Derivative Financial Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

The gains/(losses), by hedge designation, recorded in income for the years ended December 31 were as follows (in millions):

	2014			2015			2016
Fair value hedges
Interest rate contracts
Net interest settlements and accruals excluded from the assessment of hedge effectiveness	$	304		$	370		$	367
Ineffectiveness (a)	20			3			4
Derivatives not designated as hedging instruments
Interest rate contracts	(41		)	(58		)	(9		)
Foreign currency exchange contracts (b)	68			66			179
Cross-currency interest rate swap contracts	161			100			398
Total	$	512		$	481		$	939

__________

(a) For 2014, 2015, and2016, hedge ineffectiveness reflects the net change in fair value on derivatives of $407 million gain, $72 million gain, and $120 million loss, respectively, and change in value on hedged debt attributable to the change in benchmark interest rates of $387 million loss, $69 million loss, and $124 million gain, respectively.

(b) The gains related to forward contracts between Ford Credit and an affiliated company were $68 million, $66 million, and $210 million for the years ended December 31, 2014, 2015, and 2016, respectively.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The fair value of our derivative instruments and the associated notional amounts, presented gross, at December 31 were as follows (in millions):

	2015						2016
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	28,964	$	670	$	16	$	33,175	$	487	$	80
Derivatives not designated as hedging instruments
Interest rate contracts	62,638		159		112		61,689		156		74
Foreign currency exchange contracts (a)	1,713		22		4		1,791		24		4
Cross-currency interest rate swap contracts	3,137		73		111		3,201		242		8
Total derivative financial instruments, gross (b) (c)	$	96,452	924		243		$	99,856	909		166

__________

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

(b) As of December 31, 2015 and 2016, the net obligation to return cash collateral was $0 and $3 million, respectively.

(c) At December 31, 2015 and 2016, the fair value of derivative assets and liabilities available for counterparty netting was $167 million and $113 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.