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Derivative Financial Instruments and Hedging Activities (Tables)
 9 Months Ended
Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Income Effect of Derivative Instruments [Table Text Block]
The gains/(losses), by hedge designation, recorded in income for the periods ended September 30 were as follows (in millions):
 
Third Quarter
 
First Nine Months
 
2017
 
2018
 
2017
 
2018
Cash flow hedges (a)
 
 
 
 
 
 
 
Reclassified from AOCI to Cost of sales
$
115

 
$
45

 
$
357

 
$
50

Fair value hedges
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
Net interest settlements and accruals on hedging instruments
50

 
(5
)
 
182

 
19

Fair value changes on hedging instruments (b)
(40
)
 
(102
)
 
(95
)
 
(531
)
Fair value changes on hedged debt (b)
40

 
110

 
95

 
521

Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
Foreign currency exchange contracts (c)
(168
)
 
(10
)
 
(594
)
 
290

Cross-currency interest rate swap contracts
5

 
(75
)
 
79

 
(258
)
Interest rate contracts
20

 
9

 
57

 
(28
)
Commodity contracts
21

 
(24
)
 
53

 
(62
)
Total
$
43

 
$
(52
)
 
$
134

 
$
1

__________
(a)
For the third quarter and first nine months of 2017, a $116 million loss and a $90 million gain, respectively, were recorded in Other comprehensive income, net of tax. For the third quarter and first nine months of 2018, a $91 million loss and a $30 million gain, respectively, were recorded in Other comprehensive income, net of tax.
(b)
For 2017, the fair value changes on hedging instruments and on hedged debt were recorded in Other income/(loss), net; effective 2018, these amounts were recorded in Ford Credit interest, operating, and other expenses.
(c)
For the third quarter and first nine months of 2017, a $107 million loss and a $443 million loss were recorded in Cost of sales and a $61 million loss and a $151 million loss were recorded in Other income/(loss), net, respectively. For the third quarter and first nine months of 2018, a $16 million loss and a $186 million gain were recorded in Cost of sales and a $6 million gain and a $104 million gain were recorded in Other income(loss), net, respectively.
Balance Sheet Effect of Derivative Instruments [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
 
September 30, 2018
 
Notional
 
Fair Value of
Assets
 
Fair Value of
Liabilities
 
Notional
 
Fair Value of
Assets
 
Fair Value of
Liabilities
Cash flow hedges
 
 
 
 
 
 
 
 
 
 
 
Foreign currency exchange contracts
$
19,595

 
$
407

 
$
306

 
$
16,848

 
$
196

 
$
137

Fair value hedges
 

 
 

 
 

 
 
 
 
 
 
Interest rate contracts
28,008

 
248

 
135

 
27,769

 
112

 
632

Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
Foreign currency exchange contracts
20,679

 
172

 
302

 
18,694

 
210

 
98

Cross-currency interest rate swap contracts
4,006

 
408

 
28

 
5,649

 
206

 
166

Interest rate contracts
60,504

 
276

 
137

 
68,226

 
250

 
298

Commodity contracts
660

 
37

 
4

 
738

 
5

 
45

Total derivative financial instruments, gross (a) (b)
$
133,452

 
$
1,548

 
$
912

 
$
137,924

 
$
979

 
$
1,376

 
 
 
 
 
 
 
 
 
 
 
 
Current portion
 
 
$
802

 
$
568

 
 
 
$
623

 
$
532

Non-current portion
 
 
746

 
344

 
 
 
356

 
844

Total derivative financial instruments, gross
 
 
$
1,548

 
$
912

 
 
 
$
979

 
$
1,376


__________
(a)
At December 31, 2017 and September 30, 2018, we held collateral of $15 million and $16 million, and we posted collateral of $38 million and $59 million, respectively.
(b)
At December 31, 2017 and September 30, 2018, the fair value of assets and liabilities available for counterparty netting was $618 million and $351 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.