Document and Entity Information
Document and Entity Information Document | 3 Months Ended |
Mar. 31, 2021shares | |
Document Transition Report | false |
Entity Incorporation, State or Country Code | DE |
Document Quarterly Report | true |
Entity Registrant Name | Ford Motor Credit Co LLC |
Entity Central Index Key | 0000038009 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Document Type | 10-Q |
Entity File Number | 1-6368 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 0 |
Entity Small Business | false |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
Membership Interests Description | All of the limited liability company interests in the registrant (“Shares”) are held by an affiliate of the registrant. None of the Shares are publicly traded. |
Local Phone Number | (313) |
Entity Tax Identification Number | 38-1612444 |
Entity Address, Address Line One | One American Road |
Entity Address, City or Town | Dearborn, |
Entity Address, State or Province | MI |
Entity Address, Postal Zip Code | 48126 |
Local Phone Number | 322-3000 |
Entity Interactive Data Current | Yes |
Entity Shell Company | false |
Document Period End Date | Mar. 31, 2021 |
F/23E [Member] | |
Trading Symbol | F/23E |
Security Exchange Name | NYSE |
Title of 12(b) Security | 0.623% Notes due June 28, 2023* |
F/25i [Member] | |
Trading Symbol | F/25I |
Security Exchange Name | NYSE |
Title of 12(b) Security | 1.355% Notes due February 7, 2025* |
F/24O [Member] | |
Trading Symbol | F/24O |
Security Exchange Name | NYSE |
Title of 12(b) Security | 4.125% Notes due on June 20, 2024* |
F/24M [Member] | |
Trading Symbol | F/24M |
Security Exchange Name | NYSE |
Title of 12(b) Security | 3.021% Notes due March 6, 2024* |
F/25K [Member] | |
Trading Symbol | F/25K |
Security Exchange Name | NYSE |
Title of 12(b) Security | 4.535% Notes due March 6, 2025* |
F/26N [Member] | |
Trading Symbol | F/26N |
Security Exchange Name | NYSE |
Title of 12(b) Security | 3.350% Notes due Nine Months or More from the Date of Issue due August 20, 2026 |
F/23G [Member] | |
Trading Symbol | F/23G |
Security Exchange Name | NYSE |
Title of 12(b) Security | 1.514% Notes due February 17, 2023* |
F/26AB [Member] | |
Trading Symbol | F/26AB |
Security Exchange Name | NYSE |
Title of 12(b) Security | 2.386% Notes due February 17, 2026* |
F/24R [Member] | |
Trading Symbol | F/24R |
Security Exchange Name | NYSE |
Title of 12(b) Security | 1.744% Notes due July 19, 2024* |
F/25L [Member] | |
Trading Symbol | F/25L |
Security Exchange Name | NYSE |
Title of 12(b) Security | 2.330% Notes due on November 25, 2025* |
F/24Q [Member] | |
Trading Symbol | F/24Q |
Security Exchange Name | NYSE |
Title of 12(b) Security | 3.683% Notes due on December 3, 2024* |
F/25M | |
Trading Symbol | F/25M |
Security Exchange Name | NYSE |
Title of 12(b) Security | 3.250% Notes due September 15, 2025* |
F/24S | |
Trading Symbol | F/24S |
Security Exchange Name | NYSE |
Title of 12(b) Security | 2.748% Notes due on June 14, 2024* |
F/21C [Member] | |
Trading Symbol | F/21C |
Security Exchange Name | NYSE |
Title of 12(b) Security | Floating Rate Notes due May 14, 2021* |
F/24L [Member] | |
Trading Symbol | F/24L |
Security Exchange Name | NYSE |
Title of 12(b) Security | Floating Rate Notes due December 1, 2024* |
F/21AQ [Member] | |
Trading Symbol | F/21AQ |
Security Exchange Name | NYSE |
Title of 12(b) Security | Floating Rate Notes due December 1, 2021* |
F/22T [Member] | |
Trading Symbol | F/22T |
Security Exchange Name | NYSE |
Title of 12(b) Security | Floating Rate Notes due December 7, 2022* |
F/23D [Member] | |
Trading Symbol | F/23D |
Security Exchange Name | NYSE |
Title of 12(b) Security | Floating Rate Notes due November 15, 2023* |
Consolidated Income Statement
Consolidated Income Statement - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Financing revenue | ||
Operating leases | $ 1,380 | $ 1,459 |
Retail financing | 990 | 976 |
Dealer financing | 286 | 485 |
Other | 14 | 22 |
Revenue from Contract with Customer, Excluding Assessed Tax | 2,670 | 2,942 |
Depreciation on vehicles subject to operating leases | (568) | (1,052) |
Interest expense | (804) | (984) |
Net financing margin | 1,298 | 906 |
Other revenue | ||
Premiums Earned, Net | 27 | 47 |
Fee based revenue and other | 20 | 43 |
Total financing margin and other revenue | 1,345 | 996 |
Operating expenses | 343 | 362 |
Provision for credit losses | (40) | 586 |
Insurance expenses | 5 | 6 |
Total expenses | 308 | 954 |
Other Income / Loss | (75) | (12) |
Income before income taxes | 962 | 30 |
Provision for income taxes | 117 | 36 |
Net income | $ 845 | $ (6) |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net income | $ 845 | $ (6) |
Other comprehensive income/(loss), net of tax | ||
Foreign currency translation | (101) | (348) |
Comprehensive income / (loss) | $ 744 | $ (354) |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 10,869 | $ 14,349 |
Marketable securities | 3,948 | 4,860 |
Net Investment in Operating Leases | 26,561 | 26,655 |
Finance receivables, net | 100,577 | 105,070 |
Notes and accounts receivable from affiliated companies | 529 | 853 |
Derivative financial instruments | 1,685 | 2,601 |
Disposal Group, Including Discontinued Operation, Assets | 14 | 36 |
Other assets | 3,085 | 3,705 |
Total assets | 147,268 | 158,129 |
Liabilities | ||
Accounts Payable, Trade | 1,136 | 1,087 |
Affiliated companies | 844 | 490 |
Accounts Payable And Due To Affiliated Entities | 1,980 | 1,577 |
Debt | 126,792 | 137,677 |
Deferred income taxes | 524 | 504 |
Derivative financial instruments | 577 | 524 |
Other liabilities and deferred income | 2,084 | 2,280 |
Total liabilities | 131,957 | 142,562 |
SHAREHOLDER’S INTEREST | 5,227 | 5,227 |
Shareholder's interest | ||
Accumulated other comprehensive income | (579) | (478) |
Retained earnings | 10,663 | 10,818 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 15,311 | 15,567 |
Total liabilities and shareholder's interest | 147,268 | 158,129 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
ASSETS | ||
Cash and cash equivalents | 4,794 | 2,822 |
Net Investment in Operating Leases | 10,026 | 12,794 |
Finance receivables, net | 48,902 | 51,472 |
Derivative financial instruments | 2 | 0 |
Liabilities | ||
Debt | 43,387 | 46,770 |
Derivative financial instruments | 30 | 56 |
Retail Installment loans, dealer financing, and other financing [Member] | ||
ASSETS | ||
Finance receivables, net | 92,779 | 97,043 |
Loans and Finance Receivables [Member] | ||
ASSETS | ||
Finance receivables, net | 7,798 | 8,027 |
Property Subject to Operating Lease [Member] | ||
ASSETS | ||
Net Investment in Operating Leases | $ 26,561 | $ 26,655 |
Consolidated Balance Sheet (par
Consolidated Balance Sheet (parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||||
Financing Receivable, Allowance for Credit Loss | $ (1,223) | $ (1,305) | $ (1,231) | $ (513) |
Consolidated Statement of Share
Consolidated Statement of Shareholder's Interest - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Shareholder's Interest [Roll Forward] | ||
Net income | $ 845 | $ (6) |
Other Comprehensive Income (Loss), Net of Tax | (101) | (348) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | 15,567 | 16,389 |
Distributions declared | 1,000 | 343 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 15,311 | 15,450 |
Accounting Standards Update 2019-12, 2016-13 | ||
Shareholder's Interest [Roll Forward] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | (242) | |
Shareholder's Interest [Member] | ||
Shareholder's Interest [Roll Forward] | ||
Balance at beginning of period | 5,227 | 5,227 |
Net income | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 |
Distributions declared | 0 | 0 |
Balance at end of period | 5,227 | 5,227 |
Shareholder's Interest [Member] | Accounting Standards Update 2019-12, 2016-13 | ||
Shareholder's Interest [Roll Forward] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 0 | |
Accumulated Other Comprehensive Income/(Loss) (Note11) [Member] | ||
Shareholder's Interest [Roll Forward] | ||
Balance at beginning of period | (478) | (850) |
Net income | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | (101) | (348) |
Distributions declared | 0 | 0 |
Balance at end of period | (579) | (1,198) |
Accumulated Other Comprehensive Income/(Loss) (Note11) [Member] | Accounting Standards Update 2019-12, 2016-13 | ||
Shareholder's Interest [Roll Forward] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 0 | |
Retained Earnings [Member] | ||
Shareholder's Interest [Roll Forward] | ||
Balance at beginning of period | 10,818 | 12,012 |
Net income | 845 | (6) |
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 |
Distributions declared | 1,000 | 343 |
Balance at end of period | $ 10,663 | 11,421 |
Retained Earnings [Member] | Accounting Standards Update 2016-13 [Member] | ||
Shareholder's Interest [Roll Forward] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | (202) | |
Retained Earnings [Member] | Accounting Standards Update 2019-12 | ||
Shareholder's Interest [Roll Forward] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | (40) | |
Retained Earnings [Member] | Accounting Standards Update 2019-12, 2016-13 | ||
Shareholder's Interest [Roll Forward] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | $ (242) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net Income | $ 845 | $ (6) |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||
Provision for credit losses | (40) | 586 |
Depreciation Depletion and Amortizations | 738 | 1,250 |
Amortization Of Upfront Interest Supplements | (578) | (532) |
Net Change in Finance Receivables Held-for-sale | 0 | (74) |
Net change in deferred income taxes | 13 | 38 |
Net change in other assets | 341 | (322) |
Net change in other liabilities | 229 | (758) |
All other operating activities | 114 | 63 |
Net Cash Provided by (Used in) Operating Activities | 1,662 | 245 |
Cash flows from investing activities | ||
Purchases of finance receivables | (8,467) | (8,222) |
Principal collections of finance receivables | 10,315 | 10,258 |
Purchases of operating lease vehicles | (2,841) | (3,441) |
Proceeds From Liquidations of Operating Lease Vehicles | 2,488 | 2,768 |
Net change in wholesale receivables and other | 2,628 | (881) |
Proceeds from Divestiture of Businesses | 0 | 1,340 |
Purchases of marketable securities | (3,701) | (680) |
Proceeds from sales and maturities of marketable securities | 4,598 | 1,535 |
Settlements of derivatives | 56 | 159 |
All other investing activities | (10) | (22) |
Net Cash Provided by (Used in) Investing Activities | 5,066 | 2,814 |
Cash flows from financing activities | ||
Proceeds from issuances of long-term debt | 4,631 | 11,623 |
Principal payments on long-term debt | (14,814) | (12,652) |
Change in short-term debt, net | 568 | (904) |
Cash distributions to parent | (1,000) | (343) |
All other financing activities | (11) | (21) |
Net Cash Provided by (Used in) Financing Activities | (10,626) | (2,297) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (67) | (252) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at January 1 | 14,996 | 9,268 |
Net increase/(decrease) in cash, cash equivalents, and restricted cash | (3,965) | 510 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at March 31 | $ 11,031 | $ 9,778 |
Presentation
Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Presentation | PRESENTATIONPrinciples of ConsolidationThe consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) for interim financial information, and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited financial statements include all adjustments considered necessary for a fair statement of the results of operations and financial condition for interim periods for Ford Motor Credit Company LLC, its consolidated subsidiaries, and its consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Results for interim periods should not be considered indicative of results for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K Report”). We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation. |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES Adoption of New Accounting Standards ASU 2019-12 - Simplifying the Accounting for Income Taxes . Effective January 1, 2021, we adopted the amendments in this ASU to simplify the accounting for income taxes. The only amendment that had a material effect on our financial statements clarified 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. With the adoption of the amendments, our financial statements no longer reflect an allocation of the Ford Motor Company consolidated United States current and deferred tax expense to us and certain of our United States subsidiaries that are treated as disregarded entities for United States tax purposes. These amendments reduce complexity in accounting for income taxes and better reflect our external obligations to tax authorities. Following the adoption, in April 2021, we entered into a Second Amended and Restated Tax Sharing Agreement with Ford. NOTE 2. ACCOUNTING POLICIES (C ontinued) The effect of the retrospective adoption of this amendment on our consolidated income statement, balance sheet, and statement of cash flows was as follows (in millions): For the Period Ended March 31, 2020 Previously Reported Adjustments As Revised Income Statement Provision for income taxes $ 9 $ 27 $ 36 Net income / (loss) 21 (27) (6) As of December 31, 2020 Previously Reported Adjustments As Revised Balance Sheet Other assets $ 4,593 $ (888) $ 3,705 Deferred income taxes (a) 2,907 (2,403) 504 Other liabilities and deferred income 2,306 (26) 2,280 Accumulated other comprehensive income / (loss) (413) (65) (478) Retained earnings 9,212 1,606 10,818 For the Period Ended March 31, 2020 Previously Reported Adjustments As Revised Statement of Cash Flows Cash flows from operating activities Net income / (loss) $ 21 $ (27) $ (6) Net change in deferred income taxes (272) 310 38 Net change in other liabilities (583) (175) (758) All other operating activities 103 (40) 63 Cash flows from financing activities Cash distributions to parent $ (275) $ (68) $ (343) __________ (a) Change reflects a reduction in U.S. deferred tax liabilities of $3.4 billion (primarily leasing transactions of $2.8 billion) and a reduction of U.S. deferred tax assets of $1.0 billion (primarily associated with foreign tax credit carryforwards of $0.7 billion). Adoption of ASU 2019-12 also resulted in a revised impact of the cumulative effect of initially applying ASU 2016-13, Credit Losses – Measurement of Credit Losses on Financial Instruments. The adjustment to the January 1, 2020 opening balance of Retained earnings for the adoption of ASU 2016-13 was previously reported as $202 million, and adjustments due to ASU 2019-12 were $40 million. Accordingly, the revised amount is $242 million. We also adopted the following ASUs during 2021, none of which had a material impact to our consolidated financial statements or financial statement disclosures: ASU Effective Date 2020-06 Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity January 1, 2021 2021-01 Reference Rate Reform January 1, 2021 Accounting Standards Issued But Not Yet Adopted The Company considers the applicability and impacts of all ASUs. ASUs were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements. NOTE 2. ACCOUNTING POLICIES (C ontinued) Provision for Income Taxes For interim tax reporting, we estimate one single effective tax rate for subsidiaries that are subject to tax, which is applied to the year-to-date ordinary income / (loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 3 Months Ended |
Mar. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES | CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES The fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis were as follows (in millions): Fair Value Level December 31, March 31, Cash and cash equivalents United States government 1 $ 3,255 $ 16 United States government agencies 2 640 50 Non-United States government and agencies 2 717 1,345 Corporate debt 2 970 945 Total marketable securities classified as cash equivalents 5,582 2,356 Cash, time deposits, and money market funds 8,767 8,513 Total cash and cash equivalents $ 14,349 $ 10,869 Marketable securities United States government 1 $ 1,082 $ 537 United States government agencies 2 485 600 Non-United States government and agencies 2 2,693 2,195 Corporate debt 2 308 342 Other marketable securities 2 292 274 Total marketable securities $ 4,860 $ 3,948 Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash, as reported in the consolidated statements of cash flows, were as follows (in millions): December 31, March 31, Cash and cash equivalents $ 14,349 $ 10,869 Restricted cash (a) 647 162 Total cash, cash equivalents, and restricted cash $ 14,996 $ 11,031 __________ (a) Restricted cash is included in Other assets on our consolidated balance sheets and is primarily held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of certain contractual agreements. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions. |
Finance Receivables
Finance Receivables | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Financing Receivables | FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES We manage finance receivables as “consumer” and “non-consumer” portfolios. The receivables are generally secured by the vehicles, inventory, or other property being financed. Finance receivables are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses. For all finance receivables, we define “past due” as any payment, including principal and interest, that is at least 31 days past the contractual due date. Total Finance Receivables, Net Total finance receivables, net were as follows (in millions): December 31, March 31, Consumer Retail installment contracts, gross $ 73,726 $ 72,078 Finance leases, gross 8,431 8,192 Retail financing, gross 82,157 80,270 Unearned interest supplements from Ford and affiliated companies (3,987) (3,696) Consumer finance receivables 78,170 76,574 Non-Consumer Dealer financing 26,517 23,453 Other financing 1,688 1,773 Non-Consumer finance receivables 28,205 25,226 Total recorded investment $ 106,375 $ 101,800 Recorded investment in finance receivables $ 106,375 $ 101,800 Allowance for credit losses (1,305) (1,223) Total finance receivables, net $ 105,070 $ 100,577 Net finance receivables subject to fair value (a) $ 97,043 $ 92,779 Fair value (b) 98,630 94,151 __________ (a) Net finance receivables subject to fair value exclude finance leases. (b) The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy. Finance leases are comprised of sales-type and direct financing leases. Financing revenue from finance leases for the first quarter of 2020 and 2021 was $95 million and $90 million, respectively, and is included in Retail financing on the consolidated income statements. At December 31, 2020 and March 31, 2021, accrued interest was $181 million and $164 million, respectively, which we report in Other assets on the consolidated balance sheets. Included in the recorded investment in finance receivables were consumer and non-consumer receivables that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) Credit Quality Consumer Portfolio. Credit quality ratings for consumer receivables are based on our aging analysis. Consumer receivables credit quality ratings are as follows: • Pass – current to 60 days past due; • Special Mention – 61 to 120 days past due and in intensified collection status; and • Substandard – greater than 120 days past due and for which the uncollectible portion of the receivables has already been charged off, as measured using the fair value of collateral less costs to sell. The credit quality analysis of consumer receivables at December 31, 2020 was as follows (in millions): Amortized Cost Basis by Origination Year Prior to 2016 2016 2017 2018 2019 2020 Total Percent Consumer 31-60 days past due $ 45 $ 62 $ 103 $ 162 $ 166 $ 143 $ 681 0.9 % 61-120 days past due 7 12 24 44 45 31 163 0.2 Greater than 120 days past due 11 6 7 8 7 2 41 — Total past due 63 80 134 214 218 176 885 1.1 Current 782 2,519 6,656 13,725 20,856 32,747 77,285 98.9 Total $ 845 $ 2,599 $ 6,790 $ 13,939 $ 21,074 $ 32,923 $ 78,170 100.0 % The credit quality analysis of consumer receivables at March 31, 2021 was as follows (in millions): Amortized Cost Basis by Origination Year Prior to 2017 2017 2018 2019 2020 2021 Total Percent Consumer 31-60 days past due $ 57 $ 64 $ 106 $ 117 $ 117 $ 5 $ 466 0.6 % 61-120 days past due 9 14 25 31 30 1 110 0.1 Greater than 120 days past due 16 7 7 7 3 — 40 0.1 Total past due 82 85 138 155 150 6 616 0.8 Current 2,453 5,455 11,761 18,760 30,591 6,938 75,958 99.2 Total $ 2,535 $ 5,540 $ 11,899 $ 18,915 $ 30,741 $ 6,944 $ 76,574 100.0 % NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) Non-Consumer Portfolio. The credit quality of dealer financing receivables is evaluated based on our internal dealer risk rating analysis. We use a proprietary model to assign each dealer a risk rating. This model uses historical dealer performance data to identify key factors about a dealer that we consider most significant in predicting a dealer’s ability to meet its financial obligations. We also consider numerous other financial and qualitative factors of the dealer’s operations, including capitalization and leverage, liquidity and cash flow, profitability, and credit history with ourselves and other creditors. Dealers are assigned to one of four groups according to risk ratings as follows: • Group I – strong to superior financial metrics; • Group II – fair to favorable financial metrics; • Group III – marginal to weak financial metrics; and • Group IV – poor financial metrics, including dealers classified as uncollectible. The credit quality analysis of dealer financing receivables at December 31, 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 Percent Group I $ 503 $ 129 $ 110 $ 188 $ 70 $ 248 $ 1,248 $ 18,769 $ 20,017 75.5 % Group II 38 20 11 35 3 87 194 4,680 4,874 18.4 Group III 9 — 3 19 3 35 69 1,464 1,533 5.8 Group IV 2 — — — 2 6 10 83 93 0.3 Total (a) $ 552 $ 149 $ 124 $ 242 $ 78 $ 376 $ 1,521 $ 24,996 $ 26,517 100.0 % __________ (a) Total past due dealer financing receivables at December 31, 2020 were $99 million. The credit quality analysis of dealer financing receivables at March 31, 2021 was as follows (in millions): Amortized Cost Basis by Origination Year Dealer Loans Prior to 2017 2017 2018 2019 2020 2021 Total Wholesale Loans Total Percent Group I $ 582 $ 108 $ 178 $ 55 $ 146 $ 124 $ 1,193 $ 16,210 $ 17,403 74.2 % Group II 31 11 40 3 23 63 171 4,358 4,529 19.3 Group III 17 — 9 2 13 24 65 1,380 1,445 6.2 Group IV — — 1 1 3 3 8 68 76 0.3 Total (a) $ 630 $ 119 $ 228 $ 61 $ 185 $ 214 $ 1,437 $ 22,016 $ 23,453 100.0 % __________ (a) Total past due dealer financing receivables at March 31, 2021 were $70 million. Non-Accrual of Revenue. The accrual of financing revenue is discontinued at the time a receivable is determined to be uncollectible or when it is 90 days past due. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) Troubled Debt Restructuring (“TDR”). A restructuring of debt constitutes a TDR if we grant a concession to a debtor for economic or legal reasons related to the debtor’s financial difficulties that we otherwise would not consider. Consumer and non-consumer receivables that have a modified interest rate below market rate or that were modified in reorganization proceedings pursuant to the United States 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. 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. Adjustments 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. An analysis of the allowance for credit losses related to finance receivables for the periods ended March 31 was as follows (in millions): First Quarter 2020 Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 496 $ 17 $ 513 Adoption of ASU 2016-13 (a) 247 5 252 Charge-offs (145) (1) (146) Recoveries 43 2 45 Provision for credit losses 534 52 586 Other (b) (18) (1) (19) Ending balance $ 1,157 $ 74 $ 1,231 First Quarter 2021 Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 1,245 $ 60 $ 1,305 Charge-offs (97) — (97) Recoveries 53 3 56 Provision for credit losses (30) (10) (40) Other (b) (1) — (1) Ending balance $ 1,170 $ 53 $ 1,223 __________ (a) Cumulative pre-tax adjustments related to the adoption of ASU 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments, were recorded to retained earnings as of January 1, 2020. (b) Primarily represents amounts related to translation adjustments. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) The allowance for credit losses considers the economic conditions attributable to the COVID-19 pandemic. The allowance reflects economic uncertainty and an expectation of continued higher unemployment which increase the probability of default and loss given default rates used in our estimate of the lifetime expected credit losses for our consumer portfolio, especially in the United States. During the first quarter of 2021, the allowance for credit losses decreased $82 million primarily reflecting improvement in the economic outlook that caused us to lower our expectation of lifetime losses attributable to COVID-19. The full impact of COVID-19 on our credit losses depends on future developments, such as the ultimate duration and scope of the outbreak (including any potential future waves and the success of vaccination programs), resolution of macroeconomic uncertainty, and the extent to which our customers and dealers are able to utilize government relief and payment deferral programs. Although net charge-offs remained low in the quarter ended March 31, 2021, the future impact of COVID-19 on credit losses remains uncertain. We will continue to monitor economic trends and conditions and portfolio performance and will adjust the reserve accordingly. |
Net Investments in Operating Le
Net Investments in Operating Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases, Operating [Abstract] | |
NET INVESTMENT IN OPERATING LEASES | NET INVESTMENT IN OPERATING LEASES Net investment in operating leases consists primarily of lease contracts for vehicles with individuals, daily rental companies, and fleet customers with terms of 60 months or less. Included in Net investment in operating leases are net investment in operating leases that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information. Net investment in operating leases was as follows (in millions): December 31, March 31, Vehicles, at cost (a) $ 32,495 $ 32,266 Accumulated depreciation (5,840) (5,705) Net investment in operating leases $ 26,655 $ 26,561 __________ |
Transfers of Receivables
Transfers of Receivables | 3 Months Ended |
Mar. 31, 2021 | |
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 in our securitization transactions. We have deemed most of these special purpose entities to be VIEs of which we are the primary beneficiary, and therefore, are consolidated. The SPEs are established for the sole purpose of financing the securitized financial assets. The SPEs are generally financed through the issuance of notes or commercial paper into the public or private markets or directly with conduits. We continue to recognize our financial assets related to our sales of receivables when the financial assets are sold to a consolidated VIE or a consolidated voting interest entity. We derecognize our financial assets when the financial assets are sold to a non-consolidated entity and we do not maintain control over the financial assets. We have the power to direct significant activities of our 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. We have no obligation to repurchase or replace any securitized asset that subsequently becomes delinquent in payment or otherwise is in default, except when representations and warranties about the eligibility of the securitized assets are breached, or when certain changes are made to the underlying asset contracts. Securitization investors have no recourse to us or our other assets and have no right to require us to repurchase the investments. We generally have no obligation to provide liquidity or contribute cash or additional assets to the VIEs and do not guarantee any asset-backed securities. We may be required to support the performance of certain securitization transactions, however, by increasing cash reserves. Certain of our securitization entities may enter into derivative transactions to mitigate interest rate exposure, primarily resulting from fixed-rate assets securing floating-rate debt. In certain instances, the counterparty enters into offsetting derivative transactions with us to mitigate its interest rate risk resulting from derivatives with our securitization entities. These related derivatives are not the obligations of our securitization entities. See Note 7 for additional information regarding derivatives. NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued) Most of these securitization transactions utilize VIEs. The following tables show the assets and debt related to our securitization transactions that were included in our consolidated financial statements (in billions): December 31, 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 included in the securitization trusts was $16.4 billion and the required pool balance was $14.1 billion. The global adjusted pool balance includes funds on deposit in the trust accounts. As of December 31, 2020, the adjusted pool balance was $2.3 billion higher than the required pool balance. NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued) March 31, 2021 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt Before Allowance Allowance for After Allowance VIE (b) Retail financing $ 2.1 $ 34.3 $ 0.4 $ 33.9 $ 26.6 Wholesale financing 2.0 15.0 — 15.0 10.4 Finance receivables 4.1 49.3 0.4 48.9 37.0 Net investment in operating leases 0.7 10.0 — 10.0 6.4 Total VIE $ 4.8 $ 59.3 $ 0.4 $ 58.9 $ 43.4 Non-VIE Retail financing $ 0.4 $ 6.9 $ 0.1 $ 6.8 $ 6.6 Wholesale financing — 0.3 — 0.3 0.2 Finance receivables 0.4 7.2 0.1 7.1 6.8 Net investment in operating leases — — — — — Total Non-VIE $ 0.4 $ 7.2 $ 0.1 $ 7.1 $ 6.8 Total securitization transactions Retail financing $ 2.5 $ 41.2 $ 0.5 $ 40.7 $ 33.2 Wholesale financing (d) 2.0 15.3 — 15.3 10.6 Finance receivables 4.5 56.5 0.5 56.0 43.8 Net investment in operating leases 0.7 10.0 — 10.0 6.4 Total securitization transactions $ 5.2 $ 66.5 $ 0.5 $ 66.0 $ 50.2 __________ (a) Unearned interest supplements and residual support are excluded from securitization transactions. (b) Includes assets to be used to settle the liabilities of the consolidated VIEs. (c) Includes unamortized discount and debt issuance cost. (d) The global adjusted pool balance of the wholesale finance receivables included in the securitization trusts was $15.3 billion and the required pool balance was $13.5 billion. The global adjusted pool balance includes funds on deposit in the trust accounts. As of March 31, 2021, the adjusted pool balance was $1.8 billion higher than the required pool balance. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES In the normal course of business, our operations are exposed to global market risks, including the effect of changes in interest rates and foreign currency exchange rates. To manage these risks, we enter into highly effective derivative contracts. We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting. Income Effect of Derivative Financial Instruments The gains / (losses), by hedge designation, reported in income for the periods ended March 31 were as follows (in millions): First Quarter 2020 2021 Fair value hedges Interest rate contracts Net interest settlements and accruals on hedging instruments $ 28 $ 101 Fair value changes on hedging instruments 1,110 (641) Fair value changes on hedged debt (1,093) 590 Cross-currency interest rate swap contracts Net interest settlements and accruals on hedging instruments — (3) Fair value changes on hedging instruments — (50) Fair value changes on hedged debt — 44 Derivatives not designated as hedging instruments Interest rate contracts (74) (31) Foreign currency exchange contracts (a) 207 52 Cross-currency interest rate swap contracts (151) (245) Total $ 27 $ (183) __________ (a) Reflects forward contracts between us and an affiliated company. NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued) Balance Sheet Effect of Derivative Financial Instruments Derivative assets and liabilities are reported on the balance sheets at fair value and are presented on a gross basis. The notional amounts of the derivative instruments do not necessarily represent amounts exchanged by the parties and are not a direct measure of our financial exposure. We also enter into master agreements with counterparties that may allow for netting of exposures in the event of default or breach of the counterparty agreement. Collateral represents cash received or paid under reciprocal arrangements that we have entered into with our derivative counterparties, which we do not use to offset our derivative assets and liabilities. The fair value of our derivative instruments and the associated notional amounts were as follows (in millions): December 31, 2020 March 31, 2021 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Fair value hedges Interest rate contracts $ 26,924 $ 1,331 $ 4 $ 25,646 $ 934 $ 204 Cross-currency interest rate swap contracts 885 46 — 885 2 — Derivatives not designated as hedging instruments Interest rate contracts 70,318 663 439 61,608 425 314 Foreign currency exchange contracts 4,378 4 80 5,098 49 34 Cross-currency interest rate swap contracts 6,849 557 1 6,822 275 25 Total derivative financial instruments, gross (a) (b) $ 109,354 $ 2,601 $ 524 $ 100,059 $ 1,685 $ 577 __________ (a) At December 31, 2020 and March 31, 2021, we held collateral of $9 million and $3 million, respectively, and we posted collateral of $96 million and $76 million, respectively. |
Other Assets and Other Liabilit
Other Assets and Other Liabilities and Deferred Income | 3 Months Ended |
Mar. 31, 2021 | |
Other Assets and Other Liabilities and Deferred Income [Abstract] | |
OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED INCOME | OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED REVENUE Other assets and other liabilities and deferred revenue consist of various balance sheet items that are combined for financial statement presentation due to their respective materiality compared with other individual asset and liability items. Other assets were as follows (in millions): December 31, March 31, Accrued interest and other non-finance receivables (a) $ 837 $ 820 Prepaid reinsurance premiums and other reinsurance recoverables 708 719 Collateral held for resale, at net realizable value 675 577 Restricted cash 647 162 Property and equipment, net of accumulated depreciation (b) 219 220 Deferred charges - income taxes (a) 166 166 Investment in non-consolidated affiliates 132 140 Operating lease assets 98 88 Other 223 193 Total other assets (a) $ 3,705 $ 3,085 __________ (a) Prior period amounts have been updated as a result of our adoption of ASU 2019-12, Simplifying the Accounting for Income Taxes. See Note 2 for additional information. (b) Accumulated depreciation was $365 million and $372 million at December 31, 2020 and March 31, 2021, respectively. Other liabilities and deferred revenue were as follows (in millions): December 31, March 31, Unearned insurance premiums and fees $ 822 $ 833 Interest payable 857 633 Income tax and related interest (a) (b) 121 191 Operating lease liabilities 100 91 Deferred revenue 87 77 Other 293 259 Total other liabilities and deferred revenue (a) $ 2,280 $ 2,084 __________ (a) Prior period amounts have been updated as a result of our adoption of ASU 2019-12, Simplifying the Accounting for Income Taxes. See Note 2 for additional information. (b) Includes income tax and interest payable to affiliated companies of $16 million and $86 million at December 31, 2020 and March 31, 2021, respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | DEBT Debt outstanding and interest rates were as follows (in millions): Interest Rates Debt Average Contractual Average Effective December 31, March 31, 2020 2021 2020 2021 Short-term debt Unsecured debt Floating rate demand notes $ 6,458 $ 7,159 Other short-term debt 3,940 3,635 Asset-backed debt (a) 1,031 1,182 Total short-term debt 11,429 11,976 1.5 % 1.3 % 1.6 % 1.3 % Long-term debt Unsecured debt Notes payable within one year 17,185 16,222 Notes payable after one year 54,197 48,880 Asset-backed debt (a) Notes payable within one year 21,345 20,207 Notes payable after one year 32,276 28,867 Unamortized (discount) / premium 30 36 Unamortized issuance costs (252) (243) Fair value adjustments (b) 1,467 847 Total long-term debt 126,248 114,816 2.7 % 2.6 % 2.7 % 2.6 % Total debt $ 137,677 $ 126,792 2.6 % 2.5 % 2.6 % 2.5 % Fair value of debt (c) $ 139,796 $ 128,979 __________ (a) Asset-backed debt issued in securitizations is the obligation of the consolidated securitization entity that issued the debt and is payable only out of collections on the underlying securitized assets and related enhancements. This asset-backed debt is not the obligation of Ford Credit or our other subsidiaries. (b) These adjustments are related to hedging activity and include discontinued hedging relationship adjustments of $299 million and $273 million at December 31, 2020 and March 31, 2021, respectively. The carrying value of hedged debt was $45.5 billion and $40.7 billion at December 31, 2020 and March 31, 2021, respectively. |
Other Income, Net
Other Income, Net | 3 Months Ended |
Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | OTHER INCOME / (LOSS) Other income / (loss) consists of various line items that are combined on the consolidated income statements due to their respective materiality compared with other individual income and expense items. The amounts included in Other income / (loss), net for the periods ended March 31 were as follows (in millions): First Quarter 2020 2021 Gains / (Losses) on derivatives $ (18) $ (265) Currency revaluation gains / (losses) (61) 183 Interest and investment income 63 (2) Other 4 9 Total other income / (loss), net $ (12) $ (75) |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We conduct our financing operations directly and indirectly through our subsidiaries and affiliates. We offer substantially similar products and services throughout many different regions, subject to local legal restrictions and market conditions. In our consolidated financial statements, we have three reportable segments based on geographic regions: the United States and Canada, Europe, and All Other. Our All Other segment includes China, India, Mexico, Brazil, Argentina, and our joint venture in South Africa. Items excluded in assessing segment performance because they are managed at the corporate level, including market valuation adjustments to derivatives and exchange-rate fluctuations on foreign currency-denominated transactions, are reflected in Unallocated Other. Key financial information for our business segments for the periods ended or at March 31 was as follows (in millions): United States and Canada Europe All Other Total Unallocated Other (a) Total First Quarter 2020 Total revenue $ 2,631 $ 281 $ 120 $ 3,032 $ — $ 3,032 Income before income taxes 22 17 7 46 (16) 30 Depreciation on vehicles subject to operating leases 1,039 13 — 1,052 — 1,052 Interest expense 845 90 65 1,000 (16) 984 Provision for credit losses 520 53 13 586 — 586 Net finance receivables and net investment in operating leases (b) 118,006 24,346 4,034 146,386 (8,610) 137,776 Total assets (c) 123,894 27,604 5,295 156,793 — 156,793 First Quarter 2021 Total revenue $ 2,384 $ 241 $ 92 $ 2,717 $ — $ 2,717 Income before income taxes 996 66 (15) 1,047 (85) 962 Depreciation on vehicles subject to operating leases 562 6 — 568 — 568 Interest expense 638 80 56 774 30 804 Provision for credit losses (52) (1) 13 (40) — (40) Net finance receivables and net investment in operating leases (b) 107,790 22,561 4,838 135,189 (8,051) 127,138 Total assets 116,720 25,110 5,438 147,268 — 147,268 __________ (a) Finance receivables, net and Net investment in operating leases includes unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation). (b) Excludes held-for-sale finance receivables. (c) Amounts have been updated as a result of our adoption of ASU 2019-12, Simplifying the Accounting for Income Taxes. See Note 2 for additional information. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments and contingencies primarily consist of guarantees and indemnifications, and litigation and claims. Guarantees and Indemnifications Guarantees and indemnifications are recorded at fair value at their inception. For financial guarantees, subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. The probability of default is applied to the expected exposure at the time of default less recoveries to determine the expected payments. Factors to consider when estimating the probability of default include the obligor’s financial position, forecasted economic environment, historical loss rates, and other communications. For non-financial guarantees, we regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the amount of probable payment is recorded. The maximum potential payments under these guarantees and limited indemnities totaled $153 million and $137 million at December 31, 2020 and March 31, 2021, respectively. Of these values, $62 million and $51 million at December 31, 2020 and March 31, 2021, respectively, were counter-guaranteed by Ford to us. There were no recorded liabilities related to guarantees and limited indemnities at December 31, 2020 or March 31, 2021. In some cases, we have guaranteed debt and other financial obligations of outside third parties and unconsolidated affiliates, including Ford. Expiration dates vary, and guarantees will terminate on payment and / or cancellation of the underlying obligation. A payment by us would be triggered by the failure of the third party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from a third party amounts paid by us under the guarantee. However, our ability to enforce these rights is sometimes stayed until the guaranteed party is paid in full and may be limited in the event of insolvency of the third party or other circumstances. In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction. These indemnifications might include and are not limited to claims relating to any of the following: environmental, tax, and shareholder matters; intellectual property rights; governmental regulations and employment-related matters; dealer and other commercial contractual relationships; and financial matters, such as securitizations. Performance under these indemnities generally would be triggered by a breach of the contract brought by a counterparty or a third-party claim. While some of these indemnifications are limited in nature, many of them do not limit potential payment. Therefore, we are unable to estimate a maximum amount of future payments that could result from claims made under these unlimited indemnities. NOTE 12. COMMITMENTS AND CONTINGENCIES (Continued) Litigation and Claims Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include, but are not limited to, matters arising out of governmental regulations; tax matters; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer and other contractual relationships; personal injury matters; investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages in very large amounts, sanctions, assessments, or other relief, which, if granted, would require very large expenditures. The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome. We accrue for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time. For nearly all matters where our historical experience with similar matters is of limited value (i.e., “non-pattern matters”), we evaluate the matters primarily based on the individual facts and circumstances. For non-pattern matters, we evaluate whether there is a reasonable possibility of a material loss in excess of any accrual that can be estimated. It is reasonably possible that some of the matters for which accruals have not been established could be decided unfavorably and could require us to pay damages or make other expenditures. On January 9, 2019, FCE 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 $50 million at March 31, 2021). 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. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Basis of Accounting and Intercompany Transactions [Abstract] | |
Basis of Accounting and Intercompany Transactions [Policy Text Block] | The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) for interim financial information, and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited financial statements include all adjustments considered necessary for a fair statement of the results of operations and financial condition for interim periods for Ford Motor Credit Company LLC, its consolidated subsidiaries, and its consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Results for interim periods should not be considered indicative of results for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K Report”). We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation. |
Loans and Leases Receivable Disclosure [Abstract] | |
Financing Receivable [Policy Text Block] | Non-Accrual of Revenue. The accrual of financing revenue is discontinued at the time a receivable is determined to be uncollectible or when it is 90 days past due. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance. NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Policy [Policy Text Block] | We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting. |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Leases [Policy Text Block] | Net investment in operating leases consists primarily of lease contracts for vehicles with individuals, daily rental companies, and fleet customers with terms of 60 months or less. Included in Net investment in operating leases are net investment in operating leases that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information. |
Guarantees and Indemnifications Policies [Policy Text Block] | Guarantees and indemnifications are recorded at fair value at their inception. For financial guarantees, subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. The probability of default is applied to the expected exposure at the time of default less recoveries to determine the expected payments. Factors to consider when estimating the probability of default include the obligor’s financial position, forecasted economic environment, historical loss rates, and other communications. For non-financial guarantees, we regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the amount of probable payment is recorded. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Accounting Standards Update and Change in Accounting Principle | For the Period Ended March 31, 2020 Previously Reported Adjustments As Revised Income Statement Provision for income taxes $ 9 $ 27 $ 36 Net income / (loss) 21 (27) (6) As of December 31, 2020 Previously Reported Adjustments As Revised Balance Sheet Other assets $ 4,593 $ (888) $ 3,705 Deferred income taxes (a) 2,907 (2,403) 504 Other liabilities and deferred income 2,306 (26) 2,280 Accumulated other comprehensive income / (loss) (413) (65) (478) Retained earnings 9,212 1,606 10,818 For the Period Ended March 31, 2020 Previously Reported Adjustments As Revised Statement of Cash Flows Cash flows from operating activities Net income / (loss) $ 21 $ (27) $ (6) Net change in deferred income taxes (272) 310 38 Net change in other liabilities (583) (175) (758) All other operating activities 103 (40) 63 Cash flows from financing activities Cash distributions to parent $ (275) $ (68) $ (343) __________ (a) Change reflects a reduction in U.S. deferred tax liabilities of $3.4 billion (primarily leasing transactions of $2.8 billion) and a reduction of U.S. deferred tax assets of $1.0 billion (primarily associated with foreign tax credit carryforwards of $0.7 billion). |
Cash, Cash Equivalents, and Mar
Cash, Cash Equivalents, and Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis were as follows (in millions): Fair Value Level December 31, March 31, Cash and cash equivalents United States government 1 $ 3,255 $ 16 United States government agencies 2 640 50 Non-United States government and agencies 2 717 1,345 Corporate debt 2 970 945 Total marketable securities classified as cash equivalents 5,582 2,356 Cash, time deposits, and money market funds 8,767 8,513 Total cash and cash equivalents $ 14,349 $ 10,869 Marketable securities United States government 1 $ 1,082 $ 537 United States government agencies 2 485 600 Non-United States government and agencies 2 2,693 2,195 Corporate debt 2 308 342 Other marketable securities 2 292 274 Total marketable securities $ 4,860 $ 3,948 |
Schedule of cash, cash equivalents and restricted cash [Table Text Block] | Cash, cash equivalents, and restricted cash, as reported in the consolidated statements of cash flows, were as follows (in millions): December 31, March 31, Cash and cash equivalents $ 14,349 $ 10,869 Restricted cash (a) 647 162 Total cash, cash equivalents, and restricted cash $ 14,996 $ 11,031 __________ (a) Restricted cash is included in Other assets on our consolidated balance sheets and is primarily held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of certain contractual agreements. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions. |
Finance Receivables (Tables)
Finance Receivables (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Financing Receivable, Allowance for Credit Loss | An analysis of the allowance for credit losses related to finance receivables for the periods ended March 31 was as follows (in millions): First Quarter 2020 Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 496 $ 17 $ 513 Adoption of ASU 2016-13 (a) 247 5 252 Charge-offs (145) (1) (146) Recoveries 43 2 45 Provision for credit losses 534 52 586 Other (b) (18) (1) (19) Ending balance $ 1,157 $ 74 $ 1,231 First Quarter 2021 Consumer Non-Consumer Total Allowance for credit losses Beginning balance $ 1,245 $ 60 $ 1,305 Charge-offs (97) — (97) Recoveries 53 3 56 Provision for credit losses (30) (10) (40) Other (b) (1) — (1) Ending balance $ 1,170 $ 53 $ 1,223 __________ (a) Cumulative pre-tax adjustments related to the adoption of ASU 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments, were recorded to retained earnings as of January 1, 2020. |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Total finance receivables, net were as follows (in millions): December 31, March 31, Consumer Retail installment contracts, gross $ 73,726 $ 72,078 Finance leases, gross 8,431 8,192 Retail financing, gross 82,157 80,270 Unearned interest supplements from Ford and affiliated companies (3,987) (3,696) Consumer finance receivables 78,170 76,574 Non-Consumer Dealer financing 26,517 23,453 Other financing 1,688 1,773 Non-Consumer finance receivables 28,205 25,226 Total recorded investment $ 106,375 $ 101,800 Recorded investment in finance receivables $ 106,375 $ 101,800 Allowance for credit losses (1,305) (1,223) Total finance receivables, net $ 105,070 $ 100,577 Net finance receivables subject to fair value (a) $ 97,043 $ 92,779 Fair value (b) 98,630 94,151 __________ (a) Net finance receivables subject to fair value exclude finance leases. |
Financing Receivable, Past Due [Table Text Block] | The credit quality analysis of consumer receivables at December 31, 2020 was as follows (in millions): Amortized Cost Basis by Origination Year Prior to 2016 2016 2017 2018 2019 2020 Total Percent Consumer 31-60 days past due $ 45 $ 62 $ 103 $ 162 $ 166 $ 143 $ 681 0.9 % 61-120 days past due 7 12 24 44 45 31 163 0.2 Greater than 120 days past due 11 6 7 8 7 2 41 — Total past due 63 80 134 214 218 176 885 1.1 Current 782 2,519 6,656 13,725 20,856 32,747 77,285 98.9 Total $ 845 $ 2,599 $ 6,790 $ 13,939 $ 21,074 $ 32,923 $ 78,170 100.0 % The credit quality analysis of consumer receivables at March 31, 2021 was as follows (in millions): Amortized Cost Basis by Origination Year Prior to 2017 2017 2018 2019 2020 2021 Total Percent Consumer 31-60 days past due $ 57 $ 64 $ 106 $ 117 $ 117 $ 5 $ 466 0.6 % 61-120 days past due 9 14 25 31 30 1 110 0.1 Greater than 120 days past due 16 7 7 7 3 — 40 0.1 Total past due 82 85 138 155 150 6 616 0.8 Current 2,453 5,455 11,761 18,760 30,591 6,938 75,958 99.2 Total $ 2,535 $ 5,540 $ 11,899 $ 18,915 $ 30,741 $ 6,944 $ 76,574 100.0 % |
Financing Receivables Credit Quality Indicators [Table Text Block] | 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 Percent Group I $ 503 $ 129 $ 110 $ 188 $ 70 $ 248 $ 1,248 $ 18,769 $ 20,017 75.5 % Group II 38 20 11 35 3 87 194 4,680 4,874 18.4 Group III 9 — 3 19 3 35 69 1,464 1,533 5.8 Group IV 2 — — — 2 6 10 83 93 0.3 Total (a) $ 552 $ 149 $ 124 $ 242 $ 78 $ 376 $ 1,521 $ 24,996 $ 26,517 100.0 % __________ (a) Total past due dealer financing receivables at December 31, 2020 were $99 million. The credit quality analysis of dealer financing receivables at March 31, 2021 was as follows (in millions): Amortized Cost Basis by Origination Year Dealer Loans Prior to 2017 2017 2018 2019 2020 2021 Total Wholesale Loans Total Percent Group I $ 582 $ 108 $ 178 $ 55 $ 146 $ 124 $ 1,193 $ 16,210 $ 17,403 74.2 % Group II 31 11 40 3 23 63 171 4,358 4,529 19.3 Group III 17 — 9 2 13 24 65 1,380 1,445 6.2 Group IV — — 1 1 3 3 8 68 76 0.3 Total (a) $ 630 $ 119 $ 228 $ 61 $ 185 $ 214 $ 1,437 $ 22,016 $ 23,453 100.0 % __________ |
Net Investment in Operating Lea
Net Investment in Operating Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases, Operating [Abstract] | |
Net investment in operating leases [Table Text Block] | Net investment in operating leases was as follows (in millions): December 31, March 31, Vehicles, at cost (a) $ 32,495 $ 32,266 Accumulated depreciation (5,840) (5,705) Net investment in operating leases $ 26,655 $ 26,561 __________ |
Transfers of Receivables (Table
Transfers of Receivables (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Schedule of Assets and Liabilities Related to Securitization Transactions [Table Text Block] | Most of these securitization transactions utilize VIEs. The following tables show the assets and debt related to our securitization transactions that were included in our consolidated financial statements (in billions): December 31, 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 included in the securitization trusts was $16.4 billion and the required pool balance was $14.1 billion. The global adjusted pool balance includes funds on deposit in the trust accounts. As of December 31, 2020, the adjusted pool balance was $2.3 billion higher than the required pool balance. NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued) March 31, 2021 Cash and Cash Equivalents Finance Receivables and Net Investment in Operating Leases (a) Related Debt Before Allowance Allowance for After Allowance VIE (b) Retail financing $ 2.1 $ 34.3 $ 0.4 $ 33.9 $ 26.6 Wholesale financing 2.0 15.0 — 15.0 10.4 Finance receivables 4.1 49.3 0.4 48.9 37.0 Net investment in operating leases 0.7 10.0 — 10.0 6.4 Total VIE $ 4.8 $ 59.3 $ 0.4 $ 58.9 $ 43.4 Non-VIE Retail financing $ 0.4 $ 6.9 $ 0.1 $ 6.8 $ 6.6 Wholesale financing — 0.3 — 0.3 0.2 Finance receivables 0.4 7.2 0.1 7.1 6.8 Net investment in operating leases — — — — — Total Non-VIE $ 0.4 $ 7.2 $ 0.1 $ 7.1 $ 6.8 Total securitization transactions Retail financing $ 2.5 $ 41.2 $ 0.5 $ 40.7 $ 33.2 Wholesale financing (d) 2.0 15.3 — 15.3 10.6 Finance receivables 4.5 56.5 0.5 56.0 43.8 Net investment in operating leases 0.7 10.0 — 10.0 6.4 Total securitization transactions $ 5.2 $ 66.5 $ 0.5 $ 66.0 $ 50.2 __________ (a) Unearned interest supplements and residual support are excluded from securitization transactions. (b) Includes assets to be used to settle the liabilities of the consolidated VIEs. (c) Includes unamortized discount and debt issuance cost. (d) The global adjusted pool balance of the wholesale finance receivables included in the securitization trusts was $15.3 billion and the required pool balance was $13.5 billion. The global adjusted pool balance includes funds on deposit in the trust accounts. As of March 31, 2021, the adjusted pool balance was $1.8 billion higher than the required pool balance. |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The gains / (losses), by hedge designation, reported in income for the periods ended March 31 were as follows (in millions): First Quarter 2020 2021 Fair value hedges Interest rate contracts Net interest settlements and accruals on hedging instruments $ 28 $ 101 Fair value changes on hedging instruments 1,110 (641) Fair value changes on hedged debt (1,093) 590 Cross-currency interest rate swap contracts Net interest settlements and accruals on hedging instruments — (3) Fair value changes on hedging instruments — (50) Fair value changes on hedged debt — 44 Derivatives not designated as hedging instruments Interest rate contracts (74) (31) Foreign currency exchange contracts (a) 207 52 Cross-currency interest rate swap contracts (151) (245) Total $ 27 $ (183) __________ (a) Reflects forward contracts between us and an affiliated company. |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The fair value of our derivative instruments and the associated notional amounts were as follows (in millions): December 31, 2020 March 31, 2021 Notional Fair Value of Assets Fair Value of Liabilities Notional Fair Value of Assets Fair Value of Liabilities Fair value hedges Interest rate contracts $ 26,924 $ 1,331 $ 4 $ 25,646 $ 934 $ 204 Cross-currency interest rate swap contracts 885 46 — 885 2 — Derivatives not designated as hedging instruments Interest rate contracts 70,318 663 439 61,608 425 314 Foreign currency exchange contracts 4,378 4 80 5,098 49 34 Cross-currency interest rate swap contracts 6,849 557 1 6,822 275 25 Total derivative financial instruments, gross (a) (b) $ 109,354 $ 2,601 $ 524 $ 100,059 $ 1,685 $ 577 __________ (a) At December 31, 2020 and March 31, 2021, we held collateral of $9 million and $3 million, respectively, and we posted collateral of $96 million and $76 million, respectively. |
Other Assets and Other Liabil_2
Other Assets and Other Liabilities and Deferred Income (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Assets and Other Liabilities and Deferred Income [Abstract] | |
Schedule of Other Assets and Other Liabilities [Table Text Block] | Other assets and other liabilities and deferred revenue consist of various balance sheet items that are combined for financial statement presentation due to their respective materiality compared with other individual asset and liability items. Other assets were as follows (in millions): December 31, March 31, Accrued interest and other non-finance receivables (a) $ 837 $ 820 Prepaid reinsurance premiums and other reinsurance recoverables 708 719 Collateral held for resale, at net realizable value 675 577 Restricted cash 647 162 Property and equipment, net of accumulated depreciation (b) 219 220 Deferred charges - income taxes (a) 166 166 Investment in non-consolidated affiliates 132 140 Operating lease assets 98 88 Other 223 193 Total other assets (a) $ 3,705 $ 3,085 __________ (a) Prior period amounts have been updated as a result of our adoption of ASU 2019-12, Simplifying the Accounting for Income Taxes. See Note 2 for additional information. (b) Accumulated depreciation was $365 million and $372 million at December 31, 2020 and March 31, 2021, respectively. Other liabilities and deferred revenue were as follows (in millions): December 31, March 31, Unearned insurance premiums and fees $ 822 $ 833 Interest payable 857 633 Income tax and related interest (a) (b) 121 191 Operating lease liabilities 100 91 Deferred revenue 87 77 Other 293 259 Total other liabilities and deferred revenue (a) $ 2,280 $ 2,084 __________ (a) Prior period amounts have been updated as a result of our adoption of ASU 2019-12, Simplifying the Accounting for Income Taxes. See Note 2 for additional information. (b) Includes income tax and interest payable to affiliated companies of $16 million and $86 million at December 31, 2020 and March 31, 2021, respectively. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Debt outstanding and interest rates were as follows (in millions): Interest Rates Debt Average Contractual Average Effective December 31, March 31, 2020 2021 2020 2021 Short-term debt Unsecured debt Floating rate demand notes $ 6,458 $ 7,159 Other short-term debt 3,940 3,635 Asset-backed debt (a) 1,031 1,182 Total short-term debt 11,429 11,976 1.5 % 1.3 % 1.6 % 1.3 % Long-term debt Unsecured debt Notes payable within one year 17,185 16,222 Notes payable after one year 54,197 48,880 Asset-backed debt (a) Notes payable within one year 21,345 20,207 Notes payable after one year 32,276 28,867 Unamortized (discount) / premium 30 36 Unamortized issuance costs (252) (243) Fair value adjustments (b) 1,467 847 Total long-term debt 126,248 114,816 2.7 % 2.6 % 2.7 % 2.6 % Total debt $ 137,677 $ 126,792 2.6 % 2.5 % 2.6 % 2.5 % Fair value of debt (c) $ 139,796 $ 128,979 __________ (a) Asset-backed debt issued in securitizations is the obligation of the consolidated securitization entity that issued the debt and is payable only out of collections on the underlying securitized assets and related enhancements. This asset-backed debt is not the obligation of Ford Credit or our other subsidiaries. (b) These adjustments are related to hedging activity and include discontinued hedging relationship adjustments of $299 million and $273 million at December 31, 2020 and March 31, 2021, respectively. The carrying value of hedged debt was $45.5 billion and $40.7 billion at December 31, 2020 and March 31, 2021, respectively. |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income [Table Text Block] | The amounts included in Other income / (loss), net for the periods ended March 31 were as follows (in millions): First Quarter 2020 2021 Gains / (Losses) on derivatives $ (18) $ (265) Currency revaluation gains / (losses) (61) 183 Interest and investment income 63 (2) Other 4 9 Total other income / (loss), net $ (12) $ (75) |
Segment and Geographic Informat
Segment and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Key financial information for our business segments for the periods ended or at March 31 was as follows (in millions): United States and Canada Europe All Other Total Unallocated Other (a) Total First Quarter 2020 Total revenue $ 2,631 $ 281 $ 120 $ 3,032 $ — $ 3,032 Income before income taxes 22 17 7 46 (16) 30 Depreciation on vehicles subject to operating leases 1,039 13 — 1,052 — 1,052 Interest expense 845 90 65 1,000 (16) 984 Provision for credit losses 520 53 13 586 — 586 Net finance receivables and net investment in operating leases (b) 118,006 24,346 4,034 146,386 (8,610) 137,776 Total assets (c) 123,894 27,604 5,295 156,793 — 156,793 First Quarter 2021 Total revenue $ 2,384 $ 241 $ 92 $ 2,717 $ — $ 2,717 Income before income taxes 996 66 (15) 1,047 (85) 962 Depreciation on vehicles subject to operating leases 562 6 — 568 — 568 Interest expense 638 80 56 774 30 804 Provision for credit losses (52) (1) 13 (40) — (40) Net finance receivables and net investment in operating leases (b) 107,790 22,561 4,838 135,189 (8,051) 127,138 Total assets 116,720 25,110 5,438 147,268 — 147,268 __________ (a) Finance receivables, net and Net investment in operating leases includes unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation). (b) Excludes held-for-sale finance receivables. (c) Amounts have been updated as a result of our adoption of ASU 2019-12, Simplifying the Accounting for Income Taxes. See Note 2 for additional information. |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Millions | Jan. 01, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Provision for income taxes | $ 117 | $ 36 | |||
Other assets | 3,085 | $ 3,705 | |||
Deferred Tax Liabilities, Gross | 524 | 504 | |||
Other liabilities and deferred income | 2,084 | 2,280 | |||
Accumulated other comprehensive income | (579) | (478) | |||
Retained Earnings (Accumulated Deficit) | 10,663 | 10,818 | |||
Net income | 845 | (6) | |||
Increase (Decrease) in Deferred Income Taxes | 13 | 38 | |||
Net change in other liabilities | 229 | (758) | |||
Cash distributions to parent | (1,000) | (343) | |||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | 114 | 63 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (15,311) | (15,450) | (15,567) | $ (16,389) | |
Retained Earnings [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net income | $ 845 | (6) | |||
Accounting Standards Update 2019-12 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Provision for income taxes | $ 27 | ||||
Other assets | (888) | ||||
Deferred Tax Liabilities, Gross | (2,403) | ||||
Other liabilities and deferred income | (26) | ||||
Accumulated other comprehensive income | (65) | ||||
Retained Earnings (Accumulated Deficit) | 1,606 | ||||
Net income | (27) | ||||
Increase (Decrease) in Deferred Income Taxes | 310 | ||||
Net change in other liabilities | (175) | ||||
Cash distributions to parent | (68) | ||||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | 40 | ||||
Accounting Standards Update 2019-12 | Retained Earnings [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 40 | ||||
Accounting Standards Update 2016-13 [Member] | Retained Earnings [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 202 | ||||
Accounting Standards Update 2019-12, 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 242 | ||||
Accounting Standards Update 2019-12, 2016-13 | Retained Earnings [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 242 | ||||
Previously Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Provision for income taxes | 9 | ||||
Other assets | 4,593 | ||||
Deferred Tax Liabilities, Gross | 3,400 | 2,907 | |||
Other liabilities and deferred income | 2,306 | ||||
Accumulated other comprehensive income | (413) | ||||
Retained Earnings (Accumulated Deficit) | $ 9,212 | ||||
Net income | 21 | ||||
Increase (Decrease) in Deferred Income Taxes | (272) | ||||
Net change in other liabilities | (583) | ||||
Cash distributions to parent | (275) | ||||
Deferred Tax Liabilities, Leasing Arrangements | 2,800 | ||||
Deferred Tax Assets, Gross | $ 1,000 | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 9.70% | 26.20% | |||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | $ (103) | ||||
Previously Reported | Foreign Tax Authority | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred Tax Assets, Gross | $ 700 |
Cash, Cash Equivalents, and M_2
Cash, Cash Equivalents, and Marketable Securities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash, Cash Equivalents, and Short-term Investments | $ 8,513 | $ 8,767 | ||
Total cash and cash equivalents | 10,869 | 14,349 | ||
Restricted Cash | 162 | 647 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 11,031 | 14,996 | $ 9,778 | $ 9,268 |
Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 2,356 | 5,582 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Marketable securities | 3,948 | 4,860 | ||
US Government [Member] | Fair Value, Recurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 16 | 3,255 | ||
Marketable securities | 537 | 1,082 | ||
US Government Agencies [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 50 | 640 | ||
Marketable securities | 600 | 485 | ||
Debt Security, Government, Non-US [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 1,345 | 717 | ||
Marketable securities | 2,195 | 2,693 | ||
Corporate debt [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Cash and cash equivalents | 945 | 970 | ||
Marketable securities | 342 | 308 | ||
Other Debt Obligations [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Marketable securities | $ 274 | $ 292 |
Finance Receivables Net (Detail
Finance Receivables Net (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Sales Type and Direct Financing Lease Revenue | $ 90 | $ 95 | ||
Net Finance Receivables [Abstract] | ||||
Financing Receivable, before Allowance for Credit Loss | 101,800 | $ 106,375 | ||
Financing Receivable, Allowance for Credit Loss | (1,223) | (1,231) | (1,305) | $ (513) |
Finance leases, net | 100,577 | 105,070 | ||
Uncollected interest receivable excluded from finance receivable | 164 | 181 | ||
Disposal Group, Including Discontinued Operation, Assets | $ 14 | 36 | ||
Financing Receivable, Threshold Period Past Due | 31 days | |||
Consumer Segment [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Financing Receivable, before Allowance for Credit Loss | $ 76,574 | 78,170 | ||
Financing Receivable, Allowance for Credit Loss | (1,170) | (1,157) | (1,245) | (496) |
Non-Consumer Segment [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Financing Receivable, before Allowance for Credit Loss | 25,226 | 28,205 | ||
Financing Receivable, Allowance for Credit Loss | (53) | $ (74) | (60) | $ (17) |
Retail Installment Loans [Member] | Consumer Segment [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Financing Receivable, before Allowance for Credit Loss | 72,078 | 73,726 | ||
Retail [Member] | Consumer Segment [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Unearned interest supplements from Ford and affiliated companies | (3,696) | (3,987) | ||
Financing Receivable, before Allowance for Credit Loss | 76,574 | 78,170 | ||
Finance Receivable Before Unearned Interest Supplements | 80,270 | 82,157 | ||
Finance leases [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Finance leases, net | 7,798 | 8,027 | ||
Finance leases [Member] | Consumer Segment [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Financing Receivable, before Allowance for Credit Loss | 8,192 | 8,431 | ||
Wholesale and Dealer Loans [Member] | Non-Consumer Segment [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Financing Receivable, before Allowance for Credit Loss | 23,453 | 26,517 | ||
Other Finance Receivables [Member] | Non-Consumer Segment [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Financing Receivable, before Allowance for Credit Loss | 1,773 | 1,688 | ||
Retail Installment loans, dealer financing, and other financing [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Finance leases, net | 92,779 | 97,043 | ||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Net Finance Receivables [Abstract] | ||||
Finance leases, net | 92,779 | 97,043 | ||
Fair value (b) | $ 94,151 | $ 98,630 |
Finance Receivables - Credit Qu
Finance Receivables - Credit Quality and Impaired Receivables (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Non-Accrual of Revenue | 90 | |
Financing Receivables | $ 101,800,000,000 | $ 106,375,000,000 |
Wholesale and Dealer Loans [Member] | Financing Receivable [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 70,000,000 | 99,000,000 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 25,226,000,000 | 28,205,000,000 |
Financing Receivable, Revolving | 22,016,000,000 | 24,996,000,000 |
Commercial Portfolio Segment [Member] | Group I | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 17,403,000,000 | 20,017,000,000 |
Financing Receivable, Revolving | 16,210,000,000 | 18,769,000,000 |
Commercial Portfolio Segment [Member] | Group I | Percent of Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 0.742 | 0.755 |
Commercial Portfolio Segment [Member] | Group II | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 4,529,000,000 | 4,874,000,000 |
Financing Receivable, Revolving | 4,358,000,000 | 4,680,000,000 |
Commercial Portfolio Segment [Member] | Group II | Percent of Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 0.193 | 0.184 |
Commercial Portfolio Segment [Member] | Group III | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 1,445,000,000 | 1,533,000,000 |
Financing Receivable, Revolving | 1,380,000,000 | 1,464,000,000 |
Commercial Portfolio Segment [Member] | Group III | Percent of Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 0.062 | 0.058 |
Commercial Portfolio Segment [Member] | Group IV | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 76,000,000 | 93,000,000 |
Financing Receivable, Revolving | 68,000,000 | 83,000,000 |
Commercial Portfolio Segment [Member] | Group IV | Percent of Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 0.003 | 0.003 |
Commercial Portfolio Segment [Member] | Dealer Loan | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 630,000,000 | 552,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 119,000,000 | 149,000,000 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 228,000,000 | 124,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 61,000,000 | 242,000,000 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 185,000,000 | 78,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 214,000,000 | 376,000,000 |
Financing Receivable Originations Total | 1,437,000,000 | 1,521,000,000 |
Commercial Portfolio Segment [Member] | Dealer Loan | Group I | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 582,000,000 | 503,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 108,000,000 | 129,000,000 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 178,000,000 | 110,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 55,000,000 | 188,000,000 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 146,000,000 | 70,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 124,000,000 | 248,000,000 |
Financing Receivable Originations Total | 1,193,000,000 | 1,248,000,000 |
Commercial Portfolio Segment [Member] | Dealer Loan | Group II | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 31,000,000 | 38,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 11,000,000 | 20,000,000 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 40,000,000 | 11,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 3,000,000 | 35,000,000 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 23,000,000 | 3,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 63,000,000 | 87,000,000 |
Financing Receivable Originations Total | 171,000,000 | 194,000,000 |
Commercial Portfolio Segment [Member] | Dealer Loan | Group III | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 17,000,000 | 9,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 0 | 0 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 9,000,000 | 3,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 2,000,000 | 19,000,000 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 13,000,000 | 3,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 24,000,000 | 35,000,000 |
Financing Receivable Originations Total | 65,000,000 | 69,000,000 |
Commercial Portfolio Segment [Member] | Dealer Loan | Group IV | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 0 | 2,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 0 | 0 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 1,000,000 | 0 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 1,000,000 | 0 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 3,000,000 | 2,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 3,000,000 | 6,000,000 |
Financing Receivable Originations Total | 8,000,000 | 10,000,000 |
Commercial Portfolio Segment [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 23,453,000,000 | 26,517,000,000 |
Commercial Portfolio Segment [Member] | Commercial Portfolio Segment [Member] | Percent of Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 1 | 1 |
Commercial Portfolio Segment [Member] | Wholesale and Dealer Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 23,453,000,000 | 26,517,000,000 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 76,574,000,000 | 78,170,000,000 |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 2,535,000,000 | 845,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 5,540,000,000 | 2,599,000,000 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 11,899,000,000 | 6,790,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 18,915,000,000 | 13,939,000,000 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 30,741,000,000 | 21,074,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 6,944,000,000 | 32,923,000,000 |
Consumer Portfolio Segment [Member] | Financing Receivables, 31-60 Days Past Due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 466,000,000 | 681,000,000 |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 57,000,000 | 45,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 64,000,000 | 62,000,000 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 106,000,000 | 103,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 117,000,000 | 162,000,000 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 117,000,000 | 166,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 5,000,000 | 143,000,000 |
Consumer Portfolio Segment [Member] | Financing Receivables, 61-120 Days past due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 110,000,000 | 163,000,000 |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 9,000,000 | 7,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 14,000,000 | 12,000,000 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 25,000,000 | 24,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 31,000,000 | 44,000,000 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 30,000,000 | 45,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 1,000,000 | 31,000,000 |
Consumer Portfolio Segment [Member] | Financing Receivables, Greater Than 120 Days Past Due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 40,000,000 | 41,000,000 |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 16,000,000 | 11,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 7,000,000 | 6,000,000 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 7,000,000 | 7,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 7,000,000 | 8,000,000 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 3,000,000 | 7,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 0 | 2,000,000 |
Consumer Portfolio Segment [Member] | Total past due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 616,000,000 | 885,000,000 |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 82,000,000 | 63,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 85,000,000 | 80,000,000 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 138,000,000 | 134,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 155,000,000 | 214,000,000 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 150,000,000 | 218,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 6,000,000 | 176,000,000 |
Consumer Portfolio Segment [Member] | Financial Asset, 1 to 29 Days Past Due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 75,958,000,000 | 77,285,000,000 |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 2,453,000,000 | 782,000,000 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 5,455,000,000 | 2,519,000,000 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 11,761,000,000 | 6,656,000,000 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 18,760,000,000 | 13,725,000,000 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 30,591,000,000 | 20,856,000,000 |
Financing Receivable, Originated in Current Fiscal Year | 6,938,000,000 | 32,747,000,000 |
Consumer Portfolio Segment [Member] | Percent of Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 1 | 1 |
Consumer Portfolio Segment [Member] | Percent of Total | Financing Receivables, 31-60 Days Past Due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 0.006 | 0.009 |
Consumer Portfolio Segment [Member] | Percent of Total | Financing Receivables, 61-120 Days past due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 0.001 | 0.002 |
Consumer Portfolio Segment [Member] | Percent of Total | Financing Receivables, Greater Than 120 Days Past Due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 0.001 | 0 |
Consumer Portfolio Segment [Member] | Percent of Total | Total past due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | 0.008 | 0.011 |
Consumer Portfolio Segment [Member] | Percent of Total | Financial Asset, 1 to 29 Days Past Due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivables | $ 0.992 | $ 0.989 |
Consumer Portfolio Segment [Member] | Pass [Member] | Maximum [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Finance Receivables Credit Quality Ratings Term Range | 60 days | |
Consumer Portfolio Segment [Member] | Substandard [Member] | Minimum [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Finance Receivables Credit Quality Ratings Term Range | 120 days | |
Consumer Portfolio Segment [Member] | Special Mention [Member] | Maximum [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Finance Receivables Credit Quality Ratings Term Range | 120 days | |
Consumer Portfolio Segment [Member] | Special Mention [Member] | Minimum [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Finance Receivables Credit Quality Ratings Term Range | 61 days |
Finance Receivables and Allowan
Finance Receivables and Allowance for Credit Losses Allowance for credit losses (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Credit Losses [Line Items] | ||||
Financing Receivable, Allowance for Credit Loss | $ 1,223 | $ 1,231 | $ 1,305 | $ 513 |
Finance receivables, net | 100,577 | 105,070 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | (97) | (146) | ||
Financing Receivable, Allowance for Credit Loss, Recovery | 56 | 45 | ||
Provision for Loan, Lease, and Other Losses | (40) | 586 | ||
Financing Receivable, Allowance for Credit Losses, Other | (1) | (19) | ||
Financing Receivable, before Allowance for Credit Loss | 101,800 | 106,375 | ||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 82 | |||
Commercial Portfolio Segment [Member] | ||||
Allowance for Credit Losses [Line Items] | ||||
Financing Receivable, Allowance for Credit Loss | 53 | 74 | 60 | 17 |
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | (1) | ||
Financing Receivable, Allowance for Credit Loss, Recovery | 3 | 2 | ||
Provision for Loan, Lease, and Other Losses | (10) | 52 | ||
Financing Receivable, Allowance for Credit Losses, Other | 0 | (1) | ||
Financing Receivable, before Allowance for Credit Loss | 25,226 | 28,205 | ||
Consumer Portfolio Segment [Member] | ||||
Allowance for Credit Losses [Line Items] | ||||
Financing Receivable, Allowance for Credit Loss | 1,170 | 1,157 | 1,245 | $ 496 |
Financing Receivable, Allowance for Credit Loss, Writeoff | (97) | (145) | ||
Financing Receivable, Allowance for Credit Loss, Recovery | 53 | 43 | ||
Provision for Loan, Lease, and Other Losses | (30) | 534 | ||
Financing Receivable, Allowance for Credit Losses, Other | (1) | (18) | ||
Financing Receivable, before Allowance for Credit Loss | 76,574 | 78,170 | ||
Accounting Standards Update 2016-13 [Member] | ||||
Allowance for Credit Losses [Line Items] | ||||
Finance receivables, net | 252 | |||
Accounting Standards Update 2016-13 [Member] | Commercial Portfolio Segment [Member] | ||||
Allowance for Credit Losses [Line Items] | ||||
Finance receivables, net | 5 | |||
Accounting Standards Update 2016-13 [Member] | Consumer Portfolio Segment [Member] | ||||
Allowance for Credit Losses [Line Items] | ||||
Finance receivables, net | $ 247 | |||
Retail Installment loans, dealer financing, and other financing [Member] | ||||
Allowance for Credit Losses [Line Items] | ||||
Finance receivables, net | $ 92,779 | $ 97,043 |
Net Investments in Operating _2
Net Investments in Operating Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Net Investment in Operating Leases, Length of Lease | 60 months or less | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 372 | $ 365 |
Net Investment in Operating Leases | 26,561 | 26,655 |
Property Subject to Operating Lease [Member] | ||
Property Subject to or Available for Operating Lease, Gross | 32,266 | 32,495 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 5,705 | 5,840 |
Net Investment in Operating Leases | $ 26,561 | $ 26,655 |
Transfers of Receivables - Asse
Transfers of Receivables - Assets and Liabilities of Securitizations (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | $ 10,869 | $ 14,349 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 127,138 | $ 137,776 | |
Related Debt | 126,792 | 137,677 | |
Total assets | 147,268 | 158,129 | $ 156,793 |
Adjusted Pool Balance | 1,800 | 2,300 | |
Required pool balance | 13,500 | 14,100 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 5,200 | 3,200 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 66,500 | 72,900 | |
Allowance for Credit Losses | 500 | 500 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 66,000 | 72,400 | |
Related Debt | 50,200 | 54,600 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 4,500 | 2,600 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 56,500 | 60,100 | |
Allowance for Credit Losses | 500 | 500 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 56,000 | 59,600 | |
Related Debt | 43,800 | 46,900 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Retail [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 2,500 | 2,400 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 41,200 | 43,700 | |
Allowance for Credit Losses | 500 | 500 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 40,700 | 43,200 | |
Related Debt | 33,200 | 36,000 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Wholesale [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 2,000 | 200 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 15,300 | 16,400 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 15,300 | 16,400 | |
Related Debt | 10,600 | 10,900 | |
Consolidated Entities [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 700 | 600 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 10,000 | 12,800 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 10,000 | 12,800 | |
Related Debt | 6,400 | 7,700 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 4,794 | 2,822 | |
Related Debt | 43,387 | 46,770 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 4,800 | 2,800 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 59,300 | 64,700 | |
Allowance for Credit Losses | 400 | 400 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 58,900 | 64,300 | |
Related Debt | 43,400 | 46,800 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 4,100 | 2,200 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 49,300 | 51,900 | |
Allowance for Credit Losses | 400 | 400 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 48,900 | 51,500 | |
Related Debt | 37,000 | 39,100 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Retail [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 2,100 | 2,000 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 34,300 | 35,800 | |
Allowance for Credit Losses | 400 | 400 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 33,900 | 35,400 | |
Related Debt | 26,600 | 28,400 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Wholesale [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 2,000 | 200 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 15,000 | 16,100 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 15,000 | 16,100 | |
Related Debt | 10,400 | 10,700 | |
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 700 | 600 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 10,000 | 12,800 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 10,000 | 12,800 | |
Related Debt | 6,400 | 7,700 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 400 | 400 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 7,200 | 8,200 | |
Allowance for Credit Losses | 100 | 100 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 7,100 | 8,100 | |
Related Debt | 6,800 | 7,800 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Financing Receivable [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 400 | 400 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 7,200 | 8,200 | |
Allowance for Credit Losses | 100 | 100 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 7,100 | 8,100 | |
Related Debt | 6,800 | 7,800 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Retail [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 400 | 400 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 6,900 | 7,900 | |
Allowance for Credit Losses | 100 | 100 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 6,800 | 7,800 | |
Related Debt | 6,600 | 7,600 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Wholesale [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 300 | 300 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 300 | 300 | |
Related Debt | 200 | 200 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member] | |||
Securitization Transactions [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses | 0 | 0 | |
Allowance for Credit Losses | 0 | 0 | |
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses | 0 | 0 | |
Related Debt | $ 0 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Debt Carrying Value Fair Value | $ 40,700 | $ 45,500 | |
Income Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Gain (Loss) on Derivative, Net | (183) | $ 27 | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 1,685 | 2,601 | |
Fair Value of Derivative Liabilities | 577 | 524 | |
Derivative, Notional Amount | 100,059 | 109,354 | |
Derivative, Collateral, Obligation to Return Cash | 3 | 9 | |
Derivative, Collateral, Right to Reclaim Cash | 76 | 96 | |
Derivative Asset, Not Offset, Policy Election Deduction | 396 | 204 | |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | |||
Income Effect of Derivative Financial Instruments [Abstract] | |||
Net interest settlements and accruals excluded from the assessment of hedge effectiveness | 101 | 28 | |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (641) | 1,110 | |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 590 | (1,093) | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Notional Amount | 25,646 | 26,924 | |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Currency Swap | |||
Income Effect of Derivative Financial Instruments [Abstract] | |||
Net interest settlements and accruals excluded from the assessment of hedge effectiveness | (3) | 0 | |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (50) | 0 | |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 44 | 0 | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Notional Amount | 885 | 885 | |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | Fair Value Hedging [Member] | |||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 934 | 1,331 | |
Fair Value of Derivative Liabilities | 204 | 4 | |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | Currency Swap | |||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 2 | 46 | |
Fair Value of Derivative Liabilities | 0 | 0 | |
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Income Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Gain (Loss) on Derivative, Net | (31) | (74) | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Notional Amount | 61,608 | 70,318 | |
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | |||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 425 | 663 | |
Fair Value of Derivative Liabilities | 314 | 439 | |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Income Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Gain (Loss) on Derivative, Net | 52 | 207 | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Notional Amount | 5,098 | 4,378 | |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | |||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 49 | 4 | |
Fair Value of Derivative Liabilities | 34 | 80 | |
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 | (245) | $ (151) | |
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Derivative, Notional Amount | 6,822 | 6,849 | |
Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Level 2 [Member] | Fair Value, Recurring [Member] | |||
Balance Sheet Effect of Derivative Financial Instruments [Abstract] | |||
Fair Value of Derivative Assets | 275 | 557 | |
Fair Value of Derivative Liabilities | $ 25 | $ 1 |
Other Assets and Other Liabil_3
Other Assets and Other Liabilities and Deferred Income (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Other Assets and Other Liabilities [Abstract] | ||
Accrued interest and other non-finance receivables | $ 820 | $ 837 |
Collateral held for resale, at net realizable value, and other inventory | 577 | 675 |
Prepaid Reinsurance Premiums and Other Reinsurance Recoverables | 719 | 708 |
Deferred charges - income taxes | 166 | 166 |
Property and equipment, net of accumulated depreciation | 220 | 219 |
Operating lease assets | 88 | 98 |
Investment in non-consolidated affiliates | 140 | 132 |
Other | 193 | 223 |
Other assets | 3,085 | 3,705 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 372 | 365 |
Unearned Premiums and Fees | 833 | 822 |
Interest Payable | 633 | 857 |
Taxes Payable | 191 | 121 |
Deferred Revenue | 77 | 87 |
Operating Lease, Liability | 91 | 100 |
Other Liabilities | 2,084 | 2,280 |
Related Party Transactions Income Taxes and Related Interest Payable | 86 | 16 |
Other Liabilities, Miscellaneous | 259 | 293 |
Restricted Cash | 162 | 647 |
Property Subject to Operating Lease [Member] | ||
Other Assets and Other Liabilities [Abstract] | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 5,705 | $ 5,840 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total short-term debt | $ 11,976 | $ 11,429 |
Unamortized discount | 36 | 30 |
Unamortized debt issuance costs | (243) | (252) |
Fair value adjustments | 847 | 1,467 |
Total long-term debt | 114,816 | 126,248 |
Total debt | $ 126,792 | $ 137,677 |
Average Contractual (interest rate) | 2.50% | 2.60% |
Average Effective (interest rate) | 2.50% | 2.60% |
Debt Carrying Value Fair Value | $ 40,700 | $ 45,500 |
Fair value of short-term debt | 10,800 | 10,400 |
Discontinued Hedged Debt | 273 | 299 |
Floating Rate Demand Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 7,159 | 6,458 |
Other short-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 3,635 | 3,940 |
Asset-backed Securities [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 1,182 | 1,031 |
Notes payable within one year | 20,207 | 21,345 |
Notes payable after one year | $ 28,867 | $ 32,276 |
Total short-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Average Contractual (interest rate) | 1.30% | 1.50% |
Average Effective (interest rate) | 1.30% | 1.60% |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable within one year | $ 16,222 | $ 17,185 |
Notes payable after one year | $ 48,880 | $ 54,197 |
Total long-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Average Contractual (interest rate) | 2.60% | 2.70% |
Average Effective (interest rate) | 2.60% | 2.70% |
Fair Value, Nonrecurring [Member] | Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 128,979 | $ 139,796 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | ||
Gains/(Losses) on derivatives | $ (265) | $ (18) |
Currency revaluation gains/(losses) | 183 | (61) |
Interest and investment income | (2) | 63 |
Other | 9 | 4 |
Other income, net | $ (75) | $ (12) |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 2,717 | $ 3,032 | |
Income before income taxes | 962 | 30 | |
Other disclosures [Abstract] | |||
Depreciation on vehicles subject to operating leases | 568 | 1,052 | |
Interest expense | 804 | 984 | |
Provision for credit losses | (40) | 586 | |
Net finance receivables and net investment in operating leases | 127,138 | 137,776 | |
Total assets | 147,268 | 156,793 | $ 158,129 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 2,717 | 3,032 | |
Income before income taxes | 1,047 | 46 | |
Other disclosures [Abstract] | |||
Depreciation on vehicles subject to operating leases | 568 | 1,052 | |
Interest expense | 774 | 1,000 | |
Provision for credit losses | (40) | 586 | |
Net finance receivables and net investment in operating leases | 135,189 | 146,386 | |
Total assets | 147,268 | 156,793 | |
Operating Segments [Member] | Americas [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 2,384 | 2,631 | |
Income before income taxes | 996 | 22 | |
Other disclosures [Abstract] | |||
Depreciation on vehicles subject to operating leases | 562 | 1,039 | |
Interest expense | 638 | 845 | |
Provision for credit losses | (52) | 520 | |
Net finance receivables and net investment in operating leases | 107,790 | 118,006 | |
Total assets | 116,720 | 123,894 | |
Operating Segments [Member] | Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 241 | 281 | |
Income before income taxes | 66 | 17 | |
Other disclosures [Abstract] | |||
Depreciation on vehicles subject to operating leases | 6 | 13 | |
Interest expense | 80 | 90 | |
Provision for credit losses | (1) | 53 | |
Net finance receivables and net investment in operating leases | 22,561 | 24,346 | |
Total assets | 25,110 | 27,604 | |
Operating Segments [Member] | Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 92 | 120 | |
Income before income taxes | (15) | 7 | |
Other disclosures [Abstract] | |||
Depreciation on vehicles subject to operating leases | 0 | 0 | |
Interest expense | 56 | 65 | |
Provision for credit losses | 13 | 13 | |
Net finance receivables and net investment in operating leases | 4,838 | 4,034 | |
Total assets | 5,438 | 5,295 | |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 0 | 0 | |
Income before income taxes | (85) | (16) | |
Other disclosures [Abstract] | |||
Depreciation on vehicles subject to operating leases | 0 | 0 | |
Interest expense | 30 | (16) | |
Provision for credit losses | 0 | 0 | |
Net finance receivables and net investment in operating leases | (8,051) | (8,610) | |
Total assets | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands, € in Millions | 3 Months Ended | ||
Mar. 31, 2021USD ($) | Mar. 31, 2021EUR (€) | Dec. 31, 2020USD ($) | |
Guarantor Obligations [Line Items] | |||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments and contingencies primarily consist of guarantees and indemnifications, and litigation and claims. Guarantees and Indemnifications Guarantees and indemnifications are recorded at fair value at their inception. For financial guarantees, subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. The probability of default is applied to the expected exposure at the time of default less recoveries to determine the expected payments. Factors to consider when estimating the probability of default include the obligor’s financial position, forecasted economic environment, historical loss rates, and other communications. For non-financial guarantees, we regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the amount of probable payment is recorded. The maximum potential payments under these guarantees and limited indemnities totaled $153 million and $137 million at December 31, 2020 and March 31, 2021, respectively. Of these values, $62 million and $51 million at December 31, 2020 and March 31, 2021, respectively, were counter-guaranteed by Ford to us. There were no recorded liabilities related to guarantees and limited indemnities at December 31, 2020 or March 31, 2021. In some cases, we have guaranteed debt and other financial obligations of outside third parties and unconsolidated affiliates, including Ford. Expiration dates vary, and guarantees will terminate on payment and / or cancellation of the underlying obligation. A payment by us would be triggered by the failure of the third party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from a third party amounts paid by us under the guarantee. However, our ability to enforce these rights is sometimes stayed until the guaranteed party is paid in full and may be limited in the event of insolvency of the third party or other circumstances. In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction. These indemnifications might include and are not limited to claims relating to any of the following: environmental, tax, and shareholder matters; intellectual property rights; governmental regulations and employment-related matters; dealer and other commercial contractual relationships; and financial matters, such as securitizations. Performance under these indemnities generally would be triggered by a breach of the contract brought by a counterparty or a third-party claim. While some of these indemnifications are limited in nature, many of them do not limit potential payment. Therefore, we are unable to estimate a maximum amount of future payments that could result from claims made under these unlimited indemnities. NOTE 12. COMMITMENTS AND CONTINGENCIES (Continued) Litigation and Claims Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include, but are not limited to, matters arising out of governmental regulations; tax matters; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer and other contractual relationships; personal injury matters; investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages in very large amounts, sanctions, assessments, or other relief, which, if granted, would require very large expenditures. The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome. We accrue for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time. For nearly all matters where our historical experience with similar matters is of limited value (i.e., “non-pattern matters”), we evaluate the matters primarily based on the individual facts and circumstances. For non-pattern matters, we evaluate whether there is a reasonable possibility of a material loss in excess of any accrual that can be estimated. It is reasonably possible that some of the matters for which accruals have not been established could be decided unfavorably and could require us to pay damages or make other expenditures. On January 9, 2019, FCE 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 $50 million at March 31, 2021). 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. | ||
Financial Guarantee [Member] | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 137,000 | $ 153,000 | |
Counter Guarantee [Member] | Ford Motor Company [Member] | |||
Guarantor Obligations [Line Items] | |||
Counter guarantee | 51,000 | $ 62,000 | |
Euro Member Countries, Euro | |||
Guarantor Obligations [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | € | € 42 | ||
United States of America, Dollars | |||
Guarantor Obligations [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | $ 50,000 |