Derivative Financial Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2017

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):

	2015			2016			2017
Fair value hedges
Interest rate contracts
Net interest settlements and accruals excluded from the assessment of hedge effectiveness	$	370		$	367		$	217
Ineffectiveness (a)	3			4			(1		)
Derivatives not designated as hedging instruments
Interest rate contracts	(58		)	(9		)	58
Foreign currency exchange contracts (b)	66			179			(150		)
Cross-currency interest rate swap contracts	100			398			103
Total	$	481		$	939		$	227

__________

(a) For 2015, 2016, and2017, hedge ineffectiveness reflects the net change in fair value on derivatives of $72 million gain, $120 million loss, and $268 million loss, respectively, and change in value on hedged debt attributable to the change in benchmark interest rates of $69 million loss, $124 million gain, and $267 million gain, respectively.

(b) Reflects forward contracts between Ford Credit and an affiliated company.

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):

	2016						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	$	28,008	$	248	$	135
Derivatives not designated as hedging instruments
Interest rate contracts	61,689		156		74		60,504		276		137
Foreign currency exchange contracts	1,791		24		4		2,406		3		10
Cross-currency interest rate swap contracts	3,201		242		8		4,006		408		28
Total derivative financial instruments, gross (a) (b)	$	99,856	$	909	$	166	$	94,924	$	935	$	310

__________

(a) At December 31, 2016 and 2017, we held collateral of $15 million, and we posted collateral of $12 million and $38 million, respectively.

(b) At December 31, 2016 and 2017, the fair value of assets and liabilities available for counterparty netting was $113 million and $162 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.