Derivative Financial Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2020

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, reported in income for the years ended December 31 were as follows (in millions):

	2018		2019		2020
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments	$	10	$	(16)	$	290
Fair value changes on hedging instruments	(155)		706		986
Fair value changes on hedged debt	153		(694)		(985)
Cross-currency interest rate swap contracts
Net interest settlements and accruals on hedging instruments	—		—		(2)
Fair value changes on hedging instruments	—		—		38
Fair value changes on hedged debt	—		—		(37)
Derivatives not designated as hedging instruments
Interest rate contracts	(84)		(13)		(100)
Foreign currency exchange contracts (a)	163		52		(82)
Cross-currency interest rate swap contracts	(244)		(229)		486
Total	$	(157)	$	(194)	$	594

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(a)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 at December 31 were as follows (in millions):

	2019						2020
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	26,577	$	702	$	19	$	26,924	$	1,331	$	4
Cross-currency interest rate swaps	—		—		—		885		46		—
Derivatives not designated as hedging instruments
Interest rate contracts	68,914		275		191		70,318		663		439
Foreign currency exchange contracts	5,540		17		79		4,378		4		80
Cross-currency interest rate swap contracts	5,849		134		67		6,849		557		1
Total derivative financial instruments, gross (a) (b)	$	106,880	$	1,128	$	356	$	109,354	$	2,601	$	524

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(a)At December 31, 2019 and 2020, we held collateral of $18 million and $9 million, and we posted collateral of $78 million and $96 million, respectively.

(b)At December 31, 2019 and 2020, the fair value of assets and liabilities available for counterparty netting was $169 million and $204 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.