Finance Receivables (Tables)

9 Months Ended

Sep. 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 September 30 was as follows (in millions):

	Third Quarter 2022						Third Quarter 2023
	Consumer		Non-Consumer		Total		Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	754	$	9	$	763	$	866	$	7	$	873
Charge-offs	(73)		—		(73)		(105)		—		(105)
Recoveries	39		1		40		37		—		37
Provision for/(Benefit from) credit losses	40		(1)		39		75		(1)		74
Other (a)	(9)		—		(9)		(3)		—		(3)
Ending balance	$	751	$	9	$	760	$	870	$	6	$	876
	First Nine Months 2022						First Nine Months 2023
	Consumer		Non-Consumer		Total		Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	903	$	22	$	925	$	838	$	7	$	845
Charge-offs	(196)		(1)		(197)		(279)		—		(279)
Recoveries	126		3		129		113		1		114
Provision for/(Benefit from) credit losses	(67)		(14)		(81)		193		(2)		191
Other (a)	(15)		(1)		(16)		5		—		5
Ending balance	$	751	$	9	$	760	$	870	$	6	$	876

__________

(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		September 30, 2023
Consumer
Retail installment contracts, gross	$	67,043	$	71,240
Finance leases, gross	6,765		7,339
Retail financing, gross	73,808		78,579
Unearned interest supplements from Ford and affiliated companies	(2,305)		(2,967)
Consumer finance receivables	71,503		75,612
Non-Consumer
Dealer financing	28,408		29,366
Other financing	1,447		1,867
Non-Consumer finance receivables	29,855		31,233
Total recorded investment	$	101,358	$	106,845
Recorded investment in finance receivables	$	101,358	$	106,845
Allowance for credit losses	(845)		(876)
Total finance receivables, net	$	100,513	$	105,969
Net finance receivables subject to fair value (a)	$	94,090	$	99,041
Fair value (b)	91,410		96,775

__________

(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 September 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	$	50	$	58	$	140	$	129	$	172	$	96	$	645	0.9	%
61-120 days past due	9		12		30		35		50		28		164		0.2
Greater than 120 days past due	8		4		6		10		10		3		41		—
Total past due	67		74		176		174		232		127		850		1.1
Current	1,296		3,093		8,800		12,892		22,287		26,394		74,762		98.9
Total	$	1,363	$	3,167	$	8,976	$	13,066	$	22,519	$	26,521	$	75,612	100.0	%
Gross charge-offs	$	38	$	30	$	55	$	61	$	81	$	14	$	279

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 September 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	$	491	$	31	$	66	$	159	$	62	$	304	$	1,113	$	25,364	$	26,477	90.2	%
Group II	2		—		2		4		2		50		60		2,384		2,444		8.3
Group III	—		—		—		—		1		6		7		386		393		1.3
Group IV	—		1		—		—		—		2		3		49		52		0.2
Total (a)	$	493	$	32	$	68	$	163	$	65	$	362	$	1,183	$	28,183	$	29,366	100.0	%
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

__________

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