Ford Credit Finance Receivables (Tables)

9 Months Ended

Sep. 30, 2022

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


	December 31, 2021		September 30, 2022
Consumer
Retail installment contracts, gross	$	69,148	$	64,529
Finance leases, gross	7,318		6,196
Retail financing, gross	76,466		70,725
Unearned interest supplements	(3,020)		(2,311)
Consumer finance receivables	73,446		68,414
Non-Consumer
Dealer financing	11,278		13,931
Non-Consumer finance receivables	11,278		13,931
Total recorded investment	$	84,724	$	82,345

Recorded investment in finance receivables	$	84,724	$	82,345
Allowance for credit losses	(925)		(760)
Total finance receivables, net	$	83,799	$	81,585

Current portion	$	32,543	$	33,902
Non-current portion	51,256		47,683
Total finance receivables, net	$	83,799	$	81,585

Net finance receivables subject to fair value (a)	$	76,796	$	75,674
Fair value (b)	77,648		73,216

__________

(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.

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		2,607		6,559		12,689		22,701		27,322		72,690		99.0
Total	$	868	$	2,675	$	6,683	$	12,847	$	22,938	$	27,435	$	73,446	100.0	%

The credit quality analysis of consumer receivables at September 30, 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	$	46	$	60	$	85	$	165	$	120	$	63	$	539	0.8	%
61 - 120 days past due	9		12		19		34		30		14		118		0.2
Greater than 120 days past due	10		5		6		7		7		2		37		—
Total past due	65		77		110		206		157		79		694		1.0
Current	1,273		3,320		7,282		15,402		19,954		20,489		67,720		99.0
Total	$	1,338	$	3,397	$	7,392	$	15,608	$	20,111	$	20,568	$	68,414	100.0	%

The credit quality analysis of dealer financing receivables at December 31, 2021 was as follows (in millions):


	Amortized Cost Basis by Origination Year														Wholesale Loans
	Dealer Loans
	Prior to 2017		2017		2018		2019		2020		2021		Total				Total		Percent
Group I	$	391	$	68	$	151	$	45	$	109	$	345	$	1,109	$	6,751	$	7,860	69.7	%
Group II	11		7		26		2		4		54		104		2,689		2,793		24.8
Group III	8		—		1		—		1		20		30		529		559		4.9
Group IV	—		—		4		—		—		6		10		56		66		0.6
Total (a)	$	410	$	75	$	182	$	47	$	114	$	425	$	1,253	$	10,025	$	11,278	100.0	%

__________

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

The credit quality analysis of dealer financing receivables at September 30, 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	$	418	$	153	$	37	$	65	$	196	$	209	$	1,078	$	9,892	$	10,970	78.7	%
Group II	2		22		1		5		—		39		69		2,596		2,665		19.1
Group III	—		—		—		—		—		10		10		250		260		1.9
Group IV	—		—		1		—		—		3		4		32		36		0.3
Total (a)	$	420	$	175	$	39	$	70	$	196	$	261	$	1,161	$	12,770	$	13,931	100.0	%

__________

(a)Total past due dealer financing receivables at September 30, 2022 were $5 million.

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 2021						First Nine Months 2021
	Consumer		Non-Consumer		Total		Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	1,022	$	39	$	1,061	$	1,245	$	60	$	1,305
Charge-offs	(58)		(2)		(60)		(210)		(5)		(215)
Recoveries	50		1		51		158		6		164
Provision for/(Benefit from) credit losses	(58)		(1)		(59)		(242)		(23)		(265)
Other (a)	(9)		—		(9)		(4)		(1)		(5)
Ending balance	$	947	$	37	$	984	$	947	$	37	$	984


	Third Quarter 2022						First Nine Months 2022
	Consumer		Non-Consumer		Total		Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	754	$	9	$	763	$	903	$	22	$	925
Charge-offs	(73)		—		(73)		(196)		(1)		(197)
Recoveries	39		1		40		126		3		129
Provision for/(Benefit from) credit losses	40		(1)		39		(67)		(14)		(81)
Other (a)	(9)		—		(9)		(15)		(1)		(16)
Ending balance	$	751	$	9	$	760	$	751	$	9	$	760

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(a) Primarily represents amounts related to translation adjustments.