Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Input Hierarchy of Items Measured at Fair Value on a Recurring Basis [Table Text Block]

The following tables categorize the fair values of items measured at fair value on a recurring basis on our balance sheet (in millions):



	June 30, 2013								December 31, 2012
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Automotive Sector
Assets
Cash equivalents – financial instruments
U.S. government	$	403	$	—	$	—	$	403	$	—	$	—	$	—	$	—
U.S. government-sponsored enterprises	—		350		—		350		—		718		—		718
Non-U.S. government	—		—		—		—		—		139		—		139
Non-U.S. government agencies (a)	—		191		—		191		—		365		—		365
Corporate debt	—		—		—		—		—		—		—		—
Total cash equivalents – financial instruments (b)	403		541		—		944		—		1,222		—		1,222
Marketable securities
U.S. government	4,372		—		—		4,372		4,493		—		—		4,493
U.S. government-sponsored enterprises	—		6,189		—		6,189		—		5,459		—		5,459
Non-U.S. government agencies (a)	—		5,955		—		5,955		—		4,794		—		4,794
Corporate debt	—		2,232		—		2,232		—		1,871		—		1,871
Mortgage-backed and other asset-backed	—		186		—		186		—		25		—		25
Equities	262		—		—		262		142		—		—		142
Non-U.S. government	—		1,036		—		1,036		—		1,367		—		1,367
Other liquid investments (c)	—		28		—		28		—		27		—		27
Total marketable securities	4,634		15,626		—		20,260		4,635		13,543		—		18,178
Derivative financial instruments
Foreign currency exchange contracts	—		548		—		548		—		218		—		218
Commodity contracts	—		11		1		12		—		19		4		23
Total derivative financial instruments (d)	—		559		1		560		—		237		4		241
Total assets at fair value	$	5,037	$	16,726	$	1	$	21,764	$	4,635	$	15,002	$	4	$	19,641
Liabilities
Derivative financial instruments
Foreign currency exchange contracts	$	—	$	328	$	—	$	328	$	—	$	486	$	—	$	486
Commodity contracts	—		70		12		82		—		112		12		124
Total derivative financial instruments (d)	—		398		12		410		—		598		12		610
Total liabilities at fair value	$	—	$	398	$	12	$	410	$	—	$	598	$	12	$	610

__________


(a)	Includes notes issued by non-U.S. government agencies, as well as notes issued by supranational institutions.

(b)

Excludes time deposits, certificates of deposit, money market accounts, and other cash equivalents reported at par value on our balance sheet totaling $2.6 billion and $3 billion at June 30, 2013 and December 31, 2012, respectively, for the Automotive sector. In addition to these cash equivalents, our Automotive sector also had cash on hand totaling $1.9 billion and $2 billion at June 30, 2013 and December 31, 2012, respectively.


(c)	Includes certificates of deposit and time deposits subject to changes in value.


(d)	See Note 12 for additional information regarding derivative financial instruments.

NOTE 3. FAIR VALUE MEASUREMENTS (Continued)



	June 30, 2013								December 31, 2012
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Financial Services Sector
Assets
Cash equivalents – financial instruments
U.S. government	$	201	$	—	$	—	$	201	$	200	$	—	$	—	$	200
U.S. government-sponsored enterprises	—		—		—		—		—		20		—		20
Non-U.S. government	—		46		—		46		—		103		—		103
Corporate debt	—		—		—		—		—		1		—		1
Total cash equivalents – financial instruments (a)	201		46		—		247		200		124		—		324
Marketable securities
U.S. government	1,235		—		—		1,235		620		—		—		620
U.S. government-sponsored enterprises	—		400		—		400		—		12		—		12
Non-U.S. government agencies (b)	—		36		—		36		—		95		—		95
Corporate debt	—		1,249		—		1,249		—		1,155		—		1,155
Mortgage-backed and other asset-backed	—		56		—		56		—		67		—		67
Non-U.S. government	—		108		—		108		—		142		—		142
Other liquid investments (c)	—		—		—		—		—		15		—		15
Total marketable securities	1,235		1,849		—		3,084		620		1,486		—		2,106
Derivative financial instruments
Interest rate contracts	—		778		—		778		—		1,291		—		1,291
Foreign currency exchange contracts	—		14		—		14		—		9		—		9
Cross-currency interest rate swap contracts	—		26		—		26		—		—		—		—
Total derivative financial instruments (d)	—		818		—		818		—		1,300		—		1,300
Total assets at fair value	$	1,436	$	2,713	$	—	$	4,149	$	820	$	2,910	$	—	$	3,730
Liabilities
Derivative financial instruments
Interest rate contracts	$	—	$	316	$	—	$	316	$	—	$	256	$	—	$	256
Foreign currency exchange contracts	—		12		—		12		—		8		—		8
Cross-currency interest rate swap contracts	—		58		—		58		—		117		—		117
Total derivative financial instruments (d)	—		386		—		386		—		381		—		381
Total liabilities at fair value	$	—	$	386	$	—	$	386	$	—	$	381	$	—	$	381

__________


(a)	Excludes time deposits, certificates of deposit, and money market accounts reported at par value on our balance sheet totaling $5.3 billion and $6.5 billion at June 30, 2013 and December 31, 2012, respectively. In addition to these cash equivalents, we also had cash on hand totaling $2.3 billion and $2.6 billion at June 30, 2013 and December 31, 2012, respectively.


(b)	Includes notes issued by non-U.S. government agencies, as well as notes issued by supranational institutions.


(c)	Includes certificates of deposit and time deposits subject to changes in value.


(d)	See Note 12 for additional information regarding derivative financial instruments.

Fair values by input hierarchy of items measured at fair value on a non recurring basis [Table Text Block]

The following table summarizes the items measured at fair value subsequent to initial recognition on a nonrecurring basis, all of which are Level 3 (in millions):



	June 30, 2013		December 31, 2012
Financial Services Sector
North America
Retail receivables	$	41	$	52
Dealer loans	—		2
Total North America	41		54
International
Retail receivables	23		26
Total International	23		26
Total Financial Services sector	$	64	$	80

Schedule of nonrecurring fair value changes [Table Text Block]

The following table summarizes the total change in value of items for which a nonrecurring fair value adjustment has been included in our income statement for the periods ended June 30, related to items still held on our balance sheet at those dates (in millions):



	Total Gains/(Losses)
	Second Quarter						First Half
	2013			2012			2013			2012
Financial Services Sector
North America
Retail receivables	$	(2	)	$	(7	)	$	(16	)	$	(15	)
Dealer loans	—			—			—			—
Total North America	(2		)	(7		)	(16		)	(15		)
International
Retail receivables	(2		)	(5		)	(5		)	(10		)
Total International	(2		)	(5		)	(5		)	(10		)
Total Financial Services sector	$	(4	)	$	(12	)	$	(21	)	$	(25	)

Fair Value Inputs Quantitative Information [Table Text Block]

The following table summarizes significant unobservable inputs and the variability of those inputs to alternate methodologies (in millions):



			June 30, 2013		December 31, 2012
	Valuation Technique	Unobservable Input	Fair Value	Fair Value Range	Fair Value	Fair Value Range
Automotive Sector
Recurring basis
Net commodity contracts	Income Approach	Forward commodity prices for certain commodity types. A lower forward price will result in a lower fair value.	$(11)	$(10) - $(11)	$(8)	$(7) - $(8)
Financial Services Sector
Nonrecurring basis
Retail receivables
North America	Income Approach	POD percentage	$41	$28 - $41	$52	$38 - $52
International	Income Approach	ARV percentage	$23	$21 - $25	$26	$25 - $27
Dealer loans	Income Approach	Estimated fair value	$—	$—	$2	$1 - $3

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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