Derivative Financial Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Income Effect of Derivative Financial Instruments [Table Text Block]

The gains/(losses), by hedge designation, recorded in income for the periods ended September 30 were as follows (in millions):

	Third Quarter						First Nine Months
	2015			2014			2015			2014
Fair value hedges
Interest rate contracts
Net interest settlements and accruals excluded from the assessment of hedge effectiveness	$	94		$	79		$	271		$	220
Ineffectiveness (a)	10			(2		)	6			8
Derivatives not designated as hedging instruments
Interest rate contracts	(22		)	(10		)	(83		)	(37		)
Foreign currency exchange contracts	40			52			40			22
Cross-currency interest rate swap contracts	63			118			75			102
Total	$	185		$	237		$	309		$	315

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(a) For the third quarter and first nine months of 2015, hedge ineffectiveness reflects the net change in fair value on derivatives of $373 million gain and $345 million gain, respectively, and change in value on hedged debt attributable to the change in benchmark interest rates of $363 million loss and $339 million loss, respectively. For the third quarter and first nine months of 2014, hedge ineffectiveness reflects the net change in fair value on derivatives of $88 million loss and $179 million gain, respectively, and change in value on hedged debt attributable to the change in benchmark interest rates of $86 million gain and $171 million loss, respectively.

Balance Sheet Effect of Derivative Financial Instruments [Table Text Block]

The notional amount and estimated fair value of our derivative financial instruments were as follows (in millions):

	September 30, 2015								December 31, 2014
	Notional		Fair Value of Assets			Fair Value of Liabilities			Notional		Fair Value of Assets			Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	26,323	$	848		$	4		$	23,203	$	602		$	38
Derivatives not designated as hedging instruments
Interest rate contracts	56,173		216			174			56,558		168			89
Foreign currency exchange contracts (a)	1,189		7			1			1,527		18			1
Cross-currency interest rate swap contracts	2,615		97			101			2,425		71			39
Total derivative financial instruments, gross	$	86,300	1,168			280			$	83,713	859			167
Counterparty netting and collateral (b)			(190		)	(190		)			(136		)	(136		)
Total derivative financial instruments, net			$	978		$	90				$	723		$	31

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

(b) At September 30, 2015 and December 31, 2014, we did not receive or pledge any cash collateral.