v3.22.4
Ford Credit Finance Receivables and Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Net finance receivables [Table Text Block]
Ford Credit finance receivables, net at December 31 were as follows (in millions):
 20212022
Consumer  
Retail installment contracts, gross$69,148 $66,954 
Finance leases, gross7,318 6,765 
Retail financing, gross76,466 73,719 
Unearned interest supplements(3,020)(2,305)
Consumer finance receivables73,446 71,414 
Non-Consumer 
Dealer financing11,278 18,054 
Non-Consumer finance receivables11,278 18,054 
Total recorded investment$84,724 $89,468 
Recorded investment in finance receivables$84,724 $89,468 
Allowance for credit losses(925)(845)
Total finance receivables, net$83,799 $88,623 
Current portion$32,543 $38,720 
Non-current portion51,256 49,903 
Total finance receivables, net$83,799 $88,623 
Net finance receivables subject to fair value (a)$76,796 $82,200 
Fair value (b)77,648 79,521 
__________
(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.
Sales-type and Direct Financing Leases, Lease Receivable, Maturity [Table Text Block] The amounts contractually due on Ford Credit’s finance leases at December 31 were as follows (in millions):
 2022
2023$1,448 
20241,317 
20251,136 
2026563 
202766 
Thereafter1 
Total future cash payments4,531 
Less: Present value discount234 
Finance lease receivables$4,297 
Sales-Type and Direct Financing Leases [Table Text Block] The reconciliation from finance lease receivables to finance leases, gross and finance leases, net at December 31 is as follows (in millions):
 20212022
Finance lease receivables$4,631 $4,297 
Unguaranteed residual assets2,605 2,389 
Initial direct costs82 79 
Finance leases, gross7,318 6,765 
Unearned interest supplements from Ford and affiliated companies(274)(307)
Allowance for credit losses(41)(35)
Finance leases, net$7,003 $6,423 
Financing Receivable, Past Due
The credit quality analysis of consumer receivables at December 31, 2021 was as follows (in millions):
Amortized Cost Basis by Origination Year
Prior to 201720172018201920202021TotalPercent
Consumer
31 - 60 days past due$39 $52 $98 $120 $186 $91 $586 0.8 %
61 - 120 days past due7 10 20 29 40 21 127 0.2 
Greater than 120 days past due10 6 6 9 11 1 43 — 
Total past due56 68 124 158 237 113 756 1.0 
Current812 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 December 31, 2022 was as follows (in millions):
Amortized Cost Basis by Origination Year
Prior to 201820182019202020212022TotalPercent
Consumer
31 - 60 days past due$41 $60 $91 $181 $150 $126 $649 0.9 %
61 - 120 days past due9 12 20 39 40 29 149 0.2 
Greater than 120 days past due9 4 5 7 7 6 38 0.1 
Total past due59 76 116 227 197 161 836 1.2 
Current883 2,563 6,137 13,844 18,357 28,794 70,578 98.8 
Total$942 $2,639 $6,253 $14,071 $18,554 $28,955 $71,414 100.0 %
Financing receivable 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 YearWholesale Loans
Dealer Loans
Prior to 201720172018201920202021TotalTotalPercent
Group I$391 $68 $151 $45 $109 $345 $1,109 $6,751 $7,860 69.7 %
Group II11 7 26 2 4 54 104 2,689 2,793 24.8 
Group III8 — 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 December 31, 2022 was as follows (in millions):
Amortized Cost Basis by Origination YearWholesale Loans
Dealer Loans
Prior to 201820182019202020212022TotalTotalPercent
Group I$402 $148 $35 $67 $185 $224 $1,061 $13,888 $14,949 82.8 %
Group II2 21 — 5 2 42 72 2,751 2,823 15.6 
Group III— — — — — 10 10 233 243 1.4 
Group IV— — 1 — — 3 4 35 39 0.2 
Total (a)
$404 $169 $36 $72 $187 $279 $1,147 $16,907 $18,054 100.0 %
__________
(a)Total past due dealer financing receivables at December 31, 2022 were $9 million.
Allowance For Credit Losses on Financing And Loans And Leases Receivable [Table Text Block]
An analysis of the allowance for credit losses related to finance receivables for the years ended December 31 was as follows (in millions):
2021
 ConsumerNon-ConsumerTotal
Allowance for credit losses
Beginning balance$1,245 $60 $1,305 
Charge-offs(272)(3)(275)
Recoveries202 8 210 
Provision for/(Benefit from) credit losses(270)(40)(310)
Other (a)(2)(3)(5)
Ending balance$903 $22 $925 
2022
 ConsumerNon-ConsumerTotal
Allowance for credit losses   
Beginning balance$903 $22 $925 
Charge-offs(278)(1)(279)
Recoveries165 5 170 
Provision for/(Benefit from) credit losses56 (17)39 
Other (a)(8)(2)(10)
Ending balance$838 $7 $845 
__________
(a)Primarily represents amounts related to translation adjustments.
Note: On January 1, 2020, we adopted ASU 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments, which had an impact on the 2020 opening balance of Retained earnings of $202 million.