Finance Receivables (Tables)

3 Months Ended

Mar. 31, 2022

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 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/(benefit from) credit losses	(30)		(10)		(40)
Other (a)	(1)		—		(1)
Ending balance	$	1,170	$	53	$	1,223

	First Quarter 2022
	Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	903	$	22	$	925
Charge-offs	(62)		—		(62)
Recoveries	43		1		44
Provision for/(benefit from) credit losses	(59)		(5)		(64)
Other (a)	1		1		2
Ending balance	$	826	$	19	$	845

__________

(a)Primarily represents amounts related to translation adjustments.

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

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

	December 31, 2021		March 31, 2022
Consumer
Retail installment contracts, gross	$	69,247	$	67,796
Finance leases, gross	7,318		7,079
Retail financing, gross	76,565		74,875
Unearned interest supplements from Ford and affiliated companies	(3,020)		(2,796)
Consumer finance receivables	73,545		72,079
Non-Consumer
Dealer financing	18,197		20,170
Other financing	1,533		1,627
Non-Consumer finance receivables	19,730		21,797
Total recorded investment	$	93,275	$	93,876
Recorded investment in finance receivables	$	93,275	$	93,876
Allowance for credit losses	(925)		(845)
Total finance receivables, net	$	92,350	$	93,031
Net finance receivables subject to fair value (a)	$	85,347	$	86,261
Fair value (b)	86,199		85,485

__________

(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 [Table Text Block]

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		2,608		6,568		12,717		22,730		27,354		72,789		99.0
Total	$	868	$	2,676	$	6,692	$	12,875	$	22,967	$	27,467	$	73,545	100.0	%

The credit quality analysis of consumer receivables at March 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	$	76	$	84	$	116	$	192	$	123	$	9	$	600	0.8	%
61-120 days past due	11		16		20		31		26		1		105		0.2
Greater than 120 days past due	15		6		8		13		1		—		43		—
Total past due	102		106		144		236		150		10		748		1.0
Current	2,565		5,360		10,895		20,346		25,311		6,854		71,331		99.0
Total	$	2,667	$	5,466	$	11,039	$	20,582	$	25,461	$	6,864	$	72,079	100.0	%

Financing Receivables Credit Quality Indicators [Table Text Block]

The credit quality analysis of dealer financing receivables at December 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	$	391	$	68	$	151	$	45	$	109	$	345	$	1,109	$	13,670	$	14,779	81.2	%
Group II	11		7		26		2		4		54		104		2,689		2,793		15.3
Group III	8		—		1		—		1		20		30		529		559		3.1
Group IV	—		—		4		—		—		6		10		56		66		0.4
Total (a)	$	410	$	75	$	182	$	47	$	114	$	425	$	1,253	$	16,944	$	18,197	100.0	%

__________

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

NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

The credit quality analysis of dealer financing receivables at March 31, 2022 was as follows (in millions):

	Amortized Cost Basis by Origination Year
	Dealer Loans
	Prior to 2018		2018		2019		2020		2021		2022		Total		Wholesale Loans		Total		Percent
Group I	$	470	$	155	$	44	$	78	$	232	$	111	$	1,090	$	15,628	$	16,718	82.9	%
Group II	12		26		1		5		13		42		99		2,845		2,944		14.6
Group III	8		—		—		—		5		11		24		423		447		2.2
Group IV	—		5		—		1		2		2		10		51		61		0.3
Total (a)	$	490	$	186	$	45	$	84	$	252	$	166	$	1,223	$	18,947	$	20,170	100.0	%

__________

(a)Total past due dealer financing receivables at March 31, 2022 were $13 million.