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Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2012
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]  
Allowance for Credit Losses on Financing and Loans and Leases Receivable [Table Text Block]
Following is an analysis of the allowance for credit losses related to finance receivables and net investment in operating leases for the periods ended September 30 (in millions):
 
Third Quarter 2012
 
Finance Receivables
 
Net Investment in Operating Leases
 
Total Allowance
 
Consumer
 
Non-Consumer
 
Total
 
 
Allowance for credit losses
 
 
 
 
 
 
 
 
 
Beginning balance
$
361

 
$
19

 
$
380

 
$
26

 
$
406

Charge-offs
(77
)
 
(1
)
 
(78
)
 
(11
)
 
(89
)
Recoveries
40

 
3

 
43

 
11

 
54

Provision for credit losses
45

 
(2
)
 
43

 
(1
)
 
42

Other (a)
3

 
(1
)
 
2

 
1

 
3

Ending balance
$
372

 
$
18

 
$
390

 
$
26

 
$
416


 
First Nine Months 2012
 
Finance Receivables
 
Net Investment in Operating Leases
 
Total Allowance
 
Consumer
 
Non-Consumer
 
Total
 
 
Allowance for credit losses
 
 
 
 
 
 
 
 
 
Beginning balance
$
451

 
$
43

 
$
494

 
$
40

 
$
534

Charge-offs
(226
)
 
(8
)
 
(234
)
 
(35
)
 
(269
)
Recoveries
133

 
10

 
143

 
39

 
182

Provision for credit losses
12

 
(27
)
 
(15
)
 
(18
)
 
(33
)
Other (a)
2

 
—

 
2

 
—

 
2

Ending balance
$
372

 
$
18

 
$
390

 
$
26

 
$
416

 
 
 
 
 
 
 
 
 
 
Analysis of ending balance of allowance for credit losses
 
 
 
 
 
 
 
 
 
Collective impairment allowance
$
354

 
$
16

 
$
370

 
$
26

 
$
396

Specific impairment allowance
18

 
2

 
20

 
—

 
20

Ending balance
$
372

 
$
18

 
$
390

 
$
26

 
$
416

 
 
 
 
 
 
 
 
 
 
Analysis of ending balance of finance receivables and net investment in operating leases
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
$
46,259

 
$
25,176

 
$
71,435

 
$
13,975

 
 
Specifically evaluated for impairment
411

 
61

 
472

 
—

 
 
Recorded investment (b)
$
46,670

 
$
25,237

 
$
71,907

 
$
13,975

 
 
 
 
 
 
 
 
 
 
 
 
Ending balance, net of allowance for credit losses
$
46,298

 
$
25,219

 
$
71,517

 
$
13,949

 
 
__________
(a)
Represents amounts related to translation adjustments.
(b)
Represents finance receivables and net investment in operating leases before allowance for credit losses.


















FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS

NOTE 4. ALLOWANCE FOR CREDIT LOSSES (Continued)
 
Third Quarter 2011
 
Finance Receivables
 
Net Investment in Operating Leases
 
Total Allowance
 
Consumer
 
Non-Consumer
 
Total
 
 
Allowance for credit losses
 
 
 
 
 
 
 
 
 
Beginning balance
$
563

 
$
46

 
$
609

 
$
64

 
$
673

Charge-offs
(96
)
 
(2
)
 
(98
)
 
(20
)
 
(118
)
Recoveries
51

 
2

 
53

 
20

 
73

Provision for credit losses
(3
)
 
(4
)
 
(7
)
 
(13
)
 
(20
)
Other (a)
(8
)
 
(2
)
 
(10
)
 
—

 
(10
)
Ending balance
$
507

 
$
40

 
$
547

 
$
51

 
$
598


 
First Nine Months 2011
 
Finance Receivables
 
Net Investment in Operating Leases
 
Total Allowance
 
Consumer
 
Non-Consumer
 
Total
 
 
Allowance for credit losses
 
 
 
 
 
 
 
 
 
Beginning balance
$
701

 
$
66

 
$
767

 
$
87

 
$
854

Charge-offs
(300
)
 
(8
)
 
(308
)
 
(75
)
 
(383
)
Recoveries
160

 
4

 
164

 
70

 
234

Provision for credit losses
(55
)
 
(22
)
 
(77
)
 
(32
)
 
(109
)
Other (a)
1

 
—

 
1

 
1

 
2

Ending balance
$
507

 
$
40

 
$
547

 
$
51

 
$
598

 
 
 
 
 
 
 
 
 
 
Analysis of ending balance of allowance for credit losses
 
 
 
 
 
 
 
 
 
Collective impairment allowance
$
494

 
$
31

 
$
525

 
$
51

 
$
576

Specific impairment allowance
13

 
9

 
22

 
—

 
22

Ending balance
$
507

 
$
40

 
$
547

 
$
51

 
$
598

 
 
 
 
 
 
 
 
 
 
Analysis of ending balance of finance receivables and net investment in operating leases
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
$
45,747

 
$
24,096

 
$
69,843

 
$
10,455

 
 
Specifically evaluated for impairment
352

 
68

 
420

 
—

 
 
Recorded investment (b)
$
46,099

 
$
24,164

 
$
70,263

 
$
10,455

 
 
 
 
 
 
 
 
 
 
 
 
Ending balance, net of allowance for credit losses
$
45,592

 
$
24,124

 
$
69,716

 
$
10,404

 
 
__________
(a)
Represents amounts related to translation adjustments.
(b)
Represents finance receivables and net investment in operating leases before allowance for credit losses.