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Notes to the Financial Statements<br />
NOTE 9. <strong>ALL</strong>OWANCE <strong>FOR</strong> CREDIT LOSSES (Continued)<br />
Following is an analysis of the allowance for credit losses related to finance receivables and investment in operating<br />
leases for the years ended December 31 (in millions):<br />
2011<br />
Allowance for credit losses<br />
Beginning balance<br />
Charge-offs<br />
Recoveries<br />
Provision for credit losses<br />
Other (a)<br />
Ending balance<br />
Finance Receivables<br />
Consumer Non-consumer Total<br />
$ 707<br />
(405)<br />
207<br />
(51)<br />
(1)<br />
$ 70<br />
(11)<br />
7<br />
(22)<br />
—<br />
$ 777<br />
(416)<br />
214<br />
(73)<br />
(1)<br />
$ 457 $ 44 $ 501<br />
Net Investment<br />
in<br />
Operating<br />
Leases<br />
$ 87<br />
(89)<br />
86<br />
(44)<br />
—<br />
$ 40<br />
Total<br />
Allowance<br />
$ 864<br />
(505)<br />
300<br />
(117)<br />
(1)<br />
$ 541<br />
Analysis of ending balance of allowance for<br />
credit losses<br />
Collective impairment allowance<br />
Specific impairment allowance<br />
Ending balance<br />
$ 441<br />
16<br />
$ 457<br />
$ 36<br />
8<br />
$ 44<br />
$ 477<br />
24<br />
$ 501<br />
$ 40<br />
—<br />
$ 40<br />
$ 517<br />
24<br />
$ 541<br />
Analysis of ending balance of finance receivables<br />
and net investment in operating leases<br />
Collectively evaluated for impairment<br />
Specifically evaluated for impairment<br />
Recorded investment (b)<br />
$ 47,364<br />
387<br />
$ 47,751<br />
$ 26,016<br />
64<br />
$ 26,080<br />
$ 73,380<br />
451<br />
$ 73,831<br />
$ 11,522<br />
—<br />
$ 11,522<br />
Ending balance, net of allowance for credit losses $ 47,294 $ 26,036 $ 73,330<br />
__________<br />
(a) Primarily represents amounts related to translation adjustments.<br />
(b) Finance receivables and net investment in operating leases before allowance for credit losses.<br />
$ 11,482<br />
2010<br />
Allowance for credit losses<br />
Beginning balance<br />
Charge-offs<br />
Recoveries<br />
Provision for credit losses<br />
Other (a)<br />
Ending balance<br />
Finance Receivables<br />
Consumer Non-consumer Total<br />
$ 1,271<br />
(606)<br />
247<br />
(195)<br />
(10)<br />
$ 80<br />
(41)<br />
34<br />
(2)<br />
(1)<br />
$ 1,351<br />
(647)<br />
281<br />
(197)<br />
(11)<br />
$ 707 $ 70 $ 777<br />
Net Investment<br />
in<br />
Operating<br />
Leases<br />
$ 214<br />
(200)<br />
138<br />
(65)<br />
—<br />
$ 87<br />
Total<br />
Allowance<br />
$ 1,565<br />
(847)<br />
419<br />
(262)<br />
(11)<br />
$ 864<br />
Analysis of ending balance of allowance for<br />
credit losses<br />
Collective impairment allowance<br />
Specific impairment allowance<br />
Ending balance<br />
$ 707<br />
—<br />
$ 707<br />
$ 58<br />
12<br />
$ 70<br />
$ 765<br />
12<br />
$ 777<br />
$ 87<br />
—<br />
$ 87<br />
$ 852<br />
12<br />
$ 864<br />
Analysis of ending balance of finance receivables<br />
and net investment in operating leases<br />
Collectively evaluated for impairment<br />
Specifically evaluated for impairment<br />
Recorded investment (b)<br />
$ 49,640<br />
—<br />
$ 49,640<br />
$ 24,300<br />
102<br />
$ 24,402<br />
$ 73,940<br />
102<br />
$ 74,042<br />
$ 10,480<br />
—<br />
$ 10,480<br />
Ending balance, net of allowance for credit losses $ 48,933 $ 24,332 $ 73,265<br />
__________<br />
(a) Primarily represents amounts related to translation adjustments.<br />
(b) Finance receivables and net investment in operating leases before allowance for credit losses.<br />
$ 10,393<br />
Ford Motor Company | 2011 Annual Report 119
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