Derivative Financial Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

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

	Third Quarter						First Nine Months
	2012			2011			2012			2011
Fair value hedges
Interest rate contracts
Net interest settlements and accruals excluded from the assessment of hedge effectiveness	$	44		$	45		$	126		$	178
Ineffectiveness (a)	6			(6		)	8			(22		)
Total	$	50		$	39		$	134		$	156
Derivatives not designated as hedging instruments
Interest rate contracts	$	(13	)	$	(6	)	$	(27	)	$	(12	)
Foreign currency exchange contracts (b)	(10		)	46			(67		)	45
Cross-currency interest rate swap contracts (b)	(61		)	33			(109		)	2
Other (c)	—			83			(81		)	85
Total	$	(84	)	$	156		$	(284	)	$	120

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(a) For the third quarter of 2012 and 2011, hedge ineffectiveness reflects change in fair value on derivatives of $118 million gain and $372 million gain, respectively, and change in fair value on hedged debt of $112 million loss and $378 million loss, respectively. For the first nine months of 2012 and 2011, hedge ineffectiveness reflects a $276 million gain and a $418 million gain on derivatives, respectively, and a $268 million loss and a $440 million loss on hedged debt, respectively.

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

(c) Reflects gains/(losses) for derivative features included in the Ford Upgrade Exchange Linked ("FUEL") notes (see Note 12).

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

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

	September 30, 2012						December 31, 2011
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	14,431	$	820	$	5	$	7,786	$	526	$	—
Derivatives not designated as hedging instruments
Interest rate contracts	62,923		633		279		70,348		637		237
Foreign currency exchange contracts (a)	2,330		22		33		3,079		53		37
Cross-currency interest rate swap contracts	2,614		—		83		987		12		12
Other (b)	—		—		—		2,500		137		—
Total derivatives not designated as hedging instruments	67,867		655		395		76,914		839		286
Total derivative financial instruments	$	82,298	$	1,475	$	400	$	84,700	$	1,365	$	286

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

(b) Represents derivative features included in the FUEL notes. The derivative features included in the FUEL notes were extinguished as a result of the mandatory exchange of the FUEL notes to unsecured notes in the second quarter of 2012 (see Note 12).