Derivative Financial Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2013

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
	2013			2012			2013			2012
Fair value hedges
Interest rate contracts
Net interest settlements and accruals excluded from the assessment of hedge effectiveness	$	63		$	44		$	186		$	126
Ineffectiveness (a)	(3		)	6			(33		)	8
Total	$	60		$	50		$	153		$	134
Derivatives not designated as hedging instruments
Interest rate contracts	$	(18	)	$	(13	)	$	(20	)	$	(27	)
Foreign currency exchange contracts (b)	(55		)	(10		)	28			(67		)
Cross-currency interest rate swap contracts (b)	(131		)	(61		)	(37		)	(109		)
Other (c)	—			—			—			(81		)
Total	$	(204	)	$	(84	)	$	(29	)	$	(284	)

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(a) For the third quarter of 2013 and 2012, hedge ineffectiveness reflects change in fair value on derivatives of $67 million gain and $118 million gain, respectively, and change in value on hedged debt attributable to the change in benchmark interest rate of $70 million loss and $112 million loss, respectively. For the first nine months of 2013 and 2012, hedge ineffectiveness reflects change in fair value on derivatives of $501 million loss and $276 million gain, respectively, and change in value on hedged debt attributable to the change in benchmark interest rate of $468 million gain and $268 million loss, respectively.

(b) Gains/(Losses) related to foreign currency derivatives were mostly 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, 2013						December 31, 2012
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	19,334	$	467	$	172	$	16,754	$	787	$	8
Derivatives not designated as hedging instruments
Interest rate contracts	67,768		386		147		68,622		460		248
Foreign currency exchange contracts (a)	2,942		12		65		1,987		9		27
Cross-currency interest rate swap contracts	3,252		—		171		3,006		—		117
Total derivatives not designated as hedging instruments	73,962		398		383		73,615		469		392
Total derivative financial instruments	$	93,296	$	865	$	555	$	90,369	$	1,256	$	400

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

OffsettingDerivativeAssetsandLiabilitiesTableText Block [Line Items]

Offsetting Derivative Assets and Liabilities [Table Text Block]

The gross and net amounts of derivative assets and liabilities were as follows (in millions):

	September 30, 2013						December 31, 2012
	Fair Value of Assets			Fair Value of Liabilities			Fair Value of Assets			Fair Value of Liabilities
Gross derivative amounts recognized in the balance sheet	$	865		$	555		$	1,256		$	400
Gross derivative amounts not offset in the balance sheet that are eligible for offsetting	(353		)	(353		)	(225		)	(225		)
Net amount	$	512		$	202		$	1,031		$	175