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Ford Credit Finance Receivables (Tables)

3 Months Ended

Mar. 31, 2021

Schedule of Accounts, Notes, Loans and Financing Receivable

Ford Credit finance receivables, net were as follows (in millions):


	December 31, 2020		March 31, 2021
Consumer
Retail installment contracts, gross	$	73,631	$	71,981
Finance leases, gross	8,431		8,192
Retail financing, gross	82,062		80,173
Unearned interest supplements	(3,987)		(3,696)
Consumer finance receivables	78,075		76,477
Non-Consumer
Dealer financing	20,908		17,980
Non-Consumer finance receivables	20,908		17,980
Total recorded investment	$	98,983	$	94,457

Recorded investment in finance receivables	$	98,983	$	94,457
Allowance for credit losses	(1,305)		(1,223)
Total finance receivables, net	$	97,678	$	93,234

Current portion	$	42,401	$	40,664
Non-current portion	55,277		52,570
Total finance receivables, net	$	97,678	$	93,234

Net finance receivables subject to fair value (a)	$	89,651	$	85,436
Fair value (b)	91,238		86,808

__________

(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.

Financing Receivable, Past Due

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		2,518		6,648		13,704		20,822		32,716		77,190		98.9
Total	$	845	$	2,598	$	6,782	$	13,918	$	21,040	$	32,892	$	78,075	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	2,452		5,450		11,743		18,729		30,560		6,927		75,861		99.2
Total	$	2,534	$	5,535	$	11,881	$	18,884	$	30,710	$	6,933	$	76,477	100.0	%

Financing Receivable Credit Quality Indicators

The credit quality analysis of dealer financing receivables at December 31, 2020 was as follows (in millions):


	Amortized Cost Basis by Origination Year														Wholesale Loans
	Dealer Loans
	Prior to 2016		2016		2017		2018		2019		2020		Total				Total		Percent
Group I	$	503	$	129	$	110	$	188	$	70	$	248	$	1,248	$	13,160	$	14,408	68.9	%
Group II	38		20		11		35		3		87		194		4,680		4,874		23.3
Group III	9		—		3		19		3		35		69		1,464		1,533		7.3
Group IV	2		—		—		—		2		6		10		83		93		0.5
Total (a)	$	552	$	149	$	124	$	242	$	78	$	376	$	1,521	$	19,387	$	20,908	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														Wholesale Loans
	Dealer Loans
	Prior to 2017		2017		2018		2019		2020		2021		Total				Total		Percent
Group I	$	582	$	108	$	178	$	55	$	146	$	124	$	1,193	$	10,737	$	11,930	66.4	%
Group II	31		11		40		3		23		63		171		4,358		4,529		25.2
Group III	17		—		9		2		13		24		65		1,380		1,445		8.0
Group IV	—		—		1		1		3		3		8		68		76		0.4
Total (a)	$	630	$	119	$	228	$	61	$	185	$	214	$	1,437	$	16,543	$	17,980	100.0	%

__________

(a)Total past due dealer financing receivables at March 31, 2021 were $70 million.

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 in retained earnings as of January 1, 2020.

(b)Primarily represents amounts related to translation adjustments.