Derivative Financial Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2021

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):

	2019		2020		2021
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments	$	(16)	$	290	$	393
Fair value changes on hedging instruments	706		986		(1,001)
Fair value changes on hedged debt	(694)		(985)		957
Cross-currency interest rate swap contracts
Net interest settlements and accruals on hedging instruments	—		(2)		(8)
Fair value changes on hedging instruments	—		38		(93)
Fair value changes on hedged debt	—		(37)		82
Derivatives not designated as hedging instruments
Interest rate contracts	(13)		(100)		(3)
Foreign currency exchange contracts (a)	52		(82)		145
Cross-currency interest rate swap contracts	(229)		486		(507)
Total	$	(194)	$	594	$	(35)

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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):

	2020						2021
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Fair value hedges
Interest rate contracts	$	26,924	$	1,331	$	4	$	23,893	$	544	$	274
Cross-currency interest rate swaps	885		46		—		885		—		49
Derivatives not designated as hedging instruments
Interest rate contracts	70,318		663		439		50,060		338		126
Foreign currency exchange contracts	4,378		4		80		4,407		66		2
Cross-currency interest rate swap contracts	6,849		557		1		6,533		117		61
Total derivative financial instruments, gross (a) (b)	$	109,354	$	2,601	$	524	$	85,778	$	1,065	$	512

__________

(a)At December 31, 2020 and 2021, we held collateral of $9 million and $26 million, and we posted collateral of $96 million and $71 million, respectively.

(b)At December 31, 2020 and 2021, the fair value of assets and liabilities available for counterparty netting was $204 million and $415 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.