Document and Entity Information
Document and Entity Information Document $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)shares | |
Entity Registrant Name | FORD MOTOR CREDIT CO LLC |
Entity Central Index Key | 0000038009 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Document Type | 10-K |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | shares | 0 |
Entity Shell Company | false |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
Entity Public Float | $ | $ 0 |
Membership Interests Description | All of the limited liability company interests in the registrant (“Shares”) are held by an affiliate of the registrant. None of the Shares are publicly traded. |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | One American Road |
Entity Address, City or Town | Dearborn, |
Entity Address, State or Province | MI |
Entity Tax Identification Number | 38-1612444 |
Entity Address, Postal Zip Code | 48126 |
Document Transition Report | false |
Entity File Number | 1-6368 |
City Area Code | (313) |
Local Phone Number | 322-3000 |
Entity Interactive Data Current | Yes |
Entity Small Business | false |
Document Quarterly Report | true |
ICFR Auditor Attestation Flag | true |
F/21C [Member] | |
Title of 12(b) Security | Floating Rate Notes due May 14, 2021* |
Trading Symbol | F/21C |
Security Exchange Name | NYSE |
F/21AQ [Member] | |
Title of 12(b) Security | Floating Rate Notes due December 1, 2021* |
Trading Symbol | F/21AQ |
Security Exchange Name | NYSE |
F/22T [Member] | |
Title of 12(b) Security | Floating Rate Notes due December 7, 2022* |
Trading Symbol | F/22T |
Security Exchange Name | NYSE |
F/23D [Member] | |
Title of 12(b) Security | Floating Rate Notes due November 15, 2023* |
Trading Symbol | F/23D |
Security Exchange Name | NYSE |
F/24L [Member] | |
Title of 12(b) Security | Floating Rate Notes due December 1, 2024* |
Trading Symbol | F/24L |
Security Exchange Name | NYSE |
F/23E [Member] | |
Title of 12(b) Security | 0.623% Notes due June 28, 2023* |
Trading Symbol | F/23E |
Security Exchange Name | NYSE |
F/25i [Member] | |
Title of 12(b) Security | 1.355% Notes due February 7, 2025* |
Trading Symbol | F/25I |
Security Exchange Name | NYSE |
F/24O [Member] | |
Title of 12(b) Security | 4.125% Notes due on June 20, 2024* |
Trading Symbol | F/24O |
Security Exchange Name | NYSE |
F/24M [Member] | |
Title of 12(b) Security | 3.021% Notes due March 6, 2024* |
Trading Symbol | F/24M |
Security Exchange Name | NYSE |
F/25K [Member] | |
Title of 12(b) Security | 4.535% Notes due March 6, 2025* |
Trading Symbol | F/25K |
Security Exchange Name | NYSE |
F/26N [Member] | |
Title of 12(b) Security | 3.350% Notes due Nine Months or More from the Date of Issue due August 20, 2026 |
Trading Symbol | F/26N |
Security Exchange Name | NYSE |
F/23G [Member] | |
Title of 12(b) Security | 1.514% Notes due February 17, 2023* |
Trading Symbol | F/23G |
Security Exchange Name | NYSE |
F/26AB [Member] | |
Title of 12(b) Security | 2.386% Notes due February 17, 2026* |
Trading Symbol | F/26AB |
Security Exchange Name | NYSE |
F/24R [Member] | |
Title of 12(b) Security | 1.744% Notes due July 19, 2024* |
Trading Symbol | F/24R |
Security Exchange Name | NYSE |
F/25L [Member] | |
Title of 12(b) Security | 2.330% Notes due on November 25, 2025* |
Trading Symbol | F/25L |
Security Exchange Name | NYSE |
F/24Q [Member] | |
Title of 12(b) Security | 3.683% Notes due on December 3, 2024* |
Trading Symbol | F/24Q |
Security Exchange Name | NYSE |
F/25M [Member] | |
Title of 12(b) Security | 3.250% Notes due September 15, 2025* |
Trading Symbol | F/25M |
Security Exchange Name | NYSE |
F/25S | |
Title of 12(b) Security | 2.748% Notes due on June 14, 2024* |
Trading Symbol | F/24S |
Security Exchange Name | NYSE |
Consolidated Income Statement
Consolidated Income Statement - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing revenue | |||
Operating leases | $ 5,653 | $ 5,899 | $ 5,795 |
Retail financing | 3,927 | 3,958 | 3,891 |
Dealer financing | 1,474 | 2,265 | 2,207 |
Other | 88 | 96 | 84 |
Total Financing Revenue | 11,142 | 12,218 | 11,977 |
Depreciation on vehicles subject to operating leases | (3,235) | (3,635) | (3,973) |
Interest expense | (3,402) | (4,389) | (3,930) |
Net financing margin | 4,505 | 4,194 | 4,074 |
Other revenue | |||
Insurance premiums earned | 143 | 182 | 167 |
Fee based revenue and other | 177 | 223 | 238 |
Total financing margin and other revenue | 4,825 | 4,599 | 4,479 |
Expenses | |||
Operating expenses | 1,330 | 1,416 | 1,429 |
Provision for credit losses | 828 | 296 | 426 |
Insurance expenses | 82 | 103 | 77 |
Total expenses | 2,240 | 1,815 | 1,932 |
Other income, net | 23 | 214 | 80 |
Income before income taxes | 2,608 | 2,998 | 2,627 |
Provision for income taxes | 684 | 770 | 403 |
Net income | $ 1,924 | $ 2,228 | $ 2,224 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net income | $ 1,924 | $ 2,228 | $ 2,224 |
Foreign currency translation | 372 | 44 | (410) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest, Total | $ 2,296 | $ 2,272 | $ 1,814 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and Cash Equivalents, at Carrying Value | $ 14,349 | $ 9,067 |
Marketable securities | 4,860 | 3,296 |
Finance receivables, net | 105,070 | 114,317 |
Net investment in operating leases | 26,655 | 27,659 |
Notes and accounts receivable from affiliated companies | 853 | 863 |
Derivative financial instruments | 2,601 | 1,128 |
Disposal Group, Including Discontinued Operation, Assets | 36 | 1,698 |
Other assets | 4,593 | 3,398 |
Total assets | 159,017 | 161,426 |
Liabilities | ||
Customer deposits, dealer reserves, and other | 1,087 | 1,002 |
Affiliated companies | 490 | 421 |
Total accounts payable | 1,577 | 1,423 |
Debt | 137,677 | 140,029 |
Deferred income taxes | 2,907 | 2,593 |
Derivative financial instruments | 524 | 356 |
Disposal Group, Including Discontinued Operation, Liabilities | 0 | 45 |
Other liabilities and deferred income | 2,306 | 2,633 |
Total liabilities | 144,991 | 147,079 |
Shareholder's interest | ||
Shareholder's interest | 5,227 | 5,227 |
Accumulated other comprehensive income | (413) | (785) |
Retained earnings | 9,212 | 9,905 |
Total shareholder’s interest | 14,026 | 14,347 |
Total liabilities and shareholder's interest | 159,017 | 161,426 |
Financing Receivable, Allowance for Credit Loss | 1,305 | 513 |
Retail Installment loans, dealer financing, and other financing [Member] | ||
ASSETS | ||
Finance receivables, net | 97,043 | 106,131 |
Finance Lease [Member] | ||
ASSETS | ||
Finance receivables, net | 8,027 | 8,186 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
ASSETS | ||
Cash and Cash Equivalents, at Carrying Value | 2,822 | 3,202 |
Finance receivables, net | 51,472 | 58,478 |
Net investment in operating leases | 12,794 | 14,883 |
Derivative financial instruments | 0 | 12 |
Liabilities | ||
Debt | 46,770 | 50,865 |
Derivative financial instruments | $ 56 | $ 19 |
Consolidated Statement of Share
Consolidated Statement of Shareholder's Interest - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Total shareholder’s interest | $ 14,026 | $ 14,347 | $ 14,026 | $ 14,347 | |||
Shareholder's Interest [Roll Forward] | |||||||
Balance at beginning of period | $ 14,347 | $ 14,975 | 14,347 | 14,975 | $ 15,884 | ||
Net income | 637 | 21 | 441 | 603 | 1,924 | 2,228 | 2,224 |
Other comprehensive income/(loss), net of tax | 372 | 44 | (410) | ||||
Balance at end of period | 14,026 | 14,347 | 14,026 | 14,347 | 14,975 | ||
Shareholder's Interest [Member] | |||||||
Shareholder's Interest [Roll Forward] | |||||||
Balance at beginning of period | 5,227 | 5,227 | 5,227 | 5,227 | 5,227 | ||
Net income | 0 | 0 | 0 | ||||
Other comprehensive income/(loss), net of tax | 0 | 0 | 0 | ||||
Distributions declared | 0 | 0 | 0 | ||||
Balance at end of period | 5,227 | 5,227 | 5,227 | 5,227 | 5,227 | ||
Accumulated Other Comprehensive Income/(Loss) (Note11) [Member] | |||||||
Shareholder's Interest [Roll Forward] | |||||||
Balance at beginning of period | (785) | (829) | (785) | (829) | (419) | ||
Net income | 0 | 0 | 0 | ||||
Other comprehensive income/(loss), net of tax | 372 | 44 | (410) | ||||
Distributions declared | 0 | 0 | 0 | ||||
Balance at end of period | (413) | (785) | (413) | (785) | (829) | ||
Retained Earnings [Member] | |||||||
Shareholder's Interest [Roll Forward] | |||||||
Balance at beginning of period | $ 9,905 | $ 10,577 | 9,905 | 10,577 | 11,076 | ||
Net income | 1,924 | 2,228 | 2,224 | ||||
Other comprehensive income/(loss), net of tax | 0 | 0 | 0 | ||||
Distributions declared | (2,415) | (2,900) | (2,723) | ||||
Balance at end of period | 9,212 | $ 9,905 | 9,212 | 9,905 | 10,577 | ||
Parent [Member] | |||||||
Shareholder's Interest [Roll Forward] | |||||||
Distributions declared | (2,415) | $ (2,900) | $ (2,723) | ||||
Accounting Standards Update 2016-13 [Member] | |||||||
Total shareholder’s interest | (202) | (202) | |||||
Accounting Standards Update 2016-13 [Member] | Shareholder's Interest [Member] | |||||||
Total shareholder’s interest | 0 | 0 | |||||
Accounting Standards Update 2016-13 [Member] | Accumulated Other Comprehensive Income/(Loss) (Note11) [Member] | |||||||
Total shareholder’s interest | 0 | 0 | |||||
Accounting Standards Update 2016-13 [Member] | Retained Earnings [Member] | |||||||
Total shareholder’s interest | $ (202) | $ (202) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Net income | $ 1,924 | $ 2,228 | $ 2,224 |
Adjustments to reconcile net income/(loss) to net cash provided by operations | |||
Provision for credit losses | 828 | 296 | 426 |
Depreciation and amortization | 3,984 | 4,427 | 4,841 |
Amortization of upfront interest supplements | (2,222) | (2,147) | (2,041) |
Change in finance and wholesale receivables HFS | (74) | (300) | 0 |
Net change in deferred income taxes | 379 | 37 | 259 |
Net change in other assets | (930) | 132 | (276) |
Net change in other liabilities | (228) | 137 | 115 |
All other operating activities | 88 | 103 | 155 |
Net cash provided by/(used in) operating activities | 3,749 | 4,913 | 5,703 |
Cash flows from investing activities | |||
Purchases of finance receivables | (41,218) | (38,881) | (44,384) |
Principal collections of finance receivables | 40,102 | 42,011 | 42,553 |
Purchases of operating lease vehicles | (11,331) | (12,990) | (14,306) |
Liquidations of operating lease vehicles | 9,508 | 9,332 | 9,223 |
Proceeds from Divestiture of Businesses | 1,340 | 0 | 0 |
Net change in wholesale receivables and other | 12,752 | 1,752 | (2,661) |
Purchases of marketable securities | (10,976) | (5,883) | (3,632) |
Proceeds from sales and maturities of marketable securities | 9,436 | 3,931 | 5,171 |
Settlements of derivatives | (152) | (221) | 226 |
All other investing activities | 71 | (56) | 102 |
Net Cash Provided by (Used in) Investing Activities, Total | 9,532 | (1,005) | (7,708) |
Cash flows from financing activities | |||
Proceeds from issuances of long-term debt | 41,743 | 44,522 | 49,954 |
Principal payments on long-term debt | (44,558) | (44,665) | (42,530) |
Change in short-term debt, net | (2,495) | (1,278) | (2,263) |
Cash distributions to parent | (2,415) | (2,900) | (2,723) |
All other financing activities | (107) | (116) | (151) |
Net Cash Provided by (Used in) Financing Activities, Total | (7,832) | (4,437) | 2,287 |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 279 | 50 | (217) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance | 9,268 | 9,747 | 9,682 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 5,728 | (479) | 65 |
Cash, cash equivalents and restricted cash at end of period (Note 3) | $ 14,996 | $ 9,268 | $ 9,747 |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Presentation | NOTE 1. PRESENTATION Principles of Consolidation The accompanying consolidated financial statements include Ford Motor Credit Company LLC, its controlled domestic and foreign subsidiaries and joint ventures, 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”). Affiliates that we do not consolidate, but for which we have significant influence over operating and financial policies, are accounted for using the equity method. We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). We prepare our financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”). 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. As a result, extraordinary actions were 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 included 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, by late March 2020, nearly all of our employees, other than in China, began working remotely in order to reduce the spread of COVID-19. Our remote work arrangements have been designed to allow for continued operation of business functions, including originating and servicing customer contracts, financial reporting, and internal control. Our results include adjustments due to the impact of COVID-19, the most significant of which was a charge to the provision for credit losses. The majority of this adjustment was recorded in the first quarter of 2020. See Note 4 for additional information. Separation and Restructuring Actions We executed separation and restructuring actions associated with our plans to transform our business. The impact of these actions was a loss of $56 million and $55 million, primarily separation costs, for the years ended December 31, 2019 and 2020, respectively. Related to these restructuring actions, 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 2020 were $1,698 million and $36 million respectively, and Liabilities held-for-sale presented at fair value at December 31, 2019 were $45 million. There were no Liabilities held-for-sale at December 31, 2020. In the fourth quarter of 2019, we committed to a plan to sell our operations in Forso Nordic AB (“Forso”), a wholly owned subsidiary, which provided retail and dealer financing in Denmark, Finland, Norway, and Sweden. Our Income before income taxes at December 31, 2019 included a loss of $20 million due to a fair value impairment as a result of the pending sale. In the first quarter of 2020, we completed the sale of Forso recognizing a pre-tax loss of $4 million in Other income, net and cash proceeds of $1,340 million. Forso related Assets held-for-sale and Liabilities held-for-sale presented at fair value 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 (primarily debt) which are eliminated in the consolidated balance sheets). The nonrecurring fair value measurement was categorized within Level 3 of the fair value hierarchy. We determined fair value using a market approach, estimated based on our expected proceeds to be received which we concluded was most representative of the value of the assets. NOTE 1. PRESENTATION (Continued) Nature of Operations We offer a wide variety of automotive financing products to and through automotive dealers throughout the world. Our portfolio consists of finance receivables and net investment in operating leases. We also service the finance receivables and net investment in operating leases we originate and purchase, make loans to Ford affiliates, and provide insurance services related to our financing programs. See Notes 4, 5, and 11 for additional 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. See Note 14 for key operating data on our business segments and for geographic information on our regions. The predominant share of our business consists of financing Ford and Lincoln vehicles and supporting Ford and Lincoln dealers. Any extended reduction or suspension of Ford’s production or sale of vehicles due to a decline in consumer demand, work stoppage, governmental action, negative publicity or other event, or significant changes to marketing programs sponsored by Ford, would have an adverse effect on our business. Certain subsidiaries are subject to regulatory capital requirements that may limit the ability of those subsidiaries to pay dividends. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES For each accounting topic that is addressed in its own note, the description of the accounting policy may be found in the related note. Other significant remaining accounting policies are described below. Use of Estimates The preparation of financial statements requires us to make estimates and assumptions that affect our results. The accounting estimates that are most important to our business involve the allowance for credit losses related to finance receivables, and accumulated depreciation on vehicles subject to operating leases. Estimates are based on assumptions that we believe are reasonable under the circumstances. Due to the inherent uncertainty involved with estimates, actual results may differ. Foreign Currency We remeasure monetary assets and liabilities denominated in a currency that is different than a reporting entity’s functional currency from the transactional currency to the legal entity’s functional currency. The effect of this remeasurement process and the results of our foreign currency hedging activities are reported in Other income, net . Generally, our foreign subsidiaries use the local currency as their functional currency. We translate the assets and liabilities of our foreign subsidiaries from their respective functional currencies to U.S. dollars using end-of-period exchange rates. Changes in the carrying value of these assets and liabilities attributable to fluctuations in exchange rates are recognized in Foreign currency translation , a component of Other comprehensive income / (Ioss), net of tax . Upon sale or upon complete or substantially complete liquidation of an investment in a foreign subsidiary, the amount of accumulated foreign currency translation related to the entity is reclassified to income and recognized as part of the gain or loss on the investment. NOTE 2. ACCOUNTING POLICIES (Continued) Fair Value Measurements Cash equivalents, marketable securities, and derivative financial instruments are remeasured and presented on our financial statements on a recurring basis at fair value, while other assets and liabilities are measured at fair value on a nonrecurring basis. In measuring fair value, we use various valuation methods and prioritize the use of observable inputs. The use of observable and unobservable inputs and their significance in measuring fair value are reflected in our fair value hierarchy. • Level 1 – inputs include quoted prices for identical instruments and are the most observable • Level 2 – inputs include quoted prices for similar instruments and observable inputs such as interest rates, currency exchange rates, and yield curves • Level 3 – inputs include data not observable in the market and reflect management judgment about the assumptions market participants would use in pricing the instruments Transfers into and transfers out of the hierarchy levels are recognized as if they had taken place at the end of the reporting period. 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 Adjustments Balance at 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 taxes 2,593 (58) 2,535 Equity Retained earnings 9,905 (202) 9,703 ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. On April 1, 2020, we adopted the new standard and the related amendment, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform (e.g., discontinuation of LIBOR) if certain criteria are met. As of December 31, 2020, we have not yet elected any optional expedients provided in the standard. We will apply the accounting relief as relevant contract and hedge accounting relationship modifications are made during the reference rate reform transition period. We do not expect the standard to have a material impact on our consolidated financial statements. NOTE 2. ACCOUNTING POLICIES (Continued) We also adopted the following ASUs during 2020, none of which had a material impact to our consolidated 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 The following standard may have a significant impact on our consolidated financial statements and disclosures. ASU 2019-12 - Simplifying the Accounting for Income Taxes . In December 2019, the Financial Accounting Standards Board issued a new accounting standard that simplifies the accounting for income taxes by removing several exceptions in the current standard and adding guidance to reduce complexity in certain areas. The new standard clarifies that an entity may elect to, but is not required to, reflect an allocation of consolidated current and deferred tax expense for non-taxable legal entities that are treated as disregarded by taxing authorities in their separately issued financial statements. Our financial statements presently include an allocation of the Ford Motor Company consolidated U.S. current and deferred tax expense to us and certain of our U.S. subsidiaries that are treated as disregarded entities for U.S. tax purposes (see Note 10 for further information). The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. We are evaluating the optional elections and are assessing the potential impact to our financial statements and disclosures. |
Cash, Cash Equivalents, and Mar
Cash, Cash Equivalents, and Marketable Securities | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES | CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES Cash and Cash Equivalents. Included in Cash and cash equivalents are highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of change in value due to interest rate, quoted price, or penalty on withdrawal. A debt security is classified as a cash equivalent if it meets these criteria and if it has a remaining time to maturity of three months or less from the date of purchase. Amounts on deposit and available upon demand, or negotiated to provide for daily liquidity without penalty, are classified as Cash and cash equivalents . Time deposits, certificates of deposit, and money market accounts that meet the above criteria are reported at par value on our consolidated balance sheets. Marketable Securities. Investments in securities with a maturity date greater than three months at the date of purchase and other securities for which there is more than an insignificant risk of change in value due to interest rate, quoted price, or penalty on withdrawal are classified as Marketable securities . These investments are reported at fair value. We generally measure fair value using prices obtained from pricing services. Pricing methods and inputs to valuation models used by the pricing services depend on the security type (i.e., asset class). Where possible, fair values are generated using market inputs including quoted prices (the closing price in an exchange market), bid prices (the price at which a buyer stands ready to purchase), and other market information. For fixed income securities that are not actively traded, the pricing services use alternative methods to determine fair value for the securities, including quotes for similar fixed income securities, matrix pricing, discounted cash flow using benchmark curves, or other factors. In certain cases, when market data are not available, we may use broker quotes to determine fair value. An annual review is performed on the security prices received from our pricing services, which includes discussion and analysis of the inputs used by the pricing services to value our securities. We also compare the price of certain securities sold close to the quarter end to the price of the same security at the balance sheet date to ensure the reported fair value is reasonable. Realized and unrealized gains and losses and interest income on our marketable securities are recorded in Other income, net . Realized gains and losses are measured using the specific identification method. NOTE 3. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES (Continued) The following table categorizes the fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis on our balance sheets at December 31 (in millions): Fair Value Level 2019 2020 Cash and cash equivalents United States government 1 $ — $ 3,255 United States government agencies 2 — 640 Non-United States government and agencies 2 350 717 Corporate debt 2 604 970 Total marketable securities classified as cash equivalents 954 5,582 Cash, time deposits and money market funds 8,113 8,767 Total cash and cash equivalents $ 9,067 $ 14,349 Marketable securities United States government 1 $ 195 $ 1,082 United States government agencies 2 210 485 Non-United States government and agencies 2 2,408 2,693 Corporate debt 2 193 308 Other marketable securities 2 290 292 Total marketable securities $ 3,296 $ 4,860 Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash as reported in the consolidated statements of cash flows are presented separately on our consolidated balance sheets as follows (in millions): December 31, 2019 December 31, 2020 Cash and cash equivalents $ 9,067 $ 14,349 Restricted cash included in other assets (a) 139 647 Cash, cash equivalents and restricted cash in assets held-for-sale 62 — Total cash, cash equivalents, and restricted cash $ 9,268 $ 14,996 __________ (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 and Allowan
Finance Receivables and Allowance for Credit Losses | 12 Months Ended |
Dec. 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. 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. Non-Consumer Portfolio. Receivables in this portfolio include products offered to automotive dealers and receivables purchased from Ford and its affiliates. The products include: • Dealer financing – includes wholesale loans to dealers to finance the purchase of vehicle inventory, also known as floorplan financing, as well as loans to dealers to finance working capital and improvements to dealership facilities, to finance the purchase of dealership real estate, and to finance other dealer programs. Wholesale financing is approximately 93% of our dealer financing. • Other financing – includes purchased receivables from Ford and its affiliates, primarily related to the sale of parts and accessories to dealers and certain used vehicles from daily rental fleet companies. In addition, we provide financing to Ford for vehicles that Ford leases to its employees. These receivables are excluded from our credit quality reporting since the performance of this group of receivables is generally guaranteed by Ford. 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. Revenue from finance receivables is recognized using the interest method and includes the accretion of certain direct origination costs that are deferred and interest supplements received from Ford and affiliated companies. The unearned interest supplements on finance receivables are included in Total finance receivables, net on the balance sheets, and the earned interest supplements are included in Total financing revenue on the income statements. We measure finance receivables at fair value using internal valuation models. These models project future cash flows of financing contracts based on scheduled contract payments (including principal and interest). The projected cash flows are discounted to present value based on assumptions regarding expected credit losses, pre-payment speed, and applicable spreads to approximate current rates. The fair value of finance receivables is categorized within Level 3 of the hierarchy. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) On a nonrecurring basis, we also measure at fair value retail contracts greater than 120 days past due or deemed to be uncollectible, and individual dealer loans probable of foreclosure. We use the fair value of collateral, adjusted for estimated costs to sell, to determine the fair value of these receivables. The collateral for a retail financing or wholesale receivable is the vehicle financed, and for dealer loans is real estate or other property. The fair value of collateral for retail financing receivables is calculated as the outstanding receivable balances multiplied by the average recovery value percentage. The fair value of collateral for wholesale receivables is based on the wholesale market value or liquidation value for new and used vehicles. The fair value of collateral for dealer loans is determined by reviewing various appraisals, which include total adjusted appraised value of land and improvements, alternate use appraised value, broker’s opinion of value, and purchase offers. Notes and accounts receivable from affiliated companies are presented separately on the balance sheets. These receivables are based on intercompany relationships and the balances are settled regularly. We do not assess these receivables for potential credit losses, nor are they subjected to aging analysis, credit quality reviews, or other formal assessments. As a result, Notes and accounts receivable from affiliated companies are not subject to the following disclosures contained herein. Finance Receivables Classification Finance receivables are accounted for as held-for-investment (“HFI”) if we have the intent and ability to hold the receivables for the foreseeable future or until maturity or payoff. The determination of intent and ability to hold for the foreseeable future is highly judgmental and requires us to make good faith estimates based on all information available at the time of origination or purchase. If we do not have the intent and ability to hold the receivables, then the receivables are classified as held-for-sale (“HFS”). Each quarter, we make a determination of whether it is probable that finance receivables originated or purchased during the quarter will be held for the foreseeable future based on historical receivables sale experience, internal forecasts and budgets, as well as other relevant, reliable information available through the date of evaluation. For purposes of this determination, probable means at least 70% likely and, consistent with our budgeting and forecasting period, we define foreseeable future to mean twelve months. We classify receivables as HFI or HFS on a receivable-by-receivable basis. Specific receivables included in off-balance sheet sale transactions are generally not identified until the month in which the sale occurs. Held-for-Investment. Finance receivables classified as HFI 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. Cash flows from finance receivables that were originally classified as HFI are recorded as an investing activity since GAAP requires the statement of cash flows presentation to be based on the original classification of the receivables. Held-for-Sale. Finance receivables classified as HFS are carried at the lower of cost or fair value. Cash flows resulting from the origination or purchase and sale of HFS receivables are recorded as an operating activity. Once a decision has been made to sell receivables that were originally classified as HFI, the receivables are reclassified as HFS and carried at the lower of cost or fair value. The valuation adjustment, if applicable, is recorded in Other income, net to recognize the receivables at the lower of cost or fair value. The value of the finance receivables considered HFS at December 31, 2019 was $1,512 million, primarily Forso related finance receivables of $1,230 million. At December 31, 2020, there were $36 million of certain wholesale finance receivables specifically identified as HFS. These HFS 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) Finance Receivables, Net Total finance receivables, net at December 31 were as follows (in millions): 2019 2020 Consumer Retail installment contracts, gross $ 68,998 $ 73,726 Finance leases, gross 8,566 8,431 Retail financing, gross 77,564 82,157 Unearned interest supplements from Ford and affiliated companies (3,589) (3,987) Consumer finance receivables 73,975 78,170 Non-Consumer Dealer financing (a) 38,910 26,517 Other financing (b) 1,945 1,688 Non-Consumer finance receivables 40,855 28,205 Total recorded investment (c) $ 114,830 $ 106,375 Recorded investment in finance receivables $ 114,830 $ 106,375 Allowance for credit losses (513) (1,305) Total finance receivables, net $ 114,317 $ 105,070 Net finance receivables subject to fair value (d) $ 106,131 $ 97,043 Fair value 106,260 98,630 __________ (a) Includes $4.1 billion and $5.1 billion at December 31, 2019 and 2020, respectively, of receivables generated by divisions and affiliates of Ford in connection with vehicle inventories released from Ford and in transit to the destination dealers. Interest earned from Ford and affiliated companies associated with receivables from gate-released vehicles in transit to dealers for the years ended December 31, 2018, 2019, and 2020 was $261 million, $229 million, and $137 million, respectively. Balances at December 31, 2019 and 2020, also include $844 million and $515 million, respectively, of dealer financing receivables with entities (primarily dealers) that are reported as consolidated subsidiaries of Ford. For the years ended December 31, 2018, 2019, and 2020, the interest earned on receivables from consolidated subsidiaries of Ford to which we provide dealer financing was $8 million, $10 million, and $13 million, respectively. Consolidated subsidiaries of Ford include dealerships that are owned and consolidated by Ford. (b) Represents other financing receivables with Ford and entities (primarily dealers) that are reported as consolidated subsidiaries of Ford, which includes amounts associated with purchased receivables and receivables associated with the financing of vehicles that Ford leases to employees. Interest earned from Ford and affiliated companies associated with these other financing receivables totaled $84 million, $96 million, and $88 million for the years ended December 31, 2018, 2019, and 2020, respectively. (c) Earned interest supplements on consumer and non-consumer receivables from Ford and affiliated companies totaled $2.4 billion, $2.5 billion, and $2.4 billion for the years ended December 31, 2018, 2019, and 2020, respectively. Cash received from interest supplements totaled $2.7 billion, $2.6 billion, and $2.8 billion for the years ended December 31, 2018, 2019, and 2020, respectively. (d) Net finance receivables subject to fair value exclude finance leases. At December 31, 2019 and 2020, accrued interest was $253 million and $181 million, respectively, which we report in Other assets . Included in the recorded investment in finance receivables were consumer and non-consumer receivables that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) Finance Leases Finance leases are comprised of sales-type and direct financing leases. These financings include primarily lease plans for terms of 24 to 60 months. In limited cases, a customer may extend the lease term. Early terminations of leases may also occur at the customer’s request subject to approval. We offer financing products in which the customer may be required to pay any shortfall, or may receive as payment any excess amount between the fair market value and the contractual vehicle value at the end of the term, which are classified as finance leases. In some markets, we finance a vehicle with a series of monthly payments followed by a single balloon payment or the option for the customer to return the vehicle to Ford Credit; these arrangements containing a purchase option are classified as finance leases. The amounts contractually due on finance leases at December 31, 2020 were as follows (in millions): Finance Lease Receivables 2021 2022 2023 2024 2025 Total Contractual maturity $ 1,978 $ 1,751 $ 1,348 $ 555 $ 55 $ 5,687 Less: Present value discount 251 Total finance lease receivables $ 5,436 The reconciliation from finance lease receivables to finance leases, gross and finance leases, net at December 31 is as follows (in millions): 2019 2020 Finance lease receivables $ 5,651 $ 5,436 Unguaranteed residual assets 2,795 2,893 Initial direct costs 120 102 Finance leases, gross 8,566 8,431 Unearned interest supplements from Ford and affiliated companies (363) (337) Allowance for credit losses (17) (67) Finance leases, net $ 8,186 $ 8,027 Financing revenue from finance leases was $375 million, $380 million, and $357 million for the years ended December 31, 2018, 2019, and 2020, respectively, and is included in Retail financing . NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) Credit Quality Consumer Portfolio. When originating consumer receivables, we use a proprietary scoring system that measures credit quality using information in the credit application, proposed contract terms, credit bureau data, and other information. After a proprietary risk score is generated, we decide whether to purchase a contract using a decision process based on a judgmental evaluation of the applicant, the credit application, the proposed contract terms, credit bureau information (e.g., FICO score), proprietary risk score, and other information. Our evaluation emphasizes the applicant’s ability to pay and creditworthiness focusing on payment, affordability, applicant credit history, and stability as key considerations. After origination, we review the credit quality of retail financing based on customer payment activity. As each customer develops a payment history, we use an internally developed behavioral scoring model to assist in determining the best collection strategies, which allows us to focus collection activity on higher-risk accounts. These models are used to refine our risk-based staffing model to ensure collection resources are aligned with portfolio risk. Based on data from this scoring model, contracts are categorized by collection risk. Our collection models evaluate several factors, including origination characteristics, updated credit bureau data, and payment patterns. 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 December 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 $ 45 $ 62 $ 103 $ 162 $ 166 $ 143 $ 681 61-120 days past due 7 12 24 44 45 31 163 Greater than 120 days past due 11 6 7 8 7 2 41 Total past due 63 80 134 214 218 176 885 Current 782 2,519 6,656 13,725 20,856 32,747 77,285 Total $ 845 $ 2,599 $ 6,790 $ 13,939 $ 21,074 $ 32,923 $ 78,170 NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) Non-Consumer Portfolio. We extend credit to dealers primarily in the form of lines of credit to purchase new Ford and Lincoln vehicles as well as used vehicles. Payment is required when the dealer has sold the vehicle. Each non-consumer lending request is evaluated by considering the borrower’s financial condition and the underlying collateral securing the loan. We use a proprietary model to assign each dealer a risk rating. This model uses historical dealer performance data to identify key factors about a dealer that we consider most significant in predicting a dealer’s ability to meet its financial obligations. We also consider numerous other financial and qualitative factors of the dealer’s operations, including capitalization and leverage, liquidity and cash flow, profitability, and credit history with ourselves and other creditors. Dealers are assigned to one of four groups according to risk ratings as follows: • Group I – strong to superior financial metrics; • Group II – fair to favorable financial metrics; • Group III – marginal to weak financial metrics; and • Group IV – poor financial metrics, including dealers classified as uncollectible. We generally suspend credit lines and extend no further funding to dealers classified in Group IV. We regularly review our model to confirm the continued business significance and statistical predictability of the model and may make updates to improve the performance of the model. In addition, we regularly audit dealer inventory and dealer sales records to verify that the dealer is in possession of the financed vehicles and is promptly paying each receivable following the sale of the financed vehicle. The frequency of on-site vehicle inventory audits depends primarily on the dealer’s risk rating. Under our policies, on-site vehicle inventory audits of low-risk dealers are conducted only as circumstances warrant. On-site vehicle inventory audits of higher-risk dealers are conducted with increased frequency based primarily on the dealer’s risk rating, but also considering the results of our electronic monitoring of the dealer’s performance, including daily payment verifications and monthly analyses of the dealer’s financial statements, payoffs, aged inventory, over credit line, and delinquency reports. We typically perform a credit review of each dealer annually and more frequently review certain dealers based on the dealer’s risk rating and total exposure. We adjust the dealer’s risk rating, if necessary. The credit quality of dealer financing receivables is evaluated based on our internal dealer risk rating analysis. A dealer has the same risk rating for its entire dealer financing regardless of the type of financing. 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 December 31, 2020 was as follows (in millions): Amortized Cost Basis by Origination Year Dealer Loans Prior to 2016 2016 2017 2018 2019 2020 Total Wholesale Loans Total Group I $ 503 $ 129 $ 110 $ 188 $ 70 $ 248 $ 1,248 $ 18,769 $ 20,017 Group II 38 20 11 35 3 87 194 4,680 4,874 Group III 9 — 3 19 3 35 69 1,464 1,533 Group IV 2 — — — 2 6 10 83 93 Total (a) $ 552 $ 149 $ 124 $ 242 $ 78 $ 376 $ 1,521 $ 24,996 $ 26,517 __________ (a) Total past due dealer financing receivables at December 31, 2020 were $99 million. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) Non-Accrual of Revenue. The accrual of financing revenue is discontinued at the time a receivable is determined to be uncollectible or when it is 90 days past due. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance. Troubled Debt Restructuring (“TDR”) . A restructuring of debt constitutes a TDR if we grant a concession to a debtor for economic or legal reasons related to the debtor’s financial difficulties that we otherwise would not consider. Consumer and non-consumer receivables that have a modified interest rate below market rate or that were modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code, except non-consumer receivables that are current with minimal risk of loss, are considered to be TDRs. We do not grant concessions on the principal balance of 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 various programs to provide relief to our customers impacted by COVID-19. These programs, which were broadly available to our customers during the first half of 2020, included payment extensions. We concluded that these programs did not meet TDR criteria. As of December 31, 2020, in the United States, we have received payments on nearly all the pandemic extensions offered to our customers. The volume of payment extensions has returned to pre-COVID-19 levels and we continue to grant payment extensions to customers and dealers under our normal business practices. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) Allowance for Credit Losses The allowance for credit losses represents our estimate of the lifetime expected credit losses inherent in finance receivables as of the balance sheet date. The adequacy of the allowance for credit losses is assessed quarterly. 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 a finance receivable is charged to the allowance for credit losses at the earlier of when an account is deemed to be uncollectible or when an account is 120 days delinquent, taking into consideration the financial condition of the customer or borrower, the value of the collateral, recourse to guarantors, and other factors. Charge-offs on finance receivables include uncollected amounts related to principal, interest, late fees, and other allowable charges. Recoveries on finance receivables previously charged off as uncollectible are credited to the allowance for credit losses. In the event we repossess the collateral, the receivable is charged off and 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 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 assumptions 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. The allowance for credit losses 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 quantitative estimate of 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 qualitative factors, including economic uncertainty, observable changes in portfolio performance, 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 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, the financial status of the dealer, and any 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. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) 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 ratio 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 ratio 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 macroeconomic scenarios that 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. An analysis of the allowance for credit losses related to finance receivables for the years ended December 31 was as follows (in millions): 2019 (a) 2020 Consumer Non-Consumer Total Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 566 $ 23 $ 589 $ 496 $ 17 $ 513 Adoption of ASU 2016-13 (b) — — — 247 5 252 Charge-offs (527) (22) (549) (441) (29) (470) Recoveries 168 10 178 161 8 169 Provision for credit losses 291 5 296 771 57 828 Other (c) (2) 1 (1) 11 2 13 Ending balance $ 496 $ 17 $ 513 $ 1,245 $ 60 $ 1,305 __________ (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 Investments in Operating Le
Net Investments in Operating Leases | 12 Months Ended |
Dec. 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. Payment extensions may be requested by the customer and are generally limited to a maximum of six months over the term of the lease. Term extensions may also be requested by the customer. Term and payment extensions in total generally do not exceed twelve months. A lease can be terminated at any time by satisfying the obligations under the lease agreement. Early termination programs may be occasionally offered to eligible lessees. At the end of the lease, the customer returns the vehicle to the dealer or may have the option to buy the leased vehicle. In the case of a contract default and repossession, the customer typically remains liable for any deficiency between net auction proceeds and the defaulted contract obligations, including any repossession-related expenses. Included in Net investment in operating leases are net investment in operating leases that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information. Revenue from rental payments received on operating leases is recognized on a straight-line basis over the term of the lease. The accrual of revenue on operating leases is discontinued at the time an account is determined to be uncollectible. We receive interest supplements and residual support payments on certain leasing transactions under agreements with Ford. We recognize these upfront collections from Ford and other vehicle acquisition costs as part of Net investment in operating leases , which are amortized to Depreciation on vehicles subject to operating leases over the term of the lease contract. Unearned interest supplements and residual support included in Net investment in operating leases at December 31, 2019 and 2020 was $3.1 billion and $2.5 billion, respectively. Earned interest supplements and residual support costs included in Depreciation on vehicles subject to operating leases for the years ended December 31, 2018, 2019, and 2020 was $2.4 billion, $2.6 billion, and $2.3 billion, respectively. Interest supplements and residual support cash received totaled $2.8 billion, $2.5 billion, and $1.7 billion for the years ended December 31, 2018, 2019, and 2020, respectively. Depreciation expense on vehicles subject to operating leases is recognized on a straight-line basis in an amount necessary to reduce the leased vehicle value to its estimated residual value at the end of the scheduled lease term. Our policy is to promptly sell returned off-lease vehicles. We evaluate our depreciation for leased vehicles on a regular basis taking into consideration various assumptions, such as expected residual values at lease termination (including residual value support payments from Ford), the estimated number of vehicles that will be returned to us, and historical experience on early terminations due to customer defaults. Adjustments to depreciation expense reflecting revised estimates of expected residual values at the end of the lease terms are recorded prospectively on a straight-line basis. Upon disposition of the vehicle, the difference between net book value and actual proceeds is recorded as an adjustment to Depreciation on vehicles subject to operating leases. Accumulated depreciation reduces the value of the vehicles from their initial acquisition value to their expected residual value at the end of the lease, with the associated depreciation expense recognized on a straight-line basis over the scheduled lease term. At the time of purchase, we establish the expected residual value for the vehicle based on recent auction values, return volumes for our leased vehicles, industry-wide used vehicle prices, marketing incentive plans, and vehicle quality data. We monitor residual values each month and review the accuracy of our accumulated depreciation on a quarterly basis. 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 periods presented, we have not recorded any impairment charges. NOTE 5. NET INVESTMENT IN OPERATING LEASES (continued) Net investment in operating leases at December 31 was as follows (in millions): 2019 2020 Vehicles, at cost (a) $ 33,431 $ 32,495 Accumulated depreciation (5,772) (5,840) Net investment in operating leases $ 27,659 $ 26,655 __________ (a) Includes interest supplements and residual support payments we receive on certain leasing transactions under agreements with Ford and affiliated companies, and other vehicle acquisition costs. We have a sale-leaseback agreement with Ford primarily for vehicles that Ford leases to employees of Ford and its subsidiaries. The financing we provide under this agreement is reflected on our balance sheets in Total finance receivables, net . The revenue related to these agreements is reflected in Other financing. The amounts contractually due on our operating leases at December 31, 2020 were as follows (in millions): 2021 2022 2023 2024 2025 Total Operating lease payments $ 4,370 $ 2,530 $ 878 $ 98 $ 4 $ 7,880 |
Transfers of Receivables
Transfers of Receivables | 12 Months Ended |
Dec. 31, 2020 | |
Transfers and Servicing [Abstract] | |
TRANSFERS OF RECEIVABLES | TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES We securitize finance receivables and net investment in operating leases through a variety of programs using amortizing, variable funding, and revolving structures. We also sell finance receivables 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. The finance receivables sold for legal purposes and net investment in operating leases included in securitization transactions are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. They are not available to pay our other obligations or the claims of our other creditors. The debt is the obligation of our consolidated securitization entities and not the obligation of Ford Credit or our other subsidiaries. We use special purpose entities (“SPEs”) to issue asset-backed securities. We have deemed most of these SPEs to be VIEs of which we are the primary beneficiary, and therefore, are consolidated. The SPEs are established for the sole purpose of financing the securitized financial assets. The SPEs are generally financed through the issuance of notes or commercial paper into the public or private markets or directly with conduits. We continue to recognize our financial assets related to our sales of receivables when the financial assets are sold to a consolidated VIE or a consolidated voting interest entity. We derecognize our financial assets when the financial assets are sold to a non-consolidated entity and we do not maintain control over the financial assets. A VIE is an entity that either (i) has insufficient equity to finance its activities without additional subordinated financial support, or (ii) has equity investors who lack the characteristics of a controlling financial interest. We consolidate VIEs of which we are the primary beneficiary. We consider ourselves the primary beneficiary of a VIE when we have both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. Assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims against our general assets. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIEs. We have the power to direct significant activities of our special purpose entities when we have the ability to exercise discretion in the servicing of financial assets, issue additional debt, exercise a unilateral call option, add assets to revolving structures, or control investment decisions. We generally retain economic interests in the asset-backed securitization transactions, which are retained in the form of senior or subordinated interests, cash reserve accounts, residual interests, and servicing rights. For accounting purposes, we are precluded from recording the transfers of assets in securitization transactions as sales. The transactions create and pass along risks to the variable interest holders, depending on the assets securing the debt and the specific terms of the transactions. We aggregate and analyze the asset-backed securitization transactions based on the risk profile of the product and the type of funding structure, including: • Retail financing – consumer credit risk and pre-payment risk; • Wholesale financing – dealer credit risk and Ford risk, as the receivables owned by the VIEs primarily arise from the financing provided by us to Ford-franchised dealers; therefore, the collections depend upon the sale of Ford vehicles; and • Net investment in operating leases – vehicle residual value risk, consumer credit risk, and pre-payment risk. As residual interest holder, we are exposed to the underlying residual and credit risk of the collateral and are exposed to interest rate risk in some transactions. The amount of risk absorbed by our residual interests generally is represented by and limited to the amount of overcollateralization of the assets securing the debt and any cash reserves. 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. Although not contractually required, we regularly support our wholesale securitization programs by repurchasing receivables of a dealer from a VIE when the dealer’s performance is at risk, which transfers the corresponding risk of loss from the VIE to us. In order to continue to fund the wholesale receivables, we also may contribute additional cash or wholesale receivables if the collateral falls below the required levels. There were no contributions in 2019 and the balance of cash related to these contributions was $0 throughout 2019. The balance of cash related to these contributions was $25 million at December 31, 2020 and ranged from $0 to $524 million throughout 2020. The following tables show the assets and debt related to our securitization transactions that were included in our financial statements at December 31 (in billions): 2019 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt Before Allowance Allowance for After Allowance VIE (b) Retail financing $ 1.8 $ 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 (d) 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. (d) The global adjusted pool balance of the wholesale finance receivables owned by the securitization trusts was $26.8 billion and the required pool balance was $18.4 billion. As of December 31, 2019, the adjusted pool balance was $8.4 billion higher than the required pool balance. NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued) 2020 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt Before Allowance Allowance for After Allowance VIE (b) Retail financing $ 2.0 $ 35.8 $ 0.4 $ 35.4 $ 28.4 Wholesale financing 0.2 16.1 — 16.1 10.7 Finance receivables 2.2 51.9 0.4 51.5 39.1 Net investment in operating leases 0.6 12.8 — 12.8 7.7 Total VIE $ 2.8 $ 64.7 $ 0.4 $ 64.3 $ 46.8 Non-VIE Retail financing $ 0.4 $ 7.9 $ 0.1 $ 7.8 $ 7.6 Wholesale financing — 0.3 — 0.3 0.2 Finance receivables 0.4 8.2 0.1 8.1 7.8 Net investment in operating leases — — — — — Total Non-VIE $ 0.4 $ 8.2 $ 0.1 $ 8.1 $ 7.8 Total securitization transactions Retail financing $ 2.4 $ 43.7 $ 0.5 $ 43.2 $ 36.0 Wholesale financing (d) 0.2 16.4 — 16.4 10.9 Finance receivables 2.6 60.1 0.5 59.6 46.9 Net investment in operating leases 0.6 12.8 — 12.8 7.7 Total securitization transactions $ 3.2 $ 72.9 $ 0.5 $ 72.4 $ 54.6 __________ (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. (d) The global adjusted pool balance of the wholesale finance receivables owned by the securitization trusts was $16.4 billion and the required pool balance was $14.1 billion. As of December 31, 2020, the adjusted pool balance was $2.3 billion higher than the required pool balance. Interest expense related to securitization debt for the years ended December 31 was as follows (in millions): 2018 2019 2020 VIE $ 1,220 $ 1,373 $ 1,050 Non-VIE 177 201 152 Total securitization transactions $ 1,397 $ 1,574 $ 1,202 Certain of our securitization entities may enter into derivative transactions to mitigate interest rate exposure, primarily resulting from fixed-rate assets securing floating-rate debt. In certain instances, the counterparty enters into offsetting derivative transactions with us to mitigate its interest rate risk resulting from derivatives with our securitization entities. These related derivatives are not the obligations of our securitization entities. See Note 7 for additional information regarding the accounting for derivatives. Our exposures based on the fair value of derivative instruments with external counterparties related to securitization programs at December 31 were as follows (in millions): 2019 2020 Derivative Derivative Derivative Derivative Derivatives of the VIEs $ 12 $ 19 $ — $ 56 Derivatives related to the VIEs 7 5 5 — Other securitization related derivatives 4 30 — 79 Total exposures related to securitization $ 23 $ 54 $ 5 $ 135 NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued) Derivative expense / (income) related to our securitization transactions for the years ended December 31 was as follows (in millions): 2018 2019 2020 Derivatives of the VIEs $ 30 $ 41 $ 130 Derivatives related to the VIEs (11) (5) (9) Other securitization related derivatives (2) 39 113 Total derivative expense / (income) related to securitization $ 17 $ 75 $ 234 |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 12 Months Ended |
Dec. 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: • Interest rate contracts, including swaps, that are used to manage the effects of interest rate fluctuations; • Foreign currency exchange contracts, including forwards, that are used to manage foreign exchange exposure; and • Cross-currency interest rate swap contracts that are used to manage foreign currency and interest rate exposures on foreign-denominated debt. We review our hedging program, derivative positions, and overall risk management strategy on a regular basis. Derivative Financial Instruments and Hedge Accounting. Derivative assets and derivative liabilities are reported in Derivative financial instruments on our balance sheets. Our derivatives are over-the-counter customized derivative transactions and are not exchange traded. We estimate the fair value of these instruments using industry-standard valuation models such as a discounted cash flow. These models project future cash flows and discount the future amounts to a present value using market-based expectations for interest rates, foreign exchange rates, and the contractual terms of the derivative instruments. The discount rate used is the relevant benchmark interest rate (e.g., LIBOR, SONIA) plus an adjustment for nonperformance risk. The adjustment reflects the full credit default swap (“CDS”) spread applied to a net exposure, by counterparty, considering the master netting agreements and any posted collateral. We use our counterparty’s CDS spread when we are in a net asset position and our own CDS spread when we are in a net liability position. 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. NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued) Fair Value Hedges . We use derivatives to reduce the risk of changes in the fair value of debt. We have designated certain receive-fixed, pay-float interest rate and cross-currency interest rate swaps as fair value hedges of fixed-rate debt. The risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark interest rate and foreign exchange. We report the change in fair value of the hedged debt related to the change in benchmark interest rate in Debt and Interest expense . We report the change in fair value of the hedged debt and hedging instrument related to foreign currency in Other income, net . Net interest settlements and accruals, and fair value changes on hedging instruments due to the benchmark interest rate change are reported in Interest expense . The cash flows associated with fair value hedges are reported in Net cash provided by / (used in) operating activities on our statements of cash flows. When a fair value hedge is de-designated, or when the derivative is terminated before maturity, the fair value adjustment to the hedged debt continues to be reported as part of the carrying value of the debt and is recognized in Interest expense over its remaining life. Derivatives Not Designated as Hedging Instruments. We report net interest settlements and accruals and changes in the fair value of interest rate swaps not designated as hedging instruments in Other income, net . Foreign currency revaluation on accrued interest along with gains and losses on foreign exchange contracts and cross-currency interest rate swaps are reported in Other income, net. Cash flows associated with non-designated or de-designated derivatives are reported in Net cash provided by / (used in) investing activities on our statements of cash flows. Income Effect of Derivative Financial Instruments The gains / (losses), by hedge designation, reported in income for the years ended December 31 were as follows (in millions): 2018 2019 2020 Fair value hedges Interest rate contracts Net interest settlements and accruals on hedging instruments $ 10 $ (16) $ 290 Fair value changes on hedging instruments (155) 706 986 Fair value changes on hedged debt 153 (694) (985) Cross-currency interest rate swap contracts Net interest settlements and accruals on hedging instruments — — (2) Fair value changes on hedging instruments — — 38 Fair value changes on hedged debt — — (37) Derivatives not designated as hedging instruments Interest rate contracts (84) (13) (100) Foreign currency exchange contracts (a) 163 52 (82) Cross-currency interest rate swap contracts (244) (229) 486 Total $ (157) $ (194) $ 594 __________ (a) Reflects forward contracts between Ford Credit and an affiliated company. NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued) Balance Sheet Effect of Derivative Financial Instruments Derivative assets and liabilities are reported on the balance sheets at fair value and are presented on a gross basis. The notional amounts of the derivative instruments do not necessarily represent amounts exchanged by the parties and are not a direct measure of our financial exposure. We also enter into master agreements with counterparties that may allow for netting of exposures in the event of default or breach of the counterparty agreement. Collateral represents cash received or paid under reciprocal arrangements that we have entered into with our derivative counterparties, which we do not use to offset our derivative assets and liabilities. The fair value of our derivative instruments and the associated notional amounts at December 31 were as follows (in millions): 2019 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 $ 26,924 $ 1,331 $ 4 Cross-currency interest rate swaps — — — 885 46 — Derivatives not designated as hedging instruments Interest rate contracts 68,914 275 191 70,318 663 439 Foreign currency exchange contracts 5,540 17 79 4,378 4 80 Cross-currency interest rate swap contracts 5,849 134 67 6,849 557 1 Total derivative financial instruments, gross (a) (b) $ 106,880 $ 1,128 $ 356 $ 109,354 $ 2,601 $ 524 __________ (a) At December 31, 2019 and 2020, we held collateral of $18 million and $9 million, and we posted collateral of $78 million and $96 million, respectively. |
Other Assets and Other Liabilit
Other Assets and Other Liabilities and Deferred Income | 12 Months Ended |
Dec. 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 at December 31 were as follows (in millions): 2019 2020 Accrued interest and other non-finance receivables (a) $ 898 $ 1,726 Prepaid reinsurance premiums and other reinsurance recoverables 687 708 Collateral held for resale, at net realizable value 843 675 Restricted cash 139 647 Property and equipment, net of accumulated depreciation (b) 212 219 Deferred charges – income taxes 171 165 Investment in non-consolidated affiliates (c) 132 132 Operating lease assets 108 98 Other 208 223 Total other assets $ 3,398 $ 4,593 __________ (a) Includes income tax receivable from affiliated companies of $0 and $867 million at December 31, 2019 and 2020, respectively. (b) Accumulated depreciation was $393 million and $365 million at December 31, 2019 and 2020, respectively. (c) December 31, 2020 includes the adoption of ASU 2016-13, reducing investment in non-consolidated affiliates by $8 million. See Note 2 for additional information. Other liabilities and deferred revenue at December 31 were as follows (in millions): 2019 2020 Interest payable $ 888 $ 857 Unearned insurance premiums and fees 806 822 Income tax and related interest (a) 433 147 Operating lease liabilities 110 100 Deferred revenue 110 87 Other 286 293 Total other liabilities and deferred revenue $ 2,633 $ 2,306 __________ (a) Includes tax and interest payable to affiliated companies of $294 million and $16 million at December 31, 2019 and 2020, respectively. |
Debt and Commitments
Debt and Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | DEBT AND COMMITMENTS We obtain short-term funding from the issuance of demand notes to retail investors through our demand notes program. We have certain securitization programs that issue short-term asset-backed debt securities that are sold to institutional investors. Bank borrowings by several of our international affiliates in the ordinary course of business are an additional source of short-term funding. We also have a commercial paper program with qualified institutional investors. We obtain long-term debt funding through the issuance of a variety of unsecured and asset-backed debt securities in the United States and international capital markets. 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. Debt is reported on our consolidated balance sheets at par value adjusted for unamortized discount or premium, unamortized issuance costs, and adjustments related to designated fair value hedging (see Note 7 for additional information). Debt due within one year at issuance is classified as short-term. Debt due after one year at issuance is classified as long-term. Discounts, premiums, and costs directly related to the issuance of debt are capitalized and amortized over the life of the debt or to the put date and are recorded in Interest expense using the effective interest method. Gains and losses on the extinguishment of debt are recorded in Other income, net. Debt outstanding and interest rates at December 31 were as follows (in millions): Interest Rates Debt Average Contractual Average Effective 2019 2020 2019 2020 2019 2020 Short-term debt Unsecured debt Floating rate demand notes $ 6,545 $ 6,458 Commercial paper 3,560 163 Other short-term debt 2,731 3,777 Asset-backed debt 881 1,031 Total short-term debt 13,717 11,429 2.8 % 1.5 % 2.8 % 1.6 % Long-term debt Unsecured debt Notes payable within one year 15,062 17,185 Notes payable after one year 55,148 54,197 Asset-backed debt Notes payable within one year 23,609 21,345 Notes payable after one year 32,162 32,276 Unamortized (discount) / premium 7 30 Unamortized issuance costs (214) (252) Fair value adjustments (a) 538 1,467 Total long-term debt 126,312 126,248 3.0 % 2.7 % 3.0 % 2.7 % Total debt $ 140,029 $ 137,677 2.9 % 2.6 % 3.0 % 2.6 % Fair value of debt $ 141,678 $ 139,796 Interest rate characteristics of debt payable after one year Fixed interest rate 67,090 71,515 Variable interest rate (generally based on LIBOR or other short-term rates) 20,220 14,958 Total payable after one year $ 87,310 $ 86,473 __________ (a) These adjustments are related to hedging activity and include discontinued hedging relationship adjustments of $7 million and $299 million at December 31, 2019 and 2020, respectively. The carrying value of hedged debt was $39.4 billion and $45.5 billion at December 31, 2019 and 2020, respectively. NOTE 9. DEBT AND COMMITMENTS (Continued) With the exception of commercial paper, which is issued at a discount, the average contractual rates reflect the stated contractual interest rate. Average effective rates reflect the average contractual interest rate plus amortization of discounts, premiums, and issuance fees. We measure debt at fair value for purposes of disclosure using quoted prices for our own debt with approximately the same remaining maturities. Where quoted prices are not available, we estimate fair value using discounted cash flows and market-based expectations for interest rates, credit risk, and the contractual terms of the debt instruments. For certain short-term debt with an original maturity date of one year or less, we assume that book value is a reasonable approximation of the debt’s fair value. The fair value of debt is categorized within Level 2 of the hierarchy. The fair value of debt includes $12.8 billion and $10.4 billion of short-term debt at December 31, 2019 and 2020, respectively, carried at cost, which approximates fair value. We paid interest of $3.5 billion, $4.1 billion, and $3.4 billion in 2018, 2019, and 2020, respectively, on debt. Maturities Debt maturities at December 31, 2020 were as follows (in millions): 2021 (a) 2022 2023 2024 2025 Thereafter (b) Total Unsecured debt $ 27,583 $ 13,983 $ 10,835 $ 10,323 $ 9,117 $ 9,939 $ 81,780 Asset-backed debt 22,376 14,419 7,850 3,148 6,159 700 54,652 Total 49,959 28,402 18,685 13,471 15,276 10,639 136,432 Unamortized (discount) / premium 30 Unamortized issuance costs (252) Fair value adjustments 1,467 Total debt $ 137,677 __________ (a) Includes $11,429 million for short-term and $38,530 million for long-term debt. (b) Matures between 2026 and 2030. Committed Asset-Backed Facilities We and our subsidiaries have entered into agreements with a number of bank-sponsored asset-backed commercial paper conduits and other financial institutions. Such counterparties are contractually committed, at our option, to purchase from us eligible retail financing receivables or to purchase or make advances under asset-backed securities backed by retail financing or wholesale finance receivables or operating leases for proceeds of up to $38.1 billion ($22.2 billion of retail financing, $4.8 billion of wholesale financing, and $11.1 billion of operating leases) at December 31, 2020. In the United States, we are able to obtain funding within two days for our unutilized capacity in some of our committed asset-backed facilities. These committed facilities have varying maturity dates, with $16.8 billion having maturities within the next twelve months and the remaining balance having maturities through 2022. We plan capacity renewals to protect our global funding needs and to optimize capacity utilization. NOTE 9. DEBT AND COMMITMENTS (Continued) Our ability to obtain funding under these facilities is subject to having a sufficient amount of eligible assets as well as our ability to obtain interest rate hedging arrangements for certain facilities. At December 31, 2020, $16.7 billion of these commitments were in use and we had $3.1 billion of asset-backed capacity that was in excess of eligible receivables primarily due to decline in wholesale asset balances. These programs are free of material adverse change clauses, restrictive financial covenants (for example, debt-to-equity limitations and minimum net worth requirements), and generally, credit rating triggers that could limit our ability to obtain funding. However, the unused portion of these commitments may be terminated if the performance of the underlying assets deteriorates beyond specified levels. Based on our experience and knowledge as servicer of the related assets, we do not expect any of these programs to be terminated due to such events. As of December 31, 2020, Ford Bank GmbH (“Ford Bank”) had liquidity in the form of €104 million (equivalent to $128 million) of senior ABS notes eligible for collateral in the European Central Bank’s monetary policy programs. Unsecured Credit Facilities At December 31, 2020, we and our majority-owned subsidiaries had $2.5 billion of contractually committed unsecured credit facilities with financial institutions, including the FCE Bank plc (“FCE”) Credit Agreement and the Ford Bank Credit Agreement. At December 31, 2020, $2.0 billion was available for use. FCE’s £780 million (equivalent to $1,066 million at December 31, 2020) syndicated credit facility (the “FCE Credit Agreement”) and Ford Bank’s €240 million (equivalent to $294 million at December 31, 2020) syndicated credit facility (the “Ford Bank Credit Agreement”) both mature in 2023, except for £95 million of the FCE Credit Agreement that matures in 2022. At December 31, 2020, all £780 million under the FCE Credit Agreement and all €240 million under the Ford Bank Credit Agreement were available for use. Both the FCE Credit Agreement and Ford Bank Credit Agreement contain certain covenants, including an obligation for FCE and Ford Bank to maintain their ratio of regulatory capital to risk-weighted assets at no less than the applicable regulatory minimum. The FCE Credit Agreement requires the support agreement between FCE and Ford Credit to remain in effect (and enforced by FCE to ensure that its net worth is maintained at no less than $500 million). The Ford Bank Credit Agreement requires a guarantee of Ford Bank’s obligations under the agreement, provided by Ford Credit, to remain in effect. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Ford Motor Credit Company LLC is a disregarded entity for United States income tax purposes. Ford’s consolidated United States federal and state income tax returns include certain of our domestic subsidiaries. In accordance with our intercompany tax sharing agreement with Ford, United States income tax liabilities or foreign tax credits are generally allocated to us on a separate return basis calculated as if we were a taxable corporation. The amount allocated to us for certain minimum taxes, such as global intangible low-taxed income tax, will not exceed the net liability as determined on a consolidated basis. We account for tax on global intangible low-taxed income in the period incurred. Components of Income Taxes 2018 2019 2020 Income before income taxes (in millions) United States $ 1,717 $ 2,160 $ 2,085 Non-United States 910 838 523 Total $ 2,627 $ 2,998 $ 2,608 Provision for / (Benefit from) income taxes for the years ended December 31 was estimated as follows (in millions): 2018 2019 2020 Current Federal $ 72 $ 396 $ 53 Non-United States 153 168 98 State and local (81) 169 154 Total current 144 733 305 Deferred Federal 283 (12) 372 Non-United States (125) 104 61 State and local 101 (55) (54) Total deferred 259 37 379 Provision for / (Benefit from) income taxes $ 403 $ 770 $ 684 A reconciliation of the Provision for / (Benefit from) income taxes with the United States statutory tax rate as a percentage of Income before income taxes for the years ended December 31 is as follows: 2018 2019 2020 United States statutory tax rate 21.0 % 21.0 % 21.0 % Effect of (in percentage points): Non-United States tax rates under United States rate 1.7 1.3 1.1 State and local income taxes 0.6 2.7 3.0 Dispositions and restructurings (8.9) — — United States tax on non-United States earnings 0.4 (0.1) 0.7 Other 0.5 0.8 0.4 Effective tax rate 15.3 % 25.7 % 26.2 % NOTE 10. INCOME TAXES ( Continued ) At December 31, 2020, $3.9 billion of non-United States earnings are considered indefinitely reinvested in operations outside the United States, for which deferred taxes have not been provided. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested basis differences is not practicable. Deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences that exist between the financial statement carrying value of assets and liabilities and their respective tax bases, and net operating loss and tax credit carryforwards on a taxing jurisdiction basis. We measure deferred tax assets and liabilities using enacted tax rates that will apply in the years in which we expect the temporary differences to be recovered or paid. Our accounting for deferred tax consequences represents our best estimate of the likely future tax consequences of events that have been recognized in our financial statements or tax returns and their future probability. In assessing the need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. If, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized, we record a valuation allowance. Components of Deferred Tax Assets and Liabilities Components of deferred tax assets and liabilities at December 31 were as follows (in millions): 2019 2020 Deferred tax assets Net operating loss carryforwards $ 378 $ 281 Provision for credit losses 141 318 Other foreign 190 217 Employee benefit plans 24 25 Foreign tax credits 669 682 Other 46 57 Total gross deferred tax assets 1,448 1,580 Less: Valuation allowance (43) (65) Total net deferred tax assets 1,405 1,515 Deferred tax liabilities Leasing transactions 2,674 3,265 Finance receivables 584 574 Other foreign 568 418 Other 1 — Total deferred tax liabilities 3,827 4,257 Net deferred tax liability $ 2,422 $ 2,742 At December 31, 2020, we have a valuation allowance of $65 million for deferred tax assets primarily related to our Mexico operations. In accordance with our intercompany tax sharing agreement with Ford, United States income tax liabilities or credits are generally allocated to us on a separate return basis calculated as if we were a taxable corporation. In this regard, the deferred tax assets related to foreign tax credit carryforwards represent amounts primarily due from Ford. We reflect a deferred asset for foreign tax credits within our balance sheets due to our tax sharing agreement which provides for full reimbursement for the use of these credits. Under our tax sharing agreement with Ford, we are generally paid for foreign tax credits at the earlier of our use on a separate return basis or their expiration. Net operating loss carryforwards for tax purposes were $851 million at December 31, 2020, resulting in a deferred tax asset of $281 million. A substantial portion of these losses will begin to expire beyond 2036. Tax benefits of net operating loss and tax credit carryforwards are evaluated on an ongoing basis, including a review of historical and projected future operating results, the eligible carryforward period, and other circumstances. NOTE 10. INCOME TAXES ( Continued ) Other In accordance with our intercompany tax sharing agreement with Ford, we earn interest on net tax assets and pay interest on certain tax liabilities. Interest earned is included in Other income, net while interest expense is included in Interest expense and the amounts were immaterial in 2019 and 2020. A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 was as follows (in millions): 2019 2020 Beginning balance $ 115 $ 109 Increase - tax positions in prior periods 40 5 Increase - tax positions in current period — 2 Decrease - tax positions in prior periods (8) (8) Settlements (36) — Lapse of statute of limitations — — Foreign currency translation adjustments (2) 1 Ending balance $ 109 $ 109 The amount of unrecognized tax benefits at December 31, 2019 and 2020 that would impact the effective tax rate if recognized was $106 million and $105 million, respectively. Examinations by tax authorities have been completed through 2012 in Germany, 2014 in Canada and the United States, and 2018 in the United Kingdom. We have settled our United States federal income tax matters related to tax years prior to 2015 in accordance with our intercompany tax sharing agreement with Ford. We recognize income tax-related penalties in Provision for / (Benefit from) income taxes on our consolidated income statements. We recognize accrued interest expense related to unrecognized tax benefits in jurisdictions where we file tax returns separate from Ford in Other income, net on our consolidated income statements. For the years ended December 31, 2018, 2019, and 2020, we recorded net tax related interest expense of $7 million, $3 million, and net tax related interest income of $3 million, respectively, in our consolidated income statements. At December 31, 2019 and 2020, we recorded a net payable of $8 million and $6 million, respectively, for tax related interest in Other liabilities and deferred income . Cash paid for income taxes was $188 million, $524 million, and $1,454 million in 2018, 2019, and 2020, respectively. |
Insurance
Insurance | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
INSURANCE | INSURANCE We conduct insurance underwriting operations primarily through The American Road Insurance Company (“TARIC”). TARIC is a wholly owned subsidiary of Ford Credit operating in the United States and Canada. TARIC provides physical damage insurance coverage for Ford Credit financed vehicles at dealer locations and Ford and Lincoln vehicles in transit between final assembly plants and dealer locations. TARIC also provides physical damage insurance coverage for non-affiliated company financed vehicles, serviced by Ford Credit, at dealer locations. In addition, TARIC provides a variety of other insurance products and services to Ford and its affiliates, including contractual liability insurance on extended service contracts. TARIC provides commercial automobile and general liability insurance and surety bonds for Ford in the United States. Insurance premiums earned are reported net of reinsurance as Insurance premiums earned . These premiums are earned over their respective policy periods. Physical damage insurance premiums, including premiums on vehicles financed at wholesale by us, are recognized as income on a monthly basis. Premiums from extended service plan contracts and other contractual liability coverages are earned over the life of the policy based on historical loss experience. Commissions and premium taxes are deferred and amortized over the term of the related policies on the same basis on which premiums are earned. NOTE 11. INSURANCE - (Continued) Reserves for insurance losses and loss adjustment expenses are established based on actuarial estimates and historical loss development patterns, which represents management’s best estimate. If management believes the reserves do not reflect all losses due to changes in conditions, or other relevant factors, an adjustment is made based on management judgment. Reinsurance activity primarily consists of ceding a majority of the contractual liability insurance business related to automotive extended service plan contracts for a ceding commission. Commissions on ceded amounts are earned on the same basis as related premiums. Reinsurance contracts do not relieve TARIC from its obligations to its policyholders. Failure of reinsurers to honor their obligations could result in losses to TARIC. Therefore, TARIC requires all of its reinsurers to hold collateral and monitors the underlying business and financial performance of its reinsurers to mitigate risk. Insurance Assets Cash, cash equivalents, and marketable securities related to insurance activities at December 31 were as follows (in millions): 2019 2020 Cash and cash equivalents $ 9 $ 22 Marketable securities 697 703 Total cash, cash equivalents, and marketable securities $ 706 $ 725 TARIC is required by law to maintain deposits with regulatory authorities. These deposited securities totaled $12 million at both December 31, 2019 and 2020 and were included in Marketable securities. Amounts paid to reinsurers relating to the unexpired portion of the underlying automotive service contracts, and amounts recoverable from reinsurers on unpaid losses, including incurred but not reported losses are reported in Other assets . Prepaid reinsurance premiums and other reinsurance recoverables were $687 million and $708 million at December 31, 2019 and 2020, respectively. This includes amounts ceded to Ford affiliates of $97 million at both December 31, 2019 and 2020. Insurance Liabilities Other liabilities and deferred income includes unearned insurance premiums and fees of $806 million and $822 million at December 31, 2019 and 2020, respectively. This includes amounts from Ford and its affiliates of $696 million and $711 million at December 31, 2019 and 2020, respectively. NOTE 11. INSURANCE (Continued) The reserve for reported insurance losses and an estimate of unreported insurance losses, based on past experience, was $12 million at both December 31, 2019 and 2020, and was included in Other liabilities and deferred income . Insurance Premiums Insurance premiums written and earned for the years ended December 31 were as follows (in millions): 2018 2019 2020 Written Earned Written Earned Written Earned Direct $ 392 $ 346 $ 406 $ 377 $ 366 $ 350 Assumed — — — — — — Ceded (225) (179) (223) (195) (229) (207) Net premiums $ 167 $ 167 $ 183 $ 182 $ 137 $ 143 The direct premiums earned with Ford and its affiliates were $176 million, $207 million, and $213 million for the years ended December 31, 2018, 2019, and 2020, respectively. Insurance Expenses Insurance underwriting losses and expenses are reported as Insurance expenses . The components of insurance expenses for the years ended December 31 were as follows (in millions): 2018 2019 2020 Insurance losses $ 101 $ 128 $ 110 Loss adjustment expenses 5 7 5 Reinsurance income and other expenses, net (29) (32) (33) Insurance expenses $ 77 $ 103 $ 82 Insurance expenses with Ford and its affiliates were $71 million, $84 million, and $88 million for the years ended December 31, 2018, 2019, and 2020, respectively. Insurance expenses were reduced by ceded insurance expenses of $114 million, $127 million, and $130 million for the years ended December 31, 2018, 2019, and 2020, respectively. |
Other Income, Net
Other Income, Net | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | OTHER INCOME, NET Other income 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, net for the years ended December 31 were as follows (in millions): 2018 2019 2020 Gains / (Losses) on derivatives $ (165) $ (190) $ 341 Currency revaluation gains / (losses) 12 70 (437) Interest and investment income 198 318 119 Other (a) 35 16 — Total other income, net $ 80 $ 214 $ 23 __________ |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
RETIREMENT BENEFITS AND SHARE-BASED COMPENSATION | RETIREMENT BENEFITS We are a participating employer in certain retirement plans that are sponsored by Ford. As described below, Ford allocates costs to us under these plans based on the total number of participating or eligible employees at Ford Credit. Further information about these sponsored plans is available in Ford’s Annual Report on Form 10-K for the year ended December 31, 2020, filed separately with the Securities and Exchange Commission. Employee Retirement Plans Benefits earned under certain Ford-sponsored retirement plans are generally based on an employee’s length of service, salary, and contributions. The allocation amount can be impacted by key assumptions (e.g., discount rate and average rate of increase in compensation) that Ford uses in determining its retirement plan obligations. Retirement plan costs allocated to Ford Credit for our employees participating in the Ford-sponsored defined benefit plans were $55 million, $47 million, and $59 million for the years ended December 31, 2018, 2019, and 2020, respectively. Allocated costs for defined contribution and savings plans were $7 million, $8 million, and $8 million for the years ended December 31, 2018, 2019, and 2020, respectively, and were charged to Operating expenses . Postretirement Health Care and Life Insurance Benefits Postretirement health care and life insurance benefits are provided under certain Ford plans, which provide benefits to retired salaried employees in North America. Our employees generally may become eligible for these benefits if they retire while working for us; however, benefits and eligibility rules may be modified from time to time. Postretirement health care and life insurance costs allocated to Ford Credit for our employees participating in the Ford-sponsored plans were $4 million, $3 million, and $3 million for the years ended December 31, 2018, 2019, and 2020, respectively, and were charged to Operating expenses. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT AND GEOGRAPHIC 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. We review our business performance by segment on a managed basis. Receivables are presented on a managed basis, as it closely approximates the customer’s outstanding balance on the receivables, which is the basis for earning revenue. Our managed receivables equal net finance receivables, net investment in operating leases, and held-for-sale receivables, excluding unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation). We measure the performance of our segments primarily on an income before income taxes basis, after excluding market valuation adjustments to derivatives and exchange-rate fluctuations on foreign currency-denominated transactions, which are reflected in Unallocated Other. These adjustments are excluded when assessing our segment performance because they are carried out at the corporate level. We also adjust segment performance to reallocate interest expense among the segments reflecting debt and equity levels proportionate to their product risk. NOTE 14. SEGMENT AND GEOGRAPHIC INFORMATION (Continued) Key operating data for our business segments for the years ended or at December 31 was as follows (in millions): United States and Canada Europe All Other Total Unallocated Other (a) Total 2018 Total revenue $ 10,358 $ 1,160 $ 864 $ 12,382 $ — $ 12,382 Income before income taxes 2,132 382 187 2,701 (74) 2,627 Other disclosures: Depreciation on vehicles subject to operating leases 3,934 39 — 3,973 — 3,973 Interest expense 3,183 283 470 3,936 (6) 3,930 Provision for credit losses 361 20 45 426 — 426 Net finance receivables and net investment in operating leases 121,712 26,028 7,136 154,876 (8,613) 146,263 Total assets 126,354 27,804 8,051 162,209 — 162,209 2019 Total revenue $ 10,795 $ 1,183 $ 645 $ 12,623 $ — $ 12,623 Income before income taxes 2,365 352 143 2,860 138 2,998 Other disclosures: Depreciation on vehicles subject to operating leases 3,592 43 — 3,635 — 3,635 Interest expense 3,685 340 346 4,371 18 4,389 Provision for credit losses 260 25 11 296 — 296 Net finance receivables and net investment in operating leases (b) 119,498 25,630 5,062 150,190 (8,214) 141,976 Total assets 125,647 30,050 5,729 161,426 — 161,426 2020 Total revenue $ 10,020 $ 1,012 $ 430 $ 11,462 $ — $ 11,462 Income before income taxes 2,241 196 38 2,475 133 2,608 Other disclosures: Depreciation on vehicles subject to operating leases 3,237 (2) — 3,235 — 3,235 Interest expense 2,892 347 223 3,462 (60) 3,402 Provision for credit losses 716 63 49 828 — 828 Net finance receivables and net investment in operating leases (b) 112,208 23,517 4,778 140,503 (8,778) 131,725 Total assets 125,962 27,620 5,435 159,017 — 159,017 __________ (a) Finance receivables, net and Net investment in operating leases include unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation). (b) Excludes held-for-sale receivables. NOTE 14. SEGMENT AND GEOGRAPHIC INFORMATION (Continued) Geographic Information Key data, split geographically into the United States (which is our country of domicile), Canada, and Rest of world, for the years ended or at December 31 were as follows (in millions): 2018 2019 2020 Total revenue United States $ 9,043 $ 9,472 $ 8,780 Canada 1,315 1,323 1,240 Rest of world 2,024 1,828 1,442 Total revenue $ 12,382 $ 12,623 $ 11,462 Net property and net investment in operating leases United States $ 24,057 $ 24,123 $ 22,891 Canada 3,155 3,328 3,588 Rest of world 429 420 395 Net property and net investment in operating leases $ 27,641 $ 27,871 $ 26,874 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA | SELECTED QUARTERLY FINANCIAL DATA (Unaudited) Selected financial data by calendar quarter were as follows (in millions): First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2019 Total revenue $ 3,194 $ 3,188 $ 3,127 $ 3,114 $ 12,623 Depreciation on vehicles subject to operating leases (924) (894) (894) (923) (3,635) Interest expense (1,121) (1,114) (1,081) (1,073) (4,389) Total financing margin and other revenue 1,149 1,180 1,152 1,118 4,599 Provision for credit losses 33 63 93 107 296 Net income 603 613 571 441 2,228 2020 Total revenue $ 3,032 $ 2,793 $ 2,855 $ 2,782 $ 11,462 Depreciation on vehicles subject to operating leases (1,052) (990) (537) (656) (3,235) Interest expense (984) (839) (792) (787) (3,402) Total financing margin and other revenue 996 964 1,526 1,339 4,825 Provision for credit losses 586 93 86 63 828 Net income 21 407 859 637 1,924 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 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 thirty years. Many of our leases contain one or more options to extend. We include options that we are reasonably certain to exercise in our evaluation of the lease term after considering all relevant economic and financial factors. The leased (“right-of-use”) assets in operating lease arrangements are presented in Other assets on our consolidated balance sheets. For the majority of our leases, we do not separate the non-lease components (e.g., maintenance and operating services) from the lease components to which they relate. Instead, non-lease components are included in the measurement of the lease liabilities. We calculate the initial lease liability as the present value of fixed payments not yet paid and variable payments that are based on a market rate or an index (e.g., CPI), measured at commencement. The majority of our leases are discounted using our incremental borrowing rate because the rate implicit in the lease is not readily determinable. All other variable payments are expensed as incurred. Operating lease liabilities are reported in Other liabilities and deferred revenue . The amounts contractually due on our operating lease liabilities at December 31, 2020 were as follows (in millions): 2021 2022 2023 2024 2025 Thereafter Total Operating lease $ 22 $ 18 $ 18 $ 17 $ 15 $ 20 $ 110 Less: Present value discount 10 Total operating lease liabilities $ 100 Operating and variable lease expense for the years ended December 31, 2018, 2019, and 2020 was $28 million, $21 million, and $25 million, respectively. The right-of-use assets obtained in exchange for operating lease liabilities for the years ended December 31, 2019 and 2020 were $42 million and $12 million, respectively. The weighted average remaining lease term for operating leases for the years ending December 31, 2019 and 2020 was seven years and six years, respectively. The weighted average remaining discount rate for operating leases for the years ended December 31, 2019 and 2020 was 3.1% and 3.3%, respectively. 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 $153 million at December 31, 2019 and 2020, respectively. Of these values, $48 million and $62 million at December 31, 2019 and 2020, respectively, were counter-guaranteed by Ford to us. There were no recorded liabilities related to guarantees and limited indemnities at December 31, 2019 and 2020. NOTE 16. COMMITMENTS AND CONTINGENCIES (continued) In some cases, we have guaranteed debt and other financial obligations of outside third parties and unconsolidated affiliates, including Ford. Expiration dates vary, and guarantees will terminate on payment and/or cancellation of the underlying obligation. A payment by us would be triggered by failure of the third party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from a third party amounts paid by us under the guarantee. However, our ability to enforce these rights is sometimes stayed until the guaranteed party is paid in full, and may be limited in the event of insolvency of the third party or other circumstances. In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction. These indemnifications might include and are not limited to claims relating to any of the following: environmental, tax, and shareholder matters; intellectual property rights; governmental regulations and employment-related matters; dealer and other commercial contractual relationships; and financial matters, such as securitizations. Performance under these indemnities generally would be triggered by a breach of contract claim brought by a counterparty or a third-party claim. While some of these indemnifications are limited in nature, many of them do not limit potential payment. Therefore, we are unable to estimate a maximum amount of future payments that could result from claims made under these unlimited indemnities. Litigation and Claims Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include but are not limited to matters arising out of governmental regulations; tax matters; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer and other contractual relationships; personal injury matters; investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages in very large amounts, sanctions, assessments, or other relief, which, if granted, would require very large expenditures. The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome. We accrue for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time. 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 received a decision from the Italian Competition Authority (“ICA”), which included an assessment of a fine against FCE in the amount of €42 million (equivalent to $51 million at December 31, 2020). On March 8, 2019, FCE appealed the decision and the fine to the Italian administrative court, and on November 24, 2020, the Italian administrative court ruled in favor of FCE. On December 23, 2020, the ICA filed an appeal of the Italian administrative court’s decision to the Italian Council of State. While we have determined that an adverse outcome is not probable, the reasonably possible loss could be up to the fine amount. As noted, the litigation process is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance. Our assessments are based on our knowledge and experience, but the ultimate outcome of any matter could require payment substantially in excess of the amount that we have accrued and / or disclosed. |
Organization, Consolidation a_2
Organization, Consolidation and Presentation of Financial Statements (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | The accompanying consolidated financial statements include Ford Motor Credit Company LLC, its controlled domestic and foreign subsidiaries and joint ventures, 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”). Affiliates that we do not consolidate, but for which we have significant influence over operating and financial policies, are accounted for using the equity method. We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). |
Comparability of Prior Year Financial Data, Policy [Policy Text Block] | We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | The accompanying consolidated financial statements include Ford Motor Credit Company LLC, its controlled domestic and foreign subsidiaries and joint ventures, 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”). Affiliates that we do not consolidate, but for which we have significant influence over operating and financial policies, are accounted for using the equity method. We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). |
Reclassifications [Abstract] | |
Comparability of Prior Year Financial Data, Policy [Policy Text Block] | We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation. |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Cash equivalents, marketable securities, and derivative financial instruments are remeasured and presented on our financial statements on a recurring basis at fair value, while other assets and liabilities are measured at fair value on a nonrecurring basis. In measuring fair value, we use various valuation methods and prioritize the use of observable inputs. The use of observable and unobservable inputs and their significance in measuring fair value are reflected in our fair value hierarchy. • Level 1 – inputs include quoted prices for identical instruments and are the most observable • Level 2 – inputs include quoted prices for similar instruments and observable inputs such as interest rates, currency exchange rates, and yield curves • Level 3 – inputs include data not observable in the market and reflect management judgment about the assumptions market participants would use in pricing the instruments Transfers into and transfers out of the hierarchy levels are recognized as if they had taken place at the end of the reporting period. Cash and Cash Equivalents. Included in Cash and cash equivalents are highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of change in value due to interest rate, quoted price, or penalty on withdrawal. A debt security is classified as a cash equivalent if it meets these criteria and if it has a remaining time to maturity of three months or less from the date of purchase. Amounts on deposit and available upon demand, or negotiated to provide for daily liquidity without penalty, are classified as Cash and cash equivalents . Time deposits, certificates of deposit, and money market accounts that meet the above criteria are reported at par value on our consolidated balance sheets. Marketable Securities. Investments in securities with a maturity date greater than three months at the date of purchase and other securities for which there is more than an insignificant risk of change in value due to interest rate, quoted price, or penalty on withdrawal are classified as Marketable securities . These investments are reported at fair value. We generally measure fair value using prices obtained from pricing services. Pricing methods and inputs to valuation models used by the pricing services depend on the security type (i.e., asset class). Where possible, fair values are generated using market inputs including quoted prices (the closing price in an exchange market), bid prices (the price at which a buyer stands ready to purchase), and other market information. For fixed income securities that are not actively traded, the pricing services use alternative methods to determine fair value for the securities, including quotes for similar fixed income securities, matrix pricing, discounted cash flow using benchmark curves, or other factors. In certain cases, when market data are not available, we may use broker quotes to determine fair value. An annual review is performed on the security prices received from our pricing services, which includes discussion and analysis of the inputs used by the pricing services to value our securities. We also compare the price of certain securities sold close to the quarter end to the price of the same security at the balance sheet date to ensure the reported fair value is reasonable. Realized and unrealized gains and losses and interest income on our marketable securities are recorded in Other income, net . Realized gains and losses are measured using the specific identification method. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) On a nonrecurring basis, we also measure at fair value retail contracts greater than 120 days past due or deemed to be uncollectible, and individual dealer loans probable of foreclosure. We use the fair value of collateral, adjusted for estimated costs to sell, to determine the fair value of these receivables. The collateral for a retail financing or wholesale receivable is the vehicle financed, and for dealer loans is real estate or other property. The fair value of collateral for retail financing receivables is calculated as the outstanding receivable balances multiplied by the average recovery value percentage. The fair value of collateral for wholesale receivables is based on the wholesale market value or liquidation value for new and used vehicles. The fair value of collateral for dealer loans is determined by reviewing various appraisals, which include total adjusted appraised value of land and improvements, alternate use appraised value, broker’s opinion of value, and purchase offers. Notes and accounts receivable from affiliated companies are presented separately on the balance sheets. These receivables are based on intercompany relationships and the balances are settled regularly. We do not assess these receivables for potential credit losses, nor are they subjected to aging analysis, credit quality reviews, or other formal assessments. As a result, Notes and accounts receivable from affiliated companies are not subject to the following disclosures contained herein. |
Loans and Leases Receivable Disclosure [Abstract] | |
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | 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. Revenue from finance receivables is recognized using the interest method and includes the accretion of certain direct origination costs that are deferred and interest supplements received from Ford and affiliated companies. The unearned interest supplements on finance receivables are included in Total finance receivables, net on the balance sheets, and the earned interest supplements are included in Total financing revenue on the income statements. |
Lease Policy [Abstract] | |
Lessor, Leases [Policy Text Block] | We receive interest supplements and residual support payments on certain leasing transactions under agreements with Ford. We recognize these upfront collections from Ford and other vehicle acquisition costs as part of Net investment in operating leases , which are amortized to Depreciation on vehicles subject to operating leases Accumulated depreciation reduces the value of the vehicles from their initial acquisition value to their expected residual value at the end of the lease, with the associated depreciation expense recognized on a straight-line basis over the scheduled lease term. At the time of purchase, we establish the expected residual value for the vehicle based on recent auction values, return volumes for our leased vehicles, industry-wide used vehicle prices, marketing incentive plans, and vehicle quality data. We monitor residual values each month and review the accuracy of our accumulated depreciation on a quarterly basis. 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 periods presented, we have not recorded any impairment charges. |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Policy [Policy Text Block] | Derivative Financial Instruments and Hedge Accounting. Derivative assets and derivative liabilities are reported in Derivative financial instruments on our balance sheets. NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued) Fair Value Hedges . We use derivatives to reduce the risk of changes in the fair value of debt. We have designated certain receive-fixed, pay-float interest rate and cross-currency interest rate swaps as fair value hedges of fixed-rate debt. The risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark interest rate and foreign exchange. We report the change in fair value of the hedged debt related to the change in benchmark interest rate in Debt and Interest expense . We report the change in fair value of the hedged debt and hedging instrument related to foreign currency in Other income, net . Net interest settlements and accruals, and fair value changes on hedging instruments due to the benchmark interest rate change are reported in Interest expense . The cash flows associated with fair value hedges are reported in Net cash provided by / (used in) operating activities on our statements of cash flows. When a fair value hedge is de-designated, or when the derivative is terminated before maturity, the fair value adjustment to the hedged debt continues to be reported as part of the carrying value of the debt and is recognized in Interest expense over its remaining life. Derivatives Not Designated as Hedging Instruments. We report net interest settlements and accruals and changes in the fair value of interest rate swaps not designated as hedging instruments in Other income, net . Foreign currency revaluation on accrued interest along with gains and losses on foreign exchange contracts and cross-currency interest rate swaps are reported in Other income, net. Cash flows associated with non-designated or de-designated derivatives are reported in Net cash provided by / (used in) investing activities on our statements of cash flows. |
Debt Disclosure [Abstract] | |
Debt, Policy [Policy Text Block] | Debt is reported on our consolidated balance sheets at par value adjusted for unamortized discount or premium, unamortized issuance costs, and adjustments related to designated fair value hedging (see Note 7 for additional information). Debt due within one year at issuance is classified as short-term. Debt due after one year at issuance is classified as long-term. Discounts, premiums, and costs directly related to the issuance of debt are capitalized and amortized over the life of the debt or to the put date and are recorded in Interest expense using the effective interest method. Gains and losses on the extinguishment of debt are recorded in Other income, net. |
Income Tax Disclosure [Abstract] | |
Income Tax, Policy [Policy Text Block] | Deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences that exist between the financial statement carrying value of assets and liabilities and their respective tax bases, and net operating loss and tax credit carryforwards on a taxing jurisdiction basis. We measure deferred tax assets and liabilities using enacted tax rates that will apply in the years in which we expect the temporary differences to be recovered or paid. Our accounting for deferred tax consequences represents our best estimate of the likely future tax consequences of events that have been recognized in our financial statements or tax returns and their future probability. In assessing the need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. If, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized, we record a valuation allowance. Components of Deferred Tax Assets and Liabilities |
Insurance [Abstract] | |
Insurance Premiums Revenue Recognition, Policy [Policy Text Block] | Insurance premiums earned are reported net of reinsurance as Insurance premiums earned . These premiums are earned over their respective policy periods. Physical damage insurance premiums, including premiums on vehicles financed at wholesale by us, are recognized as income on a monthly basis. Premiums from extended service plan contracts and other contractual liability coverages are earned over the life of the policy based on historical loss experience. Commissions and premium taxes are deferred and amortized over the term of the related policies on the same basis on which premiums are earned. |
Insurance Losses and Claims, Policy [Policy Text Block] | Reserves for insurance losses and loss adjustment expenses are established based on actuarial estimates and historical loss development patterns, which represents management’s best estimate. If management believes the reserves do not reflect all losses due to changes in conditions, or other relevant factors, an adjustment is made based on management judgment. Insurance underwriting losses and expenses are reported as Insurance expenses |
Reinsurance Accounting Policy [Policy Text Block] | Reinsurance activity primarily consists of ceding a majority of the contractual liability insurance business related to automotive extended service plan contracts for a ceding commission. Commissions on ceded amounts are earned on the same basis as related premiums. Reinsurance contracts do not relieve TARIC from its obligations to its policyholders. Failure of reinsurers to honor their obligations could result in losses to TARIC. Therefore, TARIC requires all of its reinsurers to hold collateral and monitors the underlying business and financial performance of its reinsurers to mitigate risk. Amounts paid to reinsurers relating to the unexpired portion of the underlying automotive service contracts, and amounts recoverable from reinsurers on unpaid losses, including incurred but not reported losses are reported in Other assets |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees and Indemnifications Policies [Policy Text Block] | 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. |
Cash, Cash Equivalents, and M_2
Cash, Cash Equivalents, and Marketable Securities (Tables) | 12 Months Ended |
Dec. 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 on our balance sheets at December 31 (in millions): Fair Value Level 2019 2020 Cash and cash equivalents United States government 1 $ — $ 3,255 United States government agencies 2 — 640 Non-United States government and agencies 2 350 717 Corporate debt 2 604 970 Total marketable securities classified as cash equivalents 954 5,582 Cash, time deposits and money market funds 8,113 8,767 Total cash and cash equivalents $ 9,067 $ 14,349 Marketable securities United States government 1 $ 195 $ 1,082 United States government agencies 2 210 485 Non-United States government and agencies 2 2,408 2,693 Corporate debt 2 193 308 Other marketable securities 2 290 292 Total marketable securities $ 3,296 $ 4,860 |
Schedule of cash, cash equivalents and restricted cash [Table Text Block] | Cash, cash equivalents, and restricted cash as reported in the consolidated statements of cash flows are presented separately on our consolidated balance sheets as follows (in millions): December 31, 2019 December 31, 2020 Cash and cash equivalents $ 9,067 $ 14,349 Restricted cash included in other assets (a) 139 647 Cash, cash equivalents and restricted cash in assets held-for-sale 62 — Total cash, cash equivalents, and restricted cash $ 9,268 $ 14,996 __________ (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) | 12 Months Ended |
Dec. 31, 2020 | |
Financing Receivables [Line Items] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Total finance receivables, net at December 31 were as follows (in millions): 2019 2020 Consumer Retail installment contracts, gross $ 68,998 $ 73,726 Finance leases, gross 8,566 8,431 Retail financing, gross 77,564 82,157 Unearned interest supplements from Ford and affiliated companies (3,589) (3,987) Consumer finance receivables 73,975 78,170 Non-Consumer Dealer financing (a) 38,910 26,517 Other financing (b) 1,945 1,688 Non-Consumer finance receivables 40,855 28,205 Total recorded investment (c) $ 114,830 $ 106,375 Recorded investment in finance receivables $ 114,830 $ 106,375 Allowance for credit losses (513) (1,305) Total finance receivables, net $ 114,317 $ 105,070 Net finance receivables subject to fair value (d) $ 106,131 $ 97,043 Fair value 106,260 98,630 __________ (a) Includes $4.1 billion and $5.1 billion at December 31, 2019 and 2020, respectively, of receivables generated by divisions and affiliates of Ford in connection with vehicle inventories released from Ford and in transit to the destination dealers. Interest earned from Ford and affiliated companies associated with receivables from gate-released vehicles in transit to dealers for the years ended December 31, 2018, 2019, and 2020 was $261 million, $229 million, and $137 million, respectively. Balances at December 31, 2019 and 2020, also include $844 million and $515 million, respectively, of dealer financing receivables with entities (primarily dealers) that are reported as consolidated subsidiaries of Ford. For the years ended December 31, 2018, 2019, and 2020, the interest earned on receivables from consolidated subsidiaries of Ford to which we provide dealer financing was $8 million, $10 million, and $13 million, respectively. Consolidated subsidiaries of Ford include dealerships that are owned and consolidated by Ford. (b) Represents other financing receivables with Ford and entities (primarily dealers) that are reported as consolidated subsidiaries of Ford, which includes amounts associated with purchased receivables and receivables associated with the financing of vehicles that Ford leases to employees. Interest earned from Ford and affiliated companies associated with these other financing receivables totaled $84 million, $96 million, and $88 million for the years ended December 31, 2018, 2019, and 2020, respectively. (c) Earned interest supplements on consumer and non-consumer receivables from Ford and affiliated companies totaled $2.4 billion, $2.5 billion, and $2.4 billion for the years ended December 31, 2018, 2019, and 2020, respectively. Cash received from interest supplements totaled $2.7 billion, $2.6 billion, and $2.8 billion for the years ended December 31, 2018, 2019, and 2020, respectively. |
Financing Receivable, Allowance for Credit Loss | An analysis of the allowance for credit losses related to finance receivables for the years ended December 31 was as follows (in millions): 2019 (a) 2020 Consumer Non-Consumer Total Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 566 $ 23 $ 589 $ 496 $ 17 $ 513 Adoption of ASU 2016-13 (b) — — — 247 5 252 Charge-offs (527) (22) (549) (441) (29) (470) Recoveries 168 10 178 161 8 169 Provision for credit losses 291 5 296 771 57 828 Other (c) (2) 1 (1) 11 2 13 Ending balance $ 496 $ 17 $ 513 $ 1,245 $ 60 $ 1,305 __________ (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. |
Financing Receivable, Past Due | 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 December 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 $ 45 $ 62 $ 103 $ 162 $ 166 $ 143 $ 681 61-120 days past due 7 12 24 44 45 31 163 Greater than 120 days past due 11 6 7 8 7 2 41 Total past due 63 80 134 214 218 176 885 Current 782 2,519 6,656 13,725 20,856 32,747 77,285 Total $ 845 $ 2,599 $ 6,790 $ 13,939 $ 21,074 $ 32,923 $ 78,170 |
Sales-type and Direct Financing Leases, Lease Receivable, Maturity | The amounts contractually due on finance leases at December 31, 2020 were as follows (in millions): Finance Lease Receivables 2021 2022 2023 2024 2025 Total Contractual maturity $ 1,978 $ 1,751 $ 1,348 $ 555 $ 55 $ 5,687 Less: Present value discount 251 Total finance lease receivables $ 5,436 The reconciliation from finance lease receivables to finance leases, gross and finance leases, net at December 31 is as follows (in millions): 2019 2020 Finance lease receivables $ 5,651 $ 5,436 Unguaranteed residual assets 2,795 2,893 Initial direct costs 120 102 Finance leases, gross 8,566 8,431 Unearned interest supplements from Ford and affiliated companies (363) (337) Allowance for credit losses (17) (67) Finance leases, net $ 8,186 $ 8,027 |
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 December 31, 2020 was as follows (in millions): Amortized Cost Basis by Origination Year Dealer Loans Prior to 2016 2016 2017 2018 2019 2020 Total Wholesale Loans Total Group I $ 503 $ 129 $ 110 $ 188 $ 70 $ 248 $ 1,248 $ 18,769 $ 20,017 Group II 38 20 11 35 3 87 194 4,680 4,874 Group III 9 — 3 19 3 35 69 1,464 1,533 Group IV 2 — — — 2 6 10 83 93 Total (a) $ 552 $ 149 $ 124 $ 242 $ 78 $ 376 $ 1,521 $ 24,996 $ 26,517 __________ |
Net Investment in Operating Lea
Net Investment in Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases, Operating [Abstract] | |
Net investment in operating leases [Table Text Block] | Net investment in operating leases at December 31 was as follows (in millions): 2019 2020 Vehicles, at cost (a) $ 33,431 $ 32,495 Accumulated depreciation (5,772) (5,840) Net investment in operating leases $ 27,659 $ 26,655 __________ |
Schedule of Minimum Payments Receivable on Operating Leases [Table Text Block] | The amounts contractually due on our operating leases at December 31, 2020 were as follows (in millions): 2021 2022 2023 2024 2025 Total Operating lease payments $ 4,370 $ 2,530 $ 878 $ 98 $ 4 $ 7,880 |
Transfers of Receivables (Table
Transfers of Receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Schedule Of Interest Expense related to Securitization Transactions [Table Text Block] | Interest expense related to securitization debt for the years ended December 31 was as follows (in millions): 2018 2019 2020 VIE $ 1,220 $ 1,373 $ 1,050 Non-VIE 177 201 152 Total securitization transactions $ 1,397 $ 1,574 $ 1,202 |
Schedule of Exposures Based on the Fair Value of Derivative Instruments Related to Securitization Programs [Table Text Block] | Our exposures based on the fair value of derivative instruments with external counterparties related to securitization programs at December 31 were as follows (in millions): 2019 2020 Derivative Derivative Derivative Derivative Derivatives of the VIEs $ 12 $ 19 $ — $ 56 Derivatives related to the VIEs 7 5 5 — Other securitization related derivatives 4 30 — 79 Total exposures related to securitization $ 23 $ 54 $ 5 $ 135 |
Schedule of Derivative Expense/(Income) Related to Securitization Transactions [Table Text Block] | Derivative expense / (income) related to our securitization transactions for the years ended December 31 was as follows (in millions): 2018 2019 2020 Derivatives of the VIEs $ 30 $ 41 $ 130 Derivatives related to the VIEs (11) (5) (9) Other securitization related derivatives (2) 39 113 Total derivative expense / (income) related to securitization $ 17 $ 75 $ 234 |
Schedule of Assets and Liabilities Related to Securitization Transactions [Table Text Block] | The following tables show the assets and debt related to our securitization transactions that were included in our financial statements at December 31 (in billions): 2019 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt Before Allowance Allowance for After Allowance VIE (b) Retail financing $ 1.8 $ 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 (d) 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. (d) The global adjusted pool balance of the wholesale finance receivables owned by the securitization trusts was $26.8 billion and the required pool balance was $18.4 billion. As of December 31, 2019, the adjusted pool balance was $8.4 billion higher than the required pool balance. NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued) 2020 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt Before Allowance Allowance for After Allowance VIE (b) Retail financing $ 2.0 $ 35.8 $ 0.4 $ 35.4 $ 28.4 Wholesale financing 0.2 16.1 — 16.1 10.7 Finance receivables 2.2 51.9 0.4 51.5 39.1 Net investment in operating leases 0.6 12.8 — 12.8 7.7 Total VIE $ 2.8 $ 64.7 $ 0.4 $ 64.3 $ 46.8 Non-VIE Retail financing $ 0.4 $ 7.9 $ 0.1 $ 7.8 $ 7.6 Wholesale financing — 0.3 — 0.3 0.2 Finance receivables 0.4 8.2 0.1 8.1 7.8 Net investment in operating leases — — — — — Total Non-VIE $ 0.4 $ 8.2 $ 0.1 $ 8.1 $ 7.8 Total securitization transactions Retail financing $ 2.4 $ 43.7 $ 0.5 $ 43.2 $ 36.0 Wholesale financing (d) 0.2 16.4 — 16.4 10.9 Finance receivables 2.6 60.1 0.5 59.6 46.9 Net investment in operating leases 0.6 12.8 — 12.8 7.7 Total securitization transactions $ 3.2 $ 72.9 $ 0.5 $ 72.4 $ 54.6 __________ (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. (d) The global adjusted pool balance of the wholesale finance receivables owned by the securitization trusts was $16.4 billion and the required pool balance was $14.1 billion. As of December 31, 2020, the adjusted pool balance was $2.3 billion higher than the required pool balance. |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 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 years ended December 31 were as follows (in millions): 2018 2019 2020 Fair value hedges Interest rate contracts Net interest settlements and accruals on hedging instruments $ 10 $ (16) $ 290 Fair value changes on hedging instruments (155) 706 986 Fair value changes on hedged debt 153 (694) (985) Cross-currency interest rate swap contracts Net interest settlements and accruals on hedging instruments — — (2) Fair value changes on hedging instruments — — 38 Fair value changes on hedged debt — — (37) Derivatives not designated as hedging instruments Interest rate contracts (84) (13) (100) Foreign currency exchange contracts (a) 163 52 (82) Cross-currency interest rate swap contracts (244) (229) 486 Total $ (157) $ (194) $ 594 __________ (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 at December 31 were as follows (in millions): 2019 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 $ 26,924 $ 1,331 $ 4 Cross-currency interest rate swaps — — — 885 46 — Derivatives not designated as hedging instruments Interest rate contracts 68,914 275 191 70,318 663 439 Foreign currency exchange contracts 5,540 17 79 4,378 4 80 Cross-currency interest rate swap contracts 5,849 134 67 6,849 557 1 Total derivative financial instruments, gross (a) (b) $ 106,880 $ 1,128 $ 356 $ 109,354 $ 2,601 $ 524 __________ (a) At December 31, 2019 and 2020, we held collateral of $18 million and $9 million, and we posted collateral of $78 million and $96 million, respectively. |
Other Assets and Other Liabil_2
Other Assets and Other Liabilities and Deferred Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets and Other Liabilities and Deferred Income [Abstract] | |
Schedule of Other Assets and Other Liabilities [Table Text Block] | Other assets at December 31 were as follows (in millions): 2019 2020 Accrued interest and other non-finance receivables (a) $ 898 $ 1,726 Prepaid reinsurance premiums and other reinsurance recoverables 687 708 Collateral held for resale, at net realizable value 843 675 Restricted cash 139 647 Property and equipment, net of accumulated depreciation (b) 212 219 Deferred charges – income taxes 171 165 Investment in non-consolidated affiliates (c) 132 132 Operating lease assets 108 98 Other 208 223 Total other assets $ 3,398 $ 4,593 __________ (a) Includes income tax receivable from affiliated companies of $0 and $867 million at December 31, 2019 and 2020, respectively. (b) Accumulated depreciation was $393 million and $365 million at December 31, 2019 and 2020, respectively. (c) December 31, 2020 includes the adoption of ASU 2016-13, reducing investment in non-consolidated affiliates by $8 million. See Note 2 for additional information. Other liabilities and deferred revenue at December 31 were as follows (in millions): 2019 2020 Interest payable $ 888 $ 857 Unearned insurance premiums and fees 806 822 Income tax and related interest (a) 433 147 Operating lease liabilities 110 100 Deferred revenue 110 87 Other 286 293 Total other liabilities and deferred revenue $ 2,633 $ 2,306 __________ (a) Includes tax and interest payable to affiliated companies of $294 million and $16 million at December 31, 2019 and 2020, respectively. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Debt outstanding and interest rates at December 31 were as follows (in millions): Interest Rates Debt Average Contractual Average Effective 2019 2020 2019 2020 2019 2020 Short-term debt Unsecured debt Floating rate demand notes $ 6,545 $ 6,458 Commercial paper 3,560 163 Other short-term debt 2,731 3,777 Asset-backed debt 881 1,031 Total short-term debt 13,717 11,429 2.8 % 1.5 % 2.8 % 1.6 % Long-term debt Unsecured debt Notes payable within one year 15,062 17,185 Notes payable after one year 55,148 54,197 Asset-backed debt Notes payable within one year 23,609 21,345 Notes payable after one year 32,162 32,276 Unamortized (discount) / premium 7 30 Unamortized issuance costs (214) (252) Fair value adjustments (a) 538 1,467 Total long-term debt 126,312 126,248 3.0 % 2.7 % 3.0 % 2.7 % Total debt $ 140,029 $ 137,677 2.9 % 2.6 % 3.0 % 2.6 % Fair value of debt $ 141,678 $ 139,796 Interest rate characteristics of debt payable after one year Fixed interest rate 67,090 71,515 Variable interest rate (generally based on LIBOR or other short-term rates) 20,220 14,958 Total payable after one year $ 87,310 $ 86,473 __________ |
Schedule of Maturities of Long-term Debt [Table Text Block] | Debt maturities at December 31, 2020 were as follows (in millions): 2021 (a) 2022 2023 2024 2025 Thereafter (b) Total Unsecured debt $ 27,583 $ 13,983 $ 10,835 $ 10,323 $ 9,117 $ 9,939 $ 81,780 Asset-backed debt 22,376 14,419 7,850 3,148 6,159 700 54,652 Total 49,959 28,402 18,685 13,471 15,276 10,639 136,432 Unamortized (discount) / premium 30 Unamortized issuance costs (252) Fair value adjustments 1,467 Total debt $ 137,677 __________ (a) Includes $11,429 million for short-term and $38,530 million for long-term debt. (b) Matures between 2026 and 2030. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Components of Income Taxes 2018 2019 2020 Income before income taxes (in millions) United States $ 1,717 $ 2,160 $ 2,085 Non-United States 910 838 523 Total $ 2,627 $ 2,998 $ 2,608 Provision for / (Benefit from) income taxes for the years ended December 31 was estimated as follows (in millions): 2018 2019 2020 Current Federal $ 72 $ 396 $ 53 Non-United States 153 168 98 State and local (81) 169 154 Total current 144 733 305 Deferred Federal 283 (12) 372 Non-United States (125) 104 61 State and local 101 (55) (54) Total deferred 259 37 379 Provision for / (Benefit from) income taxes $ 403 $ 770 $ 684 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the Provision for / (Benefit from) income taxes with the United States statutory tax rate as a percentage of Income before income taxes for the years ended December 31 is as follows: 2018 2019 2020 United States statutory tax rate 21.0 % 21.0 % 21.0 % Effect of (in percentage points): Non-United States tax rates under United States rate 1.7 1.3 1.1 State and local income taxes 0.6 2.7 3.0 Dispositions and restructurings (8.9) — — United States tax on non-United States earnings 0.4 (0.1) 0.7 Other 0.5 0.8 0.4 Effective tax rate 15.3 % 25.7 % 26.2 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | omponents of deferred tax assets and liabilities at December 31 were as follows (in millions): 2019 2020 Deferred tax assets Net operating loss carryforwards $ 378 $ 281 Provision for credit losses 141 318 Other foreign 190 217 Employee benefit plans 24 25 Foreign tax credits 669 682 Other 46 57 Total gross deferred tax assets 1,448 1,580 Less: Valuation allowance (43) (65) Total net deferred tax assets 1,405 1,515 Deferred tax liabilities Leasing transactions 2,674 3,265 Finance receivables 584 574 Other foreign 568 418 Other 1 — Total deferred tax liabilities 3,827 4,257 Net deferred tax liability $ 2,422 $ 2,742 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | 2019 2020 Beginning balance $ 115 $ 109 Increase - tax positions in prior periods 40 5 Increase - tax positions in current period — 2 Decrease - tax positions in prior periods (8) (8) Settlements (36) — Lapse of statute of limitations — — Foreign currency translation adjustments (2) 1 Ending balance $ 109 $ 109 |
Insurance (Tables)
Insurance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Schedule of Insurance Assets [Table Text Block] | Cash, cash equivalents, and marketable securities related to insurance activities at December 31 were as follows (in millions): 2019 2020 Cash and cash equivalents $ 9 $ 22 Marketable securities 697 703 Total cash, cash equivalents, and marketable securities $ 706 $ 725 |
Schedule of Insurance Underwriting Losses and Expenses [Table Text Block] | The components of insurance expenses for the years ended December 31 were as follows (in millions): 2018 2019 2020 Insurance losses $ 101 $ 128 $ 110 Loss adjustment expenses 5 7 5 Reinsurance income and other expenses, net (29) (32) (33) Insurance expenses $ 77 $ 103 $ 82 |
Schedule of the Effect of Reinsurance Premiums Written and Earned [Table Text Block] | Insurance premiums written and earned for the years ended December 31 were as follows (in millions): 2018 2019 2020 Written Earned Written Earned Written Earned Direct $ 392 $ 346 $ 406 $ 377 $ 366 $ 350 Assumed — — — — — — Ceded (225) (179) (223) (195) (229) (207) Net premiums $ 167 $ 167 $ 183 $ 182 $ 137 $ 143 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income [Table Text Block] | The amounts included in Other income, net for the years ended December 31 were as follows (in millions): 2018 2019 2020 Gains / (Losses) on derivatives $ (165) $ (190) $ 341 Currency revaluation gains / (losses) 12 70 (437) Interest and investment income 198 318 119 Other (a) 35 16 — Total other income, net $ 80 $ 214 $ 23 __________ |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Key operating data for our business segments for the years ended or at December 31 was as follows (in millions): United States and Canada Europe All Other Total Unallocated Other (a) Total 2018 Total revenue $ 10,358 $ 1,160 $ 864 $ 12,382 $ — $ 12,382 Income before income taxes 2,132 382 187 2,701 (74) 2,627 Other disclosures: Depreciation on vehicles subject to operating leases 3,934 39 — 3,973 — 3,973 Interest expense 3,183 283 470 3,936 (6) 3,930 Provision for credit losses 361 20 45 426 — 426 Net finance receivables and net investment in operating leases 121,712 26,028 7,136 154,876 (8,613) 146,263 Total assets 126,354 27,804 8,051 162,209 — 162,209 2019 Total revenue $ 10,795 $ 1,183 $ 645 $ 12,623 $ — $ 12,623 Income before income taxes 2,365 352 143 2,860 138 2,998 Other disclosures: Depreciation on vehicles subject to operating leases 3,592 43 — 3,635 — 3,635 Interest expense 3,685 340 346 4,371 18 4,389 Provision for credit losses 260 25 11 296 — 296 Net finance receivables and net investment in operating leases (b) 119,498 25,630 5,062 150,190 (8,214) 141,976 Total assets 125,647 30,050 5,729 161,426 — 161,426 2020 Total revenue $ 10,020 $ 1,012 $ 430 $ 11,462 $ — $ 11,462 Income before income taxes 2,241 196 38 2,475 133 2,608 Other disclosures: Depreciation on vehicles subject to operating leases 3,237 (2) — 3,235 — 3,235 Interest expense 2,892 347 223 3,462 (60) 3,402 Provision for credit losses 716 63 49 828 — 828 Net finance receivables and net investment in operating leases (b) 112,208 23,517 4,778 140,503 (8,778) 131,725 Total assets 125,962 27,620 5,435 159,017 — 159,017 __________ (a) Finance receivables, net and Net investment in operating leases include unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation). (b) Excludes held-for-sale receivables. |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | Key data, split geographically into the United States (which is our country of domicile), Canada, and Rest of world, for the years ended or at December 31 were as follows (in millions): 2018 2019 2020 Total revenue United States $ 9,043 $ 9,472 $ 8,780 Canada 1,315 1,323 1,240 Rest of world 2,024 1,828 1,442 Total revenue $ 12,382 $ 12,623 $ 11,462 Net property and net investment in operating leases United States $ 24,057 $ 24,123 $ 22,891 Canada 3,155 3,328 3,588 Rest of world 429 420 395 Net property and net investment in operating leases $ 27,641 $ 27,871 $ 26,874 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Selected financial data by calendar quarter were as follows (in millions): First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2019 Total revenue $ 3,194 $ 3,188 $ 3,127 $ 3,114 $ 12,623 Depreciation on vehicles subject to operating leases (924) (894) (894) (923) (3,635) Interest expense (1,121) (1,114) (1,081) (1,073) (4,389) Total financing margin and other revenue 1,149 1,180 1,152 1,118 4,599 Provision for credit losses 33 63 93 107 296 Net income 603 613 571 441 2,228 2020 Total revenue $ 3,032 $ 2,793 $ 2,855 $ 2,782 $ 11,462 Depreciation on vehicles subject to operating leases (1,052) (990) (537) (656) (3,235) Interest expense (984) (839) (792) (787) (3,402) Total financing margin and other revenue 996 964 1,526 1,339 4,825 Provision for credit losses 586 93 86 63 828 Net income 21 407 859 637 1,924 Our first quarter 2020 results include a charge to Provision for credit losses of $486 million to reflect higher estimated defaults on our retail portfolio due to the impact of economic conditions attributable to the COVID-19 pandemic. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | The amounts contractually due on our operating lease liabilities at December 31, 2020 were as follows (in millions): 2021 2022 2023 2024 2025 Thereafter Total Operating lease $ 22 $ 18 $ 18 $ 17 $ 15 $ 20 $ 110 Less: Present value discount 10 Total operating lease liabilities $ 100 |
Presentation Principles of Cons
Presentation Principles of Consolidation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | $ 55 | $ 56 | |
Disposal Group, Including Discontinued Operation, Assets | 36 | 1,698 | |
Disposal Group, Including Discontinued Operation, Liabilities | $ 0 | 45 | |
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | $ 4 | 20 | |
Cash Proceeds from Sale | $ 1,340 | ||
Disposal Group, Including Discontinued Operation, Intercompany Assets | 2 | ||
Disposal Group, Including Discontinued Operation, Intercompany Liabilities | 1,274 | ||
FORSO [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Disposal Group, Including Discontinued Operation, Assets | 1,416 | ||
Disposal Group, Including Discontinued Operation, Liabilities | $ 45 |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finance receivables, net | $ 105,070 | $ 114,317 | |
Other assets | 4,593 | $ 3,390 | 3,398 |
Deferred income taxes | 2,907 | 2,535 | 2,593 |
Retained earnings | 9,212 | 9,703 | 9,905 |
Accounting Standards Update 2016-13 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finance receivables, net | 252 | 0 | |
Other assets | (8) | ||
Deferred income taxes | (58) | ||
Retained earnings | (202) | ||
Retail Installment loans, dealer financing, and other financing [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finance receivables, net | 97,043 | 105,901 | 106,131 |
Retail Installment loans, dealer financing, and other financing [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 | $ 8,027 | 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 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash, Cash Equivalents, and Short-term Investments | $ 8,767 | $ 8,113 | ||
Total cash and cash equivalents | 14,349 | 9,067 | ||
Restricted Cash | 647 | 139 | ||
Cash, cash equivalents and restricted cash at beginning of period (Note 3) | 14,996 | 9,268 | $ 9,747 | $ 9,682 |
Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 5,582 | 954 | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Marketable securities | 4,860 | 3,296 | ||
US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 3,255 | 0 | ||
Marketable securities | 1,082 | 195 | ||
US Government Agencies Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 640 | 0 | ||
Marketable securities | 485 | 210 | ||
Debt Security, Government, Non-US [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 717 | 350 | ||
Marketable securities | 2,693 | 2,408 | ||
Corporate debt [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 970 | 604 | ||
Marketable securities | 308 | 193 | ||
Other Debt Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Marketable securities | $ 292 | $ 290 |
Finance Receivables Net (Detail
Finance Receivables Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Wholesale Loans Percentage of Dealer Financing | 93.00% | ||
Net Finance Receivables [Abstract] | |||
Finance receivables before unearned interest supplements | $ 8,431 | $ 8,566 | |
Financing Receivable, Gross | 106,375 | 114,830 | |
Allowance for credit losses | (1,305) | (513) | $ (589) |
Financing Receivable, Net | 105,070 | 114,317 | |
Net finance receivables subject to fair value | 97,043 | 106,131 | |
Related Party Transaction, Dealer Financing | 5,100 | 4,100 | |
Related Party Transaction, Dealer Financing | 515 | 844 | |
Related Party, Interest Income, Finance Receivables | 13 | 10 | 8 |
Interest and Fee Income, Other Loans | 88 | 96 | 84 |
Related Party Transaction, Interest Income, Purchased Receivables | 137 | 229 | 261 |
Related Party Transaction, Earned Interest Supplements, Financing Receivables | 2,400 | 2,500 | 2,400 |
Related Party Transactions Cash Received Interest Supplements Financing Receivables | 2,800 | 2,600 | 2,700 |
Uncollected interest receivable excluded from finance receivable | 181 | 253 | |
Financing Receivable, Reclassification to Held-for-sale | 1,512 | ||
FORSO [Member] | |||
Net Finance Receivables [Abstract] | |||
Financing Receivable, Reclassification to Held-for-sale | 1,230 | ||
Consumer Segment [Member] | |||
Net Finance Receivables [Abstract] | |||
Financing Receivable, Gross | 78,170 | ||
Allowance for credit losses | (1,245) | (496) | (566) |
Non-Consumer Segment [Member] | |||
Net Finance Receivables [Abstract] | |||
Financing Receivable, Gross | 28,205 | 40,855 | |
Allowance for credit losses | (60) | (17) | $ (23) |
Retail [Member] | Consumer Segment [Member] | |||
Net Finance Receivables [Abstract] | |||
Finance receivables before unearned interest supplements | 82,157 | 77,564 | |
Unearned interest supplements from Ford and affiliated companies | (3,987) | (3,589) | |
Financing Receivable, Gross | 78,170 | 73,975 | |
Wholesale and Dealer Loans [Member] | Non-Consumer Segment [Member] | |||
Net Finance Receivables [Abstract] | |||
Financing Receivable, Gross | 26,517 | 38,910 | |
Other Finance Receivables [Member] | Non-Consumer Segment [Member] | |||
Net Finance Receivables [Abstract] | |||
Financing Receivable, Gross | 1,688 | 1,945 | |
Wholesale [Member] | |||
Net Finance Receivables [Abstract] | |||
Financing Receivable, Reclassification to Held-for-sale | 36 | ||
Retail Installment Loans [Member] | Consumer Segment [Member] | |||
Net Finance Receivables [Abstract] | |||
Finance receivables before unearned interest supplements | 73,726 | 68,998 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Net Finance Receivables [Abstract] | |||
Fair value | $ 98,630 | $ 106,260 |
Finance Receivables - Contractu
Finance Receivables - Contractual Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Finance Receivables Maturity [Abstract] | ||
Financing Receivable, Gross | $ 106,375 | $ 114,830 |
Finance receivables before unearned interest supplements | 8,431 | 8,566 |
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 | |
31-60 Days Past Due [Member] | ||
Finance Receivables Maturity [Abstract] | ||
Contract with Customer, Asset, Past Due | 839 | |
Financing Receivables, 61-120 Days past due [Member] | ||
Finance Receivables Maturity [Abstract] | ||
Contract with Customer, Asset, Past Due | 166 | |
Greater Than 120 Days Past Due [Member] | ||
Finance Receivables Maturity [Abstract] | ||
Contract with Customer, Asset, Past Due | 35 | |
Consumer Segment [Member] | ||
Finance Receivables Maturity [Abstract] | ||
Financing Receivable, Gross | 78,170 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 2,599 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 6,790 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 13,939 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 21,074 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 32,923 | |
Consumer Segment [Member] | 31-60 Days Past Due [Member] | ||
Finance Receivables Maturity [Abstract] | ||
Financing Receivable, Gross | 681 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 62 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 103 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 162 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 166 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 143 | |
Consumer Segment [Member] | Financing Receivables, 61-120 Days past due [Member] | ||
Finance Receivables Maturity [Abstract] | ||
Financing Receivable, Gross | 163 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 12 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 24 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 44 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 45 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 31 | |
Consumer Segment [Member] | Greater Than 120 Days Past Due [Member] | ||
Finance Receivables Maturity [Abstract] | ||
Financing Receivable, Gross | 41 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 6 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 7 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 8 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 7 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 2 | |
Consumer Segment [Member] | Total past due [Member] | ||
Finance Receivables Maturity [Abstract] | ||
Financing Receivable, Gross | 885 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 80 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 134 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 214 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 218 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 176 | |
Consumer Segment [Member] | Financial Asset, 1 to 29 Days Past Due [Member] | ||
Finance Receivables Maturity [Abstract] | ||
Financing Receivable, Gross | 77,285 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 2,519 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 6,656 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 13,725 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 20,856 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 32,747 | |
Consumer Segment [Member] | Retail [Member] | ||
Finance Receivables Maturity [Abstract] | ||
Financing Receivable, Gross | 78,170 | 73,975 |
Finance receivables before unearned interest supplements | 82,157 | 77,564 |
Non-Consumer Segment [Member] | ||
Finance Receivables Maturity [Abstract] | ||
Financing Receivable, Gross | 28,205 | 40,855 |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | ||
Finance Receivables Maturity [Abstract] | ||
Financing Receivable, Gross | 26,517 | 38,910 |
Non-Consumer Segment [Member] | Other Finance Receivables [Member] | ||
Finance Receivables Maturity [Abstract] | ||
Financing Receivable, Gross | $ 1,688 | $ 1,945 |
Finance Receivables - Aging Ana
Finance Receivables - Aging Analysis (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Finance Receivables Aging Analysis [Abstract] | ||
Financing Receivable, Gross | $ 106,375 | $ 114,830 |
Consumer Segment [Member] | ||
Finance Receivables Aging Analysis [Abstract] | ||
Financing Receivable, Gross | 78,170 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 845 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 2,599 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 6,790 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 13,939 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 21,074 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 32,923 | |
Non-Consumer Segment [Member] | ||
Finance Receivables Aging Analysis [Abstract] | ||
Financing Receivable, Gross | 28,205 | $ 40,855 |
Financing Receivable, Revolving | 24,996 | |
Non-Consumer Segment [Member] | Dealer Loan | ||
Finance Receivables Aging Analysis [Abstract] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 552 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 149 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 124 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 242 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 78 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 376 | |
Non-Consumer Segment [Member] | Group I [Member] | ||
Finance Receivables Aging Analysis [Abstract] | ||
Financing Receivable, Gross | 20,017 | |
Financing Receivable, Revolving | 18,769 | |
Non-Consumer Segment [Member] | Group I [Member] | Dealer Loan | ||
Finance Receivables Aging Analysis [Abstract] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 503 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 129 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 110 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 188 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 70 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 248 | |
Non-Consumer Segment [Member] | Group II [Member] | ||
Finance Receivables Aging Analysis [Abstract] | ||
Financing Receivable, Gross | 4,874 | |
Financing Receivable, Revolving | 4,680 | |
Non-Consumer Segment [Member] | Group II [Member] | Dealer Loan | ||
Finance Receivables Aging Analysis [Abstract] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 38 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 20 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 11 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 35 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 3 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 87 | |
Non-Consumer Segment [Member] | Group III [Member] | ||
Finance Receivables Aging Analysis [Abstract] | ||
Financing Receivable, Gross | 1,533 | |
Financing Receivable, Revolving | 1,464 | |
Non-Consumer Segment [Member] | Group III [Member] | Dealer Loan | ||
Finance Receivables Aging Analysis [Abstract] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 9 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 3 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 19 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 3 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 35 | |
Non-Consumer Segment [Member] | Group IV [Member] | ||
Finance Receivables Aging Analysis [Abstract] | ||
Financing Receivable, Gross | 93 | |
Financing Receivable, Revolving | 83 | |
Non-Consumer Segment [Member] | Group IV [Member] | Dealer Loan | ||
Finance Receivables Aging Analysis [Abstract] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 2 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 2 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 6 | |
Financial Asset, 1 to 29 Days Past Due [Member] | Consumer Segment [Member] | ||
Finance Receivables Aging Analysis [Abstract] | ||
Financing Receivable, Gross | 77,285 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 782 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 2,519 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 6,656 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 13,725 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 20,856 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 32,747 | |
31-60 Days Past Due [Member] | Consumer Segment [Member] | ||
Finance Receivables Aging Analysis [Abstract] | ||
Financing Receivable, Gross | 681 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 45 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 62 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 103 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 162 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 166 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 143 | |
Financing Receivables, 61-120 Days past due [Member] | Consumer Segment [Member] | ||
Finance Receivables Aging Analysis [Abstract] | ||
Financing Receivable, Gross | 163 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 7 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 12 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 24 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 44 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 45 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 31 | |
Greater Than 120 Days Past Due [Member] | Consumer Segment [Member] | ||
Finance Receivables Aging Analysis [Abstract] | ||
Financing Receivable, Gross | 41 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 11 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 6 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 7 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 8 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 7 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 2 | |
Total past due [Member] | Consumer Segment [Member] | ||
Finance Receivables Aging Analysis [Abstract] | ||
Financing Receivable, Gross | 885 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 63 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 80 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 134 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 214 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 218 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | $ 176 |
Finance Receivables - Credit Qu
Finance Receivables - Credit Quality and Impaired Receivables (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | $ 106,375,000,000 | $ 114,830,000,000 |
Finance receivables before unearned interest supplements | 8,431,000,000 | 8,566,000,000 |
Related Party Transaction, Expenses from Transactions with Related Party | (337,000,000) | (363,000,000) |
Finance receivables, net | 8,027,000,000 | 8,186,000,000 |
Sales-type Lease, Interest Income, Unguaranteed Residual Asset | 2,893,000,000 | 2,795,000,000 |
Deferred Costs, Leasing, Gross | 102,000,000 | 120,000,000 |
Sales-Type and Direct Financing Lease, Gross | 5,436,000,000 | 5,651,000,000 |
Sales Type and Direct Financing Lease Revenue | 357,000,000 | 380,000,000 |
Dealer Financing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Past Due | 99 | 62 |
Finance Leases Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Allowance for Credit Loss | (67,000,000) | (17,000,000) |
Consumer Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 78,170,000,000 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 845,000,000 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 2,599,000,000 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 6,790,000,000 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 13,939,000,000 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 21,074,000,000 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | $ 32,923,000,000 | |
Financing Receivable, Credit Quality, Range of Dates Ratings Updated | 61 to 120 days | |
Consumer Segment [Member] | 31-60 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | $ 681,000,000 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 45,000,000 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 62,000,000 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 103,000,000 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 162,000,000 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 166,000,000 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 143,000,000 | |
Consumer Segment [Member] | Financing Receivables, 61-120 Days past due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 163,000,000 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 7,000,000 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 12,000,000 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 24,000,000 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 44,000,000 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 45,000,000 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 31,000,000 | |
Consumer Segment [Member] | Greater Than 120 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 41,000,000 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 11,000,000 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 6,000,000 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 7,000,000 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 8,000,000 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 7,000,000 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 2,000,000 | |
Consumer Segment [Member] | Total past due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 885,000,000 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 63,000,000 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 80,000,000 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 134,000,000 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 214,000,000 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 218,000,000 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 176,000,000 | |
Consumer Segment [Member] | Financial Asset, 1 to 29 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 77,285,000,000 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 782,000,000 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 2,519,000,000 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 6,656,000,000 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 13,725,000,000 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 20,856,000,000 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | $ 32,747,000,000 | |
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] | Substandard [Member] | Minimum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance Receivables Credit Quality Ratings Term Range | 120 days | |
Non-Consumer Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | $ 28,205,000,000 | 40,855,000,000 |
Financing Receivable, Revolving | 24,996,000,000 | |
Non-Consumer Segment [Member] | Group I [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 20,017,000,000 | |
Financing Receivable, Revolving | 18,769,000,000 | |
Non-Consumer Segment [Member] | Group II [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 4,874,000,000 | |
Financing Receivable, Revolving | 4,680,000,000 | |
Non-Consumer Segment [Member] | Group III [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 1,533,000,000 | |
Financing Receivable, Revolving | 1,464,000,000 | |
Non-Consumer Segment [Member] | Group IV [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 93,000,000 | |
Financing Receivable, Revolving | 83,000,000 | |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 26,517,000,000 | 38,910,000,000 |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group I [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 31,206,000,000 | |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group II [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 5,407,000,000 | |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group III [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 2,108,000,000 | |
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group IV [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | $ 189,000,000 | |
Non-Consumer Segment [Member] | Dealer Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 552,000,000 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 149,000,000 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 124,000,000 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 242,000,000 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 78,000,000 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 376,000,000 | |
Financing Receivable Total | 1,521,000,000 | |
Non-Consumer Segment [Member] | Dealer Loan | Group I [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 503,000,000 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 129,000,000 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 110,000,000 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 188,000,000 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 70,000,000 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 248,000,000 | |
Financing Receivable Total | 1,248,000,000 | |
Non-Consumer Segment [Member] | Dealer Loan | Group II [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 38,000,000 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 20,000,000 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 11,000,000 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 35,000,000 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 3,000,000 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 87,000,000 | |
Financing Receivable Total | 194,000,000 | |
Non-Consumer Segment [Member] | Dealer Loan | Group III [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 9,000,000 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 3,000,000 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 19,000,000 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 3,000,000 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 35,000,000 | |
Financing Receivable Total | 69,000,000 | |
Non-Consumer Segment [Member] | Dealer Loan | Group IV [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 2,000,000 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 2,000,000 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | 6,000,000 | |
Financing Receivable Total | 10,000,000 | |
Non-Consumer Segment [Member] | Non-Consumer Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | $ 26,517,000,000 |
Finance Leases (Details)
Finance Leases (Details) $ in Millions | Dec. 31, 2020USD ($) |
Receivables [Abstract] | |
Sales-type and Direct Financing Leases, Lease Receivable, Undiscounted Excess Amount | $ 251 |
Sales-type and Direct Financing Leases, Lease Receivable | 5,436 |
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year One | 1,978 |
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Two | 1,751 |
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Three | 1,348 |
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Four | 555 |
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Five | 55 |
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received | 5,687 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | $ 10 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Finance receivables, net | $ 105,070 | $ 114,317 | |
Financing Receivable, Allowance for Credit Loss | 1,305 | 513 | $ 589 |
Charge-offs | (470) | (549) | |
Recoveries | 169 | 178 | |
Provision for credit losses | 828 | 296 | |
Other | 13 | (1) | |
Financing Receivable, Gross | 106,375 | 114,830 | |
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 792 | ||
Translation [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing Receivable, Allowance for Credit Loss | 252 | ||
Consumer Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing Receivable, Allowance for Credit Loss | 1,245 | 496 | 566 |
Charge-offs | (441) | (527) | |
Recoveries | 161 | 168 | |
Provision for credit losses | 771 | 291 | |
Other | 11 | (2) | |
Financing Receivable, Gross | 78,170 | ||
Non-Consumer Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing Receivable, Allowance for Credit Loss | 60 | 17 | $ 23 |
Charge-offs | (29) | (22) | |
Recoveries | 8 | 10 | |
Provision for credit losses | 57 | 5 | |
Other | 2 | 1 | |
Financing Receivable, Gross | 28,205 | 40,855 | |
Accounting Standards Update 2016-13 [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Finance receivables, net | 252 | 0 | |
Accounting Standards Update 2016-13 [Member] | Consumer Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Finance receivables, net | 247 | 0 | |
Accounting Standards Update 2016-13 [Member] | Non-Consumer Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Finance receivables, net | $ 5 | $ 0 |
Net Investments in Operating _2
Net Investments in Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Vehicles, at cost | $ 32,495 | $ 33,431 | |
Accumulated depreciation | (5,840) | (5,772) | |
Net investment in operating leases before allowance for credit losses | 26,655 | 27,659 | |
Net investment in operating leases | 26,655 | 27,659 | |
Operating Leases, Future Minimum Payments Receivable | $ 7,880 | ||
Length of lease contract | 60 months | ||
Maximum payment extension | six months | ||
Total payment extension | twelve months | ||
Lessor, Operating Lease, Payments to be Received, Next Rolling Twelve Months | $ 4,370 | ||
Lessor, Operating Lease, Payment to be Received, Year Two | 2,530 | ||
Lessor, Operating Lease, Payment to be Received, Year Three | 878 | ||
Lessor, Operating Lease, Payment to be Received, Year Four | 98 | ||
Lessor, Operating Lease, Payment to be Received, Year Five | 4 | ||
Affiliated Entity [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Related Party Transaction, Deferred Interest Supplements and Residual Support Payments on Net Investment in Operating Leases | 2,500 | 3,100 | |
Related Party Transaction, Earned Interest Supplements and Residual Support Costs, Net Investment in Operating Lease | 2,300 | 2,600 | $ 2,400 |
Related Party Transactions, Cash Received and Interest Supplements, Net Investment in Operating Lease | $ 1,700 | $ 2,500 | $ 2,800 |
Transfers of Receivables - Asse
Transfers of Receivables - Assets and Liabilities of Securitizations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Securitization Transactions [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | $ 14,349 | $ 9,067 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 131,725 | 141,976 | $ 146,263 |
Debt | 137,677 | 140,029 | |
Cash Contribution Collateral to Support Wholesale Securitization Program | 0 | ||
Required pool balance | 14,100 | 18,400 | |
Adjusted Pool Balance | 2,300 | 8,400 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | 2,822 | 3,202 | |
Debt | 46,770 | 50,865 | |
Cash Collateral to Support Wholesale Transactions | 25 | 0 | |
Variable Interest Entity, Primary Beneficiary [Member] | Maximum [Member] | |||
Securitization Transactions [Line Items] | |||
Cash Contribution Collateral to Support Wholesale Securitization Program | 524 | ||
Variable Interest Entity, Primary Beneficiary [Member] | Minimum [Member] | |||
Securitization Transactions [Line Items] | |||
Cash Contribution Collateral to Support Wholesale Securitization Program | 0 | ||
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | 2,800 | 3,200 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 64,700 | 73,600 | |
Financing and Loans and Leases Receivable Allowance | 400 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 64,300 | 73,400 | |
Debt | 46,800 | 50,900 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Retail [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | 2,000 | 1,800 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 35,800 | 32,600 | |
Financing and Loans and Leases Receivable Allowance | 400 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 35,400 | 32,400 | |
Debt | 28,400 | 28,000 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Wholesale [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | 200 | 900 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 16,100 | 26,100 | |
Financing and Loans and Leases Receivable Allowance | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 16,100 | 26,100 | |
Debt | 10,700 | 13,400 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | 2,200 | 2,700 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 51,900 | 58,700 | |
Financing and Loans and Leases Receivable Allowance | 400 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 51,500 | 58,500 | |
Debt | 39,100 | 41,400 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | 600 | 500 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 12,800 | 14,900 | |
Financing and Loans and Leases Receivable Allowance | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 12,800 | 14,900 | |
Debt | 7,700 | 9,500 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | 400 | 300 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 8,200 | 6,400 | |
Financing and Loans and Leases Receivable Allowance | 100 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 8,100 | 6,400 | |
Debt | 7,800 | 5,700 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Retail [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | 400 | 300 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 7,900 | 5,700 | |
Financing and Loans and Leases Receivable Allowance | 100 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 7,800 | 5,700 | |
Debt | 7,600 | 5,100 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Wholesale [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | 0 | 0 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 300 | 700 | |
Financing and Loans and Leases Receivable Allowance | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 300 | 700 | |
Debt | 200 | 600 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | 400 | 300 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 8,200 | 6,400 | |
Financing and Loans and Leases Receivable Allowance | 100 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 8,100 | 6,400 | |
Debt | 7,800 | 5,700 | |
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, at Carrying Value | 0 | 0 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 0 | 0 | |
Financing and Loans and Leases Receivable Allowance | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 0 | 0 | |
Debt | 0 | 0 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | 3,200 | 3,500 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 72,900 | 80,000 | |
Financing and Loans and Leases Receivable Allowance | 500 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 72,400 | 79,800 | |
Debt | 54,600 | 56,600 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Wholesale [Member] | |||
Securitization Transactions [Line Items] | |||
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 16,400 | 26,800 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Retail [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | 2,400 | 2,100 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 43,700 | 38,300 | |
Financing and Loans and Leases Receivable Allowance | 500 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 43,200 | 38,100 | |
Debt | 36,000 | 33,100 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Wholesale [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | 200 | 900 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 16,400 | 26,800 | |
Financing and Loans and Leases Receivable Allowance | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 16,400 | 26,800 | |
Debt | 10,900 | 14,000 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | 2,600 | 3,000 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 60,100 | 65,100 | |
Financing and Loans and Leases Receivable Allowance | 500 | 200 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 59,600 | 64,900 | |
Debt | 46,900 | 47,100 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value | 600 | 500 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 12,800 | 14,900 | |
Financing and Loans and Leases Receivable Allowance | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 12,800 | 14,900 | |
Debt | $ 7,700 | $ 9,500 |
Transfers of Receivables - Expo
Transfers of Receivables - Exposure Based on Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Securitization Transactions [Line Items] | ||
Fair Value of Derivative Assets | $ 2,601 | $ 1,128 |
Fair Value of Derivative Liabilities | 524 | 356 |
Securitization Transactions [Member] | ||
Securitization Transactions [Line Items] | ||
Fair Value of Derivative Assets | 5 | 23 |
Fair Value of Derivative Liabilities | 135 | 54 |
Related to Variable Interest Entity - Not VIE [Member] | Securitization Transactions [Member] | ||
Securitization Transactions [Line Items] | ||
Fair Value of Derivative Assets | 5 | 7 |
Fair Value of Derivative Liabilities | 0 | 5 |
Other, Not Variable Interest Entity Related [Member] | Securitization Transactions [Member] | ||
Securitization Transactions [Line Items] | ||
Fair Value of Derivative Assets | 0 | 4 |
Fair Value of Derivative Liabilities | 79 | 30 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Securitization Transactions [Line Items] | ||
Fair Value of Derivative Assets | 0 | 12 |
Fair Value of Derivative Liabilities | 56 | 19 |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | ||
Securitization Transactions [Line Items] | ||
Fair Value of Derivative Assets | 0 | 12 |
Fair Value of Derivative Liabilities | $ 56 | $ 19 |
Transfers of Receivables - Deri
Transfers of Receivables - Derivative Income and Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative expense/(income) related to securitization transactions [Abstract] | |||
Derivative expense/(income) | $ (594) | $ 194 | $ 157 |
Securitization Transactions [Member] | |||
Derivative expense/(income) related to securitization transactions [Abstract] | |||
Derivative expense/(income) | 234 | 75 | 17 |
Securitization Transactions [Member] | Related to Variable Interest Entity - Not VIE [Member] | |||
Derivative expense/(income) related to securitization transactions [Abstract] | |||
Derivative expense/(income) | (9) | (5) | (11) |
Securitization Transactions [Member] | Other, Not Variable Interest Entity Related [Member] | |||
Derivative expense/(income) related to securitization transactions [Abstract] | |||
Derivative expense/(income) | 113 | 39 | (2) |
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Derivative expense/(income) related to securitization transactions [Abstract] | |||
Derivative expense/(income) | $ 130 | $ 41 | $ 30 |
Transfers of Receivables - Inte
Transfers of Receivables - Interest Expense on Securitization Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Securitization Transactions [Line Items] | |||||||||||
Interest expense | $ 787 | $ 792 | $ 839 | $ 984 | $ 1,073 | $ 1,081 | $ 1,114 | $ 1,121 | $ 3,402 | $ 4,389 | $ 3,930 |
Securitization Transactions [Member] | |||||||||||
Securitization Transactions [Line Items] | |||||||||||
Interest expense | 1,202 | 1,574 | 1,397 | ||||||||
Securitization Transactions [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | |||||||||||
Securitization Transactions [Line Items] | |||||||||||
Interest expense | 152 | 201 | 177 | ||||||||
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||||||||||
Securitization Transactions [Line Items] | |||||||||||
Interest expense | $ 1,050 | $ 1,373 | $ 1,220 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Gain (Loss) on Derivative, Net | $ 594 | $ (194) | $ (157) |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 2,601 | 1,128 | |
Fair Value of Derivative Liabilities | 524 | 356 | |
Derivative, Collateral, Obligation to Return Cash | 9 | 18 | |
Derivative, Collateral, Right to Reclaim Cash | 96 | 78 | |
Derivative Asset, Not Offset, Policy Election Deduction | 204 | 169 | |
Derivative, Notional Amount | 109,354 | 106,880 | |
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Income Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Gain (Loss) on Derivative, Net | (100) | (13) | (84) |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Notional Amount | 70,318 | 68,914 | |
Interest Rate Contract [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | |||
Income Effect of Derivative Financial Instruments [Abstract] | |||
Net interest settlements and accruals excluded from the assessment of hedge effectiveness | 290 | (16) | 10 |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 986 | 706 | (155) |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (985) | (694) | 153 |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Notional Amount | 26,924 | 26,577 | |
Interest Rate Contract [Member] | Currency Swap [Member] | Designated as Hedging Instrument [Member] | |||
Income Effect of Derivative Financial Instruments [Abstract] | |||
Net interest settlements and accruals excluded from the assessment of hedge effectiveness | (2) | 0 | 0 |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 38 | 0 | 0 |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (37) | 0 | 0 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Income Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Gain (Loss) on Derivative, Net | (82) | 52 | 163 |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Notional Amount | 4,378 | 5,540 | |
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 | 486 | (229) | $ (244) |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Notional Amount | 6,849 | 5,849 | |
Cross Currency Interest Rate Contract [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | |||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Notional Amount | 885 | 0 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 663 | 275 | |
Fair Value of Derivative Liabilities | 439 | 191 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | |||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 1,331 | 702 | |
Fair Value of Derivative Liabilities | 4 | 19 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 4 | 17 | |
Fair Value of Derivative Liabilities | 80 | 79 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 557 | 134 | |
Fair Value of Derivative Liabilities | 1 | 67 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Cross Currency Interest Rate Contract [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | |||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 46 | 0 | |
Fair Value of Derivative Liabilities | $ 0 | $ 0 |
Other Assets and Other Liabil_3
Other Assets and Other Liabilities and Deferred Income (Details) - USD ($) | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Other Assets [Abstract] | |||
Accrued interest and other non-finance receivables | $ 1,726,000,000 | $ 898,000,000 | |
Collateral held for resale, at net realizable value, and other inventory | 675,000,000 | 843,000,000 | |
Prepaid reinsurance premiums and other reinsurance recoverables | 708,000,000 | 687,000,000 | |
Deferred charges - income taxes | 165,000,000 | 171,000,000 | |
Property and equipment, net of accumulated depreciation | 219,000,000 | 212,000,000 | |
Restricted cash | 647,000,000 | 139,000,000 | |
Investment in non-consolidated affiliates | 132,000,000 | 132,000,000 | |
Operating Lease, Right-of-Use Asset | 98,000,000 | 108,000,000 | |
Other | 223,000,000 | 208,000,000 | |
Total other assets | 4,593,000,000 | $ 3,390,000,000 | 3,398,000,000 |
Accumulated depreciation | 365,000,000 | 393,000,000 | |
Other Liabilities and Deferred Income [Abstract] | |||
Unearned insurance premiums and fees | 822,000,000 | 806,000,000 | |
Interest payable | 857,000,000 | 888,000,000 | |
Taxes Payable | 147,000,000 | 433,000,000 | |
Deferred revenue | 87,000,000 | 110,000,000 | |
Other | 293,000,000 | 286,000,000 | |
Other liabilities and deferred income | 2,306,000,000 | 2,633,000,000 | |
Related Party Transactions Income Taxes and Related Interest Payable | $ 16,000,000 | $ 294,000,000 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities | |
Other Liabilities | |||
Other Liabilities and Deferred Income [Abstract] | |||
Operating Lease, Liability | $ 100,000,000 | $ 110,000,000 | |
Accounting Standards Update 2016-13 [Member] | |||
Other Assets [Abstract] | |||
Investment in non-consolidated affiliates | 8,000,000 | ||
Total other assets | $ (8,000,000) | ||
Parent [Member] | |||
Other Liabilities and Deferred Income [Abstract] | |||
Income Taxes Receivable | $ 867 | $ 0 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Total short-term debt | $ 11,429 | $ 13,717 | |
Notes payable after one year | 86,473 | 87,310 | |
Unamortized discount | 30 | 7 | |
Unamortized debt issuance costs | (252) | (214) | |
Fair value adjustments | 1,467 | 538 | |
Total long-term debt | 126,248 | 126,312 | |
Total debt | 137,677 | 140,029 | |
Debt Carrying Value Fair Value | $ 45,500 | $ 39,400 | |
Average Contractual (interest rate) | 2.60% | 2.90% | |
Average Effective (interest rate) | 2.60% | 3.00% | |
Fair value of short-term debt | $ 10,400 | $ 12,800 | |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 3,400 | 4,100 | $ 3,500 |
Discontinued Hedged Debt | 299 | 7 | |
Fixed Interest Rate [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable after one year | 71,515 | 67,090 | |
Variable Interest Rate [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable after one year | 14,958 | 20,220 | |
Floating Rate Demand Notes [Member] | |||
Debt Instrument [Line Items] | |||
Total short-term debt | 6,458 | 6,545 | |
Unsecured commercial paper [Member] | |||
Debt Instrument [Line Items] | |||
Total short-term debt | 163 | 3,560 | |
Other short-term debt [Member] | |||
Debt Instrument [Line Items] | |||
Total short-term debt | 3,777 | 2,731 | |
Asset-backed Securities [Member] | |||
Debt Instrument [Line Items] | |||
Total short-term debt | 1,031 | 881 | |
Notes payable within one year | 21,345 | 23,609 | |
Notes payable after one year | 32,276 | $ 32,162 | |
Total debt | $ 54,652 | ||
Total short-term debt [Member] | |||
Debt Instrument [Line Items] | |||
Average Contractual (interest rate) | 1.50% | 2.80% | |
Average Effective (interest rate) | 1.60% | 2.80% | |
Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable within one year | $ 17,185 | $ 15,062 | |
Notes payable after one year | 54,197 | $ 55,148 | |
Total debt | $ 81,780 | ||
Total long-term debt [Member] | |||
Debt Instrument [Line Items] | |||
Average Contractual (interest rate) | 2.70% | 3.00% | |
Average Effective (interest rate) | 2.70% | 3.00% | |
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member] | |||
Debt Instrument [Line Items] | |||
Fair value of debt | $ 139,796 | $ 141,678 |
Debt Maturities (Details)
Debt Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Maturities [Abstract] | ||
2019 | $ 49,959 | |
2020 | 28,402 | |
2021 | 18,685 | |
2022 | 13,471 | |
2023 | 15,276 | |
Thereafter | 10,639 | |
DebtAndCapitalLeaseObligationTotal | 136,432 | |
Total debt | 137,677 | $ 140,029 |
Total unamortized discount | 30 | 7 |
Unamortized debt issuance costs | (252) | (214) |
Total fair value adjustments | 1,467 | $ 538 |
Unsecured Debt [Member] | ||
Debt Maturities [Abstract] | ||
2019 | 27,583 | |
2020 | 13,983 | |
2021 | 10,835 | |
2022 | 10,323 | |
2023 | 9,117 | |
Thereafter | 9,939 | |
Total debt | 81,780 | |
Asset-backed Securities [Member] | ||
Debt Maturities [Abstract] | ||
2019 | 22,376 | |
2020 | 14,419 | |
2021 | 7,850 | |
2022 | 3,148 | |
2023 | 6,159 | |
Thereafter | 700 | |
Total debt | 54,652 | |
Short-term debt [Member] | ||
Debt Maturities [Abstract] | ||
2019 | 11,429 | |
Long-term debt [Member] | ||
Debt Maturities [Abstract] | ||
2019 | $ 38,530 |
Debt - Credit Facilties and Com
Debt - Credit Facilties and Committed Liquidity Programs (Details) € in Millions, £ in Millions, $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020GBP (£) | Dec. 31, 2019USD ($) |
Schedule Of Debt [Line Items] | ||||
ABS Liquidity | $ 128 | € 104 | ||
Discontinued Hedged Debt | 299 | $ 7 | ||
FCE Bank plc [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Debt Covenant Minimum Net Worth Requirement | 500 | |||
Unsecured Debt [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,500 | |||
Borrowing availability | 2,000 | |||
Syndicated Credit Facility [Member] | FCE Bank plc [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,066 | £ 780 | ||
Borrowing availability | £ | 780 | |||
Syndicated Credit Facility [Member] | FCE Bank plc [Member] | 2022 [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Borrowing availability | £ | £ 95 | |||
Syndicated Credit Facility [Member] | Ford Bank [Member] [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 294 | 240 | ||
Borrowing availability | € | € 240 | |||
Contractually Committed Liquidity Facilities [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Commitment To Sell Commercial Paper Conduits Maximum | 38,100 | |||
Commitment To Sell Commercial Paper Conduits Current | 16,800 | |||
Commitment To Sell Commercial Paper Conduits Utilized | 16,700 | |||
Operating Lease [Member] | Contractually Committed Liquidity Facilities [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Commitment To Sell Commercial Paper Conduits Maximum | 11,100 | |||
Retail [Member] | Contractually Committed Liquidity Facilities [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Commitment To Sell Commercial Paper Conduits Maximum | 22,200 | |||
Wholesale [Member] | Contractually Committed Liquidity Facilities [Member] | ||||
Schedule Of Debt [Line Items] | ||||
Commitment To Sell Commercial Paper Conduits Maximum | $ 4,800 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current [Abstract] | |||
Federal | $ 53 | $ 396 | $ 72 |
Non-United States | 98 | 168 | 153 |
State and local | 154 | 169 | (81) |
Total current | 305 | 733 | 144 |
Deferred [Abstract] | |||
Federal | 372 | (12) | 283 |
Non-United States | 61 | 104 | (125) |
State and local | (54) | (55) | 101 |
Total deferred | 379 | 37 | 259 |
Provision for income taxes | $ 684 | $ 770 | $ 403 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
United States statutory tax rate | 21.00% | 21.00% | 21.00% |
Non-U.S. tax rates under U.S. rate | 1.10% | 1.30% | 1.70% |
State and local income taxes | 3.00% | 2.70% | 0.60% |
Effective Income Tax Rate Reconciliation, Disposition of Business, Percent | 0.00% | (8.90%) | |
Effective Income Tax Rate Reconciliation Foreign Operations Taxed in United States | 0.70% | (0.10%) | 0.40% |
Other | 0.40% | 0.80% | 0.50% |
Effective tax rate | 26.20% | 25.70% | 15.30% |
Undistributed Foreign Earnings, Deferred Taxes Not Provided | $ 3,900 | ||
Deferred tax assets [Abstract] | |||
Net operating loss carryforwards | 281 | $ 378 | |
Provision for credit losses | 318 | 141 | |
Other foreign | 217 | 190 | |
Employee benefit plans | 25 | 24 | |
Foreign tax credits | 682 | 669 | |
Other | 57 | 46 | |
Total gross deferred tax assets | 1,580 | 1,448 | |
Less: valuation allowance | (65) | (43) | |
Total net deferred tax assets | 1,515 | 1,405 | |
Deferred tax liabilities [Abstract] | |||
Leasing transactions | 3,265 | 2,674 | |
Finance receivables | 574 | 584 | |
Other foreign | 418 | 568 | |
Other | 0 | 1 | |
Total deferred tax liabilities | 4,257 | 3,827 | |
Net deferred tax liability | 2,742 | 2,422 | |
Amount of valuation allowance released | 65 | ||
Operating Loss Carryforwards | 851 | ||
Net operating loss carryforwards | 281 | 378 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at January 1 | 109 | 115 | |
Increase - tax positions in prior years | 5 | 40 | |
Increases - tax positions in current year | 2 | 0 | |
Decrease - tax positions in prior years | (8) | (8) | |
Settlements | 0 | (36) | |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 0 | 0 | |
Unrecognized Tax Benefits, Increase Resulting from Foreign Currency Translation | 1 | ||
Balance at December 31 | 109 | 109 | $ 115 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 105 | 106 | |
Unrecognized Tax Benefits Interest Income | 3 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 6 | 8 | |
Income Taxes Paid | 1,454 | 524 | 188 |
Unrecognized Tax Benefits, Decrease Resulting from Foreign Currency Translation | 2 | ||
Unrecognized Tax Benefits Interest Expense | 3 | 7 | |
Income Tax Contingency [Line Items] | |||
Income before income taxes | 2,608 | 2,998 | 2,627 |
Non U.S. [member] | |||
Income Tax Contingency [Line Items] | |||
Income before income taxes | 523 | 838 | 910 |
United States [member] | |||
Income Tax Contingency [Line Items] | |||
Income before income taxes | $ 2,085 | $ 2,160 | $ 1,717 |
Insurance (Details)
Insurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory Accounting Practices [Line Items] | |||
Cash and cash equivalents | $ 22 | $ 9 | |
Marketable securities | 703 | 697 | |
Total cash, cash equivalents, and marketable securities | 725 | 706 | |
Assets Held by Insurance Regulators | 12 | 12 | |
Prepaid reinsurance premiums and other reinsurance recoverables | 708 | 687 | |
Related party transaction, prepaid reinsurance premiums and other reinsurance recoverables | 97 | 97 | |
Earned insurance premiums | 213 | 207 | $ 176 |
Insurance loss and loss adjustment expenses | 88 | 84 | 71 |
Unearned insurance premiums and fees | 822 | 806 | |
Related Party Transactions Unearned Premiums and Fees | 711 | 696 | |
Premiums Written and Earned [Abstract] | |||
Direct premiums written | 366 | 406 | 392 |
Assumed premiums written | 0 | 0 | 0 |
Ceded premiums written | (229) | (223) | (225) |
Net premiums written | 137 | 183 | 167 |
Direct premiums earned | 350 | 377 | 346 |
Assumed premiums earned | 0 | 0 | 0 |
Ceded premiums earned | (207) | (195) | (179) |
Premiums Earned, Net | 143 | 182 | 167 |
Insurance Expenses [Abstract] | |||
Insurance losses | 110 | 128 | 101 |
Loss adjustment expenses | 5 | 7 | 5 |
Reinsurance Income and Other Expenses, Net | (33) | (32) | (29) |
Insurance expenses | 82 | 103 | 77 |
Liability for reported insurance claims and estimate of unreported claims | 12 | ||
Ceded insurance expenses | $ 130 | $ 127 | $ 114 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Component of Other Income, Nonoperating [Line Items] | |||
Gains/(Losses) on derivatives | $ 341 | $ (190) | $ (165) |
Currency revaluation gains/(losses) | (437) | 70 | 12 |
Interest and investment income | 119 | 318 | 198 |
Other | 0 | 16 | 35 |
Total other income, net | 23 | 214 | 80 |
Affiliated Entity [Member] | |||
Component of Other Income, Nonoperating [Line Items] | |||
Related Party Transaction, Interest Income, Notes Receivable, Tax Sharing Agreement | $ 13 | $ 5 | $ 10 |
Retirement Benefits (Details)
Retirement Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Allocated Service Cost | $ 59 | $ 47 | $ 55 |
Defined Contribution Plan, Cost | 8 | 8 | 7 |
Other Postretirement Benefits Cost (Reversal of Cost) | $ 3 | $ 3 | $ 4 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 2,782 | $ 2,855 | $ 2,793 | $ 3,032 | $ 3,114 | $ 3,127 | $ 3,188 | $ 3,194 | $ 11,462 | $ 12,623 | $ 12,382 |
Income before income taxes | 2,608 | 2,998 | 2,627 | ||||||||
Other disclosures [Abstract] | |||||||||||
Depreciation on vehicles subject to operating leases | (656) | (537) | (990) | (1,052) | (923) | (894) | (894) | (924) | (3,235) | (3,635) | (3,973) |
Interest expense | 787 | 792 | 839 | 984 | 1,073 | 1,081 | 1,114 | 1,121 | 3,402 | 4,389 | 3,930 |
Provision for credit losses | 63 | $ 86 | $ 93 | $ 586 | 107 | $ 93 | $ 63 | $ 33 | 828 | 296 | 426 |
Net finance receivables and net investment in operating leases | 131,725 | 141,976 | 131,725 | 141,976 | 146,263 | ||||||
Total assets | 159,017 | 161,426 | 159,017 | 161,426 | 162,209 | ||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 11,462 | 12,623 | 12,382 | ||||||||
Income before income taxes | 2,475 | 2,860 | 2,701 | ||||||||
Other disclosures [Abstract] | |||||||||||
Depreciation on vehicles subject to operating leases | (3,235) | (3,635) | (3,973) | ||||||||
Interest expense | 3,462 | 4,371 | 3,936 | ||||||||
Provision for credit losses | 828 | 296 | 426 | ||||||||
Net finance receivables and net investment in operating leases | 140,503 | 150,190 | 140,503 | 150,190 | 154,876 | ||||||
Total assets | 159,017 | 161,426 | 159,017 | 161,426 | 162,209 | ||||||
Operating Segments [Member] | Americas [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 10,020 | 10,795 | 10,358 | ||||||||
Income before income taxes | 2,241 | 2,365 | 2,132 | ||||||||
Other disclosures [Abstract] | |||||||||||
Depreciation on vehicles subject to operating leases | (3,237) | (3,592) | (3,934) | ||||||||
Interest expense | 2,892 | 3,685 | 3,183 | ||||||||
Provision for credit losses | 716 | 260 | 361 | ||||||||
Net finance receivables and net investment in operating leases | 112,208 | 119,498 | 112,208 | 119,498 | 121,712 | ||||||
Total assets | 125,962 | 125,647 | 125,962 | 125,647 | 126,354 | ||||||
Operating Segments [Member] | Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 1,012 | 1,183 | 1,160 | ||||||||
Income before income taxes | 196 | 352 | 382 | ||||||||
Other disclosures [Abstract] | |||||||||||
Depreciation on vehicles subject to operating leases | (2) | (43) | (39) | ||||||||
Interest expense | 347 | 340 | 283 | ||||||||
Provision for credit losses | 63 | 25 | 20 | ||||||||
Net finance receivables and net investment in operating leases | 23,517 | 25,630 | 23,517 | 25,630 | 26,028 | ||||||
Total assets | 27,620 | 30,050 | 27,620 | 30,050 | 27,804 | ||||||
Operating Segments [Member] | Asia Pacific [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 430 | 645 | 864 | ||||||||
Income before income taxes | 38 | 143 | 187 | ||||||||
Other disclosures [Abstract] | |||||||||||
Depreciation on vehicles subject to operating leases | 0 | 0 | 0 | ||||||||
Interest expense | 223 | 346 | 470 | ||||||||
Provision for credit losses | 49 | 11 | 45 | ||||||||
Net finance receivables and net investment in operating leases | 4,778 | 5,062 | 4,778 | 5,062 | 7,136 | ||||||
Total assets | 5,435 | 5,729 | 5,435 | 5,729 | 8,051 | ||||||
Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Income before income taxes | 133 | 138 | (74) | ||||||||
Other disclosures [Abstract] | |||||||||||
Depreciation on vehicles subject to operating leases | 0 | 0 | 0 | ||||||||
Interest expense | (60) | 18 | (6) | ||||||||
Provision for credit losses | 0 | 0 | 0 | ||||||||
Net finance receivables and net investment in operating leases | (8,778) | (8,214) | (8,778) | (8,214) | (8,613) | ||||||
Total assets | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 2,782 | $ 2,855 | $ 2,793 | $ 3,032 | $ 3,114 | $ 3,127 | $ 3,188 | $ 3,194 | $ 11,462 | $ 12,623 | $ 12,382 |
Net property and net investment in operating leases | 26,874 | 27,871 | 26,874 | 27,871 | 27,641 | ||||||
United States [member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 8,780 | 9,472 | 9,043 | ||||||||
Net property and net investment in operating leases | 22,891 | 24,123 | 22,891 | 24,123 | 24,057 | ||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 1,240 | 1,323 | 1,315 | ||||||||
Net property and net investment in operating leases | 3,588 | 3,328 | 3,588 | 3,328 | 3,155 | ||||||
All Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 1,442 | 1,828 | 2,024 | ||||||||
Net property and net investment in operating leases | $ 395 | $ 420 | $ 395 | $ 420 | $ 429 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 2,782 | $ 2,855 | $ 2,793 | $ 3,032 | $ 3,114 | $ 3,127 | $ 3,188 | $ 3,194 | $ 11,462 | $ 12,623 | $ 12,382 |
Depreciation on vehicles subject to operating leases | (656) | (537) | (990) | (1,052) | (923) | (894) | (894) | (924) | (3,235) | (3,635) | (3,973) |
Interest expense | (787) | (792) | (839) | (984) | (1,073) | (1,081) | (1,114) | (1,121) | (3,402) | (4,389) | (3,930) |
Total financing margin and other revenue | 1,339 | 1,526 | 964 | 996 | 1,118 | 1,152 | 1,180 | 1,149 | 4,825 | 4,599 | 4,479 |
Provision for credit losses | 63 | 86 | 93 | 586 | 107 | 93 | 63 | 33 | 828 | 296 | 426 |
Net income | $ 637 | $ 859 | $ 407 | 21 | $ 441 | $ 571 | $ 613 | $ 603 | $ 1,924 | $ 2,228 | $ 2,224 |
Provision for Other Credit Losses | $ 486 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020EUR (€) | |
Guarantor Obligations [Line Items] | ||||
Operating Lease, Expense | $ 25 | $ 21 | $ 28 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 12 | 42 | ||
Guarantor Obligations, Current Carrying Value | 0 | $ 0 | ||
Loss Contingency, Estimate of Possible Loss | 51 | € 42 | ||
Lessee, Operating Lease, Liability, to be Paid, Year One | 22 | |||
Lessee, Operating Lease, Liability, to be Paid, Year Two | 18 | |||
Lessee, Operating Lease, Liability, to be Paid, Year Three | 18 | |||
Lessee, Operating Lease, Liability, to be Paid, Year Four | 17 | |||
Lessee, Operating Lease, Liability, to be Paid, Year Five | 15 | |||
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 20 | |||
Lessee, operating lease, liability to be paid | 110 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | $ 10 | |||
Operating Lease, Weighted Average Discount Rate, Percent | 3.30% | 3.10% | 3.30% | |
Operating Lease, Weighted Average Remaining Lease Term | 6 years | 7 years | 6 years | |
Operating Lease Liability [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Operating Lease, Liability | $ 100 | |||
Financial Guarantee [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Maximum potential payments | 153 | $ 53 | ||
Counter Guarantee [Member] | Ford Motor Company [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Counter guarantee | $ 62 | $ 48 |