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Derivative Financial Instruments and Hedging Activities (Tables)
 9 Months Ended
Sep. 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 September 30 were as follows (in millions):
 
Third Quarter
 
First Nine Months
 
2016
 
2017
 
2016
 
2017
Fair value hedges
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
Net interest settlements and accruals excluded from the assessment of hedge effectiveness
$
95

 
$
50

 
$
292

 
$
182

Ineffectiveness (a)
(1
)
 
—

 
21

 
—

Derivatives not designated as hedging instruments


 


 
 
 
 
Interest rate contracts
21

 
20

 
(70
)
 
57

Foreign currency exchange contracts
37

 
(61
)
 
129

 
(151
)
Cross-currency interest rate swap contracts
128

 
5

 
463

 
79

Total
$
280

 
$
14

 
$
835

 
$
167

__________
(a)
For the third quarter and first nine months of 2016, hedge ineffectiveness reflects the net change in fair value on derivatives of $228 million loss and $655 million gain, respectively, and change in value on hedged debt attributable to the change in benchmark interest rates of $227 million gain and $634 million loss, respectively. For the third quarter and first nine months of 2017, hedge ineffectiveness reflects the net change in fair value on derivatives of $40 million loss and $95 million loss, respectively, and change in value on hedged debt attributable to the change in benchmark interest rates of $40 million gain and $95 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
 
September 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

 
$
31,802

 
$
323

 
$
132

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

 
156

 
74

 
57,144

 
227

 
119

Foreign currency exchange contracts (a)
1,791

 
24

 
4

 
3,732

 
62

 
147

Cross-currency interest rate swap contracts
3,201

 
242

 
8

 
3,998

 
370

 
22

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

 
$
909

 
$
166

 
$
96,676

 
$
982

 
$
420

__________
(a)
Includes forward contracts between Ford Credit and an affiliated company.
(b)
At December 31, 2016 and September 30, 2017, we held collateral of $15 million and $11 million, respectively, and we posted collateral of $12 million and $31 million, respectively.
(c)
At December 31, 2016 and September 30, 2017, the fair value of assets and liabilities available for counterparty netting was $113 million and $226 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.