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Derivative Financial Instruments and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Income Effect of Derivative Instruments [Table Text Block]
The gains/(losses), by hedge designation, reported in income for the years ended December 31 were as follows (in millions):
 
2017
 
2018
 
2019
Cash flow hedges (a)
 
 
 
 
 
Reclassified from AOCI to Cost of sales
 
 
 
 
 
Foreign currency exchange contracts
$
456

 
$
50

 
$
29

Commodity contracts
—

 
—

 
(32
)
Fair value hedges
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
Net interest settlements and accruals on hedging instruments
217

 
10

 
(16
)
Fair value changes on hedging instruments (b)
(268
)
 
(155
)
 
706

Fair value changes on hedged debt (b)
267

 
153

 
(694
)
Derivatives not designated as hedging instruments
 
 
 
 
 
Foreign currency exchange contracts (c)
(662
)
 
398

 
84

Cross-currency interest rate swap contracts
103

 
(244
)
 
(229
)
Interest rate contracts
58

 
(84
)
 
(13
)
Commodity contracts
74

 
(96
)
 
—

Total
$
245

 
$
32

 
$
(165
)
__________
(a)
For 2017, 2018, and 2019, a $134 million gain, a $288 million gain, and a $839 million loss, respectively, were reported in Other comprehensive income/(loss), net of tax related to foreign currency contracts. For 2019, a $36 million loss was reported in Other comprehensive income/(loss), net of tax related to commodity contracts.
(b)
For 2017, the fair value changes on hedging instruments and on hedged debt were reported in Other income/(loss), net; effective 2018, these amounts were reported in Ford Credit interest, operating, and other expenses.
(c)
For 2017, 2018, and 2019, a $512 million loss, a $235 million gain, and a $32 million gain were reported in Cost of sales and a $150 million loss, a $163 million gain, and a $52 million gain were reported 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, at December 31 were as follows (in millions):
 
2018
 
2019
 
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
$
15,972

 
$
391

 
$
110

 
$
15,349

 
$
47

 
$
493

Commodity contracts
327

 
—

 
20

 
673

 
5

 
29

Fair value hedges
 

 
 

 
 

 
 
 
 
 
 
Interest rate contracts
22,989

 
158

 
208

 
26,577

 
702

 
19

Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Foreign currency exchange contracts
20,695

 
202

 
99

 
19,350

 
58

 
270

Cross-currency interest rate swap contracts
5,235

 
232

 
157

 
5,849

 
134

 
67

Interest rate contracts
76,904

 
235

 
274

 
68,914

 
275

 
191

Commodity contracts
638

 
3

 
45

 
467

 
9

 
9

Total derivative financial instruments, gross (a) (b)
$
142,760

 
$
1,221

 
$
913

 
$
137,179

 
$
1,230

 
$
1,078

 
 
 
 
 
 
 
 
 
 
 
 
Current portion
 
 
$
681

 
$
601

 
 
 
$
390

 
$
772

Non-current portion
 
 
540

 
312

 
 
 
840

 
306

Total derivative financial instruments, gross
 
 
$
1,221

 
$
913

 
 
 
$
1,230

 
$
1,078

__________
(a)
At December 31, 2018 and 2019, we held collateral of $19 million and $18 million, and we posted collateral of $59 million and $78 million, respectively.
(b)
At December 31, 2018 and 2019, the fair value of assets and liabilities available for counterparty netting was $434 million and $269 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.