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North America
South America
Europe
Ford Credit
Middle East & Africa
Asia Pacific
FORD MOTOR COMPANY AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
(in millions, except per share amounts)
For the years ended December 31,
2015 2016 2017
Revenues (unaudited)
Automotive $ 140,566 $ 141,546 $ 145,653
Financial Services 8,992 10,253 11,113
Other — 1 10
Total revenues 149,558 151,800 156,776
Costs and expenses
Cost of sales 124,446 126,183 131,332
Selling, administrative, and other expenses 10,763 10,972 11,527
Financial Services interest, operating, and other expenses 7,368 8,904 9,104
Total costs and expenses 142,577 146,059 151,963
Interest expense on Automotive debt 773 894 1,133
Non-Financial Services other income/(loss), net 1,854 (269 ) 3,060
Financial Services other income/(loss), net 372 438 207
Equity in net income of affiliated companies 1,818 1,780 1,201
Income before income taxes 10,252 6,796 8,148
Provision for/(Benefit from) income taxes 2,881 2,189 520
Net income 7,371 4,607 7,628
Less: Income/(Loss) attributable to noncontrolling interests (2 ) 11 26
Net income attributable to Ford Motor Company $ 7,373 $ 4,596 $ 7,602
EARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK
Basic income $ 1.86 $ 1.16 $ 1.91
Diluted income 1.84 1.15 1.90
Cash dividends declared 0.60 0.85 0.65
FORD MOTOR COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions)
December 31,
2016
December 31,
2017
ASSETS (unaudited)
Cash and cash equivalents $ 15,905 $ 18,492
Marketable securities 22,922 20,435
Financial Services finance receivables, net 46,266 52,210
Trade and other receivables, less allowances of $392 and $412 11,102 10,599
Inventories 8,898 10,277
Other assets 3,368 3,889
Total current assets 108,461 115,902
Financial Services finance receivables, net 49,924 56,182
Net investment in operating leases 28,829 28,235
Net property 32,072 35,327
Equity in net assets of affiliated companies 3,304 3,085
Deferred income taxes 9,705 10,973
Other assets 5,656 8,104
Total assets $ 237,951 $ 257,808
LIABILITIES
Payables $ 21,296 $ 23,282
Other liabilities and deferred revenue 19,316 19,697
Automotive debt payable within one year 2,685 3,356
Financial Services debt payable within one year 46,984 48,265
Total current liabilities 90,281 94,600
Other liabilities and deferred revenue 24,395 24,711
Automotive long-term debt 13,222 12,575
Financial Services long-term debt 80,079 90,091
Deferred income taxes 691 815
Total liabilities 208,668 222,792
Redeemable noncontrolling interest 96 98
EQUITY
Common Stock, par value $.01 per share (3,987 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 21,843
Retained earnings 15,634 21,218
Accumulated other comprehensive income/(loss) (7,013 ) (6,959 )
Treasury stock (1,122 ) (1,253 )
Total equity attributable to Ford Motor Company 29,170 34,890
Equity attributable to noncontrolling interests 17 28
Total equity 29,187 34,918
Total liabilities and equity $ 237,951 $ 257,808
FORD MOTOR COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
For the years ended December 31,
2015 2016 2017
Cash flows from operating activities (unaudited)
Net income $ 7,371 $ 4,607 $ 7,628
Depreciation and tooling amortization 7,993 9,023 9,122
Other amortization (27 ) (306 ) (669 )
Provision for credit and insurance losses 418 672 717
Pension and other postretirement employee benefits (“OPEB”) expense 512 2,667 (608 )
Equity investment (earnings)/losses in excess of dividends received (333 ) (178 ) 240
Foreign currency adjustments 710 283 (403 )
Net (gain)/loss on changes in investments in affiliates (42 ) (139 ) (7 )
Stock compensation 199 210 246
Net change in wholesale and other receivables (5,090 ) (1,449 ) (836 )
Provision for deferred income taxes 2,120 1,478 (232 )
Decrease/(Increase) in accounts receivable and other assets (3,563 ) (2,855 ) (2,297 )
Decrease/(Increase) in inventory (1,155 ) (815 ) (959 )
Increase/(Decrease) in accounts payable and accrued and other liabilities 7,758 6,595 6,089
Other (645 ) 57 65
Net cash provided by/(used in) operating activities 16,226 19,850 18,096
Cash flows from investing activities
Capital spending (7,196 ) (6,992 ) (7,049 )
Acquisitions of finance receivables and operating leases (57,217 ) (56,007 ) (59,354 )
Collections of finance receivables and operating leases 38,130 38,834 44,641
Purchases of equity and debt securities (41,279 ) (31,428 ) (27,567 )
Sales and maturities of equity and debt securities 40,766 29,354 29,898
Settlements of derivatives 134 825 100
Other 500 62 (61 )
Net cash provided by/(used in) investing activities (26,162 ) (25,352 ) (19,392 )
Cash flows from financing activities
Cash dividends (2,380 ) (3,376 ) (2,584 )
Purchases of common stock (129 ) (145 ) (131 )
Net changes in short-term debt 1,646 3,864 1,229
Proceeds from issuance of other debt 48,860 45,961 45,801
Principal payments on other debt (33,358 ) (38,797 ) (40,770 )
Other (373 ) (107 ) (151 )
Net cash provided by/(used in) financing activities 14,266 7,400 3,394
Effect of exchange rate changes on cash and cash equivalents (815 ) (265 ) 489
Net increase/(decrease) in cash and cash equivalents $ 3,515 $ 1,633 $ 2,587
Cash and cash equivalents at January 1 $ 10,757 $ 14,272 $ 15,905
Net increase/(decrease) in cash and cash equivalents 3,515 1,633 2,587
Cash and cash equivalents at December 31 $ 14,272 $ 15,905 $ 18,492
The tables below provide supplemental consolidating financial information. The data is presented by our reportable
segments, Automotive and Financial Services. All Other, Special Items, and Adjustments include our operating segments
that did not meet the quantitative threshold to qualify as a reportable segment, special items, eliminations of intersegment
transactions, and deferred tax netting.
Selected Income Statement Information. The following table provides supplemental income statement information, by
segm nt (in milli ns):
For the year ended December 31, 2017
(unaudited)
Automotive
Financial
Servi es
All Other,
Special Items,
& Adjustments Consolidated
Total revenues $ 145,653 $ 11,113 $ 10 $ 156,776
costs and expenses 2 268 9, 04 591 1 963
Interest expe se on Automotive debt — — 1,133 ,13
Other income/(loss), net 2,705 207 355 3,267
Equity in net income of affiliated companies 1,169 32 — 1, 01
Income/(loss) before income taxes 7,25 2,248 (1,359 ) 8,148
Provision for/(B nefit from) income taxes 2 365 (696) 14 520
Net income/(Loss) 4,894 2,944 (210 ) 7,6 8
L ss: Income/(Loss) attributable to noncontrolling interests 26 — — 26
Net income/(Los ) attributable to Ford Motor Company $ 4,868 $ 2,944 $ (210 ) $ 7,602
For the year ended December 31, 2017
(unaudited)
Automotive
Financial
Services
All Other,
Special Items,
& Adjustments Consolidated
Total revenues $ 145,653 $ 11,113 $ 10 $ 156,776
Total costs and expenses 142,268 9,104 591 151,963
Inter st expen e on Automotive debt — — 1,133 1,133
O her inc /(loss), net 2,705 207 355 3,267
Equity in net income of affiliated companies 1,169 32 — 1,201
Income/(loss) before income taxes 7,259 2,248 (1,359 ) 8,148
Provisio for/(Be fit from) income t xes 3 (696 ( 49) 520
Net inco e/(Loss) 94 2,944 8
Less: Income/(Loss) attributable to noncontrolling interests 26 — — 26
Net income/(Loss) attributable to Ford Motor Company $ 4,868 $ 2,944 $ (210 ) $ 7,602
)
Selected Balance Sheet Information. The following tables provide supplemental balance sheet information, by
segment (in millions):
December 31, 2017
(unaudited)
Assets Automotive
Financial
Services
All Other &
Adjustments Consolidated
Cash and cash equivalents $ 8,930 $ 9,558 $ 4 $ 18,492
Marketable securities 17,554 2,881 — 20,435
Financial Services finance receivables, net — 52,210 — 52,210
Trade and other receivables, less allowances 4,049 6,548 2 10,599
Inventories 10,277 — — 10,277
Other assets 2,631 1,258 — 3,889
Receivable from other segments 57 1,948 (2,005 ) —
Total current assets 43,498 74,403 (1,999 ) 115,902
Financial Services finance receivables, net — 56,182 — 56,182
Net investment in operating leases 1,574 26,661 — 28,235
Net property 35,133 177 17 35,327
Equity in net assets of affiliated companies 2,984 101 — 3,085
Deferred income taxes 13,367 247 (2,641 ) 10,973
Other assets 6,329 1,702 73 8,104
Receivable from other segments — 865 (865 ) —
Total assets $ 102,885 $ 160,338 $ (5,415 ) $ 257,808
Liabilities
Payables $ 22,115 $ 1,162 $ 5 $ 23,282
Other liabilities and deferred revenue 18,278 1,403 16 19,697
Automotive debt payable within one year 3,356 — — 3,356
Financial Services debt payable within one
year
—
48,265
—
48,265
Payable to other segments 1,945 — (1,945 ) —
Total current liabilities 45,694 50,830 (1,924 ) 94,600
Other liabilities and deferred revenue 23,602 1,107 2 24,711
Automotive long-term debt 12,575 — — 12,575
Financial Services long-term debt — 90,091 — 90,091
Deferred income taxes 155 3,301 (2,641 ) 815
Payable to other segments 853 — (853 ) —
Total liabilities $ 82,879 $ 145,329 $ (5,416 ) $ 222,792
* 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 December 31, 2017.
Selected Cash Flow Information. The following tables provide supplemental cash flow information, by segment
(in millions):
For the year ended December 31, 2017
(unaudited)
Cash flows from operating activities Automotive
Financial
Services
All Other &
Adjustments Consolidated
Net income $ 4,894 $ 2,944 $ (210 ) $ 7,628
Depreciation and tooling amortization 4,963 4,159 — 9,122
Other amortization 134 (803 ) — (669 )
Provision for credit and insurance losses 6 711 — 717
Pension and OPEB expense (608 ) — — (608 )
Equity investment (earnings)/losses in excess of dividends
received 271
(31 ) —
240
Foreign currency adjustments (395 ) (8 ) — (403 )
Net (gain)/loss on changes in investments in affiliates (7 ) — — (7 )
Stock compensation 233 10 3 246
Net change in wholesale and other receivables — (836 ) — (836 )
Provision for deferred income taxes 651 (883 ) — (232 )
Decrease/(Increase) in intersegment receivables/payables 7 (28 ) 21 —
Decrease/(Increase) in accounts receivable and other assets (1,824 ) (470 ) (3 ) (2,297 )
Decrease/(Increase) in inventory (959 ) — — (959 )
Increase/(Decrease) in accounts payable and accrued and
other liabilities 5,777
301
11
6,089
Other 307 (346 ) 104 65
Interest supplements and residual value support to Financial
Services (4,524 ) 4,524
—
—
Net cash provided by/(used in) operating activities 8,926 $ 9,244 $ (74 ) $ 18,096
Reconciling Adjustments to Automotive Segment Operating Cash Flows*
Automotive capital spending (7,001 )
Settlements of derivatives 217
Funded pension contributions 1,434
Separation payments 281
Other 51
Automotive Segment Operating Cash Flows $ 3,908
_________
Selected Cash Flow Information. The following tables provide supplemental cash flow information, by segment
(in millions):
Item 7. Management ’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
For the year ended December 31, 2017
(unaudited)
Cash flows from investing activities Automotive
Financial
Services
All Other &
Adjustments Consolidated
Capital spending $ (7,001 ) $ (45 ) $ (3 ) $ (7,049 )
Acquisitions of finance receivables and operating leases — (59,354 ) — (59,354 )
Collections of finance receivables and operating leases — 44,641 — 44,641
Purchases of equity and debt securities (21,665 ) (5,898 ) (4 ) (27,567 )
Sales and maturities of equity and debt securities 23,582 6,316 — 29,898
Settlements of derivatives 217 (117 ) — 100
Other (71 ) 17 (7 ) (61 )
Investing activity (to)/from other segments 231 — (231 ) —
Net cash provided by/(used in) investing activities $ (4,707 ) $ (14,440 ) $ (245 ) $ (19,392 )
Cash flows from financing activities Automotive
Financial
Services
All Other &
Adjustments Consolidated
Cash dividends $ (2,584 ) $ — $ — $ (2,584 )
Purchases of common stock (131 ) — — (131 )
Net changes in short-term debt 69 1,160 — 1,229
Proceeds from issuance of other debt 807 44,994 — 45,801
Principal payments on other debt (1,398 ) (39,372 ) — (40,770 )
Other (46 ) (105 ) — (151 )
Financing activity to/(from) other segments — (315 ) 315 —
Net cash provided by/(used in) financing activities $ (3,283 ) $ 6,362 $ 315 $ 3,394
Effect of exchange rate changes on cash and cash equivalents $ 174 $ 315 $ — $ 489
(Mils)
2016 2017 2016 2017
Net income / (Loss) attributable to Ford (GAAP) (783)$ 2,409$ 4,596$ 7,602$
Income / (Loss) attributable to non-controlling interests 2 4 11 26
Net income / (Loss) (781)$ 2,413$ 4,607$ 7,628$
Less: (Provision for) / Benefit from income taxes 336 524 (2,189) (520)
Income / (Loss) before income taxes (1,117)$ 1,889$ 6,796$ 8,148$
Less: Special items pre-tax (3,249) 152 (3,579) (289)
Adjusted pre-tax profit (Non-GAAP) 2,132$ 1,737$ 10,375$ 8,437$
4Q FY
2017
4Q FY
Diluted After-Tax Results (Mils)
Diluted after-tax results (GAAP) 2,409$ 7,602$
Less: Impact of pre-tax and tax special items 849 486
Adjusted net income – diluted (Non-GAAP) 1,560$ 7,116$
Basic and Diluted Shares (Mils)
Basic shares (average shares outstanding) 3,973 3,975
Net dilutive options and nvested restri ted stock units 27 23
Diluted shares 4,000 3,998
Earnings per share – diluted (GAAP) 0.60$ 1.90$
Less: Net impact of adjustments 0.21 0.12
Adjusted earnings per share – diluted (Non-GAAP) 0.39$ 1.78$
* Includes related tax effect on special items and tax special items
2017 Memo:
4Q FY FY 2016
Pre-Tax Results (Mils)
Income / (Loss) before income taxes (GAAP) 1,889$ 8,148$ 6,796$
Less: Impact of special items 152 (289) (3,579)
Adjusted pre-tax profit (Non-GAAP) 1,737$ 8,437$ 10,375$
Taxes (Mils)
(Provision for) / Benefit from income taxes (GAAP) 524$ (520)$ (2,189)$
Less: Impact of special ite s 697 775 1,121
Adjusted (provision for) / benefit from income taxes (Non-GAAP) (173)$ (1,295)$ (3,310)$
Tax Rate (Pct)
Effective tax rate (GAAP) (27.7)% 6.4% 32.2%
Adjusted effective tax rate (Non-GAAP) 10.0 15.3 31.9
(Mils)
2016 2017 2016 2017
Pension and OPEB gain / (loss)
Year end net pension and OPEB remeasurement loss (2,985)$ (162)$ (2,985)$ (162)$
Other pension remeasurement loss - - (11) -
Pension curtailment gain - 354 - 354
Separation-related actions (11) (38) (304) (297)
Other Items
San Luis Pot i plant cancellation (199) - (199) 41
Japan, Indonesia market closure (54) - (80) -
Next-generation Focus footprint change - (2) - (225)
Total pre-tax spe i l i (3,249)$ 152$ (3,579)$ (289)$
T x special items 1,248$ 697$ 1,121$ 775$
Memo:
Special items impact on earnings per share* (0.50)$ 0.21$ (0.61)$ 0.12$
4Q FY
FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES
CONSOLIDATED INCOME ST TEMENT
(in millions)
For the Years Ended December 31,
2015 2016 2017
(unaudited)
Financing revenue
Operating leases $ 4,865 $ 5,555 $ 5,552
Retail financing 2,819 3,070 3,451
Dealer financing 1,539 1,760 1,903
Other 57 38 70
Total financing revenue 9,280 10,423 10,976
Depreciation on vehicles subject to operating leases (3,640 ) (4,329 ) (4,135 )
Interest expense (2,416 ) (2,755 ) (3,175 )
Net financing margin 3,224 3,339 3,666
Other revenue
Insurance premiums earned 133 156 158
Fee based revenue and other — — 243
Total financing margin and other revenue 3,357 3,495 4,067
Expenses
Operating expenses 1,139 1,274 1,295
Provision for credit losses 347 547 588
Insurance expenses 69 125 124
Total expenses 1,555 1,946 2,007
Other income, net 284 330 250
Income before income taxes 2,086 1,879 2,310
Provision for / (Benefit from) income taxes 723 506 (697 )
Net income $ 1,363 $ 1,373 $ 3,007
FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions)
December 31,
2016
December 31,
2017
(unaudited)
ASSETS
Cash and cash equivalents $ 8,077 $ 9,558
Marketable securities 3,280 2,881
Finance receivables, net 102,981 116,003
Net investment in operating leases 27,209 26,661
Notes and accounts receivable from affiliated companies 811 1,076
Derivative financial instruments 909 935
Other assets 2,822 3,329
Total assets $ 146,089 $ 160,443
LIABILITIES
Accounts payable
Customer deposits, dealer reserves, and other $ 1,065 $ 1,171
Affiliated companies 336 592
Total accounts payable 1,401 1,763
Debt 126,492 137,828
Deferred income taxes 3,230 2,386
Derivative financial instruments 166 310
Other liabilities and deferred income 1,997 2,272
Total liabilities 133,286 144,559
SHAREHOLDER’S INTEREST
Shareholder’s interest 5,227 5,227
Accumulated other comprehensive income / (loss) (890 ) (419 )
Retained earnings 8,466 11,076
Total shareholder’s interest attributable to Ford Motor Credit Company 12,803 15,884
Shareholder’s interest attributable to noncontrolling interests — —
Total shareholder’s interest 12,803 15,884
Total liabilities and shareholder’s interest $ 146,089 $ 160,443
FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
For the Years Ended December 31,
2015 2016 2017
(unaudited)
Cash flows from operating activities
Net income $ 1,363 $ 1,373 $ 3,007
Adjustments to reconcile net income to net cash provided by operations
Provision for credit losses 347 547 588
Depreciation and amortization 4,465 5,121 4,928
Amortization of upfront interest supplements (1,078 ) (1,341 ) (1,686 )
Net change in deferred income taxes 1,042 340 (923 )
Net change in other assets 129 (413 ) (606 )
Net change in other liabilities (348 ) 462 480
All other operating activities (210 ) 142 (123 )
Net cash provided by / (used in) operating activities $ 5,710 $ 6,231 $ 5,665
Cash flows from investing activities
Purchases of finance receivables (39,512 ) (37,494 ) (43,232 )
Principal collections of finance receivables 31,560 30,924 37,277
Purchases of operating lease vehicles (14,355 ) (14,441 ) (12,780 )
Proceeds from termination of operating lease vehicles 6,570 7,920 8,538
Net change in wholesale receivables and other short-duration receivables (5,126 ) (1,499 ) (874 )
Purchases of marketable securities (12,199 ) (7,289 ) (5,899 )
Proceeds from sales and maturities of marketable securities 12,704 6,756 6,316
Settlements of derivatives 210 215 (117 )
All other investing activities 20 (164 ) (34 )
Net cash provided by / (used in) investing activities (20,128 ) (15,072 ) (10,805 )
Cash flows from financing activities
Proceeds from issuances of long-term debt 48,124 42,971 44,994
Principal payments on long-term debt (31,474 ) (38,000 ) (39,372 )
Change in short-term debt, net 1,229 3,403 1,195
Cash distributions to parent (250 ) — (406 )
All other financing activities (101 ) (103 ) (105 )
Net cash provided by / (used in) financing activities 17,528 8,271 6,306
Effect of exchange rate changes on cash and cash equivalents (403 ) (239 ) 315
Net increase / (decrease) in cash and cash equivalents $ 2,707 $ (809 ) $ 1,481
Cash and cash equivalents at January 1 $ 6,179 $ 8,886 $ 8,077
Net increase / (decrease) in cash and cash equivalents 2,707 (809 ) 1,481
Cash and cash equivalents at December 31 $ 8,886 $ 8,077 $ 9,558
The following information was filed by Ford Motor Co (F) on Wednesday, January 24, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
Ford Motor Co
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