Derivative Financial Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2014

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 March 31 (in millions):

	First Quarter
	2014			2013
Fair value hedges
Interest rate contracts
Net interest settlements and accruals excluded from the assessment of hedge effectiveness	$	69		$	61
Ineffectiveness (a)	5			(6		)
Total	$	74		$	55
Derivatives not designated as hedging instruments
Interest rate contracts	$	(18	)	$	2
Foreign currency exchange contracts (b)	(5		)	75
Cross-currency interest rate swap contracts (b)	(5		)	138
Total	$	(28	)	$	215

__________

(a) For the first quarter of 2014 and 2013, hedge ineffectiveness reflects change in fair value on derivatives of $105 million gain and $91 million loss, respectively, and change in value on hedged debt attributable to the change in benchmark interest rate of $100 million loss and $85 million gain, 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.

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):

	March 31, 2014						December 31, 2013
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	18,637	$	338	$	175	$	18,778	$	360	$	179
Derivatives not designated as hedging instruments
Interest rate contracts	66,917		325		109		69,863		224		126
Foreign currency exchange contracts (a)	2,271		4		21		2,410		1		25
Cross-currency interest rate swap contracts	2,927		1		165		2,620		—		176
Total derivatives not designated as hedging instruments	72,115		330		295		74,893		225		327
Total derivative financial instruments	$	90,752	$	668	$	470	$	93,671	$	585	$	506

__________

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

Offsetting Derivative Assets and Liabilities [Table Text Block]

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

	March 31, 2014						December 31, 2013
	Fair Value of Assets			Fair Value of Liabilities			Fair Value of Assets			Fair Value of Liabilities
Gross derivative amounts recognized in the balance sheet	$	668		$	470		$	585		$	506
Gross derivative amounts not offset in the balance sheet that are eligible for offsetting	(307		)	(307		)	(296		)	(296		)
Net amount	$	361		$	163		$	289		$	210