Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2011

Fair Value Disclosures [Abstract]

Input Hierarchy of Items Measured at Fair Value on a Recurring Basis [Table Text Block]

The following tables summarize the fair values by input hierarchy of items measured at fair value on a recurring basis on our balance sheet (in millions):

	June 30, 2011
	Level 1		Level 2		Level 3		Total
Automotive Sector
Assets
Cash equivalents – financial instruments (a)
U.S. government	$	3	$	—	$	—	$	3
U.S. government-sponsored enterprises	—		1,885		—		1,885
Government – non-U.S.	—		728		—		728
Foreign government agencies (b)	—		1,255		—		1,255
Corporate debt	—		—		—		—
Total cash equivalents – financial instruments	3		3,868		—		3,871
Marketable securities (c)
U.S. government	1,412		—		—		1,412
U.S. government-sponsored enterprises	—		3,464		—		3,464
Foreign government agencies (b)	—		4,842		—		4,842
Corporate debt	—		933		5		938
Mortgage-backed and other asset-backed	—		43		1		44
Equity	184		—		—		184
Government – non-U.S.	—		1,026		—		1,026
Other liquid investments (d)	—		28		—		28
Total marketable securities	1,596		10,336		6		11,938
Derivative financial instruments
Foreign exchange contracts	—		307		—		307
Commodity contracts	—		22		2		24
Other – warrants	—		—		6		6
Total derivative financial instruments (e)	—		329		8		337
Total assets at fair value	$	1,599	$	14,533	$	14	$	16,146
Liabilities
Derivative financial instruments
Foreign exchange contracts	$	—	$	147	$	3	$	150
Commodity contracts	—		25		21		46
Total derivative financial instruments (e)	—		172		24		196
Total liabilities at fair value	$	—	$	172	$	24	$	196

 __________

(a) "Cash equivalents - financial instruments" in this table excludes time deposits, certificates of deposit, money market accounts, and other cash equivalents reported at par value totaling $4.2 billion as of June 30, 2011 for the Automotive sector. In addition to these cash equivalents, our Automotive sector also had cash on hand totaling $1.7 billion as of June 30, 2011.

(b) Includes notes issued by foreign government agencies that include implicit and explicit guarantees, as well as notes issued by supranational institutions.

(c) Excludes an investment in Ford Credit debt securities held by the Automotive sector with a carrying value of $201 million and an estimated fair value of $200 million as of June 30, 2011; see Note 11 for additional detail.

(d) "Other liquid investments" in this table includes certificates of deposit and time deposits.

(e) See Note 16 for additional information regarding derivative financial instruments.

NOTE 3.  FAIR VALUE MEASUREMENTS (Continued)

	June 30, 2011
	Level 1		Level 2		Level 3		Total
Financial Services Sector
Assets
Cash equivalents – financial instruments (a)
U.S. government	$	—	$	—	$	—	$	—
U.S. government-sponsored enterprises	—		175		—		175
Government – non-U.S.	—		420		—		420
Foreign government agencies (b)	—		—		—		—
Corporate debt	—		—		—		—
Mortgage-backed and other asset-backed	—		6		—		6
Total cash equivalents – financial instruments	—		601		—		601
Marketable securities
U.S. government	827		—		—		827
U.S. government-sponsored enterprises	—		1,056		—		1,056
Foreign government agencies (b)	—		652		—		652
Corporate debt	—		1,197		5		1,202
Mortgage-backed and other asset-backed	—		165		—		165
Government – non-U.S.	—		190		—		190
Other liquid investments (c)	—		19		—		19
Total marketable securities	827		3,279		5		4,111
Derivative financial instruments
Interest rate contracts	—		729		191		920
Foreign exchange contracts	—		64		—		64
Cross currency interest rate swap contracts	—		—		—		—
Other (d)	—		—		75		75
Total derivative financial instruments (e)	—		793		266		1,059
Total assets at fair value	$	827	$	4,673	$	271	$	5,771
Liabilities
Derivative financial instruments
Interest rate contracts	$	—	$	76	$	129	$	205
Foreign exchange contracts	—		66		—		66
Cross-currency interest rate swap contracts	—		—		42		42
Total derivative financial instruments (e)	—		142		171		313
Total liabilities at fair value	$	—	$	142	$	171	$	313

 __________

(a) "Cash equivalents - financial instruments" in this table excludes time deposits, certificates of deposit, money market accounts, and other cash equivalents reported at par value on our balance sheet totaling $4.6 billion as of June 30, 2011 for the Financial Services sector. In addition to these cash equivalents, our Financial Services sector also had cash on hand totaling $2.5 billion as of June 30, 2011.

(b) Includes notes issued by foreign government agencies that include implicit and explicit guarantees, as well as notes issues by supranational institutions.

(c) "Other liquid investments" in this table includes certificates of deposit and time deposits.

(d) "Other" in this table represents derivative features included in the FUEL notes.

(e) See Note 16 for additional information regarding derivative financial instruments.

NOTE 3.  FAIR VALUE MEASUREMENTS (Continued)

	December 31, 2010
	Level 1		Level 2		Level 3		Total
Automotive Sector
Assets
Cash equivalents – financial instruments (a)
U.S. government	$	—	$	—	$	—	$	—
U.S. government-sponsored enterprises	—		224		—		224
Government – non-U.S.	—		133		—		133
Foreign government agencies (b)	—		1,619		—		1,619
Corporate debt	—		199		—		199
Total cash equivalents – financial instruments	—		2,175		—		2,175
Marketable securities (c)
U.S. government	2,718		—		—		2,718
U.S. government-sponsored enterprises	—		4,809		—		4,809
Foreign government agencies (b)	—		3,215		1		3,216
Corporate debt	—		517		—		517
Mortgage-backed and other asset-backed	—		20		—		20
Equity	203		—		—		203
Government – non-U.S.	—		818		1		819
Other liquid investments (d)	—		1,704		—		1,704
Total marketable securities	2,921		11,083		2		14,006
Derivative financial instruments
Foreign exchange contracts	—		58		—		58
Commodity contracts	—		36		33		69
Other – warrants	—		—		5		5
Total derivative financial instruments (e)	—		94		38		132
Total assets at fair value	$	2,921	$	13,352	$	40	$	16,313
Liabilities
Derivative financial instruments
Foreign exchange contracts	$	—	$	93	$	—	$	93
Commodity contracts	—		6		—		6
Total derivative financial instruments (e)	—		99		—		99
Total liabilities at fair value	$	—	$	99	$	—	$	99

 __________

(a) "Cash equivalents - financial instruments" in this table excludes time deposits, certificates of deposit, money market accounts, and other cash equivalents reported at par value totaling $2.2 billion as of December 31, 2010 for the Automotive sector. In addition to these cash equivalents, our Automotive sector also had cash on hand totaling $1.9 billion as of December 31, 2010.

(b) Includes notes issued by foreign government agencies that include implicit and explicit guarantees, as well as notes issued by supranational institutions.

(c) Excludes an investment in Ford Credit debt securities held by the Automotive sector with a carrying value of $201 million and an estimated fair value of $203 million as of December 31, 2010; see Note 11 for additional detail.

(d) "Other liquid investments" in this table includes certificates of deposit and time deposits.

(e) See Note 16 for additional information regarding derivative financial instruments.

NOTE 3.  FAIR VALUE MEASUREMENTS (Continued)

	December 31, 2010
	Level 1		Level 2		Level 3		Total
Financial Services Sector
Assets
Cash equivalents – financial instruments (a)
U.S. government	$	9	$	—	$	—	$	9
U.S. government-sponsored enterprises	—		150		—		150
Government – non-U.S.	—		323		—		323
Foreign government agencies (b)	—		100		—		100
Corporate debt	—		200		—		200
Total cash equivalents – financial instruments	9		773		—		782
Marketable securities
U.S. government	1,671		—		—		1,671
U.S. government-sponsored enterprises	—		2,905		—		2,905
Foreign government agencies (b)	—		821		1		822
Corporate debt	—		732		—		732
Mortgage-backed and other asset-backed	—		177		—		177
Government – non-U.S.	—		364		—		364
Other liquid investments (c)	—		88		—		88
Total marketable securities	1,671		5,087		1		6,759
Derivative financial instruments
Interest rate contracts	—		1,035		177		1,212
Foreign exchange contracts	—		24		—		24
Cross currency interest rate swap contracts	—		25		—		25
Total derivative financial instruments (d)	—		1,084		177		1,261
Total assets at fair value	$	1,680	$	6,944	$	178	$	8,802
Liabilities
Derivative financial instruments
Interest rate contracts	$	—	$	134	$	195	$	329
Foreign exchange contracts	—		73		—		73
Cross-currency interest rate swap contracts	—		118		71		189
Total derivative financial instruments (d)	—		325		266		591
Total liabilities at fair value	$	—	$	325	$	266	$	591

 __________

(a) "Cash equivalents - financial instruments" in this table excludes time deposits, certificates of deposit, money market accounts, and other cash equivalents reported at par value on our balance sheet totaling $5.7 billion as of December 31, 2010 for the Financial Services sector. In addition to these cash equivalents, our Financial Services sector also had cash on hand totaling $2.0 billion as of December 31, 2010.

(b) Includes notes issued by foreign government agencies that include implicit and explicit guarantees, as well as notes issues by supranational institutions.

(c) "Other liquid investments" in this table includes certificates of deposit and time deposits.

(d) See Note 16 for additional information regarding derivative financial instruments.

Reconciliation of Changes in Level 3 Balances measured at fair value on a recurring basis [Table Text Block]

The following tables summarize the changes in Level 3 items measured at fair value on a recurring basis on our balance sheet for the periods ending June 30 (in millions):

	First Half 2011
	Marketable Securities
	Foreign Government Agencies			Corporate Debt		Mortgage- Backed and Other Asset- Backed		Government Non-U.S.			Total Marketable Securities			Derivative Financial Instruments, Net			Total Level 3 Fair Value
Automotive Sector
Beginning balance	$	1		$	—	$	—	$	1		$	2		$	38		$	40
Realized/unrealized gains/(losses)
Cost of sales	—			—		—		—			—			(23		)	(23		)
Interest income and other non-operating income/(loss), net	—			—		—		(1		)	(1		)	1			—
Other comprehensive income/(loss) (a)	—			—		—		—			—			—			—
Total realized/unrealized gains/(losses)	—			—		—		(1		)	(1		)	(22		)	(23		)
Purchases, issues, sales, settlements
Purchases	—			5		1		1			7			—			7
Issues	—			—		—		—			—			—			—
Sales	—			—		—		(1		)	(1		)	—			(1		)
Settlements	—			—		—		—			—			(32		)	(32		)
Total purchases, issues, sales, settlements	—			5		1		—			6			(32		)	(26		)
Transfers into Level 3	—			—		—		—			—			—			—
Transfers out of Level 3 (b)	(1		)	—		—		—			(1		)	—			(1		)
Ending balance	$	—		$	5	$	1	$	—		$	6		$	(16	)	$	(10	)
Change in unrealized gains/ (losses) on instruments still held	$	—		$	—	$	—	$	—		$	—		$	(20	)	$	(20	)
Financial Services Sector
Beginning balance	$	1		$	—	$	—	$	—		$	1		$	(89	)	$	(88	)
Realized/unrealized gains/(losses)
Other income/(loss), net	—			—		—		—			—			(13		)	(13		)
Other comprehensive income/(loss) (a)	—			—		—		—			—			(2		)	(2		)
Interest income/(expense)	—			—		—		—			—			26			26
Total realized/unrealized gains/(losses)	—			—		—		—			—			11			11
Purchases, issues, sales, settlements
Purchases	—			5		—		—			5			—			5
Issues (c)	—			—		—		—			—			73			73
Sales	—			—		—		—			—			—			—
Settlements	—			—		—		—			—			103			103
Total purchases, issues, sales, settlements	—			5		—		—			5			176			181
Transfers into Level 3	—			—		—		—			—			—			—
Transfers out of Level 3 (b)	(1		)	—		—		—			(1		)	(3		)	(4		)
Ending balance	$	—		$	5	$	—	$	—		$	5		$	95		$	100
Change in unrealized gains/ (losses) on instruments still held	$	—		$	—	$	—	$	—		$	—		$	80		$	80

 __________

(a) "Other comprehensive income/(loss)" represents foreign currency translation on derivative asset and liability balances held by non-U.S. dollar foreign affiliates.

(b) Represents transfers due to the availability of observable data for $2 million of marketable securities as a result of increased market activity for these securities and transfers for $3 million due to shorter duration of derivative financial instruments.  Transfers in and transfers out represent the value at the end of the reporting period.

(c) Reflects $73 million in Level 3 under Derivative financial instruments, net for derivative features included in the FUEL notes.

NOTE 3.  FAIR VALUE MEASUREMENTS (Continued)

	First Half 2010
	Marketable Securities
	Foreign Government Agencies		Corporate Debt			Mortgage-Backed and Other Asset- Backed			Government Non-U.S.		Total Marketable Securities			Derivative Financial Instruments, Net			Retained Interest in  Securitized Assets			Total Level 3 Fair Value
Automotive Sector
Beginning balance	$	—	$	8		$	17		$	—	$	25		$	9		$	—		$	34
Realized/unrealized gains/(losses)
Cost of sales	—		—			—			—		—			—			—			—
Interest income and other non-operating income/(loss), net	—		—			(1		)	—		(1		)	1			—			—
Other comprehensive income/(loss) (a)	—		—			—			—		—			—			—			—
Total realized/unrealized gains/(losses)	—		—			(1		)	—		(1		)	1			—			—
Purchases, issues, sales, settlements
Purchases	—		—			—			—		—			—			—			—
Issues	—		—			—			—		—			—			—			—
Sales	—		(8		)	(15		)	—		(23		)	—			—			(23		)
Settlements	—		—			—			—		—			(5		)	—			(5		)
Total purchases, issues, sales, settlements	—		(8		)	(15		)	—		(23		)	(5		)	—			(28		)
Transfers into Level 3	—		—			—			—		—			—			—			—
Transfers out of Level 3 (b)	—		—			—			—		—			—			—			—
Ending balance	$	—	$	—		$	1		$	—	$	1		$	5		$	—		$	6
Change in unrealized gains/ (losses) on instruments still held	$	—	$	—		$	—		$	—	$	—		$	(1	)	$	—		$	(1	)
Financial Services Sector
Beginning balance	$	—	$	4		$	—		$	—	$	4		$	(155	)	$	26		$	(125	)
Realized/unrealized gains/(losses)
Other income/(loss), net	—		(4		)	—			—		(4		)	(23		)	(3		)	(30		)
Other comprehensive income/(loss) (a)	—		—			—			—		—			2			2			4
Interest income/(expense)	—		—			—			—		—			—			—			—
Total realized/unrealized gains/(losses)	—		(4		)	—			—		(4		)	(21		)	(1		)	(26		)
Purchases, issues, sales, settlements
Purchases	—		—			—			—		—			—			—			—
Issues	—		—			—			—		—			—			—			—
Sales	—		—			—			—		—			—			—			—
Settlements	—		—			—			—		—			82			(21		)	61
Total purchases, issues, sales, settlements	—		—			—			—		—			82			(21		)	61
Transfers into Level 3	—		—			—			—		—			—			—			—
Transfers out of Level 3 (b)	—		—			—			—		—			—			—			—
Ending balance	$	—	$	—		$	—		$	—	$	—		$	(94	)	$	4		$	(90	)
Change in unrealized gains/(losses) on instruments still held	$	—	$	—		$	—		$	—	$	—		$	59		$	—		$	59

 __________

(a) "Other comprehensive income/(loss)" represents  foreign currency translation on derivative asset and liability balances held by non-U.S. dollar foreign affiliates.

(b) Transfers in and transfers out represent the value at the end of the reporting period.

Fair values by input hierarchy of items measured at fair value on a non recurring basis [Table Text Block]

The following tables summarize the items measured at fair value subsequent to initial recognition on a nonrecurring basis by input hierarchy for the quarter and year ended June 30, 2011 and December 31, 2010, respectively, that were still held on our balance sheet at those dates (in millions):

	June 30, 2011 (a)								December 31, 2010 (a)
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Financial Services Sector
North America
Retail receivables (b)	$	—	$	—	$	76	$	76	$	—	$	—	$	82	$	82
Dealer loans, net (b)	—		3		10		13		—		—		22		22
Total North America	—		3		86		89		—		—		104		104
International
Retail receivables (b)	—		—		46		46		—		—		45		45
Total International	—		—		46		46		—		—		45		45
Total Financial Services sector	$	—	$	3	$	132	$	135	$	—	$	—	$	149	$	149

 __________

(a) There were no Automotive sector nonrecurring fair value measurements subsequent to initial recognition recorded.

(b) Finance receivables, including retail accounts that have been charged off and individual dealer loans where foreclosure is probable, are measured based on the fair value of the collateral adjusted for estimated costs to sell.  The collateral for retail receivables is the vehicle being financed and for dealer loans is real estate or other property.  See Note 6 for additional information related to the development of Ford Credit's allowance for credit losses.

Schedule of nonrecurring fair value changes [Table Text Block]

The following table summarizes the total change in value of items for which a nonrecurring fair value adjustment has been included in our consolidated statement of operations for the periods ended June 30, 2011 and 2010, related to items still held on our balance sheet at those dates (in millions):

	Total Gains / (Losses)
	Second Quarter						First Half
	2011			2010			2011			2010
Financial Services Sector
North America
Retail receivables *	$	(6	)	$	(8	)	$	(16	)	$	(19	)
Dealer loans, net *	(1		)	(1		)	(1		)	(4		)
Total North America	(7		)	(9		)	(17		)	(23		)
International
Retail receivables *	(5		)	(9		)	(10		)	(20		)
Total International	(5		)	(9		)	(10		)	(20		)
Total Financial Services sector	$	(12	)	$	(18	)	$	(27	)	$	(43	)

 __________

* Fair value changes related to retail finance receivables that have been charged off or dealer loans that have been impaired based on the fair value of the collateral adjusted for estimated costs to sell are recorded in Financial Services provision for credit and insurance losses.