DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Gains/(Losses), by Hedge Designation

The gains/(losses), by hedge designation, reported in income for the years ended December 31 were as follows (in millions):


	2023		2024		2025
Cash flow hedges
Reclassified from AOCI to Cost of sales
Foreign currency exchange contracts (a)	$	145	$	46	$	88
Commodity contracts (b)	(62)		(38)		22
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments	(507)		(361)		(162)
Fair value changes on hedging instruments	196		(220)		548
Fair value changes on hedged debt	(260)		182		(530)
Cross-currency interest rate swap contracts
Net interest settlements and accruals on hedging instruments	(79)		(133)		(79)
Fair value changes on hedging instruments	96		(134)		474
Fair value changes on hedged debt	(96)		108		(463)
Derivatives not designated as hedging instruments
Foreign currency exchange contracts (c)	(38)		384		(64)
Cross-currency interest rate swap contracts	127		(272)		276
Interest rate contracts	37		(85)		(48)
Commodity contracts	(49)		(48)		67
Total	$	(490)	$	(571)	$	129

__________

(a)For 2023, 2024, and 2025, a $482 million loss, an $808 million gain, and a $438 million loss, respectively, were reported in Other comprehensive income/(loss), net of tax.

(b)For 2023, 2024, and 2025, a $37 million loss, a $5 million loss, and a $139 million gain, respectively, were reported in Other comprehensive income/(loss), net of tax.

(c)For 2023, 2024, and 2025, a $3 million loss, a $116 million gain, and a $71 million gain, respectively, were reported in Cost of sales and a $35 million loss, a $268 million gain, and a $135 million loss were reported in Other income/(loss), net, respectively.

Schedule of Derivative Instruments and the Associated Notional Amounts

The fair value of our derivative instruments and the associated notional amounts at December 31 were as follows (in millions):


	2024						2025
	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	$	20,027	$	578	$	123	$	17,750	$	98	$	114
Commodity contracts	959		22		13		940		122		—
Fair value hedges
Interest rate contracts	16,194		66		645		18,582		374		220
Cross-currency interest rate swap contracts	3,802		9		139		4,158		383		5
Derivatives not designated as hedging instruments
Foreign currency exchange contracts	20,799		301		192		24,934		150		180
Cross-currency interest rate swap contracts	5,455		133		246		7,121		379		28
Interest rate contracts	76,977		305		845		87,293		364		619
Commodity contracts	944		14		31		803		56		1
Total derivative financial instruments, gross (a) (b)	$	145,157	$	1,428	$	2,234	$	161,581	$	1,926	$	1,167

Current portion			$	869	$	1,311			$	634	$	643
Non-current portion			559		923				1,292		524
Total derivative financial instruments, gross			$	1,428	$	2,234			$	1,926	$	1,167

__________

(a)At December 31, 2024 and 2025, we held collateral of $27 million and $5 million, respectively, and we posted collateral of $127 million and $102 million, respectively.

(b)At December 31, 2024 and 2025, the fair value of assets and liabilities available for counterparty netting was $780 million and $814 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.

FORD MOTOR CO 10-K