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1.0.0.3 false Allowance for Credit Losses - Financial Services Sector false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USD_Per_Share Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 Allowance for Credit Losses - Financial Services Sector [Abstract] 0 f_AllowanceForCreditLossesFinancialServicesSectorAbstract f false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 Allowance For Credit Losses Disclosure Text Block 1 f_AllowanceForCreditLossesDisclosureTextBlock f false na duration string This item represents the entire disclosure for the allowance for credit losses, which represents the reserve to cover... false false false false false false false false false 1 false false 0 0 <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">NOTE 9.  ALLOWANCE FOR CREDIT LOSSES — FINANCIAL SERVICES SECTOR</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left">The allowance for credit losses is our estimate of the probable credit losses inherent in finance receivables and operating leases at the date of the balance sheet.  Consistent with our normal practices and policies, we assess the adequacy of our allowance for credit losses quarterly and regularly evaluate the assumptions and models used in establishing the allowance.  Because credit losses can vary substantially over time, estimating credit losses requires a number of assumptions about matters that are uncertain.</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left">The allowance for credit losses is estimated using a combination of models and management judgment and is based on factors such as historical trends in credit losses and recoveries (including key metrics such as delinquencies, repossessions, and bankruptcies), the composition of our present portfolio (including vehicle brand, term, risk evaluation, and new/used vehicles), trends in historical and projected used vehicle values and economic conditions.  Additions to the allowance for credit losses are made by recording charges to Financial Services provision for credit and insurance losses on our consolidated statement of operations.  Finance receivables, investments in direct financing leases, and investments in operating leases 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 borrower or lessee, the value of the collateral, recourse to guarantors and other factors.  Recoveries on finance receivables and investments in leases previously charged off as uncollectible are credited to the allowance for credit losses.</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Changes in Allowance for Credit Losses</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left">Changes in the allowance for credit losses for finance receivables, investment in direct financing leases, and investment in operating leases were as follows (in millions):</div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div> <div align="left"> <table cellpadding="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman" cellspacing="0"> <tr> <td valign="bottom" style="PADDING-BOTTOM: 2px">  </td> <td valign="bottom" style="PADDING-BOTTOM: 2px"> </td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid" colspan="2"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2009</div></div></td> <td valign="bottom" nowrap="nowrap" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px"> </td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid" colspan="2"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2008</div></div></td> <td valign="bottom" nowrap="nowrap" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px"> </td> <td valign="bottom" style="BORDER-BOTTOM: black 2px solid" colspan="2"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2007</div></div></td> <td valign="bottom" nowrap="nowrap" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr> <tr bgcolor="#cceeff"> <td valign="bottom" width="64%" align="left"> <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left">Beginning balance</div></td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">1,681</td> <td valign="bottom" width="1%" nowrap="nowrap" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">1,102</td> <td valign="bottom" width="1%" nowrap="nowrap" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">1,121</td> <td valign="bottom" width="1%" nowrap="nowrap" style="TEXT-ALIGN: left"> </td></tr> <tr bgcolor="white"> <td valign="bottom" width="64%" align="left"> <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left">Provision for credit losses</div></td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">977</td> <td valign="bottom" width="1%" nowrap="nowrap" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">1,773</td> <td valign="bottom" width="1%" nowrap="nowrap" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">592</td> <td valign="bottom" width="1%" nowrap="nowrap" style="TEXT-ALIGN: left"> </td></tr> <tr bgcolor="#cceeff"> <td valign="bottom" width="64%" align="left"> <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left">Total charge-offs and recoveries</div></td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> </td> <td valign="bottom" width="1%" nowrap="nowrap" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> </td> <td valign="bottom" width="1%" nowrap="nowrap" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> </td> <td valign="bottom" width="1%" nowrap="nowrap" style="TEXT-ALIGN: left"> </td></tr> <tr bgcolor="white"> <td valign="bottom" width="64%" align="left"> <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left">Charge-offs</div></td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">(1,526</td> <td valign="bottom" width="1%" nowrap="nowrap" style="TEXT-ALIGN: left">)</td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">(1,552</td> <td valign="bottom" width="1%" nowrap="nowrap" style="TEXT-ALIGN: left">)</td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">(1,105</td> <td valign="bottom" width="1%" nowrap="nowrap" style="TEXT-ALIGN: left">)</td></tr> <tr bgcolor="#cceeff"> <td valign="bottom" width="64%" style="PADDING-BOTTOM: 2px" align="left"> <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left">Recoveries</div></td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">423</td> <td valign="bottom" width="1%" nowrap="nowrap" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">414</td> <td valign="bottom" width="1%" nowrap="nowrap" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">470</td> <td valign="bottom" width="1%" nowrap="nowrap" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr> <tr bgcolor="white"> <td valign="bottom" width="64%" align="left"> <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left">Net charge-offs</div></td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">(1,103</td> <td valign="bottom" width="1%" nowrap="nowrap" style="TEXT-ALIGN: left">)</td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">(1,138</td> <td valign="bottom" width="1%" nowrap="nowrap" style="TEXT-ALIGN: left">)</td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">(635</td> <td valign="bottom" width="1%" nowrap="nowrap" style="TEXT-ALIGN: left">)</td></tr> <tr bgcolor="#cceeff"> <td valign="bottom" width="64%" style="PADDING-BOTTOM: 2px" align="left"> <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left">Other changes, principally amounts related to finance receivables sold and translation adjustments</div></td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">10</td> <td valign="bottom" width="1%" nowrap="nowrap" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">(56</td> <td valign="bottom" width="1%" nowrap="nowrap" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left">)</td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">24</td> <td valign="bottom" width="1%" nowrap="nowrap" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td></tr> <tr bgcolor="white"> <td valign="bottom" width="64%" style="PADDING-BOTTOM: 4px" align="left"> <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left">Ending balance</div></td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">1,565</td> <td valign="bottom" width="1%" nowrap="nowrap" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">1,681</td> <td valign="bottom" width="1%" nowrap="nowrap" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">1,102</td> <td valign="bottom" width="1%" nowrap="nowrap" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td></tr></table></div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left">The decrease in allowance for credit losses primarily reflected the decline in receivables and the related charge-offs.  At December 31, 2009, Ford Credit's allowance for credit losses included about $215 million that was based on management's judgment regarding higher retail installment and lease repossession assumptions and higher wholesale and dealer loan default assumptions compared with historical trends used in Ford Credit's models.  At December 31, 2008, Ford Credit's allowance for credit losses included about $210 million that was based on management's judgment regarding higher severity assumptions.  At December 31, 2007, Ford Credit's allowance for credit losses did not include any adjustments for management judgment.</div> NOTE 9.  ALLOWANCE FOR CREDIT LOSSES — FINANCIAL SERVICES SECTOR The allowance for credit losses is our estimate of the probable credit false false This item represents the entire disclosure for the allowance for credit losses, which represents the reserve to cover probable credit losses related to specifically identified loans and leases, as well as probable credit losses inherent in the remainder of the loan portfolio. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true