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Ford Credit Finance Receivables (Tables)

6 Months Ended

Jun. 30, 2022

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


	December 31, 2021		June 30, 2022
Consumer
Retail installment contracts, gross	$	69,148	$	65,128
Finance leases, gross	7,318		6,647
Retail financing, gross	76,466		71,775
Unearned interest supplements	(3,020)		(2,535)
Consumer finance receivables	73,446		69,240
Non-Consumer
Dealer financing	11,278		11,982
Non-Consumer finance receivables	11,278		11,982
Total recorded investment	$	84,724	$	81,222

Recorded investment in finance receivables	$	84,724	$	81,222
Allowance for credit losses	(925)		(763)
Total finance receivables, net	$	83,799	$	80,459

Current portion	$	32,543	$	30,716
Non-current portion	51,256		49,743
Total finance receivables, net	$	83,799	$	80,459

Net finance receivables subject to fair value (a)	$	76,796	$	74,113
Fair value (b)	77,648		72,460

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(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.

The credit quality analysis of consumer receivables at December 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	$	39	$	52	$	98	$	120	$	186	$	91	$	586	0.8	%
61 - 120 days past due	7		10		20		29		40		21		127		0.2
Greater than 120 days past due	10		6		6		9		11		1		43		—
Total past due	56		68		124		158		237		113		756		1.0
Current	812		2,607		6,559		12,689		22,701		27,322		72,690		99.0
Total	$	868	$	2,675	$	6,683	$	12,847	$	22,938	$	27,435	$	73,446	100.0	%

The credit quality analysis of consumer receivables at June 30, 2022 was as follows (in millions):


	Amortized Cost Basis by Origination Year
	Prior to 2018		2018		2019		2020		2021		2022		Total		Percent
Consumer
31 - 60 days past due	$	57	$	68	$	91	$	170	$	113	$	30	$	529	0.8	%
61 - 120 days past due	11		15		23		36		31		7		123		0.2
Greater than 120 days past due	13		5		8		7		6		1		40		—
Total past due	81		88		122		213		150		38		692		1.0
Current	1,838		4,245		8,897		17,696		22,525		13,347		68,548		99.0
Total	$	1,919	$	4,333	$	9,019	$	17,909	$	22,675	$	13,385	$	69,240	100.0	%

The credit quality analysis of dealer financing receivables at December 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	$	391	$	68	$	151	$	45	$	109	$	345	$	1,109	$	6,751	$	7,860	69.7	%
Group II	11		7		26		2		4		54		104		2,689		2,793		24.8
Group III	8		—		1		—		1		20		30		529		559		4.9
Group IV	—		—		4		—		—		6		10		56		66		0.6
Total (a)	$	410	$	75	$	182	$	47	$	114	$	425	$	1,253	$	10,025	$	11,278	100.0	%

__________

(a)Total past due dealer financing receivables at December 31, 2021 were $62 million.

The credit quality analysis of dealer financing receivables at June 30, 2022 was as follows (in millions):


	Amortized Cost Basis by Origination Year														Wholesale Loans
	Dealer Loans
	Prior to 2018		2018		2019		2020		2021		2022		Total				Total		Percent
Group I	$	452	$	155	$	40	$	65	$	225	$	144	$	1,081	$	8,076	$	9,157	76.4	%
Group II	7		22		1		5		10		43		88		2,353		2,441		20.4
Group III	—		—		—		—		4		10		14		331		345		2.9
Group IV	—		2		—		1		2		2		7		32		39		0.3
Total (a)	$	459	$	179	$	41	$	71	$	241	$	199	$	1,190	$	10,792	$	11,982	100.0	%

__________

(a)Total past due dealer financing receivables at June 30, 2022 were $8 million.

An analysis of the allowance for credit losses related to finance receivables for the periods ended June 30 was as follows (in millions):


	Second Quarter 2021						First Half 2021
	Consumer		Non-Consumer		Total		Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	1,170	$	53	$	1,223	$	1,245	$	60	$	1,305
Charge-offs	(55)		(3)		(58)		(152)		(3)		(155)
Recoveries	55		2		57		108		5		113
Provision for/(Benefit from) credit losses	(154)		(12)		(166)		(184)		(22)		(206)
Other (a)	6		(1)		5		5		(1)		4
Ending balance	$	1,022	$	39	$	1,061	$	1,022	$	39	$	1,061


	Second Quarter 2022						First Half 2022
	Consumer		Non-Consumer		Total		Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	826	$	19	$	845	$	903	$	22	$	925
Charge-offs	(61)		(1)		(62)		(123)		(1)		(124)
Recoveries	44		1		45		87		2		89
Provision for/(Benefit from) credit losses	(48)		(8)		(56)		(107)		(13)		(120)
Other (a)	(7)		(2)		(9)		(6)		(1)		(7)
Ending balance	$	754	$	9	$	763	$	754	$	9	$	763

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(a) Primarily represents amounts related to translation adjustments.