Derivative Financial Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2016

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 March 31 were as follows (in millions):

	First Quarter
	2016			2015
Fair value hedges
Interest rate contracts
Net interest settlements and accruals excluded from the assessment of hedge effectiveness	$	99		$	88
Ineffectiveness (a)	17			6
Derivatives not designated as hedging instruments
Interest rate contracts	(48		)	(43		)
Foreign currency exchange contracts	33			65
Cross-currency interest rate swap contracts	195			89
Total	$	296		$	205

__________

(a) For the first quarter of 2016 and 2015, hedge ineffectiveness reflects the net change in fair value on derivatives of $610 million gain and $221 million gain, respectively, and change in value on hedged debt attributable to the change in benchmark interest rates of $593 million loss and $215 million loss, respectively.

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

The fair value of our derivative instruments and the associated notional amounts, presented gross, were as follows (in millions):

	March 31, 2016								December 31, 2015
	Notional		Fair Value of Assets			Fair Value of Liabilities			Notional		Fair Value of Assets			Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	32,843	$	1,184		$	—		$	28,964	$	670		$	16
Derivatives not designated as hedging instruments
Interest rate contracts	65,538		182			159			62,638		159			112
Foreign currency exchange contracts (a)	2,138		49			8			1,713		22			4
Cross-currency interest rate swap contracts	3,701		195			37			3,137		73			111
Total derivative financial instruments, gross (b)	$	104,220	1,610			204			$	96,452	924			243
Counterparty netting and collateral (c)			(155		)	(155		)			(167		)	(167		)
Total derivative financial instruments, net			$	1,455		$	49				$	757		$	76

__________

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

(b) All derivatives are categorized within Level 2 of the fair value hierarchy.

(c) As of March 31, 2016 and December 31, 2015, we did not receive or pledge any cash collateral.