Derivative Financial Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2018

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 periods ended March 31 were as follows (in millions):

	First Quarter
	2017			2018
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments	$	70		$	26
Fair value changes on hedging instruments (a)	(89		)	(339		)
Fair value changes on hedged debt (a)	85			329
Derivatives not designated as hedging instruments
Interest rate contracts	7			(17		)
Foreign currency exchange contracts (b)	(29		)	(12		)
Cross-currency interest rate swap contracts	58			(58		)
Total	$	102		$	(71	)

__________

(a) For the first quarter of2017, the fair value changes on hedging instruments and on hedged debt were reported in Other income, net;effective first quarter 2018, these amounts were reported in Interest expense.

(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, were as follows (in millions):

	December 31, 2017						March 31, 2018
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	28,008	$	248	$	135	$	30,250	$	139	$	516
Derivatives not designated as hedging instruments
Interest rate contracts	60,504		276		137		60,453		282		184
Foreign currency exchange contracts	2,406		3		10		2,885		28		34
Cross-currency interest rate swap contracts	4,006		408		28		5,712		305		60
Total derivative financial instruments, gross (a) (b)	$	94,924	$	935	$	310	$	99,300	$	754	$	794

__________

(a) At December 31, 2017 and March 31, 2018, we held collateral of $15 million and $22 million, respectively, and we posted collateral of $38 million and $55 million, respectively.

(b) At December 31, 2017 and March 31, 2018, the fair value of assets and liabilities available for counterparty netting was $162 million and $231 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.

Fair Value, by Balance Sheet Grouping [Table Text Block]

The carrying value of and fair value adjustments to our hedged debt were as follows (in millions):

	December 31, 2017					March 31, 2018
	Carrying Value		Fair Value Adjustments (a)			Carrying Value		Fair Value Adjustments (a)
Debt	$	38,976	$	(21	)	$	39,733	$	(360	)

__________

(a) At December 31, 2017 and March 31, 2018, the balance includes unfavorable adjustments of $77 million and $66 million, respectively, related to discontinued hedging relationships.