Segment Information

9 Months Ended

Sep. 30, 2012

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 on our balance sheet, and excludes unearned interest supplements related to finance receivables.

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

							Unallocated/Eliminations
	North America Segment			International Segment			Unallocated Risk Management			Effect of Unearned  Interest Supplements		Total Unallocated/Eliminations			Total
Third Quarter 2012
Total revenue (a)	$	1,636		$	437		$	(4	)	$	—	$	(4	)	$	2,069
Income/(Loss) before income taxes	334			63			(4		)	—		(4		)	393
Other disclosures
Depreciation on vehicles subject to operating leases	550			90			—			—		—			640
Interest expense	551			190			—			—		—			741
Provision for credit losses	41			1			—			—		—			42
Third Quarter 2011
Total revenue (a)	$	1,678		$	499		$	29		$	—	$	29		$	2,206
Income/(Loss) before income taxes	465			84			32			—		32			581
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		)

__________

(a) Represents Total financing revenue, Insurance premiums earned, and Other income, net.

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 13. SEGMENT INFORMATION (Continued)

							Unallocated/Eliminations
	North America Segment			International Segment			Unallocated Risk Management			Effect of Unearned  Interest Supplements			Total Unallocated/Eliminations			Total
First Nine Months 2012
Total revenue (a)(b)	$	4,885		$	1,370		$	(99	)	$	—		$	(99	)	$	6,156
Income/(Loss) before income taxes (b)	1,173			202			(92		)	—			(92		)	1,283
Other disclosures
Depreciation on vehicles subject to operating leases	1,547			261			—			—			—			1,808
Interest expense	1,704			622			(8		)	—			(8		)	2,318
Provision for credit losses	(33		)	—			—			—			—			(33		)
Net finance receivables and net investment in operating leases (b)	70,335			16,688			—			(1,557		)	(1,557		)	85,466
Total assets (b)	81,521			21,363			—			(1,557		)	(1,557		)	101,327
First Nine Months 2011
Total revenue (a)	$	5,076		$	1,591		$	(81	)	$	—		$	(81	)	$	6,586
Income/(Loss) before income taxes	1,723			251			(76		)	—			(76		)	1,898
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	63,011			18,858			—			(1,749		)	(1,749		)	80,120
Total assets	75,308			23,924			—			(1,749		)	(1,749		)	97,483

__________

(a) Represents Total financing revenue, Insurance premiums earned, and Other income, net.

(b) In the second quarter of 2012, we recorded a $37 million unfavorable cumulative pre-tax accounting adjustment to correct the amortization of interest supplements for certain International retail finance contracts, which decreased Interest supplements and other support costs earned from affiliated companies and decreased Finance receivables, net. The impact of the accounting adjustment on our previously issued annual and interim financial statements was not material.