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|
(Mark One)
|
|
R
|
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
|
|
|
For the quarterly period ended March 31, 2017
|
|
|
or
|
|
|
|
o
|
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
|
|
|
For the transition period from __________ to __________
|
|
|
|
Commission file number 1-3950
|
Delaware
|
38-0549190
|
(State of incorporation)
|
(I.R.S. Employer Identification No.)
|
|
|
One American Road, Dearborn, Michigan
|
48126
|
(Address of principal executive offices)
|
(Zip Code)
|
|
|
Table of Contents
|
|
Page
|
|
Part I - Financial Information
|
|
|
Item 1
|
Financial Statements
|
|
|
|
Consolidated Income Statement
|
|
|
|
Consolidated Statement of Comprehensive Income
|
|
|
|
Consolidated Balance Sheet
|
|
|
|
Condensed Consolidated Statement of Cash Flows
|
|
|
|
Consolidated Statement of Equity
|
|
|
|
Notes to the Financial Statements
|
|
|
|
Report of Independent Registered Public Accounting Firm
|
|
|
Item 2
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
|
|
Overview
|
|
|
|
Results of Operations
|
|
|
|
Automotive Segment
|
|
|
|
Financial Services Segment
|
|
|
|
All Other
|
|
|
|
Special Items
|
|
|
|
Taxes
|
|
|
|
Liquidity and Capital Resources
|
|
|
|
Credit Ratings
|
|
|
|
Production Volumes
|
|
|
|
Outlook
|
|
|
|
Non-GAAP Financial Measure Reconciliations
|
|
|
|
Supplemental Financial Information
|
|
|
|
Risk Factors
|
|
|
|
Accounting Standards Issued But Not Yet Adopted
|
|
|
|
Other Financial Information
|
|
|
Item 3
|
Quantitative and Qualitative Disclosures About Market Risk
|
|
|
Item 4
|
Controls and Procedures
|
|
|
|
|
|
|
|
Part II - Other Information
|
|
|
Item 6
|
Exhibits
|
|
|
|
Signature
|
|
|
|
Exhibit Index
|
|
|
For the periods ended March 31,
|
||||||
|
2016
|
|
2017
|
||||
|
First Quarter
|
||||||
|
(unaudited)
|
||||||
Revenues
|
|
|
|
||||
Automotive
|
$
|
35,257
|
|
|
$
|
36,475
|
|
Financial Services
|
2,461
|
|
|
2,669
|
|
||
Other
|
—
|
|
|
2
|
|
||
Total revenues (Note 3)
|
37,718
|
|
|
39,146
|
|
||
|
|
|
|
||||
Costs and expenses
|
|
|
|
||||
Cost of sales
|
30,517
|
|
|
32,708
|
|
||
Selling, administrative, and other expenses
|
2,690
|
|
|
2,764
|
|
||
Financial Services interest, operating, and other expenses
|
2,060
|
|
|
2,232
|
|
||
Total costs and expenses
|
35,267
|
|
|
37,704
|
|
||
|
|
|
|
||||
Interest expense on Automotive debt
|
200
|
|
|
279
|
|
||
|
|
|
|
||||
Non-Financial Services other income/(loss), net (Note 4)
|
768
|
|
|
712
|
|
||
Financial Services other income/(loss), net (Note 4)
|
91
|
|
|
22
|
|
||
Equity in net income of affiliated companies
|
541
|
|
|
346
|
|
||
Income before income taxes
|
3,651
|
|
|
2,243
|
|
||
Provision for/(Benefit from) income taxes
|
1,196
|
|
|
649
|
|
||
Net income
|
2,455
|
|
|
1,594
|
|
||
Less: Income/(Loss) attributable to noncontrolling interests
|
3
|
|
|
7
|
|
||
Net income attributable to Ford Motor Company
|
$
|
2,452
|
|
|
$
|
1,587
|
|
|
|
|
|
||||
EARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 6)
|
|||||||
Basic income
|
$
|
0.62
|
|
|
$
|
0.40
|
|
Diluted income
|
0.61
|
|
|
0.40
|
|
||
|
|
|
|
||||
Cash dividends declared
|
0.40
|
|
|
0.20
|
|
|
For the periods ended March 31,
|
||||||
|
2016
|
|
2017
|
||||
|
First Quarter
|
||||||
|
(unaudited)
|
||||||
Net income
|
$
|
2,455
|
|
|
$
|
1,594
|
|
Other comprehensive income/(loss), net of tax (Note 15)
|
|
|
|
||||
Foreign currency translation
|
(64
|
)
|
|
242
|
|
||
Marketable securities
|
6
|
|
|
(1
|
)
|
||
Derivative instruments
|
246
|
|
|
(168
|
)
|
||
Pension and other postretirement benefits
|
22
|
|
|
9
|
|
||
Total other comprehensive income/(loss), net of tax
|
210
|
|
|
82
|
|
||
Comprehensive income
|
2,665
|
|
|
1,676
|
|
||
Less: Comprehensive income/(loss) attributable to noncontrolling interests
|
2
|
|
|
5
|
|
||
Comprehensive income attributable to Ford Motor Company
|
$
|
2,663
|
|
|
$
|
1,671
|
|
|
December 31,
2016 |
|
March 31,
2017 |
||||
|
(unaudited)
|
||||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents (Note 7)
|
$
|
15,905
|
|
|
$
|
17,823
|
|
Marketable securities (Note 7)
|
22,922
|
|
|
22,166
|
|
||
Financial Services finance receivables, net (Note 8)
|
46,266
|
|
|
48,605
|
|
||
Trade and other receivables, less allowances of $392 and $401
|
11,102
|
|
|
10,685
|
|
||
Inventories (Note 10)
|
8,898
|
|
|
10,535
|
|
||
Other assets
|
3,368
|
|
|
3,414
|
|
||
Total current assets
|
108,461
|
|
|
113,228
|
|
||
|
|
|
|
||||
Financial Services finance receivables, net (Note 8)
|
49,924
|
|
|
50,694
|
|
||
Net investment in operating leases
|
28,829
|
|
|
27,914
|
|
||
Net property
|
32,072
|
|
|
32,668
|
|
||
Equity in net assets of affiliated companies
|
3,304
|
|
|
3,642
|
|
||
Deferred income taxes
|
9,705
|
|
|
10,055
|
|
||
Other assets
|
5,656
|
|
|
5,893
|
|
||
Total assets
|
$
|
237,951
|
|
|
$
|
244,094
|
|
|
|
|
|
||||
LIABILITIES
|
|
|
|
|
|
||
Payables
|
$
|
21,296
|
|
|
$
|
23,257
|
|
Other liabilities and deferred revenue (Note 11)
|
19,316
|
|
|
18,790
|
|
||
Automotive debt payable within one year (Note 13)
|
2,685
|
|
|
3,100
|
|
||
Financial Services debt payable within one year (Note 13)
|
46,984
|
|
|
46,157
|
|
||
Total current liabilities
|
90,281
|
|
|
91,304
|
|
||
|
|
|
|
||||
Other liabilities and deferred revenue (Note 11)
|
24,395
|
|
|
24,583
|
|
||
Automotive long-term debt (Note 13)
|
13,222
|
|
|
13,110
|
|
||
Financial Services long-term debt (Note 13)
|
80,079
|
|
|
83,610
|
|
||
Deferred income taxes
|
691
|
|
|
749
|
|
||
Total liabilities
|
208,668
|
|
|
213,356
|
|
||
|
|
|
|
||||
Redeemable noncontrolling interest
|
96
|
|
|
97
|
|
||
|
|
|
|
||||
EQUITY
|
|
|
|
|
|
||
Common Stock, par value $.01 per share (3,984 million shares issued of 6 billion authorized)
|
40
|
|
|
40
|
|
||
Class B Stock, par value $.01 per share (71 million shares issued of 530 million authorized)
|
1
|
|
|
1
|
|
||
Capital in excess of par value of stock
|
21,630
|
|
|
21,637
|
|
||
Retained earnings
|
15,634
|
|
|
16,992
|
|
||
Accumulated other comprehensive income/(loss) (Note 15)
|
(7,013
|
)
|
|
(6,929
|
)
|
||
Treasury stock
|
(1,122
|
)
|
|
(1,122
|
)
|
||
Total equity attributable to Ford Motor Company
|
29,170
|
|
|
30,619
|
|
||
Equity attributable to noncontrolling interests
|
17
|
|
|
22
|
|
||
Total equity
|
29,187
|
|
|
30,641
|
|
||
Total liabilities and equity
|
$
|
237,951
|
|
|
$
|
244,094
|
|
The following table includes assets to be used to settle liabilities of the consolidated variable interest entities (“VIEs”). These assets and liabilities are included in the consolidated balance sheet above.
|
|||||||
|
December 31,
2016 |
|
March 31,
2017 |
||||
|
(unaudited)
|
||||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
3,047
|
|
|
$
|
2,645
|
|
Financial Services finance receivables, net
|
50,857
|
|
|
52,860
|
|
||
Net investment in operating leases
|
11,761
|
|
|
12,325
|
|
||
Other assets
|
25
|
|
|
29
|
|
||
LIABILITIES
|
|
|
|
||||
Other liabilities and deferred revenue
|
$
|
5
|
|
|
$
|
4
|
|
Debt
|
43,730
|
|
|
42,960
|
|
|
For the periods ended March 31,
|
||||||
|
2016
|
|
2017
|
||||
|
First Quarter
|
||||||
|
(unaudited)
|
||||||
Cash flows from operating activities
|
|
|
|
||||
Net cash provided by/(used in) operating activities
|
$
|
4,149
|
|
|
$
|
4,336
|
|
|
|
|
|
||||
Cash flows from investing activities
|
|
|
|
||||
Capital spending
|
(1,511
|
)
|
|
(1,706
|
)
|
||
Acquisitions of finance receivables and operating leases
|
(12,677
|
)
|
|
(13,467
|
)
|
||
Collections of finance receivables and operating leases
|
9,674
|
|
|
10,695
|
|
||
Purchases of equity and debt securities
|
(8,231
|
)
|
|
(8,878
|
)
|
||
Sales and maturities of equity and debt securities
|
5,679
|
|
|
9,551
|
|
||
Settlements of derivatives
|
104
|
|
|
156
|
|
||
Other
|
(13
|
)
|
|
10
|
|
||
Net cash provided by/(used in) investing activities
|
(6,975
|
)
|
|
(3,639
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities
|
|
|
|
|
|
||
Cash dividends
|
(1,588
|
)
|
|
(795
|
)
|
||
Purchases of Common Stock
|
(145
|
)
|
|
—
|
|
||
Net changes in short-term debt
|
(121
|
)
|
|
658
|
|
||
Proceeds from issuance of other debt
|
15,623
|
|
|
13,253
|
|
||
Principal payments on other debt
|
(9,431
|
)
|
|
(11,911
|
)
|
||
Other
|
(59
|
)
|
|
(85
|
)
|
||
Net cash provided by/(used in) financing activities
|
4,279
|
|
|
1,120
|
|
||
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
192
|
|
|
101
|
|
||
|
|
|
|
||||
Net increase/(decrease) in cash and cash equivalents
|
$
|
1,645
|
|
|
$
|
1,918
|
|
|
|
|
|
||||
Cash and cash equivalents at January 1
|
$
|
14,272
|
|
|
$
|
15,905
|
|
Net increase/(decrease) in cash and cash equivalents
|
1,645
|
|
|
1,918
|
|
||
Cash and cash equivalents at March 31
|
$
|
15,917
|
|
|
$
|
17,823
|
|
|
Equity Attributable to Ford Motor Company
|
|
|
|
|
||||||||||||||||||||||||||
|
Capital Stock
|
|
Cap. in
Excess of
Par Value
of Stock
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income/(Loss) (Note 15)
|
|
Treasury Stock
|
|
Total
|
|
Equity
Attributable
to Non-controlling Interests
|
|
Total
Equity
|
||||||||||||||||
Balance at December 31, 2015
|
$
|
41
|
|
|
$
|
21,421
|
|
|
$
|
14,414
|
|
|
$
|
(6,257
|
)
|
|
$
|
(977
|
)
|
|
$
|
28,642
|
|
|
$
|
15
|
|
|
$
|
28,657
|
|
Net income
|
—
|
|
|
—
|
|
|
2,452
|
|
|
—
|
|
|
—
|
|
|
2,452
|
|
|
3
|
|
|
2,455
|
|
||||||||
Other comprehensive income/(loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
211
|
|
|
—
|
|
|
211
|
|
|
(1
|
)
|
|
210
|
|
||||||||
Common stock issued (including share-based compensation impacts)
|
—
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
33
|
|
||||||||
Treasury stock/other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(145
|
)
|
|
(145
|
)
|
|
(1
|
)
|
|
(146
|
)
|
||||||||
Cash dividends declared
|
—
|
|
|
—
|
|
|
(1,588
|
)
|
|
—
|
|
|
—
|
|
|
(1,588
|
)
|
|
—
|
|
|
(1,588
|
)
|
||||||||
Balance at March 31, 2016
|
$
|
41
|
|
|
$
|
21,454
|
|
|
$
|
15,278
|
|
|
$
|
(6,046
|
)
|
|
$
|
(1,122
|
)
|
|
$
|
29,605
|
|
|
$
|
16
|
|
|
$
|
29,621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at December 31, 2016
|
$
|
41
|
|
|
$
|
21,630
|
|
|
$
|
15,634
|
|
|
$
|
(7,013
|
)
|
|
$
|
(1,122
|
)
|
|
$
|
29,170
|
|
|
$
|
17
|
|
|
$
|
29,187
|
|
Adoption of accounting standards
(Note 2) |
—
|
|
|
6
|
|
|
566
|
|
|
—
|
|
|
—
|
|
|
572
|
|
|
—
|
|
|
572
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
1,587
|
|
|
—
|
|
|
—
|
|
|
1,587
|
|
|
7
|
|
|
1,594
|
|
||||||||
Other comprehensive income/(loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
84
|
|
|
—
|
|
|
84
|
|
|
(2
|
)
|
|
82
|
|
||||||||
Common stock issued (including share-based compensation impacts)
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||||
Treasury stock/other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Cash dividends declared
|
—
|
|
|
—
|
|
|
(795
|
)
|
|
—
|
|
|
—
|
|
|
(795
|
)
|
|
—
|
|
|
(795
|
)
|
||||||||
Balance at March 31, 2017
|
$
|
41
|
|
|
$
|
21,637
|
|
|
$
|
16,992
|
|
|
$
|
(6,929
|
)
|
|
$
|
(1,122
|
)
|
|
$
|
30,619
|
|
|
$
|
22
|
|
|
$
|
30,641
|
|
Footnote
|
|
Page
|
Note 1
|
Presentation
|
|
Note 2
|
New Accounting Standards
|
|
Note 3
|
Revenue
|
|
Note 4
|
Other Income/(Loss)
|
|
Note 5
|
Income Taxes
|
|
Note 6
|
Capital Stock and Earnings Per Share
|
|
Note 7
|
Cash, Cash Equivalents, and Marketable Securities
|
|
Note 8
|
Financial Services Finance Receivables
|
|
Note 9
|
Financial Services Allowance for Credit Losses
|
|
Note 10
|
Inventories
|
|
Note 11
|
Other Liabilities and Deferred Revenue
|
|
Note 12
|
Retirement Benefits
|
|
Note 13
|
Debt
|
|
Note 14
|
Derivative Financial Instruments and Hedging Activities
|
|
Note 15
|
Accumulated Other Comprehensive Income/(Loss)
|
|
Note 16
|
Commitments and Contingencies
|
|
Note 17
|
Segment Information
|
|
Balance at
December 31, 2016
|
|
Adjustments Due to
ASU 2016-09 |
|
Adjustments Due to
ASU 2014-09
|
|
Balance at
January 1, 2017
|
||||||||
Balance Sheet
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Trade and other receivables
|
$
|
11,102
|
|
|
$
|
—
|
|
|
$
|
(17
|
)
|
|
$
|
11,085
|
|
Inventories
|
8,898
|
|
|
—
|
|
|
(9
|
)
|
|
8,889
|
|
||||
Other assets, current
|
3,368
|
|
|
—
|
|
|
307
|
|
|
3,675
|
|
||||
Net investment in operating leases
|
28,829
|
|
|
—
|
|
|
(1,078
|
)
|
|
27,751
|
|
||||
Deferred income taxes
|
9,705
|
|
|
536
|
|
|
(13
|
)
|
|
10,228
|
|
||||
|
|
|
|
|
|
|
|
|
|||||||
Liabilities
|
|
|
|
|
|
|
|
|
|||||||
Payables
|
21,296
|
|
|
—
|
|
|
262
|
|
|
21,558
|
|
||||
Other liabilities and deferred revenue, current
|
19,316
|
|
|
—
|
|
|
(1,429
|
)
|
|
17,887
|
|
||||
Automotive debt payable within one year
|
2,685
|
|
|
—
|
|
|
326
|
|
|
3,011
|
|
||||
Other liabilities and deferred revenue, non-current
|
24,395
|
|
|
—
|
|
|
(5
|
)
|
|
24,390
|
|
||||
|
|
|
|
|
|
|
|
|
|||||||
Equity
|
|
|
|
|
|
|
|
|
|||||||
Capital in excess of par value of stock
|
21,630
|
|
|
6
|
|
|
—
|
|
|
21,636
|
|
||||
Retained earnings
|
15,634
|
|
|
530
|
|
|
36
|
|
|
16,200
|
|
|
For the period ended March 31, 2017
|
||||||||||
|
As
Reported
|
|
Balances Without Adoption of ASC 606
|
|
Effect of Change
Higher/(Lower) |
||||||
Income statement
|
|
|
|
|
|
||||||
Revenues
|
|
|
|
|
|
||||||
Automotive
|
$
|
36,475
|
|
|
$
|
36,142
|
|
|
$
|
333
|
|
Financial Services
|
2,669
|
|
|
2,580
|
|
|
89
|
|
|||
|
|
|
|
|
|
||||||
Costs and expenses
|
|
|
|
|
|
||||||
Cost of sales
|
32,708
|
|
|
32,446
|
|
|
262
|
|
|||
Interest expense on Automotive debt
|
279
|
|
|
262
|
|
|
17
|
|
|||
Non-Financial Services other income/(loss), net
|
712
|
|
|
732
|
|
|
(20
|
)
|
|||
Financial Services other income/(loss), net
|
22
|
|
|
111
|
|
|
(89
|
)
|
|||
Provision for/(Benefit from) income taxes
|
649
|
|
|
642
|
|
|
7
|
|
|||
Net income
|
1,594
|
|
|
1,567
|
|
|
27
|
|
|
March 31, 2017
|
||||||||||
|
As
Reported
|
|
Balances Without Adoption of ASC 606
|
|
Effect of Change
Higher/(Lower) |
||||||
Balance Sheet
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
||||||
Trade and other receivables
|
$
|
10,685
|
|
|
$
|
10,691
|
|
|
$
|
(6
|
)
|
Other assets, current
|
3,414
|
|
|
3,082
|
|
|
332
|
|
|||
Net investment in operating leases
|
27,914
|
|
|
28,680
|
|
|
(766
|
)
|
|||
Deferred income taxes
|
10,055
|
|
|
10,075
|
|
|
(20
|
)
|
|||
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
||||||
Payables
|
23,257
|
|
|
22,973
|
|
|
284
|
|
|||
Other liabilities and deferred revenue, current
|
18,790
|
|
|
20,003
|
|
|
(1,213
|
)
|
|||
Automotive debt payable within one year
|
3,100
|
|
|
2,689
|
|
|
411
|
|
|||
Other liabilities and deferred revenue, non-current
|
24,583
|
|
|
24,588
|
|
|
(5
|
)
|
|||
Deferred income taxes
|
749
|
|
|
749
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Equity
|
|
|
|
|
|
||||||
Retained earnings
|
16,992
|
|
|
16,929
|
|
|
63
|
|
|
For the period ended March 31, 2016
|
||||||||||
|
As
Revised
|
|
Previously Reported
|
|
Effect of Change
Higher/(Lower) |
||||||
Income statement
|
|
|
|
|
|
||||||
Cost of sales
|
$
|
30,517
|
|
|
$
|
30,281
|
|
|
$
|
236
|
|
Selling, administrative, and other expenses
|
2,690
|
|
|
2,562
|
|
|
128
|
|
|||
Non-Financial Services other income/(loss), net
|
768
|
|
|
404
|
|
|
364
|
|
Standard
|
|
Effective Date
|
|
2017-05
|
Gains and Losses from the Derecognition of Nonfinancial Assets - Clarifying the Scope of Asset Derecognition Guidance
|
|
January 1, 2017
|
2017-04
|
Goodwill and Other - Simplifying the Test for Goodwill Impairment
|
|
January 1, 2017
|
2017-03
|
Accounting Changes and Error Corrections and Investments - Equity Method and Joint Ventures
|
|
January 1, 2017
|
2017-01
|
Business Combinations - Clarifying the Definition of a Business
|
|
January 1, 2017
|
2016-17
|
Consolidation - Interests Held through Related Parties That Are under Common Control
|
|
January 1, 2017
|
2016-07
|
Equity Method and Joint Ventures - Simplifying the Transition to the Equity Method of Accounting
|
|
January 1, 2017
|
2016-06
|
Derivatives and Hedging - Contingent Put and Call Options in Debt Instruments
|
|
January 1, 2017
|
2016-05
|
Derivatives and Hedging - Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships
|
|
January 1, 2017
|
2016-04
|
Extinguishments of Liabilities - Recognition of Breakage for Certain Prepaid Stored-Value Products
|
|
January 1, 2017
|
|
For the period ended March 31, 2017
|
||||||||||||||
|
Automotive
|
|
Financial Services
|
|
All
Other
|
|
Consolidated
|
||||||||
Vehicles, parts, and accessories
|
$
|
34,996
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34,996
|
|
Sale of used vehicles
|
873
|
|
|
—
|
|
|
—
|
|
|
873
|
|
||||
Extended service contracts
|
275
|
|
|
—
|
|
|
—
|
|
|
275
|
|
||||
Other (a)
|
224
|
|
|
49
|
|
|
2
|
|
|
275
|
|
||||
Revenues from sales and services
|
36,368
|
|
|
49
|
|
|
2
|
|
|
36,419
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Leasing income
|
107
|
|
|
1,366
|
|
|
—
|
|
|
1,473
|
|
||||
Financing income
|
—
|
|
|
1,214
|
|
|
—
|
|
|
1,214
|
|
||||
Insurance income
|
—
|
|
|
40
|
|
|
—
|
|
|
40
|
|
||||
Total revenues
|
$
|
36,475
|
|
|
$
|
2,669
|
|
|
$
|
2
|
|
|
$
|
39,146
|
|
(a)
|
Primarily includes commissions and vehicle-related design and testing services.
|
|
First Quarter
|
||||||
|
2016
|
|
2017
|
||||
Net periodic pension and OPEB income/(cost), excluding service cost
|
$
|
364
|
|
|
$
|
390
|
|
Investment-related interest income
|
61
|
|
|
71
|
|
||
Interest income/(expense) on income taxes
|
(2
|
)
|
|
3
|
|
||
Realized and unrealized gains/(losses) on cash equivalents and marketable securities
|
72
|
|
|
49
|
|
||
Royalty income
|
183
|
|
|
154
|
|
||
Other
|
90
|
|
|
45
|
|
||
Total
|
$
|
768
|
|
|
$
|
712
|
|
|
First Quarter
|
||||||
|
2016
|
|
2017
|
||||
Investment-related interest income
|
$
|
19
|
|
|
$
|
21
|
|
Interest income/(expense) on income taxes
|
(2
|
)
|
|
(2
|
)
|
||
Insurance premiums earned
|
39
|
|
|
—
|
|
||
Other
|
35
|
|
|
3
|
|
||
Total
|
$
|
91
|
|
|
$
|
22
|
|
|
First Quarter
|
||||||
|
2016
|
|
2017
|
||||
Basic and Diluted Income Attributable to Ford Motor Company
|
|
|
|
||||
Basic income
|
$
|
2,452
|
|
|
$
|
1,587
|
|
Diluted income
|
2,452
|
|
|
1,587
|
|
||
|
|
|
|
||||
Basic and Diluted Shares
|
|
|
|
|
|
||
Basic shares (average shares outstanding)
|
3,970
|
|
|
3,976
|
|
||
Net dilutive options and unvested restricted stock units
|
26
|
|
|
23
|
|
||
Diluted shares
|
3,996
|
|
|
3,999
|
|
|
|
|
December 31, 2016
|
||||||||||||||
|
Fair Value
Level
|
|
Automotive
|
|
Financial Services
|
|
All
Other
|
|
Consolidated
|
||||||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government
|
1
|
|
$
|
888
|
|
|
$
|
924
|
|
|
$
|
—
|
|
|
$
|
1,812
|
|
U.S. government agencies
|
2
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Non-U.S. government and agencies
|
2
|
|
200
|
|
|
142
|
|
|
—
|
|
|
342
|
|
||||
Corporate debt
|
2
|
|
100
|
|
|
—
|
|
|
—
|
|
|
100
|
|
||||
Total marketable securities classified as cash equivalents
|
|
|
1,188
|
|
|
1,066
|
|
|
—
|
|
|
2,254
|
|
||||
Cash, time deposits, and money market funds
|
|
|
6,632
|
|
|
7,011
|
|
|
8
|
|
|
13,651
|
|
||||
Total cash and cash equivalents
|
|
|
$
|
7,820
|
|
|
$
|
8,077
|
|
|
$
|
8
|
|
|
$
|
15,905
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Marketable securities
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government
|
1
|
|
$
|
8,099
|
|
|
$
|
1,634
|
|
|
$
|
—
|
|
|
$
|
9,733
|
|
U.S. government agencies
|
2
|
|
2,244
|
|
|
505
|
|
|
—
|
|
|
2,749
|
|
||||
Non-U.S. government and agencies
|
2
|
|
4,751
|
|
|
632
|
|
|
—
|
|
|
5,383
|
|
||||
Corporate debt
|
2
|
|
4,329
|
|
|
475
|
|
|
—
|
|
|
4,804
|
|
||||
Equities
|
1
|
|
165
|
|
|
—
|
|
|
—
|
|
|
165
|
|
||||
Other marketable securities
|
2
|
|
54
|
|
|
34
|
|
|
—
|
|
|
88
|
|
||||
Total marketable securities
|
|
|
$
|
19,642
|
|
|
$
|
3,280
|
|
|
$
|
—
|
|
|
$
|
22,922
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
March 31, 2017
|
||||||||||||||
|
Fair Value
Level
|
|
Automotive
|
|
Financial Services
|
|
All
Other
|
|
Consolidated
|
||||||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government
|
1
|
|
$
|
75
|
|
|
$
|
749
|
|
|
$
|
—
|
|
|
$
|
824
|
|
U.S. government agencies
|
2
|
|
798
|
|
|
400
|
|
|
—
|
|
|
1,198
|
|
||||
Non-U.S. government and agencies
|
2
|
|
268
|
|
|
283
|
|
|
—
|
|
|
551
|
|
||||
Corporate debt
|
2
|
|
115
|
|
|
—
|
|
|
—
|
|
|
115
|
|
||||
Total marketable securities classified as cash equivalents
|
|
|
1,256
|
|
|
1,432
|
|
|
—
|
|
|
2,688
|
|
||||
Cash, time deposits, and money market funds
|
|
|
8,293
|
|
|
6,836
|
|
|
6
|
|
|
15,135
|
|
||||
Total cash and cash equivalents
|
|
|
$
|
9,549
|
|
|
$
|
8,268
|
|
|
$
|
6
|
|
|
$
|
17,823
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Marketable securities
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government
|
1
|
|
$
|
5,194
|
|
|
$
|
1,894
|
|
|
$
|
—
|
|
|
$
|
7,088
|
|
U.S. government agencies
|
2
|
|
3,489
|
|
|
459
|
|
|
—
|
|
|
3,948
|
|
||||
Non-U.S. government and agencies
|
2
|
|
5,195
|
|
|
649
|
|
|
—
|
|
|
5,844
|
|
||||
Corporate debt
|
2
|
|
4,360
|
|
|
657
|
|
|
—
|
|
|
5,017
|
|
||||
Equities
|
1
|
|
202
|
|
|
—
|
|
|
—
|
|
|
202
|
|
||||
Other marketable securities
|
2
|
|
39
|
|
|
28
|
|
|
—
|
|
|
67
|
|
||||
Total marketable securities
|
|
|
$
|
18,479
|
|
|
$
|
3,687
|
|
|
$
|
—
|
|
|
$
|
22,166
|
|
|
December 31, 2016
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Fair Value of Securities with
Contractual Maturities
|
||||||||||||||||||
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Within 1 Year
|
|
After 1 Year through 5 Years
|
|
After 5 Years through 10 Years
|
||||||||||||||
Automotive
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. government
|
$
|
3,703
|
|
|
$
|
2
|
|
|
$
|
(14
|
)
|
|
$
|
3,691
|
|
|
$
|
727
|
|
|
$
|
2,776
|
|
|
$
|
188
|
|
U.S. government agencies
|
308
|
|
|
—
|
|
|
(2
|
)
|
|
306
|
|
|
—
|
|
|
306
|
|
|
—
|
|
|||||||
Non-U.S. government and agencies
|
1,443
|
|
|
1
|
|
|
(11
|
)
|
|
1,433
|
|
|
148
|
|
|
1,285
|
|
|
—
|
|
|||||||
Corporate debt
|
1,079
|
|
|
—
|
|
|
—
|
|
|
1,079
|
|
|
1,031
|
|
|
48
|
|
|
—
|
|
|||||||
Total
|
$
|
6,533
|
|
|
$
|
3
|
|
|
$
|
(27
|
)
|
|
$
|
6,509
|
|
|
$
|
1,906
|
|
|
$
|
4,415
|
|
|
$
|
188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
March 31, 2017
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Fair Value of Securities with
Contractual Maturities
|
||||||||||||||||||
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Within 1 Year
|
|
After 1 Year through 5 Years
|
|
After 5 Years through 10 Years
|
||||||||||||||
Automotive
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. government
|
$
|
3,104
|
|
|
$
|
1
|
|
|
$
|
(12
|
)
|
|
$
|
3,093
|
|
|
$
|
522
|
|
|
$
|
2,430
|
|
|
$
|
141
|
|
U.S. government agencies
|
1,959
|
|
|
—
|
|
|
(3
|
)
|
|
1,956
|
|
|
834
|
|
|
1,107
|
|
|
15
|
|
|||||||
Non-U.S. government and agencies
|
2,180
|
|
|
3
|
|
|
(8
|
)
|
|
2,175
|
|
|
248
|
|
|
1,927
|
|
|
—
|
|
|||||||
Corporate debt
|
1,063
|
|
|
—
|
|
|
—
|
|
|
1,063
|
|
|
1,063
|
|
|
—
|
|
|
—
|
|
|||||||
Total
|
$
|
8,306
|
|
|
$
|
4
|
|
|
$
|
(23
|
)
|
|
$
|
8,287
|
|
|
$
|
2,667
|
|
|
$
|
5,464
|
|
|
$
|
156
|
|
|
December 31, 2016
|
||||||||||||||||||||||
|
Less than 1 year
|
|
1 Year or Greater
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Automotive
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government
|
$
|
1,474
|
|
|
$
|
(14
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,474
|
|
|
$
|
(14
|
)
|
U.S. government agencies
|
261
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
261
|
|
|
(2
|
)
|
||||||
Non-U.S. government and agencies
|
1,137
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
1,137
|
|
|
(11
|
)
|
||||||
Corporate debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
2,872
|
|
|
$
|
(27
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,872
|
|
|
$
|
(27
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
March 31, 2017
|
||||||||||||||||||||||
|
Less than 1 year
|
|
1 Year or Greater
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
||||||||||||
Automotive
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government
|
$
|
1,547
|
|
|
$
|
(12
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,547
|
|
|
$
|
(12
|
)
|
U.S. government agencies
|
932
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
932
|
|
|
(3
|
)
|
||||||
Non-U.S. government and agencies
|
1,164
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
1,164
|
|
|
(8
|
)
|
||||||
Corporate debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
3,643
|
|
|
$
|
(23
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,643
|
|
|
$
|
(23
|
)
|
|
December 31,
2016 |
|
March 31,
2017 |
||||
Consumer
|
|
|
|
||||
Retail financing, gross
|
$
|
68,121
|
|
|
$
|
69,217
|
|
Unearned interest supplements
|
(2,783
|
)
|
|
(2,882
|
)
|
||
Consumer finance receivables
|
65,338
|
|
|
66,335
|
|
||
Non-Consumer
|
|
|
|
|
|
||
Dealer financing
|
31,336
|
|
|
33,481
|
|
||
Non-Consumer finance receivables
|
31,336
|
|
|
33,481
|
|
||
Total recorded investment
|
$
|
96,674
|
|
|
$
|
99,816
|
|
|
|
|
|
||||
Recorded investment in finance receivables
|
$
|
96,674
|
|
|
$
|
99,816
|
|
Allowance for credit losses
|
(484
|
)
|
|
(517
|
)
|
||
Finance receivables, net
|
$
|
96,190
|
|
|
$
|
99,299
|
|
|
|
|
|
||||
Current portion
|
$
|
46,266
|
|
|
$
|
48,605
|
|
Non-current portion
|
49,924
|
|
|
50,694
|
|
||
Finance receivables, net
|
$
|
96,190
|
|
|
$
|
99,299
|
|
|
|
|
|
||||
Net finance receivables subject to fair value (a)
|
$
|
94,066
|
|
|
$
|
97,042
|
|
Fair value
|
94,785
|
|
|
97,672
|
|
(a)
|
At
December 31, 2016
and
March 31, 2017
,
Finance receivables, net
includes
$2.1 billion
and
$2.3 billion
, respectively, of direct financing leases that are not subject to fair value disclosure requirements. The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy.
|
|
December 31,
2016 |
|
March 31,
2017 |
||||
Consumer
|
|
|
|
||||
31-60 days past due
|
$
|
760
|
|
|
$
|
654
|
|
61-90 days past due
|
114
|
|
|
85
|
|
||
91-120 days past due
|
34
|
|
|
29
|
|
||
Greater than 120 days past due
|
39
|
|
|
38
|
|
||
Total past due
|
947
|
|
|
806
|
|
||
Current
|
64,391
|
|
|
65,529
|
|
||
Consumer finance receivables
|
65,338
|
|
|
66,335
|
|
||
|
|
|
|
||||
Non-Consumer
|
|
|
|
||||
Total past due
|
107
|
|
|
106
|
|
||
Current
|
31,229
|
|
|
33,375
|
|
||
Non-Consumer finance receivables
|
31,336
|
|
|
33,481
|
|
||
Total recorded investment
|
$
|
96,674
|
|
|
$
|
99,816
|
|
•
|
Pass
– current to 60 days past due
|
•
|
Special Mention
– 61 to 120 days past due and in intensified collection status
|
•
|
Substandard
– greater than 120 days past due and for which the uncollectible portion of the receivables has already been charged off, as measured using the fair value of collateral less costs to sell
|
•
|
Group I
– strong to superior financial metrics
|
•
|
Group II
– fair to favorable financial metrics
|
•
|
Group III
– marginal to weak financial metrics
|
•
|
Group IV
– poor financial metrics, including dealers classified as uncollectible
|
|
December 31,
2016 |
|
March 31,
2017 |
||||
Dealer Financing
|
|
|
|
||||
Group I
|
$
|
24,315
|
|
|
$
|
25,935
|
|
Group II
|
5,552
|
|
|
5,952
|
|
||
Group III
|
1,376
|
|
|
1,445
|
|
||
Group IV
|
93
|
|
|
149
|
|
||
Total recorded investment
|
$
|
31,336
|
|
|
$
|
33,481
|
|
|
First Quarter 2016
|
||||||||||
|
Consumer
|
|
Non-Consumer
|
|
Total
|
||||||
Allowance for credit losses
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
357
|
|
|
$
|
16
|
|
|
$
|
373
|
|
Charge-offs
|
(102
|
)
|
|
1
|
|
|
(101
|
)
|
|||
Recoveries
|
29
|
|
|
1
|
|
|
30
|
|
|||
Provision for credit losses
|
102
|
|
|
1
|
|
|
103
|
|
|||
Other (a)
|
4
|
|
|
1
|
|
|
5
|
|
|||
Ending balance (b)
|
$
|
390
|
|
|
$
|
20
|
|
|
$
|
410
|
|
|
|
|
|
|
|
||||||
Analysis of ending balance of allowance for credit losses
|
|||||||||||
Collective impairment allowance
|
$
|
371
|
|
|
$
|
13
|
|
|
$
|
384
|
|
Specific impairment allowance
|
19
|
|
|
7
|
|
|
26
|
|
|||
Ending balance (b)
|
390
|
|
|
20
|
|
|
410
|
|
|||
|
|
|
|
|
|
||||||
Analysis of ending balance of finance receivables
|
|
|
|
|
|
||||||
Collectively evaluated for impairment
|
60,581
|
|
|
33,587
|
|
|
94,168
|
|
|||
Specifically evaluated for impairment
|
373
|
|
|
149
|
|
|
522
|
|
|||
Recorded investment
|
60,954
|
|
|
33,736
|
|
|
94,690
|
|
|||
|
|
|
|
|
|
||||||
Ending balance, net of allowance for credit losses
|
$
|
60,564
|
|
|
$
|
33,716
|
|
|
$
|
94,280
|
|
(a)
|
Primarily represents amounts related to translation adjustments.
|
(b)
|
Total allowance, including reserves for operating leases, was
$463 million
.
|
|
First Quarter 2017
|
||||||||||
|
Consumer
|
|
Non-Consumer
|
|
Total
|
||||||
Allowance for credit losses
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
469
|
|
|
$
|
15
|
|
|
$
|
484
|
|
Charge-offs
|
(123
|
)
|
|
(2
|
)
|
|
(125
|
)
|
|||
Recoveries
|
34
|
|
|
—
|
|
|
34
|
|
|||
Provision for credit losses
|
121
|
|
|
—
|
|
|
121
|
|
|||
Other (a)
|
3
|
|
|
—
|
|
|
3
|
|
|||
Ending balance (b)
|
$
|
504
|
|
|
$
|
13
|
|
|
$
|
517
|
|
|
|
|
|
|
|
||||||
Analysis of ending balance of allowance for credit losses
|
|||||||||||
Collective impairment allowance
|
$
|
483
|
|
|
$
|
13
|
|
|
$
|
496
|
|
Specific impairment allowance
|
21
|
|
|
—
|
|
|
21
|
|
|||
Ending balance (b)
|
504
|
|
|
13
|
|
|
517
|
|
|||
|
|
|
|
|
|
||||||
Analysis of ending balance of finance receivables
|
|
|
|
|
|
||||||
Collectively evaluated for impairment
|
65,950
|
|
|
33,317
|
|
|
99,267
|
|
|||
Specifically evaluated for impairment
|
385
|
|
|
164
|
|
|
549
|
|
|||
Recorded investment
|
66,335
|
|
|
33,481
|
|
|
99,816
|
|
|||
|
|
|
|
|
|
||||||
Ending balance, net of allowance for credit losses
|
$
|
65,831
|
|
|
$
|
33,468
|
|
|
$
|
99,299
|
|
(a)
|
Primarily represents amounts related to translation adjustments.
|
(b)
|
Total allowance, including reserves for operating leases, was
$584 million
.
|
|
December 31,
2016 |
|
March 31,
2017 |
||||
Raw materials, work-in-process, and supplies
|
$
|
3,843
|
|
|
$
|
4,240
|
|
Finished products
|
5,943
|
|
|
7,190
|
|
||
Total inventories under FIFO
|
9,786
|
|
|
11,430
|
|
||
LIFO adjustment
|
(888
|
)
|
|
(895
|
)
|
||
Total inventories
|
$
|
8,898
|
|
|
$
|
10,535
|
|
|
December 31,
2016 |
|
March 31,
2017 |
||||
Current
|
|
|
|
||||
Dealer and dealers’ customer allowances and claims
|
$
|
9,542
|
|
|
$
|
10,732
|
|
Deferred revenue
|
3,866
|
|
|
1,902
|
|
||
Employee benefit plans
|
1,469
|
|
|
1,287
|
|
||
Accrued interest
|
974
|
|
|
848
|
|
||
OPEB (a)
|
349
|
|
|
349
|
|
||
Pension (a)
|
247
|
|
|
247
|
|
||
Other
|
2,869
|
|
|
3,425
|
|
||
Total current other liabilities and deferred revenue
|
$
|
19,316
|
|
|
$
|
18,790
|
|
Non-current
|
|
|
|
|
|
||
Pension (a)
|
$
|
10,150
|
|
|
$
|
10,013
|
|
OPEB (a)
|
5,516
|
|
|
5,504
|
|
||
Dealer and dealers’ customer allowances and claims
|
2,564
|
|
|
2,788
|
|
||
Deferred revenue
|
3,687
|
|
|
3,699
|
|
||
Employee benefit plans
|
1,063
|
|
|
1,065
|
|
||
Other
|
1,415
|
|
|
1,514
|
|
||
Total non-current other liabilities and deferred revenue
|
$
|
24,395
|
|
|
$
|
24,583
|
|
(a)
|
Balances at
March 31, 2017
reflect pension and OPEB liabilities at
December 31, 2016
, updated (where applicable) for service and interest cost, expected return on assets, separation expense, actual benefit payments, and cash contributions. The discount rate and rate of expected return assumptions are unchanged from year-end
2016
. Included in
Other assets
are pension assets of
$1.5 billion
and
$1.8 billion
at
December 31, 2016
and
March 31, 2017
, respectively.
|
|
First Quarter
|
||||||||||||||||||||||
|
Pension Benefits
|
|
|
|
|
||||||||||||||||||
|
U.S. Plans
|
|
Non-U.S. Plans
|
|
Worldwide OPEB
|
||||||||||||||||||
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
||||||||||||
Service cost
|
$
|
128
|
|
|
$
|
133
|
|
|
$
|
118
|
|
|
$
|
134
|
|
|
$
|
12
|
|
|
$
|
12
|
|
Interest cost
|
381
|
|
|
381
|
|
|
195
|
|
|
159
|
|
|
48
|
|
|
49
|
|
||||||
Expected return on assets
|
(673
|
)
|
|
(683
|
)
|
|
(339
|
)
|
|
(330
|
)
|
|
—
|
|
|
—
|
|
||||||
Amortization of prior service costs/(credits)
|
42
|
|
|
36
|
|
|
10
|
|
|
9
|
|
|
(35
|
)
|
|
(30
|
)
|
||||||
Separation programs/other
|
—
|
|
|
3
|
|
|
7
|
|
|
16
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic benefit cost/(income)
|
$
|
(122
|
)
|
|
$
|
(130
|
)
|
|
$
|
(9
|
)
|
|
$
|
(12
|
)
|
|
$
|
25
|
|
|
$
|
31
|
|
Automotive Segment
|
December 31,
2016 |
|
March 31,
2017 |
||||
Debt payable within one year
|
|
|
|
||||
Short-term
|
$
|
1,324
|
|
|
$
|
1,320
|
|
Long-term payable within one year
|
|
|
|
|
|
||
U.S. Department of Energy Advanced Technology Vehicles Manufacturing Incentive Program
|
591
|
|
|
591
|
|
||
Other debt
|
827
|
|
|
1,237
|
|
||
Unamortized (discount)/premium
|
(57
|
)
|
|
(48
|
)
|
||
Total debt payable within one year
|
2,685
|
|
|
3,100
|
|
||
Long-term debt payable after one year
|
|
|
|
|
|
||
Public unsecured debt securities
|
9,394
|
|
|
9,394
|
|
||
DOE ATVM Incentive Program
|
2,651
|
|
|
2,504
|
|
||
Other debt
|
1,573
|
|
|
1,620
|
|
||
Adjustments
|
|
|
|
||||
Unamortized (discount)/premium
|
(320
|
)
|
|
(328
|
)
|
||
Unamortized issuance costs
|
(76
|
)
|
|
(80
|
)
|
||
Total long-term debt payable after one year
|
13,222
|
|
|
13,110
|
|
||
Total Automotive Segment
|
$
|
15,907
|
|
|
$
|
16,210
|
|
|
|
|
|
||||
Fair value of Automotive Segment debt (a)
|
$
|
17,433
|
|
|
$
|
17,781
|
|
|
|
|
|
||||
Financial Services Segment
|
|
|
|
|
|
||
Debt payable within one year
|
|
|
|
|
|
||
Short-term
|
$
|
15,330
|
|
|
$
|
16,165
|
|
Long-term payable within one year
|
|
|
|
|
|
||
Unsecured debt
|
12,369
|
|
|
11,777
|
|
||
Asset-backed debt
|
19,286
|
|
|
18,228
|
|
||
Adjustments
|
|
|
|
||||
Unamortized (discount)/premium
|
(2
|
)
|
|
(1
|
)
|
||
Unamortized issuance costs
|
(16
|
)
|
|
(16
|
)
|
||
Fair value adjustments (b)
|
17
|
|
|
4
|
|
||
Total debt payable within one year
|
46,984
|
|
|
46,157
|
|
||
Long-term debt payable after one year
|
|
|
|
||||
Unsecured debt
|
49,912
|
|
|
53,495
|
|
||
Asset-backed debt
|
30,112
|
|
|
30,155
|
|
||
Adjustments
|
|
|
|
||||
Unamortized (discount)/premium
|
(9
|
)
|
|
(10
|
)
|
||
Unamortized issuance costs
|
(197
|
)
|
|
(210
|
)
|
||
Fair value adjustments (b)
|
261
|
|
|
180
|
|
||
Total long-term debt payable after one year
|
80,079
|
|
|
83,610
|
|
||
Total Financial Services Segment
|
$
|
127,063
|
|
|
$
|
129,767
|
|
|
|
|
|
||||
Fair value of Financial Services Segment debt (a)
|
$
|
128,777
|
|
|
$
|
132,499
|
|
(a)
|
The fair value of debt includes
$1.1 billion
and
$1.1 billion
of Automotive segment short-term debt and
$14.3 billion
and
$15.6 billion
of Financial Services segment short-term debt at
December 31, 2016
and
March 31, 2017
, respectively, carried at cost, which approximates fair value. All other debt is categorized within Level 2 of the fair value hierarchy.
|
(b)
|
Adjustments related to designated fair value hedges of unsecured debt.
|
|
First Quarter
|
||||||
|
2016
|
|
2017
|
||||
Cash flow hedges (a)
|
|
|
|
||||
Reclassified from AOCI to net income
|
$
|
87
|
|
|
$
|
118
|
|
Fair value hedges
|
|
|
|
||||
Interest rate contracts
|
|
|
|
||||
Net interest settlements and accruals excluded from the assessment of hedge effectiveness
|
99
|
|
|
70
|
|
||
Ineffectiveness (b)
|
17
|
|
|
(4
|
)
|
||
Derivatives not designated as hedging instruments
|
|
|
|
||||
Foreign currency exchange contracts
|
(139
|
)
|
|
(208
|
)
|
||
Cross-currency interest rate swap contracts
|
195
|
|
|
58
|
|
||
Interest rate contracts
|
(48
|
)
|
|
7
|
|
||
Commodity contracts
|
(5
|
)
|
|
42
|
|
||
Total
|
$
|
206
|
|
|
$
|
83
|
|
(a)
|
For the
first quarter
of
2016
and
2017
, a
$363 million
gain
and a
$112 million
loss
, respectively, were recorded in
Other comprehensive income.
|
(b)
|
For the
first quarter
of
2016
and
2017
, hedge ineffectiveness reflects the net change in fair value on derivatives of
$610 million
gain
and
$89 million
loss
, respectively, and a change in value on hedged debt attributable to the change in benchmark interest rates of
$593 million
loss
and
$85 million
gain
, respectively.
|
|
December 31, 2016
|
|
March 31, 2017
|
||||||||||||||||||||
|
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
|
$
|
19,091
|
|
|
$
|
620
|
|
|
$
|
257
|
|
|
$
|
18,641
|
|
|
$
|
370
|
|
|
$
|
238
|
|
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate contracts
|
33,175
|
|
|
487
|
|
|
80
|
|
|
35,904
|
|
|
372
|
|
|
175
|
|
||||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Foreign currency exchange contracts
|
17,227
|
|
|
379
|
|
|
194
|
|
|
17,923
|
|
|
201
|
|
|
235
|
|
||||||
Cross-currency interest rate swap contracts
|
3,201
|
|
|
242
|
|
|
8
|
|
|
3,230
|
|
|
298
|
|
|
—
|
|
||||||
Interest rate contracts
|
61,689
|
|
|
156
|
|
|
74
|
|
|
56,414
|
|
|
136
|
|
|
71
|
|
||||||
Commodity contracts
|
531
|
|
|
11
|
|
|
6
|
|
|
544
|
|
|
44
|
|
|
2
|
|
||||||
Total derivative financial instruments, gross (a) (b)
|
$
|
134,914
|
|
|
$
|
1,895
|
|
|
$
|
619
|
|
|
$
|
132,656
|
|
|
$
|
1,421
|
|
|
$
|
721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current portion
|
|
|
$
|
1,108
|
|
|
$
|
371
|
|
|
|
|
$
|
811
|
|
|
$
|
368
|
|
||||
Non-current portion
|
|
|
787
|
|
|
248
|
|
|
|
|
610
|
|
|
353
|
|
||||||||
Total derivative financial instruments, gross
|
|
|
$
|
1,895
|
|
|
$
|
619
|
|
|
|
|
$
|
1,421
|
|
|
$
|
721
|
|
(a)
|
At
December 31, 2016
and
March 31, 2017
, we held collateral of
$15 million
and
$19 million
, and we posted collateral of
$12 million
and
$10 million
, respectively.
|
(b)
|
At
December 31, 2016
and
March 31, 2017
, the fair value of assets and liabilities available for counterparty netting was
$554 million
and
$564 million
, respectively
.
All derivatives are categorized within Level 2 of the fair value hierarchy.
|
|
First Quarter
|
||||||
|
2016
|
|
2017
|
||||
Foreign currency translation
|
|
|
|
||||
Beginning balance
|
$
|
(3,570
|
)
|
|
$
|
(4,593
|
)
|
Gains/(Losses) on foreign currency translation
|
(30
|
)
|
|
189
|
|
||
Less: Tax/(Tax benefit)
|
—
|
|
|
(54
|
)
|
||
Net gains/(losses) on foreign currency translation
|
(30
|
)
|
|
243
|
|
||
(Gains)/Losses reclassified from AOCI to net income (a)
|
(33
|
)
|
|
—
|
|
||
Other comprehensive income/(loss), net of tax
|
(63
|
)
|
|
243
|
|
||
Ending balance
|
$
|
(3,633
|
)
|
|
$
|
(4,350
|
)
|
|
|
|
|
||||
Marketable securities
|
|
|
|
||||
Beginning balance
|
$
|
(6
|
)
|
|
$
|
(14
|
)
|
Gains/(Losses) on available for sale securities
|
11
|
|
|
1
|
|
||
Less: Tax/(Tax benefit)
|
—
|
|
|
3
|
|
||
Net gains/(losses) on available for sale securities
|
11
|
|
|
(2
|
)
|
||
(Gains)/Losses reclassified from AOCI to net income
|
(1
|
)
|
|
1
|
|
||
Less: Tax/(Tax benefit)
|
4
|
|
|
—
|
|
||
Net (gains)/losses reclassified from AOCI to net income
|
(5
|
)
|
|
1
|
|
||
Other comprehensive income/(loss), net of tax
|
6
|
|
|
(1
|
)
|
||
Ending balance
|
$
|
—
|
|
|
$
|
(15
|
)
|
|
|
|
|
||||
Derivative instruments
|
|
|
|
||||
Beginning balance
|
$
|
64
|
|
|
$
|
283
|
|
Gains/(Losses) on derivative instruments
|
363
|
|
|
(112
|
)
|
||
Less: Tax/(Tax benefit)
|
59
|
|
|
(34
|
)
|
||
Net gains/(losses) on derivative instruments
|
304
|
|
|
(78
|
)
|
||
(Gains)/Losses reclassified from AOCI to net income
|
(87
|
)
|
|
(118
|
)
|
||
Less: Tax/(Tax benefit)
|
(29
|
)
|
|
(29
|
)
|
||
Net (gains)/losses reclassified from AOCI to net income (b)
|
(58
|
)
|
|
(89
|
)
|
||
Other comprehensive income/(loss), net of tax
|
246
|
|
|
(167
|
)
|
||
Ending balance
|
$
|
310
|
|
|
$
|
116
|
|
|
|
|
|
||||
Pension and other postretirement benefits
|
|
|
|
||||
Beginning balance
|
$
|
(2,745
|
)
|
|
$
|
(2,689
|
)
|
Amortization and recognition of prior service costs/(credits)
|
17
|
|
|
15
|
|
||
Less: Tax/(Tax benefit)
|
3
|
|
|
5
|
|
||
Net prior service costs/(credits) reclassified from AOCI to net income
|
14
|
|
|
10
|
|
||
Translation impact on non-U.S. plans
|
8
|
|
|
(1
|
)
|
||
Other comprehensive income/(loss), net of tax
|
22
|
|
|
9
|
|
||
Ending balance
|
$
|
(2,723
|
)
|
|
$
|
(2,680
|
)
|
|
|
|
|
||||
Total AOCI ending balance at March 31
|
$
|
(6,046
|
)
|
|
$
|
(6,929
|
)
|
(a)
|
Reclassified to
Non-Financial Services other income/(loss), net.
|
(b)
|
Reclassified to
Cost of sales
. During the next twelve months we expect to reclassify existing net
losses
on cash flow hedges of
$189 million
. See Note
14
for additional information.
|
|
December 31,
2016 |
|
March 31,
2017 |
||||
Maximum potential payments
|
$
|
177
|
|
|
$
|
1,373
|
|
Carrying value of recorded liabilities related to guarantees and limited indemnities
|
23
|
|
|
396
|
|
|
First Quarter
|
||||||
|
2016
|
|
2017
|
||||
Beginning balance
|
$
|
4,558
|
|
|
$
|
4,960
|
|
Payments made during the period
|
(797
|
)
|
|
(840
|
)
|
||
Changes in accrual related to warranties issued during the period
|
612
|
|
|
608
|
|
||
Changes in accrual related to pre-existing warranties
|
59
|
|
|
475
|
|
||
Foreign currency translation and other
|
52
|
|
|
34
|
|
||
Ending balance
|
$
|
4,484
|
|
|
$
|
5,237
|
|
|
Automotive
|
|
Financial
Services
|
|
All Other
|
|
Special
Items
|
|
Adjustments
|
|
Total
|
||||||||||||
First Quarter 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenues
|
$
|
35,257
|
|
|
$
|
2,461
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
37,718
|
|
Pre-tax results - income/(loss)
|
3,464
|
|
|
499
|
|
|
(126
|
)
|
|
(186
|
)
|
|
—
|
|
|
3,651
|
|
||||||
Equity in net income/(loss) of affiliated companies
|
534
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
541
|
|
||||||
Cash, cash equivalents, and marketable securities
|
24,251
|
|
|
15,222
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39,473
|
|
||||||
Total assets
|
96,263
|
|
|
145,920
|
|
|
—
|
|
|
—
|
|
|
(4,895
|
)
|
(a)
|
237,288
|
|
||||||
Debt
|
13,022
|
|
|
127,973
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
140,995
|
|
||||||
Operating cash flows
|
2,727
|
|
|
525
|
|
|
—
|
|
|
—
|
|
|
897
|
|
(b)
|
4,149
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
First Quarter 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenues
|
$
|
36,475
|
|
|
$
|
2,669
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
39,146
|
|
Pre-tax results - income/(loss)
|
1,965
|
|
|
466
|
|
|
(212
|
)
|
|
24
|
|
|
—
|
|
|
2,243
|
|
||||||
Equity in net income/(loss) of affiliated companies
|
340
|
|
|
7
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
346
|
|
||||||
Cash, cash equivalents, and marketable securities
|
28,028
|
|
|
11,955
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
39,989
|
|
||||||
Total assets
|
101,092
|
|
|
149,648
|
|
|
76
|
|
|
—
|
|
|
(6,722
|
)
|
(a)
|
244,094
|
|
||||||
Debt
|
16,210
|
|
|
129,767
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
145,977
|
|
||||||
Operating cash flows
|
2,016
|
|
|
1,084
|
|
|
(10
|
)
|
|
—
|
|
|
1,246
|
|
(b)
|
4,336
|
|
(a)
|
Includes eliminations of intersegment transactions occurring in the ordinary course of business and deferred tax netting.
|
(b)
|
We measure and evaluate our Automotive segment operating cash flow on a different basis than
Net cash provided by/(used in) operating activities
in our consolidated statement of cash flows. Automotive segment operating cash flow includes additional elements management considers to be related to our Automotive operating activities, primarily capital spending and non-designated derivatives, and excludes outflows for funded pension contributions, separation payments, and other items that are considered operating cash flows under U.S. GAAP. The table below quantifies these reconciling adjustments to
Net cash provided by/(used in) operating activities
for the periods ended
March 31
(in millions):
|
|
|
First Quarter
|
||||||
|
|
2016
|
|
2017
|
||||
|
Automotive capital spending
|
$
|
1,497
|
|
|
$
|
1,696
|
|
|
Net cash flows from non-designated derivatives
|
(117
|
)
|
|
(134
|
)
|
||
|
Funded pension contributions
|
(368
|
)
|
|
(236
|
)
|
||
|
Separation payments
|
(10
|
)
|
|
(28
|
)
|
||
|
Other
|
(105
|
)
|
|
(52
|
)
|
||
|
Total operating cash flow adjustments
|
$
|
897
|
|
|
$
|
1,246
|
|
•
|
Total Company Adjusted Pre-tax Profit (Most Comparable GAAP Measure: Net Income Attributable to Ford)
– The non-GAAP measure is useful to management and investors because it allows users to evaluate our pre-tax results excluding pre-tax special items. Pre-tax special items consist of (i) pension and other postretirement employee benefits (“OPEB”) remeasurement gains and losses that are not reflective of our underlying business results, (ii) significant restructuring actions related to our efforts to match production capacity and cost structure to market demand and changing model mix, and (iii) other items that we do not necessarily consider to be indicative of earnings from ongoing operating activities. When we provide guidance for adjusted pre-tax profit, we do not provide guidance on a net income basis because the GAAP measure will include potentially significant special items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end, specifically pension and OPEB remeasurement gains and losses.
|
•
|
Adjusted Earnings Per Share (Most Comparable GAAP Measure: Earnings Per Share)
– Measure of Company’s diluted net earnings per share adjusted for impact of pre-tax special items (described above) and tax special items. The measure provides investors with useful information to evaluate performance of our business excluding items not indicative of the underlying run rate of our business. When we provide guidance for adjusted earnings per share, we do not provide guidance on an earnings per share basis because the GAAP measure will include potentially significant special items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end, specifically pension and OPEB remeasurement gains and losses.
|
•
|
Adjusted Effective Tax Rate (Most Comparable GAAP Measure: Effective Tax Rate)
– Measure of Company’s tax rate excluding pre-tax special items (described above) and tax special items. The measure provides an ongoing effective rate which investors find useful for historical comparisons and for forecasting. When we provide guidance for adjusted effective tax rate, we do not provide guidance on an effective tax rate basis because the GAAP measure will include potentially significant special items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end, specifically pension and OPEB remeasurement gains and losses.
|
•
|
Ford Credit Managed Receivables (Most Comparable GAAP Measure: Net Finance Receivables plus Net Investment in Operating Leases)
– Measure of Ford Credit’s total net receivables, excluding unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation). The measure is useful to management and investors as it closely approximates the customer’s outstanding balance on the receivables, which is the basis for earning revenue.
|
•
|
Ford Credit Managed Leverage (Most Comparable GAAP Measure: Financial Statement Leverage)
– Ford Credit’s debt-to-equity ratio adjusted (i) to exclude cash, cash equivalents, and marketable securities (other than amounts related to insurance activities), and (ii) for derivative accounting. The measure is useful to investors because it reflects the way Ford Credit manages its business. Cash, cash equivalents, and marketable securities are deducted because they generally correspond to excess debt beyond the amount required to support operations and on-balance sheet securitization transactions. Derivative accounting adjustments are made to asset, debt, and equity positions to reflect the impact of interest rate instruments used with Ford Credit’s term-debt issuances and securitization transactions. Ford Credit generally repays its debt obligations as they mature, so the interim effects of changes in market interest rates are excluded in the calculation of managed leverage.
|
|
First Quarter
|
||
|
2017
Lower/(Higher)
2016
|
||
Volume and mix, exchange, and other
|
$
|
(1.3
|
)
|
Contribution costs
|
|
||
Material excluding commodities
|
(0.2
|
)
|
|
Commodities
|
(0.2
|
)
|
|
Warranty and other
|
(0.4
|
)
|
|
Structural costs
|
(0.4
|
)
|
|
Special items
|
0.2
|
|
|
Total
|
$
|
(2.3
|
)
|
|
Increase/(Decrease)
|
||
Net income
|
$
|
1.6
|
|
Dividends
|
(0.8
|
)
|
|
Other comprehensive income
|
0.1
|
|
|
Adoption of accounting standards
|
0.6
|
|
|
Total
|
$
|
1.5
|
|
•
|
Market Factors
:
|
◦
|
Volume and Mix
– primarily measures profit variance from changes in wholesale volumes (at prior-year average contribution margin per unit) driven by changes in industry volume, market share, and dealer stocks, as well as the profit variance resulting from changes in product mix, including mix among vehicle lines and mix of trim levels and options within a vehicle line
|
◦
|
Net Pricing
– primarily measures profit variance driven by changes in wholesale prices to dealers and marketing incentive programs such as rebate programs, low-rate financing offers, special lease offers, and stock adjustments on dealer inventory
|
•
|
Contribution Costs
– primarily measures profit variance driven by per-unit changes in cost categories that typically vary with volume, such as material costs (including commodity and component costs), warranty expense, and freight and duty costs
|
•
|
Structural Costs
– primarily measures profit variance driven by absolute change in cost categories that typically do not have a directly proportionate relationship to production volume. Structural costs include the following cost categories:
|
◦
|
Manufacturing, Including Volume Related
–
consists primarily of costs for hourly and salaried manufacturing personnel, plant overhead (such as utilities and taxes), and new product launch expense. These costs could be affected by volume for operating pattern actions such as overtime, line-speed, and shift schedules
|
◦
|
Engineering
–
consists primarily of costs for engineering personnel, prototype materials, testing, and outside engineering services
|
◦
|
Spending-Related
–
consists primarily of depreciation and amortization of our manufacturing and engineering assets, but also includes asset retirements and operating leases
|
◦
|
Advertising and Sales Promotions
–
includes costs for advertising, marketing programs, brand promotions, customer mailings and promotional events, and auto shows
|
◦
|
Administrative and Selling
–
includes primarily costs for salaried personnel and purchased services related to our staff activities and selling functions, as well as associated information technology costs
|
◦
|
Pension and OPEB
–
consists primarily of past service pension costs and other postretirement employee benefit costs
|
•
|
Exchange
– primarily measures profit variance driven by one or more of the following: (i) transactions denominated in currencies other than the functional currencies of the relevant entities, (ii) effects of converting functional currency income to U.S. dollars, (iii) effects of remeasuring monetary assets and liabilities of the relevant entities in currencies other than their functional currency, or (iv) results of our foreign currency hedging
|
•
|
Other
–
includes a variety of items, such as parts and services profits, royalties, government incentives and compensation-related changes
|
•
|
Wholesales and Revenue
– wholesale unit volumes include all Ford and Lincoln badged units (whether produced by Ford or by an unconsolidated affiliate) that are sold to dealerships, units manufactured by Ford that are sold to other manufacturers, units distributed by Ford for other manufacturers, and local brand units produced by our China joint venture, Jiangling Motors Corporation, Ltd. (“JMC”), that are sold to dealerships. Vehicles sold to daily rental car companies that are subject to a guaranteed repurchase option (i.e., rental repurchase), as well as other sales of finished vehicles for which the recognition of revenue is deferred (e.g., consignments), also are included in wholesale unit volumes. Revenue from certain vehicles in wholesale unit volumes (specifically, Ford badged vehicles produced and distributed by our unconsolidated affiliates, as well as JMC brand vehicles) are not included in our revenue
|
•
|
Automotive Segment Operating Margin
– defined as Automotive segment pre-tax profit divided by Automotive segment revenue
|
•
|
Industry Volume and Market Share
– based, in part, on estimated vehicle registrations; includes medium and heavy duty trucks
|
•
|
Automotive Cash
– includes cash, cash equivalents, and marketable securities
|
•
|
SAAR
– seasonally adjusted annual rate
|
•
|
Volume and Mix:
|
◦
|
Volume primarily measures changes in net financing margin driven by changes in average managed receivables at prior period financing margin yield (defined below in financing margin) at prior period exchange rates. Volume changes are primarily driven by the volume of new and used vehicle sales and leases, the extent to which Ford Credit purchases retail installment sale and lease contracts, the extent to which Ford Credit provides wholesale financing, the sales price of the vehicles financed, the level of dealer inventories, Ford-sponsored special financing programs available exclusively through Ford Credit, and the availability of cost-effective funding for the purchase of retail installment sale and lease contracts and to provide wholesale financing
|
◦
|
Mix primarily measures changes in net financing margin driven by period over period changes in the composition of Ford Credit’s average managed receivables by product and by country or region
|
◦
|
Financing margin variance is the period-to-period change in financing margin yield multiplied by the present period average managed receivables at prior period exchange rates. This calculation is performed at the product and country level and then aggregated. Financing margin yield equals revenue, less interest expense and scheduled depreciation for the period, divided by average managed receivables for the same period
|
◦
|
Financing margin changes are driven by changes in revenue and interest expense. Changes in revenue are primarily driven by the level of market interest rates, cost assumptions in pricing, mix of business, and competitive environment. Changes in interest expense are primarily driven by the level of market interest rates, borrowing spreads, and asset-liability management
|
•
|
Credit Loss:
|
◦
|
Credit loss is the change in the provision for credit losses at prior period exchange rates. For analysis purposes, management splits the provision for credit losses into net charge-offs and the change in the allowance for credit losses
|
◦
|
Net charge-off changes are primarily driven by the number of repossessions, severity per repossession, and recoveries. Changes in the allowance for credit losses are primarily driven by changes in historical trends in credit losses and recoveries, changes in the composition and size of Ford Credit’s present portfolio, changes in trends in historical used vehicle values, and changes in economic conditions. For additional information on the allowance for credit losses, refer to the “Critical Accounting Estimates
-
Allowance for Credit Losses” section of Item 7 of Part II of our 2016 Form 10-K Report
|
•
|
Lease Residual:
|
◦
|
Lease residual measures changes to residual performance at prior period exchange rates. For analysis purposes, management splits residual performance primarily into residual gains and losses, and the change in accumulated supplemental depreciation
|
◦
|
Residual gain and loss changes are primarily driven by the number of vehicles returned to Ford Credit and sold, and the difference between the auction value and the depreciated value (which includes both base and accumulated supplemental depreciation) of the vehicles sold. Changes in accumulated supplemental depreciation are primarily driven by changes in Ford Credit’s estimate of the expected auction value at the end of the lease term, and changes in the estimate of the number of vehicles that will be returned to it and sold. For additional information on accumulated supplemental depreciation, refer to the “Critical Accounting Estimates
-
Accumulated Depreciation on Vehicles Subject to Operating Leases” section of Item 7 of Part II of our 2016 Form 10-K Report
|
•
|
Exchange:
|
◦
|
Reflects changes in pre-tax results driven by the effects of converting functional currency income to U.S. dollars
|
•
|
Other:
|
◦
|
Primarily includes operating expenses, other revenue, and insurance expenses at prior period exchange rates
|
◦
|
Changes in operating expenses are primarily driven by salaried personnel costs, facilities costs, and costs associated with the origination and servicing of customer contracts
|
◦
|
In general, other revenue changes are primarily driven by changes in earnings related to market valuation adjustments to derivatives (primarily related to movements in interest rates) and other miscellaneous items
|
•
|
Cash
(as shown on the Funding Structure, Liquidity Sources, and Leverage charts) – Cash, cash equivalents, and marketable securities, excluding amounts related to insurance activities
|
•
|
Securitizations
(as shown on the Public Term Funding Plan chart) – Public securitizations, Rule 144A offerings sponsored by Ford Motor Credit, and widely distributed offerings by Ford Credit Canada
|
•
|
Term Asset-Backed Securities
(as shown on the Funding Structure chart) – Obligations issued in securitization transactions that are payable only out of collections on the underlying securitized assets and related enhancements
|
•
|
Total Debt
(as shown on the Leverage chart) – Debt on Ford Credit’s balance sheet. Includes debt issued in securitizations and payable only out of collections on the underlying securitized assets and related enhancements. Ford Credit holds the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions
|
•
|
DBRS Limited (“DBRS”);
|
•
|
Fitch, Inc. (“Fitch”);
|
•
|
Moody’s Investors Service, Inc. (“Moody’s”); and
|
•
|
Standard & Poor’s Ratings Services, a division of McGraw Hill Financial (“S&P”).
|
|
NRSRO RATINGS
|
||||||||||||
|
Ford
|
|
Ford Credit
|
|
NRSROs
|
||||||||
|
Issuer
Default /
Corporate /
Issuer Rating
|
|
Long-Term Senior Unsecured
|
|
Outlook / Trend
|
|
Long-Term Senior Unsecured
|
|
Short-Term
Unsecured
|
|
Outlook / Trend
|
|
Minimum Long-Term Investment Grade Rating
|
DBRS
|
BBB
|
|
BBB
|
|
Stable
|
|
BBB
|
|
R-2M
|
|
Stable
|
|
BBB (low)
|
Fitch
|
BBB
|
|
BBB
|
|
Stable
|
|
BBB
|
|
F2
|
|
Stable
|
|
BBB-
|
Moody’s
|
N/A
|
|
Baa2
|
|
Stable
|
|
Baa2
|
|
P-2
|
|
Stable
|
|
Baa3
|
S&P
|
BBB
|
|
BBB
|
|
Stable
|
|
BBB
|
|
A-2
|
|
Stable
|
|
BBB-
|
|
|
For the period ended March 31, 2017
|
||||||||||||||
|
|
Automotive
|
|
Financial
Services
|
|
All Other, Special Items, & Adjustments
|
|
Consolidated
|
||||||||
Revenues
|
|
$
|
36,475
|
|
|
$
|
2,669
|
|
|
$
|
2
|
|
|
$
|
39,146
|
|
Total costs and expenses
|
|
35,480
|
|
|
2,232
|
|
|
(8
|
)
|
|
37,704
|
|
||||
Interest expense on Automotive debt
|
|
—
|
|
|
—
|
|
|
279
|
|
|
279
|
|
||||
Other income/(loss), net
|
|
630
|
|
|
22
|
|
|
82
|
|
|
734
|
|
||||
Equity in net income of affiliated companies
|
|
340
|
|
|
7
|
|
|
(1
|
)
|
|
346
|
|
||||
Income/(loss) before income taxes
|
|
1,965
|
|
|
466
|
|
|
(188
|
)
|
|
2,243
|
|
||||
Provision for/(Benefit from) income taxes
|
|
560
|
|
|
148
|
|
|
(59
|
)
|
|
649
|
|
||||
Net income/(loss)
|
|
$
|
1,405
|
|
|
$
|
318
|
|
|
$
|
(129
|
)
|
|
$
|
1,594
|
|
|
|
March 31, 2017
|
||||||||||||||
Assets
|
|
Automotive
|
|
Financial
Services
|
|
All Other, Special Items, & Adjustments
|
|
Consolidated
|
||||||||
Cash and cash equivalents
|
|
$
|
9,549
|
|
|
$
|
8,268
|
|
|
$
|
6
|
|
|
$
|
17,823
|
|
Marketable securities
|
|
18,479
|
|
|
3,687
|
|
|
—
|
|
|
22,166
|
|
||||
Financial Services finance receivables, net
|
|
—
|
|
|
48,605
|
|
|
—
|
|
|
48,605
|
|
||||
Trade and other receivables, less allowances
|
|
4,618
|
|
|
6,067
|
|
|
—
|
|
|
10,685
|
|
||||
Inventories
|
|
10,535
|
|
|
—
|
|
|
—
|
|
|
10,535
|
|
||||
Other assets
|
|
2,483
|
|
|
931
|
|
|
—
|
|
|
3,414
|
|
||||
Receivable from other segments
|
|
13
|
|
|
1,855
|
|
|
(1,868
|
)
|
|
—
|
|
||||
Total current assets
|
|
45,677
|
|
|
69,413
|
|
|
(1,862
|
)
|
|
113,228
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Financial Services finance receivables, net
|
|
—
|
|
|
50,694
|
|
|
—
|
|
|
50,694
|
|
||||
Net investment in operating leases
|
|
1,486
|
|
|
26,428
|
|
|
—
|
|
|
27,914
|
|
||||
Net property
|
|
32,504
|
|
|
161
|
|
|
3
|
|
|
32,668
|
|
||||
Equity in net assets of affiliated companies
|
|
3,463
|
|
|
165
|
|
|
14
|
|
|
3,642
|
|
||||
Deferred income taxes
|
|
13,639
|
|
|
206
|
|
|
(3,790
|
)
|
|
10,055
|
|
||||
Other assets
|
|
4,323
|
|
|
1,517
|
|
|
53
|
|
|
5,893
|
|
||||
Receivable from other segments
|
|
—
|
|
|
1,064
|
|
|
(1,064
|
)
|
|
—
|
|
||||
Total assets
|
|
$
|
101,092
|
|
|
$
|
149,648
|
|
|
$
|
(6,646
|
)
|
|
$
|
244,094
|
|
Liabilities
|
|
Automotive
|
|
Financial
Services
|
|
All Other, Special Items, & Adjustments
|
|
Consolidated
|
||||||||
Payables
|
|
$
|
22,146
|
|
|
$
|
1,110
|
|
|
$
|
1
|
|
|
$
|
23,257
|
|
Other liabilities and deferred revenue
|
|
17,802
|
|
|
976
|
|
|
12
|
|
|
18,790
|
|
||||
Automotive debt payable within one year
|
|
3,100
|
|
|
—
|
|
|
—
|
|
|
3,100
|
|
||||
Financial Services debt payable within one year
|
|
—
|
|
|
46,157
|
|
|
—
|
|
|
46,157
|
|
||||
Payable to other segments
|
|
1,852
|
|
|
—
|
|
|
(1,852
|
)
|
|
—
|
|
||||
Total current liabilities
|
|
44,900
|
|
|
48,243
|
|
|
(1,839
|
)
|
|
91,304
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities and deferred revenue
|
|
23,493
|
|
|
1,087
|
|
|
3
|
|
|
24,583
|
|
||||
Automotive long-term debt
|
|
13,110
|
|
|
—
|
|
|
—
|
|
|
13,110
|
|
||||
Financial Services long-term debt
|
|
—
|
|
|
83,610
|
|
|
—
|
|
|
83,610
|
|
||||
Deferred income taxes
|
|
183
|
|
|
4,356
|
|
|
(3,790
|
)
|
|
749
|
|
||||
Payable to other segments
|
|
1,064
|
|
|
—
|
|
|
(1,064
|
)
|
|
—
|
|
||||
Total liabilities
|
|
$
|
82,750
|
|
|
$
|
137,296
|
|
|
$
|
(6,690
|
)
|
|
$
|
213,356
|
|
|
|
For the period ended March 31, 2017
|
||||||||||||||
Cash flows from operating activities
|
|
Automotive
|
|
Financial
Services
|
|
All Other, Special Items, & Adjustments
|
|
Consolidated
|
||||||||
Net cash provided by/(used in) operating activities
|
|
$
|
3,262
|
|
|
$
|
1,084
|
|
|
$
|
(10
|
)
|
|
$
|
4,336
|
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciling Adjustments to Automotive Segment Operating Cash Flows*
|
|
|
|
|
|
|
|
|||||||||
Automotive capital spending
|
|
(1,696
|
)
|
|
|
|
|
|
|
|||||||
Net cash flows from non-designated derivatives
|
|
134
|
|
|
|
|
|
|
|
|||||||
Funded pension contributions
|
|
236
|
|
|
|
|
|
|
|
|||||||
Separation payments
|
|
28
|
|
|
|
|
|
|
|
|||||||
Other
|
|
52
|
|
|
|
|
|
|
|
|||||||
Automotive Segment Operating Cash Flows
|
|
$
|
2,016
|
|
|
|
|
|
|
|
*
|
We measure and evaluate our Automotive segment operating cash flow on a different basis than Net cash provided by/(used in) operating activities in our consolidated statement of cash flows. Automotive segment operating cash flow includes additional elements management considers to be related to our Automotive operating activities, primarily capital spending and non-designated derivatives, and excludes outflows for funded pension contributions, separation payments, and other items that are considered operating cash flows under U.S. GAAP. The table above quantifies the reconciling adjustments to Net cash provided by/(used in) operating activities for the period ended March 31, 2017.
|
|
|
For the period ended March 31, 2017
|
||||||||||||||
Cash flows from investing activities
|
|
Automotive
|
|
Financial
Services
|
|
All Other, Special Items, & Adjustments
|
|
Consolidated
|
||||||||
Capital spending
|
|
$
|
(1,696
|
)
|
|
$
|
(10
|
)
|
|
$
|
—
|
|
|
$
|
(1,706
|
)
|
Acquisitions of finance receivables and operating leases
|
|
—
|
|
|
(13,467
|
)
|
|
—
|
|
|
(13,467
|
)
|
||||
Collections of finance receivables and operating leases
|
|
—
|
|
|
10,695
|
|
|
—
|
|
|
10,695
|
|
||||
Purchases of equity and debt securities
|
|
(6,994
|
)
|
|
(1,883
|
)
|
|
(1
|
)
|
|
(8,878
|
)
|
||||
Sales and maturities of equity and debt securities
|
|
8,072
|
|
|
1,479
|
|
|
—
|
|
|
9,551
|
|
||||
Settlements of derivatives
|
|
134
|
|
|
22
|
|
|
—
|
|
|
156
|
|
||||
Other
|
|
(4
|
)
|
|
20
|
|
|
(6
|
)
|
|
10
|
|
||||
Investing activity (to)/from other segments
|
|
(24
|
)
|
|
(3
|
)
|
|
27
|
|
|
—
|
|
||||
Net cash provided by/(used in) investing activities
|
|
$
|
(512
|
)
|
|
$
|
(3,147
|
)
|
|
$
|
20
|
|
|
$
|
(3,639
|
)
|
Cash flows from financing activities
|
|
Automotive
|
|
Financial
Services
|
|
All Other, Special Items, & Adjustments
|
|
Consolidated
|
||||||||
Cash dividends
|
|
$
|
(795
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(795
|
)
|
Purchases of Common Stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net changes in short-term debt
|
|
(51
|
)
|
|
709
|
|
|
—
|
|
|
658
|
|
||||
Proceeds from issuance of other debt
|
|
10
|
|
|
13,243
|
|
|
—
|
|
|
13,253
|
|
||||
Principal payments on other debt
|
|
(180
|
)
|
|
(11,731
|
)
|
|
—
|
|
|
(11,911
|
)
|
||||
Other
|
|
(50
|
)
|
|
(35
|
)
|
|
—
|
|
|
(85
|
)
|
||||
Financing activity to/(from) other segments
|
|
—
|
|
|
12
|
|
|
(12
|
)
|
|
—
|
|
||||
Net cash provided by/(used in) financing activities
|
|
$
|
(1,066
|
)
|
|
$
|
2,198
|
|
|
$
|
(12
|
)
|
|
$
|
1,120
|
|
|
|
|
|
|
|
|
|
|
||||||||
Effect of exchange rate changes on cash and cash equivalents
|
$
|
45
|
|
|
$
|
56
|
|
|
$
|
—
|
|
|
$
|
101
|
|
•
|
Decline in industry sales volume, particularly in the United States, Europe, or China, due to financial crisis, recession, geopolitical events, or other factors;
|
•
|
Lower-than-anticipated market acceptance of Ford’s new or existing products or services, or failure to achieve expected growth;
|
•
|
Market shift away from sales of larger, more profitable vehicles beyond Ford’s current planning assumption, particularly in the United States;
|
•
|
Continued or increased price competition resulting from industry excess capacity, currency fluctuations, or other factors;
|
•
|
Fluctuations in foreign currency exchange rates, commodity prices, and interest rates;
|
•
|
Adverse effects resulting from economic, geopolitical, protectionist trade policies, or other events;
|
•
|
Work stoppages at Ford or supplier facilities or other limitations on production (whether as a result of labor disputes, natural or man-made disasters, tight credit markets or other financial distress, production constraints or difficulties, or other factors);
|
•
|
Single-source supply of components or materials;
|
•
|
Labor or other constraints on Ford’s ability to maintain competitive cost structure;
|
•
|
Substantial pension and other postretirement liabilities impairing liquidity or financial condition;
|
•
|
Worse-than-assumed economic and demographic experience for pension and other postretirement benefit plans (e.g., discount rates or investment returns);
|
•
|
Restriction on use of tax attributes from tax law “ownership change;”
|
•
|
The discovery of defects in vehicles resulting in delays in new model launches, recall campaigns, or increased warranty costs;
|
•
|
Increased safety, emissions, fuel economy, or other regulations resulting in higher costs, cash expenditures, and/or sales restrictions;
|
•
|
Unusual or significant litigation, governmental investigations, or adverse publicity arising out of alleged defects in products, perceived environmental impacts, or otherwise;
|
•
|
Adverse effects on results from a decrease in or cessation or clawback of government incentives related to investments;
|
•
|
Cybersecurity risks to operational systems, security systems, or infrastructure owned by Ford, Ford Credit, or a third-party vendor or supplier;
|
•
|
Failure of financial institutions to fulfill commitments under committed credit and liquidity facilities;
|
•
|
Inability of Ford Credit to access debt, securitization, or derivative markets around the world at competitive rates or in sufficient amounts, due to credit rating downgrades, market volatility, market disruption, regulatory requirements, or other factors;
|
•
|
Higher-than-expected credit losses, lower-than-anticipated residual values, or higher-than-expected return volumes for leased vehicles;
|
•
|
Increased competition from banks, financial institutions, or other third parties seeking to increase their share of financing Ford vehicles; and
|
•
|
New or increased credit regulations, consumer or data protection regulations, or other regulations resulting in higher costs and/or additional financing restrictions.
|
Standard
|
|
Effective Date (a)
|
|
2016-18
|
Statement of Cash Flows - Restricted Cash
|
|
January 1, 2018
|
2016-16
|
Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory
|
|
January 1, 2018
|
2016-15
|
Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments
|
|
January 1, 2018
|
2016-01
|
Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities
|
|
January 1, 2018
|
2017-08
|
Nonrefundable Fees and Other Costs - Premium Amortization on Purchased Callable Debt Securities
|
|
January 1, 2019
|
2016-02
|
Leases
|
|
January 1, 2019 (b)
|
2016-13
|
Credit Losses - Measurement of Credit Losses on Financial Instruments
|
|
January 1, 2020 (b)
|
By:
|
/s/ John Lawler
|
|
John Lawler, Vice President and Controller
|
|
(principal accounting officer)
|
|
|
Date:
|
April 27, 2017
|
Designation
|
|
Description
|
|
Method of Filing
|
Exhibit 10.1
|
|
Executive Separation Allowance Plan, as amended and restated effective as of January 1, 2017
|
|
Filed with this Report.
|
Exhibit 10.2
|
|
Benefit Equalization Plan, as amended and restated effective as of January 1, 2017
|
|
Filed with this Report.
|
Exhibit 10.3
|
|
Defined Benefit Supplemental Executive Retirement Plan, as amended and restated effective as of January 1, 2017
|
|
Filed with this Report.
|
Exhibit 10.4
|
|
Defined Contribution Supplemental Executive Retirement Plan, as amended and restated effective as of January 1, 2017
|
|
Filed with this Report.
|
Exhibit 10.5
|
|
Select Retirement Plan, as amended and restated effective as of January 1, 2017
|
|
Filed with this Report.
|
Exhibit 12
|
|
Calculation of Ratio of Earnings to Fixed Charges.
|
|
Filed with this Report.
|
Exhibit 15
|
|
Letter of PricewaterhouseCoopers LLP, dated April 27, 2017, relating to financial information.
|
|
Filed with this Report.
|
Exhibit 31.1
|
|
Rule 15d-14(a) Certification of CEO.
|
|
Filed with this Report.
|
Exhibit 31.2
|
|
Rule 15d-14(a) Certification of CFO.
|
|
Filed with this Report.
|
Exhibit 32.1
|
|
Section 1350 Certification of CEO.
|
|
Furnished with this Report.
|
Exhibit 32.2
|
|
Section 1350 Certification of CFO.
|
|
Furnished with this Report.
|
Exhibit 101.INS
|
|
XBRL Instance Document.
|
|
*
|
Exhibit 101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
*
|
Exhibit 101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
*
|
Exhibit 101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
*
|
Exhibit 101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
*
|
Exhibit 101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
*
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
Suppliers
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|