Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

DEBT

Debt outstanding and interest rates were as follows (in millions):

					Interest Rates
	Debt				Average Contractual				Average Effective
	December 31, 2021		June 30, 2022		2021		2022		2021		2022
Short-term debt
Unsecured debt
Floating rate demand notes	$	9,400	$	9,386
Other short-term debt	4,701		3,781
Asset-backed debt (a)	709		762
Total short-term debt	14,810		13,929		1.2	%	1.8	%	1.3	%	1.8	%
Long-term debt
Unsecured debt
Notes payable within one year	13,660		10,471
Notes payable after one year	44,337		39,999
Asset-backed debt (a)
Notes payable within one year	18,049		17,884
Notes payable after one year	26,654		28,472
Unamortized (discount)/premium	29		25
Unamortized issuance costs	(212)		(210)
Fair value adjustments (b)	390		(1,109)
Total long-term debt	102,907		95,532		2.6	%	2.7	%	2.6	%	2.7	%
Total debt	$	117,717	$	109,461	2.4	%	2.6	%	2.4	%	2.6	%
Fair value of debt (c)	$	120,204	$	106,884

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(a)Asset-backed debt issued in securitizations is the obligation of the consolidated securitization entity that issued the debt and is payable only out of collections on the underlying securitized assets and related enhancements. This asset-backed debt is not the obligation of Ford Credit or our other subsidiaries.

(b)These adjustments are related to hedging activity and include discontinued hedging relationship adjustments of $257 million and $179 million at December 31, 2021 and June 30, 2022, respectively. The carrying value of hedged debt was $37.5 billion and $33.4 billion at December 31, 2021 and June 30, 2022, respectively.

(c)At December 31, 2021 and June 30, 2022, the fair value of debt includes $14.1 billion and $13.2 billion of short-term debt, respectively, carried at cost, which approximates fair value. All other debt is categorized within Level 2 of the fair value hierarchy.

2022 Debt Extinguishment

Pursuant to our June 2022 cash tender offer, we repurchased approximately $3 billion principal amount of our public unsecured debt securities for an aggregate cost of approximately $3 billion (including transaction costs and accrued and unpaid interest payments for such tendered securities). As a result of these transactions, we recorded a pre-tax gain of $16.6 million (net of unamortized discounts, premiums, fees, and fair value adjustments) in Other income/(loss), net in the second quarter of 2022.

OTHER INCOME, NET

OTHER INCOME/(LOSS)

Other income/(loss) consists of various line items that are combined on the consolidated income statements due to their respective materiality compared with other individual income and expense items.

The amounts included in Other income/(loss), net for the periods ended June 30 were as follows (in millions):

	Second Quarter				First Half
	2021		2022		2021		2022
Gains/(Losses) on derivatives	$	24	$	(383)	$	(241)	$	(506)
Currency revaluation gains/(losses)	(30)		417		153		569
Interest and investment income (a)	15		1		13		(4)
Gains/(Losses) on changes in investments in affiliates (b)	—		(36)		1		(231)
Other	4		22		12		24
Total other income/(loss), net	$	13	$	21	$	(62)	$	(148)

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(a)Includes a $20 million unrealized gain for an observable price event on a non-consolidated investment in the first quarter of 2022.

(b)Includes losses related to our restructuring in South America described in Note 10.