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Transfers of Receivables
 9 Months Ended
Sep. 30, 2019
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.
We engage in securitization transactions to fund operations and to maintain liquidity. Our securitization transactions are recorded as asset-backed debt, and the associated assets are not derecognized and continue to be included in our financial statements.
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 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. The asset-backed securities are backed by finance receivables and interests in net investment in operating leases. The assets continue to be consolidated by us. We retain interests in our securitization VIEs, including subordinated securities issued by the VIEs, rights to cash held for the benefit of the securitization investors, and rights to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions.
NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued)

We have no obligation to repurchase or replace any securitized asset that subsequently becomes delinquent in payment or otherwise is in default, except when representations and warranties about the eligibility of the securitized assets are breached, or when certain changes are made to the underlying asset contracts. Securitization investors have no recourse to us or our other assets and have no right to require us to repurchase the investments. We generally have no obligation to provide liquidity or contribute cash or additional assets to the VIEs and do not guarantee any asset-backed securities. We may be required to support the performance of certain securitization transactions, however, by increasing cash reserves.
Securitization transactions that are exposed to interest rate or currency risk may reduce their risks by entering into derivative transactions. In certain instances, we have entered into derivative transactions with the counterparty to protect the counterparty from risks absorbed through its derivative transactions with the securitization entities. See Note 7 for additional information regarding derivatives.
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 financial statements (in billions):
December 31, 2019
Cash and Cash EquivalentsFinance Receivables and Net Investment in Operating Leases (a)Related Debt
(c)
Before Allowance
for Credit Losses		Allowance for
Credit Losses		After Allowance
for Credit Losses
VIE (b)
Retail financing$1.8 $32.6 $0.2 $32.4 $28.0 
Wholesale financing0.9 26.1 — 26.1 13.4 
Finance receivables2.7 58.7 0.2 58.5 41.4 
Net investment in operating leases0.5 14.9 — 14.9 9.5 
Total VIE$3.2 $73.6 $0.2 $73.4 $50.9 
Non-VIE
Retail financing$0.3 $5.7 $— $5.7 $5.1 
Wholesale financing— 0.7 — 0.7 0.6 
Finance receivables0.3 6.4 — 6.4 5.7 
Net investment in operating leases— — — — — 
Total Non-VIE$0.3 $6.4 $— $6.4 $5.7 
Total securitization transactions
Retail financing$2.1 $38.3 $0.2 $38.1 $33.1 
Wholesale financing (d)0.9 26.8 — 26.8 14.0 
Finance receivables3.0 65.1 0.2 64.9 47.1 
Net investment in operating leases0.5 14.9 — 14.9 9.5 
Total securitization transactions$3.5 $80.0 $0.2 $79.8 $56.6 
__________
(a)Unearned interest supplements and residual support are excluded from securitization transactions.
(b)Includes assets to be used to settle the liabilities of the consolidated VIEs.
(c)Includes unamortized discount and debt issuance costs.
(d)The adjusted pool balance of the wholesale finance receivables owned by the securitization trusts was $26.8 billion and the required pool balance was $18.1 billion. As of December 31, 2019, the adjusted pool balance was $8.7 billion higher than the required pool balance.
NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued)
September 30, 2020
Cash and Cash EquivalentsFinance Receivables and Net Investment in Operating Leases (a)Related Debt
(c)
Before Allowance
for Credit Losses		Allowance for
Credit Losses		After Allowance
for Credit Losses
VIE (b)
Retail financing$1.9 $32.0 $0.4 $31.6 $25.2 
Wholesale financing0.2 16.9 — 16.9 10.4 
Finance receivables2.1 48.9 0.4 48.5 35.6 
Net investment in operating leases0.8 14.6 — 14.6 9.2 
Total VIE$2.9 $63.5 $0.4 $63.1 $44.8 
Non-VIE
Retail financing$0.4 $9.1 $0.1 $9.0 $8.3 
Wholesale financing— 0.5 — 0.5 0.1 
Finance receivables0.4 9.6 0.1 9.5 8.4 
Net investment in operating leases— — — — — 
Total Non-VIE$0.4 $9.6 $0.1 $9.5 $8.4 
Total securitization transactions
Retail financing$2.3 $41.1 $0.5 $40.6 $33.5 
Wholesale financing (d)0.2 17.4 — 17.4 10.5 
Finance receivables2.5 58.5 0.5 58.0 44.0 
Net investment in operating leases0.8 14.6 — 14.6 9.2 
Total securitization transactions$3.3 $73.1 $0.5 $72.6 $53.2 
__________
(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.