Ford Credit Finance Receivables (Tables)

6 Months Ended

Jun. 30, 2023

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

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

	December 31, 2022		June 30, 2023
Consumer
Retail installment contracts, gross	$	66,954	$	69,920
Finance leases, gross	6,765		7,256
Retail financing, gross	73,719		77,176
Unearned interest supplements	(2,305)		(2,721)
Consumer finance receivables	71,414		74,455
Non-Consumer
Dealer financing	18,054		21,542
Non-Consumer finance receivables	18,054		21,542
Total recorded investment	$	89,468	$	95,997
Recorded investment in finance receivables	$	89,468	$	95,997
Allowance for credit losses	(845)		(873)
Total finance receivables, net	$	88,623	$	95,124
Current portion	$	38,720	$	42,557
Non-current portion	49,903		52,567
Total finance receivables, net	$	88,623	$	95,124
Net finance receivables subject to fair value (a)	$	82,200	$	88,256
Fair value (b)	79,521		85,923

__________

(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, 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	$	41	$	60	$	91	$	181	$	150	$	126	$	649	0.9	%
61 - 120 days past due	9		12		20		39		40		29		149		0.2
Greater than 120 days past due	9		4		5		7		7		6		38		0.1
Total past due	59		76		116		227		197		161		836		1.2
Current	883		2,563		6,137		13,844		18,357		28,794		70,578		98.8
Total	$	942	$	2,639	$	6,253	$	14,071	$	18,554	$	28,955	$	71,414	100.0	%

The credit quality analysis of consumer receivables at June 30, 2023 was as follows (in millions):

	Amortized Cost Basis by Origination Year
	Prior to 2019		2019		2020		2021		2022		2023		Total		Percent
Consumer
31 - 60 days past due	$	61	$	62	$	141	$	127	$	156	$	45	$	592	0.8	%
61 - 120 days past due	11		13		32		34		44		13		147		0.2
Greater than 120 days past due	10		4		8		9		9		1		41		—
Total past due	82		79		181		170		209		59		780		1.0
Current	1,860		4,085		10,430		14,654		24,580		18,066		73,675		99.0
Total	$	1,942	$	4,164	$	10,611	$	14,824	$	24,789	$	18,125	$	74,455	100.0	%
Gross charge-offs	$	27	$	20	$	37	$	40	$	48	$	2	$	174

Financing Receivable Credit Quality Indicators

The credit quality analysis of dealer financing receivables at December 31, 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	$	402	$	148	$	35	$	67	$	185	$	224	$	1,061	$	13,888	$	14,949	82.8	%
Group II	2		21		—		5		2		42		72		2,751		2,823		15.6
Group III	—		—		—		—		—		10		10		233		243		1.4
Group IV	—		—		1		—		—		3		4		35		39		0.2
Total (a)	$	404	$	169	$	36	$	72	$	187	$	279	$	1,147	$	16,907	$	18,054	100.0	%

__________

(a)Total past due dealer financing receivables at December 31, 2022 were $9 million.

The credit quality analysis of dealer financing receivables at June 30, 2023 was as follows (in millions):

	Amortized Cost Basis by Origination Year														Wholesale Loans
	Dealer Loans
	Prior to 2019		2019		2020		2021		2022		2023		Total				Total		Percent
Group I	$	520	$	32	$	67	$	165	$	83	$	247	$	1,114	$	17,488	$	18,602	86.4	%
Group II	2		—		1		2		3		57		65		2,504		2,569		11.9
Group III	—		—		1		—		1		6		8		301		309		1.4
Group IV	—		1		—		—		—		3		4		58		62		0.3
Total (a)	$	522	$	33	$	69	$	167	$	87	$	313	$	1,191	$	20,351	$	21,542	100.0	%
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

__________

(a)Total past due dealer financing receivables at June 30, 2023 were $4 million.

Financing Receivable, Allowance for Credit Loss

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 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

	Second Quarter 2023						First Half 2023
	Consumer		Non-Consumer		Total		Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	863	$	7	$	870	$	838	$	7	$	845
Charge-offs	(78)		—		(78)		(174)		—		(174)
Recoveries	38		—		38		76		1		77
Provision for/(Benefit from) credit losses	40		—		40		118		(1)		117
Other (a)	3		—		3		8		—		8
Ending balance	$	866	$	7	$	873	$	866	$	7	$	873

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(a)    Primarily represents amounts related to translation adjustments.