FORD MOTOR CREDIT CO LLC, 10-K filed on 2/11/2026
Annual Report
v3.25.4
COVER PAGE - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Jun. 30, 2025
Document Information [Line Items]    
Document Type 10-K  
Document Annual Report true  
Document Period End Date Dec. 31, 2025  
Current Fiscal Year End Date --12-31  
Document Transition Report false  
Entity File Number 1-6368  
Entity Registrant Name Ford Motor Credit Company LLC  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 38-1612444  
Entity Address, Address Line One One American Road  
Entity Address, City or Town Dearborn,  
Entity Address, State or Province MI  
Entity Address, Postal Zip Code 48126  
City Area Code (313)  
Local Phone Number 322-3000  
Entity Well-known Seasoned Issuer Yes  
Entity Voluntary Filers No  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
ICFR Auditor Attestation Flag true  
Document Financial Statement Error Correction [Flag] false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding 0  
Entity Central Index Key 0000038009  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus FY  
Amendment Flag false  
Entity Public Float   $ 0
2.386% Notes due February 17, 2026    
Document Information [Line Items]    
Title of 12(b) Security 2.386% Notes due February 17, 2026*  
Trading Symbol F/26AB  
Security Exchange Name NYSE  
6.860% Notes due June 5, 2026    
Document Information [Line Items]    
Title of 12(b) Security 6.860% Notes due June 5, 2026*  
Trading Symbol F/26A  
Security Exchange Name NYSE  
3.350% Notes due Nine Months or More from the Date of Issue due August 20, 2026    
Document Information [Line Items]    
Title of 12(b) Security 3.350% Notes due Nine Months or More from the Date of Issue due August 20, 2026  
Trading Symbol F/26N  
Security Exchange Name NYSE  
4.867% Notes due August 3, 2027    
Document Information [Line Items]    
Title of 12(b) Security 4.867% Notes due August 3, 2027*  
Trading Symbol F/27A  
Security Exchange Name NYSE  
6.125% Notes due May 15, 2028    
Document Information [Line Items]    
Title of 12(b) Security 6.125% Notes due May 15, 2028*  
Trading Symbol F/28B  
Security Exchange Name NYSE  
3.622% Notes due July 27, 2028    
Document Information [Line Items]    
Title of 12(b) Security 3.622% Notes due July 27, 2028*  
Trading Symbol F/28H  
Security Exchange Name NYSE  
5.625% Notes due Oct. 9, 2028    
Document Information [Line Items]    
Title of 12(b) Security 5.625% Notes due Oct. 9, 2028*  
Trading Symbol F/28D  
Security Exchange Name NYSE  
4.165% Notes due November 21, 2028    
Document Information [Line Items]    
Title of 12(b) Security 4.165% Notes due November 21, 2028*  
Trading Symbol F/28E  
Security Exchange Name NYSE  
5.125% Notes due February 20, 2029    
Document Information [Line Items]    
Title of 12(b) Security 5.125% Notes due February 20, 2029*  
Trading Symbol F/29B  
Security Exchange Name NYSE  
3.778% Notes due September 16, 2029    
Document Information [Line Items]    
Title of 12(b) Security 3.778% Notes due September 16, 2029*  
Trading Symbol F/29E  
Security Exchange Name NYSE  
4.445% Notes due February 14, 2030    
Document Information [Line Items]    
Title of 12(b) Security 4.445% Notes due February 14, 2030*  
Trading Symbol F/30D  
Security Exchange Name NYSE  
5.780% Notes due April 30, 2030    
Document Information [Line Items]    
Title of 12(b) Security 5.780% Notes due April 30, 2030*  
Trading Symbol F/30A  
Security Exchange Name NYSE  
4.066% Notes due August 21, 2030    
Document Information [Line Items]    
Title of 12(b) Security 4.066% Notes due August 21, 2030*  
Trading Symbol F/30F  
Security Exchange Name NYSE  
6.184% Notes due August 29, 2031    
Document Information [Line Items]    
Title of 12(b) Security 6.184% Notes due August 29, 2031*  
Trading Symbol F/30C  
Security Exchange Name NYSE  
4.448% Notes due September 16, 2032    
Document Information [Line Items]    
Title of 12(b) Security 4.448% Notes due September 16, 2032*  
Trading Symbol F/32A  
Security Exchange Name NYSE  
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Detroit, Michigan
v3.25.4
CONSOLIDATED INCOME STATEMENTS - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Financing revenue      
Operating leases $ 4,816 $ 4,217 $ 4,105
Retail financing 6,247 5,637 4,236
Dealer financing 2,603 2,922 2,403
Other financing 166 170 132
Total financing revenue 13,832 12,946 10,876
Depreciation on vehicles subject to operating leases (2,522) (2,482) (2,309)
Interest expense (7,133) (7,583) (6,311)
Net financing margin 4,177 2,881 2,256
Other revenue      
Insurance premiums earned (Note 11) 174 171 119
Fee based revenue and other 100 136 124
Total financing margin and other revenue 4,451 3,188 2,499
Expenses      
Operating expenses 1,689 1,395 1,360
Provision for credit losses (Note 4) 528 417 278
Insurance expenses (Note 11) 86 146 53
Total expenses 2,303 1,958 1,691
Other income/(loss), net (Note 12) 409 424 514
Income before income taxes 2,557 1,654 1,322
Provision for/(Benefit from) income taxes (Note 10) 382 398 (2)
Net income $ 2,175 $ 1,256 $ 1,324
v3.25.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income $ 2,175 $ 1,256 $ 1,324
Other comprehensive income/(loss), net of tax      
Foreign currency translation gains/(losses) 516 (345) 188
Reclassification of accumulated foreign currency translation (gains)/losses to net income 6 (43) 0
Comprehensive income $ 2,697 $ 868 $ 1,512
v3.25.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
ASSETS    
Cash and cash equivalents (Note 3) $ 9,270 $ 9,272
Marketable securities (Note 3) 784 706
Finance receivables, net 119,796 121,950
Net investment in operating leases (Note 5) 26,502 21,689
Notes and accounts receivable from affiliated companies 984 836
Derivative financial instruments (Note 7) 1,528 784
Other assets (Note 8) 3,589 3,055
Total assets 162,453 158,292
LIABILITIES    
Accounts payable (including to affiliated companies of $723 and $481) 1,445 1,684
Debt (Note 9) 141,417 137,868
Deferred income taxes 660 364
Derivative financial instruments (Note 7) 947 1,992
Other liabilities and deferred revenue (Note 8) 3,180 2,627
Total liabilities 147,649 144,535
SHAREHOLDER’S INTEREST    
Shareholder’s interest 5,166 5,166
Accumulated other comprehensive income/(loss) (695) (1,217)
Retained earnings 10,333 9,808
Total shareholder’s interest 14,804 13,757
Total liabilities and shareholder’s interest 162,453 158,292
Retail installment contracts, dealer financing, and other financing    
ASSETS    
Finance receivables, net 111,039 114,069
Finance leases    
ASSETS    
Finance receivables, net $ 8,757 $ 7,881
v3.25.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Allowance for credit losses $ 911 $ 864
ASSETS    
Cash and cash equivalents 9,270 9,272
Finance receivables, net 119,796 121,950
Net investment in operating leases 26,502 21,689
Derivative financial instruments 1,528 784
LIABILITIES    
Debt 141,417 137,868
Derivative financial instruments 947 1,992
Variable Interest Entity, Primary Beneficiary    
ASSETS    
Cash and cash equivalents 2,523 2,494
Finance receivables, net 55,773 60,717
Net investment in operating leases 13,572 13,309
Derivative financial instruments 21 34
LIABILITIES    
Debt 52,054 50,855
Derivative financial instruments 40 100
Affiliated Entity    
Accounts payable $ 723 $ 481
v3.25.4
CONSOLIDATED STATEMENTS OF SHAREHOLDER’S INTEREST - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Shareholder's Interest [Roll Forward]      
Balance at beginning of period $ 13,757 $ 13,389 $ 11,877
Net income 2,175 1,256 1,324
Other comprehensive income/(loss), net of tax 522 (388) 188
Distributions declared (1,650) (500)  
Balance at end of period 14,804 13,757 13,389
Shareholder’s Interest      
Shareholder's Interest [Roll Forward]      
Balance at beginning of period 5,166 5,166 5,166
Balance at end of period 5,166 5,166 5,166
Accumulated Other Comprehensive Income/(Loss)      
Shareholder's Interest [Roll Forward]      
Balance at beginning of period (1,217) (829) (1,017)
Other comprehensive income/(loss), net of tax 522 (388) 188
Balance at end of period (695) (1,217) (829)
Retained Earnings      
Shareholder's Interest [Roll Forward]      
Balance at beginning of period 9,808 9,052 7,728
Net income 2,175 1,256 1,324
Distributions declared (1,650) (500)  
Balance at end of period $ 10,333 $ 9,808 $ 9,052
v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities      
Net income $ 2,175 $ 1,256 $ 1,324
Provision for credit losses 528 417 278
Depreciation and amortization 3,228 3,112 2,900
Amortization of upfront interest supplements (2,579) (2,395) (1,795)
Net change in deferred income taxes 249 276 (617)
Net change in other assets (40) (219) (146)
Net change in other liabilities 181 327 343
All other operating activities 104 375 43
Net cash provided by/(used in) operating activities 3,846 3,149 2,330
Cash flows from investing activities      
Purchases of finance receivables (38,995) (43,536) (41,765)
Principal collections of finance receivables 40,220 38,370 36,343
Purchases of operating lease vehicles (14,047) (11,731) (9,577)
Proceeds from termination of operating lease vehicles 6,704 7,365 8,700
Net change in wholesale receivables and other short-duration receivables 5,166 (4,577) (4,794)
Purchases of marketable securities and other investments (407) (274) (2,039)
Proceeds from sales and maturities of marketable securities and other investments 360 356 2,805
Settlements of derivatives (497) (443) (145)
All other investing activities (119) (91) (84)
Net cash provided by/(used in) investing activities (1,615) (14,561) (10,556)
Cash flows from financing activities      
Proceeds from issuances of long-term debt 48,316 57,202 51,659
Payments of long-term debt (49,108) (45,528) (41,753)
Net change in short-term debt 44 (795) (1,424)
Cash distributions to parent (1,650) (500) 0
All other financing activities (97) (135) (139)
Net cash provided by/(used in) financing activities (2,495) 10,244 8,343
Effect of exchange rate changes on cash, cash equivalents, and restricted cash 281 (267) 158
Net increase/(decrease) in cash, cash equivalents, and restricted cash 17 (1,435) 275
Cash, cash equivalents, and restricted cash at beginning of period (Note 3) 9,360 10,795 10,520
Net increase/(decrease) in cash, cash equivalents, and restricted cash 17 (1,435) 275
Cash, cash equivalents, and restricted cash at end of period (Note 3) $ 9,377 $ 9,360 $ 10,795
v3.25.4
PRESENTATION
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
PRESENTATION PRESENTATION
Principles of Consolidation

For purposes of this report, “Ford Credit,” the “Company,” “we,” “our,” “us,” or similar references mean Ford Motor Credit Company LLC, our consolidated subsidiaries, and our consolidated VIEs of which we are the primary beneficiary, unless the context requires otherwise. We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). Our consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). We reclassified certain prior period amounts in our consolidated financial statements to conform to the current year presentation.

Nature of Operations

We offer a wide variety of automotive financing products to and through automotive dealers throughout the world. Our portfolio consists of finance receivables and net investment in operating leases. We also service the finance receivables and net investment in operating leases we originate and purchase, make loans to Ford affiliates, and provide insurance services related to our financing programs. See Notes 4, 5, and 11 for additional information. We conduct our financing operations directly and indirectly through our subsidiaries and affiliates. We offer substantially similar products and services throughout many different regions, subject to local legal restrictions and market conditions. See Note 13 for key operating data on our business segments and for geographic information on our regions.

The predominant share of our business consists of financing Ford and Lincoln vehicles and supporting Ford and Lincoln dealers. Any extended reduction or suspension of Ford’s production or sale of vehicles due to a decline in consumer demand, work stoppage, governmental action, negative publicity or other event, or significant changes to marketing programs sponsored by Ford, would have an adverse effect on our business.

Certain subsidiaries are subject to regulatory capital requirements that may limit the ability of those subsidiaries to pay dividends.
v3.25.4
ACCOUNTING POLICIES
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
ACCOUNTING POLICIES ACCOUNTING POLICIES
For each accounting topic that is addressed in its own note, the description of the accounting policy may be found in the related note. Other significant remaining accounting policies are described below.

Use of Estimates

The preparation of financial statements requires us to make estimates and assumptions that affect our results. The accounting estimates that are most important to our business involve the allowance for credit losses related to finance receivables, and accumulated depreciation on vehicles subject to operating leases. Estimates are based on assumptions that we believe are reasonable under the circumstances. Due to the inherent uncertainty involved with estimates, actual results may differ.

Foreign Currency

When an entity has monetary assets and liabilities denominated in a currency that is different from its functional currency, we remeasure those assets and liabilities from the transactional currency to the legal entity’s functional currency. The effect of this remeasurement process and the results of our related foreign currency hedging activities are reported in Other income/(loss), net.

Generally, our foreign subsidiaries use the local currency as their functional currency. We translate the assets and liabilities of our foreign subsidiaries from their respective functional currencies to U.S. dollars using end-of-period exchange rates. Changes in the carrying value of these assets and liabilities attributable to fluctuations in exchange rates are recognized in Foreign currency translation gains/(losses), a component of Other comprehensive income/(Ioss), net of tax. Upon sale or upon complete or substantially complete liquidation of an investment in a foreign subsidiary, the amount of accumulated foreign currency translation related to the entity is reclassified to income and recognized as part of the gain or loss on the sale or liquidation of the investment.
NOTE 2. ACCOUNTING POLICIES (Continued)

Fair Value Measurements

Cash equivalents, marketable securities, and derivative financial instruments are remeasured and presented on our financial statements on a recurring basis at fair value, while other assets and liabilities are measured at fair value on a nonrecurring basis.

In measuring fair value, we use various valuation methods and prioritize the use of observable inputs. The use of observable and unobservable inputs and their significance in measuring fair value are reflected in our fair value hierarchy.

•    Level 1 – inputs include quoted prices for identical instruments and are the most observable
•    Level 2 – inputs include quoted prices for similar instruments and observable inputs such as interest rates, currency exchange rates, and yield curves
•    Level 3 – inputs include data not observable in the market and reflect management judgment about the assumptions market participants would use in pricing the instruments

Transfers into and transfers out of the hierarchy levels are recognized as if they had taken place at the end of the reporting period.

Retirement Benefits

We are a participating employer in certain retirement plans that are sponsored by Ford. Ford allocates costs to us under these plans based on the total number of participating or eligible employees at Ford Credit. Further information about these sponsored plans is available in Ford’s Annual Report on Form 10-K for the year ended December 31, 2025, filed separately with the SEC.

Adoption of New Accounting Standards
ASU 2023-09, Improvements to Income Tax Disclosures. We adopted the new standard, which requires additional income tax disclosures for annual reporting periods, and applied the amendments prospectively. Adoption of the new standard did not impact our consolidated income statements, balance sheets, or statements of cash flows. Refer to Note 10 for the additional disclosures required under the standard.

All other ASUs adopted during 2025 did not have a material impact to our consolidated financial statements or financial statement disclosures.

Accounting Standards Issued But Not Yet Adopted

ASU 2024-03, Disaggregation of Income Statement Expenses (“DISE”). In November 2024, the Financial Accounting Standards (“FASB”) issued a new accounting standard to improve the disclosures about an entity’s expenses and address requests from investors for more detailed information about the types of expenses included in commonly presented expense captions. The new standard is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with retrospective application permitted. We are assessing the effect on our consolidated financial statement disclosures; however, adoption will not impact our consolidated income statements, balance sheets, or statements of cash flows.

All other ASUs issued but not yet adopted were assessed and determined to be not applicable or are not expected to have a material impact on our consolidated financial statements or financial statement disclosures.
v3.25.4
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES
 12 Months Ended
Dec. 31, 2025
Cash and Cash Equivalents [Abstract]  
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES
Cash and Cash Equivalents. Included in Cash and cash equivalents are highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of change in value due to interest rate, quoted price, or penalty on withdrawal. A debt security is classified as a cash equivalent if it meets these criteria and if it has a remaining time to maturity of three months or less from the date of purchase. Amounts on deposit and available upon demand, or negotiated to provide for daily liquidity without penalty, are classified as Cash and cash equivalents. Time deposits, certificates of deposit, and money market accounts that meet the above criteria are reported at par value on our consolidated balance sheets.

Marketable Securities. Investments in securities with a maturity date greater than three months at the date of purchase and other securities for which there is more than an insignificant risk of change in value due to interest rate, quoted price, or penalty on withdrawal are classified as Marketable securities. These investments are reported at fair value. We generally measure fair value using prices obtained from pricing services. Pricing methods and inputs to valuation models used by the pricing services depend on the security type (i.e., asset class). Where possible, fair values are generated using market inputs including quoted prices (the closing price in an exchange market), bid prices (the price at which a buyer stands ready to purchase), and other market information. For fixed income securities that are not actively traded, the pricing services use alternative methods to determine fair value for the securities, including quotes for similar fixed income securities, matrix pricing, discounted cash flow using benchmark curves, or other factors. In certain cases, when market data are not available, we may use broker quotes to determine fair value.

An annual review is performed on the security prices received from our pricing services, which includes discussion and analysis of the inputs used by the pricing services to value our securities. We also compare the price of certain securities sold close to the quarter end to the price of the same security at the balance sheet date to ensure the reported fair value is reasonable.

Realized and unrealized gains and losses and interest income on our marketable securities are recorded in Other income/(loss), net. Realized gains and losses are measured using the specific identification method.

The following table categorizes the fair values of cash, cash equivalents, and marketable securities on our consolidated balance sheets at December 31 (in millions):

Fair Value Level20242025
Cash and cash equivalents
United States government1$854 $70 
United States government agencies2400 400 
Non-United States government and agencies2370 1,082 
Corporate debt2339 780 
Total marketable securities classified as cash equivalents1,963 2,332 
Cash, time deposits and money market funds7,309 6,938 
Total cash and cash equivalents$9,272 $9,270 
Marketable securities
United States government1$185 $224 
Non-United States government and agencies279 91 
Corporate debt2252 269 
Other marketable securities2190 200 
Total marketable securities$706 $784 
NOTE 3. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES (Continued)

Cash, Cash Equivalents, and Restricted Cash 

Cash, cash equivalents, and restricted cash as reported in our consolidated statements of cash flows are presented separately on our consolidated balance sheets as follows (in millions):
December 31, 2024December 31, 2025
Cash and cash equivalents$9,272 $9,270 
Restricted cash (a)88 107 
Total cash, cash equivalents, and restricted cash$9,360 $9,377 
__________
(a)Restricted cash is included in Other assets on our consolidated balance sheets and is primarily held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of certain contractual agreements. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions.
v3.25.4
FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES
We manage finance receivables as “consumer” and “non-consumer” portfolios. The receivables are generally secured by the vehicles, inventory, or other property being financed.

Consumer Portfolio. Receivables in this portfolio include products offered to individuals and businesses that finance the acquisition of Ford and Lincoln vehicles from dealers for personal or commercial use. Retail financing includes retail installment contracts for new and used vehicles and finance leases with retail customers, government entities, daily rental companies, and fleet customers.

Non-Consumer Portfolio. Receivables in this portfolio include products offered to automotive dealers and receivables purchased from Ford and its affiliates. The products include:

•Dealer financing – includes wholesale loans to dealers to finance the purchase of vehicle inventory, also known as floorplan financing, as well as loans to dealers to finance working capital and improvements to dealership facilities, finance the purchase of dealership real estate, and finance other dealer programs. Wholesale financing is approximately 97% of our dealer financing.

•Other financing – includes purchased receivables from Ford and its affiliates, primarily related to the sale of parts and accessories to dealers and certain used vehicles from daily rental fleet companies. In addition, we provide financing to Ford for vehicles that Ford leases to its employees. These receivables are excluded from our credit quality reporting since the performance of this group of receivables is generally guaranteed by Ford.

Finance receivables are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses.

For all finance receivables, we define “past due” as any payment, including principal and interest, that is at least 31 days past the contractual due date.

Revenue from finance receivables is recognized using the interest method and includes the accretion of certain direct origination costs that are deferred and interest supplements received from Ford and affiliated companies. The unearned interest supplements on finance receivables are included in Total finance receivables, net on the balance sheets, and the earned interest supplements are included in Total financing revenue on the income statements.

We measure finance receivables at fair value using internal valuation models. These models project future cash flows of financing contracts based on scheduled contract payments (including principal and interest) and assumptions regarding expected credit losses and pre-payment speed. The projected cash flows are discounted to present value at current rates that incorporate present yield curve and credit spread assumptions. The fair value of finance receivables is categorized within Level 3 of the hierarchy.
NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

On a nonrecurring basis, we also measure at fair value retail contracts 120 days past due or deemed to be uncollectible and individual dealer loans probable of foreclosure. We use the fair value of collateral, adjusted for estimated costs to sell, to determine the fair value of these receivables. The collateral for a retail financing or wholesale receivable is the vehicle financed and for dealer loans is real estate or other property.

The fair value of collateral for retail financing receivables is calculated as the outstanding receivable balances multiplied by the average recovery value percentage. The fair value of collateral for wholesale receivables is based on the wholesale market value or liquidation value for new and used vehicles. The fair value of collateral for dealer loans is determined by reviewing various appraisals, which include total adjusted appraised value of land and improvements, alternate use appraised value, broker’s opinion of value, and purchase offers.

Notes and accounts receivable from affiliated companies are presented separately on the balance sheets. These receivables are based on intercompany relationships and the balances are settled regularly. We do not assess these receivables for potential credit losses, nor are they subjected to aging analysis, credit quality reviews, or other formal assessments. As a result, Notes and accounts receivable from affiliated companies are not subject to the following disclosures contained herein.

Finance Receivables Classification

Finance receivables are accounted for as held for investment (“HFI”) if we have the intent and ability to hold the receivables for the foreseeable future or until maturity or payoff. The determination of intent and ability to hold for the foreseeable future is highly judgmental and requires us to make good faith estimates based on information available at the time of origination or purchase. If we do not have the intent and ability to hold the receivables, then the receivables are classified as held for sale (“HFS”).

Each quarter, we make a determination of whether it is probable that finance receivables originated or purchased during the quarter will be held for the foreseeable future based on historical receivables sale experience, internal forecasts and budgets, as well as other relevant, reliable information available through the date of evaluation. For purposes of this determination, probable means at least 70% likely and, consistent with our budgeting and forecasting period, we define foreseeable future to mean twelve months. We classify receivables as HFI or HFS on a receivable-by-receivable basis. Specific receivables included in off-balance sheet sale transactions are generally not identified until the month in which the sale occurs.

Held-for-Investment. Finance receivables classified as HFI are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses. Cash flows from finance receivables that were originally classified as HFI are recorded as an investing activity since GAAP requires the statement of cash flows presentation to be based on the original classification of the receivables.

Held-for-Sale. Finance receivables classified as HFS are carried at the lower of cost or fair value. Cash flows resulting from the origination or purchase and sale of HFS receivables are recorded as an operating activity. Once a decision has been made to sell receivables that were originally classified as HFI, the receivables are reclassified as HFS and carried at the lower of cost or fair value. The valuation adjustment, if any, is recorded in Other income/(loss), net to recognize the receivables at the lower of cost or fair value.
NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Finance Receivables, Net

Total finance receivables, net at December 31 were as follows (in millions):
20242025
Consumer
Retail installment contracts, gross$79,573 $80,584 
Finance leases, gross8,357 9,274 
Retail financing, gross87,930 89,858 
Unearned interest supplements from Ford and affiliated companies(4,598)(4,486)
   Consumer finance receivables 83,332 85,372 
Non-Consumer
Dealer financing (a)37,384 32,933 
Other financing (b)2,098 2,402 
Non-Consumer finance receivables 39,482 35,335 
Total recorded investment (c)$122,814 $120,707 
Recorded investment in finance receivables$122,814 $120,707 
Allowance for credit losses(864)(911)
Total finance receivables, net$121,950 $119,796 
Net finance receivables subject to fair value (d)$114,069 $111,039 
Fair value 113,545 111,716 
__________
(a)Includes $7.1 billion and $6.0 billion at December 31, 2024 and 2025, respectively, of receivables generated by divisions and affiliates of Ford in connection with vehicle inventories released from Ford and in transit to the destination dealers. Interest earned from Ford and affiliated companies associated with receivables from gate-released vehicles in transit to dealers for the years ended December 31, 2023, 2024, and 2025 was $640 million, $716 million, and $619 million, respectively. Balances at December 31, 2024 and 2025, also include $988 million and $747 million, respectively, of dealer financing receivables with entities (primarily dealers) that are reported as consolidated subsidiaries of Ford. For the years ended December 31, 2023, 2024, and 2025, the interest earned on receivables from consolidated subsidiaries of Ford to which we provide dealer financing was $19 million, $16 million, and $13 million, respectively.
(b)Primarily represents other financing receivables with Ford, which includes amounts associated with purchased receivables and receivables associated with the financing of vehicles that Ford leases to employees.
(c)Earned interest supplements on consumer and non-consumer receivables from Ford and affiliated companies totaled $2.3 billion, $2.9 billion, and $3.0 billion for the years ended December 31, 2023, 2024, and 2025, respectively. Cash received from interest supplements totaled $3.0 billion, $4.3 billion, and $2.8 billion for the years ended December 31, 2023, 2024, and 2025, respectively. Interest supplements due from Ford included in Notes and accounts receivable from affiliated companies totaled $318 million, $269 million, and $343 million for the years ended December 31, 2023, 2024, and 2025, respectively, and are non-cash investing transactions in our consolidated statement of cash flows.
(d)Net finance receivables subject to fair value exclude finance leases.

At December 31, 2024 and 2025, accrued interest was $336 million and $315 million, respectively, which we report in Other assets on our consolidated balance sheets.

Included in the recorded investment in finance receivables were consumer and non-consumer receivables that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information.
NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Finance Leases

Finance leases are comprised of sales-type and direct financing leases. These financings include primarily lease plans for terms of 24 to 60 months. In limited cases, a customer may extend the lease term. Early terminations of leases may also occur at the customer’s request subject to approval. We offer financing products in which the customer may be required to pay any shortfall, or may receive as payment any excess amount between the fair market value and the contractual vehicle value at the end of the term, which are classified as finance leases. In some markets, we finance a vehicle with a series of monthly payments followed by a single balloon payment or the option for the customer to return the vehicle to Ford Credit; these arrangements containing a purchase option are classified as finance leases.

The amounts contractually due on finance leases at December 31, 2025 were as follows (in millions):

Finance Lease Receivables
20262027202820292030ThereafterTotal
Contractual maturity$2,089 $1,975 $1,724 $1,068 $148 $6 $7,010 
Less: Present value discount602 
   Total finance lease receivables $6,408 

The reconciliation from finance lease receivables to finance leases, gross and finance leases, net at December 31 is as follows (in millions):
20242025
Finance lease receivables$5,367 $6,408 
Unguaranteed residual assets2,883 2,738 
Initial direct costs107 128 
   Finance leases, gross8,357 9,274 
Unearned interest supplements from Ford and affiliated companies(437)(470)
Allowance for credit losses(39)(47)
   Finance leases, net$7,881 $8,757 

Financing revenue from finance leases was $381 million, $515 million, and $576 million for the years ended December 31, 2023, 2024, and 2025, respectively, and is included in Retail financing on our consolidated income statements.

Credit Quality

Consumer Portfolio. When originating consumer receivables, we use a proprietary scoring system that measures credit quality using information in the credit application, proposed contract terms, credit bureau data, and other information.  After a proprietary risk score is generated, we decide whether to purchase a contract using a decision process based on a judgmental evaluation of the applicant, the credit application, the proposed contract terms, credit bureau information (e.g., FICO score), proprietary risk score, and other information.  Our evaluation emphasizes the applicant’s ability to pay and creditworthiness focusing on payment, affordability, applicant credit history, and stability as key considerations. 

After origination, we review the credit quality of retail financing based on customer payment activity. As each customer develops a payment history, we use an internally developed behavioral scoring model to assist in determining the best collection strategies, which allows us to focus collection activity on higher-risk accounts. These models are used to refine our risk-based staffing model to ensure collection resources are aligned with portfolio risk. Based on data from this scoring model, contracts are categorized by collection risk. Our collection models evaluate several factors, including origination characteristics, updated credit bureau data, and payment patterns.
NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Credit quality ratings for consumer receivables are based on aging. Receivables over 60 days past due are in intensified collection status.

The credit quality analysis of consumer receivables at December 31, 2024 and gross charge-offs during the year ended December 31, 2024 were as follows (in millions):
Amortized Cost Basis by Origination Year
Prior to 202020202021202220232024TotalPercent
Consumer
31-60 days past due$43 $93 $104 $187 $242 $203 $872 1.0 %
Greater than 60 days past due15 27 35 57 82 59 275 0.4 
Total past due58 120 139 244 324 262 1,147 1.4 
Current788 3,162 5,465 12,298 24,189 36,283 82,185 98.6 
Total$846 $3,282 $5,604 $12,542 $24,513 $36,545 $83,332 100.0 %
Gross charge-offs$46 $58 $71 $152 $191 $50 $568 

The credit quality analysis of consumer receivables at December 31, 2025 and gross charge-offs during the year ended December 31, 2025 were as follows (in millions):
Amortized Cost Basis by Origination Year
Prior to 202120212022202320242025TotalPercent
Consumer
31-60 days past due$61 $65 $139 $228 $275 $166 $934 1.1 %
Greater than 60 days past due21 24 51 75 89 60 320 0.4 
Total past due82 89 190 303 364 226 1,254 1.5 
Current1,139 2,206 6,299 15,096 26,754 32,624 84,118 98.5 
Total$1,221 $2,295 $6,489 $15,399 $27,118 $32,850 $85,372 100.0 %
Gross charge-offs$54 $54 $124 $187 $205 $42 $666 

Non-Consumer Portfolio. We extend credit to dealers primarily in the form of lines of credit to purchase new Ford and Lincoln vehicles as well as used vehicles. Payment is typically required when the dealer has sold the vehicle. Each non‑consumer lending request is evaluated by considering the borrower’s financial condition and the underlying collateral securing the loan. We use a proprietary model to assign each dealer a risk rating. This model uses historical dealer performance data to identify key factors about a dealer that we consider most significant in predicting a dealer’s ability to meet its financial obligations. We also consider numerous other financial and qualitative factors of the dealer’s operations, including capitalization and leverage, liquidity and cash flow, profitability, and credit history with ourselves and other creditors.

Dealers are assigned to one of four groups according to risk ratings as follows:

•Group I – strong to superior financial metrics
•Group II – fair to favorable financial metrics
•Group III – marginal to weak financial metrics
•Group IV – poor financial metrics, including dealers classified as uncollectible

We generally suspend credit lines and extend no further funding to dealers classified in Group IV.
NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

We regularly review our model to confirm the continued business significance and statistical predictability of the model and may make updates to improve the performance of the model. In addition, we regularly audit dealer inventory and dealer sales records to verify that the dealer is in possession of the financed vehicles and is promptly paying each receivable following the sale of the financed vehicle. The frequency of on-site vehicle inventory audits depends primarily on the dealer’s risk rating. Under our policies, on-site vehicle inventory audits of low-risk dealers are conducted only as circumstances warrant. On-site vehicle inventory audits of higher-risk dealers are conducted with increased frequency based primarily on the dealer’s risk rating, but also considering the results of our electronic monitoring of the dealer’s performance, including daily payment verifications and monthly analyses of the dealer’s financial statements, payoffs, aged inventory, over credit line, and delinquency reports. We typically perform a credit review of each dealer annually and more frequently review certain dealers based on the dealer’s risk rating and total exposure. We adjust the dealer’s risk rating, if necessary. The credit quality of dealer financing receivables is evaluated based on our internal dealer risk rating analysis. A dealer has the same risk rating for all of its dealer financing regardless of the type of financing.

The credit quality analysis of dealer financing receivables at December 31, 2024 and gross charge-offs during the year ended December 31, 2024 were as follows (in millions):
Amortized Cost Basis by Origination Year
Dealer Loans
Prior to 202020202021202220232024TotalWholesale LoansTotalPercent
Group I$270 $63 $97 $47 $231 $245 $953 $33,345 $34,298 91.7 %
Group II13 — 3 1 28 31 76 2,494 2,570 6.9 
Group III— — 2 — 1 4 7 462 469 1.3 
Group IV— — — — — 1 1 46 47 0.1 
Total (a)$283 $63 $102 $48 $260 $281 $1,037 $36,347 $37,384 100.0 %
Gross charge-offs$1 $— $— $— $— $— $1 $6 $7 
__________
(a)Total past due dealer financing receivables at December 31, 2024 were $8 million. 

The credit quality analysis of dealer financing receivables at December 31, 2025 and gross charge-offs during the year ended December 31, 2025 were as follows (in millions):
Amortized Cost Basis by Origination Year
Dealer Loans
Prior to 202120212022202320242025TotalWholesale LoansTotalPercent
Group I$269 $68 $31 $149 $78 $268 $863 $27,306 $28,169 85.5 %
Group II25 8 4 33 46 44 160 3,979 4,139 12.6 
Group III1 — — 2 1 11 15 584 599 1.8 
Group IV— — — — — 2 2 24 26 0.1 
Total (a)$295 $76 $35 $184 $125 $325 $1,040 $31,893 $32,933 100.0 %
Gross charge-offs$— $— $— $1 $— $— $1 $10 $11 
__________
(a)Total past due dealer financing receivables at December 31, 2025 were $8 million.

Non-Accrual of Revenue. The accrual of financing revenue is discontinued at the time a receivable is determined to be uncollectible or when it is 90 days past due. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance.
NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Loan Modifications. Consumer and non-consumer receivables that have a modified interest rate and/or a term extension (including receivables that were modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code) are typically considered to be loan modifications. We do not grant modifications to the principal balance of our receivables. If a receivable is modified in a reorganization proceeding, all payment requirements of the reorganization plan need to be met before remaining balances are forgiven.

During the collection process, we may offer a term extension to a customer experiencing financial difficulty. During the extension period, finance charges continue to accrue. If the customer's financial difficulty is not temporary, but we believe the customer is willing and able to repay their loan at a lower payment amount, we may offer to modify the interest rate and/or extend the term in order to lower the scheduled monthly payment. In those cases, the outstanding balance generally remains unchanged. The use of interest rate modifications and term extensions helps us mitigate financial loss. Term extensions may assist in cases where we believe the customer will recover from short-term financial difficulty and resume regularly scheduled payments. Before offering an interest rate modification or term extension, we evaluate and take into account the capacity of the customer to meet the revised payment terms. Although the granting of an extension could delay the eventual charge-off of a receivable, we are typically able to repossess and sell the related collateral, thereby mitigating the loss. The effect of most loan modifications made to borrowers experiencing financial difficulty is included in the historical trends used to measure the allowance for credit losses. A loan modification that improves the delinquency status of a borrower reduces the probability of default, which results in a lower allowance for credit losses. At December 31, 2025, an insignificant portion of our total finance receivables portfolio had been granted a loan modification and these modifications are generally treated as a continuation of the existing loan.

Allowance for Credit Losses

The allowance for credit losses represents our estimate of the lifetime expected credit losses inherent in finance receivables as of the balance sheet date. The adequacy of the allowance for credit losses is assessed quarterly.

Adjustments to the allowance for credit losses are made by recording charges to Provision for credit losses on our consolidated income statements. The uncollectible portion of a finance receivable is charged to the allowance for credit losses at the earlier of when an account is deemed to be uncollectible or when an account is 120 days delinquent, taking into consideration the financial condition of the customer or borrower, the value of the collateral, recourse to guarantors, and other factors.

Charge-offs on finance receivables include uncollected amounts related to principal, interest, late fees, and other allowable charges. Recoveries on finance receivables previously charged off as uncollectible are credited to the allowance for credit losses. In the event we repossess the collateral, the receivable is charged off and the collateral is recorded at its estimated fair value less costs to sell and reported in Other assets on our consolidated balance sheets.

Consumer Portfolio

For consumer receivables that share similar risk characteristics such as product type, initial credit risk, term, vintage, geography, and other relevant factors, we estimate the lifetime expected credit loss allowance based on a collective assessment using measurement models and management judgment. The lifetime expected credit losses for the receivables is determined by applying probability of default and loss given default assumptions to monthly expected exposures, then discounting these cash flows to present value using the receivable’s original effective interest rate or the current effective interest rate for a variable rate receivable. Probability of default models are developed from internal risk scoring models taking into account the expected probability of payment and time to default, adjusted for macroeconomic outlook and recent performance. The models consider factors such as risk evaluation at the time of origination, historical trends in credit losses, and the composition and recent performance of the present portfolio (including vehicle brand, term, risk evaluation, and new/used vehicles). The loss given default is the percentage of the expected balance due at default that is not recoverable, taking into account the expected collateral value and trends in recoveries (including key metrics such as delinquencies, repossessions, and bankruptcies). Monthly exposures are equal to the receivables’ expected outstanding principal and interest balance.
NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

The allowance for credit losses incorporates forward-looking macroeconomic conditions for baseline, upturn, and downturn scenarios. Three separate credit loss allowances are calculated from these scenarios. They are then probability-weighted to determine the quantitative estimate of the credit loss allowance recognized in the financial statements. We use forecasts from a third party that revert to a long-term historical average after a reasonable and supportable forecasting period, which is specific to the particular macroeconomic variable and which varies by market. We update the forward-looking macroeconomic forecasts quarterly.

If management does not believe the models reflect lifetime expected credit losses for the portfolio, an adjustment is made to reflect management judgment regarding qualitative factors, including economic uncertainty, observable changes in portfolio performance, and other relevant factors.

On an ongoing basis, we review and periodically update our models, including macroeconomic factors, the selection of macroeconomic scenarios, and their weighting, to ensure they reflect the risk of the portfolio.

Non-Consumer Portfolio

Dealer financing is evaluated on an individual dealer basis by segmenting dealers by risk characteristics (such as the amount of the loans, the nature of the collateral, and the financial status of the dealer) to determine if an individual dealer requires a specific allowance for credit loss. If required, the allowance is based on the present value of the expected future cash flows of the dealer’s receivables discounted at the loans’ original effective interest rate or the fair value of the collateral adjusted for estimated costs to sell.

For the remaining dealer financing, we estimate an allowance for credit losses on a collective basis.

Wholesale Loans. We estimate the allowance for credit losses for wholesale loans based on historical LTR ratios, expected future cash flows, and the fair value of collateral. The LTR model is based on the most recent years of history. An LTR ratio is calculated by dividing credit losses (i.e., charge-offs net of recoveries) by average net finance receivables, excluding allowance for credit losses. The average LTR ratio is multiplied by the end-of-period balances, representing the lifetime expected credit loss reserve.

Dealer Loans. We use a weighted-average remaining maturity method to estimate the lifetime expected credit loss reserve for dealer loans. The loss model is based on the industrywide commercial real estate credit losses, adjusted to factor in the historical credit losses for our dealer loans portfolio. The expected credit loss is calculated under different macroeconomic scenarios that are weighted to provide the total lifetime expected credit loss.

After establishing the collective and specific allowance for credit losses, if management believes the allowance does not reflect all losses inherent in the portfolio due to changes in recent economic trends and conditions, or other relevant forward-looking economic factors, an adjustment is made based on management judgment.

An analysis of the allowance for credit losses related to finance receivables for the years ended December 31 was as follows (in millions):
20242025
ConsumerNon-ConsumerTotalConsumerNon-ConsumerTotal
Allowance for credit losses
Beginning balance$879 $3 $882 $860 $4 $864 
Charge-offs (568)(7)(575)(666)(11)(677)
Recoveries160 3 163 177 3 180 
Provision for credit losses412 5 417 516 12 528 
Other (a)(23)— (23)15 1 16 
Ending balance$860 $4 $864 $902 $9 $911 
_________
(a)Primarily represents amounts related to foreign currency translation adjustments.
NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

For the year ended December 31, 2025, the allowance for credit losses increased $47 million, primarily reflecting economic outlook assumptions.
v3.25.4
NET INVESTMENT IN OPERATING LEASES
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
NET INVESTMENT IN OPERATING LEASES NET INVESTMENT IN OPERATING LEASES
Net investment in operating leases consists primarily of lease contracts for vehicles with individuals, daily rental companies, and fleet customers with terms of 60 months or less. Payment extensions may be requested by the customer and are generally limited to a maximum of six months over the term of the lease.  Term extensions may also be requested by the customer. Term and payment extensions in total generally do not exceed twelve months. A lease can be terminated at any time by satisfying the obligations under the lease agreement. Early termination programs may be occasionally offered to eligible lessees. At the end of the lease, the customer returns the vehicle to the dealer or may have the option to buy the leased vehicle. In the case of a contract default and repossession, the customer typically remains liable for any deficiency between net auction proceeds and the defaulted contract obligations, including any repossession-related expenses. Included in Net investment in operating leases are net investment in operating leases that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information.

Revenue from rental payments received on operating leases is recognized on a straight-line basis over the term of the lease. The accrual of revenue on operating leases is discontinued at the time an account is determined to be uncollectible.

We receive interest supplements and residual support payments on certain leasing transactions under agreements with Ford. We recognize these upfront collections from Ford and other vehicle acquisition costs as part of Net investment in operating leases, which are amortized to Depreciation on vehicles subject to operating leases over the term of the lease contract. Unearned interest supplements and residual support included in Net investment in operating leases at December 31, 2024 and 2025 was $1.9 billion and $2.3 billion, respectively. Earned interest supplements and residual support costs included in Depreciation on vehicles subject to operating leases for the years ended December 31, 2023, 2024, and 2025 was $0.9 billion, $1.0 billion, and $1.3 billion, respectively. Interest supplements and residual support cash received totaled $1.1 billion, $1.6 billion, and $1.7 billion for the years ended December 31, 2023, 2024, and 2025, respectively. Interest supplements due from Ford included in Notes and accounts receivable from affiliated companies totaled $110 million, $152 million, and $179 million for the years ended December 31, 2023, 2024, and 2025, respectively, and is a non-cash investing transaction in our consolidated statement of cash flows.

At the time of purchase, we establish the expected residual value for each vehicle, considering recent auction values, return volumes for our leased vehicles, industrywide used vehicle prices, marketing incentive plans, and vehicle quality data, and benchmark to third-party data depending on availability. Depreciation expense for vehicles under operating leases is then recognized on a straight-line basis, with the associated accumulated depreciation reducing the vehicle's value to its estimated residual value by the end of the scheduled lease term. Our depreciation for leased vehicles is evaluated regularly, using third-party data, and considering factors such as projected residual values at lease termination (including residual value support payments from Ford), the estimated number of vehicles that will be returned to us, and historical early termination rates due to customer defaults. Depreciation expense adjustments, reflecting revised residual value estimates, are applied prospectively on a straight-line basis. We monitor residual values monthly and review accumulated depreciation accuracy quarterly. Our policy is to promptly sell off-lease vehicles. When a vehicle is sold, the difference between net book value and proceeds, plus any lease termination fees (for example, variable lease payments such as excess wear and tear or mileage charges), are recorded as adjustments to Depreciation on vehicles subject to operating leases.

We evaluate the carrying value of held-and-used long-lived asset groups (such as vehicles subject to operating leases) for potential impairment when we determine a triggering event has occurred. When a triggering event occurs, a test for recoverability is performed by comparing projected undiscounted future cash flows to the carrying value of the asset group. If the test for recoverability identifies a possible impairment, the asset group’s fair value is measured in accordance with the fair value measurement framework. An impairment charge is recognized for the amount by which the carrying value of the asset group exceeds its estimated fair value. For the periods presented, we have not recorded any impairment charges.
NOTE 5. NET INVESTMENT IN OPERATING LEASES (Continued)

Net investment in operating leases at December 31 was as follows (in millions):
20242025
Vehicles, at cost (a)$25,424 $30,639 
Accumulated depreciation(3,735)(4,137)
Net investment in operating leases$21,689 $26,502 
__________
(a)Includes vehicle acquisition costs less interest supplements and residual support payments we receive on certain leasing transactions under agreements with Ford and affiliated companies, and deferral method investment tax credits.

The amounts contractually due on our operating leases at December 31, 2025 were as follows (in millions):
20262027202820292030Total
Operating lease payments$4,541 $3,181 $1,586 $404 $20 $9,732 

Operating leases are generally pre-payable without penalty which may result in actual amounts paid to differ from amounts contractually due.
We have a sale-leaseback agreement with Ford primarily for vehicles that Ford leases to employees of Ford and its subsidiaries. The financing we provide under this agreement is reflected on our balance sheets in Total finance receivables, net. The revenue related to these agreements is reflected in Other financing.
v3.25.4
TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES
 12 Months Ended
Dec. 31, 2025
Transfers and Servicing [Abstract]  
TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES
We securitize finance receivables and net investment in operating leases through a variety of programs using amortizing, variable funding, and revolving structures. We also sell finance receivables or pledge them as collateral in certain transactions outside of the United States, in other types of structured financing transactions. Due to the similarities between securitization and structured financing, we refer to structured financings as securitization transactions. Our securitization programs are targeted to institutional investors in both public and private transactions in capital markets primarily in the United States, Canada, Mexico, Germany, Italy, the United Kingdom, and China.

The finance receivables sold for legal purposes and net investment in operating leases included in securitization transactions are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. They are not available to pay our other obligations or the claims of our other creditors. The debt is the obligation of our consolidated securitization entities and not the obligation of Ford Credit or our other subsidiaries. We hold the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions.

We use special purpose entities (“SPEs”) to issue asset-backed securities in our securitization transactions. We have deemed most of these SPEs to be VIEs of which we are the primary beneficiary, and therefore, are consolidated. The SPEs are established for the sole purpose of financing the securitized financial assets. The SPEs are generally financed through the issuance of notes or commercial paper into the public or private markets or directly with conduits.

We continue to recognize our financial assets related to our sales of receivables when the financial assets are sold to a consolidated VIE or a consolidated voting interest entity. We derecognize our financial assets when the financial assets are sold to a non-consolidated entity and we do not maintain control over the financial assets.
NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued)

A VIE is an entity that either (i) has insufficient equity to finance its activities without additional subordinated financial support, or (ii) has equity investors who lack the characteristics of a controlling financial interest. We consolidate VIEs of which we are the primary beneficiary. We consider ourselves the primary beneficiary of a VIE when we have both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. Assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims against our general assets. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIEs.

We have the power to direct significant activities of our SPEs when we have the ability to exercise discretion in the servicing of financial assets, issue additional debt, exercise a unilateral call option, add assets to revolving structures, or control investment decisions. We generally retain a portion of the economic interests in the asset-backed securitization transactions, which could be retained in the form of a portion of the senior interests, the subordinated interests, cash reserve accounts, residual interests, and servicing rights. The transfers of assets in our securitization transactions do not qualify for accounting sale treatment.

The transactions create and pass along risks to the variable interest holders, depending on the assets securing the debt and the specific terms of the transactions. We aggregate and analyze the asset-backed securitization transactions based on the risk profile of the product and the type of funding structure, including:

•Retail financing – consumer credit risk and pre-payment risk;
•Wholesale financing – dealer credit risk and Ford risk, as the receivables owned by the VIEs primarily arise from the financing provided by us to Ford-franchised dealers; therefore, the collections depend upon the sale of Ford vehicles; and
•Net investment in operating leases – vehicle residual value risk, consumer credit risk, and pre-payment risk.

As residual interest holder, we are exposed to the underlying residual and credit risk of the collateral and are exposed to interest rate risk in some transactions. The amount of risk absorbed by our residual interests generally is represented by and limited to the amount of overcollateralization of the assets securing the debt and any cash reserves.

We have no obligation to repurchase or replace any securitized asset that subsequently becomes delinquent in payment or otherwise is in default, except when representations and warranties about the eligibility of the securitized assets are breached, or when certain changes are made to the underlying asset contracts. Securitization investors have no recourse to us or our other assets other than as provided above and have no right to require us to repurchase the asset-backed securities. We generally have no obligation to provide liquidity or contribute cash or additional assets to the VIEs and do not guarantee any asset-backed securities. We may choose to support the performance of certain securitization transactions, however, by increasing cash reserves.

Although not contractually required, we regularly support our wholesale securitization programs by repurchasing receivables of a dealer from a VIE when the dealer’s performance is at risk, which transfers the corresponding risk of loss from the VIE to us. In order to continue to fund the wholesale receivables, we also may contribute additional cash or wholesale receivables if the collateral falls below the required levels. The balance of cash related to these contributions was zero at both December 31, 2024 and 2025, and was zero for all of 2024 and 2025.
NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued)

Most of our securitization transactions utilize VIEs. The following tables show the assets and debt related to our securitization transactions that were included in our consolidated financial statements at December 31 (in billions):
2024
Cash and Cash EquivalentsFinance Receivables and Net Investment in Operating Leases (a)Related Debt
(c)
Before Allowance
for Credit Losses		Allowance for
Credit Losses		After Allowance
for Credit Losses
VIE (b)
Retail financing $1.7 $37.0 $(0.3)$36.7 $31.6 
Wholesale financing0.3 24.0 — 24.0 10.8 
Finance receivables2.0 61.0 (0.3)60.7 42.4 
Net investment in operating leases0.5 13.3 — 13.3 8.5 
Total VIE$2.5 $74.3 $(0.3)$74.0 $50.9 
Non-VIE
Retail financing$0.5 $10.6 $(0.1)$10.5 $9.3 
Wholesale financing— 0.4 — 0.4 0.2 
Finance receivables0.5 11.0 (0.1)10.9 9.5 
Net investment in operating leases— — — — — 
Total Non-VIE$0.5 $11.0 $(0.1)$10.9 $9.5 
Total securitization transactions
Retail financing$2.2 $47.6 $(0.4)$47.2 $40.9 
Wholesale financing 0.3 24.4 — 24.4 11.0 
Finance receivables2.5 72.0 (0.4)71.6 51.9 
Net investment in operating leases0.5 13.3 — 13.3 8.5 
Total securitization transactions$3.0 $85.3 $(0.4)$84.9 $60.4 
__________
(a)Unearned interest supplements and residual support are excluded from securitization transactions.
(b)Includes assets to be used to settle the liabilities of the consolidated VIEs.
(c)Includes unamortized discount and debt issuance costs.
NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued)

2025
Cash and Cash EquivalentsFinance Receivables and Net Investment in Operating Leases (a)Related Debt
(c)
Before Allowance
for Credit Losses		Allowance for
Credit Losses		After Allowance
for Credit Losses
VIE (b)
Retail financing$1.7 $36.2 $(0.3)$35.9 $29.9 
Wholesale financing0.2 19.9 — 19.9 13.5 
Finance receivables1.9 56.1 (0.3)55.8 43.4 
Net investment in operating leases0.6 13.6 — 13.6 8.7 
Total VIE$2.5 $69.7 $(0.3)$69.4 $52.1 
Non-VIE
Retail financing$0.4 $7.6 $(0.1)$7.5 $7.0 
Wholesale financing— 0.4 — 0.4 0.4 
Finance receivables0.4 8.0 (0.1)7.9 7.4 
Net investment in operating leases— — — — — 
Total Non-VIE$0.4 $8.0 $(0.1)$7.9 $7.4 
Total securitization transactions
Retail financing$2.1 $43.8 $(0.4)$43.4 $36.9 
Wholesale financing0.2 20.3 — 20.3 13.9 
Finance receivables2.3 64.1 (0.4)63.7 50.8 
Net investment in operating leases0.6 13.6 — 13.6 8.7 
Total securitization transactions$2.9 $77.7 $(0.4)$77.3 $59.5 
__________
(a)Unearned interest supplements and residual support are excluded from securitization transactions.
(b)Includes assets to be used to settle the liabilities of the consolidated VIEs.
(c)Includes unamortized discount and debt issuance costs.

Interest expense related to securitization debt for the years ended December 31 was as follows (in millions):
202320242025
VIE$1,872 $2,165 $2,027 
Non-VIE591 610 466 
Total securitization transactions$2,463 $2,775 $2,493 
NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued)
Certain of our securitization entities may enter into derivative transactions to mitigate interest rate exposure, primarily resulting from fixed-rate assets securing floating-rate debt. In certain instances, the counterparty enters into offsetting derivative transactions with us to mitigate its interest rate risk resulting from derivatives with our securitization entities. These related derivatives are not the obligations of our securitization entities. See Note 7 for additional information regarding the accounting for derivatives. Our exposures based on the fair value of derivative instruments with external counterparties related to securitization programs at December 31 were as follows (in millions):
20242025
Derivative
Asset		Derivative
Liability		Derivative
Asset		Derivative
Liability
Derivatives of the VIEs$34 $100 $21 $40 
Derivatives related to the VIEs29 32 8 23 
Other securitization related derivatives39 27 1 40 
Total exposures related to securitization$102 $159 $30 $103 
Derivative expense/(income) related to our securitization transactions for the years ended December 31 was as follows (in millions):
202320242025
Derivatives of the VIEs$25 $14 $(9)
Derivatives related to the VIEs(38)12 26 
Other securitization related derivatives(26)(82)19 
Total derivative expense/(income) related to securitization$(39)$(56)$36 
v3.25.4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
In the normal course of business, our operations are exposed to global market risks, including the effect of changes in interest rates and foreign currency exchange rates. To manage these risks, we enter into derivative contracts:

•Interest rate contracts, including swaps, that are used to manage the effects of interest rate fluctuations
•Foreign currency exchange contracts, including forwards, that are used to manage foreign exchange exposure
•Cross-currency interest rate swap contracts that are used to manage foreign currency and interest rate exposures on foreign-denominated debt

We review our hedging program, derivative positions, and overall risk management strategy on a regular basis.

Derivative Financial Instruments and Hedge Accounting. Derivative assets and derivative liabilities are reported in Derivative financial instruments on our balance sheets.

Our derivatives are over-the-counter customized derivative transactions and are not exchange traded. We estimate the fair value of these instruments using industry-standard valuation models such as a discounted cash flow. These models project future cash flows and discount the future amounts to a present value using market-based expectations for interest rates, foreign exchange rates, and the contractual terms of the derivative instruments. The discount rate used is the relevant benchmark interest rate (e.g., SOFR, SONIA) plus an adjustment for nonperformance risk. The adjustment reflects the full credit default swap (“CDS”) spread applied to a net exposure, by counterparty, considering the master netting agreements and any posted collateral. We use our counterparty’s CDS spread when we are in a net asset position and our own CDS spread when we are in a net liability position.

We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting.
NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)

Fair Value Hedges. We use derivatives to reduce the risk of changes in the fair value of debt. We have designated certain receive-fixed, pay-float interest rate and cross-currency interest rate swaps as fair value hedges of fixed-rate debt. The risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark interest rate and foreign exchange. We report the change in fair value of the hedged debt related to the change in benchmark interest rate in Debt and Interest expense. We report the change in fair value of the hedged debt related to foreign currency in Debt and Other income/(loss), net. Net interest settlements and accruals, and fair value changes on hedging instruments due to the benchmark interest rate change are reported in Interest expense. Fair value changes on the hedging instrument due to foreign currency are reported in Other Income/(loss), net. The cash flows associated with fair value hedges are reported in Net cash provided by/(used in) operating activities on our statements of cash flows.

When a fair value hedge is de-designated, or when the derivative is terminated before maturity, the fair value adjustment to the hedged debt continues to be reported as part of the carrying value of the debt and is recognized in Interest expense over its remaining life.

Derivatives Not Designated as Hedging Instruments. We report net interest settlements and accruals and changes in the fair value of interest rate swaps not designated as hedging instruments in Other income/(loss), net. Foreign currency revaluation on accrued interest along with gains and losses on foreign exchange contracts and cross-currency interest rate swaps are reported in Other income/(loss), net. Cash flows associated with non-designated or de-designated derivatives are reported in Net cash provided by/(used in) investing activities on our statements of cash flows.

Income Effect of Derivative Financial Instruments

The gains/(losses), by hedge designation, reported in income for the years ended December 31 were as follows (in millions):
202320242025
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments
$(507)$(361)$(162)
Fair value changes on hedging instruments196 (220)548 
Fair value changes on hedged debt (260)182 (530)
Cross-currency interest rate swap contracts
Net interest settlements and accruals on hedging instruments(79)(133)(79)
Fair value changes on hedging instruments96 (134)474 
Fair value changes on hedged debt(96)108 (463)
Derivatives not designated as hedging instruments
Interest rate contracts37 (85)(48)
Foreign currency exchange contracts (a)(35)268 (135)
Cross-currency interest rate swap contracts127 (272)276 
Total$(521)$(647)$(119)
__________
(a)Reflects forward contracts between us and an affiliated company.
NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)

Balance Sheet Effect of Derivative Financial Instruments

Derivative assets and liabilities are reported on the balance sheets at fair value and are presented on a gross basis. The notional amounts of the derivative instruments do not necessarily represent amounts exchanged by the parties and are not a direct measure of our financial exposure. We also enter into master agreements with counterparties that may allow for netting of exposures in the event of default or breach of the counterparty agreement. Collateral represents cash received or paid under reciprocal arrangements that we have entered into with our derivative counterparties, which we do not use to offset our derivative assets and liabilities.

The fair value of our derivative instruments and the associated notional amounts at December 31 were as follows (in millions):
20242025
NotionalFair Value of AssetsFair Value of LiabilitiesNotionalFair Value of AssetsFair Value of Liabilities
Fair value hedges
Interest rate contracts$16,194 $66 $645 $18,582 $374 $220 
Cross-currency interest rate swaps3,802 9 139 4,158 383 5 
Derivatives not designated as hedging instruments
Interest rate contracts76,977 305 845 87,293 364 619 
Foreign currency exchange contracts (a)9,716 271 117 6,566 28 75 
Cross-currency interest rate swap contracts5,455 133 246 7,121 379 28 
Total derivative financial instruments, gross (b) (c) $112,144 $784 $1,992 $123,720 $1,528 $947 
__________
(a)Includes forward contracts between us and an affiliated company, including offsetting forward contracts with our consolidated entities, totaling $5.3 billion and $3.5 billion in notional amounts and $115 million and $24 million in both assets and liabilities at December 31, 2024 and 2025, respectively.
(b)At December 31, 2024 and 2025, we held collateral of $27 million and $5 million, and we posted collateral of $127 million and $102 million, respectively.
(c)At December 31, 2024 and 2025, the fair value of assets and liabilities available for counterparty netting was $450 million and $610 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.
v3.25.4
OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED REVENUE
 12 Months Ended
Dec. 31, 2025
Other Assets and Other Liabilities and Deferred Income [Abstract]  
OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED REVENUE OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED REVENUE
Other assets and Other liabilities and deferred revenue consist of various balance sheet items that are combined for financial statement presentation due to their respective materiality compared with other individual asset and liability items.

Other assets at December 31 were as follows (in millions):
20242025
Prepaid reinsurance premiums and other reinsurance recoverables$876 $992 
Accrued interest and other non-finance receivables666 648 
Deferred tax assets178 512 
Collateral held for resale, at net realizable value392 477 
Property and equipment, net of accumulated depreciation (a)283 338 
Investment in non-consolidated affiliates182 180 
Restricted cash88 107 
Operating lease assets40 38 
Other350 297 
Total other assets$3,055 $3,589 
__________
(a)Accumulated depreciation was $448 million and $446 million at December 31, 2024 and 2025, respectively.

Other liabilities and deferred revenue at December 31 were as follows (in millions):
20242025
Interest payable$1,098 $1,183 
Unearned insurance premiums and fees995 1,134 
Income tax and related interest (a)131 225 
Payroll and employee benefits86 104 
Operating lease liabilities42 41 
Other275 493 
Total other liabilities and deferred revenue$2,627 $3,180 
__________
(a)Includes tax payable to affiliated companies of $9 million and $71 million at December 31, 2024 and 2025, respectively.
v3.25.4
DEBT AND COMMITMENTS
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
DEBT AND COMMITMENTS DEBT AND COMMITMENTS
We obtain short-term funding from the issuance of demand notes to retail investors through our Ford Interest Advantage and retail deposit programs. We have certain securitization programs that issue short-term asset-backed debt securities that are sold to institutional investors. Bank borrowings by several of our international affiliates in the ordinary course of business are an additional source of short-term funding. We obtain long-term debt funding through the issuance of a variety of unsecured and asset-backed debt securities in the United States and international capital markets.

Asset-backed debt issued in securitizations is the obligation of the consolidated securitization entity that issued the debt and is payable only out of collections on the underlying securitized assets and related enhancements. This asset-backed debt is not the obligation of Ford Credit or our other subsidiaries.

Debt is reported on our consolidated balance sheets at par value adjusted for unamortized discount or premium, unamortized issuance costs, and adjustments related to designated fair value hedging (see Note 7 for additional information). Debt due within one year at issuance is classified as short-term. Debt due after one year at issuance is classified as long-term. Discounts, premiums, and costs directly related to the issuance of debt are capitalized and amortized over the life of the debt or to the put date and are recorded in Interest expense using the effective interest method. Gains and losses on the extinguishment of debt are recorded in Other income/(loss), net.
NOTE 9. DEBT AND COMMITMENTS (Continued)

Debt outstanding and interest rates at December 31 were as follows (in millions):
 Interest Rates
DebtAverage Contractual
 2024202520242025
Short-term debt
Unsecured debt
Floating rate demand notes$12,040 $12,950 
Other short-term debt4,173 3,478 
Asset-backed debt1,200 1,922 
Total short-term debt
17,413 18,350 4.7 %3.7 %
Long-term debt
Unsecured debt
Notes payable within one year12,871 13,625 
Notes payable after one year49,607 52,357 
Asset-backed debt
Notes payable within one year23,050 19,831 
Notes payable after one year36,224 37,741 
Unamortized (discount)/premium and issuance costs(253)(247)
Fair value adjustments (a)(1,044)(240)
Total long-term debt120,455 123,067 4.8 %4.7 %
Total debt$137,868 $141,417 4.8 %4.6 %
Fair value of debt$140,046 $144,213 
Interest rate characteristics of debt payable after one year
Fixed interest rate69,085 71,962 
Variable interest rate (generally based on SOFR or other short-term rates)16,746 18,136 
Total payable after one year
$85,831 $90,098 
__________
(a)These adjustments are related to hedging activity and include discontinued hedging relationship adjustments of $(450) million and $(319) million at December 31, 2024 and 2025, respectively. The carrying value of hedged debt was $41.1 billion and $41.7 billion at December 31, 2024 and 2025, respectively.

We measure debt at fair value for purposes of disclosure using quoted prices for our own debt with approximately the same remaining maturities. Where quoted prices are not available, we estimate fair value using discounted cash flows and market-based expectations for interest rates, credit risk, and the contractual terms of the debt instruments. For certain short-term debt with an original maturity date of one year or less, we assume that book value is a reasonable approximation of the debt’s fair value. The fair value of debt is categorized within Level 2 of the hierarchy. The fair value of debt includes $16.2 billion and $16.4 billion of short-term debt at December 31, 2024 and 2025, respectively, carried at cost, which approximates fair value. We paid interest of $5.8 billion, $7.0 billion, and $6.7 billion in 2023, 2024, and 2025, respectively, on debt.
NOTE 9. DEBT AND COMMITMENTS (Continued)

Maturities

The amounts contractually due for our debt maturities, including both scheduled principal and interest payments, at December 31, 2025 were as follows (in millions):
2026 (a)2027202820292030Thereafter (b)Total
Unsecured debt $30,053 $12,941 $11,657 $8,613 $7,836 $11,310 $82,410 
Asset-backed debt21,753 17,819 12,104 4,581 3,237 — 59,494 
Total
51,806 30,760 23,761 13,194 11,073 11,310 141,904 
Unamortized (discount)/premium and issuance costs(247)
Fair value adjustments (240)
Total debt$141,417 
Interest payments related to long-term debt$5,309 $3,858 $2,583 $1,633 $1,057 $1,666 $16,106 
__________
(a)Includes $18,350 million for short-term and $33,456 million for long-term debt.
(b)Matures between 2031 and 2035.

Committed Asset-Backed Facilities

We and our subsidiaries have entered into agreements with a number of banks and bank-sponsored asset-backed commercial paper conduits. Such counterparties are contractually committed, at our option, to purchase from us eligible retail financing receivables or to purchase or make advances under asset-backed securities backed by retail financing or wholesale finance receivables or operating leases for proceeds of up to $43.6 billion ($24.9 billion of retail financing, $11.0 billion of operating leases, and $7.7 billion of wholesale financing) at December 31, 2025. In the United States, we are able to obtain funding within two days for our unutilized capacity in some of our committed asset-backed facilities. These committed facilities have varying maturity dates, with $11.4 billion having maturities within the next twelve months and the remaining balance having maturities through second quarter 2029. We plan capacity renewals to protect our global funding needs and to optimize capacity utilization.

Our ability to obtain funding under these facilities is subject to having a sufficient amount of eligible assets as well as our ability to obtain interest rate hedging arrangements for certain facilities. At December 31, 2025, $26.4 billion of these commitments were in use and we had $0.3 billion of asset-backed capacity that was in excess of eligible receivables. These programs are free of material adverse change clauses, restrictive financial covenants (for example, debt-to-equity limitations and minimum net worth requirements), and generally, credit rating triggers that could limit our ability to obtain funding. However, the unused portion of these commitments may be terminated if the performance of the underlying assets deteriorates beyond specified levels. Based on our experience and knowledge as servicer of the related assets, we do not expect any of these programs to be terminated due to such events.

As of December 31, 2025, FCE had liquidity of £36 million (equivalent to $48 million) in the form of eligible collateral available for use in the monetary policy programs of the Bank of England. In addition, Ford Bank had liquidity of €311 million (equivalent to $366 million) in the form of eligible collateral available for use in the monetary policy programs of the European Central Bank.
NOTE 9. DEBT AND COMMITMENTS (Continued)

Unsecured Credit Facilities

At December 31, 2025, we and our subsidiaries had $1.5 billion of contractually committed unsecured credit facilities with financial institutions, including the FCE Credit Agreement and the Ford Bank Credit Agreement. At December 31, 2025, $0.9 billion was available for use.

At December 31, 2025, £310 million (equivalent to $418 million) was available for use under FCE’s £585 million (equivalent to $787 million) Credit Agreement and €50 million (equivalent to $59 million) was available for use under Ford Bank’s €210 million (equivalent to $247 million) Credit Agreement. Both the FCE Credit Agreement and Ford Bank Credit Agreement mature in 2028.

Both the FCE Credit Agreement and Ford Bank Credit Agreement contain certain covenants, including an obligation for FCE and Ford Bank to maintain their ratio of regulatory capital to risk-weighted assets at no less than the applicable regulatory minimum. The FCE Credit Agreement requires the support agreement between FCE and Ford Credit to remain in effect (and enforced by FCE to ensure that its net worth is maintained at no less than $500 million). The Ford Bank Credit Agreement requires a guarantee of Ford Bank’s obligations under the agreement, provided by Ford Credit, to remain in effect. In addition, both the FCE Credit Agreement and the Ford Bank Credit Agreement include certain sustainability-linked targets, pursuant to which the applicable margin may be adjusted if Ford achieves, or fails to achieve, the specified targets related to global manufacturing facility greenhouse gas emissions, carbon-free electricity consumption, and Ford Europe CO2 tailpipe emissions. For the most recent performance period, Ford outperformed the global manufacturing facility greenhouse gas emissions and carbon-free electricity consumption metrics, and it was neutral on the Ford Europe CO2 tailpipe emissions metric.
v3.25.4
INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Ford Motor Credit Company LLC and certain of its subsidiaries are disregarded entities for United States income tax purposes. Ford’s consolidated United States federal and state income tax returns include certain of our domestic subsidiaries. Our provision for income taxes includes only income tax liabilities for Ford Credit entities recognized as taxable within a jurisdiction. Certain United States minimum taxes, such as the corporate alternative minimum tax and the tax on global intangible low-taxed income, are generally allocated to us on a separate return basis calculated as if we were a taxable entity. The net minimum tax liability allocated to us will not exceed the net liability as determined on a consolidated basis.

We recognize income tax-related penalties in Provision for/(Benefit from) income taxes on our consolidated income statements.  We recognize income tax-related interest income and expense in Other income/(loss), net on our consolidated income statements.

We account for U.S. tax on global intangible low-taxed income in the period incurred, and we account for investment tax credits using the deferral method.

Deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences that exist between the financial statement carrying value of assets and liabilities and their respective tax bases, and net operating loss carryforwards and tax credit carryforwards on a taxing jurisdiction basis. We measure deferred tax assets and liabilities using enacted tax rates that will apply in the years in which we expect the temporary differences to be recovered or paid.

Our accounting for deferred tax consequences represents our best estimate of the likely future tax consequences of events that have been recognized in our consolidated financial statements or tax returns and their future probability. In assessing the need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. If, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized, we record a valuation allowance.

As disclosed in Note 2, we have prospectively adopted the guidance in ASU 2023-09 Improvements to Income Tax Disclosures.
NOTE 10. INCOME TAXES (Continued)

Components of Income Taxes

The components of income taxes excluding other comprehensive income/(loss) and equity in net results of affiliated companies accounted for after-tax for the years ended December 31 were as follows (in millions):

202320242025
Income/(Loss) before income taxes
U.S.$797 $773 $1,763 
Non-U.S.525 881 794 
Total$1,322 $1,654 $2,557 
Provision for/(Benefit from) income taxes
Current
Federal$190 $(43)$(31)
Non-U.S.361 156 155 
State and local10 9 9 
Total current561 122 133 
Deferred
Federal65 239 170 
Non-U.S.(627)37 82 
State and local(1)— (3)
Total deferred(563)276 249 
Total$(2)$398 $382 


Reconciliation of Income Tax

The reconciliation of the Company’s effective tax rate for the years ended December 31 were as follows:

20232024
Reconciliation of the Company’s effective tax rate
U.S. federal statutory tax21.0 %21.0 %
U.S. disregarded entities4.8 0.5 
Non-U.S. tax rate differential(0.9)0.2 
U.S. state and local taxes0.5 0.4 
Nontaxable foreign currency gains and losses(1.5)(0.7)
Dispositions and restructurings (a)(25.9)— 
U.S. tax on non-U.S. earnings— 3.6 
Prior year settlements and claims(0.8)— 
Other2.6 (0.9)
Effective tax rate(0.2)%24.1 %
__________
(a)2023 includes a benefit of $343 million associated with legal entity restructuring within our leasing operations.
NOTE 10. INCOME TAXES (Continued)

2025
Reconciliation of the Company’s provision for/(benefit from) income taxes and effective tax rateAmountPercent
U.S. federal statutory tax$537 21.0 %
Federal
U.S. disregarded entities(225)(8.8)
Effect of cross-border tax laws (a)
Global intangible low-taxed income13 0.5 
Passive Income24 0.9 
Other(21)(0.8)
U.S. state and local taxes (b)6 0.2 
Foreign
Mexico
Non-taxable or nondeductible items(32)(1.3)
Other34 1.3 
United Kingdom
Non-taxable or nondeductible items33 1.3 
Other(3)(0.1)
Other foreign tax effects(11)(0.4)
Changes in unrecognized tax benefits27 1.1 
Total$382 14.9 %
__________
(a)Includes the impact of foreign tax credits.
(b)For the year ended December 31, 2025, the majority of state and local taxes were incurred in California.

Cash Paid for Income Taxes, Net of Refunds

Cash paid for income taxes, net of refunds, for the years ended December 31, 2023 and 2024 was $248 million and $166 million, respectively.

Cash paid for income taxes, net of refunds, for the year ended December 31, 2025 was $92 million. The amounts paid to each jurisdiction were insignificant.
NOTE 10. INCOME TAXES (Continued)

Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities at December 31 were as follows (in millions):
20242025
Deferred tax assets
Net operating loss carryforwards$611 $778 
Tax credit carryforwards119 224 
Provision for credit losses99 122 
Other foreign deferred tax assets111 112 
All other 68 56 
Total gross deferred tax assets$1,008 $1,292 
Less: Valuation allowances(45)(67)
Total net deferred tax assets$963 $1,225 
Deferred tax liabilities
Leasing transactions692 867 
Other foreign deferred tax liabilities431 484 
All other26 22 
Total deferred tax liabilities$1,149 $1,373 
Net deferred tax liabilities$186 $148 
Net operating loss carryforwards were $2.9 billion at December 31, 2025. These losses resulted in a deferred tax asset of $778 million, of which $39 million has no expiration date. A substantial portion of the remaining losses will expire beyond 2031. Tax credit carryforwards available to offset future tax liabilities are $224 million. These credits have a remaining carryforward period of twenty years. Tax benefits from net operating loss carryforwards and tax credit carryforwards are evaluated on an ongoing basis, including a review of historical and projected future operating results, the eligible carryforward period, and available tax planning strategies.

At December 31, 2025, we maintained earnings that are considered indefinitely reinvested in operations outside the United States, for which deferred taxes have not been provided. Quantification of the deferred tax liability, if any, associated with these earnings is not practicable.

Other

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 was as follows (in millions):
20242025
Beginning balance$69 $65 
Increase - tax positions in prior periods14 33 
Decrease - tax positions in prior periods— (4)
Settlements(7)(7)
Lapse of statute of limitations(1)(1)
Foreign currency translation adjustment(10)9 
Ending balance$65 $95 
NOTE 10. INCOME TAXES (Continued)

The amount of unrecognized tax benefits that would affect the effective tax rate if recognized was $65 million and $95 million as of December 31, 2024 and 2025, respectively.

Examinations by tax authorities have been completed through 2008 in Germany; 2014 in the United States; 2017 in Mexico; 2018 in the United Kingdom; and 2019 in Canada. We have settled our United States federal income tax matters related to tax years prior to 2015 in accordance with our intercompany tax sharing agreement.

Net tax-related interest expense on income taxes was $12 million, $3 million, and $9 million for the years ended December 31, 2023, 2024, and 2025, respectively. At December 31, 2024 and 2025, we reported a net tax-related interest payable of $23 million and $42 million, respectively.
v3.25.4
INSURANCE
 12 Months Ended
Dec. 31, 2025
Insurance [Abstract]  
INSURANCE INSURANCE
We conduct insurance underwriting operations primarily through The American Road Insurance Company (“TARIC”). TARIC is a wholly owned subsidiary of Ford Credit operating in the United States and Canada. TARIC provides physical damage insurance coverage for Ford Credit financed vehicles at dealer locations. TARIC also provides physical damage insurance coverage for non-affiliated company financed vehicles, serviced by Ford Credit, at dealer locations. In addition, TARIC provides a variety of other insurance products and services to Ford and its affiliates, including contractual liability insurance on extended service contracts. TARIC provides commercial automobile insurance for Ford and third parties and general liability insurance and surety bonds for Ford in the United States.

Insurance premiums earned are reported net of reinsurance as Insurance premiums earned. These premiums are earned over their respective policy periods. Physical damage insurance premiums are recognized as income on a monthly basis. Premiums from extended service plan contracts and other contractual liability coverages are earned over the life of the policy based on historical loss experience. Commissions and premium taxes are deferred and amortized over the term of the related policies on the same basis on which premiums are earned.

Reserves for insurance losses and loss adjustment expenses are established based on actuarial estimates and historical loss development patterns, which represents management’s best estimate. If management believes the reserves do not reflect all losses due to changes in conditions, or other relevant factors, an adjustment is made based on management judgment.

Reinsurance activity primarily consists of ceding a majority of the contractual liability insurance business related to automotive extended service plan contracts for a ceding commission. Commissions on ceded amounts are earned on the same basis as related premiums. Reinsurance contracts do not relieve TARIC from its obligations to its policyholders. Failure of reinsurers to honor their obligations could result in losses to TARIC. Therefore, TARIC requires nearly all of its reinsurers to hold collateral and monitors the underlying business and financial performance of its reinsurers to mitigate risk.

Insurance Assets

Cash, cash equivalents, and marketable securities related to insurance activities at December 31 were as follows (in millions):
20242025
Cash and cash equivalents$85 $103 
Marketable securities644 719 
Total cash, cash equivalents, and marketable securities
$729 $822 

TARIC is required by law to maintain deposits with regulatory authorities. These deposited securities totaled $11 million and $12 million at December 31, 2024 and 2025, respectively, and were included in Marketable securities.
NOTE 11. INSURANCE (Continued)

Amounts paid to reinsurers relating to the unexpired portion of the underlying automotive service contracts, and amounts recoverable from reinsurers on unpaid losses, including incurred but not reported losses are reported in Other assets. Prepaid reinsurance premiums and other reinsurance recoverables were $876 million and $992 million at December 31, 2024 and 2025, respectively. This includes amounts ceded to Ford affiliates of $98 million at both December 31, 2024 and 2025.

Insurance Liabilities

Other liabilities and deferred revenue includes unearned insurance premiums and fees of $995 million and $1,134 million at December 31, 2024 and 2025, respectively. This includes amounts from Ford and its affiliates of $863 million and $978 million at December 31, 2024 and 2025, respectively.

The reserve for reported insurance losses and an estimate of unreported insurance losses, based on past experience, was $35 million and $31 million at December 31, 2024 and 2025, respectively, and was included in Other liabilities and deferred revenue.

Insurance Premiums

Insurance premiums written and earned for the years ended December 31 were as follows (in millions):
202320242025
WrittenEarnedWrittenEarnedWrittenEarned
Direct$394 $359 $472 $415 $556 $432 
Assumed— — — — — — 
Ceded(275)(240)(300)(244)(373)(258)
Net premiums
$119 $119 $172 $171 $183 $174 

The direct premiums earned from Ford and its affiliates were $249 million, $259 million, and $253 million for the years ended December 31, 2023, 2024, and 2025, respectively.

Insurance Expenses

Insurance underwriting losses and expenses are reported as Insurance expenses. The components of insurance expenses for the years ended December 31 were as follows (in millions):
202320242025
Insurance losses$90 $181 $116 
Loss adjustment expenses4 5 9 
Reinsurance income and other expenses, net(41)(40)(39)
Insurance expenses
$53 $146 $86 

Insurance expenses with Ford and its affiliates were $161 million, $224 million, and $199 million for the years ended December 31, 2023, 2024, and 2025, respectively.

Insurance expenses were reduced by ceded insurance expenses of $198 million, $233 million, and $258 million for the years ended December 31, 2023, 2024, and 2025, respectively.
v3.25.4
OTHER INCOME/(LOSS)
 12 Months Ended
Dec. 31, 2025
Other Income and Expenses [Abstract]  
OTHER INCOME/(LOSS) OTHER INCOME/(LOSS)
Other income/(loss) consists of various line items that are combined on the income statements due to their respective materiality compared with other individual income and expense items.

The amounts included in Other income/(loss), net for the years ended December 31 were as follows (in millions):
202320242025
Interest and investment income (a)$545 $506 $389 
Gains/(losses) on derivatives177 (272)564 
Currency revaluation gains/(losses) (216)114 (577)
Other (b)8 76 33 
Total other income/(loss), net$514 $424 $409 
__________
(a)Includes interest income, primarily on notes receivable, from affiliated companies of $2 million, $3 million, and $2 million for the years ended December 31, 2023, 2024, and 2025, respectively.
(b)Includes the reclassification of foreign currency translation net gains of $43 million and net losses of $6 million in 2024 and 2025, respectively, to Other Income/(Loss),net from Accumulated other comprehensive income/(loss) related to the liquidation, or substantially complete liquidation of certain investments in our international markets.
v3.25.4
SEGMENT AND GEOGRAPHIC INFORMATION
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
SEGMENT AND GEOGRAPHIC INFORMATION SEGMENT AND GEOGRAPHIC INFORMATION
We report segment information consistent with the way our chief operating decision maker (“CODM”), our President and Chief Executive Officer, evaluates the operating results and performance of the Company. We conduct our financing operations directly and indirectly through our subsidiaries and affiliates. We offer substantially similar products and services throughout many different regions, subject to local legal restrictions and market conditions. Our reportable segments are: the United States and Canada, Europe, and All Other. Our All Other reportable segment includes our operations in China, Mexico, and our joint venture in South Africa, as well as wind down activities in Brazil, Argentina, and India.

We report segment earnings on an income before income taxes basis after excluding market valuation adjustments to derivatives and exchange-rate fluctuations on foreign currency-denominated transactions, which are reflected in Unallocated Other. These adjustments are excluded when assessing our segment performance because they are carried out at the corporate level. Our CODM reviews segment earnings on an income before income taxes basis to evaluate performance and allocate resources, predominately in the budgeting, planning, and forecasting processes.
NOTE 13. SEGMENT AND GEOGRAPHIC INFORMATION (Continued)

Key operating data for our business segments for the years ended or at December 31 was as follows (in millions):
United States and CanadaEuropeAll OtherTotal
Segments		Unallocated OtherTotal
2023
Total revenue $9,362 $1,316 $441 $11,119 $— $11,119 
Total revenue less:
Depreciation on vehicles subject to operating leases
2,284 25 — 2,309 — 2,309 
Interest expense5,199 684 242 6,125 186 6,311 
Provision for credit losses237 10 31 278 — 278 
Other segment items (a)528 291 93 912 (13)899 
Income before income taxes1,114 306 75 1,495 (173)1,322 
Other segment disclosures:
Net finance receivables and net investment in operating leases107,695 20,249 5,211 133,155 — 133,155 
Total assets 118,611 24,601 5,993 149,205 — 149,205 
2024
Total revenue $11,290 $1,508 $455 $13,253 $— $13,253 
Total revenue less:
Depreciation on vehicles subject to operating leases
2,447 35 — 2,482 — 2,482 
Interest expense6,062 875 258 7,195 388 7,583 
Provision for credit losses333 34 50 417 — 417 
Other segment items (a)988 207 87 1,282 (165)1,117 
Income before income taxes 1,460 357 60 1,877 (223)1,654 
Other segment disclosures:
Net finance receivables and net investment in operating leases118,969 20,469 4,201 143,639 — 143,639 
Total assets129,599 23,993 4,700 158,292 — 158,292 
2025
Total revenue $12,172 $1,558 $376 $14,106 $— $14,106 
Total revenue less:
Depreciation on vehicles subject to operating leases
2,476 46 — 2,522 — 2,522 
Interest expense5,903 788 202 6,893 240 7,133 
Provision for credit losses432 50 46 528 — 528 
Other segment items (a)1,198 515 71 1,784 (418)1,366 
Income before income taxes 2,163 159 (b)57 2,379 178 2,557 
Other segment disclosures:
Net finance receivables and net investment in operating leases120,326 22,357 3,615 146,298 — 146,298 
Total assets132,601 25,634 4,218 162,453 — 162,453 
__________
(a)Other items consists of Operating expenses, Insurance expenses, and Other income/(loss), net.
(b)Includes charges of $208 million for the year ended December 31, 2025 related to an industrywide review of historical U.K. dealer commissions.
NOTE 13. SEGMENT AND GEOGRAPHIC INFORMATION (Continued)

Geographic Information

Key data, split geographically into the United States (which is our country of domicile), Canada, and All Other, for the years ended or at December 31 were as follows (in millions):
202320242025
Total revenue
United States$8,012 $9,714 $10,379 
Canada1,350 1,577 1,793 
All Other1,757 1,962 1,934 
Total revenue$11,119 $13,253 $14,106 
Net property and net investment in operating leases
United States$15,642 $16,560 $19,707 
Canada4,621 5,048 6,387 
All Other338 364 746 
Net property and net investment in operating leases$20,601 $21,972 $26,840 
v3.25.4
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Commitments and contingencies primarily consist of lease commitments, guarantees and indemnifications, and litigation and claims.

Lease Commitments

We lease land, buildings, and equipment under agreements that expire over various contractual periods ranging from less than 1 year to 26 years. Many of our leases contain one or more options to extend. We include options that we are reasonably certain to exercise in our evaluation of the lease term after considering all relevant economic and financial factors. The leased (“right-of-use”) assets in operating lease arrangements are reported in Other assets on our consolidated balance sheets. We do not recognize right-of-use assets and lease liabilities for leases with a term of 12 months or less. These lease payments are amortized to expense on a straight-line basis over the lease term.

For the majority of our leases, we do not separate the non-lease components (e.g., maintenance and operating services) from the lease components to which they relate. Instead, non-lease components are included in the measurement of the lease liabilities. We calculate the initial lease liability as the present value of fixed payments not yet paid and variable payments that are based on a market rate or an index (e.g., CPI), measured at commencement. The majority of our leases are discounted using our incremental borrowing rate because the rate implicit in the lease is not readily determinable. All other variable payments are expensed as incurred. Operating lease liabilities are reported in Other liabilities and deferred revenue.
NOTE 14. COMMITMENTS AND CONTINGENCIES (Continued)

The amounts contractually due on our operating lease liabilities at December 31, 2025 were as follows (in millions):
20262027202820292030ThereafterTotal
Operating lease$14 $13 $7 $4 $2 $7 $47 
Less: Present value discount6 
   Total operating lease liabilities$41 

Supplemental information related to operating leases for the years ended December 31 was as follows (in millions):
202320242025
Operating and variable lease expense$22$22$18
Right-of-use assets obtained in exchange for operating lease liabilities5414
Weighted average remaining lease term for operating leases (in years)555
Weighted average remaining discount rate for operating leases4.1 %4.3 %4.7 %
Guarantees and Indemnifications

Guarantees and indemnifications are recorded at fair value at their inception. For financial guarantees, subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. For non-financial guarantees, we regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the amount of probable payment is recorded.

The maximum potential payments under these guarantees and limited indemnities totaled $61 million and $63 million at December 31, 2024 and 2025, respectively. Of these values, $15 million and $16 million at December 31, 2024 and 2025, respectively, were counter-guaranteed by Ford to us. There were no recorded liabilities related to guarantees and limited indemnities at both December 31, 2024 and 2025.

In some cases, we have guaranteed debt and other financial obligations of outside third parties and unconsolidated affiliates, including Ford. Expiration dates vary, and guarantees will terminate on payment and/or cancellation of the underlying obligation. A payment by us would be triggered by failure of the third party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from a third party amounts paid by us under the guarantee.

In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction, such as the sale of a business. These indemnifications might include and are not limited to claims relating to any of the following: environmental, tax, and shareholder matters; intellectual property rights; governmental regulations and employment-related matters; dealer and other commercial contractual relationships; and financial matters, such as securitizations. Performance under these indemnities generally would be triggered by a breach of contract claim brought by a counterparty or a third-party claim. While some of these indemnifications are limited in nature, many of them do not limit potential payment. Therefore, we are unable to estimate a maximum amount of future payments that could result from claims made under these unlimited indemnities.
NOTE 14. COMMITMENTS AND CONTINGENCIES (Continued)

Litigation and Claims

Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include but are not limited to matters arising out of governmental regulations; tax matters; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer and other contractual relationships; investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages in very large amounts, sanctions, assessments, or other relief, which, if granted, would require very large expenditures.

The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome.

We accrue for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time.

For nearly all matters where our historical experience with similar matters is of limited value (i.e., “non-pattern matters”), we evaluate the matters primarily based on the individual facts and circumstances. For non-pattern matters, we evaluate whether there is a reasonable possibility of a material loss in excess of any accrual that can be estimated. It is reasonably possible that some of the matters for which accruals have not been established could be decided unfavorably and could require us to pay damages or make other expenditures. We do not reasonably expect, based on our analysis, that such matters would have a material effect on future financial statements for a particular year, although such an outcome is possible.

As noted, the litigation process is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance. Our assessments are based on our knowledge and experience, but the ultimate outcome of any matter could require payment substantially in excess of the amount that we have accrued and/or disclosed.
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Cybersecurity Strategy and Risk Management

We devote significant resources to our cybersecurity program that we believe is reasonably designed to mitigate our cybersecurity and information technology risks. We believe our cybersecurity program is reasonably designed to protect our information systems, software, networks, and other assets against, and mitigate the effects of cybersecurity incidents where unauthorized parties attempt, among other things, to disrupt or degrade service or our operations; misuse or abuse technology and information systems; make unauthorized disclosure of data; or otherwise cause harm to Ford and Ford Credit, our customers, suppliers, or dealers, or other key stakeholders. We employ capabilities, processes, and other security measures we believe are reasonably designed to reduce and mitigate these risks, and have requirements for our suppliers and service providers to do the same. Data safeguard practices of suppliers and service providers who process Personally Identifiable Information on our behalf are reviewed annually for compliance with our policies and applicable regulations. Despite having thorough due diligence, onboarding, and cybersecurity assessment processes in place for our suppliers and service providers, there can be no assurance that we can prevent the risk of any compromise or failure in the information systems, software, networks, and other assets owned or controlled by those parties. When we become aware that a supplier or service provider’s cybersecurity has been compromised, we attempt to mitigate the risk to the Company, including, if appropriate and feasible, by terminating the supplier’s connection to our information systems.

In an effort to effectively prevent, detect, and respond to cybersecurity threats, we employ a multi-layered cybersecurity risk management program supervised by Ford’s Chief Information Security Officer, whose team is responsible for leading enterprise-wide cybersecurity strategy, policy, architecture, and processes. The team provides cybersecurity services for Ford and its affiliates, including Ford Credit. The services provided to Ford Credit and its affiliates are governed by appropriate service agreements with Ford. Local regional teams and designated responsible individuals work with the enterprise-wide team to provide cybersecurity-related services in compliance with local requirements. The team’s responsibility includes identifying, considering, and assessing potentially material cybersecurity incidents on an ongoing basis, establishing processes designed to prevent and monitor potential cybersecurity risks, implementing mitigation and remedial measures, and maintaining the cybersecurity program. To do so, the program is informed by and designed to comply with the National Institute of Standards and Technology Cybersecurity Framework. The program leverages both internal and external techniques and expertise. Internally, we perform penetration tests, internal tests/code reviews, and Red Team exercises, among other things, to evaluate aspects of our cybersecurity program. We also perform phishing and social engineering simulations with, and provide cybersecurity training for, personnel with Company email and access to Company assets, and regularly circulate security awareness newsletters to employees. Externally, we monitor notifications from the U.S. Computer Emergency Readiness Team (“CERT”) and various Information Sharing and Analysis Centers (each an “ISAC”); review customer, media, and third-party cybersecurity reports; and operate a bug bounty program. The cybersecurity program also includes disaster recovery and incident response plans, including a ransomware response plan, which is regularly tested and evaluated in tabletop simulations.

Ford and Ford Credit’s global cybersecurity incident response is overseen by Ford’s Chief Information Security Officer. Ford’s Chief Information Security Officer has served in that role for over 8 years and has over a decade of engineering and operations expertise with cybersecurity technologies and services. He was appointed in 2022 by the Ford Credit Board as Ford Credit’s “Qualified Individual” under the Federal Trade Commission Safeguards Rule, and is responsible for overseeing and implementing Ford Credit’s information security program and enforcing it. Ford Credit’s Chief Technology Officer is Ford Credit’s senior member responsible for direction and oversight of the Qualified Individual. Ford’s Chief Information Security Officer also reports to Ford Motor Company’s Chief Enterprise Technology Officer, who has spent over two decades managing cybersecurity risks as a leader at enterprise software and Fortune 50 companies. Ford’s Chief Enterprise Technology Officer reports directly to Ford’s Chief Executive Officer.
When a cybersecurity threat or incident is identified, our policy is to review and triage the threat or incident, and to then manage it to conclusion in accordance with our cybersecurity incident response processes. When a cybersecurity incident is determined to be significant, it is addressed by management committees using processes that leverage subject-matter expertise from across Ford and Ford Credit. Further, we have in the past and may in the future engage with third-party advisors and government and law enforcement agencies as part of our incident management processes. All cybersecurity incidents that are believed to reasonably have the potential to be significant to Ford and Ford Credit are brought to the attention of Ford’s Chief Enterprise Technology Officer and General Counsel by Ford’s Chief Information Security Officer as part of the Company’s cybersecurity incident response processes.

Cybersecurity Governance and Oversight

Cybersecurity risk identification, assessment, and management are integrated into Ford Credit’s overall enterprise risk management program. As part of its enterprise risk management efforts, the Ford Credit Board meets with senior management to assess and respond to critical business risks. These critical enterprise risks are assessed by senior management annually and discussed with the Ford Credit Board. Then each of the top risks are validated, prioritized, and assigned risk owners who are responsible to oversee risk assessment, develop and implement mitigation plans, and provide regular updates to the Board (and/or Board committee assigned to the risk). In this way, critical business risks, including cybersecurity risk, benefit from both top-down and bottom-up risk management efforts that we believe are reasonably designed to escalate key risk and control issues to senior management and the Ford Credit Board.
As a result of this enterprise risk management process, cybersecurity threats have been and continue to be identified as one of the Company’s top risks, with Ford Credit’s Chief Technology Officer assigned as the executive risk owner. Ford Credit’s Board is responsible for the oversight of cybersecurity and information technology risks, and Ford Credit’s preparedness for these risks.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
Cybersecurity risk identification, assessment, and management are integrated into Ford Credit’s overall enterprise risk management program. As part of its enterprise risk management efforts, the Ford Credit Board meets with senior management to assess and respond to critical business risks. These critical enterprise risks are assessed by senior management annually and discussed with the Ford Credit Board. Then each of the top risks are validated, prioritized, and assigned risk owners who are responsible to oversee risk assessment, develop and implement mitigation plans, and provide regular updates to the Board (and/or Board committee assigned to the risk). In this way, critical business risks, including cybersecurity risk, benefit from both top-down and bottom-up risk management efforts that we believe are reasonably designed to escalate key risk and control issues to senior management and the Ford Credit Board.
As a result of this enterprise risk management process, cybersecurity threats have been and continue to be identified as one of the Company’s top risks, with Ford Credit’s Chief Technology Officer assigned as the executive risk owner. Ford Credit’s Board is responsible for the oversight of cybersecurity and information technology risks, and Ford Credit’s preparedness for these risks
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block] As part of its oversight responsibilities, the Ford Credit Board receives annual cybersecurity updates from Ford’s Chief Information Security Officer. The annual review includes oversight of cybersecurity practices, cyber risks, and risk management processes, such as updates to Ford Credit’s cybersecurity programs and mitigation strategies, and other cybersecurity developments.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Ford and Ford Credit’s global cybersecurity incident response is overseen by Ford’s Chief Information Security Officer
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] In addition to these regular updates, as part of Ford Credit’s incident response processes, Ford Credit’s Chief Technology Officer, in collaboration with Ford Credit’s Qualified Individual and Chief Compliance Officer, provides updates on certain cybersecurity incidents to Ford Credit’s Compliance Committee and, in some cases, the Ford Credit Board of Directors.
Cybersecurity Risk Role of Management [Text Block] In addition to these regular updates, as part of Ford Credit’s incident response processes, Ford Credit’s Chief Technology Officer, in collaboration with Ford Credit’s Qualified Individual and Chief Compliance Officer, provides updates on certain cybersecurity incidents to Ford Credit’s Compliance Committee and, in some cases, the Ford Credit Board of Directors
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Ford and Ford Credit’s global cybersecurity incident response is overseen by Ford’s Chief Information Security Officer.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Ford’s Chief Information Security Officer has served in that role for over 8 years and has over a decade of engineering and operations expertise with cybersecurity technologies and services. He was appointed in 2022 by the Ford Credit Board as Ford Credit’s “Qualified Individual” under the Federal Trade Commission Safeguards Rule, and is responsible for overseeing and implementing Ford Credit’s information security program and enforcing it. Ford Credit’s Chief Technology Officer is Ford Credit’s senior member responsible for direction and oversight of the Qualified Individual. Ford’s Chief Information Security Officer also reports to Ford Motor Company’s Chief Enterprise Technology Officer, who has spent over two decades managing cybersecurity risks as a leader at enterprise software and Fortune 50 companies. Ford’s Chief Enterprise Technology Officer reports directly to Ford’s Chief Executive Officer.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] As part of its oversight responsibilities, the Ford Credit Board receives annual cybersecurity updates from Ford’s Chief Information Security Officer. The annual review includes oversight of cybersecurity practices, cyber risks, and risk management processes, such as updates to Ford Credit’s cybersecurity programs and mitigation strategies, and other cybersecurity developments. In addition, Ford Credit’s Compliance Committee reviews at least annually Ford Credit’s cybersecurity programs, and the Ford Credit Audit Committee receives updates on Ford Credit’s cybersecurity initiatives and information technology internal controls. In addition to these regular updates, as part of Ford Credit’s incident response processes, Ford Credit’s Chief Technology Officer, in collaboration with Ford Credit’s Qualified Individual and Chief Compliance Officer, provides updates on certain cybersecurity incidents to Ford Credit’s Compliance Committee and, in some cases, the Ford Credit Board of Directors. In the event Ford Credit determines it has experienced a material cybersecurity incident, Ford Credit’s Audit Committee and Chief Compliance Officer are notified about the incident in advance of filing a Current Report on Form 8-K
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Principles of Consolidation For purposes of this report, “Ford Credit,” the “Company,” “we,” “our,” “us,” or similar references mean Ford Motor Credit Company LLC, our consolidated subsidiaries, and our consolidated VIEs of which we are the primary beneficiary, unless the context requires otherwise. We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”).
Basis of Accounting Our consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”).
Reclassifications We reclassified certain prior period amounts in our consolidated financial statements to conform to the current year presentation.
Use of Estimates
Use of Estimates
The preparation of financial statements requires us to make estimates and assumptions that affect our results. The accounting estimates that are most important to our business involve the allowance for credit losses related to finance receivables, and accumulated depreciation on vehicles subject to operating leases. Estimates are based on assumptions that we believe are reasonable under the circumstances. Due to the inherent uncertainty involved with estimates, actual results may differ.
Foreign Currency
Foreign Currency

When an entity has monetary assets and liabilities denominated in a currency that is different from its functional currency, we remeasure those assets and liabilities from the transactional currency to the legal entity’s functional currency. The effect of this remeasurement process and the results of our related foreign currency hedging activities are reported in Other income/(loss), net.

Generally, our foreign subsidiaries use the local currency as their functional currency. We translate the assets and liabilities of our foreign subsidiaries from their respective functional currencies to U.S. dollars using end-of-period exchange rates. Changes in the carrying value of these assets and liabilities attributable to fluctuations in exchange rates are recognized in Foreign currency translation gains/(losses), a component of Other comprehensive income/(Ioss), net of tax. Upon sale or upon complete or substantially complete liquidation of an investment in a foreign subsidiary, the amount of accumulated foreign currency translation related to the entity is reclassified to income and recognized as part of the gain or loss on the sale or liquidation of the investment.
Fair Value Measurements
Fair Value Measurements

Cash equivalents, marketable securities, and derivative financial instruments are remeasured and presented on our financial statements on a recurring basis at fair value, while other assets and liabilities are measured at fair value on a nonrecurring basis.

In measuring fair value, we use various valuation methods and prioritize the use of observable inputs. The use of observable and unobservable inputs and their significance in measuring fair value are reflected in our fair value hierarchy.

•    Level 1 – inputs include quoted prices for identical instruments and are the most observable
•    Level 2 – inputs include quoted prices for similar instruments and observable inputs such as interest rates, currency exchange rates, and yield curves
•    Level 3 – inputs include data not observable in the market and reflect management judgment about the assumptions market participants would use in pricing the instruments

Transfers into and transfers out of the hierarchy levels are recognized as if they had taken place at the end of the reporting period.
On a nonrecurring basis, we also measure at fair value retail contracts 120 days past due or deemed to be uncollectible and individual dealer loans probable of foreclosure. We use the fair value of collateral, adjusted for estimated costs to sell, to determine the fair value of these receivables. The collateral for a retail financing or wholesale receivable is the vehicle financed and for dealer loans is real estate or other property.

The fair value of collateral for retail financing receivables is calculated as the outstanding receivable balances multiplied by the average recovery value percentage. The fair value of collateral for wholesale receivables is based on the wholesale market value or liquidation value for new and used vehicles. The fair value of collateral for dealer loans is determined by reviewing various appraisals, which include total adjusted appraised value of land and improvements, alternate use appraised value, broker’s opinion of value, and purchase offers.

Notes and accounts receivable from affiliated companies are presented separately on the balance sheets. These receivables are based on intercompany relationships and the balances are settled regularly. We do not assess these receivables for potential credit losses, nor are they subjected to aging analysis, credit quality reviews, or other formal assessments. As a result, Notes and accounts receivable from affiliated companies are not subject to the following disclosures contained herein.
Our derivatives are over-the-counter customized derivative transactions and are not exchange traded. We estimate the fair value of these instruments using industry-standard valuation models such as a discounted cash flow. These models project future cash flows and discount the future amounts to a present value using market-based expectations for interest rates, foreign exchange rates, and the contractual terms of the derivative instruments. The discount rate used is the relevant benchmark interest rate (e.g., SOFR, SONIA) plus an adjustment for nonperformance risk. The adjustment reflects the full credit default swap (“CDS”) spread applied to a net exposure, by counterparty, considering the master netting agreements and any posted collateral. We use our counterparty’s CDS spread when we are in a net asset position and our own CDS spread when we are in a net liability position.
We measure debt at fair value for purposes of disclosure using quoted prices for our own debt with approximately the same remaining maturities. Where quoted prices are not available, we estimate fair value using discounted cash flows and market-based expectations for interest rates, credit risk, and the contractual terms of the debt instruments. For certain short-term debt with an original maturity date of one year or less, we assume that book value is a reasonable approximation of the debt’s fair value. The fair value of debt is categorized within Level 2 of the hierarchy.
Retirement Benefits
Retirement Benefits

We are a participating employer in certain retirement plans that are sponsored by Ford. Ford allocates costs to us under these plans based on the total number of participating or eligible employees at Ford Credit. Further information about these sponsored plans is available in Ford’s Annual Report on Form 10-K for the year ended December 31, 2025, filed separately with the SEC.
Adoption of New Accounting Standards and Accounting Standards Issued But Not Yet Adopted
Adoption of New Accounting Standards
ASU 2023-09, Improvements to Income Tax Disclosures. We adopted the new standard, which requires additional income tax disclosures for annual reporting periods, and applied the amendments prospectively. Adoption of the new standard did not impact our consolidated income statements, balance sheets, or statements of cash flows. Refer to Note 10 for the additional disclosures required under the standard.

All other ASUs adopted during 2025 did not have a material impact to our consolidated financial statements or financial statement disclosures.

Accounting Standards Issued But Not Yet Adopted

ASU 2024-03, Disaggregation of Income Statement Expenses (“DISE”). In November 2024, the Financial Accounting Standards (“FASB”) issued a new accounting standard to improve the disclosures about an entity’s expenses and address requests from investors for more detailed information about the types of expenses included in commonly presented expense captions. The new standard is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with retrospective application permitted. We are assessing the effect on our consolidated financial statement disclosures; however, adoption will not impact our consolidated income statements, balance sheets, or statements of cash flows.

All other ASUs issued but not yet adopted were assessed and determined to be not applicable or are not expected to have a material impact on our consolidated financial statements or financial statement disclosures.
Cash and Cash Equivalents Cash and Cash Equivalents. Included in Cash and cash equivalents are highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of change in value due to interest rate, quoted price, or penalty on withdrawal. A debt security is classified as a cash equivalent if it meets these criteria and if it has a remaining time to maturity of three months or less from the date of purchase. Amounts on deposit and available upon demand, or negotiated to provide for daily liquidity without penalty, are classified as Cash and cash equivalents. Time deposits, certificates of deposit, and money market accounts that meet the above criteria are reported at par value on our consolidated balance sheets.
Marketable Securities
Marketable Securities. Investments in securities with a maturity date greater than three months at the date of purchase and other securities for which there is more than an insignificant risk of change in value due to interest rate, quoted price, or penalty on withdrawal are classified as Marketable securities. These investments are reported at fair value. We generally measure fair value using prices obtained from pricing services. Pricing methods and inputs to valuation models used by the pricing services depend on the security type (i.e., asset class). Where possible, fair values are generated using market inputs including quoted prices (the closing price in an exchange market), bid prices (the price at which a buyer stands ready to purchase), and other market information. For fixed income securities that are not actively traded, the pricing services use alternative methods to determine fair value for the securities, including quotes for similar fixed income securities, matrix pricing, discounted cash flow using benchmark curves, or other factors. In certain cases, when market data are not available, we may use broker quotes to determine fair value.

An annual review is performed on the security prices received from our pricing services, which includes discussion and analysis of the inputs used by the pricing services to value our securities. We also compare the price of certain securities sold close to the quarter end to the price of the same security at the balance sheet date to ensure the reported fair value is reasonable.

Realized and unrealized gains and losses and interest income on our marketable securities are recorded in Other income/(loss), net. Realized gains and losses are measured using the specific identification method.
Finance Receivables and Allowance for Credit Losses
Finance receivables are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses.

For all finance receivables, we define “past due” as any payment, including principal and interest, that is at least 31 days past the contractual due date.

Revenue from finance receivables is recognized using the interest method and includes the accretion of certain direct origination costs that are deferred and interest supplements received from Ford and affiliated companies. The unearned interest supplements on finance receivables are included in Total finance receivables, net on the balance sheets, and the earned interest supplements are included in Total financing revenue on the income statements.
Non-Accrual of Revenue. The accrual of financing revenue is discontinued at the time a receivable is determined to be uncollectible or when it is 90 days past due. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance.
NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Loan Modifications. Consumer and non-consumer receivables that have a modified interest rate and/or a term extension (including receivables that were modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code) are typically considered to be loan modifications. We do not grant modifications to the principal balance of our receivables. If a receivable is modified in a reorganization proceeding, all payment requirements of the reorganization plan need to be met before remaining balances are forgiven.

During the collection process, we may offer a term extension to a customer experiencing financial difficulty. During the extension period, finance charges continue to accrue. If the customer's financial difficulty is not temporary, but we believe the customer is willing and able to repay their loan at a lower payment amount, we may offer to modify the interest rate and/or extend the term in order to lower the scheduled monthly payment. In those cases, the outstanding balance generally remains unchanged. The use of interest rate modifications and term extensions helps us mitigate financial loss. Term extensions may assist in cases where we believe the customer will recover from short-term financial difficulty and resume regularly scheduled payments. Before offering an interest rate modification or term extension, we evaluate and take into account the capacity of the customer to meet the revised payment terms. Although the granting of an extension could delay the eventual charge-off of a receivable, we are typically able to repossess and sell the related collateral, thereby mitigating the loss. The effect of most loan modifications made to borrowers experiencing financial difficulty is included in the historical trends used to measure the allowance for credit losses. A loan modification that improves the delinquency status of a borrower reduces the probability of default, which results in a lower allowance for credit losses. At December 31, 2025, an insignificant portion of our total finance receivables portfolio had been granted a loan modification and these modifications are generally treated as a continuation of the existing loan.

Allowance for Credit Losses

The allowance for credit losses represents our estimate of the lifetime expected credit losses inherent in finance receivables as of the balance sheet date. The adequacy of the allowance for credit losses is assessed quarterly.

Adjustments to the allowance for credit losses are made by recording charges to Provision for credit losses on our consolidated income statements. The uncollectible portion of a finance receivable is charged to the allowance for credit losses at the earlier of when an account is deemed to be uncollectible or when an account is 120 days delinquent, taking into consideration the financial condition of the customer or borrower, the value of the collateral, recourse to guarantors, and other factors.

Charge-offs on finance receivables include uncollected amounts related to principal, interest, late fees, and other allowable charges. Recoveries on finance receivables previously charged off as uncollectible are credited to the allowance for credit losses. In the event we repossess the collateral, the receivable is charged off and the collateral is recorded at its estimated fair value less costs to sell and reported in Other assets on our consolidated balance sheets.
Finance Receivables Classification and Held-for-Investment
Finance receivables are accounted for as held for investment (“HFI”) if we have the intent and ability to hold the receivables for the foreseeable future or until maturity or payoff. The determination of intent and ability to hold for the foreseeable future is highly judgmental and requires us to make good faith estimates based on information available at the time of origination or purchase. If we do not have the intent and ability to hold the receivables, then the receivables are classified as held for sale (“HFS”).
Held-for-Investment. Finance receivables classified as HFI are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses. Cash flows from finance receivables that were originally classified as HFI are recorded as an investing activity since GAAP requires the statement of cash flows presentation to be based on the original classification of the receivables.
Held-for-Sale Held-for-Sale. Finance receivables classified as HFS are carried at the lower of cost or fair value. Cash flows resulting from the origination or purchase and sale of HFS receivables are recorded as an operating activity. Once a decision has been made to sell receivables that were originally classified as HFI, the receivables are reclassified as HFS and carried at the lower of cost or fair value. The valuation adjustment, if any, is recorded in Other income/(loss), net to recognize the receivables at the lower of cost or fair value.
Credit Quality
Consumer Portfolio. When originating consumer receivables, we use a proprietary scoring system that measures credit quality using information in the credit application, proposed contract terms, credit bureau data, and other information.  After a proprietary risk score is generated, we decide whether to purchase a contract using a decision process based on a judgmental evaluation of the applicant, the credit application, the proposed contract terms, credit bureau information (e.g., FICO score), proprietary risk score, and other information.  Our evaluation emphasizes the applicant’s ability to pay and creditworthiness focusing on payment, affordability, applicant credit history, and stability as key considerations. 

After origination, we review the credit quality of retail financing based on customer payment activity. As each customer develops a payment history, we use an internally developed behavioral scoring model to assist in determining the best collection strategies, which allows us to focus collection activity on higher-risk accounts. These models are used to refine our risk-based staffing model to ensure collection resources are aligned with portfolio risk. Based on data from this scoring model, contracts are categorized by collection risk. Our collection models evaluate several factors, including origination characteristics, updated credit bureau data, and payment patterns.
NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Credit quality ratings for consumer receivables are based on aging. Receivables over 60 days past due are in intensified collection status.
Non-Consumer Portfolio. We extend credit to dealers primarily in the form of lines of credit to purchase new Ford and Lincoln vehicles as well as used vehicles. Payment is typically required when the dealer has sold the vehicle. Each non‑consumer lending request is evaluated by considering the borrower’s financial condition and the underlying collateral securing the loan. We use a proprietary model to assign each dealer a risk rating. This model uses historical dealer performance data to identify key factors about a dealer that we consider most significant in predicting a dealer’s ability to meet its financial obligations. We also consider numerous other financial and qualitative factors of the dealer’s operations, including capitalization and leverage, liquidity and cash flow, profitability, and credit history with ourselves and other creditors.

Dealers are assigned to one of four groups according to risk ratings as follows:

•Group I – strong to superior financial metrics
•Group II – fair to favorable financial metrics
•Group III – marginal to weak financial metrics
•Group IV – poor financial metrics, including dealers classified as uncollectible

We generally suspend credit lines and extend no further funding to dealers classified in Group IV.
NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

We regularly review our model to confirm the continued business significance and statistical predictability of the model and may make updates to improve the performance of the model. In addition, we regularly audit dealer inventory and dealer sales records to verify that the dealer is in possession of the financed vehicles and is promptly paying each receivable following the sale of the financed vehicle. The frequency of on-site vehicle inventory audits depends primarily on the dealer’s risk rating. Under our policies, on-site vehicle inventory audits of low-risk dealers are conducted only as circumstances warrant. On-site vehicle inventory audits of higher-risk dealers are conducted with increased frequency based primarily on the dealer’s risk rating, but also considering the results of our electronic monitoring of the dealer’s performance, including daily payment verifications and monthly analyses of the dealer’s financial statements, payoffs, aged inventory, over credit line, and delinquency reports. We typically perform a credit review of each dealer annually and more frequently review certain dealers based on the dealer’s risk rating and total exposure. We adjust the dealer’s risk rating, if necessary. The credit quality of dealer financing receivables is evaluated based on our internal dealer risk rating analysis. A dealer has the same risk rating for all of its dealer financing regardless of the type of financing.
Consumer Portfolio

For consumer receivables that share similar risk characteristics such as product type, initial credit risk, term, vintage, geography, and other relevant factors, we estimate the lifetime expected credit loss allowance based on a collective assessment using measurement models and management judgment. The lifetime expected credit losses for the receivables is determined by applying probability of default and loss given default assumptions to monthly expected exposures, then discounting these cash flows to present value using the receivable’s original effective interest rate or the current effective interest rate for a variable rate receivable. Probability of default models are developed from internal risk scoring models taking into account the expected probability of payment and time to default, adjusted for macroeconomic outlook and recent performance. The models consider factors such as risk evaluation at the time of origination, historical trends in credit losses, and the composition and recent performance of the present portfolio (including vehicle brand, term, risk evaluation, and new/used vehicles). The loss given default is the percentage of the expected balance due at default that is not recoverable, taking into account the expected collateral value and trends in recoveries (including key metrics such as delinquencies, repossessions, and bankruptcies). Monthly exposures are equal to the receivables’ expected outstanding principal and interest balance.
NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

The allowance for credit losses incorporates forward-looking macroeconomic conditions for baseline, upturn, and downturn scenarios. Three separate credit loss allowances are calculated from these scenarios. They are then probability-weighted to determine the quantitative estimate of the credit loss allowance recognized in the financial statements. We use forecasts from a third party that revert to a long-term historical average after a reasonable and supportable forecasting period, which is specific to the particular macroeconomic variable and which varies by market. We update the forward-looking macroeconomic forecasts quarterly.

If management does not believe the models reflect lifetime expected credit losses for the portfolio, an adjustment is made to reflect management judgment regarding qualitative factors, including economic uncertainty, observable changes in portfolio performance, and other relevant factors.

On an ongoing basis, we review and periodically update our models, including macroeconomic factors, the selection of macroeconomic scenarios, and their weighting, to ensure they reflect the risk of the portfolio.

Non-Consumer Portfolio

Dealer financing is evaluated on an individual dealer basis by segmenting dealers by risk characteristics (such as the amount of the loans, the nature of the collateral, and the financial status of the dealer) to determine if an individual dealer requires a specific allowance for credit loss. If required, the allowance is based on the present value of the expected future cash flows of the dealer’s receivables discounted at the loans’ original effective interest rate or the fair value of the collateral adjusted for estimated costs to sell.

For the remaining dealer financing, we estimate an allowance for credit losses on a collective basis.

Wholesale Loans. We estimate the allowance for credit losses for wholesale loans based on historical LTR ratios, expected future cash flows, and the fair value of collateral. The LTR model is based on the most recent years of history. An LTR ratio is calculated by dividing credit losses (i.e., charge-offs net of recoveries) by average net finance receivables, excluding allowance for credit losses. The average LTR ratio is multiplied by the end-of-period balances, representing the lifetime expected credit loss reserve.

Dealer Loans. We use a weighted-average remaining maturity method to estimate the lifetime expected credit loss reserve for dealer loans. The loss model is based on the industrywide commercial real estate credit losses, adjusted to factor in the historical credit losses for our dealer loans portfolio. The expected credit loss is calculated under different macroeconomic scenarios that are weighted to provide the total lifetime expected credit loss.

After establishing the collective and specific allowance for credit losses, if management believes the allowance does not reflect all losses inherent in the portfolio due to changes in recent economic trends and conditions, or other relevant forward-looking economic factors, an adjustment is made based on management judgment.
Net Investment in Operating Leases
Net investment in operating leases consists primarily of lease contracts for vehicles with individuals, daily rental companies, and fleet customers with terms of 60 months or less. Payment extensions may be requested by the customer and are generally limited to a maximum of six months over the term of the lease.  Term extensions may also be requested by the customer. Term and payment extensions in total generally do not exceed twelve months. A lease can be terminated at any time by satisfying the obligations under the lease agreement. Early termination programs may be occasionally offered to eligible lessees. At the end of the lease, the customer returns the vehicle to the dealer or may have the option to buy the leased vehicle. In the case of a contract default and repossession, the customer typically remains liable for any deficiency between net auction proceeds and the defaulted contract obligations, including any repossession-related expenses. Included in Net investment in operating leases are net investment in operating leases that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information.

Revenue from rental payments received on operating leases is recognized on a straight-line basis over the term of the lease. The accrual of revenue on operating leases is discontinued at the time an account is determined to be uncollectible.
We receive interest supplements and residual support payments on certain leasing transactions under agreements with Ford. We recognize these upfront collections from Ford and other vehicle acquisition costs as part of Net investment in operating leases, which are amortized to Depreciation on vehicles subject to operating leases over the term of the lease contract.
At the time of purchase, we establish the expected residual value for each vehicle, considering recent auction values, return volumes for our leased vehicles, industrywide used vehicle prices, marketing incentive plans, and vehicle quality data, and benchmark to third-party data depending on availability. Depreciation expense for vehicles under operating leases is then recognized on a straight-line basis, with the associated accumulated depreciation reducing the vehicle's value to its estimated residual value by the end of the scheduled lease term. Our depreciation for leased vehicles is evaluated regularly, using third-party data, and considering factors such as projected residual values at lease termination (including residual value support payments from Ford), the estimated number of vehicles that will be returned to us, and historical early termination rates due to customer defaults. Depreciation expense adjustments, reflecting revised residual value estimates, are applied prospectively on a straight-line basis. We monitor residual values monthly and review accumulated depreciation accuracy quarterly. Our policy is to promptly sell off-lease vehicles. When a vehicle is sold, the difference between net book value and proceeds, plus any lease termination fees (for example, variable lease payments such as excess wear and tear or mileage charges), are recorded as adjustments to Depreciation on vehicles subject to operating leases.

We evaluate the carrying value of held-and-used long-lived asset groups (such as vehicles subject to operating leases) for potential impairment when we determine a triggering event has occurred. When a triggering event occurs, a test for recoverability is performed by comparing projected undiscounted future cash flows to the carrying value of the asset group. If the test for recoverability identifies a possible impairment, the asset group’s fair value is measured in accordance with the fair value measurement framework. An impairment charge is recognized for the amount by which the carrying value of the asset group exceeds its estimated fair value. For the periods presented, we have not recorded any impairment charges.
Transfers of Receivables and Variable Interest Entities
A VIE is an entity that either (i) has insufficient equity to finance its activities without additional subordinated financial support, or (ii) has equity investors who lack the characteristics of a controlling financial interest. We consolidate VIEs of which we are the primary beneficiary. We consider ourselves the primary beneficiary of a VIE when we have both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. Assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims against our general assets. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIEs.

We have the power to direct significant activities of our SPEs when we have the ability to exercise discretion in the servicing of financial assets, issue additional debt, exercise a unilateral call option, add assets to revolving structures, or control investment decisions. We generally retain a portion of the economic interests in the asset-backed securitization transactions, which could be retained in the form of a portion of the senior interests, the subordinated interests, cash reserve accounts, residual interests, and servicing rights. The transfers of assets in our securitization transactions do not qualify for accounting sale treatment.

The transactions create and pass along risks to the variable interest holders, depending on the assets securing the debt and the specific terms of the transactions. We aggregate and analyze the asset-backed securitization transactions based on the risk profile of the product and the type of funding structure, including:

•Retail financing – consumer credit risk and pre-payment risk;
•Wholesale financing – dealer credit risk and Ford risk, as the receivables owned by the VIEs primarily arise from the financing provided by us to Ford-franchised dealers; therefore, the collections depend upon the sale of Ford vehicles; and
•Net investment in operating leases – vehicle residual value risk, consumer credit risk, and pre-payment risk.

As residual interest holder, we are exposed to the underlying residual and credit risk of the collateral and are exposed to interest rate risk in some transactions. The amount of risk absorbed by our residual interests generally is represented by and limited to the amount of overcollateralization of the assets securing the debt and any cash reserves.

We have no obligation to repurchase or replace any securitized asset that subsequently becomes delinquent in payment or otherwise is in default, except when representations and warranties about the eligibility of the securitized assets are breached, or when certain changes are made to the underlying asset contracts. Securitization investors have no recourse to us or our other assets other than as provided above and have no right to require us to repurchase the asset-backed securities. We generally have no obligation to provide liquidity or contribute cash or additional assets to the VIEs and do not guarantee any asset-backed securities. We may choose to support the performance of certain securitization transactions, however, by increasing cash reserves.

Although not contractually required, we regularly support our wholesale securitization programs by repurchasing receivables of a dealer from a VIE when the dealer’s performance is at risk, which transfers the corresponding risk of loss from the VIE to us. In order to continue to fund the wholesale receivables, we also may contribute additional cash or wholesale receivables if the collateral falls below the required levels. The balance of cash related to these contributions was zero at both December 31, 2024 and 2025, and was zero for all of 2024 and 2025.
Certain of our securitization entities may enter into derivative transactions to mitigate interest rate exposure, primarily resulting from fixed-rate assets securing floating-rate debt. In certain instances, the counterparty enters into offsetting derivative transactions with us to mitigate its interest rate risk resulting from derivatives with our securitization entities. These related derivatives are not the obligations of our securitization entities. See Note 7 for additional information regarding the accounting for derivatives.
Derivative Financial Instruments and Hedge Accounting
Derivative Financial Instruments and Hedge Accounting. Derivative assets and derivative liabilities are reported in Derivative financial instruments on our balance sheets.
We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting.
NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)

Fair Value Hedges. We use derivatives to reduce the risk of changes in the fair value of debt. We have designated certain receive-fixed, pay-float interest rate and cross-currency interest rate swaps as fair value hedges of fixed-rate debt. The risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark interest rate and foreign exchange. We report the change in fair value of the hedged debt related to the change in benchmark interest rate in Debt and Interest expense. We report the change in fair value of the hedged debt related to foreign currency in Debt and Other income/(loss), net. Net interest settlements and accruals, and fair value changes on hedging instruments due to the benchmark interest rate change are reported in Interest expense. Fair value changes on the hedging instrument due to foreign currency are reported in Other Income/(loss), net. The cash flows associated with fair value hedges are reported in Net cash provided by/(used in) operating activities on our statements of cash flows.

When a fair value hedge is de-designated, or when the derivative is terminated before maturity, the fair value adjustment to the hedged debt continues to be reported as part of the carrying value of the debt and is recognized in Interest expense over its remaining life.

Derivatives Not Designated as Hedging Instruments. We report net interest settlements and accruals and changes in the fair value of interest rate swaps not designated as hedging instruments in Other income/(loss), net. Foreign currency revaluation on accrued interest along with gains and losses on foreign exchange contracts and cross-currency interest rate swaps are reported in Other income/(loss), net. Cash flows associated with non-designated or de-designated derivatives are reported in Net cash provided by/(used in) investing activities on our statements of cash flows.
Debt
We obtain short-term funding from the issuance of demand notes to retail investors through our Ford Interest Advantage and retail deposit programs. We have certain securitization programs that issue short-term asset-backed debt securities that are sold to institutional investors. Bank borrowings by several of our international affiliates in the ordinary course of business are an additional source of short-term funding. We obtain long-term debt funding through the issuance of a variety of unsecured and asset-backed debt securities in the United States and international capital markets.

Asset-backed debt issued in securitizations is the obligation of the consolidated securitization entity that issued the debt and is payable only out of collections on the underlying securitized assets and related enhancements. This asset-backed debt is not the obligation of Ford Credit or our other subsidiaries.

Debt is reported on our consolidated balance sheets at par value adjusted for unamortized discount or premium, unamortized issuance costs, and adjustments related to designated fair value hedging (see Note 7 for additional information). Debt due within one year at issuance is classified as short-term. Debt due after one year at issuance is classified as long-term. Discounts, premiums, and costs directly related to the issuance of debt are capitalized and amortized over the life of the debt or to the put date and are recorded in Interest expense using the effective interest method. Gains and losses on the extinguishment of debt are recorded in Other income/(loss), net.
Income Taxes
Ford Motor Credit Company LLC and certain of its subsidiaries are disregarded entities for United States income tax purposes. Ford’s consolidated United States federal and state income tax returns include certain of our domestic subsidiaries. Our provision for income taxes includes only income tax liabilities for Ford Credit entities recognized as taxable within a jurisdiction. Certain United States minimum taxes, such as the corporate alternative minimum tax and the tax on global intangible low-taxed income, are generally allocated to us on a separate return basis calculated as if we were a taxable entity. The net minimum tax liability allocated to us will not exceed the net liability as determined on a consolidated basis.

We recognize income tax-related penalties in Provision for/(Benefit from) income taxes on our consolidated income statements.  We recognize income tax-related interest income and expense in Other income/(loss), net on our consolidated income statements.

We account for U.S. tax on global intangible low-taxed income in the period incurred, and we account for investment tax credits using the deferral method.

Deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences that exist between the financial statement carrying value of assets and liabilities and their respective tax bases, and net operating loss carryforwards and tax credit carryforwards on a taxing jurisdiction basis. We measure deferred tax assets and liabilities using enacted tax rates that will apply in the years in which we expect the temporary differences to be recovered or paid.

Our accounting for deferred tax consequences represents our best estimate of the likely future tax consequences of events that have been recognized in our consolidated financial statements or tax returns and their future probability. In assessing the need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. If, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized, we record a valuation allowance.
As disclosed in Note 2, we have prospectively adopted the guidance in ASU 2023-09 Improvements to Income Tax Disclosures
Insurance
We conduct insurance underwriting operations primarily through The American Road Insurance Company (“TARIC”). TARIC is a wholly owned subsidiary of Ford Credit operating in the United States and Canada. TARIC provides physical damage insurance coverage for Ford Credit financed vehicles at dealer locations. TARIC also provides physical damage insurance coverage for non-affiliated company financed vehicles, serviced by Ford Credit, at dealer locations. In addition, TARIC provides a variety of other insurance products and services to Ford and its affiliates, including contractual liability insurance on extended service contracts. TARIC provides commercial automobile insurance for Ford and third parties and general liability insurance and surety bonds for Ford in the United States.

Insurance premiums earned are reported net of reinsurance as Insurance premiums earned. These premiums are earned over their respective policy periods. Physical damage insurance premiums are recognized as income on a monthly basis. Premiums from extended service plan contracts and other contractual liability coverages are earned over the life of the policy based on historical loss experience. Commissions and premium taxes are deferred and amortized over the term of the related policies on the same basis on which premiums are earned.

Reserves for insurance losses and loss adjustment expenses are established based on actuarial estimates and historical loss development patterns, which represents management’s best estimate. If management believes the reserves do not reflect all losses due to changes in conditions, or other relevant factors, an adjustment is made based on management judgment.
Reinsurance activity primarily consists of ceding a majority of the contractual liability insurance business related to automotive extended service plan contracts for a ceding commission. Commissions on ceded amounts are earned on the same basis as related premiums. Reinsurance contracts do not relieve TARIC from its obligations to its policyholders. Failure of reinsurers to honor their obligations could result in losses to TARIC. Therefore, TARIC requires nearly all of its reinsurers to hold collateral and monitors the underlying business and financial performance of its reinsurers to mitigate risk.
Segment Information
We report segment information consistent with the way our chief operating decision maker (“CODM”), our President and Chief Executive Officer, evaluates the operating results and performance of the Company. We conduct our financing operations directly and indirectly through our subsidiaries and affiliates. We offer substantially similar products and services throughout many different regions, subject to local legal restrictions and market conditions. Our reportable segments are: the United States and Canada, Europe, and All Other. Our All Other reportable segment includes our operations in China, Mexico, and our joint venture in South Africa, as well as wind down activities in Brazil, Argentina, and India.

We report segment earnings on an income before income taxes basis after excluding market valuation adjustments to derivatives and exchange-rate fluctuations on foreign currency-denominated transactions, which are reflected in Unallocated Other. These adjustments are excluded when assessing our segment performance because they are carried out at the corporate level. Our CODM reviews segment earnings on an income before income taxes basis to evaluate performance and allocate resources, predominately in the budgeting, planning, and forecasting processes.
Guarantees and Indemnifications
Guarantees and indemnifications are recorded at fair value at their inception. For financial guarantees, subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. For non-financial guarantees, we regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the amount of probable payment is recorded.
In some cases, we have guaranteed debt and other financial obligations of outside third parties and unconsolidated affiliates, including Ford. Expiration dates vary, and guarantees will terminate on payment and/or cancellation of the underlying obligation. A payment by us would be triggered by failure of the third party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from a third party amounts paid by us under the guarantee.

In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction, such as the sale of a business. These indemnifications might include and are not limited to claims relating to any of the following: environmental, tax, and shareholder matters; intellectual property rights; governmental regulations and employment-related matters; dealer and other commercial contractual relationships; and financial matters, such as securitizations. Performance under these indemnities generally would be triggered by a breach of contract claim brought by a counterparty or a third-party claim. While some of these indemnifications are limited in nature, many of them do not limit potential payment. Therefore, we are unable to estimate a maximum amount of future payments that could result from claims made under these unlimited indemnities.
Litigation and Claims

Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include but are not limited to matters arising out of governmental regulations; tax matters; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer and other contractual relationships; investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages in very large amounts, sanctions, assessments, or other relief, which, if granted, would require very large expenditures.

The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome.

We accrue for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time.

For nearly all matters where our historical experience with similar matters is of limited value (i.e., “non-pattern matters”), we evaluate the matters primarily based on the individual facts and circumstances. For non-pattern matters, we evaluate whether there is a reasonable possibility of a material loss in excess of any accrual that can be estimated. It is reasonably possible that some of the matters for which accruals have not been established could be decided unfavorably and could require us to pay damages or make other expenditures. We do not reasonably expect, based on our analysis, that such matters would have a material effect on future financial statements for a particular year, although such an outcome is possible.

As noted, the litigation process is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance. Our assessments are based on our knowledge and experience, but the ultimate outcome of any matter could require payment substantially in excess of the amount that we have accrued and/or disclosed.
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CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES (Tables)
 12 Months Ended
Dec. 31, 2025
Cash and Cash Equivalents [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table categorizes the fair values of cash, cash equivalents, and marketable securities on our consolidated balance sheets at December 31 (in millions):

Fair Value Level20242025
Cash and cash equivalents
United States government1$854 $70 
United States government agencies2400 400 
Non-United States government and agencies2370 1,082 
Corporate debt2339 780 
Total marketable securities classified as cash equivalents1,963 2,332 
Cash, time deposits and money market funds7,309 6,938 
Total cash and cash equivalents$9,272 $9,270 
Marketable securities
United States government1$185 $224 
Non-United States government and agencies279 91 
Corporate debt2252 269 
Other marketable securities2190 200 
Total marketable securities$706 $784 
Schedule of Cash, Cash Equivalents and Restricted Cash
Cash, cash equivalents, and restricted cash as reported in our consolidated statements of cash flows are presented separately on our consolidated balance sheets as follows (in millions):
December 31, 2024December 31, 2025
Cash and cash equivalents$9,272 $9,270 
Restricted cash (a)88 107 
Total cash, cash equivalents, and restricted cash$9,360 $9,377 
__________
(a)Restricted cash is included in Other assets on our consolidated balance sheets and is primarily held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of certain contractual agreements. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions.
v3.25.4
FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Tables)
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Schedule of Total Finance Receivables, Net
Total finance receivables, net at December 31 were as follows (in millions):
20242025
Consumer
Retail installment contracts, gross$79,573 $80,584 
Finance leases, gross8,357 9,274 
Retail financing, gross87,930 89,858 
Unearned interest supplements from Ford and affiliated companies(4,598)(4,486)
   Consumer finance receivables 83,332 85,372 
Non-Consumer
Dealer financing (a)37,384 32,933 
Other financing (b)2,098 2,402 
Non-Consumer finance receivables 39,482 35,335 
Total recorded investment (c)$122,814 $120,707 
Recorded investment in finance receivables$122,814 $120,707 
Allowance for credit losses(864)(911)
Total finance receivables, net$121,950 $119,796 
Net finance receivables subject to fair value (d)$114,069 $111,039 
Fair value 113,545 111,716 
__________
(a)Includes $7.1 billion and $6.0 billion at December 31, 2024 and 2025, respectively, of receivables generated by divisions and affiliates of Ford in connection with vehicle inventories released from Ford and in transit to the destination dealers. Interest earned from Ford and affiliated companies associated with receivables from gate-released vehicles in transit to dealers for the years ended December 31, 2023, 2024, and 2025 was $640 million, $716 million, and $619 million, respectively. Balances at December 31, 2024 and 2025, also include $988 million and $747 million, respectively, of dealer financing receivables with entities (primarily dealers) that are reported as consolidated subsidiaries of Ford. For the years ended December 31, 2023, 2024, and 2025, the interest earned on receivables from consolidated subsidiaries of Ford to which we provide dealer financing was $19 million, $16 million, and $13 million, respectively.
(b)Primarily represents other financing receivables with Ford, which includes amounts associated with purchased receivables and receivables associated with the financing of vehicles that Ford leases to employees.
(c)Earned interest supplements on consumer and non-consumer receivables from Ford and affiliated companies totaled $2.3 billion, $2.9 billion, and $3.0 billion for the years ended December 31, 2023, 2024, and 2025, respectively. Cash received from interest supplements totaled $3.0 billion, $4.3 billion, and $2.8 billion for the years ended December 31, 2023, 2024, and 2025, respectively. Interest supplements due from Ford included in Notes and accounts receivable from affiliated companies totaled $318 million, $269 million, and $343 million for the years ended December 31, 2023, 2024, and 2025, respectively, and are non-cash investing transactions in our consolidated statement of cash flows.
(d)Net finance receivables subject to fair value exclude finance leases.
Schedule of Contractually Due on Finance Leases
The amounts contractually due on finance leases at December 31, 2025 were as follows (in millions):

Finance Lease Receivables
20262027202820292030ThereafterTotal
Contractual maturity$2,089 $1,975 $1,724 $1,068 $148 $6 $7,010 
Less: Present value discount602 
   Total finance lease receivables $6,408 

The reconciliation from finance lease receivables to finance leases, gross and finance leases, net at December 31 is as follows (in millions):
20242025
Finance lease receivables$5,367 $6,408 
Unguaranteed residual assets2,883 2,738 
Initial direct costs107 128 
   Finance leases, gross8,357 9,274 
Unearned interest supplements from Ford and affiliated companies(437)(470)
Allowance for credit losses(39)(47)
   Finance leases, net$7,881 $8,757 
Schedule of Credit Quality
The credit quality analysis of consumer receivables at December 31, 2024 and gross charge-offs during the year ended December 31, 2024 were as follows (in millions):
Amortized Cost Basis by Origination Year
Prior to 202020202021202220232024TotalPercent
Consumer
31-60 days past due$43 $93 $104 $187 $242 $203 $872 1.0 %
Greater than 60 days past due15 27 35 57 82 59 275 0.4 
Total past due58 120 139 244 324 262 1,147 1.4 
Current788 3,162 5,465 12,298 24,189 36,283 82,185 98.6 
Total$846 $3,282 $5,604 $12,542 $24,513 $36,545 $83,332 100.0 %
Gross charge-offs$46 $58 $71 $152 $191 $50 $568 

The credit quality analysis of consumer receivables at December 31, 2025 and gross charge-offs during the year ended December 31, 2025 were as follows (in millions):
Amortized Cost Basis by Origination Year
Prior to 202120212022202320242025TotalPercent
Consumer
31-60 days past due$61 $65 $139 $228 $275 $166 $934 1.1 %
Greater than 60 days past due21 24 51 75 89 60 320 0.4 
Total past due82 89 190 303 364 226 1,254 1.5 
Current1,139 2,206 6,299 15,096 26,754 32,624 84,118 98.5 
Total$1,221 $2,295 $6,489 $15,399 $27,118 $32,850 $85,372 100.0 %
Gross charge-offs$54 $54 $124 $187 $205 $42 $666 
Schedule of Credit Quality Analysis of Dealer Financing Receivables
The credit quality analysis of dealer financing receivables at December 31, 2024 and gross charge-offs during the year ended December 31, 2024 were as follows (in millions):
Amortized Cost Basis by Origination Year
Dealer Loans
Prior to 202020202021202220232024TotalWholesale LoansTotalPercent
Group I$270 $63 $97 $47 $231 $245 $953 $33,345 $34,298 91.7 %
Group II13 — 3 1 28 31 76 2,494 2,570 6.9 
Group III— — 2 — 1 4 7 462 469 1.3 
Group IV— — — — — 1 1 46 47 0.1 
Total (a)$283 $63 $102 $48 $260 $281 $1,037 $36,347 $37,384 100.0 %
Gross charge-offs$1 $— $— $— $— $— $1 $6 $7 
__________
(a)Total past due dealer financing receivables at December 31, 2024 were $8 million. 

The credit quality analysis of dealer financing receivables at December 31, 2025 and gross charge-offs during the year ended December 31, 2025 were as follows (in millions):
Amortized Cost Basis by Origination Year
Dealer Loans
Prior to 202120212022202320242025TotalWholesale LoansTotalPercent
Group I$269 $68 $31 $149 $78 $268 $863 $27,306 $28,169 85.5 %
Group II25 8 4 33 46 44 160 3,979 4,139 12.6 
Group III1 — — 2 1 11 15 584 599 1.8 
Group IV— — — — — 2 2 24 26 0.1 
Total (a)$295 $76 $35 $184 $125 $325 $1,040 $31,893 $32,933 100.0 %
Gross charge-offs$— $— $— $1 $— $— $1 $10 $11 
__________
(a)Total past due dealer financing receivables at December 31, 2025 were $8 million.
Schedule of Allowance for Credit Losses
An analysis of the allowance for credit losses related to finance receivables for the years ended December 31 was as follows (in millions):
20242025
ConsumerNon-ConsumerTotalConsumerNon-ConsumerTotal
Allowance for credit losses
Beginning balance$879 $3 $882 $860 $4 $864 
Charge-offs (568)(7)(575)(666)(11)(677)
Recoveries160 3 163 177 3 180 
Provision for credit losses412 5 417 516 12 528 
Other (a)(23)— (23)15 1 16 
Ending balance$860 $4 $864 $902 $9 $911 
_________
(a)Primarily represents amounts related to foreign currency translation adjustments.
v3.25.4
NET INVESTMENT IN OPERATING LEASES (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Net Investment in Operating Leases
Net investment in operating leases at December 31 was as follows (in millions):
20242025
Vehicles, at cost (a)$25,424 $30,639 
Accumulated depreciation(3,735)(4,137)
Net investment in operating leases$21,689 $26,502 
__________
(a)Includes vehicle acquisition costs less interest supplements and residual support payments we receive on certain leasing transactions under agreements with Ford and affiliated companies, and deferral method investment tax credits.
Schedule of Minimum Payments Receivable on Operating Leases
The amounts contractually due on our operating leases at December 31, 2025 were as follows (in millions):
20262027202820292030Total
Operating lease payments$4,541 $3,181 $1,586 $404 $20 $9,732 
v3.25.4
TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Tables)
 12 Months Ended
Dec. 31, 2025
Transfers and Servicing [Abstract]  
Schedule of Assets and Liabilities Related to Securitization Transactions
Most of our securitization transactions utilize VIEs. The following tables show the assets and debt related to our securitization transactions that were included in our consolidated financial statements at December 31 (in billions):
2024
Cash and Cash EquivalentsFinance Receivables and Net Investment in Operating Leases (a)Related Debt
(c)
Before Allowance
for Credit Losses		Allowance for
Credit Losses		After Allowance
for Credit Losses
VIE (b)
Retail financing $1.7 $37.0 $(0.3)$36.7 $31.6 
Wholesale financing0.3 24.0 — 24.0 10.8 
Finance receivables2.0 61.0 (0.3)60.7 42.4 
Net investment in operating leases0.5 13.3 — 13.3 8.5 
Total VIE$2.5 $74.3 $(0.3)$74.0 $50.9 
Non-VIE
Retail financing$0.5 $10.6 $(0.1)$10.5 $9.3 
Wholesale financing— 0.4 — 0.4 0.2 
Finance receivables0.5 11.0 (0.1)10.9 9.5 
Net investment in operating leases— — — — — 
Total Non-VIE$0.5 $11.0 $(0.1)$10.9 $9.5 
Total securitization transactions
Retail financing$2.2 $47.6 $(0.4)$47.2 $40.9 
Wholesale financing 0.3 24.4 — 24.4 11.0 
Finance receivables2.5 72.0 (0.4)71.6 51.9 
Net investment in operating leases0.5 13.3 — 13.3 8.5 
Total securitization transactions$3.0 $85.3 $(0.4)$84.9 $60.4 
__________
(a)Unearned interest supplements and residual support are excluded from securitization transactions.
(b)Includes assets to be used to settle the liabilities of the consolidated VIEs.
(c)Includes unamortized discount and debt issuance costs.
NOTE 6. TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES (Continued)

2025
Cash and Cash EquivalentsFinance Receivables and Net Investment in Operating Leases (a)Related Debt
(c)
Before Allowance
for Credit Losses		Allowance for
Credit Losses		After Allowance
for Credit Losses
VIE (b)
Retail financing$1.7 $36.2 $(0.3)$35.9 $29.9 
Wholesale financing0.2 19.9 — 19.9 13.5 
Finance receivables1.9 56.1 (0.3)55.8 43.4 
Net investment in operating leases0.6 13.6 — 13.6 8.7 
Total VIE$2.5 $69.7 $(0.3)$69.4 $52.1 
Non-VIE
Retail financing$0.4 $7.6 $(0.1)$7.5 $7.0 
Wholesale financing— 0.4 — 0.4 0.4 
Finance receivables0.4 8.0 (0.1)7.9 7.4 
Net investment in operating leases— — — — — 
Total Non-VIE$0.4 $8.0 $(0.1)$7.9 $7.4 
Total securitization transactions
Retail financing$2.1 $43.8 $(0.4)$43.4 $36.9 
Wholesale financing0.2 20.3 — 20.3 13.9 
Finance receivables2.3 64.1 (0.4)63.7 50.8 
Net investment in operating leases0.6 13.6 — 13.6 8.7 
Total securitization transactions$2.9 $77.7 $(0.4)$77.3 $59.5 
__________
(a)Unearned interest supplements and residual support are excluded from securitization transactions.
(b)Includes assets to be used to settle the liabilities of the consolidated VIEs.
(c)Includes unamortized discount and debt issuance costs.
Schedule of Interest Expense Related to Securitization Debt
Interest expense related to securitization debt for the years ended December 31 was as follows (in millions):
202320242025
VIE$1,872 $2,165 $2,027 
Non-VIE591 610 466 
Total securitization transactions$2,463 $2,775 $2,493 
Schedule of Exposures Based on the Fair Value of Derivative Instruments Related to Securitization Programs Our exposures based on the fair value of derivative instruments with external counterparties related to securitization programs at December 31 were as follows (in millions):
20242025
Derivative
Asset		Derivative
Liability		Derivative
Asset		Derivative
Liability
Derivatives of the VIEs$34 $100 $21 $40 
Derivatives related to the VIEs29 32 8 23 
Other securitization related derivatives39 27 1 40 
Total exposures related to securitization$102 $159 $30 $103 
Schedule of Derivative Expense/(Income) Related to Securitization Transactions
Derivative expense/(income) related to our securitization transactions for the years ended December 31 was as follows (in millions):
202320242025
Derivatives of the VIEs$25 $14 $(9)
Derivatives related to the VIEs(38)12 26 
Other securitization related derivatives(26)(82)19 
Total derivative expense/(income) related to securitization$(39)$(56)$36 
v3.25.4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Gains/(Losses) by Hedge Designation
The gains/(losses), by hedge designation, reported in income for the years ended December 31 were as follows (in millions):
202320242025
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments
$(507)$(361)$(162)
Fair value changes on hedging instruments196 (220)548 
Fair value changes on hedged debt (260)182 (530)
Cross-currency interest rate swap contracts
Net interest settlements and accruals on hedging instruments(79)(133)(79)
Fair value changes on hedging instruments96 (134)474 
Fair value changes on hedged debt(96)108 (463)
Derivatives not designated as hedging instruments
Interest rate contracts37 (85)(48)
Foreign currency exchange contracts (a)(35)268 (135)
Cross-currency interest rate swap contracts127 (272)276 
Total$(521)$(647)$(119)
__________
(a)Reflects forward contracts between us and an affiliated company.
Schedule of Fair Value of Our Derivative Instruments
The fair value of our derivative instruments and the associated notional amounts at December 31 were as follows (in millions):
20242025
NotionalFair Value of AssetsFair Value of LiabilitiesNotionalFair Value of AssetsFair Value of Liabilities
Fair value hedges
Interest rate contracts$16,194 $66 $645 $18,582 $374 $220 
Cross-currency interest rate swaps3,802 9 139 4,158 383 5 
Derivatives not designated as hedging instruments
Interest rate contracts76,977 305 845 87,293 364 619 
Foreign currency exchange contracts (a)9,716 271 117 6,566 28 75 
Cross-currency interest rate swap contracts5,455 133 246 7,121 379 28 
Total derivative financial instruments, gross (b) (c) $112,144 $784 $1,992 $123,720 $1,528 $947 
__________
(a)Includes forward contracts between us and an affiliated company, including offsetting forward contracts with our consolidated entities, totaling $5.3 billion and $3.5 billion in notional amounts and $115 million and $24 million in both assets and liabilities at December 31, 2024 and 2025, respectively.
(b)At December 31, 2024 and 2025, we held collateral of $27 million and $5 million, and we posted collateral of $127 million and $102 million, respectively.
(c)At December 31, 2024 and 2025, the fair value of assets and liabilities available for counterparty netting was $450 million and $610 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.
v3.25.4
OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED REVENUE (Tables)
 12 Months Ended
Dec. 31, 2025
Other Assets and Other Liabilities and Deferred Income [Abstract]  
Schedule of Other Assets and Other Liabilities
Other assets at December 31 were as follows (in millions):
20242025
Prepaid reinsurance premiums and other reinsurance recoverables$876 $992 
Accrued interest and other non-finance receivables666 648 
Deferred tax assets178 512 
Collateral held for resale, at net realizable value392 477 
Property and equipment, net of accumulated depreciation (a)283 338 
Investment in non-consolidated affiliates182 180 
Restricted cash88 107 
Operating lease assets40 38 
Other350 297 
Total other assets$3,055 $3,589 
__________
(a)Accumulated depreciation was $448 million and $446 million at December 31, 2024 and 2025, respectively.

Other liabilities and deferred revenue at December 31 were as follows (in millions):
20242025
Interest payable$1,098 $1,183 
Unearned insurance premiums and fees995 1,134 
Income tax and related interest (a)131 225 
Payroll and employee benefits86 104 
Operating lease liabilities42 41 
Other275 493 
Total other liabilities and deferred revenue$2,627 $3,180 
__________
(a)Includes tax payable to affiliated companies of $9 million and $71 million at December 31, 2024 and 2025, respectively.
v3.25.4
DEBT AND COMMITMENTS (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Debt
Debt outstanding and interest rates at December 31 were as follows (in millions):
 Interest Rates
DebtAverage Contractual
 2024202520242025
Short-term debt
Unsecured debt
Floating rate demand notes$12,040 $12,950 
Other short-term debt4,173 3,478 
Asset-backed debt1,200 1,922 
Total short-term debt
17,413 18,350 4.7 %3.7 %
Long-term debt
Unsecured debt
Notes payable within one year12,871 13,625 
Notes payable after one year49,607 52,357 
Asset-backed debt
Notes payable within one year23,050 19,831 
Notes payable after one year36,224 37,741 
Unamortized (discount)/premium and issuance costs(253)(247)
Fair value adjustments (a)(1,044)(240)
Total long-term debt120,455 123,067 4.8 %4.7 %
Total debt$137,868 $141,417 4.8 %4.6 %
Fair value of debt$140,046 $144,213 
Interest rate characteristics of debt payable after one year
Fixed interest rate69,085 71,962 
Variable interest rate (generally based on SOFR or other short-term rates)16,746 18,136 
Total payable after one year
$85,831 $90,098 
__________
(a)These adjustments are related to hedging activity and include discontinued hedging relationship adjustments of $(450) million and $(319) million at December 31, 2024 and 2025, respectively. The carrying value of hedged debt was $41.1 billion and $41.7 billion at December 31, 2024 and 2025, respectively.
Schedule of Maturities of Long-term Debt ebt maturities, including both scheduled principal and interest payments, at December 31, 2025 were as follows (in millions):
2026 (a)2027202820292030Thereafter (b)Total
Unsecured debt $30,053 $12,941 $11,657 $8,613 $7,836 $11,310 $82,410 
Asset-backed debt21,753 17,819 12,104 4,581 3,237 — 59,494 
Total
51,806 30,760 23,761 13,194 11,073 11,310 141,904 
Unamortized (discount)/premium and issuance costs(247)
Fair value adjustments (240)
Total debt$141,417 
Interest payments related to long-term debt$5,309 $3,858 $2,583 $1,633 $1,057 $1,666 $16,106 
__________
(a)Includes $18,350 million for short-term and $33,456 million for long-term debt.
(b)Matures between 2031 and 2035.
v3.25.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Taxes
The components of income taxes excluding other comprehensive income/(loss) and equity in net results of affiliated companies accounted for after-tax for the years ended December 31 were as follows (in millions):

202320242025
Income/(Loss) before income taxes
U.S.$797 $773 $1,763 
Non-U.S.525 881 794 
Total$1,322 $1,654 $2,557 
Provision for/(Benefit from) income taxes
Current
Federal$190 $(43)$(31)
Non-U.S.361 156 155 
State and local10 9 9 
Total current561 122 133 
Deferred
Federal65 239 170 
Non-U.S.(627)37 82 
State and local(1)— (3)
Total deferred(563)276 249 
Total$(2)$398 $382 
Schedule of Reconciliation of Income Tax
The reconciliation of the Company’s effective tax rate for the years ended December 31 were as follows:

20232024
Reconciliation of the Company’s effective tax rate
U.S. federal statutory tax21.0 %21.0 %
U.S. disregarded entities4.8 0.5 
Non-U.S. tax rate differential(0.9)0.2 
U.S. state and local taxes0.5 0.4 
Nontaxable foreign currency gains and losses(1.5)(0.7)
Dispositions and restructurings (a)(25.9)— 
U.S. tax on non-U.S. earnings— 3.6 
Prior year settlements and claims(0.8)— 
Other2.6 (0.9)
Effective tax rate(0.2)%24.1 %
__________
(a)2023 includes a benefit of $343 million associated with legal entity restructuring within our leasing operations.
NOTE 10. INCOME TAXES (Continued)

2025
Reconciliation of the Company’s provision for/(benefit from) income taxes and effective tax rateAmountPercent
U.S. federal statutory tax$537 21.0 %
Federal
U.S. disregarded entities(225)(8.8)
Effect of cross-border tax laws (a)
Global intangible low-taxed income13 0.5 
Passive Income24 0.9 
Other(21)(0.8)
U.S. state and local taxes (b)6 0.2 
Foreign
Mexico
Non-taxable or nondeductible items(32)(1.3)
Other34 1.3 
United Kingdom
Non-taxable or nondeductible items33 1.3 
Other(3)(0.1)
Other foreign tax effects(11)(0.4)
Changes in unrecognized tax benefits27 1.1 
Total$382 14.9 %
__________
(a)Includes the impact of foreign tax credits.
(b)For the year ended December 31, 2025, the majority of state and local taxes were incurred in California.
Schedule of Components of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities at December 31 were as follows (in millions):
20242025
Deferred tax assets
Net operating loss carryforwards$611 $778 
Tax credit carryforwards119 224 
Provision for credit losses99 122 
Other foreign deferred tax assets111 112 
All other 68 56 
Total gross deferred tax assets$1,008 $1,292 
Less: Valuation allowances(45)(67)
Total net deferred tax assets$963 $1,225 
Deferred tax liabilities
Leasing transactions692 867 
Other foreign deferred tax liabilities431 484 
All other26 22 
Total deferred tax liabilities$1,149 $1,373 
Net deferred tax liabilities$186 $148 
Schedule of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 was as follows (in millions):
20242025
Beginning balance$69 $65 
Increase - tax positions in prior periods14 33 
Decrease - tax positions in prior periods— (4)
Settlements(7)(7)
Lapse of statute of limitations(1)(1)
Foreign currency translation adjustment(10)9 
Ending balance$65 $95 
NOTE 10. INCOME TAXES (Continued)
v3.25.4
INSURANCE (Tables)
 12 Months Ended
Dec. 31, 2025
Insurance [Abstract]  
Schedule of Insurance Assets
Cash, cash equivalents, and marketable securities related to insurance activities at December 31 were as follows (in millions):
20242025
Cash and cash equivalents$85 $103 
Marketable securities644 719 
Total cash, cash equivalents, and marketable securities
$729 $822 
Schedule of Insurance Premiums
Insurance premiums written and earned for the years ended December 31 were as follows (in millions):
202320242025
WrittenEarnedWrittenEarnedWrittenEarned
Direct$394 $359 $472 $415 $556 $432 
Assumed— — — — — — 
Ceded(275)(240)(300)(244)(373)(258)
Net premiums
$119 $119 $172 $171 $183 $174 
Schedule of Insurance Expenses The components of insurance expenses for the years ended December 31 were as follows (in millions):
202320242025
Insurance losses$90 $181 $116 
Loss adjustment expenses4 5 9 
Reinsurance income and other expenses, net(41)(40)(39)
Insurance expenses
$53 $146 $86 
v3.25.4
OTHER INCOME/(LOSS) (Tables)
 12 Months Ended
Dec. 31, 2025
Other Income and Expenses [Abstract]  
Schedule of Other Income/(Loss)
The amounts included in Other income/(loss), net for the years ended December 31 were as follows (in millions):
202320242025
Interest and investment income (a)$545 $506 $389 
Gains/(losses) on derivatives177 (272)564 
Currency revaluation gains/(losses) (216)114 (577)
Other (b)8 76 33 
Total other income/(loss), net$514 $424 $409 
__________
(a)Includes interest income, primarily on notes receivable, from affiliated companies of $2 million, $3 million, and $2 million for the years ended December 31, 2023, 2024, and 2025, respectively.
(b)Includes the reclassification of foreign currency translation net gains of $43 million and net losses of $6 million in 2024 and 2025, respectively, to Other Income/(Loss),net from Accumulated other comprehensive income/(loss) related to the liquidation, or substantially complete liquidation of certain investments in our international markets.
v3.25.4
SEGMENT AND GEOGRAPHIC INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
Key operating data for our business segments for the years ended or at December 31 was as follows (in millions):
United States and CanadaEuropeAll OtherTotal
Segments		Unallocated OtherTotal
2023
Total revenue $9,362 $1,316 $441 $11,119 $— $11,119 
Total revenue less:
Depreciation on vehicles subject to operating leases
2,284 25 — 2,309 — 2,309 
Interest expense5,199 684 242 6,125 186 6,311 
Provision for credit losses237 10 31 278 — 278 
Other segment items (a)528 291 93 912 (13)899 
Income before income taxes1,114 306 75 1,495 (173)1,322 
Other segment disclosures:
Net finance receivables and net investment in operating leases107,695 20,249 5,211 133,155 — 133,155 
Total assets 118,611 24,601 5,993 149,205 — 149,205 
2024
Total revenue $11,290 $1,508 $455 $13,253 $— $13,253 
Total revenue less:
Depreciation on vehicles subject to operating leases
2,447 35 — 2,482 — 2,482 
Interest expense6,062 875 258 7,195 388 7,583 
Provision for credit losses333 34 50 417 — 417 
Other segment items (a)988 207 87 1,282 (165)1,117 
Income before income taxes 1,460 357 60 1,877 (223)1,654 
Other segment disclosures:
Net finance receivables and net investment in operating leases118,969 20,469 4,201 143,639 — 143,639 
Total assets129,599 23,993 4,700 158,292 — 158,292 
2025
Total revenue $12,172 $1,558 $376 $14,106 $— $14,106 
Total revenue less:
Depreciation on vehicles subject to operating leases
2,476 46 — 2,522 — 2,522 
Interest expense5,903 788 202 6,893 240 7,133 
Provision for credit losses432 50 46 528 — 528 
Other segment items (a)1,198 515 71 1,784 (418)1,366 
Income before income taxes 2,163 159 (b)57 2,379 178 2,557 
Other segment disclosures:
Net finance receivables and net investment in operating leases120,326 22,357 3,615 146,298 — 146,298 
Total assets132,601 25,634 4,218 162,453 — 162,453 
__________
(a)Other items consists of Operating expenses, Insurance expenses, and Other income/(loss), net.
(b)Includes charges of $208 million for the year ended December 31, 2025 related to an industrywide review of historical U.K. dealer commissions.
Schedule of Geographic Information
Key data, split geographically into the United States (which is our country of domicile), Canada, and All Other, for the years ended or at December 31 were as follows (in millions):
202320242025
Total revenue
United States$8,012 $9,714 $10,379 
Canada1,350 1,577 1,793 
All Other1,757 1,962 1,934 
Total revenue$11,119 $13,253 $14,106 
Net property and net investment in operating leases
United States$15,642 $16,560 $19,707 
Canada4,621 5,048 6,387 
All Other338 364 746 
Net property and net investment in operating leases$20,601 $21,972 $26,840 
v3.25.4
COMMITMENTS AND CONTINGENCIES (Tables)
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Operating Lease Liability
The amounts contractually due on our operating lease liabilities at December 31, 2025 were as follows (in millions):
20262027202820292030ThereafterTotal
Operating lease$14 $13 $7 $4 $2 $7 $47 
Less: Present value discount6 
   Total operating lease liabilities$41 
Schedule of Supplemental Information Related to Operating Leases
Supplemental information related to operating leases for the years ended December 31 was as follows (in millions):
202320242025
Operating and variable lease expense$22$22$18
Right-of-use assets obtained in exchange for operating lease liabilities5414
Weighted average remaining lease term for operating leases (in years)555
Weighted average remaining discount rate for operating leases4.1 %4.3 %4.7 %
v3.25.4
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Cash and cash equivalents $ 9,270 $ 9,272
Marketable securities 784 706
Total marketable securities classified as cash equivalents    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Cash and cash equivalents 2,332 1,963
Cash, time deposits and money market funds    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Cash and cash equivalents 6,938 7,309
Level 1 | United States government    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Cash and cash equivalents 70 854
Level 1 | United States government    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Marketable securities 224 185
Level 2 | United States government agencies    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Cash and cash equivalents 400 400
Level 2 | Non-United States government and agencies    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Cash and cash equivalents 1,082 370
Level 2 | Corporate debt    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Cash and cash equivalents 780 339
Level 2 | Non-United States government and agencies    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Marketable securities 91 79
Level 2 | Corporate debt    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Marketable securities 269 252
Level 2 | Other marketable securities    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Marketable securities $ 200 $ 190
v3.25.4
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash and Cash Equivalents [Abstract]        
Cash and cash equivalents $ 9,270 $ 9,272    
Restricted cash 107 88    
Total cash, cash equivalents, and restricted cash $ 9,377 $ 9,360 $ 10,795 $ 10,520
v3.25.4
FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Wholesale financing 97.00%    
Finance receivables past due 31 days    
Fair value retail contracts 120 days    
Threshold of whether it is probable that finance receivables will be held for the foreseeable future 70.00%    
Accrued interest $ 315 $ 336  
Sales-type and direct financing leases $ 576 $ 515 $ 381
Non-accrual of revenue 90 days    
Financing receivable, threshold period past due, writeoff 120 days    
Allowance for credit loss, period increase $ 47    
Minimum      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Lease plans for terms 24 months    
Maximum      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Lease plans for terms 60 months    
v3.25.4
FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Total Finance Receivables, Net (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Allowance for Credit Losses [Line Items]      
Financing Receivables $ 120,707 $ 122,814  
Finance leases, gross 6,408    
Retail financing, gross 9,274 8,357  
Allowance for credit losses (911) (864) $ (882)
Total finance receivables, net 119,796 121,950  
Retail financing 6,247 5,637 4,236
Dealer financing 2,603 2,922 2,403
Related party transaction, earned interest supplements, financing receivables 3,000 2,900 2,300
Related party transactions cash received interest supplements financing receivables 2,800 4,300 3,000
Increase decrease in related party subvention receivable, finance receivable 343 269 318
Affiliated Entity      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Retail financing 619 716 640
Dealer financing 13 16 19
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Total finance receivables, net 111,039 114,069  
Fair value 111,716 113,545  
Finance leases, gross      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Total finance receivables, net 8,757 7,881  
Consumer      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Financing Receivables 85,372 83,332  
Allowance for credit losses (902) (860) (879)
Consumer | Retail      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Financing Receivables 85,372 83,332  
Retail financing, gross 89,858 87,930  
Unearned interest supplements from Ford and affiliated companies (4,486) (4,598)  
Consumer | Retail installment contracts, gross      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Financing Receivables 80,584 79,573  
Consumer | Retail installment contracts, gross | Affiliated Entity      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Financing Receivables 6,000 7,100  
Consumer | Finance leases, gross      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Finance leases, gross 9,274 8,357  
Non-Consumer      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Financing Receivables 35,335 39,482  
Allowance for credit losses (9) (4) $ (3)
Non-Consumer | Dealer financing      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Financing Receivables 32,933 37,384  
Non-Consumer | Dealer financing | Affiliated Entity      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Financing Receivables 747 988  
Non-Consumer | Other financing      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Financing Receivables $ 2,402 $ 2,098  
v3.25.4
FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Contractually Due on Finance Leases (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Receivables [Abstract]  
2026 $ 2,089
2027 1,975
2028 1,724
2029 1,068
2030 148
Thereafter 6
Total 7,010
Less: Present value discount 602
Finance leases, gross $ 6,408
v3.25.4
FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Reconciliation from Finance Leases (Details) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Finance lease receivables $ 6,408 $ 5,367
Unguaranteed residual assets 2,738 2,883
Initial direct costs 128 107
Retail financing, gross 9,274 8,357
Unearned interest supplements from Ford and affiliated companies (470) (437)
Finance leases, net 8,757 7,881
Allowance for credit losses    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Allowance for credit losses $ (47) $ (39)
v3.25.4
FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Credit Quality (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing Receivables $ 120,707 $ 122,814
Financing Receivable, Allowance for Credit Losses, Write-downs 677 575
Consumer    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing receivable, originated, more than five years before current fiscal year 1,221 846
Financing receivable, year five, originated, four years before current fiscal year 2,295 3,282
Financing receivable, originated three years before latest fiscal year 6,489 5,604
Financing receivable, originated two years before latest fiscal year 15,399 12,542
Financing receivable, originated in fiscal year before latest fiscal year 27,118 24,513
Financing receivable, originated in current fiscal year 32,850 36,545
Financing Receivables $ 85,372 $ 83,332
Percent 100.00% 100.00%
Financing receivable, originated, more than five years before current fiscal year, writeoff $ 54 $ 46
Financing receivable, year five, originated, four years before current fiscal year, writeoff 54 58
Financing receivable, year four, originated, three years before current fiscal year, writeoff 124 71
Financing receivable, year three, originated, two years before current fiscal year, writeoff 187 152
Financing receivable, year two, originated, fiscal year before current fiscal year, writeoff 205 191
Financing receivable, year one, originated, current fiscal year, writeoff 42 50
Financing Receivable, Allowance for Credit Losses, Write-downs 666 568
Consumer | Total past due    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing receivable, originated, more than five years before current fiscal year 82 58
Financing receivable, year five, originated, four years before current fiscal year 89 120
Financing receivable, originated three years before latest fiscal year 190 139
Financing receivable, originated two years before latest fiscal year 303 244
Financing receivable, originated in fiscal year before latest fiscal year 364 324
Financing receivable, originated in current fiscal year 226 262
Financing Receivables $ 1,254 $ 1,147
Percent 1.50% 1.40%
Consumer | 31-60 days past due    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing receivable, originated, more than five years before current fiscal year $ 61 $ 43
Financing receivable, year five, originated, four years before current fiscal year 65 93
Financing receivable, originated three years before latest fiscal year 139 104
Financing receivable, originated two years before latest fiscal year 228 187
Financing receivable, originated in fiscal year before latest fiscal year 275 242
Financing receivable, originated in current fiscal year 166 203
Financing Receivables $ 934 $ 872
Percent 1.10% 1.00%
Consumer | Greater than 60 days past due    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing receivable, originated, more than five years before current fiscal year $ 21 $ 15
Financing receivable, year five, originated, four years before current fiscal year 24 27
Financing receivable, originated three years before latest fiscal year 51 35
Financing receivable, originated two years before latest fiscal year 75 57
Financing receivable, originated in fiscal year before latest fiscal year 89 82
Financing receivable, originated in current fiscal year 60 59
Financing Receivables $ 320 $ 275
Percent 0.40% 0.40%
Consumer | Current    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing receivable, originated, more than five years before current fiscal year $ 1,139 $ 788
Financing receivable, year five, originated, four years before current fiscal year 2,206 3,162
Financing receivable, originated three years before latest fiscal year 6,299 5,465
Financing receivable, originated two years before latest fiscal year 15,096 12,298
Financing receivable, originated in fiscal year before latest fiscal year 26,754 24,189
Financing receivable, originated in current fiscal year 32,624 36,283
Financing Receivables $ 84,118 $ 82,185
Percent 98.50% 98.60%
v3.25.4
FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Credit Quality Analysis of Dealer Financing Receivables (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing Receivables $ 120,707 $ 122,814
Dealer Loans | Total past due    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing Receivables 8 8
Non-Consumer    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing Receivables $ 35,335 $ 39,482
Percent 100.00% 100.00%
Non-Consumer | Group I    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Percent 85.50% 91.70%
Non-Consumer | Group II    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Percent 12.60% 6.90%
Non-Consumer | Group III    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Percent 1.80% 1.30%
Non-Consumer | Group IV    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Percent 0.10% 0.10%
Non-Consumer | Wholesale and Dealer Loans    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing Receivables $ 32,933 $ 37,384
Financing receivable, revolving, writeoff 11 7
Non-Consumer | Wholesale and Dealer Loans | Group I    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing Receivables 28,169 34,298
Non-Consumer | Wholesale and Dealer Loans | Group II    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing Receivables 4,139 2,570
Non-Consumer | Wholesale and Dealer Loans | Group III    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing Receivables 599 469
Non-Consumer | Wholesale and Dealer Loans | Group IV    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing Receivables 26 47
Non-Consumer | Dealer Loans    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing receivable, originated, more than five years before current fiscal year 295 283
Financing receivable, year five, originated, four years before current fiscal year 76 63
Financing receivable, originated three years before latest fiscal year 35 102
Financing receivable, originated two years before latest fiscal year 184 48
Financing receivable, originated in fiscal year before latest fiscal year 125 260
Financing receivable, originated in current fiscal year 325 281
Financing Receivables 1,040 1,037
Financing receivable, originated, more than five years before current fiscal year, writeoff 0 1
Financing receivable, year five, originated, four years before current fiscal year, writeoff 0 0
Financing receivable, year four, originated, three years before current fiscal year, writeoff 0 0
Financing receivable, year three, originated, two years before current fiscal year, writeoff 1 0
Financing receivable, year two, originated, fiscal year before current fiscal year, writeoff 0 0
Financing receivable, year one, originated, current fiscal year, writeoff 0 0
Financing receivable, revolving, writeoff 1 1
Non-Consumer | Dealer Loans | Group I    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing receivable, originated, more than five years before current fiscal year 269 270
Financing receivable, year five, originated, four years before current fiscal year 68 63
Financing receivable, originated three years before latest fiscal year 31 97
Financing receivable, originated two years before latest fiscal year 149 47
Financing receivable, originated in fiscal year before latest fiscal year 78 231
Financing receivable, originated in current fiscal year 268 245
Financing Receivables 863 953
Non-Consumer | Dealer Loans | Group II    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing receivable, originated, more than five years before current fiscal year 25 13
Financing receivable, year five, originated, four years before current fiscal year 8 0
Financing receivable, originated three years before latest fiscal year 4 3
Financing receivable, originated two years before latest fiscal year 33 1
Financing receivable, originated in fiscal year before latest fiscal year 46 28
Financing receivable, originated in current fiscal year 44 31
Financing Receivables 160 76
Non-Consumer | Dealer Loans | Group III    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing receivable, originated, more than five years before current fiscal year 1 0
Financing receivable, year five, originated, four years before current fiscal year 0 0
Financing receivable, originated three years before latest fiscal year 0 2
Financing receivable, originated two years before latest fiscal year 2 0
Financing receivable, originated in fiscal year before latest fiscal year 1 1
Financing receivable, originated in current fiscal year 11 4
Financing Receivables 15 7
Non-Consumer | Dealer Loans | Group IV    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing receivable, originated, more than five years before current fiscal year 0 0
Financing receivable, year five, originated, four years before current fiscal year 0 0
Financing receivable, originated three years before latest fiscal year 0 0
Financing receivable, originated two years before latest fiscal year 0 0
Financing receivable, originated in fiscal year before latest fiscal year 0 0
Financing receivable, originated in current fiscal year 2 1
Financing Receivables 2 1
Non-Consumer | Wholesale Loans    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing Receivables 31,893 36,347
Financing receivable, revolving, writeoff 10 6
Non-Consumer | Wholesale Loans | Group I    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing Receivables 27,306 33,345
Non-Consumer | Wholesale Loans | Group II    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing Receivables 3,979 2,494
Non-Consumer | Wholesale Loans | Group III    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing Receivables 584 462
Non-Consumer | Wholesale Loans | Group IV    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Financing Receivables $ 24 $ 46
v3.25.4
FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Allowance for Credit Losses (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ 864 $ 882  
Charge-offs (677) (575)  
Recoveries 180 163  
Provision for credit losses 528 417 $ 278
Other 16 (23)  
Ending balance 911 864 882
Consumer      
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance 860 879  
Charge-offs (666) (568)  
Recoveries 177 160  
Provision for credit losses 516 412  
Other 15 (23)  
Ending balance 902 860 879
Non-Consumer      
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance 4 3  
Charge-offs (11) (7)  
Recoveries 3 3  
Provision for credit losses 12 5  
Other 1 0  
Ending balance $ 9 $ 4 $ 3
v3.25.4
NET INVESTMENT IN OPERATING LEASES - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property Subject to or Available for Operating Lease [Line Items]      
Maximum payment extension 6 months    
Total payment extension 12 months    
Notes and accounts receivable from affiliated companies $ 179 $ 152 $ 110
Maximum      
Property Subject to or Available for Operating Lease [Line Items]      
Length of lease contract 60 months    
Affiliated Entity      
Property Subject to or Available for Operating Lease [Line Items]      
Net investment in operating leases $ 2,300 1,900  
Cash received 1,300 1,000 900
Depreciation on vehicles subject to operating leases $ 1,700 $ 1,600 $ 1,100
v3.25.4
NET INVESTMENT IN OPERATING LEASES - Schedule of Net investment in Operating Leases (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Vehicles, at cost $ 30,639 $ 25,424
Accumulated depreciation (4,137) (3,735)
Net investment in operating leases $ 26,502 $ 21,689
v3.25.4
NET INVESTMENT IN OPERATING LEASES - Schedule of Minimum Payments Receivable on Operating Leases (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Leases [Abstract]  
2026 $ 4,541
2027 3,181
2028 1,586
2029 404
2030 20
Total $ 9,732
v3.25.4
TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES - Narrative (Details) - Variable Interest Entity, Primary Beneficiary - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Schedule of Securitization Transactions [Line Items]    
Cash collateral to support wholesale transactions $ 0 $ 0
Cash contribution collateral to support wholesale securitization program $ 0 $ 0
v3.25.4
TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES - Schedule of Assets and Liabilities Related to Securitization Transactions (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Securitization Transactions [Line Items]      
Cash and cash equivalents $ 9,270 $ 9,272  
After Allowance for Credit Losses 146,298 143,639 $ 133,155
Related Debt 141,417 137,868  
Total securitization transactions | Securitization Transactions      
Securitization Transactions [Line Items]      
Cash and cash equivalents 2,900 3,000  
Before Allowance for Credit Losses 77,700 85,300  
Allowance for Credit Losses (400) (400)  
After Allowance for Credit Losses 77,300 84,900  
Related Debt 59,500 60,400  
Total securitization transactions | Securitization Transactions | Retail financing      
Securitization Transactions [Line Items]      
Cash and cash equivalents 2,100 2,200  
Before Allowance for Credit Losses 43,800 47,600  
Allowance for Credit Losses (400) (400)  
After Allowance for Credit Losses 43,400 47,200  
Related Debt 36,900 40,900  
Total securitization transactions | Securitization Transactions | Wholesale financing      
Securitization Transactions [Line Items]      
Cash and cash equivalents 200 300  
Before Allowance for Credit Losses 20,300 24,400  
Allowance for Credit Losses 0 0  
After Allowance for Credit Losses 20,300 24,400  
Related Debt 13,900 11,000  
Total securitization transactions | Securitization Transactions | Finance receivables      
Securitization Transactions [Line Items]      
Cash and cash equivalents 2,300 2,500  
Before Allowance for Credit Losses 64,100 72,000  
Allowance for Credit Losses (400) (400)  
After Allowance for Credit Losses 63,700 71,600  
Related Debt 50,800 51,900  
Total securitization transactions | Securitization Transactions | Net investment in operating leases      
Securitization Transactions [Line Items]      
Cash and cash equivalents 600 500  
Before Allowance for Credit Losses 13,600 13,300  
Allowance for Credit Losses 0 0  
After Allowance for Credit Losses 13,600 13,300  
Related Debt 8,700 8,500  
VIE      
Securitization Transactions [Line Items]      
Cash and cash equivalents 2,523 2,494  
Related Debt 52,054 50,855  
VIE | Securitization Transactions      
Securitization Transactions [Line Items]      
Cash and cash equivalents 2,500 2,500  
Before Allowance for Credit Losses 69,700 74,300  
Allowance for Credit Losses (300) (300)  
After Allowance for Credit Losses 69,400 74,000  
Related Debt 52,100 50,900  
VIE | Securitization Transactions | Retail financing      
Securitization Transactions [Line Items]      
Cash and cash equivalents 1,700 1,700  
Before Allowance for Credit Losses 36,200 37,000  
Allowance for Credit Losses (300) (300)  
After Allowance for Credit Losses 35,900 36,700  
Related Debt 29,900 31,600  
VIE | Securitization Transactions | Wholesale financing      
Securitization Transactions [Line Items]      
Cash and cash equivalents 200 300  
Before Allowance for Credit Losses 19,900 24,000  
Allowance for Credit Losses 0 0  
After Allowance for Credit Losses 19,900 24,000  
Related Debt 13,500 10,800  
VIE | Securitization Transactions | Finance receivables      
Securitization Transactions [Line Items]      
Cash and cash equivalents 1,900 2,000  
Before Allowance for Credit Losses 56,100 61,000  
Allowance for Credit Losses (300) (300)  
After Allowance for Credit Losses 55,800 60,700  
Related Debt 43,400 42,400  
VIE | Securitization Transactions | Net investment in operating leases      
Securitization Transactions [Line Items]      
Cash and cash equivalents 600 500  
Before Allowance for Credit Losses 13,600 13,300  
Allowance for Credit Losses 0 0  
After Allowance for Credit Losses 13,600 13,300  
Related Debt 8,700 8,500  
Non-VIE | Securitization Transactions      
Securitization Transactions [Line Items]      
Cash and cash equivalents 400 500  
Before Allowance for Credit Losses 8,000 11,000  
Allowance for Credit Losses (100) (100)  
After Allowance for Credit Losses 7,900 10,900  
Related Debt 7,400 9,500  
Non-VIE | Securitization Transactions | Retail financing      
Securitization Transactions [Line Items]      
Cash and cash equivalents 400 500  
Before Allowance for Credit Losses 7,600 10,600  
Allowance for Credit Losses (100) (100)  
After Allowance for Credit Losses 7,500 10,500  
Related Debt 7,000 9,300  
Non-VIE | Securitization Transactions | Wholesale financing      
Securitization Transactions [Line Items]      
Cash and cash equivalents 0 0  
Before Allowance for Credit Losses 400 400  
Allowance for Credit Losses 0 0  
After Allowance for Credit Losses 400 400  
Related Debt 400 200  
Non-VIE | Securitization Transactions | Finance receivables      
Securitization Transactions [Line Items]      
Cash and cash equivalents 400 500  
Before Allowance for Credit Losses 8,000 11,000  
Allowance for Credit Losses (100) (100)  
After Allowance for Credit Losses 7,900 10,900  
Related Debt 7,400 9,500  
Non-VIE | Securitization Transactions | Net investment in operating leases      
Securitization Transactions [Line Items]      
Cash and cash equivalents 0 0  
Before Allowance for Credit Losses 0 0  
Allowance for Credit Losses 0 0  
After Allowance for Credit Losses 0 0  
Related Debt $ 0 $ 0  
v3.25.4
TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES - Schedule of Interest Expense Related to Securitization Debt (Details) - Securitization Transactions - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Schedule of Securitization Transactions [Line Items]      
Interest expense $ 2,493 $ 2,775 $ 2,463
Variable Interest Entity, Primary Beneficiary      
Schedule of Securitization Transactions [Line Items]      
Interest expense 2,027 2,165 1,872
Non-VIE      
Schedule of Securitization Transactions [Line Items]      
Interest expense $ 466 $ 610 $ 591
v3.25.4
TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES - Schedule of Fair Value of Derivative Instruments with External Counterparties Related to Securitization (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Derivative Asset $ 1,528 $ 784
Derivative Liability 947 1,992
Variable Interest Entity, Primary Beneficiary    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Derivative Asset 21 34
Derivative Liability 40 100
Securitization Transactions    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Derivative Asset 30 102
Derivative Liability 103 159
Securitization Transactions | Derivatives related to the VIEs    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Derivative Asset 8 29
Derivative Liability 23 32
Securitization Transactions | Other securitization related derivatives    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Derivative Asset 1 39
Derivative Liability 40 27
Securitization Transactions | Variable Interest Entity, Primary Beneficiary    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Derivative Asset 21 34
Derivative Liability $ 40 $ 100
v3.25.4
TRANSFERS OF RECEIVABLES AND VARIABLE INTEREST ENTITIES - Schedule of Derivative Expense/(Income) Related to Securitization Transactions (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Derivative expense/(income) $ 119 $ 647 $ 521
Securitization Transactions      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Derivative expense/(income) 36 (56) (39)
Securitization Transactions | Derivatives related to the VIEs      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Derivative expense/(income) 26 12 (38)
Securitization Transactions | Other securitization related derivatives      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Derivative expense/(income) 19 (82) (26)
Securitization Transactions | Variable Interest Entity, Primary Beneficiary      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Derivative expense/(income) $ (9) $ 14 $ 25
v3.25.4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Gains/(Losses) by Hedge Designation (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Derivatives not designated as hedging instruments $ (119) $ (647) $ (521)
Interest rate contracts | Derivatives not designated as hedging instruments      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Derivatives not designated as hedging instruments (48) (85) 37
Interest rate contracts | Fair value hedges | Designated as Hedging Instrument      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Net interest settlements and accruals on hedging instruments (162) (361) (507)
Fair value changes on hedging instruments 548 (220) 196
Fair value changes on hedged debt (530) 182 (260)
Interest rate contracts | Cross-currency interest rate swap contracts | Designated as Hedging Instrument      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Net interest settlements and accruals on hedging instruments (79) (133) (79)
Fair value changes on hedging instruments 474 (134) 96
Fair value changes on hedged debt (463) 108 (96)
Foreign currency exchange contracts | Derivatives not designated as hedging instruments      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Derivatives not designated as hedging instruments (135) 268 (35)
Cross-currency interest rate swap contracts | Derivatives not designated as hedging instruments      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Derivatives not designated as hedging instruments $ 276 $ (272) $ 127
v3.25.4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Fair Value of Our Derivative Instruments (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Notional $ 123,720 $ 112,144
Derivative Asset 1,528 784
Derivative Liability 947 1,992
Derivative, collateral, obligation to return cash 5 27
Derivative, collateral, right to reclaim cash 102 127
Derivative asset, not offset, policy election deduction 610 450
Derivative liability, not offset, policy election deduction 610 450
Level 2 | Fair Value, Recurring    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative Asset 1,528 784
Derivative Liability 947 1,992
Interest rate contracts | Derivatives not designated as hedging instruments    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Notional 87,293 76,977
Interest rate contracts | Derivatives not designated as hedging instruments | Level 2 | Fair Value, Recurring    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative Asset 364 305
Derivative Liability 619 845
Interest rate contracts | Derivatives not designated as hedging instruments | Level 2 | Fair Value, Recurring | Affiliated Entity    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative Asset 24  
Interest rate contracts | Fair value hedges | Designated as Hedging Instrument    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Notional 18,582 16,194
Interest rate contracts | Fair value hedges | Designated as Hedging Instrument | Level 2 | Fair Value, Recurring    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative Asset 374 66
Derivative Liability 220 645
Interest rate contracts | Cross-currency interest rate swap contracts | Designated as Hedging Instrument    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Notional 4,158 3,802
Interest rate contracts | Cross-currency interest rate swap contracts | Designated as Hedging Instrument | Level 2 | Fair Value, Recurring    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative Asset 383 9
Derivative Liability 5 139
Foreign currency exchange contracts | Derivatives not designated as hedging instruments    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Notional 6,566 9,716
Foreign currency exchange contracts | Derivatives not designated as hedging instruments | Affiliated Entity    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Notional 3,500 5,300
Foreign currency exchange contracts | Derivatives not designated as hedging instruments | Level 2 | Fair Value, Recurring    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative Asset 28 271
Derivative Liability 75 117
Foreign currency exchange contracts | Derivatives not designated as hedging instruments | Level 2 | Fair Value, Recurring | Affiliated Entity    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative Liability 24 115
Cross-currency interest rate swap contracts | Derivatives not designated as hedging instruments    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Notional 7,121 5,455
Cross-currency interest rate swap contracts | Derivatives not designated as hedging instruments | Level 2 | Fair Value, Recurring    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative Asset 379 133
Derivative Liability $ 28 $ 246
v3.25.4
OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED REVENUE - Schedule of Other Assets and Other Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Related Party Transaction [Line Items]    
Prepaid reinsurance premiums and other reinsurance recoverables $ 992 $ 876
Accrued interest and other non-finance receivables 648 666
Deferred tax assets 512 178
Collateral held for resale, at net realizable value 477 392
Property and equipment, net of accumulated depreciation 338 283
Investment in non-consolidated affiliates 180 182
Restricted cash $ 107 $ 88
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Total other assets Total other assets
Operating lease assets $ 38 $ 40
Other 297 350
Total other assets 3,589 3,055
Accumulated depreciation $ 446 $ 448
v3.25.4
OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED REVENUE - Schedule of Other Liabilities and Deferred Revenue (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Related Party Transaction [Line Items]    
Interest payable $ 1,183 $ 1,098
Unearned insurance premiums and fees 1,134 995
Income tax and related interest 225 131
Payroll and employee benefits 104 86
Operating lease liabilities $ 41 $ 42
Operating Lease, Liability, Statement of Financial Position [Extensible List] Total other liabilities and deferred revenue Total other liabilities and deferred revenue
Other $ 493 $ 275
Total other liabilities and deferred revenue 3,180 2,627
Affiliated Entity    
Related Party Transaction [Line Items]    
Income tax and related interest $ 71 $ 9
v3.25.4
DEBT AND COMMITMENTS - Schedule of Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Total short-term debt $ 18,350 $ 17,413
Notes payable after one year 90,098 85,831
Unamortized (discount)/premium and issuance costs (247) (253)
Fair value adjustments (240) (1,044)
Total long-term debt 123,067 120,455
Total debt $ 141,417 $ 137,868
Average Contractual 4.60% 4.80%
Discontinued Hedged Debt $ (319) $ (450)
Carrying value of hedged debt 41,700 41,100
Fixed interest rate    
Debt Instrument [Line Items]    
Notes payable after one year 71,962 69,085
Variable interest rate (generally based on SOFR or other short-term rates)    
Debt Instrument [Line Items]    
Notes payable after one year 18,136 16,746
Floating rate demand notes    
Debt Instrument [Line Items]    
Total short-term debt 12,950 12,040
Other short-term debt    
Debt Instrument [Line Items]    
Total short-term debt 3,478 4,173
Asset-backed debt    
Debt Instrument [Line Items]    
Total short-term debt 1,922 1,200
Notes payable within one year 19,831 23,050
Notes payable after one year $ 37,741 $ 36,224
Total short-term debt    
Debt Instrument [Line Items]    
Average Contractual 3.70% 4.70%
Unsecured debt    
Debt Instrument [Line Items]    
Notes payable within one year $ 13,625 $ 12,871
Notes payable after one year $ 52,357 $ 49,607
Total long-term debt    
Debt Instrument [Line Items]    
Average Contractual 4.70% 4.80%
Fair Value, Measurements, Nonrecurring | Level 2    
Debt Instrument [Line Items]    
Fair value of debt $ 144,213 $ 140,046
v3.25.4
DEBT AND COMMITMENTS - Narrative (Details)
€ in Millions, £ in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2025
GBP (£)
Dec. 31, 2025
EUR (€)
Schedule Of Debt [Line Items]          
Fair value of short-term debt $ 16,400 $ 16,200      
Interest paid 6,700 7,000 $ 5,800    
Proceeds for operating leases 11,400        
Debt 141,417 $ 137,868      
Asset-backed capacity 300        
FCE bank plc liquidity 48     £ 36  
ABS liquidity 366       € 311
FCE Bank plc          
Schedule Of Debt [Line Items]          
Minimum Net Work Requirement 500        
Unsecured debt          
Schedule Of Debt [Line Items]          
Committed unsecured credit facilities 1,500        
Borrowing availability 900        
Syndicated Credit Facility | FCE Bank plc          
Schedule Of Debt [Line Items]          
Committed unsecured credit facilities 787     585  
Borrowing availability 418     £ 310  
Syndicated Credit Facility | Ford Bank          
Schedule Of Debt [Line Items]          
Committed unsecured credit facilities 247       210
Borrowing availability 59       € 50
Contractually Committed Liquidity Facilities          
Schedule Of Debt [Line Items]          
Proceeds for operating leases 43,600        
Debt 26,400        
Contractually Committed Liquidity Facilities | Operating Lease          
Schedule Of Debt [Line Items]          
Proceeds for operating leases 11,000        
Contractually Committed Liquidity Facilities | Retail          
Schedule Of Debt [Line Items]          
Proceeds for operating leases 24,900        
Contractually Committed Liquidity Facilities | Wholesale financing          
Schedule Of Debt [Line Items]          
Proceeds for operating leases $ 7,700        
v3.25.4
DEBT AND COMMITMENTS - Schedule of Maturities of Long-term Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Debt Maturities [Line Items]    
2026 $ 51,806  
2027 30,760  
2028 23,761  
2029 13,194  
2030 11,073  
Thereafter 11,310  
Total 141,904  
Unamortized (discount)/premium and issuance costs (247)  
Total fair value adjustments (240) $ (1,044)
Total debt 141,417 137,868
Interest payable 1,183 $ 1,098
Unsecured debt    
Debt Maturities [Line Items]    
2026 30,053  
2027 12,941  
2028 11,657  
2029 8,613  
2030 7,836  
Thereafter 11,310  
Total 82,410  
Asset-backed debt    
Debt Maturities [Line Items]    
2026 21,753  
2027 17,819  
2028 12,104  
2029 4,581  
2030 3,237  
Thereafter 0  
Total 59,494  
Short-term debt    
Debt Maturities [Line Items]    
2026 18,350  
Long-term debt    
Debt Maturities [Line Items]    
2026 33,456  
Interest payable, 2026 5,309  
Interest payable, 2027 3,858  
Interest payable, 2028 2,583  
Interest payable, 2029 1,633  
Interest payable, 2030 1,057  
Interest payable, Thereafter 1,666  
Interest payable $ 16,106  
v3.25.4
INCOME TAXES - Schedule of Components of Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income/(Loss) before income taxes      
U.S. $ 1,763 $ 773 $ 797
Non-U.S. 794 881 525
Income before income taxes 2,557 1,654 1,322
Provision for/(Benefit from) income taxes, current      
Federal (31) (43) 190
Non-U.S. 155 156 361
State and local 9 9 10
Total current 133 122 561
Provision for/(Benefit from) income taxes, deferred      
Federal 170 239 65
Non-U.S. 82 37 (627)
State and local (3) 0 (1)
Total deferred 249 276 (563)
Provision for/(Benefit from) income taxes (Note 10) $ 382 $ 398 $ (2)
v3.25.4
INCOME TAXES - Schedule of Reconciliation of Income Tax 2024 and 2023 (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
U.S. federal statutory tax 21.00% 21.00% 21.00%
U.S. disregarded entities (8.80%) 0.50% 4.80%
Non-U.S. tax rate differential   0.20% (0.90%)
U.S. state and local taxes 0.20% 0.40% 0.50%
Non-taxable or nondeductible items   (0.70%) (1.50%)
Dispositions and restructurings   0.00% (25.90%)
U.S. tax on non-U.S. earnings   3.60% 0.00%
Prior year settlements and claims   0.00% (0.80%)
Other   (0.90%) 2.60%
Effective tax rate 14.90% 24.10% (0.20%)
Legal entity restructuring within our leasing operations     $ 343
v3.25.4
INCOME TAXES - Schedule of U.S. Federal Statutory Tax Rate 2025 (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
U.S. federal statutory tax $ 537    
U.S. disregarded entities (225)    
Global intangible low-taxed income 13    
Passive Income 24    
U.S. state and local income taxes 6    
Changes in unrecognized tax benefits 27    
Provision for/(Benefit from) income taxes (Note 10) $ 382 $ 398 $ (2)
Percent      
U.S. federal statutory tax 21.00% 21.00% 21.00%
U.S. disregarded entities (8.80%) 0.50% 4.80%
Global intangible low-taxed income 0.50%    
Passive Income 0.90%    
Other   (0.90%) 2.60%
U.S. state and local taxes 0.20% 0.40% 0.50%
Non-taxable or nondeductible items   (0.70%) (1.50%)
Non-U.S. tax rate differential   0.20% (0.90%)
Changes in unrecognized tax benefits 1.10%    
Effective tax rate 14.90% 24.10% (0.20%)
United States      
Amount      
Other $ (21)    
Percent      
Other (0.80%)    
Mexico      
Amount      
Other $ 34    
Non-taxable or nondeductible items $ (32)    
Percent      
Other 1.30%    
Non-taxable or nondeductible items (1.30%)    
United Kingdom      
Amount      
Other $ (3)    
Non-taxable or nondeductible items $ 33    
Percent      
Other (0.10%)    
Nontaxable foreign currency gains and losses 1.30%    
Other foreign tax effects      
Amount      
Other foreign tax effects $ (11)    
Percent      
Non-U.S. tax rate differential (0.40%)    
v3.25.4
INCOME TAXES - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Cash paid for income taxes $ 92 $ 166 $ 248
Net operating loss carryforwards 2,900    
Net operating loss carryforwards 778 611  
Deferred tax assets, operating loss carryforwards, not subject to expiration 39    
Tax credits 224    
Unrecognized tax benefits that would affect the effective tax rate if recognized 95 65  
Net tax-related interest expense on income taxes 9 3 $ 12
Net tax-related interest payable $ 42 $ 23  
v3.25.4
INCOME TAXES - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets    
Net operating loss carryforwards $ 778 $ 611
Tax credit carryforwards 224 119
Provision for credit losses 122 99
Other foreign deferred tax assets 112 111
All other 56 68
Total gross deferred tax assets 1,292 1,008
Less: Valuation allowances (67) (45)
Total net deferred tax assets 1,225 963
Deferred tax liabilities    
Leasing transactions 867 692
Other foreign deferred tax liabilities 484 431
All other 22 26
Total deferred tax liabilities 1,373 1,149
Net deferred tax liabilities $ 148 $ 186
v3.25.4
INCOME TAXES - Schedule of Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Unrecognized Tax Benefits [Roll Forward]    
Beginning balance $ 65 $ 69
Increase - tax positions in prior periods 33 14
Decrease - tax positions in prior periods (4) 0
Settlements (7) (7)
Lapse of statute of limitations (1) (1)
Foreign currency translation adjustment   (10)
Foreign currency translation adjustment 9  
Ending balance $ 95 $ 65
v3.25.4
INSURANCE - Schedule of Insurance Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Insurance [Abstract]    
Cash and cash equivalents $ 103 $ 85
Marketable securities 719 644
Total cash, cash equivalents, and marketable securities $ 822 $ 729
v3.25.4
INSURANCE - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Insurance [Abstract]      
Assets held by insurance regulators $ 12 $ 11  
Prepaid reinsurance premiums and other reinsurance 992 876  
Related party transaction, prepaid reinsurance premiums and other reinsurance recoverables 98 98  
Unearned insurance premiums and fees 1,134 995  
Insurance liabilities 978 863  
Liability for reported insurance claims and estimate of unreported claims 31 35  
Earned insurance premiums 253 259 $ 249
Insurance loss and loss adjustment expenses 199 224 161
Ceded insurance expenses $ 258 $ 233 $ 198
v3.25.4
INSURANCE - Schedule of Insurance Premiums (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Written      
Direct $ 556 $ 472 $ 394
Assumed 0 0 0
Ceded (373) (300) (275)
Net premiums 183 172 119
Earned      
Direct 432 415 359
Assumed 0 0 0
Ceded (258) (244) (240)
Net premiums $ 174 $ 171 $ 119
v3.25.4
INSURANCE - Schedule of Insurance Expenses (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Insurance [Abstract]      
Insurance losses $ 116 $ 181 $ 90
Loss adjustment expenses 9 5 4
Reinsurance income and other expenses, net (39) (40) (41)
Insurance expenses $ 86 $ 146 $ 53
v3.25.4
OTHER INCOME/(LOSS) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Other Income and Expenses [Abstract]      
Derivative, gain (loss), statement of income or comprehensive income, extensible enumeration Total other income/(loss), net Total other income/(loss), net Total other income/(loss), net
Interest and investment income $ 389 $ 506 $ 545
Gains/(losses) on derivatives 564 (272) 177
Currency revaluation gains/(losses) (577) 114 (216)
Other 33 76 8
Total other income/(loss), net 409 424 514
Interest income 2 3 $ 2
Reclassification of foreign currency translation net gain (loss) $ (6) $ 43  
v3.25.4
SEGMENT AND GEOGRAPHIC INFORMATION - Narrative (Details)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Number Of Reportable Segments Disclosed By Definition Flag Our reportable segments are: the United States and Canada, Europe, and All Other.
v3.25.4
SEGMENT AND GEOGRAPHIC INFORMATION - Schedule of Segment Reporting Information, by Segment (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Total revenue $ 14,106 $ 13,253 $ 11,119
Total revenue less:      
Depreciation on vehicles subject to operating leases 2,522 2,482 2,309
Interest expense 7,133 7,583 6,311
Provision for credit losses 528 417 278
Other segment items 1,366 1,117 899
Income before income taxes 2,557 1,654 1,322
Net finance receivables and net investment in operating leases 146,298 143,639 133,155
Total assets 162,453 158,292 149,205
Accrual expenses 208    
Reportable segments      
Segment Reporting Information [Line Items]      
Total revenue 14,106 13,253 11,119
Total revenue less:      
Depreciation on vehicles subject to operating leases 2,522 2,482 2,309
Interest expense 6,893 7,195 6,125
Provision for credit losses 528 417 278
Other segment items 1,784 1,282 912
Income before income taxes 2,379 1,877 1,495
Net finance receivables and net investment in operating leases 146,298 143,639 133,155
Total assets 162,453 158,292 149,205
Reportable segments | United States and Canada      
Segment Reporting Information [Line Items]      
Total revenue 12,172 11,290 9,362
Total revenue less:      
Depreciation on vehicles subject to operating leases 2,476 2,447 2,284
Interest expense 5,903 6,062 5,199
Provision for credit losses 432 333 237
Other segment items 1,198 988 528
Income before income taxes 2,163 1,460 1,114
Net finance receivables and net investment in operating leases 120,326 118,969 107,695
Total assets 132,601 129,599 118,611
Reportable segments | Europe      
Segment Reporting Information [Line Items]      
Total revenue 1,558 1,508 1,316
Total revenue less:      
Depreciation on vehicles subject to operating leases 46 35 25
Interest expense 788 875 684
Provision for credit losses 50 34 10
Other segment items 515 207 291
Income before income taxes 159 357 306
Net finance receivables and net investment in operating leases 22,357 20,469 20,249
Total assets 25,634 23,993 24,601
Reportable segments | All Other      
Segment Reporting Information [Line Items]      
Total revenue 376 455 441
Total revenue less:      
Depreciation on vehicles subject to operating leases 0 0 0
Interest expense 202 258 242
Provision for credit losses 46 50 31
Other segment items 71 87 93
Income before income taxes 57 60 75
Net finance receivables and net investment in operating leases 3,615 4,201 5,211
Total assets 4,218 4,700 5,993
Unallocated Other      
Segment Reporting Information [Line Items]      
Total revenue 0 0 0
Total revenue less:      
Depreciation on vehicles subject to operating leases 0 0 0
Interest expense 240 388 186
Provision for credit losses 0 0 0
Other segment items (418) (165) (13)
Income before income taxes 178 (223) (173)
Net finance receivables and net investment in operating leases 0 0 0
Total assets $ 0 $ 0 $ 0
v3.25.4
SEGMENT AND GEOGRAPHIC INFORMATION - Schedule of Geographic Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 14,106 $ 13,253 $ 11,119
Net property and net investment in operating leases 26,840 21,972 20,601
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 10,379 9,714 8,012
Net property and net investment in operating leases 19,707 16,560 15,642
Mexico      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 1,793 1,577 1,350
Net property and net investment in operating leases 6,387 5,048 4,621
All Other      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 1,934 1,962 1,757
Net property and net investment in operating leases $ 746 $ 364 $ 338
v3.25.4
COMMITMENTS AND CONTINGENCIES - Narrative (Details)
$ in Millions
Dec. 31, 2025
USD ($)
extension_option
Dec. 31, 2024
USD ($)
Other Commitments [Line Items]    
Number of options to extend lease (or more) | extension_option 1  
Guarantor obligations, current carrying value $ 0 $ 0
Minimum    
Other Commitments [Line Items]    
Lessee, operating lease, term of contract 1 year  
Maximum    
Other Commitments [Line Items]    
Lessee, operating lease, term of contract 26 years  
Counter Guarantee | Related Party    
Other Commitments [Line Items]    
Counter guarantee $ 16 15
Financial Guarantee    
Other Commitments [Line Items]    
Maximum potential payments $ 63 $ 61
v3.25.4
COMMITMENTS AND CONTINGENCIES - Schedule of Operating Lease Liability (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]    
2026 $ 14  
2027 13  
2028 7  
2029 4  
2030 2  
Thereafter 7  
Total 47  
Less: Present value discount 6  
Operating lease liabilities $ 41 $ 42
v3.25.4
COMMITMENTS AND CONTINGENCIES - Schedule of Supplemental Information Related to Operating Leases (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]      
Operating and variable lease expense $ 18 $ 22 $ 22
Right-of-use assets obtained in exchange for operating lease liabilities $ 14 $ 4 $ 5
Weighted average remaining lease term for operating leases (in years) 5 years 5 years 5 years
Weighted average remaining discount rate for operating leases 4.70% 4.30% 4.10%