FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS NOTE 1. PRESENTATION Principles of Consolidation Global Pandemic Separation and Restructuring Actions 68 We executed separation and restructuring actions associated with our plans to transform our business. The impact of these actions was a loss of $56 million and $55 million, primarily separation costs, for the years ended December 31, 2019 and 2020, respectively. Related to these restructuring actions, 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 2020 were $1,698 million and $36 million respectively, and  Liabilities held-for-sale  presented at fair value at December 31, 2019 were $45 million. There were no  Liabilities held-for-sale  at December 31, 2020. In the fourth quarter of 2019, we committed to a plan to sell our operations in Forso Nordic AB (“Forso”), a wholly owned subsidiary, which provided retail and dealer financing in Denmark, Finland, Norway, and Sweden. Our  Income before income taxes  at December 31, 2019 included a loss of $20 million due to a fair value impairment as a result of the pending sale. In the first quarter of 2020, we completed the sale of Forso recognizing a pre-tax loss of $4 million in  Other income, net  and cash proceeds of $1,340 million. Forso related  Assets held-for-sale  and  Liabilities held-for-sale  presented at fair value 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 sheets). The nonrecurring fair value measurement was categorized within Level 3 of the fair value hierarchy. We determined fair value using a market approach, estimated based on our expected proceeds to be received which we concluded was most representative of the value of the assets. Our results include adjustments due to the impact of COVID-19, the most significant of which was a charge to the provision for credit losses. The majority of this adjustment was recorded in the first quarter of 2020. See Note 4 for additional information. On March 11, 2020, the World Health Organization characterized the outbreak of COVID-19 as a global pandemic and recommended containment and mitigation measures. As a result, extraordinary actions were 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 included 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, by late March 2020, nearly all of our employees, other than in China, began working remotely in order to reduce the spread of COVID-19. Our remote work arrangements have been designed to allow for continued operation of business functions, including originating and servicing customer contracts, financial reporting, and internal control. The accompanying consolidated financial statements include Ford Motor Credit Company LLC, its controlled domestic and foreign subsidiaries and joint ventures, 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”). Affiliates that we do not consolidate, but for which we have significant influence over operating and financial policies, are accounted for using the equity method. We are an indirect, wholly owned subsidiary of Ford Motor Company (“Ford”). We prepare our financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”). We reclassify certain prior period amounts in our consolidated financial statements to conform to current year presentation.