Finance Receivables (Tables)

6 Months Ended

Jun. 30, 2023

Receivables [Abstract]

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						Second Quarter 2023
	Consumer		Non-Consumer		Total		Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	826	$	19	$	845	$	863	$	7	$	870
Charge-offs	(61)		(1)		(62)		(78)		—		(78)
Recoveries	44		1		45		38		—		38
Provision for/(Benefit from) credit losses	(48)		(8)		(56)		40		—		40
Other (a)	(7)		(2)		(9)		3		—		3
Ending balance	$	754	$	9	$	763	$	866	$	7	$	873
	First Half 2022						First Half 2023
	Consumer		Non-Consumer		Total		Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	903	$	22	$	925	$	838	$	7	$	845
Charge-offs	(123)		(1)		(124)		(174)		—		(174)
Recoveries	87		2		89		76		1		77
Provision for/(Benefit from) credit losses	(107)		(13)		(120)		118		(1)		117
Other (a)	(6)		(1)		(7)		8		—		8
Ending balance	$	754	$	9	$	763	$	866	$	7	$	873

__________

(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, 2022		June 30, 2023
Consumer
Retail installment contracts, gross	$	67,043	$	70,023
Finance leases, gross	6,765		7,256
Retail financing, gross	73,808		77,279
Unearned interest supplements from Ford and affiliated companies	(2,305)		(2,721)
Consumer finance receivables	71,503		74,558
Non-Consumer
Dealer financing	28,408		30,060
Other financing	1,447		1,689
Non-Consumer finance receivables	29,855		31,749
Total recorded investment	$	101,358	$	106,307
Recorded investment in finance receivables	$	101,358	$	106,307
Allowance for credit losses	(845)		(873)
Total finance receivables, net	$	100,513	$	105,434
Net finance receivables subject to fair value (a)	$	94,090	$	98,566
Fair value (b)	91,410		96,233

__________

(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, 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		2,564		6,149		13,864		18,382		28,825		70,667		98.8
Total	$	942	$	2,640	$	6,265	$	14,091	$	18,579	$	28,986	$	71,503	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		4,093		10,446		14,679		24,613		18,087		73,778		99.0
Total	$	1,942	$	4,172	$	10,627	$	14,849	$	24,822	$	18,146	$	74,558	100.0	%
Gross charge-offs	$	27	$	20	$	37	$	40	$	48	$	2	$	174

Financing Receivables Credit Quality Indicators [Table Text Block]

The credit quality analysis of dealer financing receivables at December 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	$	402	$	148	$	35	$	67	$	185	$	224	$	1,061	$	24,242	$	25,303	89.1	%
Group II	2		21		—		5		2		42		72		2,751		2,823		9.9
Group III	—		—		—		—		—		10		10		233		243		0.9
Group IV	—		—		1		—		—		3		4		35		39		0.1
Total (a)	$	404	$	169	$	36	$	72	$	187	$	279	$	1,147	$	27,261	$	28,408	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
	Dealer Loans
	Prior to 2019		2019		2020		2021		2022		2023		Total		Wholesale Loans		Total		Percent
Group I	$	520	$	32	$	67	$	165	$	83	$	264	$	1,131	$	25,989	$	27,120	90.2	%
Group II	2		—		1		2		3		57		65		2,504		2,569		8.5
Group III	—		—		1		—		1		6		8		301		309		1.1
Group IV	—		1		—		—		—		3		4		58		62		0.2
Total (a)	$	522	$	33	$	69	$	167	$	87	$	330	$	1,208	$	28,852	$	30,060	100.0	%
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

__________

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