Ford Motor Credit Earnings 2020-06-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

Document

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________

FORM 10-Q

(Mark One)



☑	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2020



☐	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from ____________________ to ____________________

Commission file number 1-6368

Ford Motor Credit Company LLC

(Exact name of registrant as specified in its charter)



Delaware		38-1612444
(State of organization)		(I.R.S. employer identification no.)

One American Road
Dearborn,	Michigan	48126
(Address of principal executive offices)		(Zip Code)

(313) 322-3000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
0.623% Notes due June 28, 2023*	F/23E	New York Stock Exchange
1.355% Notes due February 7, 2025*	F/25I	New York Stock Exchange
4.125% Notes due on June 20, 2024*	F/24O	New York Stock Exchange
3.021% Notes due March 6, 2024*	F/24M	New York Stock Exchange
4.535% Notes due March 6, 2025*	F/25K	New York Stock Exchange
3.350% Notes due Nine Months or More from the Date of Issue due August 20, 2026	F/26N	New York Stock Exchange
1.514% Notes due February 17, 2023*	F/23G	New York Stock Exchange
2.386% Notes due February 17, 2026*	F/26AB	New York Stock Exchange
1.744% Notes due July 19, 2024*	F/24R	New York Stock Exchange
2.330% Notes due on November 25, 2025*	F/25L	New York Stock Exchange
3.683% Notes due on December 3, 2024*	F/24Q	New York Stock Exchange
Floating Rate Notes due May 14, 2021*	F/21C	New York Stock Exchange
Floating Rate Notes due December 1, 2021*	F/21AQ	New York Stock Exchange
Floating Rate Notes due December 7, 2022*	F/22T	New York Stock Exchange
Floating Rate Notes due November 15, 2023*	F/23D	New York Stock Exchange
Floating Rate Notes due December 1, 2024*	F/24L	New York Stock Exchange
*Issued under Euro Medium Term Notes due Nine Months or More from The Date of Issue Program

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þ Yes o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). þ Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer o Non-accelerated filer þ Smaller reporting company o

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
☐	Yes	☑	No

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.

REDUCED DISCLOSURE FORMAT

The registrant meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this Form with the reduced disclosure format.

Exhibit Index begins on page 49

FORD MOTOR CREDIT COMPANY LLC

QUARTERLY REPORT ON FORM 10-Q

For the Quarter Ended June 30, 2020




	Table of Contents	Page

	Part I. Financial Information
Item 1	Financial Statements	1
	Consolidated Income Statements	1
	Consolidated Statements of Comprehensive Income	1
	Consolidated Balance Sheets	2
	Consolidated Statements of Shareholder’s Interest	3
	Consolidated Statements of Cash Flows	4
	Notes to the Financial Statements	5
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
	Recent Developments	25
	Definitions and Information Regarding Causal Factors	26
	Results of Operations	28
	Financing Shares and Contract Placement Volume	31
	Financial Condition	32
	Credit Risk	34
	Residual Risk	36
	Credit Ratings	37
	Funding and Liquidity	38
	Leverage	42
	Outlook	42
	Cautionary Note on Forward-Looking Statements	43
	Critical Accounting Estimates	45
	Accounting Standards Issued But Not Yet Adopted	45
Item 3	Quantitative and Qualitative Disclosures About Market Risk	46
Item 4	Controls and Procedures	46
	Part II. Other Information
Item 1A	Risk Factors	47
Item 5	Other Information	49
Item 6	Exhibits	49
	Signature	50

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements.

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(in millions)



	For the periods ended June 30,
	2019			2020			2019			2020
	Second Quarter						First Half
	(unaudited)
Financing revenue
Operating leases	$	1,472		$	1,401		$	2,949		$	2,860
Retail financing	987			941			1,971			1,917
Dealer financing	596			341			1,204			826
Other financing	26			27			50			49
Total financing revenue	3,081			2,710			6,174			5,652
Depreciation on vehicles subject to operating leases	(894		)	(990		)	(1,818		)	(2,042		)
Interest expense	(1,114		)	(839		)	(2,235		)	(1,823		)
Net financing margin	1,073			881			2,121			1,787
Other revenue
Insurance premiums earned	46			34			93			81
Fee based revenue and other	61			49			115			92
Total financing margin and other revenue	1,180			964			2,329			1,960
Expenses
Operating expenses	350			305			714			667
Provision for credit losses (Note 4)	63			93			96			679
Insurance expenses	60			60			70			66
Total expenses	473			458			880			1,412

Other income / (loss), net (Note 10)	124			37			183			25

Income before income taxes	831			543			1,632			573
Provision for / (Benefit from) income taxes	218			136			416			145
Net income	$	613		$	407		$	1,216		$	428

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)



	For the periods ended June 30,
	2019		2020		2019		2020
	Second Quarter				First Half
	(unaudited)
Net income	$	613	$	407	$	1,216	$	428
Other comprehensive income / (loss), net of tax
Foreign currency translation	8		87		28		(261		)
Comprehensive income / (loss)	$	621	$	494	$	1,244	$	167

The accompanying notes are part of the financial statements.

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in millions)



	December 31, 2019			June 30, 2020
	(unaudited)
ASSETS
Cash and cash equivalents (Note 3)	$	9,067		$	12,838
Marketable securities (Note 3)	3,296			5,036
Finance receivables, net
Retail installment contracts, dealer financing, and other financing	106,131			96,418
Finance leases	8,186			7,500
Total finance receivables, net of allowance for credit losses of $513 and $1,285 (Note 4)	114,317			103,918
Net investment in operating leases (Note 5)	27,659			26,385
Notes and accounts receivable from affiliated companies	863			874
Derivative financial instruments (Note 7)	1,128			2,640
Assets held-for-sale (Note 1 and Note 4)	1,698			50
Other assets (Note 8)	3,398			3,535
Total assets	$	161,426		$	155,276

LIABILITIES
Accounts payable
Customer deposits, dealer reserves, and other	$	1,002		$	1,059
Affiliated companies	421			542
Total accounts payable	1,423			1,601
Debt (Note 9)	140,029			135,267
Deferred income taxes	2,593			1,804
Derivative financial instruments (Note 7)	356			668
Liabilities held-for-sale (Note 1)	45			—
Other liabilities and deferred revenue (Note 8)	2,633			2,174
Total liabilities	147,079			141,514

SHAREHOLDER’S INTEREST
Shareholder’s interest	5,227			5,227
Accumulated other comprehensive income / (loss)	(785		)	(1,046		)
Retained earnings	9,905			9,581
Total shareholder’s interest	14,347			13,762
Total liabilities and shareholder’s interest	$	161,426		$	155,276

The following table includes assets to be used to settle the liabilities of the consolidated variable interest entities (“VIEs”). These assets and liabilities are included in the consolidated balance sheets above.



	December 31, 2019		June 30, 2020
	(unaudited)
ASSETS
Cash and cash equivalents	$	3,202	$	3,204
Finance receivables, net	58,478		49,806
Net investment in operating leases	14,883		14,462
Derivative financial instruments	12		1
LIABILITIES
Debt	$	50,865	$	45,908
Derivative financial instruments	19		94

The accompanying notes are part of the financial statements.

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDER’S INTEREST

(in millions, unaudited)



	Shareholder’s Interest		Accumulated Other Comprehensive Income / (Loss)			Retained Earnings			Total Shareholder’s Interest
Balance at December 31, 2018	$	5,227	$	(829	)	$	10,577		$	14,975
Net income	—		—			603			603
Other comprehensive income / (loss), net of tax	—		20			—			20
Distributions declared	—		—			(675		)	(675		)
Balance at March 31, 2019	$	5,227	$	(809	)	$	10,505		$	14,923

Net income	$	—	$	—		$	613		$	613
Other comprehensive income / (loss), net of tax	—		8			—			8
Distributions declared	—		—			(650		)	(650		)
Balance at June 30, 2019	$	5,227	$	(801	)	$	10,468		$	14,894

Balance at December 31, 2019	$	5,227	$	(785	)	$	9,905		$	14,347
Net income	—		—			21			21
Other comprehensive income / (loss), net of tax	—		(348		)	—			(348		)
Adoption of accounting standard (Note 2)	—		—			(202		)	(202		)
Distributions declared	—		—			(275		)	(275		)
Balance at March 31, 2020	$	5,227	$	(1,133	)	$	9,449		$	13,543

Net income	$	—	$	—		$	407		$	407
Other comprehensive income / (loss), net of tax	—		87			—			87
Distributions declared	—		—			(275		)	(275		)
Balance at June 30, 2020	$	5,227	$	(1,046	)	$	9,581		$	13,762

The accompanying notes are part of the financial statements.

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)



	For the periods ended June 30,
	2019			2020
	First Half
	(unaudited)
Cash flows from operating activities
Net Income	$	1,216		$	428
Adjustments to reconcile net income to net cash provided in operations
Provision for credit losses	96			679
Depreciation and amortization	2,214			2,436
Amortization of upfront interest supplements	(1,062		)	(1,048		)
Net change in finance receivables held-for-sale	—			(74		)
Net change in deferred income taxes	82			(692		)
Net change in other assets	(211		)	(27		)
Net change in other liabilities	571			(243		)
All other operating activities	3			31
Net cash provided by / (used in) operating activities	$	2,909		$	1,490

Cash flows from investing activities
Purchases of finance receivables	(17,770		)	(20,424		)
Principal collections of finance receivables	20,888			19,377
Purchases of operating lease vehicles	(6,500		)	(5,063		)
Proceeds from termination of operating lease vehicles	4,734			4,022
Net change in wholesale receivables and other short-duration receivables	896			9,953
Proceeds from sale of business	—			1,340
Purchases of marketable securities	(2,099		)	(4,139		)
Proceeds from sales and maturities of marketable securities	1,183			2,425
Settlements of derivatives	23			37
All other investing activities	(24		)	(31		)
Net cash provided by / (used in) investing activities	1,331			7,497

Cash flows from financing activities
Proceeds from issuances of long-term debt	24,983			20,146
Principal payments on long-term debt	(24,298		)	(22,965		)
Change in short-term debt, net	(565		)	(1,668		)
Cash distributions to parent	(1,325		)	(550		)
All other financing activities	(64		)	(41		)
Net cash provided by / (used in) financing activities	(1,269		)	(5,078		)

Effect of exchange rate changes on cash, cash equivalents and restricted cash	24			(174		)

Net increase / (decrease) in cash, cash equivalents and restricted cash	$	2,995		$	3,735

Cash, cash equivalents and restricted cash at beginning of period (Note 3)	$	9,747		$	9,268
Net increase / (decrease) in cash, cash equivalents and restricted cash	2,995			3,735
Cash, cash equivalents and restricted cash at end of period (Note 3)	$	12,742		$	13,003

The accompanying notes are part of the financial statements.

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

Table of Contents



Footnote		Page
Note 1	Presentation	6
Note 2	Accounting Policies	7
Note 3	Cash, Cash Equivalents, and Marketable Securities	8
Note 4	Finance Receivables and Allowance for Credit Losses	9
Note 5	Net Investment in Operating Leases	15
Note 6	Transfers of Receivables and Variable Interest Entities	15
Note 7	Derivative Financial Instruments and Hedging Activities	18
Note 8	Other Assets and Other Liabilities and Deferred Revenue	19
Note 9	Debt	20
Note 10	Other Income / (Loss), Net	20
Note 11	Segment Information	21
Note 12	Commitments and Contingencies	23

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1. PRESENTATION

Principles of Consolidation

The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information, and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited financial statements include all adjustments considered necessary for a fair statement of the results of operations and financial condition for interim periods for Ford Motor Credit Company LLC, its consolidated subsidiaries 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”). Results for interim periods should not be considered indicative of results for any other interim period or for the full year. Reference should be made to the financial statements contained in our Current Report on Form 8-K filed April 29, 2020 (“April 29, 2020 Form 8-K Report). We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation.

Global Pandemic

On March 11, 2020, the World Health Organization characterized the outbreak of COVID-19 as a global pandemic and recommended containment and mitigation measures. Since then, extraordinary actions were taken by international, federal, state, and local public health and governmental authorities to contain and combat the outbreak and spread of COVID-19 in regions throughout the world. These actions include travel bans, quarantines, “stay-at-home” orders, and similar mandates for many individuals to substantially restrict daily activities and for many businesses to curtail or cease normal operations. Although restrictions have been eased in many locations, some areas that had previously eased restrictions have reverted to more stringent limitations on daily activities.

Consistent with the actions taken by governmental authorities, as of late March 2020, nearly all of our employees, other than in China, began working remotely in order to reduce the spread of COVID-19. As of June 2020, nearly all of our employees continue to work remotely. Our remote work arrangements have been designed to allow for continued operation of business functions, including originating and servicing customer contracts, financial reporting, and internal control.

Our results include adjustments due to the impact of COVID-19, the most significant of which were a charge to the provision for credit losses of $46 million and $532 million during the second quarter and first half of 2020, respectively, and a gain (decrease) of $40 million and a charge (increase) of $14 million to depreciation expense during the second quarter and first half of 2020, respectively, for lower of cost or market adjustments related to our operating lease vehicles awaiting sale at auction. Our assessments of the effect of COVID-19 on our financial statements, including estimates, are based on a variety of factors and are subject to many uncertainties. See Notes 4 and 8 for additional information.

The impact of the COVID-19 pandemic on our full year financial results will depend on future developments, such as the ultimate duration and scope of the outbreak, its impact on our customers, dealers, and suppliers, and the rate at which economic conditions return to pre-COVID-19 levels.

Restructuring Actions

Beginning in the fourth quarter of 2019, we determined that it was not probable that we would hold certain assets and liabilities for more than the following twelve months, and these assets and liabilities were reported as held-for-sale. The total value of our Assets held-for-sale presented at fair value at December 31, 2019 and June 30, 2020 were $1,698 million and $50 million, respectively, and Liabilities held-for-sale presented at fair value at December 31, 2019 and June 30, 2020 were $45 million and $0 million, respectively.

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 2. ACCOUNTING POLICIES

Provision for Income Taxes

For interim tax reporting we estimate one single effective tax rate, which is applied to the year-to-date ordinary income / (loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.

Adoption of New Accounting Standards

Accounting Standards Update (“ASU”) 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments. On January 1, 2020, we adopted the new credit loss standard and all of the related amendments, which replaced the incurred loss impairment method with a method that reflects lifetime expected credit losses. We adopted the changes in accounting for credit losses by recognizing the cumulative effect of initially applying the new credit loss 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 accounting standard in effect for those periods.

The cumulative effect of the changes made to our consolidated balance sheet at January 1, 2020 for the adoption of ASU 2016-13 was as follows (in millions):



	Balance at December 31, 2019		Adjustments due to ASU 2016-13			Balance at January 1, 2020
Assets
Retail installment contracts, dealer financing, and other financing	$	106,131	$	(230	)	$	105,901
Finance leases	8,186		(22		)	8,164
Other assets	3,398		(8		)	3,390
Liabilities
Deferred income tax	2,593		(58		)	2,535
Equity
Retained earnings	9,905		(202		)	9,703

ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting.

On April 1, 2020, we adopted the new standard, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform (e.g., discontinuation of LIBOR), if certain criteria are met. As of June 30, 2020, we have not yet elected any optional expedients provided in the standard. We will apply the accounting relief as relevant contract and hedge accounting relationship modifications are made during the reference rate reform transition period and do not expect the standard to have a material impact on our consolidated financial statements.

We also adopted the following ASUs during 2020, none of which had a material impact to our financial statements or financial statement disclosures:



ASU		Effective Date
2020-01	Clarifying the Interaction between Equity Securities, Equity Method and Joint Ventures, and Derivatives and Hedging	January 1, 2020
2018-18	Clarifying the Interaction between Collaborative Arrangements and Revenue from Contracts with Customers	January 1, 2020
2018-15	Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract	January 1, 2020

Accounting Standards Issued But Not Yet Adopted

The Company considers the applicability and impacts of all ASUs. ASUs were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements.

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES

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



	Fair Value Level	December 31, 2019		June 30, 2020
Cash and cash equivalents
U.S. government	1	$	—	$	1,568
U.S. government and agencies	2	—		825
Non-U.S. government and agencies	2	350		1,352
Corporate debt	2	604		992
Total marketable securities classified as cash equivalents		954		4,737
Cash, time deposits and money market funds		8,113		8,101
Total cash and cash equivalents		$	9,067	$	12,838

Marketable securities
U.S. government	1	$	195	$	1,924
U.S. government and agencies	2	210		410
Non-U.S. government and agencies	2	2,408		2,215
Corporate debt	2	193		223
Other marketable securities	2	290		264
Total marketable securities		$	3,296	$	5,036

Cash, Cash Equivalents, and Restricted Cash

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



	December 31, 2019		June 30, 2020
Cash and cash equivalents	$	9,067	$	12,838
Restricted cash included in other assets (a)	139		165
Cash, cash equivalents and restricted cash in assets held-for-sale	62		—
Total cash, cash equivalents, and restricted cash	$	9,268	$	13,003

__________


(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.

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES

We manage finance receivables as “consumer” and “non-consumer” portfolios. The receivables are generally secured by the vehicles, inventory, or other property being financed.

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

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

Total Finance Receivables, Net

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



	December 31, 2019			June 30, 2020
Consumer
Retail installment contracts, gross	$	68,998		$	70,857
Finance leases, gross	8,566			7,880
Retail financing, gross	77,564			78,737
Unearned interest supplements from Ford and affiliated companies	(3,589		)	(3,844		)
Consumer finance receivables	73,975			74,893

Non-Consumer
Dealer financing	38,910			28,460
Other financing	1,945			1,850
Non-Consumer finance receivables	40,855			30,310
Total recorded investment	$	114,830		$	105,203

Recorded investment in finance receivables	$	114,830		$	105,203
Allowance for credit losses	(513		)	(1,285		)
Total finance receivables, net	$	114,317		$	103,918

Net finance receivables subject to fair value (a)	$	106,131		$	96,418
Fair value (b)	106,260			97,509

__________


(a)	Net finance receivables subject to fair value exclude finance leases.


(b)	The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy.

Finance leases are comprised of sales-type and direct financing leases. Financing revenue from finance leases for the second quarter of 2019 and 2020 was $97 million and $77 million, respectively, and for the first half of 2019 and 2020 was $189 million and $172 million, respectively, and is included in Retail financing on the consolidated income statements.

At December 31, 2019 and June 30, 2020, accrued interest was $253 million and $218 million, respectively, which we report in Other assets on the consolidated balance sheets.

Included in recorded investment in finance receivables were consumer and non-consumer receivables that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. See Note 6 for additional information.

The value of finance receivables considered held-for-sale at December 31, 2019 was $1.5 billion primarily made up of $1.2 billion of Forso Nordic AB related finance receivables. At June 30, 2020, there were $50 million of certain wholesale finance receivables specifically identified as held-for-sale. These held-for-sale values are reported in Assets held-for-sale on the consolidated balance sheets. See Note 1 for additional information.

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 4. FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Credit Quality

Consumer Portfolio

Credit quality ratings for consumer receivables are based on aging. 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.

The credit quality analysis of consumer receivables at December 31, 2019 was as follows (in millions):



Consumer
31-60 days past due	$	839
61-120 days past due	166
Greater than 120 days past due	35
Total past due	1,040
Current	72,935
Total	$	73,975

The credit quality analysis of consumer receivables at June 30, 2020 was as follows (in millions):



	Amortized Cost Basis by Origination Year
	Prior to 2016		2016		2017		2018		2019		2020		Total
Consumer
31-60 days past due	$	45	$	60	$	98	$	135	$	124	$	31	$	493
61-120 days past due	9		17		33		44		40		10

10-Q	2020-06-30	Filed 2020-07-31
10-Q	2020-03-31	Filed 2020-04-29
10-K	2019-12-31	Filed 2020-02-05
10-Q	2019-09-30	Filed 2019-10-24
10-Q	2019-06-30	Filed 2019-07-25
10-Q	2019-03-31	Filed 2019-04-26
10-K	2018-12-31	Filed 2019-02-21
10-Q	2018-09-30	Filed 2018-10-25
10-Q	2018-06-30	Filed 2018-07-26
10-Q	2018-03-31	Filed 2018-04-26
10-K	2017-12-31	Filed 2018-02-08
10-Q	2017-09-30	Filed 2017-10-26
10-Q	2017-06-30	Filed 2017-07-26
10-Q	2017-03-31	Filed 2017-04-27
10-K	2016-12-31	Filed 2017-02-09
10-Q	2016-09-30	Filed 2016-10-27
10-Q	2016-06-30	Filed 2016-07-28
10-Q	2016-03-31	Filed 2016-04-28
10-K	2015-12-31	Filed 2016-02-11
10-Q	2015-09-30	Filed 2015-10-27
10-Q	2015-06-30	Filed 2015-07-28
10-Q	2015-03-31	Filed 2015-04-28
10-K	2014-12-31	Filed 2015-02-13
10-Q	2014-09-30	Filed 2014-10-31
10-Q	2014-06-30	Filed 2014-07-31
10-Q	2014-03-31	Filed 2014-05-01
10-K	2013-12-31	Filed 2014-02-18
10-Q	2013-09-30	Filed 2013-10-31
10-Q	2013-06-30	Filed 2013-07-31
10-Q	2013-03-31	Filed 2013-05-01
10-K	2012-12-31	Filed 2013-02-19
10-Q	2012-09-30	Filed 2012-11-02
10-Q	2012-06-30	Filed 2012-08-03
10-Q	2012-03-31	Filed 2012-05-04
10-K	2011-12-31	Filed 2012-02-21
10-Q	2011-09-30	Filed 2011-11-04
10-Q	2011-06-30	Filed 2011-08-05
10-Q	2011-03-31	Filed 2011-05-10
10-K	2010-12-31	Filed 2011-02-28
10-Q	2010-09-30	Filed 2010-11-08
10-Q	2010-06-30	Filed 2010-08-06
10-Q	2010-03-31	Filed 2010-05-07
10-K	2009-12-31	Filed 2010-02-25

8-K	2020-07-30	Earnings, Exhibits
8-K	2020-07-02	Other Events, Exhibits
8-K	2020-06-19
8-K	2020-04-28
8-K	2020-04-28
8-K	2020-04-02
8-K	2020-03-19
8-K	2020-02-20
8-K	2020-02-04
8-K	2020-01-09
8-K	2020-01-06
8-K	2019-12-03
8-K	2019-11-25
8-K	2019-11-15
8-K	2019-11-07
8-K	2019-11-01
8-K	2019-10-23
8-K	2019-10-02
8-K	2019-09-26
8-K	2019-08-01
8-K	2019-07-24
8-K	2019-07-03
8-K	2019-06-20
8-K	2019-06-17
8-K	2019-05-03
8-K	2019-04-25
8-K	2019-04-04
8-K	2019-03-18
8-K	2019-03-06
8-K	2019-01-23
8-K	2019-01-16
8-K	2019-01-07
8-K	2019-01-03
8-K	2018-12-03
8-K	2018-11-01
8-K	2018-10-24
8-K	2018-10-02
8-K	2018-09-24
8-K	2018-09-04
8-K	2018-08-09
8-K	2018-08-01
8-K	2018-07-25
8-K	2018-07-03
8-K	2018-06-28
8-K	2018-06-01
8-K	2018-05-15
8-K	2018-05-03
8-K	2018-05-01
8-K	2018-04-25
8-K	2018-04-03
8-K	2018-03-28
8-K	2018-03-23
8-K	2018-03-05
8-K	2018-03-01
8-K	2018-02-22
8-K	2018-02-22
8-K	2018-02-07
8-K	2018-02-01
8-K	2018-01-24
8-K	2018-01-16
8-K	2018-01-03

EX-31.1	fmcc06302020ex311.htm
EX-31.2	fmcc06302020ex312.htm
EX-32.1	fmcc06302020ex321.htm
EX-32.2	fmcc06302020ex322.htm

FMCC 10Q Quarterly Report

Ford Motor Credit Earnings 2020-06-30