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(Mark One)
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þ
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Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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For the fiscal year ended December 31, 2018
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or
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o
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Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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For the transition period from __________ to __________
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Commission file number 1-3950
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Delaware
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38-0549190
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(State of incorporation)
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(I.R.S. Employer Identification No.)
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One American Road, Dearborn, Michigan
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48126
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Name of each exchange on which registered
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Common Stock, par value $.01 per share
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New York Stock Exchange
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Document
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Where Incorporated
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Proxy Statement*
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Part III (Items 10, 11, 12, 13, and 14)
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*
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As stated under various Items of this Report, only certain specified portions of such document are incorporated by reference in this Report.
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Table of Contents
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Page
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Part I
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Item 1
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Business
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Overview
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Automotive Segment
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Mobility Segment
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Ford Credit Segment
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Governmental Standards
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Employment Data
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Item 1A
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Risk Factors
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Item 1B
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Unresolved Staff Comments
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Item 2
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Properties
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Item 3
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Legal Proceedings
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Item 4
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Mine Safety Disclosures
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Item 4A
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Executive Officers of Ford
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Part II
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Item 5
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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Item 6
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Selected Financial Data
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Item 7
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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Overview
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Results of Operations - 2018
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Automotive Segment
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Mobility Segment
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Ford Credit Segment
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Corporate Other
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Interest on Debt
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Special Items
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Taxes
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Results of Operations - 2017
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Automotive Segment
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Mobility Segment
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Ford Credit Segment
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Corporate Other
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Interest on Debt
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Special Items
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Taxes
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Liquidity and Capital Resources
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Credit Ratings
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2019 External Factors Assumptions
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Outlook
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Non-GAAP Financial Measure Reconciliations
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2018 Supplemental Financial Information
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Critical Accounting Estimates
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Accounting Standards Issued But Not Yet Adopted
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Aggregate Contractual Obligations
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Item 7A
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Quantitative and Qualitative Disclosures About Market Risk
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Item 8
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Financial Statements and Supplementary Data
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Item 9
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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Item 9A
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Controls and Procedures
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Item 9B
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Other Information
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Part III
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Item 10
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Directors, Executive Officers of Ford, and Corporate Governance
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Item 11
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Executive Compensation
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Item 12
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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Item 13
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Certain Relationships and Related Transactions, and Director Independence
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Item 14
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Principal Accounting Fees and Services
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Part IV
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Item 15
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Exhibits and Financial Statement Schedules
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Item 16
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Form 10-K Summary
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Signatures
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Ford Motor Company and Subsidiaries Financial Statements
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Report of Independent Registered Public Accounting Firm
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Consolidated Income Statement
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Consolidated Statement of Comprehensive Income
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Consolidated Balance Sheet
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Consolidated Statement of Cash Flows
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Consolidated Statement of Equity
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Notes to the Financial Statements
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Schedule II — Valuation and Qualifying Accounts
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Brand
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Number of Dealerships
at December 31, 2018
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Ford
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10,466
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Ford-Lincoln (combined)
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858
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Lincoln
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210
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Total
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11,534
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•
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Wholesale unit volumes
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•
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Margin of profit on each vehicle sold - which in turn is affected by many factors, such as:
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◦
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Market factors - volume and mix of vehicles and options sold, and net pricing (reflecting, among other factors, incentive programs)
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◦
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Costs of components and raw materials necessary for production of vehicles
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◦
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Costs for customer warranty claims and additional service actions
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◦
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Costs for safety, emissions, and fuel economy technology and equipment
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•
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A high proportion of relatively fixed structural costs, so that small changes in wholesale unit volumes can significantly affect overall profitability
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Wholesales (a)
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|||||||
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(in thousands of units)
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2016
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2017
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2018
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United States
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2,588
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2,566
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2,540
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Canada
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313
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308
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295
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Mexico
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103
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82
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69
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North America
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3,019
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2,967
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2,920
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Brazil
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182
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215
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235
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Argentina
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101
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115
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86
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South America
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325
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373
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365
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United Kingdom
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428
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418
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387
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Germany
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283
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277
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313
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EU21 (b)
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1,387
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1,429
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1,439
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Russia
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45
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54
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51
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Turkey
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116
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116
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65
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Europe
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1,539
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1,582
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1,533
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Middle East & Africa
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161
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119
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109
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China
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1,267
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1,215
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731
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Australia
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82
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78
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65
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India
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86
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88
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98
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ASEAN (c)
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106
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122
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117
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Asia Pacific
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1,607
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1,566
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1,055
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Total Company
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6,651
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6,607
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5,982
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(a)
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Wholesale unit volume includes sales of medium and heavy trucks. Wholesale unit volume includes 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 for other manufacturers, and local brand units produced by our unconsolidated Chinese 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 volume. Revenue from certain vehicles in wholesale unit volume (specifically, Ford badged vehicles produced and distributed by our unconsolidated affiliates, as well as JMC brand vehicles) are not included in our revenue.
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(b)
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EU21 markets are United Kingdom, Germany, France, Italy, Spain, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Hungary, Ireland, Netherlands, Norway, Poland, Portugal, Romania, Russia, Sweden, and Switzerland.
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(c)
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ASEAN includes Philippines, Thailand, and Vietnam.
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Retail Sales (a)
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Industry Volume (b)
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Market Share (c)
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(in millions of units)
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(in millions of units)
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(as a percentage)
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2016
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2017
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2018
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2016
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2017
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2018
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2016
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2017
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2018
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|||||||||
United States
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2.6
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2.6
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2.5
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17.9
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17.6
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17.7
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14.6
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%
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14.7
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%
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14.1
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%
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Canada
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0.3
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0.3
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0.3
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2.0
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2.1
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2.0
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15.4
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14.9
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14.7
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Mexico
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0.1
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0.1
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0.1
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1.6
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1.6
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1.5
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6.2
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5.3
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4.8
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North America
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3.0
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3.0
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2.9
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21.8
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21.5
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21.5
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13.9
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13.9
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13.4
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Brazil
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0.2
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0.2
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0.2
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2.1
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2.2
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2.6
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9.2
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%
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9.6
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%
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9.2
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%
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Argentina
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0.1
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0.1
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0.1
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0.7
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0.9
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0.8
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13.6
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12.9
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12.1
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South America
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0.3
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0.4
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0.4
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3.7
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4.2
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4.5
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8.8
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8.9
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8.3
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United Kingdom
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0.4
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0.4
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0.4
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3.1
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3.0
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2.8
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14.0
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%
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13.8
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%
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13.7
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%
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Germany
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0.3
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0.3
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0.3
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3.7
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3.8
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3.8
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7.6
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7.7
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7.9
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EU21 (d)
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1.4
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|
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1.4
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1.4
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|
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18.6
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19.3
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19.6
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7.5
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7.3
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7.2
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Russia
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0.0
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0.1
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|
|
0.1
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|
|
1.5
|
|
|
1.6
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|
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1.8
|
|
|
2.9
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|
|
3.1
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|
|
2.9
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Turkey
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0.1
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|
|
0.1
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|
|
0.1
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|
|
1.0
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|
|
1.0
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|
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0.6
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|
|
11.4
|
|
|
11.9
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|
|
10.9
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Europe
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1.5
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|
|
1.6
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|
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1.5
|
|
|
20.1
|
|
|
20.9
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|
|
20.9
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|
|
7.7
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|
|
7.5
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|
|
7.2
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Middle East & Africa
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0.2
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|
|
0.1
|
|
|
0.1
|
|
|
3.7
|
|
|
3.6
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|
|
3.8
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|
|
4.4
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%
|
|
3.8
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%
|
|
3.0
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%
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China (e)
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1.3
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|
|
1.2
|
|
|
0.8
|
|
|
27.5
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|
|
28.2
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|
|
26.2
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|
|
4.6
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%
|
|
4.2
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%
|
|
2.9
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%
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Australia
|
0.1
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|
|
0.1
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|
|
0.1
|
|
|
1.2
|
|
|
1.2
|
|
|
1.2
|
|
|
6.9
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|
|
6.6
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|
|
6.0
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|
India
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
3.7
|
|
|
4.1
|
|
|
4.4
|
|
|
2.4
|
|
|
2.2
|
|
|
2.2
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ASEAN (f)
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
1.5
|
|
|
1.6
|
|
|
1.7
|
|
|
7.0
|
|
|
7.5
|
|
|
6.6
|
|
Asia Pacific (e)
|
1.6
|
|
|
1.5
|
|
|
1.1
|
|
|
43.4
|
|
|
44.8
|
|
|
43.5
|
|
|
3.7
|
|
|
3.4
|
|
|
2.5
|
|
Global
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
92.8
|
|
|
95.0
|
|
|
94.2
|
|
|
7.2
|
%
|
|
7.0
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%
|
|
6.3
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%
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Total Company
|
6.7
|
|
|
6.6
|
|
|
6.0
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
(a)
|
Retail sales represents primarily sales by dealers and is based, in part, on estimated vehicle registrations; includes medium and heavy trucks.
|
(b)
|
Industry volume is an internal estimate based on publicly-available data collected from various government, private, and public sources around the globe; includes medium and heavy trucks.
|
(c)
|
Market share represents reported retail sales of our brands as a percent of total industry volume in the relevant market or region.
|
(d)
|
EU21 markets are United Kingdom, Germany, France, Italy, Spain, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Hungary, Ireland, Netherlands, Norway, Poland, Portugal, Romania, Russia, Sweden, and Switzerland.
|
(e)
|
China and Asia Pacific market share includes Ford brand and JMC brand vehicles produced and sold by our unconsolidated affiliates.
|
(f)
|
ASEAN includes Philippines, Thailand, and Vietnam.
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|
U.S. Retail Sales
|
|
U.S. Wholesales
|
||
Trucks
|
1,139,079
|
|
|
1,156,022
|
|
SUVs
|
872,215
|
|
|
937,845
|
|
Cars
|
486,024
|
|
|
445,999
|
|
Total Vehicles
|
2,497,318
|
|
|
2,539,866
|
|
|
Years Ended December 31,
|
|||||||
|
2016
|
|
2017
|
|
2018
|
|||
United States - Financing Share
|
|
|
|
|
|
|||
Retail installment and lease share of Ford retail sales (excl. Fleet)
|
56
|
%
|
|
55
|
%
|
|
58
|
%
|
Wholesale
|
76
|
|
|
76
|
|
|
76
|
|
|
|
|
|
|
|
|||
Europe - Financing Share
(incl. Fleet)
|
|
|
|
|
|
|
|
|
Retail installment and lease share of total Ford sales
|
37
|
%
|
|
37
|
%
|
|
38
|
%
|
Wholesale
|
98
|
|
|
98
|
|
|
98
|
|
|
2017
|
|
2018
|
||
North America
|
100
|
|
|
100
|
|
South America
|
14
|
|
|
12
|
|
Europe
|
54
|
|
|
53
|
|
Middle East & Africa
|
3
|
|
|
4
|
|
Asia Pacific
|
23
|
|
|
22
|
|
Total Automotive
|
194
|
|
|
191
|
|
Ford Credit
|
7
|
|
|
7
|
|
Mobility
|
1
|
|
|
1
|
|
Total Company
|
202
|
|
|
199
|
|
Automotive Business Units
|
|
Plants
|
North America
|
|
32
|
South America
|
|
8
|
Europe
|
|
15
|
Middle East & Africa
|
|
2
|
Asia Pacific
|
|
4
|
Total
|
|
61
|
•
|
Ford Lio Ho Motor Company Ltd. (“FLH”)
— a joint venture in Taiwan among Ford (70% partner), the Lio Ho Group (25% partner), and individual shareholders (5% ownership in aggregate) that assembles a variety of Ford vehicles sourced from Ford. In addition to domestic assembly, FLH imports Ford brand built-up vehicles from the Asia Pacific region, Europe, and the United States. The joint venture operates one plant in Taiwan.
|
•
|
Ford Sollers Netherlands B.V. (“Ford Sollers”)
— a 50/50 joint venture between Ford and Sollers PJSC (“Sollers”), in which Ford has control.
The joint venture primarily is engaged in manufacturing a range of Ford passenger cars and light commercial vehicles for sale in Russia, and has an exclusive right to manufacture, assemble, and distribute certain Ford vehicles in Russia through the licensing of certain trademarks and intellectual property rights. The joint venture operates three manufacturing facilities and one engine plant in Russia. We have begun a strategic review of the joint venture with our joint venture partner to evaluate options regarding the joint venture.
|
•
|
Ford Vietnam Limited
— a joint venture between Ford (75% partner) and Diesel Song Cong One Member Limited Liability Company (a subsidiary of the Vietnam Engine and Agricultural Machinery Corporation, which in turn is majority owned (87.43%) by the State of Vietnam represented by the Ministry of Industry and Trade) (25% partner). Ford Vietnam Limited assembles and distributes a variety of Ford passenger and commercial vehicle models. The joint venture operates one plant in Vietnam.
|
•
|
AutoAlliance (Thailand) Co., Ltd. (“AAT”)
— a 50/50 joint venture between Ford and Mazda that owns and operates a manufacturing plant in Rayong, Thailand. AAT produces Ford and Mazda products for domestic and export sales.
|
•
|
Changan Ford Automobile Corporation, Ltd. (“CAF”)
— a 50/50 joint venture between Ford and Chongqing Changan Automobile Co., Ltd. (“Changan”). CAF operates five assembly plants, an engine plant, and a transmission plant in China where it produces and distributes an expanding variety of Ford passenger vehicle models.
|
•
|
Changan Ford Mazda Engine Company, Ltd. (“CFME”)
— a joint venture among Ford (25% partner), Mazda (25% partner), and Changan (50% partner). CFME is located in Nanjing, and produced engines for Ford until November 2018 and continues to produce engines for Mazda vehicles manufactured in China.
Ford and Mazda entered into an equity transfer agreement pursuant to which Ford sold its interest in CFME to Mazda effective as of January 29, 2019.
|
•
|
Ford Otomotiv Sanayi Anonim Sirketi (“Ford Otosan”)
— a joint venture in Turkey among Ford (41% partner), the Koc Group of Turkey (41% partner), and public investors (18%) that is the sole supplier to us of the Transit, Transit Custom, and Transit Courier commercial vehicles for Europe and is our sole distributor of Ford vehicles in Turkey. Ford Otosan also manufactures the Cargo truck for the Turkish and certain export markets and certain engines and transmissions, as well as certain components mainly for the Transit for supply to other regions. The joint venture owns three plants, a parts distribution depot, and a research and development center in Turkey.
|
•
|
Getrag Ford Transmissions GmbH (“GFT”)
— a 50/50 joint venture with Magna PT International GmbH (formerly Getrag International GmbH), a German company belonging to Magna Powertrain GmbH. GFT operates plants in Halewood, England; Cologne, Germany; Bordeaux, France; and Kechnec, Slovakia to produce, among other things, manual transmissions for our Europe business unit.
|
•
|
JMC
— a publicly-traded company in China with Ford (32% shareholder) and Jiangling Holdings, Ltd. (41% shareholder) as its controlling shareholders. Jiangling Holdings, Ltd. is a 50/50 joint venture between Changan and Jiangling Motors Company Group. The public investors in JMC own 27% of its total outstanding shares. JMC assembles Ford Transit, Ford Everest, Ford Territory, Ford engines, and non-Ford vehicles and engines for distribution in China and in other export markets. JMC operates two assembly plants and one engine plant in Nanchang, and is constructing a new passenger vehicle assembly plant in Nanchang. JMC also operates a plant in Taiyuan that assembles heavy duty trucks and engines.
|
Name
|
|
Position
|
|
Position
Held Since
|
|
Age
|
William Clay Ford, Jr. (a)
|
|
Executive Chairman and Chairman of the Board
|
|
September 2006
|
|
61
|
James P. Hackett (b)
|
|
President and Chief Executive Officer
|
|
May 2017
|
|
63
|
James D. Farley, Jr.
|
|
President, Global Markets (c)
|
|
June 2017
|
|
56
|
Joseph R. Hinrichs
|
|
President, Global Operations (c)
|
|
June 2017
|
|
52
|
Marcy Klevorn
|
|
President, Mobility (c)
|
|
June 2017
|
|
59
|
Bob Shanks
|
|
Chief Financial Officer (c)
|
|
April 2012
|
|
66
|
Hau Thai-Tang
|
|
Chief Product Development and Purchasing Officer (c)
|
|
June 2017
|
|
52
|
Bradley M. Gayton
|
|
Chief Administrative Officer and General Counsel (c)
|
|
June 2017
|
|
55
|
Kiersten Robinson
|
|
Chief Human Resources Officer (c)
|
|
April 2018
|
|
48
|
Cathy O’Callaghan
|
|
Vice President, Controller and Chief Financial Officer, Global Markets
|
|
June 2018
|
|
50
|
(a)
|
Also a Director, Chair of the Office of the Chairman and Chief Executive, Chair of the Finance Committee, and a member of the Sustainability Committee of the Board of Directors.
|
(b)
|
Also a Director and member of the Office of the Chairman and Chief Executive and the Finance Committee of the Board of Directors.
|
(c)
|
Certain executive officers’ titles changed January 1, 2019 without any change in their responsibilities.
|
|
2017
|
|
2018
|
||||||||||||||||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
||||||||||||||||
Dividends per share of Ford Common and Class B Stock
|
$
|
0.20
|
|
|
$
|
0.15
|
|
|
$
|
0.15
|
|
|
$
|
0.15
|
|
|
$
|
0.28
|
|
|
$
|
0.15
|
|
|
$
|
0.15
|
|
|
$
|
0.15
|
|
•
|
Company Adjusted EBIT (Most Comparable GAAP Measure: Net Income Attributable to Ford)
– Earnings before interest and taxes (EBIT) includes non-controlling interests and excludes interest on debt (excl. Ford Credit Debt), taxes, and pre-tax special items. This non-GAAP measure is useful to management and investors because it allows users to evaluate our operating results relative to other companies in our industry. Pre-tax special items consist of (i) pension and OPEB remeasurement gains and losses, (ii) significant personnel and dealer-related costs stemming from 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 EBIT, 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, including pension and OPEB remeasurement gains and losses.
|
•
|
Company Adjusted EBIT Margin (Most Comparable GAAP Measure: Company Net Income Margin)
– Company Adjusted EBIT margin is Company adjusted EBIT divided by Company revenue. This non-GAAP measure is useful to management and investors because it allows users to evaluate our operating results relative to other companies in our industry.
|
•
|
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, including 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, including pension and OPEB remeasurement gains and losses.
|
•
|
Company Adjusted Operating Cash Flow (Most Comparable GAAP Measure: Net Cash Provided By / (Used In) Operating Activities)
– Measure of Company’s operating cash flow excluding Ford Credit’s operating cash flows. The measure contains elements management considers operating activities, including Automotive and Mobility capital spending, Ford Credit distributions to its parent, and settlement of derivatives. The measure excludes cash outflows for funded pension contributions, separation payments, and other items that are considered operating cash outflows under U.S. GAAP. This measure is useful to management and investors because it is consistent with management’s assessment of the Company’s operating cash flow performance. When we provide guidance for Company adjusted operating cash flow, we do not provide guidance for net cash provided by/(used in) operating activities because the GAAP measure will include items that are difficult to quantify or predict with reasonable certainty, including cash flows related to the Company's exposures to foreign currency exchange rates and certain commodity prices (separate from any related hedges), Ford Credit's operating cash flows, and cash flows related to special items, including separation payments, each of which individually or in the aggregate could have a significant impact to our net cash provided by/(used in) our operating activities.
|
•
|
Adjusted Cash Conversion (Most Comparable GAAP Measure: Net Cash Provided By / (Used In) Operating Activities divided by Net Income Attributable to Ford (“cash conversion”))
– Company Adjusted Cash Conversion is Company adjusted operating cash flow divided by Adjusted EBIT. This non-GAAP measure is useful to management and investors because it allows users to evaluate how much of Ford's Adjusted EBIT is converted into cash flow.
|
•
|
Adjusted Debt to EBITDA (Most Comparable GAAP Measure: Total Company Debt to Net income attributable to Ford)
– This financial leverage ratio is commonly used to assess a company’s ability to repay its debt. This measure is useful to management and investors because it helps to assess how long we would need to operate at our current level to repay our debt (excl. Ford Credit’s debt). When we provide guidance for adjusted debt to EBITDA, we do not provide guidance for the most comparable GAAP measure 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, including pension and OPEB remeasurement gains and losses. For more information, see the definitions of Adjusted Debt and Adjusted EBITDA.
|
•
|
Adjusted Debt (Most Comparable GAAP Measure: Total Company Debt)
– Measure of total company debt (excl. Ford Credit), adjusted to include unamortized discount/premium and issuance costs (excl. Ford Credit), operating lease minimum commitments, and net pension liabilities excluding prepaid assets.
|
•
|
Adjusted EBITDA (Most Comparable GAAP Measure: Net income attributable to Ford)
– Measure of Company Adjusted EBIT (see definition), excluding Ford Credit EBT and equity in net income/(loss) of affiliated companies, and further adjusted to include certain non-pension related special items, depreciation and tooling amortization (excl. Ford Credit), operating lease expense, and certain pension costs.
|
•
|
Adjusted ROIC
– Adjusted Return on Invested Capital (“ROIC”) provides management and investors with useful information to evaluate the Company’s after-cash tax operating return on its invested capital for the period presented. Adjusted net operating profit after cash tax measures operating results less special items, interest on debt (excl. Ford Credit Debt), and certain pension/OPEB costs. Average invested capital is the sum of average balance sheet equity, debt (excl. Ford Credit Debt), and net pension/OPEB liability. When we provide guidance for adjusted ROIC, we do not provide guidance on an unadjusted ROIC basis because it will include potentially significant special items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end.
|
•
|
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.
|
•
|
Contribution Costs
– these costs typically vary with production volume. These costs include material, commodity, warranty, and freight and duty costs.
|
•
|
Structural Costs
– these costs typically do not have a directly proportionate relationship to production volume. These costs include manufacturing, engineering, spending-related, advertising and sales promotion, administrative and selling, and pension and OPEB costs.
|
•
|
Market Factors
(exclude the impact of unconsolidated affiliate wholesales):
|
◦
|
Volume and Mix
– primarily measures EBIT 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 EBIT 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 EBIT 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
|
•
|
Cost:
|
◦
|
Contribution Costs
– primarily measures EBIT 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 EBIT 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.
|
▪
|
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
|
•
|
Other
–
includes a variety of items, such as parts and services profits, royalties, government incentives, and compensation-related changes. Other also includes:
|
◦
|
Exchange
– primarily measures EBIT 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
|
◦
|
Beginning in 2018, in our discussion of Asia Pacific EBIT, Other includes the equity income from our China JVs. In prior periods, the impact of our equity income from our China JVs was spread across each causal factor
|
•
|
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
|
•
|
Industry Volume and Market Share
– based, in part, on estimated vehicle registrations; includes medium and heavy duty trucks
|
•
|
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
|
◦
|
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, refer to the “Critical Accounting Estimates
-
Allowance for Credit Losses” section of Item 7 of Part II of our 2018 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 Ford Credit’s estimate of the number of vehicles that will be returned to it and sold. For additional information, refer to the “Critical Accounting Estimates
-
Accumulated Depreciation on Vehicles Subject to Operating Leases” section of Item 7 of Part II of our 2018 Form 10-K Report
|
•
|
Exchange:
|
◦
|
Reflects changes in EBT driven by the effects of converting functional currency income to U.S. dollars
|
•
|
Other:
|
◦
|
Primarily includes operating expenses, other revenue, insurance expenses, and other income 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 income 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
|
•
|
Earnings Before Taxes (EBT
) – Reflects Ford Credit’s income before income taxes
|
•
|
Return on Equity (ROE
) (as shown on the Key Metrics chart) – Reflects return on equity calculated by annualizing net income for the period and dividing by monthly average equity for the period
|
•
|
Securitizations
(as shown on the Public Term Funding Plan chart) – Public securitization transactions, Rule 144A offerings sponsored by Ford 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
|
•
|
Total Net Receivables
(as shown on the Total Net Receivables Reconciliation To Managed Receivables chart) – Includes finance receivables (retail and wholesale) sold for legal purposes and net investment in operating leases included in securitization transactions that do not satisfy the requirements for accounting sale treatment. These receivables and operating leases are reported on Ford Credit’s balance sheet and are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions; they are not available to pay the other obligations of Ford Credit or the claims of Ford Credit’s other creditors
|
•
|
Limit our pension contributions to offset ongoing service cost or meet regulatory requirements, if any;
|
•
|
Continue progressively re-balancing assets to more fixed income investments, with a target asset allocation of about 80% fixed income investments and 20% growth assets, which will provide a better matching of plan assets to the characteristics of the liabilities, thereby reducing our net exposure; and
|
•
|
Evaluate strategic actions to reduce pension liabilities, such as plan design changes, curtailments, or settlements
|
|
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
|
|
Baa3
|
|
Negative
|
|
Baa3
|
|
P-3
|
|
Negative
|
|
Baa3
|
S&P
|
BBB
|
|
BBB
|
|
Negative
|
|
BBB
|
|
A-2
|
|
Negative
|
|
BBB-
|
•
|
Ford’s long-term competitiveness depends on the successful execution of fitness actions;
|
•
|
Industry sales volume, particularly in the United States, Europe, or China, can be volatile and could decline if there is a financial crisis, recession, or significant geopolitical event;
|
•
|
Ford’s new and existing products and mobility services are subject to market acceptance;
|
•
|
Ford’s results are dependent on sales of larger, more profitable vehicles, particularly in the United States;
|
•
|
Ford may face increased price competition resulting from industry excess capacity, currency fluctuations, or other factors;
|
•
|
Fluctuations in commodity prices, foreign currency exchange rates, and interest rates can have a significant effect on results;
|
•
|
With a global footprint, Ford’s results could be adversely affected by economic, geopolitical, protectionist trade policies, or other events, including Brexit;
|
•
|
Ford’s production, as well as Ford’s suppliers’ production, could be disrupted by labor disputes, natural or man-made disasters, financial distress, production difficulties, or other factors;
|
•
|
Ford’s ability to maintain a competitive cost structure could be affected by labor or other constraints;
|
•
|
Pension and other postretirement liabilities could adversely affect Ford’s liquidity and financial condition;
|
•
|
Economic and demographic experience for pension and other postretirement benefit plans (e.g., discount rates or investment returns) could be worse than Ford has assumed;
|
•
|
Ford’s vehicles could be affected by defects that result in delays in new model launches, recall campaigns, or increased warranty costs;
|
•
|
Ford may need to substantially modify its product plans to comply with safety, emissions, fuel economy, and other regulations that may change in the future;
|
•
|
Ford could experience unusual or significant litigation, governmental investigations, or adverse publicity arising out of alleged defects in products, perceived environmental impacts, or otherwise;
|
•
|
Ford’s receipt of government incentives could be subject to reduction, termination, or clawback;
|
•
|
Operational systems, security systems, and vehicles could be affected by cyber incidents;
|
•
|
Ford Credit’s access to debt, securitization, or derivative markets around the world at competitive rates or in sufficient amounts could be affected by credit rating downgrades, market volatility, market disruption, regulatory requirements, or other factors;
|
•
|
Ford Credit could experience higher-than-expected credit losses, lower-than-anticipated residual values, or higher-than-expected return volumes for leased vehicles;
|
•
|
Ford Credit could face increased competition from banks, financial institutions, or other third parties seeking to increase their share of financing Ford vehicles; and
|
•
|
Ford Credit could be subject to new or increased credit regulations, consumer or data protection regulations, or other regulations.
|
|
|
For the year ended December 31, 2018
|
||||||||||||||||||||||
|
|
Company excluding Ford Credit
|
|
|
|
|
||||||||||||||||||
|
|
Automotive
|
|
Mobility
|
|
Other (a)
|
|
Subtotal
|
|
Ford Credit
|
|
Consolidated
|
||||||||||||
Revenues
|
|
$
|
148,294
|
|
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
148,320
|
|
|
$
|
12,018
|
|
|
$
|
160,338
|
|
Total costs and expenses
|
|
145,691
|
|
|
758
|
|
|
1,223
|
|
|
147,672
|
|
|
9,463
|
|
|
157,135
|
|
||||||
Interest expense on Automotive debt
|
|
—
|
|
|
—
|
|
|
1,171
|
|
|
1,171
|
|
|
—
|
|
|
1,171
|
|
||||||
Interest expense on Other debt
|
|
—
|
|
|
—
|
|
|
57
|
|
|
57
|
|
|
—
|
|
|
57
|
|
||||||
Other income/(loss), net
|
|
2,724
|
|
|
58
|
|
|
(579
|
)
|
|
2,203
|
|
|
44
|
|
|
2,247
|
|
||||||
Equity in net income of affiliated companies
|
|
95
|
|
|
—
|
|
|
—
|
|
|
95
|
|
|
28
|
|
|
123
|
|
||||||
Income/(loss) before income taxes
|
|
5,422
|
|
|
(674
|
)
|
|
(3,030
|
)
|
|
1,718
|
|
|
2,627
|
|
|
4,345
|
|
||||||
Provision for/(Benefit from) income taxes
|
|
705
|
|
|
(162
|
)
|
|
(296
|
)
|
|
247
|
|
|
403
|
|
|
650
|
|
||||||
Net income/(Loss)
|
|
4,717
|
|
|
(512
|
)
|
|
(2,734
|
)
|
|
1,471
|
|
|
2,224
|
|
|
3,695
|
|
||||||
Less: Income/(Loss) attributable to noncontrolling interests
|
|
18
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
18
|
|
||||||
Net income/(Loss) attributable to Ford Motor Company
|
|
$
|
4,699
|
|
|
$
|
(512
|
)
|
|
$
|
(2,734
|
)
|
|
$
|
1,453
|
|
|
$
|
2,224
|
|
|
$
|
3,677
|
|
|
|
December 31, 2018
|
||||||||||||||
Assets
|
|
Company excluding Ford Credit
|
|
Ford Credit
|
|
Eliminations
|
|
Consolidated
|
||||||||
Cash and cash equivalents
|
|
$
|
7,111
|
|
|
$
|
9,607
|
|
|
$
|
—
|
|
|
$
|
16,718
|
|
Marketable securities
|
|
15,925
|
|
|
1,308
|
|
|
—
|
|
|
17,233
|
|
||||
Ford Credit finance receivables, net
|
|
—
|
|
|
54,353
|
|
|
—
|
|
|
54,353
|
|
||||
Trade and other receivables, less allowances
|
|
3,698
|
|
|
7,497
|
|
|
—
|
|
|
11,195
|
|
||||
Inventories
|
|
11,220
|
|
|
—
|
|
|
—
|
|
|
11,220
|
|
||||
Other assets
|
|
2,567
|
|
|
1,363
|
|
|
—
|
|
|
3,930
|
|
||||
Receivable from other segments
|
|
1,054
|
|
|
2,470
|
|
|
(3,524
|
)
|
|
—
|
|
||||
Total current assets
|
|
41,575
|
|
|
76,598
|
|
|
(3,524
|
)
|
|
114,649
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Ford Credit finance receivables, net
|
|
—
|
|
|
55,544
|
|
|
—
|
|
|
55,544
|
|
||||
Net investment in operating leases
|
|
1,705
|
|
|
27,414
|
|
|
—
|
|
|
29,119
|
|
||||
Net property
|
|
35,986
|
|
|
192
|
|
|
—
|
|
|
36,178
|
|
||||
Equity in net assets of affiliated companies
|
|
2,595
|
|
|
114
|
|
|
—
|
|
|
2,709
|
|
||||
Deferred income taxes
|
|
12,293
|
|
|
216
|
|
|
(2,097
|
)
|
|
10,412
|
|
||||
Other assets
|
|
6,343
|
|
|
1,586
|
|
|
—
|
|
|
7,929
|
|
||||
Receivable from other segments
|
|
166
|
|
|
14
|
|
|
(180
|
)
|
|
—
|
|
||||
Total assets
|
|
$
|
100,663
|
|
|
$
|
161,678
|
|
|
$
|
(5,801
|
)
|
|
$
|
256,540
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Payables
|
|
$
|
20,426
|
|
|
$
|
1,094
|
|
|
$
|
—
|
|
|
$
|
21,520
|
|
Other liabilities and deferred revenue
|
|
18,868
|
|
|
1,688
|
|
|
—
|
|
|
20,556
|
|
||||
Automotive debt payable within one year
|
|
2,314
|
|
|
—
|
|
|
—
|
|
|
2,314
|
|
||||
Ford Credit debt payable within one year
|
|
—
|
|
|
51,179
|
|
|
—
|
|
|
51,179
|
|
||||
Payable to other segments
|
|
3,524
|
|
|
—
|
|
|
(3,524
|
)
|
|
—
|
|
||||
Total current liabilities
|
|
45,132
|
|
|
53,961
|
|
|
(3,524
|
)
|
|
95,569
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities and deferred revenue
|
|
22,491
|
|
|
1,097
|
|
|
—
|
|
|
23,588
|
|
||||
Automotive long-term debt
|
|
11,233
|
|
|
—
|
|
|
—
|
|
|
11,233
|
|
||||
Ford Credit long-term debt
|
|
—
|
|
|
88,887
|
|
|
—
|
|
|
88,887
|
|
||||
Other long-term debt
|
|
600
|
|
|
—
|
|
|
—
|
|
|
600
|
|
||||
Deferred income taxes
|
|
99
|
|
|
2,595
|
|
|
(2,097
|
)
|
|
597
|
|
||||
Payable to other segments
|
|
17
|
|
|
163
|
|
|
(180
|
)
|
|
—
|
|
||||
Total liabilities
|
|
$
|
79,572
|
|
|
$
|
146,703
|
|
|
$
|
(5,801
|
)
|
|
$
|
220,474
|
|
|
|
For the year ended December 31, 2018
|
||||||||||||||
Cash flows from operating activities
|
|
Company excluding Ford Credit
|
|
Ford Credit
|
|
Eliminations
|
|
Consolidated
|
||||||||
Net income
|
|
$
|
1,471
|
|
|
$
|
2,224
|
|
|
$
|
—
|
|
|
$
|
3,695
|
|
Depreciation and tooling amortization
|
|
5,384
|
|
|
3,896
|
|
|
—
|
|
|
9,280
|
|
||||
Other amortization
|
|
100
|
|
|
(1,072
|
)
|
|
—
|
|
|
(972
|
)
|
||||
Provision for credit and insurance losses
|
|
—
|
|
|
609
|
|
|
—
|
|
|
609
|
|
||||
Pension and OPEB expense/(income)
|
|
400
|
|
|
—
|
|
|
—
|
|
|
400
|
|
||||
Equity investment (earnings)/losses in excess of dividends received
|
|
231
|
|
|
(25
|
)
|
|
—
|
|
|
206
|
|
||||
Foreign currency adjustments
|
|
528
|
|
|
1
|
|
|
—
|
|
|
529
|
|
||||
Net (gain)/loss on changes in investments in affiliates
|
|
(39
|
)
|
|
(3
|
)
|
|
—
|
|
|
(42
|
)
|
||||
Stock compensation
|
|
183
|
|
|
8
|
|
|
—
|
|
|
191
|
|
||||
Net change in wholesale and other receivables
|
|
—
|
|
|
(2,408
|
)
|
|
—
|
|
|
(2,408
|
)
|
||||
Provision for deferred income taxes
|
|
573
|
|
|
(770
|
)
|
|
—
|
|
|
(197
|
)
|
||||
Decrease/(Increase) in intersegment receivables/payables
|
|
(558
|
)
|
|
558
|
|
|
—
|
|
|
—
|
|
||||
Decrease/(Increase) in accounts receivable and other assets
|
|
(1,999
|
)
|
|
(240
|
)
|
|
—
|
|
|
(2,239
|
)
|
||||
Decrease/(Increase) in inventory
|
|
(828
|
)
|
|
—
|
|
|
—
|
|
|
(828
|
)
|
||||
Increase/(Decrease) in accounts payable and accrued and other liabilities
|
|
6,521
|
|
|
260
|
|
|
—
|
|
|
6,781
|
|
||||
Other
|
|
89
|
|
|
(72
|
)
|
|
—
|
|
|
17
|
|
||||
Interest supplements and residual value support to Ford Credit
|
|
(5,205
|
)
|
|
5,205
|
|
|
—
|
|
|
—
|
|
||||
Net cash provided by/(used in) operating activities
|
|
$
|
6,851
|
|
|
$
|
8,171
|
|
|
$
|
—
|
|
|
$
|
15,022
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
||||||||
Capital spending
|
|
$
|
(7,737
|
)
|
|
$
|
(48
|
)
|
|
$
|
—
|
|
|
$
|
(7,785
|
)
|
Acquisitions of finance receivables and operating leases
|
|
—
|
|
|
(62,924
|
)
|
|
—
|
|
|
(62,924
|
)
|
||||
Collections of finance receivables and operating leases
|
|
—
|
|
|
50,880
|
|
|
—
|
|
|
50,880
|
|
||||
Purchases of marketable and other securities
|
|
(13,508
|
)
|
|
(3,632
|
)
|
|
—
|
|
|
(17,140
|
)
|
||||
Sales and maturities of marketable and other securities
|
|
15,356
|
|
|
5,171
|
|
|
—
|
|
|
20,527
|
|
||||
Settlements of derivatives
|
|
132
|
|
|
226
|
|
|
—
|
|
|
358
|
|
||||
Other
|
|
(174
|
)
|
|
(3
|
)
|
|
—
|
|
|
(177
|
)
|
||||
Investing activity (to)/from other segments
|
|
2,711
|
|
|
154
|
|
|
(2,865
|
)
|
|
—
|
|
||||
Net cash provided by/(used in) investing activities
|
|
$
|
(3,220
|
)
|
|
$
|
(10,176
|
)
|
|
$
|
(2,865
|
)
|
|
$
|
(16,261
|
)
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
||||||||
Cash dividends
|
|
$
|
(2,905
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,905
|
)
|
Purchases of common stock
|
|
(164
|
)
|
|
—
|
|
|
—
|
|
|
(164
|
)
|
||||
Net changes in short-term debt
|
|
(543
|
)
|
|
(2,276
|
)
|
|
—
|
|
|
(2,819
|
)
|
||||
Proceeds from issuance of long-term debt
|
|
176
|
|
|
49,954
|
|
|
—
|
|
|
50,130
|
|
||||
Principal payments on long-term debt
|
|
(1,642
|
)
|
|
(42,530
|
)
|
|
—
|
|
|
(44,172
|
)
|
||||
Other
|
|
(42
|
)
|
|
(150
|
)
|
|
—
|
|
|
(192
|
)
|
||||
Financing activity to/(from) other segments
|
|
(154
|
)
|
|
(2,711
|
)
|
|
2,865
|
|
|
—
|
|
||||
Net cash provided by/(used in) financing activities
|
|
$
|
(5,274
|
)
|
|
$
|
2,287
|
|
|
$
|
2,865
|
|
|
$
|
(122
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
|
$
|
(153
|
)
|
|
$
|
(217
|
)
|
|
$
|
—
|
|
|
$
|
(370
|
)
|
|
2017 Lower/(Higher) 2016
|
|
2018 Lower/(Higher) 2017
|
||||
Volume and mix, exchange, and other
|
$
|
(3.9
|
)
|
|
$
|
(0.5
|
)
|
Contribution costs
|
|
|
|
||||
Material excluding commodities
|
(0.1
|
)
|
|
(0.8
|
)
|
||
Commodities
|
(1.2
|
)
|
|
(1.6
|
)
|
||
Warranty
|
0.1
|
|
|
(1.1
|
)
|
||
Freight and other
|
—
|
|
|
(0.4
|
)
|
||
Structural costs
|
(0.7
|
)
|
|
(0.4
|
)
|
||
Special items
|
0.1
|
|
|
—
|
|
||
Total
|
$
|
(5.7
|
)
|
|
$
|
(4.8
|
)
|
|
2017 vs 2016 Increase/
(Decrease)
|
|
2018 vs 2017 Increase/
(Decrease)
|
||||
Net income
|
$
|
7.7
|
|
|
$
|
3.7
|
|
Shareholder distributions
|
(2.7
|
)
|
|
(3.1
|
)
|
||
Other comprehensive income
|
—
|
|
|
(0.4
|
)
|
||
Adoption of accounting standards
|
0.6
|
|
|
—
|
|
||
Common Stock issued (including share-based compensation impacts)
|
0.2
|
|
|
0.2
|
|
||
Total
|
$
|
5.8
|
|
|
$
|
0.4
|
|
•
|
Discount rates.
Our discount rate assumption is based primarily on the results of a cash flow matching analysis, which matches the future cash outflows for each major plan to a yield curve based on high-quality bonds specific to the country of the plan. Benefit payments are discounted at the rates on the curve to determine the year-end obligations.
|
•
|
Expected long-term rate of return on plan assets.
Our expected long-term rate of return considers various sources, primarily inputs from a range of advisors for capital market returns, inflation, bond yields, and other variables, adjusted for specific aspects of our investment strategy by plan. Historical returns also are considered where appropriate. The assumption is based on consideration of all inputs, with a focus on long-term trends to avoid short-term market influences.
|
•
|
Salary growth.
Our salary growth assumption reflects our actual experience, long-term outlook, and assumed inflation.
|
•
|
Inflation.
Our inflation assumption is based on an evaluation of external market indicators, including real gross domestic product growth and central bank inflation targets.
|
•
|
Expected contributions.
Our expected amount and timing of contributions are based on an assessment of minimum requirements, cash availability, and other considerations (e.g., funded status, avoidance of regulatory premiums and levies, and tax efficiency).
|
•
|
Retirement rates.
Retirement rates are developed to reflect actual and projected plan experience.
|
•
|
Mortality rates.
Mortality rates are developed to reflect actual and projected plan experience.
|
•
|
Health care cost trends
. Our health care cost trend assumptions are developed based on historical cost data, the near-term outlook, and an assessment of likely long-term trends.
|
|
|
Basis
Point Change
|
|
Increase/(Decrease) in December 31, 2018 Funded Status
|
||
|
|
|
||||
Factor
|
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
|
Discount rate - obligation
|
|
+/- 100 bps
|
|
$4,250/$(5,150)
|
|
$4,450/$(5,800)
|
Interest rate - fixed income assets
|
|
+/- 100
|
|
(4,100)/4,950
|
|
(2,900)/3,750
|
Net impact on funded status
|
|
|
|
$150/$(200)
|
|
$1,550/$(2,050)
|
|
|
Basis
Point Change
|
|
Increase/(Decrease) in December 31, 2018 Funded Status
|
||
|
|
|
||||
Factor
|
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
|
Interest rate - service cost and interest cost
|
|
+/- 25 bps
|
|
$30/$(30)
|
|
$15/$(15)
|
Expected long-term rate of return on assets
|
|
+/- 25
|
|
(100)/100
|
|
(70)/70
|
|
|
|
|
Worldwide OPEB
|
||
|
|
Basis
Point Change
|
|
(Increase)/Decrease
2018 YE Obligation
|
|
Increase/(Decrease)
2019 Expense
|
|
|
|
|
|||
Factor
|
|
|
|
|||
Discount rate - obligation
|
|
+/- 100 bps
|
|
$600/$(700)
|
|
N/A
|
Interest rate - service cost and interest cost
|
|
+/- 25
|
|
N/A
|
|
$5/$(5)
|
•
|
Business projections.
We make assumptions about the demand for our products in the marketplace. These
|
•
|
Long-term growth rate.
A growth rate is used to calculate the terminal value of the business and is added to the present value of the debt-free interim cash flows. The growth rate is the expected rate at which a business unit’s earnings stream is projected to grow beyond the planning period.
|
•
|
Discount rate.
When measuring possible impairment, future cash flows are discounted at a rate that is consistent with a weighted-average cost of capital that we anticipate a potential market participant would use. Weighted-average cost of capital is an estimate of the overall risk-adjusted pre-tax rate of return expected by equity and debt holders of a business enterprise.
|
•
|
Economic projections.
Assumptions regarding general economic conditions are included in and affect our assumptions regarding industry sales and pricing estimates for our vehicles. These macro-economic assumptions include, but are not limited to, industry sales volumes, inflation, interest rates, prices of raw materials (i.e., commodities), and foreign currency exchange rates.
|
•
|
Frequency.
The number of finance receivables and operating lease contracts that are expected to default over the loss emergence period (“LEP”), measured as repossessions; repossession ratio reflects the number of finance receivables and operating lease contracts that we expect will default over a period of time divided by the average number of contracts outstanding; and
|
•
|
Loss severity.
The expected difference between the amount a customer owes when the finance contract is charged off and the amount received, net of expenses, from selling the repossessed vehicle.
|
Assumption
|
|
Basis Point Change
|
|
Increase/(Decrease)
|
Frequency - repossession ratio
|
|
+/- 10 bps
|
|
$36/$(36)
|
Loss severity per unit
|
|
+/- 100
|
|
4/(4)
|
•
|
Auction value.
Ford Credit’s projection of the market value of the vehicles when sold at the end of the lease; and
|
•
|
Return volume.
Ford Credit’s projection of the number of vehicles that will be returned at lease-end.
|
Assumption
|
|
Basis Point
Change
|
|
Increase/(Decrease)
|
Future auction values
|
|
+/- 100 bps
|
|
$(128)/$128
|
Return volumes
|
|
+/- 100
|
|
18/(18)
|
ASU
|
|
Effective Date (a)
|
|
2018-16
|
Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes
|
|
January 1, 2019
|
2018-08
|
Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made
|
|
January 1, 2019
|
2018-07
|
Improvements to Nonemployee Share-Based Payment Accounting
|
|
January 1, 2019
|
2018-02
|
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
|
|
January 1, 2019
|
2016-02
|
Leases
|
|
January 1, 2019 (b)
|
2018-18
|
Clarifying the Interaction between Collaborative Arrangements and Revenue from Contracts with Customers
|
|
January 1, 2020
|
2018-17
|
Targeted Improvements to Related Party Guidance for Variable Interest Entities
|
|
January 1, 2020
|
2018-15
|
Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract
|
|
January 1, 2020
|
2018-13
|
Fair Value Measurement - Changes to the Disclosure Requirement for Fair Value Measurement
|
|
January 1, 2020
|
2016-13
|
Credit Losses - Measurement of Credit Losses on Financial Instruments
|
|
January 1, 2020
|
2018-14
|
Changes to the Disclosure Requirements for Defined Benefits Plans
|
|
January 1, 2021
|
2018-12
|
Targeted Improvements to the Accounting for Long Duration Contracts
|
|
January 1, 2021
|
(a)
|
Early adoption for each of the standards is permitted.
|
(b)
|
The FASB has issued the following updates to the Leases standard: ASU 2018-01 (Land Easement Practical Expedient for Transition to Leases), ASU 2018-11 (Targeted Improvements to Leases), and ASU 2018-20 (Narrow-Scope Improvements for Lessors). We will adopt the new Leases standard effective January 1, 2019.
|
|
Payments Due by Period
|
|
|
||||||||||||||||
|
2019
|
|
2020 - 2021
|
|
2022 - 2023
|
|
Thereafter
|
|
Total
|
||||||||||
Company excluding Ford Credit
|
|
|
|
|
|
|
|
|
|
||||||||||
On-balance sheet
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt (a)
|
$
|
1,626
|
|
|
$
|
1,927
|
|
|
$
|
740
|
|
|
$
|
9,395
|
|
|
$
|
13,688
|
|
Interest payments relating to long-term debt
|
721
|
|
|
1,304
|
|
|
1,155
|
|
|
7,420
|
|
|
10,600
|
|
|||||
Capital leases (b)
|
95
|
|
|
48
|
|
|
22
|
|
|
7
|
|
|
172
|
|
|||||
Pension funding (c)
|
261
|
|
|
374
|
|
|
378
|
|
|
—
|
|
|
1,013
|
|
|||||
Off-balance sheet
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchase obligations
|
1,357
|
|
|
1,411
|
|
|
682
|
|
|
570
|
|
|
4,020
|
|
|||||
Operating leases
|
343
|
|
|
438
|
|
|
226
|
|
|
403
|
|
|
1,410
|
|
|||||
Total Company excluding Ford Credit
|
4,403
|
|
|
5,502
|
|
|
3,203
|
|
|
17,795
|
|
|
30,903
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Ford Credit
|
|
|
|
|
|
|
|
|
|
||||||||||
On-balance sheet
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt (a)
|
36,503
|
|
|
57,230
|
|
|
21,320
|
|
|
10,703
|
|
|
125,756
|
|
|||||
Interest payments relating to long-term debt
|
3,189
|
|
|
3,775
|
|
|
1,438
|
|
|
814
|
|
|
9,216
|
|
|||||
Off-balance sheet
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchase obligations
|
32
|
|
|
44
|
|
|
29
|
|
|
3
|
|
|
108
|
|
|||||
Operating leases
|
20
|
|
|
26
|
|
|
21
|
|
|
34
|
|
|
101
|
|
|||||
Total Ford Credit
|
39,744
|
|
|
61,075
|
|
|
22,808
|
|
|
11,554
|
|
|
135,181
|
|
|||||
Total Company
|
$
|
44,147
|
|
|
$
|
66,577
|
|
|
$
|
26,011
|
|
|
$
|
29,349
|
|
|
$
|
166,084
|
|
(a)
|
Excludes unamortized debt discounts/premiums, unamortized debt issuance costs, and fair value adjustments.
|
(b)
|
Includes interest payments of $11 million.
|
(c)
|
Amounts represent our estimate of contractually obligated deficit contributions to U.K. and Ford-Werke plans. See
Note 17
of the Notes to the Financial Statements for further information regarding our expected 2019 pension contributions and funded status.
|
Pre-Tax Cash Flow Sensitivity
|
|
2017
|
|
2018
|
||||
One percentage point instantaneous
increase
in interest rates
|
|
$
|
14
|
|
|
$
|
51
|
|
One percentage point instantaneous
decrease
in interest rates (a)
|
|
(14
|
)
|
|
(51
|
)
|
(a)
|
Pre-tax cash flow sensitivity given a one percentage point decrease in interest rates requires an assumption of negative interest rates in markets where existing interest rates are below one percent.
|
•
|
Report of Independent Registered Public Accounting Firm.
|
•
|
Consolidated Income Statement for the years ended December 31,
2016
,
2017
, and
2018
.
|
•
|
Consolidated Statement of Comprehensive Income for the years ended December 31,
2016
,
2017
, and
2018
.
|
•
|
Consolidated Balance Sheet at December 31,
2017
and
2018
.
|
•
|
Consolidated Statement of Cash Flows for the years ended December 31,
2016
,
2017
, and
2018
.
|
•
|
Consolidated Statement of Equity for the years ended December 31,
2016
,
2017
, and
2018
.
|
•
|
Notes to the Financial Statements.
|
Designation
|
Description
|
Schedule II
|
Valuation and Qualifying Accounts
|
Designation
|
|
Description
|
|
Method of Filing
|
|
Restated Certificate of Incorporation, dated August 2, 2000.
|
|
Filed as Exhibit 3-A to our Annual Report on Form 10-K for the year ended December 31, 2000.*
|
|
|
Certificate of Designation of Series A Junior Participating Preferred Stock filed on September 11, 2009.
|
|
Filed as Exhibit 3.1 to our Current Report on Form 8-K filed September 11, 2009.*
|
|
|
By-laws.
|
|
Filed as Exhibit 3.2 to our Form 8-A/A filed on September 11, 2015.*
|
|
|
Tax Benefit Preservation Plan (“TBPP”) dated September 11, 2009 between Ford Motor Company and Computershare Trust Company, N.A.
|
|
Filed as Exhibit 4.1 to our Current Report on Form 8-K filed September 11, 2009.*
|
|
|
Amendment No. 1 to TBPP dated September 11, 2012.
|
|
Filed as Exhibit 4 to our Current Report on Form 8-K filed September 12, 2012.*
|
|
|
Amendment No. 2 to TBPP dated September 9, 2015.
|
|
Filed as Exhibit 4 to our Current Report on Form 8-K filed September 11, 2015.*
|
|
|
Amendment No. 3 to TBPP dated September 13, 2018.
|
|
Filed as Exhibit 4 to our Current Report on Form 8-K filed September 14, 2018.*
|
|
|
Executive Separation Allowance Plan, as amended and restated effective as of January 1, 2018**
|
|
Filed as Exhibit 10.1 to our Current Report on Form 8-K filed February 7, 2018.*
|
|
|
Deferred Compensation Plan for Non-Employee Directors, as amended and restated as of January 1, 2012.**
|
|
Filed as Exhibit 10-B to our Annual Report on Form 10-K for the year ended December 31, 2011.*
|
|
|
2014 Stock Plan for Non-Employee Directors**
|
|
Filed as Exhibit 10-C to our Annual Report on Form 10-K for the year ended December 31, 2013.*
|
|
|
Benefit Equalization Plan, as amended and restated effective as of January 1, 2018.**
|
|
Filed as Exhibit 10.2 to our Current Report on Form 8-K filed February 7, 2018.*
|
Designation
|
|
Description
|
|
Method of Filing
|
|
Description of financial counseling services provided to certain executives.**
|
|
Filed as Exhibit 10-F to our Annual Report on Form 10-K for the year ended December 31, 2002.*
|
|
|
Defined Benefit Supplemental Executive Retirement Plan, as amended and restated effective as of January 1, 2018.**
|
|
Filed as Exhibit 10.3 to our Current Report on Form 8-K filed February 7, 2018.*
|
|
|
Defined Contribution Supplemental Executive Retirement Plan, as amended and restated effective as of January 1, 2017.**
|
|
Filed as Exhibit 10.4 to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2017.*
|
|
|
Description of Director Compensation as of July 13, 2006.**
|
|
Filed as Exhibit 10-G-3 to our Quarterly Report on Form 10-Q for the quarter ended September 30, 2006.*
|
|
|
Amendment to Description of Director Compensation as of February 8, 2012.**
|
|
Filed as Exhibit 10-F-3 to our Annual Report on Form 10-K for the year ended December 31, 2011.*
|
|
|
Amendment to Description of Director Compensation as of July 1, 2013.**
|
|
Filed as Exhibit 10-G-2 to our Annual Report on Form 10-K for the year ended December 31, 2013.*
|
|
|
Amendment to Description of Director Compensation as of January 1, 2017.**
|
|
Filed as Exhibit 10-G-3 to our Annual Report on Form 10-K for the year ended December 31, 2016.*
|
|
|
2008 Long-Term Incentive Plan.**
|
|
Filed as Exhibit 10.1 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2008.*
|
|
|
Description of Matching Gift Program and Vehicle Evaluation Program for Non-Employee Directors.**
|
|
Filed as Exhibit 10-I to our Annual Report on Form 10-K/A for the year ended December 31, 2005.*
|
|
|
Non-Employee Directors Life Insurance and Optional Retirement Plan as amended and restated as of December 31, 2010.**
|
|
Filed as Exhibit 10-I to our Annual Report on Form 10-K for the year ended December 31, 2010.*
|
|
Exhibit 10-K
|
|
Description of Non-Employee Directors Accidental Death, Dismemberment and Permanent Total Disablement Indemnity.**
|
|
Filed as Exhibit 10-S to our Annual Report on Form 10-K for the year ended December 31, 1992.*
|
|
Description of Amendment to Basic Life Insurance and Accidental Death & Dismemberment Insurance.**
|
|
Filed as Exhibit 10-K-1 to our Annual Report on Form 10-K for the year ended December 31, 2013.*
|
|
|
Description of Compensation Arrangements for Mark Fields.**
|
|
Filed as Exhibit 10-L to our Annual Report on Form 10-K for the year ended December 31, 2014.*
|
|
|
Executive Separation Waiver and Release Agreement between Ford Motor Company and Mark Fields dated May 21, 2017.**
|
|
Filed as Exhibit 10 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.*
|
|
|
Select Retirement Plan, as amended and restated effective as of January 1, 2018.**
|
|
Filed as Exhibit 10.4 to our Current Report on Form 8-K filed February 7, 2018.*
|
|
|
Deferred Compensation Plan, as amended and restated as of December 31, 2010.**
|
|
Filed as Exhibit 10-M to our Annual Report on Form 10-K for the year ended December 31, 2010.*
|
|
|
Suspension of Open Enrollment in Deferred Compensation Plan.**
|
|
Filed as Exhibit 10-M-1 to our Annual Report on Form 10-K for the year ended December 31, 2009.*
|
|
|
Annual Incentive Compensation Plan, as amended and restated effective as of March 1, 2018.**
|
|
Filed as Exhibit 10-O-2 to our Annual Report on Form 10-K for the year ended December 31, 2017.*
|
|
|
Annual Incentive Compensation Plan Metrics for 2017.**
|
|
Filed as Exhibit 10-O-4 to our Annual Report on Form 10-K for the year ended December 31, 2016.*
|
|
|
Annual Incentive Compensation Plan Metrics for 2018.**
|
|
Filed as Exhibit 10.1 to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2018.*
|
|
|
Performance-Based Restricted Stock Unit Metrics for 2015.**
|
|
Filed as Exhibit 10-O-11 to our Annual Report on Form 10-K for the year ended December 31, 2014.*
|
|
|
Performance-Based Restricted Stock Unit Metrics for 2016.**
|
|
Filed as Exhibit 10-O-9 to our Annual Report on Form 10-K for the year ended December 31, 2015.*
|
|
|
Performance-Based Restricted Stock Unit Metrics for 2017.**
|
|
Filed as Exhibit 10-O-10 to our Annual Report on Form 10-K for the year ended December 31, 2016.*
|
|
|
Performance-Based Restricted Stock Unit Metrics for 2018.**
|
|
Filed as Exhibit 10.2 to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2018.*
|
|
|
Executive Compensation Recoupment Policy.**
|
|
Filed as Exhibit 10-N-8 to our Annual Report on Form 10-K for the year ended December 31, 2010.*
|
|
|
Incremental Bonus Description.**
|
|
Filed as Exhibit 10-N-9 to our Annual Report on Form 10-K for the year ended December 31, 2010.*
|
|
|
1998 Long-Term Incentive Plan, as amended and restated effective as of January 1, 2003.**
|
|
Filed as Exhibit 10-R to our Annual Report on Form 10-K for the year ended December 31, 2002.*
|
|
|
Amendment to Ford Motor Company 1998 Long-Term Incentive Plan (effective as of January 1, 2006).**
|
|
Filed as Exhibit 10-P-1 to our Annual Report on Form 10-K/A for the year ended December 31, 2005.*
|
|
|
Form of Stock Option Terms and Conditions for Long-Term Incentive Plan.**
|
|
Filed as Exhibit 10-P-2 to our Annual Report on Form 10-K for the year ended December 31, 2017.*
|
|
|
Form of Stock Option Agreement for Long-Term Incentive Plan.**
|
|
Filed as Exhibit 10-P-3 to our Annual Report on Form 10-K for the year ended December 31, 2017.*
|
|
|
Form of Stock Option Agreement (ISO) for Long-Term Incentive Plan.**
|
|
Filed as Exhibit 10-P-4 to our Annual Report on Form 10-K for the year ended December 31, 2017.*
|
|
|
Form of Stock Option Agreement (U.K. NQO) for Long-Term Incentive Plan.**
|
|
Filed as Exhibit 10-P-5 to our Annual Report on Form 10-K for the year ended December 31, 2017.*
|
Designation
|
|
Description
|
|
Method of Filing
|
|
Form of Stock Option (U.K.) Terms and Conditions for Long-Term Incentive Plan.**
|
|
Filed as Exhibit 10-P-6 to our Annual Report on Form 10-K for the year ended December 31, 2017.*
|
|
|
Form of Restricted Stock Grant Letter.**
|
|
Filed as Exhibit 10-P-7 to our Annual Report on Form 10-K for the year ended December 31, 2017.*
|
|
|
Form of Final Award Notification Letter for Performance-Based Restricted Stock Units.**
|
|
Filed as Exhibit 10-P-8 to our Annual Report on Form 10-K for the year ended December 31, 2017.*
|
|
|
Form of Annual Equity Grant Letter V.1.**
|
|
Filed as Exhibit 10-P-9 to our Annual Report on Form 10-K for the year ended December 31, 2017.*
|
|
|
Form of Annual Equity Grant Letter V.2.**
|
|
Filed as Exhibit 10-P-10 to our Annual Report on Form 10-K for the year ended December 31, 2017.*
|
|
|
Long-Term Incentive Plan Restricted Stock Unit Agreement.**
|
|
Filed as Exhibit 10-P-11 to our Annual Report on Form 10-K for the year ended December 31, 2017.*
|
|
|
Long-Term Incentive Plan Restricted Stock Unit Terms and Conditions.**
|
|
Filed as Exhibit 10-P-12 to our Annual Report on Form 10-K for the year ended December 31, 2017.*
|
|
|
Form of Final Award Agreement for Performance-Based Restricted Stock Units under Long-Term Incentive Plan.**
|
|
Filed as Exhibit 10-P-13 to our Annual Report on Form 10-K for the year ended December 31, 2017.*
|
|
|
Form of Final Award Terms and Conditions for Performance-Based Restricted Stock Units under Long-Term Incentive Plan.**
|
|
Filed as Exhibit 10-P-14 to our Annual Report on Form 10-K for the year ended December 31, 2017.*
|
|
|
Form of Notification Letter for Time-Based Restricted Stock Units.**
|
|
Filed as Exhibit 10-P-15 to our Annual Report on Form 10-K for the year ended December 31, 2017.*
|
|
|
Agreement dated January 13, 1999 between Ford Motor Company and Edsel B. Ford II.**
|
|
Filed as Exhibit 10-X to our Annual Report on Form 10-K for the year ended December 31, 1998.*
|
|
|
Amendment dated May 5, 2010 to the Consulting Agreement between Ford Motor Company and Edsel B. Ford II.**
|
|
Filed as Exhibit 10.3 to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2010.*
|
|
|
Amendment dated January 1, 2012 to the Consulting Agreement between Ford Motor Company and Edsel B. Ford II.**
|
|
Filed as Exhibit 10-P-2 to our Annual Report on Form 10-K for the year ended December 31, 2011.*
|
|
|
Amended and Restated Relationship Agreement dated April 30, 2015 between Ford Motor Company and Ford Motor Credit Company LLC.
|
|
Filed as Exhibit 10.2 to our Current Report on Form 8-K filed May 1, 2015.*
|
|
|
Form of Trade Secrets/Non-Compete Statement between Ford and certain of its Executive Officers.**
|
|
Filed as Exhibit 10-V to our Annual Report on Form 10-K for the year ended December 31, 2003.*
|
|
|
Arrangement between Ford Motor Company and William C. Ford, Jr., dated February 24, 2009.**
|
|
Filed as Exhibit 10-V to our Annual Report on Form 10-K for the year ended December 31, 2008.*
|
|
|
2015 Incentive Compensation Grants - Exclusion of Pension & OPEB Accounting Change.**
|
|
Filed as Exhibit 10-U to our Annual Report on Form 10-K for the year ended December 31, 2015.*
|
|
|
Description of Company Practices regarding Club Memberships for Executives.**
|
|
Filed as Exhibit 10-BB to our Annual Report on Form 10-K for the year ended December 31, 2006.*
|
|
|
Amended and Restated Credit Agreement dated as of November 24, 2009.
|
|
Filed as Exhibit 99.2 to our Current Report on Form 8-K filed November 25, 2009.*
|
|
|
Seventh Amendment dated as of March 15, 2012 to our Credit Agreement dated as of December 15, 2006, as amended and restated as of November 24, 2009, and as further amended.
|
|
Filed as Exhibit 99.2 to our Current Report on Form 8-K filed March 15, 2012.*
|
|
|
Ninth Amendment dated as of April 30, 2013 to our Credit Agreement dated as of December 15, 2006, as amended and restated as of November 24, 2009, and as further amended.
|
|
Filed as Exhibit 10 to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2013.*
|
|
|
Tenth Amendment dated as of April 30, 2014 to our Credit Agreement dated as of December 15, 2006, as amended and restated as of November 24, 2009, and as further amended.
|
|
Filed as Exhibit 10.1 to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2014.*
|
|
|
Eleventh Amendment dated as of April 30, 2015 to our Credit Agreement dated as of December 15, 2006, as amended and restated as of November 24, 2009, as amended and restated as of April 30, 2014, and as further amended, including the Third Amended and Restated Credit Agreement.
|
|
Filed as Exhibit 10.1 to our Current Report on Form 8-K filed May 1, 2015.*
|
|
|
Twelfth Amendment dated as of April 29, 2016 to our Credit Agreement dated as of December 15, 2006, as amended and restated as of November 24, 2009, as amended and restated as of April 30, 2014, and as further amended and restated as of April 30, 2015.
|
|
Filed as Exhibit 10 to our Current Report on Form 8-K filed April 29, 2016.*
|
|
|
Thirteenth Amendment dated as of April 28, 2017 to our Credit Agreement dated as of December 15, 2006, as amended and restated as of November 24, 2009, as amended and restated as of April 30, 2014, and as further amended and restated as of April 30, 2015.
|
|
Filed as Exhibit 10 to our Current Report on Form 8-K filed April 28, 2017.*
|
Designation
|
|
Description
|
|
Method of Filing
|
|
Fourteenth Amendment dated as of April 26, 2018 to our Credit Agreement dated as of December 15, 2006, as amended and restated as of November 24, 2009, as amended and restated as of April 30, 2014, and as further amended and restated as of April 30, 2015.
|
|
Filed as Exhibit 10 to our Current Report on Form 8-K filed April 26, 2018.*
|
|
|
Loan Arrangement and Reimbursement Agreement between Ford Motor Company and the U.S. Department of Energy dated as of September 16, 2009.
|
|
Filed as Exhibit 10.1 to our Current Report on Form 8-K filed September 22, 2009.*
|
|
|
Note Purchase Agreement dated as of September 16, 2009 among the Federal Financing Bank, Ford Motor Company, and the U.S. Secretary of Energy.
|
|
Filed as Exhibit 10.2 to our Current Report on Form 8-K filed September 22, 2009.*
|
|
|
List of Subsidiaries of Ford as of January 31, 2019.
|
|
Filed with this Report.
|
|
|
Consent of Independent Registered Public Accounting Firm.
|
|
Filed with this Report.
|
|
|
Powers of Attorney.
|
|
Filed with this Report.
|
|
|
Rule 15d-14(a) Certification of CEO.
|
|
Filed with this Report.
|
|
|
Rule 15d-14(a) Certification of CFO.
|
|
Filed with this Report.
|
|
|
Section 1350 Certification of CEO.
|
|
Furnished with this Report.
|
|
|
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.
|
|
***
|
By:
|
/s/ Cathy O’Callaghan
|
|
Cathy O’Callaghan, Vice President and Controller
|
|
(principal accounting officer)
|
|
|
Date:
|
February 21, 2019
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
WILLIAM CLAY FORD, JR.*
|
|
Director, Chairman of the Board, Executive Chairman, Chair of the Office of the Chairman and Chief Executive, and Chair of the Finance Committee
|
|
February 21, 2019
|
William Clay Ford, Jr.
|
|
|
|
|
|
|
|
|
|
JAMES P. HACKETT*
|
|
Director, President and Chief Executive Officer
|
|
February 21, 2019
|
James P. Hackett
|
|
(principal executive officer)
|
|
|
|
|
|
|
|
STEPHEN G. BUTLER*
|
|
Director and Chair of the Audit Committee
|
|
February 21, 2019
|
Stephen G. Butler
|
|
|
|
|
|
|
|
|
|
KIMBERLY A. CASIANO*
|
|
Director
|
|
February 21, 2019
|
Kimberly A. Casiano
|
|
|
|
|
|
|
|
|
|
ANTHONY F. EARLEY, JR.*
|
|
Director and Chair of the Compensation Committee
|
|
February 21, 2019
|
Anthony F. Earley, Jr.
|
|
|
|
|
|
|
|
|
|
EDSEL B. FORD II*
|
|
Director
|
|
February 21, 2019
|
Edsel B. Ford II
|
|
|
|
|
|
|
|
|
|
WILLIAM W. HELMAN IV*
|
|
Director and Chair of the Sustainability and Innovation Committee
|
|
February 21, 2019
|
William W. Helman IV
|
|
|
|
|
|
|
|
|
|
WILLIAM E. KENNARD*
|
|
Director and Chair of the Nominating and Governance Committee
|
|
February 21, 2019
|
William E. Kennard
|
|
|
|
|
|
|
|
|
|
JOHN C. LECHLEITER*
|
|
Director
|
|
February 21, 2019
|
John C. Lechleiter
|
|
|
|
|
|
|
|
|
|
ELLEN R. MARRAM*
|
|
Director
|
|
February 21, 2019
|
Ellen R. Marram
|
|
|
|
|
|
|
|
|
|
JOHN L. THORNTON*
|
|
Director
|
|
February 21, 2019
|
John L. Thornton
|
|
|
|
|
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
JOHN B. VEIHMEYER*
|
|
Director
|
|
February 21, 2019
|
John B. Veihmeyer
|
|
|
|
|
|
|
|
|
|
LYNN M. VOJVODICH*
|
|
Director
|
|
February 21, 2019
|
Lynn M. Vojvodich
|
|
|
|
|
|
|
|
|
|
JOHN S. WEINBERG*
|
|
Director
|
|
February 21, 2019
|
John S. Weinberg
|
|
|
|
|
|
|
|
|
|
BOB SHANKS*
|
|
Chief Financial Officer
|
|
February 21, 2019
|
Bob Shanks
|
|
(principal financial officer)
|
|
|
|
|
|
|
|
CATHY O’CALLAGHAN*
|
|
Vice President and Controller
|
|
February 21, 2019
|
Cathy O’Callaghan
|
|
(principal accounting officer)
|
|
|
|
|
|
|
|
*By: /s/ JONATHAN E. OSGOOD
|
|
|
|
February 21, 2019
|
Jonathan E. Osgood
|
|
|
|
|
Attorney-in-Fact
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31,
|
||||||||||
|
2016
|
|
2017
|
|
2018
|
||||||
Revenues
|
|
|
|
|
|
||||||
Automotive
|
$
|
141,546
|
|
|
$
|
145,653
|
|
|
$
|
148,294
|
|
Ford Credit
|
10,253
|
|
|
11,113
|
|
|
12,018
|
|
|||
Mobility
|
1
|
|
|
10
|
|
|
26
|
|
|||
Total revenues (Note 4)
|
151,800
|
|
|
156,776
|
|
|
160,338
|
|
|||
|
|
|
|
|
|
||||||
Costs and expenses
|
|
|
|
|
|
|
|
||||
Cost of sales
|
126,195
|
|
|
131,321
|
|
|
136,269
|
|
|||
Selling, administrative, and other expenses
|
10,972
|
|
|
11,527
|
|
|
11,403
|
|
|||
Ford Credit interest, operating, and other expenses
|
8,847
|
|
|
9,047
|
|
|
9,463
|
|
|||
Total costs and expenses
|
146,014
|
|
|
151,895
|
|
|
157,135
|
|
|||
|
|
|
|
|
|
||||||
Interest expense on Automotive debt
|
894
|
|
|
1,133
|
|
|
1,171
|
|
|||
Interest expense on Other debt
|
57
|
|
|
57
|
|
|
57
|
|
|||
|
|
|
|
|
|
||||||
Other income/(loss), net (Note 5)
|
169
|
|
|
3,267
|
|
|
2,247
|
|
|||
Equity in net income of affiliated companies
|
1,780
|
|
|
1,201
|
|
|
123
|
|
|||
Income before income taxes
|
6,784
|
|
|
8,159
|
|
|
4,345
|
|
|||
Provision for/(Benefit from) income taxes (Note 7)
|
2,184
|
|
|
402
|
|
|
650
|
|
|||
Net income
|
4,600
|
|
|
7,757
|
|
|
3,695
|
|
|||
Less: Income/(Loss) attributable to noncontrolling interests
|
11
|
|
|
26
|
|
|
18
|
|
|||
Net income attributable to Ford Motor Company
|
$
|
4,589
|
|
|
$
|
7,731
|
|
|
$
|
3,677
|
|
|
|
|
|
|
|
||||||
EARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 8)
|
|||||||||||
Basic income
|
$
|
1.16
|
|
|
$
|
1.94
|
|
|
$
|
0.93
|
|
Diluted income
|
1.15
|
|
|
1.93
|
|
|
0.92
|
|
|
For the years ended December 31,
|
||||||||||
|
2016
|
|
2017
|
|
2018
|
||||||
Net income
|
$
|
4,600
|
|
|
$
|
7,757
|
|
|
$
|
3,695
|
|
Other comprehensive income/(loss), net of tax (Note 21)
|
|
|
|
|
|
||||||
Foreign currency translation
|
(1,024
|
)
|
|
314
|
|
|
(523
|
)
|
|||
Marketable securities
|
(8
|
)
|
|
(34
|
)
|
|
(11
|
)
|
|||
Derivative instruments
|
219
|
|
|
(265
|
)
|
|
183
|
|
|||
Pension and other postretirement benefits
|
56
|
|
|
37
|
|
|
(56
|
)
|
|||
Total other comprehensive income/(loss), net of tax
|
(757
|
)
|
|
52
|
|
|
(407
|
)
|
|||
Comprehensive income
|
3,843
|
|
|
7,809
|
|
|
3,288
|
|
|||
Less: Comprehensive income/(loss) attributable to noncontrolling interests
|
10
|
|
|
24
|
|
|
18
|
|
|||
Comprehensive income attributable to Ford Motor Company
|
$
|
3,833
|
|
|
$
|
7,785
|
|
|
$
|
3,270
|
|
|
December 31,
2017 |
|
December 31,
2018 |
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents (Note 9)
|
$
|
18,492
|
|
|
$
|
16,718
|
|
Marketable securities (Note 9)
|
20,435
|
|
|
17,233
|
|
||
Ford Credit finance receivables, net (Note 10)
|
52,210
|
|
|
54,353
|
|
||
Trade and other receivables, less allowances of $412 and $94
|
10,599
|
|
|
11,195
|
|
||
Inventories (Note 12)
|
11,176
|
|
|
11,220
|
|
||
Other assets
|
3,889
|
|
|
3,930
|
|
||
Total current assets
|
116,801
|
|
|
114,649
|
|
||
|
|
|
|
||||
Ford Credit finance receivables, net (Note 10)
|
56,182
|
|
|
55,544
|
|
||
Net investment in operating leases (Note 13)
|
28,235
|
|
|
29,119
|
|
||
Net property (Note 14)
|
35,327
|
|
|
36,178
|
|
||
Equity in net assets of affiliated companies (Note 15)
|
3,085
|
|
|
2,709
|
|
||
Deferred income taxes (Note 7)
|
10,762
|
|
|
10,412
|
|
||
Other assets
|
8,104
|
|
|
7,929
|
|
||
Total assets
|
$
|
258,496
|
|
|
$
|
256,540
|
|
|
|
|
|
||||
LIABILITIES
|
|
|
|
|
|
||
Payables
|
$
|
23,282
|
|
|
$
|
21,520
|
|
Other liabilities and deferred revenue (Note 16)
|
19,697
|
|
|
20,556
|
|
||
Automotive debt payable within one year (Note 18)
|
3,356
|
|
|
2,314
|
|
||
Ford Credit debt payable within one year (Note 18)
|
48,265
|
|
|
51,179
|
|
||
Total current liabilities
|
94,600
|
|
|
95,569
|
|
||
|
|
|
|
||||
Other liabilities and deferred revenue (Note 16)
|
24,711
|
|
|
23,588
|
|
||
Automotive long-term debt (Note 18)
|
12,575
|
|
|
11,233
|
|
||
Ford Credit long-term debt (Note 18)
|
89,492
|
|
|
88,887
|
|
||
Other long-term debt (Note 18)
|
599
|
|
|
600
|
|
||
Deferred income taxes (Note 7)
|
815
|
|
|
597
|
|
||
Total liabilities
|
222,792
|
|
|
220,474
|
|
||
|
|
|
|
||||
Redeemable noncontrolling interest (Note 20)
|
98
|
|
|
100
|
|
||
|
|
|
|
||||
EQUITY
|
|
|
|
|
|
||
Common Stock, par value $.01 per share (4,000 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
|
21,843
|
|
|
22,006
|
|
||
Retained earnings
|
21,906
|
|
|
22,668
|
|
||
Accumulated other comprehensive income/(loss) (Note 21)
|
(6,959
|
)
|
|
(7,366
|
)
|
||
Treasury stock
|
(1,253
|
)
|
|
(1,417
|
)
|
||
Total equity attributable to Ford Motor Company
|
35,578
|
|
|
35,932
|
|
||
Equity attributable to noncontrolling interests
|
28
|
|
|
34
|
|
||
Total equity
|
35,606
|
|
|
35,966
|
|
||
Total liabilities and equity
|
$
|
258,496
|
|
|
$
|
256,540
|
|
|
December 31,
2017 |
|
December 31,
2018 |
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
3,479
|
|
|
$
|
2,728
|
|
Ford Credit finance receivables, net
|
56,250
|
|
|
58,662
|
|
||
Net investment in operating leases
|
11,503
|
|
|
16,332
|
|
||
Other assets
|
64
|
|
|
27
|
|
||
LIABILITIES
|
|
|
|
||||
Other liabilities and deferred revenue
|
$
|
2
|
|
|
$
|
24
|
|
Debt
|
46,437
|
|
|
53,269
|
|
|
For the years ended December 31,
|
||||||||||
|
2016
|
|
2017
|
|
2018
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
||||||
Net income
|
$
|
4,600
|
|
|
$
|
7,757
|
|
|
$
|
3,695
|
|
Depreciation and tooling amortization
|
9,023
|
|
|
9,122
|
|
|
9,280
|
|
|||
Other amortization
|
(306
|
)
|
|
(669
|
)
|
|
(972
|
)
|
|||
Provision for credit and insurance losses
|
672
|
|
|
717
|
|
|
609
|
|
|||
Pension and other postretirement employee benefits (“OPEB”) expense/(income)
|
2,667
|
|
|
(608
|
)
|
|
400
|
|
|||
Equity investment (earnings)/losses in excess of dividends received
|
(178
|
)
|
|
240
|
|
|
206
|
|
|||
Foreign currency adjustments
|
283
|
|
|
(403
|
)
|
|
529
|
|
|||
Net (gain)/loss on changes in investments in affiliates
|
(139
|
)
|
|
(7
|
)
|
|
(42
|
)
|
|||
Stock compensation
|
210
|
|
|
246
|
|
|
191
|
|
|||
Net change in wholesale and other receivables
|
(1,449
|
)
|
|
(836
|
)
|
|
(2,408
|
)
|
|||
Provision for deferred income taxes
|
1,473
|
|
|
(350
|
)
|
|
(197
|
)
|
|||
Decrease/(Increase) in accounts receivable and other assets
|
(2,855
|
)
|
|
(2,297
|
)
|
|
(2,239
|
)
|
|||
Decrease/(Increase) in inventory
|
(803
|
)
|
|
(970
|
)
|
|
(828
|
)
|
|||
Increase/(Decrease) in accounts payable and accrued and other liabilities
|
6,595
|
|
|
6,089
|
|
|
6,781
|
|
|||
Other
|
57
|
|
|
65
|
|
|
17
|
|
|||
Net cash provided by/(used in) operating activities
|
19,850
|
|
|
18,096
|
|
|
15,022
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from investing activities
|
|
|
|
|
|
||||||
Capital spending
|
(6,992
|
)
|
|
(7,049
|
)
|
|
(7,785
|
)
|
|||
Acquisitions of finance receivables and operating leases
|
(56,007
|
)
|
|
(59,354
|
)
|
|
(62,924
|
)
|
|||
Collections of finance receivables and operating leases
|
38,834
|
|
|
44,641
|
|
|
50,880
|
|
|||
Purchases of marketable and other securities
|
(31,428
|
)
|
|
(27,567
|
)
|
|
(17,140
|
)
|
|||
Sales and maturities of marketable and other securities
|
29,354
|
|
|
29,898
|
|
|
20,527
|
|
|||
Settlements of derivatives
|
825
|
|
|
100
|
|
|
358
|
|
|||
Other
|
112
|
|
|
(29
|
)
|
|
(177
|
)
|
|||
Net cash provided by/(used in) investing activities
|
(25,302
|
)
|
|
(19,360
|
)
|
|
(16,261
|
)
|
|||
|
|
|
|
|
|
||||||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|||
Cash dividends
|
(3,376
|
)
|
|
(2,584
|
)
|
|
(2,905
|
)
|
|||
Purchases of common stock
|
(145
|
)
|
|
(131
|
)
|
|
(164
|
)
|
|||
Net changes in short-term debt
|
3,864
|
|
|
1,229
|
|
|
(2,819
|
)
|
|||
Proceeds from issuance of long-term debt
|
45,961
|
|
|
45,801
|
|
|
50,130
|
|
|||
Principal payments on long-term debt
|
(38,797
|
)
|
|
(40,770
|
)
|
|
(44,172
|
)
|
|||
Other
|
(107
|
)
|
|
(151
|
)
|
|
(192
|
)
|
|||
Net cash provided by/(used in) financing activities
|
7,400
|
|
|
3,394
|
|
|
(122
|
)
|
|||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
|
(265
|
)
|
|
489
|
|
|
(370
|
)
|
|||
Net increase/(decrease) in cash, cash equivalents, and restricted cash
|
$
|
1,683
|
|
|
$
|
2,619
|
|
|
$
|
(1,731
|
)
|
|
|
|
|
|
|
||||||
Cash, cash equivalents, and restricted cash at January 1 (Note 9)
|
$
|
14,336
|
|
|
$
|
16,019
|
|
|
$
|
18,638
|
|
Net increase/(decrease) in cash, cash equivalents, and restricted cash
|
1,683
|
|
|
2,619
|
|
|
(1,731
|
)
|
|||
Cash, cash equivalents, and restricted cash at December 31 (Note 9)
|
$
|
16,019
|
|
|
$
|
18,638
|
|
|
$
|
16,907
|
|
|
Equity Attributable to Ford Motor Company
|
|
|
|
|
||||||||||||||||||||||||||
|
Capital Stock
|
|
Cap. in
Excess of
Par Value
of Stock
|
|
Retained Earnings/(Accumulated Deficit)
|
|
Accumulated Other Comprehensive Income/(Loss) (Note 21)
|
|
Treasury Stock
|
|
Total
|
|
Equity
Attributable
to Non-controlling Interests
|
|
Total
Equity
|
||||||||||||||||
Balance at December 31, 2015
|
$
|
41
|
|
|
$
|
21,421
|
|
|
$
|
14,980
|
|
|
$
|
(6,257
|
)
|
|
$
|
(977
|
)
|
|
$
|
29,208
|
|
|
$
|
15
|
|
|
$
|
29,223
|
|
Net income
|
—
|
|
|
—
|
|
|
4,589
|
|
|
—
|
|
|
—
|
|
|
4,589
|
|
|
11
|
|
|
4,600
|
|
||||||||
Other comprehensive income/(loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(756
|
)
|
|
—
|
|
|
(756
|
)
|
|
(1
|
)
|
|
(757
|
)
|
||||||||
Common stock issued (including share-based compensation impacts)
|
—
|
|
|
209
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
209
|
|
|
—
|
|
|
209
|
|
||||||||
Treasury stock/other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(145
|
)
|
|
(145
|
)
|
|
(3
|
)
|
|
(148
|
)
|
||||||||
Cash dividends declared (a)
|
—
|
|
|
—
|
|
|
(3,376
|
)
|
|
—
|
|
|
—
|
|
|
(3,376
|
)
|
|
(5
|
)
|
|
(3,381
|
)
|
||||||||
Balance at December 31, 2016
|
$
|
41
|
|
|
$
|
21,630
|
|
|
$
|
16,193
|
|
|
$
|
(7,013
|
)
|
|
$
|
(1,122
|
)
|
|
$
|
29,729
|
|
|
$
|
17
|
|
|
$
|
29,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at December 31, 2016
|
$
|
41
|
|
|
$
|
21,630
|
|
|
$
|
16,193
|
|
|
$
|
(7,013
|
)
|
|
$
|
(1,122
|
)
|
|
$
|
29,729
|
|
|
$
|
17
|
|
|
$
|
29,746
|
|
Adoption of accounting standards
|
—
|
|
|
6
|
|
|
566
|
|
|
—
|
|
|
—
|
|
|
572
|
|
|
—
|
|
|
572
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
7,731
|
|
|
—
|
|
|
—
|
|
|
7,731
|
|
|
26
|
|
|
7,757
|
|
||||||||
Other comprehensive income/(loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|
—
|
|
|
54
|
|
|
(2
|
)
|
|
52
|
|
||||||||
Common stock issued (including share-based compensation impacts)
|
—
|
|
|
207
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
207
|
|
|
—
|
|
|
207
|
|
||||||||
Treasury stock/other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(131
|
)
|
|
(131
|
)
|
|
(2
|
)
|
|
(133
|
)
|
||||||||
Cash dividends declared (a)
|
—
|
|
|
—
|
|
|
(2,584
|
)
|
|
—
|
|
|
—
|
|
|
(2,584
|
)
|
|
(11
|
)
|
|
(2,595
|
)
|
||||||||
Balance at December 31, 2017
|
$
|
41
|
|
|
$
|
21,843
|
|
|
$
|
21,906
|
|
|
$
|
(6,959
|
)
|
|
$
|
(1,253
|
)
|
|
$
|
35,578
|
|
|
$
|
28
|
|
|
$
|
35,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at December 31, 2017
|
$
|
41
|
|
|
$
|
21,843
|
|
|
$
|
21,906
|
|
|
$
|
(6,959
|
)
|
|
$
|
(1,253
|
)
|
|
$
|
35,578
|
|
|
$
|
28
|
|
|
$
|
35,606
|
|
Net income
|
—
|
|
|
—
|
|
|
3,677
|
|
|
—
|
|
|
—
|
|
|
3,677
|
|
|
18
|
|
|
3,695
|
|
||||||||
Other comprehensive income/(loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(407
|
)
|
|
—
|
|
|
(407
|
)
|
|
—
|
|
|
(407
|
)
|
||||||||
Common stock issued (including share-based compensation impacts)
|
—
|
|
|
163
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
163
|
|
|
—
|
|
|
163
|
|
||||||||
Treasury stock/other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(164
|
)
|
|
(164
|
)
|
|
—
|
|
|
(164
|
)
|
||||||||
Dividend and dividend equivalents declared (a)
|
—
|
|
|
—
|
|
|
(2,915
|
)
|
|
—
|
|
|
—
|
|
|
(2,915
|
)
|
|
(12
|
)
|
|
(2,927
|
)
|
||||||||
Balance at December 31, 2018
|
$
|
41
|
|
|
$
|
22,006
|
|
|
$
|
22,668
|
|
|
$
|
(7,366
|
)
|
|
$
|
(1,417
|
)
|
|
$
|
35,932
|
|
|
$
|
34
|
|
|
$
|
35,966
|
|
Footnote
|
|
Page
|
Note 1
|
Presentation
|
|
Note 2
|
Summary of Significant Accounting Policies
|
|
Note 3
|
New Accounting Standards
|
|
Note 4
|
Revenue
|
|
Note 5
|
Other Income/(Loss)
|
|
Note 6
|
Share-Based Compensation
|
|
Note 7
|
Income Taxes
|
|
Note 8
|
Capital Stock and Earnings Per Share
|
|
Note 9
|
Cash, Cash Equivalents, and Marketable Securities
|
|
Note 10
|
Ford Credit Finance Receivables
|
|
Note 11
|
Ford Credit Allowance for Credit Losses
|
|
Note 12
|
Inventories
|
|
Note 13
|
Net Investment in Operating Leases
|
|
Note 14
|
Net Property and Lease Commitments
|
|
Note 15
|
Equity in Net Assets of Affiliated Companies
|
|
Note 16
|
Other Liabilities and Deferred Revenue
|
|
Note 17
|
Retirement Benefits
|
|
Note 18
|
Debt and Commitments
|
|
Note 19
|
Derivative Financial Instruments and Hedging Activities
|
|
Note 20
|
Redeemable Noncontrolling Interest
|
|
Note 21
|
Accumulated Other Comprehensive Income/(Loss)
|
|
Note 22
|
Variable Interest Entities
|
|
Note 23
|
Commitments and Contingencies
|
|
Note 24
|
Segment Information
|
|
Note 25
|
Selected Quarterly Financial Data (unaudited)
|
|
Note 26
|
Subsequent Event
|
|
2017
|
|
2018
|
||||||||||||||||||||
|
Automotive
|
|
Mobility
|
|
Ford Credit
|
|
Automotive
|
|
Mobility
|
|
Ford Credit
|
||||||||||||
Trade and other receivables (a)
|
|
|
|
|
$
|
5.8
|
|
|
|
|
|
|
$
|
6.8
|
|
||||||||
Unearned interest supplements and residual support (b)
|
|
|
|
|
(6.1
|
)
|
|
|
|
|
|
(6.8
|
)
|
||||||||||
Finance receivables and other (c)
|
|
|
|
|
1.9
|
|
|
|
|
|
|
2.1
|
|
||||||||||
Intersegment receivables/(payables)
|
$
|
(2.7
|
)
|
|
$
|
(0.1
|
)
|
|
2.8
|
|
|
$
|
(1.2
|
)
|
|
$
|
(1.1
|
)
|
|
2.3
|
|
(a)
|
Automotive receivables (generated primarily from vehicle and parts sales to third parties) sold to Ford Credit.
|
(b)
|
Automotive segment pays amounts to Ford Credit at the point of retail financing or lease origination which represent interest supplements and residual support.
|
(c)
|
Primarily receivables with entities that are consolidated subsidiaries of Ford.
|
|
|
2016
|
|
2017
|
||||||||||||||||||||
|
|
Previously Reported
|
|
As Revised
|
|
Effect of Change
Higher/(Lower)
|
|
Previously Reported
|
|
As Revised
|
|
Effect of Change
Higher/(Lower)
|
||||||||||||
Income statement
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of sales
|
|
$
|
126,183
|
|
|
$
|
126,195
|
|
|
$
|
12
|
|
|
$
|
131,332
|
|
|
$
|
131,321
|
|
|
$
|
(11
|
)
|
Income before income taxes
|
|
6,796
|
|
|
6,784
|
|
|
(12
|
)
|
|
8,148
|
|
|
8,159
|
|
|
11
|
|
||||||
Provision for/(Benefit from) income taxes
|
|
2,189
|
|
|
2,184
|
|
|
(5
|
)
|
|
520
|
|
|
402
|
|
|
(118
|
)
|
||||||
Net income
|
|
4,607
|
|
|
4,600
|
|
|
(7
|
)
|
|
7,628
|
|
|
7,757
|
|
|
129
|
|
||||||
Net income attributable to Ford Motor Company
|
|
4,596
|
|
|
4,589
|
|
|
(7
|
)
|
|
7,602
|
|
|
7,731
|
|
|
129
|
|
||||||
Basic earning per share attributable to Ford Motor Company
|
|
1.16
|
|
|
1.16
|
|
|
—
|
|
|
1.91
|
|
|
1.94
|
|
|
0.03
|
|
||||||
Diluted earning per share attributable to Ford Motor Company
|
|
1.15
|
|
|
1.15
|
|
|
—
|
|
|
1.90
|
|
|
1.93
|
|
|
0.03
|
|
|
|
2017
|
||||||||||
|
|
Previously Reported
|
|
As Revised
|
|
Effect of Change
Higher/(Lower)
|
||||||
Balance sheet
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
Inventories
|
|
$
|
10,277
|
|
|
$
|
11,176
|
|
|
$
|
899
|
|
Deferred income taxes (assets)
|
|
10,973
|
|
|
10,762
|
|
|
(211
|
)
|
|||
Retained earnings
|
|
21,218
|
|
|
21,906
|
|
|
688
|
|
|
|
2016
|
|
2017
|
||||||||||||||||||||
|
|
Previously Reported
|
|
As Revised
|
|
Effect of Change
Higher/(Lower)
|
|
Previously Reported
|
|
As Revised
|
|
Effect of Change
Higher/(Lower)
|
||||||||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
|
$
|
4,607
|
|
|
$
|
4,600
|
|
|
$
|
(7
|
)
|
|
$
|
7,628
|
|
|
$
|
7,757
|
|
|
$
|
129
|
|
Provision for deferred income taxes
|
|
1,478
|
|
|
1,473
|
|
|
(5
|
)
|
|
(232
|
)
|
|
(350
|
)
|
|
(118
|
)
|
||||||
Decrease/(Increase) in inventory
|
|
(815
|
)
|
|
(803
|
)
|
|
12
|
|
|
(959
|
)
|
|
(970
|
)
|
|
(11
|
)
|
•
|
Level 1 - inputs include quoted prices for identical instruments and are the most observable
|
•
|
Level 2 - inputs include quoted prices for similar instruments and observable inputs such as interest rates, currency exchange rates, and yield curves
|
•
|
Level 3 - inputs include data not observable in the market and reflect management judgment about the assumptions market participants would use in pricing the instruments
|
|
2016
|
|
2017
|
|
2018
|
||||||
Engineering, research, and development
|
$
|
7.3
|
|
|
$
|
8.0
|
|
|
$
|
8.2
|
|
Advertising
|
4.3
|
|
|
4.1
|
|
|
4.0
|
|
ASU
|
|
Effective Date
|
|
2017-08
|
Nonrefundable Fees and Other Costs - Premium Amortization on Purchased Callable Debt Securities
|
|
January 1, 2018
|
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
|
|
2017
|
||||||||||||||
|
Automotive
|
|
Mobility
|
|
Ford Credit
|
|
Consolidated
|
||||||||
Vehicles, parts, and accessories
|
$
|
140,171
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
140,171
|
|
Used vehicles
|
2,956
|
|
|
—
|
|
|
—
|
|
|
2,956
|
|
||||
Extended service contracts
|
1,236
|
|
|
—
|
|
|
—
|
|
|
1,236
|
|
||||
Other revenue
|
815
|
|
|
10
|
|
|
219
|
|
|
1,044
|
|
||||
Revenues from sales and services
|
145,178
|
|
|
10
|
|
|
219
|
|
|
145,407
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Leasing income
|
475
|
|
|
—
|
|
|
5,552
|
|
|
6,027
|
|
||||
Financing income
|
—
|
|
|
—
|
|
|
5,184
|
|
|
5,184
|
|
||||
Insurance income
|
—
|
|
|
—
|
|
|
158
|
|
|
158
|
|
||||
Total revenues
|
$
|
145,653
|
|
|
$
|
10
|
|
|
$
|
11,113
|
|
|
$
|
156,776
|
|
|
2018
|
||||||||||||||
|
Automotive
|
|
Mobility
|
|
Ford Credit
|
|
Consolidated
|
||||||||
Vehicles, parts, and accessories
|
$
|
142,532
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
142,532
|
|
Used vehicles
|
3,022
|
|
|
—
|
|
|
—
|
|
|
3,022
|
|
||||
Extended service contracts
|
1,323
|
|
|
—
|
|
|
—
|
|
|
1,323
|
|
||||
Other revenue
|
879
|
|
|
26
|
|
|
218
|
|
|
1,123
|
|
||||
Revenues from sales and services
|
147,756
|
|
|
26
|
|
|
218
|
|
|
148,000
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Leasing income
|
538
|
|
|
—
|
|
|
5,795
|
|
|
6,333
|
|
||||
Financing income
|
—
|
|
|
—
|
|
|
5,841
|
|
|
5,841
|
|
||||
Insurance income
|
—
|
|
|
—
|
|
|
164
|
|
|
164
|
|
||||
Total revenues
|
$
|
148,294
|
|
|
$
|
26
|
|
|
$
|
12,018
|
|
|
$
|
160,338
|
|
|
2016
|
|
2017
|
|
2018
|
||||||
Net periodic pension and OPEB income/(cost), excluding service cost
|
$
|
(1,625
|
)
|
|
$
|
1,757
|
|
|
$
|
786
|
|
Investment-related interest income
|
291
|
|
|
459
|
|
|
667
|
|
|||
Interest income/(expense) on income taxes
|
3
|
|
|
2
|
|
|
33
|
|
|||
Realized and unrealized gains/(losses) on cash equivalents, marketable securities, and other securities
|
2
|
|
|
(23
|
)
|
|
115
|
|
|||
Gains/(Losses) on changes in investments in affiliates
|
139
|
|
|
14
|
|
|
42
|
|
|||
Royalty income
|
714
|
|
|
678
|
|
|
491
|
|
|||
Insurance premiums earned
|
156
|
|
|
—
|
|
|
—
|
|
|||
Other
|
489
|
|
|
380
|
|
|
113
|
|
|||
Total
|
$
|
169
|
|
|
$
|
3,267
|
|
|
$
|
2,247
|
|
|
2016
|
|
2017
|
|
2018
|
||||||
Fair value of vested shares
|
$
|
157
|
|
|
$
|
175
|
|
|
$
|
187
|
|
Compensation cost (a)
|
135
|
|
|
193
|
|
|
162
|
|
(a)
|
Net of tax benefit of
$72 million
,
$52 million
, and
$29 million
in
2016
,
2017
, and
2018
, respectively.
|
|
2016
|
|
2017
|
|
2018
|
||||||
Fair value per stock award
|
$
|
15.56
|
|
|
$
|
12.44
|
|
|
$
|
9.03
|
|
Grant date stock price
|
13.54
|
|
|
12.66
|
|
|
10.40
|
|
|||
Assumptions:
|
|
|
|
|
|
||||||
Ford’s stock price expected volatility (a)
|
23.1
|
%
|
|
23.4
|
%
|
|
22.9
|
%
|
|||
Expected average volatility of peer companies (a)
|
26.4
|
|
|
26.0
|
|
|
25.4
|
|
|||
Risk-free interest rate
|
0.98
|
|
|
1.57
|
|
|
2.46
|
|
|||
Dividend yield
|
4.43
|
|
|
4.74
|
|
|
5.00
|
|
(a)
|
Expected volatility based on
three years
of daily closing share price changes ending on the grant date.
|
|
Shares
|
|
Weighted-
Average Fair Value
|
|||
Outstanding, beginning of year
|
44.4
|
|
|
$
|
13.32
|
|
Granted
|
37.7
|
|
|
9.89
|
|
|
Vested
|
(13.7
|
)
|
|
13.68
|
|
|
Forfeited
|
(4.3
|
)
|
|
13.85
|
|
|
Outstanding, end of year
|
64.1
|
|
|
10.80
|
|
|
2016
|
|
2017
|
|
2018
|
||||||
Income before income taxes (in millions)
|
|
|
|
|
|
||||||
U.S.
|
$
|
5,254
|
|
|
$
|
4,861
|
|
|
$
|
2,051
|
|
Non-U.S.
|
1,530
|
|
|
3,298
|
|
|
2,294
|
|
|||
Total
|
$
|
6,784
|
|
|
$
|
8,159
|
|
|
$
|
4,345
|
|
Provision for/(Benefit from) income taxes (in millions)
|
|
|
|
|
|
|
|
|
|||
Current
|
|
|
|
|
|
|
|
|
|||
Federal
|
$
|
(122
|
)
|
|
$
|
(125
|
)
|
|
$
|
75
|
|
Non-U.S.
|
630
|
|
|
868
|
|
|
690
|
|
|||
State and local
|
12
|
|
|
85
|
|
|
(6
|
)
|
|||
Total current
|
520
|
|
|
828
|
|
|
759
|
|
|||
Deferred
|
|
|
|
|
|
|
|
|
|||
Federal
|
1,318
|
|
|
(1,214
|
)
|
|
(360
|
)
|
|||
Non-U.S.
|
121
|
|
|
593
|
|
|
239
|
|
|||
State and local
|
225
|
|
|
195
|
|
|
12
|
|
|||
Total deferred
|
1,664
|
|
|
(426
|
)
|
|
(109
|
)
|
|||
Total
|
$
|
2,184
|
|
|
$
|
402
|
|
|
$
|
650
|
|
Reconciliation of effective tax rate
|
|
|
|
|
|
|
|
|
|||
U.S. statutory rate
|
35.0
|
%
|
|
35.0
|
%
|
|
21.0
|
%
|
|||
Non-U.S. tax rates under U.S. rates
|
(1.0
|
)
|
|
(4.9
|
)
|
|
(1.2
|
)
|
|||
State and local income taxes
|
2.3
|
|
|
2.2
|
|
|
2.0
|
|
|||
General business credits
|
(3.1
|
)
|
|
(3.6
|
)
|
|
(9.2
|
)
|
|||
Dispositions and restructurings
|
7.4
|
|
|
(11.7
|
)
|
|
4.6
|
|
|||
U.S. tax on non-U.S. earnings
|
(5.6
|
)
|
|
(7.0
|
)
|
|
8.1
|
|
|||
Prior year settlements and claims
|
—
|
|
|
(0.2
|
)
|
|
1.1
|
|
|||
Tax-exempt income
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|||
Enacted change in tax laws
|
(4.2
|
)
|
|
(8.2
|
)
|
|
(3.0
|
)
|
|||
Valuation allowances
|
2.7
|
|
|
5.6
|
|
|
(9.6
|
)
|
|||
Other
|
(0.4
|
)
|
|
(2.3
|
)
|
|
1.2
|
|
|||
Effective rate
|
32.2
|
%
|
|
4.9
|
%
|
|
15.0
|
%
|
|
2017
|
|
2018
|
||||
Deferred tax assets
|
|
|
|
||||
Employee benefit plans
|
$
|
5,293
|
|
|
$
|
4,039
|
|
Net operating loss carryforwards
|
2,235
|
|
|
1,825
|
|
||
Tax credit carryforwards
|
9,122
|
|
|
9,199
|
|
||
Research expenditures
|
577
|
|
|
437
|
|
||
Dealer and dealers’ customer allowances and claims
|
1,442
|
|
|
1,552
|
|
||
Other foreign deferred tax assets
|
430
|
|
|
648
|
|
||
All other
|
1,591
|
|
|
1,765
|
|
||
Total gross deferred tax assets
|
20,690
|
|
|
19,465
|
|
||
Less: valuation allowances
|
(1,492
|
)
|
|
(973
|
)
|
||
Total net deferred tax assets
|
19,198
|
|
|
18,492
|
|
||
Deferred tax liabilities
|
|
|
|
|
|
||
Leasing transactions
|
4,049
|
|
|
3,215
|
|
||
Deferred income
|
253
|
|
|
—
|
|
||
Depreciation and amortization (excluding leasing transactions)
|
2,646
|
|
|
2,865
|
|
||
Finance receivables
|
523
|
|
|
639
|
|
||
Other foreign deferred tax liabilities
|
842
|
|
|
948
|
|
||
All other
|
938
|
|
|
1,010
|
|
||
Total deferred tax liabilities
|
9,251
|
|
|
8,677
|
|
||
Net deferred tax assets/(liabilities)
|
$
|
9,947
|
|
|
$
|
9,815
|
|
|
2017
|
|
2018
|
||||
Beginning balance
|
$
|
1,586
|
|
|
$
|
2,063
|
|
Increase – tax positions in prior periods
|
716
|
|
|
90
|
|
||
Increase – tax positions in current period
|
44
|
|
|
45
|
|
||
Decrease – tax positions in prior periods
|
(22
|
)
|
|
(133
|
)
|
||
Settlements
|
(263
|
)
|
|
—
|
|
||
Lapse of statute of limitations
|
(10
|
)
|
|
—
|
|
||
Foreign currency translation adjustment
|
12
|
|
|
(18
|
)
|
||
Ending balance
|
$
|
2,063
|
|
|
$
|
2,047
|
|
|
2016
|
|
2017
|
|
2018
|
||||||
Basic and Diluted Income Attributable to Ford Motor Company
|
|
|
|
|
|
||||||
Basic income
|
$
|
4,589
|
|
|
$
|
7,731
|
|
|
$
|
3,677
|
|
Diluted income
|
4,589
|
|
|
7,731
|
|
|
3,677
|
|
|||
|
|
|
|
|
|
||||||
Basic and Diluted Shares
|
|
|
|
|
|
|
|
||||
Basic shares (average shares outstanding)
|
3,973
|
|
|
3,975
|
|
|
3,974
|
|
|||
Net dilutive options, unvested restricted stock units, and unvested restricted stock shares
|
26
|
|
|
23
|
|
|
24
|
|
|||
Diluted shares
|
3,999
|
|
|
3,998
|
|
|
3,998
|
|
|
|
|
December 31, 2017
|
||||||||||||||
|
Fair Value
Level
|
|
Automotive
|
|
Mobility
|
|
Ford Credit
|
|
Consolidated
|
||||||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government
|
1
|
|
$
|
913
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
913
|
|
U.S. government agencies
|
2
|
|
433
|
|
|
—
|
|
|
300
|
|
|
733
|
|
||||
Non-U.S. government and agencies
|
2
|
|
—
|
|
|
—
|
|
|
703
|
|
|
703
|
|
||||
Corporate debt
|
2
|
|
55
|
|
|
—
|
|
|
25
|
|
|
80
|
|
||||
Total marketable securities classified as cash equivalents
|
|
|
1,401
|
|
|
—
|
|
|
1,028
|
|
|
2,429
|
|
||||
Cash, time deposits, and money market funds
|
|
|
7,529
|
|
|
4
|
|
|
8,530
|
|
|
16,063
|
|
||||
Total cash and cash equivalents
|
|
|
$
|
8,930
|
|
|
$
|
4
|
|
|
$
|
9,558
|
|
|
$
|
18,492
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Marketable securities
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government
|
1
|
|
$
|
5,580
|
|
|
$
|
—
|
|
|
$
|
966
|
|
|
$
|
6,546
|
|
U.S. government agencies
|
2
|
|
2,484
|
|
|
—
|
|
|
384
|
|
|
2,868
|
|
||||
Non-U.S. government and agencies
|
2
|
|
5,270
|
|
|
—
|
|
|
660
|
|
|
5,930
|
|
||||
Corporate debt
|
2
|
|
4,031
|
|
|
—
|
|
|
848
|
|
|
4,879
|
|
||||
Equities (a)
|
1
|
|
138
|
|
|
—
|
|
|
—
|
|
|
138
|
|
||||
Other marketable securities
|
2
|
|
51
|
|
|
—
|
|
|
23
|
|
|
74
|
|
||||
Total marketable securities
|
|
|
$
|
17,554
|
|
|
$
|
—
|
|
|
$
|
2,881
|
|
|
$
|
20,435
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Restricted Cash
|
|
|
$
|
15
|
|
|
$
|
7
|
|
|
$
|
124
|
|
|
$
|
146
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
December 31, 2018
|
||||||||||||||
|
Fair Value
Level
|
|
Automotive
|
|
Mobility
|
|
Ford Credit
|
|
Consolidated
|
||||||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government
|
1
|
|
$
|
220
|
|
|
$
|
—
|
|
|
$
|
139
|
|
|
$
|
359
|
|
U.S. government agencies
|
2
|
|
496
|
|
|
—
|
|
|
25
|
|
|
521
|
|
||||
Non-U.S. government and agencies
|
2
|
|
169
|
|
|
—
|
|
|
114
|
|
|
283
|
|
||||
Corporate debt
|
2
|
|
174
|
|
|
—
|
|
|
884
|
|
|
1,058
|
|
||||
Total marketable securities classified as cash equivalents
|
|
|
1,059
|
|
|
—
|
|
|
1,162
|
|
|
2,221
|
|
||||
Cash, time deposits, and money market funds
|
|
|
5,999
|
|
|
53
|
|
|
8,445
|
|
|
14,497
|
|
||||
Total cash and cash equivalents
|
|
|
$
|
7,058
|
|
|
$
|
53
|
|
|
$
|
9,607
|
|
|
$
|
16,718
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Marketable securities
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government
|
1
|
|
$
|
3,014
|
|
|
$
|
—
|
|
|
$
|
289
|
|
|
$
|
3,303
|
|
U.S. government agencies
|
2
|
|
1,953
|
|
|
—
|
|
|
65
|
|
|
2,018
|
|
||||
Non-U.S. government and agencies
|
2
|
|
4,674
|
|
|
—
|
|
|
610
|
|
|
5,284
|
|
||||
Corporate debt
|
2
|
|
5,614
|
|
|
—
|
|
|
198
|
|
|
5,812
|
|
||||
Equities (a)
|
1
|
|
424
|
|
|
—
|
|
|
—
|
|
|
424
|
|
||||
Other marketable securities
|
2
|
|
246
|
|
|
—
|
|
|
146
|
|
|
392
|
|
||||
Total marketable securities
|
|
|
$
|
15,925
|
|
|
$
|
—
|
|
|
$
|
1,308
|
|
|
$
|
17,233
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Restricted Cash
|
|
|
$
|
16
|
|
|
$
|
33
|
|
|
$
|
140
|
|
|
$
|
189
|
|
|
December 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
|
||||||||||||||
Automotive
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. government
|
$
|
3,669
|
|
|
$
|
—
|
|
|
$
|
(18
|
)
|
|
$
|
3,651
|
|
|
$
|
1,377
|
|
|
$
|
2,274
|
|
|
$
|
—
|
|
U.S. government agencies
|
1,915
|
|
|
—
|
|
|
(15
|
)
|
|
1,900
|
|
|
265
|
|
|
1,620
|
|
|
15
|
|
|||||||
Non-U.S. government and agencies
|
4,021
|
|
|
—
|
|
|
(28
|
)
|
|
3,993
|
|
|
197
|
|
|
3,771
|
|
|
25
|
|
|||||||
Corporate debt
|
1,716
|
|
|
1
|
|
|
(8
|
)
|
|
1,709
|
|
|
194
|
|
|
1,509
|
|
|
6
|
|
|||||||
Other marketable securities
|
17
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
16
|
|
|
1
|
|
|||||||
Total
|
$
|
11,338
|
|
|
$
|
1
|
|
|
$
|
(69
|
)
|
|
$
|
11,270
|
|
|
$
|
2,033
|
|
|
$
|
9,190
|
|
|
$
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
December 31, 2018
|
|
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
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
|
||||||||||||||
Automotive
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. government
|
$
|
2,933
|
|
|
$
|
5
|
|
|
$
|
(10
|
)
|
|
$
|
2,928
|
|
|
$
|
1,714
|
|
|
$
|
1,214
|
|
|
$
|
—
|
|
U.S. government agencies
|
1,920
|
|
|
—
|
|
|
(18
|
)
|
|
1,902
|
|
|
797
|
|
|
1,087
|
|
|
18
|
|
|||||||
Non-U.S. government and agencies
|
3,841
|
|
|
4
|
|
|
(37
|
)
|
|
3,808
|
|
|
194
|
|
|
3,614
|
|
|
—
|
|
|||||||
Corporate debt
|
4,010
|
|
|
3
|
|
|
(33
|
)
|
|
3,980
|
|
|
1,148
|
|
|
2,830
|
|
|
2
|
|
|||||||
Other marketable securities
|
207
|
|
|
—
|
|
|
—
|
|
|
207
|
|
|
1
|
|
|
134
|
|
|
72
|
|
|||||||
Total
|
$
|
12,911
|
|
|
$
|
12
|
|
|
$
|
(98
|
)
|
|
$
|
12,825
|
|
|
$
|
3,854
|
|
|
$
|
8,879
|
|
|
$
|
92
|
|
|
2016
|
|
2017
|
|
2018
|
||||||
Automotive
|
|
|
|
|
|
||||||
Sales proceeds
|
$
|
69
|
|
|
$
|
3,315
|
|
|
$
|
5,512
|
|
Gross realized gains
|
1
|
|
|
3
|
|
|
1
|
|
|||
Gross realized losses
|
—
|
|
|
8
|
|
|
21
|
|
|
December 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
|
$
|
2,382
|
|
|
$
|
(9
|
)
|
|
$
|
903
|
|
|
$
|
(9
|
)
|
|
$
|
3,285
|
|
|
$
|
(18
|
)
|
U.S. government agencies
|
1,625
|
|
|
(12
|
)
|
|
260
|
|
|
(3
|
)
|
|
1,885
|
|
|
(15
|
)
|
||||||
Non-U.S. government and agencies
|
3,148
|
|
|
(20
|
)
|
|
510
|
|
|
(8
|
)
|
|
3,658
|
|
|
(28
|
)
|
||||||
Corporate debt
|
1,396
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
1,396
|
|
|
(8
|
)
|
||||||
Total
|
$
|
8,551
|
|
|
$
|
(49
|
)
|
|
$
|
1,673
|
|
|
$
|
(20
|
)
|
|
$
|
10,224
|
|
|
$
|
(69
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
December 31, 2018
|
||||||||||||||||||||||
|
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
|
$
|
199
|
|
|
$
|
(1
|
)
|
|
$
|
1,637
|
|
|
$
|
(9
|
)
|
|
$
|
1,836
|
|
|
$
|
(10
|
)
|
U.S. government agencies
|
193
|
|
|
(1
|
)
|
|
1,596
|
|
|
(17
|
)
|
|
1,789
|
|
|
(18
|
)
|
||||||
Non-U.S. government and agencies
|
341
|
|
|
(1
|
)
|
|
2,445
|
|
|
(36
|
)
|
|
2,786
|
|
|
(37
|
)
|
||||||
Corporate debt
|
1,816
|
|
|
(16
|
)
|
|
856
|
|
|
(17
|
)
|
|
2,672
|
|
|
(33
|
)
|
||||||
Other marketable securities
|
125
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
125
|
|
|
—
|
|
||||||
Total
|
$
|
2,674
|
|
|
$
|
(19
|
)
|
|
$
|
6,534
|
|
|
$
|
(79
|
)
|
|
$
|
9,208
|
|
|
$
|
(98
|
)
|
|
December 31,
2017 |
|
December 31,
2018 |
||||
Cash and cash equivalents
|
$
|
18,492
|
|
|
$
|
16,718
|
|
Restricted cash (a)
|
146
|
|
|
189
|
|
||
Total cash, cash equivalents, and restricted cash
|
$
|
18,638
|
|
|
$
|
16,907
|
|
(a)
|
Included in
Other assets
in the non-current assets section of our consolidated balance sheet.
|
|
2017
|
|
2018
|
||||
Consumer
|
|
|
|
||||
Retail financing, gross
|
$
|
78,331
|
|
|
$
|
79,622
|
|
Unearned interest supplements
|
(3,280
|
)
|
|
(3,508
|
)
|
||
Consumer finance receivables
|
75,051
|
|
|
76,114
|
|
||
Non-Consumer
|
|
|
|
|
|
||
Dealer financing
|
33,938
|
|
|
34,372
|
|
||
Non-Consumer finance receivables
|
33,938
|
|
|
34,372
|
|
||
Total recorded investment
|
$
|
108,989
|
|
|
$
|
110,486
|
|
|
|
|
|
||||
Recorded investment in finance receivables
|
$
|
108,989
|
|
|
$
|
110,486
|
|
Allowance for credit losses
|
(597
|
)
|
|
(589
|
)
|
||
Finance receivables, net
|
$
|
108,392
|
|
|
$
|
109,897
|
|
|
|
|
|
||||
Current portion
|
$
|
52,210
|
|
|
$
|
54,353
|
|
Non-current portion
|
56,182
|
|
|
55,544
|
|
||
Finance receivables, net
|
$
|
108,392
|
|
|
$
|
109,897
|
|
|
|
|
|
||||
Net finance receivables subject to fair value (a)
|
$
|
105,106
|
|
|
$
|
106,142
|
|
Fair value
|
104,521
|
|
|
105,676
|
|
(a)
|
At December 31,
2017
and
2018
, Finance receivables, net
includes
$3.3 billion
and
$3.8 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.
|
|
Due in Year Ending December 31,
|
|
|
|
|
||||||||||||||
|
2019
|
|
2020
|
|
2021
|
|
Thereafter
|
|
Total
|
||||||||||
Consumer
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail financing, gross (a)
|
$
|
23,564
|
|
|
$
|
20,518
|
|
|
$
|
16,716
|
|
|
$
|
18,824
|
|
|
$
|
79,622
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-Consumer
|
|
|
|
|
|
|
|
|
|
||||||||||
Dealer financing
|
32,281
|
|
|
661
|
|
|
200
|
|
|
1,230
|
|
|
34,372
|
|
|||||
Total finance receivables
|
$
|
55,845
|
|
|
$
|
21,179
|
|
|
$
|
16,916
|
|
|
$
|
20,054
|
|
|
$
|
113,994
|
|
(a)
|
Contractual maturities of retail financing, gross include
$309 million
of estimated unguaranteed residual values related to direct financing leases.
|
|
2017
|
|
2018
|
||||
Consumer
|
|
|
|
||||
31-60 days past due
|
$
|
748
|
|
|
$
|
859
|
|
61-90 days past due
|
113
|
|
|
123
|
|
||
91-120 days past due
|
36
|
|
|
39
|
|
||
Greater than 120 days past due
|
37
|
|
|
39
|
|
||
Total past due
|
934
|
|
|
1,060
|
|
||
Current
|
74,117
|
|
|
75,054
|
|
||
Consumer finance receivables
|
75,051
|
|
|
76,114
|
|
||
|
|
|
|
||||
Non-Consumer
|
|
|
|
||||
Total past due
|
122
|
|
|
76
|
|
||
Current
|
33,816
|
|
|
34,296
|
|
||
Non-Consumer finance receivables
|
33,938
|
|
|
34,372
|
|
||
Total recorded investment
|
$
|
108,989
|
|
|
$
|
110,486
|
|
•
|
Pass
– current to 60 days past due;
|
•
|
Special Mention
– 61 to 120 days past due and in intensified collection status; and
|
•
|
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; and
|
•
|
Group IV
– poor financial metrics, including dealers classified as uncollectible.
|
|
2017
|
|
2018
|
||||
Dealer Financing
|
|
|
|
||||
Group I
|
$
|
26,252
|
|
|
$
|
27,032
|
|
Group II
|
5,908
|
|
|
5,635
|
|
||
Group III
|
1,640
|
|
|
1,576
|
|
||
Group IV
|
138
|
|
|
129
|
|
||
Total recorded investment
|
$
|
33,938
|
|
|
$
|
34,372
|
|
•
|
Frequency - number of finance receivables contracts that are expected to default over the loss emergence period (“LEP”), measured as repossessions; and
|
•
|
Loss severity - expected difference between the amount a customer owes when the finance contract is charged off and the amount received, net of expenses, from selling the repossessed vehicle.
|
|
2017
|
||||||||||
|
Consumer
|
|
Non-Consumer
|
|
Total
|
||||||
Allowance for credit losses
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
469
|
|
|
$
|
15
|
|
|
$
|
484
|
|
Charge-offs
|
(510
|
)
|
|
(7
|
)
|
|
(517
|
)
|
|||
Recoveries
|
139
|
|
|
9
|
|
|
148
|
|
|||
Provision for credit losses
|
471
|
|
|
(2
|
)
|
|
469
|
|
|||
Other (a)
|
13
|
|
|
—
|
|
|
13
|
|
|||
Ending balance (b)
|
$
|
582
|
|
|
$
|
15
|
|
|
$
|
597
|
|
|
|
|
|
|
|
||||||
Analysis of ending balance of allowance for credit losses
|
|
|
|
|
|||||||
Collective impairment allowance
|
$
|
560
|
|
|
$
|
13
|
|
|
$
|
573
|
|
Specific impairment allowance
|
22
|
|
|
2
|
|
|
24
|
|
|||
Ending balance (b)
|
582
|
|
|
15
|
|
|
597
|
|
|||
|
|
|
|
|
|
||||||
Analysis of ending balance of finance receivables
|
|
|
|
|
|||||||
Collectively evaluated for impairment
|
74,665
|
|
|
33,800
|
|
|
108,465
|
|
|||
Specifically evaluated for impairment
|
386
|
|
|
138
|
|
|
524
|
|
|||
Recorded investment
|
75,051
|
|
|
33,938
|
|
|
108,989
|
|
|||
|
|
|
|
|
|
||||||
Ending balance, net of allowance for credit losses
|
$
|
74,469
|
|
|
$
|
33,923
|
|
|
$
|
108,392
|
|
(a)
|
Primarily represents amounts related to translation adjustments.
|
(b)
|
Total allowance, including for operating leases, was
$668 million
.
|
|
2018
|
||||||||||
|
Consumer
|
|
Non-Consumer
|
|
Total
|
||||||
Allowance for credit losses
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
582
|
|
|
$
|
15
|
|
|
$
|
597
|
|
Charge-offs (a)
|
(528
|
)
|
|
(67
|
)
|
|
(595
|
)
|
|||
Recoveries
|
163
|
|
|
7
|
|
|
170
|
|
|||
Provision for credit losses
|
359
|
|
|
68
|
|
|
427
|
|
|||
Other (b)
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|||
Ending balance (c)
|
$
|
566
|
|
|
$
|
23
|
|
|
$
|
589
|
|
|
|
|
|
|
|
||||||
Analysis of ending balance of allowance for credit losses
|
|
|
|
|
|
|
|||||
Collective impairment allowance
|
$
|
546
|
|
|
$
|
14
|
|
|
$
|
560
|
|
Specific impairment allowance
|
20
|
|
|
9
|
|
|
29
|
|
|||
Ending balance (c)
|
566
|
|
|
23
|
|
|
589
|
|
|||
|
|
|
|
|
|
||||||
Analysis of ending balance of finance receivables
|
|
|
|
|
|
|
|||||
Collectively evaluated for impairment
|
75,744
|
|
|
34,243
|
|
|
109,987
|
|
|||
Specifically evaluated for impairment
|
370
|
|
|
129
|
|
|
499
|
|
|||
Recorded investment
|
76,114
|
|
|
34,372
|
|
|
110,486
|
|
|||
|
|
|
|
|
|
||||||
Ending balance, net of allowance for credit losses
|
$
|
75,548
|
|
|
$
|
34,349
|
|
|
$
|
109,897
|
|
(a)
|
Non-consumer charge-offs primarily reflect a U.S. dealer’s floorplan inventory and dealer loan determined to be uncollectible.
|
(b)
|
Primarily represents amounts related to translation adjustments.
|
(c)
|
Total allowance, including for operating leases, was
$667 million
.
|
|
2017
|
|
2018
|
||||
Raw materials, work-in-process, and supplies
|
$
|
4,397
|
|
|
$
|
4,536
|
|
Finished products
|
6,779
|
|
|
6,684
|
|
||
Total inventories
|
$
|
11,176
|
|
|
$
|
11,220
|
|
|
2017
|
|
2018
|
||||
Automotive Segment
|
|
|
|
||||
Vehicles, net of depreciation
|
$
|
1,574
|
|
|
$
|
1,705
|
|
Ford Credit Segment
|
|
|
|
||||
Vehicles and other equipment, at cost (a)
|
32,659
|
|
|
33,557
|
|
||
Accumulated depreciation
|
(5,927
|
)
|
|
(6,065
|
)
|
||
Allowance for credit losses
|
(71
|
)
|
|
(78
|
)
|
||
Total Ford Credit Segment
|
26,661
|
|
|
27,414
|
|
||
Total
|
$
|
28,235
|
|
|
$
|
29,119
|
|
(a)
|
Includes Ford Credit’s operating lease assets of
$11.5 billion
and
$16.3 billion
at December 31,
2017
and
2018
, respectively, which have been included in certain lease securitization transactions. These net investments in operating leases are available only for payment of the debt or other obligations issued or arising in the securitization transactions; they are not available to pay other obligations or the claims of other creditors.
|
|
2016
|
|
2017
|
|
2018
|
||||||
Operating lease depreciation expense
|
$
|
4,330
|
|
|
$
|
4,135
|
|
|
$
|
3,867
|
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
Thereafter
|
|
Total
|
||||||||||||
Minimum rentals on operating leases
|
$
|
4,708
|
|
|
$
|
2,929
|
|
|
$
|
1,083
|
|
|
$
|
83
|
|
|
$
|
6
|
|
|
$
|
8,809
|
|
|
2017
|
|
2018
|
||||
Land
|
$
|
411
|
|
|
$
|
445
|
|
Buildings and land improvements
|
11,096
|
|
|
11,477
|
|
||
Machinery, equipment, and other
|
37,533
|
|
|
38,720
|
|
||
Software
|
3,118
|
|
|
3,349
|
|
||
Construction in progress
|
2,608
|
|
|
2,066
|
|
||
Total land, plant and equipment, and other
|
54,766
|
|
|
56,057
|
|
||
Accumulated depreciation
|
(29,862
|
)
|
|
(30,243
|
)
|
||
Net land, plant and equipment, and other
|
24,904
|
|
|
25,814
|
|
||
Tooling, net of amortization
|
10,423
|
|
|
10,364
|
|
||
Total
|
$
|
35,327
|
|
|
$
|
36,178
|
|
|
2016
|
|
2017
|
|
2018
|
||||||
Depreciation and other amortization
|
$
|
2,130
|
|
|
$
|
2,292
|
|
|
$
|
2,504
|
|
Tooling amortization
|
2,563
|
|
|
2,695
|
|
|
2,909
|
|
|||
Total
|
$
|
4,693
|
|
|
$
|
4,987
|
|
|
$
|
5,413
|
|
|
|
|
|
|
|
||||||
Maintenance and rearrangement
|
$
|
1,801
|
|
|
$
|
1,970
|
|
|
$
|
1,994
|
|
|
Operating Lease Commitments
|
||
2019
|
$
|
363
|
|
2020
|
271
|
|
|
2021
|
193
|
|
|
2022
|
141
|
|
|
2023
|
106
|
|
|
Thereafter
|
437
|
|
|
Total
|
$
|
1,511
|
|
|
Operating Lease
Expense
|
||
2016
|
$
|
474
|
|
2017
|
526
|
|
|
2018
|
552
|
|
|
Investment Balance
|
|
Ownership Percentage
|
|||||||
|
2017
|
|
2018
|
|
2018
|
|||||
Changan Ford Automobile Corporation, Limited
|
$
|
1,144
|
|
|
$
|
950
|
|
|
50.0
|
%
|
Jiangling Motors Corporation, Limited
|
675
|
|
|
543
|
|
|
32.0
|
|
||
AutoAlliance (Thailand) Co., Ltd.
|
439
|
|
|
431
|
|
|
50.0
|
|
||
Ford Otomotiv Sanayi Anonim Sirketi
|
329
|
|
|
247
|
|
|
41.0
|
|
||
Getrag Ford Transmissions GmbH
|
222
|
|
|
236
|
|
|
50.0
|
|
||
FFS Finance South Africa (Pty) Limited
|
71
|
|
|
81
|
|
|
50.0
|
|
||
Changan Ford Mazda Engine Company, Ltd.
|
84
|
|
|
71
|
|
|
25.0
|
|
||
Ionity Holding GmbH & Co. KG
|
12
|
|
|
42
|
|
|
25.0
|
|
||
DealerDirect LLC
|
33
|
|
|
33
|
|
|
97.7
|
|
||
RouteOne LLC
|
24
|
|
|
31
|
|
|
30.0
|
|
||
Thirdware Solutions Limited
|
12
|
|
|
12
|
|
|
20.0
|
|
||
Percepta, LLC
|
8
|
|
|
10
|
|
|
45.0
|
|
||
Chongqing ANTE Trading Co., Ltd.
|
5
|
|
|
6
|
|
|
10.0
|
|
||
U.S. Council for Automotive Research LLC
|
5
|
|
|
6
|
|
|
33.3
|
|
||
Crash Avoidance Metrics Partnership LLC
|
3
|
|
|
4
|
|
|
50.0
|
|
||
Blue Diamond Parts, LLC
|
3
|
|
|
3
|
|
|
25.0
|
|
||
CNF-Administradora de Consorcio Nacional Ltda.
|
6
|
|
|
3
|
|
|
33.3
|
|
||
Automotive Fuel Cell Cooperation Corporation
|
10
|
|
|
—
|
|
|
49.9
|
|
||
ZF Transmission Tech, LLC
|
—
|
|
|
—
|
|
|
49.0
|
|
||
Total
|
$
|
3,085
|
|
|
$
|
2,709
|
|
|
|
Summarized Balance Sheet
|
2017
|
|
2018
|
||||||||
Current assets
|
$
|
10,191
|
|
|
$
|
8,277
|
|
||||
Non-current assets
|
9,796
|
|
|
9,733
|
|
||||||
Total assets
|
$
|
19,987
|
|
|
$
|
18,010
|
|
||||
|
|
|
|
||||||||
Current liabilities
|
$
|
10,557
|
|
|
$
|
9,190
|
|
||||
Non-current liabilities
|
3,022
|
|
|
3,149
|
|
||||||
Total liabilities
|
$
|
13,579
|
|
|
$
|
12,339
|
|
||||
|
|
|
|
||||||||
Equity attributable to noncontrolling interests
|
$
|
10
|
|
|
$
|
11
|
|
||||
|
|
|
|
|
|
||||||
|
For the years ended December 31,
|
||||||||||
Summarized Income Statement
|
2016
|
|
2017
|
|
2018
|
||||||
Total revenue
|
$
|
36,992
|
|
|
$
|
35,172
|
|
|
$
|
27,196
|
|
Income before income taxes
|
4,401
|
|
|
2,980
|
|
|
484
|
|
|||
Net income
|
3,747
|
|
|
2,584
|
|
|
463
|
|
Balance Sheet
|
2017
|
|
2018
|
||||
Receivables
|
$
|
769
|
|
|
$
|
634
|
|
Payables
|
850
|
|
|
663
|
|
|
2017
|
|
2018
|
||||
Current
|
|
|
|
||||
Dealer and dealers’ customer allowances and claims
|
$
|
10,902
|
|
|
$
|
11,369
|
|
Deferred revenue
|
2,107
|
|
|
2,095
|
|
||
Employee benefit plans
|
1,661
|
|
|
1,755
|
|
||
Accrued interest
|
1,057
|
|
|
988
|
|
||
OPEB
|
348
|
|
|
339
|
|
||
Pension
|
229
|
|
|
204
|
|
||
Other
|
3,393
|
|
|
3,806
|
|
||
Total current other liabilities and deferred revenue
|
$
|
19,697
|
|
|
$
|
20,556
|
|
Non-current
|
|
|
|
|
|
||
Pension
|
$
|
9,932
|
|
|
$
|
9,423
|
|
OPEB
|
5,821
|
|
|
5,220
|
|
||
Dealer and dealers’ customer allowances and claims
|
2,471
|
|
|
2,497
|
|
||
Deferred revenue
|
3,829
|
|
|
3,985
|
|
||
Employee benefit plans
|
1,139
|
|
|
1,080
|
|
||
Other
|
1,519
|
|
|
1,383
|
|
||
Total non-current other liabilities and deferred revenue
|
$
|
24,711
|
|
|
$
|
23,588
|
|
|
Pension Benefits
|
|
|
|
|
||||||||||||
|
U.S. Plans
|
|
Non-U.S. Plans
|
|
Worldwide OPEB
|
||||||||||||
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
||||||
Weighted Average Assumptions at December 31
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Discount rate
|
3.60
|
%
|
|
4.29
|
%
|
|
2.33
|
%
|
|
2.48
|
%
|
|
3.61
|
%
|
|
4.17
|
%
|
Average rate of increase in compensation
|
3.50
|
|
|
3.50
|
|
|
3.37
|
|
|
3.37
|
|
|
3.44
|
|
|
3.44
|
|
Weighted Average Assumptions Used to Determine Net Benefit Cost for the Year Ended December 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Discount rate - Service cost
|
4.18
|
%
|
|
3.67
|
%
|
|
2.51
|
%
|
|
2.39
|
%
|
|
4.15
|
%
|
|
3.70
|
%
|
Effective interest rate on benefit obligation
|
3.40
|
|
|
3.22
|
|
|
2.07
|
|
|
2.02
|
|
|
3.41
|
|
|
3.27
|
|
Expected long-term rate of return on assets
|
6.75
|
|
|
6.75
|
|
|
5.19
|
|
|
4.51
|
|
|
—
|
|
|
—
|
|
Average rate of increase in compensation
|
3.50
|
|
|
3.50
|
|
|
3.38
|
|
|
3.37
|
|
|
3.44
|
|
|
3.44
|
|
|
Pension Benefits
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
U.S. Plans
|
|
Non-U.S. Plans
|
|
Worldwide OPEB
|
||||||||||||||||||||||||||||||
|
2016
|
|
2017
|
|
2018
|
|
2016
|
|
2017
|
|
2018
|
|
2016
|
|
2017
|
|
2018
|
||||||||||||||||||
Service cost
|
$
|
510
|
|
|
$
|
534
|
|
|
$
|
544
|
|
|
$
|
483
|
|
|
$
|
566
|
|
|
$
|
588
|
|
|
$
|
49
|
|
|
$
|
49
|
|
|
$
|
54
|
|
Interest cost
|
1,524
|
|
|
1,525
|
|
|
1,466
|
|
|
782
|
|
|
671
|
|
|
684
|
|
|
194
|
|
|
197
|
|
|
195
|
|
|||||||||
Expected return on assets
|
(2,693
|
)
|
|
(2,734
|
)
|
|
(2,887
|
)
|
|
(1,339
|
)
|
|
(1,375
|
)
|
|
(1,295
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Amortization of prior service costs/(credits)
|
170
|
|
|
143
|
|
|
143
|
|
|
38
|
|
|
37
|
|
|
25
|
|
|
(142
|
)
|
|
(120
|
)
|
|
(109
|
)
|
|||||||||
Net remeasurement (gain)/loss
|
900
|
|
|
(538
|
)
|
|
1,294
|
|
|
1,876
|
|
|
407
|
|
|
(76
|
)
|
|
220
|
|
|
293
|
|
|
(366
|
)
|
|||||||||
Separation programs/other
|
12
|
|
|
74
|
|
|
53
|
|
|
81
|
|
|
18
|
|
|
103
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|||||||||
Settlements and curtailments
|
—
|
|
|
(354
|
)
|
|
(15
|
)
|
|
2
|
|
|
(3
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Net periodic benefit cost/(income)
|
$
|
423
|
|
|
$
|
(1,350
|
)
|
|
$
|
598
|
|
|
$
|
1,923
|
|
|
$
|
321
|
|
|
$
|
27
|
|
|
$
|
321
|
|
|
$
|
421
|
|
|
$
|
(225
|
)
|
|
|
Pension Benefits
|
|
|
|
|
||||||||||||||||||
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
|
Worldwide OPEB
|
||||||||||||||||||
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
||||||||||||
Change in Benefit Obligation
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Benefit obligation at January 1
|
|
$
|
45,746
|
|
|
$
|
46,340
|
|
|
$
|
30,624
|
|
|
$
|
34,098
|
|
|
$
|
5,865
|
|
|
$
|
6,169
|
|
Service cost
|
|
534
|
|
|
544
|
|
|
566
|
|
|
588
|
|
|
49
|
|
|
54
|
|
||||||
Interest cost
|
|
1,525
|
|
|
1,466
|
|
|
671
|
|
|
684
|
|
|
197
|
|
|
195
|
|
||||||
Amendments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
135
|
|
|
—
|
|
|
—
|
|
||||||
Separation programs/other
|
|
35
|
|
|
9
|
|
|
17
|
|
|
97
|
|
|
1
|
|
|
1
|
|
||||||
Curtailments
|
|
(356
|
)
|
|
(15
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
|
—
|
|
|
—
|
|
|
(52
|
)
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
||||||
Plan participant contributions
|
|
24
|
|
|
25
|
|
|
20
|
|
|
19
|
|
|
24
|
|
|
17
|
|
||||||
Benefits paid
|
|
(3,267
|
)
|
|
(2,880
|
)
|
|
(1,316
|
)
|
|
(1,316
|
)
|
|
(368
|
)
|
|
(372
|
)
|
||||||
Foreign exchange translation
|
|
—
|
|
|
—
|
|
|
3,323
|
|
|
(1,858
|
)
|
|
108
|
|
|
(139
|
)
|
||||||
Actuarial (gain)/loss
|
|
2,099
|
|
|
(3,220
|
)
|
|
248
|
|
|
(1,350
|
)
|
|
293
|
|
|
(366
|
)
|
||||||
Benefit obligation at December 31
|
|
46,340
|
|
|
42,269
|
|
|
34,098
|
|
|
31,079
|
|
|
6,169
|
|
|
5,559
|
|
||||||
Change in Plan Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fair value of plan assets at January 1
|
|
41,939
|
|
|
44,160
|
|
|
25,549
|
|
|
29,657
|
|
|
—
|
|
|
—
|
|
||||||
Actual return on plan assets
|
|
5,371
|
|
|
(1,627
|
)
|
|
1,216
|
|
|
21
|
|
|
—
|
|
|
—
|
|
||||||
Company contributions
|
|
133
|
|
|
140
|
|
|
1,624
|
|
|
629
|
|
|
—
|
|
|
—
|
|
||||||
Plan participant contributions
|
|
24
|
|
|
25
|
|
|
20
|
|
|
19
|
|
|
—
|
|
|
—
|
|
||||||
Benefits paid
|
|
(3,267
|
)
|
|
(2,880
|
)
|
|
(1,316
|
)
|
|
(1,316
|
)
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
|
—
|
|
|
—
|
|
|
(52
|
)
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
||||||
Foreign exchange translation
|
|
—
|
|
|
—
|
|
|
2,623
|
|
|
(1,708
|
)
|
|
—
|
|
|
—
|
|
||||||
Other
|
|
(40
|
)
|
|
(44
|
)
|
|
(7
|
)
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
||||||
Fair value of plan assets at December 31
|
|
44,160
|
|
|
39,774
|
|
|
29,657
|
|
|
27,273
|
|
|
—
|
|
|
—
|
|
||||||
Funded status at December 31
|
|
$
|
(2,180
|
)
|
|
$
|
(2,495
|
)
|
|
$
|
(4,441
|
)
|
|
$
|
(3,806
|
)
|
|
$
|
(6,169
|
)
|
|
$
|
(5,559
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amounts Recognized on the Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Prepaid assets
|
|
$
|
386
|
|
|
$
|
165
|
|
|
$
|
3,154
|
|
|
$
|
3,161
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other liabilities
|
|
(2,566
|
)
|
|
(2,660
|
)
|
|
(7,595
|
)
|
|
(6,967
|
)
|
|
(6,169
|
)
|
|
(5,559
|
)
|
||||||
Total
|
|
$
|
(2,180
|
)
|
|
$
|
(2,495
|
)
|
|
$
|
(4,441
|
)
|
|
$
|
(3,806
|
)
|
|
$
|
(6,169
|
)
|
|
$
|
(5,559
|
)
|
Amounts Recognized in Accumulated Other Comprehensive Loss (pre-tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unamortized prior service costs/(credits)
|
|
$
|
238
|
|
|
$
|
95
|
|
|
$
|
191
|
|
|
$
|
285
|
|
|
$
|
(209
|
)
|
|
$
|
97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pension Plans in which Accumulated Benefit Obligation Exceeds Plan Assets at December 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accumulated benefit obligation
|
|
$
|
2,092
|
|
|
$
|
1,965
|
|
|
$
|
11,506
|
|
|
$
|
10,904
|
|
|
|
|
|
|
|
||
Fair value of plan assets
|
|
155
|
|
|
137
|
|
|
5,287
|
|
|
5,232
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accumulated Benefit Obligation at December 31
|
|
$
|
45,081
|
|
|
$
|
41,312
|
|
|
$
|
30,449
|
|
|
$
|
27,787
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pension Plans in which Projected Benefit Obligation Exceeds Plan Assets at December 31
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Projected benefit obligation
|
|
$
|
22,378
|
|
|
$
|
20,529
|
|
|
$
|
13,385
|
|
|
$
|
12,321
|
|
|
|
|
|
||||
Fair value of plan assets
|
|
19,812
|
|
|
17,872
|
|
|
5,790
|
|
|
5,357
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Projected Benefit Obligation at December 31
|
|
$
|
46,340
|
|
|
$
|
42,269
|
|
|
$
|
34,098
|
|
|
$
|
31,079
|
|
|
|
|
|
|
|
Benefit Payments
|
||||||||||
|
|
Pension
|
|
|
||||||||
|
|
U.S. Plans
|
|
Non-U.S.
Plans
|
|
Worldwide
OPEB
|
||||||
2019
|
|
$
|
3,050
|
|
|
$
|
1,290
|
|
|
$
|
350
|
|
2020
|
|
2,820
|
|
|
1,180
|
|
|
340
|
|
|||
2021
|
|
2,790
|
|
|
1,190
|
|
|
340
|
|
|||
2022
|
|
2,760
|
|
|
1,200
|
|
|
330
|
|
|||
2023
|
|
2,760
|
|
|
1,220
|
|
|
330
|
|
|||
2024-2028
|
|
13,640
|
|
|
6,460
|
|
|
1,640
|
|
|
2017
|
||||||||||||||||||||||||||||||||||||||
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Assets measured at NAV (a)
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Assets measured at NAV (a)
|
|
Total
|
||||||||||||||||||||
Asset Category
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
U.S. companies
|
$
|
2,135
|
|
|
$
|
25
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,160
|
|
|
$
|
1,593
|
|
|
$
|
143
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,736
|
|
International companies
|
1,669
|
|
|
38
|
|
|
1
|
|
|
—
|
|
|
1,708
|
|
|
1,333
|
|
|
428
|
|
|
—
|
|
|
—
|
|
|
1,761
|
|
||||||||||
Total equity
|
3,804
|
|
|
63
|
|
|
1
|
|
|
—
|
|
|
3,868
|
|
|
2,926
|
|
|
571
|
|
|
—
|
|
|
—
|
|
|
3,497
|
|
||||||||||
Fixed Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. government and agencies
|
6,603
|
|
|
2,842
|
|
|
—
|
|
|
—
|
|
|
9,445
|
|
|
495
|
|
|
98
|
|
|
—
|
|
|
—
|
|
|
593
|
|
||||||||||
Non-U.S. government
|
—
|
|
|
1,575
|
|
|
—
|
|
|
—
|
|
|
1,575
|
|
|
—
|
|
|
14,088
|
|
|
—
|
|
|
—
|
|
|
14,088
|
|
||||||||||
Corporate bonds
|
—
|
|
|
21,617
|
|
|
4
|
|
|
—
|
|
|
21,621
|
|
|
—
|
|
|
3,217
|
|
|
—
|
|
|
—
|
|
|
3,217
|
|
||||||||||
Mortgage/other asset-backed
|
—
|
|
|
590
|
|
|
—
|
|
|
—
|
|
|
590
|
|
|
—
|
|
|
301
|
|
|
—
|
|
|
—
|
|
|
301
|
|
||||||||||
Commingled funds
|
—
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
251
|
|
|
—
|
|
|
—
|
|
|
251
|
|
||||||||||
Derivative financial instruments, net
|
11
|
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
(2
|
)
|
|
44
|
|
|
—
|
|
|
—
|
|
|
42
|
|
||||||||||
Total fixed income
|
6,614
|
|
|
26,649
|
|
|
4
|
|
|
—
|
|
|
33,267
|
|
|
493
|
|
|
17,999
|
|
|
—
|
|
|
—
|
|
|
18,492
|
|
||||||||||
Alternatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Hedge funds
|
—
|
|
|
—
|
|
|
—
|
|
|
3,060
|
|
|
3,060
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,179
|
|
|
1,179
|
|
||||||||||
Private equity
|
—
|
|
|
—
|
|
|
—
|
|
|
2,322
|
|
|
2,322
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
722
|
|
|
722
|
|
||||||||||
Real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
1,216
|
|
|
1,216
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
461
|
|
|
461
|
|
||||||||||
Total alternatives
|
—
|
|
|
—
|
|
|
—
|
|
|
6,598
|
|
|
6,598
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,362
|
|
|
2,362
|
|
||||||||||
Cash, cash equivalents, and repurchase agreements (b)
|
1,380
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,380
|
|
|
388
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
388
|
|
||||||||||
Other (c)
|
(953
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(953
|
)
|
|
(715
|
)
|
|
—
|
|
|
5,633
|
|
|
—
|
|
|
4,918
|
|
||||||||||
Total assets at fair value
|
$
|
10,845
|
|
|
$
|
26,712
|
|
|
$
|
5
|
|
|
$
|
6,598
|
|
|
$
|
44,160
|
|
|
$
|
3,092
|
|
|
$
|
18,570
|
|
|
$
|
5,633
|
|
|
$
|
2,362
|
|
|
$
|
29,657
|
|
(a)
|
Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
|
(b)
|
Primarily short-term investment funds to provide liquidity to plan investment managers, cash held to pay benefits, and repurchase agreements valued at
$(360) million
in U.S. plans and
$(181) million
in non-U.S. plans.
|
(c)
|
For U.S. plans, amounts related to net pending security (purchases)/sales and net pending foreign currency purchases/(sales). For non-U.S plans, primarily Ford-Werke, plan assets (insurance contract valued at
$4.8 billion
at year-end
2017
) and amounts related to net pending security (purchases)/sales and net pending foreign currency purchases/(sales).
|
|
2018
|
||||||||||||||||||||||||||||||||||||||
|
U.S. Plans
|
|
Non-U.S.Plans
|
||||||||||||||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Assets measured at NAV (a)
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Assets measured at NAV (a)
|
|
Total
|
||||||||||||||||||||
Asset Category
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
U.S. companies
|
$
|
1,246
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,263
|
|
|
$
|
1,146
|
|
|
$
|
103
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,249
|
|
International companies
|
787
|
|
|
10
|
|
|
1
|
|
|
—
|
|
|
798
|
|
|
894
|
|
|
134
|
|
|
1
|
|
|
—
|
|
|
1,029
|
|
||||||||||
Total equity
|
2,033
|
|
|
27
|
|
|
1
|
|
|
—
|
|
|
2,061
|
|
|
2,040
|
|
|
237
|
|
|
1
|
|
|
—
|
|
|
2,278
|
|
||||||||||
Fixed Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government and agencies
|
7,915
|
|
|
2,317
|
|
|
—
|
|
|
—
|
|
|
10,232
|
|
|
415
|
|
|
148
|
|
|
—
|
|
|
—
|
|
|
563
|
|
||||||||||
Non-U.S. government
|
—
|
|
|
1,073
|
|
|
—
|
|
|
—
|
|
|
1,073
|
|
|
—
|
|
|
14,871
|
|
|
—
|
|
|
—
|
|
|
14,871
|
|
||||||||||
Corporate bonds
|
—
|
|
|
19,905
|
|
|
—
|
|
|
—
|
|
|
19,905
|
|
|
—
|
|
|
2,875
|
|
|
—
|
|
|
—
|
|
|
2,875
|
|
||||||||||
Mortgage/other asset-backed
|
—
|
|
|
474
|
|
|
—
|
|
|
—
|
|
|
474
|
|
|
—
|
|
|
286
|
|
|
—
|
|
|
—
|
|
|
286
|
|
||||||||||
Commingled funds
|
—
|
|
|
94
|
|
|
—
|
|
|
—
|
|
|
94
|
|
|
—
|
|
|
268
|
|
|
—
|
|
|
—
|
|
|
268
|
|
||||||||||
Derivative financial instruments, net
|
9
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|
13
|
|
|
(46
|
)
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
||||||||||
Total fixed income
|
7,924
|
|
|
23,906
|
|
|
—
|
|
|
—
|
|
|
31,830
|
|
|
428
|
|
|
18,402
|
|
|
—
|
|
|
—
|
|
|
18,830
|
|
||||||||||
Alternatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Hedge funds
|
—
|
|
|
—
|
|
|
—
|
|
|
3,217
|
|
|
3,217
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,143
|
|
|
1,143
|
|
||||||||||
Private equity
|
—
|
|
|
—
|
|
|
—
|
|
|
2,046
|
|
|
2,046
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
687
|
|
|
687
|
|
||||||||||
Real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
1,242
|
|
|
1,242
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
413
|
|
|
413
|
|
||||||||||
Total alternatives
|
—
|
|
|
—
|
|
|
—
|
|
|
6,505
|
|
|
6,505
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,243
|
|
|
2,243
|
|
||||||||||
Cash, cash equivalents, and repurchase agreements (b)
|
354
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
354
|
|
|
(641
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(641
|
)
|
||||||||||
Other (c)
|
(976
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(976
|
)
|
|
(685
|
)
|
|
—
|
|
|
5,248
|
|
|
—
|
|
|
4,563
|
|
||||||||||
Total assets at fair value
|
$
|
9,335
|
|
|
$
|
23,933
|
|
|
$
|
1
|
|
|
$
|
6,505
|
|
|
$
|
39,774
|
|
|
$
|
1,142
|
|
|
$
|
18,639
|
|
|
$
|
5,249
|
|
|
$
|
2,243
|
|
|
$
|
27,273
|
|
(a)
|
Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
|
(b)
|
Primarily short-term investment funds to provide liquidity to plan investment managers, cash held to pay benefits, and repurchase agreements valued at
$(1.7) billion
in U.S. plans and
$(1.4) billion
in non-U.S. plans.
|
(c)
|
For U.S. plans, amounts related to net pending security (purchases)/sales and net pending foreign currency purchases/(sales). For non-U.S plans, primarily Ford-Werke, plan assets (insurance contract valued at
$4.3 billion
at year-end
2018
) and amounts related to net pending security (purchases)/sales and net pending foreign currency purchases/(sales).
|
|
2017
|
||||||||||||||||||||||
|
|
Return on plan assets
|
|
|
|
|
|
|
|||||||||||||||
|
Fair
Value
at
January 1
|
|
Attributable
to Assets
Held
at
December 31
|
|
Attributable
to
Assets
Sold
|
|
Net Purchases/
(Settlements)
|
|
Transfers Into/ (Out of) Level 3
|
|
Fair
Value
at
December 31
|
||||||||||||
U.S. Plans
|
$
|
14
|
|
|
$
|
(2
|
)
|
|
$
|
2
|
|
|
$
|
(9
|
)
|
|
$
|
—
|
|
|
$
|
5
|
|
Non-U.S. Plans (a)
|
5,252
|
|
|
381
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,633
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
2018
|
||||||||||||||||||||||
|
|
Return on plan assets
|
|
|
|
|
|
|
|||||||||||||||
|
Fair
Value
at
January 1
|
|
Attributable
to Assets
Held
at
December 31
|
|
Attributable
to
Assets
Sold
|
|
Net Purchases/
(Settlements)
|
|
Transfers Into/ (Out of) Level 3
|
|
Fair
Value
at
December 31
|
||||||||||||
U.S. Plans
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
$
|
4
|
|
|
$
|
(3
|
)
|
|
$
|
1
|
|
Non-U.S. Plans (a)
|
5,633
|
|
|
(384
|
)
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
5,249
|
|
(a)
|
Primarily Ford-Werke plan assets (insurance contract valued at
$4.8 billion
and
$4.3 billion
at year-end
2017
and
2018
, respectively).
|
|
|
|
|
|
Interest Rates
|
|
||||||||||||||
|
|
|
|
|
Average Contractual
|
|
Average Effective (a)
|
|
||||||||||||
Automotive
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
||||||||
Debt payable within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Short-term
|
$
|
1,396
|
|
|
$
|
614
|
|
|
5.5
|
%
|
|
2.9
|
%
|
|
5.5
|
%
|
|
2.9
|
%
|
|
Long-term payable within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Public unsecured debt securities
|
361
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Department of Energy Advanced Technology Vehicles Manufacturing (“DOE ATVM”) Incentive Program
|
591
|
|
|
591
|
|
|
|
|
|
|
|
|
|
|
||||||
Other debt
|
1,031
|
|
|
1,125
|
|
|
|
|
|
|
|
|
|
|
||||||
Unamortized (discount)/premium
|
(23
|
)
|
|
(16
|
)
|
|
|
|
|
|
|
|
|
|
||||||
Total debt payable within one year
|
3,356
|
|
|
2,314
|
|
|
|
|
|
|
|
|
|
|
||||||
Long-term debt payable after one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Public unsecured debt securities
|
9,033
|
|
|
9,033
|
|
|
|
|
|
|
|
|
|
|
||||||
DOE ATVM Incentive Program
|
2,060
|
|
|
1,470
|
|
|
|
|
|
|
|
|
|
|
||||||
Other debt
|
1,848
|
|
|
1,026
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unamortized (discount)/premium
|
(290
|
)
|
|
(224
|
)
|
|
|
|
|
|
|
|
|
|
||||||
Unamortized issuance costs
|
(76
|
)
|
|
(72
|
)
|
|
|
|
|
|
|
|
|
|
||||||
Total long-term debt payable after one year
|
12,575
|
|
|
11,233
|
|
|
5.1
|
%
|
(b)
|
5.2
|
%
|
(b)
|
5.8
|
%
|
(b)
|
5.7
|
%
|
(b)
|
||
Total Automotive
|
$
|
15,931
|
|
|
$
|
13,547
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fair value of Automotive debt (c)
|
$
|
17,976
|
|
|
$
|
13,319
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ford Credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Debt payable within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Short-term
|
$
|
17,153
|
|
|
$
|
14,705
|
|
|
3.0
|
%
|
|
3.5
|
%
|
|
3.0
|
%
|
|
3.5
|
%
|
|
Long-term payable within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unsecured debt
|
13,298
|
|
|
14,373
|
|
|
|
|
|
|
|
|
|
|
||||||
Asset-backed debt
|
17,817
|
|
|
22,130
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unamortized (discount)/premium
|
1
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
||||||
Unamortized issuance costs
|
(16
|
)
|
|
(16
|
)
|
|
|
|
|
|
|
|
|
|
||||||
Fair value adjustments (d)
|
12
|
|
|
(15
|
)
|
|
|
|
|
|
|
|
|
|
||||||
Total debt payable within one year
|
48,265
|
|
|
51,179
|
|
|
|
|
|
|
|
|
|
|
||||||
Long-term debt payable after one year
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unsecured debt
|
55,687
|
|
|
52,409
|
|
|
|
|
|
|
|
|
|
|
||||||
Asset-backed debt
|
34,052
|
|
|
36,844
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unamortized (discount)/premium
|
(2
|
)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||
Unamortized issuance costs
|
(212
|
)
|
|
(195
|
)
|
|
|
|
|
|
|
|
|
|
||||||
Fair value adjustments (d)
|
(33
|
)
|
|
(171
|
)
|
|
|
|
|
|
|
|
|
|
||||||
Total long-term debt payable after one year
|
89,492
|
|
|
88,887
|
|
|
2.5
|
%
|
(b)
|
2.8
|
%
|
(b)
|
2.6
|
%
|
(b)
|
2.8
|
%
|
(b)
|
||
Total Ford Credit
|
$
|
137,757
|
|
|
$
|
140,066
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fair value of Ford Credit debt (c)
|
$
|
139,605
|
|
|
$
|
138,809
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Long-term debt payable after one year
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unsecured debt
|
$
|
604
|
|
|
$
|
604
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unamortized (discount)/premium
|
(3
|
)
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
||||||
Unamortized issuance costs
|
(2
|
)
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
||||||
Total Other
|
$
|
599
|
|
|
$
|
600
|
|
|
9.3
|
%
|
|
9.3
|
%
|
|
9.2
|
%
|
|
9.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fair value of Other debt
|
$
|
801
|
|
|
$
|
697
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Average effective rates reflect the average contractual interest rate plus amortization of discounts, premiums, and issuance costs.
|
(b)
|
Includes interest on long-term debt payable within one year and after one year.
|
(c)
|
At
December 31, 2017
and
2018
, the fair value of debt includes
$1.1 billion
and
$458 million
of Automotive short-term debt and
$16.4 billion
and
$13.8 billion
of Ford Credit short-term debt, respectively, carried at cost which approximates fair value. All debt is categorized within Level 2 of the fair value hierarchy.
|
(d)
|
These adjustments relate to designated fair value hedges. The carrying value of hedged debt was
$39 billion
and
$38 billion
at
December 31,
2017
and
2018
, respectively.
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
|
Adjustments
|
|
Total Debt Maturities
|
||||||||||||||||
Automotive
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Public unsecured debt securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
86
|
|
|
$
|
—
|
|
|
$
|
8,947
|
|
|
$
|
(195
|
)
|
|
$
|
8,838
|
|
DOE ATVM Incentive Program
|
591
|
|
|
591
|
|
|
591
|
|
|
288
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,061
|
|
||||||||
Short-term and other debt
|
1,739
|
|
|
261
|
|
|
218
|
|
|
181
|
|
|
205
|
|
|
161
|
|
|
(117
|
)
|
|
2,648
|
|
||||||||
Total
|
$
|
2,330
|
|
|
$
|
852
|
|
|
$
|
809
|
|
|
$
|
555
|
|
|
$
|
205
|
|
|
$
|
9,108
|
|
|
$
|
(312
|
)
|
|
$
|
13,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Ford Credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Unsecured debt
|
$
|
28,135
|
|
|
$
|
15,073
|
|
|
$
|
15,288
|
|
|
$
|
8,343
|
|
|
$
|
5,895
|
|
|
$
|
7,810
|
|
|
$
|
(322
|
)
|
|
$
|
80,222
|
|
Asset-backed debt
|
23,073
|
|
|
19,004
|
|
|
7,865
|
|
|
4,487
|
|
|
2,595
|
|
|
2,893
|
|
|
(73
|
)
|
|
59,844
|
|
||||||||
Total
|
$
|
51,208
|
|
|
$
|
34,077
|
|
|
$
|
23,153
|
|
|
$
|
12,830
|
|
|
$
|
8,490
|
|
|
$
|
10,703
|
|
|
$
|
(395
|
)
|
|
$
|
140,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Unsecured debt
|
$
|
—
|
|
|
$
|
130
|
|
|
$
|
180
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
294
|
|
|
$
|
(4
|
)
|
|
$
|
600
|
|
|
Aggregate Principal Amount Outstanding
|
||||||
Title of Security
|
2017
|
|
2018
|
||||
6 1/2% Debentures due August 1, 2018
|
$
|
361
|
|
|
$
|
—
|
|
8 7/8% Debentures due January 15, 2022
|
86
|
|
|
86
|
|
||
7 1/8% Debentures due November 15, 2025
|
209
|
|
|
209
|
|
||
7 1/2% Debentures due August 1, 2026
|
193
|
|
|
193
|
|
||
6 5/8% Debentures due February 15, 2028
|
104
|
|
|
104
|
|
||
6 5/8% Debentures due October 1, 2028
(a)
|
638
|
|
|
638
|
|
||
6 3/8% Debentures due February 1, 2029
(a)
|
260
|
|
|
260
|
|
||
7.45% GLOBLS due July 16, 2031
(a)
|
1,794
|
|
|
1,794
|
|
||
8.900% Debentures due January 15, 2032
|
151
|
|
|
151
|
|
||
9.95% Debentures due February 15, 2032
|
4
|
|
|
4
|
|
||
7.75% Debentures due June 15, 2043
|
73
|
|
|
73
|
|
||
7.40% Debentures due November 1, 2046
|
398
|
|
|
398
|
|
||
9.980% Debentures due February 15, 2047
|
181
|
|
|
181
|
|
||
7.70% Debentures due May 15, 2097
|
142
|
|
|
142
|
|
||
4.346% Notes due December 8, 2026
|
1,500
|
|
|
1,500
|
|
||
5.291% Notes due December 8, 2046
|
1,300
|
|
|
1,300
|
|
||
4.75% Notes due January 15, 2043
|
2,000
|
|
|
2,000
|
|
||
Total public unsecured debt securities (b)
|
$
|
9,394
|
|
|
$
|
9,033
|
|
(a)
|
Listed on the Luxembourg Exchange and on the Singapore Exchange.
|
(b)
|
Excludes
9.215%
Debentures due September 15, 2021
with an outstanding balance at
December 31, 2018
of
$180 million
. The proceeds from these securities were on-lent by Ford to Ford Holdings and are reported as
Other long-term debt
.
|
|
2017
|
|
2018
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
3.8
|
|
|
$
|
3.0
|
|
Finance receivables, net
|
63.2
|
|
|
66.2
|
|
||
Net investment in operating leases
|
11.5
|
|
|
16.3
|
|
||
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Debt (a)
|
$
|
52.6
|
|
|
$
|
59.8
|
|
(a)
|
Debt is net of unamortized discount and issuance costs.
|
•
|
Foreign currency exchange contracts, including forwards, that are used to manage foreign exchange exposure;
|
•
|
Commodity contracts, including forwards, that are used to manage commodity price risk;
|
•
|
Interest rate contracts, including swaps, that are used to manage the effects of interest rate fluctuations; and
|
•
|
Cross-currency interest rate swap contracts that are used to manage foreign currency and interest rate exposures on foreign-denominated debt.
|
|
2016
|
|
2017
|
|
2018
|
||||||
Cash flow hedges (a)
|
|
|
|
|
|
||||||
Reclassified from AOCI to Cost of sales
|
$
|
537
|
|
|
$
|
456
|
|
|
$
|
50
|
|
Fair value hedges
|
|
|
|
|
|
||||||
Interest rate contracts
|
|
|
|
|
|
||||||
Net interest settlements and accruals on hedging instruments
|
367
|
|
|
217
|
|
|
10
|
|
|||
Fair value changes on hedging instruments (b)
|
(120
|
)
|
|
(268
|
)
|
|
(155
|
)
|
|||
Fair value changes on hedged debt (b)
|
124
|
|
|
267
|
|
|
153
|
|
|||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
||||||
Foreign currency exchange contracts (c)
|
257
|
|
|
(662
|
)
|
|
398
|
|
|||
Cross-currency interest rate swap contracts
|
398
|
|
|
103
|
|
|
(244
|
)
|
|||
Interest rate contracts
|
(9
|
)
|
|
58
|
|
|
(84
|
)
|
|||
Commodity contracts
|
7
|
|
|
74
|
|
|
(96
|
)
|
|||
Total
|
$
|
1,561
|
|
|
$
|
245
|
|
|
$
|
32
|
|
(a)
|
For
2016
,
2017
, and
2018
, a
$770 million
gain
, a
$134 million
gain
, and a
$288 million
gain
, respectively, were reported in
Other comprehensive income/(loss), net of tax
.
|
(b)
|
For
2016
and
2017
, the fair value changes on hedging instruments and on hedged debt were reported in
Other income/(loss), net;
effective 2018, these amounts were reported in
Ford Credit interest, operating, and other expenses.
|
(c)
|
For
2016
,
2017
, and
2018
, a
$78 million
gain
, a
$512 million
loss
, and a
$235 million
gain
were reported in
Cost of sales
and a
$179 million
gain
, a
$150 million
loss
, and a
$163 million
gain
were reported in
Other income/(loss), net,
respectively.
|
|
2017
|
|
2018
|
||||||||||||||||||||
|
Notional
|
|
Fair Value of
Assets
|
|
Fair Value of
Liabilities
|
|
Notional
|
|
Fair Value of
Assets
|
|
Fair Value of
Liabilities
|
||||||||||||
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency exchange contracts
|
$
|
19,595
|
|
|
$
|
407
|
|
|
$
|
306
|
|
|
$
|
15,972
|
|
|
$
|
391
|
|
|
$
|
110
|
|
Commodity contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
327
|
|
|
—
|
|
|
20
|
|
||||||
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate contracts
|
28,008
|
|
|
248
|
|
|
135
|
|
|
22,989
|
|
|
158
|
|
|
208
|
|
||||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Foreign currency exchange contracts
|
20,679
|
|
|
172
|
|
|
302
|
|
|
20,695
|
|
|
202
|
|
|
99
|
|
||||||
Cross-currency interest rate swap contracts
|
4,006
|
|
|
408
|
|
|
28
|
|
|
5,235
|
|
|
232
|
|
|
157
|
|
||||||
Interest rate contracts
|
60,504
|
|
|
276
|
|
|
137
|
|
|
76,904
|
|
|
235
|
|
|
274
|
|
||||||
Commodity contracts
|
660
|
|
|
37
|
|
|
4
|
|
|
638
|
|
|
3
|
|
|
45
|
|
||||||
Total derivative financial instruments, gross (a) (b)
|
$
|
133,452
|
|
|
$
|
1,548
|
|
|
$
|
912
|
|
|
$
|
142,760
|
|
|
$
|
1,221
|
|
|
$
|
913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current portion
|
|
|
$
|
802
|
|
|
$
|
568
|
|
|
|
|
$
|
681
|
|
|
$
|
601
|
|
||||
Non-current portion
|
|
|
746
|
|
|
344
|
|
|
|
|
540
|
|
|
312
|
|
||||||||
Total derivative financial instruments, gross
|
|
|
$
|
1,548
|
|
|
$
|
912
|
|
|
|
|
$
|
1,221
|
|
|
$
|
913
|
|
(a)
|
At December 31,
2017
and
2018
, we held collateral of
$15 million
and
$19 million
, and we posted collateral of
$38 million
and
$59 million
, respectively.
|
(b)
|
At December 31,
2017
and
2018
, the fair value of assets and liabilities available for counterparty netting was
$618 million
and
$434 million
, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.
|
|
2016
|
|
2017
|
|
2018
|
||||||
Foreign currency translation
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
(3,570
|
)
|
|
$
|
(4,593
|
)
|
|
$
|
(4,277
|
)
|
Gains/(Losses) on foreign currency translation
|
(494
|
)
|
|
38
|
|
|
(435
|
)
|
|||
Less: Tax/(Tax benefit) (a)
|
537
|
|
|
(294
|
)
|
|
91
|
|
|||
Net gains/(losses) on foreign currency translation
|
(1,031
|
)
|
|
332
|
|
|
(526
|
)
|
|||
(Gains)/Losses reclassified from AOCI to net income (b)
|
8
|
|
|
(16
|
)
|
|
3
|
|
|||
Other comprehensive income/(loss), net of tax
|
(1,023
|
)
|
|
316
|
|
|
(523
|
)
|
|||
Ending balance
|
$
|
(4,593
|
)
|
|
$
|
(4,277
|
)
|
|
$
|
(4,800
|
)
|
|
|
|
|
|
|
||||||
Marketable securities
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
(6
|
)
|
|
$
|
(14
|
)
|
|
$
|
(48
|
)
|
Gains/(Losses) on available for sale securities
|
(13
|
)
|
|
(53
|
)
|
|
(37
|
)
|
|||
Less: Tax/(Tax benefit)
|
(10
|
)
|
|
(15
|
)
|
|
(8
|
)
|
|||
Net gains/(losses) on available for sale securities
|
(3
|
)
|
|
(38
|
)
|
|
(29
|
)
|
|||
(Gains)/Losses reclassified from AOCI to net income
|
(1
|
)
|
|
5
|
|
|
20
|
|
|||
Less: Tax/(Tax benefit)
|
4
|
|
|
1
|
|
|
2
|
|
|||
Net (gains)/losses reclassified from AOCI to net income
|
(5
|
)
|
|
4
|
|
|
18
|
|
|||
Other comprehensive income/(loss), net of tax
|
(8
|
)
|
|
(34
|
)
|
|
(11
|
)
|
|||
Ending balance
|
$
|
(14
|
)
|
|
$
|
(48
|
)
|
|
$
|
(59
|
)
|
|
|
|
|
|
|
||||||
Derivative instruments
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
64
|
|
|
$
|
283
|
|
|
$
|
18
|
|
Gains/(Losses) on derivative instruments
|
770
|
|
|
134
|
|
|
288
|
|
|||
Less: Tax/(Tax benefit)
|
144
|
|
|
80
|
|
|
65
|
|
|||
Net gains/(losses) on derivative instruments
|
626
|
|
|
54
|
|
|
223
|
|
|||
(Gains)/Losses reclassified from AOCI to net income
|
(537
|
)
|
|
(456
|
)
|
|
(50
|
)
|
|||
Less: Tax/(Tax benefit)
|
(130
|
)
|
|
(137
|
)
|
|
(10
|
)
|
|||
Net (gains)/losses reclassified from AOCI to net income (c)
|
(407
|
)
|
|
(319
|
)
|
|
(40
|
)
|
|||
Other comprehensive income/(loss), net of tax
|
219
|
|
|
(265
|
)
|
|
183
|
|
|||
Ending balance
|
$
|
283
|
|
|
$
|
18
|
|
|
$
|
201
|
|
|
|
|
|
|
|
||||||
Pension and other postretirement benefits
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
(2,745
|
)
|
|
$
|
(2,689
|
)
|
|
$
|
(2,652
|
)
|
Prior service (costs)/credits arising during the period
|
(16
|
)
|
|
5
|
|
|
(135
|
)
|
|||
Less: Tax/(Tax benefit)
|
(4
|
)
|
|
—
|
|
|
(23
|
)
|
|||
Net prior service (costs)/credits arising during the period
|
(12
|
)
|
|
5
|
|
|
(112
|
)
|
|||
Amortization and recognition of prior service costs/(credits) (d)
|
66
|
|
|
60
|
|
|
59
|
|
|||
Less: Tax/(Tax benefit)
|
22
|
|
|
20
|
|
|
13
|
|
|||
Net prior service costs/(credits) reclassified from AOCI to net income
|
44
|
|
|
40
|
|
|
46
|
|
|||
Translation impact on non-U.S. plans
|
24
|
|
|
(8
|
)
|
|
10
|
|
|||
Other comprehensive income/(loss), net of tax
|
56
|
|
|
37
|
|
|
(56
|
)
|
|||
Ending balance
|
$
|
(2,689
|
)
|
|
$
|
(2,652
|
)
|
|
$
|
(2,708
|
)
|
|
|
|
|
|
|
||||||
Total AOCI ending balance at December 31
|
$
|
(7,013
|
)
|
|
$
|
(6,959
|
)
|
|
$
|
(7,366
|
)
|
(a)
|
We do not recognize deferred taxes for a majority of the foreign currency translation gains and losses because we do not anticipate reversal in the foreseeable future. However, we have made elections to tax certain non-U.S. operations simultaneously in U.S. tax returns, and have recorded deferred taxes for temporary differences that will reverse, independent of repatriation plans, on U.S. tax returns. Taxes or tax benefits resulting from foreign currency translation of the temporary differences are recorded in
Other comprehensive income/(loss), net of tax
.
|
(b)
|
Reclassified to
Other income/(loss), net.
|
(c)
|
Reclassified to
Cost of sales
. During the next twelve months we expect to reclassify existing net gains on cash flow hedges of
$213 million
. See
Note 19
for additional information.
|
(d)
|
Amortization and recognition of prior service costs/(credits)
is included in the computation of net periodic pension cost/(income). See Note
17
for additional information.
|
|
2017
|
|
2018
|
||||
Maximum potential payments
|
$
|
1,397
|
|
|
$
|
1,163
|
|
Carrying value of recorded liabilities related to guarantees and limited indemnities
|
408
|
|
|
351
|
|
|
2017
|
|
2018
|
||||
Beginning balance
|
$
|
4,960
|
|
|
$
|
5,296
|
|
Payments made during the period
|
(3,457
|
)
|
|
(4,360
|
)
|
||
Changes in accrual related to warranties issued during the period
|
2,260
|
|
|
2,584
|
|
||
Changes in accrual related to pre-existing warranties
|
1,415
|
|
|
1,758
|
|
||
Foreign currency translation and other
|
118
|
|
|
(141
|
)
|
||
Ending balance
|
$
|
5,296
|
|
|
$
|
5,137
|
|
•
|
Corporate governance expenses, which were previously reported as part of our Automotive segment, are reported as part of Corporate Other
|
•
|
Autonomous vehicle development costs, which were previously reported as part of our Automotive segment, are reported in Mobility
|
•
|
Interest income and portfolio gains and losses, which were previously reported in our segment results, are reported in Corporate Other. Interest expense (other than interest expense incurred by Ford Credit) is reported as a separate reconciling item
|
|
Automotive
|
|
Mobility
|
|
Ford Credit
|
|
Corporate Other
|
|
Interest on Debt
|
|
Special
Items
|
|
Adjustments
|
|
Total
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues
|
$
|
141,546
|
|
|
$
|
1
|
|
|
$
|
10,253
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
151,800
|
|
Income/(loss) before income taxes
|
10,050
|
|
|
(117
|
)
|
|
1,879
|
|
|
(498
|
)
|
|
(951
|
)
|
|
(3,579
|
)
|
|
—
|
|
|
6,784
|
|
||||||||
Depreciation and tooling amortization
|
4,667
|
|
|
—
|
|
|
4,356
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,023
|
|
||||||||
Interest expense
|
—
|
|
|
—
|
|
|
2,751
|
|
|
—
|
|
|
951
|
|
|
—
|
|
|
—
|
|
|
3,702
|
|
||||||||
Investment-related interest income
|
75
|
|
|
—
|
|
|
76
|
|
|
140
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
291
|
|
||||||||
Equity in net income/(loss) of affiliated companies
|
1,747
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,780
|
|
||||||||
Cash outflow for capital spending
|
6,947
|
|
|
—
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,992
|
|
||||||||
Cash, cash equivalents, marketable securities, and restricted cash
|
27,467
|
|
|
8
|
|
|
11,466
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,941
|
|
||||||||
Total assets
|
97,488
|
|
|
69
|
|
|
146,503
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,550
|
)
|
(a)
|
238,510
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
145,653
|
|
|
$
|
10
|
|
|
$
|
11,113
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
156,776
|
|
Income/(loss) before income taxes
|
8,084
|
|
|
(299
|
)
|
|
2,310
|
|
|
(457
|
)
|
|
(1,190
|
)
|
|
(289
|
)
|
|
—
|
|
|
8,159
|
|
||||||||
Depreciation and tooling amortization
|
4,963
|
|
|
—
|
|
|
4,159
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,122
|
|
||||||||
Interest expense
|
—
|
|
|
—
|
|
|
3,174
|
|
|
—
|
|
|
1,190
|
|
|
—
|
|
|
—
|
|
|
4,364
|
|
||||||||
Investment-related interest income
|
93
|
|
|
—
|
|
|
118
|
|
|
248
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
459
|
|
||||||||
Equity in net income/(loss) of affiliated companies
|
1,169
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,201
|
|
||||||||
Cash outflow for capital spending
|
7,001
|
|
|
3
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,049
|
|
||||||||
Cash, cash equivalents, marketable securities, and restricted cash
|
26,499
|
|
|
11
|
|
|
12,563
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39,073
|
|
||||||||
Total assets
|
103,573
|
|
|
96
|
|
|
160,594
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,767
|
)
|
(a)
|
258,496
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
148,294
|
|
|
$
|
26
|
|
|
$
|
12,018
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
160,338
|
|
Income/(loss) before income taxes
|
5,422
|
|
|
(674
|
)
|
|
2,627
|
|
|
(373
|
)
|
|
(1,228
|
)
|
|
(1,429
|
)
|
|
—
|
|
|
4,345
|
|
||||||||
Depreciation and tooling amortization
|
5,368
|
|
|
16
|
|
|
3,896
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,280
|
|
||||||||
Interest expense
|
—
|
|
|
—
|
|
|
3,929
|
|
|
—
|
|
|
1,228
|
|
|
—
|
|
|
—
|
|
|
5,157
|
|
||||||||
Investment-related interest income
|
109
|
|
|
—
|
|
|
201
|
|
|
357
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
667
|
|
||||||||
Equity in net income/(loss) of affiliated companies
|
95
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
123
|
|
||||||||
Cash outflow for capital spending
|
7,677
|
|
|
60
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,785
|
|
||||||||
Cash, cash equivalents, marketable securities, and restricted cash
|
22,999
|
|
|
86
|
|
|
11,055
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,140
|
|
||||||||
Total assets
|
100,105
|
|
|
558
|
|
|
161,678
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,801
|
)
|
(a)
|
256,540
|
|
(a)
|
Includes deferred tax netting and eliminations of intersegment transactions occurring in the ordinary course of business.
|
|
2016
|
|
2017
|
|
2018
|
||||||||||||||||||
|
Revenues
|
|
Long-Lived
Assets (a)
|
|
Revenues
|
|
Long-Lived
Assets (a)
|
|
Revenues
|
|
Long-Lived
Assets (a)
|
||||||||||||
United States
|
$
|
93,433
|
|
|
$
|
42,946
|
|
|
$
|
93,844
|
|
|
$
|
42,504
|
|
|
$
|
97,546
|
|
|
$
|
44,940
|
|
United Kingdom
|
10,041
|
|
|
1,302
|
|
|
9,619
|
|
|
1,691
|
|
|
9,703
|
|
|
1,650
|
|
||||||
Canada
|
10,028
|
|
|
4,264
|
|
|
10,580
|
|
|
4,771
|
|
|
10,541
|
|
|
4,604
|
|
||||||
Germany
|
7,322
|
|
|
2,254
|
|
|
7,265
|
|
|
3,182
|
|
|
7,894
|
|
|
3,593
|
|
||||||
All Other
|
30,976
|
|
|
10,135
|
|
|
35,468
|
|
|
11,414
|
|
|
34,654
|
|
|
10,510
|
|
||||||
Total Company
|
$
|
151,800
|
|
|
$
|
60,901
|
|
|
$
|
156,776
|
|
|
$
|
63,562
|
|
|
$
|
160,338
|
|
|
$
|
65,297
|
|
(a)
|
Includes
Net property
and
Net investment in operating leases
from our consolidated balance sheet.
|
|
2017
|
|
2018
|
||||||||||||||||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
||||||||||||||||
Total revenues
|
$
|
39,146
|
|
|
$
|
39,853
|
|
|
$
|
36,451
|
|
|
$
|
41,326
|
|
|
$
|
41,959
|
|
|
$
|
38,920
|
|
|
$
|
37,666
|
|
|
$
|
41,793
|
|
Income/(Loss) before income taxes
|
2,251
|
|
|
2,266
|
|
|
1,770
|
|
|
1,872
|
|
|
1,919
|
|
|
1,349
|
|
|
1,094
|
|
|
(17
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Amounts Attributable to Ford Motor Company Common and Class B Shareholders
|
|||||||||||||||||||||||||||||||
Net income/(loss)
|
$
|
1,592
|
|
|
$
|
2,047
|
|
|
$
|
1,572
|
|
|
$
|
2,520
|
|
|
$
|
1,736
|
|
|
$
|
1,066
|
|
|
$
|
991
|
|
|
$
|
(116
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common and Class B per share from income from continuing operations
|
|||||||||||||||||||||||||||||||
Basic
|
$
|
0.40
|
|
|
$
|
0.51
|
|
|
$
|
0.40
|
|
|
$
|
0.63
|
|
|
$
|
0.44
|
|
|
$
|
0.27
|
|
|
$
|
0.25
|
|
|
$
|
(0.03
|
)
|
Diluted
|
0.40
|
|
|
0.51
|
|
|
0.39
|
|
|
0.63
|
|
|
0.43
|
|
|
0.27
|
|
|
0.25
|
|
|
(0.03
|
)
|
Description
|
|
Balance at
Beginning of
Period
|
|
Charged to
Costs and
Expenses
|
|
Deductions
|
|
Balance at End
of Period
|
||||||||||
For the Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||
Allowances deducted from assets
|
|
|
|
|
|
|
|
|
|
|
||||||||
Credit losses
|
|
$
|
437
|
|
|
$
|
551
|
|
|
|
$
|
421
|
|
(a)
|
|
$
|
567
|
|
Doubtful receivables
|
|
372
|
|
|
24
|
|
|
|
19
|
|
(b)
|
|
377
|
|
||||
Inventories (primarily service part obsolescence)
|
|
227
|
|
|
(26
|
)
|
(c)
|
|
—
|
|
|
|
201
|
|
||||
Deferred tax assets
|
|
1,831
|
|
|
209
|
|
(d)
|
|
1,131
|
|
(e)
|
|
909
|
|
||||
Total allowances deducted from assets
|
|
$
|
2,867
|
|
|
$
|
758
|
|
|
|
$
|
1,571
|
|
|
|
$
|
2,054
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
For the Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Allowances deducted from assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Credit losses
|
|
$
|
567
|
|
|
$
|
595
|
|
|
|
$
|
483
|
|
(a)
|
|
$
|
679
|
|
Doubtful receivables
|
|
377
|
|
|
24
|
|
|
|
(3
|
)
|
(b)
|
|
404
|
|
||||
Inventories (primarily service part obsolescence)
|
|
201
|
|
|
42
|
|
(c)
|
|
—
|
|
|
|
243
|
|
||||
Deferred tax assets
|
|
909
|
|
|
583
|
|
(d)
|
|
—
|
|
|
|
1,492
|
|
||||
Total allowances deducted from assets
|
|
$
|
2,054
|
|
|
$
|
1,244
|
|
|
|
$
|
480
|
|
|
|
$
|
2,818
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
For the Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Allowances deducted from assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Credit losses
|
|
$
|
679
|
|
|
$
|
524
|
|
|
|
$
|
533
|
|
(a)
|
|
$
|
670
|
|
Doubtful receivables
|
|
404
|
|
|
5
|
|
|
|
315
|
|
(b)
|
|
94
|
|
||||
Inventories (primarily service part obsolescence)
|
|
243
|
|
|
130
|
|
(c)
|
|
—
|
|
|
|
373
|
|
||||
Deferred tax assets
|
|
1,492
|
|
|
(519
|
)
|
(d)
|
|
—
|
|
|
|
973
|
|
||||
Total allowances deducted from assets
|
|
$
|
2,818
|
|
|
$
|
140
|
|
|
|
$
|
848
|
|
|
|
$
|
2,110
|
|
(a)
|
Finance receivables and lease investments deemed to be uncollectible and other changes, principally amounts related to finance receivables sold and translation adjustments.
|
(b)
|
Accounts and notes receivable deemed to be uncollectible as well as translation adjustments.
|
(c)
|
Net change in inventory allowances, including translation adjustments.
|
(d)
|
Includes
$26 million
,
$127 million
, and
$(101) million
in
2016
,
2017
, and
2018
, respectively, of valuation allowance for deferred tax assets through
Accumulated other comprehensive income/(loss),
including translation adjustments and
$183 million
,
$456 million
, and
$(418) million
in
2016
,
2017
, and
2018
, respectively, of valuation allowance for deferred tax assets through the income statement.
|
(e)
|
During 2016 we elected to tax a significant portion of our South American operations simultaneously in U.S. tax returns resulting in a
$1.1 billion
reduction in deferred tax assets and related valuation allowance.
|
Organization
|
Jurisdiction
|
|
CAB East LLC
|
Delaware, U.S.A.
|
|
CAB West LLC
|
Delaware, U.S.A.
|
|
CanRoad LeaseCo
|
Canada
|
|
FCE Bank plc
|
|
England
|
FCIF Holdings LP
|
|
Canada
|
FCSH GmbH
|
|
Switzerland
|
FMC Automobiles SAS
|
|
France
|
Ford Argentina S.C.A.
|
|
Argentina
|
Ford Aquitaine Industries SAS
|
|
France
|
Ford Autonomous Vehicles LLC
|
|
Delaware, U.S.A.
|
Ford Auto Securitization Trust
|
Canada
|
|
Ford Automotive Finance (China) Limited
|
|
China
|
Ford Bank GmbH
|
|
Germany
|
Ford Credit Auto Owner Trust 2014-REV1
|
|
Delaware, U.S.A.
|
Ford Credit Auto Owner Trust 2014-REV2
|
|
Delaware, U.S.A.
|
Ford Credit Auto Owner Trust 2015-REV1
|
|
Delaware, U.S.A.
|
Ford Credit Auto Owner Trust 2016-REV2
|
|
Delaware, U.S.A.
|
Ford Credit Auto Owner Trust 2017-REV1
|
Delaware, U.S.A.
|
|
Ford Credit Auto Owner Trust 2017-REV2
|
Delaware, U.S.A.
|
|
Ford Credit Auto Owner Trust 2018-REV1
|
|
Delaware, U.S.A.
|
Ford Credit Auto Owner Trust 2018-REV2
|
|
Delaware, U.S.A.
|
Ford Credit Canada Company
|
|
Canada
|
Ford Credit CP Auto Receivables LLC
|
|
Delaware, U.S.A.
|
Ford Credit Floorplan Master Owner Trust A
|
|
Delaware, U.S.A.
|
Ford Credit International LLC
|
|
Delaware, U.S.A.
|
Ford Deutschland Holding GmbH
|
|
Germany
|
Ford Espana S.L.
|
Spain
|
|
Ford European Holdings LLC
|
Delaware, U.S.A.
|
|
Ford Floorplan Auto Securitization Trust
|
Canada
|
|
Ford Global Engineering, Inc.
|
Delaware, U.S.A.
|
|
Ford Global Technologies, LLC
|
Delaware, U.S.A.
|
|
Ford Holdings LLC
|
Delaware, U.S.A.
|
|
Ford India Private Limited
|
|
India
|
Ford International Capital LLC
|
|
Delaware, U.S.A.
|
Ford International Liquidity Management Limited
|
|
England
|
Ford Italia S.p.A.
|
|
Italy
|
Ford Lease Trust
|
|
Canada
|
Ford Mexico Holdings LLC
|
|
Delaware, U.S.A.
|
Ford Motor (China) Ltd.
|
China
|
|
Ford Motor Company Brasil Ltda.
|
|
Brazil
|
Ford Motor Company Limited
|
|
England
|
Ford Motor Company of Australia Limited
|
|
Australia
|
Ford Motor Company of Canada, Limited
|
|
Canada
|
Ford Motor Company of Southern Africa (Pty) Limited
|
|
South Africa
|
Ford Motor Company, S.A. de C.V.
|
|
Mexico
|
Ford Motor Credit Company LLC
|
|
Delaware, U.S.A.
|
Ford Motor Service Company
|
|
Michigan, U.S.A.
|
Organization
|
|
Jurisdiction
|
Ford Retail Group Limited
|
|
England
|
Ford Sales and Service (Thailand) Co., Ltd.
|
|
Thailand
|
Ford Smart Mobility LLC
|
|
Delaware, U.S.A.
|
Ford Sollers Holding LLC
|
|
Russia
|
Ford Trading Company, LLC
|
|
Delaware, U.S.A.
|
Ford VH Limited
|
|
England
|
Ford VHC AB
|
|
Sweden
|
Ford-Werke GmbH
|
|
Germany
|
Global Investments 1 Inc.
|
|
Delaware, U.S.A.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101 Other U.S. Subsidiaries
|
|
|
152 Other Non-U.S. Subsidiaries
|
|
/s/ Jonathan E. Osgood
|
Jonathan E. Osgood
|
Secretary
|
/s/ William Clay Ford, Jr.
|
|
/s/ John C. Lechleiter
|
(William Clay Ford, Jr.)
|
|
(John C. Lechleiter)
|
|
|
|
/s/ Stephen G. Butler
|
|
/s/ Ellen R. Marram
|
(Stephen G. Butler)
|
|
(Ellen R. Marram)
|
|
|
|
/s/ Kimberly A. Casiano
|
|
/s/ John L. Thornton
|
(Kimberly A. Casiano)
|
|
(John L. Thornton)
|
|
|
|
/s/ Anthony F. Earley, Jr.
|
|
/s/ John B. Veihmeyer
|
(Anthony F. Earley, Jr.)
|
|
(John B. Veihmeyer)
|
|
|
|
/s/ Edsel B. Ford II
|
|
/s/ Lynn M. Vojvodich
|
(Edsel B. Ford II)
|
|
(Lynn M. Vojvodich)
|
|
|
|
/s/ James P. Hackett
|
|
/s/ John S. Weinberg
|
(James P. Hackett)
|
|
(John S. Weinberg)
|
|
|
|
/s/ William W. Helman IV
|
|
/s/ Bob Shanks
|
(William W. Helman IV)
|
|
(Bob Shanks)
|
|
|
|
/s/ William E. Kennard
|
|
/s/ Cathy O’Callaghan
|
(William E. Kennard)
|
|
(Cathy O’Callaghan)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
|
I have reviewed this Annual Report on Form 10-K for the period ended
December 31, 2018
of Ford Motor Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
Dated:
|
February 21, 2019
|
/s/ James P. Hackett
|
|
|
James P. Hackett
|
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K for the period ended
December 31, 2018
of Ford Motor Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
Dated:
|
February 21, 2019
|
/s/ Bob Shanks
|
|
|
Bob Shanks
|
|
|
Chief Financial Officer
|
|
|
|
1.
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The Company’s Annual Report on Form 10-K for the period ended
December 31, 2018
, to which this statement is furnished as an exhibit (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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2.
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The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Dated:
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February 21, 2019
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/s/ James P. Hackett
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James P. Hackett
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President and Chief Executive Officer
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1.
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The Company’s Annual Report on Form 10-K for the period ended
December 31, 2018
, to which this statement is furnished as an exhibit (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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2.
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The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Dated:
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February 21, 2019
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/s/ Bob Shanks
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Bob Shanks
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Chief Financial Officer
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