Presentation (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Mar. 31, 2020

Mar. 31, 2019

Dec. 31, 2019

Income before income taxes

$ 30

$ 801

Financing Receivable, Allowance for Credit Loss

586

33

Disposal Group, Including Discontinued Operation, Assets

36

$ 1,698

Disposal Group, Including Discontinued Operation, Other Liabilities

0

45

Disposal Group, Including Discontinued Operation, Operating Income (Loss)

4

20

Proceeds from Divestiture of Businesses

$ 1,340

$ 0

Presentation

PRESENTATION

Principles of Consolidation

The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information, and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited financial statements include all adjustments considered necessary for a fair statement of the results of operations and financial condition for interim periods for Ford Motor Credit Company LLC, its consolidated subsidiaries and consolidated VIEs in which Ford Motor Credit Company LLC is the primary beneficiary (collectively referred to herein as “Ford Credit,” “we,” “our,” or “us”). Results for interim periods should not be considered indicative of results for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2019 (“2019 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.

Global Pandemic

On March 11, 2020, the World Health Organization characterized the outbreak of COVID-19 as a global pandemic and recommended containment and mitigation measures.  Since then, extraordinary actions have been taken by international, federal, state, and local public health and governmental authorities to contain and combat the outbreak and spread of COVID-19 in regions throughout the world. These actions include travel bans, quarantines, “stay-at-home” orders, and similar mandates for many individuals to substantially restrict daily activities and for many businesses to curtail or cease normal operations.

Consistent with the actions taken by governmental authorities, as of late March 2020, nearly all of our employees, other than China, are working remotely in order to reduce the spread of COVID-19.

The full impact of the COVID-19 pandemic on our full year financial results will depend on future developments, such as the ultimate duration and scope of the outbreak, its impact on customers, dealers, and suppliers, how quickly normal economic conditions resume, Ford’s operations, customer demand for Ford’s products and the financing of new and used vehicles return to pre-COVID-19 levels, and the risk of recessionary conditions in key markets due to the effects of the pandemic. Although the ultimate impact on Ford Credit cannot be determined at this time, we expect our full year 2020 results of operations to be adversely affected.

Our first quarter 2020 results reflect about a $700 million adverse impact due to the estimated impact of COVID-19 the most significant of which is a charge to Provision for credit losses of $486 million to reflect higher estimated defaults on our retail portfolio, a charge to depreciation expense of $70 million reflecting higher expected defaults related to operating leases, and a charge to depreciation expense of $54 million reflecting lower expected auction values related to operating lease vehicles awaiting sale at auction (collateral held for resale). The remaining COVID-19 impact was primarily driven by market valuation adjustments to derivatives. Our estimates of the effect of COVID-19 on our financial statements are based on a variety of factors and are subject to many uncertainties. See Notes 4, 5, and 8 for additional information.

NOTE 1. PRESENTATION (Continued)

Restructuring Actions

Beginning in the fourth quarter of 2019, we determined that it was not probable that we would hold certain assets and liabilities for more than the following twelve months, and these assets and liabilities were reported as held-for-sale.  The total value of our Assets held-for-sale presented at fair value at December 31, 2019 and March 31, 2020 were $1,698 million and $36 million, respectively, and Liabilities held-for-sale presented at fair value at December 31, 2019 and March 31, 2020 were $45 million and $0 million, respectively.

We committed to a plan to sell our operations in Forso Nordic AB (“Forso”), a wholly owned subsidiary, which provides retail and dealer financing in Denmark, Finland, Norway, and Sweden, during the fourth quarter of 2019 at which time we recognized a loss of $20 million due to a fair value impairment. The sale of Forso was completed in the first quarter of 2020 resulting in an additional loss of $4 million and cash proceeds of $1,340 million.  Forso related Assets held-for-sale and Liabilities held-for-sale at December 31, 2019 were $1,416 million and $45 million, respectively (excluding intercompany assets of $2 million and intercompany liabilities of $1,274 million (primarily debt) which are eliminated in the consolidated balance sheet).

Forso Nordic AB [Member]

Disposal Group, Including Discontinued Operation, Intercompany Assets

2

Disposal Group, Including Discontinued Operation, Intercompany Liabilities

1,274

Disposal Group, Including Discontinued Operation, Assets

1,416

Disposal Group, Including Discontinued Operation, Other Liabilities

$ 45

Adverse impact [Member]

Income before income taxes

$ 700

Financing Receivable, Allowance for Credit Loss

486

Depreciation

70

Loss on Contract Termination for Default

$ 54