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Segment Information
9 Months Ended
Sep. 30, 2011
Segment Reporting [Abstract] 
SEGMENT INFORMATION
SEGMENT INFORMATION

We conduct our financing operations directly and indirectly through our subsidiaries and affiliates. We offer substantially similar products and services throughout many different regions, subject to local legal restrictions and market conditions. We divide our business segments based on geographic regions: the North America Segment (includes operations in the United States and Canada) and the International Segment (includes operations in all other countries).

We measure the performance of our segments primarily on an income before income taxes basis, after excluding the impact to earnings from gains and losses related to market valuation adjustments to derivatives primarily related to movements in interest rates. These adjustments are included in Unallocated Risk Management and are excluded in assessing our North America and International segment performance, because our risk management activities are carried out on a centralized basis at the corporate level, with only certain elements allocated to these segments. We also adjust segment performance to re-allocate interest expense between the North America and International segments reflecting debt and equity levels proportionate to their product risk. The North America and International segments are presented on a managed basis. Managed basis includes Finance receivables, net and Net investment in operating leases included in our consolidated balance sheet, excluding unearned interest supplements related to finance receivables.

Key operating data for our business segments for the periods ended September 30 were as follows (in millions):

 
 
 
 
 
Unallocated/Eliminations
 
 
 
North
America
Segment
 
International
Segment
 
Unallocated
Risk Management
 
Effect of
Sales of
Receivables
 
Effect of
Unearned
 Interest
Supplements
 
Total
 
Total
Third Quarter of 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue (a)
$
1,678

 
$
499

 
$
29

 
$
—

 
$
—

 
$
29

 
$
2,206

Income
 
 
 
 
 
 
 
 
 
 
 

 
 

Income/(Loss) before income taxes
465

 
84

 
32

 
—

 
—

 
32

 
581

Provision for income taxes
192

 
28

 
11

 
—

 
—

 
11

 
231

Net income/(loss)
273

 
56

 
21

 
—

 
—

 
21

 
350

Other disclosures
 

 
 

 
 

 
 

 
 

 
 

 
 

Depreciation on vehicles subject to operating leases
381

 
83

 
—

 
—

 
—

 
—

 
464

Interest expense
655

 
236

 
(3
)
 
—

 
—

 
(3
)
 
888

Provision for credit losses
(12
)
 
(8
)
 
—

 
—

 
—

 
—

 
(20
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Quarter of 2010
 

 
 

 
 

 
 

 
 

 
 

 
 

Revenue (a)
$
1,937

 
$
506

 
$
(17
)
 
$
—

 
$
—

 
$
(17
)
 
$
2,426

Income
 
 
 
 
 
 
 
 
 
 
 

 
 

Income/(Loss) before income taxes
691

 
92

 
(17
)
 
—

 
—

 
(17
)
 
766

Provision for income taxes
243

 
33

 
(7
)
 
—

 
—

 
(7
)
 
269

Net income/(loss)
448

 
59

 
(10
)
 
—

 
—

 
(10
)
 
497

Other disclosures
 

 
 

 
 

 
 

 
 

 
 

 
 

Depreciation on vehicles subject to operating leases
363

 
41

 
—

 
—

 
—

 
—

 
404

Interest expense
748

 
277

 
—

 
—

 
—

 
—

 
1,025

Provision for credit losses
(56
)
 
3

 
—

 
—

 
—

 
—

 
(53
)

(a)
Total Revenue represents Total financing revenue, Insurance premiums earned, net and Other income, net.
 
FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS (Continued)

NOTE 14. SEGMENT INFORMATION (Continued)

 
 
 
 
 
Unallocated/Eliminations
 
 
 
North
America
Segment
 
International
Segment
 
Unallocated
Risk Management
 
Effect of
Sales of
Receivables
 
Effect of
Unearned
 Interest
Supplements
 
Total
 
Total
First Nine Months 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue (a)
$
5,076

 
$
1,591

 
$
(81
)
 
$
—

 
$
—

 
$
(81
)
 
$
6,586

Income
 
 
 
 
 
 
 
 
 
 
 

 
 

Income/(Loss) before income taxes
1,723

 
251

 
(76
)
 
—

 
—

 
(76
)
 
1,898

Provision for income taxes
653

 
88

 
(27
)
 
—

 
—

 
(27
)
 
714

Net income/(loss)
1,070

 
163

 
(49
)
 
—

 
—

 
(49
)
 
1,184

Other disclosures
 

 
 

 
 

 
 

 
 

 
 

 
 

Depreciation on vehicles subject to operating leases
1,042

 
194

 
—

 
—

 
—

 
—

 
1,236

Interest expense
1,839

 
842

 
(5
)
 
—

 
—

 
(5
)
 
2,676

Provision for credit losses
(103
)
 
(6
)
 
—

 
—

 
—

 
—

 
(109
)
Net finance receivables and net investment in operating leases (b)
63,011

 
18,858

 
—

 
—

 
(1,749
)
 
(1,749
)
 
80,120

Total assets (b)
75,308

 
23,924

 
—

 
—

 
(1,749
)
 
(1,749
)
 
97,483

 
 
 
 
 
 
 
 
 
 
 
 
 
 
First Nine Months 2010
 

 
 

 
 

 
 

 
 

 
 

 
 

Revenue (a)
$
6,306

 
$
1,590

 
$
(7
)
 
$
(11
)
 
$
—

 
$
(18
)
 
$
7,878

Income
 
 
 
 
 
 
 
 
—

 
 

 
 

Income/(Loss) before income taxes
2,224

 
265

 
(7
)
 
—

 
—

 
(7
)
 
2,482

Provision for income taxes
811

 
93

 
(3
)
 
—

 
—

 
(3
)
 
901

Net income/(loss)
1,413

 
172

 
(4
)
 
—

 
—

 
(4
)
 
1,581

Other disclosures
 

 
 

 
 

 
 

 
 

 
 

 
 

Depreciation on vehicles subject to operating leases
1,405

 
115

 
—

 
—

 
—

 
—

 
1,520

Interest expense
2,346

 
893

 
—

 
(1
)
 
—

 
(1
)
 
3,238

Provision for credit losses
(268
)
 
13

 
—

 
—

 
—

 
—

 
(255
)
Net finance receivables and net investment in operating leases (c)
63,994

 
20,566

 
—

 
—

 
(1,997
)
 
(1,997
)
 
82,563

Total assets (c)
83,839

 
26,777

 
—

 
—

 
(1,997
)
 
(1,997
)
 
108,619


(a)
Total Revenue represents Total financing revenue, Insurance premiums earned, net and Other income, net.
(b)
Reflects balance at September 30, 2011.
(c)
Reflects balance at September 30, 2010.