $ 1,459 | $ 1,477 |
Retail financing | 976 | 984 |
Dealer financing | 485 | 608 |
Other | 22 | 24 |
Revenue from Contract with Customer, Excluding Assessed Tax | 2,942 | 3,093 |
Depreciation on vehicles subject to operating leases | (1,052) | (924) |
Interest expense | (984) | (1,121) |
Net financing margin | 906 | 1,048 |
Other revenue | ||
Insurance Premiums Earned | 47 | 47 |
Fee based revenue and other | 43 | 54 |
Total financing margin and other revenue | 996 | 1,149 |
Operating expenses | 362 | 364 |
Provision for credit losses | 586 | 33 |
Insurance expenses | 6 | 10 |
Total expenses | 954 | 407 |
Other income, net | (12) | 59 |
Income before income taxes | 30 | 801 |
Provision for income taxes | 9 | 198 |
Net income | $ 21 | $ 603 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net income | $ 21 | $ 603 |
Other comprehensive income/(loss), net of tax | ||
Foreign currency translation | (348) | 20 |
Comprehensive income / (loss) | $ (327) | $ 623 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Loss | $ 1,231 | $ 513 |
ASSETS | ||
Cash and cash equivalents | 9,628 | 9,067 |
Marketable securities | 2,453 | 3,296 |
Net Investment in Operating Leases | 27,030 | 27,659 |
Finance receivables, net | 110,746 | 114,317 |
Notes and accounts receivable from affiliated companies | 1,201 | 863 |
Derivative financial instruments | 2,420 | 1,128 |
Disposal Group, Including Discontinued Operation, Assets | 36 | 1,698 |
Other assets | 3,302 | 3,398 |
Total assets | 156,816 | 161,426 |
Liabilities | ||
Accounts Payable, Trade | 1,000 | 1,002 |
Affiliated companies | 328 | 421 |
Accounts Payable and Accrued Liabilities | 1,328 | 1,423 |
Debt | 136,836 | 140,029 |
Deferred income taxes | 2,225 | 2,593 |
Derivative financial instruments | 801 | 356 |
Disposal Group, Including Discontinued Operation, Other Liabilities | 0 | 45 |
Other liabilities and deferred income | 2,083 | 2,633 |
Total liabilities | 143,273 | 147,079 |
Shareholder's interest | ||
Stockholders' Equity Attributable to Parent | 5,227 | 5,227 |
Accumulated other comprehensive income | (1,133) | (785) |
Retained earnings | 9,449 | 9,905 |
Total shareholder’s interest | 13,543 | 14,347 |
Total liabilities and shareholder's interest | 156,816 | 161,426 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
ASSETS | ||
Cash and cash equivalents | 2,549 | 3,202 |
Net Investment in Operating Leases | 14,410 | 14,883 |
Finance receivables, net | 54,038 | 58,478 |
Derivative financial instruments | 1 | 12 |
Liabilities | ||
Debt | 48,379 | 50,865 |
Derivative financial instruments | 110 | 19 |
Retail Installment loans, dealer financing, and other financing [Domain] [Member] | ||
ASSETS | ||
Finance receivables, net | 103,048 | 106,131 |
Loans and Finance Receivables [Member] | ||
ASSETS | ||
Finance receivables, net | 7,698 | 8,186 |
Property Subject to Operating Lease [Member] | ||
ASSETS | ||
Net Investment in Operating Leases | $ 27,030 | $ 27,659 |
Consolidated Statement of Share
Consolidated Statement of Shareholder's Interest - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Shareholder's Interest [Roll Forward] | ||
Balance at beginning of period | $ 5,227 | |
Net income | 21 | $ 603 |
Other Comprehensive Income (Loss), Net of Tax | (348) | 20 |
Distributions declared | 275 | 675 |
Balance at end of period | 5,227 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 13,543 | 14,923 |
Accounting Standards Update 2016-13 [Member] | ||
Shareholder's Interest [Roll Forward] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | (202) | |
Shareholder's Interest [Member] | ||
Shareholder's Interest [Roll Forward] | ||
Balance at beginning of period | 5,227 | 5,227 |
Net income | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 |
Distributions declared | 0 | 0 |
Balance at end of period | 5,227 | 5,227 |
Shareholder's Interest [Member] | Accounting Standards Update 2016-13 [Member] | ||
Shareholder's Interest [Roll Forward] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | |
Accumulated Other Comprehensive Income/(Loss) (Note11) [Member] | ||
Shareholder's Interest [Roll Forward] | ||
Balance at beginning of period | (785) | (829) |
Net income | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | (348) | 20 |
Distributions declared | 0 | 0 |
Balance at end of period | (1,133) | (809) |
Accumulated Other Comprehensive Income/(Loss) (Note11) [Member] | Accounting Standards Update 2016-13 [Member] | ||
Shareholder's Interest [Roll Forward] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | |
Retained Earnings [Member] | ||
Shareholder's Interest [Roll Forward] | ||
Balance at beginning of period | 9,905 | 10,577 |
Net income | 21 | 603 |
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 |
Distributions declared | 275 | 675 |
Balance at end of period | 9,449 | $ 10,505 |
Retained Earnings [Member] | Accounting Standards Update 2016-13 [Member] | ||
Shareholder's Interest [Roll Forward] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (202) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net Income | $ 21 | $ 603 |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||
Provision for Other Credit Losses | 586 | 33 |
Depreciation Depletion and Amortizations | 1,250 | 1,126 |
Amortization Of Upfront Interest Supplements | (532) | (529) |
Net Change in Finance Receivables Held-for-sale | (74) | 0 |
Net change in deferred income taxes | (272) | 58 |
Net change in other assets | (322) | (66) |
Net change in other liabilities | (583) | 284 |
All other operating activities | 103 | 183 |
Net Cash Provided by (Used in) Operating Activities | 177 | 1,692 |
Cash flows from investing activities | ||
Purchases of finance receivables | (8,222) | (8,542) |
Principal collections of finance receivables | 10,258 | 10,432 |
Purchases of operating lease vehicles | (3,441) | (3,184) |
Proceeds From Liquidations of Operating Lease Vehicles | 2,768 | 2,306 |
Net change in wholesale receivables and other | (881) | (1,844) |
Proceeds from Divestiture of Businesses | 1,340 | 0 |
Purchases of marketable securities | (680) | (803) |
Proceeds from sales and maturities of marketable securities | 1,535 | 274 |
Settlements of derivatives | 159 | 12 |
All other investing activities | (22) | (14) |
Net Cash Provided by (Used in) Investing Activities | 2,814 | (1,363) |
Cash flows from financing activities | ||
Proceeds from issuances of long-term debt | 11,623 | 15,411 |
Principal payments on long-term debt | (12,652) | (12,683) |
Change in short-term debt, net | (904) | (276) |
Cash distributions to parent | (275) | (675) |
All other financing activities | (21) | (37) |
Net Cash Provided by (Used in) Financing Activities | (2,229) | 1,740 |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (252) | 38 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at January 1 | 9,268 | 9,747 |
Net increase/(decrease) in cash, cash equivalents, and restricted cash | 510 | 2,107 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at March 31 | $ 9,778 | $ 11,854 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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”) 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments. On January 1, 2020, we adopted the new credit loss standard and all of the related amendments, which replaced the incurred loss impairment method with a method that reflects lifetime expected credit losses. We adopted the changes in accounting for credit losses by recognizing the cumulative effect of initially applying the new credit loss standard as an adjustment to the opening balance of Retained earnings . The comparative information has not been restated and continues to be reported under the accounting standard in effect for those periods. The cumulative effect of the changes made to our consolidated balance sheet at January 1, 2020 for the adoption of ASU 2016-13 was as follows (in millions): Balance at December 31, 2019 Adjustments due to ASU 2016-13 Balance at January 1, 2020 Assets Retail installment contracts, dealer financing, and other financing $ 106,131 $ (230 ) $ 105,901 Finance leases 8,186 (22 ) 8,164 Other assets 3,398 (8 ) 3,390 Liabilities Deferred income tax 2,593 (58 ) 2,535 Equity Retained earnings 9,905 (202 ) 9,703 NOTE 2. ACCOUNTING POLICIES (Continued) We also adopted the following ASUs during 2020 , none of which had a material impact to our financial statements or financial statement disclosures: ASU Effective Date 2020-01 Clarifying the Interaction between Equity Securities, Equity Method and Joint Ventures, and Derivatives and Hedging January 1, 2020 2018-18 Clarifying the Interaction between Collaborative Arrangements and Revenue from Contracts with Customers January 1, 2020 2018-15 Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract January 1, 2020 Accounting Standards Issued But Not Yet Adopted |
Cash, Cash Equivalents, and Mar
Cash, Cash Equivalents, and Marketable Securities | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 March 31, 2020 Cash and cash equivalents U.S. government 1 $ — $ 825 U.S. government and agencies 2 — 200 Non-U.S. government and agencies 2 350 378 Corporate debt 2 604 598 Total marketable securities classified as cash equivalents 954 2,001 Cash, time deposits and money market funds 8,113 7,627 Total cash and cash equivalents $ 9,067 $ 9,628 Marketable securities U.S. government 1 $ 195 $ 294 U.S. government and agencies 2 210 160 Non-U.S. government and agencies 2 2,408 1,520 Corporate debt 2 193 199 Other marketable securities 2 290 280 Total marketable securities $ 3,296 $ 2,453 Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash as reported in the statements of cash flows are presented separately on our consolidated balance sheets as follows (in millions): December 31, 2019 March 31, 2020 Cash and cash equivalents $ 9,067 $ 9,628 Restricted cash included in other assets (a) 139 150 Cash, cash equivalents and restricted cash in assets held-for-sale 62 — Total cash, cash equivalents, and restricted cash $ 9,268 $ 9,778 __________ (a) Restricted cash primarily includes cash held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of certain contractual agreements. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions. |
Finance Receivables
Finance Receivables | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Financing Receivables | FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES We manage finance receivables as “consumer” and “non-consumer” portfolios. The receivables are generally secured by the vehicles, inventory, or other property being financed. Finance receivables are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses. For all finance receivables, we define “past due” as any payment, including principal and interest, that is at least 31 days past the contractual due date. Total Finance Receivables, Net Total finance receivables, net were as follows (in millions): December 31, 2019 March 31, 2020 Consumer Retail installment contracts, gross $ 68,998 $ 66,201 Finance leases, gross 8,566 8,107 Retail financing, gross 77,564 74,308 Unearned interest supplements from Ford and affiliated companies (3,589 ) (3,402 ) Consumer finance receivables 73,975 70,906 Non-Consumer Dealer financing 38,910 39,104 Other financing 1,945 1,967 Non-Consumer finance receivables 40,855 41,071 Total recorded investment $ 114,830 $ 111,977 Recorded investment in finance receivables $ 114,830 $ 111,977 Allowance for credit losses (513 ) (1,231 ) Total finance receivables, net $ 114,317 $ 110,746 Net finance receivables subject to fair value (a) $ 106,131 $ 103,048 Fair value (b) 106,260 103,229 __________ (a) Net finance receivables subject to fair value exclude finance leases. (b) The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy. Finance leases are comprised of sales-type and direct financing leases. Financing revenue from finance leases was $ 92 million and $ 95 million for the periods ended March 31, 2019 and March 31, 2020 , respectively, and is included in Retail financing on the consolidated income statements. At December 31, 2019 and March 31, 2020 , accrued interest was $253 million and $240 million , respectively, which we report in Other assets on the consolidated balance sheets. Included in recorded investment in finance receivables were consumer and non-consumer receivables that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information. The value of finance receivables considered held-for-sale at December 31, 2019 was $ 1.5 billion primarily made up of $ 1.2 billion of Forso related finance receivables. At March 31, 2020, there were $ 36 million of certain wholesale finance receivables specifically identified as held-for-sale. These held-for-sale values are reported in Assets held-for-sale on the consolidated balance sheets. See Note 1 for additional information. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) 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. The credit quality analysis of consumer receivables at December 31, 2019 was as follows (in millions): Consumer 31-60 days past due $ 839 61-120 days past due 166 Greater than 120 days past due 35 Total past due 1,040 Current 72,935 Total $ 73,975 The credit quality analysis of consumer receivables at March 31, 2020 was as follows (in millions): Amortized Cost Basis by Origination Year Prior to 2016 2016 2017 2018 2019 2020 Total Consumer 31-60 days past due $ 79 $ 95 $ 139 $ 185 $ 143 $ 10 $ 651 61-120 days past due 13 21 36 43 35 1 149 Greater than 120 days past due 16 7 6 6 2 — 37 Total past due 108 123 181 234 180 11 837 Current 2,181 5,084 11,062 19,291 26,245 6,206 70,069 Total $ 2,289 $ 5,207 $ 11,243 $ 19,525 $ 26,425 $ 6,217 $ 70,906 NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) Non-Consumer Portfolio We use a proprietary model to assign each dealer a risk rating. This model uses historical dealer performance data to identify key factors about a dealer that we consider most significant in predicting a dealer’s ability to meet its financial obligations. We also consider numerous other financial and qualitative factors of the dealer’s operations, including capitalization and leverage, liquidity and cash flow, profitability, and credit history with ourselves and other creditors. The credit quality of dealer financing receivables is evaluated based on our internal dealer risk rating analysis. Dealers are assigned to one of four groups according to risk ratings as follows: • Group I – strong to superior financial metrics; • Group II – fair to favorable financial metrics; • Group III – marginal to weak financial metrics; and • Group IV – poor financial metrics, including dealers classified as uncollectible. The credit quality analysis of dealer financing receivables at December 31, 2019 was as follows (in millions): Dealer financing Group I $ 31,206 Group II 5,407 Group III 2,108 Group IV 189 Total (a) $ 38,910 __________ (a) Total past due dealer financing receivables at December 31, 2019 were $ 62 million . The credit quality analysis of dealer financing receivables at March 31, 2020 was as follows (in millions): Amortized Cost Basis by Origination Year Prior to 2016 2016 2017 2018 2019 2020 Total Wholesale Loans Total Group I $ 676 $ 147 $ 154 $ 276 $ 120 $ 122 $ 1,495 $ 29,438 $ 30,933 Group II 31 30 28 14 24 45 172 5,886 6,058 Group III 9 — 4 17 22 17 69 1,943 2,012 Group IV 2 1 — — 2 4 9 92 101 Total (a) $ 718 $ 178 $ 186 $ 307 $ 168 $ 188 $ 1,745 $ 37,359 $ 39,104 __________ (a) Total past due dealer financing receivables at March 31, 2020 were $ 34 million . Non-Accrual of Revenue. The accrual of financing revenue is discontinued at the time a receivable is determined to be uncollectible or when it is 90 days past due. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) Troubled Debt Restructuring (“TDR”). A restructuring of debt constitutes a TDR if we grant a concession to a debtor for economic or legal reasons related to the debtor’s financial difficulties that we otherwise would not consider. Consumer and non-consumer receivables that have a modified interest rate below market rate or that were modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code, except non-consumer receivables that are current with minimal risk of loss, are considered to be TDRs. We do not grant concessions on the principal balance of our receivables. If a receivable is modified in a reorganization proceeding, all payment requirements of the reorganization plan need to be met before remaining balances are forgiven. We have offered several programs to provide relief to customers and dealers during the COVID-19 pandemic. These programs, which were broadly available to our customers and dealers, included payment extensions. We concluded that these programs did not meet TDR criteria. Allowance for Credit Losses The allowance for credit losses represents our estimate of the lifetime expected credit losses inherent in finance receivables as of the balance sheet date. Additions to the allowance for credit losses are made by recording charges to the Provision for credit losses on our consolidated income statements. The uncollectible portion of finance receivables are charged to the allowance for credit losses at the earlier of when an account is deemed to be uncollectible or when an account is 120 days delinquent, taking into consideration the financial condition of the customer or borrower, the value of the collateral, recourse to guarantors, and other factors. Charge-offs on finance receivables include uncollected amounts related to principal, interest, late fees, and other allowable charges. Recoveries on finance receivables previously charged off as uncollectible are credited to the allowance for credit losses. In the event we repossess the collateral, the receivable is charged off and we record the collateral at its estimated fair value less costs to sell and report it in Other assets on the consolidated balance sheets. Consumer Portfolio Receivables in this portfolio include products offered to individuals and businesses that finance the acquisition of Ford and Lincoln vehicles from dealers for personal or commercial use. Retail financing includes retail installment contracts for new and used vehicles and finance leases with retail customers, government entities, daily rental companies, and fleet customers. For consumer receivables that share similar risk characteristics such as product type, initial credit risk, term, vintage, geography, and other relevant factors, we estimate the lifetime expected credit loss allowance based on a collective assessment using measurement models and management judgment. The lifetime expected credit losses for the receivables is determined by applying probability of default and loss given default models to monthly expected exposures then discounting these cash flows to present value using the receivable’s original effective interest rate or the current effective interest rate for a variable rate receivable. Probability of default models are developed from internal risk scoring models taking into account the expected probability of payment and time to default, adjusted for macroeconomic outlook and recent performance. The models consider factors such as risk evaluation at the time of origination, historical trends in credit losses (which include the impact of TDRs), and the composition and recent performance of the present portfolio (including vehicle brand, term, risk evaluation, and new / used vehicles). The loss given default is the percentage of the expected balance due at default that is not recoverable, taking into account the expected collateral value and trends in recoveries (including key metrics such as delinquencies, repossessions, and bankruptcies). Monthly exposures are equal to the receivables’ expected outstanding principal and interest balance. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) The loss allowance incorporates forward-looking macroeconomic conditions for baseline, upturn, and downturn scenarios. Three separate credit loss allowances are calculated from these scenarios. They are then probability-weighted to determine the credit loss allowance recognized in the financial statements. We use forecasts from a third party that revert to a long-term historical average after a reasonable and supportable forecasting period which is specific to the particular macroeconomic variable and which varies by market. We update the forward-looking macroeconomic forecasts quarterly. If management does not believe the models reflect lifetime expected credit losses for the portfolio, an adjustment is made to reflect management judgment regarding observable changes in recent or expected economic trends and conditions, portfolio composition, and other relevant factors. On an ongoing basis, we review our models, including macroeconomic factors, the selection of macroeconomic scenarios and their weighting to ensure they reflect the risk of the portfolio. Non-Consumer Portfolio Dealer financing includes wholesale loans to dealers to finance vehicle inventory, also known as floorplan financing, as well as loans to dealers to finance working capital, improvements to dealership facilities, to finance purchase of dealership real estate, and to finance other dealer programs. Dealer financing is evaluated on an individual dealer basis by segmenting dealers by risk characteristics (such as the amount of the loans, the nature of the collateral, financial status of the dealer, and TDR modifications) to determine if an individual dealer requires a specific allowance for credit loss. If required, the allowance is based on the present value of the expected future cash flows of the dealer’s receivables discounted at the loans’ original effective interest rate or the fair value of the collateral adjusted for estimated costs to sell. For the remaining dealer financing, we estimate an allowance for credit losses on a collective basis. Wholesale Loans. We estimate the allowance for credit losses for wholesale loans based on historical loss-to-receivable (LTR) ratios, expected future cash flows, and the fair value of collateral. For wholesale loans with similar risk characteristics, the allowance for credit losses is estimated on a collective basis using the LTR model and management judgment. The LTR model is based on the most recent years of history. An LTR is calculated by dividing credit losses (i.e., charge-offs net of recoveries) by average net finance receivables, excluding unearned interest supplements and allowance for credit losses. The average LTR is multiplied by the end-of-period balances, representing the lifetime expected credit loss reserve. Dealer Loans . We use a weighted-average remaining maturity method to estimate the lifetime expected credit loss reserve for dealer loans. The loss model is based on the industry-wide commercial real estate credit losses, adjusted to factor in the historical credit losses for our dealer loans portfolio. The expected credit loss is calculated under different economic scenarios and are weighted to provide the total lifetime expected credit loss. After establishing the collective and specific allowance for credit losses, if management believes the allowance does not reflect all losses inherent in the portfolio due to changes in recent economic trends and conditions, or other relevant forward-looking economic factors, an adjustment is made based on management judgment. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) An analysis of the allowance for credit losses related to finance receivables for the periods ended March 31 was as follows (in millions): First Quarter 2019 (a) Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 566 $ 23 $ 589 Charge-offs (137 ) (17 ) (154 ) Recoveries 43 2 45 Provision for credit losses 24 9 33 Other — — — Ending balance 496 17 513 First Quarter 2020 Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 496 $ 17 $ 513 Adoption of ASU 2016-13 (b) 247 5 252 Charge-offs (145 ) (1 ) (146 ) Recoveries 43 2 45 Provision for credit losses 534 52 586 Other (c) (18 ) (1 ) (19 ) Ending balance $ 1,157 $ 74 $ 1,231 __________ (a) The comparative information has not been restated and continues to be reported under the accounting standard in effect during 2019. (b) Cumulative pre-tax adjustments recorded to retained earnings as of January 1, 2020. See Note 2 for additional information. (c) Primarily represents amounts related to translation adjustments. During the first quarter of 2020, the allowance for credit losses increased $ 718 million reflecting an increase to the reserve of $ 252 million related to the adoption of ASU 2016-13, and an increase of $ 486 million primarily attributable to COVID-19, offset by a decrease for translation adjustments. The economic uncertainty along with government mandated stay-at-home orders, which resulted in extensive temporary closures of businesses and drove a significant increase in unemployment, is expected to increase the probability of default and loss given default rates in our consumer portfolio over the next twelve months, especially in the United States. These economic trends and conditions are also expected to negatively impact our dealers. While we anticipate government relief programs, our customer payment deferral programs, and dealer support actions to mitigate these impacts, the overall result on credit losses is expected to be adverse. |
Net Investments in Operating Le
Net Investments in Operating Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases, Operating [Abstract] | |
NET INVESTMENT IN OPERATING LEASES | NET INVESTMENT IN OPERATING LEASES Net investment in operating leases consists primarily of lease contracts for vehicles with individuals, daily rental companies, and fleet customers with terms of 60 months or less . Included in Net investment in operating leases are net investments in operating leases sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information. Net investment in operating leases was as follows (in millions): December 31, March 31, Vehicles, at cost (a) $ 33,431 $ 32,849 Accumulated depreciation (5,772 ) (5,819 ) Net investment in operating leases $ 27,659 $ 27,030 __________ (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. Accumulated depreciation at March 31, 2020 includes a $ 70 million increase due to potential estimated higher customer default rates from economic conditions attributable to COVID-19. The increase was included in Depreciation on vehicles subject to operating leases. We evaluate the carrying value of held-and-used long-lived asset groups (such as vehicles subject to operating leases) for potential impairment when we determine a triggering event has occurred. When a triggering event occurs, a test for recoverability is performed by comparing projected undiscounted future cash flows to the carrying value of the asset group. If the test for recoverability identifies a possible impairment, the asset group’s fair value is measured in accordance with the fair value measurement framework. An impairment charge is recognized for the amount by which the carrying value of the asset group exceeds its estimated fair value. For the first quarter of 2020, we considered the economic slowdown resulting from COVID-19 and determined a triggering event has not occurred. For the periods presented, we have not recorded any impairment charges. |
Transfers of Receivables
Transfers of Receivables | 3 Months Ended |
Mar. 31, 2020 | |
Transfers and Servicing [Abstract] | |
TRANSFERS OF RECEIVABLES | NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES We securitize finance receivables and net investment in operating leases through a variety of programs using amortizing, variable funding, and revolving structures. We also sell finance receivables 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. The debt is the obligation of our consolidated securitization entities and not the obligation of Ford Credit or our other subsidiaries. We use special purpose entities to issue asset-backed securities in our securitization transactions. 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. NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued) 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. Securitization transactions that are exposed to interest rate or currency risk may reduce their risks by entering into derivative transactions. In certain instances, we have entered into derivative transactions with the counterparty to protect the counterparty from risks absorbed through its derivative transactions with the securitization entities. See Note 7 for additional information regarding derivatives. Most of these securitization transactions utilize VIEs. The following tables show the assets and debt related to our securitization transactions that were included in our financial statements (in billions): December 31, 2019 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt (c) Before Allowance Allowance for After Allowance VIE (b) Retail financing $ 1.8 $ 32.6 $ 0.2 $ 32.4 $ 28.0 Wholesale financing 0.9 26.1 — 26.1 13.4 Finance receivables 2.7 58.7 0.2 58.5 41.4 Net investment in operating leases 0.5 14.9 — 14.9 9.5 Total VIE $ 3.2 $ 73.6 $ 0.2 $ 73.4 $ 50.9 Non-VIE Retail financing $ 0.3 $ 5.7 $ — $ 5.7 $ 5.1 Wholesale financing — 0.7 — 0.7 0.6 Finance receivables 0.3 6.4 — 6.4 5.7 Net investment in operating leases — — — — — Total Non-VIE $ 0.3 $ 6.4 $ — $ 6.4 $ 5.7 Total securitization transactions Retail financing $ 2.1 $ 38.3 $ 0.2 $ 38.1 $ 33.1 Wholesale financing 0.9 26.8 — 26.8 14.0 Finance receivables 3.0 65.1 0.2 64.9 47.1 Net investment in operating leases 0.5 14.9 — 14.9 9.5 Total securitization transactions $ 3.5 $ 80.0 $ 0.2 $ 79.8 $ 56.6 __________ (a) Unearned interest supplements and residual support are excluded from securitization transactions. (b) Includes assets to be used to settle the liabilities of the consolidated VIEs. (c) Includes unamortized discount and debt issuance costs. NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued) March 31, 2020 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 $ 1.6 $ 29.4 $ 0.4 $ 29.0 $ 25.7 Wholesale financing 0.3 25.0 — 25.0 13.7 Finance receivables 1.9 54.4 0.4 54.0 39.4 Net investment in operating leases 0.6 14.4 — 14.4 9.0 Total VIE $ 2.5 $ 68.8 $ 0.4 $ 68.4 $ 48.4 Non-VIE Retail financing $ 0.4 $ 7.6 $ 0.1 $ 7.5 $ 6.8 Wholesale financing — 0.7 — 0.7 0.5 Finance receivables 0.4 8.3 0.1 8.2 7.3 Net investment in operating leases — — — — — Total Non-VIE $ 0.4 $ 8.3 $ 0.1 $ 8.2 $ 7.3 Total securitization transactions Retail financing $ 2.0 $ 37.0 $ 0.5 $ 36.5 $ 32.5 Wholesale financing 0.3 25.7 — 25.7 14.2 Finance receivables 2.3 62.7 0.5 62.2 46.7 Net investment in operating leases 0.6 14.4 — 14.4 9.0 Total securitization transactions $ 2.9 $ 77.1 $ 0.5 $ 76.6 $ 55.7 __________ (a) Unearned interest supplements and residual support are excluded from securitization transactions. (b) Includes assets to be used to settle the liabilities of the consolidated VIEs. (c) Includes unamortized discount and debt issuance cost. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES In the normal course of business, our operations are exposed to global market risks, including the effect of changes in interest rates and foreign currency exchange rates. To manage these risks, we enter into highly effective derivative contracts. We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting. Income Effect of Derivative Financial Instruments The gains / (losses), by hedge designation, reported in income for the periods ended March 31 were as follows (in millions): First Quarter 2019 2020 Fair value hedges Interest rate contracts Net interest settlements and accruals on hedging instruments $ (20 ) $ 28 Fair value changes on hedging instruments 250 1,110 Fair value changes on hedged debt (253 ) (1,093 ) Derivatives not designated as hedging instruments Interest rate contracts (27 ) (74 ) Foreign currency exchange contracts (a) (6 ) 207 Cross-currency interest rate swap contracts (145 ) (151 ) Total $ (201 ) $ 27 __________ (a) Reflects forward contracts between Ford Credit and an affiliated company. 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 were as follows (in millions): December 31, 2019 March 31, 2020 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Fair value hedges Interest rate contracts $ 26,577 $ 702 $ 19 $ 23,663 $ 1,549 $ — Derivatives not designated as hedging instruments Interest rate contracts 68,914 275 191 72,822 651 561 Foreign currency exchange contracts 5,540 17 79 3,002 94 2 Cross-currency interest rate swap contracts 5,849 134 67 5,938 126 238 Total derivative financial instruments, gross (a) (b) $ 106,880 $ 1,128 $ 356 $ 105,425 $ 2,420 $ 801 __________ (a) At December 31, 2019 and March 31, 2020 , we held collateral of $18 million and $23 million , respectively, and we posted collateral of $78 million and $86 million , respectively. (b) At December 31, 2019 and March 31, 2020 , the fair value of assets and liabilities available for counterparty netting was $169 million and $451 |
Other Assets and Other Liabilit
Other Assets and Other Liabilities and Deferred Income | 3 Months Ended |
Mar. 31, 2020 | |
Other Assets and Other Liabilities and Deferred Income [Abstract] | |
OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED INCOME | OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED REVENUE Other assets and other liabilities and deferred revenue consist of various balance sheet items that are combined for financial statement presentation due to their respective materiality compared with other individual asset and liability items. Other assets were as follows (in millions): December 31, March 31, Accrued interest and other non-finance receivables $ 898 $ 847 Collateral held for resale, at net realizable value 843 803 Prepaid reinsurance premiums and other reinsurance recoverables 687 689 Property and equipment, net of accumulated depreciation (a) 212 212 Deferred charges - income taxes 171 168 Investment in non-consolidated affiliates (b) 132 126 Operating lease assets 108 103 Other 347 354 Total other assets $ 3,398 $ 3,302 __________ (a) Accumulated depreciation was $393 million and $396 million at December 31, 2019 and March 31, 2020 , respectively. (b) Adoption of ASU 2016-13 reduced investment in non-consolidated affiliates $8 million . See Note 2 for additional information. Returned operating lease vehicles and repossessed vehicles are classified as collateral held for resale and recorded at net realizable value. At March 31, 2020, we reduced the value of our collateral held for resale by $ 59 million to reflect the impact of COVID-19 economic conditions on the expected auction values, with a charge of $ 54 million to Depreciation on vehicles subject to operating leases and a charge of $ 5 million to Provision for credit losses. Other liabilities and deferred revenue were as follows (in millions): December 31, March 31, Unearned insurance premiums and fees $ 806 $ 805 Interest payable 888 608 Income tax and related interest (a) 433 212 Operating lease liabilities 110 105 Deferred revenue 110 103 Other 286 250 Total other liabilities and deferred revenue $ 2,633 $ 2,083 __________ (a) Includes tax and interest payable to affiliated companies of $ 294 million and $ 75 million at December 31, 2019 and March 31, 2020 , respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | DEBT Debt outstanding and interest rates were as follows (in millions): Interest Rates Debt Average Contractual Average Effective December 31, March 31, 2019 2020 2019 2020 Short-term debt Unsecured debt Floating rate demand notes $ 6,545 $ 5,709 Commercial paper 3,560 2,867 Other short-term debt 2,731 2,754 Asset-backed debt (a) 881 1,094 Total short-term debt 13,717 12,424 2.8 % 2.5 % 2.8 % 2.5 % Long-term debt Unsecured debt Notes payable within one year 15,062 17,137 Notes payable after one year 55,148 51,138 Asset-backed debt (a) Notes payable within one year 23,609 21,736 Notes payable after one year 32,162 32,973 Unamortized (discount) / premium 7 6 Unamortized issuance costs (214 ) (207 ) Fair value adjustments (b) 538 1,629 Total long-term debt 126,312 124,412 3.0 % 2.9 % 3.0 % 2.9 % Total debt $ 140,029 $ 136,836 2.9 % 2.9 % 3.0 % 2.9 % Fair value of debt (c) $ 141,678 $ 128,714 __________ (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 fair value hedges. The carrying value of hedged debt was $39.4 billion and $41.6 billion at December 31, 2019 and March 31, 2020 , respectively. (c) The fair value of debt includes $12.8 billion and $11.3 billion of short-term debt at December 31, 2019 and March 31, 2020 |
Other Income, Net
Other Income, Net | 3 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | OTHER INCOME / (LOSS), NET Other income / (loss) consists of various line items that are combined on the income statements due to their respective materiality compared with other individual income and expense items. The amounts included in Other income / (loss), net for the periods ended March 31 were as follows (in millions): First Quarter 2019 2020 Gains / (Losses) on derivatives $ (178 ) $ (18 ) Currency revaluation gains / (losses) 131 (61 ) Interest and investment income 79 63 Other 27 4 Total other income / (loss), net $ 59 $ (12 ) |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
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. As of January 1, 2020 we updated our reportable segments in our consolidated financial statements to align with our new management reporting structure and reflect the manner in which our Chief Operating Decision Maker manages our business, including resource allocation and performance assessment. These segments are: the United States and Canada, Europe and All Other. Our All Other segment includes China, India, Mexico, Brazil, Argentina, and our joint venture in South Africa. Items excluded in assessing segment performance because they are managed at the corporate level, including market valuation adjustments to derivatives and exchange-rate fluctuations on foreign currency-denominated transactions, are reflected in Unallocated Other. Key financial information for our business segments for the periods ended or at March 31 was as follows (in millions): United States and Canada Europe All Other Total Segments Unallocated Other (a) Total First Quarter 2019 (b) Total revenue $ 2,711 $ 303 $ 180 $ 3,194 $ — $ 3,194 Income before income taxes 622 114 58 794 7 801 Other disclosures: Depreciation on vehicles subject to operating leases 912 12 — 924 — 924 Interest expense 931 80 102 1,113 8 1,121 Provision for credit losses 40 5 (12 ) 33 — 33 Net finance receivables and net investment in operating leases (c) 121,735 27,066 6,473 155,274 (8,418 ) 146,856 Total assets 127,575 30,537 7,303 165,415 — 165,415 First Quarter 2020 Total revenue $ 2,631 $ 281 $ 120 $ 3,032 $ — $ 3,032 Income before income taxes 22 17 7 46 (16 ) 30 Other disclosures: Depreciation on vehicles subject to operating leases 1,039 13 — 1,052 — 1,052 Interest expense 845 90 65 1,000 (16 ) 984 Provision for credit losses 520 53 13 586 — 586 Net finance receivables and net investment in operating leases (c) 118,006 24,346 4,034 146,386 (8,610 ) 137,776 Total assets 123,917 27,604 5,295 156,816 — 156,816 __________ (a) Finance receivables, net and Net investment in operating lease includes unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation). (b) Comparative information has been updated to reflect the reportable segments as of January 1, 2020. (c) Excludes held-for-sale finance receivables. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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 31 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 assets and liabilities are reported in Other assets and Other liabilities and deferred revenue , respectively, on our consolidated balance sheets. Guarantees and Indemnifications Guarantees and indemnifications are recorded at fair value at their inception. For financial guarantees, subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. The probability of default is applied to the expected exposure at the time of default less recoveries to determine the expected payments. Factors to consider when estimating the probability of default include the obligor’s financial position, forecasted economic environment, historical loss rates, and other communications. For non-financial guarantees, we regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the amount of probable payment is recorded. The maximum potential payments under these guarantees and limited indemnities totaled $53 million and $126 million at December 31, 2019 and March 31, 2020 , respectively. Of these values, $ 48 million and $51 million at December 31, 2019 and March 31, 2020 , respectively, were counter-guaranteed by Ford to us. There were no recorded liabilities related to guarantees and limited indemnities at December 31, 2019 or March 31, 2020 . 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. NOTE 12. COMMITMENTS AND CONTINGENCIES (Continued) 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 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 € 42 million (equivalent to $46 million at March 31, 2020). On March 8, 2019, FCE appealed the decision and the fine, and a hearing has been scheduled for October 21, 2020. 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) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 (“2019 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. |
Reclassifications [Abstract] | |
Income Tax, Policy [Policy Text Block] | For interim tax reporting we estimate one single effective tax rate, which is applied to the year-to-date ordinary income / (loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. |
Loans and Leases Receivable Disclosure [Abstract] | |
Financing Receivable [Policy Text Block] | Non-Accrual of Revenue. The accrual of financing revenue is discontinued at the time a receivable is determined to be uncollectible or when it is 90 days past due. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) Troubled Debt Restructuring (“TDR”). A restructuring of debt constitutes a TDR if we grant a concession to a debtor for economic or legal reasons related to the debtor’s financial difficulties that we otherwise would not consider. Consumer and non-consumer receivables that have a modified interest rate below market rate or that were modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code, except non-consumer receivables that are current with minimal risk of loss, are considered to be TDRs. We do not grant concessions on the principal balance of our receivables. If a receivable is modified in a reorganization proceeding, all payment requirements of the reorganization plan need to be met before remaining balances are forgiven. |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Policy [Policy Text Block] | We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting. |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Leases [Policy Text Block] | Net investment in operating leases consists primarily of lease contracts for vehicles with individuals, daily rental companies, and fleet customers with terms of 60 months or less . Included in Net investment in operating leases are net investments in operating leases sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information. |
Guarantees and Indemnifications Policies [Policy Text Block] | Guarantees and indemnifications are recorded at fair value at their inception. For financial guarantees, subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. The probability of default is applied to the expected exposure at the time of default less recoveries to determine the expected payments. Factors to consider when estimating the probability of default include the obligor’s financial position, forecasted economic environment, historical loss rates, and other communications. For non-financial guarantees, we regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the amount of probable payment is recorded. |
Cash, Cash Equivalents, and M_2
Cash, Cash Equivalents, and Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 March 31, 2020 Cash and cash equivalents U.S. government 1 $ — $ 825 U.S. government and agencies 2 — 200 Non-U.S. government and agencies 2 350 378 Corporate debt 2 604 598 Total marketable securities classified as cash equivalents 954 2,001 Cash, time deposits and money market funds 8,113 7,627 Total cash and cash equivalents $ 9,067 $ 9,628 Marketable securities U.S. government 1 $ 195 $ 294 U.S. government and agencies 2 210 160 Non-U.S. government and agencies 2 2,408 1,520 Corporate debt 2 193 199 Other marketable securities 2 290 280 Total marketable securities $ 3,296 $ 2,453 |
Schedule of cash, cash equivalents and restricted cash [Table Text Block] | Cash, cash equivalents, and restricted cash as reported in the statements of cash flows are presented separately on our consolidated balance sheets as follows (in millions): December 31, 2019 March 31, 2020 Cash and cash equivalents $ 9,067 $ 9,628 Restricted cash included in other assets (a) 139 150 Cash, cash equivalents and restricted cash in assets held-for-sale 62 — Total cash, cash equivalents, and restricted cash $ 9,268 $ 9,778 __________ (a) Restricted cash primarily includes cash held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of certain contractual agreements. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions. |
Finance Receivables (Tables)
Finance Receivables (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Financing Receivables [Line Items] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Total finance receivables, net were as follows (in millions): December 31, 2019 March 31, 2020 Consumer Retail installment contracts, gross $ 68,998 $ 66,201 Finance leases, gross 8,566 8,107 Retail financing, gross 77,564 74,308 Unearned interest supplements from Ford and affiliated companies (3,589 ) (3,402 ) Consumer finance receivables 73,975 70,906 Non-Consumer Dealer financing 38,910 39,104 Other financing 1,945 1,967 Non-Consumer finance receivables 40,855 41,071 Total recorded investment $ 114,830 $ 111,977 Recorded investment in finance receivables $ 114,830 $ 111,977 Allowance for credit losses (513 ) (1,231 ) Total finance receivables, net $ 114,317 $ 110,746 Net finance receivables subject to fair value (a) $ 106,131 $ 103,048 Fair value (b) 106,260 103,229 __________ (a) Net finance receivables subject to fair value exclude finance leases. (b) The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy. |
Schedule of Aging Analysis for Total Finance Receivables [Table Text Block] | The credit quality analysis of consumer receivables at December 31, 2019 was as follows (in millions): Consumer 31-60 days past due $ 839 61-120 days past due 166 Greater than 120 days past due 35 Total past due 1,040 Current 72,935 Total $ 73,975 The credit quality analysis of consumer receivables at March 31, 2020 was as follows (in millions): Amortized Cost Basis by Origination Year Prior to 2016 2016 2017 2018 2019 2020 Total Consumer 31-60 days past due $ 79 $ 95 $ 139 $ 185 $ 143 $ 10 $ 651 61-120 days past due 13 21 36 43 35 1 149 Greater than 120 days past due 16 7 6 6 2 — 37 Total past due 108 123 181 234 180 11 837 Current 2,181 5,084 11,062 19,291 26,245 6,206 70,069 Total $ 2,289 $ 5,207 $ 11,243 $ 19,525 $ 26,425 $ 6,217 $ 70,906 |
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 at December 31, 2019 was as follows (in millions): Dealer financing Group I $ 31,206 Group II 5,407 Group III 2,108 Group IV 189 Total (a) $ 38,910 __________ (a) Total past due dealer financing receivables at December 31, 2019 were $ 62 million . The credit quality analysis of dealer financing receivables at March 31, 2020 was as follows (in millions): Amortized Cost Basis by Origination Year Prior to 2016 2016 2017 2018 2019 2020 Total Wholesale Loans Total Group I $ 676 $ 147 $ 154 $ 276 $ 120 $ 122 $ 1,495 $ 29,438 $ 30,933 Group II 31 30 28 14 24 45 172 5,886 6,058 Group III 9 — 4 17 22 17 69 1,943 2,012 Group IV 2 1 — — 2 4 9 92 101 Total (a) $ 718 $ 178 $ 186 $ 307 $ 168 $ 188 $ 1,745 $ 37,359 $ 39,104 __________ (a) Total past due dealer financing receivables at March 31, 2020 were $ 34 million . |
Finance Receivables and Allowan
Finance Receivables and Allowance for Credit Losses Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | An analysis of the allowance for credit losses related to finance receivables for the periods ended March 31 was as follows (in millions): First Quarter 2019 (a) Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 566 $ 23 $ 589 Charge-offs (137 ) (17 ) (154 ) Recoveries 43 2 45 Provision for credit losses 24 9 33 Other — — — Ending balance 496 17 513 First Quarter 2020 Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 496 $ 17 $ 513 Adoption of ASU 2016-13 (b) 247 5 252 Charge-offs (145 ) (1 ) (146 ) Recoveries 43 2 45 Provision for credit losses 534 52 586 Other (c) (18 ) (1 ) (19 ) Ending balance $ 1,157 $ 74 $ 1,231 __________ (a) The comparative information has not been restated and continues to be reported under the accounting standard in effect during 2019. (b) Cumulative pre-tax adjustments recorded to retained earnings as of January 1, 2020. See Note 2 for additional information. (c) Primarily represents amounts related to translation adjustments. |
Net Investment in Operating Lea
Net Investment in Operating Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases, Operating [Abstract] | |
Net investment in operating leases [Table Text Block] | Net investment in operating leases was as follows (in millions): December 31, March 31, Vehicles, at cost (a) $ 33,431 $ 32,849 Accumulated depreciation (5,772 ) (5,819 ) Net investment in operating leases $ 27,659 $ 27,030 __________ (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. |
Transfers of Receivables (Table
Transfers of Receivables (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Schedule of Assets and Liabilities Related to Securitization Transactions [Table Text Block] | Most of these securitization transactions utilize VIEs. The following tables show the assets and debt related to our securitization transactions that were included in our financial statements (in billions): December 31, 2019 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt (c) Before Allowance Allowance for After Allowance VIE (b) Retail financing $ 1.8 $ 32.6 $ 0.2 $ 32.4 $ 28.0 Wholesale financing 0.9 26.1 — 26.1 13.4 Finance receivables 2.7 58.7 0.2 58.5 41.4 Net investment in operating leases 0.5 14.9 — 14.9 9.5 Total VIE $ 3.2 $ 73.6 $ 0.2 $ 73.4 $ 50.9 Non-VIE Retail financing $ 0.3 $ 5.7 $ — $ 5.7 $ 5.1 Wholesale financing — 0.7 — 0.7 0.6 Finance receivables 0.3 6.4 — 6.4 5.7 Net investment in operating leases — — — — — Total Non-VIE $ 0.3 $ 6.4 $ — $ 6.4 $ 5.7 Total securitization transactions Retail financing $ 2.1 $ 38.3 $ 0.2 $ 38.1 $ 33.1 Wholesale financing 0.9 26.8 — 26.8 14.0 Finance receivables 3.0 65.1 0.2 64.9 47.1 Net investment in operating leases 0.5 14.9 — 14.9 9.5 Total securitization transactions $ 3.5 $ 80.0 $ 0.2 $ 79.8 $ 56.6 __________ (a) Unearned interest supplements and residual support are excluded from securitization transactions. (b) Includes assets to be used to settle the liabilities of the consolidated VIEs. (c) Includes unamortized discount and debt issuance costs. NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued) March 31, 2020 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 $ 1.6 $ 29.4 $ 0.4 $ 29.0 $ 25.7 Wholesale financing 0.3 25.0 — 25.0 13.7 Finance receivables 1.9 54.4 0.4 54.0 39.4 Net investment in operating leases 0.6 14.4 — 14.4 9.0 Total VIE $ 2.5 $ 68.8 $ 0.4 $ 68.4 $ 48.4 Non-VIE Retail financing $ 0.4 $ 7.6 $ 0.1 $ 7.5 $ 6.8 Wholesale financing — 0.7 — 0.7 0.5 Finance receivables 0.4 8.3 0.1 8.2 7.3 Net investment in operating leases — — — — — Total Non-VIE $ 0.4 $ 8.3 $ 0.1 $ 8.2 $ 7.3 Total securitization transactions Retail financing $ 2.0 $ 37.0 $ 0.5 $ 36.5 $ 32.5 Wholesale financing 0.3 25.7 — 25.7 14.2 Finance receivables 2.3 62.7 0.5 62.2 46.7 Net investment in operating leases 0.6 14.4 — 14.4 9.0 Total securitization transactions $ 2.9 $ 77.1 $ 0.5 $ 76.6 $ 55.7 __________ (a) Unearned interest supplements and residual support are excluded from securitization transactions. (b) Includes assets to be used to settle the liabilities of the consolidated VIEs. (c) Includes unamortized discount and debt issuance cost. |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The gains / (losses), by hedge designation, reported in income for the periods ended March 31 were as follows (in millions): First Quarter 2019 2020 Fair value hedges Interest rate contracts Net interest settlements and accruals on hedging instruments $ (20 ) $ 28 Fair value changes on hedging instruments 250 1,110 Fair value changes on hedged debt (253 ) (1,093 ) Derivatives not designated as hedging instruments Interest rate contracts (27 ) (74 ) Foreign currency exchange contracts (a) (6 ) 207 Cross-currency interest rate swap contracts (145 ) (151 ) Total $ (201 ) $ 27 __________ (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 were as follows (in millions): December 31, 2019 March 31, 2020 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Fair value hedges Interest rate contracts $ 26,577 $ 702 $ 19 $ 23,663 $ 1,549 $ — Derivatives not designated as hedging instruments Interest rate contracts 68,914 275 191 72,822 651 561 Foreign currency exchange contracts 5,540 17 79 3,002 94 2 Cross-currency interest rate swap contracts 5,849 134 67 5,938 126 238 Total derivative financial instruments, gross (a) (b) $ 106,880 $ 1,128 $ 356 $ 105,425 $ 2,420 $ 801 __________ (a) At December 31, 2019 and March 31, 2020 , we held collateral of $18 million and $23 million , respectively, and we posted collateral of $78 million and $86 million , respectively. (b) At December 31, 2019 and March 31, 2020 , the fair value of assets and liabilities available for counterparty netting was $169 million and $451 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy. |
Other Assets and Other Liabil_2
Other Assets and Other Liabilities and Deferred Income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Assets and Other Liabilities and Deferred Income [Abstract] | |
Schedule of Other Assets and Other Liabilities [Table Text Block] | Other assets were as follows (in millions): December 31, March 31, Accrued interest and other non-finance receivables $ 898 $ 847 Collateral held for resale, at net realizable value 843 803 Prepaid reinsurance premiums and other reinsurance recoverables 687 689 Property and equipment, net of accumulated depreciation (a) 212 212 Deferred charges - income taxes 171 168 Investment in non-consolidated affiliates (b) 132 126 Operating lease assets 108 103 Other 347 354 Total other assets $ 3,398 $ 3,302 __________ (a) Accumulated depreciation was $393 million and $396 million at December 31, 2019 and March 31, 2020 , respectively. (b) Adoption of ASU 2016-13 reduced investment in non-consolidated affiliates $8 million . See Note 2 for additional information. Returned operating lease vehicles and repossessed vehicles are classified as collateral held for resale and recorded at net realizable value. At March 31, 2020, we reduced the value of our collateral held for resale by $ 59 million to reflect the impact of COVID-19 economic conditions on the expected auction values, with a charge of $ 54 million to Depreciation on vehicles subject to operating leases and a charge of $ 5 million to Provision for credit losses. Other liabilities and deferred revenue were as follows (in millions): December 31, March 31, Unearned insurance premiums and fees $ 806 $ 805 Interest payable 888 608 Income tax and related interest (a) 433 212 Operating lease liabilities 110 105 Deferred revenue 110 103 Other 286 250 Total other liabilities and deferred revenue $ 2,633 $ 2,083 __________ (a) Includes tax and interest payable to affiliated companies of $ 294 million and $ 75 million at December 31, 2019 and March 31, 2020 , respectively. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Debt outstanding and interest rates were as follows (in millions): Interest Rates Debt Average Contractual Average Effective December 31, March 31, 2019 2020 2019 2020 Short-term debt Unsecured debt Floating rate demand notes $ 6,545 $ 5,709 Commercial paper 3,560 2,867 Other short-term debt 2,731 2,754 Asset-backed debt (a) 881 1,094 Total short-term debt 13,717 12,424 2.8 % 2.5 % 2.8 % 2.5 % Long-term debt Unsecured debt Notes payable within one year 15,062 17,137 Notes payable after one year 55,148 51,138 Asset-backed debt (a) Notes payable within one year 23,609 21,736 Notes payable after one year 32,162 32,973 Unamortized (discount) / premium 7 6 Unamortized issuance costs (214 ) (207 ) Fair value adjustments (b) 538 1,629 Total long-term debt 126,312 124,412 3.0 % 2.9 % 3.0 % 2.9 % Total debt $ 140,029 $ 136,836 2.9 % 2.9 % 3.0 % 2.9 % Fair value of debt (c) $ 141,678 $ 128,714 __________ (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 fair value hedges. The carrying value of hedged debt was $39.4 billion and $41.6 billion at December 31, 2019 and March 31, 2020 , respectively. (c) The fair value of debt includes $12.8 billion and $11.3 billion of short-term debt at December 31, 2019 and March 31, 2020 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income [Table Text Block] | The amounts included in Other income / (loss), net for the periods ended March 31 were as follows (in millions): First Quarter 2019 2020 Gains / (Losses) on derivatives $ (178 ) $ (18 ) Currency revaluation gains / (losses) 131 (61 ) Interest and investment income 79 63 Other 27 4 Total other income / (loss), net $ 59 $ (12 ) |
Segment and Geographic Informat
Segment and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Key financial information for our business segments for the periods ended or at March 31 was as follows (in millions): United States and Canada Europe All Other Total Segments Unallocated Other (a) Total First Quarter 2019 (b) Total revenue $ 2,711 $ 303 $ 180 $ 3,194 $ — $ 3,194 Income before income taxes 622 114 58 794 7 801 Other disclosures: Depreciation on vehicles subject to operating leases 912 12 — 924 — 924 Interest expense 931 80 102 1,113 8 1,121 Provision for credit losses 40 5 (12 ) 33 — 33 Net finance receivables and net investment in operating leases (c) 121,735 27,066 6,473 155,274 (8,418 ) 146,856 Total assets 127,575 30,537 7,303 165,415 — 165,415 First Quarter 2020 Total revenue $ 2,631 $ 281 $ 120 $ 3,032 $ — $ 3,032 Income before income taxes 22 17 7 46 (16 ) 30 Other disclosures: Depreciation on vehicles subject to operating leases 1,039 13 — 1,052 — 1,052 Interest expense 845 90 65 1,000 (16 ) 984 Provision for credit losses 520 53 13 586 — 586 Net finance receivables and net investment in operating leases (c) 118,006 24,346 4,034 146,386 (8,610 ) 137,776 Total assets 123,917 27,604 5,295 156,816 — 156,816 __________ (a) Finance receivables, net and Net investment in operating lease includes unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation). (b) Comparative information has been updated to reflect the reportable segments as of January 1, 2020. (c) Excludes held-for-sale finance receivables. |
Presentation (Details)
Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Income before income taxes | $ 30 | $ 801 | |
Financing Receivable, Allowance for Credit Loss | 586 | 33 | |
Disposal Group, Including Discontinued Operation, Assets | 36 | $ 1,698 | |
Disposal Group, Including Discontinued Operation, Other Liabilities | 0 | 45 | |
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | 4 | 20 | |
Proceeds from Divestiture of Businesses | $ 1,340 | $ 0 | |
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, 2019 (“2019 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. Global Pandemic On March 11, 2020, the World Health Organization characterized the outbreak of COVID-19 as a global pandemic and recommended containment and mitigation measures. Since then, extraordinary actions have been taken by international, federal, state, and local public health and governmental authorities to contain and combat the outbreak and spread of COVID-19 in regions throughout the world. These actions include travel bans, quarantines, “stay-at-home” orders, and similar mandates for many individuals to substantially restrict daily activities and for many businesses to curtail or cease normal operations. Consistent with the actions taken by governmental authorities, as of late March 2020, nearly all of our employees, other than China, are working remotely in order to reduce the spread of COVID-19. The full impact of the COVID-19 pandemic on our full year financial results will depend on future developments, such as the ultimate duration and scope of the outbreak, its impact on customers, dealers, and suppliers, how quickly normal economic conditions resume, Ford’s operations, customer demand for Ford’s products and the financing of new and used vehicles return to pre-COVID-19 levels, and the risk of recessionary conditions in key markets due to the effects of the pandemic. Although the ultimate impact on Ford Credit cannot be determined at this time, we expect our full year 2020 results of operations to be adversely affected. Our first quarter 2020 results reflect about a $ 700 million adverse impact due to the estimated impact of COVID-19 the most significant of which is a charge to Provision for credit losses of $ 486 million to reflect higher estimated defaults on our retail portfolio, a charge to depreciation expense of $ 70 million reflecting higher expected defaults related to operating leases, and a charge to depreciation expense of $ 54 million reflecting lower expected auction values related to operating lease vehicles awaiting sale at auction (collateral held for resale). The remaining COVID-19 impact was primarily driven by market valuation adjustments to derivatives. Our estimates of the effect of COVID-19 on our financial statements are based on a variety of factors and are subject to many uncertainties. See Notes 4, 5, and 8 for additional information. NOTE 1. PRESENTATION (Continued) Restructuring Actions Beginning in the fourth quarter of 2019, we determined that it was not probable that we would hold certain assets and liabilities for more than the following twelve months, and these assets and liabilities were reported as held-for-sale. The total value of our Assets held-for-sale presented at fair value at December 31, 2019 and March 31, 2020 were $ 1,698 million and $36 million , respectively, and Liabilities held-for-sale presented at fair value at December 31, 2019 and March 31, 2020 were $ 45 million and $0 million , respectively. We committed to a plan to sell our operations in Forso Nordic AB (“Forso”), a wholly owned subsidiary, which provides retail and dealer financing in Denmark, Finland, Norway, and Sweden, during the fourth quarter of 2019 at which time we recognized a loss of $ 20 million due to a fair value impairment. The sale of Forso was completed in the first quarter of 2020 resulting in an additional loss of $ 4 million and cash proceeds of $ 1,340 million . Forso related Assets held-for-sale and Liabilities held-for-sale at December 31, 2019 were $ 1,416 million and $ 45 million , respectively (excluding intercompany assets of $ 2 million and intercompany liabilities of $ 1,274 million | ||
Forso Nordic AB [Member] | |||
Disposal Group, Including Discontinued Operation, Intercompany Assets | 2 | ||
Disposal Group, Including Discontinued Operation, Intercompany Liabilities | 1,274 | ||
Disposal Group, Including Discontinued Operation, Assets | 1,416 | ||
Disposal Group, Including Discontinued Operation, Other Liabilities | $ 45 | ||
Adverse impact [Member] | |||
Income before income taxes | $ 700 | ||
Financing Receivable, Allowance for Credit Loss | 486 | ||
Depreciation | 70 | ||
Loss on Contract Termination for Default | $ 54 |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finance receivables, net | $ 110,746 | $ 114,317 | |
Other Assets | 3,302 | $ 3,390 | 3,398 |
Deferred Tax Liabilities, Gross | 2,225 | 2,535 | 2,593 |
Retained Earnings (Accumulated Deficit) | 9,449 | 9,703 | 9,905 |
Accounting Standards Update 2016-13 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finance receivables, net | 252 | ||
Other Assets | (8) | ||
Deferred Tax Liabilities, Gross | (58) | ||
Retained Earnings (Accumulated Deficit) | (202) | ||
Retail Installment loans, dealer financing, and other financing [Domain] [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finance receivables, net | $ 103,048 | 105,901 | 106,131 |
Retail Installment loans, dealer financing, and other financing [Domain] [Member] | Accounting Standards Update 2016-13 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finance receivables, net | (230) | ||
Finance Lease [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finance receivables, net | 8,164 | $ 8,186 | |
Finance Lease [Member] | Accounting Standards Update 2016-13 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finance receivables, net | $ (22) |
Cash, Cash Equivalents, and M_3
Cash, Cash Equivalents, and Marketable Securities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash, Cash Equivalents, and Short-term Investments | $ 7,627 | $ 8,113 | ||
Total cash and cash equivalents | 9,628 | 9,067 | ||
Restricted Cash | 150 | 139 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Disposal Group, Including Discontinued Operations | 0 | 62 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 9,778 | 9,268 | $ 11,854 | $ 9,747 |
Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 2,001 | 954 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Marketable securities | 2,453 | 3,296 | ||
US Government [Member] | Fair Value, Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 825 | 0 | ||
Marketable securities | 294 | 195 | ||
US Government Agencies [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 200 | 0 | ||
Marketable securities | 160 | 210 | ||
Debt Security, Government, Non-US [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 378 | 350 | ||
Marketable securities | 1,520 | 2,408 | ||
Corporate debt [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 598 | 604 | ||
Marketable securities | 199 | 193 | ||
Other Debt Obligations [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Marketable securities | $ 280 | $ 290 |
Finance Receivables Net (Detail
Finance Receivables Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Threshold Period Past Due | 31 days | ||||
Sales Type and Direct Financing Lease Revenue | $ 95 | $ 92 | |||
Net Finance Receivables [Abstract] | |||||
Financing Receivable, before Allowance for Credit Loss | 111,977 | $ 114,830 | |||
Financing Receivable, Allowance for Credit Loss | 1,231 | 513 | 513 | $ 589 | |
Finance leases, net | 110,746 | 114,317 | |||
Uncollected interest receivable excluded from finance receivable | 240 | 253 | |||
Financing Receivable, Reclassification to Held-for-sale | 1,500 | ||||
Disposal Group, Including Discontinued Operation, Other Liabilities | 0 | 45 | |||
Disposal Group, Including Discontinued Operation, Assets | 36 | 1,698 | |||
Consumer Segment [Member] | |||||
Net Finance Receivables [Abstract] | |||||
Financing Receivable, before Allowance for Credit Loss | 70,906 | ||||
Financing Receivable, Allowance for Credit Loss | 1,157 | 496 | 496 | 566 | |
Non-Consumer Segment [Member] | |||||
Net Finance Receivables [Abstract] | |||||
Financing Receivable, before Allowance for Credit Loss | 41,071 | 40,855 | |||
Financing Receivable, Allowance for Credit Loss | 74 | $ 17 | 17 | $ 23 | |
Retail Installment Loans [Member] | Consumer Segment [Member] | |||||
Net Finance Receivables [Abstract] | |||||
Financing Receivable, before Allowance for Credit Loss | 66,201 | 68,998 | |||
Retail [Member] | Consumer Segment [Member] | |||||
Net Finance Receivables [Abstract] | |||||
Unearned interest supplements from Ford and affiliated companies | (3,402) | (3,589) | |||
Financing Receivable, before Allowance for Credit Loss | 70,906 | 73,975 | |||
Finance Receivable Before Unearned Interest Supplements | 74,308 | 77,564 | |||
Finance leases [Domain] | |||||
Net Finance Receivables [Abstract] | |||||
Finance leases, net | 7,698 | 8,186 | |||
Finance leases [Domain] | Consumer Segment [Member] | |||||
Net Finance Receivables [Abstract] | |||||
Financing Receivable, before Allowance for Credit Loss | 8,107 | 8,566 | |||
Wholesale and Dealer Loans [Member] | Non-Consumer Segment [Member] | |||||
Net Finance Receivables [Abstract] | |||||
Financing Receivable, before Allowance for Credit Loss | 39,104 | 38,910 | |||
Other Finance Receivables [Member] | Non-Consumer Segment [Member] | |||||
Net Finance Receivables [Abstract] | |||||
Financing Receivable, before Allowance for Credit Loss | 1,967 | 1,945 | |||
Retail Installment loans, dealer financing, and other financing [Domain] [Member] | |||||
Net Finance Receivables [Abstract] | |||||
Finance leases, net | 103,048 | 106,131 | $ 105,901 | ||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Net Finance Receivables [Abstract] | |||||
Finance leases, net | 103,048 | 106,131 | |||
Fair value (b) | $ 103,229 | 106,260 | |||
Forso Nordic AB [Member] | |||||
Net Finance Receivables [Abstract] | |||||
Financing Receivable, Reclassification to Held-for-sale | 1,200 | ||||
Disposal Group, Including Discontinued Operation, Other Liabilities | 45 | ||||
Disposal Group, Including Discontinued Operation, Assets | $ 1,416 |
Finance Receivables - Credit Qu
Finance Receivables - Credit Quality and Impaired Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-Accrual of Revenue | P90D | |
Contract with Customer, Asset, Past Due | $ 1,040 | |
Contract with Customer, Asset, Not Past Due | 72,935 | |
Contract with Customer, Asset, before Allowance for Credit Loss | 73,975 | |
Financing Receivables | $ 111,977 | 114,830 |
Dealer Financing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Past Due | 34 | 62 |
Consumer Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 2,289 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 5,207 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 11,243 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 19,525 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 26,425 | |
Financing Receivable, Originated in Current Fiscal Year | 6,217 | |
Financing Receivables | $ 70,906 | |
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 | |
Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Revolving | $ 37,359 | |
Financing Receivables | 41,071 | 40,855 |
Commercial Portfolio Segment [Member] | Group I | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Revolving | 29,438 | |
Commercial Portfolio Segment [Member] | Group II | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Revolving | 5,886 | |
Commercial Portfolio Segment [Member] | Group III | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Revolving | 1,943 | |
Commercial Portfolio Segment [Member] | Group IV | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Revolving | 92 | |
Commercial Portfolio Segment [Member] | Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 39,104 | |
Commercial Portfolio Segment [Member] | Commercial Portfolio Segment [Member] | Group I | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 30,933 | |
Commercial Portfolio Segment [Member] | Commercial Portfolio Segment [Member] | Group II | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 6,058 | |
Commercial Portfolio Segment [Member] | Commercial Portfolio Segment [Member] | Group III | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 2,012 | |
Commercial Portfolio Segment [Member] | Commercial Portfolio Segment [Member] | Group IV | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 101 | |
Commercial Portfolio Segment [Member] | Wholesale and Dealer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 39,104 | 38,910 |
Commercial Portfolio Segment [Member] | Wholesale and Dealer Loans [Member] | Group I | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 31,206 | |
Commercial Portfolio Segment [Member] | Wholesale and Dealer Loans [Member] | Group II | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 5,407 | |
Commercial Portfolio Segment [Member] | Wholesale and Dealer Loans [Member] | Group III | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 2,108 | |
Commercial Portfolio Segment [Member] | Wholesale and Dealer Loans [Member] | Group IV | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 189 | |
Wholesale and Dealer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 1,745 | |
Wholesale and Dealer Loans [Member] | Group I | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 1,495 | |
Wholesale and Dealer Loans [Member] | Group II | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 172 | |
Wholesale and Dealer Loans [Member] | Group III | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 69 | |
Wholesale and Dealer Loans [Member] | Group IV | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 9 | |
Financial Asset, 1 to 29 Days Past Due [Member] | Consumer Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 2,181 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 5,084 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 11,062 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 19,291 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 26,245 | |
Financing Receivable, Originated in Current Fiscal Year | 6,206 | |
Financing Receivables | 70,069 | |
Financial Asset, 1 to 29 Days Past Due [Member] | Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 718 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 178 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 186 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 307 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 168 | |
Financing Receivable, Originated in Current Fiscal Year | 188 | |
Financing Receivables, 31-60 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Contract with Customer, Asset, Past Due | 839 | |
Financing Receivables, 31-60 Days Past Due [Member] | Consumer Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 79 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 95 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 139 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 185 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 143 | |
Financing Receivable, Originated in Current Fiscal Year | 10 | |
Financing Receivables | 651 | |
Financing Receivables, 31-60 Days Past Due [Member] | Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 676 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 147 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 154 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 276 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 120 | |
Financing Receivable, Originated in Current Fiscal Year | 122 | |
Financing Receivables, 61-120 Days past due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Contract with Customer, Asset, Past Due | 166 | |
Financing Receivables, 61-120 Days past due [Member] | Consumer Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 13 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 21 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 36 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 43 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 35 | |
Financing Receivable, Originated in Current Fiscal Year | 1 | |
Financing Receivables | 149 | |
Financing Receivables, 61-120 Days past due [Member] | Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 31 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 30 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 28 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 14 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 24 | |
Financing Receivable, Originated in Current Fiscal Year | 45 | |
Financing Receivables, Greater Than 120 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Contract with Customer, Asset, Past Due | $ 35 | |
Financing Receivables, Greater Than 120 Days Past Due [Member] | Consumer Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 16 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 7 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 6 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 6 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 2 | |
Financing Receivable, Originated in Current Fiscal Year | 0 | |
Financing Receivables | 37 | |
Financing Receivables, Greater Than 120 Days Past Due [Member] | Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 9 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 4 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 17 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 22 | |
Financing Receivable, Originated in Current Fiscal Year | 17 | |
Total past due [Member] | Consumer Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 108 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 123 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 181 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 234 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 180 | |
Financing Receivable, Originated in Current Fiscal Year | 11 | |
Financing Receivables | 837 | |
Total past due [Member] | Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 2 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 1 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 2 | |
Financing Receivable, Originated in Current Fiscal Year | $ 4 |
Finance Receivables and Allow_2
Finance Receivables and Allowance for Credit Losses Allowance for credit losses (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss | $ 1,231 | $ 513 | $ 513 | $ 589 | |
Finance receivables, net | 110,746 | 114,317 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff | (146) | (154) | |||
Financing Receivable, Allowance for Credit Loss, Recovery | 45 | 45 | |||
Provision for Loan, Lease, and Other Losses | 586 | 33 | |||
Financing Receivable, Allowance for Credit Losses, Other | (19) | 0 | |||
Financing Receivable, before Allowance for Credit Loss | 111,977 | 114,830 | |||
Consumer Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Loss | 1,157 | 496 | 496 | 566 | |
Financing Receivable, Allowance for Credit Loss, Writeoff | (145) | (137) | |||
Financing Receivable, Allowance for Credit Loss, Recovery | 43 | 43 | |||
Provision for Loan, Lease, and Other Losses | 534 | 24 | |||
Financing Receivable, Allowance for Credit Losses, Other | (18) | 0 | |||
Financing Receivable, before Allowance for Credit Loss | 70,906 | ||||
Commercial Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Loss | 74 | 17 | 17 | $ 23 | |
Financing Receivable, Allowance for Credit Loss, Writeoff | (1) | (17) | |||
Financing Receivable, Allowance for Credit Loss, Recovery | 2 | 2 | |||
Provision for Loan, Lease, and Other Losses | 52 | 9 | |||
Financing Receivable, Allowance for Credit Losses, Other | (1) | $ 0 | |||
Financing Receivable, before Allowance for Credit Loss | 41,071 | 40,855 | |||
Accounting Standards Update 2016-13 [Member] | |||||
Financing Receivable, Allowance for Credit Loss | $ 252 | ||||
Finance receivables, net | 252 | ||||
Accounting Standards Update 2016-13 [Member] | Consumer Portfolio Segment [Member] | |||||
Finance receivables, net | 247 | ||||
Accounting Standards Update 2016-13 [Member] | Commercial Portfolio Segment [Member] | |||||
Finance receivables, net | 5 | ||||
Retail Installment loans, dealer financing, and other financing [Domain] [Member] | |||||
Finance receivables, net | 103,048 | 105,901 | $ 106,131 | ||
Retail Installment loans, dealer financing, and other financing [Domain] [Member] | Accounting Standards Update 2016-13 [Member] | |||||
Finance receivables, net | $ (230) | ||||
Adverse impact [Member] | |||||
Financing Receivable, Allowance for Credit Loss | 718 | ||||
Global pandemic [Member] | |||||
Financing Receivable, Allowance for Credit Loss | $ 486 |
Net Investments in Operating _2
Net Investments in Operating Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Net Investment in Operating Leases, Length of Lease | 60 months or less | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 396 | $ 393 |
Net Investment in Operating Leases | 27,030 | 27,659 |
Property Subject to Operating Lease [Member] | ||
Property Subject to or Available for Operating Lease, Gross | 32,849 | 33,431 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 5,819 | 5,772 |
Net Investment in Operating Leases | 27,030 | $ 27,659 |
Estimated customer default rate [Member] | Property Subject to Operating Lease [Member] | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 70 |
Transfers of Receivables - Asse
Transfers of Receivables - Assets and Liabilities of Securitizations (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | $ 9,628 | $ 9,067 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 137,776 | $ 146,856 | |
Related Debt | 136,836 | 140,029 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 2,549 | 3,202 | |
Related Debt | 48,379 | 50,865 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 2,500 | 3,200 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 68,800 | 73,600 | |
Allowance for Credit Losses | 400 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 68,400 | 73,400 | |
Related Debt | 48,400 | 50,900 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 1,900 | 2,700 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 54,400 | 58,700 | |
Allowance for Credit Losses | 400 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 54,000 | 58,500 | |
Related Debt | 39,400 | 41,400 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Retail [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 1,600 | 1,800 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 29,400 | 32,600 | |
Allowance for Credit Losses | 400 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 29,000 | 32,400 | |
Related Debt | 25,700 | 28,000 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Wholesale [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 300 | 900 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 25,000 | 26,100 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 25,000 | 26,100 | |
Related Debt | 13,700 | 13,400 | |
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 | 14,400 | 14,900 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 14,400 | 14,900 | |
Related Debt | 9,000 | 9,500 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 400 | 300 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 8,300 | 6,400 | |
Allowance for Credit Losses | 100 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 8,200 | 6,400 | |
Related Debt | 7,300 | 5,700 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 400 | 300 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 8,300 | 6,400 | |
Allowance for Credit Losses | 100 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 8,200 | 6,400 | |
Related Debt | 7,300 | 5,700 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Retail [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 400 | 300 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 7,600 | 5,700 | |
Allowance for Credit Losses | 100 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 7,500 | 5,700 | |
Related Debt | 6,800 | 5,100 | |
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 | 700 | 700 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 700 | 700 | |
Related Debt | 500 | 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 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 2,900 | 3,500 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 77,100 | 80,000 | |
Allowance for Credit Losses | 500 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 76,600 | 79,800 | |
Related Debt | 55,700 | 56,600 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 2,300 | 3,000 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 62,700 | 65,100 | |
Allowance for Credit Losses | 500 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 62,200 | 64,900 | |
Related Debt | 46,700 | 47,100 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Retail [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 2,000 | 2,100 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 37,000 | 38,300 | |
Allowance for Credit Losses | 500 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 36,500 | 38,100 | |
Related Debt | 32,500 | 33,100 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Wholesale [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 300 | 900 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 25,700 | 26,800 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 25,700 | 26,800 | |
Related Debt | 14,200 | 14,000 | |
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 | 14,400 | 14,900 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 14,400 | 14,900 | |
Related Debt | $ 9,000 | $ 9,500 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Debt Carrying Value Fair Value | $ 41,600 | $ 39,400 | |
Income Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Gain (Loss) on Derivative, Net | 27 | $ (201) | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 2,420 | 1,128 | |
Fair Value of Derivative Liabilities | 801 | 356 | |
Derivative, Notional Amount | 105,425 | 106,880 | |
Derivative, Collateral, Obligation to Return Cash | 23 | 18 | |
Derivative, Collateral, Right to Reclaim Cash | 86 | 78 | |
Derivative Asset, Not Offset, Policy Election Deduction | 451 | 169 | |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | |||
Income Effect of Derivative Financial Instruments [Abstract] | |||
Net interest settlements and accruals excluded from the assessment of hedge effectiveness | 28 | (20) | |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 1,110 | 250 | |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (1,093) | (253) | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Notional Amount | 23,663 | 26,577 | |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | Fair Value Hedging [Member] | |||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 1,549 | 702 | |
Fair Value of Derivative Liabilities | 0 | 19 | |
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Income Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Gain (Loss) on Derivative, Net | (74) | (27) | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Notional Amount | 72,822 | 68,914 | |
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | |||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 651 | 275 | |
Fair Value of Derivative Liabilities | 561 | 191 | |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Income Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Gain (Loss) on Derivative, Net | 207 | (6) | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Notional Amount | 3,002 | 5,540 | |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | |||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 94 | 17 | |
Fair Value of Derivative Liabilities | 2 | 79 | |
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 | (151) | $ (145) | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Notional Amount | 5,938 | 5,849 | |
Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | |||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 126 | 134 | |
Fair Value of Derivative Liabilities | $ 238 | $ 67 |
Other Assets and Other Liabil_3
Other Assets and Other Liabilities and Deferred Income (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2019 | |
Other Assets and Other Liabilities [Abstract] | ||||
Accrued interest and other non-finance receivables | $ 847 | $ 898 | ||
Collateral held for resale, at net realizable value, and other inventory | 803 | 843 | ||
Prepaid Reinsurance Premiums and Other Reinsurance Recoverables | 689 | 687 | ||
Deferred charges - income taxes | 168 | 171 | ||
Property and equipment, net of accumulated depreciation | 212 | 212 | ||
Operating lease assets | 103 | 108 | ||
Investment in non-consolidated affiliates | (126) | (132) | ||
Other | 354 | 347 | ||
Total other assets | 3,302 | $ 3,390 | 3,398 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 396 | 393 | ||
Provision for Other Credit Losses | 586 | $ 33 | ||
Unearned Premiums and Fees | 805 | 806 | ||
Interest Payable | 608 | 888 | ||
Taxes Payable | 212 | 433 | ||
Deferred Revenue | 103 | 110 | ||
Operating Lease, Liability | 105 | 110 | ||
Other Liabilities, Miscellaneous | 250 | 286 | ||
Other Liabilities | 2,083 | 2,633 | ||
Related Party Transactions Income Taxes and Related Interest Payable | 75 | 294 | ||
Accounting Standards Update 2016-13 [Member] | ||||
Other Assets and Other Liabilities [Abstract] | ||||
Investment in non-consolidated affiliates | 8 | |||
Total other assets | $ (8) | |||
Global Pandemic Impact [Member] | ||||
Other Assets and Other Liabilities [Abstract] | ||||
Provision for Other Credit Losses | 5 | |||
Property Subject to Operating Lease [Member] | ||||
Other Assets and Other Liabilities [Abstract] | ||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 5,819 | $ 5,772 | ||
Property Subject to Operating Lease [Member] | Global Pandemic Impact [Member] | ||||
Other Assets and Other Liabilities [Abstract] | ||||
Collateral held for resale, at net realizable value, and other inventory | 59 | |||
Adverse impact [Member] | ||||
Other Assets and Other Liabilities [Abstract] | ||||
Loss on Contract Termination for Default | 54 | |||
Provision for Other Credit Losses | $ 486 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total short-term debt | $ 12,424 | $ 13,717 |
Unamortized discount | 6 | 7 |
Unamortized debt issuance costs | (207) | (214) |
Fair value adjustments | 1,629 | 538 |
Total long-term debt | 124,412 | 126,312 |
Total debt | $ 136,836 | $ 140,029 |
Average Contractual (interest rate) | 2.90% | 2.90% |
Average Effective (interest rate) | 2.90% | 3.00% |
Debt Carrying Value Fair Value | $ 41,600 | $ 39,400 |
Fair value of short-term debt | 11,300 | 12,800 |
Floating Rate Demand Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 5,709 | 6,545 |
Unsecured commercial paper [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 2,867 | 3,560 |
Other short-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 2,754 | 2,731 |
Asset-backed Securities [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 1,094 | 881 |
Notes payable within one year | 21,736 | 23,609 |
Notes payable after one year | $ 32,973 | $ 32,162 |
Total short-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Average Contractual (interest rate) | 2.50% | 2.80% |
Average Effective (interest rate) | 2.50% | 2.80% |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable within one year | $ 17,137 | $ 15,062 |
Notes payable after one year | $ 51,138 | $ 55,148 |
Total long-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Average Contractual (interest rate) | 2.90% | 3.00% |
Average Effective (interest rate) | 2.90% | 3.00% |
Fair Value, Nonrecurring [Member] | Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 128,714 | $ 141,678 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | ||
Gains/(Losses) on derivatives | $ (18) | $ (178) |
Currency revaluation gains/(losses) | (61) | 131 |
Interest and investment income | 63 | 79 |
Other | 4 | 27 |
Other income, net | $ (12) | $ 59 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 3,032 | $ 3,194 | |
Income before income taxes | 30 | 801 | |
Other disclosures [Abstract] | |||
Depreciation on vehicles subject to operating leases | (1,052) | (924) | |
Interest expense | 984 | 1,121 | |
Provision for credit losses | 586 | 33 | |
Net finance receivables and net investment in operating leases | 137,776 | 146,856 | |
Total assets | 156,816 | 165,415 | $ 161,426 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 3,032 | 3,194 | |
Income before income taxes | 46 | 794 | |
Other disclosures [Abstract] | |||
Depreciation on vehicles subject to operating leases | (1,052) | (924) | |
Interest expense | 1,000 | 1,113 | |
Provision for credit losses | 586 | 33 | |
Net finance receivables and net investment in operating leases | 146,386 | 155,274 | |
Total assets | 156,816 | 165,415 | |
Operating Segments [Member] | Americas [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 2,631 | 2,711 | |
Income before income taxes | 22 | 622 | |
Other disclosures [Abstract] | |||
Depreciation on vehicles subject to operating leases | (1,039) | (912) | |
Interest expense | 845 | 931 | |
Provision for credit losses | 520 | 40 | |
Net finance receivables and net investment in operating leases | 118,006 | 121,735 | |
Total assets | 123,917 | 127,575 | |
Operating Segments [Member] | Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 281 | 303 | |
Income before income taxes | 17 | 114 | |
Other disclosures [Abstract] | |||
Depreciation on vehicles subject to operating leases | (13) | (12) | |
Interest expense | 90 | 80 | |
Provision for credit losses | 53 | 5 | |
Net finance receivables and net investment in operating leases | 24,346 | 27,066 | |
Total assets | 27,604 | 30,537 | |
Operating Segments [Member] | Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 120 | 180 | |
Income before income taxes | 7 | 58 | |
Other disclosures [Abstract] | |||
Depreciation on vehicles subject to operating leases | 0 | 0 | |
Interest expense | 65 | 102 | |
Provision for credit losses | 13 | (12) | |
Net finance receivables and net investment in operating leases | 4,034 | 6,473 | |
Total assets | 5,295 | 7,303 | |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 0 | 0 | |
Income before income taxes | (16) | 7 | |
Other disclosures [Abstract] | |||
Depreciation on vehicles subject to operating leases | 0 | 0 | |
Interest expense | (16) | 8 | |
Provision for credit losses | 0 | 0 | |
Net finance receivables and net investment in operating leases | (8,610) | (8,418) | |
Total assets | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Guarantor Obligations [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 46 | |
Financial Guarantee [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 126 | $ 53 |
Counter Guarantee [Member] | Ford Motor Company [Member] | ||
Guarantor Obligations [Line Items] | ||
Counter guarantee | $ 51 | $ 48 |
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 | 31 years | |
Euro Member Countries, Euro | ||
Guarantor Obligations [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 42 |