10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________

FORM 10-Q

(Mark One)

R	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended September 30, 2014

or

£	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from ____________________ to ____________________
	Commission file number 1-6368

Ford Motor Credit Company LLC

(Exact name of registrant as specified in its charter)

Delaware	38-1612444
(State of organization)	(I.R.S. employer identification no.)
One American Road, Dearborn, Michigan	48126
(Address of principal executive offices)	(Zip code)

(313) 322-3000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þ Yes  o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). þ Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer o Non-accelerated filer þ Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

o Yes  þ No

All of the limited liability company interests in the registrant (“Shares”) are held by an affiliate of the registrant. None of the Shares are publicly traded.

REDUCED DISCLOSURE FORMAT

The registrant meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this Form with the reduced disclosure format.

Exhibit Index begins on page 51

FORD MOTOR CREDIT COMPANY LLC

QUARTERLY REPORT ON FORM 10-Q

For the Quarter Ended September 30, 2014

	Table of Contents	Page
	Part I. Financial Information
Item 1	Financial Statements	1
	Consolidated Income Statement	1
	Consolidated Statement of Comprehensive Income	1
	Consolidated Balance Sheet	2
	Consolidated Statement of Shareholder’s Interest	3
	Consolidated Statement of Cash Flows	4
	Notes to the Financial Statements	5
	Report of Independent Registered Public Accounting Firm	31
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
	Results of Operations	32
	Contract Placement Volume and Financing Share	35
	Financial Condition	36
	Credit Risk	37
	Residual Risk	40
	Credit Ratings	41
	Funding	42
	Liquidity	43
	Leverage	45
	Outlook	46
	Risk Factors	47
	Accounting Standards Issued But Not Yet Adopted	48
	Other Financial Information	48
Item 3	Quantitative and Qualitative Disclosures About Market Risk	48
Item 4	Controls and Procedures	48
	Part II. Other Information
Item 1A	Risk Factors	49
Item 5	Other Information	49
Item 6	Exhibits	49
	Signature	50
	Exhibit Index	51

i

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements.

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENT

For the Periods Ended September 30, 2014 and 2013

(in millions)

	Third Quarter						First Nine Months
	2014			2013			2014			2013
	(unaudited)
Financing revenue
Operating leases	$	1,062		$	888		$	3,029		$	2,460
Retail financing	708			702			2,095			2,079
Dealer financing	424			360			1,241			1,123
Other	20			24			62			73
Total financing revenue	2,214			1,974			6,427			5,735
Depreciation on vehicles subject to operating leases	(801		)	(629		)	(2,248		)	(1,663		)
Interest expense	(663		)	(691		)	(2,002		)	(2,056		)
Net financing margin	750			654			2,177			2,016
Other revenue
Insurance premiums earned	31			28			94			87
Other income, net (Note 11)	67			81			184			204
Total financing margin and other revenue	848			763			2,455			2,307
Expenses
Operating expenses	276			289			807			779
Provision for credit losses (Note 4)	57			32			115			81
Insurance expenses	17			15			102			59
Total expenses	350			336			1,024			919
Income before income taxes	498			427			1,431			1,388
Provision for/(Benefit from) income taxes	(220		)	155			137			477
Net income	$	718		$	272		$	1,294		$	911

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the Periods Ended September 30, 2014 and 2013

(in millions)

	Third Quarter					First Nine Months
	2014			2013		2014			2013
	(unaudited)
Net income	$	718		$	272	$	1,294		$	911
Other comprehensive income/(loss), net of tax (Note 10)
Foreign currency translation	(335		)	176		(332		)	(62		)
Total other comprehensive income/(loss), net of tax	(335		)	176		(332		)	(62		)
Comprehensive income	$	383		$	448	$	962		$	849

The accompanying notes are part of the financial statements.

1

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(in millions)

	September 30, 2014		December 31, 2013
ASSETS	(unaudited)
Cash and cash equivalents	$	7,329	$	9,424
Marketable securities	3,767		1,943
Finance receivables, net (Note 2)	85,197		81,636
Net investment in operating leases (Note 3)	20,916		18,277
Notes and accounts receivable from affiliated companies	828		1,077
Derivative financial instruments (Note 7)	751		585
Other assets (Note 8)	2,428		2,666
Total assets	$	121,216	$	115,608
LIABILITIES
Accounts payable
Customer deposits, dealer reserves, and other	$	1,252	$	1,445
Affiliated companies	468		211
Total accounts payable	1,720		1,656
Debt (Note 9)	103,951		98,693
Deferred income taxes	1,618		1,627
Derivative financial instruments (Note 7)	291		506
Other liabilities and deferred income (Note 8)	2,314		2,522
Total liabilities	109,894		105,004
SHAREHOLDER’S INTEREST
Shareholder’s interest	5,217		5,217
Accumulated other comprehensive income (Note 10)	385		717
Retained earnings	5,720		4,670
Total shareholder’s interest	11,322		10,604
Total liabilities and shareholder’s interest	$	121,216	$	115,608

The following table includes assets to be used to settle the liabilities of the consolidated variable interest entities (“VIEs”).  These assets and liabilities are included in the consolidated balance sheet above.  See Notes 5 and 6 for additional information on our VIEs.

	September 30, 2014		December 31, 2013
ASSETS	(unaudited)
Cash and cash equivalents	$	2,022	$	4,198
Finance receivables, net	37,590		45,796
Net investment in operating leases	9,927		8,116
Derivative financial instruments	13		5
LIABILITIES
Debt	$	35,869	$	40,728
Derivative financial instruments	18		88

The accompanying notes are part of the financial statements.

2

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF SHAREHOLDER’S INTEREST

For the Periods Ended September 30, 2014 and 2013

(in millions, unaudited)

	Shareholder’s Interest			Accumulated Other Comprehensive Income (Note 10)			Retained Earnings			Total
Balance at December 31, 2013	$	5,217		$	717		$	4,670		$	10,604
Net income	—			—			1,294			1,294
Other changes to shareholder’s interest	—			—			—			—
Other comprehensive income/(loss), net of tax	—			(332		)	—			(332		)
Distributions	—			—			(244		)	(244		)
Balance at September 30, 2014	$	5,217		$	385		$	5,720		$	11,322
Balance at December 31, 2012	$	5,274		$	743		$	3,636		$	9,653
Net income	—			—			911			911
Other changes to shareholder’s interest	3			—			—			3
Other comprehensive income/(loss), net of tax	(60		)	(2		)	—			(62		)
Distributions	—			—			(56		)	(56		)
Balance at September 30, 2013	$	5,217		$	741		$	4,491		$	10,449

The accompanying notes are part of the financial statements.

3

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Periods Ended September 30, 2014 and 2013

(in millions)

	First Nine Months
	2014			2013
	(unaudited)
Cash flows from operating activities
Net income	$	1,294		$	911
Adjustments to reconcile net income to net cash provided by operations
Provision for credit losses	115			81
Depreciation and amortization	2,842			2,251
Amortization of upfront interest supplements	(756		)	(741		)
Net change in deferred income taxes	2			67
Net change in other assets	222			(293		)
Net change in other liabilities	13			1,183
All other operating activities	43			(219		)
Net cash provided by/(used in) operating activities	3,775			3,240
Cash flows from investing activities
Purchases of finance receivables (excluding wholesale and other)	(27,082		)	(23,761		)
Collections of finance receivables (excluding wholesale and other)	22,755			21,596
Purchases of operating lease vehicles	(9,815		)	(8,637		)
Liquidations of operating lease vehicles	4,849			3,171
Net change in wholesale receivables and other	(589		)	(1,241		)
Net change in notes receivable from affiliated companies	30			18
Purchases of marketable securities	(10,952		)	(25,143		)
Proceeds from sales and maturities of marketable securities	9,092			24,818
Settlements of derivatives	(161		)	25
All other investing activities	54			(11		)
Net cash provided by/(used in) investing activities	(11,819		)	(9,165		)
Cash flows from financing activities
Proceeds from issuances of long-term debt	30,951			26,770
Principal payments on long-term debt	(21,630		)	(18,188		)
Change in short-term debt, net	(2,822		)	(2,717		)
Cash distributions to parent	(244		)	(56		)
All other financing activities	(86		)	(10		)
Net cash provided by/(used in) financing activities	6,169			5,799
Effect of exchange rate changes on cash and cash equivalents	(220		)	(18		)
Net increase/(decrease) in cash and cash equivalents	$	(2,095	)	$	(144	)
Cash and cash equivalents at January 1	$	9,424		$	9,189
Net increase/(decrease) in cash and cash equivalents	(2,095		)	(144		)
Cash and cash equivalents at September 30	$	7,329		$	9,045

The accompanying notes are part of the financial statements.

4

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

Table of Contents

Footnote		Page
Note 1	Accounting Policies	6
Note 2	Finance Receivables	8
Note 3	Net Investment in Operating Leases	12
Note 4	Allowance for Credit Losses	13
Note 5	Transfers of Receivables	15
Note 6	Variable Interest Entities	17
Note 7	Derivative Financial Instruments and Hedging Activities	19
Note 8	Other Assets and Other Liabilities and Deferred Income	22
Note 9	Debt	23
Note 10	Accumulated Other Comprehensive Income	25
Note 11	Other Income	25
Note 12	Fair Value Measurements	26
Note 13	Acquisitions and Other Actions	26
Note 14	Segment Information	27
Note 15	Commitments and Contingencies	29

5

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1. ACCOUNTING POLICIES

Principles of Consolidation

The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information, and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited financial statements include all adjustments considered necessary for a fair statement of the results of operations and financial condition for interim periods for Ford Motor Credit Company LLC, its consolidated subsidiaries and consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Results for interim periods should not be considered indicative of results for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2013 (“2013 Form 10-K Report”). We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”).

We reclassified certainprior period amounts in our consolidated financial statements to conform to the presentation in our 2013 Form 10-K Report.

Provision for Income Taxes

For interim tax reporting we estimate one single effective tax rate, which is applied to the year-to-date ordinary income/(loss). Tax effects of significant unusual or extraordinary items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.

During the third quarter of 2014, we completed a study that led to a change in our methodology for measuring currency gains and losses in computing the earnings of our European operations under U.S. tax law.  Implementation of the new methodology substantially reduced the accumulated earnings of those operations under U.S. tax law and resulted in a tax benefit of $364 million in the third quarter from the realization of additional foreign tax credits.  As a result of the reduction in accumulated tax earnings of our European operations, our measure of earnings indefinitely reinvested in operations outside the United States is substantially reduced as it is based on accumulated earnings determined under U.S. tax law.  Our cash repatriation plans remain unchanged.

Adoption of New Accounting Standards

Income Taxes - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. On January 1, 2014, we adopted the new accounting standard that requires an unrecognized tax benefit to be presented as a decrease in a deferred tax asset where a net operating loss, a similar tax loss, or a tax credit carryforward exists, and certain criteria are met. The new accounting standard is consistent with our prior practice, and thus the adoption did not impact our consolidated financial statements.

Foreign Currency Matters - Parent’s Accounting for Cumulative Translation Adjustment. On January 1, 2014, we adopted the new accounting standard that clarifies the applicable guidance for a parent company’s accounting for the release of the cumulative translation adjustment into net income upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. The new accounting standard is consistent with our prior practice, and thus the adoption did not impact our consolidated financial statements.

Liabilities - Obligations Resulting from Joint and Several Liability Arrangements. On January 1, 2014, we adopted the new accounting standard that provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements. The adoption of this accounting standard did not impact our consolidated financial statements or financial statement disclosures.

6

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1. ACCOUNTING POLICIES (Continued)

Accounting Standards Issued But Not Yet Adopted

Revenue - Revenue from Contracts with Customers.  In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard that requires recognition of revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. The new standard supersedes virtually all present U.S. GAAP guidance on revenue recognition, and requires the use of more estimates and judgments than the present standards as well as additional disclosures. The new accounting standard is effective as of January 1, 2017 and we are assessing the potential impact to our consolidated financial statements and financial statement disclosures.

Transfers and Servicing - Repurchase-to-Maturity Transactions, Repurchase Financings and Disclosures. In June 2014, the FASB issued a new accounting standard that changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. The new standard also requires additional disclosures for certain transfers of financial assets with agreements that both entitle and obligate the transferor to repurchase the transferred assets from the transferee. The new accounting standard is effective as of January 1, 2015 and we do not expect it to have an impact on our consolidated financial statements and financial statement disclosures.

Stock Compensation - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. In June 2014, the FASB issued a new accounting standard that requires performance targets that could be achieved after the requisite service period be treated as performance conditions that affect the vesting of the award. The new accounting standard is effective as of January 1, 2016 and we do not expect it to have an impact on our consolidated financial statements and financial statement disclosures.

Consolidation - Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity. In August 2014, the FASB issued a new accounting standard that provides an entity the option to elect to measure the financial assets and financial liabilities of a consolidated collateralized financing entity (“CFE”) at a value that is reflective of its economic interest in the CFE. The new accounting standard is effective as of January 1, 2016 and we are assessing the potential impact to our consolidated financial statements and financial statement disclosures.

Going Concern - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In August 2014, the FASB issued a new accounting standard that requires management to assess if there is substantial doubt about an entity’s ability to continue as a going concern for each annual and interim period. If conditions or events give rise to substantial doubt, disclosures are required. The new accounting standard is effective as of December 31, 2016 and we do not expect it to have an impact on our financial statement disclosures.

7

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 2. FINANCE RECEIVABLES

We segment our North America and International portfolio of finance receivables into “consumer” and “non-consumer” receivables. The receivables are generally secured by the vehicles, inventory, or other property being financed.

Consumer Segment. Receivables in this portfolio segment include products offered to individuals and businesses that finance the acquisition of Ford and Lincoln vehicles from dealers for personal or commercial use. Retail financing includes retail installment contracts for new and used vehicles and direct financing leases with retail customers, government entities, daily rental companies, and fleet customers.

Non-Consumer Segment. Receivables in this portfolio segment include products offered to automotive dealers and receivables purchased from Ford and its affiliates. The products include:

• Dealer financing – includes wholesaleloans to dealers to finance the purchase of vehicle inventory, also known as floorplan financing, as well as loans to dealers to finance working capital and improvements to dealership facilities, finance the purchase of dealership real estate, and finance other dealer programs. Wholesale financing is approximately 94% of our dealer financing.

• Other – purchased receivables from Ford and its affiliates, primarily related to the sale of parts and accessories to dealers, receivables from Ford related loans, and certain used vehicles from daily rental fleet companies. These receivables are excluded from our credit quality reporting since the performance of this group of receivables is generally guaranteed by Ford.

Notes and accounts receivable from affiliated companies are presented separately on the balance sheet. These receivables are based on intercompany relationships and the balances are settled regularly. We do not assess these receivables for potential credit losses, nor are they subjected to aging analysis, credit quality reviews, or other formal assessments. As a result, Notes and accounts receivable from affiliated companies are not subject to the following disclosures contained herein.

8

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 2. FINANCE RECEIVABLES (Continued)

Finance Receivables, Net

Finance receivables, net were as follows (in millions):

	September 30, 2014									December 31, 2013
	North America			International			Total Finance Receivables			North America			International			Total Finance Receivables
Consumer
Retail financing, gross (a)	$	43,537		$	11,784		$	55,321		$	40,902		$	10,797		$	51,699
Less:  Unearned interest supplements (b)	(1,511		)	(239		)	(1,750		)	(1,255		)	(247		)	(1,502		)
Consumer finance receivables	42,026			11,545			53,571			39,647			10,550			50,197
Non-Consumer
Dealer financing (a)(c)	21,495			9,260			30,755			22,139			8,232			30,371
Other	874			322			1,196			1,050			375			1,425
Non-Consumer finance receivables	22,369			9,582			31,951			23,189			8,607			31,796
Total recorded investment	$	64,395		$	21,127		$	85,522		$	62,836		$	19,157		$	81,993
Recorded investment in finance receivables (d)	$	64,395		$	21,127		$	85,522		$	62,836		$	19,157		$	81,993
Less:  Allowance for credit losses (e)	(256		)	(69		)	(325		)	(280		)	(77		)	(357		)
Finance receivables, net	$	64,139		$	21,058		$	85,197		$	62,556		$	19,080		$	81,636
Net finance receivables subject to fair value (f)							$	83,529								$	79,969
Fair Value							85,180									81,658

__________

(a) At September 30, 2014 and December 31, 2013, includes North America consumer receivables of $19.3 billion and $21.8 billion and non-consumer receivables of $17.3 billion and $18.9 billion, respectively, and International consumer receivables of $4.7 billion and $5.9 billion and non-consumer receivables of $3.8 billion and $5.0 billion, respectively, that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. The receivables are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions; they are not available to pay our other obligations or the claims of our other creditors. We hold the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. See Note 5 for additional information.

(b) Ford-sponsored special financing programs attributable to retail financing.

(c) At September 30, 2014 and December 31, 2013, includes $41 million and $67 million, respectively, of North America dealer financing receivables with entities (primarily dealers) that are reported as consolidated subsidiaries of Ford. At September 30, 2014 and December 31, 2013, includes $494 million and $399 million, respectively, of International dealer financing receivables with entities (primarily dealers) that are reported as consolidated subsidiaries of Ford. The associated vehicles that are being financed by us are reported as inventory on Ford’s balance sheet.

(d) At September 30, 2014 and December 31, 2013, excludes $185 million and $196 million, respectively, of accrued uncollected interest, which we report in Other assets on our balance sheet.

(e) See Note 4 for additional information related to our allowance for credit losses.

(f) At September 30, 2014 and December 31, 2013, excludes $1.7 billion and $1.7 billion, respectively, of certain receivables (primarily direct financing leases) that are not subject to fair value disclosure requirements.

9

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 2. FINANCE RECEIVABLES (Continued)

Aging

For all finance receivables, we define “past due” as any payment, including principal and interest, that is at least 31 days past the contractual due date. The recorded investment of consumer receivables greater than 90 days past due and still accruing interest was $15 million and $14 millionat September 30, 2014andDecember 31,2013, respectively. The recorded investment of non-consumer receivables greater than 90 days past due and still accruing interest was $3 million and $21 million at September 30, 2014 and December 31, 2013, respectively.

The aging analysis of finance receivables balances was as follows (in millions):

	September 30, 2014						December 31, 2013
	North America		International		Total		North America		International		Total
Consumer
31-60 days past due	$	583	$	41	$	624	$	715	$	39	$	754
61-90 days past due	70		19		89		88		17		105
91-120 days past due	17		9		26		18		9		27
Greater than 120 days past due	40		22		62		37		26		63
Total past due	710		91		801		858		91		949
Current	41,316		11,454		52,770		38,789		10,459		49,248
Consumer finance receivables	42,026		11,545		53,571		39,647		10,550		50,197
Non-Consumer
Total past due	3		92		95		49		40		89
Current	22,366		9,490		31,856		23,140		8,567		31,707
Non-Consumer finance receivables	22,369		9,582		31,951		23,189		8,607		31,796
Total recorded investment	$	64,395	$	21,127	$	85,522	$	62,836	$	19,157	$	81,993

Credit Quality

Consumer Segment. When originating all classes of consumer receivables, we use a proprietary scoring system that measures the credit quality of the receivables using several factors, such as credit bureau information, consumer credit risk scores (e.g., FICO score), and contract characteristics. In addition to our proprietary scoring system, we consider other individual consumer factors, such as employment history, financial stability, and capacity to pay.

Subsequent to origination, we review the credit quality of retail financing based on customer payment activity. As each customer develops a payment history, we use an internally-developed behavioral scoring model to assist in determining the best collection strategies which allows us to focus collection activity on higher-risk accounts. These models are used to refine our risk-based staffing model to ensure collection resources are aligned with portfolio risk. Based on data from this scoring model, contracts are categorized by collection risk. Our collection models evaluate several factors, including origination characteristics, updated credit bureau data, and payment patterns.

Credit quality ratings for consumer receivables are based on our aging analysis. Refer to the aging table above. Consumer receivables credit quality ratings are as follows:

• Pass – current to 60 days past due

• Special Mention – 61 to 120 days past due and in intensified collection status

• Substandard – greater than 120 days past due and for which the uncollectible portion of the receivables has already been charged-off, as measured using the fair value of collateral

10

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 2. FINANCE RECEIVABLES (Continued)

Non-Consumer Segment. We extend credit to dealers primarily in the form of lines of credit to purchase new Ford and Lincoln vehicles as well as used vehicles. Payment is required when the dealer has sold the vehicle. Each non-consumer lending request is evaluated by taking into consideration the borrower’s financial condition and the underlying collateral securing the loan. We use a proprietary model to assign each dealer a risk rating. This model uses historical dealer performance data to identify key factors about a dealer that we consider most significant in predicting a dealer’s ability to meet its financial obligations. We also consider numerous other financial and qualitative factors of the dealer’s operations including capitalization and leverage, liquidity and cash flow, profitability, and credit history with ourselves and other creditors. A dealer’s risk rating does not reflect any guarantees or a dealer owner’s net worth.

Dealers are assigned to one of four groups according to risk ratings as follows:

• Group I – strong to superior financial metrics

• Group II – fair to favorable financial metrics

• Group III – marginal to weak financial metrics

• Group IV – poor financial metrics, including dealers classified as uncollectible

We suspend credit lines and extend no further funding to dealers classified in Group IV.

We regularly review our model to confirm the continued business significance and statistical predictability of the factors and update the model to incorporate new factors or other information that improves its statistical predictability. In addition, we regularly audit dealer inventory and dealer sales records to verify that the dealer is in possession of the financed vehicles and is promptly paying each receivable following the sale of the financed vehicle. The frequency of on-site vehicle inventory audits depends on factors such as the dealer’s risk rating and our security position. Under our policies, on-site vehicle inventory audits of low-risk dealers are conducted only as circumstances warrant. Audits of higher-risk dealers are conducted with increased frequency based on risk ratings and our security position. We perform a credit review of each dealer at least annually and adjust the dealer’s risk rating, if necessary.

The credit quality of dealer financing receivables is evaluated based on our internal dealer risk rating analysis. A dealer has the same risk rating for its entire dealer financing regardless of the type of financing.

The credit quality analysis of our dealer financing receivables was as follows (in millions):

	September 30, 2014						December 31, 2013
	North America		International		Total		North America		International		Total
Dealer financing
Group I	$	18,260	$	4,806	$	23,066	$	18,424	$	5,450	$	23,874
Group II	2,951		3,073		6,024		3,289		2,092		5,381
Group III	256		1,298		1,554		424		649		1,073
Group IV	28		83		111		2		41		43
Total recorded investment	$	21,495	$	9,260	$	30,755	$	22,139	$	8,232	$	30,371

11

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 2. FINANCE RECEIVABLES (Continued)

Impaired Receivables

Impaired consumer receivables include accounts that have been rewritten or modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code that are considered to be Troubled Debt Restructurings (“TDRs”), as well as all accounts greater than 120 days past due. Impaired non-consumer receivables represent accounts with dealers that have weak or poor financial metrics or dealer financing that has been modified in TDRs. The recorded investment of consumer receivables that were impaired at September 30, 2014 and December 31, 2013 was $421 million, or 0.8% of consumer receivables, and $435 million, or 0.9% of consumer receivables, respectively. The recorded investment of non-consumer receivables that were impaired at September 30, 2014 and December 31, 2013 was $136 million, or 0.4% of non-consumer receivables, and $71 million, or 0.2% of non-consumer receivables, respectively. Impaired finance receivables are evaluated both collectively and specifically. See Note 4 for additional information related to the development of our allowance for credit losses.

The accrual of revenue is discontinued at the time a receivable is determined to be uncollectible. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance.

A restructuring of debt constitutes a TDR if we grant a concession to a debtor for economic or legal reasons related to the debtor’s financial difficulties that we otherwise would not consider. Consumer and non-consumer receivables that have a modified interest rate below market rate or that were modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code, except non-consumer receivables that are current with minimal risk of loss, are considered to be TDRs. We do not grant concessions on the principal balance of our receivables. If a receivable is modified in a reorganization proceeding, all payment requirements of the reorganization plan need to be met before remaining balances are forgiven.

Finance receivables involved in TDRs are specifically assessed for impairment.

NOTE 3. NET INVESTMENT IN OPERATING LEASES

Net investment in operating leases consist primarily of lease contracts for vehicles with retail customers, daily rental companies, government entities, and fleet customers with terms of 60 months or less.

Net investment in operating leases were as follows (in millions):

	September 30, 2014			December 31, 2013
Vehicles, at cost, including acquisition costs	$	24,220		$	21,092
Less: Accumulated depreciation	(3,273		)	(2,792		)
Net investment in operating leases before allowance for credit losses (a)	20,947			18,300
Less: Allowance for credit losses	(31		)	(23		)
Net investment in operating leases	$	20,916		$	18,277

__________

(a) At September 30, 2014 and December 31, 2013, includes net investment in operating leases of $9.9 billion and $8.1 billion, respectively, that have been included in securitization transactions but continue to be reported in our consolidated financial statements. These net investment in operating leases are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions; they are not available to pay our other obligations or the claims of our other creditors. We hold the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. See Note 5 for additional information.

12

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 4. ALLOWANCE FOR CREDIT LOSSES

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) was as follows:

	Third Quarter 2014
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	303		$	24		$	327		$	26		$	353
Charge-offs	(68		)	(2		)	(70		)	(28		)	(98		)
Recoveries	33			2			35			15			50
Provision for credit losses	42			(3		)	39			18			57
Other (a)	(5		)	(1		)	(6		)	—			(6		)
Ending balance	$	305		$	20		$	325		$	31		$	356

	First Nine Months 2014
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	327		$	30		$	357		$	23		$	380
Charge-offs	(200		)	(7		)	(207		)	(82		)	(289		)
Recoveries	101			8			109			47			156
Provision for credit losses	82			(10		)	72			43			115
Other (a)	(5		)	(1		)	(6		)	—			(6		)
Ending balance	$	305		$	20		$	325		$	31		$	356
Analysis of ending balance of allowance for credit losses
Collective impairment allowance	$	283		$	19		$	302		$	31		$	333
Specific impairment allowance	22			1			23			—			23
Ending balance	305			20			325			31			$	356
Analysis of ending balance of finance receivables and net investment in operating leases
Collectively evaluated for impairment	53,150			31,815			84,965			20,947
Specifically evaluated for impairment	421			136			557			—
Recorded investment	53,571			31,951			85,522			20,947
Ending balance, net of allowance for credit losses	$	53,266		$	31,931		$	85,197		$	20,916

__________

(a) Primarily represents amounts related to translation adjustments.

13

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 4. ALLOWANCE FOR CREDIT LOSSES (Continued)

	Third Quarter 2013
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	322		$	31		$	353		$	23		$	376
Charge-offs	(73		)	(3		)	(76		)	(17		)	(93		)
Recoveries	34			1			35			11			46
Provision for credit losses	32			(1		)	31			1			32
Other (a)	5			1			6			1			7
Ending balance	$	320		$	29		$	349		$	19		$	368

	First Nine Months 2013
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	356		$	29		$	385		$	23		$	408
Charge-offs	(213		)	(13		)	(226		)	(47		)	(273		)
Recoveries	110			4			114			35			149
Provision for credit losses	65			8			73			8			81
Other (a)	2			1			3			—			3
Ending balance	$	320		$	29		$	349		$	19		$	368
Analysis of ending balance of allowance for credit losses
Collective impairment allowance	$	298		$	27		$	325		$	19		$	344
Specific impairment allowance	22			2			24			—			24
Ending balance	320			29			349			19			$	368
Analysis of ending balance of finance receivables and net investment in operating leases
Collectively evaluated for impairment	48,897			29,696			78,593			17,367
Specifically evaluated for impairment	424			58			482			—
Recorded investment	49,321			29,754			79,075			17,367
Ending balance, net of allowance for credit losses	$	49,001		$	29,725		$	78,726		$	17,348

__________

(a) Primarily represents amounts related to translation adjustments.

14

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 5. TRANSFERS OF RECEIVABLES

We securitize finance receivables and net investment in operating leases through a variety of programs using amortizing, variable funding, and revolving structures. We also sell finance receivables in structured financing transactions. Due to the similarities between securitization and structured financing, we refer to structured financings as securitization transactions. Our securitization programs are targeted to institutional investors in both public and private transactions in capital markets primarily in North America and Europe.

We engage in securitization transactions to fund operations and to maintain liquidity. Our securitization transactions are recorded as asset-backed debt and the associated assets are not derecognized and continue to be included in our financial statements.

The finance receivables sold for legal purposes and net investment in operating leases included in securitization transactions are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. They are not available to pay our other obligations or the claims of our other creditors. We hold the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. The debt is the obligation of our consolidated securitization entities and not the obligation of Ford Credit or our other subsidiaries.

Most of these securitization transactions utilize VIEs. See Note 6 for more information concerning VIEs. The following tables show the assets and debt related to our securitization transactions that were included in our financial statements (in billions):

	September 30, 2014
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt
			Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses
VIE (b)
Retail financing	$	1.3	$	17.6	$	0.1	$	17.5	$	15.8
Wholesale financing	0.3		20.1		—		20.1		13.1
Finance receivables	1.6		37.7		0.1		37.6		28.9
Net investment in operating leases	0.4		9.9		—		9.9		7.0
Total VIE	$	2.0	$	47.6	$	0.1	$	47.5	$	35.9
Non-VIE
Retail financing	$	0.4	$	6.4	$	—	$	6.4	$	5.9
Wholesale financing	—		1.0		—		1.0		0.9
Finance receivables	0.4		7.4		—		7.4		6.8
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.4	$	7.4	$	—	$	7.4	$	6.8
Total securitization transactions
Retail financing	$	1.7	$	24.0	$	0.1	$	23.9	$	21.7
Wholesale financing	0.3		21.1		—		21.1		14.0
Finance receivables	2.0		45.1		0.1		45.0		35.7
Net investment in operating leases	0.4		9.9		—		9.9		7.0
Total securitization transactions	$	2.4	$	55.0	$	0.1	$	54.9	$	42.7

__________

(a) Unearned interest supplements and residual support are excluded from securitization transactions.

(b) Includes assets to be used to settle the liabilities of the consolidated VIEs.

15

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 5. TRANSFERS OF RECEIVABLES (Continued)

	December 31, 2013
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt
			Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses
VIE (b)
Retail financing	$	1.9	$	23.1	$	0.2	$	22.9	$	20.3
Wholesale financing	1.9		22.9		—		22.9		14.8
Finance receivables	3.8		46.0		0.2		45.8		35.1
Net investment in operating leases	0.4		8.1		—		8.1		5.6
Total VIE	$	4.2	$	54.1	$	0.2	$	53.9	$	40.7
Non-VIE
Retail financing	$	0.2	$	4.6	$	—	$	4.6	$	4.4
Wholesale financing	—		1.0		—		1.0		0.8
Finance receivables	0.2		5.6		—		5.6		5.2
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.2	$	5.6	$	—	$	5.6	$	5.2
Total securitization transactions
Retail financing	$	2.1	$	27.7	$	0.2	$	27.5	$	24.7
Wholesale financing	1.9		23.9		—		23.9		15.6
Finance receivables	4.0		51.6		0.2		51.4		40.3
Net investment in operating leases	0.4		8.1		—		8.1		5.6
Total securitization transactions	$	4.4	$	59.7	$	0.2	$	59.5	$	45.9

__________

(a) Unearned interest supplements and residual support are excluded from securitization transactions.

(b) Includes assets to be used to settle the liabilities of the consolidated VIEs.

Interest expense related to securitization debt for the periods ended September 30 was as follows (in millions):

	Third Quarter				First Nine Months
	2014		2013		2014		2013
VIE	$	125	$	138	$	377	$	434
Non-VIE	24		19		67		54
Total securitization transactions	$	149	$	157	$	444	$	488

Certain of our securitization entities enter into derivative transactions to mitigate interest rate exposure, primarily resulting from fixed-rate assets securing floating-rate debt and, in certain instances, currency exposure resulting from assets in one currency and debt in another currency. In many instances, the counterparty enters into offsetting derivative transactions with us to mitigate its interest rate risk resulting from derivatives with our securitization entities. See Note 7 for additional information regarding the accounting for derivatives. Our exposures based on the fair value of derivative instruments with external counterparties related to securitization programs were as follows (in millions):

	September 30, 2014				December 31, 2013
	Derivative Asset		Derivative Liability		Derivative Asset		Derivative Liability
Derivatives of the VIEs	$	13	$	18	$	5	$	88
Derivatives related to the VIEs	15		10		23		30
Other securitization related derivatives	7		2		5		7
Total exposures related to securitization	$	35	$	30	$	33	$	125

16

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 5. TRANSFERS OF RECEIVABLES (Continued)

Derivative expense/(income) related to our securitization transactions for the periods ended September 30 was as follows (in millions):

	Third Quarter						First Nine Months
	2014			2013			2014			2013
VIEs	$	(22	)	$	73		$	(4	)	$	(20	)
Related to the VIEs	(10		)	(2		)	(10		)	8
Other securitization related derivatives	(4		)	7			11			6
Total derivative expense/(income) related to securitization	$	(36	)	$	78		$	(3	)	$	(6	)

NOTE 6. VARIABLE INTEREST ENTITIES

A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. Nearly all of our VIEs are special purpose entities used for our securitizations.

We have the power to direct the activities of our special purpose entities when we have the ability to exercise discretion in the servicing of financial assets, issue additional debt, exercise a unilateral call option, add assets to revolving structures, or control investment decisions.

Assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims against our general assets. Conversely, liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIEs.

VIEs of Which We Are the Primary Beneficiary

We use special purpose entities to issue asset-backed securities in transactions to public and private investors, bank conduits, and government-sponsored entities or others who obtain funding from government programs. We have deemed most of these special purpose entities to be VIEs. The asset-backed securities are backed by finance receivables and interests in net investments in operating leases. The assets continue to be consolidated by us. We retain interests in our securitization VIEs, including subordinated securities issued by the VIEs, rights to cash held for the benefit of the securitization investors, and rights to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions.

The transactions create and pass along risks to the variable interest holders, depending on the assets securing the debt and the specific terms of the transactions. We aggregate and analyze the asset-backed securitization transactions based on the risk profile of the product and the type of funding structure, including:

• Retail financing – consumer credit risk and pre-payment risk

• Wholesale financing – dealer credit risk and Ford risk, as the receivables owned by the VIEs primarily arise from the financing provided by us to Ford-franchised dealers; therefore, the collections depend upon the sale of Ford vehicles

• Net investment in operating leases – vehicle residual value risk, consumer credit risk, and pre-payment risk

As residual interest holder, we are exposed to the underlying residual and credit risk of the collateral and are exposed to interest rate risk in some transactions. The amount of risk absorbed by our residual interests generally is represented by and limited to the amount of overcollateralization of the assets securing the debt and any cash reserves.

17

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 6. VARIABLE INTEREST ENTITIES (Continued)

We have no obligation to repurchase or replace any securitized asset that subsequently becomes delinquent in payment or otherwise is in default, except when representations and warranties about the eligibility of the securitized assets are breached, or when certain changes are made to the underlying asset contracts. Securitization investors have no recourse to us or our other assets and have no right to require us to repurchase the investments. We generally have no obligation to provide liquidity or contribute cash or additional assets to the VIEs and do not guarantee any asset-backed securities. We may be required to support the performance of certain securitization transactions, however, by increasing cash reserves.

VIEs that are exposed to interest rate or currency risk have reduced their risks by entering into derivative transactions. In certain instances, we have entered into offsetting derivative transactions with the VIE to protect the VIE from the risks that are not mitigated through the derivative transactions between the VIE and its external counterparty. In other instances, we have entered into derivative transactions with the counterparty to protect the counterparty from risks absorbed through its derivative transactions with the VIEs.

Although not contractually required, we regularly support our wholesale securitization programs by repurchasing receivables of a dealer from a VIE when the dealer’s performance is at risk, which transfers the corresponding risk of loss from the VIE to us. In order to continue to fund the wholesale receivables, we also may contribute additional cash or wholesale receivables if the collateral falls below the required levels. The balances of cash related to these contributions were $0 at September 30, 2014 and December 31, 2013, and ranged from $0 to $242 million during the first nine months of 2014.

See Note 5 for information on the financial position and financial performance of our VIEs and Notes 7 and 12 for additional information regarding derivatives.

VIEs of Which We Are Not the Primary Beneficiary

We have an investment in Forso Nordic AB, a joint venture determined to be a VIE of which we are not the primary beneficiary. The joint venture provides retail and dealer financing in its local markets and is financed by external debt and additional subordinated debt provided by the joint venture partner. The operating agreement indicates that the power to direct economically significant activities is shared with the joint venture partner, and the obligation to absorb losses or right to receive benefits resides primarily with the joint venture partner. Our investment in the joint venture is accounted for as an equity method investment and is included in Other assets. Our maximum exposure to any potential losses associated with this VIE is limited to our equity investment and amounted to $68 millionand $72 million at September 30, 2014 and December 31, 2013, respectively.

18

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

In the normal course of business, our operations are exposed to global market risks, including the effect of changes in interest rates and foreign currency exchange rates. To manage these risks, we enter into various derivative contracts:

• Interest rate contracts including swaps, caps, and floors that are used to manage the effects of interest rate fluctuations;

• Foreign currency exchange contracts that are used to manage foreign exchange exposure; and

• Cross-currency interest rate swap contracts that are used to manage foreign currency and interest rate exposures on foreign-denominated debt.

Our derivatives are over-the-counter customized derivative transactions and are not exchange traded. We review our hedging program, derivative positions, and overall risk management strategy on a regular basis.

Derivative assets and derivative liabilities are recorded in Derivative financial instruments on our balance sheet at fair value and presented on a gross basis.

We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Cash flows and the profit impact associated with designated hedges are reported in the same category as the underlying hedged item.

Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting. Regardless, we only enter into transactions that we believe will be highly effective at offsetting the underlying economic risk. We report net interest settlements and accruals and changes in the fair value of derivatives not designated as hedging instruments in Other income, net. Cash flows associated with non-designated or de-designated derivatives are reported in Net cash provided by/(used in) investing activities in our statement of cash flows.

Fair Value Hedges. We use derivatives to reduce the risk of changes in the fair value of debt. We have designated certain receive-fixed, pay-float interest rate swaps as fair value hedges of fixed-rate debt. The risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark interest rate. If the hedge relationship is deemed to be highly effective, we record the changes in the fair value of the hedged debt related to the risk being hedged in Debt with the offset in Other income, net. The change in fair value of the related derivative (excluding accrued interest) also is recorded in Other income, net.

Net interest settlements and accruals on fair value hedges are excluded from the assessment of hedge effectiveness. We report net interest settlements and accruals in Interest expense.We report foreign currency revaluation on accrued interest in Other income, net. The cash flows associated with fair value hedges are reported in Net cash provided by/(used in) operating activities in our statement of cash flows.

Hedge ineffectiveness is the difference between the change in fair value of the derivative instrument and the change in fair value of the hedged item attributable to changes in the benchmark interest rate. Ineffectiveness is recorded directly to income.

When a fair value hedge is de-designated, or when the derivative is terminated before maturity, the fair value adjustment to the hedged debt continues to be reported as part of the carrying value of the debt and is amortized over its remaining life.

19

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)

Income Effect of Derivative Financial Instruments

The following table summarizes by hedge designation the pre-tax gains/(losses) recognized in income for the periods ended September 30 (in millions):

	Third Quarter						First Nine Months
	2014			2013			2014			2013
Fair value hedges
Interest rate contracts
Net interest settlements and accruals excluded from the assessment of hedge effectiveness	$	79		$	63		$	220		$	186
Ineffectiveness (a)	(2		)	(3		)	8			(33		)
Total	$	77		$	60		$	228		$	153
Derivatives not designated as hedging instruments
Interest rate contracts	$	(10	)	$	(18	)	$	(37	)	$	(20	)
Foreign currency exchange contracts (b)	52			(55		)	22			28
Cross-currency interest rate swap contracts (b)	118			(131		)	102			(37		)
Total	$	160		$	(204	)	$	87		$	(29	)

__________

(a) For the third quarter of 2014 and 2013, hedge ineffectiveness reflects change in fair value on derivatives of $88 million loss and $67 million gain, respectively, and change in value on hedged debt attributable to the change in benchmark interest rate of $86 million gain and $70 million loss, respectively. For the first nine months of 2014 and 2013, hedge ineffectiveness reflects change in fair value on derivatives of $179 million gain and$501 million loss, respectively, and change in value on hedged debt attributable to the change in benchmark interest rate of $171 million loss and $468 million gain, respectively.

(b) Gains/(Losses) related to foreign currency derivatives were mostly offset by net revaluation impacts on foreign denominated debt, which were also recorded in Other income, net.

Balance Sheet Effect of Derivative Financial Instruments

The following table summarizes the notional amount and estimated fair value of our derivative financial instruments (in millions):

	September 30, 2014						December 31, 2013
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	22,943	$	424	$	157	$	18,778	$	360	$	179
Derivatives not designated as hedging instruments
Interest rate contracts	56,607		254		78		69,863		224		126
Foreign currency exchange contracts (a)	2,324		56		12		2,410		1		25
Cross-currency interest rate swap contracts	2,513		17		44		2,620		—		176
Total derivatives not designated as hedging instruments	61,444		327		134		74,893		225		327
Total derivative financial instruments	$	84,387	$	751	$	291	$	93,671	$	585	$	506

__________

(a) Includes forward contracts between Ford Credit and an affiliated company.

20

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)

Notional amounts are presented on a gross basis. The notional amounts of the derivative financial instruments do not represent amounts exchanged by the parties and, therefore, are not a direct measure of our exposure to the financial risks described above. The amounts exchanged are calculated by reference to the notional amounts and by other terms of the derivatives, such as interest rates or foreign currency exchange rates.

Counterparty Risk

The use of derivatives exposes us to the risk that a counterparty may default on a derivative contract. We establish exposure limits for each counterparty to minimize this risk and provide counterparty diversification. Substantially all of our derivative exposures are with counterparties that have an investment grade rating. The aggregate fair value of derivative instruments in asset positions at September 30, 2014 was $751 million, representing the maximum loss we would recognize at that date if all counterparties failed to perform as contracted. We enter into master agreements with counterparties that may allow for netting of exposures in the event of default or termination of the counterparty agreement due to breach of contract.

The gross and net amounts of derivative assets and liabilities were as follows (in millions):

	September 30, 2014						December 31, 2013
	Fair Value of Assets			Fair Value of Liabilities			Fair Value of Assets			Fair Value of Liabilities
Gross derivative amounts recognized in the balance sheet	$	751		$	291		$	585		$	506
Gross derivative amounts not offset in the balance sheet that are eligible for offsetting	(242		)	(242		)	(296		)	(296		)
Net amount	$	509		$	49		$	289		$	210

We may receive or pledge cash collateral with certain counterparties based on our net position with regard to foreign currency derivative contracts. As of September 30, 2014 and December31, 2013, we did not receive or pledge any cash collateral.

We include an adjustment for non-performance risk in the measurement of fair value of derivative instruments. Our adjustment for non-performance risk is relative to a measure based on an unadjusted inter-bank deposit rate (e.g., LIBOR). At September 30, 2014 and December 31, 2013, our adjustment decreased derivative assets by $2 million and increased derivative assets by $2 million, respectively, and decreased our derivative liabilities by $9 million and $25 million, respectively. See Note 12 for additional information regarding valuation methodologies.

21

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 8. OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED INCOME

Other assets and other liabilities and deferred income consist of various balance sheet items that are combined for financial statement presentation due to their respective materiality compared with other individual asset and liability items.

Other assets were as follows (in millions):

	September 30, 2014		December 31, 2013
Accrued interest and other non-finance receivables (a)	$	821	$	1,010
Collateral held for resale, at net realizable value	367		399
Restricted cash (b)	93		169
Deferred charges	270		252
Deferred charges – income taxes	178		184
Prepaid reinsurance premiums and other reinsurance receivables	389		340
Investment in non-consolidated affiliates	139		133
Property and equipment, net of accumulated depreciation (c)	117		120
Other	54		59
Total other assets	$	2,428	$	2,666

__________

(a) Includes the gross value of repurchase agreements where we are the transferee of $4 million and $227 million at September 30, 2014 and December 31, 2013, respectively.  The gross value of the offsetting liabilities are reported in Customer deposits, dealer reserves, and other on our balance sheet.

(b) Restricted cash primarily includes cash held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of certain contractual agreements. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions.

(c) Accumulated depreciation was $324 million and $343 million at September 30, 2014 and December 31, 2013, respectively.

Other liabilities and deferred income were as follows (in millions):

	September 30, 2014		December 31, 2013
Interest payable	$	620	$	615
Tax related payables to Ford and affiliated companies	726		941
Unrecognized tax benefits	88		101
Unearned insurance premiums	399		350
Other	481		515
Total other liabilities and deferred income	$	2,314	$	2,522

In the first nine months of 2014 and in the year ended December 31, 2013, we paid $262 million and $288 million, respectively, to Ford to settle tax related payables which were reflected in Other liabilities and deferred income. The payment in 2013 reduced the liability for unrecognized tax benefits reflecting the settlement of tax deficiencies related to the 2008 and 2009 tax years.

22

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 9. 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 securitization programs that issue short-term asset-backed 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.

Asset-backed debt issued in securitizations is the obligation of the consolidated securitization entity that issued the debt and is payable only out of collections on the underlying securitized assets and related enhancements. This asset-backed debt is not the obligation of Ford Credit or our other subsidiaries.

Debt is recorded on our balance sheet at par value adjusted for unamortized discount or premium (with the exception of fair value adjustments related to debt in designated hedge relationships; see Note 7 for further policy information). Debt due within one year at issuance is classified as short-term. Debt due after one year at issuance is classified as long-term. Discounts, premiums, and costs directly related to the issuance of debt generally are capitalized and amortized over the life of the debt or put date and recorded in Interest expense using the effective interest method. Gains and losses on the extinguishment of debt are recorded in Other income, net.

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

	Interest Rates
	Average Contractual				Average Effective				Debt
	2014		2013		2014		2013		September 30, 2014			December 31, 2013
Short-term debt
Asset-backed commercial paper	—		0.2	%					$	—		$	3,364
Floating rate demand notes	1.1	%	1.1	%					5,689			5,319
Other asset-backed short-term debt	0.6	%	0.7	%					1,375			1,963
Commercial paper	0.7	%	0.9	%					2,137			2,003
Other short-term debt	5.0	%	5.3	%					2,952			2,372
Total short-term debt	1.9	%	1.5	%	1.9	%	1.5	%	12,153			15,021
Long-term debt
Unsecured debt
Notes payable within one year									9,679			4,479
Notes payable after one year									40,590			38,617
Asset-backed debt
Notes payable within one year									16,561			17,322
Notes payable after one year									24,797			23,238
Unamortized discount									(57		)	(87		)
Fair value adjustments									228			103
Total long-term debt	2.8	%	3.0	%	2.9	%	3.2	%	91,798			83,672
Total debt	2.7	%	2.8	%	2.8	%	3.0	%	$	103,951		$	98,693
Fair value of debt									$	106,544		$	101,866

With the exception of commercial paper, which is issued at a discount, the 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.

23

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 9. DEBT (Continued)

The fair value of debt reflects interest accrued but not yet paid of $617 million and $618 million at September 30, 2014 and December 31, 2013, respectively. Interest accrued is reported in Other liabilities and deferred income for outside debt and Accounts payable - affiliated companies for debt with affiliated companies. The fair value of debt also includes $10.8 billion and $9.7 billion of short-term debt at September 30, 2014 and December 31, 2013, respectively, carried at cost, which approximates fair value. See Note 12 for additional information.

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

	September 30, 2014		December 31, 2013
Other short-term debt	$	17	$	27
Notes payable within one year	318		4
Notes payable after one year	6		307
Total debt with affiliated companies	$	341	$	338

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.

In the third quarter and first nine months of 2014, through market transactions, we called an aggregate principal amount of $0 and $216 million, respectively, of our unsecured debt, none of which would have matured in 2014. As a result, in the third quarter and first nine months of 2014, we recorded a $0 and $2 million pre-tax loss, 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 2014.

In the third quarter and first nine months of 2013, through market transactions, we called an aggregate principal amount of $0 and $163 million, respectively, of our unsecured debt, none of which would have matured in 2013. As a result, in the third quarter and first nine months of 2013, we recorded a $0 and $1 million pre-tax loss, 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 2013.

Debt Maturities. Short-term and long-term debt matures at various dates through 2048. At September 30, 2014, maturities were as follows (in millions):

	2014 (a)		2015 (b)		2016		2017		2018		Thereafter (c)		Total
Unsecured debt	$	9,848	$	11,413	$	10,385	$	10,696	$	5,958	$	12,747	$	61,047
Asset-backed debt	4,436		16,898		11,865		6,716		759		2,059		42,733
Total	14,284		28,311		22,250		17,412		6,717		14,806		103,780
Unamortized (discount)/premium													(57		)
Fair value adjustments													228
Total debt													$	103,951

__________

(a) Includes $9,575 million for short-term and $4,709 million for long-term debt.

(b) Includes $2,578 million for short-term and $25,733 million for long-term debt.

(c) Includes $12,731 million of unsecured debt maturing between 2019 and 2024 with the remaining balance maturing after 2031.

24

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 10. ACCUMULATED OTHER COMPREHENSIVE INCOME

The changes in the accumulated balance of AOCI for the periods ended September 30 were as follows (in millions):

	Third Quarter					First Nine Months
	2014			2013		2014			2013
Foreign currency translation
Beginning balance	$	720		$	505	$	717		$	743
Net gain/(loss) on foreign currency translation	(335		)	176		(332		)	(62		)
Reclassifications from shareholder’s interest (a)	—			60		—			60
Other comprehensive income/(loss), net of tax	(335		)	236		(332		)	(2		)
Ending balance	$	385		$	741	$	385		$	741
Total AOCI ending balance at September 30	$	385		$	741	$	385		$	741

__________

(a) See Note 13 for additional information regarding the reclassification.

NOTE 11. OTHER INCOME

Other income consists of various line items that are combined on the income statement due to their respective materiality compared with other individual income and expense items.

The amounts included in Other income, net were as follows for the periods ended September 30 (in millions):

	Third Quarter						First Nine Months
	2014			2013			2014			2013
Gains/(Losses) on derivatives (a)	$	158		$	(207	)	$	95		$	(62	)
Currency revaluation gains/(losses) (a)	(170		)	188			(132		)	17
Interest and investment income	12			18			41			38
Interest income/(expense) on income taxes	1			—			(10		)	—
Insurance fee income	16			16			57			46
Other	50			66			133			165
Total other income, net	$	67		$	81		$	184		$	204

__________

(a) Currency revaluation gains/(losses) primarily related to foreign denominated debt were mostly offset by gains/(losses) on derivatives. See Note 7 for detail by derivative instrument and risk type.

25

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 12. FAIR VALUE MEASUREMENTS

Cash equivalents, marketable securities, and derivative financial instruments are presented in our financial statements on a recurring basis at fair value, while other assets and liabilities are measured at fair value on a nonrecurring basis, such as when we have an asset impairment. We did not have any material nonrecurring fair value items in the quarter. There have been no changes to the types of inputs used or valuation techniques since year end.

Input Hierarchy of Items Measured at Fair Value on a Recurring Basis

The following table categorizes the fair values of items measured at fair value on a recurring basis on our balance sheet, none of which are Level 3 (in millions):

	September 30, 2014						December 31, 2013
	Level 1		Level 2		Total		Level 1		Level 2		Total
Assets
Cash equivalents-financial instruments
U.S. government	$	40	$	—	$	40	$	—	$	—	$	—
Corporate debt	—		60		60		—		—		—
Non-U.S. government and agencies	—		341		341		—		24		24
Total cash equivalents-financial instruments (a)	40		401		441		—		24		24
Marketable securities
U.S. government and agencies	341		1,222		1,563		418		25		443
Non-U.S. government and agencies	—		644		644		—		184		184
Corporate debt	—		1,525		1,525		—		1,273		1,273
Other marketable securities	—		35		35		—		43		43
Total marketable securities	341		3,426		3,767		418		1,525		1,943
Derivative financial instruments (b)	—		751		751		—		585		585
Total assets at fair value	$	381	$	4,578	$	4,959	$	418	$	2,134	$	2,552
Liabilities
Derivative financial instruments (b)	$	—	$	291	$	291	$	—	$	506	$	506
Total liabilities at fair value	$	—	$	291	$	291	$	—	$	506	$	506

__________

(a) Excludes time deposits, certificates of deposit, and money market accounts reported at par value on our balance sheet totaling $4.2 billion and $6.6 billion at September 30, 2014 and December 31, 2013, respectively. In addition to these cash equivalents, we also had cash on hand totaling $2.7 billion and $2.8 billion at September 30, 2014 and December 31, 2013, respectively.

(b) See Note 7 for additional information regarding derivative financial instruments.

NOTE 13. ACQUISITIONS AND OTHER ACTIONS

During April and August 2013, an affiliated company owned by Ford executed agreements to sell Volvo-related retail financing receivables of its German branch to a third-party financing company. In July 2013, FCE Bank plc (“FCE”) acquired the net residual assets of the affiliated company’s Swiss branch through the purchase of a newly created Swiss subsidiary. The net residual assets of the Swiss branch consisted primarily of $713 million of retail and dealer financing receivables in Switzerland. The Swiss assets were purchased at book value. All servicing obligations for the Swiss retail and dealer financing receivables transferred to FCE upon acquisition. In conjunction with this transaction, we recorded an increase of $60 million in Accumulated other comprehensive income (foreign currency translation), which resulted in a corresponding decrease in Shareholder’s interest.

26

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 14. 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 they 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. Receivables for the North America and International Segments are presented on a managed basis. Management believes that managed receivables is the appropriate measurement of business growth, as it closely approximates the customers’ outstanding balance on the receivables, which is the basis for earning revenue. As a result, managed receivables equals total net finance receivables and net investment in operating leases, excluding unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation).

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			Adjustment to Receivables (a)		Total Unallocated/Eliminations			Total
Third Quarter 2014
Total revenue (b)	$	1,883	$	438	$	(9	)	$	—	$	(9	)	$	2,312
Income before income taxes	374		133		(9		)	—		(9		)	498
Other disclosures
Depreciation on vehicles subject to operating leases	791		10		—			—		—			801
Interest expense	498		165		—			—		—			663
Provision for credit losses	48		9		—			—		—			57
Third Quarter 2013
Total revenue (b)	$	1,711	$	394	$	(22	)	$	—	$	(22	)	$	2,083
Income before income taxes	358		91		(22		)	—		(22		)	427
Other disclosures
Depreciation on vehicles subject to operating leases	621		8		—			—		—			629
Interest expense	536		155		—			—		—			691
Provision for credit losses	31		1		—			—		—			32

__________

(a) Includes unearned interest supplements and residual support, allowances for credit losses, and other (primarily accumulated supplemental depreciation).

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

27

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 14. SEGMENT INFORMATION (Continued)

					Unallocated/Eliminations
	North America Segment		International Segment		Unallocated Risk Management			Adjustment to Receivables (a)			Total Unallocated/Eliminations			Total
First Nine Months 2014
Total revenue (b)	$	5,470	$	1,258	$	(23	)	$	—		$	(23	)	$	6,705
Income before income taxes	1,069		385		(23		)	—			(23		)	1,431
Other disclosures
Depreciation on vehicles subject to operating leases	2,218		30		—			—			—			2,248
Interest expense	1,521		481		—			—			—			2,002
Provision for credit losses	94		21		—			—			—			115
Net finance receivables and net investment in operating leases	88,599		21,766		—			(4,252		)	(4,252		)	106,113
Total assets	95,491		25,725		—			—			—			121,216
First Nine Months 2013
Total revenue (b)	$	4,931	$	1,133	$	(38	)	$	—		$	(38	)	$	6,026
Income before income taxes	1,156		270		(38		)	—			(38		)	1,388
Other disclosures
Depreciation on vehicles subject to operating leases	1,641		22		—			—			—			1,663
Interest expense	1,576		480		—			—			—			2,056
Provision for credit losses	57		24		—			—			—			81
Net finance receivables and net investment in operating leases	80,236		19,174		—			(3,336		)	(3,336		)	96,074
Total assets	88,476		23,358		—			—			—			111,834

__________

(a) Includes unearned interest supplements and residual support, allowances for credit losses, and other (primarily accumulated supplemental depreciation).

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

28

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 15. COMMITMENTS AND CONTINGENCIES

Commitments and contingencies consist primarily of lease commitments, guarantees and indemnifications, and litigation and claims.

Guarantees and Indemnifications

Guarantees and indemnifications are recorded at fair value at their inception. We regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under the guarantee or indemnification, the amount of probable payment is recorded.

In some cases, we have guaranteed debt and other financial obligations of outside third parties and unconsolidated affiliates, including Ford. Expiration dates vary, and guarantees will terminate on payment and/or cancellation of the obligation. A payment by us would be triggered by failure of the guaranteed party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from Ford, an affiliate of Ford, or the third party amounts paid by us under the guarantee. However, our ability to enforce these rights is sometimes stayed until the guaranteed party is paid in full, and may be limited in the event of insolvency of the third party or other circumstances.

In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction. These indemnifications might include and are not limited to claims relating to any of the following: environmental, tax, and shareholder matters; intellectual property rights; governmental regulations and employment-related matters; dealer and other commercial contractual relationships; and financial matters, such as securitizations. Performance under these indemnities generally would be triggered by a breach of terms of the contract or by a third-party claim. While some of these indemnifications are limited in nature, many of them do not limit potential payment. Therefore, we are unable to estimate a maximum amount of future payments that could result from claims made under these unlimited indemnities.

The maximum potential payments under these guarantees and limited indemnities totaled $130 million and $100 million at September 30, 2014 and December 31, 2013, respectively. Of these values, $125 million at September 30, 2014 and $96 million at December 31, 2013, were counter-guaranteed by Ford to us. The carrying value of recorded liabilities related to guarantees and limited indemnities were $0 and de minimis at September 30, 2014 and December 31, 2013, respectively.

Litigation and Claims

Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include but are not limited to matters arising out of governmental regulations; tax matters; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer and other contractual relationships; personal injury matters; investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages in very large amounts, sanctions, assessments, or other relief, which, if granted, would require very large expenditures.

The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome.

Litigation and claims are accrued when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time.

29

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 15. COMMITMENTS AND CONTINGENCIES (Continued)

For nearly all of our matters, where our historical experience with similar matters is of limited value (i.e., “non-pattern matters”), we evaluate matters primarily based on the individual facts and circumstances. For non-pattern matters, we evaluate whether there is a reasonable possibility of a material loss in excess of any accrual that can be estimated. It is reasonably possible that some of the matters for which accruals have not been established could be decided unfavorably to us and could require us to pay damages or make other expenditures in amounts or a range of amounts that cannot be estimated at September 30, 2014. We do not reasonably expect, based on our analysis, that such matters would have a material effect on future financial statements for a particular year, although such an outcome is possible. Our estimate of reasonably possible loss in excess of our accruals for all material matters currently reflects a governmental regulation matter outside the United States, for which we estimate the aggregate risk to be a range of up to about $200 million.

As noted, the litigation process is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance. Our assessments are based on our knowledge and experience, but the ultimate outcome of any matter could require payment substantially in excess of the amount that we have accrued and/or disclosed.

30

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholder of

Ford Motor Credit Company LLC:

We have reviewed the accompanying consolidated balance sheet of Ford Motor Credit Company LLC and its subsidiaries (the “Company”) as of September 30, 2014 and December 31, 2013, and the related consolidated statements of income and comprehensive income for the three-month and nine-month periods ended September 30, 2014 and 2013 and the consolidated statements of shareholder’s interest and cash flows for the nine-month periods ended September 30, 2014 and 2013. These interim financial statements are the responsibility of the Company’s management.

We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the accompanying consolidated interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.

We previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet as of December 31, 2013, and the related consolidated statements of income, comprehensive income, shareholder’s interest, and cash flows for the year then ended (not presented herein), and in our report dated February 18, 2014, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet information as of December 31, 2013, is fairly stated in all material respects in relation to the consolidated balance sheet from which it has been derived.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Detroit, Michigan

October 31, 2014

31

ITEM 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Results of Operations

Overview

In general, we measure period-to-period changes in pre-tax profit using the causal factors listed below:

• Volume – Volume is reflected within Net financing margin on the income statement.

◦ Volume primarily measures changes in net financing margin driven by changes in average finance receivables and net investment in operating leases at prior period financing margin yield (defined below in financing margin).

◦ Volume changes are primarily driven by the volume of new and used vehicle sales and leases, the extent to which we purchase retail installment sale and lease contracts, the extent to which we provide wholesale financing, the sales price of the vehicles financed, the level of dealer inventories, Ford-sponsored special financing programs available exclusively through us, and the availability of cost-effective funding for the purchase of retail installment sale and lease contracts and to provide wholesale financing.

• Financing Margin – Financing margin is reflected within Net financing margin on the income statement.

◦ Financing margin variance is the period-to-period change in financing margin yield multiplied by the present period average receivables. Financing margin yield equals revenue, less interest expense and scheduled depreciation for the period, divided by average receivables for the same period.

◦ Financing margin changes are driven by changes in revenue and interest expense. Changes in revenue are primarily driven by the level of market interest rates, cost assumptions in pricing, mix of business, and competitive environment. Changes in interest expense are primarily driven by the level of market interest rates, borrowing spreads, and asset-liability management.

• Credit Loss – Credit loss is reflected as the Provision for credit losses on the income statement.

◦ Credit loss measures changes in the provision for credit losses. For analysis purposes, management splits the provision for credit losses primarily into net charge-offs and the change in the allowance for credit losses.

◦ Net charge-off changes are primarily driven by the number of repossessions, severity per repossession, and recoveries. Changes in the allowance for credit losses are primarily driven by changes in historical trends in credit losses and recoveries, changes in the composition and size of our present portfolio, changes in trends in historical used vehicle values, and changes in economic conditions. For additional information on the allowance for credit losses, refer to the “Critical Accounting Estimates – Allowance for Credit Losses” section of Item 7 of Part II of our 2013 Form 10-K Report.

• Lease Residual – Lease Residual is reflected within Depreciation on vehicles subject to operating leases on the income statement.

◦ Lease residual measures changes to residual performance. For analysis purposes, management splits residual performance primarily into residual gains and losses, and the change in accumulated supplemental depreciation.

◦ Residual gain and loss changes are primarily driven by the number of vehicles returned to us and sold, and the difference between the auction value and the depreciated value of the vehicles sold. Changes in accumulated supplemental depreciation are primarily driven by changes in our estimate of the number of vehicles that will be returned to us and sold, and changes in our estimate of the expected auction value at the end of the lease term. For additional information on accumulated supplemental depreciation, refer to the “Critical Accounting Estimates – Accumulated Depreciation on Vehicles Subject to Operating Leases” section of Item 7 of Part II of our 2013 Form 10-K Report.

• Other – Primarily includes Operating expenses, Other revenue, and Insurance expenses on the income statement.

◦ Changes in operating expenses are primarily driven by salaried personnel costs, facilities costs, and costs associated with the origination and servicing of customer contracts.

◦ In general, other revenue changes are primarily driven by changes in earnings related to market valuation adjustments to derivatives (primarily related to movements in interest rates), which are included in unallocated risk management, and other miscellaneous items.

32

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Third Quarter 2014 Compared with Third Quarter 2013

Our net income was $718 million in the third quarter of 2014, compared with $272 million a year ago. The increase was primarily driven by favorable tax items recorded in the third quarter. For additional information, see Note 1 of our Notes to the Financial Statements.

On a pre-tax basis we earned $498 million in the third quarter of 2014, compared with $427 million a year ago. The following chart shows the factors that contributed to the higher pre-tax profit:

(a)	Net receivables reflect net finance receivables and net investment in operating leases reported on Ford Credit’s balance sheet. The prior period was revised to conform to the presentation in our 2013 Form 10-K Report.
(b)	Managed receivables equal net receivables, excluding unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation). The prior period was revised to conform to the presentation in our 2013 Form 10-K Report.

The higher pre-tax profit for the third quarter of 2014 compared with a year ago is more than explained by higher volume. This reflects increases in nearly all financing products, including non-consumer and consumer finance receivables in all geographic segments and leasing in North America.

As shown in the memo, our pre-tax profit was higher than the second quarter, explained primarily by a lower level of insurance losses in North America, included in Other.

33

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Results of operations by business segment and unallocated risk management for the periods ended September 30 are shown below (in millions). For additional information, see Note 14 of our Notes to the Financial Statements.

	Third Quarter								First Nine Months
	2014			2013			2014 Over/(Under) 2013		2014			2013			2014 Over/(Under) 2013
Income before income taxes
North America Segment	$	374		$	358		$	16	$	1,069		$	1,156		$	(87	)
International Segment	133			91			42		385			270			115
Unallocated risk management	(9		)	(22		)	13		(23		)	(38		)	15
Income before income taxes	$	498		$	427		$	71	$	1,431		$	1,388		$	43

North America Segment

The increase in the North America Segment pre-tax profit for the third quarter of 2014 is explained primarily by higher volume, offset partially by unfavorable residual performance driven by higher residual losses, primarily reflecting lower auction values.

The decrease in the North America Segment pre-tax profit for the first nine months of 2014 is explained primarily by unfavorable residual performance and higher insurance losses from storm damage to dealer inventory. A partial offset is higher volume driven by increases in leasing and consumer finance receivables, reflecting improved Ford Credit financing share, and increases in non-consumer finance receivables, reflecting higher dealer stocks.

International Segment

The increase in the International Segment pre-tax profit for the third quarter and first nine months of 2014 is attributed to Europe, primarily explained by higher volume driven by an increase in consumer and non-consumer finance receivables.

Unallocated Risk Management

The improvement in unallocated risk management for the third quarter and first nine months of 2014 primarily reflects favorable performance in market valuation adjustments to derivatives. For additional information, see Notes 7 and 12 of our Notes to the Financial Statements.

34

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Contract Placement Volume and Financing Share

Total worldwide consumer financing contract placement volumes for new and used vehicles for the periods ended September 30 were as follows (in thousands):

	Third Quarter		First Nine Months
	2014	2013	2014	2013
North America Segment
United States	356	294	946	834
Canada	47	42	111	107
Total North America Segment	403	336	1,057	941
International Segment
Europe	119	98	351	310
Other International	33	24	99	60
Total International Segment	152	122	450	370
Total contract placement volume	555	458	1,507	1,311

Shown below are our financingshares of new Ford- and Lincoln-brand vehicles sold by dealers in the United States and new Ford-brand vehicles sold by dealers in Europe for the periods ended September 30.

Also shown below are our wholesale financing shares of new Ford- and Lincoln-brand vehicles acquired by dealers in the United States, excluding fleet, and new Ford-brand vehicles acquired by dealers in Europe for the periods ended September 30:

	Third Quarter				First Nine Months
	2014		2013		2014		2013
United States
Financing share
Retail installment and lease	53	%	44	%	46	%	39	%
Wholesale	76		77		77		77
Europe
Financing share
Retail installment and lease	38	%	34	%	36	%	34	%
Wholesale	98		98		98		98

North America Segment

The increases in total contract placement volume for the third quarter and first nine months of 2014 primarily reflect higher financing share of new Ford and Lincoln vehicles. The increases in Ford and Lincoln retail financing share for the third quarter and first nine months of 2014 primarily reflect changes in Ford’s marketing programs.

International Segment

The increases in total contract placement volume for the third quarter and first nine months of 2014 primarily reflect growth in sales of new Ford vehicles in Europe and in China, and Ford Credit’s re-entry into consumer financing in Mexico in the fourth quarter of 2013.

35

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Financial Condition

Finance Receivables and Operating Leases

Our receivables, including finance receivables and operating leases, were as follows (in billions):

	September 30, 2014			December 31, 2013
Net Receivables
Finance receivables – North America Segment
Consumer retail financing	$	43.5		$	40.9
Non-Consumer
Dealer financing (a)	21.5			22.1
Other	0.9			1.0
Total finance receivables – North America Segment (b)	65.9			64.0
Finance receivables – International Segment
Consumer retail financing	11.8			10.8
Non-Consumer
Dealer financing (a)	9.3			8.3
Other	0.3			0.4
Total finance receivables – International Segment (b)	21.4			19.5
Unearned interest supplements	(1.7		)	(1.5		)
Allowance for credit losses	(0.4		)	(0.4		)
Finance receivables, net	85.2			81.6
Net investment in operating leases (b)	20.9			18.3
Total net receivables	$	106.1		$	99.9
Managed Receivables
Total net receivables	$	106.1		$	99.9
Unearned interest supplements and residual support	3.8			3.1
Allowance for credit losses	0.4			0.4
Other, primarily accumulated supplemental depreciation	0.1			—
Total managed receivables	$	110.4		$	103.4

__________

(a) Dealer financing primarily includes wholesale loans to dealers to finance the purchase of vehicle inventory. For additional information, see Note 2 of our Notes to the Financial Statements.

(b) At September 30, 2014 and December 31, 2013, includes consumer receivables before allowance for credit losses of $24.0 billion and $27.7 billion and non-consumer receivables before allowance for credit losses of $21.1 billion and $23.9 billion, respectively, that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. In addition, at September 30, 2014 and December 31, 2013, includes net investment in operating leases before allowance for credit losses of $9.9 billion and $8.1 billion, respectively, that have been included in securitization transactions but continue to be reported in our consolidated financial statements. The receivables and net investment in operating leases are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions; they are not available to pay our other obligations or the claims of our other creditors. We hold the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. For additional information on our securitization transactions, refer to the “Securitization Transactions” and “On-Balance Sheet Arrangements” sections of Item 7 of Part II of our 2013 Form 10-K Report and Note 5 of our Notes to the Financial Statements for the period ended September 30, 2014.

Managed receivables at September 30, 2014 increased from year-end 2013, primarily driven by increases in consumer finance receivables in all geographic segments and leasing in the North America Segment.

36

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Credit Risk

Credit risk is the possibility of loss from a customer’s or dealer’s failure to make payments according to contract terms. Credit risk has a significant impact on our business. We actively manage the credit risk of our consumer (retail financing and operating lease) and non-consumer (dealer financing) receivables to balance our level of risk and return. The allowance for credit losses (also referred to as the credit loss reserve) is our estimate of the probable credit losses inherent in receivables and leases at the date of our balance sheet. The allowance for credit losses is estimated using a combination of models and management judgment, and is based on such factors as portfolio quality, historical loss performance, and receivable levels. Consistent with our normal practices and policies, we assess the adequacy of our allowance for credit losses quarterly and regularly evaluate the assumptions and models used in establishing the allowance. A description of our allowance setting process is provided in the “Critical Accounting Estimates – Allowance for Credit Losses” section of Item 7 of Part II of our 2013 Form 10-K Report.

Most of our charge-offs are related to retail finance and operating lease contracts. Charge-offs result from the number of vehicle repossessions, the unpaid balance outstanding at the time of repossession, the auction price of repossessed vehicles, and other charge-offs. We also incur credit losses on our dealer financing, but default rates for these receivables historically have been substantially lower than those for retail finance and operating lease contracts. For additional information on severity, refer to the “Critical Accounting Estimates – Allowance for Credit Losses” section of Item 7 of Part II of our 2013 Form 10-K Report.

In purchasing retail finance and operating lease contracts, we use a proprietary scoring system that classifies contracts using several factors, such as credit bureau information, consumer credit risk scores (e.g., FICO score), and contract characteristics. In addition to our proprietary scoring system, we consider other factors, such as employment history, financial stability, and capacity to pay. At September 30, 2014 and December 31, 2013, we classified between 5% and 6% of the outstanding U.S. retail finance and operating lease contracts in our portfolio as high risk at contract inception. For additional information on the quality of our receivables, see Note 2 of our Notes to the Financial Statements.

37

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Worldwide Metrics

The following charts show (i) quarterly trends of charge-offs (credit losses, net of recoveries), (ii) loss-to-receivables (“LTR”) ratios (charge-offs on an annualized basis divided by average end-of-period (“EOP”) managed receivables), (iii) credit loss reserve, and (iv) our credit loss reserve as a percentage of EOP managed receivables:

Year-over-year charge-offs were consistent, while the LTR ratio was two basis points lower than a year ago.

Our quarter-over-quarter increases in charge-offs of $15 million and the LTR ratio of five basis points are consistent with normal seasonality. The LTR ratio of 17 basis points is well below our 10-year average of 54 basis points.

The credit loss reserve was $356 million, down $12 million from a year ago, reflecting the continuation of low losses.

38

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

U.S. Ford- and Lincoln-Brand Retail Installment and Operating Lease Metrics

The following charts show the primary credit loss drivers for our U.S. Ford- and Lincoln-brand retail financing and operating lease portfolio, which comprised 72%of our worldwide consumer portfolio at September 30, 2014:

(a) Excluding bankruptcies

Ford Credit remains consistent in its origination practices.

Over-60-day delinquencies were 0.15%, down one basis point from a year ago and up three basis points from the second quarter of 2014.

Repossessions in the third quarter of 2014 were about 7,000 units, or 1.07% of average accounts outstanding, down 17 basis points from a year ago and up nine basis points from the second quarter of 2014. The increase from the second quarter of 2014 is below seasonal trends, and the 1.07% repossession ratio represents our lowest third quarter result on record.

Severity was $8,100 in the third quarter of 2014, up $600 from the same period a year ago and up $800 from the prior quarter. Both increases reflect lower auction values on repossessed vehicles, which declined about $700 more than our seasonal expectations. The declines in auction values were consistent with Manheim (a proxy for industrywide used vehicle prices) when adjusted to Ford Credit’s mix of vehicles, with reductions particularly pronounced in later-model used vehicles, which are typical of Ford Credit’s repossessions.

Third quarter 2014 charge-offs were down $3 million and the LTR ratio was down five basis points from the prior year. Both charge-offs and the LTR ratio were up from the second quarter, reflecting normal seasonality.

39

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Residual Risk

We are exposed to residual risk on operating leases and similar balloon payment products where the customer may return the financed vehicle to us. Residual risk is the possibility that the amount we obtain from returned vehicles will be less than our estimate of the expected residual value for the vehicle. We estimate the expected residual value by evaluating recent auction values, return volumes for our leased vehicles, industrywide used vehicle prices, marketing incentive plans, and vehicle quality data. Changes in expected residual values impact the depreciation expense, which is recognized on a straight-line basis over the life of the lease.

For additional information on our residual risk on operating leases, refer to the “Critical Accounting Estimates – Accumulated Depreciation on Vehicles Subject to Operating Leases” section of Item 7 of Part II of our 2013 Form 10-K Report.

U.S.Ford- and Lincoln-Brand Operating Lease Experience

The following charts show return volumes and auction values at constant third quarter 2014 vehicle mix for vehicles returned in the respective periods. The U.S. operating lease portfolio accounted for about 87% of our total net investment in operating leases at September 30, 2014.

(a) During the fourth quarter of 2013, Ford Credit changed its accounting method to include unearned operating lease interest supplements and residual support in Net Investment in Operating Leases. This period was revised to conform to the presentation in our 2013 Form 10-K Report.

Lease return volumes in the third quarter of 2014 were 17,000 units higher than the same period last year, primarily reflecting higher lease placements in 2011 and 2012 compared with prior years. The third quarter lease return rate was 75%, up six percentage points compared with the same period last year.

In the third quarter of 2014, our auction values for 24-month contracts decreased by about $950 while 36-month average auction values decreased by about $200 compared to the same period last year. The differences in 24-month and 36-month auction value performance primarily reflect differences in mix and model-year refresh timing. Both our 24-month and 36-month auction values decreased from the second quarter of 2014. The declines in our third quarter auction values reflect the same industry trends noted in the “U.S. Ford- and Lincoln-Brand Retail Installment and Operating Lease Metrics” section above. We expect our auction values to decline further in the fourth quarter, consistent with normal seasonality.

Our worldwide net investment in operating leases was $20.9 billion at the end of the third quarter of 2014, up about $2.6 billion from year-end 2013, and up $3.6 billion from a year ago.

40

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Credit Ratings

Our short-term and long-term debt is rated by four credit rating agencies designated as nationally recognized statistical rating organizations (“NRSROs”) by the U.S. Securities and Exchange Commission:

• DBRS Limited (“DBRS”);

• Fitch, Inc. (“Fitch”);

• Moody’s Investors Service, Inc. (“Moody’s”); and

• Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. (“S&P”).

In several markets, locally recognized rating agencies also rate us. A credit rating reflects an assessment by the rating agency of the credit risk associated with a corporate entity or particular securities issued by that entity. Rating agencies’ ratings of us are based on information provided by Ford, other sources, and us. Credit ratings are not recommendations to buy, sell, or hold securities, and are subject to revision or withdrawal at any time by the assigning rating agency. Each rating agency may have different criteria for evaluating company risk and, therefore, ratings should be evaluated independently for each rating agency. Lower credit ratings generally result in higher borrowing costs and reduced access to capital markets. Credit ratings assigned to us from all of the NRSROs are closely associated with their opinions on Ford.

The following chart summarizes certain of the credit ratings and outlook presently assigned by these four NRSROs:

		NRSRO RATINGS
		Ford Credit
	Long-Term Senior Unsecured		Short -Term Unsecured		Outlook / Trend
DBRS		BBB (low)		R-3		Stable
Fitch		BBB-		F3		Positive
Moody’s		Baa3		P-3		Stable
S&P (a)		BBB-		A-3		Stable

__________

(a) S&P assigns FCE bank plc (“FCE”) a long-term senior unsecured credit rating of BBB, a one-notch higher rating than Ford Credit, with a stable outlook.

41

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Funding

Our funding strategy remains focused on diversification, and we plan to continue accessing a variety of markets, channels, and investors. The following chart shows the trends in the funding for our managed receivables:

(a)	The Ford Interest Advantage program consists of our floating rate demand notes.
(b)	Obligations issued in securitization transactions that are payable only out of collections on the underlying securitized assets and related enhancements.
(c)	Excludes marketable securities related to insurance activities

At the end of the third quarter of 2014, managed receivables were $110 billion, and we ended the quarter with about $11 billion in cash. Securitized funding was 39% of managed receivables.

We are projecting 2014 year-end managed receivables of $112 billion to $115 billion and securitized funding as a percentage of managed receivables in the range of 37% to 39%. This percentage will continue to decline over time.

Public Term Funding Plan

The following table illustrates our planned issuances for full-year 2014, our public term funding issuances through October 30, 2014, and our funding issuances for full-year 2013 and 2012 (in billions), excluding short-term funding programs:

	Public Term Funding Plan
	2014
	Full-Year Forecast			Through October 30		Full-Year 2013		Full-Year 2012
Unsecured	$	11	-14	$	11	$	11	$	9
Securitizations (a)	14		-15	13		14		14
Total	$	26	-29	$	24	$	25	$	23

__________

(a) Includes Rule 144A offerings.

42

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Through October 30, 2014, we completed $24 billion of public term funding in the United States, Canada, Europe, Brazil, Mexico, and China, including about $11 billion of unsecured debt and $13 billion of securitizations.

For 2014, we project full-year public term funding in the range of $26 billion to $29 billion, consisting of $11 billion to $14 billion of unsecured debt and $14 billion to $15 billion of public securitizations.

Liquidity

We define gross liquidity as cash, cash equivalents, and marketable securities (excluding marketable securities related to insurance activities) and capacity (which includes our credit facilities and asset-backed funding facilities), less utilization of liquidity. Utilization of liquidity is the amount funded under our liquidity sources and also includes the cash and cash equivalents required to support securitization transactions. Securitization cash is cash held for the benefit of the securitization investors (for example, a reserve fund). Liquidity available for use is defined as gross liquidity less asset-backed capacity in excess of eligible receivables and cash related to FordREV which can be accessed through future sales of receivables.

The following table illustrates our liquidity programs and utilization (in billions):

	September 30, 2014			December 31, 2013
Liquidity Sources
Cash (a)	$	10.6		$	10.8
Committed ABS lines (b)	33.0			29.4
FCAR bank lines	—			3.5
FCE/Other unsecured credit facilities	1.9			1.6
Ford revolving credit facility allocation	2.0			—
Total liquidity sources	47.5			45.3
Utilization of Liquidity
Securitization cash (c)	(2.4		)	(4.4		)
Committed ABS lines	(15.7		)	(14.7		)
FCAR bank lines	—			(3.3		)
FCE/Other unsecured credit facilities	(0.7		)	(0.4		)
Ford revolving credit facility allocation	—			—
Total utilization of liquidity	(18.8		)	(22.8		)
Gross liquidity	28.7			22.5
Adjustments (d)	(1.7		)	(1.1		)
Net liquidity available for use	$	27.0		$	21.4

__________

(a) Cash, cash equivalents, and marketable securities (excludes marketable securities related to insurance activities)

(b) Committed ABS lines are subject to availability of sufficient assets and ability to obtain derivatives to manage interest rate risk.

(c) Used only to support on-balance sheet securitization transactions

(d) Adjustments include other committed ABS lines in excess of eligible receivables and certain cash within FordREV available through future sales of receivables.

At September 30, 2014, we had $47.5 billion of committed capacity and cash diversified across a variety of markets and platforms. The utilization of our liquidity totaled $18.8 billion at quarter end, compared with $22.8 billion at year-end 2013. The decrease of $4.0 billion reflects lower securitization cash and the termination of our FCAR program.

We ended the quarter with gross liquidity of $28.7 billion. Adjustments of $1.7 billion included other committed ABS lines in excess of eligible receivables and certain cash within FordREV available through future sales of receivables. Total liquidity available for use continues to remain strong at $27.0 billion at quarter end, $5.6 billion higher than year-end 2013. We are focused on maintaining liquidity levels that meet our business and funding requirements through economic cycles.

43

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Cash, Cash Equivalents, and Marketable Securities.  At September 30, 2014, our cash, cash equivalents, and marketable securities (excluding marketable securities related to insurance activities) totaled $10.6 billion, compared with $10.8 billion at year-end 2013.  In the normal course of our funding activities, we may generate more proceeds than are required for our immediate funding needs.  These excess amounts are maintained primarily as highly liquid investments, which provide liquidity for our short-term funding needs and give us flexibility in the use of our other funding programs.  Our cash, cash equivalents, and marketable securities are held primarily in highly liquid investments, which provide for anticipated and unanticipated cash needs. Our cash, cash equivalents, and marketable securities (excluding marketable securities related to insurance activities) primarily include U.S. Treasury obligations, federal agency securities, bank time deposits with investment-grade institutions and non-U.S. central banks, corporate investment-grade securities, A-1/P-1 (or higher) rated commercial paper, debt obligations of a select group of non-U.S. governments, non-U.S. government agencies, supranational institutions, and money market funds that carry the highest possible ratings. 

The maturity of these investments ranges from about 90 days to up to about one year and is adjusted based on market conditions and liquidity needs.  We monitor our cash levels and average maturity on a daily basis.  Cash, cash equivalents, and marketable securities include amounts to be used only to support our securitization transactions of $2.4 billion and $4.4 billion at September 30, 2014 and December 31, 2013, respectively.

Our substantial liquidity and cash balance have provided us the opportunity to selectively call and repurchase our unsecured and asset-backed debt through market transactions. In the third quarter and first nine months of 2014, we called an aggregate principal amount of $0 and$216 million, respectively, of our unsecured debt, none of which would have matured in 2014.

Committed Liquidity Programs. We and our subsidiaries, including FCE, have entered into agreements with a number of bank-sponsored asset-backed commercial paper conduits (“conduits”) and other financial institutions. Such counterparties are contractually committed, at our option, to purchase from us eligible retail or wholesale assets or to purchase or make advances under asset-backed securities backed by retail financing, operating leases, or wholesale financing assets for proceeds of up to $33.0 billion ($20.7 billion of retail financing, $7.0 billion of wholesale financing, and $5.3 billion of operating lease assets) at September 30, 2014, of which $5.4 billion are commitments to FCE. These committed liquidity programs have varying maturity dates, with $19.6 billion (of which $4.1 billion relates to FCE commitments) having maturities within the next 12 months and the remaining balance having maturities through 2017. We plan to achieve capacity renewals to protect our global funding needs, optimize capacity utilization, and maintain sufficient liquidity.

Our ability to obtain funding under these programs is subject to having a sufficient amount of assets eligible for these programs as well as our ability to obtain interest rate hedging arrangements for certain securitization transactions. Our capacity in excess of eligible receivables protects us against the risk of lower than planned renewal rates. At September 30, 2014, $15.7 billion of these commitments were in use. These programs are free of material adverse change clauses, restrictive financial covenants (for example, debt-to-equity limitations and minimum net worth requirements), and generally, credit rating triggers that could limit our ability to obtain funding. However, the unused portion of these commitments may be terminated if the performance of the underlying assets deteriorates beyond specified levels. Based on our experience and knowledge as servicer of the related assets, we do not expect any of these programs to be terminated due to such events.

Credit Facilities. At September 30, 2014, we and our majority-owned subsidiaries had $3.9 billion of contractually committed unsecured credit facilities with financial institutions, including the FAFC Credit Agreement (as defined below), the FCE Credit Agreement (as defined below), and the allocation under Ford’s revolving credit facility (as defined below). At September 30, 2014, $3.2 billion was available for use.

On September 29, 2014, Ford Automotive Finance (China) Ltd. (“FAFC”) entered into a RMB 2 billion (equivalent to $0.3 billion at September 30, 2014) three-year syndicated term loan credit facility (the “FAFC Credit Agreement”), which became fully drawn on October 15, 2014. The FAFC Credit Agreement contains certain covenants, including an obligation for FAFC to maintain its capital adequacy ratio and core capital adequacy ratio at no less than the applicable regulatory minimums (currently 8.5% and 5.5%, respectively) and to comply with other regulatory requirements.

44

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

FCE’s £760 million (equivalent to $1.2 billion at September 30, 2014), syndicated credit facility (the “FCE Credit Agreement”) matures in 2017. At September 30, 2014, $0.6 billion was available for use. The FCE Credit Agreement contains certain covenants, including an obligation for FCE to maintain its ratio of regulatory capital to risk-weighted assets at no less than the applicable regulatory minimum, and for the support agreement between FCE and Ford Credit to remain in full force and effect (and enforced by FCE to ensure that its net worth is maintained at no less than $500 million). In addition to customary payment, representation, bankruptcy, and judgment defaults, the FCE Credit Agreement contains cross-payment and cross-acceleration defaults with respect to other debt.

Lenders under the Ford Second Amended and Restated Credit Agreement dated as of April 30, 2014 (“Ford’s revolving credit facility”) have commitments totaling $12.2 billion, with about $9 billion maturing on April 30, 2019 and about $3 billion maturing on April 30, 2017. Ford has allocated $2 billion of commitments to us under Ford’s revolving credit facility to grow our overall liquidity, supporting growth and expanded funding programs. At September 30, 2014, all $2 billion was available for use.

Liquidity Risks

Refer to the “Liquidity” section of Item 7 of Part II of our 2013 Form 10-K Report for a list of factors that could affect our liquidity.

Leverage

We use leverage, or the debt-to-equity ratio, to make various business decisions, including evaluating and establishing pricing for finance receivable and operating lease financing, and assessing our capital structure. We refer to our shareholder’s interest as equity.

The following table shows the calculation of our financial statement leverage (in billions, except for ratios):

	September 30, 2014		December 31, 2013
Total debt (a)	$	104.0	$	98.7
Equity	11.3		10.6
Financial statement leverage (to 1)	9.2		9.3

__________

(a) Includes debt issued in securitization transactions and payable only out of collections on the underlying securitized assets and related enhancements. We hold the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions.

The following table shows the calculation of our managed leverage (in billions, except for ratios):

	September 30, 2014			December 31, 2013
Total debt (a)	$	104.0		$	98.7
Adjustments for cash, cash equivalents, and marketable securities (b)	(10.6		)	(10.8		)
Adjustments for derivative accounting (c)	(0.3		)	(0.2		)
Total adjusted debt	$	93.1		$	87.7
Equity	$	11.3		$	10.6
Adjustments for derivative accounting (c)	(0.3		)	(0.3		)
Total adjusted equity	$	11.0		$	10.3
Managed leverage (to 1) (d)	8.5			8.5

__________

(a) Includes debt issued in securitization transactions and payable only out of collections on the underlying securitized assets and related enhancements. We hold the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions.

(b) Excludes marketable securities related to insurance activities.

(c) Primarily related to market valuation adjustments to derivatives due to movements in interest rates.  Adjustments to debt are related to designated fair value hedges and adjustments to equity are related to retained earnings.

(d) Equals total adjusted debt over total adjusted equity.

45

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

We plan our managed leverage by considering prevailing market conditions and the risk characteristics of our business. At September 30, 2014, our managed leverage was 8.5:1, equal to December 31, 2013. For information on our planned distributions, refer to the “Outlook” section below.

Outlook

For the full year, we continue to expect pre-tax profit of $1.8 billion to $1.9 billion, year-end managed receivables of $112 billion to $115 billion, and managed leverage in the range of 8:1 to 9:1. We now expect distributions to our parent of about $400 million, up from prior guidance of about $250 million. This increase is primarily driven by higher net income attributable to favorable tax items recorded in the third quarter. For additional information, see Note 1 of our Notes to the Financial Statements.

46

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Risk Factors

Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptions by our management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, including, without limitation:

• Decline in industry sales volume, particularly in the United States or Europe, due to financial crisis, recession, geopolitical events, or other factors; 

• Decline in Ford’s market share or failure to achieve growth;

• Lower-than-anticipated market acceptance of Ford’s new or existing products;

• Market shift away from sales of larger, more profitable vehicles beyond Ford’s current planning assumption, particularly in the United States;

• An increase in or continued volatility of fuel prices, or reduced availability of fuel;

• Continued or increased price competition resulting from industry excess capacity, currency fluctuations, or other factors;

• Fluctuations in foreign currency exchange rates, commodity prices, and interest rates;

• Adverse effects resulting from economic, geopolitical, or other events;

• Economic distress of suppliers that may require Ford to provide substantial financial support or take other measures to ensure supplies of components or materials and could increase costs, affect liquidity, or cause production constraints or disruptions;

• Work stoppages at Ford or supplier facilities or other limitations on production (whether as a result of labor disputes, natural or man-made disasters, tight credit markets or other financial distress, production constraints or difficulties, or other factors);

• Single-source supply of components or materials;

• Labor or other constraints on Ford’s ability to maintain competitive cost structure;

• Substantial pension and postretirement health care and life insurance liabilities impairing liquidity or financial condition;

• Worse-than-assumed economic and demographic experience for postretirement benefit plans (e.g., discount rates or investment returns);

• Restriction on use of tax attributes from tax law “ownership change;”  

• The discovery of defects in vehicles resulting in delays in new model launches, recall campaigns, or increased warranty costs;

• Increased safety, emissions, fuel economy, or other regulations resulting in higher costs, cash expenditures, and/or sales restrictions;

• Unusual or significant litigation, governmental investigations, or adverse publicity arising out of alleged defects in products, perceived environmental impacts, or otherwise;

• A change in requirements under long-term supply arrangements committing Ford to purchase minimum or fixed quantities of certain parts, or to pay a minimum amount to the seller (“take-or-pay” contracts);

• Adverse effects on results from a decrease in or cessation or clawback of government incentives related to investments;

• Inherent limitations of internal controls impacting financial statements and safeguarding of assets;

• Cybersecurity risks to operational systems, security systems, or infrastructure owned by Ford, Ford Credit, or a third-party vendor or supplier;  

• Failure of financial institutions to fulfill commitments under committed credit and liquidity facilities;

• Inability of Ford Credit to access debt, securitization, or derivative markets around the world at competitive rates or in sufficient amounts, due to credit rating downgrades, market volatility, market disruption, regulatory requirements, or other factors;

• Higher-than-expected credit losses, lower-than-anticipated residual values, or higher-than-expected return volumes for leased vehicles;

• Increased competition from banks or other financial institutions seeking to increase their share of financing Ford vehicles; and

• New or increased credit, consumer, or data protection or other regulations resulting in higher costs and/or additional financing restrictions.

We cannot be certain that any expectation, forecast, or assumption made in preparing forward-looking statements will prove accurate, or that any projection will be realized.  It is to be expected that there may be differences between projected and actual results.  Our forward-looking statements speak only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events, or otherwise. For additional discussion, see “Item 1A. Risk Factors” in our 2013 Form 10-K Report, as updated by our subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

47

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Accounting Standards Issued But Not Yet Adopted

For information on accounting standards issued but not yet adopted, see Note 1 of our Notes to the Financial Statements.

Other Financial Information

The interim financial information included in this Quarterly Report on Form 10-Q for the periods ended September 30,2014 and 2013 has not been audited by PricewaterhouseCoopers LLP (“PwC”). In reviewing such information, PwC has applied limited procedures in accordance with professional standards for reviews of interim financial information. Readers should restrict reliance on PwC’s reports on such information accordingly. PwC is not subject to the liability provisions of Section 11 of the Securities Act of 1933 for its reports on interim financial information, because such reports do not constitute “reports” or “parts” of registration statements prepared or certified by PwC within the meaning of Sections 7 and 11 of the Securities Act of 1933.

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk.

In our 2013 Form 10-K Report, we discuss in greater detail our market risk, counter-party risk, credit risk, residual risk, liquidity risk, and operating risk.

To provide a quantitative measure of the sensitivity of our pre-tax cash flow to changes in interest rates, we use interest rate scenarios that assume a hypothetical, instantaneous increase or decrease of one percentage point in all interest rates across all maturities (a “parallel shift”), as well as a base case that assumes that all interest rates remain constant at existing levels. The differences in pre-tax cash flow between these scenarios and the base case over a twelve-month period represent an estimate of the sensitivity of our pre-tax cash flow. Under this model, we estimate that at September 30, 2014, all else constant, such an increase in interest rates would decrease our pre-tax cash flow by $34 million over the next 12 months, compared with an increase of $63 million at December 31, 2013. In reality, interest rate changes are rarely instantaneous or parallel and rates could move more or less than the one percentage point assumed in our analysis. As a result, the actual impact to pre-tax cash flow could be higher or lower than the results detailed above.

ITEM 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures. Bernard B. Silverstone, our Chairman of the Board and Chief Executive Officer (“CEO”), and Michael L. Seneski, our Chief Financial Officer (“CFO”) and Treasurer, have performed an evaluation of the Company’s disclosure controls and procedures, as that term is defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of September 30, 2014, and each has concluded that such disclosure controls and procedures are effective to ensure that information required to be disclosed in our periodic reports filed under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified by SEC rules and forms, and that such information is accumulated and communicated to the CEO and CFO to allow timely decisions regarding required disclosures.

Changes in Internal Control Over Financial Reporting. There were no changes in the internal control over financial reporting during the quarter ended September 30, 2014 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

48

PART II. OTHER INFORMATION

ITEM 1A. Risk Factors.

In Item 1A of our 2013 Form 10-K Report, we included the risk factor “New or increased credit, consumer, or data protection or other regulations resulting in higher costs and/or additional financing restrictions.” The following is an update to that risk factor:

In September 2014, the Consumer Financial Protection Bureau (“CFPB”) proposed supervising the largest nonbank automotive finance companies, such as Ford Credit, which is the initial step that is expected to lead to examinations of such nonbank automotive finance companies for compliance with consumer finance protection laws as early as 2015.

ITEM 5. Other Information.

We have none to report.

ITEM 6. Exhibits.

Exhibits: please refer to the Exhibit Index on page 51.

Instruments defining the rights of holders of certain issues of long-term debt of Ford Credit have not been filed as exhibits to this Report because the authorized principal amount of any one of such issues does not exceed 10% of the total assets of Ford Credit. Ford Credit will furnish a copy of each such instrument to the SEC upon request.

49

SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, Ford Motor Credit Company LLC has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

FORD MOTOR CREDIT COMPANY LLC

By:	/s/ Michael L. Seneski
	Michael L. Seneski
	Chief Financial Officer and Treasurer
Date:	October 31, 2014

50

EXHIBIT INDEX

Designation	Description	Method of Filing
Exhibit 12	Ford Motor Credit Company LLC and Subsidiaries Calculation of Ratio of Earnings to Fixed Charges.	Filed with this Report
Exhibit 15	Letter of PricewaterhouseCoopers LLP, dated October 31, 2014, relating to financial information.	Filed with this Report
Exhibit 31.1	Rule 15d-14(a) Certification of CEO.	Filed with this Report
Exhibit 31.2	Rule 15d-14(a) Certification of CFO.	Filed with this Report
Exhibit 32.1	Section 1350 Certification of CEO.	Furnished with this Report
Exhibit 32.2	Section 1350 Certification of CFO.	Furnished with this Report
Exhibit 99	Items 2 - 4 of Part I and Items 1 and 2 of Part II of Ford Motor Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014.	Incorporated herein by reference to Ford Motor Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014. File No. 1-3950.
Exhibit 101.INS	XBRL Instance Document	*
Exhibit 101.SCH	XBRL Taxonomy Extension Schema Document	*
Exhibit 101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document	*
Exhibit 101.LAB	XBRL Taxonomy Extension Label Linkbase Document	*
Exhibit 101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document	*
Exhibit 101.DEF	XBRL Taxonomy Extension Definition Linkbase Document	*

__________

* Submitted electronically with this Report in accordance with the provisions of Regulation S-T.

51

EX-12

Exhibit 12

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in millions)

	First Nine Months 2014
Earnings
Income before income taxes	$	1,431
Add/(Deduct):
Equity in net income of affiliated companies	(21		)
Dividends from affiliated companies	—
Fixed charges	2,008
Earnings	$	3,418
Fixed charges
Interest expense	$	2,002
Interest portion of rental expense (a)	6
Total fixed charges	$	2,008
Ratios
Ratio of earnings to fixed charges	1.7
__________
(a) One-third of all rental expense is deemed to be interest.

EX-15

Exhibit 15

October 31, 2014

Securities and Exchange Commission

100 F Street, N.E.

Washington DC 20549

Re: Ford Motor Credit Company LLC Registration Statement Nos. 333-194069 and 333-180342 on Form S-3

Commissioners:

We are aware that our report dated October 31, 2014 on our review of interim financial information of Ford Motor Credit Company LLC (the “Company”) for the three-month and nine-month periods ended September 30, 2014 and 2013 and included in the Company’s quarterly report on Form 10-Q for the quarter ended September 30, 2014 is incorporated by reference in the aforementioned Registration Statements.

Very truly yours,

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Detroit, Michigan

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Bernard B. Silverstone, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 of Ford Motor Credit Company LLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: October 31, 2014	/s/ Bernard B. Silverstone
	Bernard B. Silverstone
	Chairman of the Board and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Michael L. Seneski, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 of Ford Motor Credit Company LLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: October 31, 2014	/s/ Michael L. Seneski
	Michael L. Seneski
	Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Bernard B. Silverstone, Chairman of the Board and Chief Executive Officer of Ford Motor Credit Company LLC (the “Company”), hereby certify pursuant to Rule 15d-14(b) of the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of the United States Code, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1. the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014, to which this statement is furnished as an exhibit (the “Report”), fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: October 31, 2014	/s/ Bernard B. Silverstone
	Bernard B. Silverstone
	Chairman of the Board and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Michael L. Seneski, Chief Financial Officer and Treasurer of Ford Motor Credit Company LLC (the “Company”), hereby certify pursuant to Rule 15d-14(b) of the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of the United States Code, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1. the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014, to which this statement is furnished as an exhibit (the “Report”), fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: October 31, 2014	/s/ Michael L. Seneski
	Michael L. Seneski
	Chief Financial Officer and Treasurer

XML

Allowance for Credit Losses (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Total allowance
Beginning balance	$ 353	$ 376	$ 380	$ 408
Charge-offs	(98)	(93)	(289)	(273)
Recoveries	50	46	156	149
Provision for Loan and Lease Losses	57	32	115	81
Other	(6)	7	(6)	3
Ending balance	356	368	356	368
Analysis of Ending Balance of Finance Receivables and Net Investment in Operating Leases [Abstract]
Collective impairment allowance	333	344	333	344
Specific impairment allowance	23	24	23	24
Ending balance	356	368	356	368
Allowance for credit losses, finance receivables
Beginning balance	327	353	357	385
Charge-offs	(70)	(76)	(207)	(226)
Recoveries	35	35	109	114
Provision for credit losses	39	31	72	73
Other	(6)	6	(6)	3
Ending balance	325	349	325	349
Analysis of ending balance of allowance for credit losses, finance receivables
Collective impairment allowance	302	325	302	325
Specific impairment allowance	23	24	23	24
Ending balance	325	349	325	349
Analysis of ending balance of finance receivables
Collectively evaluated for impairment	84,965	78,593	84,965	78,593
Specifically evaluated for impairment	557	482	557	482
Financing Receivables	85,522	79,075	85,522	79,075	81,993
Ending balance, net of allowance for credit losses	85,197	78,726	85,197	78,726	81,636
Allowance for credit losses, net investment in operating leases
Beginning balance	26	23	23	23
Charge-offs	(28)	(17)	(82)	(47)
Recoveries	15	11	47	35
Other	0	1	0	0
Ending balance	31	19	31	19
Analysis of ending balance of allowance for credit losses, net investment in operating leases
Collective impairment allowance	31	19	31	19
Specific impairment allowance	0	0	0	0
Ending balance	31	19	31	19
Analysis of ending balance of net investment in operating leases
Collectively evaluated for impairment	20,947	17,367	20,947	17,367
Individually evaluated for impairment	0	0	0	0
Net investment in operating leases before allowance for credit losses	20,947	17,367	20,947	17,367	18,300
Ending balance, net investment in operating leases	20,916	17,348	20,916	17,348	18,277
Consumer Portfolio Segment [Member]
Allowance for credit losses, finance receivables
Beginning balance	303	322	327	356
Charge-offs	(68)	(73)	(200)	(213)
Recoveries	33	34	101	110
Provision for credit losses	42	32	82	65
Other	(5)	5	(5)	2
Ending balance	305	320	305	320
Analysis of ending balance of allowance for credit losses, finance receivables
Collective impairment allowance	283	298	283	298
Specific impairment allowance	22	22	22	22
Ending balance	305	320	305	320
Analysis of ending balance of finance receivables
Collectively evaluated for impairment	53,150	48,897	53,150	48,897
Specifically evaluated for impairment	421	424	421	424
Financing Receivables	53,571	49,321	53,571	49,321
Ending balance, net of allowance for credit losses	53,266	49,001	53,266	49,001
Commercial Portfolio Segment [Member]
Allowance for credit losses, finance receivables
Beginning balance	24	31	30	29
Charge-offs	(2)	(3)	(7)	(13)
Recoveries	2	1	8	4
Provision for credit losses	(3)	(1)	(10)	8
Other	(1)	1	(1)	1
Ending balance	20	29	20	29
Analysis of ending balance of allowance for credit losses, finance receivables
Collective impairment allowance	19	27	19	27
Specific impairment allowance	1	2	1	2
Ending balance	20	29	20	29
Analysis of ending balance of finance receivables
Collectively evaluated for impairment	31,815	29,696	31,815	29,696
Specifically evaluated for impairment	136	58	136	58
Financing Receivables	31,951	29,754	31,951	29,754
Ending balance, net of allowance for credit losses	31,931	29,725	31,931	29,725
Net Investment in Operating Leases [Member]
Allowance for credit losses, finance receivables
Provision for credit losses	$ 18	$ 1	$ 43	$ 8

XML

Acquisitions and Divestitures Acquisitions (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Business Acquisition [Line Items]
Other comprehensive income/(loss), net of tax	$ (335)	$ 176	$ (332)	$ (62)
Acquisition Value Of Assets Acquired				713
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax	(335)	176	(332)	(62)
Shareholder's Interest [Member]
Business Acquisition [Line Items]
Other comprehensive income/(loss), net of tax			0	(60)
Accumulated Translation Adjustment [Member]
Business Acquisition [Line Items]
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax				$ 60

XML

Debt with Affiliated Companies (Details) (Affiliated Entity [Member], USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Affiliated Entity [Member]
Debt Instrument [Line Items]
Other short-term debt	$ 17	$ 27
Notes payable within one year	318	4
Notes payable after one year	6	307
Debt with affiliated companies	$ 341	$ 338

XML

Segment Information (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Segment Reporting Information [Line Items]
Total revenue	$ 2,312	$ 2,083	$ 6,705	$ 6,026
Income before income taxes	498	427	1,431	1,388
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases	801	629	2,248	1,663
Interest expense	663	691	2,002	2,056
Provision for credit losses (Note 4)	57	32	115	81
Net finance receivables and net investment in operating leases	106,113	96,074	106,113	96,074
Total assets	121,216	111,834	121,216	111,834	115,608
Adjustment to Receivables [Member]
Segment Reporting Information [Line Items]
Total revenue			0	0
Income before income taxes			0	0
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases			0	0
Interest expense			0	0
Provision for credit losses (Note 4)			0	0
Net finance receivables and net investment in operating leases	(4,252)	(3,336)	(4,252)	(3,336)
Total assets	0	0	0	0
North America Segment [Member]
Segment Reporting Information [Line Items]
Total revenue	1,883	1,711	5,470	4,931
Income before income taxes	374	358	1,069	1,156
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases	791	621	2,218	1,641
Interest expense	498	536	1,521	1,576
Provision for credit losses (Note 4)	48	31	94	57
Net finance receivables and net investment in operating leases	88,599	80,236	88,599	80,236
Total assets	95,491	88,476	95,491	88,476
International Segment [Member]
Segment Reporting Information [Line Items]
Total revenue	438	394	1,258	1,133
Income before income taxes	133	91	385	270
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases	10	8	30	22
Interest expense	165	155	481	480
Provision for credit losses (Note 4)	9	1	21	24
Net finance receivables and net investment in operating leases	21,766	19,174	21,766	19,174
Total assets	25,725	23,358	25,725	23,358
Unallocated Risk Management [Member]
Segment Reporting Information [Line Items]
Total revenue	(9)	(22)	(23)	(38)
Income before income taxes	(9)	(22)	(23)	(38)
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases	0	0	0	0
Interest expense	0	0	0	0
Provision for credit losses (Note 4)	0	0	0	0
Net finance receivables and net investment in operating leases	0	0	0	0
Total assets	0	0	0	0
Effect of Unearned Interest Supplements [Member]
Segment Reporting Information [Line Items]
Total revenue	0	0
Income before income taxes	0	0
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases	0	0
Interest expense	0	0
Provision for credit losses (Note 4)	0	0
Total Unallocated/Eliminations [Member]
Segment Reporting Information [Line Items]
Total revenue	(9)	(22)	(23)	(38)
Income before income taxes	(9)	(22)	(23)	(38)
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases	0	0	0	0
Interest expense	0	0	0	0
Provision for credit losses (Note 4)	0	0	0	0
Net finance receivables and net investment in operating leases	(4,252)	(3,336)	(4,252)	(3,336)
Total assets	$ 0	$ 0	$ 0	$ 0

XML

Other Assets and Other Liabilities and Deferred Income (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Schedule of Other Assets and Liabilities [Line Items]
Securities Purchased under Agreements to Resell, Gross	$ 4	$ 227
Other Assets [Abstract]
Accrued interest and other non-finance receivables	821	1,010
Collateral held for resale, at net realizable value	367	399
Restricted cash	93	169
Deferred charges	270	252
Deferred charges - income taxes	178	184
Prepaid reinsurance premiums and other reinsurance receivables	389	340
Investment in non-consolidated affiliates	139	133
Property and equipment, net of accumulated depreciation	117	120
Other	54	59
Total other assets	2,428	2,666
Accumulated depreciation	324	343
Other Liabilities and Deferred Income [Abstract]
Interest payable	620	615
Tax Related payables to Ford and affiliated companies	726	941
Unrecognized Tax Benefits, Other Liabilities	88	101
Unearned insurance premiums	399	350
Other	481	515
Total other liabilities and deferred income	2,314	2,522
Ford Motor Company [Member]
Other Liabilities and Deferred Income [Abstract]
Taxes paid to Ford Motor Company	$ 262	$ 288

XML

Segment Information (Tables)

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

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			Adjustment to Receivables (a)		Total Unallocated/Eliminations			Total
Third Quarter 2014
Total revenue (b)	$	1,883	$	438	$	(9	)	$	—	$	(9	)	$	2,312
Income before income taxes	374		133		(9		)	—		(9		)	498
Other disclosures
Depreciation on vehicles subject to operating leases	791		10		—			—		—			801
Interest expense	498		165		—			—		—			663
Provision for credit losses	48		9		—			—		—			57
Third Quarter 2013
Total revenue (b)	$	1,711	$	394	$	(22	)	$	—	$	(22	)	$	2,083
Income before income taxes	358		91		(22		)	—		(22		)	427
Other disclosures
Depreciation on vehicles subject to operating leases	621		8		—			—		—			629
Interest expense	536		155		—			—		—			691
Provision for credit losses	31		1		—			—		—			32

__________

(a) Includes unearned interest supplements and residual support, allowances for credit losses, and other (primarily accumulated supplemental depreciation).

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

NOTE 14. SEGMENT INFORMATION (Continued)

					Unallocated/Eliminations
	North America Segment		International Segment		Unallocated Risk Management			Adjustment to Receivables (a)			Total Unallocated/Eliminations			Total
First Nine Months 2014
Total revenue (b)	$	5,470	$	1,258	$	(23	)	$	—		$	(23	)	$	6,705
Income before income taxes	1,069		385		(23		)	—			(23		)	1,431
Other disclosures
Depreciation on vehicles subject to operating leases	2,218		30		—			—			—			2,248
Interest expense	1,521		481		—			—			—			2,002
Provision for credit losses	94		21		—			—			—			115
Net finance receivables and net investment in operating leases	88,599		21,766		—			(4,252		)	(4,252		)	106,113
Total assets	95,491		25,725		—			—			—			121,216
First Nine Months 2013
Total revenue (b)	$	4,931	$	1,133	$	(38	)	$	—		$	(38	)	$	6,026
Income before income taxes	1,156		270		(38		)	—			(38		)	1,388
Other disclosures
Depreciation on vehicles subject to operating leases	1,641		22		—			—			—			1,663
Interest expense	1,576		480		—			—			—			2,056
Provision for credit losses	57		24		—			—			—			81
Net finance receivables and net investment in operating leases	80,236		19,174		—			(3,336		)	(3,336		)	96,074
Total assets	88,476		23,358		—			—			—			111,834

__________

(a) Includes unearned interest supplements and residual support, allowances for credit losses, and other (primarily accumulated supplemental depreciation).

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

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Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2014

Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]

Allowance for Credit Losses on Financing and Loans and Leases Receivable [Table Text Block]

n 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) was as follows:

	Third Quarter 2014
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	303		$	24		$	327		$	26		$	353
Charge-offs	(68		)	(2		)	(70		)	(28		)	(98		)
Recoveries	33			2			35			15			50
Provision for credit losses	42			(3		)	39			18			57
Other (a)	(5		)	(1		)	(6		)	—			(6		)
Ending balance	$	305		$	20		$	325		$	31		$	356

	First Nine Months 2014
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	327		$	30		$	357		$	23		$	380
Charge-offs	(200		)	(7		)	(207		)	(82		)	(289		)
Recoveries	101			8			109			47			156
Provision for credit losses	82			(10		)	72			43			115
Other (a)	(5		)	(1		)	(6		)	—			(6		)
Ending balance	$	305		$	20		$	325		$	31		$	356
Analysis of ending balance of allowance for credit losses
Collective impairment allowance	$	283		$	19		$	302		$	31		$	333
Specific impairment allowance	22			1			23			—			23
Ending balance	305			20			325			31			$	356
Analysis of ending balance of finance receivables and net investment in operating leases
Collectively evaluated for impairment	53,150			31,815			84,965			20,947
Specifically evaluated for impairment	421			136			557			—
Recorded investment	53,571			31,951			85,522			20,947
Ending balance, net of allowance for credit losses	$	53,266		$	31,931		$	85,197		$	20,916

__________

(a) Primarily represents amounts related to translation adjustments.

NOTE 4. ALLOWANCE FOR CREDIT LOSSES (Continued)

	Third Quarter 2013
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	322		$	31		$	353		$	23		$	376
Charge-offs	(73		)	(3		)	(76		)	(17		)	(93		)
Recoveries	34			1			35			11			46
Provision for credit losses	32			(1		)	31			1			32
Other (a)	5			1			6			1			7
Ending balance	$	320		$	29		$	349		$	19		$	368

	First Nine Months 2013
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	356		$	29		$	385		$	23		$	408
Charge-offs	(213		)	(13		)	(226		)	(47		)	(273		)
Recoveries	110			4			114			35			149
Provision for credit losses	65			8			73			8			81
Other (a)	2			1			3			—			3
Ending balance	$	320		$	29		$	349		$	19		$	368
Analysis of ending balance of allowance for credit losses
Collective impairment allowance	$	298		$	27		$	325		$	19		$	344
Specific impairment allowance	22			2			24			—			24
Ending balance	320			29			349			19			$	368
Analysis of ending balance of finance receivables and net investment in operating leases
Collectively evaluated for impairment	48,897			29,696			78,593			17,367
Specifically evaluated for impairment	424			58			482			—
Recorded investment	49,321			29,754			79,075			17,367
Ending balance, net of allowance for credit losses	$	49,001		$	29,725		$	78,726		$	17,348

__________

(a) Primarily represents amounts related to translation adjustments.

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Debt Maturities (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Debt Maturities [Abstract]
Debt maturities - 2014	$ 14,284
Debt maturities - 2015	28,311
Debt maturities - 2016	22,250
Debt maturities - 2017	17,412
Debt maturities 2018	6,717
Debt maturities - Thereafter	14,806
DebtAndCapitalLeaseObligationTotal	103,780
Total unamortized discount	(57)	(87)
Total fair value adjustments	228	103
Total debt	103,951	98,693
Unsecured Debt [Member]
Debt Maturities [Abstract]
Debt maturities - 2014	9,848
Debt maturities - 2015	11,413
Debt maturities - 2016	10,385
Debt maturities - 2017	10,696
Debt maturities 2018	5,958
Debt maturities - Thereafter	12,747
Total debt	61,047
Asset-backed Securities [Member]
Debt Maturities [Abstract]
Debt maturities - 2014	4,436
Debt maturities - 2015	16,898
Debt maturities - 2016	11,865
Debt maturities - 2017	6,716
Debt maturities 2018	759
Debt maturities - Thereafter	2,059
Total debt	42,733
Short-term debt [Member]
Debt Maturities [Abstract]
Debt maturities - 2014	9,575
Debt maturities - 2015	2,578
Long-term debt [Member]
Debt Maturities [Abstract]
Debt maturities - 2014	4,709
Debt maturities - 2015	25,733
Unsecured Debt Maturing Primarily by 2024 [Member]
Debt Maturities [Abstract]
Debt maturities - Thereafter	$ 12,731

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Transfers of Receivables - Exposure Based on Fair Value of Derivative Instruments (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Securitization Transactions [Line Items]
Fair Value of Derivative Assets	$ 751	$ 585
Fair Value of Derivative Liabilities	291	506
Variable Interest Entity, Primary Beneficiary [Member]
Securitization Transactions [Line Items]
Fair Value of Derivative Assets	13	5
Fair Value of Derivative Liabilities	18	88
Securitization Transactions [Member]
Securitization Transactions [Line Items]
Fair Value of Derivative Assets	35	33
Fair Value of Derivative Liabilities	30	125
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member]
Securitization Transactions [Line Items]
Fair Value of Derivative Assets	13	5
Fair Value of Derivative Liabilities	18	88
Related to Variable Interest Entity - Not VIE [Member] | Securitization Transactions [Member]
Securitization Transactions [Line Items]
Fair Value of Derivative Assets	15	23
Fair Value of Derivative Liabilities	10	30
Other, Not Variable Interest Entity Related [Member] | Securitization Transactions [Member]
Securitization Transactions [Line Items]
Fair Value of Derivative Assets	7	5
Fair Value of Derivative Liabilities	$ 2	$ 7

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Finance Receivables - Credit Quality,Impaired Receivables, TDRs and Non-Accrual Status (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	$ 85,522	$ 81,993	$ 79,075
Number of Days Past Due After Which Consumer Receivables are Considered Impaired	greater than 120 days past due
Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	31,951	31,796
Impaired Financing Receivable, Recorded Investment	136	71
Impaired Financing Receivable Recorded Investment, Percentage of Receivable	0.40%	0.20%
Commercial Portfolio Segment [Member] | Dealer Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	30,755	30,371
Consumer Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	53,571	50,197
Impaired Financing Receivable, Recorded Investment	421	435
Impaired Financing Receivable Recorded Investment, Percentage of Receivable	0.80%	0.90%
North America Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	64,395	62,836
North America Segment [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	22,369	23,189
North America Segment [Member] | Commercial Portfolio Segment [Member] | Dealer Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	21,495	22,139
North America Segment [Member] | Consumer Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	42,026	39,647
International Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	21,127	19,157
International Segment [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	9,582	8,607
International Segment [Member] | Commercial Portfolio Segment [Member] | Dealer Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	9,260	8,232
International Segment [Member] | Consumer Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	11,545	10,550
Minimum [Member] | Consumer Portfolio Segment [Member] | Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Days At Which Finance Receivables Are Put in Non Accrual Status	120 days
Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Term, in days, for credit quality rating	current to 60 days past due
Special Mention [Member] | Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance Receivables Credit Quality Ratings Term Range	61 days
Special Mention [Member] | Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance Receivables Credit Quality Ratings Term Range	120 days
Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Term, in days, for credit quality rating	greater than 120 days past due
Group I | Commercial Portfolio Segment [Member] | Dealer Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	23,066	23,874
Group I | North America Segment [Member] | Commercial Portfolio Segment [Member] | Dealer Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	18,260	18,424
Group I | International Segment [Member] | Commercial Portfolio Segment [Member] | Dealer Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	4,806	5,450
Group II | Commercial Portfolio Segment [Member] | Dealer Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	6,024	5,381
Group II | North America Segment [Member] | Commercial Portfolio Segment [Member] | Dealer Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	2,951	3,289
Group II | International Segment [Member] | Commercial Portfolio Segment [Member] | Dealer Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	3,073	2,092
Group III | Commercial Portfolio Segment [Member] | Dealer Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	1,554	1,073
Group III | North America Segment [Member] | Commercial Portfolio Segment [Member] | Dealer Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	256	424
Group III | International Segment [Member] | Commercial Portfolio Segment [Member] | Dealer Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	1,298	649
Group IV | Commercial Portfolio Segment [Member] | Dealer Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	111	43
Group IV | North America Segment [Member] | Commercial Portfolio Segment [Member] | Dealer Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	28	2
Group IV | International Segment [Member] | Commercial Portfolio Segment [Member] | Dealer Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	$ 83	$ 41

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Other Income (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Component of Other Income, Nonoperating [Line Items]
Derivative, Gain (Loss) on Derivative, Net	$ 158	$ (207)	$ 95	$ (62)
Foreign Currency Transaction Gain (Loss), Realized	(170)	188	(132)	17
Investment Income, Net	12	18	41	38
Unrecognized Tax Benefits Interest Income/(expense)	1	0	(10)	0
Insurance Fee Income	16	16	57	46
Other Nonoperating Income (Expense)	50	66	133	165
Other Income/(Loss) Net	$ 67	$ 81	$ 184	$ 204

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Debt (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Average Contractual (interest rate)	2.70%	2.80%
Average Effective (interest rate)	2.80%	3.00%
Unamortized discount	$ (57,000,000)	$ (87,000,000)
Fair value adjustments	228,000,000	103,000,000
Total debt	103,951,000,000	98,693,000,000
Accrued interest included in fair value of debt	617,000,000	618,000,000
Fair value of debt	106,544,000,000	101,866,000,000
Fair value of short-term debt	10,800,000,000	9,700,000,000
Asset-backed commercial paper [Member]
Debt Instrument [Line Items]
Average Contractual (interest rate)	0.00%	0.20%
Total short-term debt	0	3,364,000,000
Floating Rate Demand Notes [Member]
Debt Instrument [Line Items]
Average Contractual (interest rate)	1.10%	1.10%
Total short-term debt	5,689,000,000	5,319,000,000
Other asset-backed short-term debt [Member]
Debt Instrument [Line Items]
Average Contractual (interest rate)	0.60%	0.70%
Total short-term debt	1,375,000,000	1,963,000,000
Unsecured commercial paper [Member]
Debt Instrument [Line Items]
Average Contractual (interest rate)	0.70%	0.90%
Total short-term debt	2,137,000,000	2,003,000,000
Other short-term debt [Member]
Debt Instrument [Line Items]
Average Contractual (interest rate)	5.00%	5.30%
Total short-term debt	2,952,000,000	2,372,000,000
Total short-term debt [Member]
Debt Instrument [Line Items]
Average Contractual (interest rate)	1.90%	1.50%
Average Effective (interest rate)	1.90%	1.50%
Total short-term debt	12,153,000,000	15,021,000,000
Senior indebtedness [Member]
Debt Instrument [Line Items]
Notes payable within one year	9,679,000,000	4,479,000,000
Notes payable after one year	40,590,000,000	38,617,000,000
Asset-backed debt [Member]
Debt Instrument [Line Items]
Notes payable within one year	16,561,000,000	17,322,000,000
Notes payable after one year	24,797,000,000	23,238,000,000
Total long-term debt [Member]
Debt Instrument [Line Items]
Average Contractual (interest rate)	2.80%	3.00%
Average Effective (interest rate)	2.90%	3.20%
Total long-term debt	$ 91,798,000,000	$ 83,672,000,000

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Net Investments in Operating Leases

9 Months Ended

Sep. 30, 2014

Leases, Operating [Abstract]

NET INVESTMENT IN OPERATING LEASES

NET INVESTMENT IN OPERATING LEASES

Net investment in operating leases consist primarily of lease contracts for vehicles with retail customers, daily rental companies, government entities, and fleet customers with terms of 60 months or less.

Net investment in operating leases were as follows (in millions):

	September 30, 2014			December 31, 2013
Vehicles, at cost, including acquisition costs	$	24,220		$	21,092
Less: Accumulated depreciation	(3,273		)	(2,792		)
Net investment in operating leases before allowance for credit losses (a)	20,947			18,300
Less: Allowance for credit losses	(31		)	(23		)
Net investment in operating leases	$	20,916		$	18,277

__________

(a) At September 30, 2014 and December 31, 2013, includes net investment in operating leases of $9.9 billion and $8.1 billion, respectively, that have been included in securitization transactions but continue to be reported in our consolidated financial statements. These net investment in operating leases are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions; they are not available to pay our other obligations or the claims of our other creditors. We hold the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. See Note 5 for additional information.

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Transfers of Receivables - Derivative Income and Expense (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Derivative expense/(income) related to securitization transactions [Abstract]
Derivative expense/(income)	$ 158	$ (207)	$ 95	$ (62)
Securitization Transactions [Member]
Derivative expense/(income) related to securitization transactions [Abstract]
Derivative expense/(income)	(36)	78	(3)	(6)
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member]
Derivative expense/(income) related to securitization transactions [Abstract]
Derivative expense/(income)	(22)	73	(4)	(20)
Related to Variable Interest Entity - Not VIE [Member] | Securitization Transactions [Member]
Derivative expense/(income) related to securitization transactions [Abstract]
Derivative expense/(income)	(10)	(2)	(10)	8
Other, Not Variable Interest Entity Related [Member] | Securitization Transactions [Member]
Derivative expense/(income) related to securitization transactions [Abstract]
Derivative expense/(income)	$ (4)	$ 7	$ 11	$ 6

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Debt (Tables)

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

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

	Interest Rates
	Average Contractual				Average Effective				Debt
	2014		2013		2014		2013		September 30, 2014			December 31, 2013
Short-term debt
Asset-backed commercial paper	—		0.2	%					$	—		$	3,364
Floating rate demand notes	1.1	%	1.1	%					5,689			5,319
Other asset-backed short-term debt	0.6	%	0.7	%					1,375			1,963
Commercial paper	0.7	%	0.9	%					2,137			2,003
Other short-term debt	5.0	%	5.3	%					2,952			2,372
Total short-term debt	1.9	%	1.5	%	1.9	%	1.5	%	12,153			15,021
Long-term debt
Unsecured debt
Notes payable within one year									9,679			4,479
Notes payable after one year									40,590			38,617
Asset-backed debt
Notes payable within one year									16,561			17,322
Notes payable after one year									24,797			23,238
Unamortized discount									(57		)	(87		)
Fair value adjustments									228			103
Total long-term debt	2.8	%	3.0	%	2.9	%	3.2	%	91,798			83,672
Total debt	2.7	%	2.8	%	2.8	%	3.0	%	$	103,951		$	98,693
Fair value of debt									$	106,544		$	101,866

Schedule of Debt with Affilated Companies [Table Text Block]

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

	September 30, 2014		December 31, 2013
Other short-term debt	$	17	$	27
Notes payable within one year	318		4
Notes payable after one year	6		307
Total debt with affiliated companies	$	341	$	338

Schedule of Maturities of Long-term Debt [Table Text Block]

Debt Maturities. Short-term and long-term debt matures at various dates through 2048. At September 30, 2014, maturities were as follows (in millions):

	2014 (a)		2015 (b)		2016		2017		2018		Thereafter (c)		Total
Unsecured debt	$	9,848	$	11,413	$	10,385	$	10,696	$	5,958	$	12,747	$	61,047
Asset-backed debt	4,436		16,898		11,865		6,716		759		2,059		42,733
Total	14,284		28,311		22,250		17,412		6,717		14,806		103,780
Unamortized (discount)/premium													(57		)
Fair value adjustments													228
Total debt													$	103,951

__________

(a) Includes $9,575 million for short-term and $4,709 million for long-term debt.

(b) Includes $2,578 million for short-term and $25,733 million for long-term debt.

(c) Includes $12,731 million of unsecured debt maturing between 2019 and 2024 with the remaining balance maturing after 2031.

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Other Assets and Other Liabilities and Deferred Income (Tables)

9 Months Ended

Sep. 30, 2014

Other Assets and Other Liabilities and Deferred Income [Abstract]

Schedule of Other Assets and Other Liabilities [Table Text Block]

Other assets were as follows (in millions):

	September 30, 2014		December 31, 2013
Accrued interest and other non-finance receivables (a)	$	821	$	1,010
Collateral held for resale, at net realizable value	367		399
Restricted cash (b)	93		169
Deferred charges	270		252
Deferred charges – income taxes	178		184
Prepaid reinsurance premiums and other reinsurance receivables	389		340
Investment in non-consolidated affiliates	139		133
Property and equipment, net of accumulated depreciation (c)	117		120
Other	54		59
Total other assets	$	2,428	$	2,666

__________

(a) Includes the gross value of repurchase agreements where we are the transferee of $4 million and $227 million at September 30, 2014 and December 31, 2013, respectively.  The gross value of the offsetting liabilities are reported in Customer deposits, dealer reserves, and other on our balance sheet.

(b) Restricted cash primarily includes cash held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of certain contractual agreements. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions.

(c) Accumulated depreciation was $324 million and $343 million at September 30, 2014 and December 31, 2013, respectively.

Other liabilities and deferred income were as follows (in millions):

	September 30, 2014		December 31, 2013
Interest payable	$	620	$	615
Tax related payables to Ford and affiliated companies	726		941
Unrecognized tax benefits	88		101
Unearned insurance premiums	399		350
Other	481		515
Total other liabilities and deferred income	$	2,314	$	2,522

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Commitments and Contingencies (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Guarantor Obligations [Line Items]
Loss Contingency, Range of Possible Loss, Portion Not Accrued	$ 200
Guarantor Obligations, Current Carrying Value	0
Financial Guarantee [Member]
Guarantor Obligations [Line Items]
Maximum potential payments	130	100
Counter Guarantee [Member] | Ford Motor Company [Member]
Guarantor Obligations [Line Items]
Counter guarantee	$ 125	$ 96

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Variable Interest Entities (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Cash contribution for collateral to support Wholesale Securitization Program	$ 0	$ 0
Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Total maximum exposure	68	72
Minimum [Member] | Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Cash contribution for collateral to support Wholesale Securitization Program	0
Maximum [Member] | Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Cash contribution for collateral to support Wholesale Securitization Program	$ 242

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Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2014

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The changes in the accumulated balance of AOCI for the periods ended September 30 were as follows (in millions):

	Third Quarter					First Nine Months
	2014			2013		2014			2013
Foreign currency translation
Beginning balance	$	720		$	505	$	717		$	743
Net gain/(loss) on foreign currency translation	(335		)	176		(332		)	(62		)
Reclassifications from shareholder’s interest (a)	—			60		—			60
Other comprehensive income/(loss), net of tax	(335		)	236		(332		)	(2		)
Ending balance	$	385		$	741	$	385		$	741
Total AOCI ending balance at September 30	$	385		$	741	$	385		$	741

__________

(a) See Note 13 for additional information regarding the reclassification.

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Other Income (Tables)

9 Months Ended

Sep. 30, 2014

Other Income and Expenses [Abstract]

Schedule of Other Income [Table Text Block]

The amounts included in Other income, net were as follows for the periods ended September 30 (in millions):

	Third Quarter						First Nine Months
	2014			2013			2014			2013
Gains/(Losses) on derivatives (a)	$	158		$	(207	)	$	95		$	(62	)
Currency revaluation gains/(losses) (a)	(170		)	188			(132		)	17
Interest and investment income	12			18			41			38
Interest income/(expense) on income taxes	1			—			(10		)	—
Insurance fee income	16			16			57			46
Other	50			66			133			165
Total other income, net	$	67		$	81		$	184		$	204

__________

(a) Currency revaluation gains/(losses) primarily related to foreign denominated debt were mostly offset by gains/(losses) on derivatives. See Note 7 for detail by derivative instrument and risk type.

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Finance Receivables

9 Months Ended

Sep. 30, 2014

Receivables [Abstract]

Financing Receivables

FINANCE RECEIVABLES

We segment our North America and International portfolio of finance receivables into “consumer” and “non-consumer” receivables. The receivables are generally secured by the vehicles, inventory, or other property being financed.

Consumer Segment. Receivables in this portfolio segment include products offered to individuals and businesses that finance the acquisition of Ford and Lincoln vehicles from dealers for personal or commercial use. Retail financing includes retail installment contracts for new and used vehicles and direct financing leases with retail customers, government entities, daily rental companies, and fleet customers.

Non-Consumer Segment. Receivables in this portfolio segment include products offered to automotive dealers and receivables purchased from Ford and its affiliates. The products include:

• Dealer financing – includes wholesaleloans to dealers to finance the purchase of vehicle inventory, also known as floorplan financing, as well as loans to dealers to finance working capital and improvements to dealership facilities, finance the purchase of dealership real estate, and finance other dealer programs. Wholesale financing is approximately 94% of our dealer financing.

• Other – purchased receivables from Ford and its affiliates, primarily related to the sale of parts and accessories to dealers, receivables from Ford related loans, and certain used vehicles from daily rental fleet companies. These receivables are excluded from our credit quality reporting since the performance of this group of receivables is generally guaranteed by Ford.

Notes and accounts receivable from affiliated companies are presented separately on the balance sheet. These receivables are based on intercompany relationships and the balances are settled regularly. We do not assess these receivables for potential credit losses, nor are they subjected to aging analysis, credit quality reviews, or other formal assessments. As a result, Notes and accounts receivable from affiliated companies are not subject to the following disclosures contained herein.

NOTE 2. FINANCE RECEIVABLES (Continued)

Finance Receivables, Net

Finance receivables, net were as follows (in millions):

	September 30, 2014									December 31, 2013
	North America			International			Total Finance Receivables			North America			International			Total Finance Receivables
Consumer
Retail financing, gross (a)	$	43,537		$	11,784		$	55,321		$	40,902		$	10,797		$	51,699
Less:  Unearned interest supplements (b)	(1,511		)	(239		)	(1,750		)	(1,255		)	(247		)	(1,502		)
Consumer finance receivables	42,026			11,545			53,571			39,647			10,550			50,197
Non-Consumer
Dealer financing (a)(c)	21,495			9,260			30,755			22,139			8,232			30,371
Other	874			322			1,196			1,050			375			1,425
Non-Consumer finance receivables	22,369			9,582			31,951			23,189			8,607			31,796
Total recorded investment	$	64,395		$	21,127		$	85,522		$	62,836		$	19,157		$	81,993
Recorded investment in finance receivables (d)	$	64,395		$	21,127		$	85,522		$	62,836		$	19,157		$	81,993
Less:  Allowance for credit losses (e)	(256		)	(69		)	(325		)	(280		)	(77		)	(357		)
Finance receivables, net	$	64,139		$	21,058		$	85,197		$	62,556		$	19,080		$	81,636
Net finance receivables subject to fair value (f)							$	83,529								$	79,969
Fair Value							85,180									81,658

__________

(a) At September 30, 2014 and December 31, 2013, includes North America consumer receivables of $19.3 billion and $21.8 billion and non-consumer receivables of $17.3 billion and $18.9 billion, respectively, and International consumer receivables of $4.7 billion and $5.9 billion and non-consumer receivables of $3.8 billion and $5.0 billion, respectively, that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. The receivables are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions; they are not available to pay our other obligations or the claims of our other creditors. We hold the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. See Note 5 for additional information.

(b) Ford-sponsored special financing programs attributable to retail financing.

(c) At September 30, 2014 and December 31, 2013, includes $41 million and $67 million, respectively, of North America dealer financing receivables with entities (primarily dealers) that are reported as consolidated subsidiaries of Ford. At September 30, 2014 and December 31, 2013, includes $494 million and $399 million, respectively, of International dealer financing receivables with entities (primarily dealers) that are reported as consolidated subsidiaries of Ford. The associated vehicles that are being financed by us are reported as inventory on Ford’s balance sheet.

(d) At September 30, 2014 and December 31, 2013, excludes $185 million and $196 million, respectively, of accrued uncollected interest, which we report in Other assets on our balance sheet.

(e) See Note 4 for additional information related to our allowance for credit losses.

(f) At September 30, 2014 and December 31, 2013, excludes $1.7 billion and $1.7 billion, respectively, of certain receivables (primarily direct financing leases) that are not subject to fair value disclosure requirements.

NOTE 2. FINANCE RECEIVABLES (Continued)

Aging

For all finance receivables, we define “past due” as any payment, including principal and interest, that is at least 31 days past the contractual due date. The recorded investment of consumer receivables greater than 90 days past due and still accruing interest was $15 million and $14 millionat September 30, 2014andDecember 31,2013, respectively. The recorded investment of non-consumer receivables greater than 90 days past due and still accruing interest was $3 million and $21 million at September 30, 2014 and December 31, 2013, respectively.

The aging analysis of finance receivables balances was as follows (in millions):

	September 30, 2014						December 31, 2013
	North America		International		Total		North America		International		Total
Consumer
31-60 days past due	$	583	$	41	$	624	$	715	$	39	$	754
61-90 days past due	70		19		89		88		17		105
91-120 days past due	17		9		26		18		9		27
Greater than 120 days past due	40		22		62		37		26		63
Total past due	710		91		801		858		91		949
Current	41,316		11,454		52,770		38,789		10,459		49,248
Consumer finance receivables	42,026		11,545		53,571		39,647		10,550		50,197
Non-Consumer
Total past due	3		92		95		49		40		89
Current	22,366		9,490		31,856		23,140		8,567		31,707
Non-Consumer finance receivables	22,369		9,582		31,951		23,189		8,607		31,796
Total recorded investment	$	64,395	$	21,127	$	85,522	$	62,836	$	19,157	$	81,993

Credit Quality

Consumer Segment. When originating all classes of consumer receivables, we use a proprietary scoring system that measures the credit quality of the receivables using several factors, such as credit bureau information, consumer credit risk scores (e.g., FICO score), and contract characteristics. In addition to our proprietary scoring system, we consider other individual consumer factors, such as employment history, financial stability, and capacity to pay.

Subsequent to origination, we review the credit quality of retail financing based on customer payment activity. As each customer develops a payment history, we use an internally-developed behavioral scoring model to assist in determining the best collection strategies which allows us to focus collection activity on higher-risk accounts. These models are used to refine our risk-based staffing model to ensure collection resources are aligned with portfolio risk. Based on data from this scoring model, contracts are categorized by collection risk. Our collection models evaluate several factors, including origination characteristics, updated credit bureau data, and payment patterns.

Credit quality ratings for consumer receivables are based on our aging analysis. Refer to the aging table above. Consumer receivables credit quality ratings are as follows:

• Pass – current to 60 days past due

• Special Mention – 61 to 120 days past due and in intensified collection status

• Substandard – greater than 120 days past due and for which the uncollectible portion of the receivables has already been charged-off, as measured using the fair value of collateral

NOTE 2. FINANCE RECEIVABLES (Continued)

Non-Consumer Segment. We extend credit to dealers primarily in the form of lines of credit to purchase new Ford and Lincoln vehicles as well as used vehicles. Payment is required when the dealer has sold the vehicle. Each non-consumer lending request is evaluated by taking into consideration the borrower’s financial condition and the underlying collateral securing the loan. We use a proprietary model to assign each dealer a risk rating. This model uses historical dealer performance data to identify key factors about a dealer that we consider most significant in predicting a dealer’s ability to meet its financial obligations. We also consider numerous other financial and qualitative factors of the dealer’s operations including capitalization and leverage, liquidity and cash flow, profitability, and credit history with ourselves and other creditors. A dealer’s risk rating does not reflect any guarantees or a dealer owner’s net worth.

Dealers are assigned to one of four groups according to risk ratings as follows:

• Group I – strong to superior financial metrics

• Group II – fair to favorable financial metrics

• Group III – marginal to weak financial metrics

• Group IV – poor financial metrics, including dealers classified as uncollectible

We suspend credit lines and extend no further funding to dealers classified in Group IV.

We regularly review our model to confirm the continued business significance and statistical predictability of the factors and update the model to incorporate new factors or other information that improves its statistical predictability. In addition, we regularly audit dealer inventory and dealer sales records to verify that the dealer is in possession of the financed vehicles and is promptly paying each receivable following the sale of the financed vehicle. The frequency of on-site vehicle inventory audits depends on factors such as the dealer’s risk rating and our security position. Under our policies, on-site vehicle inventory audits of low-risk dealers are conducted only as circumstances warrant. Audits of higher-risk dealers are conducted with increased frequency based on risk ratings and our security position. We perform a credit review of each dealer at least annually and adjust the dealer’s risk rating, if necessary.

The credit quality of dealer financing receivables is evaluated based on our internal dealer risk rating analysis. A dealer has the same risk rating for its entire dealer financing regardless of the type of financing.

The credit quality analysis of our dealer financing receivables was as follows (in millions):

	September 30, 2014						December 31, 2013
	North America		International		Total		North America		International		Total
Dealer financing
Group I	$	18,260	$	4,806	$	23,066	$	18,424	$	5,450	$	23,874
Group II	2,951		3,073		6,024		3,289		2,092		5,381
Group III	256		1,298		1,554		424		649		1,073
Group IV	28		83		111		2		41		43
Total recorded investment	$	21,495	$	9,260	$	30,755	$	22,139	$	8,232	$	30,371

NOTE 2. FINANCE RECEIVABLES (Continued)

Impaired Receivables

Impaired consumer receivables include accounts that have been rewritten or modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code that are considered to be Troubled Debt Restructurings (“TDRs”), as well as all accounts greater than 120 days past due. Impaired non-consumer receivables represent accounts with dealers that have weak or poor financial metrics or dealer financing that has been modified in TDRs. The recorded investment of consumer receivables that were impaired at September 30, 2014 and December 31, 2013 was $421 million, or 0.8% of consumer receivables, and $435 million, or 0.9% of consumer receivables, respectively. The recorded investment of non-consumer receivables that were impaired at September 30, 2014 and December 31, 2013 was $136 million, or 0.4% of non-consumer receivables, and $71 million, or 0.2% of non-consumer receivables, respectively. Impaired finance receivables are evaluated both collectively and specifically. See Note 4 for additional information related to the development of our allowance for credit losses.

The accrual of revenue is discontinued at the time a receivable is determined to be uncollectible. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance.

A restructuring of debt constitutes a TDR if we grant a concession to a debtor for economic or legal reasons related to the debtor’s financial difficulties that we otherwise would not consider. Consumer and non-consumer receivables that have a modified interest rate below market rate or that were modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code, except non-consumer receivables that are current with minimal risk of loss, are considered to be TDRs. We do not grant concessions on the principal balance of our receivables. If a receivable is modified in a reorganization proceeding, all payment requirements of the reorganization plan need to be met before remaining balances are forgiven.

Finance receivables involved in TDRs are specifically assessed for impairment.

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

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, none of which are Level 3 (in millions):

	September 30, 2014						December 31, 2013
	Level 1		Level 2		Total		Level 1		Level 2		Total
Assets
Cash equivalents-financial instruments
U.S. government	$	40	$	—	$	40	$	—	$	—	$	—
Corporate debt	—		60		60		—		—		—
Non-U.S. government and agencies	—		341		341		—		24		24
Total cash equivalents-financial instruments (a)	40		401		441		—		24		24
Marketable securities
U.S. government and agencies	341		1,222		1,563		418		25		443
Non-U.S. government and agencies	—		644		644		—		184		184
Corporate debt	—		1,525		1,525		—		1,273		1,273
Other marketable securities	—		35		35		—		43		43
Total marketable securities	341		3,426		3,767		418		1,525		1,943
Derivative financial instruments (b)	—		751		751		—		585		585
Total assets at fair value	$	381	$	4,578	$	4,959	$	418	$	2,134	$	2,552
Liabilities
Derivative financial instruments (b)	$	—	$	291	$	291	$	—	$	506	$	506
Total liabilities at fair value	$	—	$	291	$	291	$	—	$	506	$	506

__________

(a) Excludes time deposits, certificates of deposit, and money market accounts reported at par value on our balance sheet totaling $4.2 billion and $6.6 billion at September 30, 2014 and December 31, 2013, respectively. In addition to these cash equivalents, we also had cash on hand totaling $2.7 billion and $2.8 billion at September 30, 2014 and December 31, 2013, respectively.

(b) See Note 7 for additional information regarding derivative financial instruments.

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Transfers of Receivables - Assets and Liabilities of Securitizations (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
Securitization Transactions [Line Items]
Cash and cash equivalents	$ 7,329,000,000		$ 9,424,000,000	$ 9,045,000,000		$ 9,189,000,000
Financing and Loans and Leases Receivable Allowance	356,000,000	353,000,000	380,000,000	368,000,000	376,000,000	408,000,000
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses	106,113,000,000			96,074,000,000
Related Debt	103,951,000,000		98,693,000,000
Variable Interest Entity, Primary Beneficiary [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	2,022,000,000		4,198,000,000
Related Debt	35,869,000,000		40,728,000,000
Securitization Transactions [Member] | Consolidated Entity Including Variable Interest Entities (VIE) [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	2,400,000,000		4,400,000,000
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses	55,000,000,000		59,700,000,000
Financing and Loans and Leases Receivable Allowance	100,000,000		200,000,000
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses	54,900,000,000		59,500,000,000
Related Debt	42,700,000,000		45,900,000,000
Securitization Transactions [Member] | Consolidated Entity Including Variable Interest Entities (VIE) [Member] | Financing Receivable [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	2,000,000,000		4,000,000,000
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses	45,100,000,000		51,600,000,000
Financing and Loans and Leases Receivable Allowance	100,000,000		200,000,000
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses	45,000,000,000		51,400,000,000
Related Debt	35,700,000,000		40,300,000,000
Securitization Transactions [Member] | Consolidated Entity Including Variable Interest Entities (VIE) [Member] | Retail [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	1,700,000,000		2,100,000,000
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses	24,000,000,000		27,700,000,000
Financing and Loans and Leases Receivable Allowance	100,000,000		200,000,000
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses	23,900,000,000		27,500,000,000
Related Debt	21,700,000,000		24,700,000,000
Securitization Transactions [Member] | Consolidated Entity Including Variable Interest Entities (VIE) [Member] | Wholesale [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	300,000,000		1,900,000,000
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses	21,100,000,000		23,900,000,000
Financing and Loans and Leases Receivable Allowance	0		0
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses	21,100,000,000		23,900,000,000
Related Debt	14,000,000,000		15,600,000,000
Securitization Transactions [Member] | Consolidated Entity Including Variable Interest Entities (VIE) [Member] | Net Investment in Operating Leases [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	400,000,000		400,000,000
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses	9,900,000,000		8,100,000,000
Financing and Loans and Leases Receivable Allowance	0		0
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses	9,900,000,000		8,100,000,000
Related Debt	7,000,000,000		5,600,000,000
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	2,000,000,000		4,200,000,000
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses	47,600,000,000		54,100,000,000
Financing and Loans and Leases Receivable Allowance	100,000,000		200,000,000
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses	47,500,000,000		53,900,000,000
Related Debt	35,900,000,000		40,700,000,000
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Financing Receivable [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	1,600,000,000		3,800,000,000
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses	37,700,000,000		46,000,000,000
Financing and Loans and Leases Receivable Allowance	100,000,000		200,000,000
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses	37,600,000,000		45,800,000,000
Related Debt	28,900,000,000		35,100,000,000
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Retail [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	1,300,000,000		1,900,000,000
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses	17,600,000,000		23,100,000,000
Financing and Loans and Leases Receivable Allowance	100,000,000		200,000,000
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses	17,500,000,000		22,900,000,000
Related Debt	15,800,000,000		20,300,000,000
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Wholesale [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	300,000,000		1,900,000,000
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses	20,100,000,000		22,900,000,000
Financing and Loans and Leases Receivable Allowance	0		0
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses	20,100,000,000		22,900,000,000
Related Debt	13,100,000,000		14,800,000,000
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Net Investment in Operating Leases [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	400,000,000		400,000,000
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses	9,900,000,000		8,100,000,000
Financing and Loans and Leases Receivable Allowance	0		0
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses	9,900,000,000		8,100,000,000
Related Debt	7,000,000,000		5,600,000,000
Securitization Transactions [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	400,000,000		200,000,000
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses	7,400,000,000		5,600,000,000
Financing and Loans and Leases Receivable Allowance	0		0
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses	7,400,000,000		5,600,000,000
Related Debt	6,800,000,000		5,200,000,000
Securitization Transactions [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Financing Receivable [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	400,000,000		200,000,000
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses	7,400,000,000		5,600,000,000
Financing and Loans and Leases Receivable Allowance	0		0
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses	7,400,000,000		5,600,000,000
Related Debt	6,800,000,000		5,200,000,000
Securitization Transactions [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Retail [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	400,000,000		200,000,000
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses	6,400,000,000		4,600,000,000
Financing and Loans and Leases Receivable Allowance	0		0
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses	6,400,000,000		4,600,000,000
Related Debt	5,900,000,000		4,400,000,000
Securitization Transactions [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Wholesale [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	0		0
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses	1,000,000,000		1,000,000,000
Financing and Loans and Leases Receivable Allowance	0		0
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses	1,000,000,000		1,000,000,000
Related Debt	900,000,000		800,000,000
Securitization Transactions [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Net Investment in Operating Leases [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	0		0
Finance Receivables & Net Investment in Operating Leases, Before Allowance for Credit Losses	0		0
Financing and Loans and Leases Receivable Allowance	0		0
Finance Receivables & Net Investment In Operating Leases, After Allowance for Credit Losses	0		0
Related Debt	$ 0		$ 0

XML

Fair Value Measurements (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair Value of Derivative Assets	$ 751,000,000	$ 585,000,000
Fair Value of Derivative Liabilities	291,000,000	506,000,000
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents - financial instruments	441,000,000	24,000,000
Marketable securities	3,767,000,000	1,943,000,000
Fair Value of Derivative Assets	751,000,000	585,000,000
Total assets at fair value	4,959,000,000	2,552,000,000
Fair Value of Derivative Liabilities	291,000,000	506,000,000
Total liabilities at fair value	291,000,000	506,000,000
Fair Value, Measurements, Recurring [Member] | Cash Equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Par value assets excluded from fair value by input	4,200,000,000	6,600,000,000
Fair Value, Measurements, Recurring [Member] | Cash [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Par value assets excluded from fair value by input	2,700,000,000	2,800,000,000
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents - financial instruments	40,000,000	0
Fair Value, Measurements, Recurring [Member] | Corporate debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents - financial instruments	60,000,000	0
Marketable securities	1,525,000,000	1,273,000,000
Fair Value, Measurements, Recurring [Member] | Other Marketable Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Marketable securities	35,000,000	43,000,000
Fair Value, Measurements, Recurring [Member] | Foreign Government and Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents - financial instruments	341,000,000	24,000,000
Marketable securities	644,000,000	184,000,000
Fair Value, Measurements, Recurring [Member] | US Treasury and Government [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Marketable securities	1,563,000,000	443,000,000
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents - financial instruments	40,000,000	0
Marketable securities	341,000,000	418,000,000
Fair Value of Derivative Assets	0	0
Total assets at fair value	381,000,000	418,000,000
Fair Value of Derivative Liabilities	0	0
Total liabilities at fair value	0	0
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents - financial instruments	40,000,000	0
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Corporate debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents - financial instruments	0	0
Marketable securities	0	0
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Other Marketable Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Marketable securities	0	0
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Foreign Government and Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents - financial instruments	0	0
Marketable securities	0	0
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | US Treasury and Government [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Marketable securities	341,000,000	418,000,000
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents - financial instruments	401,000,000	24,000,000
Marketable securities	3,426,000,000	1,525,000,000
Fair Value of Derivative Assets	751,000,000	585,000,000
Total assets at fair value	4,578,000,000	2,134,000,000
Fair Value of Derivative Liabilities	291,000,000	506,000,000
Total liabilities at fair value	291,000,000	506,000,000
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents - financial instruments	0	0
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Corporate debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents - financial instruments	60,000,000	0
Marketable securities	1,525,000,000	1,273,000,000
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Other Marketable Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Marketable securities	35,000,000	43,000,000
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Foreign Government and Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash equivalents - financial instruments	341,000,000	24,000,000
Marketable securities	644,000,000	184,000,000
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | US Treasury and Government [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Marketable securities	$ 1,222,000,000	$ 25,000,000

XML

Consolidated Income Statement (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Financing revenue
Operating leases	$ 1,062	$ 888	$ 3,029	$ 2,460
Retail Financing	708	702	2,095	2,079
Dealer Financing	424	360	1,241	1,123
Other	20	24	62	73
Total financing revenue	2,214	1,974	6,427	5,735
Depreciation on vehicles subject to operating leases	(801)	(629)	(2,248)	(1,663)
Interest expense	(663)	(691)	(2,002)	(2,056)
Net financing margin	750	654	2,177	2,016
Other revenue
Insurance premiums earned	31	28	94	87
Other income, net (Note 11)	67	81	184	204
Total financing margin and other revenue	848	763	2,455	2,307
Expenses
Operating expenses	276	289	807	779
Provision for credit losses (Note 4)	57	32	115	81
Insurance expenses	17	15	102	59
Total expenses	350	336	1,024	919
Income before income taxes	498	427	1,431	1,388
Provision for/(Benefit from) income taxes	(220)	155	137	477
Net income	$ 718	$ 272	$ 1,294	$ 911

XML

Derivative Financial Instruments and Hedging Activities (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Income Effect of Derivative Financial Instruments [Abstract]
Derivative, Gain (Loss) on Derivative, Net	$ 158	$ (207)	$ 95	$ (62)
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Notional	84,387		84,387		93,671
Fair Value of Derivative Assets	751		751		585
Fair Value of Derivative Liabilities	291		291		506
Counterparty Risk [Abstract]
Derivative asset instruments, increase/(decrease) in adjustment for non-performance risk	(2)		(2)		2
Derivative liability instruments, increase/(decrease) in adjustment for non-performance risk	(9)		(9)		(25)
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	(242)		(242)		(296)
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	(242)		(242)		(296)
Derivative Asset	509		509		289
Derivative Liability	49		49		210
Not Designated as Hedging Instrument [Member]
Income Effect of Derivative Financial Instruments [Abstract]
Derivative, Gain (Loss) on Derivative, Net	160	(204)	87	(29)
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Notional	61,444		61,444		74,893
Fair Value of Derivative Assets	327		327		225
Fair Value of Derivative Liabilities	134		134		327
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member]
Income Effect of Derivative Financial Instruments [Abstract]
Derivative, Gain (Loss) on Derivative, Net	(10)	(18)	(37)	(20)
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Notional	56,607		56,607		69,863
Fair Value of Derivative Assets	254		254		224
Fair Value of Derivative Liabilities	78		78		126
Interest Rate Contract [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments	(88)	67	179	(501)
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge	86	(70)	(171)	468
Income Effect of Derivative Financial Instruments [Abstract]
Net interest settlements and accruals excluded from the assessment of hedge effectiveness	79	63	220	186
Ineffectiveness	(2)	(3)	8	(33)
Derivative, Gain (Loss) on Derivative, Net	77	60	228	153
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Notional	22,943		22,943		18,778
Fair Value of Derivative Assets	424		424		360
Fair Value of Derivative Liabilities	157		157		179
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Income Effect of Derivative Financial Instruments [Abstract]
Derivative, Gain (Loss) on Derivative, Net	52	(55)	22	28
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Notional	2,324		2,324		2,410
Fair Value of Derivative Assets	56		56		1
Fair Value of Derivative Liabilities	12		12		25
Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member]
Income Effect of Derivative Financial Instruments [Abstract]
Derivative, Gain (Loss) on Derivative, Net	118	(131)	102	(37)
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Notional	2,513		2,513		2,620
Fair Value of Derivative Assets	17		17		0
Fair Value of Derivative Liabilities	$ 44		$ 44		$ 176

XML

Consolidated Statement of Cash Flows (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities
Net income	$ 1,294	$ 911
Adjustments to reconcile net income/(loss) to net cash provided by operations
Provision for credit losses (Note 4)	115	81
Depreciation and amortization	2,842	2,251
Amortization of upfront interest supplements	(756)	(741)
Net change in deferred income taxes	2	67
Net change in other assets	222	(293)
Net change in other liabilities	13	1,183
All other operating activities	43	(219)
Net cash provided by/(used in) operating activities	3,775	3,240
Cash flows from investing activities
Purchases of finance receivables (excluding wholesale and other)	(27,082)	(23,761)
Collections of finance receivables (excluding wholesale and other)	22,755	21,596
Purchases of operating lease vehicles	(9,815)	(8,637)
Liquidations of operating lease vehicles	4,849	3,171
Net change in wholesale receivables and other	(589)	(1,241)
Net change in notes receivable from affiliated companies	30	18
Purchases of marketable securities	(10,952)	(25,143)
Proceeds from sales and maturities of marketable securities	9,092	24,818
Settlements of derivatives	(161)	25
All other investing activities	54	(11)
Net cash provided by/(used in) investing activities	(11,819)	(9,165)
Cash flows from financing activities
Proceeds from issuances of long-term debt	30,951	26,770
Principal payments on long-term debt	(21,630)	(18,188)
Change in short-term debt, net	(2,822)	(2,717)
Cash distributions to parent	(244)	(56)
All other financing activities	(86)	(10)
Net cash provided by/(used in) financing activities	6,169	5,799
Effect of exchange rate changes on cash and cash equivalents	(220)	(18)
Net increase/(decrease) in cash and cash equivalents	(2,095)	(144)
Cash and cash equivalents at January 1	9,424	9,189
Net increase/(decrease) in cash and cash equivalents	(2,095)	(144)
Cash and cash equivalents at September 30	$ 7,329	$ 9,045

XML

Finance Receivables Net (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Wholesale Loans Percentage of Dealer Financing	94.00%
Net Finance Receivables [Abstract]
Financing Receivables	$ 85,522,000,000		$ 81,993,000,000	$ 79,075,000,000
Less: Allowance for credit losses	(325,000,000)	(327,000,000)	(357,000,000)	(349,000,000)	(353,000,000)	(385,000,000)
Finance receivables, net	85,197,000,000		81,636,000,000	78,726,000,000
Net finance receivables subject to fair value	83,529,000,000		79,969,000,000
Fair value	85,180,000,000		81,658,000,000
Finance receivables not subject to fair value	1,700,000,000		1,700,000,000
Other Assets on Statement of Financial Position [Member]
Net Finance Receivables [Abstract]
Uncollected interest receivable excluded from finance receivable	185,000,000		196,000,000
Consumer Portfolio Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivables	53,571,000,000		50,197,000,000
Consumer Portfolio Segment [Member] | Retail [Member]
Net Finance Receivables [Abstract]
Finance receivables before unearned interest supplements	55,321,000,000		51,699,000,000
Less: Unearned interest supplements	(1,750,000,000)		(1,502,000,000)
Commercial Portfolio Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivables	31,951,000,000		31,796,000,000
Commercial Portfolio Segment [Member] | Dealer Financing [Member]
Net Finance Receivables [Abstract]
Financing Receivables	30,755,000,000		30,371,000,000
Commercial Portfolio Segment [Member] | Other [Member]
Net Finance Receivables [Abstract]
Financing Receivables	1,196,000,000		1,425,000,000
North America Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivables	64,395,000,000		62,836,000,000
Less: Allowance for credit losses	(256,000,000)		(280,000,000)
Finance receivables, net	64,139,000,000		62,556,000,000
North America Segment [Member] | Consumer Portfolio Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivables	42,026,000,000		39,647,000,000
North America Segment [Member] | Consumer Portfolio Segment [Member] | Retail [Member]
Net Finance Receivables [Abstract]
Finance receivables before unearned interest supplements	43,537,000,000		40,902,000,000
Less: Unearned interest supplements	(1,511,000,000)		(1,255,000,000)
North America Segment [Member] | Commercial Portfolio Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivables	22,369,000,000		23,189,000,000
North America Segment [Member] | Commercial Portfolio Segment [Member] | Dealer Financing [Member]
Net Finance Receivables [Abstract]
Financing Receivables	21,495,000,000		22,139,000,000
North America Segment [Member] | Commercial Portfolio Segment [Member] | Wholesale [Member] | Subsidiary of Common Parent [Member]
Net Finance Receivables [Abstract]
Financing Receivables	41,000,000		67,000,000
North America Segment [Member] | Commercial Portfolio Segment [Member] | Other [Member]
Net Finance Receivables [Abstract]
Financing Receivables	874,000,000		1,050,000,000
International Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivables	21,127,000,000		19,157,000,000
Less: Allowance for credit losses	(69,000,000)		(77,000,000)
Finance receivables, net	21,058,000,000		19,080,000,000
International Segment [Member] | Consumer Portfolio Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivables	11,545,000,000		10,550,000,000
International Segment [Member] | Consumer Portfolio Segment [Member] | Retail [Member]
Net Finance Receivables [Abstract]
Finance receivables before unearned interest supplements	11,784,000,000		10,797,000,000
Less: Unearned interest supplements	(239,000,000)		(247,000,000)
International Segment [Member] | Commercial Portfolio Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivables	9,582,000,000		8,607,000,000
International Segment [Member] | Commercial Portfolio Segment [Member] | Dealer Financing [Member]
Net Finance Receivables [Abstract]
Financing Receivables	9,260,000,000		8,232,000,000
International Segment [Member] | Commercial Portfolio Segment [Member] | Wholesale [Member] | Subsidiary of Common Parent [Member]
Net Finance Receivables [Abstract]
Financing Receivables	494,000,000		399,000,000
International Segment [Member] | Commercial Portfolio Segment [Member] | Other [Member]
Net Finance Receivables [Abstract]
Financing Receivables	322,000,000		375,000,000
Securitization Transactions [Member] | North America Segment [Member] | Consumer Portfolio Segment [Member]
Net Finance Receivables [Abstract]
Amount of finance receivables that secure certain debt obligations	19,300,000,000		21,800,000,000
Securitization Transactions [Member] | North America Segment [Member] | Commercial Portfolio Segment [Member]
Net Finance Receivables [Abstract]
Amount of finance receivables that secure certain debt obligations	17,300,000,000		18,900,000,000
Securitization Transactions [Member] | International Segment [Member] | Consumer Portfolio Segment [Member]
Net Finance Receivables [Abstract]
Amount of finance receivables that secure certain debt obligations	4,700,000,000		5,900,000,000
Securitization Transactions [Member] | International Segment [Member] | Commercial Portfolio Segment [Member]
Net Finance Receivables [Abstract]
Amount of finance receivables that secure certain debt obligations	$ 3,800,000,000		$ 5,000,000,000

XML

Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Segment Reporting, Policy [Policy Text Block]

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 they 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. Receivables for the North America and International Segments are presented on a managed basis. Management believes that managed receivables is the appropriate measurement of business growth, as it closely approximates the customers’ outstanding balance on the receivables, which is the basis for earning revenue.

Basis of Accounting and Intercompany Transactions [Abstract]

Basis of Accounting and Intercompany Transactions [Policy Text Block]

The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information, and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X.

Reclassifications [Abstract]

Comparability of Prior Year Financial Data, Policy [Policy Text Block]

We reclassified certainprior period amounts in our consolidated financial statements to conform to the presentation in our 2013 Form 10-K Report.

Lease Policy [Abstract]

Lease, Policy [Policy Text Block]

Net investment in operating leases consist primarily of lease contracts for vehicles with retail customers, daily rental companies, government entities, and fleet customers with terms of 60 months or less.

Loans and Leases Receivable Disclosure [Abstract]

Finance, Loans and Leases Receivable, Policy [Policy Text Block]

Impaired Receivables

Impaired consumer receivables include accounts that have been rewritten or modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code that are considered to be Troubled Debt Restructurings (“TDRs”), as well as all accounts greater than 120 days past due. Impaired non-consumer receivables represent accounts with dealers that have weak or poor financial metrics or dealer financing that has been modified in TDRs.

Aging

For all finance receivables, we define “past due” as any payment, including principal and interest, that is at least 31 days past the contractual due date

A restructuring of debt constitutes a TDR if we grant a concession to a debtor for economic or legal reasons related to the debtor’s financial difficulties that we otherwise would not consider. Consumer and non-consumer receivables that have a modified interest rate below market rate or that were modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code, except non-consumer receivables that are current with minimal risk of loss, are considered to be TDRs. We do not grant concessions on the principal balance of our receivables. If a receivable is modified in a reorganization proceeding, all payment requirements of the reorganization plan need to be met before remaining balances are forgiven.

Finance receivables involved in TDRs are specifically assessed for impairment.

The accrual of revenue is discontinued at the time a receivable is determined to be uncollectible. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance.

Variable Interest Entities [Abstract]

Consolidation, Variable Interest Entity, Policy [Policy Text Block]

A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. Nearly all of our VIEs are special purpose entities used for our securitizations.

We have the power to direct the activities of our special purpose entities when we have the ability to exercise discretion in the servicing of financial assets, issue additional debt, exercise a unilateral call option, add assets to revolving structures, or control investment decisions.

Assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims against our general assets. Conversely, liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIEs.

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives, Policy [Policy Text Block]

Derivative assets and derivative liabilities are recorded in Derivative financial instruments on our balance sheet at fair value and presented on a gross basis.

We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Cash flows and the profit impact associated with designated hedges are reported in the same category as the underlying hedged item.

Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting. Regardless, we only enter into transactions that we believe will be highly effective at offsetting the underlying economic risk. We report net interest settlements and accruals and changes in the fair value of derivatives not designated as hedging instruments in Other income, net. Cash flows associated with non-designated or de-designated derivatives are reported in Net cash provided by/(used in) investing activities in our statement of cash flows.

Fair Value Hedges. We use derivatives to reduce the risk of changes in the fair value of debt. We have designated certain receive-fixed, pay-float interest rate swaps as fair value hedges of fixed-rate debt. The risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark interest rate. If the hedge relationship is deemed to be highly effective, we record the changes in the fair value of the hedged debt related to the risk being hedged in Debt with the offset in Other income, net. The change in fair value of the related derivative (excluding accrued interest) also is recorded in Other income, net.

Net interest settlements and accruals on fair value hedges are excluded from the assessment of hedge effectiveness. We report net interest settlements and accruals in Interest expense.We report foreign currency revaluation on accrued interest in Other income, net. The cash flows associated with fair value hedges are reported in Net cash provided by/(used in) operating activities in our statement of cash flows.

Hedge ineffectiveness is the difference between the change in fair value of the derivative instrument and the change in fair value of the hedged item attributable to changes in the benchmark interest rate. Ineffectiveness is recorded directly to income.

When a fair value hedge is de-designated, or when the derivative is terminated before maturity, the fair value adjustment to the hedged debt continues to be reported as part of the carrying value of the debt and is amortized over its remaining life.

Income Tax Disclosure [Abstract]

Income Tax, Policy [Policy Text Block]

For interim tax reporting we estimate one single effective tax rate, which is applied to the year-to-date ordinary income/(loss). Tax effects of significant unusual or extraordinary items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.

During the third quarter of 2014, we completed a study that led to a change in our methodology for measuring currency gains and losses in computing the earnings of our European operations under U.S. tax law.  Implementation of the new methodology substantially reduced the accumulated earnings of those operations under U.S. tax law and resulted in a tax benefit of $364 million in the third quarter from the realization of additional foreign tax credits.  As a result of the reduction in accumulated tax earnings of our European operations, our measure of earnings indefinitely reinvested in operations outside the United States is substantially reduced as it is based on accumulated earnings determined under U.S. tax law.  Our cash repatriation plans remain unchanged.

Debt Disclosure [Abstract]

Debt, Policy [Policy Text Block]

Debt is recorded on our balance sheet at par value adjusted for unamortized discount or premium (with the exception of fair value adjustments related to debt in designated hedge relationships; see Note 7 for further policy information). Debt due within one year at issuance is classified as short-term. Debt due after one year at issuance is classified as long-term. Discounts, premiums, and costs directly related to the issuance of debt generally are capitalized and amortized over the life of the debt or put date and recorded in Interest expense using the effective interest method. Gains and losses on the extinguishment of debt are recorded in Other income, net.

Commitments and Contingencies Disclosure [Abstract]

Guarantees and Indemnifications Policies [Policy Text Block]

Guarantees and indemnifications are recorded at fair value at their inception. We regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under the guarantee or indemnification, the amount of probable payment is recorded.

Litigation and claims are accrued when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time.

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Finance Receivables - Aging Analysis (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number Of Days After Which Finance Receivable Is Considered Past Due	any payment, including principal and interest, that is at least 31 days past the contractual due date
Finance Receivables Aging Analysis [Abstract]
Financing Receivables	$ 85,522	$ 81,993	$ 79,075
International Segment [Member]
Finance Receivables Aging Analysis [Abstract]
Financing Receivables	21,127	19,157
North America Segment [Member]
Finance Receivables Aging Analysis [Abstract]
Financing Receivables	64,395	62,836
Consumer Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	15	14
Finance Receivables Aging Analysis [Abstract]
31-60 days past due	624	754
61-90 days past due	89	105
91-120 days past due	26	27
Greater than 120 days past due	62	63
Total past due	801	949
Current	52,770	49,248
Financing Receivables	53,571	50,197
Consumer Portfolio Segment [Member] | International Segment [Member]
Finance Receivables Aging Analysis [Abstract]
31-60 days past due	41	39
61-90 days past due	19	17
91-120 days past due	9	9
Greater than 120 days past due	22	26
Total past due	91	91
Current	11,454	10,459
Financing Receivables	11,545	10,550
Consumer Portfolio Segment [Member] | North America Segment [Member]
Finance Receivables Aging Analysis [Abstract]
31-60 days past due	583	715
61-90 days past due	70	88
91-120 days past due	17	18
Greater than 120 days past due	40	37
Total past due	710	858
Current	41,316	38,789
Financing Receivables	42,026	39,647
Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	3	21
Finance Receivables Aging Analysis [Abstract]
Total past due	95	89
Current	31,856	31,707
Financing Receivables	31,951	31,796
Commercial Portfolio Segment [Member] | International Segment [Member]
Finance Receivables Aging Analysis [Abstract]
Total past due	92	40
Current	9,490	8,567
Financing Receivables	9,582	8,607
Commercial Portfolio Segment [Member] | North America Segment [Member]
Finance Receivables Aging Analysis [Abstract]
Total past due	3	49
Current	22,366	23,140
Financing Receivables	$ 22,369	$ 23,189

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Net Investment in Operating Leases (Tables)

9 Months Ended

Sep. 30, 2014

Leases, Operating [Abstract]

Net investment in operating leases [Table Text Block]

Net investment in operating leases were as follows (in millions):

	September 30, 2014			December 31, 2013
Vehicles, at cost, including acquisition costs	$	24,220		$	21,092
Less: Accumulated depreciation	(3,273		)	(2,792		)
Net investment in operating leases before allowance for credit losses (a)	20,947			18,300
Less: Allowance for credit losses	(31		)	(23		)
Net investment in operating leases	$	20,916		$	18,277

__________

(a) At September 30, 2014 and December 31, 2013, includes net investment in operating leases of $9.9 billion and $8.1 billion, respectively, that have been included in securitization transactions but continue to be reported in our consolidated financial statements. These net investment in operating leases are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions; they are not available to pay our other obligations or the claims of our other creditors. We hold the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. See Note 5 for additional information.

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Accounting Policies

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

ACCOUNTING POLICIES

ACCOUNTING POLICIES

Principles of Consolidation

The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information, and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited financial statements include all adjustments considered necessary for a fair statement of the results of operations and financial condition for interim periods for Ford Motor Credit Company LLC, its consolidated subsidiaries and consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Results for interim periods should not be considered indicative of results for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2013 (“2013 Form 10-K Report”). We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”).

We reclassified certainprior period amounts in our consolidated financial statements to conform to the presentation in our 2013 Form 10-K Report.

Provision for Income Taxes

For interim tax reporting we estimate one single effective tax rate, which is applied to the year-to-date ordinary income/(loss). Tax effects of significant unusual or extraordinary items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.

During the third quarter of 2014, we completed a study that led to a change in our methodology for measuring currency gains and losses in computing the earnings of our European operations under U.S. tax law.  Implementation of the new methodology substantially reduced the accumulated earnings of those operations under U.S. tax law and resulted in a tax benefit of $364 million in the third quarter from the realization of additional foreign tax credits.  As a result of the reduction in accumulated tax earnings of our European operations, our measure of earnings indefinitely reinvested in operations outside the United States is substantially reduced as it is based on accumulated earnings determined under U.S. tax law.  Our cash repatriation plans remain unchanged.

Adoption of New Accounting Standards

Income Taxes - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. On January 1, 2014, we adopted the new accounting standard that requires an unrecognized tax benefit to be presented as a decrease in a deferred tax asset where a net operating loss, a similar tax loss, or a tax credit carryforward exists, and certain criteria are met. The new accounting standard is consistent with our prior practice, and thus the adoption did not impact our consolidated financial statements.

Foreign Currency Matters - Parent’s Accounting for Cumulative Translation Adjustment. On January 1, 2014, we adopted the new accounting standard that clarifies the applicable guidance for a parent company’s accounting for the release of the cumulative translation adjustment into net income upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. The new accounting standard is consistent with our prior practice, and thus the adoption did not impact our consolidated financial statements.

Liabilities - Obligations Resulting from Joint and Several Liability Arrangements. On January 1, 2014, we adopted the new accounting standard that provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements. The adoption of this accounting standard did not impact our consolidated financial statements or financial statement disclosures.

NOTE 1. ACCOUNTING POLICIES (Continued)

Accounting Standards Issued But Not Yet Adopted

Revenue - Revenue from Contracts with Customers.  In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard that requires recognition of revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. The new standard supersedes virtually all present U.S. GAAP guidance on revenue recognition, and requires the use of more estimates and judgments than the present standards as well as additional disclosures. The new accounting standard is effective as of January 1, 2017 and we are assessing the potential impact to our consolidated financial statements and financial statement disclosures.

Transfers and Servicing - Repurchase-to-Maturity Transactions, Repurchase Financings and Disclosures. In June 2014, the FASB issued a new accounting standard that changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. The new standard also requires additional disclosures for certain transfers of financial assets with agreements that both entitle and obligate the transferor to repurchase the transferred assets from the transferee. The new accounting standard is effective as of January 1, 2015 and we do not expect it to have an impact on our consolidated financial statements and financial statement disclosures.

Stock Compensation - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. In June 2014, the FASB issued a new accounting standard that requires performance targets that could be achieved after the requisite service period be treated as performance conditions that affect the vesting of the award. The new accounting standard is effective as of January 1, 2016 and we do not expect it to have an impact on our consolidated financial statements and financial statement disclosures.

Consolidation - Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity. In August 2014, the FASB issued a new accounting standard that provides an entity the option to elect to measure the financial assets and financial liabilities of a consolidated collateralized financing entity (“CFE”) at a value that is reflective of its economic interest in the CFE. The new accounting standard is effective as of January 1, 2016 and we are assessing the potential impact to our consolidated financial statements and financial statement disclosures.

Going Concern - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In August 2014, the FASB issued a new accounting standard that requires management to assess if there is substantial doubt about an entity’s ability to continue as a going concern for each annual and interim period. If conditions or events give rise to substantial doubt, disclosures are required. The new accounting standard is effective as of December 31, 2016 and we do not expect it to have an impact on our financial statement disclosures.

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Consolidated Statement of Comprehensive Income (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Net income	$ 718	$ 272	$ 1,294	$ 911
Other comprehensive income/(loss), net of tax (Note 10)
Foreign currency translation	(335)	176	(332)	(62)
Total other comprehensive income/(loss), net of tax	(335)	176	(332)	(62)
Comprehensive income	$ 383	$ 448	$ 962	$ 849

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Other Income

9 Months Ended

Sep. 30, 2014

Other Income and Expenses [Abstract]

OTHER INCOME

OTHER INCOME

Other income consists of various line items that are combined on the income statement due to their respective materiality compared with other individual income and expense items.

The amounts included in Other income, net were as follows for the periods ended September 30 (in millions):

	Third Quarter						First Nine Months
	2014			2013			2014			2013
Gains/(Losses) on derivatives (a)	$	158		$	(207	)	$	95		$	(62	)
Currency revaluation gains/(losses) (a)	(170		)	188			(132		)	17
Interest and investment income	12			18			41			38
Interest income/(expense) on income taxes	1			—			(10		)	—
Insurance fee income	16			16			57			46
Other	50			66			133			165
Total other income, net	$	67		$	81		$	184		$	204

__________

(a) Currency revaluation gains/(losses) primarily related to foreign denominated debt were mostly offset by gains/(losses) on derivatives. See Note 7 for detail by derivative instrument and risk type.

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Document and Entity Information Document (USD $)	9 Months Ended
	Sep. 30, 2014
Entity Registrant Name	FORD MOTOR CREDIT CO LLC
Entity Central Index Key	0000038009
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding	0
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float	$ 0
Membership Interests Description	All of the limited liability company interests in the registrant (“Shares”) are held by an affiliate of the registrant. None of the Shares are publicly traded.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

Cash equivalents, marketable securities, and derivative financial instruments are presented in our financial statements on a recurring basis at fair value, while other assets and liabilities are measured at fair value on a nonrecurring basis, such as when we have an asset impairment. We did not have any material nonrecurring fair value items in the quarter. There have been no changes to the types of inputs used or valuation techniques since year end.

Input Hierarchy of Items Measured at Fair Value on a Recurring Basis

The following table categorizes the fair values of items measured at fair value on a recurring basis on our balance sheet, none of which are Level 3 (in millions):

	September 30, 2014						December 31, 2013
	Level 1		Level 2		Total		Level 1		Level 2		Total
Assets
Cash equivalents-financial instruments
U.S. government	$	40	$	—	$	40	$	—	$	—	$	—
Corporate debt	—		60		60		—		—		—
Non-U.S. government and agencies	—		341		341		—		24		24
Total cash equivalents-financial instruments (a)	40		401		441		—		24		24
Marketable securities
U.S. government and agencies	341		1,222		1,563		418		25		443
Non-U.S. government and agencies	—		644		644		—		184		184
Corporate debt	—		1,525		1,525		—		1,273		1,273
Other marketable securities	—		35		35		—		43		43
Total marketable securities	341		3,426		3,767		418		1,525		1,943
Derivative financial instruments (b)	—		751		751		—		585		585
Total assets at fair value	$	381	$	4,578	$	4,959	$	418	$	2,134	$	2,552
Liabilities
Derivative financial instruments (b)	$	—	$	291	$	291	$	—	$	506	$	506
Total liabilities at fair value	$	—	$	291	$	291	$	—	$	506	$	506

__________

(a) Excludes time deposits, certificates of deposit, and money market accounts reported at par value on our balance sheet totaling $4.2 billion and $6.6 billion at September 30, 2014 and December 31, 2013, respectively. In addition to these cash equivalents, we also had cash on hand totaling $2.7 billion and $2.8 billion at September 30, 2014 and December 31, 2013, respectively.

(b) See Note 7 for additional information regarding derivative financial instruments.

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Consolidated Balance Sheet (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Assets
Cash and cash equivalents	$ 7,329	$ 9,424
Marketable securities	3,767	1,943
Finance receivables, net (Note 2)	85,197	81,636
Net investment in operating leases (Note 3)	20,916	18,277
Notes and accounts receivable from affiliated companies	828	1,077
Derivative financial instruments (Note 7)	751	585
Other assets (Note 8)	2,428	2,666
Total assets	121,216	115,608
Liabilities
Customer deposits, dealer reserves, and other	1,252	1,445
Affiliated companies	468	211
Total accounts payable	1,720	1,656
Debt (Note 9)	103,951	98,693
Deferred income taxes	1,618	1,627
Derivative financial instruments (Note 7)	291	506
Other liabilities and deferred income (Note 8)	2,314	2,522
Total liabilities	109,894	105,004
Shareholder's interest
Shareholder's interest	5,217	5,217
Accumulated other comprehensive income (Note 10)	385	717
Retained earnings	5,720	4,670
Total shareholder's interest	11,322	10,604
Total liabilities and shareholder's interest	121,216	115,608
Variable Interest Entity, Primary Beneficiary [Member]
Assets
Cash and cash equivalents	2,022	4,198
Finance receivables, net (Note 2)	37,590	45,796
Net investment in operating leases (Note 3)	9,927	8,116
Derivative financial instruments (Note 7)	13	5
Liabilities
Debt (Note 9)	35,869	40,728
Derivative financial instruments (Note 7)	$ 18	$ 88

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Variable Interest Entities

9 Months Ended

Sep. 30, 2014

Variable Interest Entities [Abstract]

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. Nearly all of our VIEs are special purpose entities used for our securitizations.

We have the power to direct the activities of our special purpose entities when we have the ability to exercise discretion in the servicing of financial assets, issue additional debt, exercise a unilateral call option, add assets to revolving structures, or control investment decisions.

Assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims against our general assets. Conversely, liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIEs.

VIEs of Which We Are the Primary Beneficiary

We use special purpose entities to issue asset-backed securities in transactions to public and private investors, bank conduits, and government-sponsored entities or others who obtain funding from government programs. We have deemed most of these special purpose entities to be VIEs. The asset-backed securities are backed by finance receivables and interests in net investments in operating leases. The assets continue to be consolidated by us. We retain interests in our securitization VIEs, including subordinated securities issued by the VIEs, rights to cash held for the benefit of the securitization investors, and rights to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions.

The transactions create and pass along risks to the variable interest holders, depending on the assets securing the debt and the specific terms of the transactions. We aggregate and analyze the asset-backed securitization transactions based on the risk profile of the product and the type of funding structure, including:

• Retail financing – consumer credit risk and pre-payment risk

• Wholesale financing – dealer credit risk and Ford risk, as the receivables owned by the VIEs primarily arise from the financing provided by us to Ford-franchised dealers; therefore, the collections depend upon the sale of Ford vehicles

• Net investment in operating leases – vehicle residual value risk, consumer credit risk, and pre-payment risk

As residual interest holder, we are exposed to the underlying residual and credit risk of the collateral and are exposed to interest rate risk in some transactions. The amount of risk absorbed by our residual interests generally is represented by and limited to the amount of overcollateralization of the assets securing the debt and any cash reserves.

NOTE 6. VARIABLE INTEREST ENTITIES (Continued)

We have no obligation to repurchase or replace any securitized asset that subsequently becomes delinquent in payment or otherwise is in default, except when representations and warranties about the eligibility of the securitized assets are breached, or when certain changes are made to the underlying asset contracts. Securitization investors have no recourse to us or our other assets and have no right to require us to repurchase the investments. We generally have no obligation to provide liquidity or contribute cash or additional assets to the VIEs and do not guarantee any asset-backed securities. We may be required to support the performance of certain securitization transactions, however, by increasing cash reserves.

VIEs that are exposed to interest rate or currency risk have reduced their risks by entering into derivative transactions. In certain instances, we have entered into offsetting derivative transactions with the VIE to protect the VIE from the risks that are not mitigated through the derivative transactions between the VIE and its external counterparty. In other instances, we have entered into derivative transactions with the counterparty to protect the counterparty from risks absorbed through its derivative transactions with the VIEs.

Although not contractually required, we regularly support our wholesale securitization programs by repurchasing receivables of a dealer from a VIE when the dealer’s performance is at risk, which transfers the corresponding risk of loss from the VIE to us. In order to continue to fund the wholesale receivables, we also may contribute additional cash or wholesale receivables if the collateral falls below the required levels. The balances of cash related to these contributions were $0 at September 30, 2014 and December 31, 2013, and ranged from $0 to $242 million during the first nine months of 2014.

See Note 5 for information on the financial position and financial performance of our VIEs and Notes 7 and 12 for additional information regarding derivatives.

VIEs of Which We Are Not the Primary Beneficiary

We have an investment in Forso Nordic AB, a joint venture determined to be a VIE of which we are not the primary beneficiary. The joint venture provides retail and dealer financing in its local markets and is financed by external debt and additional subordinated debt provided by the joint venture partner. The operating agreement indicates that the power to direct economically significant activities is shared with the joint venture partner, and the obligation to absorb losses or right to receive benefits resides primarily with the joint venture partner. Our investment in the joint venture is accounted for as an equity method investment and is included in Other assets. Our maximum exposure to any potential losses associated with this VIE is limited to our equity investment and amounted to $68 millionand $72 million at September 30, 2014 and December 31, 2013, respectively.

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Transfers of Receivables

9 Months Ended

Sep. 30, 2014

Transfers and Servicing [Abstract]

TRANSFERS OF RECEIVABLES

TRANSFERS OF RECEIVABLES

We securitize finance receivables and net investment in operating leases through a variety of programs using amortizing, variable funding, and revolving structures. We also sell finance receivables in structured financing transactions. Due to the similarities between securitization and structured financing, we refer to structured financings as securitization transactions. Our securitization programs are targeted to institutional investors in both public and private transactions in capital markets primarily in North America and Europe.

We engage in securitization transactions to fund operations and to maintain liquidity. Our securitization transactions are recorded as asset-backed debt and the associated assets are not derecognized and continue to be included in our financial statements.

The finance receivables sold for legal purposes and net investment in operating leases included in securitization transactions are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. They are not available to pay our other obligations or the claims of our other creditors. We hold the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. The debt is the obligation of our consolidated securitization entities and not the obligation of Ford Credit or our other subsidiaries.

Most of these securitization transactions utilize VIEs. See Note 6 for more information concerning VIEs. The following tables show the assets and debt related to our securitization transactions that were included in our financial statements (in billions):

	September 30, 2014
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt
			Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses
VIE (b)
Retail financing	$	1.3	$	17.6	$	0.1	$	17.5	$	15.8
Wholesale financing	0.3		20.1		—		20.1		13.1
Finance receivables	1.6		37.7		0.1		37.6		28.9
Net investment in operating leases	0.4		9.9		—		9.9		7.0
Total VIE	$	2.0	$	47.6	$	0.1	$	47.5	$	35.9
Non-VIE
Retail financing	$	0.4	$	6.4	$	—	$	6.4	$	5.9
Wholesale financing	—		1.0		—		1.0		0.9
Finance receivables	0.4		7.4		—		7.4		6.8
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.4	$	7.4	$	—	$	7.4	$	6.8
Total securitization transactions
Retail financing	$	1.7	$	24.0	$	0.1	$	23.9	$	21.7
Wholesale financing	0.3		21.1		—		21.1		14.0
Finance receivables	2.0		45.1		0.1		45.0		35.7
Net investment in operating leases	0.4		9.9		—		9.9		7.0
Total securitization transactions	$	2.4	$	55.0	$	0.1	$	54.9	$	42.7

__________

(a) Unearned interest supplements and residual support are excluded from securitization transactions.

(b) Includes assets to be used to settle the liabilities of the consolidated VIEs.

NOTE 5. TRANSFERS OF RECEIVABLES (Continued)

	December 31, 2013
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt
			Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses
VIE (b)
Retail financing	$	1.9	$	23.1	$	0.2	$	22.9	$	20.3
Wholesale financing	1.9		22.9		—		22.9		14.8
Finance receivables	3.8		46.0		0.2		45.8		35.1
Net investment in operating leases	0.4		8.1		—		8.1		5.6
Total VIE	$	4.2	$	54.1	$	0.2	$	53.9	$	40.7
Non-VIE
Retail financing	$	0.2	$	4.6	$	—	$	4.6	$	4.4
Wholesale financing	—		1.0		—		1.0		0.8
Finance receivables	0.2		5.6		—		5.6		5.2
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.2	$	5.6	$	—	$	5.6	$	5.2
Total securitization transactions
Retail financing	$	2.1	$	27.7	$	0.2	$	27.5	$	24.7
Wholesale financing	1.9		23.9		—		23.9		15.6
Finance receivables	4.0		51.6		0.2		51.4		40.3
Net investment in operating leases	0.4		8.1		—		8.1		5.6
Total securitization transactions	$	4.4	$	59.7	$	0.2	$	59.5	$	45.9

__________

(a) Unearned interest supplements and residual support are excluded from securitization transactions.

(b) Includes assets to be used to settle the liabilities of the consolidated VIEs.

Interest expense related to securitization debt for the periods ended September 30 was as follows (in millions):

	Third Quarter				First Nine Months
	2014		2013		2014		2013
VIE	$	125	$	138	$	377	$	434
Non-VIE	24		19		67		54
Total securitization transactions	$	149	$	157	$	444	$	488

Certain of our securitization entities enter into derivative transactions to mitigate interest rate exposure, primarily resulting from fixed-rate assets securing floating-rate debt and, in certain instances, currency exposure resulting from assets in one currency and debt in another currency. In many instances, the counterparty enters into offsetting derivative transactions with us to mitigate its interest rate risk resulting from derivatives with our securitization entities. See Note 7 for additional information regarding the accounting for derivatives. Our exposures based on the fair value of derivative instruments with external counterparties related to securitization programs were as follows (in millions):

	September 30, 2014				December 31, 2013
	Derivative Asset		Derivative Liability		Derivative Asset		Derivative Liability
Derivatives of the VIEs	$	13	$	18	$	5	$	88
Derivatives related to the VIEs	15		10		23		30
Other securitization related derivatives	7		2		5		7
Total exposures related to securitization	$	35	$	30	$	33	$	125

NOTE 5. TRANSFERS OF RECEIVABLES (Continued)

Derivative expense/(income) related to our securitization transactions for the periods ended September 30 was as follows (in millions):

	Third Quarter						First Nine Months
	2014			2013			2014			2013
VIEs	$	(22	)	$	73		$	(4	)	$	(20	)
Related to the VIEs	(10		)	(2		)	(10		)	8
Other securitization related derivatives	(4		)	7			11			6
Total derivative expense/(income) related to securitization	$	(36	)	$	78		$	(3	)	$	(6	)

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Finance Receivables (Tables)

9 Months Ended

Sep. 30, 2014

Financing Receivables [Line Items]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Finance receivables, net were as follows (in millions):

	September 30, 2014									December 31, 2013
	North America			International			Total Finance Receivables			North America			International			Total Finance Receivables
Consumer
Retail financing, gross (a)	$	43,537		$	11,784		$	55,321		$	40,902		$	10,797		$	51,699
Less:  Unearned interest supplements (b)	(1,511		)	(239		)	(1,750		)	(1,255		)	(247		)	(1,502		)
Consumer finance receivables	42,026			11,545			53,571			39,647			10,550			50,197
Non-Consumer
Dealer financing (a)(c)	21,495			9,260			30,755			22,139			8,232			30,371
Other	874			322			1,196			1,050			375			1,425
Non-Consumer finance receivables	22,369			9,582			31,951			23,189			8,607			31,796
Total recorded investment	$	64,395		$	21,127		$	85,522		$	62,836		$	19,157		$	81,993
Recorded investment in finance receivables (d)	$	64,395		$	21,127		$	85,522		$	62,836		$	19,157		$	81,993
Less:  Allowance for credit losses (e)	(256		)	(69		)	(325		)	(280		)	(77		)	(357		)
Finance receivables, net	$	64,139		$	21,058		$	85,197		$	62,556		$	19,080		$	81,636
Net finance receivables subject to fair value (f)							$	83,529								$	79,969
Fair Value							85,180									81,658

__________

(a) At September 30, 2014 and December 31, 2013, includes North America consumer receivables of $19.3 billion and $21.8 billion and non-consumer receivables of $17.3 billion and $18.9 billion, respectively, and International consumer receivables of $4.7 billion and $5.9 billion and non-consumer receivables of $3.8 billion and $5.0 billion, respectively, that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. The receivables are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions; they are not available to pay our other obligations or the claims of our other creditors. We hold the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions. See Note 5 for additional information.

(b) Ford-sponsored special financing programs attributable to retail financing.

(c) At September 30, 2014 and December 31, 2013, includes $41 million and $67 million, respectively, of North America dealer financing receivables with entities (primarily dealers) that are reported as consolidated subsidiaries of Ford. At September 30, 2014 and December 31, 2013, includes $494 million and $399 million, respectively, of International dealer financing receivables with entities (primarily dealers) that are reported as consolidated subsidiaries of Ford. The associated vehicles that are being financed by us are reported as inventory on Ford’s balance sheet.

(d) At September 30, 2014 and December 31, 2013, excludes $185 million and $196 million, respectively, of accrued uncollected interest, which we report in Other assets on our balance sheet.

(e) See Note 4 for additional information related to our allowance for credit losses.

(f) At September 30, 2014 and December 31, 2013, excludes $1.7 billion and $1.7 billion, respectively, of certain receivables (primarily direct financing leases) that are not subject to fair value disclosure requirements.

Schedule of Aging Analysis for Total Finance Receivables [Table Text Block]

The aging analysis of finance receivables balances was as follows (in millions):

	September 30, 2014						December 31, 2013
	North America		International		Total		North America		International		Total
Consumer
31-60 days past due	$	583	$	41	$	624	$	715	$	39	$	754
61-90 days past due	70		19		89		88		17		105
91-120 days past due	17		9		26		18		9		27
Greater than 120 days past due	40		22		62		37		26		63
Total past due	710		91		801		858		91		949
Current	41,316		11,454		52,770		38,789		10,459		49,248
Consumer finance receivables	42,026		11,545		53,571		39,647		10,550		50,197
Non-Consumer
Total past due	3		92		95		49		40		89
Current	22,366		9,490		31,856		23,140		8,567		31,707
Non-Consumer finance receivables	22,369		9,582		31,951		23,189		8,607		31,796
Total recorded investment	$	64,395	$	21,127	$	85,522	$	62,836	$	19,157	$	81,993

Commercial Portfolio Segment [Member]

Financing Receivables [Line Items]

Schedule of Financing Receivable Credit Quality Indicators [Table Text Block]

The credit quality analysis of our dealer financing receivables was as follows (in millions):

	September 30, 2014						December 31, 2013
	North America		International		Total		North America		International		Total
Dealer financing
Group I	$	18,260	$	4,806	$	23,066	$	18,424	$	5,450	$	23,874
Group II	2,951		3,073		6,024		3,289		2,092		5,381
Group III	256		1,298		1,554		424		649		1,073
Group IV	28		83		111		2		41		43
Total recorded investment	$	21,495	$	9,260	$	30,755	$	22,139	$	8,232	$	30,371

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Acquisitions and Divestitures Acquisition (Notes)

9 Months Ended

Sep. 30, 2013

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

ACQUISITIONS AND OTHER ACTIONS

During April and August 2013, an affiliated company owned by Ford executed agreements to sell Volvo-related retail financing receivables of its German branch to a third-party financing company. In July 2013, FCE Bank plc (“FCE”) acquired the net residual assets of the affiliated company’s Swiss branch through the purchase of a newly created Swiss subsidiary. The net residual assets of the Swiss branch consisted primarily of $713 million of retail and dealer financing receivables in Switzerland. The Swiss assets were purchased at book value. All servicing obligations for the Swiss retail and dealer financing receivables transferred to FCE upon acquisition. In conjunction with this transaction, we recorded an increase of $60 million in Accumulated other comprehensive income (foreign currency translation), which resulted in a corresponding decrease in Shareholder’s interest.

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Debt

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

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 securitization programs that issue short-term asset-backed 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.

Asset-backed debt issued in securitizations is the obligation of the consolidated securitization entity that issued the debt and is payable only out of collections on the underlying securitized assets and related enhancements. This asset-backed debt is not the obligation of Ford Credit or our other subsidiaries.

Debt is recorded on our balance sheet at par value adjusted for unamortized discount or premium (with the exception of fair value adjustments related to debt in designated hedge relationships; see Note 7 for further policy information). Debt due within one year at issuance is classified as short-term. Debt due after one year at issuance is classified as long-term. Discounts, premiums, and costs directly related to the issuance of debt generally are capitalized and amortized over the life of the debt or put date and recorded in Interest expense using the effective interest method. Gains and losses on the extinguishment of debt are recorded in Other income, net.

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

	Interest Rates
	Average Contractual				Average Effective				Debt
	2014		2013		2014		2013		September 30, 2014			December 31, 2013
Short-term debt
Asset-backed commercial paper	—		0.2	%					$	—		$	3,364
Floating rate demand notes	1.1	%	1.1	%					5,689			5,319
Other asset-backed short-term debt	0.6	%	0.7	%					1,375			1,963
Commercial paper	0.7	%	0.9	%					2,137			2,003
Other short-term debt	5.0	%	5.3	%					2,952			2,372
Total short-term debt	1.9	%	1.5	%	1.9	%	1.5	%	12,153			15,021
Long-term debt
Unsecured debt
Notes payable within one year									9,679			4,479
Notes payable after one year									40,590			38,617
Asset-backed debt
Notes payable within one year									16,561			17,322
Notes payable after one year									24,797			23,238
Unamortized discount									(57		)	(87		)
Fair value adjustments									228			103
Total long-term debt	2.8	%	3.0	%	2.9	%	3.2	%	91,798			83,672
Total debt	2.7	%	2.8	%	2.8	%	3.0	%	$	103,951		$	98,693
Fair value of debt									$	106,544		$	101,866

With the exception of commercial paper, which is issued at a discount, the 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.

NOTE 9. DEBT (Continued)

The fair value of debt reflects interest accrued but not yet paid of $617 million and $618 million at September 30, 2014 and December 31, 2013, respectively. Interest accrued is reported in Other liabilities and deferred income for outside debt and Accounts payable - affiliated companies for debt with affiliated companies. The fair value of debt also includes $10.8 billion and $9.7 billion of short-term debt at September 30, 2014 and December 31, 2013, respectively, carried at cost, which approximates fair value. See Note 12 for additional information.

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

	September 30, 2014		December 31, 2013
Other short-term debt	$	17	$	27
Notes payable within one year	318		4
Notes payable after one year	6		307
Total debt with affiliated companies	$	341	$	338

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.

In the third quarter and first nine months of 2014, through market transactions, we called an aggregate principal amount of $0 and $216 million, respectively, of our unsecured debt, none of which would have matured in 2014. As a result, in the third quarter and first nine months of 2014, we recorded a $0 and $2 million pre-tax loss, 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 2014.

In the third quarter and first nine months of 2013, through market transactions, we called an aggregate principal amount of $0 and $163 million, respectively, of our unsecured debt, none of which would have matured in 2013. As a result, in the third quarter and first nine months of 2013, we recorded a $0 and $1 million pre-tax loss, 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 2013.

Debt Maturities. Short-term and long-term debt matures at various dates through 2048. At September 30, 2014, maturities were as follows (in millions):

	2014 (a)		2015 (b)		2016		2017		2018		Thereafter (c)		Total
Unsecured debt	$	9,848	$	11,413	$	10,385	$	10,696	$	5,958	$	12,747	$	61,047
Asset-backed debt	4,436		16,898		11,865		6,716		759		2,059		42,733
Total	14,284		28,311		22,250		17,412		6,717		14,806		103,780
Unamortized (discount)/premium													(57		)
Fair value adjustments													228
Total debt													$	103,951

__________

(a) Includes $9,575 million for short-term and $4,709 million for long-term debt.

(b) Includes $2,578 million for short-term and $25,733 million for long-term debt.

(c) Includes $12,731 million of unsecured debt maturing between 2019 and 2024 with the remaining balance maturing after 2031.

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Derivative Financial Instruments and Hedging Activities

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

In the normal course of business, our operations are exposed to global market risks, including the effect of changes in interest rates and foreign currency exchange rates. To manage these risks, we enter into various derivative contracts:

• Interest rate contracts including swaps, caps, and floors that are used to manage the effects of interest rate fluctuations;

• Foreign currency exchange contracts that are used to manage foreign exchange exposure; and

• Cross-currency interest rate swap contracts that are used to manage foreign currency and interest rate exposures on foreign-denominated debt.

Our derivatives are over-the-counter customized derivative transactions and are not exchange traded. We review our hedging program, derivative positions, and overall risk management strategy on a regular basis.

Derivative assets and derivative liabilities are recorded in Derivative financial instruments on our balance sheet at fair value and presented on a gross basis.

We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Cash flows and the profit impact associated with designated hedges are reported in the same category as the underlying hedged item.

Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting. Regardless, we only enter into transactions that we believe will be highly effective at offsetting the underlying economic risk. We report net interest settlements and accruals and changes in the fair value of derivatives not designated as hedging instruments in Other income, net. Cash flows associated with non-designated or de-designated derivatives are reported in Net cash provided by/(used in) investing activities in our statement of cash flows.

Fair Value Hedges. We use derivatives to reduce the risk of changes in the fair value of debt. We have designated certain receive-fixed, pay-float interest rate swaps as fair value hedges of fixed-rate debt. The risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark interest rate. If the hedge relationship is deemed to be highly effective, we record the changes in the fair value of the hedged debt related to the risk being hedged in Debt with the offset in Other income, net. The change in fair value of the related derivative (excluding accrued interest) also is recorded in Other income, net.

Net interest settlements and accruals on fair value hedges are excluded from the assessment of hedge effectiveness. We report net interest settlements and accruals in Interest expense.We report foreign currency revaluation on accrued interest in Other income, net. The cash flows associated with fair value hedges are reported in Net cash provided by/(used in) operating activities in our statement of cash flows.

Hedge ineffectiveness is the difference between the change in fair value of the derivative instrument and the change in fair value of the hedged item attributable to changes in the benchmark interest rate. Ineffectiveness is recorded directly to income.

When a fair value hedge is de-designated, or when the derivative is terminated before maturity, the fair value adjustment to the hedged debt continues to be reported as part of the carrying value of the debt and is amortized over its remaining life.

NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)

Income Effect of Derivative Financial Instruments

The following table summarizes by hedge designation the pre-tax gains/(losses) recognized in income for the periods ended September 30 (in millions):

	Third Quarter						First Nine Months
	2014			2013			2014			2013
Fair value hedges
Interest rate contracts
Net interest settlements and accruals excluded from the assessment of hedge effectiveness	$	79		$	63		$	220		$	186
Ineffectiveness (a)	(2		)	(3		)	8			(33		)
Total	$	77		$	60		$	228		$	153
Derivatives not designated as hedging instruments
Interest rate contracts	$	(10	)	$	(18	)	$	(37	)	$	(20	)
Foreign currency exchange contracts (b)	52			(55		)	22			28
Cross-currency interest rate swap contracts (b)	118			(131		)	102			(37		)
Total	$	160		$	(204	)	$	87		$	(29	)

__________

(a) For the third quarter of 2014 and 2013, hedge ineffectiveness reflects change in fair value on derivatives of $88 million loss and $67 million gain, respectively, and change in value on hedged debt attributable to the change in benchmark interest rate of $86 million gain and $70 million loss, respectively. For the first nine months of 2014 and 2013, hedge ineffectiveness reflects change in fair value on derivatives of $179 million gain and$501 million loss, respectively, and change in value on hedged debt attributable to the change in benchmark interest rate of $171 million loss and $468 million gain, respectively.

(b) Gains/(Losses) related to foreign currency derivatives were mostly offset by net revaluation impacts on foreign denominated debt, which were also recorded in Other income, net.

Balance Sheet Effect of Derivative Financial Instruments

The following table summarizes the notional amount and estimated fair value of our derivative financial instruments (in millions):

	September 30, 2014						December 31, 2013
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	22,943	$	424	$	157	$	18,778	$	360	$	179
Derivatives not designated as hedging instruments
Interest rate contracts	56,607		254		78		69,863		224		126
Foreign currency exchange contracts (a)	2,324		56		12		2,410		1		25
Cross-currency interest rate swap contracts	2,513		17		44		2,620		—		176
Total derivatives not designated as hedging instruments	61,444		327		134		74,893		225		327
Total derivative financial instruments	$	84,387	$	751	$	291	$	93,671	$	585	$	506

__________

(a) Includes forward contracts between Ford Credit and an affiliated company.

NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)

Notional amounts are presented on a gross basis. The notional amounts of the derivative financial instruments do not represent amounts exchanged by the parties and, therefore, are not a direct measure of our exposure to the financial risks described above. The amounts exchanged are calculated by reference to the notional amounts and by other terms of the derivatives, such as interest rates or foreign currency exchange rates.

Counterparty Risk

The use of derivatives exposes us to the risk that a counterparty may default on a derivative contract. We establish exposure limits for each counterparty to minimize this risk and provide counterparty diversification. Substantially all of our derivative exposures are with counterparties that have an investment grade rating. The aggregate fair value of derivative instruments in asset positions at September 30, 2014 was $751 million, representing the maximum loss we would recognize at that date if all counterparties failed to perform as contracted. We enter into master agreements with counterparties that may allow for netting of exposures in the event of default or termination of the counterparty agreement due to breach of contract.

The gross and net amounts of derivative assets and liabilities were as follows (in millions):

	September 30, 2014						December 31, 2013
	Fair Value of Assets			Fair Value of Liabilities			Fair Value of Assets			Fair Value of Liabilities
Gross derivative amounts recognized in the balance sheet	$	751		$	291		$	585		$	506
Gross derivative amounts not offset in the balance sheet that are eligible for offsetting	(242		)	(242		)	(296		)	(296		)
Net amount	$	509		$	49		$	289		$	210

We may receive or pledge cash collateral with certain counterparties based on our net position with regard to foreign currency derivative contracts. As of September 30, 2014 and December31, 2013, we did not receive or pledge any cash collateral.

We include an adjustment for non-performance risk in the measurement of fair value of derivative instruments. Our adjustment for non-performance risk is relative to a measure based on an unadjusted inter-bank deposit rate (e.g., LIBOR). At September 30, 2014 and December 31, 2013, our adjustment decreased derivative assets by $2 million and increased derivative assets by $2 million, respectively, and decreased our derivative liabilities by $9 million and $25 million, respectively. See Note 12 for additional information regarding valuation methodologies.

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Other Assets and Other Liabilities and Deferred Income

9 Months Ended

Sep. 30, 2014

Other Assets and Other Liabilities and Deferred Income [Abstract]

OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED INCOME

OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED INCOME

Other assets and other liabilities and deferred income consist of various balance sheet items that are combined for financial statement presentation due to their respective materiality compared with other individual asset and liability items.

Other assets were as follows (in millions):

	September 30, 2014		December 31, 2013
Accrued interest and other non-finance receivables (a)	$	821	$	1,010
Collateral held for resale, at net realizable value	367		399
Restricted cash (b)	93		169
Deferred charges	270		252
Deferred charges – income taxes	178		184
Prepaid reinsurance premiums and other reinsurance receivables	389		340
Investment in non-consolidated affiliates	139		133
Property and equipment, net of accumulated depreciation (c)	117		120
Other	54		59
Total other assets	$	2,428	$	2,666

__________

(a) Includes the gross value of repurchase agreements where we are the transferee of $4 million and $227 million at September 30, 2014 and December 31, 2013, respectively.  The gross value of the offsetting liabilities are reported in Customer deposits, dealer reserves, and other on our balance sheet.

(b) Restricted cash primarily includes cash held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of certain contractual agreements. Restricted cash does not include required minimum balances or cash securing debt issued through securitization transactions.

(c) Accumulated depreciation was $324 million and $343 million at September 30, 2014 and December 31, 2013, respectively.

Other liabilities and deferred income were as follows (in millions):

	September 30, 2014		December 31, 2013
Interest payable	$	620	$	615
Tax related payables to Ford and affiliated companies	726		941
Unrecognized tax benefits	88		101
Unearned insurance premiums	399		350
Other	481		515
Total other liabilities and deferred income	$	2,314	$	2,522

In the first nine months of 2014 and in the year ended December 31, 2013, we paid $262 million and $288 million, respectively, to Ford to settle tax related payables which were reflected in Other liabilities and deferred income. The payment in 2013 reduced the liability for unrecognized tax benefits reflecting the settlement of tax deficiencies related to the 2008 and 2009 tax years.

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Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2014

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

ACCUMULATED OTHER COMPREHENSIVE INCOME

The changes in the accumulated balance of AOCI for the periods ended September 30 were as follows (in millions):

	Third Quarter					First Nine Months
	2014			2013		2014			2013
Foreign currency translation
Beginning balance	$	720		$	505	$	717		$	743
Net gain/(loss) on foreign currency translation	(335		)	176		(332		)	(62		)
Reclassifications from shareholder’s interest (a)	—			60		—			60
Other comprehensive income/(loss), net of tax	(335		)	236		(332		)	(2		)
Ending balance	$	385		$	741	$	385		$	741
Total AOCI ending balance at September 30	$	385		$	741	$	385		$	741

__________

(a) See Note 13 for additional information regarding the reclassification.

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Accounting Policies Accounting Policies (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Sep. 30, 2014
Foreign Tax Expense/(Benefit) [Abstract]
Current Foreign Tax Expense (Benefit)	$ 364

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Accumulated Other Comprehensive Income (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Cumulative Translation Adjustment Summary [Roll Forward]
Beginning balance	$ 720,000,000	$ 505,000,000	$ 717,000,000	$ 743,000,000
Net gain/(loss) on foreign currency translation	(335,000,000)	176,000,000	(332,000,000)	(62,000,000)
Other Comprehensive Income (Loss), Net of Tax	(335,000,000)	176,000,000	(332,000,000)	(62,000,000)
Ending balance	385,000,000	741,000,000	385,000,000	741,000,000
Total AOCI ending balance at September 30	385,000,000	741,000,000	385,000,000	741,000,000	717,000,000
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax [Abstract]
Net gain/(loss) on foreign currency translation, tax adjustment	0	0	0	0
Accumulated Other Comprehensive Income (Loss) [Member]
Cumulative Translation Adjustment Summary [Roll Forward]
Other Comprehensive Income (Loss), Net of Tax	(335,000,000)	236,000,000	(332,000,000)	(2,000,000)
Affiliated Entity [Member]
Cumulative Translation Adjustment Summary [Roll Forward]
Net gain/(loss) on foreign currency translation	$ 0	$ 60,000,000	$ 0	$ 60,000,000

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Commitments and contingencies consist primarily of lease commitments, guarantees and indemnifications, and litigation and claims.

Guarantees and Indemnifications

Guarantees and indemnifications are recorded at fair value at their inception. We regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under the guarantee or indemnification, the amount of probable payment is recorded.

In some cases, we have guaranteed debt and other financial obligations of outside third parties and unconsolidated affiliates, including Ford. Expiration dates vary, and guarantees will terminate on payment and/or cancellation of the obligation. A payment by us would be triggered by failure of the guaranteed party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from Ford, an affiliate of Ford, or the third party amounts paid by us under the guarantee. However, our ability to enforce these rights is sometimes stayed until the guaranteed party is paid in full, and may be limited in the event of insolvency of the third party or other circumstances.

In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction. These indemnifications might include and are not limited to claims relating to any of the following: environmental, tax, and shareholder matters; intellectual property rights; governmental regulations and employment-related matters; dealer and other commercial contractual relationships; and financial matters, such as securitizations. Performance under these indemnities generally would be triggered by a breach of terms of the contract or by a third-party claim. While some of these indemnifications are limited in nature, many of them do not limit potential payment. Therefore, we are unable to estimate a maximum amount of future payments that could result from claims made under these unlimited indemnities.

The maximum potential payments under these guarantees and limited indemnities totaled $130 million and $100 million at September 30, 2014 and December 31, 2013, respectively. Of these values, $125 million at September 30, 2014 and $96 million at December 31, 2013, were counter-guaranteed by Ford to us. The carrying value of recorded liabilities related to guarantees and limited indemnities were $0 and de minimis at September 30, 2014 and December 31, 2013, respectively.

Litigation and Claims

Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include but are not limited to matters arising out of governmental regulations; tax matters; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer and other contractual relationships; personal injury matters; investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages in very large amounts, sanctions, assessments, or other relief, which, if granted, would require very large expenditures.

The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome.

Litigation and claims are accrued when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time.

NOTE 15. COMMITMENTS AND CONTINGENCIES (Continued)

For nearly all of our matters, where our historical experience with similar matters is of limited value (i.e., “non-pattern matters”), we evaluate matters primarily based on the individual facts and circumstances. For non-pattern matters, we evaluate whether there is a reasonable possibility of a material loss in excess of any accrual that can be estimated. It is reasonably possible that some of the matters for which accruals have not been established could be decided unfavorably to us and could require us to pay damages or make other expenditures in amounts or a range of amounts that cannot be estimated at September 30, 2014. We do not reasonably expect, based on our analysis, that such matters would have a material effect on future financial statements for a particular year, although such an outcome is possible. Our estimate of reasonably possible loss in excess of our accruals for all material matters currently reflects a governmental regulation matter outside the United States, for which we estimate the aggregate risk to be a range of up to about $200 million.

As noted, the litigation process is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance. Our assessments are based on our knowledge and experience, but the ultimate outcome of any matter could require payment substantially in excess of the amount that we have accrued and/or disclosed.

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Transfers of Receivables (Tables)

9 Months Ended

Sep. 30, 2014

Transfers and Servicing [Abstract]

Schedule of Assets and Liabilities Related to Securitization Transactions [Table Text Block]

The following tables show the assets and debt related to our securitization transactions that were included in our financial statements (in billions):

	September 30, 2014
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt
			Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses
VIE (b)
Retail financing	$	1.3	$	17.6	$	0.1	$	17.5	$	15.8
Wholesale financing	0.3		20.1		—		20.1		13.1
Finance receivables	1.6		37.7		0.1		37.6		28.9
Net investment in operating leases	0.4		9.9		—		9.9		7.0
Total VIE	$	2.0	$	47.6	$	0.1	$	47.5	$	35.9
Non-VIE
Retail financing	$	0.4	$	6.4	$	—	$	6.4	$	5.9
Wholesale financing	—		1.0		—		1.0		0.9
Finance receivables	0.4		7.4		—		7.4		6.8
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.4	$	7.4	$	—	$	7.4	$	6.8
Total securitization transactions
Retail financing	$	1.7	$	24.0	$	0.1	$	23.9	$	21.7
Wholesale financing	0.3		21.1		—		21.1		14.0
Finance receivables	2.0		45.1		0.1		45.0		35.7
Net investment in operating leases	0.4		9.9		—		9.9		7.0
Total securitization transactions	$	2.4	$	55.0	$	0.1	$	54.9	$	42.7

__________

(a) Unearned interest supplements and residual support are excluded from securitization transactions.

(b) Includes assets to be used to settle the liabilities of the consolidated VIEs.

NOTE 5. TRANSFERS OF RECEIVABLES (Continued)

	December 31, 2013
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt
			Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses
VIE (b)
Retail financing	$	1.9	$	23.1	$	0.2	$	22.9	$	20.3
Wholesale financing	1.9		22.9		—		22.9		14.8
Finance receivables	3.8		46.0		0.2		45.8		35.1
Net investment in operating leases	0.4		8.1		—		8.1		5.6
Total VIE	$	4.2	$	54.1	$	0.2	$	53.9	$	40.7
Non-VIE
Retail financing	$	0.2	$	4.6	$	—	$	4.6	$	4.4
Wholesale financing	—		1.0		—		1.0		0.8
Finance receivables	0.2		5.6		—		5.6		5.2
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.2	$	5.6	$	—	$	5.6	$	5.2
Total securitization transactions
Retail financing	$	2.1	$	27.7	$	0.2	$	27.5	$	24.7
Wholesale financing	1.9		23.9		—		23.9		15.6
Finance receivables	4.0		51.6		0.2		51.4		40.3
Net investment in operating leases	0.4		8.1		—		8.1		5.6
Total securitization transactions	$	4.4	$	59.7	$	0.2	$	59.5	$	45.9

__________

(a) Unearned interest supplements and residual support are excluded from securitization transactions.

(b) Includes assets to be used to settle the liabilities of the consolidated VIEs.

Schedule Of Interest Expense related to Securitization Transactions [Table Text Block]

Interest expense related to securitization debt for the periods ended September 30 was as follows (in millions):

	Third Quarter				First Nine Months
	2014		2013		2014		2013
VIE	$	125	$	138	$	377	$	434
Non-VIE	24		19		67		54
Total securitization transactions	$	149	$	157	$	444	$	488

Schedule of Exposures Based on the Fair Value of Derivative Instruments Related to Securitization Programs [Table Text Block]

Our exposures based on the fair value of derivative instruments with external counterparties related to securitization programs were as follows (in millions):

	September 30, 2014				December 31, 2013
	Derivative Asset		Derivative Liability		Derivative Asset		Derivative Liability
Derivatives of the VIEs	$	13	$	18	$	5	$	88
Derivatives related to the VIEs	15		10		23		30
Other securitization related derivatives	7		2		5		7
Total exposures related to securitization	$	35	$	30	$	33	$	125

Schedule of Derivative Expense/(Income) Related to Securitization Transactions [Table Text Block]

Derivative expense/(income) related to our securitization transactions for the periods ended September 30 was as follows (in millions):

	Third Quarter						First Nine Months
	2014			2013			2014			2013
VIEs	$	(22	)	$	73		$	(4	)	$	(20	)
Related to the VIEs	(10		)	(2		)	(10		)	8
Other securitization related derivatives	(4		)	7			11			6
Total derivative expense/(income) related to securitization	$	(36	)	$	78		$	(3	)	$	(6	)

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Debt Repurchases and Calls (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Unsecured Debt [Member]
Debt Repurchases and Calls [Line Items]
Extinguishment of debt amount	$ 0	$ 0	$ 216	$ 163
Amount of debt extinguished that was due to mature in the current year	0	0	0	0
Gains/(Losses) on Extinguishment of Debt	$ 0	$ 0	$ 2	$ 1
Asset Backed Debt [Member]
Debt Repurchases and Calls [Line Items]
Repurchase or Called Debt Number of Transactions	0	0	0	0

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Transfers of Receivables - Financial Performance Related to Securitizations (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Securitization Transactions [Line Items]
Interest expense	$ 663	$ 691	$ 2,002	$ 2,056
Securitization Transactions [Member]
Securitization Transactions [Line Items]
Interest expense	149	157	444	488
Securitization Transactions [Member] | Variable Interest Entity, Primary Beneficiary [Member]
Securitization Transactions [Line Items]
Interest expense	125	138	377	434
Securitization Transactions [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [Member]
Securitization Transactions [Line Items]
Interest expense	$ 24	$ 19	$ 67	$ 54

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Consolidated Statement of Shareholder's Interest (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Shareholder's Interest [Roll Forward]
Balance at beginning of period			$ 10,604	$ 9,653
Net income	718	272	1,294	911
Condolidation, Wholly Owned Subsidiary, Parent Ownership Interest, Purchase of Interest by Parent			0	3
Other comprehensive income/(loss), net of tax	(335)	176	(332)	(62)
Distributions			(244)	(56)
Balance at end of period	11,322	10,449	11,322	10,449
Shareholder's Interest [Member]
Shareholder's Interest [Roll Forward]
Balance at beginning of period			5,217	5,274
Net income			0	0
Condolidation, Wholly Owned Subsidiary, Parent Ownership Interest, Purchase of Interest by Parent			0	3
Other comprehensive income/(loss), net of tax			0	(60)
Distributions			0	0
Balance at end of period	5,217	5,217	5,217	5,217
Accumulated Other Comprehensive Income/(Loss) (Note10) [Member]
Shareholder's Interest [Roll Forward]
Balance at beginning of period			717	743
Net income			0	0
Condolidation, Wholly Owned Subsidiary, Parent Ownership Interest, Purchase of Interest by Parent			0	0
Other comprehensive income/(loss), net of tax	(335)	236	(332)	(2)
Distributions			0	0
Balance at end of period	385	741	385	741
Retained Earnings [Member]
Shareholder's Interest [Roll Forward]
Balance at beginning of period			4,670	3,636
Net income			1,294	911
Condolidation, Wholly Owned Subsidiary, Parent Ownership Interest, Purchase of Interest by Parent			0	0
Other comprehensive income/(loss), net of tax			0	0
Distributions			(244)	(56)
Balance at end of period	$ 5,720	$ 4,491	$ 5,720	$ 4,491

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Allowance for Credit Losses

9 Months Ended

Sep. 30, 2014

Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]

ALLOWANCE FOR CREDIT LOSSES

ALLOWANCE FOR CREDIT LOSSES

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) was as follows:

	Third Quarter 2014
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	303		$	24		$	327		$	26		$	353
Charge-offs	(68		)	(2		)	(70		)	(28		)	(98		)
Recoveries	33			2			35			15			50
Provision for credit losses	42			(3		)	39			18			57
Other (a)	(5		)	(1		)	(6		)	—			(6		)
Ending balance	$	305		$	20		$	325		$	31		$	356

	First Nine Months 2014
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	327		$	30		$	357		$	23		$	380
Charge-offs	(200		)	(7		)	(207		)	(82		)	(289		)
Recoveries	101			8			109			47			156
Provision for credit losses	82			(10		)	72			43			115
Other (a)	(5		)	(1		)	(6		)	—			(6		)
Ending balance	$	305		$	20		$	325		$	31		$	356
Analysis of ending balance of allowance for credit losses
Collective impairment allowance	$	283		$	19		$	302		$	31		$	333
Specific impairment allowance	22			1			23			—			23
Ending balance	305			20			325			31			$	356
Analysis of ending balance of finance receivables and net investment in operating leases
Collectively evaluated for impairment	53,150			31,815			84,965			20,947
Specifically evaluated for impairment	421			136			557			—
Recorded investment	53,571			31,951			85,522			20,947
Ending balance, net of allowance for credit losses	$	53,266		$	31,931		$	85,197		$	20,916

__________

(a) Primarily represents amounts related to translation adjustments.

NOTE 4. ALLOWANCE FOR CREDIT LOSSES (Continued)

	Third Quarter 2013
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	322		$	31		$	353		$	23		$	376
Charge-offs	(73		)	(3		)	(76		)	(17		)	(93		)
Recoveries	34			1			35			11			46
Provision for credit losses	32			(1		)	31			1			32
Other (a)	5			1			6			1			7
Ending balance	$	320		$	29		$	349		$	19		$	368

	First Nine Months 2013
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	356		$	29		$	385		$	23		$	408
Charge-offs	(213		)	(13		)	(226		)	(47		)	(273		)
Recoveries	110			4			114			35			149
Provision for credit losses	65			8			73			8			81
Other (a)	2			1			3			—			3
Ending balance	$	320		$	29		$	349		$	19		$	368
Analysis of ending balance of allowance for credit losses
Collective impairment allowance	$	298		$	27		$	325		$	19		$	344
Specific impairment allowance	22			2			24			—			24
Ending balance	320			29			349			19			$	368
Analysis of ending balance of finance receivables and net investment in operating leases
Collectively evaluated for impairment	48,897			29,696			78,593			17,367
Specifically evaluated for impairment	424			58			482			—
Recorded investment	49,321			29,754			79,075			17,367
Ending balance, net of allowance for credit losses	$	49,001		$	29,725		$	78,726		$	17,348

__________

(a) Primarily represents amounts related to translation adjustments.

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Derivative Financial Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

The following table summarizes by hedge designation the pre-tax gains/(losses) recognized in income for the periods ended September 30 (in millions):

	Third Quarter						First Nine Months
	2014			2013			2014			2013
Fair value hedges
Interest rate contracts
Net interest settlements and accruals excluded from the assessment of hedge effectiveness	$	79		$	63		$	220		$	186
Ineffectiveness (a)	(2		)	(3		)	8			(33		)
Total	$	77		$	60		$	228		$	153
Derivatives not designated as hedging instruments
Interest rate contracts	$	(10	)	$	(18	)	$	(37	)	$	(20	)
Foreign currency exchange contracts (b)	52			(55		)	22			28
Cross-currency interest rate swap contracts (b)	118			(131		)	102			(37		)
Total	$	160		$	(204	)	$	87		$	(29	)

__________

(a) For the third quarter of 2014 and 2013, hedge ineffectiveness reflects change in fair value on derivatives of $88 million loss and $67 million gain, respectively, and change in value on hedged debt attributable to the change in benchmark interest rate of $86 million gain and $70 million loss, respectively. For the first nine months of 2014 and 2013, hedge ineffectiveness reflects change in fair value on derivatives of $179 million gain and$501 million loss, respectively, and change in value on hedged debt attributable to the change in benchmark interest rate of $171 million loss and $468 million gain, respectively.

(b) Gains/(Losses) related to foreign currency derivatives were mostly offset by net revaluation impacts on foreign denominated debt, which were also recorded in Other income, net.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The following table summarizes the notional amount and estimated fair value of our derivative financial instruments (in millions):

	September 30, 2014						December 31, 2013
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	22,943	$	424	$	157	$	18,778	$	360	$	179
Derivatives not designated as hedging instruments
Interest rate contracts	56,607		254		78		69,863		224		126
Foreign currency exchange contracts (a)	2,324		56		12		2,410		1		25
Cross-currency interest rate swap contracts	2,513		17		44		2,620		—		176
Total derivatives not designated as hedging instruments	61,444		327		134		74,893		225		327
Total derivative financial instruments	$	84,387	$	751	$	291	$	93,671	$	585	$	506

__________

(a) Includes forward contracts between Ford Credit and an affiliated company.

Offsetting Derivative Assets and Liabilities [Table Text Block]

The gross and net amounts of derivative assets and liabilities were as follows (in millions):

	September 30, 2014						December 31, 2013
	Fair Value of Assets			Fair Value of Liabilities			Fair Value of Assets			Fair Value of Liabilities
Gross derivative amounts recognized in the balance sheet	$	751		$	291		$	585		$	506
Gross derivative amounts not offset in the balance sheet that are eligible for offsetting	(242		)	(242		)	(296		)	(296		)
Net amount	$	509		$	49		$	289		$	210

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Net Investments in Operating Leases (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
Property Subject to or Available for Operating Lease [Line Items]
Length of lease contract	60 months or less
Vehicles, at cost, including initial direct costs	$ 24,220		$ 21,092
Less: Accumulated depreciation	(3,273)		(2,792)
Net investment in operating leases before allowance for credit losses	20,947		18,300	17,367
Less: Allowance for credit losses	(31)	(26)	(23)	(19)	(23)	(23)
Net investment in operating leases	20,916		18,277	17,348
Securitization Transactions [Member]
Property Subject to or Available for Operating Lease [Line Items]
Net investment in operating leases	$ 9,900		$ 8,100

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Segment Information

9 Months Ended

Sep. 30, 2014

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 they 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. Receivables for the North America and International Segments are presented on a managed basis. Management believes that managed receivables is the appropriate measurement of business growth, as it closely approximates the customers’ outstanding balance on the receivables, which is the basis for earning revenue. As a result, managed receivables equals total net finance receivables and net investment in operating leases, excluding unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation).

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			Adjustment to Receivables (a)		Total Unallocated/Eliminations			Total
Third Quarter 2014
Total revenue (b)	$	1,883	$	438	$	(9	)	$	—	$	(9	)	$	2,312
Income before income taxes	374		133		(9		)	—		(9		)	498
Other disclosures
Depreciation on vehicles subject to operating leases	791		10		—			—		—			801
Interest expense	498		165		—			—		—			663
Provision for credit losses	48		9		—			—		—			57
Third Quarter 2013
Total revenue (b)	$	1,711	$	394	$	(22	)	$	—	$	(22	)	$	2,083
Income before income taxes	358		91		(22		)	—		(22		)	427
Other disclosures
Depreciation on vehicles subject to operating leases	621		8		—			—		—			629
Interest expense	536		155		—			—		—			691
Provision for credit losses	31		1		—			—		—			32

__________

(a) Includes unearned interest supplements and residual support, allowances for credit losses, and other (primarily accumulated supplemental depreciation).

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

NOTE 14. SEGMENT INFORMATION (Continued)

					Unallocated/Eliminations
	North America Segment		International Segment		Unallocated Risk Management			Adjustment to Receivables (a)			Total Unallocated/Eliminations			Total
First Nine Months 2014
Total revenue (b)	$	5,470	$	1,258	$	(23	)	$	—		$	(23	)	$	6,705
Income before income taxes	1,069		385		(23		)	—			(23		)	1,431
Other disclosures
Depreciation on vehicles subject to operating leases	2,218		30		—			—			—			2,248
Interest expense	1,521		481		—			—			—			2,002
Provision for credit losses	94		21		—			—			—			115
Net finance receivables and net investment in operating leases	88,599		21,766		—			(4,252		)	(4,252		)	106,113
Total assets	95,491		25,725		—			—			—			121,216
First Nine Months 2013
Total revenue (b)	$	4,931	$	1,133	$	(38	)	$	—		$	(38	)	$	6,026
Income before income taxes	1,156		270		(38		)	—			(38		)	1,388
Other disclosures
Depreciation on vehicles subject to operating leases	1,641		22		—			—			—			1,663
Interest expense	1,576		480		—			—			—			2,056
Provision for credit losses	57		24		—			—			—			81
Net finance receivables and net investment in operating leases	80,236		19,174		—			(3,336		)	(3,336		)	96,074
Total assets	88,476		23,358		—			—			—			111,834

__________

(a) Includes unearned interest supplements and residual support, allowances for credit losses, and other (primarily accumulated supplemental depreciation).

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