Company Quick10K Filing
Ford Motor Credit
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

FMCC 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements.
Note 1. Presentation
Note 2. Accounting Policies
Note 3. Cash, Cash Equivalents, and Marketable Securities
Note 4. Finance Receivables and Allowance for Credit Losses
Note 5. Net Investment in Operating Leases
Note 6. Transfers of Receivables and Variable Interest Entities
Note 7. Derivative Financial Instruments and Hedging Activities
Note 8. Other Assets and Other Liabilities and Deferred Revenue
Note 9. Debt
Note 10. Other Income / (Loss), Net
Note 11. Segment Information
Note 12. Commitments and Contingencies
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II. Other Information
Item 1A. Risk Factors.
Item 5. Other Information.
Item 6. Exhibits.
EX-31.1 fmcc06302020ex311.htm
EX-31.2 fmcc06302020ex312.htm
EX-32.1 fmcc06302020ex321.htm
EX-32.2 fmcc06302020ex322.htm

Ford Motor Credit Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
170136102683402012201420172020
Assets, Equity
3.22.61.91.30.60.02012201420172020
Rev, G Profit, Net Income
10.06.02.0-2.0-6.0-10.02012201420172020
Ops, Inv, Fin

Document
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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
or
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Part II. Other Information
 
 
 
 
 
 
 


i




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.

1


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.

2


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.


3


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.


4


Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS


Table of Contents

Footnote
 
Page
Presentation
Accounting Policies
Cash, Cash Equivalents, and Marketable Securities
Finance Receivables and Allowance for Credit Losses
Net Investment in Operating Leases
Transfers of Receivables and Variable Interest Entities
Derivative Financial Instruments and Hedging Activities
Other Assets and Other Liabilities and Deferred Revenue
Debt
Other Income / (Loss), Net
Segment Information
Commitments and Contingencies




5


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.


6


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.


7


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.


8


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.

9


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 Mention61 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