Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following table categorizes the fair values of items measured at fair value on a recurring basis on our balance sheet (in millions):

	September 30, 2012								December 31, 2011
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Cash equivalents -- financial instruments
U.S. government	$	1	$	—	$	—	$	1	$	1	$	—	$	—	$	1
U.S. government-sponsored enterprises	—		167		—		167		—		75		—		75
Non-U.S. government agencies (a)	—		5		—		5		—		150		—		150
Corporate debt	—		18		—		18		—		—		—		—
Non-U.S. government	—		16		—		16		—		15		—		15
Total cash equivalents-financial instruments(b)	1		206		—		207		1		240		—		241
Marketable securities
U.S. government	2,071		—		—		2,071		619		—		—		619
U.S. government-sponsored enterprises	—		449		—		449		—		713		—		713
Non-U.S. government agencies (a)	—		175		—		175		—		778		—		778
Corporate debt	—		1,206		—		1,206		—		1,186		—		1,186
Mortgage-backed and other asset-backed	—		73		—		73		—		88		—		88
Non-U.S. government	—		121		—		121		—		444		—		444
Other liquid investments (c)	—		16		—		16		—		7		—		7
Total marketable securities	2,071		2,040		—		4,111		619		3,216		—		3,835
Derivative financial instruments
Interest rate contracts	—		1,453		—		1,453		—		1,163		—		1,163
Foreign currency exchange contracts	—		22		—		22		—		53		—		53
Cross-currency interest rate swap contracts	—		—		—		—		—		12		—		12
Other (d)	—		—		—		—		—		—		137		137
Total derivative financial instruments	—		1,475		—		1,475		—		1,228		137		1,365
Total assets at fair value	$	2,072	$	3,721	$	—	$	5,793	$	620	$	4,684	$	137	$	5,441
Liabilities
Derivative financial instruments
Interest rate contracts	$	—	$	284	$	—	$	284	$	—	$	237	$	—	$	237
Foreign currency exchange contracts	—		33		—		33		—		37		—		37
Cross-currency interest rate swap contracts	—		83		—		83		—		12		—		12
Total derivative financial instruments	—		400		—		400		—		286		—		286
Total liabilities at fair value	$	—	$	400	$	—	$	400	$	—	$	286	$	—	$	286

__________

(a) Includes notes issued by non-U.S. government agencies, as well as notes issued by supranational institutions.

(b) Excludes time deposits, certificates of deposit, and money market accounts reported at par value on our balance sheet totaling $4.8 billion and $5.7 billion at September 30, 2012 and December 31, 2011, respectively. In addition to these cash equivalents, we also had cash on hand totaling $2.1 billion and $2.8 billion at September 30, 2012 and December 31, 2011, respectively.

(c) Includes certificates of deposit and time deposits subject to changes in value.

(d) Represents derivative features included in the FUEL notes.

Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Text Block]

The following tables summarize the changes recorded through income in Level 3 items measured at fair value on a recurring basis and reported on our balance sheet for the periods ended September 30 (in millions):

	Third Quarter
	2012						2011
	Marketable Securities		Derivative Financial Instruments, Net (a)		Total Level 3 Fair Value		Marketable Securities			Derivative Financial Instruments, Net (a)		Total Level 3 Fair Value
Beginning balance	$	—	$	—	$	—	$	5		$	80	$	85
Realized/unrealized gains/(losses)
Other income, net	—		—		—		—			397		397
Other comprehensive income/(loss) (b)	—		—		—		—			2		2
Interest income/(expense) (c)	—		—		—		—			40		40
Total realized/unrealized gains/(losses)	—		—		—		—			439		439
Purchases, issues, sales, and settlements
Purchases	—		—		—		—			—		—
Issues	—		—		—		—			—		—
Sales	—		—		—		—			—		—
Settlements	—		—		—		—			6		6
Total purchases, issues, sales, and settlements	—		—		—		—			6		6
Transfers into Level 3	—		—		—		—			—		—
Transfers out of Level 3 (d)	—		—		—		(5		)	—		(5		)
Ending balance	$	—	$	—	$	—	$	—		$	525	$	525
Unrealized gains/(losses) on instruments still held	$	—	$	—	$	—	$	—		$	436	$	436

__________

(a) See Note 7 for detail on financial statement presentation by hedge designation.

(b) Represents foreign currency translation on derivative asset and liability balances held by non-U.S. dollar foreign affiliates.

(c) Recorded in Interest expense.

(d) Represents transfers out due to the increase in availability of observable data.

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 12. FAIR VALUE MEASUREMENTS (Continued)

	First Nine Months
	2012								2011
	Marketable Securities		Derivative Financial Instruments, Net (a)			Total Level 3 Fair Value			Marketable Securities			Derivative Financial Instruments, Net (a)			Total Level 3 Fair Value
Beginning balance	$	—	$	137		$	137		$	1		$	(109	)	$	(108	)
Realized/unrealized gains/(losses)
Other income, net	—		(81		)	(81		)	—			385			385
Other comprehensive income/(loss) (b)	—		—			—			—			(1		)	(1		)
Interest income/(expense) (c)	—		—			—			—			65			65
Total realized/unrealized gains/(losses)	—		(81		)	(81		)	—			449			449
Purchases, issues, sales, and settlements
Purchases	—		—			—			5			—			5
Issues (d)	—		—			—			—			73			73
Sales	—		—			—			—			—			—
Settlements (e)	—		(56		)	(56		)	—			112			112
Total purchases, issues, sales, and settlements	—		(56		)	(56		)	5			185			190
Transfers into Level 3	—		—			—			—			—			—
Transfers out of Level 3 (f)	—		—			—			(6		)	—			(6		)
Ending balance	$	—	$	—		$	—		$	—		$	525		$	525
Unrealized gains/(losses) on instruments still held	$	—	$	—		$	—		$	—		$	475		$	475

__________

(a) See Note 7 for detail on financial statement presentation by hedge designation.

(b) Represents foreign currency translation on derivative asset and liability balances held by non-U.S. dollar foreign affiliates.

(c) Recorded in Interest expense.

(d) Represents derivative features included in the FUEL notes.

(e) Reflects $56 million due to the extinguishment of the derivative features included in the FUEL notes as a result of the mandatory exchange of the FUEL notes to unsecured notes in the second quarter of 2012.

(f) Represents transfers out due to the increase in availability of observable data.

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block]

The following table summarizes the items measured at fair value subsequent to initial recognition on a nonrecurring basis by input hierarchy for the periods ended September 30, 2012 and December 31, 2011 that were still held on our balance sheet at those dates (in millions):

	September 30, 2012								December 31, 2011
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
North America
Retail receivables	$	—	$	—	$	55	$	55	$	—	$	—	$	70	$	70
Dealer loans	—		—		2		2		—		—		6		6
Total North America	$	—	$	—	$	57	$	57	$	—	$	—	$	76	$	76
International
Retail receivables	$	—	$	—	$	27	$	27	$	—	$	—	$	39	$	39

Schedule of Nonrecurring Fair Value Changes [Table Text Block]

The following table summarizes the total change in value of items for which a nonrecurring fair value adjustment has been included in our statement of operations for the periods ended September 30, related to items still held on our balance sheet at those dates (in millions):

	Total Gains/(Losses)
	Third Quarter						First Nine Months
	2012			2011			2012			2011
North America
Retail receivables	$	(6	)	$	(8	)	$	(14	)	$	(19	)
Dealer loans	—			—			—			—
Total North America	$	(6	)	$	(8	)	$	(14	)	$	(19	)
International
Retail receivables	$	(6	)	$	(3	)	$	(11	)	$	(11	)

Fair Value Inputs Quantitative Information [Table Text Block]

The following table summarizes significant unobservable inputs and the variability of those inputs to alternate methodologies for the period ended September 30, 2012 (in millions):

	Fair Value	Valuation Technique	Unobservable Input	Fair Value Range
Nonrecurring basis
Retail receivables
North America	$55	Income Approach	POD percentage	$44 - $55
International	$27	Income Approach	ARV percentage	$22 - $33
Dealer loans	$2	Income Approach	Estimated market value	$2 - $4