19 unchanged sentences
These interest rate scenarios are purely hypothetical and do not represent Ford Credit’s view of future interest rate movements.
−Removed: Under these interest rate scenarios, Ford Credit expects more debt and liabilities than assets to re-price in the next twelve months.
−Removed: Other things being equal, this means that during a period of rising interest rates, the interest received on Ford Credit’s assets will increase less than the interest paid on Ford Credit’s debt, thereby initially decreasing Ford Credit’s pre-tax cash flow.
−Removed: During a period of falling interest rates, Ford Credit would expect its pre-tax cash flow to initially increase.
−Removed: Ford Credit’s pre-tax cash flow sensitivity to interest rate movement is highlighted in the table below.
−Removed: Pre-tax cash flow sensitivity at December 31 was as follows (in millions):
+Added: Under these interest rate scenarios, Ford Credit expects more assets than debt and liabilities to re-price in the next twelve months.
+Added: Other things being equal, this means that during a period of rising interest rates, the interest received on Ford Credit’s assets will increase more than the interest paid on Ford Credit’s debt, thereby initially increasing Ford Credit’s pre-tax cash flow.
+Added: During a period of falling interest rates, Ford Credit would expect its pre-tax cash flow to initially decrease.
+Added: Ford Credit’s pre-tax cash flow sensitivity to interest rate movement at December 31 was as follows (in millions):
Pre-Tax Cash Flow Sensitivity
17 unchanged sentences
Derivative Fair Values.
−Removed: The net fair value of Ford Credit’s derivative financial instruments was an asset of $553 million and $2.1 billion at December 31, 2021 and 2020, respectively.
−Removed: TRANSITION FROM LIBOR TO ALTERNATIVE REFERENCE RATES
−Removed: We and our affiliates, including Ford Credit, have been working to transition from the London Interbank Offered Rate (“LIBOR”) to alternative reference rates.
−Removed: We have developed a total company inventory of affected financial instruments and contracts, have been working to transition legacy contracts linked to LIBOR to alternative reference rates, and are no longer utilizing LIBOR for new contracts.
+Added: The net fair value of Ford Credit’s derivative financial instruments at December 31, 2022 was a liability of $2.0 billion, compared to an asset of $553 million at December 31, 2021.
+Added: The decline in net fair value was driven by higher U.S.
+Added: interest rates and a stronger U.S.
COUNTERPARTY RISK
10 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.