DEBT

We have a commercial paper program with qualified institutional investors. We also obtain other short-term funding from the issuance of demand notes to retail investors through our floating rate demand notes program. We have certain asset-backed securitization programs that issue short-term debt securities that are sold to institutional investors. Bank borrowings by several of our international affiliates in the ordinary course of business are an additional source of short-term funding.

We obtain long-term debt funding through the issuance of a variety of unsecured and asset-backed debt securities in the U.S. and international capital markets. We also sponsor a number of asset-backed securitization programs that issue long-term debt securities that are sold to institutional investors in the U.S. and international capital markets. Obligations issued in securitizations are payable only out of collections on the underlying securitized assets and related enhancements.

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 9. DEBT (Continued)

Interest rates and debt outstanding were as follows (in millions):



	Interest Rates
	Average Contractual				Average Effective				Debt
	2012		2011		2012		2011		September 30, 2012			December 31, 2011
Short-term debt
Asset-backed commercial paper	0.4	%	0.3	%					$	5,824		$	6,835
Floating rate demand notes	1.1	%	1.3	%					4,962			4,713
Other asset-backed short-term debt	1.3	%	1.5	%					766			2,741
Unsecured commercial paper	1.6	%	5.4	%					1,176			156
Other short-term debt	6.0	%	7.0	%					1,347			1,579
Total short-term debt	1.3	%	1.4	%	1.3	%	1.4	%	14,075			16,024
Long-term debt
Senior indebtedness
Notes payable within one year									3,078			6,127
Notes payable after one year									32,381			24,892
Asset-backed debt
Notes payable within one year									14,815			16,526
Notes payable after one year									19,636			20,558
Unamortized discount									(138		)	(149		)
Fair value adjustments									867			681
Total long-term debt	3.8	%	4.2	%	4.2	%	4.6	%	70,639			68,635
Total debt	3.4	%	3.7	%	3.7	%	4.0	%	$	84,714		$	84,659

Fair value of debt									$	88,187		$	86,785

Interest rates are presented for the third quarter of 2012 and fourth quarter of 2011. Average contractual rates reflect the stated contractual interest rate. Average effective rates reflect the average contractual interest rate plus amortization of discounts, premiums, and issuance fees. Fair value adjustments relate to designated fair value hedges of unsecured debt.

The fair value of debt includes $7.5 billion and $6.4 billion of short-term debt at September 30, 2012 and December 31, 2011, respectively, carried at cost which approximates fair value. All debt is categorized within Level 2 of the fair value hierarchy. See Note 12 for additional information.

Debt with affiliated companies included in the above table was as follows (in millions):



	September 30, 2012		December 31, 2011
Other short-term debt	$	46	$	48
Notes payable within one year	78		466
Notes payable after one year	236		91
Total debt with affiliated companies	$	360	$	605

Debt Repurchases and Calls. From time to time and based on market conditions, we may repurchase or call some of our outstanding unsecured and asset-backed debt. If we have excess liquidity and it is an economically favorable use of our available cash, we may repurchase or call debt at a price lower or higher than its carrying value, resulting in a gain or loss on extinguishment.

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 9. DEBT (Continued)

In the third quarter and first nine months of 2012, through private market transactions, we called an aggregate principal amount of $267 million (of which none were maturing in 2012) and repurchased and called $482 million, respectively, of our unsecured and asset-backed debt. As a result, in the third quarter and first nine months of 2012, we recorded a pre-tax loss of $3 million and $12 million, respectively, net of unamortized premiums, discounts, and fees in Other income, net.

In the third quarter and first nine months of 2011, through private market transactions, we repurchased and called an aggregate principal amount of $804 million (including $1 million maturing in 2011) and $2.3 billion, respectively, of our unsecured debt. As a result, in the third quarter and first nine months of 2011, we recorded a pre-tax loss of $31 million and $65 million, respectively, net of unamortized premiums, discounts, and fees in Other income, net. There were no repurchase or call transactions for asset-backed debt during the third quarter and first nine months of 2011.

Debt Maturities. Short-term and long-term debt matures at various dates through 2048. At September 30, 2012, maturities were as follows (in millions):



	2012 (a)		2013 (b)			2014			2015			2016			Thereafter (c)			Total
Unsecured debt	$	6,539	$	6,649		$	3,694		$	8,878		$	4,807		$	12,377		$	42,944
Asset-backed debt	9,111		14,731			11,112			3,723			869			1,495			41,041
Unamortized (discount)/premium (d)	—		(6		)	(86		)	(18		)	(13		)	(15		)	(138		)
Fair value adjustments (d)	—		43			29			93			46			656			867
Total debt	$	15,650	$	21,417		$	14,749		$	12,676		$	5,709		$	14,513		$	84,714

__________


(a)	Includes $10,970 million for short-term and $4,680 million for long-term debt.


(b)	Includes $3,105 million for short-term and $18,312 million for long-term debt.


(c)	Includes $10,449 million of unsecured debt maturing between 2017 and 2021 with the remaining balance maturing after 2031.


(d)	Presented based on maturity date of related debt.