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Derivative Financial Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 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 June 30 were as follows (in millions):
 
Second Quarter
 
First Half
 
2016
 
2015
 
2016
 
2015
Fair value hedges
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
Net interest settlements and accruals excluded from the assessment of hedge effectiveness
$
98

 
$
89

 
$
197

 
$
177

Ineffectiveness (a)
5

 
(10
)
 
22

 
(4
)
Derivatives not designated as hedging instruments


 


 
 
 
 
Interest rate contracts
(43
)
 
(18
)
 
(91
)
 
(61
)
Foreign currency exchange contracts
59

 
(65
)
 
92

 
—

Cross-currency interest rate swap contracts
140

 
(77
)
 
335

 
12

Total
$
259

 
$
(81
)
 
$
555

 
$
124

__________
(a)
For the second quarter and first half of 2016, hedge ineffectiveness reflects the net change in fair value on derivatives of $273 million gain and $883 million gain, respectively, and change in value on hedged debt attributable to the change in benchmark interest rates of $268 million loss and $861 million loss, respectively. For the second quarter and first half of 2015, hedge ineffectiveness reflects the net change in fair value on derivatives of $249 million loss and $28 million loss, respectively, and change in value on hedged debt attributable to the change in benchmark interest rates of $239 million gain and $24 million gain, 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):
 
June 30, 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
$
35,581

 
$
1,572

 
$
—

 
$
28,964

 
$
670

 
$
16

Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
62,637

 
173

 
185

 
62,638

 
159

 
112

Foreign currency exchange contracts (a)
1,302

 
84

 
1

 
1,713

 
22

 
4

Cross-currency interest rate swap contracts
3,550

 
258

 
15

 
3,137

 
73

 
111

Total derivative financial instruments, gross (b) (c)
$
103,070

 
2,087

 
201

 
$
96,452

 
924

 
243

Counterparty netting
 
 
(147
)
 
(147
)
 
 
 
(167
)
 
(167
)
Total derivative financial instruments, net


 
$
1,940

 
$
54

 


 
$
757

 
$
76

__________
(a)
Includes forward contracts between Ford Credit and an affiliated company.
(b)
As of June 30, 2016 and December 31, 2015, pledged collateral was $2 million and $0, respectively.
(c)
All derivatives are categorized within Level 2 of the fair value hierarchy.