10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________

FORM 10-Q

(Mark One)

þ	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended September 30, 2018

or

o	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 every Interactive Data File required to be submitted 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 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, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

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

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 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.

Exhibits begin on page 50

FORD MOTOR CREDIT COMPANY LLC

QUARTERLY REPORT ON FORM 10-Q

For the Quarter Ended September 30, 2018

	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
	Condensed Consolidated Statement of Cash Flows	4
	Notes to the Financial Statements	5
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
	Results of Operations	25
	Financing Shares and Contract Placement Volume	30
	Financial Condition	33
	Credit Risk	35
	Residual Risk	39
	Credit Ratings	41
	Funding and Liquidity	42
	Leverage	46
	Outlook	47
	Cautionary Note on Forward-Looking Statements	48
	Accounting Standards Issued But Not Yet Adopted	49
Item 3	Quantitative and Qualitative Disclosures About Market Risk	49
Item 4	Controls and Procedures	49
	Part II. Other Information
Item 1	Legal Proceedings	50
Item 5	Other Information	50
Item 6	Exhibits	50
	Signature	51

i

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENT

(in millions)

	For the periods ended September 30,
	2017			2018			2017			2018
	Third Quarter						First Nine Months
	(unaudited)
Financing revenue
Operating leases	$	1,394		$	1,463		$	4,141		$	4,321
Retail financing	891			983			2,518			2,890
Dealer financing	462			519			1,389			1,624
Other	17			20			51			62
Total financing revenue	2,764			2,985			8,099			8,897
Depreciation on vehicles subject to operating leases	(989		)	(907		)	(3,090		)	(2,898		)
Interest expense	(810		)	(989		)	(2,308		)	(2,898		)
Net financing margin	965			1,089			2,701			3,101
Other revenue
Insurance premiums earned	38			39			120			123
Fee based revenue and other	61			57			177			180
Total financing margin and other revenue	1,064			1,185			2,998			3,404
Expenses
Operating expenses	324			368			930			1,070
Provision for credit losses (Note 6)	169			156			420			367
Insurance expenses	28			19			121			77
Total expenses	521			543			1,471			1,514
Other income, net (Note 13)	57			36			173			74
Income before income taxes	600			678			1,700			1,964
Provision for / (Benefit from) income taxes	186			160			507			266
Net income	$	414		$	518		$	1,193		$	1,698

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(in millions)

	For the periods ended September 30,
	2017		2018			2017		2018
	Third Quarter					First Nine Months
	(unaudited)
Net income	$	414	$	518		$	1,193	$	1,698
Other comprehensive income / (loss), net of tax (Note 12)
Foreign currency translation	204		(49		)	485		(300		)
Comprehensive income / (loss)	$	618	$	469		$	1,678	$	1,398

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)

	December 31, 2017			September 30, 2018
	(unaudited)
ASSETS
Cash and cash equivalents (Note 3)	$	9,558		$	10,997
Marketable securities (Note 3)	2,881			1,740
Finance receivables, net (Note 4)	116,003			116,044
Net investment in operating leases (Note 5)	26,661			27,570
Notes and accounts receivable from affiliated companies	1,076			971
Derivative financial instruments (Note 9)	935			607
Other assets (Note 10)	3,329			3,317
Total assets	$	160,443		$	161,246
LIABILITIES
Accounts payable
Customer deposits, dealer reserves, and other	$	1,171		$	1,140
Affiliated companies	592			1,013
Total accounts payable	1,763			2,153
Debt (Note 11)	137,828			138,230
Deferred income taxes	2,386			2,503
Derivative financial instruments (Note 9)	310			1,102
Other liabilities and deferred income (Note 10)	2,272			2,039
Total liabilities	144,559			146,027
SHAREHOLDER’S INTEREST
Shareholder’s interest	5,227			5,227
Accumulated other comprehensive income / (loss) (Note 12)	(419		)	(719		)
Retained earnings	11,076			10,711
Total shareholder’s interest	15,884			15,219
Total liabilities and shareholder’s interest	$	160,443		$	161,246

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 7 and 8 for additional information on our VIEs.

	December 31, 2017		September 30, 2018
	(unaudited)
ASSETS
Cash and cash equivalents	$	3,479	$	2,746
Finance receivables, net	56,250		56,412
Net investment in operating leases	11,503		12,441
Derivative financial instruments	64		55
LIABILITIES
Debt	$	46,437	$	50,564
Derivative financial instruments	2		2

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

(in millions, unaudited)

	Shareholder’s Interest		Accumulated Other Comprehensive Income / (Loss) (Note 12)			Retained Earnings			Total Shareholder’s Interest
Balance at December 31, 2016	$	5,227	$	(890	)	$	8,466		$	12,803
Net income	—		—			1,193			1,193
Other comprehensive income / (loss), net of tax	—		485			—			485
Adoption of accounting standard	—		—			9			9
Distributions declared	—		—			(406		)	(406		)
Balance at September 30, 2017	$	5,227	$	(405	)	$	9,262		$	14,084
Balance at December 31, 2017	$	5,227	$	(419	)	$	11,076		$	15,884
Net income	—		—			1,698			1,698
Other comprehensive income / (loss), net of tax	—		(300		)	—			(300		)
Distributions declared	—		—			(2,063		)	(2,063		)
Balance at September 30, 2018	$	5,227	$	(719	)	$	10,711		$	15,219

The accompanying notes are part of the financial statements.

3

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(in millions)

	For the periods ended September 30,
	2017			2018
	First Nine Months
	(unaudited)
Cash flows from operating activities
Net cash provided by / (used in) operating activities	$	4,451		$	4,594
Cash flows from investing activities
Purchases of finance receivables	(30,543		)	(33,751		)
Principal collections of finance receivables	27,254			31,993
Purchases of operating lease vehicles	(9,935		)	(11,015		)
Proceeds from termination of operating lease vehicles	6,623			7,086
Net change in wholesale receivables and other short-duration receivables	1,560			686
Purchases of marketable securities	(4,359		)	(3,401		)
Proceeds from sales and maturities of marketable securities	4,564			4,504
Settlements of derivatives	(48		)	228
All other investing activities	(18		)	117
Net cash provided by / (used in) investing activities	(4,902		)	(3,553		)
Cash flows from financing activities
Proceeds from issuances of long-term debt	29,982			37,035
Principal payments on long-term debt	(30,291		)	(32,588		)
Change in short-term debt, net	1,709			(1,677		)
Cash distributions to parent	(406		)	(2,063		)
All other financing activities	(74		)	(141		)
Net cash provided by / (used in) financing activities	920			566
Effect of exchange rate changes on cash, cash equivalents and restricted cash	302			(145		)
Net increase / (decrease) in cash, cash equivalents and restricted cash	$	771		$	1,462
Cash, cash equivalents and restricted cash at January 1 (Note 3)	$	8,185		$	9,682
Net increase / (decrease) in cash, cash equivalents and restricted cash	771			1,462
Cash, cash equivalents and restricted cash at September 30 (Note 3)	$	8,956		$	11,144

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	Presentation	6
Note 2	Accounting Policies	6
Note 3	Cash, Cash Equivalents, and Marketable Securities	8
Note 4	Finance Receivables	9
Note 5	Net Investment in Operating Leases	12
Note 6	Allowance for Credit Losses	13
Note 7	Transfers of Receivables	15
Note 8	Variable Interest Entities	17
Note 9	Derivative Financial Instruments and Hedging Activities	17
Note 10	Other Assets and Other Liabilities and Deferred Income	19
Note 11	Debt and Commitments	20
Note 12	Accumulated Other Comprehensive Income / (Loss)	20
Note 13	Other Income, Net	21
Note 14	Segment Information	21
Note 15	Commitments and Contingencies	23

5

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1. PRESENTATION

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, 2017 (“2017 Form 10-K Report”). We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation.

In June 2018, Argentina was classified as having a highly inflationary economy due to the three-year cumulative consumer price index exceeding 100%. As a result, we changed the functional currency for our operations in Argentina from the Argentine peso to the U.S. dollar as of July 1, 2018.

NOTE 2. ACCOUNTING POLICIES

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 infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.

For the third quarter and first nine months of 2018, our effective tax rates were 23.6% and 13.5%, respectively. During the first quarter of 2018, we recognized $235 million of benefit for non-U.S. capital loss carryforwards expected to be realized in the foreseeable future.

Adoption of New Accounting Standards

Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging. On January 1, 2018, we adopted the amendments to Accounting Standards Codification (“ASC”) 815 which aligns hedge accounting with risk management activities and simplifies the requirements to qualify for hedge accounting. Adoption did not have a material impact on our financial statements. We continue to assess opportunities enabled by the new standard to expand our risk management strategies.

ASU 2016-01, Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities. On January 1, 2018, we adopted ASU 2016-01 and the related amendments. This standard amends various aspects of the recognition, measurement, presentation, and disclosure of financial instruments. We adopted the measurement alternative for equity investments without readily determinable fair values (often referred to as cost method investments) on a prospective basis. As a result, these investments will be revalued upon occurrence of an observable price change for similar investments and for impairments. We anticipate adoption may increase the volatility on our consolidated income statement.

We also adopted the following ASUs during 2018, none of which had a material impact to our financial statements or financial statement disclosures:

ASU		Effective Date
2017-08	Nonrefundable Fees and Other Costs - Premium Amortization on Purchased Callable Debt Securities	January 1, 2018
2016-18	Statement of Cash Flows - Restricted Cash	January 1, 2018
2016-16	Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory	January 1, 2018
2016-15	Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments	January 1, 2018

6

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 2. ACCOUNTING POLICIES (Continued)

Accounting Standards Issued But Not Yet Adopted

The following represent the standards that will, or are expected to, result in a significant change in practice and / or have a significant financial impact to Ford Credit.

ASU 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments. In June 2016, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard which replaces the current incurred loss impairment method with a method that reflects expected credit losses. We plan to adopt the new standard on its effective date of January 1, 2020 by recognizing the cumulative effect of initially applying the new standard as an adjustment to the opening balance of Retained earnings. We anticipate adoption will increase the amount of expected credit losses reported in Finance receivables, net on our consolidated balance sheet and do not expect a material impact to our income statement.

ASU 2016-02, Leases.  In February 2016, the FASB issued a new accounting standard which provides guidance on the recognition, measurement, presentation, and disclosure of leases. The new standard supersedes the present U.S. GAAP standard on leases and requires substantially all leases to be reported on the balance sheet as right-of-use assets and lease obligations. We plan to adopt the new standard on its effective date of January 1, 2019. We anticipate adoption of the standard will add about $100 million of right-of-use assets and lease obligations to our consolidated balance sheet and will not significantly impact our income statement. We plan to elect the practical expedients upon transition that will retain the lease classification and initial direct costs for any leases that exist prior to adoption of the standard. We will not reassess whether any contracts entered into prior to adoption are leases. We are in the process of cataloging our existing lease contracts, assessing impact as a lessor, and implementing changes to our systems.

7

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES

The following table categorizes the fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis (in millions):

	Fair Value Level	December 31, 2017		September 30, 2018
Cash and cash equivalents
U.S. government	1	$	—	$	569
U.S. government and agencies	2	300		422
Non-U.S. government and agencies	2	703		565
Corporate debt	2	25		889
Total marketable securities classified as cash equivalents		1,028		2,445
Cash, time deposits and money market funds		8,530		8,552
Total cash and cash equivalents		$	9,558	$	10,997
Marketable Securities
U.S. government	1	$	966	$	257
U.S. government and agencies	2	384		139
Non-U.S. government and agencies	2	660		888
Corporate debt	2	848		305
Other marketable securities	2	23		151
Total marketable securities		$	2,881	$	1,740

Cash, Cash Equivalents, and Restricted Cash

Cash, cash equivalents, and restricted cash as reported in the statement of cash flows are presented separately on our consolidated balance sheet as follows (in millions):

	December 31, 2017		September 30, 2018
Cash and cash equivalents	$	9,558	$	10,997
Restricted cash included in other assets (a)	124		147
Total cash, cash equivalents, and restricted cash	$	9,682	$	11,144

__________

(a) 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.

8

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 4. FINANCE RECEIVABLES

We manage finance receivables as “consumer” and “non-consumer” portfolios. The receivables are generally secured by the vehicles, inventory, or other property being financed.

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

	December 31, 2017			September 30, 2018
Consumer
Retail financing, gross	$	78,467		$	80,269
Unearned interest supplements from Ford and affiliated companies	(3,280		)	(3,442		)
Consumer finance receivables	75,187			76,827
Non-Consumer
Dealer financing	39,241			38,017
Other financing	2,172			1,786
Non-Consumer finance receivables	41,413			39,803
Total recorded investment	$	116,600		$	116,630
Recorded investment in finance receivables	$	116,600		$	116,630
Allowance for credit losses	(597		)	(586		)
Finance receivables, net	$	116,003		$	116,044
Net finance receivables subject to fair value (a)	$	112,717		$	112,367
Fair value	112,133			111,591

__________

(a) At December 31, 2017 and September 30, 2018, Finance receivables, net includes $3.3 billion and $3.7 billion, respectively, of direct financing leases that are not subject to fair value disclosure requirements. The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy.

Excluded from finance receivables at both December 31, 2017 and September 30, 2018 was $241 million of accrued uncollected interest, which we report in Other assets on our balance sheet.

Included in recorded investment in finance receivables at December 31, 2017 and September 30, 2018, were consumer receivables of $38.9 billion and $38.8 billion, respectively, and non-consumer receivables of $24.5 billion and $23.3 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 the other obligations or the claims of Ford Credit’s other creditors. Ford Credit holds 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 7 for additional information).

9

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 4. 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 $24 million and $21 million at December 31, 2017 and September 30, 2018, respectively. The recorded investment of non-consumer receivables greater than 90 days past due and still accruing interest was $1 million and de minimis at December 31, 2017 and September 30, 2018, respectively.

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

	December 31, 2017		September 30, 2018
Consumer
31-60 days past due	$	748	$	691
61-90 days past due	113		109
91-120 days past due	36		42
Greater than 120 days past due	37		40
Total past due	934		882
Current	74,253		75,945
Consumer finance receivables	75,187		76,827
Non-Consumer
Total past due	122		77
Current	41,291		39,726
Non-Consumer finance receivables	41,413		39,803
Total recorded investment	$	116,600	$	116,630

Credit Quality

Consumer Portfolio.

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; and

• 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 less costs to sell.

Non-Consumer Portfolio.

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; and

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

10

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 4. FINANCE RECEIVABLES (Continued)

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

	December 31, 2017		September 30, 2018
Dealer financing
Group I	$	31,551	$	30,704
Group II	5,912		5,532
Group III	1,640		1,616
Group IV	138		165
Total recorded investment	$	39,241	$	38,017

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 December 31, 2017 and September 30, 2018 was $386 million and $379 million, or 0.5% and 0.5% of consumer receivables, respectively. The recorded investment of non-consumer receivables that were impaired at December 31, 2017 and September 30, 2018 was $138 million and $165 million, or 0.3% and 0.4% of non-consumer receivables, respectively. Impaired finance receivables are evaluated both collectively and specifically.

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.

11

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 5. NET INVESTMENT IN OPERATING LEASES

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

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

	December 31, 2017			September 30, 2018
Vehicles, at cost (a)	$	32,659		$	33,703
Accumulated depreciation	(5,927		)	(6,056		)
Net investment in operating leases before allowance for credit losses	26,732			27,647
Allowance for credit losses	(71		)	(77		)
Net investment in operating leases	$	26,661		$	27,570

__________

(a) Includes interest supplements and residual support payments we receive on certain leasing transactions under agreements with Ford and affiliated companies, and other vehicle acquisition costs.

At December 31, 2017 and September 30, 2018, net investment in operating leases before allowance for credit losses includes $11.5 billion and $12.4 billion, respectively, of net investment in operating leases that have been included in securitization transactions but continue to be reported in our consolidated financial statements. These net investments 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 7 for additional information).

12

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 6. 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 was as follows (in millions):

	Third Quarter 2017
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	507		$	15		$	522		$	66		$	588
Charge-offs	(132		)	—			(132		)	(51		)	(183		)
Recoveries	36			4			40			25			65
Provision for credit losses	146			(6		)	140			29			169
Other (a)	5			—			5			—			5
Ending balance	$	562		$	13		$	575		$	69		$	644
	First Nine Months 2017
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	469		$	15		$	484		$	64		$	548
Charge-offs	(366		)	(3		)	(369		)	(155		)	(524		)
Recoveries	105			8			113			73			186
Provision for credit losses	341			(7		)	334			86			420
Other (a)	13			—			13			1			14
Ending balance	$	562		$	13		$	575		$	69		$	644
Analysis of ending balance of allowance for credit losses
Collective impairment allowance	$	541		$	13		$	554		$	69		$	623
Specific impairment allowance	21			—			21			—			21
Ending balance	562			13			575			69			$	644
Analysis of ending balance of finance receivables and net investment in operating leases
Collectively evaluated for impairment	72,069			38,564			110,633			27,000
Specifically evaluated for impairment	387			152			539			—
Recorded investment	72,456			38,716			111,172			27,000
Ending balance, net of allowance for credit losses	$	71,894		$	38,703		$	110,597		$	26,931

__________

(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 6. ALLOWANCE FOR CREDIT LOSSES (Continued)

	Third Quarter 2018
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	573		$	14		$	587		$	72		$	659
Charge-offs (a)	(128		)	(43		)	(171		)	(51		)	(222		)
Recoveries	40			4			44			26			70
Provision for credit losses	73			52			125			31			156
Other (b)	1			—			1			(1		)	—
Ending balance	$	559		$	27		$	586		$	77		$	663
	First Nine Months 2018
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	582		$	15		$	597		$	71		$	668
Charge-offs (a)	(382		)	(46		)	(428		)	(149		)	(577		)
Recoveries	126			6			132			78			210
Provision for credit losses	237			52			289			78			367
Other (b)	(4		)	—			(4		)	(1		)	(5		)
Ending balance	$	559		$	27		$	586		$	77		$	663
Analysis of ending balance of allowance for credit losses
Collective impairment allowance	$	538		$	14		$	552		$	77		$	629
Specific impairment allowance	21			13			34			—			34
Ending balance	559			27			586			77			$	663
Analysis of ending balance of finance receivables and net investment in operating leases
Collectively evaluated for impairment	76,448			39,638			116,086			27,647
Specifically evaluated for impairment	379			165			544			—
Recorded investment	76,827			39,803			116,630			27,647
Ending balance, net of allowance for credit losses	$	76,268		$	39,776		$	116,044		$	27,570

__________

(a) The charge-off of non-consumer (dealer financing) receivables primarily reflects a specific U.S. dealer’s wholesale vehicle inventory and dealer loan determined to be uncollectible.

(b) 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 7. 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 including the United States, Canada, several European countries, Mexico, and China.

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 8 for additional 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):

	December 31, 2017
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt (c)
			Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses
VIE (b)
Retail financing	$	1.8	$	32.6	$	0.2	$	32.4	$	27.7
Wholesale financing	1.2		23.9		—		23.9		11.5
Finance receivables	3.0		56.5		0.2		56.3		39.2
Net investment in operating leases	0.5		11.5		—		11.5		7.2
Total VIE	$	3.5	$	68.0	$	0.2	$	67.8	$	46.4
Non-VIE
Retail financing	$	0.3	$	6.3	$	—	$	6.3	$	5.7
Wholesale financing	—		0.6		—		0.6		0.5
Finance receivables	0.3		6.9		—		6.9		6.2
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.3	$	6.9	$	—	$	6.9	$	6.2
Total securitization transactions
Retail financing	$	2.1	$	38.9	$	0.2	$	38.7	$	33.4
Wholesale financing	1.2		24.5		—		24.5		12.0
Finance receivables	3.3		63.4		0.2		63.2		45.4
Net investment in operating leases	0.5		11.5		—		11.5		7.2
Total securitization transactions	$	3.8	$	74.9	$	0.2	$	74.7	$	52.6

__________

(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.

(c) Includes unamortized discount and debt issuance costs.

15

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 7. TRANSFERS OF RECEIVABLES (Continued)

	September 30, 2018
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt (c)
			Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses
VIE (b)
Retail financing	$	1.9	$	33.9	$	0.2	$	33.7	$	29.4
Wholesale financing	0.3		22.7		—		22.7		13.5
Finance receivables	2.2		56.6		0.2		56.4		42.9
Net investment in operating leases	0.5		12.4		—		12.4		7.7
Total VIE	$	2.7	$	69.0	$	0.2	$	68.8	$	50.6
Non-VIE
Retail financing	$	0.3	$	4.9	$	—	$	4.9	$	4.3
Wholesale financing	—		0.6		—		0.6		0.5
Finance receivables	0.3		5.5		—		5.5		4.8
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.3	$	5.5	$	—	$	5.5	$	4.8
Total securitization transactions
Retail financing	$	2.2	$	38.8	$	0.2	$	38.6	$	33.7
Wholesale financing	0.3		23.3		—		23.3		14.0
Finance receivables	2.5		62.1		0.2		61.9		47.7
Net investment in operating leases	0.5		12.4		—		12.4		7.7
Total securitization transactions	$	3.0	$	74.5	$	0.2	$	74.3	$	55.4

__________

(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.

(c) Includes unamortized discount and debt issuance cost.

16

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 8. VARIABLE INTEREST ENTITIES

We use special purpose entities to issue asset-backed securities in transactions to public and private investors. We have deemed most of these special purpose entities to be VIEs of which we are the primary beneficiary. 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.

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.

See Note 7 for additional information on the financial position and financial performance of our VIEs and Note 9 for additional information regarding derivatives.

NOTE 9. 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 highly effective derivative contracts. 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. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting.

Income Effect of Derivative Financial Instruments

The gains / (losses), by hedge designation, recorded in income for the periods ended September 30 were as follows (in millions):

	Third Quarter						First Nine Months
	2017			2018			2017			2018
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments	$	50		$	(5	)	182			$	19
Fair value changes on hedging instruments (a)	(40		)	(102		)	(95		)	(531		)
Fair value changes on hedged debt (a)	40			110			95			521
Derivatives not designated as hedging instruments
Interest rate contracts	20			9			57			(28		)
Foreign currency exchange contracts (b)	(61		)	6			(151		)	104
Cross-currency interest rate swap contracts	5			(75		)	$	79		(258		)
Total	$	14		$	(57	)	$	167		$	(173	)

__________

(a) For 2017, the fair value changes on hedging instruments and on hedged debt were recorded in Other income, net;effective 2018, these amounts were reported in Interest expense.

(b) Reflects forward contracts between Ford Credit and an affiliated company.

17

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 9. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)

Balance Sheet Effect of Derivative Financial Instruments

Derivative assets and liabilities are recorded on the balance sheet at fair value and are presented on a gross basis. The notional amounts of the derivative instruments do not necessarily represent amounts exchanged by the parties and are not a direct measure of our financial exposure. We also enter into master agreements with counterparties that may allow for netting of exposure in the event of default or breach of the counterparty agreement. Collateral represents cash received or paid under reciprocal arrangements that we have entered into with our derivative counterparties which we do not use to offset our derivative assets and liabilities.

The fair value of our derivative instruments and the associated notional amounts, presented gross, were as follows (in millions):

	December 31, 2017						September 30, 2018
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	28,008	$	248	$	135	$	27,769	$	112	$	632
Derivatives not designated as hedging instruments
Interest rate contracts	60,504		276		137		68,226		250		298
Foreign currency exchange contracts	2,406		3		10		3,510		39		6
Cross-currency interest rate swap contracts	4,006		408		28		5,649		206		166
Total derivative financial instruments, gross (a) (b)	$	94,924	$	935	$	310	$	105,154	$	607	$	1,102

__________

(a) At December 31, 2017 and September 30, 2018, we held collateral of $15 million and $16 million, respectively, and we posted collateral of $38 million and $59 million, respectively.

(b) At December 31, 2017 and September 30, 2018, the fair value of assets and liabilities available for counterparty netting was $162 million and $146 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.

18

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 10. OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED REVENUE

Other assets and other liabilities and deferred revenue 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):

	December 31, 2017		September 30, 2018
Accrued interest and other non-finance receivables	$	1,117	$	1,075
Collateral held for resale, at net realizable value, and other inventory	780		740
Prepaid reinsurance premiums and other reinsurance recoverables	611		651
Deferred charges – income taxes	247		225
Property and equipment, net of accumulated depreciation (a)	177		187
Restricted cash	124		147
Investment in non-consolidated affiliates	107		117
Deferred charges	127		95
Other	39		80
Total other assets	$	3,329	$	3,317

__________

(a) Accumulated depreciation was $354 million and $361 million at December 31, 2017 and September 30, 2018, respectively.

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

	December 31, 2017		September 30, 2018
Unearned insurance premiums and fees	$	723	$	769
Interest payable	722		572
Income tax and related interest (a)	301		290
Deferred revenue	148		103
Payroll and employee benefits	68		70
Other	310		235
Total other liabilities and deferred income	$	2,272	$	2,039

__________

(a) Includes tax and interest payable to affiliated companies of $99 million and $94 million at December 31, 2017 and September 30, 2018, respectively.

We have investments in entities for which we do not have the ability to exercise significant influence and fair values are not readily available. We have elected to record these investments at cost (less impairment, if any), adjusted for changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. We report the carrying value of these investments in Other assets in our consolidated balance sheet. These investments were $7 million and $9 million at December 31, 2017 and September 30, 2018, respectively. There were no material adjustments to the fair values of these investments during the period ending September 30, 2018.

Deferred revenue balances presented above include amounts from contracts with customers primarily related to admission fee revenue on group financing products available in Argentina and were $124 million and $76 million at December 31, 2017 and September 30, 2018, respectively.

Admission fee revenue on group financing products is generally recognized evenly over the term of the agreement, which is up to 84 months. Increases in the admission fee deferred revenue balance are the result of payments due during the current period in advance of satisfying our performance under the contract and decreases are a result of revenue recognized during the current period that was previously deferred.

19

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 11. DEBT AND COMMITMENTS

Debt outstanding and interest rates were as follows (in millions):

							Interest Rates
	Debt						Average Contractual				Average Effective
	December 31, 2017			September 30, 2018			2017		2018		2017		2018
Short-term debt
Unsecured debt
Floating rate demand notes	$	5,660		$	5,939
Commercial paper	4,889			4,175
Other short-term debt	5,890			3,698
Asset-backed debt	786			1,564
Total short-term debt	17,225			15,376			3.0	%	3.1	%	3.0	%	3.1	%
Long-term debt
Unsecured debt
Notes payable within one year	13,298			13,123
Notes payable after one year	55,687			56,591
Asset-backed debt (a)
Notes payable within one year	17,817			19,139
Notes payable after one year	34,051			34,784
Unamortized discount	(1		)	—
Unamortized issuance costs	(228		)	(224		)
Fair value adjustments (b)	(21		)	(559		)
Total long-term debt	120,603			122,854			2.5	%	2.7	%	2.6	%	2.8	%
Total debt	$	137,828		$	138,230		2.6	%	2.8	%	2.6	%	2.8	%
Fair value of debt (c)	$	139,677		$	138,374

__________

(a) 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.

(b) These adjustments relate to designated fair value hedges. The carrying value of hedged debt was $39.0 billion and $39.1 billion at December 31, 2017 and September 30, 2018, respectively.

(c) The fair value of debt includes $16.4 billion and $13.8 billion of short-term debt at December 31, 2017 and September 30, 2018, respectively, carried at cost, which approximates fair value. All other debt is categorized within Level 2 of the fair value hierarchy.

NOTE 12. ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS)

The changes in the balance of Accumulated Other Comprehensive Income / (Loss) (“AOCI”) attributable to Ford Credit for the periods ended September 30 were as follows (in millions):

	Third Quarter						First Nine Months
	2017			2018			2017			2018
Beginning AOCI balance	$	(609	)	$	(670	)	$	(890	)	$	(419	)
Net gain / (loss) on foreign currency translation	204			(49		)	485			(300		)
Ending AOCI balance	$	(405	)	$	(719	)	$	(405	)	$	(719	)

20

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 13. OTHER INCOME, NET

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 for the periods ended September 30 were as follows (in millions):

	Third Quarter						First Nine Months
	2017			2018			2017			2018
Gains / (Losses) on derivatives	$	(36	)	$	(60	)	$	(15	)	$	(182	)
Currency revaluation gains / (losses)	51			36			73			80
Interest and investment income	33			49			80			140
Other	9			11			35			36
Total other income, net	$	57		$	36		$	173		$	74

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 segment our business based on geographic regions: the Americas, Europe, and Asia Pacific. Items excluded in assessing segment performance because they are managed at the corporate level, including market valuation adjustments to derivatives and exchange-rate fluctuations on foreign currency-denominated transactions, are reflected in Unallocated Other. The following is a brief description of our segments:

• Americas Segment – United States, Canada, Mexico, Brazil, and Argentina

• Europe Segment – European region and South Africa

• Asia Pacific Segment – China and India

21

Item 1. Financial Statements (Continued)

FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 14. SEGMENT INFORMATION (Continued)

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

	Americas		Europe		Asia Pacific		Total Segments		Unallocated Other (a)			Total
Third Quarter 2017
Total revenue	$	2,493	$	247	$	123	$	2,863	$	—		$	2,863
Income before income taxes	485		72		23		580		20			600
Other disclosures:
Depreciation on vehicles subject to operating leases	975		14		—		989		—			989
Interest expense	669		65		76		810		—			810
Provision for credit losses	159		7		3		169		—			169
Third Quarter 2018
Total revenue	$	2,677	$	284	$	120	$	3,081	$	—		$	3,081
Income before income taxes	556		89		13		658		20			678
Other disclosures:
Depreciation on vehicles subject to operating leases	895		12		—		907		—			907
Interest expense	848		68		75		991		(2		)	989
Provision for credit losses	145		1		10		156		—			156
First Nine Months 2017
Total revenue	$	7,359	$	709	$	328	$	8,396	$	—		$	8,396
Income before income taxes	1,308		223		69		1,600		100			1,700
Other disclosures:
Depreciation on vehicles subject to operating leases	3,055		35		—		3,090		—			3,090
Interest expense	1,930		187		191		2,308		—			2,308
Provision for credit losses	389		21		10		420		—			420
Net finance receivables and net investment in operating leases	115,331		23,855		5,921		145,107		(7,579		)	137,528
Total assets	120,398		27,323		6,757		154,478		—			154,478
First Nine Months 2018
Total revenue	$	7,918	$	878	$	404	$	9,200	$	—		$	9,200
Income before income taxes	1,619		303		86		2,008		(44		)	1,964
Other disclosures:
Depreciation on vehicles subject to operating leases	2,878		20		—		2,898		—			2,898
Interest expense	2,430		216		256		2,902		(4		)	2,898
Provision for credit losses	340		14		13		367		—			367
Net finance receivables and net investment in operating leases	120,425		25,995		5,720		152,140		(8,526		)	143,614
Total assets	128,103		27,120		6,023		161,246		—			161,246

__________

(a) Net finance receivables and Net investment in operating leases include unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation).

22

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 primarily consist 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 a guarantee or indemnity, 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 underlying 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 a 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 $52 million and $55 million at December 31, 2017 and September 30, 2018, respectively. Of these values, $44 million at both December 31, 2017 and September 30, 2018, respectively, were counter-guaranteed by Ford to us. There were no recorded liabilities related to guarantees and limited indemnities at December 31, 2017 or September 30, 2018.

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.

We accrue for matters 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.

23

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 the 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 and could require us to pay damages or make other expenditures. On October 5, 2018, FCE Bank plc received a notice from the Italian Competition Authority (the “ICA”) concerning an alleged violation of Article 101 of the Treaty on the Functioning of the European Union. While we have determined that an adverse outcome is not probable, the reasonably possible loss could be up to $300 million.  If the matter results in an adverse outcome at the administrative phase of the proceedings, based on our understanding of the facts we have grounds to challenge and would appeal to the administrative court based in Rome. We could be required to pay a fine during the appellate process, with the ultimate resolution of the matter potentially taking several years.

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

Results of Operations

Overview

In general, we measure year-over-year changes in EBT using the causal factors listed below:

• Volume and Mix – Volume and Mix are primarily reflected within Net financing margin on the income statement.

◦ Volume primarily measures changes in net financing margin driven by changes in average managed receivables at prior period financing margin yield (defined below in financing margin) at prior period exchange rates. 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.

◦ Mix primarily measures changes in net financing margin driven by period over period changes in the composition of our average managed receivables by product and by country or region.

• 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 managed receivables at prior period exchange rates. This calculation is performed at the product and country level and then aggregated. Financing margin yield equals revenue, less interest expense and scheduled depreciation for the period, divided by average managed 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 within the Provision for credit losses on the income statement.

◦ Credit loss is the change in the provision for credit losses at prior period exchange rates. For analysis purposes, management splits the provision for credit losses 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, refer to the “Critical Accounting Estimates – Allowance for Credit Losses” section of Item 7 of Part II of our 2017 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 at prior period exchange rates. 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 (which includes both base and accumulated supplemental depreciation) of the vehicles sold. Changes in accumulated supplemental depreciation are primarily driven by changes in our estimate of the expected auction value at the end of the lease term, and changes in our estimate of the number of vehicles that will be returned to us and sold. For additional information, refer to the “Critical Accounting Estimates” section of Item 7 of Part II of our 2017 Form 10-K Report.

• Exchange – Reflects changes in EBT driven by the effects of converting functional currency income to U.S. dollars.

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

• Other – Primarily includes Operating expenses, Other revenue, Insurance expenses, and Other income, net on the income statement at prior period exchange rates.

◦ 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 income 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.

In addition, the following definitions and calculations apply to the charts contained in Item 2 of this report:

• Cash (as shown on the Funding Structure, Liquidity Sources, and Leverage charts) – Cash and cash equivalents and Marketable securities reported on Ford Credit’s balance sheet, excluding amounts related to insurance activities

• Earnings Before Taxes (EBT) – Reflects Income before income taxes as reported on Ford Credit’s income statement

• Return on Equity (ROE) (as shown on the Key Metrics chart) – Reflects return on equity calculated by annualizing net income for the period and dividing by monthly average equity for the period

• Securitizations (as shown on the Public Term Funding Plan chart) – Public securitization transactions, Rule 144A offerings sponsored by Ford Credit, and widely distributed offerings by Ford Credit Canada

• Term Asset-Backed Securities (as shown on the Funding Structure chart) – Obligations issued in securitization transactions that are payable only out of collections on the underlying securitized assets and related enhancements

• Total Debt (as shown on the Leverage chart) – Debt on Ford Credit’s balance sheet. Includes debt issued in securitizations and payable only out of collections on the underlying securitized assets and related enhancements. Ford Credit holds 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

• Total Net Receivables (as shown on the Total Net Receivables Reconciliation To Managed Receivables chart) – Includes finance receivables (retail and wholesale) sold for legal purposes and net investment in operating leases included in securitization transactions that do not satisfy the requirements for accounting sale treatment. These receivables and operating leases are reported on Ford Credit’s balance sheet and 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 the other obligations of Ford Credit or the claims of Ford Credit’s other creditors

• Unallocated Other (as shown on the EBT by Segment chart) – Items excluded in assessing segment performance because they are managed at the corporate level, including market valuation adjustments to derivatives and exchange-rate fluctuations on foreign currency-denominated transactions

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

Third Quarter 2018 Compared with Third Quarter 2017

The following chart shows our key metrics:

In the third quarter of 2018, EBT was $678 million, $78 million higher compared with the prior year. Net receivables were 4% higher and managed receivables were 5% higher compared with a year ago, led by growth in retail financing in all regions. U.S. consumer credit metrics were healthy, with the loss-to-receivables ratio at 0.44%, which improved 9 basis points from a year ago. U.S. auction values were up 5% compared with third quarter 2017.

ROE was 13%, one percentage point higher compared with a year ago. Our balance sheet remains strong with managed leverage within our target range of 8:1 to 9:1.

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

The following chart shows the factors that contributed to the strong third quarter EBT:

Our third quarter EBT was $78 million higher than a year ago, led by favorable lease residual performance, receivables growth, and solid credit loss performance. This was offset in part by higher operating costs and lower financing margin reflecting the impact of higher borrowing costs.

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

We have three reportable segments in our consolidated financial statements that align with our management reporting structure and reflect the manner in which our Chief Operating Decision Maker manages our business, including resource allocation and performance assessment. These segments are: the Americas, Europe, and Asia Pacific. Items excluded in assessing segment performance, because they are managed at the corporate level, are reflected in Unallocated Other. Results of operations by segment and Unallocated Other for the period ended September 30 are shown below (in millions). For additional information, see Note 14 of our Notes to the Financial Statements.

Americas Segment

The Americas Segment third quarter EBT of $556 million is $71 million higher compared with third quarter 2017, explained primarily by improved lease residual performance driven by higher auction values on the lease portfolio, favorable volume and mix, and solid credit loss performance. This was partially offset by increased borrowing and operating costs. The Americas Segment EBT of $1.6 billion for the first nine months of 2018 is $311 million higher compared with a year ago, more than explained by improved residual performance, favorable volume and mix, and credit loss performance. This was partially offset by increased operating costs.

Europe Segment

The Europe Segment third quarter EBT of $89 million is $17 million higher compared with third quarter 2017, explained primarily by favorable volume and mix and the non-repeat of a loss upon consolidation of our Forso joint venture in 2017, partially offset by higher operating costs due to Brexit. The Europe Segment EBT of $303 million for the first nine months of 2018 is $80 million higher compared with a year ago, explained primarily by favorable volume and mix, exchange rate changes in European currencies, and the non-repeat of a loss upon consolidation of our Forso joint venture in 2017, partially offset by higher operating costs due to Brexit.

Asia Pacific Segment

The Asia Pacific Segment third quarter EBT of $13 million is $10 million lower compared with third quarter 2017, explained primarily by unfavorable credit loss performance and lower financing margin, partially offset by favorable volume and mix. The Asia Pacific Segment EBT of $86 million for the first nine months of 2018 is $17 million higher compared with a year ago, explained primarily by favorable volume and mix and tax incentives, partially offset by lower financing margin.

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

Unallocated Other

Unallocated Other third quarter 2018 gain of $20 million is equal to third quarter 2017. Unallocated Other loss of $44 million for the first nine months of 2018 is a $144 million deterioration compared with a year ago, reflecting primarily the non-recurrence of favorable performance a year ago in market valuation adjustments to derivatives.

Financing Shares and Contract Placement Volume

Our focus is on supporting Ford and Lincoln dealers and customers. This includes going to market with Ford and our dealers to support vehicle sales with financing products and marketing programs. Ford’s marketing programs may encourage or require Ford Credit financing and influence the financing choices customers make. As a result, our financing share, volume, and contract characteristics vary from period to period as Ford’s marketing programs change.

The following chart shows our United States and Canada retail installment and lease share of new Ford and Lincoln brand vehicle retail sales and wholesale financing share of new Ford and Lincoln brand vehicles acquired by dealers. Also shown is the Americas segment consumer financing contract placement volume for new and used vehicles. All data is for the periods ended September 30:

In the third quarter of 2018, Americas Segment total contract placement volume was about equal to a year ago.

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

The following chart shows Europe’s retail installment and lease share of new Ford brand vehicles sold and wholesale financing share of new Ford brand vehicles acquired by dealers. Also shown is Europe’s consumer financing contract placement volume for new and used vehicles. All data is for the periods ended September 30:

In the third quarter of 2018, Europe Segment retail and lease share and total contract placement volume were about equal to a year ago.

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

The following chart shows Asia Pacific’s retail installment share of new Ford and Lincoln brand vehicles sold by dealers and wholesale financing share of new Ford and Lincoln brand vehicles acquired by dealers. Also shown is Asia Pacific’s consumer financing contract placement volume for new and used vehicles. All data is for the periods ended September 30:

In the third quarter of 2018, Asia Pacific Segment total contract placement volume was down compared with a year ago driven primarily by lower Ford sales volume in China.

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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:

Our operating lease portfolio is prudently managed and was 19% of total net receivables in the third quarter. Leasing is an important product, and our leasing strategy balances sales, share, residuals, and long-term profitability. Operating leases in the U.S. and Canada represent 98% of our total operating lease portfolio.

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

The following chart shows our reconciliation for our non-GAAP financial measure, managed receivables:

At December 31, 2016, September 30, 2017, December 31, 2017, and September 30, 2018, total net receivables includes consumer receivables before allowance for credit losses of $32.5 billion, $35.2 billion, $38.9 billion, and $38.8 billion, respectively, and non-consumer receivables before allowance for credit losses of $26.0 billion, $23.6 billion, $24.5 billion, and $23.3 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 December 31, 2016, September 30, 2017, December 31, 2017, and September 30, 2018, total net receivables includes net investment in operating leases before allowance for credit losses of $11.8 billion, $9.9 billion, $11.5 billion, and $12.4 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 the other obligations or the claims of Ford Credit’s other creditors. Ford Credit holds 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 2017 Form 10-K Report and Note 7 of our Notes to the Financial Statements for the period ended September 30, 2018.

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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 losses are a normal part of a lending business, and 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 using our consistent underwriting standards, effective proprietary scoring system (discussed below), and world-class servicing. The allowance for credit losses (also referred to as the credit loss reserve) represents our estimate of the probable credit losses inherent in our finance receivables and operating leases as of the balance sheet date. The allowance for credit losses is estimated using a combination of models and management judgment, and is based on such factors as historical loss performance, portfolio quality, and receivable levels. The adequacy of our allowance for credit losses is assessed quarterly and the assumptions and models used in establishing the allowance are evaluated regularly. 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 to our 2017 Form 10-K Report.

Most of our charge-offs are related to retail finance and operating lease contracts. Charge-offs are affected by 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 to our 2017 Form 10-K Report.

In purchasing retail finance and operating lease contracts, we use a proprietary scoring system that measures credit quality using information in the credit application, proposed contract terms, credit bureau data, and other information. After a proprietary risk score is generated, we decide whether to purchase a contract using a decision process based on a judgmental evaluation of the applicant, the credit application, the proposed contract terms, credit bureau information (e.g., FICO score), proprietary risk score, and other information. Our evaluation emphasizes the applicant’s ability to pay and creditworthiness focusing on payment, affordability, applicant credit history, and stability as key considerations. While FICO is a part of our scoring system, our models enable us to more effectively determine the probability that a customer will pay than using credit scores alone. When we originate business, our models project expected losses and we price accordingly. We ensure the business fits our risk appetite. For additional information on the quality of our receivables, see Note 4 of our Notes to the Financial Statements.

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

U.S. Origination Metrics

We support customers across the credit spectrum. Our higher risk business, as classified at contract inception, consistently represents 6% of our portfolio and has been stable for over 10 years.

The following charts show annual trends for FICO and higher risk mix and retail contract terms:

Third quarter average placement FICO score remained consistent.

Our average retail term was consistent from the prior year, and retail contracts of 84 months and longer continued to be a relatively small part of our business. Ford Credit remains focused on managing the trade cycle – building customer relationships and loyalty while offering financing products and terms customers want. Ford Credit’s origination and risk management processes deliver robust portfolio performance.

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

U.S. Credit Losses

The following charts show the primary drivers of credit losses in the U.S. retail and lease business, which comprised 68%of our worldwide consumer portfolio at September 30, 2018. Loss-to-Receivables (“LTR”) ratios are charge-offs divided by average managed receivables.

Third quarter 2018 charge-offs and LTR ratio improved from third quarter 2017.

Compared with a year ago, delinquencies showed improvement while repossessions were flat. Severity has improved year-over-year reflecting higher auction values.

Credit loss metrics remained strong reflecting a healthy business environment and consumer credit conditions.

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

Worldwide Credit Losses

The following charts show annual trends of charge-offs (credit losses, net of recoveries), LTR ratio, credit loss reserve, and our credit loss reserve as a percentage of end-of-period (“EOP”) managed receivables:

Our worldwide credit loss metrics remain strong. The worldwide LTR ratio in the third quarter of 2018 is higher than a year ago, reflecting a non-consumer loss recognized in the third quarter of 2018.

Our credit loss reserve is based on such factors as historical loss performance, portfolio quality, and receivables level. The credit loss reserve was higher as of September 30, 2018, compared with September 30, 2017, reflecting historical losses and growth in receivables.

The reserve as a percent of managed receivables was equal to a year ago.

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

Residual Risk

Leasing is an important product that many customers want and value, and lease customers also are more likely to buy or lease another Ford or Lincoln vehicle. We manage our lease share with an enterprise view to support sales, protect residual values, and manage the trade cycle. Ford Credit and Ford work together under a leasing strategy that considers share, term, model mix, geography, and other factors.

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. For operating leases, changes in expected residual values impact 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 2017 Form 10-K Report.

U.S.Ford and Lincoln Brand Operating Lease Experience

The following charts show lease placement volume and lease share of Ford and Lincoln brand retail sales for vehicles in the respective periods. The U.S. operating lease portfolio accounted for 86% of our total net investment in operating leases at September 30, 2018.

Third quarter 2018 lease placement volume was up compared with a year ago, reflecting Ford’s marketing programs. Industry lease share in the third quarter of 2018 was up from the same period last year. Ford Credit’s lease share was up compared with a year ago and remains below the industry, reflecting the Ford sales mix.

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

The following charts show lease return volumes, return rates, and off-lease auction values at constant third quarter 2018 vehicle mix in the respective periods:

Lease return volume was up slightly and the return rate was down in the third quarter of 2018 compared with a year ago. Our 24-month and 36-month third quarter off-lease auction values were higher compared with a year ago.

We now expect full-year 2018 auction values to be about three percent higher compared with 2017 at constant mix.

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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, Fitch, Moody’s, and 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 us and other sources. Credit ratings assigned to us from all of the NRSROs are closely associated with their opinions on Ford. 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.

The following rating actions were taken by NRSROs since the filing of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2018.

• On July 27, 2018, S&P revised the outlook to negative from stable for Ford Credit and affirmed its ratings.

• On August 29, 2018, Moody’s downgraded the credit rating for Ford Credit to Baa3 with a negative outlook from Baa2 with a negative outlook.

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

		NRSRO RATINGS
		Ford Credit						NRSROs
	Long-Term Senior Unsecured		Short -Term Unsecured		Outlook/Trend		Minimum Long-Term Investment Grade Rating
DBRS		BBB		R-2M		Stable		BBB (low)
Fitch		BBB		F2		Stable		BBB-
Moody’s		Baa3		P-3		Negative		Baa3
S&P		BBB		A-2		Negative		BBB-

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

Funding and Liquidity

Our primary funding and liquidity objective is to be well capitalized with a strong balance sheet and ample liquidity to support our financing activities and growth under a variety of market conditions, including short-term and long-term market disruptions.

Our funding strategy remains focused on diversification, and we plan to continue accessing a variety of markets, channels, and investors.

Our liquidity profile continues to be diverse, robust, and focused on maintaining liquidity levels that meet our business and funding requirements. We annually stress test our balance sheet and liquidity to ensure that we continue to meet our financial obligations through economic cycles.

Funding Portfolio

The following chart shows the trends in funding for our managed receivables:

Managed receivables of $152 billion as of September 30, 2018, were funded primarily with term debt and term asset-backed securities. Securitized funding as a percent of managed receivables was 36%.

We expect the mix of securitized funding to remain at about 35%. The calendarization of the funding plan will result in quarterly fluctuations of the securitized funding percentage.

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

Public Term Funding Plan

The following chart shows our issuances for full year 2016 and 2017, planned issuances for full year 2018, and our global public term funding issuances through October 23, 2018, excluding short-term funding programs:

Our total unsecured public term funding plan is categorized by currency of issuance. We plan to continue issuing our European debt from Ford Credit U.S. For 2018, we now project full-year public term funding in the range of $28 billion to $30 billion. Within the unsecured term funding plan, we forecast higher full-year issuance in euros and pounds sterling, and lower full-year issuance in U.S. dollars compared with 2017. This reflects opportunistic issuances in euros completed in the first half of 2018, much of which supported our funding requirements in the United States. Through October 23, 2018, we have completed $25 billion of public term issuances.

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

Liquidity Sources

We define gross liquidity as cash, cash equivalents, and marketable securities (excluding amounts related to insurance activities) and committed capacity (which includes our credit and asset-backed facilities and bank lines), 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). Net liquidity available for use is defined as gross liquidity less certain adjustments for asset-backed capacity in excess of eligible receivables and cash related to the Ford Credit Revolving Extended Variable-utilization program (“FordREV”), which can be accessed through future sales of receivables. While not included in available liquidity, these adjustments represent additional funding sources for future originations.

The following chart shows our liquidity sources and utilization:

Our liquidity available for use will fluctuate quarterly based on factors including near-term debt maturities, receivable growth, and timing of funding transactions. We target liquidity of about $25 billion.

At September 30, 2018, our liquidity available for use was $29.0 billion, $0.5 billion lower than year-end 2017 and $1.6 billion higher than at June 30, 2018. Our sources of liquidity include cash, committed asset-backed facilities, unsecured credit facilities, and the Ford corporate credit facility allocation. At September 30, 2018, our liquidity sources including cash totaled $50.1 billion, down $1.4 billion from year-end 2017.

Cash, Cash Equivalents, and Marketable Securities.  At September 30, 2018, our cash, cash equivalents, and marketable securities (excluding amounts related to insurance activities) totaled $12.1 billion, compared with $11.8 billion at year-end 2017.  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 held primarily in highly liquid investments, which provide liquidity for our anticipated and unanticipated cash needs and give us flexibility in the use of our other funding programs. Our cash, cash equivalents, and marketable securities (excluding amounts related to insurance activities) primarily include U.S. Department of Treasury obligations, federal agency securities, bank time deposits with investment-grade institutions, investment-grade commercial paper, debt obligations of a select group of non-U.S. governments, non-U.S. governmental agencies, supranational institutions, non-U.S. central banks, and money market funds that carry the highest possible ratings. 

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

The average maturity of these investments ranges from approximately three to six months 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 included amounts to be used only to support our securitization transactions of $3.8 billion and $3.0 billion at December 31, 2017 and September 30, 2018, respectively.

Committed Capacity. At September 30, 2018, our committed capacity totaled $38.0 billion, compared with $39.7 billion at December 31, 2017. Our committed capacity is primarily comprised of committed ABS facilities from bank-sponsored commercial paper conduits and other financial institutions, unsecured credit facilities with financial institutions, and allocated commitments under the Ford corporate credit facility.

Committed Asset-Backed Facilities. We and our subsidiaries have entered into agreements with a number of bank-sponsored asset-backed commercial paper conduits and other financial institutions. Such counterparties are contractually committed, at our option, to purchase from us eligible retail receivables or to purchase or make advances under asset-backed securities backed by retail or wholesale finance receivables or operating leases for proceeds of up to $32.0 billion ($16.7 billion of retail financing, $5.8 billion of wholesale financing, and $9.5 billion of operating leases) at September 30, 2018. These committed facilities have varying maturity dates, with $19.0 billion having maturities within the next twelve months and the remaining balance having maturities through 2020. We plan capacity renewals to protect our global funding needs, optimize capacity utilization, and maintain sufficient liquidity.

Our ability to obtain funding under these facilities is subject to having a sufficient amount of eligible assets as well as our ability to obtain interest rate hedging arrangements for certain facilities. At September 30, 2018, $17.7 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.

FCE Bank plc (“FCE”) has pre-positioned retail receivables with the Bank of England which supports access to the Discount Window Facility. Pre-positioned assets are neither pledged to nor held as collateral by the Bank of England unless the Discount Window Facility is accessed. FCE’s eligibility to access the Discount Window Facility is not reflected in the Liquidity Sources table above.

Unsecured Credit Facilities. At September 30, 2018, we and our majority-owned subsidiaries had $6.0 billion of contractually committed unsecured credit facilities with financial institutions, including the FCE Credit Agreement (as defined below) and the allocation under Ford’s corporate credit facility. At September 30, 2018, $5.3 billion was available for use.

FCE’s £745 million (equivalent to $972 million at September 30, 2018) syndicated credit facility (the “FCE Credit Agreement”) matures in 2021.  At September 30, 2018, £545 million (equivalent to $711 million) was available for use.  Ford Bank GmbH’s €240 million (equivalent to $278 million at September 30, 2018) syndicated credit facility (the “Ford Bank Credit Agreement”) matures in 2021.  At September 30, 2018, €190 million (equivalent to $220 million) was available for use.

Both the FCE Credit Agreement and Ford Bank Credit Agreement contain certain covenants, including an obligation for FCE and Ford Bank to maintain their ratio of regulatory capital to risk-weighted assets at no less than the applicable regulatory minimum. The FCE Credit Agreement requires 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). The Ford Bank Credit Agreement requires our guarantee of Ford Bank’s obligations under the agreement to remain in full force and effect.

Lenders under the Ford corporate credit facility have commitments totaling $13.4 billion, with 25% of the commitments maturing on April 30, 2021 and 75% of the commitments maturing on April 30, 2023. Ford has allocated $3.0 billion of commitments, including commitments under a Chinese renminbi sub-facility, to us on an irrevocable and exclusive basis to support our liquidity. At September 30, 2018, all $3.0 billion was available for use.

Funding and Liquidity Risks

Refer to the “Funding and Liquidity Risks” section of Item 7 of Part II of our 2017 Form 10-K Report for a list of factors that could affect our liquidity and information on our stress testing.

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

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 chart shows the calculation of our financial statement leverage and managed leverage:

We plan our managed leverage by considering prevailing market conditions and the risk characteristics of our business. At September 30, 2018, our financial statement leverage was 9.1:1, and managed leverage was 8.4:1. We target managed leverage in the range of 8:1 to 9:1. For information on our planned distributions, refer to the “Outlook” section.

46

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

Outlook

We expect full-year 2018 EBT to be improved from 2017 as auction values and credit losses continue to trend better than originally expected, and for distributions to our parent to be about $2.5 billion in 2018.

47

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

Cautionary Note on Forward-Looking Statements

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:

• Ford’s long-term competitiveness depends on the successful execution of fitness actions;

• Industry sales volume, particularly in the United States, Europe, or China, could decline if there is a financial crisis, recession, or significant geopolitical event;

• Ford’s new and existing products and mobility services are subject to market acceptance;

• Ford’s results are dependent on sales of larger, more profitable vehicles, particularly in the United States;

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

• Fluctuations in commodity prices, foreign currency exchange rates, and interest rates can have a significant effect on results;

• With a global footprint, Ford’s results could be adversely affected by economic, geopolitical, protectionist trade policies, or other events;

• Ford’s production, as well as Ford’s suppliers’ production, could be disrupted by labor disputes, natural or man-made disasters, financial distress, production difficulties, or other factors;

• Ford’s ability to maintain a competitive cost structure could be affected by labor or other constraints;

• Pension and other postretirement liabilities could adversely affect Ford’s liquidity and financial condition;

• Economic and demographic experience for pension and other postretirement benefit plans (e.g., discount rates or investment returns) could be worse than Ford has assumed;

• Ford’s vehicles could be affected by defects that result in delays in new model launches, recall campaigns, or increased warranty costs;

• Safety, emissions, fuel economy, and other regulations affecting Ford may become more stringent;

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

• Ford’s receipt of government incentives could be subject to reduction, termination, or clawback;

• Operational systems, security systems, and vehicles could be affected by cyber incidents;

• Ford Credit’s access to debt, securitization, or derivative markets around the world at competitive rates or in sufficient amounts could be affected by credit rating downgrades, market volatility, market disruption, regulatory requirements, or other factors;

• Ford Credit could experience higher-than-expected credit losses, lower-than-anticipated residual values, or higher-than-expected return volumes for leased vehicles;

• Ford Credit could face increased competition from banks, financial institutions, or other third parties seeking to increase their share of financing Ford vehicles; and

• Ford Credit could be subject to new or increased credit regulations, consumer or data protection regulations, or other regulations.

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 2017 Form 10-K Report, as updated by our subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

48

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

Accounting Standards Issued But Not Yet Adopted

The Financial Accounting Standards Board (“FASB”) has issued the following Accounting Standards Updates (“ASU”). ASU 2016-02 and ASU 2016-13 are expected to result in a significant change in practice and / or have a significant financial impact to Ford Credit. For additional information, see Note 2 of the Notes to the Financial Statements.

ASU		Effective Date (a)
2018-08	Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made	January 1, 2019
2018-02	Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income	January 1, 2019
2016-02	Leases	January 1, 2019 (b)
2018-15	Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract	January 1, 2020
2016-13	Credit Losses - Measurement of Credit Losses on Financial Instruments	January 1, 2020

__________

(a) Early adoption for each of the standards is permitted.

(b) The FASB has issued the following updates to the Leases standard: ASU 2018-01 (Land Easement Practical Expedient for Transition to Topic 842) and ASU 2018-11 (Leases Topic 842 - Targeted Improvements), which we will adopt with the new Leases standard effective January 1, 2019.

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk.

In our 2017 Form 10-K Report, we discuss in greater detail our market risk, counterparty 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, 2018, all else constant, such an increase in interest rates would increase our pre-tax cash flow by $15 million over the next 12 months, compared with an increase of $14 million at December 31, 2017. 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. David W. McClelland, our President and Chief Executive Officer (“CEO”), and Brian E. Schaaf, 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 (“Exchange Act”), as of September 30, 2018, 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 internal control over financial reporting during the quarter ended September 30, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

49

PART II. OTHER INFORMATION

ITEM 1. Legal Proceedings.

European Competition Law Matter. On October 5, 2018, FCE Bank plc received a notice from the Italian Competition Authority (the “ICA”) concerning an alleged violation of Article 101 of the Treaty on the Functioning of the European Union. The ICA alleges that FCE Bank plc and other parties engaged in anti-competitive practices in relation to the automotive finance market in Italy.  If a violation is found, a broad range of remedies is available to the ICA, including imposing a fine against FCE Bank plc that could be material.  To avoid penalties, FCE Bank plc could be required to pay a fine and then seek reimbursement of the payment through the appellate process.

ITEM 5. Other Information.

None.

ITEM 6. Exhibits.

Designation	Description	Method of Filing
Exhibit 12	Calculation of Ratio of Earnings to Fixed Charges.	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 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.

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.

50

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, 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/ Brian E. Schaaf
	Brian E. Schaaf
	Chief Financial Officer and Treasurer
Date:	October 24, 2018

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 2018
Earnings
Income before income taxes	$	1,964
Add/(Deduct):
Equity in net income of affiliated companies	(20		)
Dividends from affiliated companies	—
Fixed charges excluding capitalized interest	2,905
Earnings	$	4,849
Fixed charges
Interest expense	$	2,898
Interest portion of rental expense	7
Capitalized interest	1
Total fixed charges	$	2,906
Ratios
Ratio of earnings to fixed charges	1.7

EX-31.1

Exhibit 31.1

CERTIFICATION

I, David W. McClelland, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 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 24, 2018	/s/ David W. McClelland
	David W. McClelland
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Brian E. Schaaf, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 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 24, 2018	/s/ Brian E. Schaaf
	Brian E. Schaaf
	Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, David W. McClelland, President 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, 2018, 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 24, 2018	/s/ David W. McClelland
	David W. McClelland
	President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Brian E. Schaaf, 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, 2018, 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 24, 2018	/s/ Brian E. Schaaf
	Brian E. Schaaf
	Chief Financial Officer and Treasurer

XML

Document and Entity Information Document	9 Months Ended
	Sep. 30, 2018 USD ($) shares
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, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding | shares	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.

XML

Consolidated Income Statement - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Financing revenue
Operating leases	$ 1,463	$ 1,394	$ 4,321	$ 4,141
Retail financing	983	891	2,890	2,518
Dealer financing	519	462	1,624	1,389
Other	20	17	62	51
Total financing revenue	2,985	2,764	8,897	8,099
Depreciation on vehicles subject to operating leases	(907)	(989)	(2,898)	(3,090)
Interest expense	(989)	(810)	(2,898)	(2,308)
Net financing margin	1,089	965	3,101	2,701
Other revenue
Insurance premiums earned	39	38	123	120
Fee based revenue and other	57	61	180	177
Total financing margin and other revenue	1,185	1,064	3,404	2,998
Operating expenses	368	324	1,070	930
Provision for credit losses (Note 6)	156	169	367	420
Insurance expenses	19	28	77	121
Total expenses	543	521	1,514	1,471
Other income, net	36	57	74	173
Income before income taxes	678	600	1,964	1,700
Provision for income taxes	160	186	266	507
Net income	$ 518	$ 414	$ 1,698	$ 1,193

XML

Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net income	$ 518	$ 414	$ 1,698	$ 1,193
Other comprehensive income/(loss), net of tax
Foreign currency translation	(49)	204	(300)	485
Comprehensive income / (loss)	$ 469	$ 618	$ 1,398	$ 1,678

XML

Consolidated Balance Sheet - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
ASSETS
Cash and cash equivalents	$ 10,997	$ 9,558
Marketable securities	1,740	2,881
Finance receivables, net	116,044	116,003
Net investment in operating leases	27,570	26,661
Notes and accounts receivable from affiliated companies	971	1,076
Derivative financial instruments	607	935
Other assets	3,317	3,329
Total assets	161,246	160,443
Liabilities
Customer deposits, dealer reserves, and other	1,140	1,171
Affiliated companies	1,013	592
Total accounts payable	2,153	1,763
Debt	138,230	137,828
Deferred income taxes	2,503	2,386
Derivative financial instruments	1,102	310
Other liabilities and deferred income	2,039	2,272
Total liabilities	146,027	144,559
Shareholder's interest
Shareholder's interest	5,227	5,227
Accumulated other comprehensive income	(719)	(419)
Retained earnings	10,711	11,076
Total shareholder’s interest	15,219	15,884
Total liabilities and shareholder's interest	161,246	160,443
Variable Interest Entity, Primary Beneficiary [Member]
ASSETS
Cash and cash equivalents	2,746	3,479
Finance receivables, net	56,412	56,250
Net investment in operating leases	12,441	11,503
Derivative financial instruments	55	64
Liabilities
Debt	50,564	46,437
Derivative financial instruments	$ 2	$ 2

XML

Consolidated Statement of Shareholder's Interest - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Shareholder's Interest [Roll Forward]
Balance at beginning of period			$ 15,884	$ 12,803
Net income	$ 518	$ 414	1,698	1,193
Other Comprehensive Income (Loss), Net of Tax			(300)	485
Cumulative Effect of New Accounting Principle in Period of Adoption		9		9
Distributions declared			(2,063)	(406)
Balance at end of period	15,219	14,084	15,219	14,084
Shareholder's Interest [Member]
Shareholder's Interest [Roll Forward]
Balance at beginning of period			5,227	5,227
Net income			0	0
Other Comprehensive Income (Loss), Net of Tax			0	0
Cumulative Effect of New Accounting Principle in Period of Adoption		0		0
Distributions declared			0	0
Balance at end of period	5,227	5,227	5,227	5,227
Accumulated Other Comprehensive Income/(Loss) (Note11) [Member]
Shareholder's Interest [Roll Forward]
Balance at beginning of period			(419)	(890)
Net income			0	0
Other Comprehensive Income (Loss), Net of Tax			(300)	485
Distributions declared			0	0
Balance at end of period	(719)	(405)	(719)	(405)
Accumulated Other Comprehensive Income/(Loss) (Note11) [Member] | Accounting Standards Update 2014-09 [Member]
Shareholder's Interest [Roll Forward]
Cumulative Effect of New Accounting Principle in Period of Adoption		0		0
Retained Earnings [Member]
Shareholder's Interest [Roll Forward]
Balance at beginning of period			11,076	8,466
Net income			1,698	1,193
Other Comprehensive Income (Loss), Net of Tax			0	0
Distributions declared			(2,063)	(406)
Balance at end of period	$ 10,711	9,262	$ 10,711	9,262
Retained Earnings [Member] | Accounting Standards Update 2014-09 [Member]
Shareholder's Interest [Roll Forward]
Cumulative Effect of New Accounting Principle in Period of Adoption		$ 9		$ 9

XML

Consolidated Statement of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities
Net Cash Provided by (Used in) Operating Activities	$ 4,594	$ 4,451
Cash flows from investing activities
Purchases of finance receivables	(33,751)	(30,543)
Principal collections of finance receivables	31,993	27,254
Purchases of operating lease vehicles	(11,015)	(9,935)
Proceeds From Liquidations of Operating Lease Vehicles	7,086	6,623
Net change in wholesale receivables and other	686	1,560
Purchases of marketable securities	(3,401)	(4,359)
Proceeds from sales and maturities of marketable securities	4,504	4,564
Settlements of derivatives	228	(48)
All other investing activities	117	(18)
Net Cash Provided by (Used in) Investing Activities	(3,553)	(4,902)
Cash flows from financing activities
Proceeds from issuances of long-term debt	37,035	29,982
Principal payments on long-term debt	(32,588)	(30,291)
Change in short-term debt, net	(1,677)	1,709
Cash distributions to parent	(2,063)	(406)
All other financing activities	(141)	(74)
Net Cash Provided by (Used in) Financing Activities	566	920
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	(145)	302
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at January 1	9,682	8,185
Net increase/(decrease) in cash, cash equivalents, and restricted cash	1,462	771
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at March 31	$ 11,144	$ 8,956

XML

Presentation
number in Thousands

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Argentina was classified as having a highly inflationary economy due to the three-year cumulative consumer price index exceeding 100%. As a result, we changed the functional currency for our operations in Argentina from the Argentine peso to the U.S. dollar as of July 1, 2018.

Presentation

PRESENTATION

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, 2017 (“2017 Form 10-K Report”). We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation.

In June 2018, Argentina was classified as having a highly inflationary economy due to the three-year cumulative consumer price index exceeding 100%. As a result, we changed the functional currency for our operations in Argentina from the Argentine peso to the U.S. dollar as of July 1, 2018.

Consumer Price Index

0.00%

XML

Accounting Policies

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Accounting Policies

ACCOUNTING POLICIES

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 infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.

For the third quarter and first nine months of 2018, our effective tax rates were 23.6% and 13.5%, respectively. During the first quarter of 2018, we recognized $235 million of benefit for non-U.S. capital loss carryforwards expected to be realized in the foreseeable future.

Adoption of New Accounting Standards

Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging. On January 1, 2018, we adopted the amendments to Accounting Standards Codification (“ASC”) 815 which aligns hedge accounting with risk management activities and simplifies the requirements to qualify for hedge accounting. Adoption did not have a material impact on our financial statements. We continue to assess opportunities enabled by the new standard to expand our risk management strategies.

ASU 2016-01, Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities. On January 1, 2018, we adopted ASU 2016-01 and the related amendments. This standard amends various aspects of the recognition, measurement, presentation, and disclosure of financial instruments. We adopted the measurement alternative for equity investments without readily determinable fair values (often referred to as cost method investments) on a prospective basis. As a result, these investments will be revalued upon occurrence of an observable price change for similar investments and for impairments. We anticipate adoption may increase the volatility on our consolidated income statement.

We also adopted the following ASUs during 2018, none of which had a material impact to our financial statements or financial statement disclosures:

ASU		Effective Date
2017-08	Nonrefundable Fees and Other Costs - Premium Amortization on Purchased Callable Debt Securities	January 1, 2018
2016-18	Statement of Cash Flows - Restricted Cash	January 1, 2018
2016-16	Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory	January 1, 2018
2016-15	Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments	January 1, 2018

NOTE 2. ACCOUNTING POLICIES (Continued)

Accounting Standards Issued But Not Yet Adopted

The following represent the standards that will, or are expected to, result in a significant change in practice and / or have a significant financial impact to Ford Credit.

ASU 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments. In June 2016, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard which replaces the current incurred loss impairment method with a method that reflects expected credit losses. We plan to adopt the new standard on its effective date of January 1, 2020 by recognizing the cumulative effect of initially applying the new standard as an adjustment to the opening balance of Retained earnings. We anticipate adoption will increase the amount of expected credit losses reported in Finance receivables, net on our consolidated balance sheet and do not expect a material impact to our income statement.

ASU 2016-02, Leases.  In February 2016, the FASB issued a new accounting standard which provides guidance on the recognition, measurement, presentation, and disclosure of leases. The new standard supersedes the present U.S. GAAP standard on leases and requires substantially all leases to be reported on the balance sheet as right-of-use assets and lease obligations. We plan to adopt the new standard on its effective date of January 1, 2019. We anticipate adoption of the standard will add about $100 million of right-of-use assets and lease obligations to our consolidated balance sheet and will not significantly impact our income statement. We plan to elect the practical expedients upon transition that will retain the lease classification and initial direct costs for any leases that exist prior to adoption of the standard. We will not reassess whether any contracts entered into prior to adoption are leases. We are in the process of cataloging our existing lease contracts, assessing impact as a lessor, and implementing changes to our systems.

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Cash, Cash Equivalents, and Marketable Securities

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES

CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES

The following table categorizes the fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis (in millions):

	Fair Value Level	December 31, 2017		September 30, 2018
Cash and cash equivalents
U.S. government	1	$	—	$	569
U.S. government and agencies	2	300		422
Non-U.S. government and agencies	2	703		565
Corporate debt	2	25		889
Total marketable securities classified as cash equivalents		1,028		2,445
Cash, time deposits and money market funds		8,530		8,552
Total cash and cash equivalents		$	9,558	$	10,997
Marketable Securities
U.S. government	1	$	966	$	257
U.S. government and agencies	2	384		139
Non-U.S. government and agencies	2	660		888
Corporate debt	2	848		305
Other marketable securities	2	23		151
Total marketable securities		$	2,881	$	1,740

Cash, Cash Equivalents, and Restricted Cash

Cash, cash equivalents, and restricted cash as reported in the statement of cash flows are presented separately on our consolidated balance sheet as follows (in millions):

	December 31, 2017		September 30, 2018
Cash and cash equivalents	$	9,558	$	10,997
Restricted cash included in other assets (a)	124		147
Total cash, cash equivalents, and restricted cash	$	9,682	$	11,144

__________

(a) 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.

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Finance Receivables

9 Months Ended

Sep. 30, 2018

Receivables [Abstract]

Financing Receivables

FINANCE RECEIVABLES

We manage finance receivables as “consumer” and “non-consumer” portfolios. The receivables are generally secured by the vehicles, inventory, or other property being financed.

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

	December 31, 2017			September 30, 2018
Consumer
Retail financing, gross	$	78,467		$	80,269
Unearned interest supplements from Ford and affiliated companies	(3,280		)	(3,442		)
Consumer finance receivables	75,187			76,827
Non-Consumer
Dealer financing	39,241			38,017
Other financing	2,172			1,786
Non-Consumer finance receivables	41,413			39,803
Total recorded investment	$	116,600		$	116,630
Recorded investment in finance receivables	$	116,600		$	116,630
Allowance for credit losses	(597		)	(586		)
Finance receivables, net	$	116,003		$	116,044
Net finance receivables subject to fair value (a)	$	112,717		$	112,367
Fair value	112,133			111,591

__________

(a) At December 31, 2017 and September 30, 2018, Finance receivables, net includes $3.3 billion and $3.7 billion, respectively, of direct financing leases that are not subject to fair value disclosure requirements. The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy.

Excluded from finance receivables at both December 31, 2017 and September 30, 2018 was $241 million of accrued uncollected interest, which we report in Other assets on our balance sheet.

Included in recorded investment in finance receivables at December 31, 2017 and September 30, 2018, were consumer receivables of $38.9 billion and $38.8 billion, respectively, and non-consumer receivables of $24.5 billion and $23.3 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 the other obligations or the claims of Ford Credit’s other creditors. Ford Credit holds 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 7 for additional information).

NOTE 4. 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 $24 million and $21 million at December 31, 2017 and September 30, 2018, respectively. The recorded investment of non-consumer receivables greater than 90 days past due and still accruing interest was $1 million and de minimis at December 31, 2017 and September 30, 2018, respectively.

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

	December 31, 2017		September 30, 2018
Consumer
31-60 days past due	$	748	$	691
61-90 days past due	113		109
91-120 days past due	36		42
Greater than 120 days past due	37		40
Total past due	934		882
Current	74,253		75,945
Consumer finance receivables	75,187		76,827
Non-Consumer
Total past due	122		77
Current	41,291		39,726
Non-Consumer finance receivables	41,413		39,803
Total recorded investment	$	116,600	$	116,630

Credit Quality

Consumer Portfolio.

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; and

• 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 less costs to sell.

Non-Consumer Portfolio.

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; and

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

NOTE 4. FINANCE RECEIVABLES (Continued)

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

	December 31, 2017		September 30, 2018
Dealer financing
Group I	$	31,551	$	30,704
Group II	5,912		5,532
Group III	1,640		1,616
Group IV	138		165
Total recorded investment	$	39,241	$	38,017

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 December 31, 2017 and September 30, 2018 was $386 million and $379 million, or 0.5% and 0.5% of consumer receivables, respectively. The recorded investment of non-consumer receivables that were impaired at December 31, 2017 and September 30, 2018 was $138 million and $165 million, or 0.3% and 0.4% of non-consumer receivables, respectively. Impaired finance receivables are evaluated both collectively and specifically.

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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Net Investments in Operating Leases

9 Months Ended

Sep. 30, 2018

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, and fleet customers with terms of 60 months or less.

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

	December 31, 2017			September 30, 2018
Vehicles, at cost (a)	$	32,659		$	33,703
Accumulated depreciation	(5,927		)	(6,056		)
Net investment in operating leases before allowance for credit losses	26,732			27,647
Allowance for credit losses	(71		)	(77		)
Net investment in operating leases	$	26,661		$	27,570

__________

(a) Includes interest supplements and residual support payments we receive on certain leasing transactions under agreements with Ford and affiliated companies, and other vehicle acquisition costs.

At December 31, 2017 and September 30, 2018, net investment in operating leases before allowance for credit losses includes $11.5 billion and $12.4 billion, respectively, of net investment in operating leases that have been included in securitization transactions but continue to be reported in our consolidated financial statements. These net investments 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 7 for additional information).

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Allowance for Credit Losses

9 Months Ended

Sep. 30, 2018

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 was as follows (in millions):

	Third Quarter 2017
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	507		$	15		$	522		$	66		$	588
Charge-offs	(132		)	—			(132		)	(51		)	(183		)
Recoveries	36			4			40			25			65
Provision for credit losses	146			(6		)	140			29			169
Other (a)	5			—			5			—			5
Ending balance	$	562		$	13		$	575		$	69		$	644
	First Nine Months 2017
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	469		$	15		$	484		$	64		$	548
Charge-offs	(366		)	(3		)	(369		)	(155		)	(524		)
Recoveries	105			8			113			73			186
Provision for credit losses	341			(7		)	334			86			420
Other (a)	13			—			13			1			14
Ending balance	$	562		$	13		$	575		$	69		$	644
Analysis of ending balance of allowance for credit losses
Collective impairment allowance	$	541		$	13		$	554		$	69		$	623
Specific impairment allowance	21			—			21			—			21
Ending balance	562			13			575			69			$	644
Analysis of ending balance of finance receivables and net investment in operating leases
Collectively evaluated for impairment	72,069			38,564			110,633			27,000
Specifically evaluated for impairment	387			152			539			—
Recorded investment	72,456			38,716			111,172			27,000
Ending balance, net of allowance for credit losses	$	71,894		$	38,703		$	110,597		$	26,931

__________

(a) Primarily represents amounts related to translation adjustments.

NOTE 6. ALLOWANCE FOR CREDIT LOSSES (Continued)

	Third Quarter 2018
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	573		$	14		$	587		$	72		$	659
Charge-offs (a)	(128		)	(43		)	(171		)	(51		)	(222		)
Recoveries	40			4			44			26			70
Provision for credit losses	73			52			125			31			156
Other (b)	1			—			1			(1		)	—
Ending balance	$	559		$	27		$	586		$	77		$	663
	First Nine Months 2018
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	582		$	15		$	597		$	71		$	668
Charge-offs (a)	(382		)	(46		)	(428		)	(149		)	(577		)
Recoveries	126			6			132			78			210
Provision for credit losses	237			52			289			78			367
Other (b)	(4		)	—			(4		)	(1		)	(5		)
Ending balance	$	559		$	27		$	586		$	77		$	663
Analysis of ending balance of allowance for credit losses
Collective impairment allowance	$	538		$	14		$	552		$	77		$	629
Specific impairment allowance	21			13			34			—			34
Ending balance	559			27			586			77			$	663
Analysis of ending balance of finance receivables and net investment in operating leases
Collectively evaluated for impairment	76,448			39,638			116,086			27,647
Specifically evaluated for impairment	379			165			544			—
Recorded investment	76,827			39,803			116,630			27,647
Ending balance, net of allowance for credit losses	$	76,268		$	39,776		$	116,044		$	27,570

__________

(a) The charge-off of non-consumer (dealer financing) receivables primarily reflects a specific U.S. dealer’s wholesale vehicle inventory and dealer loan determined to be uncollectible.

(b) Primarily represents amounts related to translation adjustments.

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Transfers of Receivables

9 Months Ended

Sep. 30, 2018

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 including the United States, Canada, several European countries, Mexico, and China.

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 8 for additional 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):

	December 31, 2017
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt (c)
			Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses
VIE (b)
Retail financing	$	1.8	$	32.6	$	0.2	$	32.4	$	27.7
Wholesale financing	1.2		23.9		—		23.9		11.5
Finance receivables	3.0		56.5		0.2		56.3		39.2
Net investment in operating leases	0.5		11.5		—		11.5		7.2
Total VIE	$	3.5	$	68.0	$	0.2	$	67.8	$	46.4
Non-VIE
Retail financing	$	0.3	$	6.3	$	—	$	6.3	$	5.7
Wholesale financing	—		0.6		—		0.6		0.5
Finance receivables	0.3		6.9		—		6.9		6.2
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.3	$	6.9	$	—	$	6.9	$	6.2
Total securitization transactions
Retail financing	$	2.1	$	38.9	$	0.2	$	38.7	$	33.4
Wholesale financing	1.2		24.5		—		24.5		12.0
Finance receivables	3.3		63.4		0.2		63.2		45.4
Net investment in operating leases	0.5		11.5		—		11.5		7.2
Total securitization transactions	$	3.8	$	74.9	$	0.2	$	74.7	$	52.6

__________

(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.

(c) Includes unamortized discount and debt issuance costs.

NOTE 7. TRANSFERS OF RECEIVABLES (Continued)

	September 30, 2018
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt (c)
			Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses
VIE (b)
Retail financing	$	1.9	$	33.9	$	0.2	$	33.7	$	29.4
Wholesale financing	0.3		22.7		—		22.7		13.5
Finance receivables	2.2		56.6		0.2		56.4		42.9
Net investment in operating leases	0.5		12.4		—		12.4		7.7
Total VIE	$	2.7	$	69.0	$	0.2	$	68.8	$	50.6
Non-VIE
Retail financing	$	0.3	$	4.9	$	—	$	4.9	$	4.3
Wholesale financing	—		0.6		—		0.6		0.5
Finance receivables	0.3		5.5		—		5.5		4.8
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.3	$	5.5	$	—	$	5.5	$	4.8
Total securitization transactions
Retail financing	$	2.2	$	38.8	$	0.2	$	38.6	$	33.7
Wholesale financing	0.3		23.3		—		23.3		14.0
Finance receivables	2.5		62.1		0.2		61.9		47.7
Net investment in operating leases	0.5		12.4		—		12.4		7.7
Total securitization transactions	$	3.0	$	74.5	$	0.2	$	74.3	$	55.4

__________

(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.

(c) Includes unamortized discount and debt issuance cost.

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Variable Interest Entities

9 Months Ended

Sep. 30, 2018

Variable Interest Entities [Abstract]

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

We use special purpose entities to issue asset-backed securities in transactions to public and private investors. We have deemed most of these special purpose entities to be VIEs of which we are the primary beneficiary. 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.

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.

See Note 7 for additional information on the financial position and financial performance of our VIEs and Note 9 for additional information regarding derivatives.

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Derivative Financial Instruments and Hedging Activities

9 Months Ended

Sep. 30, 2018

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 highly effective derivative contracts. 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. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting.

Income Effect of Derivative Financial Instruments

The gains / (losses), by hedge designation, recorded in income for the periods ended September 30 were as follows (in millions):

	Third Quarter						First Nine Months
	2017			2018			2017			2018
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments	$	50		$	(5	)	182			$	19
Fair value changes on hedging instruments (a)	(40		)	(102		)	(95		)	(531		)
Fair value changes on hedged debt (a)	40			110			95			521
Derivatives not designated as hedging instruments
Interest rate contracts	20			9			57			(28		)
Foreign currency exchange contracts (b)	(61		)	6			(151		)	104
Cross-currency interest rate swap contracts	5			(75		)	$	79		(258		)
Total	$	14		$	(57	)	$	167		$	(173	)

__________

(a) For 2017, the fair value changes on hedging instruments and on hedged debt were recorded in Other income, net;effective 2018, these amounts were reported in Interest expense.

(b) Reflects forward contracts between Ford Credit and an affiliated company.

NOTE 9. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)

Balance Sheet Effect of Derivative Financial Instruments

Derivative assets and liabilities are recorded on the balance sheet at fair value and are presented on a gross basis. The notional amounts of the derivative instruments do not necessarily represent amounts exchanged by the parties and are not a direct measure of our financial exposure. We also enter into master agreements with counterparties that may allow for netting of exposure in the event of default or breach of the counterparty agreement. Collateral represents cash received or paid under reciprocal arrangements that we have entered into with our derivative counterparties which we do not use to offset our derivative assets and liabilities.

The fair value of our derivative instruments and the associated notional amounts, presented gross, were as follows (in millions):

	December 31, 2017						September 30, 2018
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	28,008	$	248	$	135	$	27,769	$	112	$	632
Derivatives not designated as hedging instruments
Interest rate contracts	60,504		276		137		68,226		250		298
Foreign currency exchange contracts	2,406		3		10		3,510		39		6
Cross-currency interest rate swap contracts	4,006		408		28		5,649		206		166
Total derivative financial instruments, gross (a) (b)	$	94,924	$	935	$	310	$	105,154	$	607	$	1,102

__________

(a) At December 31, 2017 and September 30, 2018, we held collateral of $15 million and $16 million, respectively, and we posted collateral of $38 million and $59 million, respectively.

(b) At December 31, 2017 and September 30, 2018, the fair value of assets and liabilities available for counterparty netting was $162 million and $146 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.

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Other Assets and Other Liabilities and Deferred Income

9 Months Ended

Sep. 30, 2018

Other Assets and Other Liabilities and Deferred Income [Abstract]

OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED INCOME

OTHER ASSETS AND OTHER LIABILITIES AND DEFERRED REVENUE

Other assets and other liabilities and deferred revenue 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):

	December 31, 2017		September 30, 2018
Accrued interest and other non-finance receivables	$	1,117	$	1,075
Collateral held for resale, at net realizable value, and other inventory	780		740
Prepaid reinsurance premiums and other reinsurance recoverables	611		651
Deferred charges – income taxes	247		225
Property and equipment, net of accumulated depreciation (a)	177		187
Restricted cash	124		147
Investment in non-consolidated affiliates	107		117
Deferred charges	127		95
Other	39		80
Total other assets	$	3,329	$	3,317

__________

(a) Accumulated depreciation was $354 million and $361 million at December 31, 2017 and September 30, 2018, respectively.

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

	December 31, 2017		September 30, 2018
Unearned insurance premiums and fees	$	723	$	769
Interest payable	722		572
Income tax and related interest (a)	301		290
Deferred revenue	148		103
Payroll and employee benefits	68		70
Other	310		235
Total other liabilities and deferred income	$	2,272	$	2,039

__________

(a) Includes tax and interest payable to affiliated companies of $99 million and $94 million at December 31, 2017 and September 30, 2018, respectively.

We have investments in entities for which we do not have the ability to exercise significant influence and fair values are not readily available. We have elected to record these investments at cost (less impairment, if any), adjusted for changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. We report the carrying value of these investments in Other assets in our consolidated balance sheet. These investments were $7 million and $9 million at December 31, 2017 and September 30, 2018, respectively. There were no material adjustments to the fair values of these investments during the period ending September 30, 2018.

Deferred revenue balances presented above include amounts from contracts with customers primarily related to admission fee revenue on group financing products available in Argentina and were $124 million and $76 million at December 31, 2017 and September 30, 2018, respectively.

Admission fee revenue on group financing products is generally recognized evenly over the term of the agreement, which is up to 84 months. Increases in the admission fee deferred revenue balance are the result of payments due during the current period in advance of satisfying our performance under the contract and decreases are a result of revenue recognized during the current period that was previously deferred.

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Debt

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

DEBT AND COMMITMENTS

Debt outstanding and interest rates were as follows (in millions):

							Interest Rates
	Debt						Average Contractual				Average Effective
	December 31, 2017			September 30, 2018			2017		2018		2017		2018
Short-term debt
Unsecured debt
Floating rate demand notes	$	5,660		$	5,939
Commercial paper	4,889			4,175
Other short-term debt	5,890			3,698
Asset-backed debt	786			1,564
Total short-term debt	17,225			15,376			3.0	%	3.1	%	3.0	%	3.1	%
Long-term debt
Unsecured debt
Notes payable within one year	13,298			13,123
Notes payable after one year	55,687			56,591
Asset-backed debt (a)
Notes payable within one year	17,817			19,139
Notes payable after one year	34,051			34,784
Unamortized discount	(1		)	—
Unamortized issuance costs	(228		)	(224		)
Fair value adjustments (b)	(21		)	(559		)
Total long-term debt	120,603			122,854			2.5	%	2.7	%	2.6	%	2.8	%
Total debt	$	137,828		$	138,230		2.6	%	2.8	%	2.6	%	2.8	%
Fair value of debt (c)	$	139,677		$	138,374

__________

(a) 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.

(b) These adjustments relate to designated fair value hedges. The carrying value of hedged debt was $39.0 billion and $39.1 billion at December 31, 2017 and September 30, 2018, respectively.

(c) The fair value of debt includes $16.4 billion and $13.8 billion of short-term debt at December 31, 2017 and September 30, 2018, respectively, carried at cost, which approximates fair value. All other debt is categorized within Level 2 of the fair value hierarchy.

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Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2018

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

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS)

The changes in the balance of Accumulated Other Comprehensive Income / (Loss) (“AOCI”) attributable to Ford Credit for the periods ended September 30 were as follows (in millions):

	Third Quarter						First Nine Months
	2017			2018			2017			2018
Beginning AOCI balance	$	(609	)	$	(670	)	$	(890	)	$	(419	)
Net gain / (loss) on foreign currency translation	204			(49		)	485			(300		)
Ending AOCI balance	$	(405	)	$	(719	)	$	(405	)	$	(719	)

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Other Income, Net

9 Months Ended

Sep. 30, 2018

Other Income and Expenses [Abstract]

OTHER INCOME, NET

OTHER INCOME, NET

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 for the periods ended September 30 were as follows (in millions):

	Third Quarter						First Nine Months
	2017			2018			2017			2018
Gains / (Losses) on derivatives	$	(36	)	$	(60	)	$	(15	)	$	(182	)
Currency revaluation gains / (losses)	51			36			73			80
Interest and investment income	33			49			80			140
Other	9			11			35			36
Total other income, net	$	57		$	36		$	173		$	74

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Segment Information

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

SEGMENT INFORMATION

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

	Americas		Europe		Asia Pacific		Total Segments		Unallocated Other (a)			Total
Third Quarter 2017
Total revenue	$	2,493	$	247	$	123	$	2,863	$	—		$	2,863
Income before income taxes	485		72		23		580		20			600
Other disclosures:
Depreciation on vehicles subject to operating leases	975		14		—		989		—			989
Interest expense	669		65		76		810		—			810
Provision for credit losses	159		7		3		169		—			169
Third Quarter 2018
Total revenue	$	2,677	$	284	$	120	$	3,081	$	—		$	3,081
Income before income taxes	556		89		13		658		20			678
Other disclosures:
Depreciation on vehicles subject to operating leases	895		12		—		907		—			907
Interest expense	848		68		75		991		(2		)	989
Provision for credit losses	145		1		10		156		—			156
First Nine Months 2017
Total revenue	$	7,359	$	709	$	328	$	8,396	$	—		$	8,396
Income before income taxes	1,308		223		69		1,600		100			1,700
Other disclosures:
Depreciation on vehicles subject to operating leases	3,055		35		—		3,090		—			3,090
Interest expense	1,930		187		191		2,308		—			2,308
Provision for credit losses	389		21		10		420		—			420
Net finance receivables and net investment in operating leases	115,331		23,855		5,921		145,107		(7,579		)	137,528
Total assets	120,398		27,323		6,757		154,478		—			154,478
First Nine Months 2018
Total revenue	$	7,918	$	878	$	404	$	9,200	$	—		$	9,200
Income before income taxes	1,619		303		86		2,008		(44		)	1,964
Other disclosures:
Depreciation on vehicles subject to operating leases	2,878		20		—		2,898		—			2,898
Interest expense	2,430		216		256		2,902		(4		)	2,898
Provision for credit losses	340		14		13		367		—			367
Net finance receivables and net investment in operating leases	120,425		25,995		5,720		152,140		(8,526		)	143,614
Total assets	128,103		27,120		6,023		161,246		—			161,246

__________

(a) Net finance receivables and Net investment in operating leases include unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation).

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 segment our business based on geographic regions: the Americas, Europe, and Asia Pacific. Items excluded in assessing segment performance because they are managed at the corporate level, including market valuation adjustments to derivatives and exchange-rate fluctuations on foreign currency-denominated transactions, are reflected in Unallocated Other. The following is a brief description of our segments:

• Americas Segment – United States, Canada, Mexico, Brazil, and Argentina

• Europe Segment – European region and South Africa

• Asia Pacific Segment – China and India

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Commitments and contingencies primarily consist 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 a guarantee or indemnity, 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 underlying 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 a 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 $52 million and $55 million at December 31, 2017 and September 30, 2018, respectively. Of these values, $44 million at both December 31, 2017 and September 30, 2018, respectively, were counter-guaranteed by Ford to us. There were no recorded liabilities related to guarantees and limited indemnities at December 31, 2017 or September 30, 2018.

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.

We accrue for matters 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 the 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 and could require us to pay damages or make other expenditures. On October 5, 2018, FCE Bank plc received a notice from the Italian Competition Authority (the “ICA”) concerning an alleged violation of Article 101 of the Treaty on the Functioning of the European Union. While we have determined that an adverse outcome is not probable, the reasonably possible loss could be up to $300 million.  If the matter results in an adverse outcome at the administrative phase of the proceedings, based on our understanding of the facts we have grounds to challenge and would appeal to the administrative court based in Rome. We could be required to pay a fine during the appellate process, with the ultimate resolution of the matter potentially taking several years.

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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Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2018

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. 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, 2017 (“2017 Form 10-K Report”). We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”).

Reclassifications [Abstract]

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

We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Argentina was classified as having a highly inflationary economy due to the three-year cumulative consumer price index exceeding 100%. As a result, we changed the functional currency for our operations in Argentina from the Argentine peso to the U.S. dollar as of July 1, 2018.

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 infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.

Loans and Leases Receivable Disclosure [Abstract]

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

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.

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.

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives, Policy [Policy Text Block]

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. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting.

Commitments and Contingencies Disclosure [Abstract]

Guarantees and Indemnifications Policies [Policy Text Block]

For nearly all of our matters, where our historical experience with similar matters is of limited value (i.e., “non-pattern matters”), we evaluate the 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.

We accrue for matters 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.

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 a guarantee or indemnity, the amount of probable payment is recorded.

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Cash, Cash Equivalents, and Marketable Securities (Tables)

9 Months Ended

Sep. 30, 2018

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 cash, cash equivalents, and marketable securities measured at fair value on a recurring basis (in millions):

	Fair Value Level	December 31, 2017		September 30, 2018
Cash and cash equivalents
U.S. government	1	$	—	$	569
U.S. government and agencies	2	300		422
Non-U.S. government and agencies	2	703		565
Corporate debt	2	25		889
Total marketable securities classified as cash equivalents		1,028		2,445
Cash, time deposits and money market funds		8,530		8,552
Total cash and cash equivalents		$	9,558	$	10,997
Marketable Securities
U.S. government	1	$	966	$	257
U.S. government and agencies	2	384		139
Non-U.S. government and agencies	2	660		888
Corporate debt	2	848		305
Other marketable securities	2	23		151
Total marketable securities		$	2,881	$	1,740

Schedule of cash, cash equivalents and restricted cash [Table Text Block]

Cash, cash equivalents, and restricted cash as reported in the statement of cash flows are presented separately on our consolidated balance sheet as follows (in millions):

	December 31, 2017		September 30, 2018
Cash and cash equivalents	$	9,558	$	10,997
Restricted cash included in other assets (a)	124		147
Total cash, cash equivalents, and restricted cash	$	9,682	$	11,144

__________

(a) 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.

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Finance Receivables (Tables)

9 Months Ended

Sep. 30, 2018

Financing Receivables [Line Items]

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

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

	December 31, 2017			September 30, 2018
Consumer
Retail financing, gross	$	78,467		$	80,269
Unearned interest supplements from Ford and affiliated companies	(3,280		)	(3,442		)
Consumer finance receivables	75,187			76,827
Non-Consumer
Dealer financing	39,241			38,017
Other financing	2,172			1,786
Non-Consumer finance receivables	41,413			39,803
Total recorded investment	$	116,600		$	116,630
Recorded investment in finance receivables	$	116,600		$	116,630
Allowance for credit losses	(597		)	(586		)
Finance receivables, net	$	116,003		$	116,044
Net finance receivables subject to fair value (a)	$	112,717		$	112,367
Fair value	112,133			111,591

__________

(a) At December 31, 2017 and September 30, 2018, Finance receivables, net includes $3.3 billion and $3.7 billion, respectively, of direct financing leases that are not subject to fair value disclosure requirements. The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy.

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

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

	December 31, 2017		September 30, 2018
Consumer
31-60 days past due	$	748	$	691
61-90 days past due	113		109
91-120 days past due	36		42
Greater than 120 days past due	37		40
Total past due	934		882
Current	74,253		75,945
Consumer finance receivables	75,187		76,827
Non-Consumer
Total past due	122		77
Current	41,291		39,726
Non-Consumer finance receivables	41,413		39,803
Total recorded investment	$	116,600	$	116,630

Non-Consumer 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):

	December 31, 2017		September 30, 2018
Dealer financing
Group I	$	31,551	$	30,704
Group II	5,912		5,532
Group III	1,640		1,616
Group IV	138		165
Total recorded investment	$	39,241	$	38,017

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Net Investment in Operating Leases (Tables)

9 Months Ended

Sep. 30, 2018

Leases, Operating [Abstract]

Net investment in operating leases [Table Text Block]

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

	December 31, 2017			September 30, 2018
Vehicles, at cost (a)	$	32,659		$	33,703
Accumulated depreciation	(5,927		)	(6,056		)
Net investment in operating leases before allowance for credit losses	26,732			27,647
Allowance for credit losses	(71		)	(77		)
Net investment in operating leases	$	26,661		$	27,570

__________

(a) Includes interest supplements and residual support payments we receive on certain leasing transactions under agreements with Ford and affiliated companies, and other vehicle acquisition costs.

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Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2018

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

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

An analysis of the allowance for credit losses related to finance receivables and net investment in operating leases for the periods ended September 30 was as follows (in millions):

	Third Quarter 2017
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	507		$	15		$	522		$	66		$	588
Charge-offs	(132		)	—			(132		)	(51		)	(183		)
Recoveries	36			4			40			25			65
Provision for credit losses	146			(6		)	140			29			169
Other (a)	5			—			5			—			5
Ending balance	$	562		$	13		$	575		$	69		$	644
	First Nine Months 2017
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	469		$	15		$	484		$	64		$	548
Charge-offs	(366		)	(3		)	(369		)	(155		)	(524		)
Recoveries	105			8			113			73			186
Provision for credit losses	341			(7		)	334			86			420
Other (a)	13			—			13			1			14
Ending balance	$	562		$	13		$	575		$	69		$	644
Analysis of ending balance of allowance for credit losses
Collective impairment allowance	$	541		$	13		$	554		$	69		$	623
Specific impairment allowance	21			—			21			—			21
Ending balance	562			13			575			69			$	644
Analysis of ending balance of finance receivables and net investment in operating leases
Collectively evaluated for impairment	72,069			38,564			110,633			27,000
Specifically evaluated for impairment	387			152			539			—
Recorded investment	72,456			38,716			111,172			27,000
Ending balance, net of allowance for credit losses	$	71,894		$	38,703		$	110,597		$	26,931

__________

(a) Primarily represents amounts related to translation adjustments.

NOTE 6. ALLOWANCE FOR CREDIT LOSSES (Continued)

	Third Quarter 2018
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	573		$	14		$	587		$	72		$	659
Charge-offs (a)	(128		)	(43		)	(171		)	(51		)	(222		)
Recoveries	40			4			44			26			70
Provision for credit losses	73			52			125			31			156
Other (b)	1			—			1			(1		)	—
Ending balance	$	559		$	27		$	586		$	77		$	663
	First Nine Months 2018
	Finance Receivables									Net Investment in Operating Leases			Total Allowance
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	582		$	15		$	597		$	71		$	668
Charge-offs (a)	(382		)	(46		)	(428		)	(149		)	(577		)
Recoveries	126			6			132			78			210
Provision for credit losses	237			52			289			78			367
Other (b)	(4		)	—			(4		)	(1		)	(5		)
Ending balance	$	559		$	27		$	586		$	77		$	663
Analysis of ending balance of allowance for credit losses
Collective impairment allowance	$	538		$	14		$	552		$	77		$	629
Specific impairment allowance	21			13			34			—			34
Ending balance	559			27			586			77			$	663
Analysis of ending balance of finance receivables and net investment in operating leases
Collectively evaluated for impairment	76,448			39,638			116,086			27,647
Specifically evaluated for impairment	379			165			544			—
Recorded investment	76,827			39,803			116,630			27,647
Ending balance, net of allowance for credit losses	$	76,268		$	39,776		$	116,044		$	27,570

__________

(a) The charge-off of non-consumer (dealer financing) receivables primarily reflects a specific U.S. dealer’s wholesale vehicle inventory and dealer loan determined to be uncollectible.

(b) Primarily represents amounts related to translation adjustments.

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Transfers of Receivables (Tables)

9 Months Ended

Sep. 30, 2018

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):

	December 31, 2017
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt (c)
			Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses
VIE (b)
Retail financing	$	1.8	$	32.6	$	0.2	$	32.4	$	27.7
Wholesale financing	1.2		23.9		—		23.9		11.5
Finance receivables	3.0		56.5		0.2		56.3		39.2
Net investment in operating leases	0.5		11.5		—		11.5		7.2
Total VIE	$	3.5	$	68.0	$	0.2	$	67.8	$	46.4
Non-VIE
Retail financing	$	0.3	$	6.3	$	—	$	6.3	$	5.7
Wholesale financing	—		0.6		—		0.6		0.5
Finance receivables	0.3		6.9		—		6.9		6.2
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.3	$	6.9	$	—	$	6.9	$	6.2
Total securitization transactions
Retail financing	$	2.1	$	38.9	$	0.2	$	38.7	$	33.4
Wholesale financing	1.2		24.5		—		24.5		12.0
Finance receivables	3.3		63.4		0.2		63.2		45.4
Net investment in operating leases	0.5		11.5		—		11.5		7.2
Total securitization transactions	$	3.8	$	74.9	$	0.2	$	74.7	$	52.6

__________

(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.

(c) Includes unamortized discount and debt issuance costs.

NOTE 7. TRANSFERS OF RECEIVABLES (Continued)

	September 30, 2018
	Cash and Cash Equivalents		Finance Receivables and Net Investment in Operating Leases (a)						Related Debt (c)
			Before Allowance for Credit Losses		Allowance for Credit Losses		After Allowance for Credit Losses
VIE (b)
Retail financing	$	1.9	$	33.9	$	0.2	$	33.7	$	29.4
Wholesale financing	0.3		22.7		—		22.7		13.5
Finance receivables	2.2		56.6		0.2		56.4		42.9
Net investment in operating leases	0.5		12.4		—		12.4		7.7
Total VIE	$	2.7	$	69.0	$	0.2	$	68.8	$	50.6
Non-VIE
Retail financing	$	0.3	$	4.9	$	—	$	4.9	$	4.3
Wholesale financing	—		0.6		—		0.6		0.5
Finance receivables	0.3		5.5		—		5.5		4.8
Net investment in operating leases	—		—		—		—		—
Total Non-VIE	$	0.3	$	5.5	$	—	$	5.5	$	4.8
Total securitization transactions
Retail financing	$	2.2	$	38.8	$	0.2	$	38.6	$	33.7
Wholesale financing	0.3		23.3		—		23.3		14.0
Finance receivables	2.5		62.1		0.2		61.9		47.7
Net investment in operating leases	0.5		12.4		—		12.4		7.7
Total securitization transactions	$	3.0	$	74.5	$	0.2	$	74.3	$	55.4

__________

(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.

(c) Includes unamortized discount and debt issuance cost.

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Derivative Financial Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

The gains / (losses), by hedge designation, recorded in income for the periods ended September 30 were as follows (in millions):

	Third Quarter						First Nine Months
	2017			2018			2017			2018
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments	$	50		$	(5	)	182			$	19
Fair value changes on hedging instruments (a)	(40		)	(102		)	(95		)	(531		)
Fair value changes on hedged debt (a)	40			110			95			521
Derivatives not designated as hedging instruments
Interest rate contracts	20			9			57			(28		)
Foreign currency exchange contracts (b)	(61		)	6			(151		)	104
Cross-currency interest rate swap contracts	5			(75		)	$	79		(258		)
Total	$	14		$	(57	)	$	167		$	(173	)

__________

(a) For 2017, the fair value changes on hedging instruments and on hedged debt were recorded in Other income, net;effective 2018, these amounts were reported in Interest expense.

(b) Reflects forward contracts between Ford Credit and an affiliated company.

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

The fair value of our derivative instruments and the associated notional amounts, presented gross, were as follows (in millions):

	December 31, 2017						September 30, 2018
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	28,008	$	248	$	135	$	27,769	$	112	$	632
Derivatives not designated as hedging instruments
Interest rate contracts	60,504		276		137		68,226		250		298
Foreign currency exchange contracts	2,406		3		10		3,510		39		6
Cross-currency interest rate swap contracts	4,006		408		28		5,649		206		166
Total derivative financial instruments, gross (a) (b)	$	94,924	$	935	$	310	$	105,154	$	607	$	1,102

__________

(a) At December 31, 2017 and September 30, 2018, we held collateral of $15 million and $16 million, respectively, and we posted collateral of $38 million and $59 million, respectively.

(b) At December 31, 2017 and September 30, 2018, the fair value of assets and liabilities available for counterparty netting was $162 million and $146 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.

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Other Assets and Other Liabilities and Deferred Income (Tables)

9 Months Ended

Sep. 30, 2018

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):

	December 31, 2017		September 30, 2018
Accrued interest and other non-finance receivables	$	1,117	$	1,075
Collateral held for resale, at net realizable value, and other inventory	780		740
Prepaid reinsurance premiums and other reinsurance recoverables	611		651
Deferred charges – income taxes	247		225
Property and equipment, net of accumulated depreciation (a)	177		187
Restricted cash	124		147
Investment in non-consolidated affiliates	107		117
Deferred charges	127		95
Other	39		80
Total other assets	$	3,329	$	3,317

__________

(a) Accumulated depreciation was $354 million and $361 million at December 31, 2017 and September 30, 2018, respectively.

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

	December 31, 2017		September 30, 2018
Unearned insurance premiums and fees	$	723	$	769
Interest payable	722		572
Income tax and related interest (a)	301		290
Deferred revenue	148		103
Payroll and employee benefits	68		70
Other	310		235
Total other liabilities and deferred income	$	2,272	$	2,039

__________

(a) Includes tax and interest payable to affiliated companies of $99 million and $94 million at December 31, 2017 and September 30, 2018, respectively.

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Debt (Tables)

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

							Interest Rates
	Debt						Average Contractual				Average Effective
	December 31, 2017			September 30, 2018			2017		2018		2017		2018
Short-term debt
Unsecured debt
Floating rate demand notes	$	5,660		$	5,939
Commercial paper	4,889			4,175
Other short-term debt	5,890			3,698
Asset-backed debt	786			1,564
Total short-term debt	17,225			15,376			3.0	%	3.1	%	3.0	%	3.1	%
Long-term debt
Unsecured debt
Notes payable within one year	13,298			13,123
Notes payable after one year	55,687			56,591
Asset-backed debt (a)
Notes payable within one year	17,817			19,139
Notes payable after one year	34,051			34,784
Unamortized discount	(1		)	—
Unamortized issuance costs	(228		)	(224		)
Fair value adjustments (b)	(21		)	(559		)
Total long-term debt	120,603			122,854			2.5	%	2.7	%	2.6	%	2.8	%
Total debt	$	137,828		$	138,230		2.6	%	2.8	%	2.6	%	2.8	%
Fair value of debt (c)	$	139,677		$	138,374

__________

(a) 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.

(b) These adjustments relate to designated fair value hedges. The carrying value of hedged debt was $39.0 billion and $39.1 billion at December 31, 2017 and September 30, 2018, respectively.

(c) The fair value of debt includes $16.4 billion and $13.8 billion of short-term debt at December 31, 2017 and September 30, 2018, respectively, carried at cost, which approximates fair value. All other debt is categorized within Level 2 of the fair value hierarchy.

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Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2018

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

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

The changes in the balance of Accumulated Other Comprehensive Income / (Loss) (“AOCI”) attributable to Ford Credit for the periods ended September 30 were as follows (in millions):

	Third Quarter						First Nine Months
	2017			2018			2017			2018
Beginning AOCI balance	$	(609	)	$	(670	)	$	(890	)	$	(419	)
Net gain / (loss) on foreign currency translation	204			(49		)	485			(300		)
Ending AOCI balance	$	(405	)	$	(719	)	$	(405	)	$	(719	)

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Other Income, Net (Tables)

9 Months Ended

Sep. 30, 2018

Other Income and Expenses [Abstract]

Schedule of Other Income [Table Text Block]

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

	Third Quarter						First Nine Months
	2017			2018			2017			2018
Gains / (Losses) on derivatives	$	(36	)	$	(60	)	$	(15	)	$	(182	)
Currency revaluation gains / (losses)	51			36			73			80
Interest and investment income	33			49			80			140
Other	9			11			35			36
Total other income, net	$	57		$	36		$	173		$	74

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Segment and Geographic Information (Tables)

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

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

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

	Americas		Europe		Asia Pacific		Total Segments		Unallocated Other (a)			Total
Third Quarter 2017
Total revenue	$	2,493	$	247	$	123	$	2,863	$	—		$	2,863
Income before income taxes	485		72		23		580		20			600
Other disclosures:
Depreciation on vehicles subject to operating leases	975		14		—		989		—			989
Interest expense	669		65		76		810		—			810
Provision for credit losses	159		7		3		169		—			169
Third Quarter 2018
Total revenue	$	2,677	$	284	$	120	$	3,081	$	—		$	3,081
Income before income taxes	556		89		13		658		20			678
Other disclosures:
Depreciation on vehicles subject to operating leases	895		12		—		907		—			907
Interest expense	848		68		75		991		(2		)	989
Provision for credit losses	145		1		10		156		—			156
First Nine Months 2017
Total revenue	$	7,359	$	709	$	328	$	8,396	$	—		$	8,396
Income before income taxes	1,308		223		69		1,600		100			1,700
Other disclosures:
Depreciation on vehicles subject to operating leases	3,055		35		—		3,090		—			3,090
Interest expense	1,930		187		191		2,308		—			2,308
Provision for credit losses	389		21		10		420		—			420
Net finance receivables and net investment in operating leases	115,331		23,855		5,921		145,107		(7,579		)	137,528
Total assets	120,398		27,323		6,757		154,478		—			154,478
First Nine Months 2018
Total revenue	$	7,918	$	878	$	404	$	9,200	$	—		$	9,200
Income before income taxes	1,619		303		86		2,008		(44		)	1,964
Other disclosures:
Depreciation on vehicles subject to operating leases	2,878		20		—		2,898		—			2,898
Interest expense	2,430		216		256		2,902		(4		)	2,898
Provision for credit losses	340		14		13		367		—			367
Net finance receivables and net investment in operating leases	120,425		25,995		5,720		152,140		(8,526		)	143,614
Total assets	128,103		27,120		6,023		161,246		—			161,246

__________

(a) Net finance receivables and Net investment in operating leases include unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation).

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Accounting Policies (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	9 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2018	Sep. 30, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent	23.60%		13.50%
Capital Loss Carryforward		$ 235
Cumulative Effect of New Accounting Principle in Period of Adoption				$ 9
Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating Lease Right Of Use Asset Expected	$ 100		$ 100
Minimum [Member] | Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating Lease Liability Expected	$ 100		$ 100

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Cash, Cash Equivalents, and Marketable Securities (Details) - USD ($) $ in Millions	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total cash and cash equivalents	$ 10,997	$ 10,997	$ 9,558
Restricted Cash	147		124
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	11,144		9,682	$ 8,956	$ 8,185
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash and cash equivalents	2,445		1,028
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Marketable securities	1,740		2,881
Investment Type [Member] | Fair Value, Estimate Not Practicable, Carrying (Reported) Amount [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash, time deposits and money market funds	8,552		8,530
US Government [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash and cash equivalents	569		0
Marketable securities	257		966
US Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash and cash equivalents	422		300
Marketable securities	139		384
Foreign Government Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash and cash equivalents	565		703
Marketable securities	888		660
Corporate debt [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash and cash equivalents	889		25
Marketable securities	305		848
Other Debt Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Marketable securities	$ 151		$ 23

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Finance Receivables Net (Details) - USD ($) $ in Millions	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Net Finance Receivables [Abstract]
Financing Receivable, Gross	$ 116,630		$ 116,600	$ 111,172
Allowance for credit losses	(586)	$ (587)	(597)	(575)	$ (522)	$ (484)
Financing Receivable, Net	116,044		116,003	110,597
Net finance receivables subject to fair value	112,367		112,717
Finance receivables not subject to fair value	3,700		3,300
Uncollected interest receivable excluded from finance receivable	241		241
Consumer Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivable, Gross	76,827		75,187	72,456
Allowance for credit losses	(559)	(573)	(582)	(562)	(507)	(469)
Financing Receivable, Net	76,268			71,894
Continuing Involvement with Continued to be Recognized Transferred Financial Assets, Amount Outstanding	38,800		38,900
Non-Consumer Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivable, Gross	39,803		41,413	38,716
Allowance for credit losses	(27)	$ (14)	(15)	(13)	$ (15)	$ (15)
Financing Receivable, Net	39,776			$ 38,703
Continuing Involvement with Continued to be Recognized Transferred Financial Assets, Amount Outstanding	23,300		24,500
Retail [Member] | Consumer Segment [Member]
Net Finance Receivables [Abstract]
Finance receivables before unearned interest supplements	80,269		78,467
Unearned interest supplements from Ford and affiliated companies	(3,442)		(3,280)
Financing Receivable, Gross	76,827		75,187
Wholesale and Dealer Loans [Member] | Non-Consumer Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivable, Gross	38,017		39,241
Other Finance Receivables [Member] | Non-Consumer Segment [Member]
Net Finance Receivables [Abstract]
Financing Receivable, Gross	1,786		2,172
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Net Finance Receivables [Abstract]
Fair value	$ 111,591		$ 112,133

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Finance Receivables - Aging Analysis (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Threshold Period For Past Due Finance Receivables	31 days
Finance Receivables Aging Analysis [Abstract]
Financing Receivables	$ 116,630	$ 116,600	$ 111,172
Uncollected Interest Receivable Excluded From Finance Receivable	241	241
Consumer Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	21	24
Finance Receivables Aging Analysis [Abstract]
Total past due	882	934
Current	75,945	74,253
Financing Receivables	76,827	75,187	72,456
Non-Consumer Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0	1
Finance Receivables Aging Analysis [Abstract]
Total past due	77	122
Current	39,726	41,291
Financing Receivables	39,803	41,413	$ 38,716
31-60 Days Past Due [Member] | Consumer Segment [Member]
Finance Receivables Aging Analysis [Abstract]
Total past due	691	748
61-90 Days Past Due [Member] | Consumer Segment [Member]
Finance Receivables Aging Analysis [Abstract]
Total past due	109	113
91-120 Days Past Due [Member] | Consumer Segment [Member]
Finance Receivables Aging Analysis [Abstract]
Total past due	42	36
Greater Than 120 Days Past Due [Member] | Consumer Segment [Member]
Finance Receivables Aging Analysis [Abstract]
Total past due	$ 40	$ 37

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Finance Receivables - Credit Quality and Impaired Receivables (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	$ 116,630	$ 116,600	$ 111,172
Consumer Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Threshold Period for Impaired Finance Receivables	120 days
Financing Receivables	$ 76,827	75,187	72,456
Impaired Financing Receivable, Recorded Investment	$ 379	$ 386
Impaired Financing Receivable Recorded Investment, Percentage of Receivable	0.50%	0.50%
Consumer Segment [Member] | Pass [Member] | Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance Receivables Credit Quality Ratings Term Range	60 days
Consumer Segment [Member] | Special Mention [Member] | Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance Receivables Credit Quality Ratings Term Range	61 days
Consumer Segment [Member] | Special Mention [Member] | Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance Receivables Credit Quality Ratings Term Range	120 days
Consumer Segment [Member] | Substandard [Member] | Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance Receivables Credit Quality Ratings Term Range	120 days
Non-Consumer Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	$ 39,803	$ 41,413	$ 38,716
Impaired Financing Receivable, Recorded Investment	$ 165	$ 138
Impaired Financing Receivable Recorded Investment, Percentage of Receivable	0.40%	0.30%
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	$ 38,017	$ 39,241
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	30,704	31,551
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group II
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	5,532	5,912
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group III
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	1,616	1,640
Non-Consumer Segment [Member] | Wholesale and Dealer Loans [Member] | Group IV
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivables	$ 165	$ 138

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Net Investments in Operating Leases (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Property Subject to or Available for Operating Lease [Line Items]
Length of lease contract	60 months or less
Vehicles, at cost	$ 33,703		$ 32,659
Accumulated depreciation	(6,056)		(5,927)
Net investment in operating leases before allowance for credit losses	27,647		26,732	$ 27,000
Allowance for credit losses	(77)	$ (72)	(71)	(69)	$ (66)	$ (64)
Net investment in operating leases	27,570		26,661	$ 26,931
Net Investment in Operating Leases [Member]
Property Subject to or Available for Operating Lease [Line Items]
Continuing Involvement with Continued to be Recognized Transferred Financial Assets, Amount Outstanding	$ 12,400		$ 11,500

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Allowance for Credit Losses (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Allowance for credit losses, finance receivables
Beginning balance	$ 587	$ 522	$ 597	$ 484
Charge-offs	(171)	(132)	(428)	(369)
Recoveries	44	40	132	113
Provision for credit losses	125	140	289	334
Other	1	5	(4)	13
Ending balance	586	575	586	575
Analysis of ending balance of allowance for credit losses, finance receivables
Collective impairment allowance	552	554	552	554
Specific impairment allowance	34	21	34	21
Ending balance	586	575	586	575
Analysis of ending balance of finance receivables
Collectively evaluated for impairment	116,086	110,633	116,086	110,633
Specifically evaluated for impairment	544	539	544	539
Financing Receivables	116,630	111,172	116,630	111,172	$ 116,600
Allowance for credit losses, net investment in operating leases
Beginning balance	72	66	71	64
Charge-offs	(51)	(51)	(149)	(155)
Recoveries	26	25	78	73
Other	(1)	0	(1)	1
Ending balance	77	69	77	69
Analysis of ending balance of allowance for credit losses, net investment in operating leases
Collective impairment allowance	77	69	77	69
Specific impairment allowance	0	0	0	0
Ending balance	77	69	77	69
Analysis of ending balance of net investment in operating leases
Collectively evaluated for impairment	27,647	27,000	27,647	27,000
Individually evaluated for impairment	0	0	0	0
Net investment in operating leases before allowance for credit losses	27,647	27,000	27,647	27,000	26,732
Total allowance
Beginning balance	659	588	668	548
Charge-offs	(222)	(183)	(577)	(524)
Recoveries	70	65	210	186
Provision for credit losses	156	169	367	420
Other	0	5	(5)	14
Ending balance	663	644	663	644
Analysis of Ending Balance of Finance Receivables and Net Investment in Operating Leases [Abstract]
Collective impairment allowance	629	623	629	623
Specific impairment allowance	34	21	34	21
Ending balance	663	644	663	644
Ending balance, net of allowance for credit losses	116,044	110,597	116,044	110,597	116,003
Ending balance, net investment in operating leases	27,570	26,931	27,570	26,931	26,661
Net Investment in Operating Leases [Member]
Allowance for credit losses, finance receivables
Provision for credit losses	31	29	78	86
Consumer Segment [Member]
Allowance for credit losses, finance receivables
Beginning balance	573	507	582	469
Charge-offs	(128)	(132)	(382)	(366)
Recoveries	40	36	126	105
Provision for credit losses	73	146	237	341
Other	1	5	(4)	13
Ending balance	559	562	559	562
Analysis of ending balance of allowance for credit losses, finance receivables
Collective impairment allowance	538	541	538	541
Specific impairment allowance	21	21	21	21
Ending balance	559	562	559	562
Analysis of ending balance of finance receivables
Collectively evaluated for impairment	76,448	72,069	76,448	72,069
Specifically evaluated for impairment	379	387	379	387
Financing Receivables	76,827	72,456	76,827	72,456	75,187
Analysis of Ending Balance of Finance Receivables and Net Investment in Operating Leases [Abstract]
Ending balance, net of allowance for credit losses	76,268	71,894	76,268	71,894
Non-Consumer Segment [Member]
Allowance for credit losses, finance receivables
Beginning balance	14	15	15	15
Charge-offs	(43)	0	(46)	(3)
Recoveries	4	4	6	8
Provision for credit losses	52	(6)	52	(7)
Other	0	0	0	0
Ending balance	27	13	27	13
Analysis of ending balance of allowance for credit losses, finance receivables
Collective impairment allowance	14	13	14	13
Specific impairment allowance	13	0	13	0
Ending balance	27	13	27	13
Analysis of ending balance of finance receivables
Collectively evaluated for impairment	39,638	38,564	39,638	38,564
Specifically evaluated for impairment	165	152	165	152
Financing Receivables	39,803	38,716	39,803	38,716	$ 41,413
Analysis of Ending Balance of Finance Receivables and Net Investment in Operating Leases [Abstract]
Ending balance, net of allowance for credit losses	$ 39,776	$ 38,703	$ 39,776	$ 38,703

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Transfers of Receivables - Assets and Liabilities of Securitizations (Details) - USD ($) $ in Millions	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Securitization Transactions [Line Items]
Cash and cash equivalents	$ 10,997	$ 10,997	$ 9,558
Allowance for Credit Losses	663	$ 659	668	$ 644	$ 588	$ 548
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	143,614			$ 137,528
Related Debt	138,230		137,828
Variable Interest Entity, Primary Beneficiary [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	2,746		3,479
Related Debt	50,564		46,437
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	2,700		3,500
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	69,000		68,000
Allowance for Credit Losses	200		200
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	68,800		67,800
Related Debt	50,600		46,400
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Financing Receivable [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	2,200		3,000
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	56,600		56,500
Allowance for Credit Losses	200		200
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	56,400		56,300
Related Debt	42,900		39,200
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Retail [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	1,900		1,800
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	33,900		32,600
Allowance for Credit Losses	200		200
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	33,700		32,400
Related Debt	29,400		27,700
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Wholesale [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	300		1,200
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	22,700		23,900
Allowance for Credit Losses	0		0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	22,700		23,900
Related Debt	13,500		11,500
Variable Interest Entity, Primary Beneficiary [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	500		500
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	12,400		11,500
Allowance for Credit Losses	0		0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	12,400		11,500
Related Debt	7,700		7,200
Consolidated Entities [Member] | Securitization Transactions [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	3,000		3,800
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	74,500		74,900
Allowance for Credit Losses	200		200
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	74,300		74,700
Related Debt	55,400		52,600
Consolidated Entities [Member] | Securitization Transactions [Member] | Financing Receivable [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	2,500		3,300
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	62,100		63,400
Allowance for Credit Losses	200		200
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	61,900		63,200
Related Debt	47,700		45,400
Consolidated Entities [Member] | Securitization Transactions [Member] | Retail [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	2,200		2,100
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	38,800		38,900
Allowance for Credit Losses	200		200
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	38,600		38,700
Related Debt	33,700		33,400
Consolidated Entities [Member] | Securitization Transactions [Member] | Wholesale [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	300		1,200
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	23,300		24,500
Allowance for Credit Losses	0		0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	23,300		24,500
Related Debt	14,000		12,000
Consolidated Entities [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	500		500
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	12,400		11,500
Allowance for Credit Losses	0		0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	12,400		11,500
Related Debt	7,700		7,200
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	300		300
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	5,500		6,900
Allowance for Credit Losses	0		0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	5,500		6,900
Related Debt	4,800		6,200
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Financing Receivable [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	300		300
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	5,500		6,900
Allowance for Credit Losses	0		0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	5,500		6,900
Related Debt	4,800		6,200
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Retail [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	300		300
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	4,900		6,300
Allowance for Credit Losses	0		0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	4,900		6,300
Related Debt	4,300		5,700
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Wholesale [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	0		0
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	600		600
Allowance for Credit Losses	0		0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	600		600
Related Debt	500		500
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | Securitization Transactions [Member] | Net Investment in Operating Leases [Member]
Securitization Transactions [Line Items]
Cash and cash equivalents	0		0
Finance Receivables and Net Investment in Operating Leases, Before Allowance for Credit Losses	0		0
Allowance for Credit Losses	0		0
Finance Receivables and Net Investment In Operating Leases, After Allowance for Credit Losses	0		0
Related Debt	$ 0		$ 0

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Derivative Financial Instruments and Hedging Activities (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Derivative [Line Items]
Debt Carrying Value Fair Value	$ 39,100		$ 39,100		$ 39,000
Income Effect of Derivative Financial Instruments [Abstract]
Derivative, Gain (Loss) on Derivative, Net	(57)	$ 14	(173)	$ 167
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Notional	105,154		105,154		94,924
Fair Value of Derivative Assets	607		607		935
Fair Value of Derivative Liabilities	1,102		1,102		310
Derivative, Collateral, Obligation to Return Cash	16		16		15
Derivative, Collateral, Right to Reclaim Cash	59		59		38
Derivative Asset, Not Offset, Policy Election Deduction	146		146		162
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member]
Income Effect of Derivative Financial Instruments [Abstract]
Derivative, Gain (Loss) on Derivative, Net	9	20	(28)	57
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Notional	68,226		68,226		60,504
Interest Rate Contract [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member]
Income Effect of Derivative Financial Instruments [Abstract]
Net interest settlements and accruals excluded from the assessment of hedge effectiveness	(5)	50	19	182
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments	(102)	(40)	(531)	(95)
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge	110	40	521	95
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Notional	27,769		27,769		28,008
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Income Effect of Derivative Financial Instruments [Abstract]
Derivative, Gain (Loss) on Derivative, Net	6	(61)	104	(151)
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Notional	3,510		3,510		2,406
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	(75)	$ 5	(258)	$ 79
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Notional	5,649		5,649		4,006
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member]
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Fair Value of Derivative Assets	250		250		276
Fair Value of Derivative Liabilities	298		298		137
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member]
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Fair Value of Derivative Assets	112		112		248
Fair Value of Derivative Liabilities	632		632		135
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Fair Value of Derivative Assets	39		39		3
Fair Value of Derivative Liabilities	6		6		10
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member]
Balance Sheet Effect of Derivative Financial Instruments [Abstract]
Fair Value of Derivative Assets	206		206		408
Fair Value of Derivative Liabilities	$ 166		$ 166		$ 28

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Other Assets and Other Liabilities and Deferred Income (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Schedule of Other Assets and Liabilities [Line Items]
Related Party Transactions Income Taxes and Related Interest Payable	$ 94	$ 99
Other Assets [Abstract]
Accrued interest and other non-finance receivables	1,075	1,117
Collateral held for resale, at net realizable value, and other inventory	740	780
Prepaid reinsurance premiums and other reinsurance recoverables	651	611
Deferred charges - income taxes	225	247
Property and equipment, net of accumulated depreciation	187	177
Deferred charges	95	127
Restricted cash	147	124
Investment in non-consolidated affiliates	117	107
Other	80	39
Total other assets	3,317	3,329
Accumulated depreciation	361	354
Other Liabilities and Deferred Income [Abstract]
Unearned insurance premiums and fees	769	723
Interest payable	572	722
Taxes Payable	290	301
Deferred revenue	103	148
Payroll and employee benefits	70	68
Other	235	310
Total other liabilities and deferred income	2,039	2,272
Deferred Revenue, Admission Fees	76	124
Cost Method Investments	$ 9	$ 7

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Debt (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Total short-term debt	$ 15,376	$ 17,225
Unamortized discount	0	(1)
Unamortized debt issuance costs	(224)	(228)
Fair value adjustments	(559)	(21)
Total long-term debt	122,854	120,603
Total debt	$ 138,230	$ 137,828
Average Contractual (interest rate)	2.80%	2.60%
Average Effective (interest rate)	2.80%	2.60%
Debt Carrying Value Fair Value	$ 39,100	$ 39,000
Fair value of short-term debt	13,800	16,400
Floating Rate Demand Notes [Member]
Debt Instrument [Line Items]
Total short-term debt	5,939	5,660
Unsecured commercial paper [Member]
Debt Instrument [Line Items]
Total short-term debt	4,175	4,889
Other short-term debt [Member]
Debt Instrument [Line Items]
Total short-term debt	3,698	5,890
Asset-backed Securities [Member]
Debt Instrument [Line Items]
Total short-term debt	1,564	786
Notes payable within one year	19,139	17,817
Notes payable after one year	$ 34,784	$ 34,051
Total short-term debt [Member]
Debt Instrument [Line Items]
Average Contractual (interest rate)	3.10%	3.00%
Average Effective (interest rate)	3.10%	3.00%
Unsecured Debt [Member]
Debt Instrument [Line Items]
Notes payable within one year	$ 13,123	$ 13,298
Notes payable after one year	$ 56,591	$ 55,687
Total long-term debt [Member]
Debt Instrument [Line Items]
Average Contractual (interest rate)	2.70%	2.50%
Average Effective (interest rate)	2.80%	2.60%
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member]
Debt Instrument [Line Items]
Fair value of debt	$ 138,374	$ 139,677

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Accumulated Other Comprehensive Income (Details) - USD ($)	3 Months Ended				9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2014	Sep. 30, 2012	Sep. 30, 2018	Sep. 30, 2017
Cumulative Translation Adjustment Summary [Roll Forward]
Beginning balance	$ (670,000,000)	$ (609,000,000)			$ (419,000,000)	$ (890,000,000)
Net gain/(loss) on Foreign Currency Transaction	(49,000,000)	204,000,000			(300,000,000)	485,000,000
Ending balance	$ (719,000,000)	$ (405,000,000)			(719,000,000)	(405,000,000)
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax [Abstract]
Net gain/(loss) on foreign currency translation, tax adjustment			$ 0	$ 0	$ 0	$ 0

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Other Income, Net (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Other Income and Expenses [Abstract]
Gains/(Losses) on derivatives	$ (60)	$ (36)	$ (182)	$ (15)
Currency revaluation gains/(losses)	36	51	80	73
Interest and investment income	49	33	140	80
Other	11	9	36	35
Total other income, net	$ 36	$ 57	$ 74	$ 173

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Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Total revenue	$ 3,081	$ 2,863	$ 9,200	$ 8,396
Income before income taxes	678	600	1,964	1,700
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases	907	989	2,898	3,090
Interest expense	989	810	2,898	2,308
Provision for credit losses	156	169	367	420
Net finance receivables and net investment in operating leases	143,614	137,528	143,614	137,528
Total assets	161,246	154,478	161,246	154,478	$ 160,443
Operating Segments [Member]
Segment Reporting Information [Line Items]
Total revenue	3,081	2,863	9,200	8,396
Income before income taxes	658	580	2,008	1,600
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases	907	989	2,898	3,090
Interest expense	991	810	2,902	2,308
Provision for credit losses	156	169	367	420
Net finance receivables and net investment in operating leases	152,140	145,107	152,140	145,107
Total assets	161,246	154,478	161,246	154,478
Operating Segments [Member] | Americas [Member]
Segment Reporting Information [Line Items]
Total revenue	2,677	2,493	7,918	7,359
Income before income taxes	556	485	1,619	1,308
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases	895	975	2,878	3,055
Interest expense	848	669	2,430	1,930
Provision for credit losses	145	159	340	389
Net finance receivables and net investment in operating leases	120,425	115,331	120,425	115,331
Total assets	128,103	120,398	128,103	120,398
Operating Segments [Member] | Europe [Member]
Segment Reporting Information [Line Items]
Total revenue	284	247	878	709
Income before income taxes	89	72	303	223
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases	12	14	20	35
Interest expense	68	65	216	187
Provision for credit losses	1	7	14	21
Net finance receivables and net investment in operating leases	25,995	23,855	25,995	23,855
Total assets	27,120	27,323	27,120	27,323
Operating Segments [Member] | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Total revenue	120	123	404	328
Income before income taxes	13	23	86	69
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases	0	0	0	0
Interest expense	75	76	256	191
Provision for credit losses	10	3	13	10
Net finance receivables and net investment in operating leases	5,720	5,921	5,720	5,921
Total assets	6,023	6,757	6,023	6,757
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Total revenue	0	0	0	0
Income before income taxes	20	20	(44)	100
Other disclosures [Abstract]
Depreciation on vehicles subject to operating leases	0	0	0	0
Interest expense	(2)	0	(4)	0
Provision for credit losses	0	0	0	0
Net finance receivables and net investment in operating leases	(8,526)	(7,579)	(8,526)	(7,579)
Total assets	$ 0	$ 0	$ 0	$ 0

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Commitments and Contingencies (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Guarantor Obligations [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 300
Guarantor Obligations, Current Carrying Value	0	$ 0
Financial Guarantee [Member]
Guarantor Obligations [Line Items]
Maximum potential payments	55	52
Counter Guarantee [Member] | Ford Motor Company [Member]
Guarantor Obligations [Line Items]
Counter guarantee	$ 44	$ 44