Document and Entity Information Document	12 Months Ended
Document and Entity Information Document	Dec. 31, 2019 USD ($) shares
Entity Registrant Name	FORD MOTOR CREDIT CO LLC
Entity Central Index Key	0000038009
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Document Annual Report	true
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding \| shares	0
Entity Shell Company	false
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Public Float \| $	$ 0
Membership Interests Description	All of the limited liability company interests in the registrant (“Shares”) are held by an affiliate of the registrant. None of the Shares are publicly traded.
Entity File Number	1-6368
Document Transition Report	false
City Area Code	313
Local Phone Number	322-3000
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	One American Road
Entity Address, City or Town	Dearborn,
Entity Address, State or Province	MI
Entity Tax Identification Number	38-1612444
Entity Address, Postal Zip Code	48126
Title of 12(g) Security	Section 12(g)
Entity Interactive Data Current	Yes
F/20S [Member]
Title of 12(b) Security	3.588% Notes due June 2, 2020
Trading Symbol	F/20S
Security Exchange Name	NYSE
F/23E [Member]
Title of 12(b) Security	0.623% Notes due June 28, 2023*
Trading Symbol	F/23E
Security Exchange Name	NYSE
F/25i [Member]
Title of 12(b) Security	1.355% Notes due February 7, 2025*
Trading Symbol	F/25I
Security Exchange Name	NYSE
F/24O [Member]
Title of 12(b) Security	4.125% Notes due on June 20, 2024*
Trading Symbol	F/24O
Security Exchange Name	NYSE
F/24M [Member]
Title of 12(b) Security	3.021% Notes due on March 6, 2024*
Trading Symbol	F/24M
Security Exchange Name	NYSE
F/25K [Member]
Title of 12(b) Security	4.535% Notes on March 6, 2025*
Trading Symbol	F/25K
Security Exchange Name	NYSE
F/26N [Member]
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
F/23G [Member]
Title of 12(b) Security	1.514% Notes due on February 17, 2023*
Trading Symbol	F/23G
Security Exchange Name	NYSE
F/26AB [Member]
Title of 12(b) Security	2.386% Notes due on February 17, 2026*
Trading Symbol	F/26AB
Security Exchange Name	NYSE
F/25L [Member]
Title of 12(b) Security	2.330% Notes due on November 25, 2025*
Trading Symbol	F/25L
Security Exchange Name	NYSE
F/24Q [Member]
Title of 12(b) Security	3.683% Notes due December 3, 2024*
Trading Symbol	F/24Q
Security Exchange Name	NYSE
F/21C [Member]
Title of 12(b) Security	Floating Rate Notes due May 14, 2021*
Trading Symbol	F/21C
Security Exchange Name	NYSE
F/21AQ [Member]
Title of 12(b) Security	Floating Rate Notes due December 1, 2021*
Trading Symbol	F/21AQ
Security Exchange Name	NYSE
F/22T [Member]
Title of 12(b) Security	Floating Rate Notes due December 7, 2022*
Trading Symbol	F/22T
Security Exchange Name	NYSE
F/23D [Member]
Title of 12(b) Security	Floating Rate Notes due November 15, 2023*
Trading Symbol	F/23D
Security Exchange Name	NYSE
F/24L [Member]
Title of 12(b) Security	Floating Rate Notes due December 1, 2024*
Trading Symbol	F/24L
Security Exchange Name	NYSE

Consolidated Income Statement - USD ($) $ in Millions	12 Months Ended
Consolidated Income Statement - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Financing revenue
Operating leases	$ 5,899	$ 5,795	$ 5,552
Retail financing	3,958	3,891	3,451
Dealer financing	2,265	2,207	1,903
Other	96	84	70
Total Financing Revenue	12,218	11,977	10,976
Depreciation on vehicles subject to operating leases	(3,635)	(3,973)	(4,254)
Interest expense	(4,389)	(3,930)	(3,175)
Net financing margin	4,194	4,074	3,547
Other revenue
Insurance premiums earned	182	167	158
Fee based revenue and other	223	238	243
Total financing margin and other revenue	4,599	4,479	3,948
Expenses
Operating expenses	1,416	1,429	1,295
Provision for credit losses	296	426	469
Insurance expenses	103	77	124
Total expenses	1,815	1,932	1,888
Other income, net	214	80	250
Income before income taxes	2,998	2,627	2,310
Provision for income taxes	770	403	(697)
Net income	$ 2,228	$ 2,224	$ 3,007

Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net income	$ 2,228	$ 2,224	$ 3,007
Other comprehensive income/(loss), net of tax
Foreign currency translation	44	(410)	471
Other comprehensive income/(loss), net of tax	44	(410)	471
Comprehensive Income (Loss)	$ 2,272	$ 1,814	$ 3,478

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Balance Sheet - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 9,067	$ 9,607
Marketable securities	3,296	1,308
Finance receivables, net	114,317	118,814
Net investment in operating leases	27,659	27,449
Notes and accounts receivable from affiliated companies	863	905
Derivative financial instruments	1,128	670
Disposal Group, Including Discontinued Operation, Assets	1,698	0
Other assets	3,398	3,456
Total assets	161,426	162,209
Liabilities
Customer deposits, dealer reserves, and other	1,002	1,097
Affiliated companies	421	426
Total accounts payable	1,423	1,523
Debt	140,029	140,146
Deferred income taxes	2,593	2,595
Derivative financial instruments	356	663
Disposal Group, Including Discontinued Operation, Other Liabilities	45	0
Other liabilities and deferred income	2,633	2,307
Total liabilities	147,079	147,234
Shareholder's interest
Shareholder's interest	5,227	5,227
Accumulated other comprehensive income	(785)	(829)
Retained earnings	9,905	10,577
Total shareholder’s interest	14,347	14,975
Total liabilities and shareholder's interest	161,426	162,209
Variable Interest Entity, Primary Beneficiary [Member]
ASSETS
Cash and cash equivalents	3,202	2,728
Finance receivables, net	58,478	58,662
Net investment in operating leases	14,883	16,332
Derivative financial instruments	12	27
Liabilities
Debt	50,865	53,269
Derivative financial instruments	19	24
Retail Installment loans, dealer financing, and other financing [Domain]
ASSETS
Finance receivables, net	106,131	110,388
Finance leases [Domain]
ASSETS
Finance receivables, net	$ 8,186	$ 8,426

Consolidated Statement of Shareholder's Interest - USD ($) $ in Millions	3 Months Ended				12 Months Ended
	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Total shareholder’s interest	$ 14,347		$ 14,975		$ 14,347	$ 14,975
Shareholder's Interest [Roll Forward]
Balance at beginning of period		$ 14,975		$ 15,884	14,975	15,884	$ 12,803
Net income	441	603	526	701	2,228	2,224	3,007
Other comprehensive income/(loss), net of tax					44	(410)	471
Balance at end of period	14,347		14,975		14,347	14,975	15,884
Shareholder's Interest [Member]
Shareholder's Interest [Roll Forward]
Balance at beginning of period		5,227		5,227	5,227	5,227	5,227
Net income					0	0	0
Other comprehensive income/(loss), net of tax					0	0	0
Distributions declared					0	0	0
Balance at end of period	5,227		5,227		5,227	5,227	5,227
Accumulated Other Comprehensive Income/(Loss) (Note11) [Member]
Shareholder's Interest [Roll Forward]
Balance at beginning of period		(829)		(419)	(829)	(419)	(890)
Net income					0	0	0
Other comprehensive income/(loss), net of tax					44	(410)	471
Distributions declared					0	0	0
Balance at end of period	(785)		(829)		(785)	(829)	(419)
Retained Earnings [Member]
Shareholder's Interest [Roll Forward]
Balance at beginning of period		$ 10,577		$ 11,076	10,577	11,076	8,466
Net income					2,228	2,224	3,007
Other comprehensive income/(loss), net of tax					0	0	0
Distributions declared					(2,900)	(2,723)	(406)
Balance at end of period	$ 9,905		10,577		9,905	10,577	11,076
Parent [Member]
Shareholder's Interest [Roll Forward]
Distributions declared					$ (2,900)	(2,723)	$ (406)
Accounting Standards Update 2014-09 [Member] \| Shareholder's Interest [Member]
Shareholder's Interest [Roll Forward]
Cumulative Effect of New Accounting Principle in Period of Adoption			0			0
Accounting Standards Update 2014-09 [Member] \| Accumulated Other Comprehensive Income/(Loss) (Note11) [Member]
Shareholder's Interest [Roll Forward]
Cumulative Effect of New Accounting Principle in Period of Adoption			0			0
Accounting Standards Update 2014-09 [Member] \| Retained Earnings [Member]
Shareholder's Interest [Roll Forward]
Cumulative Effect of New Accounting Principle in Period of Adoption			9			9
Accounting Standards Update 2014-09 [Member] \| Parent [Member]
Shareholder's Interest [Roll Forward]
Cumulative Effect of New Accounting Principle in Period of Adoption			$ 9			$ 9

Consolidated Statement of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Net income	$ 2,228	$ 2,224	$ 3,007
Adjustments to reconcile net income/(loss) to net cash provided by operations
Provision for credit losses	296	426	469
Depreciation and amortization	4,427	4,841	5,047
Amortization of upfront interest supplements	(2,147)	(2,041)	(1,686)
Net Change in Finance Receivables Held-for-sale	(78)	0	0
Net Change in Wholesale Receivables Held-for-sale	(222)	0	0
Net change in deferred income taxes	37	259	(923)
Net change in other assets	132	(276)	(606)
Net change in other liabilities	137	115	480
All other operating activities	103	155	(123)
Net cash provided by/(used in) operating activities	4,913	5,703	5,665
Cash flows from investing activities
Purchases of finance receivables	(38,881)	(44,384)	(43,232)
Principal collections of finance receivables	42,011	42,553	37,277
Purchases of operating lease vehicles	(12,990)	(14,306)	(12,780)
Liquidations of operating lease vehicles	9,332	9,223	8,538
Net change in wholesale receivables and other	1,752	(2,661)	(874)
Purchases of marketable securities	(5,883)	(3,632)	(5,899)
Proceeds from sales and maturities of marketable securities	3,931	5,171	6,316
Settlements of derivatives	(221)	226	(117)
All other investing activities	(56)	102	(30)
Net Cash Provided by (Used in) Investing Activities	(1,005)	(7,708)	(10,801)
Cash flows from financing activities
Proceeds from issuances of long-term debt	44,522	49,954	44,994
Principal payments on long-term debt	(44,665)	(42,530)	(39,372)
Change in short-term debt, net	(1,278)	(2,263)	1,195
Cash distributions to parent	(2,900)	(2,723)	(406)
All other financing activities	(116)	(151)	(105)
Net Cash Provided by (Used in) Financing Activities	(4,437)	2,287	6,306
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	50	(217)	327
Cash, cash equivalents and restricted cash at beginning of period (Note 3)	9,747	9,682	8,185
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	(479)	65	1,497
Cash, cash equivalents and restricted cash at end of period (Note 3)	$ 9,268	$ 9,747	$ 9,682

Presentation	12 Months Ended
Presentation	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Presentation	PRESENTATION Principles of Consolidation The accompanying consolidated financial statements include Ford Motor Credit Company LLC, its controlled domestic and foreign subsidiaries and joint ventures, and consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Affiliates that we do not consolidate, but for which we have significant influence over operating and financial policies, are accounted for using the equity method. We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). We prepare our financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”). We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation. Separations and Restructuring Actions During 2019, we executed separation and restructuring actions associated with our plans to transform the operational fitness of our business. The impact of these actions was a loss of $56 million, primarily reflecting separation costs. Related to these restructuring actions, we determined that it is not probable that we will hold certain assets and liabilities for more than the following twelve months, and these assets and liabilities are reported as held-for-sale. The total value of our Assets held-for-sale and Liabilities held-for-sale presented at fair value at December 31, 2019 are $1,698 million and $45 million, respectively. In the fourth quarter of 2019, we committed to a plan to sell our operations in Forso Nordic AB (“Forso”), a wholly owned subsidiary, which provides retail and dealer financing in Denmark, Finland, Norway, and Sweden. We expect to complete the sale of Forso in the first quarter of 2020. Our Income before income taxes includes a loss of $20 million, due to a fair value impairment as a result of the pending sale. Forso related Assets held-for-sale presented at fair value at December 31, 2019 are $1,416 million and Liabilities held-for-sale presented at fair value at December 31, 2019 are $45 million (excluding intercompany assets of $2 million and intercompany liabilities of $1,274 million (primarily debt) which are eliminated in the consolidated balance sheet). The fair value is measured on a non-recurring basis and categorized within Level 3 of the fair value hierarchy. We determined fair value using a market approach estimate based on our expected proceeds to be received which we conclude is most representative of the value of the assets. The Forso results are reported in our Europe segment. 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 and 5 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 16 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.

Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Accounting Policies

ACCOUNTING POLICIES

For each accounting topic that is addressed in its own note, the description of the accompanying accounting policy may be found in the related note. The remaining accounting policies are described below.

Use of Estimates

The preparation of financial statements requires us to make estimates and assumptions that effect 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

We remeasure monetary assets and liabilities denominated in a currency that is different than a reporting entity’s functional currency from the transactional currency to the legal entity’s functional currency. The effect of this remeasurement process, and the results of our foreign currency hedging activities are reported in Other income, 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, 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 Net income and recognized as part of the gain or loss on the investment.

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.

NOTE 2. ACCOUNTING POLICIES (Continued)

Adoption of New Accounting Standards

Accounting Standards Update (“ASU”) 2016-02, Leases - On January 1, 2019, we adopted Accounting Standards Codification 842, Leases and all the related amendments (“new lease standard”), using the modified retrospective method. We recognized the cumulative effect of initially applying the new lease standard as an adjustment to the opening balance of Retained earnings. The comparative information has not been restated and continues to be reported under the lease accounting standard in effect for those periods. Adoption of the new lease standard as a lessor did not have a significant impact to our financial statements, nor do we believe it will on an ongoing basis. As a lessee, it added about $100 million of right-of-use assets and lease obligations to our balance sheet and we do not expect a significant impact to our income statement on an ongoing basis. The new lease standard requires all leases to be reported on the balance sheet as right-of-use assets and lease obligations. We elected the practical expedients permitted under the transition guidance of the new standard that retained the lease classification and initial direct costs for any leases that existed prior to adoption of the standard. We did not reassess whether any contracts or land easements entered into prior to adoption are leases or contain leases.

We also adopted the following standards during 2019, none of which had a significant impact to our financial statements or financial statement disclosures:



Standard		Effective Date
2018-16	Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes	January 1, 2019
2018-08	Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made	January 1, 2019
2018-17	Targeted Improvements to Related Party Guidance for Variable Interest Entities	January 1, 2019

Accounting Standards Issued But Not Yet Adopted

The following standard is expected to result in a significant change in practice to Ford Credit.

ASU 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments. In June 2016, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard which replaces the current incurred loss impairment method with a method that reflects expected credit losses. The new standard, and the related amendments, were effective on January 1, 2020. Based on our current portfolio and forecasts of future macroeconomic conditions, we estimate that the allowance for credit losses reported in Total finance receivables, net on our balance sheet will increase by about $250 million at adoption. We will record the cumulative effect of initially applying the new standard as an adjustment to the opening balance of Retained earnings. The increase is primarily for our consumer portfolio, as it will cover expected credit losses over the full remaining expected life of the receivables.

Change in Accounting Method

As of January 1, 2019, we changed our accounting method for reporting early termination losses related to customer defaults on operating leases. See Note 5 for additional information.

Cash, Cash Equivalents, and Marketable Securities

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

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 acquisition. 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 balance sheet.

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, 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 measured at fair value on a recurring basis on our balance sheet at December 31 (in millions):



	Fair Value Level	2018		2019
Cash and cash equivalents
U.S. government	1	$	139	$	—
U.S. government and agencies	2	25		—
Non-U.S. government and agencies	2	114		350
Corporate debt	2	884		604
Total marketable securities classified as cash equivalents		1,162		954
Cash, time deposits and money market funds		8,445		8,113
Total cash and cash equivalents		$	9,607	$	9,067

Marketable securities
U.S. government	1	$	289	$	195
U.S. government and agencies	2	65		210
Non-U.S. government and agencies	2	610		2,408
Corporate debt	2	198		193
Other marketable securities	2	146		290
Total marketable securities		$	1,308	$	3,296

NOTE 3. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES (Continued)

Cash, Cash Equivalents, and Restricted Cash

Cash, cash equivalents, and restricted cash as reported in the statement of cash flows are presented separately on our balance sheet as follows (in millions):



	December 31, 2018		December 31, 2019
Cash and cash equivalents	$	9,607	$	9,067
Restricted cash included in other assets (a)	140		139
Cash, cash equivalents and restricted cash in assets held-for-sale	—		62
Total cash, cash equivalents, and restricted cash	$	9,747	$	9,268

__________

(a)

Restricted cash primarily includes cash 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.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Finance Receivables

12 Months Ended

Dec. 31, 2019

Receivables [Abstract]

Financing Receivables

FINANCE RECEIVABLES

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, to finance the purchase of dealership real estate, and to finance other dealer programs. Wholesale financing is approximately 95% 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.

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 sheet, and the earned interest supplements are included in Total financing revenue on the income statement.

We measure finance receivables at fair value for purposes of disclosure using internal valuation models. These models project future cash flows of financing contracts based on scheduled contract payments (including principal and interest). The projected cash flows are discounted to present value based on assumptions regarding credit losses, pre-payment speed, and applicable spreads to approximate current rates. Our assumptions regarding pre-payment speed and credit losses are based on historical performance. The fair value of finance receivables is categorized within Level 3 of the hierarchy.

NOTE 4. FINANCE RECEIVABLES (Continued)

On a nonrecurring basis, we also measure at fair value retail contracts greater than 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 sheet. 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 all 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 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.

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 applicable, is recorded in Other income, net to recognize the receivables at the lower of cost or fair value.

At December 31, 2019, we determined that it is probable that we will not hold certain retail financing and wholesale finance receivables for more than the following twelve months. The value of the finance receivables considered HFS at December 31, 2019 was $1.5 billion. Included within this amount was $1.2 billion of Forso related finance receivables, whose operations have been classified as HFS. See Note 1 for additional information.

NOTE 4. FINANCE RECEIVABLES (Continued)

Finance Receivables, Net

Total finance receivables, net at December 31 were as follows (in millions):



	2018			2019
Consumer
Retail installment contracts, gross	$	70,999		$	68,998
Finance leases, gross	8,748			8,566
Retail financing, gross	79,747			77,564
Unearned interest supplements from Ford and affiliated companies	(3,508		)	(3,589		)
Consumer finance receivables	76,239			73,975

Non-Consumer
Dealer financing (a)	40,996			38,910
Other financing (b)	2,168			1,945
Non-Consumer finance receivables	43,164			40,855
Total recorded investment (c)	$	119,403		$	114,830

Recorded investment in finance receivables	$	119,403		$	114,830
Allowance for credit losses	(589		)	(513		)
Finance receivables, net	$	118,814		$	114,317

Net finance receivables subject to fair value (d)	$	110,388		$	106,131
Fair value	109,794			106,260

__________

(a)

At December 31, 2018 and 2019, includes $6.0 billion and $4.1 billion, 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, 2017, 2018 and 2019 was $166 million, $261 million, and $229 million, respectively. At December 31, 2018 and 2019, also includes $662 million and $844 million, respectively, of dealer financing receivables with entities (primarily dealers) that are reported as consolidated subsidiaries of Ford. For the years ended December 31, 2017, 2018, and 2019, the interest earned on receivables from consolidated subsidiaries of Ford to which we provide dealer financing was $7 million, $8 million, and $10 million, respectively. Consolidated subsidiaries of Ford include dealerships that are partially owned by Ford as consolidated VIEs and also certain overseas affiliates.

(b)

Represents other financing receivables with Ford and entities (primarily dealers) that are reported as consolidated subsidiaries of Ford, which includes amounts associated with purchased receivables and receivables associated with the financing of vehicles that Ford leases to employees. Interest earned from Ford and affiliated companies associated with these other financing receivables totaled $70 million, $84 million, and $96 million for the years ended December 31, 2017, 2018, and 2019, respectively.


(c)	Earned interest supplements on consumer and non-consumer receivables from Ford and affiliated companies totaled $2.0 billion, $2.4 billion, and $2.5 billion for the years ended December 31, 2017, 2018, and 2019, respectively. Cash received from interest supplements totaled $2.3 billion, $2.7 billion, and $2.6 billion for the years ended December 31, 2017, 2018, and 2019, respectively.


(d)	Net finance receivables subject to fair value exclude finance leases. Previously, certain consumer financing products in Europe were classified as retail installment contracts. We now classify these products as finance leases. Comparative information has been revised to reflect this change.

At December 31, 2018 and 2019, accrued interest was $264 million and $253 million, respectively, which we report in Other assets.

Included in the recorded investment in finance receivables at December 31, 2018 and 2019 were consumer receivables of $40.7 billion and $38.3 billion, respectively, and non-consumer receivables of $25.7 billion and $26.8 billion, respectively, that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. The receivables 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 the other obligations or the claims of Ford Credit’s other creditors. Ford Credit holds 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 (see Note 7 for additional information).

NOTE 4. FINANCE RECEIVABLES (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 lease receivables at December 31 were as follows (in millions):



	2019
2020	$	1,911
2021	1,853
2022	1,418
2023	673
2024	83
2025	—
Total future cash payments	5,938
Less: Present value discount	(287		)
Finance lease receivables	$	5,651

The reconciliation from finance lease receivables to finance leases, gross and finance leases, net at December 31 is as follows (in millions):



	2019
Finance lease receivables	$	5,651
Unguaranteed residual assets	2,795
Initial direct costs	120
Finance leases, gross	8,566
Unearned interest supplements from Ford and affiliated companies	(363		)
Allowance for credit losses	(17		)
Finance leases, net	$	8,186

Financing revenue from finance leases was $375 million and $380 million for the years ended December 31, 2018 and 2019, respectively, and is included in Retail financing.

NOTE 4. FINANCE RECEIVABLES (Continued)

Aging

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. The recorded investment of consumer receivables greater than 90 days past due and still accruing interest was $20 million at December 31, 2018. At December 31, 2019, there were no balances greater than 90 days past due for which we were still accruing interest.

The aging analysis of finance receivables balances at December 31 was as follows (in millions):



	2018		2019
Consumer
31-60 days past due	$	859	$	839
61-90 days past due	123		126
91-120 days past due	39		40
Greater than 120 days past due	39		35
Total past due	1,060		1,040
Current	75,179		72,935
Consumer finance receivables	76,239		73,975

Non-Consumer
Total past due	76		62
Current	43,088		40,793
Non-Consumer finance receivables	43,164		40,855
Total recorded investment	$	119,403	$	114,830

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 originate 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 (Continued)

Credit quality ratings for consumer receivables are based on our aging analysis. Consumer receivables credit quality ratings are as follows:


•	Pass – current to 60 days past due;


•	Special Mention – 61 to 120 days past due and in intensified collection status; and


•	Substandard – greater than 120 days past due and for which the uncollectible portion of the receivables has already been charged off, as measured using the fair value of collateral less costs to sell.

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 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; and


•	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.

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 analysis 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.

NOTE 4. FINANCE RECEIVABLES (Continued)

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 its entire dealer financing regardless of the type of financing.

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



	2018		2019
Dealer financing
Group I	$	33,656	$	31,206
Group II	5,635		5,407
Group III	1,576		2,108
Group IV	129		189
Total recorded investment	$	40,996	$	38,910

Impaired Receivables

Impaired consumer receivables include accounts that have been rewritten or modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code that are considered to be Troubled Debt Restructurings (“TDRs”), as well as all accounts greater than 120 days past due. Impaired non-consumer receivables represent accounts with dealers that have weak or poor financial metrics or dealer financing that has been modified in TDRs. The recorded investment of consumer receivables that were impaired at December 31, 2018 and 2019 was $370 million and $322 million, or 0.5% and 0.4% of consumer receivables, respectively. The recorded investment of non-consumer receivables that were impaired at December 31, 2018 and 2019 was $129 million and $189 million, or 0.3% and 0.5% of non-consumer receivables, respectively. Impaired finance receivables are evaluated both collectively and specifically. See Note 6 for additional information related to the development of our allowance for credit losses.

The accrual of 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.

A restructuring of debt constitutes a TDR if we grant a concession to a debtor for economic or legal reasons related to the debtor’s financial difficulties that we otherwise would not consider. Consumer and non-consumer receivables that have a modified interest rate below market rate or that were modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code, except non-consumer receivables that are current with minimal risk of loss, are considered to be TDRs. We do not grant concessions on 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. Finance receivables involved in TDRs are specifically assessed for impairment.

Net Investments in Operating Leases

12 Months Ended

Dec. 31, 2019

Leases, Operating [Abstract]

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.

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, 2018 and 2019 was $3.3 billion and $3.1 billion, respectively. Earned interest supplements and residual support costs included in Depreciation on vehicles subject to operating leases for the years ended December 31, 2017, 2018, and 2019 was $2.1 billion, $2.4 billion, and $2.6 billion, respectively. Interest supplements and residual support cash received totaled $2.4 billion, $2.8 billion, and $2.5 billion for the years ended December 31, 2017, 2018, and 2019, respectively.

Depreciation expense on vehicles subject to operating leases is recognized on a straight-line basis in an amount necessary to reduce the leased vehicle value to its estimated residual value at the end of the lease term. Our policy is to promptly sell returned off-lease vehicles. We evaluate our depreciation for leased vehicles on a regular basis taking into consideration various assumptions, such as expected residual values at lease termination (including residual value support payments from Ford) and the estimated number of vehicles that will be returned to us. Adjustments to depreciation expense reflecting revised estimates of expected residual values at the end of the lease terms are recorded prospectively on a straight-line basis. Upon disposition of the vehicle, the difference between net book value and actual proceeds is recorded as an adjustment to Depreciation on vehicles subject to operating leases.

Accumulated depreciation reduces the value of the vehicles from their initial acquisition value to their expected residual value at the end of the lease, with the associated depreciation expense recognized on a straight-line basis over the term of the lease. At the time of purchase, we establish the expected residual value for the vehicle based on recent auction values, return volumes for our leased vehicles, industry-wide used vehicle prices, marketing incentive plans, and vehicle quality data. We monitor residual values each month and review the accuracy of our accumulated depreciation on a quarterly basis.

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.

Change in Accounting Method. As of January 1, 2019, we changed our accounting method for reporting early termination losses related to customer defaults on operating leases. Prior to the first quarter of 2019, we presented the early termination loss reserve on operating leases due to customer default events as part of the allowance for credit losses which reduces Net investment in operating leases on the balance sheet. On the income statement, the incurred losses were included in Provision for credit losses. We now consider the effects of operating lease early terminations when determining depreciation estimates, which are included as part of accumulated depreciation within Net investment in operating leases on the balance sheet, and Depreciation on vehicles subject to operating leases on the income statement.

NOTE 5. NET INVESTMENT IN OPERATING LEASES (continued)

In conjunction with the January 1, 2019 adoption of ASU 2016-02, Leases (described in Note 2), we reviewed our leasing-related accounting policies and updated our depreciation policy for operating leases so that the useful life of the vehicles incorporates our historical experience on early terminations due to customer defaults. We believe this change in accounting method is preferable as the characterization of these changes are better reflected as depreciation. At December 31, 2018, this reclassification increased accumulated depreciation and decreased allowance for credit losses by $78 million, respectively, and had no impact on Net Investment in operating leases. On the income statement, this reclassification increased Depreciation on vehicles subject to operating leases and decreased Provision for credit losses by $119 million and $106 million, for the years ended December 31, 2017 and 2018, respectively.

These changes had no impact on Income before income taxes, Net investment in operating leases, Retained earnings, or to Net cash provided by / (used in) operating activities. We have reclassified prior period amounts to reflect the above changes.

Net investment in operating leases at December 31 was as follows (in millions):



	2018			2019
Vehicles, at cost (a)	$	33,593		$	33,431
Accumulated depreciation	(6,144		)	(5,772		)
Net investment in operating leases	$	27,449		$	27,659

__________

(a)

Includes interest supplements and residual support payments we receive on certain leasing transactions under agreements with Ford and affiliated companies, and other vehicle acquisition costs. 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 December 31, 2018 and 2019, Net investment in operating leases includes $16.3 billion and $14.9 billion, respectively, that have been included in securitization transactions but continue to be reported in our consolidated financial statements. These net investments in operating leases 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. 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 (see Note 7 for additional information).

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 sheet in Total finance receivables, net. The revenue related to these agreements is reflected in Other financing.

The amounts contractually due for minimum rentals on operating leases at December 31, 2018 were as follows (in millions):



	2019		2020		2021		2022		2023		Total
Minimum rentals on operating leases	$	4,708	$	2,929	$	1,083	$	83	$	6	$	8,809

The amounts contractually due on our operating leases at December 31, 2019 were as follows (in millions):



	2020		2021		2022		2023		2024		Total
Operating lease payments	$	4,706	$	2,898	$	1,011	$	78	$	5	$	8,698

Operating leases are generally pre-payable without penalty and may cause actual paid amounts due to differ from amounts contractually due.

Allowance for Credit Losses

12 Months Ended

Dec. 31, 2019

Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]

ALLOWANCE FOR CREDIT LOSSES

The allowance for credit losses represents our estimate of the probable credit loss inherent in finance receivables as of the balance sheet date. The adequacy of the allowance for credit losses is assessed quarterly and the assumptions and models used in establishing the allowance are evaluated regularly. Because credit losses may vary substantially over time, estimating credit losses requires a number of assumptions about matters that are uncertain. Most of our credit losses are attributable to consumer receivables.

Additions to the allowance for credit losses are made by recording charges to the Provision for credit losses on the income statement. The uncollectible portion of finance receivables are 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.

In the event we repossess the collateral, the receivable is charged off and we record the collateral at its estimated fair value less costs to sell and report it in Other assets on the balance sheet. 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.

Consumer Portfolio

We estimate the allowance for credit losses on consumer receivables using a combination of measurement models and management judgment. The models consider factors such as historical trends in credit losses and recoveries (including key metrics such as delinquencies, repossessions, and bankruptcies), the composition of the present portfolio (including vehicle brand, term, risk evaluation, and new/used vehicles), trends in historical used vehicle values, and economic conditions. Estimates from these models rely on historical information and may not fully reflect losses inherent in the present portfolio. Therefore, we may adjust the estimate to reflect management judgment regarding observable changes in recent economic trends and conditions, portfolio composition, and other relevant factors.

We make projections of two key assumptions to assist in estimating the consumer allowance for credit losses:


•	Frequency – number of finance receivable contracts that are expected to default over the loss emergence period (“LEP”), measured as repossessions; and


•	Loss severity – expected difference between the amount a customer owes when the finance contract is charged off and the amount received, net of expenses, from selling the repossessed vehicle.

Collective Allowance for Credit Losses. The collective allowance is evaluated primarily using a collective loss-to-receivables (“LTR”) model that, based on historical experience, indicates credit losses have been incurred in the portfolio even though the particular accounts that are uncollectible cannot be specifically identified. The LTR model is based on the most recent years of history. An LTR for each product is calculated by dividing credit losses (i.e., charge-offs net of recoveries) by average net finance receivables, excluding unearned interest supplements and allowance for credit losses. The average LTR that is calculated for each product is multiplied by the end-of-period balances for that given product.

Our largest markets also use a loss projection model to estimate losses inherent in the portfolio. The loss projection model applies recent monthly performance metrics, stratified by contract type (retail installment sale contract or finance lease), contract term (e.g., 60-month), and risk rating to our active portfolio to estimate the losses that have been incurred.

The LEP is an assumption within our models and represents the average amount of time between when a loss event first occurs to when it is charged off. This time period starts when the consumer begins to experience financial difficulty. It is evidenced, typically through delinquency, before eventually resulting in a charge-off. The LEP is a multiplier in the calculation of the collective consumer allowance for credit losses.

For accounts greater than 120 days past due, the uncollectible portion is charged off, such that the remaining recorded investment is equal to the estimated fair value of the collateral less costs to sell.

NOTE 6. ALLOWANCE FOR CREDIT LOSSES (Continued)

Specific Allowance for Impaired Receivables. Consumer receivables involved in TDRs are specifically assessed for impairment. A specific allowance is estimated based on the present value of the expected future cash flows of the receivable discounted at the contract’s original effective interest rate or the fair value of any collateral adjusted for estimated costs to sell.

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 factors, an adjustment is made based on management judgment.

Non-Consumer Portfolio

We estimate the allowance for credit losses for non-consumer receivables based on historical LTR ratios, expected future cash flows, and the fair value of collateral.

Collective Allowance for Credit Losses. We estimate an allowance for non-consumer receivables that are not specifically identified as impaired using an LTR model for each financing product based on historical experience. This LTR is an average of the most recent historical experience and is calculated consistent with the consumer receivables LTR approach. All accounts that are specifically identified as impaired are excluded from the calculation of the non-specific or collective allowance.

Specific Allowance for Impaired Receivables. Dealer financing is evaluated by segmenting individual loans by the risk characteristics of the loan (such as the amount of the loan, the nature of the collateral, and the financial status of the debtor). The loans are analyzed to determine whether individual loans are impaired, and a specific allowance is estimated based on the present value of the expected future cash flows of the receivable discounted at the loan’s original effective interest rate or the fair value of the collateral adjusted for estimated costs to sell.

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 factors, an adjustment is made based on management judgment.

NOTE 6. ALLOWANCE FOR CREDIT LOSSES (Continued)

An analysis of the allowance for credit losses related to finance receivables for the years ended December 31 was as follows (in millions):



	2018
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	582		$	15		$	597
Charge-offs (a)	(528		)	(67		)	(595		)
Recoveries	163			7			170
Provision for credit losses	359			68			427
Other	(10		)	—			(10		)
Ending balance	$	566		$	23		$	589

Analysis of ending balance of allowance for credit losses
Collective impairment allowance	$	546		$	14		$	560
Specific impairment allowance	20			9			29
Ending balance	566			23			589

Analysis of ending balance of finance receivables
Collectively evaluated for impairment	75,869			43,035			118,904
Specifically evaluated for impairment	370			129			499
Recorded investment	76,239			43,164			119,403

Ending balance, net of allowance for credit losses	$	75,673		$	43,141		$	118,814

__________


(a)	Non-consumer charge-offs primarily reflect a U.S. dealer’s floorplan inventory and dealer loan determined to be uncollectible.



	2019
	Finance Receivables
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	566		$	23		$	589
Charge-offs	(527		)	(22		)	(549		)
Recoveries	168			10			178
Provision for credit losses	291			5			296
Other	(2		)	1			(1		)
Ending balance	$	496		$	17		$	513

Analysis of ending balance of allowance for credit losses
Collective impairment allowance	$	478		$	15		$	493
Specific impairment allowance	18			2			20
Ending balance	496			17			513

Analysis of ending balance of finance receivables
Collectively evaluated for impairment	73,653			40,666			114,319
Specifically evaluated for impairment	322			189			511
Recorded investment	73,975			40,855			114,830

Ending balance, net of allowance for credit losses	$	73,479		$	40,838		$	114,317

Transfers of Receivables

12 Months Ended

Dec. 31, 2019

Transfers and Servicing [Abstract]

TRANSFERS OF RECEIVABLES

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 in 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, the United Kingdom, Germany, and China.

We use special purpose entities (“SPEs”) that are considered VIEs for most of our on-balance sheet securitizations. 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 may purchase subordinated notes of the VIEs in addition to the investment we make as the residual interest holder of the transaction.

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.

On-Balance Sheet Securitization Transactions

We engage in securitization transactions to fund operations and to maintain liquidity. Our securitization transactions are recorded as asset-backed debt and the associated assets are not derecognized and continue to be included in our financial statements.

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. 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. The debt is the obligation of our consolidated securitization entities and not the obligation of Ford Credit or our other subsidiaries.

NOTE 7. TRANSFERS OF RECEIVABLES (Continued)

Most of these securitization transactions utilize VIEs. See Note 8 for additional information concerning VIEs. The following tables show the assets and debt related to our securitization transactions that were included in our financial statements at December 31 (in billions):



	2018
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt (b)
	Cash and Cash Equivalents		Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses		Related Debt (b)
VIE (c)
Retail financing	$	1.9	$	34.0	$	0.2	$	33.8	$	29.2
Wholesale financing	0.3		24.9		—		24.9		13.9
Finance receivables	2.2		58.9		0.2		58.7		43.1
Net investment in operating leases	0.5		16.3		—		16.3		10.2
Total VIE	$	2.7	$	75.2	$	0.2	$	75.0	$	53.3

Non-VIE
Retail financing	$	0.3	$	6.7	$	—	$	6.7	$	5.9
Wholesale financing	—		0.8		—		0.8		0.6
Finance receivables	0.3		7.5		—		7.5		6.5
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.3	$	7.5	$	—	$	7.5	$	6.5

Total securitization transactions
Retail financing	$	2.2	$	40.7	$	0.2	$	40.5	$	35.1
Wholesale financing	0.3		25.7		—		25.7		14.5
Finance receivables	2.5		66.4		0.2		66.2		49.6
Net investment in operating leases	0.5		16.3		—		16.3		10.2
Total securitization transactions	$	3.0	$	82.7	$	0.2	$	82.5	$	59.8

__________


(a)	Unearned interest supplements and residual support are excluded from securitization transactions.


(b)	Includes unamortized discount and debt issuance costs.


(c)	Includes assets to be used to settle the liabilities of the consolidated VIEs.

NOTE 7. TRANSFERS OF RECEIVABLES (Continued)



	2019
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt (b)
	Cash and Cash Equivalents		Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses		Related Debt (b)
VIE (c)
Retail financing	$	1.8	$	32.6	$	0.2	$	32.4	$	28.0
Wholesale financing	0.9		26.1		—		26.1		13.4
Finance receivables	2.7		58.7		0.2		58.5		41.4
Net investment in operating leases	0.5		14.9		—		14.9		9.5
Total VIE	$	3.2	$	73.6	$	0.2	$	73.4	$	50.9

Non-VIE
Retail financing	$	0.3	$	5.7	$	—	$	5.7	$	5.1
Wholesale financing	—		0.7		—		0.7		0.6
Finance receivables	0.3		6.4		—		6.4		5.7
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.3	$	6.4	$	—	$	6.4	$	5.7

Total securitization transactions
Retail financing	$	2.1	$	38.3	$	0.2	$	38.1	$	33.1
Wholesale financing	0.9		26.8		—		26.8		14.0
Finance receivables	3.0		65.1		0.2		64.9		47.1
Net investment in operating leases	0.5		14.9		—		14.9		9.5
Total securitization transactions	$	3.5	$	80.0	$	0.2	$	79.8	$	56.6

__________


(a)	Unearned interest supplements and residual support are excluded from securitization transactions.


(b)	Includes unamortized discount and debt issuance costs.


(c)	Includes assets to be used to settle the liabilities of the consolidated VIEs.

Interest expense related to securitization debt for the years ended December 31 was as follows (in millions):



	2017		2018		2019
VIE	$	827	$	1,220	$	1,373
Non-VIE	128		177		201
Total securitization transactions	$	955	$	1,397	$	1,574

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 and, in certain instances, currency exposure resulting from assets in one currency and debt in another currency. 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 9 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):



	2018				2019
	Derivative Asset		Derivative Liability		Derivative Asset		Derivative Liability
Derivatives of the VIEs	$	27	$	24	$	12	$	19
Derivatives related to the VIEs	12		11		7		5
Other securitization related derivatives	31		14		4		30
Total exposures related to securitization	$	70	$	49	$	23	$	54

NOTE 7. TRANSFERS OF RECEIVABLES (Continued)

Derivative expense / (income) related to our securitization transactions for the years ended December 31 was as follows (in millions):



	2017			2018			2019
Derivatives of the VIEs	$	(38	)	$	30		$	41
Derivatives related to the VIEs	(6		)	(11		)	(5		)
Other securitization related derivatives	(16		)	(2		)	39
Total derivative expense / (income) related to securitization	$	(60	)	$	17		$	75

Variable Interest Entities

12 Months Ended

Dec. 31, 2019

Variable Interest Entities [Abstract]

VARIABLE INTEREST ENTITIES

A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary. The primary beneficiary has 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. Nearly all of our VIEs are special purpose entities used for our securitizations.

We have the power to direct significant activities of our special purpose entities 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.

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 use special purpose entities to issue asset-backed securities in transactions to public and private investors. We have deemed most of these special purpose entities to be VIEs of which we are the primary beneficiary. The asset-backed securities are backed by finance receivables and interests in net investments in operating leases. The assets continue to be consolidated by us. We retain interests in our securitization VIEs, including subordinated securities issued by the VIEs, rights to cash held for the benefit of the securitization investors, and rights 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.

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.

NOTE 8. VARIABLE INTEREST ENTITIES (Continued)

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 and have no right to require us to repurchase the investments. 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 be required to support the performance of certain securitization transactions, however, by increasing cash reserves.

VIEs that are exposed to interest rate or currency risk may reduce their risks by entering into derivative transactions. In certain instances, we have entered into derivative transactions with the counterparty to protect the counterparty from risks absorbed through its derivative transactions with the VIEs.

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 balances of cash related to these contributions were $0 at both December 31, 2018 and 2019, and ranged from $0 to $179 million during 2018 and were $0 million throughout 2019.

See Note 7 for additional information on the financial position and financial performance of our VIEs and Note 9 for additional information regarding derivatives.

Derivative Financial Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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 highly effective 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; and


•	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 sheet at fair value and presented on a gross basis.

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 interbank benchmark rate (e.g., LIBOR, 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 9. 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 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. If the hedge relationship is deemed to be highly effective, we report the changes in the fair value of the hedged debt related to the risk being hedged in Debt and Interest expense. Net interest settlements and accruals, and the fair value changes on hedging instruments are reported in Interest expense. The cash flows associated with fair value hedges are reported in Net cash provided by / (used in) operating activities on our statement 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, 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, net. Cash flows associated with non-designated or de-designated derivatives are reported in Net cash provided by / (used in) investing activities on our statement 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):



	2017			2018			2019
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments	$	217		$	10		$	(16	)
Fair value changes on hedging instruments (a)	(268		)	(155		)	706
Fair value changes on hedged debt (a)	267			153			(694		)
Derivatives not designated as hedging instruments
Interest rate contracts	58			(84		)	(13		)
Foreign currency exchange contracts (b)	(150		)	163			52
Cross-currency interest rate swap contracts	103			(244		)	(229		)
Total	$	227		$	(157	)	$	(194	)

__________


(a)	For 2017, the fair value changes on hedging instruments and on hedged debt were reported in Other income, net; effective 2018, these amounts were reported in Interest expense.


(b)	Reflects forward contracts between Ford Credit and an affiliated company.

NOTE 9. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)

Balance Sheet Effect of Derivative Financial Instruments

Derivative assets and liabilities are reported on the balance sheet 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, presented gross, at December 31 were as follows (in millions):



	2018						2019
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	22,989	$	158	$	208	$	26,577	$	702	$	19
Derivatives not designated as hedging instruments
Interest rate contracts	76,904		235		274		68,914		275		191
Foreign currency exchange contracts	4,318		45		24		5,540		17		79
Cross-currency interest rate swap contracts	5,235		232		157		5,849		134		67
Total derivative financial instruments, gross (a) (b)	$	109,446	$	670	$	663	$	106,880	$	1,128	$	356

__________


(a)	At December 31, 2018 and 2019, we held collateral of $19 million and $18 million, and we posted collateral of $59 million and $78 million, respectively.

(b)

At December 31, 2018 and 2019, the fair value of assets and liabilities available for counterparty netting was $233 million and $169 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.

Other Assets and Other Liabilities and Deferred Income

12 Months Ended

Dec. 31, 2019

Other Assets and Other Liabilities and Deferred Income [Abstract]

OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED INCOME

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):



	2018		2019
Accrued interest and other non-finance receivables	$	1,080	$	898
Collateral held for resale, at net realizable value	877		843
Prepaid reinsurance premiums and other reinsurance recoverables	658		687
Property and equipment, net of accumulated depreciation (a)	192		212
Deferred charges – income taxes	216		171
Restricted cash	140		139
Investment in non-consolidated affiliates	123		132
Deferred charges	96		120
Operating lease assets	—		108
Other	74		88
Total other assets	$	3,456	$	3,398

__________


(a)	Accumulated depreciation was $367 million and $393 million at December 31, 2018 and 2019, respectively.

Other liabilities and deferred revenue at December 31 were as follows (in millions):



	2018		2019
Interest payable	$	752	$	888
Unearned insurance premiums and fees	775		806
Income tax and related interest (a)	369		433
Deferred revenue	113		110
Operating lease liabilities	—		110
Payroll and employee benefits	70		74
Other	228		212
Total other liabilities and deferred revenue	$	2,307	$	2,633

__________


(a)	Includes tax and interest payable to affiliated companies of $193 million and $294 million at December 31, 2018 and 2019, respectively.

We have investments in entities for which we do not have the ability to exercise significant influence and fair values are not readily available. We have elected to record these investments at cost (less impairment, if any), adjusted for observable price changes in orderly transactions for the identical or a similar investment of the same issuer. We report the carrying value of these investments in Other assets in our consolidated balance sheet. These investments were $9 million and $8 million at December 31, 2018 and 2019, respectively. There were no material adjustments to the fair values of these investments for the year ending December 31, 2019.

Deferred revenue balances presented above include amounts from contracts with customers primarily related to admission fee revenue on group financing products available in Argentina and were $87 million and $64 million at December 31, 2018 and 2019, respectively. Admission fee revenue on group financing products is generally recognized evenly over the term of the agreement, which is up to 84 months. Increases in the admission fee deferred revenue balance are the result of payments due during the current period in advance of satisfying our performance under the contract and decreases are a result of revenue recognized during the current period that was previously deferred.

Debt and Commitments

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

DEBT AND COMMITMENTS

We have a commercial paper program with qualified institutional investors. We also obtain other short-term funding from the issuance of demand notes to retail investors through our demand notes program. 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 U.S. 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 balance sheet at par value adjusted for unamortized discount or premium, unamortized issuance costs, and adjustments related to designated fair value hedging (see Note 9 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, net.

Debt outstanding and interest rates at December 31 were as follows (in millions):



							Interest Rates
	Debt						Average Contractual				Average Effective
	2018			2019			2018		2019		2018		2019
Short-term debt
Unsecured debt
Floating rate demand notes	$	5,880		$	6,545
Commercial paper	3,749			3,560
Other short-term debt	4,213			2,731
Asset-backed debt	943			881
Total short-term debt	14,785			13,717			3.5	%	2.8	%	3.5	%	2.8	%
Long-term debt
Unsecured debt
Notes payable within one year	14,373			15,062
Notes payable after one year	52,409			55,148
Asset-backed debt
Notes payable within one year	22,130			23,609
Notes payable after one year	36,844			32,162
Unamortized (discount) / premium	2			7
Unamortized issuance costs	(211		)	(214		)
Fair value adjustments (a)	(186		)	538
Total long-term debt	125,361			126,312			2.8	%	3.0	%	2.8	%	3.0	%
Total debt	$	140,146		$	140,029		2.8	%	2.9	%	2.9	%	3.0	%

Fair value of debt	$	138,888		$	141,678
Interest rate characteristics of debt payable after one year
Fixed interest rate	61,749			67,090
Variable interest rate (generally based on LIBOR or other short-term rates)	27,504			20,220
Total payable after one year	$	89,253		$	87,310

__________


(a)	These adjustments relate to designated fair value hedges. The carrying value of hedged debt was $38.0 billion and $39.4 billion at December 31, 2018 and 2019, respectively.

NOTE 11. DEBT AND COMMITMENTS (Continued)

With the exception of commercial paper, which is issued at a discount, the average contractual rates reflect the stated contractual interest rate. Average effective rates reflect the average contractual interest rate plus amortization of discounts, premiums, and issuance fees. Fair value adjustments relate to designated fair value hedges of unsecured debt.

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 $13.8 billion and $12.8 billion of short-term debt at December 31, 2018 and 2019, respectively, carried at cost, which approximates fair value. We paid interest of $2.9 billion, $3.5 billion, and $4.1 billion in 2017, 2018, and 2019, respectively, on debt.

Other short-term debt with affiliated companies was $80 million and $0 million at December 31, 2018 and 2019, respectively. Interest expense with affiliated companies is reported in Interest expense and was immaterial during the respective periods.

Maturities

Debt maturities at December 31, 2019 were as follows (in millions):



	2020 (a)		2021		2022		2023		2024		Thereafter (b)		Total
Unsecured debt	$	27,898	$	16,893	$	12,827	$	7,054	$	8,101	$	10,273	$	83,046
Asset-backed debt	24,490		14,371		8,925		3,476		2,505		2,885		56,652
Total	52,388		31,264		21,752		10,530		10,606		13,158		139,698
Unamortized discount													7
Unamortized issuance costs													(214		)
Fair value adjustments													538
Total debt													$	140,029

__________


(a)	Includes $13,717 million for short-term and $38,671 million for long-term debt.


(b)	Matures between 2025 and 2029.

Committed Asset-Backed Facilities

We and our subsidiaries have entered into agreements with a number of bank-sponsored asset-backed commercial paper conduits and other financial institutions. Such counterparties are contractually committed, at our option, to purchase from us eligible retail receivables or to purchase or make advances under asset-backed securities backed by retail or wholesale finance receivables or operating leases for proceeds of up to $36.6 billion ($18.8 billion of retail financing, $5.6 billion of wholesale financing, and $12.2 billion of operating leases) at December 31, 2019. 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 liquidity facilities have varying maturity dates, with $14.4 billion having maturities within the next twelve months and the remaining balance having maturities through 2022. We plan capacity renewals to protect our global funding needs, optimize capacity utilization, and maintain sufficient liquidity.

NOTE 11. DEBT AND COMMITMENTS (Continued)

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, 2019, $17.3 billion of these commitments were in use. 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.

FCE Bank plc (“FCE”) has pre-positioned retail receivables with the Bank of England which supports access to the Discount Window Facility. Pre-positioned assets are neither pledged to nor held as collateral by the Bank of England unless the Discount Window Facility is accessed.

Unsecured Credit Facilities

At December 31, 2019, we and our majority-owned subsidiaries had $6.0 billion of contractually committed unsecured credit facilities with financial institutions, including the FCE Credit Agreement, the Ford Bank Credit Agreement, and the allocation under Ford’s corporate credit facility. At December 31, 2019, $5.2 billion was available for use.

FCE’s £745 million (equivalent to $983 million at December 31, 2019) syndicated credit facility (the “FCE Credit Agreement”) and Ford Bank GmbH’s €240 million (equivalent to $270 million at December 31, 2019) syndicated credit facility (the “Ford Bank Credit Agreement”) both mature in 2022. At December 31, 2019, £625 million under the FCE Credit Agreement and all €240 million under the Ford Bank Credit Agreement were available for use.

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.

Lenders under the Ford corporate credit facility have commitments totaling $13.4 billion, 25% of the commitments maturing on April 30, 2022 and with 75% of the commitments maturing on April 30, 2024. Ford has allocated $3.0 billion of commitments, including commitments under a Chinese renminbi sub-facility, to us on an irrevocable and exclusive basis to support our liquidity. At December 31, 2019, all $3.0 billion was available for use.

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

Ford Motor Credit Company LLC is a disregarded entity for United States income tax purposes. Ford’s consolidated United States federal and state income tax returns include certain of our domestic subsidiaries. In accordance with our intercompany tax sharing agreement with Ford, United States income tax liabilities or foreign tax credits are allocated to us on a separate return basis calculated as if we were a taxable corporation.

We account for U.S. tax on global intangible low-tax income in the period incurred.

Components of Income Taxes



	2017		2018		2019
Income before income taxes (in millions)
U.S.	$	1,331	$	1,717	$	2,160
Non-U.S.	979		910		838
Total	$	2,310	$	2,627	$	2,998

Provision for / (Benefit from) income taxes for the years ended December 31 was estimated as follows (in millions):



	2017			2018			2019
Current
Federal	$	(6	)	$	72		$	396
Non-U.S.	241			153			168
State and local	(9		)	(81		)	169
Total current	226			144			733
Deferred
Federal	(1,016		)	283			(12		)
Non-U.S.	30			(125		)	104
State and local	63			101			(55		)
Total deferred	(923		)	259			37
Provision for / (Benefit from) income taxes	$	(697	)	$	403		$	770

A reconciliation of the Provision for / (Benefit from) income taxes with the United States statutory tax rate as a percentage of Income before income taxes for the years ended December 31 is as follows:



	2017		2018		2019
U.S. statutory tax rate	35.0	%	21.0	%	21.0	%
Effect of (in percentage points):
Non-U.S. tax rates under U.S. rate	(4.0	)	1.7		1.3
State and local income taxes	1.5		0.6		2.7
Dispositions and restructurings	—		(8.9	)	—
U.S. tax on non-U.S. earnings	15.6		0.4		(0.1	)
Enacted change in tax laws	(78.1	)	—		—
Other	(0.2	)	0.5		0.8
Effective tax rate	(30.2	)%	15.3	%	25.7	%

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was signed into law. This act includes, among other items, a permanent reduction to the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018, and requires immediate taxation of accumulated, unremitted non-U.S. earnings. As a result, at December 31, 2017, we recognized a tax benefit of $1.8 billion from revaluing U.S. net deferred tax liabilities and tax expense of $375 million to record U.S. tax on unremitted non-U.S. earnings.

NOTE 12. INCOME TAXES (Continued)

At December 31, 2019, $3.3 billion of non-U.S. earnings 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 indefinitely reinvested basis differences is not practicable.

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 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 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.

Components of Deferred Tax Assets and Liabilities

Components of deferred tax assets and liabilities at December 31 were as follows (in millions):



	2018			2019
Deferred tax assets
Net operating loss carryforwards	$	339		$	378
Provision for credit losses	175			141
Other foreign	106			190
Employee benefit plans	28			24
Foreign tax credits	1,297			669
Other	50			46
Total gross deferred tax assets	1,995			1,448
Less: Valuation allowance	(81		)	(43		)
Total net deferred tax assets	1,914			1,405
Deferred tax liabilities
Leasing transactions	3,126			2,674
Finance receivables	639			584
Other foreign	524			568
Other	4			1
Total deferred tax liabilities	4,293			3,827
Net deferred tax liability	$	2,379		$	2,422

At December 31, 2019, we have a valuation allowance of $43 million for deferred tax assets primarily related to our Mexico operations.

In accordance with our intercompany tax sharing agreement with Ford, United States income tax liabilities or credits are allocated to us on a separate return basis calculated as if we were a taxable corporation. In this regard, the deferred tax assets related to foreign tax credit carryforwards represent amounts primarily due from Ford. We reflect a deferred asset for foreign tax credits within our balance sheet due to our tax sharing agreement which provides for full reimbursement for the use of these credits. Under our tax sharing agreement with Ford, we are generally paid for these assets at the earlier of our use on a separate return basis or their expiration.

Net operating loss carryforwards for tax purposes were $1.4 billion at December 31, 2019, resulting in a deferred tax asset of $378 million. A substantial portion of these losses will begin to expire beyond 2034. Tax benefits of net operating loss 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 other circumstances.

NOTE 12. INCOME TAXES (Continued)

Other

In accordance with our intercompany tax sharing agreement with Ford, we earn interest on net tax assets and pay interest on certain tax liabilities. Interest earned is included in Other income, net while interest expense is included in Interest expense and the amounts were immaterial in 2018 and 2019.

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 was as follows (in millions):



	2018			2019
Beginning balance	$	90		$	115
Increase - tax positions in prior periods	28			40
Increase - tax positions in current period	7			—
Decrease - tax positions in prior periods	(6		)	(8		)
Settlements	(1		)	(36		)
Lapse of statute of limitations	—			—
Foreign currency translation adjustments	(3		)	(2		)
Ending balance	$	115		$	109

The amount of unrecognized tax benefits at December 31, 2018 and 2019 that would impact the effective tax rate if recognized was $111 million and $106 million, respectively.

Examinations by tax authorities have been completed through 2012 in Germany and the United States, 2014 in Canada, and 2017 in the United Kingdom. We have settled our U.S. federal income tax matters related to tax years prior to 2014 in accordance with our intercompany tax sharing agreement with Ford.

We recognize income tax-related penalties in Provision for / (Benefit from) income taxes on our income statement. We recognize accrued interest expense related to unrecognized tax benefits in jurisdictions where we file tax returns separate from Ford in Other income, net on our income statement. For the years ended December 31, 2017, 2018, and 2019, we recorded net tax related interest income of $5 million, and net tax related interest expense of $7 million and $3 million, respectively, in our income statement. At December 31, 2018 and 2019, we recorded a net payable of $7 million and $8 million, respectively, for tax related interest in Other liabilities and deferred income.

Cash paid for income taxes was $220 million, $188 million, and $524 million in 2017, 2018, and 2019, respectively.

Insurance

12 Months Ended

Dec. 31, 2019

Insurance [Abstract]

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 and Ford and Lincoln vehicles in transit between final assembly plants and 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 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, including premiums on vehicles financed at wholesale by us, 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.

NOTE 13. INSURANCE - (Continued)

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 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):



	2018		2019
Cash and cash equivalents	$	59	$	9
Marketable securities	649		697
Total cash, cash equivalents, and marketable securities	$	708	$	706

TARIC is required by law to maintain deposits with regulatory authorities. These deposited securities totaled $12 million at both December 31, 2018 and 2019 and were included in Marketable securities.

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 $658 million and $687 million at December 31, 2018 and 2019, respectively. This includes amounts ceded to Ford affiliates of $97 million at both December 31, 2018 and 2019.

Insurance Liabilities

Other liabilities and deferred income includes unearned insurance premiums and fees of $775 million and $806 million at December 31, 2018 and 2019, respectively. This includes amounts from Ford and its affiliates of $667 million and $696 million at December 31, 2018 and 2019, respectively.

NOTE 13. INSURANCE (Continued)

The reserve for reported insurance losses and an estimate of unreported insurance losses, based on past experience, was $11 million and $12 million at December 31, 2018 and 2019, respectively, and was included in Other liabilities and deferred income.

Insurance Premiums

Insurance premiums written and earned for the years ended December 31 were as follows (in millions):



	2017						2018						2019
	Written			Earned			Written			Earned			Written			Earned
Direct	$	385		$	320		$	392		$	346		$	406		$	377
Assumed	—			—			—			—			—			—
Ceded	(227		)	(162		)	(225		)	(179		)	(223		)	(195		)
Net premiums	$	158		$	158		$	167		$	167		$	183		$	182

The net premiums earned with Ford and its affiliates were $154 million, $176 million, and $207 million for the years ended December 31, 2017, 2018, and 2019, 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):



	2017			2018			2019
Insurance losses	$	143		$	101		$	128
Loss adjustment expenses	8			5			7
Reinsurance income and other expenses, net	(27		)	(29		)	(32		)
Insurance expenses	$	124		$	77		$	103

Insurance expenses with Ford and its affiliates were $63 million, $71 million, and $84 million for the years ended December 31, 2017, 2018, and 2019, respectively.

Insurance expenses were reduced by ceded insurance expenses of $104 million, $114 million, and $127 million for the years ended December 31, 2017, 2018, and 2019, respectively.

Other Income, Net

12 Months Ended

Dec. 31, 2019

Other Income and Expenses [Abstract]

OTHER INCOME, NET

Other income consists of various line items that are combined on the income statement due to their respective materiality compared with other individual income and expense items.

The amounts included in Other income, net for the years ended December 31 were as follows (in millions):



	2017		2018			2019
Gains / (Losses) on derivatives	$	11	$	(165	)	$	(190	)
Currency revaluation gains / (losses)	44		12			70
Interest and investment income (a)	112		198			318
Other	83		35			16
Total other income, net	$	250	$	80		$	214

__________

(a)

Includes interest income primarily on notes receivable from affiliated companies of $9 million, $10 million, and $5 million for December 31, 2017, 2018, and 2019, respectively.

Retirement Benefits	12 Months Ended
Retirement Benefits	Dec. 31, 2019
Retirement Benefits [Abstract]
RETIREMENT BENEFITS AND SHARE-BASED COMPENSATION	RETIREMENT BENEFITS We are a participating employer in certain retirement plans that are sponsored by Ford. As described below, 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, 2019, filed separately with the Securities and Exchange Commission. Employee Retirement Plans Benefits earned under certain Ford-sponsored retirement plans are generally based on an employee’s length of service, salary, and contributions. The allocation amount can be impacted by key assumptions (e.g., discount rate and average rate of increase in compensation) that Ford uses in determining its retirement plan obligations. Retirement plan costs allocated to Ford Credit for our employees participating in the Ford-sponsored defined benefit plans were $56 million, $55 million, and $47 million for the years ended December 31, 2017, 2018, and 2019, respectively. Allocated costs for defined contribution and savings plans were $7 million, $7 million, and $8 million for the years ended December 31, 2017, 2018, and 2019, respectively, and were charged to Operating expenses. Postretirement Health Care and Life Insurance Benefits Postretirement health care and life insurance benefits are provided under certain Ford plans, which provide benefits to retired salaried employees in North America. Our employees generally may become eligible for these benefits if they retire while working for us; however, benefits and eligibility rules may be modified from time to time. Postretirement health care and life insurance costs allocated to Ford Credit for our employees participating in the Ford-sponsored plans were $3 million, $4 million, and $3 million for the years ended December 31, 2017, 2018, and 2019, respectively, and were charged to Operating expenses.

Segment and Geographic Information

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT AND GEOGRAPHIC 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. We segment our business based on geographic regions: the Americas, Europe, and Asia Pacific. Items excluded in assessing segment performance because they are managed at the corporate level, including market valuation adjustments to derivatives and exchange-rate fluctuations on foreign currency-denominated transactions, are reflected in Unallocated Other. The following is a brief description of our segments:


•	Americas segment – United States, Canada, Mexico, Brazil, and Argentina


•	Europe segment – European region and South Africa


•	Asia Pacific segment – China and India

We review our business performance by segment on a managed basis. Receivables are presented on a managed basis, as it closely approximates the customer’s outstanding balance on the receivables, which is the basis for earning revenue. Our managed receivables equal net finance receivables, net investment in operating leases, and held-for-sale receivables, excluding unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation).

We measure the performance of our segments primarily 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. We also adjust segment performance to reallocate interest expense among the segments reflecting debt and equity levels proportionate to their product risk.

NOTE 16. 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):



	Americas		Europe		Asia Pacific			Total Segments		Unallocated Other (a)			Total
2017
Total revenue	$	9,928	$	981	$	468		$	11,377	$	—		$	11,377
Income before income taxes	1,795		329		85			2,209		101			2,310
Other disclosures:
Depreciation on vehicles subject to operating leases	4,210		44		—			4,254		—			4,254
Interest expense	2,641		257		277			3,175		—			3,175
Provision for credit losses	423		28		18			469		—			469
Net finance receivables and net investment in operating leases	118,392		24,957		7,152			150,501		(7,837		)	142,664
Total assets	124,645		28,204		7,594			160,443		—			160,443

2018
Total revenue	$	10,706	$	1,160	$	516		$	12,382	$	—		$	12,382
Income before income taxes	2,208		391		102			2,701		(74		)	2,627
Other disclosures:
Depreciation on vehicles subject to operating leases	3,934		39		—			3,973		—			3,973
Interest expense	3,331		283		322			3,936		(6		)	3,930
Provision for credit losses	391		20		15			426		—			426
Net finance receivables and net investment in operating leases	123,403		26,029		5,444			154,876		(8,613		)	146,263
Total assets	128,498		27,804		5,907			162,209		—			162,209

2019
Total revenue	$	11,109	$	1,183	$	331		$	12,623	$	—		$	12,623
Income before income taxes	2,422		363		75			2,860		138			2,998
Other disclosures:
Depreciation on vehicles subject to operating leases	3,592		43		—			3,635		—			3,635
Interest expense	3,840		340		191			4,371		18			4,389
Provision for credit losses	277		25		(6		)	296		—			296
Net finance receivables and net investment in operating leases (b)	120,976		25,629		3,585			150,190		(8,214		)	141,976
Total assets	127,533		30,050		3,843			161,426		—			161,426

__________


(a)	Finance receivables, net and Net investment in operating leases include unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation).


(b)	Excludes held-for-sale receivables.

NOTE 16. 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):



	2017		2018		2019
Total revenue
United States	$	8,378	$	9,043	$	9,472
Canada	1,193		1,315		1,323
All other	1,806		2,024		1,828
Total revenue	$	11,377	$	12,382	$	12,623

Net property and net investment in operating leases
United States	$	23,162	$	24,057	$	24,123
Canada	3,302		3,155		3,328
All other	374		429		420
Net property and net investment in operating leases	$	26,838	$	27,641	$	27,871

Selected Quarterly Financial Data

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

SELECTED QUARTERLY FINANCIAL DATA

SELECTED QUARTERLY FINANCIAL DATA (Unaudited)

Selected financial data by calendar quarter were as follows (in millions):



	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Full Year
2018
Total revenue	$	3,020		$	3,099		$	3,081		$	3,182		$	12,382
Depreciation on vehicles subject to operating leases	(1,053		)	(986		)	(936		)	(998		)	(3,973		)
Interest expense	(912		)	(997		)	(989		)	(1,032		)	(3,930		)
Total financing margin and other revenue	1,055			1,116			1,156			1,152			4,479
Provision for credit losses	94			69			127			136			426
Net income	701			479			518			526			2,224

2019
Total revenue	$	3,194		$	3,188		$	3,127		$	3,114		$	12,623
Depreciation on vehicles subject to operating leases	(924		)	(894		)	(894		)	(923		)	(3,635		)
Interest expense	(1,121		)	(1,114		)	(1,081		)	(1,073		)	(4,389		)
Total financing margin and other revenue	1,149			1,180			1,152			1,118			4,599
Provision for credit losses	33			63			93			107			296
Net income	603			613			571			441			2,228

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Commitments and contingencies primarily consist of lease commitments, guarantees and indemnifications, and litigation and claims.

Lease Commitments

We lease various land, buildings, and equipment under agreements that expire over various contractual periods ranging from less than one year to thirty-two 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 presented in Other assets on our consolidated balance sheet.

For the majority of our leases commencing on or after January 1, 2019, 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 using the discount rate implicit in the lease. If the discount rate is not readily determinable, we use our incremental borrowing rate. Operating lease liabilities are reported in Other liabilities and deferred revenue. Variable payments are included in the lease liability if they are based on a market rate or an index (e.g., CPI). Variable payments that do not meet this criterion are expensed as incurred.

We have rental commitments for certain land, buildings, and equipment that expire over various contractual periods. Minimum non-cancelable operating lease commitments at December 31, 2018 were as follows (in millions):



	2019		2020		2021		2022		2023		Thereafter		Total
Minimum rentals on operating leases	$	19	$	14	$	11	$	10	$	9	$	34	$	97

The amounts contractually due on our operating lease liabilities at December 31, 2019 were as follows (in millions):



	2020		2021		2022		2023		2024		Thereafter		Total
Operating lease	$	22	$	18	$	16	$	16	$	15	$	36	$	123
Less: Present value discount													13
Total operating lease liabilities													$	110

Operating and variable lease expense for the year ending December 31, 2019 was $21 million. The right-of-use assets obtained in exchange for operating lease liabilities for the same period was $42 million.

As of December 31, 2019, the weighted average remaining lease term for operating leases was seven years and the weighted average remaining discount rate for operating leases was 3.1%.

Rental expense for cancelable and non-cancelable leases of $26 million, $28 million, and $21 million was recorded in Operating expenses for the years ended December 31, 2017, 2018, and 2019, respectively.

Guarantees and Indemnifications

Guarantees and indemnifications are recorded at fair value at their inception. 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 $34 million and $53 million at December 31, 2018 and 2019, respectively. Of these values, $29 million and $48 million at December 31, 2018 and 2019, respectively, were counter-guaranteed by Ford to us. There were no recorded liabilities related to guarantees and limited indemnities at December 31, 2018 and 2019.

NOTE 18. COMMITMENTS AND CONTINGENCIES (continued)

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 guaranteed 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. However, our ability to enforce these rights is sometimes stayed until the guaranteed party is paid in full, and may be limited in the event of insolvency of the third party or other circumstances.

In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction. 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 terms of the contract or by 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; personal injury matters; 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. On January 9, 2019, FCE Bank plc (“FCE”) received a decision from the Italian Competition Authority, which included an assessment of a fine against FCE in the amount of €42 million (equivalent to $47 million at December 31, 2019). On March 8, 2019, FCE appealed the decision and the fine, and a hearing has been scheduled for February 26, 2020. The ultimate resolution of the matter may potentially take several years. While we have determined that an adverse outcome is not probable, the reasonably possible loss could be up to the fine amount.

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.

Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block]

The accompanying consolidated financial statements include Ford Motor Credit Company LLC, its controlled domestic and foreign subsidiaries and joint ventures, and consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Affiliates that we do not consolidate, but for which we have significant influence over operating and financial policies, are accounted for using the equity method. We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”).

Basis of Accounting and Intercompany Transactions [Abstract]

Basis of Accounting and Intercompany Transactions [Policy Text Block]

We prepare our financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”).

Reclassifications [Abstract]

Comparability of Prior Year Financial Data, Policy [Policy Text Block]

We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation.

Foreign Currency Translation [Abstract]

Foreign Currency Transactions and Translations Policy [Policy Text Block]

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, 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 Net income and recognized as part of the gain or loss on the investment.

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments, Policy [Policy Text Block]

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.

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 acquisition. 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 balance sheet.

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, net. Realized gains and losses are measured using the specific identification method.

We measure finance receivables at fair value for purposes of disclosure using internal valuation models. These models project future cash flows of financing contracts based on scheduled contract payments (including principal and interest). The projected cash flows are discounted to present value based on assumptions regarding credit losses, pre-payment speed, and applicable spreads to approximate current rates. Our assumptions regarding pre-payment speed and credit losses are based on historical performance. The fair value of finance receivables is categorized within Level 3 of the hierarchy.

NOTE 4. FINANCE RECEIVABLES (Continued)

On a nonrecurring basis, we also measure at fair value retail contracts greater than 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.

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 interbank benchmark rate (e.g., LIBOR, 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.

Loans and Leases Receivable Disclosure [Abstract]

Financing Receivable [Policy Text Block]

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.

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 sheet, and the earned interest supplements are included in Total financing revenue on the income statement.

Impaired consumer receivables include accounts that have been rewritten or modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code that are considered to be Troubled Debt Restructurings (“TDRs”), as well as all accounts greater than 120 days past due. Impaired non-consumer receivables represent accounts with dealers that have weak or poor financial metrics or dealer financing that has been modified in TDRs.

The accrual of 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.

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.A restructuring of debt constitutes a TDR if we grant a concession to a debtor for economic or legal reasons related to the debtor’s financial difficulties that we otherwise would not consider. Consumer and non-consumer receivables that have a modified interest rate below market rate or that were modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code, except non-consumer receivables that are current with minimal risk of loss, are considered to be TDRs. We do not grant concessions on 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. Finance receivables involved in TDRs are specifically assessed for impairment.

Lease Policy [Abstract]

Lessor, Leases [Policy Text Block]

Depreciation expense on vehicles subject to operating leases is recognized on a straight-line basis in an amount necessary to reduce the leased vehicle value to its estimated residual value at the end of the lease term. Our policy is to promptly sell returned off-lease vehicles. We evaluate our depreciation for leased vehicles on a regular basis taking into consideration various assumptions, such as expected residual values at lease termination (including residual value support payments from Ford) and the estimated number of vehicles that will be returned to us. Adjustments to depreciation expense reflecting revised estimates of expected residual values at the end of the lease terms are recorded prospectively on a straight-line basis. Upon disposition of the vehicle, the difference between net book value and actual proceeds is recorded as an adjustment to Depreciation on vehicles subject to operating leases.

Accumulated depreciation reduces the value of the vehicles from their initial acquisition value to their expected residual value at the end of the lease, with the associated depreciation expense recognized on a straight-line basis over the term of the lease. At the time of purchase, we establish the expected residual value for the vehicle based on recent auction values, return volumes for our leased vehicles, industry-wide used vehicle prices, marketing incentive plans, and vehicle quality data. We monitor residual values each month and review the accuracy of our accumulated depreciation on a quarterly basis.

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.

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.

Allowance for Credit Losses [Abstract]

Allowance for Credit Losses, Policy [Policy Text Block]

The allowance for credit losses represents our estimate of the probable credit loss inherent in finance receivables as of the balance sheet date. The adequacy of the allowance for credit losses is assessed quarterly and the assumptions and models used in establishing the allowance are evaluated regularly. Because credit losses may vary substantially over time, estimating credit losses requires a number of assumptions about matters that are uncertain. Most of our credit losses are attributable to consumer receivables.

Additions to the allowance for credit losses are made by recording charges to the Provision for credit losses on the income statement. The uncollectible portion of finance receivables are 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.

In the event we repossess the collateral, the receivable is charged off and we record the collateral at its estimated fair value less costs to sell and report it in Other assets on the balance sheet. 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.

Consumer Portfolio

We estimate the allowance for credit losses on consumer receivables using a combination of measurement models and management judgment. The models consider factors such as historical trends in credit losses and recoveries (including key metrics such as delinquencies, repossessions, and bankruptcies), the composition of the present portfolio (including vehicle brand, term, risk evaluation, and new/used vehicles), trends in historical used vehicle values, and economic conditions. Estimates from these models rely on historical information and may not fully reflect losses inherent in the present portfolio. Therefore, we may adjust the estimate to reflect management judgment regarding observable changes in recent economic trends and conditions, portfolio composition, and other relevant factors.

We make projections of two key assumptions to assist in estimating the consumer allowance for credit losses:


•	Frequency – number of finance receivable contracts that are expected to default over the loss emergence period (“LEP”), measured as repossessions; and


•	Loss severity – expected difference between the amount a customer owes when the finance contract is charged off and the amount received, net of expenses, from selling the repossessed vehicle.

Collective Allowance for Credit Losses. The collective allowance is evaluated primarily using a collective loss-to-receivables (“LTR”) model that, based on historical experience, indicates credit losses have been incurred in the portfolio even though the particular accounts that are uncollectible cannot be specifically identified. The LTR model is based on the most recent years of history. An LTR for each product is calculated by dividing credit losses (i.e., charge-offs net of recoveries) by average net finance receivables, excluding unearned interest supplements and allowance for credit losses. The average LTR that is calculated for each product is multiplied by the end-of-period balances for that given product.

Our largest markets also use a loss projection model to estimate losses inherent in the portfolio. The loss projection model applies recent monthly performance metrics, stratified by contract type (retail installment sale contract or finance lease), contract term (e.g., 60-month), and risk rating to our active portfolio to estimate the losses that have been incurred.

The LEP is an assumption within our models and represents the average amount of time between when a loss event first occurs to when it is charged off. This time period starts when the consumer begins to experience financial difficulty. It is evidenced, typically through delinquency, before eventually resulting in a charge-off. The LEP is a multiplier in the calculation of the collective consumer allowance for credit losses.

For accounts greater than 120 days past due, the uncollectible portion is charged off, such that the remaining recorded investment is equal to the estimated fair value of the collateral less costs to sell.

NOTE 6. ALLOWANCE FOR CREDIT LOSSES (Continued)

Specific Allowance for Impaired Receivables. Consumer receivables involved in TDRs are specifically assessed for impairment. A specific allowance is estimated based on the present value of the expected future cash flows of the receivable discounted at the contract’s original effective interest rate or the fair value of any collateral adjusted for estimated costs to sell.

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 factors, an adjustment is made based on management judgment.

Non-Consumer Portfolio

We estimate the allowance for credit losses for non-consumer receivables based on historical LTR ratios, expected future cash flows, and the fair value of collateral.

Collective Allowance for Credit Losses. We estimate an allowance for non-consumer receivables that are not specifically identified as impaired using an LTR model for each financing product based on historical experience. This LTR is an average of the most recent historical experience and is calculated consistent with the consumer receivables LTR approach. All accounts that are specifically identified as impaired are excluded from the calculation of the non-specific or collective allowance.

Specific Allowance for Impaired Receivables. Dealer financing is evaluated by segmenting individual loans by the risk characteristics of the loan (such as the amount of the loan, the nature of the collateral, and the financial status of the debtor). The loans are analyzed to determine whether individual loans are impaired, and a specific allowance is estimated based on the present value of the expected future cash flows of the receivable discounted at the loan’s original effective interest rate or the fair value of the collateral adjusted for estimated costs to sell.

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 factors, an adjustment is made based on management judgment.

Transfers of Receivables [Abstract]

Receivables Classification, Policy [Policy Text Block]

Variable Interest Entities [Abstract]

Consolidation, Variable Interest Entity, Policy [Policy Text Block]

A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary. The primary beneficiary has 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. Nearly all of our VIEs are special purpose entities used for our securitizations.

We have the power to direct significant activities of our special purpose entities 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.

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.

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives, Policy [Policy Text Block]

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 9. 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 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. If the hedge relationship is deemed to be highly effective, we report the changes in the fair value of the hedged debt related to the risk being hedged in Debt and Interest expense. Net interest settlements and accruals, and the fair value changes on hedging instruments are reported in Interest expense. The cash flows associated with fair value hedges are reported in Net cash provided by / (used in) operating activities on our statement 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, 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, net. Cash flows associated with non-designated or de-designated derivatives are reported in Net cash provided by / (used in) investing activities on our statement of cash flows.

Derivative Financial Instruments and Hedge Accounting. Derivative assets and derivative liabilities are reported in Derivative financial instruments on our balance sheet at fair value and presented on a gross basis.

Debt Disclosure [Abstract]

Debt, Policy [Policy Text Block]

Debt is reported on our balance sheet at par value adjusted for unamortized discount or premium, unamortized issuance costs, and adjustments related to designated fair value hedging (see Note 9 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, net.

Income Tax Disclosure [Abstract]

Income Tax, Policy [Policy Text Block]

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 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 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.

Components of Deferred Tax Assets and Liabilities

Insurance [Abstract]

Insurance Premiums Revenue Recognition, Policy [Policy Text Block]

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, including premiums on vehicles financed at wholesale by us, 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.

Insurance Losses and Claims, Policy [Policy Text Block]

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.

Insurance underwriting losses and expenses are reported as Insurance expenses.

Reinsurance Accounting Policy [Policy Text Block]

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 all of its reinsurers to hold collateral and monitors the underlying business and financial performance of its reinsurers to mitigate risk.

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.

Commitments and Contingencies Disclosure [Abstract]

Guarantees and Indemnifications Policies [Policy Text Block]

Guarantees and indemnifications are recorded at fair value at their inception. 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.

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.

Cash, Cash Equivalents, and Marketable Securities (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following table categorizes the fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis on our balance sheet at December 31 (in millions):



	Fair Value Level	2018		2019
Cash and cash equivalents
U.S. government	1	$	139	$	—
U.S. government and agencies	2	25		—
Non-U.S. government and agencies	2	114		350
Corporate debt	2	884		604
Total marketable securities classified as cash equivalents		1,162		954
Cash, time deposits and money market funds		8,445		8,113
Total cash and cash equivalents		$	9,607	$	9,067

Marketable securities
U.S. government	1	$	289	$	195
U.S. government and agencies	2	65		210
Non-U.S. government and agencies	2	610		2,408
Corporate debt	2	198		193
Other marketable securities	2	146		290
Total marketable securities		$	1,308	$	3,296

Schedule of cash, cash equivalents and restricted cash [Table Text Block]

Cash, cash equivalents, and restricted cash as reported in the statement of cash flows are presented separately on our balance sheet as follows (in millions):



	December 31, 2018		December 31, 2019
Cash and cash equivalents	$	9,607	$	9,067
Restricted cash included in other assets (a)	140		139
Cash, cash equivalents and restricted cash in assets held-for-sale	—		62
Total cash, cash equivalents, and restricted cash	$	9,747	$	9,268

__________

(a)

Restricted cash primarily includes cash 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.

Finance Receivables (Tables)

12 Months Ended

Dec. 31, 2019

Financing Receivables [Line Items]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Total finance receivables, net at December 31 were as follows (in millions):



	2018			2019
Consumer
Retail installment contracts, gross	$	70,999		$	68,998
Finance leases, gross	8,748			8,566
Retail financing, gross	79,747			77,564
Unearned interest supplements from Ford and affiliated companies	(3,508		)	(3,589		)
Consumer finance receivables	76,239			73,975

Non-Consumer
Dealer financing (a)	40,996			38,910
Other financing (b)	2,168			1,945
Non-Consumer finance receivables	43,164			40,855
Total recorded investment (c)	$	119,403		$	114,830

Recorded investment in finance receivables	$	119,403		$	114,830
Allowance for credit losses	(589		)	(513		)
Finance receivables, net	$	118,814		$	114,317

Net finance receivables subject to fair value (d)	$	110,388		$	106,131
Fair value	109,794			106,260

__________

(a)

At December 31, 2018 and 2019, includes $6.0 billion and $4.1 billion, 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, 2017, 2018 and 2019 was $166 million, $261 million, and $229 million, respectively. At December 31, 2018 and 2019, also includes $662 million and $844 million, respectively, of dealer financing receivables with entities (primarily dealers) that are reported as consolidated subsidiaries of Ford. For the years ended December 31, 2017, 2018, and 2019, the interest earned on receivables from consolidated subsidiaries of Ford to which we provide dealer financing was $7 million, $8 million, and $10 million, respectively. Consolidated subsidiaries of Ford include dealerships that are partially owned by Ford as consolidated VIEs and also certain overseas affiliates.

(b)

Represents other financing receivables with Ford and entities (primarily dealers) that are reported as consolidated subsidiaries of Ford, which includes amounts associated with purchased receivables and receivables associated with the financing of vehicles that Ford leases to employees. Interest earned from Ford and affiliated companies associated with these other financing receivables totaled $70 million, $84 million, and $96 million for the years ended December 31, 2017, 2018, and 2019, respectively.


(c)	Earned interest supplements on consumer and non-consumer receivables from Ford and affiliated companies totaled $2.0 billion, $2.4 billion, and $2.5 billion for the years ended December 31, 2017, 2018, and 2019, respectively. Cash received from interest supplements totaled $2.3 billion, $2.7 billion, and $2.6 billion for the years ended December 31, 2017, 2018, and 2019, respectively.


(d)	Net finance receivables subject to fair value exclude finance leases. Previously, certain consumer financing products in Europe were classified as retail installment contracts. We now classify these products as finance leases. Comparative information has been revised to reflect this change.

Schedule of Aging Analysis for Total Finance Receivables [Table Text Block]

The aging analysis of finance receivables balances at December 31 was as follows (in millions):



	2018		2019
Consumer
31-60 days past due	$	859	$	839
61-90 days past due	123		126
91-120 days past due	39		40
Greater than 120 days past due	39		35
Total past due	1,060		1,040
Current	75,179		72,935
Consumer finance receivables	76,239		73,975

Non-Consumer
Total past due	76		62
Current	43,088		40,793
Non-Consumer finance receivables	43,164		40,855
Total recorded investment	$	119,403	$	114,830

Non-Consumer Segment [Member]

Financing Receivables [Line Items]

Schedule of Financing Receivable Credit Quality Indicators [Table Text Block]

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



	2018		2019
Dealer financing
Group I	$	33,656	$	31,206
Group II	5,635		5,407
Group III	1,576		2,108
Group IV	129		189
Total recorded investment	$	40,996	$	38,910

Net Investment in Operating Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases, Operating [Abstract]

Net investment in operating leases [Table Text Block]

Net investment in operating leases at December 31 was as follows (in millions):



	2018			2019
Vehicles, at cost (a)	$	33,593		$	33,431
Accumulated depreciation	(6,144		)	(5,772		)
Net investment in operating leases	$	27,449		$	27,659

__________

(a)

Includes interest supplements and residual support payments we receive on certain leasing transactions under agreements with Ford and affiliated companies, and other vehicle acquisition costs. 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.

Schedule of Minimum Payments Receivable on Operating Leases [Table Text Block]

The amounts contractually due for minimum rentals on operating leases at December 31, 2018 were as follows (in millions):



	2019		2020		2021		2022		2023		Total
Minimum rentals on operating leases	$	4,708	$	2,929	$	1,083	$	83	$	6	$	8,809

Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block]

The amounts contractually due on our operating leases at December 31, 2019 were as follows (in millions):



	2020		2021		2022		2023		2024		Total
Operating lease payments	$	4,706	$	2,898	$	1,011	$	78	$	5	$	8,698

Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2019

Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]

Allowance for Credit Losses on Financing and Loans and Leases Receivable [Table Text Block]

An analysis of the allowance for credit losses related to finance receivables for the years ended December 31 was as follows (in millions):



	2018
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	582		$	15		$	597
Charge-offs (a)	(528		)	(67		)	(595		)
Recoveries	163			7			170
Provision for credit losses	359			68			427
Other	(10		)	—			(10		)
Ending balance	$	566		$	23		$	589

Analysis of ending balance of allowance for credit losses
Collective impairment allowance	$	546		$	14		$	560
Specific impairment allowance	20			9			29
Ending balance	566			23			589

Analysis of ending balance of finance receivables
Collectively evaluated for impairment	75,869			43,035			118,904
Specifically evaluated for impairment	370			129			499
Recorded investment	76,239			43,164			119,403

Ending balance, net of allowance for credit losses	$	75,673		$	43,141		$	118,814

__________


(a)	Non-consumer charge-offs primarily reflect a U.S. dealer’s floorplan inventory and dealer loan determined to be uncollectible.



	2019
	Finance Receivables
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	566		$	23		$	589
Charge-offs	(527		)	(22		)	(549		)
Recoveries	168			10			178
Provision for credit losses	291			5			296
Other	(2		)	1			(1		)
Ending balance	$	496		$	17		$	513

Analysis of ending balance of allowance for credit losses
Collective impairment allowance	$	478		$	15		$	493
Specific impairment allowance	18			2			20
Ending balance	496			17			513

Analysis of ending balance of finance receivables
Collectively evaluated for impairment	73,653			40,666			114,319
Specifically evaluated for impairment	322			189			511
Recorded investment	73,975			40,855			114,830

Ending balance, net of allowance for credit losses	$	73,479		$	40,838		$	114,317

Transfers of Receivables (Tables)

12 Months Ended

Dec. 31, 2019

Transfers and Servicing [Abstract]

Schedule of Assets and Liabilities Related to Securitization Transactions [Table Text Block]

The following tables show the assets and debt related to our securitization transactions that were included in our financial statements at December 31 (in billions):



	2018
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt (b)
	Cash and Cash Equivalents		Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses		Related Debt (b)
VIE (c)
Retail financing	$	1.9	$	34.0	$	0.2	$	33.8	$	29.2
Wholesale financing	0.3		24.9		—		24.9		13.9
Finance receivables	2.2		58.9		0.2		58.7		43.1
Net investment in operating leases	0.5		16.3		—		16.3		10.2
Total VIE	$	2.7	$	75.2	$	0.2	$	75.0	$	53.3

Non-VIE
Retail financing	$	0.3	$	6.7	$	—	$	6.7	$	5.9
Wholesale financing	—		0.8		—		0.8		0.6
Finance receivables	0.3		7.5		—		7.5		6.5
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.3	$	7.5	$	—	$	7.5	$	6.5

Total securitization transactions
Retail financing	$	2.2	$	40.7	$	0.2	$	40.5	$	35.1
Wholesale financing	0.3		25.7		—		25.7		14.5
Finance receivables	2.5		66.4		0.2		66.2		49.6
Net investment in operating leases	0.5		16.3		—		16.3		10.2
Total securitization transactions	$	3.0	$	82.7	$	0.2	$	82.5	$	59.8

__________


(a)	Unearned interest supplements and residual support are excluded from securitization transactions.


(b)	Includes unamortized discount and debt issuance costs.


(c)	Includes assets to be used to settle the liabilities of the consolidated VIEs.

NOTE 7. TRANSFERS OF RECEIVABLES (Continued)



	2019
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt (b)
	Cash and Cash Equivalents		Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses		Related Debt (b)
VIE (c)
Retail financing	$	1.8	$	32.6	$	0.2	$	32.4	$	28.0
Wholesale financing	0.9		26.1		—		26.1		13.4
Finance receivables	2.7		58.7		0.2		58.5		41.4
Net investment in operating leases	0.5		14.9		—		14.9		9.5
Total VIE	$	3.2	$	73.6	$	0.2	$	73.4	$	50.9

Non-VIE
Retail financing	$	0.3	$	5.7	$	—	$	5.7	$	5.1
Wholesale financing	—		0.7		—		0.7		0.6
Finance receivables	0.3		6.4		—		6.4		5.7
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.3	$	6.4	$	—	$	6.4	$	5.7

Total securitization transactions
Retail financing	$	2.1	$	38.3	$	0.2	$	38.1	$	33.1
Wholesale financing	0.9		26.8		—		26.8		14.0
Finance receivables	3.0		65.1		0.2		64.9		47.1
Net investment in operating leases	0.5		14.9		—		14.9		9.5
Total securitization transactions	$	3.5	$	80.0	$	0.2	$	79.8	$	56.6

__________


(a)	Unearned interest supplements and residual support are excluded from securitization transactions.


(b)	Includes unamortized discount and debt issuance costs.


(c)	Includes assets to be used to settle the liabilities of the consolidated VIEs.

Schedule Of Interest Expense related to Securitization Transactions [Table Text Block]

Interest expense related to securitization debt for the years ended December 31 was as follows (in millions):



	2017		2018		2019
VIE	$	827	$	1,220	$	1,373
Non-VIE	128		177		201
Total securitization transactions	$	955	$	1,397	$	1,574

Schedule of Exposures Based on the Fair Value of Derivative Instruments Related to Securitization Programs [Table Text Block]

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):



	2018				2019
	Derivative Asset		Derivative Liability		Derivative Asset		Derivative Liability
Derivatives of the VIEs	$	27	$	24	$	12	$	19
Derivatives related to the VIEs	12		11		7		5
Other securitization related derivatives	31		14		4		30
Total exposures related to securitization	$	70	$	49	$	23	$	54

Schedule of Derivative Expense/(Income) Related to Securitization Transactions [Table Text Block]

Derivative expense / (income) related to our securitization transactions for the years ended December 31 was as follows (in millions):



	2017			2018			2019
Derivatives of the VIEs	$	(38	)	$	30		$	41
Derivatives related to the VIEs	(6		)	(11		)	(5		)
Other securitization related derivatives	(16		)	(2		)	39
Total derivative expense / (income) related to securitization	$	(60	)	$	17		$	75

Derivative Financial Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

The gains / (losses), by hedge designation, reported in income for the years ended December 31 were as follows (in millions):



	2017			2018			2019
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments	$	217		$	10		$	(16	)
Fair value changes on hedging instruments (a)	(268		)	(155		)	706
Fair value changes on hedged debt (a)	267			153			(694		)
Derivatives not designated as hedging instruments
Interest rate contracts	58			(84		)	(13		)
Foreign currency exchange contracts (b)	(150		)	163			52
Cross-currency interest rate swap contracts	103			(244		)	(229		)
Total	$	227		$	(157	)	$	(194	)

__________


(a)	For 2017, the fair value changes on hedging instruments and on hedged debt were reported in Other income, net; effective 2018, these amounts were reported in Interest expense.


(b)	Reflects forward contracts between Ford Credit and an affiliated company.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The fair value of our derivative instruments and the associated notional amounts, presented gross, at December 31 were as follows (in millions):



	2018						2019
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	22,989	$	158	$	208	$	26,577	$	702	$	19
Derivatives not designated as hedging instruments
Interest rate contracts	76,904		235		274		68,914		275		191
Foreign currency exchange contracts	4,318		45		24		5,540		17		79
Cross-currency interest rate swap contracts	5,235		232		157		5,849		134		67
Total derivative financial instruments, gross (a) (b)	$	109,446	$	670	$	663	$	106,880	$	1,128	$	356

__________


(a)	At December 31, 2018 and 2019, we held collateral of $19 million and $18 million, and we posted collateral of $59 million and $78 million, respectively.

(b)

At December 31, 2018 and 2019, the fair value of assets and liabilities available for counterparty netting was $233 million and $169 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.

Other Assets and Other Liabilities and Deferred Income (Tables)

12 Months Ended

Dec. 31, 2019

Other Assets and Other Liabilities and Deferred Income [Abstract]

Schedule of Other Assets and Other Liabilities [Table Text Block]

Other assets at December 31 were as follows (in millions):



	2018		2019
Accrued interest and other non-finance receivables	$	1,080	$	898
Collateral held for resale, at net realizable value	877		843
Prepaid reinsurance premiums and other reinsurance recoverables	658		687
Property and equipment, net of accumulated depreciation (a)	192		212
Deferred charges – income taxes	216		171
Restricted cash	140		139
Investment in non-consolidated affiliates	123		132
Deferred charges	96		120
Operating lease assets	—		108
Other	74		88
Total other assets	$	3,456	$	3,398

__________


(a)	Accumulated depreciation was $367 million and $393 million at December 31, 2018 and 2019, respectively.

Other liabilities and deferred revenue at December 31 were as follows (in millions):



	2018		2019
Interest payable	$	752	$	888
Unearned insurance premiums and fees	775		806
Income tax and related interest (a)	369		433
Deferred revenue	113		110
Operating lease liabilities	—		110
Payroll and employee benefits	70		74
Other	228		212
Total other liabilities and deferred revenue	$	2,307	$	2,633

__________

(a)

Includes tax and interest payable to affiliated companies of $193 million and $294 million at December 31, 2018 and 2019, respectively.

Debt (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

Debt outstanding and interest rates at December 31 were as follows (in millions):



							Interest Rates
	Debt						Average Contractual				Average Effective
	2018			2019			2018		2019		2018		2019
Short-term debt
Unsecured debt
Floating rate demand notes	$	5,880		$	6,545
Commercial paper	3,749			3,560
Other short-term debt	4,213			2,731
Asset-backed debt	943			881
Total short-term debt	14,785			13,717			3.5	%	2.8	%	3.5	%	2.8	%
Long-term debt
Unsecured debt
Notes payable within one year	14,373			15,062
Notes payable after one year	52,409			55,148
Asset-backed debt
Notes payable within one year	22,130			23,609
Notes payable after one year	36,844			32,162
Unamortized (discount) / premium	2			7
Unamortized issuance costs	(211		)	(214		)
Fair value adjustments (a)	(186		)	538
Total long-term debt	125,361			126,312			2.8	%	3.0	%	2.8	%	3.0	%
Total debt	$	140,146		$	140,029		2.8	%	2.9	%	2.9	%	3.0	%

Fair value of debt	$	138,888		$	141,678
Interest rate characteristics of debt payable after one year
Fixed interest rate	61,749			67,090
Variable interest rate (generally based on LIBOR or other short-term rates)	27,504			20,220
Total payable after one year	$	89,253		$	87,310

__________

(a)

These adjustments relate to designated fair value hedges. The carrying value of hedged debt was $38.0 billion and $39.4 billion at December 31, 2018 and 2019, respectively.

Schedule of Maturities of Long-term Debt [Table Text Block]

Debt maturities at December 31, 2019 were as follows (in millions):



	2020 (a)		2021		2022		2023		2024		Thereafter (b)		Total
Unsecured debt	$	27,898	$	16,893	$	12,827	$	7,054	$	8,101	$	10,273	$	83,046
Asset-backed debt	24,490		14,371		8,925		3,476		2,505		2,885		56,652
Total	52,388		31,264		21,752		10,530		10,606		13,158		139,698
Unamortized discount													7
Unamortized issuance costs													(214		)
Fair value adjustments													538
Total debt													$	140,029

__________


(a)	Includes $13,717 million for short-term and $38,671 million for long-term debt.


(b)	Matures between 2025 and 2029.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Provision for / (Benefit from) income taxes for the years ended December 31 was estimated as follows (in millions):



	2017			2018			2019
Current
Federal	$	(6	)	$	72		$	396
Non-U.S.	241			153			168
State and local	(9		)	(81		)	169
Total current	226			144			733
Deferred
Federal	(1,016		)	283			(12		)
Non-U.S.	30			(125		)	104
State and local	63			101			(55		)
Total deferred	(923		)	259			37
Provision for / (Benefit from) income taxes	$	(697	)	$	403		$	770



	2017		2018		2019
Income before income taxes (in millions)
U.S.	$	1,331	$	1,717	$	2,160
Non-U.S.	979		910		838
Total	$	2,310	$	2,627	$	2,998

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of the Provision for / (Benefit from) income taxes with the United States statutory tax rate as a percentage of Income before income taxes for the years ended December 31 is as follows:



	2017		2018		2019
U.S. statutory tax rate	35.0	%	21.0	%	21.0	%
Effect of (in percentage points):
Non-U.S. tax rates under U.S. rate	(4.0	)	1.7		1.3
State and local income taxes	1.5		0.6		2.7
Dispositions and restructurings	—		(8.9	)	—
U.S. tax on non-U.S. earnings	15.6		0.4		(0.1	)
Enacted change in tax laws	(78.1	)	—		—
Other	(0.2	)	0.5		0.8
Effective tax rate	(30.2	)%	15.3	%	25.7	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

omponents of deferred tax assets and liabilities at December 31 were as follows (in millions):



	2018			2019
Deferred tax assets
Net operating loss carryforwards	$	339		$	378
Provision for credit losses	175			141
Other foreign	106			190
Employee benefit plans	28			24
Foreign tax credits	1,297			669
Other	50			46
Total gross deferred tax assets	1,995			1,448
Less: Valuation allowance	(81		)	(43		)
Total net deferred tax assets	1,914			1,405
Deferred tax liabilities
Leasing transactions	3,126			2,674
Finance receivables	639			584
Other foreign	524			568
Other	4			1
Total deferred tax liabilities	4,293			3,827
Net deferred tax liability	$	2,379		$	2,422

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]



	2018			2019
Beginning balance	$	90		$	115
Increase - tax positions in prior periods	28			40
Increase - tax positions in current period	7			—
Decrease - tax positions in prior periods	(6		)	(8		)
Settlements	(1		)	(36		)
Lapse of statute of limitations	—			—
Foreign currency translation adjustments	(3		)	(2		)
Ending balance	$	115		$	109

Insurance (Tables)

12 Months Ended

Dec. 31, 2019

Insurance [Abstract]

Schedule of Insurance Assets [Table Text Block]

Cash, cash equivalents, and marketable securities related to insurance activities at December 31 were as follows (in millions):



	2018		2019
Cash and cash equivalents	$	59	$	9
Marketable securities	649		697
Total cash, cash equivalents, and marketable securities	$	708	$	706

Schedule of Insurance Underwriting Losses and Expenses [Table Text Block]

The components of insurance expenses for the years ended December 31 were as follows (in millions):



	2017			2018			2019
Insurance losses	$	143		$	101		$	128
Loss adjustment expenses	8			5			7
Reinsurance income and other expenses, net	(27		)	(29		)	(32		)
Insurance expenses	$	124		$	77		$	103

Schedule of the Effect of Reinsurance Premiums Written and Earned [Table Text Block]

Insurance premiums written and earned for the years ended December 31 were as follows (in millions):



	2017						2018						2019
	Written			Earned			Written			Earned			Written			Earned
Direct	$	385		$	320		$	392		$	346		$	406		$	377
Assumed	—			—			—			—			—			—
Ceded	(227		)	(162		)	(225		)	(179		)	(223		)	(195		)
Net premiums	$	158		$	158		$	167		$	167		$	183		$	182

Other Income, Net (Tables)

12 Months Ended

Dec. 31, 2019

Other Income and Expenses [Abstract]

Schedule of Other Income [Table Text Block]

The amounts included in Other income, net for the years ended December 31 were as follows (in millions):



	2017		2018			2019
Gains / (Losses) on derivatives	$	11	$	(165	)	$	(190	)
Currency revaluation gains / (losses)	44		12			70
Interest and investment income (a)	112		198			318
Other	83		35			16
Total other income, net	$	250	$	80		$	214

__________

(a)

Includes interest income primarily on notes receivable from affiliated companies of $9 million, $10 million, and $5 million for December 31, 2017, 2018, and 2019, respectively.

Segment and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Key operating data for our business segments for the years ended or at December 31 was as follows (in millions):



	Americas		Europe		Asia Pacific			Total Segments		Unallocated Other (a)			Total
2017
Total revenue	$	9,928	$	981	$	468		$	11,377	$	—		$	11,377
Income before income taxes	1,795		329		85			2,209		101			2,310
Other disclosures:
Depreciation on vehicles subject to operating leases	4,210		44		—			4,254		—			4,254
Interest expense	2,641		257		277			3,175		—			3,175
Provision for credit losses	423		28		18			469		—			469
Net finance receivables and net investment in operating leases	118,392		24,957		7,152			150,501		(7,837		)	142,664
Total assets	124,645		28,204		7,594			160,443		—			160,443

2018
Total revenue	$	10,706	$	1,160	$	516		$	12,382	$	—		$	12,382
Income before income taxes	2,208		391		102			2,701		(74		)	2,627
Other disclosures:
Depreciation on vehicles subject to operating leases	3,934		39		—			3,973		—			3,973
Interest expense	3,331		283		322			3,936		(6		)	3,930
Provision for credit losses	391		20		15			426		—			426
Net finance receivables and net investment in operating leases	123,403		26,029		5,444			154,876		(8,613		)	146,263
Total assets	128,498		27,804		5,907			162,209		—			162,209

2019
Total revenue	$	11,109	$	1,183	$	331		$	12,623	$	—		$	12,623
Income before income taxes	2,422		363		75			2,860		138			2,998
Other disclosures:
Depreciation on vehicles subject to operating leases	3,592		43		—			3,635		—			3,635
Interest expense	3,840		340		191			4,371		18			4,389
Provision for credit losses	277		25		(6		)	296		—			296
Net finance receivables and net investment in operating leases (b)	120,976		25,629		3,585			150,190		(8,214		)	141,976
Total assets	127,533		30,050		3,843			161,426		—			161,426

__________


(a)	Finance receivables, net and Net investment in operating leases include unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation).


(b)	Excludes held-for-sale receivables.

Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block]

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):



	2017		2018		2019
Total revenue
United States	$	8,378	$	9,043	$	9,472
Canada	1,193		1,315		1,323
All other	1,806		2,024		1,828
Total revenue	$	11,377	$	12,382	$	12,623

Net property and net investment in operating leases
United States	$	23,162	$	24,057	$	24,123
Canada	3,302		3,155		3,328
All other	374		429		420
Net property and net investment in operating leases	$	26,838	$	27,641	$	27,871

Selected Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information [Table Text Block]

Selected financial data by calendar quarter were as follows (in millions):



	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Full Year
2018
Total revenue	$	3,020		$	3,099		$	3,081		$	3,182		$	12,382
Depreciation on vehicles subject to operating leases	(1,053		)	(986		)	(936		)	(998		)	(3,973		)
Interest expense	(912		)	(997		)	(989		)	(1,032		)	(3,930		)
Total financing margin and other revenue	1,055			1,116			1,156			1,152			4,479
Provision for credit losses	94			69			127			136			426
Net income	701			479			518			526			2,224

2019
Total revenue	$	3,194		$	3,188		$	3,127		$	3,114		$	12,623
Depreciation on vehicles subject to operating leases	(924		)	(894		)	(894		)	(923		)	(3,635		)
Interest expense	(1,121		)	(1,114		)	(1,081		)	(1,073		)	(4,389		)
Total financing margin and other revenue	1,149			1,180			1,152			1,118			4,599
Provision for credit losses	33			63			93			107			296
Net income	603			613			571			441			2,228

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Minimum rentals on operating leases [Table Text Block]

Minimum non-cancelable operating lease commitments at December 31, 2018 were as follows (in millions):



	2019		2020		2021		2022		2023		Thereafter		Total
Minimum rentals on operating leases	$	19	$	14	$	11	$	10	$	9	$	34	$	97

Lessee, Operating Lease, Liability, Maturity [Table Text Block]



	2020		2021		2022		2023		2024		Thereafter		Total
Operating lease	$	22	$	18	$	16	$	16	$	15	$	36	$	123
Less: Present value discount													13
Total operating lease liabilities													$	110

Presentation Separation and Restructuring Actions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Restructuring and Related Cost, Incurred Cost	$ 56
Disposal Group, Including Discontinued Operation, Assets	1,698	$ 0
Disposal Group, Including Discontinued Operation, Other Liabilities	45	$ 0
Disposal Group, Including Discontinued Operation, Operating Income (Loss)	20
Forso Nordic AB [Member]
Disposal Group, Including Discontinued Operation, Intercompany Liabilities	1,274
Disposal Group, Including Discontinued Operation, Assets	1,416
Disposal Group, Including Discontinued Operation, Intercompany Assets	2
Disposal Group, Including Discontinued Operation, Other Liabilities	$ 45

Accounting Policies (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating Lease Right Of Use Asset Expected	$ 108	$ 0
Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating Lease Liability Expected	100
Operating Lease Right Of Use Asset Expected	100
Forecast [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	$ 250

Cash, Cash Equivalents, and Marketable Securities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash, Cash Equivalents, and Short-term Investments	$ 8,113	$ 8,445
Total cash and cash equivalents	9,067	9,607
Restricted Cash	139	140
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Disposal Group, Including Discontinued Operations	62	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	9,268	9,747	$ 9,682	$ 8,185
Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash and cash equivalents	954	1,162
Fair Value, Recurring [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Marketable securities	3,296	1,308
US Treasury Securities [Member] \| Fair Value, Recurring [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash and cash equivalents	0	139
Marketable securities	195	289
US Government Agencies Debt Securities [Member] \| Fair Value, Recurring [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash and cash equivalents	0	25
Marketable securities	210	65
Debt Security, Government, Non-US [Member] \| Fair Value, Recurring [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash and cash equivalents	350	114
Marketable securities	2,408	610
Corporate debt [Member] \| Fair Value, Recurring [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash and cash equivalents	604	884
Marketable securities	193	198
Other Debt Obligations [Member] \| Fair Value, Recurring [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Marketable securities	$ 290	$ 146

Finance Receivables Net (Details) - USD ($) $ in Millions	12 Months Ended
Finance Receivables Net (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Term at Which Fair Value of Finance Receivables is Measured	120 days
Wholesale Loans Percentage of Dealer Financing	95.00%
Net Finance Receivables [Abstract]
Financing Receivable, before Allowance for Credit Loss	$ 114,830	$ 119,403
Sales-type and Direct Financing Leases, Lease Receivable	5,651
Unearned interest supplements from Ford and affiliated companies	363
Financing Receivable, Allowance for Credit Loss	(513)	(589)	$ (597)
Financing Receivable, after Allowance for Credit Loss	114,317	118,814
Net finance receivables subject to fair value	106,131	110,388
Related Party Transaction, Dealer Financing	4,100	6,000
Related Party Transaction, Dealer Financing	844	662
Related Party, Interest Income, Finance Receivables	10	8	7
Interest and Fee Income, Other Loans	96	84	70
Related Party Transaction, Interest Income, Purchased Receivables	229	261	166
Related Party Transaction, Earned Interest Supplements, Financing Receivables	2,500	2,400	2,000
Related Party Transactions Cash Received Interest Supplements Financing Receivables	2,600	2,700	2,300
Uncollected interest receivable excluded from finance receivable	253	264
Continuing Involvement with Continued to be Recognized Transferred Financial Assets, Amount Outstanding	$ 14,900	16,300
Threshold of whether it is probable that finance receivables will be held for the foreseeable future	70.00%
Consumer Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivable, before Allowance for Credit Loss	$ 73,975	76,239
Financing Receivable, Allowance for Credit Loss	(496)	(566)	(582)
Financing Receivable, after Allowance for Credit Loss	73,479	75,673
Continuing Involvement with Continued to be Recognized Transferred Financial Assets, Amount Outstanding	38,300	40,700
Non-Consumer Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivable, before Allowance for Credit Loss	40,855	43,164
Financing Receivable, Allowance for Credit Loss	(17)	(23)	$ (15)
Financing Receivable, after Allowance for Credit Loss	40,838	43,141
Continuing Involvement with Continued to be Recognized Transferred Financial Assets, Amount Outstanding	26,800	25,700
Retail Installment Loans [Member] \| Consumer Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivable, before Allowance for Credit Loss	68,998	70,999
Retail [Member] \| Consumer Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivable, before Allowance for Credit Loss	73,975	76,239
Unearned interest supplements from Ford and affiliated companies	(3,589)	(3,508)
Retail [Member] \| Retail financing, gross [Member]
Net Finance Receivables [Abstract]
Financing Receivable, before Allowance for Credit Loss	77,564	79,747
Finance Lease [Member] \| Consumer Segment [Member]
Net Finance Receivables [Abstract]
Sales-type and Direct Financing Leases, Lease Receivable	8,566	8,748
Wholesale and Dealer Loans [Member] \| Non-Consumer Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivable, before Allowance for Credit Loss	38,910	40,996
Other Finance Receivables [Member] \| Non-Consumer Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivable, before Allowance for Credit Loss	1,945	2,168
Fair Value, Nonrecurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Net Finance Receivables [Abstract]
Fair value	$ 106,260	$ 109,794

Finance Receivables Held-for-sale (Details) $ in Billions	12 Months Ended
Finance Receivables Held-for-sale (Details) $ in Billions	Dec. 31, 2019 USD ($)
Financing Receivable, Reclassification to Held-for-sale	$ 1.5
Forso Nordic AB [Member]
Financing Receivable, Reclassification to Held-for-sale	$ 1.2

Finance Receivables Undiscounted Future Cash Payments (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Financing Receivable, Impaired [Line Items]

Sales-type and Direct Financing Leases, Lease Receivable, Maturity [Table Text Block]

The amounts contractually due on finance lease receivables at December 31 were as follows (in millions):



	2019
2020	$	1,911
2021	1,853
2022	1,418
2023	673
2024	83
2025	—
Total future cash payments	5,938
Less: Present value discount	(287		)
Finance lease receivables	$	5,651

The reconciliation from finance lease receivables to finance leases, gross and finance leases, net at December 31 is as follows (in millions):



	2019
Finance lease receivables	$	5,651
Unguaranteed residual assets	2,795
Initial direct costs	120
Finance leases, gross	8,566
Unearned interest supplements from Ford and affiliated companies	(363		)
Allowance for credit losses	(17		)
Finance leases, net	$	8,186

Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, 2020

$ 1,911

Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, 2021

1,853

Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, 2022

1,418

Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, 2023

673

Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, 2024

83

Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, 2025

0

Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received

5,938

Sales-type and Direct Financing Leases, Lease Receivable, Undiscounted Excess Amount

(287)

Sales-type and Direct Financing Leases, Lease Receivable

5,651

Sales-type Lease, Unguaranteed Residual Asset

2,795

Deferred Costs, Leasing, Gross

120

(363)

Financing Receivable, Allowance for Credit Loss

(513)

$ (589)

$ (597)

Financing Receivable, after Allowance for Credit Loss

114,317

118,814

Sales Type and Direct Financing Lease Revenue

380

375

Finance leases [Domain]

Financing Receivable, Impaired [Line Items]

Financing Receivable, Allowance for Credit Loss

(17)

Financing Receivable, after Allowance for Credit Loss

8,186

8,426

Consumer Portfolio Segment [Member]

Financing Receivable, Impaired [Line Items]

Financing Receivable, Allowance for Credit Loss

(496)

(566)

$ (582)

Financing Receivable, after Allowance for Credit Loss

73,479

75,673

Consumer Portfolio Segment [Member] | Finance Lease [Member]

Financing Receivable, Impaired [Line Items]

Sales-type and Direct Financing Leases, Lease Receivable

8,566

$ 8,748

Finance Receivable Before Unearned Interest Supplements

$ 8,566

Finance Receivables - Aging Analysis (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Threshold Period For Past Due Finance Receivables	31 days
Financing Receivable, 90 Days or More Past Due, Still Accruing	$ 0
Finance Receivables Aging Analysis [Abstract]
Financing Receivables	114,830	$ 119,403
Consumer Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, 90 Days or More Past Due, Still Accruing		20
Finance Receivables Aging Analysis [Abstract]
Current	72,935	75,179
Total past due	1,040	1,060
Financing Receivables	73,975	76,239
Non-Consumer Segment [Member]
Finance Receivables Aging Analysis [Abstract]
Current	40,793	43,088
Total past due	62	76
Financing Receivables	40,855	43,164
31-60 Days Past Due [Member] \| Consumer Segment [Member]
Finance Receivables Aging Analysis [Abstract]
Total past due	839	859
61-90 Days Past Due [Member] \| Consumer Segment [Member]
Finance Receivables Aging Analysis [Abstract]
Total past due	126	123
91-120 Days Past Due [Member] \| Consumer Segment [Member]
Finance Receivables Aging Analysis [Abstract]
Total past due	40	39
Greater Than 120 Days Past Due [Member] \| Consumer Segment [Member]
Finance Receivables Aging Analysis [Abstract]
Total past due	$ 35	$ 39

Finance Receivables - Credit Quality and Impaired Receivables (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	$ 114,830	$ 119,403
Consumer Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Threshold Period for Impaired Finance Receivables	120 days
Financing Receivables	$ 73,975	76,239
Impaired Financing Receivable, Recorded Investment	$ 322	$ 370
Impaired Financing Receivable Recorded Investment, Percentage of Receivable	0.40%	0.50%
Consumer Segment [Member] \| Pass [Member] \| Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance Receivables Credit Quality Ratings Term Range	60 days
Consumer Segment [Member] \| Special Mention [Member] \| Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance Receivables Credit Quality Ratings Term Range	61 days
Consumer Segment [Member] \| Special Mention [Member] \| Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance Receivables Credit Quality Ratings Term Range	120 days
Consumer Segment [Member] \| Substandard [Member] \| Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance Receivables Credit Quality Ratings Term Range	120 days
Non-Consumer Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	$ 40,855	$ 43,164
Impaired Financing Receivable, Recorded Investment	$ 189	$ 129
Impaired Financing Receivable Recorded Investment, Percentage of Receivable	0.50%	0.30%
Non-Consumer Segment [Member] \| Wholesale and Dealer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	$ 38,910	$ 40,996
Non-Consumer Segment [Member] \| Wholesale and Dealer Loans [Member] \| Group I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	31,206	33,656
Non-Consumer Segment [Member] \| Wholesale and Dealer Loans [Member] \| Group II
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	5,407	5,635
Non-Consumer Segment [Member] \| Wholesale and Dealer Loans [Member] \| Group III
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	2,108	1,576
Non-Consumer Segment [Member] \| Wholesale and Dealer Loans [Member] \| Group IV
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	$ 189	$ 129

Net Investments in Operating Leases (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property Subject to or Available for Operating Lease [Line Items]
Financing Receivable, Allowance for Credit Loss	$ 513				$ 589				$ 513	$ 589	$ 597
Provision for Loan and Lease Losses	(107)	$ (93)	$ (63)	$ (33)	(136)	$ (127)	$ (69)	$ (94)	$ (296)	(426)	(469)
Length of lease contract									60 months or less
Vehicles, at cost	33,431				33,593				$ 33,431	33,593
Accumulated depreciation	(5,772)				(6,144)				(5,772)	(6,144)
Net investment in operating leases before allowance for credit losses	27,659				27,449				27,659	27,449
Net investment in operating leases	27,659				27,449				27,659	27,449
Continuing Involvement with Continued to be Recognized Transferred Financial Assets, Amount Outstanding	14,900				16,300				14,900	16,300
Operating Leases, Future Minimum Payments Receivable [Abstract]
2019	4,708								4,708
2020	2,929								2,929
2021	1,083								1,083
2022	83								83
2023	6								6
Operating Leases, Future Minimum Payments Receivable	8,809								$ 8,809
Net investment in operating lease, payment extension									6 months
Net investment in operating lease, term and payment extension									12 months
Lessor, Operating Lease, Payments to be Received, 2020	4,706								$ 4,706
Lessor, Operating Lease, Payments to be Received, 2021	2,898								2,898
Lessor, Operating Lease, Payments to be Received, 2022	1,011								1,011
Lessor, Operating Lease, Payments to be Received, 2023	78								78
Lessor, Operating Lease, Payments to be Received, 2024	5								5
Lessor, Operating Lease, Payments to be Received	8,698								8,698
Operating Leases, Income Statement, Depreciation Expense on Property Subject to or Held-for-lease	923	$ 894	$ 894	$ 924	998	$ 936	$ 986	$ 1,053	3,635	3,973	4,254
Affiliated Entity [Member]
Property Subject to or Available for Operating Lease [Line Items]
Related Party Transaction, Deferred Interest Supplements and Residual Support Payments on Net Investment in Operating Leases	$ 3,100				3,300				3,100	3,300
Related Party Transaction, Earned Interest Supplements and Residual Support Costs, Net Investment in Operating Lease									2,600	2,400	2,100
Related Party Transactions, Cash Received and Interest Supplements, Net Investment in Operating Lease									$ 2,500	2,800	2,400
Property Subject to Operating Lease [Member]
Property Subject to or Available for Operating Lease [Line Items]
Accumulated depreciation					(78)					(78)
Adjustments for New Accounting Pronouncement [Member]
Property Subject to or Available for Operating Lease [Line Items]
Financing Receivable, Allowance for Credit Loss					$ 78					78
Provision for Loan and Lease Losses										(106)	(119)
Operating Leases, Future Minimum Payments Receivable [Abstract]
Operating Leases, Income Statement, Depreciation Expense on Property Subject to or Held-for-lease										$ 106	$ 119

Allowance for Credit Losses (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Allowance for Credit Loss [Line Items]
Term To Charge Off Finance Receivables									Greater than 120 days past due
Number Of Days At Which Finance Receivables Impaired									when an account is deemed to be uncollectible or when an account is 120 days delinquent
Allowance for credit losses, finance receivables
Beginning balance				$ 589				$ 597	$ 589	$ 597
Charge-offs									(549)	(595)
Recoveries									178	170
Provision for credit losses									296	427
Other									(1)	(10)
Ending balance	$ 513				$ 589				513	589	$ 597
Analysis of ending balance of allowance for credit losses, finance receivables
Collective impairment allowance	493				560				493	560
Specific impairment allowance	20				29				20	29
Ending balance	513				589				513	589	597
Analysis of ending balance of finance receivables
Collectively evaluated for impairment	114,319				118,904				114,319	118,904
Specifically evaluated for impairment	511				499				511	499
Financing Receivables	114,830				119,403				114,830	119,403
Total allowance
Provision for credit losses	107	$ 93	$ 63	33	136	$ 127	$ 69	94	296	426	469
Analysis of Ending Balance of Finance Receivables and Net Investment in Operating Leases [Abstract]
Ending balance, net of allowance for credit losses	114,317				118,814				114,317	118,814
Ending balance, net investment in operating leases	27,659				27,449				27,659	27,449
Consumer Segment [Member]
Allowance for credit losses, finance receivables
Beginning balance				566				582	566	582
Charge-offs									(527)	(528)
Recoveries									168	163
Provision for credit losses									291	359
Other									(2)	(10)
Ending balance	496				566				496	566	582
Analysis of ending balance of allowance for credit losses, finance receivables
Collective impairment allowance	478				546				478	546
Specific impairment allowance	18				20				18	20
Ending balance	496				566				496	566	582
Analysis of ending balance of finance receivables
Collectively evaluated for impairment	73,653				75,869				73,653	75,869
Specifically evaluated for impairment	322				370				322	370
Financing Receivables	73,975				76,239				73,975	76,239
Analysis of Ending Balance of Finance Receivables and Net Investment in Operating Leases [Abstract]
Ending balance, net of allowance for credit losses	73,479				75,673				73,479	75,673
Non-Consumer Segment [Member]
Allowance for credit losses, finance receivables
Beginning balance				$ 23				$ 15	23	15
Charge-offs									(22)	(67)
Recoveries									10	7
Provision for credit losses									5	68
Other									1	0
Ending balance	17				23				17	23	15
Analysis of ending balance of allowance for credit losses, finance receivables
Collective impairment allowance	15				14				15	14
Specific impairment allowance	2				9				2	9
Ending balance	17				23				17	23	$ 15
Analysis of ending balance of finance receivables
Collectively evaluated for impairment	40,666				43,035				40,666	43,035
Specifically evaluated for impairment	189				129				189	129
Financing Receivables	40,855				43,164				40,855	43,164
Analysis of Ending Balance of Finance Receivables and Net Investment in Operating Leases [Abstract]
Ending balance, net of allowance for credit losses	$ 40,838				$ 43,141				$ 40,838	$ 43,141

Transfers of Receivables - Assets and Liabilities of Securitizations (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Securitization Transactions [Line Items]
Cash and cash equivalents	$ 9,067	$ 9,607
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	141,976	146,263	$ 142,664
Related Debt	140,029	140,146
Variable Interest Entity, Primary Beneficiary [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	3,202	2,728
Related Debt	50,865	53,269
Variable Interest Entity, Primary Beneficiary [Member] \| Securitization Transactions [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	3,200	2,700
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	73,600	75,200
Allowance for Credit Losses	200	200
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	73,400	75,000
Related Debt	50,900	53,300
Variable Interest Entity, Primary Beneficiary [Member] \| Securitization Transactions [Member] \| Financing Receivable [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	2,700	2,200
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	58,700	58,900
Allowance for Credit Losses	200	200
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	58,500	58,700
Related Debt	41,400	43,100
Variable Interest Entity, Primary Beneficiary [Member] \| Securitization Transactions [Member] \| Retail [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	1,800	1,900
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	32,600	34,000
Allowance for Credit Losses	200	200
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	32,400	33,800
Related Debt	28,000	29,200
Variable Interest Entity, Primary Beneficiary [Member] \| Securitization Transactions [Member] \| Wholesale [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	900	300
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	26,100	24,900
Allowance for Credit Losses	0	0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	26,100	24,900
Related Debt	13,400	13,900
Variable Interest Entity, Primary Beneficiary [Member] \| Securitization Transactions [Member] \| Net Investment in Operating Leases [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	500	500
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	14,900	16,300
Allowance for Credit Losses	0	0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	14,900	16,300
Related Debt	9,500	10,200
Consolidated Entities [Member] \| Securitization Transactions [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	3,500	3,000
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	80,000	82,700
Allowance for Credit Losses	200	200
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	79,800	82,500
Related Debt	56,600	59,800
Consolidated Entities [Member] \| Securitization Transactions [Member] \| Financing Receivable [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	3,000	2,500
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	65,100	66,400
Allowance for Credit Losses	200	200
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	64,900	66,200
Related Debt	47,100	49,600
Consolidated Entities [Member] \| Securitization Transactions [Member] \| Retail [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	2,100	2,200
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	38,300	40,700
Allowance for Credit Losses	200	200
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	38,100	40,500
Related Debt	33,100	35,100
Consolidated Entities [Member] \| Securitization Transactions [Member] \| Wholesale [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	900	300
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	26,800	25,700
Allowance for Credit Losses	0	0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	26,800	25,700
Related Debt	14,000	14,500
Consolidated Entities [Member] \| Securitization Transactions [Member] \| Net Investment in Operating Leases [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	500	500
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	14,900	16,300
Allowance for Credit Losses	0	0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	14,900	16,300
Related Debt	9,500	10,200
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] \| Securitization Transactions [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	300	300
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	6,400	7,500
Allowance for Credit Losses	0	0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	6,400	7,500
Related Debt	5,700	6,500
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] \| Securitization Transactions [Member] \| Financing Receivable [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	300	300
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	6,400	7,500
Allowance for Credit Losses	0	0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	6,400	7,500
Related Debt	5,700	6,500
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] \| Securitization Transactions [Member] \| Retail [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	300	300
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	5,700	6,700
Allowance for Credit Losses	0	0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	5,700	6,700
Related Debt	5,100	5,900
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] \| Securitization Transactions [Member] \| Wholesale [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	0	0
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	700	800
Allowance for Credit Losses	0	0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	700	800
Related Debt	600	600
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] \| Securitization Transactions [Member] \| Net Investment in Operating Leases [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	0	0
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	0	0
Allowance for Credit Losses	0	0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	0	0
Related Debt	$ 0	$ 0

Transfers of Receivables - Financial Performance Related to Securitizations (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Securitization Transactions [Line Items]
Interest expense	$ 1,073	$ 1,081	$ 1,114	$ 1,121	$ 1,032	$ 989	$ 997	$ 912	$ 4,389	$ 3,930	$ 3,175
Securitization Transactions [Member]
Securitization Transactions [Line Items]
Interest expense									1,574	1,397	955
Variable Interest Entity, Primary Beneficiary [Member] \| Securitization Transactions [Member]
Securitization Transactions [Line Items]
Interest expense									1,373	1,220	827
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] \| Securitization Transactions [Member]
Securitization Transactions [Line Items]
Interest expense									$ 201	$ 177	$ 128

Transfers of Receivables - Exposure Based on Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Securitization Transactions [Line Items]
Fair Value of Derivative Assets	$ 1,128	$ 670
Fair Value of Derivative Liabilities	356	663
Securitization Transactions [Member]
Securitization Transactions [Line Items]
Fair Value of Derivative Assets	23	70
Fair Value of Derivative Liabilities	54	49
Related to Variable Interest Entity - Not VIE [Member] \| Securitization Transactions [Member]
Securitization Transactions [Line Items]
Fair Value of Derivative Assets	7	12
Fair Value of Derivative Liabilities	5	11
Other, Not Variable Interest Entity Related [Member] \| Securitization Transactions [Member]
Securitization Transactions [Line Items]
Fair Value of Derivative Assets	4	31
Fair Value of Derivative Liabilities	30	14
Variable Interest Entity, Primary Beneficiary [Member]
Securitization Transactions [Line Items]
Fair Value of Derivative Assets	12	27
Fair Value of Derivative Liabilities	19	24
Variable Interest Entity, Primary Beneficiary [Member] \| Securitization Transactions [Member]
Securitization Transactions [Line Items]
Fair Value of Derivative Assets	12	27
Fair Value of Derivative Liabilities	$ 19	$ 24

Transfers of Receivables - Derivative Income and Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivative expense/(income) related to securitization transactions [Abstract]
Derivative expense/(income)	$ 194	$ 157	$ (227)
Securitization Transactions [Member]
Derivative expense/(income) related to securitization transactions [Abstract]
Derivative expense/(income)	75	17	(60)
Securitization Transactions [Member] \| Related to Variable Interest Entity - Not VIE [Member]
Derivative expense/(income) related to securitization transactions [Abstract]
Derivative expense/(income)	(5)	(11)	(6)
Securitization Transactions [Member] \| Other, Not Variable Interest Entity Related [Member]
Derivative expense/(income) related to securitization transactions [Abstract]
Derivative expense/(income)	39	(2)	(16)
Securitization Transactions [Member] \| Variable Interest Entity, Primary Beneficiary [Member]
Derivative expense/(income) related to securitization transactions [Abstract]
Derivative expense/(income)	$ 41	$ 30	$ (38)

Variable Interest Entities (Details) - Variable Interest Entity, Primary Beneficiary [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Variable Interest Entity [Line Items]
Cash Collateral to Support Wholesale Transactions	$ 0	$ 0
Minimum [Member]
Variable Interest Entity [Line Items]
Cash Contribution Collateral to Support Wholesale Securitization Program	0	0
Maximum [Member]
Variable Interest Entity [Line Items]
Cash Contribution Collateral to Support Wholesale Securitization Program	$ 0	$ 179

Derivative Financial Instruments and Hedging Activities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Effect of Derivative Financial Instruments [Abstract]
Derivative, Gain (Loss) on Derivative, Net	$ (194)	$ (157)	$ 227
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Fair Value of Derivative Assets	1,128	670
Fair Value of Derivative Liabilities	356	663
Derivative, Notional Amount	106,880	109,446
Derivative, Collateral, Obligation to Return Cash	18	19
Derivative, Collateral, Right to Reclaim Cash	78	59
Derivative Asset, Not Offset, Policy Election Deduction	169	233
Interest Rate Contract [Member] \| Not Designated as Hedging Instrument [Member]
Income Effect of Derivative Financial Instruments [Abstract]
Derivative, Gain (Loss) on Derivative, Net	(13)	(84)	58
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Derivative, Notional Amount	68,914	76,904
Interest Rate Contract [Member] \| Fair Value Hedging [Member] \| Designated as Hedging Instrument [Member]
Income Effect of Derivative Financial Instruments [Abstract]
Net interest settlements and accruals excluded from the assessment of hedge effectiveness	(16)	10	217
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments	706	(155)	(268)
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge	(694)	153	267
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Derivative, Notional Amount	26,577	22,989
Foreign Exchange Contract [Member] \| Not Designated as Hedging Instrument [Member]
Income Effect of Derivative Financial Instruments [Abstract]
Derivative, Gain (Loss) on Derivative, Net	52	163	(150)
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Derivative, Notional Amount	5,540	4,318
Cross Currency Interest Rate Contract [Member] \| Not Designated as Hedging Instrument [Member]
Income Effect of Derivative Financial Instruments [Abstract]
Derivative, Gain (Loss) on Derivative, Net	(229)	(244)	$ 103
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Derivative, Notional Amount	5,849	5,235
Level 2 [Member] \| Fair Value, Recurring [Member] \| Interest Rate Contract [Member] \| Not Designated as Hedging Instrument [Member]
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Fair Value of Derivative Assets	275	235
Fair Value of Derivative Liabilities	191	274
Level 2 [Member] \| Fair Value, Recurring [Member] \| Interest Rate Contract [Member] \| Fair Value Hedging [Member] \| Designated as Hedging Instrument [Member]
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Fair Value of Derivative Assets	702	158
Fair Value of Derivative Liabilities	19	208
Level 2 [Member] \| Fair Value, Recurring [Member] \| Foreign Exchange Contract [Member] \| Not Designated as Hedging Instrument [Member]
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Fair Value of Derivative Assets	17	45
Fair Value of Derivative Liabilities	79	24
Level 2 [Member] \| Fair Value, Recurring [Member] \| Cross Currency Interest Rate Contract [Member] \| Not Designated as Hedging Instrument [Member]
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Fair Value of Derivative Assets	134	232
Fair Value of Derivative Liabilities	$ 67	$ 157

Other Assets and Other Liabilities and Deferred Income (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Schedule of Other Assets and Liabilities [Line Items]
Related Party Transactions Income Taxes and Related Interest Payable	$ 294	$ 193
Cost Method Investments	8	9
Other Assets [Abstract]
Accrued interest and other non-finance receivables	898	1,080
Collateral held for resale, at net realizable value, and other inventory	843	877
Prepaid reinsurance premiums and other reinsurance recoverables	687	658
Deferred charges - income taxes	171	216
Property and equipment, net of accumulated depreciation	212	192
Deferred charges	120	96
Operating Lease, Right-of-Use Asset	108	0
Restricted cash	139	140
Investment in non-consolidated affiliates	132	123
Other	88	74
Total other assets	3,398	3,456
Accumulated depreciation	393	367
Other Liabilities and Deferred Income [Abstract]
Unearned insurance premiums and fees	806	775
Interest payable	888	752
Taxes Payable	433	369
Deferred revenue	110	113
Operating Lease, Liability	110	0
Payroll and employee benefits	74	70
Other	212	228
Total other liabilities and deferred income	2,633	2,307
Deferred Revenue, Admission Fees	$ 64	$ 87

Debt (Details) - USD ($) $ in Millions	12 Months Ended
Debt (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Total short-term debt	$ 13,717	$ 14,785
Notes payable after one year	87,310	89,253
Unamortized discount	7	2
Unamortized debt issuance costs	(214)	(211)
Fair value adjustments	538	(186)
Total long-term debt	126,312	125,361
Total debt	140,029	140,146
Debt Carrying Value Fair Value	$ 39,400	$ 38,000
Average Contractual (interest rate)	2.90%	2.80%
Average Effective (interest rate)	3.00%	2.90%
Fair value of short-term debt	$ 12,800	$ 13,800
Other short-term debt	0	80
Interest Paid, Including Capitalized Interest, Operating and Investing Activities	4,100	3,500	$ 2,900
Fixed Interest Rate [Member]
Debt Instrument [Line Items]
Notes payable after one year	67,090	61,749
Variable Interest Rate [Member]
Debt Instrument [Line Items]
Notes payable after one year	20,220	27,504
Floating Rate Demand Notes [Member]
Debt Instrument [Line Items]
Total short-term debt	6,545	5,880
Unsecured commercial paper [Member]
Debt Instrument [Line Items]
Total short-term debt	3,560	3,749
Other short-term debt [Member]
Debt Instrument [Line Items]
Total short-term debt	2,731	4,213
Asset-backed Securities [Member]
Debt Instrument [Line Items]
Total short-term debt	881	943
Notes payable within one year	23,609	22,130
Notes payable after one year	32,162	$ 36,844
Total debt	$ 56,652
Total short-term debt [Member]
Debt Instrument [Line Items]
Average Contractual (interest rate)	2.80%	3.50%
Average Effective (interest rate)	2.80%	3.50%
Unsecured Debt [Member]
Debt Instrument [Line Items]
Notes payable within one year	$ 15,062	$ 14,373
Notes payable after one year	55,148	$ 52,409
Total debt	$ 83,046
Total long-term debt [Member]
Debt Instrument [Line Items]
Average Contractual (interest rate)	3.00%	2.80%
Average Effective (interest rate)	3.00%	2.80%
Fair Value, Nonrecurring [Member] \| Level 2 [Member]
Debt Instrument [Line Items]
Fair value of debt	$ 141,678	$ 138,888

Debt Maturities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Debt Maturities [Abstract]
2019	$ 52,388
2020	31,264
2021	21,752
2022	10,530
2023	10,606
Thereafter	13,158
DebtAndCapitalLeaseObligationTotal	139,698
Total debt	140,029	$ 140,146
Total unamortized discount	7	2
Unamortized debt issuance costs	(214)	(211)
Total fair value adjustments	538	$ (186)
Unsecured Debt [Member]
Debt Maturities [Abstract]
2019	27,898
2020	16,893
2021	12,827
2022	7,054
2023	8,101
Thereafter	10,273
Total debt	83,046
Asset-backed Securities [Member]
Debt Maturities [Abstract]
2019	24,490
2020	14,371
2021	8,925
2022	3,476
2023	2,505
Thereafter	2,885
Total debt	56,652
Short-term debt [Member]
Debt Maturities [Abstract]
2019	13,717
Long-term debt [Member]
Debt Maturities [Abstract]
2019	$ 38,671

Debt - Credit Facilties and Committed Liquidity Programs (Details) € in Millions, £ in Millions, $ in Millions	Dec. 31, 2019 USD ($)	Dec. 31, 2019 EUR (€)	Dec. 31, 2019 GBP (£)
FCE Bank plc [Member]
Schedule Of Debt [Line Items]
Debt Covenant Minimum Net Worth Requirement	$ 500
Ford Motor Company [Member]
Schedule Of Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	3,000
Unsecured Debt [Member]
Schedule Of Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	6,000
Borrowing availability	5,200
Syndicated Credit Facility [Member] \| FCE Bank plc [Member]
Schedule Of Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	983		£ 745
Borrowing availability \| £			£ 625
Syndicated Credit Facility [Member] \| Ford Bank [Member] [Member]
Schedule Of Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	270	€ 240
Borrowing availability	275	€ 240
Revolving Credit Facility [Member]
Schedule Of Debt [Line Items]
Borrowing availability	3,000
Revolving Credit Facility [Member] \| Ford Motor Company [Member]
Schedule Of Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 13,400
Revolving Credit Facility [Member] \| Ford Motor Company [Member] \| Committments maturing by 2022 [Member]
Schedule Of Debt [Line Items]
Line of Credit, Percent Maturing	75.00%	75.00%	75.00%
Revolving Credit Facility [Member] \| Ford Motor Company [Member] \| Commitments maturing by 2020 [Member]
Schedule Of Debt [Line Items]
Line of Credit, Percent Maturing	25.00%	25.00%	25.00%
Contractually Committed Liquidity Facilities [Member]
Schedule Of Debt [Line Items]
Commitment To Sell Commercial Paper Conduits Maximum	$ 36,600
Commitment To Sell Commercial Paper Conduits Current	14,400
Commitment To Sell Commercial Paper Conduits Utilized	17,300
Operating Lease [Member] \| Contractually Committed Liquidity Facilities [Member]
Schedule Of Debt [Line Items]
Commitment To Sell Commercial Paper Conduits Maximum	12,200
Retail [Member] \| Contractually Committed Liquidity Facilities [Member]
Schedule Of Debt [Line Items]
Commitment To Sell Commercial Paper Conduits Maximum	18,800
Wholesale [Member] \| Contractually Committed Liquidity Facilities [Member]
Schedule Of Debt [Line Items]
Commitment To Sell Commercial Paper Conduits Maximum	$ 5,600

Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income before income taxes	$ 2,998	$ 2,627	$ 2,310
Current [Abstract]
Federal	396	72	(6)
Non-U.S.	168	153	241
State and local	169	(81)	(9)
Total current	733	144	226
Deferred [Abstract]
Federal	(12)	283	(1,016)
Non-U.S.	104	(125)	30
State and local	(55)	101	63
Total deferred	37	259	(923)
Provision for income taxes	$ 770	$ 403	$ (697)
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract]
U.S. statutory tax rate	21.00%	21.00%	35.00%
Non-U.S. tax rates under U.S. rate	1.30%	1.70%	(4.00%)
State and local income taxes	2.70%	0.60%	1.50%
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Restructuring Charges, Percent			0.00%
Effective Income Tax Rate Reconciliation, Disposition of Business, Percent	0.00%	(8.90%)
Effective Income Tax Rate Reconciliation Foreign Operations Taxed in United States	(0.10%)	0.40%	15.60%
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent	0.00%	0.00%	(78.10%)
Other	0.80%	0.50%	(0.20%)
Effective tax rate	25.70%	15.30%	(30.20%)
Future Effective Federal Income Tax Rate, Percent		21.00%
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount	$ 1,800
Effective Income Tax Rate Reconciliation, Tax Credit, Foreign, Amount	375
Undistributed Foreign Earnings, Deferred Taxes Not Provided	3,300
Deferred tax assets [Abstract]
Net operating loss carryforwards	378	$ 339
Provision for credit losses	141	175
Other foreign	190	106
Employee benefit plans	24	28
Foreign tax credits	669	1,297
Other	46	50
Total gross deferred tax assets	1,448	1,995
Less: valuation allowance	(43)	(81)
Total net deferred tax assets	1,405	1,914
Deferred tax liabilities [Abstract]
Leasing transactions	2,674	3,126
Finance receivables	584	639
Other foreign	568	524
Other	1	4
Total deferred tax liabilities	3,827	4,293
Net deferred tax liability	2,422	2,379
Amount of valuation allowance released	43
Operating Loss Carryforwards	1,400
Net operating loss carryforwards	378	339
Reconciliation of Unrecognized Tax Benefits [Roll Forward]
Balance at January 1	115	90
Increase - tax positions in prior years	40	28
Increases - tax positions in current year	0	7
Decrease - tax positions in prior years	(8)	(6)
Settlements	(36)	(1)
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations	0	0
Balance at December 31	109	115	$ 90
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	106	111
Unrecognized Tax Benefits Interest Income	3	7	5
Unrecognized Tax Benefits, Interest on Income Taxes Accrued	8	7
Income Taxes Paid	524	188	220
Unrecognized Tax Benefits, Decrease Resulting from Foreign Currency Translation	(2)	(3)
United States
Income before income taxes	2,160	1,717	1,331
Non-US [Member]
Income before income taxes	$ 838	$ 910	$ 979

Insurance (Details) - USD ($) $ in Millions	12 Months Ended
Insurance (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statutory Accounting Practices [Line Items]
Cash and cash equivalents	$ 9	$ 59
Marketable securities	697	649
Total cash, cash equivalents, and marketable securities	706	708
Assets Held by Insurance Regulators	12	12
Prepaid reinsurance premiums and other reinsurance recoverables	687	658
Related party transaction, prepaid reinsurance premiums and other reinsurance recoverables		97
Earned insurance premiums	207	176	$ 154
Insurance loss and loss adjustment expenses	84	71	63
Unearned insurance premiums and fees	806	775
Related Party Transactions Unearned Premiums and Fees	696	667
Premiums Written and Earned [Abstract]
Direct premiums written	406	392	385
Assumed premiums written	0	0	0
Ceded premiums written	(223)	(225)	(227)
Net premiums written	183	167	158
Direct premiums earned	377	346	320
Assumed premiums earned	0	0	0
Ceded premiums earned	(195)	(179)	(162)
Premiums Earned, Net	182	167	158
Insurance Expenses [Abstract]
Insurance losses	128	101	143
Loss adjustment expenses	7	5	8
Reinsurance Income and Other Expenses, Net	(32)	(29)	(27)
Insurance expenses	103	77	124
Liability for reported insurance claims and estimate of unreported claims	12	11
Ceded insurance expenses	$ 127	$ 114	$ 104

Other Income, Net (Details) - USD ($) $ in Millions	12 Months Ended
Other Income, Net (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Component of Other Income, Nonoperating [Line Items]
Gains/(Losses) on derivatives	$ (190)	$ (165)	$ 11
Currency revaluation gains/(losses)	70	12	44
Interest and investment income	318	198	112
Other	16	35	83
Total other income, net	214	80	250
Affiliated Entity [Member]
Component of Other Income, Nonoperating [Line Items]
Related Party Transaction, Interest Income, Notes Receivable, Tax Sharing Agreement	$ 5	$ 10	$ 9

Retirement Benefits (Details) - USD ($) $ in Millions	12 Months Ended
Retirement Benefits (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Allocated Service Cost	$ 47	$ 55	$ 56
Defined Contribution Plan, Cost	8	7	7
Other Postretirement Benefits Cost (Reversal of Cost)	$ 3	$ 4	$ 3

Segment Information (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
Segment Information (Details) - USD ($) $ in Millions	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Total revenue	$ 3,114	$ 3,127	$ 3,188	$ 3,194	$ 3,182	$ 3,081	$ 3,099	$ 3,020	$ 12,623	$ 12,382	$ 11,377
Income before income taxes									2,998	2,627	2,310
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases	923	894	894	924	998	936	986	1,053	3,635	3,973	4,254
Interest expense	1,073	1,081	1,114	1,121	1,032	989	997	912	4,389	3,930	3,175
Provision for credit losses	107	$ 93	$ 63	$ 33	136	$ 127	$ 69	$ 94	296	426	469
Net finance receivables and net investment in operating leases	141,976				146,263				141,976	146,263	142,664
Total assets	161,426				162,209				161,426	162,209	160,443
Operating Segments [Member]
Segment Reporting Information [Line Items]
Total revenue									12,623	12,382	11,377
Income before income taxes									2,860	2,701	2,209
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases									3,635	3,973	4,254
Interest expense									4,371	3,936	3,175
Provision for credit losses									296	426	469
Net finance receivables and net investment in operating leases	150,190				154,876				150,190	154,876	150,501
Total assets	161,426				162,209				161,426	162,209	160,443
Operating Segments [Member] \| Americas [Member]
Segment Reporting Information [Line Items]
Total revenue									11,109	10,706	9,928
Income before income taxes									2,422	2,208	1,795
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases									3,592	3,934	4,210
Interest expense									3,840	3,331	2,641
Provision for credit losses									277	391	423
Net finance receivables and net investment in operating leases	120,976				123,403				120,976	123,403	118,392
Total assets	127,533				128,498				127,533	128,498	124,645
Operating Segments [Member] \| Europe [Member]
Segment Reporting Information [Line Items]
Total revenue									1,183	1,160	981
Income before income taxes									363	391	329
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases									43	39	44
Interest expense									340	283	257
Provision for credit losses									25	20	28
Net finance receivables and net investment in operating leases	25,629				26,029				25,629	26,029	24,957
Total assets	30,050				27,804				30,050	27,804	28,204
Operating Segments [Member] \| Asia Pacific [Member]
Segment Reporting Information [Line Items]
Total revenue									331	516	468
Income before income taxes									75	102	85
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases									0	0	0
Interest expense									191	322	277
Provision for credit losses									(6)	15	18
Net finance receivables and net investment in operating leases	3,585				5,444				3,585	5,444	7,152
Total assets	3,843				5,907				3,843	5,907	7,594
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Total revenue									0	0	0
Income before income taxes									138	(74)	101
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases									0	0	0
Interest expense									18	(6)	0
Provision for credit losses									0	0	0
Net finance receivables and net investment in operating leases	(8,214)				(8,613)				(8,214)	(8,613)	(7,837)
Total assets	$ 0				$ 0				$ 0	$ 0	$ 0

Geographic Information (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
Geographic Information (Details) - USD ($) $ in Millions	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Total revenue	$ 3,114	$ 3,127	$ 3,188	$ 3,194	$ 3,182	$ 3,081	$ 3,099	$ 3,020	$ 12,623	$ 12,382	$ 11,377
Net property and net investment in operating leases	27,871				27,641				27,871	27,641	26,838
United States
Segment Reporting Information [Line Items]
Total revenue									9,472	9,043	8,378
Net property and net investment in operating leases	24,123				24,057				24,123	24,057	23,162
Canada
Segment Reporting Information [Line Items]
Total revenue									1,323	1,315	1,193
Net property and net investment in operating leases	3,328				3,155				3,328	3,155	3,302
All Other
Segment Reporting Information [Line Items]
Total revenue									1,828	2,024	1,806
Net property and net investment in operating leases	$ 420				$ 429				$ 420	$ 429	$ 374

Selected Quarterly Financial Data (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Total revenue	$ 3,114	$ 3,127	$ 3,188	$ 3,194	$ 3,182	$ 3,081	$ 3,099	$ 3,020	$ 12,623	$ 12,382	$ 11,377
Depreciation on vehicles subject to operating leases	(923)	(894)	(894)	(924)	(998)	(936)	(986)	(1,053)	(3,635)	(3,973)	(4,254)
Interest expense	(1,073)	(1,081)	(1,114)	(1,121)	(1,032)	(989)	(997)	(912)	(4,389)	(3,930)	(3,175)
Total financing margin and other revenue	1,118	1,152	1,180	1,149	1,152	1,156	1,116	1,055	4,599	4,479	3,948
Provision for credit losses	107	93	63	33	136	127	69	94	296	426	469
Net income	$ 441	$ 571	$ 613	$ 603	$ 526	$ 518	$ 479	$ 701	$ 2,228	$ 2,224	$ 3,007

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Commitments and Contingencies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 09, 2019
Guarantor Obligations [Line Items]
Operating Lease, Weighted Average Remaining Lease Term	7 years
Operating Lease, Expense	$ 21
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 42
Operating Lease, Weighted Average Discount Rate, Percent	3.10%
Loss Contingency, Estimate of Possible Loss				$ 47
Minimum rentals on operating leases [Abstract]
2019		$ 19
2020		14
2021		11
2022		10
2023		9
Thereafter		34
Total		97
Rent expense	$ 21	28	$ 26
Guarantor Obligations, Current Carrying Value	0
Operating lease due 2020	22
Operating lease due 2021	18
Operating lease due 2022	16
Operating lease due 2023	16
Operating lease due 2024	15
Operating lease due 2025	36
Operating lease total	123
Less: Present value discount	13
Total operating lease liabilities	110	0
Financial Guarantee [Member]
Minimum rentals on operating leases [Abstract]
Maximum potential payments	53	34
Counter Guarantee [Member] \| Ford Motor Company [Member]
Minimum rentals on operating leases [Abstract]
Counter guarantee	$ 48	$ 29
Euro Member Countries, Euro
Guarantor Obligations [Line Items]
Loss Contingency, Estimate of Possible Loss				$ 42
Minimum [Member]
Guarantor Obligations [Line Items]
Lessee, Operating Lease, Term of Contract	1 year
Maximum [Member]
Guarantor Obligations [Line Items]
Lessee, Operating Lease, Term of Contract	32 years