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Transactions with Affiliated Companies (Tables)
 12 Months Ended
Dec. 31, 2013
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions [Table Text Block]
The income statement effects of transactions with Ford and affiliated companies for the years ended December 31 were as follows (reductions to Income before income taxes are presented as negative amounts) (in millions):
 
2013
 
2012
 
2011
Net financing margin
 
 
 
 
 
Interest supplements and residual support costs earned (a)
$
2,479

 
$
2,471

 
$
2,952

Operating lease revenue on employee leased vehicles
228

 
217

 
211

Interest expense on debt
(22
)
 
(25
)
 
(36
)
Interest income on notes receivables
11

 
22

 
27

Interest income on finance receivables (b)
6

 
30

 
36

Interest (expense)/income under tax sharing agreement (c)
5

 
(7
)
 
(9
)
Other revenue
 
 
 
 
 
Earned insurance premiums
$
94

 
$
92

 
$
99

Earned insurance premiums ceded
(30
)
 
(38
)
 
(59
)
Gains/(Losses) from derivative transactions (d)
10

 
(56
)
 
2

Other income
10

 
11

 
12

Expenses
 
 
 
 
 
Advice and services expense (e)
$
(102
)
 
$
(92
)
 
$
(107
)
Insurance loss and loss adjustment expenses
(42
)
 
(40
)
 
(47
)
Insurance loss and loss adjustment expenses recovered
16

 
19

 
31

Retirement benefits and share-based compensation (f)
(37
)
 
(39
)
 
(12
)
__________
(a)
Amounts related to finance receivables are included in revenue. Amounts related to Net investment in operating leases are included in Depreciation on vehicles subject to operating leases. The amount of interest supplements and residual support cash received totaled $2.4 billion, $1.9 billion, and $2.0 billion for the years ended December 31, 2013, 2012, and 2011, respectively.
(b)
Certain entities are reported as consolidated subsidiaries of Ford; revenue from providing financing to these entities is included in Total financing revenue.
(c)
Under our intercompany tax sharing agreement with Ford, we earn interest on net tax assets and pay interest on certain tax liabilities.
(d)
Currency revaluation gains/(losses) primarily related to foreign denominated debt were mostly offset by gains/(losses) on derivatives. See Notes 7 and 13 for additional information.
(e)
We receive technical and administrative advice and services from Ford and its affiliates, occupy office space furnished by Ford and its affiliates, utilize data processing facilities maintained by Ford, and sell returned lease and repossessed vehicles through Ford auction lots. These costs are charged to Operating expenses.
(f)
In the U.S., we are a participating employer in certain retirement, postretirement health care and life insurance, and share-based compensation plans that are sponsored by Ford. Ford allocates costs to us based on the total number of participating or eligible employees at Ford Credit. See Note 14 for additional information.
NOTE 17. TRANSACTIONS WITH AFFILIATED COMPANIES (Continued)

The impact of the interest supplement and other support cost reclassification and change in accounting method as described in Notes 1 and 3 is summarized below for the years ended December 31 (in millions):

 
2012
 
2011
Income statement
 
 
 
Increase/(decrease) in financing revenue
 
 
 
Operating leases
$
73

 
$
58

Retail financing
1,091

 
1,442

Dealer financing
1,423

 
1,558

Other
41

 
35

Wholesale (a)
(920
)
 
(952
)
Interest supplements and other support costs earned from affiliated companies (b)
(2,401
)
 
(2,800
)
Total increase/(decrease) in financing revenue (c)
(693
)
 
(659
)
 
 
 
 
Decrease in depreciation on vehicles subject to operating leases
693

 
659

Increase/(decrease) in net financing margin
$
—

 
$
—

Statement of cash flows
 
 
 
Net change in cash provided by/(used in) operating activities
$
(1,914
)
 
$
(1,988
)
Net change in cash provided by/(used in) investing activities
1,914

 
1,988

__________
(a)
Financing revenue, Wholesale is now included in Financing revenue, Dealer financing.
(b)
Amount has been allocated to individual revenue line items.
(c)
Represents the reclassification of operating lease interest supplements and certain lease acquisition costs from Financing revenue, Operating leases to Depreciation on vehicles subject to operating leases.
NOTE 17. TRANSACTIONS WITH AFFILIATED COMPANIES (Continued)

Balance Sheet

The balance sheet effects of transactions with Ford and affiliated companies were as follows (in millions):
 
December 31, 2013
 
December 31, 2012
Assets
 
 
 
Finance receivables, Net
 
 
 
Dealer financing (a)
$
2,745

 
$
4,207

Other (b)
1,418

 
1,388

Unearned interest supplements on finance receivables
(1,502
)
 
(1,486
)
Net investment in operating leases
 
 
 
Employee and company vehicles (c)
589

 
543

Unearned interest supplements and residual support on leased vehicles (d)
(1,578
)
 
(1,147
)
Notes and accounts receivables
1,077

 
1,173

Derivative financial instruments
1

 
5

Other assets
 
 
 
Vehicles held for resale
5

 
5

Investment in non-consolidated affiliates
133

 
140

Liabilities
 
 
 
Accounts payable
$
(211
)
 
$
(234
)
Tax related payables (e)
(941
)
 
(549
)
Debt
(338
)
 
(372
)
Derivative financial instruments
(22
)
 
(27
)
__________
(a)
Represents the purchase of receivables generated by divisions and affiliates of Ford in connection with the delivery of vehicle inventories from Ford and wholesale and dealer loan receivables with entities that are reported as consolidated subsidiaries of Ford. Consolidated subsidiaries include dealerships that are partially owned by Ford as consolidated VIEs and also certain overseas affiliates.
(b)
Represents purchased receivables from Ford and its affiliates, primarily related to the sale of parts and accessories to dealers, receivables from Ford related loans, and certain used vehicles from daily rental fleet companies where we are serving as Ford’s agent. At December 31, 2013, $851 million of these assets were subject to limited guarantees by Ford. In addition, at December 31, 2013, Ford guaranteed $180 million of our finance receivables related to dealers.
(c)
We have entered into a sale-leaseback agreement with Ford primarily for vehicles that Ford leases to employees of Ford and its subsidiaries. The investment in these vehicles is included in Net investment in operating leases and is guaranteed by Ford.
(d)
Prior to December 31, 2013, we recognized the upfront payment of interest supplements and residual support as part of Other liabilities and deferred income. We now recognize these payments as part of the acquisition cost reported in Net investment in operating leases. Refer to Note 3 for additional information.
(e)
Refer to Notes 8 and 10 for additional information.