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Derivative Financial Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2017
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
 
2017
 
2016
 
2017
Fair value hedges
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
Net interest settlements and accruals excluded from the assessment of hedge effectiveness
$
98

 
$
62

 
$
197

 
$
132

Ineffectiveness (a)
5

 
4

 
22

 
—

Derivatives not designated as hedging instruments


 


 
 
 
 
Interest rate contracts
(43
)
 
30

 
(91
)
 
37

Foreign currency exchange contracts
59

 
(61
)
 
92

 
(90
)
Cross-currency interest rate swap contracts
140

 
16

 
335

 
74

Total
$
259

 
$
51

 
$
555

 
$
153

__________
(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 2017, hedge ineffectiveness reflects the net change in fair value on derivatives of $34 million gain and $55 million loss, respectively, and change in value on hedged debt attributable to the change in benchmark interest rates of $30 million loss and $55 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):
 
December 31, 2016
 
June 30, 2017
 
Notional
 
Fair Value of Assets
 
Fair Value of Liabilities
 
Notional
 
Fair Value of Assets
 
Fair Value of Liabilities
Fair value hedges
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
$
33,175

 
$
487

 
$
80

 
$
34,958

 
$
429

 
$
83

Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
61,689

 
156

 
74

 
53,968

 
180

 
55

Foreign currency exchange contracts (a)
1,791

 
24

 
4

 
3,896

 
32

 
72

Cross-currency interest rate swap contracts
3,201

 
242

 
8

 
3,918

 
338

 
6

Total derivative financial instruments, gross (b) (c)
$
99,856

 
$
909

 
$
166

 
$
96,740

 
$
979

 
$
216

__________
(a)
Includes forward contracts between Ford Credit and an affiliated company.
(b)
At December 31, 2016 and June 30, 2017, we held collateral of $15 million and $10 million, respectively, and we posted collateral of $12 million and $16 million, respectively.
(c)
At December 31, 2016 and June 30, 2017, the fair value of assets and liabilities available for counterparty netting was $113 million and $138 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.