|
Delaware
|
|
38-0549190
|
|
(State of incorporation)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
|
|
One American Road
|
|
|
|
Dearborn,
|
Michigan
|
|
48126
|
(Address of principal executive offices)
|
|
(Zip code)
|
Title of each class
|
|
Trading symbol(s)
|
|
Name of each exchange on which registered
|
Common Stock, par value $.01 per share
|
|
F
|
|
New York Stock Exchange
|
6.200% Notes due June 1, 2059
|
|
FPRB
|
|
New York Stock Exchange
|
6.000% Notes due December 1, 2059
|
|
FPRC
|
|
New York Stock Exchange
|
|
|
Table of Contents
|
|
Page
|
|
Part I - Financial Information
|
|
|
Item 1
|
Financial Statements
|
|
|
|
Consolidated Statements of Cash Flows
|
|
|
|
Consolidated Income Statements
|
|
|
|
Consolidated Statements of Comprehensive Income
|
|
|
|
Consolidated Balance Sheets
|
|
|
|
Consolidated Statements of Equity
|
|
|
|
Notes to the Financial Statements
|
|
|
Item 2
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
|
|
Recent Developments
|
|
|
|
Results of Operations
|
|
|
|
Automotive Segment
|
|
|
|
Mobility Segment
|
|
|
|
Ford Credit Segment
|
|
|
|
Corporate Other
|
|
|
|
Interest on Debt
|
|
|
|
Taxes
|
|
|
|
Liquidity and Capital Resources
|
|
|
|
Credit Ratings
|
|
|
|
Outlook
|
|
|
|
Cautionary Note on Forward-Looking Statements
|
|
|
|
Non-GAAP Financial Measures That Supplement GAAP Measures
|
|
|
|
Non-GAAP Financial Measure Reconciliations
|
|
|
|
Supplemental Information
|
|
|
|
Critical Accounting Estimates
|
|
|
|
Accounting Standards Issued But Not Yet Adopted
|
|
|
Item 3
|
Quantitative and Qualitative Disclosures About Market Risk
|
|
|
Item 4
|
Controls and Procedures
|
|
|
|
|
|
|
|
Part II - Other Information
|
|
|
Item 1
|
Legal Proceedings
|
|
|
Item 1A
|
Risk Factors
|
|
|
Item 6
|
Exhibits
|
|
|
|
Signature
|
|
|
For the periods ended June 30,
|
||||||
|
2019
|
|
2020
|
||||
|
First Half
|
||||||
|
(unaudited)
|
||||||
Cash flows from operating activities
|
|
|
|
||||
Net income/(loss)
|
$
|
1,333
|
|
|
$
|
(875
|
)
|
Depreciation and tooling amortization
|
4,988
|
|
|
4,802
|
|
||
Other amortization
|
(587
|
)
|
|
(590
|
)
|
||
Held-for-sale impairment charges
|
—
|
|
|
18
|
|
||
Provision for credit and insurance losses
|
166
|
|
|
779
|
|
||
Pension and other post-retirement employee benefits (“OPEB”) expense/(income)
|
123
|
|
|
(454
|
)
|
||
Equity investment dividends received in excess of (earnings)/losses
|
21
|
|
|
169
|
|
||
Foreign currency adjustments
|
(92
|
)
|
|
113
|
|
||
Net (gain)/loss on changes in investments in affiliates
|
(2
|
)
|
|
(3,480
|
)
|
||
Stock compensation
|
169
|
|
|
107
|
|
||
Provision for deferred income taxes
|
200
|
|
|
655
|
|
||
Decrease/(Increase) in finance receivables (wholesale and other)
|
715
|
|
|
9,772
|
|
||
Decrease/(Increase) in accounts receivable and other assets
|
(962
|
)
|
|
220
|
|
||
Decrease/(Increase) in inventory
|
(1,180
|
)
|
|
66
|
|
||
Increase/(Decrease) in accounts payable and accrued and other liabilities
|
4,929
|
|
|
(2,485
|
)
|
||
Other
|
186
|
|
|
(175
|
)
|
||
Net cash provided by/(used in) operating activities
|
10,007
|
|
|
8,642
|
|
||
|
|
|
|
||||
Cash flows from investing activities
|
|
|
|
||||
Capital spending
|
(3,553
|
)
|
|
(2,955
|
)
|
||
Acquisitions of finance receivables and operating leases
|
(26,202
|
)
|
|
(27,113
|
)
|
||
Collections of finance receivables and operating leases
|
24,974
|
|
|
22,923
|
|
||
Proceeds from sale of business (Note 17)
|
—
|
|
|
1,340
|
|
||
Purchases of marketable securities and other investments
|
(7,670
|
)
|
|
(19,624
|
)
|
||
Sales and maturities of marketable securities and other investments
|
8,540
|
|
|
10,804
|
|
||
Settlements of derivatives
|
83
|
|
|
73
|
|
||
Other
|
4
|
|
|
337
|
|
||
Net cash provided by/(used in) investing activities
|
(3,824
|
)
|
|
(14,215
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities
|
|
|
|
||||
Cash payments for dividends and dividend equivalents
|
(1,196
|
)
|
|
(596
|
)
|
||
Purchases of common stock
|
—
|
|
|
—
|
|
||
Net changes in short-term debt
|
71
|
|
|
(789
|
)
|
||
Proceeds from issuance of long-term debt
|
26,233
|
|
|
44,303
|
|
||
Principal payments on long-term debt
|
(25,767
|
)
|
|
(23,345
|
)
|
||
Other
|
(149
|
)
|
|
(182
|
)
|
||
Net cash provided by/(used in) financing activities
|
(808
|
)
|
|
19,391
|
|
||
|
|
|
|
||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
|
24
|
|
|
(378
|
)
|
||
|
|
|
|
||||
Net increase/(decrease) in cash, cash equivalents, and restricted cash
|
$
|
5,399
|
|
|
$
|
13,440
|
|
|
|
|
|
||||
Cash, cash equivalents, and restricted cash at beginning of period (Note 7)
|
$
|
16,907
|
|
|
$
|
17,741
|
|
Net increase/(decrease) in cash, cash equivalents, and restricted cash
|
5,399
|
|
|
13,440
|
|
||
Cash, cash equivalents, and restricted cash at end of period (Note 7)
|
$
|
22,306
|
|
|
$
|
31,181
|
|
|
For the periods ended June 30,
|
||||||||||||||
|
2019
|
|
2020
|
|
2019
|
|
2020
|
||||||||
|
Second Quarter
|
|
First Half
|
||||||||||||
|
(unaudited)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Automotive
|
$
|
35,758
|
|
|
$
|
16,622
|
|
|
$
|
72,997
|
|
|
$
|
47,962
|
|
Ford Credit
|
3,089
|
|
|
2,739
|
|
|
6,186
|
|
|
5,706
|
|
||||
Mobility
|
6
|
|
|
10
|
|
|
12
|
|
|
23
|
|
||||
Total revenues (Note 3)
|
38,853
|
|
|
19,371
|
|
|
79,195
|
|
|
53,691
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Costs and expenses
|
|
|
|
|
|
|
|
||||||||
Cost of sales
|
33,657
|
|
|
17,932
|
|
|
67,599
|
|
|
48,454
|
|
||||
Selling, administrative, and other expenses
|
2,725
|
|
|
1,965
|
|
|
5,568
|
|
|
4,397
|
|
||||
Ford Credit interest, operating, and other expenses
|
2,381
|
|
|
2,233
|
|
|
4,736
|
|
|
5,157
|
|
||||
Total costs and expenses
|
38,763
|
|
|
22,130
|
|
|
77,903
|
|
|
58,008
|
|
||||
Operating income/(loss)
|
90
|
|
|
(2,759
|
)
|
|
1,292
|
|
|
(4,317
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Interest expense on Automotive debt
|
230
|
|
|
439
|
|
|
461
|
|
|
653
|
|
||||
Interest expense on Other debt
|
14
|
|
|
11
|
|
|
28
|
|
|
24
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other income/(loss), net (Note 4)
|
272
|
|
|
4,318
|
|
|
900
|
|
|
4,998
|
|
||||
Equity in net income/(loss) of affiliated companies
|
87
|
|
|
(25
|
)
|
|
112
|
|
|
(66
|
)
|
||||
Income/(Loss) before income taxes
|
205
|
|
|
1,084
|
|
|
1,815
|
|
|
(62
|
)
|
||||
Provision for/(Benefit from) income taxes
|
55
|
|
|
(34
|
)
|
|
482
|
|
|
813
|
|
||||
Net income/(loss)
|
150
|
|
|
1,118
|
|
|
1,333
|
|
|
(875
|
)
|
||||
Less: Income/(Loss) attributable to noncontrolling interests
|
2
|
|
|
1
|
|
|
39
|
|
|
1
|
|
||||
Net income/(loss) attributable to Ford Motor Company
|
$
|
148
|
|
|
$
|
1,117
|
|
|
$
|
1,294
|
|
|
$
|
(876
|
)
|
|
|
|
|
|
|
|
|
||||||||
EARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 6)
|
|||||||||||||||
Basic income/(loss)
|
$
|
0.04
|
|
|
$
|
0.28
|
|
|
$
|
0.33
|
|
|
$
|
(0.22
|
)
|
Diluted income/(loss)
|
0.04
|
|
|
0.28
|
|
|
0.32
|
|
|
(0.22
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares used in computation of earnings per share
|
|
|
|
|
|
|
|
||||||||
Basic shares
|
3,984
|
|
3,975
|
|
3,979
|
|
3,969
|
||||||||
Diluted shares
|
4,013
|
|
3,992
|
|
4,005
|
|
3,969
|
|
For the periods ended June 30,
|
||||||||||||||
|
2019
|
|
2020
|
|
2019
|
|
2020
|
||||||||
|
Second Quarter
|
|
First Half
|
||||||||||||
|
(unaudited)
|
||||||||||||||
Net income/(loss)
|
$
|
150
|
|
|
$
|
1,118
|
|
|
$
|
1,333
|
|
|
$
|
(875
|
)
|
Other comprehensive income/(loss), net of tax (Note 18)
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation
|
(127
|
)
|
|
(102
|
)
|
|
116
|
|
|
(1,555
|
)
|
||||
Marketable securities
|
59
|
|
|
99
|
|
|
122
|
|
|
113
|
|
||||
Derivative instruments
|
117
|
|
|
(24
|
)
|
|
(329
|
)
|
|
668
|
|
||||
Pension and other postretirement benefits
|
16
|
|
|
17
|
|
|
21
|
|
|
31
|
|
||||
Total other comprehensive income/(loss), net of tax
|
65
|
|
|
(10
|
)
|
|
(70
|
)
|
|
(743
|
)
|
||||
Comprehensive income/(loss)
|
215
|
|
|
1,108
|
|
|
1,263
|
|
|
(1,618
|
)
|
||||
Less: Comprehensive income/(loss) attributable to noncontrolling interests
|
2
|
|
|
1
|
|
|
39
|
|
|
1
|
|
||||
Comprehensive income/(loss) attributable to Ford Motor Company
|
$
|
213
|
|
|
$
|
1,107
|
|
|
$
|
1,224
|
|
|
$
|
(1,619
|
)
|
|
December 31,
2019 |
|
June 30,
2020 |
||||
|
(unaudited)
|
||||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents (Note 7)
|
$
|
17,504
|
|
|
$
|
30,989
|
|
Marketable securities (Note 7)
|
17,147
|
|
|
26,141
|
|
||
Ford Credit finance receivables, net of allowance for credit losses of $162 and $396 (Note 8)
|
53,651
|
|
|
42,720
|
|
||
Trade and other receivables, less allowances of $63 and $75
|
9,237
|
|
|
9,107
|
|
||
Inventories (Note 9)
|
10,786
|
|
|
10,220
|
|
||
Assets held for sale (Note 17)
|
2,383
|
|
|
720
|
|
||
Other assets
|
3,339
|
|
|
4,214
|
|
||
Total current assets
|
114,047
|
|
|
124,111
|
|
||
|
|
|
|
||||
Ford Credit finance receivables, net of allowance for credit losses of $351 and $889 (Note 8)
|
53,703
|
|
|
53,987
|
|
||
Net investment in operating leases
|
29,230
|
|
|
27,716
|
|
||
Net property
|
36,469
|
|
|
35,276
|
|
||
Equity in net assets of affiliated companies
|
2,519
|
|
|
4,651
|
|
||
Deferred income taxes
|
11,863
|
|
|
11,066
|
|
||
Other assets
|
10,706
|
|
|
12,559
|
|
||
Total assets
|
$
|
258,537
|
|
|
$
|
269,366
|
|
|
|
|
|
||||
LIABILITIES
|
|
|
|
||||
Payables
|
$
|
20,673
|
|
|
$
|
16,360
|
|
Other liabilities and deferred revenue (Note 12)
|
22,987
|
|
|
20,792
|
|
||
Automotive debt payable within one year (Note 14)
|
1,445
|
|
|
2,084
|
|
||
Ford Credit debt payable within one year (Note 14)
|
52,371
|
|
|
53,260
|
|
||
Other debt payable within one year (Note 14)
|
130
|
|
|
—
|
|
||
Liabilities held for sale (Note 17)
|
526
|
|
|
284
|
|
||
Total current liabilities
|
98,132
|
|
|
92,780
|
|
||
|
|
|
|
||||
Other liabilities and deferred revenue (Note 12)
|
25,324
|
|
|
25,391
|
|
||
Automotive long-term debt (Note 14)
|
13,233
|
|
|
37,409
|
|
||
Ford Credit long-term debt (Note 14)
|
87,658
|
|
|
82,007
|
|
||
Other long-term debt (Note 14)
|
470
|
|
|
470
|
|
||
Deferred income taxes
|
490
|
|
|
454
|
|
||
Total liabilities
|
225,307
|
|
|
238,511
|
|
||
|
|
|
|
||||
EQUITY
|
|
|
|
||||
Common Stock, par value $.01 per share (4,025 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
|
22,165
|
|
|
22,210
|
|
||
Retained earnings
|
20,320
|
|
|
18,645
|
|
||
Accumulated other comprehensive income/(loss) (Note 18)
|
(7,728
|
)
|
|
(8,471
|
)
|
||
Treasury stock
|
(1,613
|
)
|
|
(1,601
|
)
|
||
Total equity attributable to Ford Motor Company
|
33,185
|
|
|
30,824
|
|
||
Equity attributable to noncontrolling interests
|
45
|
|
|
31
|
|
||
Total equity
|
33,230
|
|
|
30,855
|
|
||
Total liabilities and equity
|
$
|
258,537
|
|
|
$
|
269,366
|
|
|
Equity Attributable to Ford Motor Company
|
|
|
|
|
||||||||||||||||||||||||||
|
Capital Stock
|
|
Cap. In Excess of Par Value of Stock
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income/(Loss) (Note 18)
|
|
Treasury Stock
|
|
Total
|
|
Equity Attributable to Non-controlling Interests
|
|
Total
Equity
|
||||||||||||||||
Balance at December 31, 2018
|
$
|
41
|
|
|
$
|
22,006
|
|
|
$
|
22,668
|
|
|
$
|
(7,366
|
)
|
|
$
|
(1,417
|
)
|
|
$
|
35,932
|
|
|
$
|
34
|
|
|
$
|
35,966
|
|
Adoption of accounting standards
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
1,146
|
|
|
—
|
|
|
—
|
|
|
1,146
|
|
|
37
|
|
|
1,183
|
|
||||||||
Other comprehensive income/(loss), net
|
—
|
|
|
—
|
|
|
—
|
|
|
(135
|
)
|
|
—
|
|
|
(135
|
)
|
|
—
|
|
|
(135
|
)
|
||||||||
Common stock issued (a)
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
20
|
|
||||||||
Treasury stock/other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
23
|
|
|
(35
|
)
|
|
(12
|
)
|
||||||||
Dividends and dividend equivalents declared ($0.15 per share) (b)
|
—
|
|
|
—
|
|
|
(601
|
)
|
|
—
|
|
|
—
|
|
|
(601
|
)
|
|
—
|
|
|
(601
|
)
|
||||||||
Balance at March 31, 2019
|
$
|
41
|
|
|
$
|
22,026
|
|
|
$
|
23,226
|
|
|
$
|
(7,501
|
)
|
|
$
|
(1,394
|
)
|
|
$
|
36,398
|
|
|
$
|
36
|
|
|
$
|
36,434
|
|
Net income
|
—
|
|
|
—
|
|
|
148
|
|
|
—
|
|
|
—
|
|
|
148
|
|
|
2
|
|
|
150
|
|
||||||||
Other comprehensive income/(loss), net
|
—
|
|
|
—
|
|
|
—
|
|
|
65
|
|
|
—
|
|
|
65
|
|
|
—
|
|
|
65
|
|
||||||||
Common stock issued (a)
|
—
|
|
|
85
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85
|
|
|
—
|
|
|
85
|
|
||||||||
Treasury stock/other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
6
|
|
|
1
|
|
|
7
|
|
||||||||
Dividends and dividend equivalents declared ($0.15 per share) (b)
|
—
|
|
|
—
|
|
|
(605
|
)
|
|
—
|
|
|
—
|
|
|
(605
|
)
|
|
—
|
|
|
(605
|
)
|
||||||||
Balance at June 30, 2019
|
$
|
41
|
|
|
$
|
22,111
|
|
|
$
|
22,769
|
|
|
$
|
(7,436
|
)
|
|
$
|
(1,388
|
)
|
|
$
|
36,097
|
|
|
$
|
39
|
|
|
$
|
36,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Equity Attributable to Ford Motor Company
|
|
|
|
|
||||||||||||||||||||||||||
|
Capital Stock
|
|
Cap. In Excess of Par Value of Stock
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income/(Loss) (Note 18)
|
|
Treasury Stock
|
|
Total
|
|
Equity Attributable to Non-controlling Interests
|
|
Total
Equity
|
||||||||||||||||
Balance at December 31, 2019
|
$
|
41
|
|
|
$
|
22,165
|
|
|
$
|
20,320
|
|
|
$
|
(7,728
|
)
|
|
$
|
(1,613
|
)
|
|
$
|
33,185
|
|
|
$
|
45
|
|
|
$
|
33,230
|
|
Adoption of accounting standards
|
—
|
|
|
—
|
|
|
(202
|
)
|
|
—
|
|
|
—
|
|
|
(202
|
)
|
|
—
|
|
|
(202
|
)
|
||||||||
Net income/(loss)
|
—
|
|
|
—
|
|
|
(1,993
|
)
|
|
—
|
|
|
—
|
|
|
(1,993
|
)
|
|
—
|
|
|
(1,993
|
)
|
||||||||
Other comprehensive income/(loss), net
|
—
|
|
|
—
|
|
|
—
|
|
|
(733
|
)
|
|
—
|
|
|
(733
|
)
|
|
—
|
|
|
(733
|
)
|
||||||||
Common stock issued (a)
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
(15
|
)
|
||||||||
Treasury stock/other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
6
|
|
|
3
|
|
|
9
|
|
||||||||
Dividends and dividend equivalents declared ($0.15 per share) (b)
|
—
|
|
|
—
|
|
|
(598
|
)
|
|
—
|
|
|
—
|
|
|
(598
|
)
|
|
—
|
|
|
(598
|
)
|
||||||||
Balance at March 31, 2020
|
$
|
41
|
|
|
$
|
22,150
|
|
|
$
|
17,527
|
|
|
$
|
(8,461
|
)
|
|
$
|
(1,607
|
)
|
|
$
|
29,650
|
|
|
$
|
48
|
|
|
$
|
29,698
|
|
Net income/(loss)
|
—
|
|
|
—
|
|
|
1,117
|
|
|
—
|
|
|
—
|
|
|
1,117
|
|
|
1
|
|
|
1,118
|
|
||||||||
Other comprehensive income/(loss), net
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
||||||||
Common stock issued (a)
|
—
|
|
|
60
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|
—
|
|
|
60
|
|
||||||||
Treasury stock/other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
6
|
|
|
(18
|
)
|
|
(12
|
)
|
||||||||
Dividends and dividend equivalents declared
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||||
Balance at June 30, 2020
|
$
|
41
|
|
|
$
|
22,210
|
|
|
$
|
18,645
|
|
|
$
|
(8,471
|
)
|
|
$
|
(1,601
|
)
|
|
$
|
30,824
|
|
|
$
|
31
|
|
|
$
|
30,855
|
|
(a)
|
Includes impacts of share-based compensation.
|
(b)
|
Dividends and dividend equivalents declared for Common and Class B Stock.
|
Footnote
|
|
Page
|
Note 1
|
Presentation
|
|
Note 2
|
New Accounting Standards
|
|
Note 3
|
Revenue
|
|
Note 4
|
Other Income/(Loss)
|
|
Note 5
|
Income Taxes
|
|
Note 6
|
Capital Stock and Earnings Per Share
|
|
Note 7
|
Cash, Cash Equivalents, and Marketable Securities
|
|
Note 8
|
Ford Credit Finance Receivables and Allowance for Credit Losses
|
|
Note 9
|
Inventories
|
|
Note 10
|
Other Investments
|
|
Note 11
|
Goodwill
|
|
Note 12
|
Other Liabilities and Deferred Revenue
|
|
Note 13
|
Retirement Benefits
|
|
Note 14
|
Debt
|
|
Note 15
|
Derivative Financial Instruments and Hedging Activities
|
|
Note 16
|
Employee Separation Actions and Exit and Disposal Activities
|
|
Note 17
|
Held-for-Sale Operations and Changes in Investments in Affiliates
|
|
Note 18
|
Accumulated Other Comprehensive Income/(Loss)
|
|
Note 19
|
Commitments and Contingencies
|
|
Note 20
|
Segment Information
|
|
|
Balance at December 31, 2019
|
|
Adjustments due to ASU 2016-13
|
|
Balance at
January 1, 2020
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Ford Credit finance receivables, net, current
|
|
$
|
53,651
|
|
|
$
|
(69
|
)
|
|
$
|
53,582
|
|
Trade and other receivables, net
|
|
9,237
|
|
|
(3
|
)
|
|
9,234
|
|
|||
Ford Credit finance receivables, net, non-current
|
|
53,703
|
|
|
(183
|
)
|
|
53,520
|
|
|||
Equity in net assets of affiliated companies
|
|
2,519
|
|
|
(7
|
)
|
|
2,512
|
|
|||
Deferred income taxes
|
|
11,863
|
|
|
2
|
|
|
11,865
|
|
|||
Liabilities
|
|
|
|
|
|
|
||||||
Deferred income taxes
|
|
490
|
|
|
(58
|
)
|
|
432
|
|
|||
Equity
|
|
|
|
|
|
|
||||||
Retained earnings
|
|
20,320
|
|
|
(202
|
)
|
|
20,118
|
|
ASU
|
|
Effective Date
|
|
2020-01
|
Clarifying the Interaction between Equity Securities, Equity Method and Joint Ventures, and Derivatives and Hedging
|
|
January 1, 2020
|
2018-18
|
Clarifying the Interaction between Collaborative Arrangements and Revenue from Contracts with Customers
|
|
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
|
|
Second Quarter 2019
|
||||||||||||||
|
Automotive
|
|
Mobility
|
|
Ford Credit
|
|
Consolidated
|
||||||||
Vehicles, parts, and accessories
|
$
|
34,235
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34,235
|
|
Used vehicles
|
842
|
|
|
—
|
|
|
—
|
|
|
842
|
|
||||
Extended service contracts
|
348
|
|
|
—
|
|
|
—
|
|
|
348
|
|
||||
Other revenue
|
219
|
|
|
6
|
|
|
55
|
|
|
280
|
|
||||
Revenues from sales and services
|
35,644
|
|
|
6
|
|
|
55
|
|
|
35,705
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Leasing income
|
114
|
|
|
—
|
|
|
1,472
|
|
|
1,586
|
|
||||
Financing income
|
—
|
|
|
—
|
|
|
1,521
|
|
|
1,521
|
|
||||
Insurance income
|
—
|
|
|
—
|
|
|
41
|
|
|
41
|
|
||||
Total revenues
|
$
|
35,758
|
|
|
$
|
6
|
|
|
$
|
3,089
|
|
|
$
|
38,853
|
|
|
|
|
|
|
|
|
|
||||||||
|
Second Quarter 2020
|
||||||||||||||
|
Automotive
|
|
Mobility
|
|
Ford Credit
|
|
Consolidated
|
||||||||
Vehicles, parts, and accessories
|
$
|
15,406
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,406
|
|
Used vehicles
|
533
|
|
|
—
|
|
|
—
|
|
|
533
|
|
||||
Extended service contracts
|
346
|
|
|
—
|
|
|
—
|
|
|
346
|
|
||||
Other revenue
|
252
|
|
|
10
|
|
|
44
|
|
|
306
|
|
||||
Revenues from sales and services
|
16,537
|
|
|
10
|
|
|
44
|
|
|
16,591
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Leasing income
|
85
|
|
|
—
|
|
|
1,401
|
|
|
1,486
|
|
||||
Financing income
|
—
|
|
|
—
|
|
|
1,261
|
|
|
1,261
|
|
||||
Insurance income
|
—
|
|
|
—
|
|
|
33
|
|
|
33
|
|
||||
Total revenues
|
$
|
16,622
|
|
|
$
|
10
|
|
|
$
|
2,739
|
|
|
$
|
19,371
|
|
|
|
|
|
|
|
|
|
||||||||
|
First Half 2019
|
||||||||||||||
|
Automotive
|
|
Mobility
|
|
Ford Credit
|
|
Consolidated
|
||||||||
Vehicles, parts, and accessories
|
$
|
69,811
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
69,811
|
|
Used vehicles
|
1,862
|
|
|
—
|
|
|
—
|
|
|
1,862
|
|
||||
Extended service contracts
|
681
|
|
|
—
|
|
|
—
|
|
|
681
|
|
||||
Other revenue
|
432
|
|
|
12
|
|
|
106
|
|
|
550
|
|
||||
Revenues from sales and services
|
72,786
|
|
|
12
|
|
|
106
|
|
|
72,904
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Leasing income
|
211
|
|
|
—
|
|
|
2,949
|
|
|
3,160
|
|
||||
Financing income
|
—
|
|
|
—
|
|
|
3,049
|
|
|
3,049
|
|
||||
Insurance income
|
—
|
|
|
—
|
|
|
82
|
|
|
82
|
|
||||
Total revenues
|
$
|
72,997
|
|
|
$
|
12
|
|
|
$
|
6,186
|
|
|
$
|
79,195
|
|
|
|
|
|
|
|
|
|
||||||||
|
First Half 2020
|
||||||||||||||
|
Automotive
|
|
Mobility
|
|
Ford Credit
|
|
Consolidated
|
||||||||
Vehicles, parts, and accessories
|
$
|
45,247
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
45,247
|
|
Used vehicles
|
1,464
|
|
|
—
|
|
|
—
|
|
|
1,464
|
|
||||
Extended service contracts
|
710
|
|
|
—
|
|
|
—
|
|
|
710
|
|
||||
Other revenue
|
398
|
|
|
23
|
|
|
85
|
|
|
506
|
|
||||
Revenues from sales and services
|
47,819
|
|
|
23
|
|
|
85
|
|
|
47,927
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Leasing income
|
143
|
|
|
—
|
|
|
2,860
|
|
|
3,003
|
|
||||
Financing income
|
—
|
|
|
—
|
|
|
2,686
|
|
|
2,686
|
|
||||
Insurance income
|
—
|
|
|
—
|
|
|
75
|
|
|
75
|
|
||||
Total revenues
|
$
|
47,962
|
|
|
$
|
23
|
|
|
$
|
5,706
|
|
|
$
|
53,691
|
|
|
Second Quarter
|
|
First Half
|
||||||||||||
|
2019
|
|
2020
|
|
2019
|
|
2020
|
||||||||
Net periodic pension and OPEB income/(cost), excluding service cost
|
$
|
111
|
|
|
$
|
544
|
|
|
$
|
383
|
|
|
$
|
995
|
|
Investment-related interest income
|
207
|
|
|
122
|
|
|
410
|
|
|
284
|
|
||||
Interest income/(expense) on income taxes
|
(1
|
)
|
|
12
|
|
|
(21
|
)
|
|
(11
|
)
|
||||
Realized and unrealized gains/(losses) on cash equivalents, marketable securities, and other investments
|
(187
|
)
|
|
47
|
|
|
(120
|
)
|
|
15
|
|
||||
Gains/(Losses) on changes in investments in affiliates (a)
|
(1
|
)
|
|
3,465
|
|
|
2
|
|
|
3,480
|
|
||||
Gains/(Losses) on extinguishment of debt
|
(53
|
)
|
|
(1
|
)
|
|
(53
|
)
|
|
(1
|
)
|
||||
Royalty income
|
108
|
|
|
94
|
|
|
192
|
|
|
183
|
|
||||
Other
|
88
|
|
|
35
|
|
|
107
|
|
|
53
|
|
||||
Total
|
$
|
272
|
|
|
$
|
4,318
|
|
|
$
|
900
|
|
|
$
|
4,998
|
|
(a)
|
See Note 17 for additional information relating to our Argo AI, LLC (“Argo AI”) and Volkswagen AG (“VW”) transaction.
|
|
Second Quarter
|
|
First Half
|
||||||||||||
|
2019
|
|
2020
|
|
2019
|
|
2020
|
||||||||
Basic and Diluted Income/(Loss) Attributable to Ford Motor Company
|
|
|
|
|
|
|
|
||||||||
Basic income/(loss)
|
$
|
148
|
|
|
$
|
1,117
|
|
|
$
|
1,294
|
|
|
$
|
(876
|
)
|
Diluted income/(loss)
|
148
|
|
|
1,117
|
|
|
1,294
|
|
|
(876
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic and Diluted Shares
|
|
|
|
|
|
|
|
|
|
||||||
Basic shares (average shares outstanding)
|
3,984
|
|
|
3,975
|
|
|
3,979
|
|
|
3,969
|
|
||||
Net dilutive options, unvested restricted stock units, and unvested restricted stock shares (a)
|
29
|
|
|
17
|
|
|
26
|
|
|
—
|
|
||||
Diluted shares
|
4,013
|
|
|
3,992
|
|
|
4,005
|
|
|
3,969
|
|
(a)
|
Not included in the calculation of diluted earnings per share, due to their antidilutive effect, are 25 million shares for the first half of 2020.
|
|
|
|
December 31, 2019
|
||||||||||||||
|
Fair Value Level
|
|
Automotive
|
|
Mobility
|
|
Ford Credit
|
|
Consolidated
|
||||||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government
|
1
|
|
$
|
520
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
520
|
|
U.S. government agencies
|
2
|
|
125
|
|
|
—
|
|
|
—
|
|
|
125
|
|
||||
Non-U.S. government and agencies
|
2
|
|
601
|
|
|
—
|
|
|
350
|
|
|
951
|
|
||||
Corporate debt
|
2
|
|
642
|
|
|
—
|
|
|
604
|
|
|
1,246
|
|
||||
Total marketable securities classified as cash equivalents
|
|
|
1,888
|
|
|
—
|
|
|
954
|
|
|
2,842
|
|
||||
Cash, time deposits, and money market funds
|
|
|
6,432
|
|
|
117
|
|
|
8,113
|
|
|
14,662
|
|
||||
Total cash and cash equivalents
|
|
|
$
|
8,320
|
|
|
$
|
117
|
|
|
$
|
9,067
|
|
|
$
|
17,504
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Marketable securities
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government
|
1
|
|
$
|
2,930
|
|
|
$
|
—
|
|
|
$
|
195
|
|
|
$
|
3,125
|
|
U.S. government agencies
|
2
|
|
1,548
|
|
|
—
|
|
|
210
|
|
|
1,758
|
|
||||
Non-U.S. government and agencies
|
2
|
|
4,217
|
|
|
—
|
|
|
2,408
|
|
|
6,625
|
|
||||
Corporate debt
|
2
|
|
4,802
|
|
|
—
|
|
|
193
|
|
|
4,995
|
|
||||
Equities (a)
|
1
|
|
81
|
|
|
—
|
|
|
—
|
|
|
81
|
|
||||
Other marketable securities
|
2
|
|
273
|
|
|
—
|
|
|
290
|
|
|
563
|
|
||||
Total marketable securities
|
|
|
$
|
13,851
|
|
|
$
|
—
|
|
|
$
|
3,296
|
|
|
$
|
17,147
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Restricted cash
|
|
|
$
|
15
|
|
|
$
|
21
|
|
|
$
|
139
|
|
|
$
|
175
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash, cash equivalents, and restricted cash in held-for-sale assets
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
62
|
|
|
$
|
62
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
June 30, 2020
|
||||||||||||||
|
Fair Value Level
|
|
Automotive
|
|
Mobility
|
|
Ford Credit
|
|
Consolidated
|
||||||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government
|
1
|
|
$
|
4,307
|
|
|
$
|
—
|
|
|
$
|
1,568
|
|
|
$
|
5,875
|
|
U.S. government agencies
|
2
|
|
1,950
|
|
|
—
|
|
|
825
|
|
|
2,775
|
|
||||
Non-U.S. government and agencies
|
2
|
|
1,578
|
|
|
—
|
|
|
1,352
|
|
|
2,930
|
|
||||
Corporate debt
|
2
|
|
719
|
|
|
—
|
|
|
992
|
|
|
1,711
|
|
||||
Total marketable securities classified as cash equivalents
|
|
|
8,554
|
|
|
—
|
|
|
4,737
|
|
|
13,291
|
|
||||
Cash, time deposits, and money market funds
|
|
|
9,540
|
|
|
57
|
|
|
8,101
|
|
|
17,698
|
|
||||
Total cash and cash equivalents
|
|
|
$
|
18,094
|
|
|
$
|
57
|
|
|
$
|
12,838
|
|
|
$
|
30,989
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Marketable securities
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government
|
1
|
|
$
|
6,879
|
|
|
$
|
—
|
|
|
$
|
1,924
|
|
|
$
|
8,803
|
|
U.S. government agencies
|
2
|
|
5,118
|
|
|
—
|
|
|
410
|
|
|
5,528
|
|
||||
Non-U.S. government and agencies
|
2
|
|
3,451
|
|
|
—
|
|
|
2,215
|
|
|
5,666
|
|
||||
Corporate debt
|
2
|
|
5,358
|
|
|
—
|
|
|
223
|
|
|
5,581
|
|
||||
Equities (a)
|
1
|
|
49
|
|
|
—
|
|
|
—
|
|
|
49
|
|
||||
Other marketable securities
|
2
|
|
250
|
|
|
—
|
|
|
264
|
|
|
514
|
|
||||
Total marketable securities
|
|
|
$
|
21,105
|
|
|
$
|
—
|
|
|
$
|
5,036
|
|
|
$
|
26,141
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Restricted cash
|
|
|
$
|
21
|
|
|
$
|
6
|
|
|
$
|
165
|
|
|
$
|
192
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash, cash equivalents, and restricted cash in held-for-sale assets
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
December 31, 2019
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
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
|
$
|
2,839
|
|
|
$
|
11
|
|
|
$
|
(1
|
)
|
|
$
|
2,849
|
|
|
$
|
1,028
|
|
|
$
|
1,772
|
|
|
$
|
49
|
|
U.S. government agencies
|
1,445
|
|
|
2
|
|
|
(1
|
)
|
|
1,446
|
|
|
830
|
|
|
589
|
|
|
27
|
|
|||||||
Non-U.S. government and agencies
|
3,925
|
|
|
20
|
|
|
(1
|
)
|
|
3,944
|
|
|
1,546
|
|
|
2,398
|
|
|
—
|
|
|||||||
Corporate debt
|
5,029
|
|
|
53
|
|
|
—
|
|
|
5,082
|
|
|
1,837
|
|
|
3,245
|
|
|
—
|
|
|||||||
Other marketable securities
|
230
|
|
|
1
|
|
|
—
|
|
|
231
|
|
|
—
|
|
|
149
|
|
|
82
|
|
|||||||
Total
|
$
|
13,468
|
|
|
$
|
87
|
|
|
$
|
(3
|
)
|
|
$
|
13,552
|
|
|
$
|
5,241
|
|
|
$
|
8,153
|
|
|
$
|
158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
June 30, 2020
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
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
|
$
|
2,978
|
|
|
$
|
64
|
|
|
$
|
—
|
|
|
$
|
3,042
|
|
|
$
|
1,072
|
|
|
$
|
1,935
|
|
|
$
|
35
|
|
U.S. government agencies
|
1,938
|
|
|
15
|
|
|
—
|
|
|
1,953
|
|
|
704
|
|
|
1,126
|
|
|
123
|
|
|||||||
Non-U.S. government and agencies
|
2,849
|
|
|
48
|
|
|
—
|
|
|
2,897
|
|
|
1,192
|
|
|
1,704
|
|
|
1
|
|
|||||||
Corporate debt
|
5,751
|
|
|
106
|
|
|
(5
|
)
|
|
5,852
|
|
|
2,157
|
|
|
3,668
|
|
|
27
|
|
|||||||
Other marketable securities
|
212
|
|
|
3
|
|
|
—
|
|
|
215
|
|
|
—
|
|
|
144
|
|
|
71
|
|
|||||||
Total
|
$
|
13,728
|
|
|
$
|
236
|
|
|
$
|
(5
|
)
|
|
$
|
13,959
|
|
|
$
|
5,125
|
|
|
$
|
8,577
|
|
|
$
|
257
|
|
|
Second Quarter
|
|
First Half
|
||||||||||||
|
2019
|
|
2020
|
|
2019
|
|
2020
|
||||||||
Automotive
|
|
|
|
|
|
|
|
||||||||
Sales proceeds
|
$
|
1,858
|
|
|
$
|
2,452
|
|
|
$
|
3,000
|
|
|
$
|
4,317
|
|
Gross realized gains
|
3
|
|
|
21
|
|
|
5
|
|
|
28
|
|
||||
Gross realized losses
|
5
|
|
|
3
|
|
|
10
|
|
|
10
|
|
|
December 31, 2019
|
||||||||||||||||||||||
|
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
|
$
|
183
|
|
|
$
|
(1
|
)
|
|
$
|
50
|
|
|
$
|
—
|
|
|
$
|
233
|
|
|
$
|
(1
|
)
|
U.S. government agencies
|
370
|
|
|
(1
|
)
|
|
344
|
|
|
—
|
|
|
714
|
|
|
(1
|
)
|
||||||
Non-U.S. government and agencies
|
463
|
|
|
—
|
|
|
390
|
|
|
(1
|
)
|
|
853
|
|
|
(1
|
)
|
||||||
Corporate debt
|
29
|
|
|
—
|
|
|
53
|
|
|
—
|
|
|
82
|
|
|
—
|
|
||||||
Other marketable securities
|
59
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
76
|
|
|
—
|
|
||||||
Total
|
$
|
1,104
|
|
|
$
|
(2
|
)
|
|
$
|
854
|
|
|
$
|
(1
|
)
|
|
$
|
1,958
|
|
|
$
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
June 30, 2020
|
||||||||||||||||||||||
|
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
|
$
|
357
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
357
|
|
|
$
|
—
|
|
U.S. government agencies
|
25
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
67
|
|
|
—
|
|
||||||
Non-U.S. government and agencies
|
319
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
355
|
|
|
—
|
|
||||||
Corporate debt
|
783
|
|
|
(4
|
)
|
|
11
|
|
|
(1
|
)
|
|
794
|
|
|
(5
|
)
|
||||||
Other marketable securities
|
7
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
23
|
|
|
—
|
|
||||||
Total
|
$
|
1,491
|
|
|
$
|
(4
|
)
|
|
$
|
105
|
|
|
$
|
(1
|
)
|
|
$
|
1,596
|
|
|
$
|
(5
|
)
|
|
December 31,
2019 |
|
June 30,
2020 |
||||
Cash and cash equivalents (a)
|
$
|
17,504
|
|
|
$
|
30,989
|
|
Restricted cash (b)
|
175
|
|
|
192
|
|
||
Cash, cash equivalents, and restricted cash in held-for-sale assets
|
62
|
|
|
—
|
|
||
Total cash, cash equivalents, and restricted cash
|
$
|
17,741
|
|
|
$
|
31,181
|
|
(a)
|
Includes a $290 million cash compensating balance at June 30, 2020 in an interest-bearing savings account related to a $498 million debt obligation.
|
(b)
|
Included in Other assets in the non-current assets section of our consolidated balance sheets.
|
|
December 31,
2019 |
|
June 30,
2020 |
||||
Consumer
|
|
|
|
||||
Retail installment contracts, gross
|
$
|
68,905
|
|
|
$
|
70,773
|
|
Finance leases, gross
|
8,566
|
|
|
7,879
|
|
||
Retail financing, gross
|
77,471
|
|
|
78,652
|
|
||
Unearned interest supplements
|
(3,589
|
)
|
|
(3,844
|
)
|
||
Consumer finance receivables
|
73,882
|
|
|
74,808
|
|
||
Non-Consumer
|
|
|
|
|
|
||
Dealer financing
|
33,985
|
|
|
23,184
|
|
||
Non-Consumer finance receivables
|
33,985
|
|
|
23,184
|
|
||
Total recorded investment
|
$
|
107,867
|
|
|
$
|
97,992
|
|
|
|
|
|
||||
Recorded investment in finance receivables
|
$
|
107,867
|
|
|
$
|
97,992
|
|
Allowance for credit losses
|
(513
|
)
|
|
(1,285
|
)
|
||
Total finance receivables, net
|
$
|
107,354
|
|
|
$
|
96,707
|
|
|
|
|
|
||||
Current portion
|
$
|
53,651
|
|
|
$
|
42,720
|
|
Non-current portion
|
53,703
|
|
|
53,987
|
|
||
Total finance receivables, net
|
$
|
107,354
|
|
|
$
|
96,707
|
|
|
|
|
|
||||
Net finance receivables subject to fair value (a)
|
$
|
99,168
|
|
|
$
|
89,207
|
|
Fair value (b)
|
99,297
|
|
|
90,298
|
|
(a)
|
Net finance receivables subject to fair value exclude finance leases.
|
(b)
|
The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy.
|
•
|
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.
|
|
|
Total
|
||
Consumer
|
|
|
||
31 - 60 days past due
|
|
$
|
839
|
|
61 - 120 days past due
|
|
166
|
|
|
Greater than 120 days past due
|
|
35
|
|
|
Total past due
|
|
1,040
|
|
|
Current
|
|
72,842
|
|
|
Total
|
|
$
|
73,882
|
|
|
|
Amortized Cost Basis by Origination Year
|
|
|
||||||||||||||||||||||||
|
|
Prior to 2016
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
Total
|
||||||||||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
31 - 60 days past due
|
|
$
|
45
|
|
|
$
|
60
|
|
|
$
|
98
|
|
|
$
|
135
|
|
|
$
|
124
|
|
|
$
|
31
|
|
|
$
|
493
|
|
61 - 120 days past due
|
|
9
|
|
|
17
|
|
|
33
|
|
|
44
|
|
|
40
|
|
|
10
|
|
|
153
|
|
|||||||
Greater than 120 days past due
|
|
14
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
6
|
|
|
—
|
|
|
44
|
|
|||||||
Total past due
|
|
68
|
|
|
84
|
|
|
139
|
|
|
188
|
|
|
170
|
|
|
41
|
|
|
690
|
|
|||||||
Current
|
|
1,631
|
|
|
4,199
|
|
|
9,581
|
|
|
17,452
|
|
|
24,396
|
|
|
16,859
|
|
|
74,118
|
|
|||||||
Total
|
|
$
|
1,699
|
|
|
$
|
4,283
|
|
|
$
|
9,720
|
|
|
$
|
17,640
|
|
|
$
|
24,566
|
|
|
$
|
16,900
|
|
|
$
|
74,808
|
|
•
|
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.
|
(a)
|
Total past due dealer financing receivables at December 31, 2019 were $62 million.
|
|
|
Amortized Cost Basis by Origination Year
|
|
Wholesale Loans
|
|
|
||||||||||||||||||||||||||||||
|
|
Dealer Loans
|
|
|
|
|||||||||||||||||||||||||||||||
|
|
Prior to 2016
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
Total
|
|
|
Total
|
|||||||||||||||||||
Group I
|
|
$
|
608
|
|
|
$
|
132
|
|
|
$
|
159
|
|
|
$
|
221
|
|
|
$
|
98
|
|
|
$
|
237
|
|
|
$
|
1,455
|
|
|
$
|
14,102
|
|
|
$
|
15,557
|
|
Group II
|
|
38
|
|
|
32
|
|
|
17
|
|
|
18
|
|
|
7
|
|
|
72
|
|
|
184
|
|
|
5,317
|
|
|
5,501
|
|
|||||||||
Group III
|
|
9
|
|
|
—
|
|
|
4
|
|
|
17
|
|
|
6
|
|
|
28
|
|
|
64
|
|
|
1,908
|
|
|
1,972
|
|
|||||||||
Group IV
|
|
2
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
4
|
|
|
11
|
|
|
143
|
|
|
154
|
|
|||||||||
Total (a)
|
|
$
|
657
|
|
|
$
|
167
|
|
|
$
|
180
|
|
|
$
|
256
|
|
|
$
|
113
|
|
|
$
|
341
|
|
|
$
|
1,714
|
|
|
$
|
21,470
|
|
|
$
|
23,184
|
|
(a)
|
Total past due dealer financing receivables at June 30, 2020 were $143 million.
|
|
Second Quarter 2019 (a)
|
|
First Half 2019 (a)
|
||||||||||||||||||||
|
Consumer
|
|
Non-Consumer
|
|
Total
|
|
Consumer
|
|
Non-Consumer
|
|
Total
|
||||||||||||
Allowance for credit losses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
$
|
496
|
|
|
$
|
17
|
|
|
$
|
513
|
|
|
$
|
566
|
|
|
$
|
23
|
|
|
$
|
589
|
|
Charge-offs
|
(117
|
)
|
|
—
|
|
|
(117
|
)
|
|
(254
|
)
|
|
(17
|
)
|
|
(271
|
)
|
||||||
Recoveries
|
45
|
|
|
6
|
|
|
51
|
|
|
88
|
|
|
8
|
|
|
96
|
|
||||||
Provision for credit losses
|
70
|
|
|
(7
|
)
|
|
63
|
|
|
94
|
|
|
2
|
|
|
96
|
|
||||||
Other (c)
|
2
|
|
|
1
|
|
|
3
|
|
|
2
|
|
|
1
|
|
|
3
|
|
||||||
Ending balance
|
$
|
496
|
|
|
$
|
17
|
|
|
$
|
513
|
|
|
$
|
496
|
|
|
$
|
17
|
|
|
$
|
513
|
|
|
Second Quarter 2020
|
|
First Half 2020
|
||||||||||||||||||||
|
Consumer
|
|
Non-Consumer
|
|
Total
|
|
Consumer
|
|
Non-Consumer
|
|
Total
|
||||||||||||
Allowance for credit losses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
$
|
1,157
|
|
|
$
|
74
|
|
|
$
|
1,231
|
|
|
$
|
496
|
|
|
$
|
17
|
|
|
$
|
513
|
|
Adoption of ASU 2016-13 (b)
|
—
|
|
|
—
|
|
|
—
|
|
|
247
|
|
|
5
|
|
|
252
|
|
||||||
Charge-offs (c)
|
(80
|
)
|
|
—
|
|
|
(80
|
)
|
|
(225
|
)
|
|
(1
|
)
|
|
(226
|
)
|
||||||
Recoveries (c)
|
33
|
|
|
1
|
|
|
34
|
|
|
76
|
|
|
3
|
|
|
79
|
|
||||||
Provision for credit losses
|
94
|
|
|
(1
|
)
|
|
93
|
|
|
628
|
|
|
51
|
|
|
679
|
|
||||||
Other (d)
|
7
|
|
|
—
|
|
|
7
|
|
|
(11
|
)
|
|
(1
|
)
|
|
(12
|
)
|
||||||
Ending balance
|
$
|
1,211
|
|
|
$
|
74
|
|
|
$
|
1,285
|
|
|
$
|
1,211
|
|
|
$
|
74
|
|
|
$
|
1,285
|
|
(a)
|
The comparative information has not been restated and continues to be reported under the accounting standard in effect during 2019.
|
(b)
|
Cumulative pre-tax adjustments recorded to retained earnings as of January 1, 2020. See Note 2 for additional information.
|
(c)
|
Charge-offs and recoveries were lower in the second quarter of 2020 reflecting program extensions and decision to temporarily suspend involuntary repossessions due to COVID-19.
|
(d)
|
Primarily represents amounts related to translation adjustments.
|
|
December 31,
2019 |
|
June 30,
2020 |
||||
Raw materials, work-in-process, and supplies
|
$
|
4,402
|
|
|
$
|
4,367
|
|
Finished products
|
6,384
|
|
|
5,853
|
|
||
Total inventories
|
$
|
10,786
|
|
|
$
|
10,220
|
|
|
December 31,
2019 |
|
June 30,
2020 |
||||
Current
|
|
|
|
||||
Dealer and dealers’ customer allowances and claims
|
$
|
13,113
|
|
|
$
|
11,632
|
|
Deferred revenue
|
2,091
|
|
|
2,021
|
|
||
Employee benefit plans
|
1,857
|
|
|
1,483
|
|
||
Accrued interest
|
1,128
|
|
|
1,117
|
|
||
OPEB (a)
|
332
|
|
|
327
|
|
||
Pension (a)
|
185
|
|
|
184
|
|
||
Operating lease liabilities
|
367
|
|
|
339
|
|
||
Other
|
3,914
|
|
|
3,689
|
|
||
Total current other liabilities and deferred revenue
|
$
|
22,987
|
|
|
$
|
20,792
|
|
Non-current
|
|
|
|
|
|
||
Pension (a)
|
$
|
9,878
|
|
|
$
|
9,487
|
|
OPEB (a)
|
5,740
|
|
|
5,661
|
|
||
Dealer and dealers’ customer allowances and claims
|
1,921
|
|
|
2,464
|
|
||
Deferred revenue
|
4,191
|
|
|
4,257
|
|
||
Operating lease liabilities
|
1,047
|
|
|
914
|
|
||
Employee benefit plans
|
1,104
|
|
|
1,105
|
|
||
Other
|
1,443
|
|
|
1,503
|
|
||
Total non-current other liabilities and deferred revenue
|
$
|
25,324
|
|
|
$
|
25,391
|
|
(a)
|
Balances at June 30, 2020 reflect pension and OPEB liabilities at December 31, 2019, updated for service and interest cost, expected return on assets, curtailment and settlement gains and associated interim remeasurement (where applicable), separation expense, actual benefit payments, and cash contributions. For plans without interim remeasurement, the discount rate and rate of expected return assumptions are unchanged from year-end 2019. Included in Other assets are pension assets of $3.2 billion and $3.8 billion at December 31, 2019 and June 30, 2020, respectively.
|
|
Second Quarter
|
||||||||||||||||||||||
|
Pension Benefits
|
|
|
|
|
||||||||||||||||||
|
U.S. Plans
|
|
Non-U.S. Plans
|
|
Worldwide OPEB
|
||||||||||||||||||
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
||||||||||||
Service cost
|
$
|
114
|
|
|
$
|
130
|
|
|
$
|
127
|
|
|
$
|
127
|
|
|
$
|
11
|
|
|
$
|
11
|
|
Interest cost
|
409
|
|
|
323
|
|
|
173
|
|
|
130
|
|
|
52
|
|
|
41
|
|
||||||
Expected return on assets
|
(649
|
)
|
|
(699
|
)
|
|
(281
|
)
|
|
(254
|
)
|
|
—
|
|
|
—
|
|
||||||
Amortization of prior service costs/(credits)
|
21
|
|
|
1
|
|
|
9
|
|
|
8
|
|
|
(17
|
)
|
|
(4
|
)
|
||||||
Net remeasurement (gain)/loss
|
(10
|
)
|
|
4
|
|
|
—
|
|
|
(152
|
)
|
|
—
|
|
|
—
|
|
||||||
Separation programs/other
|
—
|
|
|
3
|
|
|
232
|
|
|
33
|
|
|
—
|
|
|
1
|
|
||||||
Settlements and curtailments
|
(50
|
)
|
|
4
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic benefit cost/(income)
|
$
|
(165
|
)
|
|
$
|
(234
|
)
|
|
$
|
260
|
|
|
$
|
(91
|
)
|
|
$
|
46
|
|
|
$
|
49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
First Half
|
||||||||||||||||||||||
|
Pension Benefits
|
|
|
|
|
||||||||||||||||||
|
U.S. Plans
|
|
Non-U.S. Plans
|
|
Worldwide OPEB
|
||||||||||||||||||
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
||||||||||||
Service cost
|
$
|
228
|
|
|
$
|
260
|
|
|
$
|
256
|
|
|
$
|
258
|
|
|
$
|
22
|
|
|
$
|
23
|
|
Interest cost
|
818
|
|
|
646
|
|
|
349
|
|
|
263
|
|
|
105
|
|
|
84
|
|
||||||
Expected return on assets
|
(1,298
|
)
|
|
(1,398
|
)
|
|
(567
|
)
|
|
(521
|
)
|
|
—
|
|
|
—
|
|
||||||
Amortization of prior service costs/(credits)
|
43
|
|
|
2
|
|
|
17
|
|
|
17
|
|
|
(35
|
)
|
|
(8
|
)
|
||||||
Net remeasurement (gain)/loss
|
(10
|
)
|
|
4
|
|
|
—
|
|
|
(232
|
)
|
|
—
|
|
|
58
|
|
||||||
Separation programs/other
|
1
|
|
|
13
|
|
|
244
|
|
|
57
|
|
|
—
|
|
|
—
|
|
||||||
Settlements and curtailments
|
(50
|
)
|
|
4
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
(2
|
)
|
||||||
Net periodic benefit cost/(income)
|
$
|
(268
|
)
|
|
$
|
(469
|
)
|
|
$
|
299
|
|
|
$
|
(140
|
)
|
|
$
|
92
|
|
|
$
|
155
|
|
|
December 31,
2019 |
|
June 30,
2020 |
||||
Automotive
|
|
|
|
||||
Debt payable within one year
|
|
|
|
||||
Short-term
|
$
|
315
|
|
|
$
|
1,172
|
|
Long-term payable within one year
|
|
|
|
|
|
||
Credit facilities (a)
|
—
|
|
|
292
|
|
||
U.S. Department of Energy Advanced Technology Vehicles Manufacturing (“DOE ATVM”) Incentive Program (b)
|
591
|
|
|
148
|
|
||
Other debt
|
540
|
|
|
472
|
|
||
Unamortized (discount)/premium
|
(1
|
)
|
|
—
|
|
||
Total debt payable within one year
|
1,445
|
|
|
2,084
|
|
||
Long-term debt payable after one year
|
|
|
|
|
|
||
Public unsecured debt securities (c)
|
10,583
|
|
|
18,583
|
|
||
Credit facilities (a)
|
—
|
|
|
15,068
|
|
||
Delayed draw term loan
|
1,500
|
|
|
1,500
|
|
||
DOE ATVM Incentive Program (b)
|
880
|
|
|
1,138
|
|
||
Other debt (d)
|
547
|
|
|
1,559
|
|
||
Unamortized (discount)/premium
|
(161
|
)
|
|
(242
|
)
|
||
Unamortized issuance costs
|
(116
|
)
|
|
(197
|
)
|
||
Total long-term debt payable after one year
|
13,233
|
|
|
37,409
|
|
||
Total Automotive
|
$
|
14,678
|
|
|
$
|
39,493
|
|
Fair value of Automotive debt (e)
|
$
|
15,606
|
|
|
$
|
38,280
|
|
Ford Credit
|
|
|
|
|
|
||
Debt payable within one year
|
|
|
|
|
|
||
Short-term
|
$
|
13,717
|
|
|
$
|
11,681
|
|
Long-term payable within one year
|
|
|
|
|
|
||
Unsecured debt
|
15,062
|
|
|
18,567
|
|
||
Asset-backed debt
|
23,609
|
|
|
22,997
|
|
||
Unamortized (discount)/premium
|
1
|
|
|
1
|
|
||
Unamortized issuance costs
|
(17
|
)
|
|
(19
|
)
|
||
Fair value adjustments (f)
|
(1
|
)
|
|
33
|
|
||
Total debt payable within one year
|
52,371
|
|
|
53,260
|
|
||
Long-term debt payable after one year
|
|
|
|
||||
Unsecured debt
|
55,148
|
|
|
49,711
|
|
||
Asset-backed debt
|
32,162
|
|
|
30,794
|
|
||
Unamortized (discount)/premium
|
6
|
|
|
4
|
|
||
Unamortized issuance costs
|
(197
|
)
|
|
(186
|
)
|
||
Fair value adjustments (f)
|
539
|
|
|
1,684
|
|
||
Total long-term debt payable after one year
|
87,658
|
|
|
82,007
|
|
||
Total Ford Credit
|
$
|
140,029
|
|
|
$
|
135,267
|
|
Fair value of Ford Credit debt (e)
|
$
|
141,678
|
|
|
$
|
132,836
|
|
Other
|
|
|
|
||||
Long-term debt payable within one year
|
$
|
130
|
|
|
$
|
—
|
|
Long-term debt payable after one year
|
|
|
|
||||
Unsecured debt
|
474
|
|
|
474
|
|
||
Unamortized (discount)/premium and issuance costs
|
(4
|
)
|
|
(4
|
)
|
||
Total long-term debt payable after one year
|
470
|
|
|
470
|
|
||
Total Other
|
$
|
600
|
|
|
$
|
470
|
|
Fair value of Other debt
|
$
|
720
|
|
|
$
|
534
|
|
(a)
|
We drew $15.4 billion under our corporate credit facility and supplemental revolving credit facility in the first quarter of 2020. On July 27, 2020, we repaid $5.7 billion of our corporate credit facility and the full $2 billion outstanding under our supplemental revolving credit facility.
|
(b)
|
In June 2020, our DOE ATVM loan was modified, reducing quarterly principal payments from $148 million to $37 million. The deferred portion of the principal payments will be due upon original maturity in June 2022.
|
(c)
|
Public unsecured debt securities increased by $8 billion reflecting our unsecured debt issuance in April 2020.
|
(d)
|
Includes a £625 million five-year term loan entered into by Ford Motor Company Limited in June 2020 pursuant to U.K. Export Finance program.
|
(e)
|
The fair value of debt includes $315 million and $1.2 billion of Automotive short-term debt and $12.8 billion and $10.9 billion of Ford Credit short-term debt at December 31, 2019 and June 30, 2020, respectively, carried at cost, which approximates fair value. All debt is categorized within Level 2 of the fair value hierarchy.
|
(f)
|
These adjustments relate to fair value hedges. The carrying value of hedged debt was $39.4 billion and $42.5 billion at December 31, 2019 and June 30, 2020, respectively.
|
|
Second Quarter
|
|
First Half
|
||||||||||||
Cash flow hedges (a)
|
2019
|
|
2020
|
|
2019
|
|
2020
|
||||||||
Reclassified from AOCI to Cost of sales
|
|
|
|
|
|
|
|
||||||||
Foreign currency exchange contracts
|
$
|
44
|
|
|
$
|
(4
|
)
|
|
$
|
98
|
|
|
$
|
(74
|
)
|
Commodity contracts
|
(6
|
)
|
|
(14
|
)
|
|
(11
|
)
|
|
(28
|
)
|
||||
Fair value hedges
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
||||||||
Net interest settlements and accruals on hedging instruments
|
(12
|
)
|
|
68
|
|
|
(32
|
)
|
|
96
|
|
||||
Fair value changes on hedging instruments
|
474
|
|
|
112
|
|
|
724
|
|
|
1,222
|
|
||||
Fair value changes on hedged debt
|
(463
|
)
|
|
(98
|
)
|
|
(716
|
)
|
|
(1,191
|
)
|
||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
||||||||
Foreign currency exchange contracts (b)
|
5
|
|
|
(274
|
)
|
|
(23
|
)
|
|
312
|
|
||||
Cross-currency interest rate swap contracts
|
141
|
|
|
154
|
|
|
(4
|
)
|
|
3
|
|
||||
Interest rate contracts
|
(3
|
)
|
|
(12
|
)
|
|
(30
|
)
|
|
(86
|
)
|
||||
Commodity contracts
|
(12
|
)
|
|
12
|
|
|
(1
|
)
|
|
(31
|
)
|
||||
Total
|
$
|
168
|
|
|
$
|
(56
|
)
|
|
$
|
5
|
|
|
$
|
223
|
|
(a)
|
For the second quarter and first half of 2019, a $205 million gain and a $316 million loss, respectively, were reported in Other comprehensive income/(loss), net of tax related to foreign currency exchange contracts. For the second quarter and first half of 2020, an $81 million loss and an $816 million gain, respectively, were reported in Other comprehensive income/(loss), net of tax related to foreign currency exchange contracts. For the second quarter and first half of 2019, a $37 million loss and a $26 million loss, respectively, were reported in Other comprehensive income/(loss), net of tax related to commodity contracts. For the second quarter and first half of 2020, a $17 million gain and an $84 million loss, respectively, were reported in Other comprehensive income/(loss), net of tax related to commodity contracts.
|
(b)
|
For the second quarter and first half of 2019, a $35 million loss and a $57 million loss were reported in Cost of sales, respectively, and a $40 million gain and a $34 million gain were reported in Other income/(loss), net, respectively. For the second quarter and first half of 2020, a $231 million loss and a $145 million gain were reported in Cost of sales, respectively, and a $43 million loss and a $167 million gain were reported in Other income/(loss), net, respectively.
|
|
December 31, 2019
|
|
June 30, 2020
|
||||||||||||||||||||
|
Notional
|
|
Fair Value of
Assets
|
|
Fair Value of
Liabilities
|
|
Notional
|
|
Fair Value of
Assets
|
|
Fair Value of
Liabilities
|
||||||||||||
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency exchange contracts
|
$
|
15,349
|
|
|
$
|
47
|
|
|
$
|
493
|
|
|
$
|
12,966
|
|
|
$
|
371
|
|
|
$
|
55
|
|
Commodity contracts
|
673
|
|
|
5
|
|
|
29
|
|
|
617
|
|
|
2
|
|
|
69
|
|
||||||
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate contracts
|
26,577
|
|
|
702
|
|
|
19
|
|
|
24,434
|
|
|
1,682
|
|
|
—
|
|
||||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency exchange contracts
|
19,350
|
|
|
58
|
|
|
270
|
|
|
20,075
|
|
|
225
|
|
|
238
|
|
||||||
Cross-currency interest rate swap contracts
|
5,849
|
|
|
134
|
|
|
67
|
|
|
5,611
|
|
|
163
|
|
|
53
|
|
||||||
Interest rate contracts
|
68,914
|
|
|
275
|
|
|
191
|
|
|
71,075
|
|
|
752
|
|
|
573
|
|
||||||
Commodity contracts
|
467
|
|
|
9
|
|
|
9
|
|
|
450
|
|
|
12
|
|
|
29
|
|
||||||
Total derivative financial instruments, gross (a) (b)
|
$
|
137,179
|
|
|
$
|
1,230
|
|
|
$
|
1,078
|
|
|
$
|
135,228
|
|
|
$
|
3,207
|
|
|
$
|
1,017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current portion
|
|
|
$
|
390
|
|
|
$
|
772
|
|
|
|
|
$
|
1,239
|
|
|
$
|
683
|
|
||||
Non-current portion
|
|
|
840
|
|
|
306
|
|
|
|
|
1,968
|
|
|
334
|
|
||||||||
Total derivative financial instruments, gross
|
|
|
$
|
1,230
|
|
|
$
|
1,078
|
|
|
|
|
$
|
3,207
|
|
|
$
|
1,017
|
|
(a)
|
At December 31, 2019 and June 30, 2020, we held collateral of $18 million and $20 million, and we posted collateral of $78 million and $91 million, respectively.
|
(b)
|
At December 31, 2019 and June 30, 2020, the fair value of assets and liabilities available for counterparty netting was $269 million and $600 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.
|
|
Second Quarter
|
|
First Half
|
||||||||||||
|
2019
|
|
2020
|
|
2019
|
|
2020
|
||||||||
Beginning balance
|
$
|
414
|
|
|
$
|
601
|
|
|
$
|
291
|
|
|
$
|
734
|
|
Changes in accruals (a)
|
741
|
|
|
26
|
|
|
1,008
|
|
|
94
|
|
||||
Payments
|
(222
|
)
|
|
(99
|
)
|
|
(358
|
)
|
|
(271
|
)
|
||||
Foreign currency translation
|
(4
|
)
|
|
(4
|
)
|
|
(12
|
)
|
|
(33
|
)
|
||||
Ending balance
|
$
|
929
|
|
|
$
|
524
|
|
|
$
|
929
|
|
|
$
|
524
|
|
|
December 31,
2019 |
|
June 30,
2020 |
||||
Assets
|
|
|
|
||||
Trade and other receivables, net
|
$
|
269
|
|
|
$
|
101
|
|
Inventories
|
208
|
|
|
244
|
|
||
Other assets, current
|
147
|
|
|
108
|
|
||
Net property
|
279
|
|
|
263
|
|
||
Other assets, non-current
|
10
|
|
|
8
|
|
||
Total assets of held-for-sale operations
|
913
|
|
|
724
|
|
||
Less: Intercompany asset balances
|
(228
|
)
|
|
(54
|
)
|
||
Automotive segment total assets of held-for-sale operations (a)
|
$
|
685
|
|
|
$
|
670
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Payables
|
$
|
461
|
|
|
$
|
263
|
|
Other liabilities and deferred revenue, current
|
71
|
|
|
53
|
|
||
Automotive debt payable within one year
|
90
|
|
|
83
|
|
||
Other liabilities and deferred revenue, non-current
|
28
|
|
|
25
|
|
||
Total liabilities of held-for-sale operations
|
650
|
|
|
424
|
|
||
Less: Intercompany liability balances
|
(169
|
)
|
|
(140
|
)
|
||
Automotive segment total liabilities of held-for-sale operations (a)
|
$
|
481
|
|
|
$
|
284
|
|
(a)
|
As of December 31, 2019 and June 30, 2020, intercompany items and transactions have been eliminated on the consolidated balance sheets. Upon closing, the buyer will assume the intercompany assets and liabilities. Accordingly, we have presented those balances in the table for informational purposes.
|
|
December 31,
2019 |
||
Assets
|
|
||
Cash and cash equivalents
|
$
|
61
|
|
Ford Credit finance receivables, net, current
|
516
|
|
|
Trade and other receivables, net
|
8
|
|
|
Other assets, current
|
106
|
|
|
Ford Credit finance receivables, net, non-current
|
715
|
|
|
Net property
|
2
|
|
|
Deferred income taxes
|
9
|
|
|
Other assets, non-current
|
1
|
|
|
Total assets of held-for-sale operations
|
1,418
|
|
|
Less: Intercompany asset balances
|
(2
|
)
|
|
Ford Credit segment total assets of held-for-sale operations (a)
|
$
|
1,416
|
|
|
|
||
Liabilities
|
|
||
Payables
|
$
|
34
|
|
Other liabilities and deferred revenue, current
|
8
|
|
|
Ford Credit long-term debt
|
1,254
|
|
|
Deferred income taxes
|
23
|
|
|
Total liabilities of held-for-sale operations
|
1,319
|
|
|
Less: Intercompany liability balances
|
(1,274
|
)
|
|
Ford Credit segment total liabilities of held-for-sale operations (a)
|
$
|
45
|
|
(a)
|
As of December 31, 2019, intercompany items and transactions have been eliminated on the consolidated balance sheets. Upon closing, the buyer assumed the intercompany assets and liabilities. Accordingly, we have presented those balances in the table for informational purposes.
|
|
Second Quarter
|
|
First Half
|
||||||||||||
|
2019
|
|
2020
|
|
2019
|
|
2020
|
||||||||
Foreign currency translation
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
(4,557
|
)
|
|
$
|
(6,079
|
)
|
|
$
|
(4,800
|
)
|
|
$
|
(4,626
|
)
|
Gains/(Losses) on foreign currency translation
|
(139
|
)
|
|
(141
|
)
|
|
132
|
|
|
(1,547
|
)
|
||||
Less: Tax/(Tax benefit)
|
(12
|
)
|
|
(50
|
)
|
|
16
|
|
|
(23
|
)
|
||||
Net gains/(losses) on foreign currency translation
|
(127
|
)
|
|
(91
|
)
|
|
116
|
|
|
(1,524
|
)
|
||||
(Gains)/Losses reclassified from AOCI to net income (a)
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(31
|
)
|
||||
Other comprehensive income/(loss), net of tax
|
(127
|
)
|
|
(102
|
)
|
|
116
|
|
|
(1,555
|
)
|
||||
Ending balance
|
$
|
(4,684
|
)
|
|
$
|
(6,181
|
)
|
|
$
|
(4,684
|
)
|
|
$
|
(6,181
|
)
|
|
|
|
|
|
|
|
|
||||||||
Marketable securities
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
4
|
|
|
$
|
85
|
|
|
$
|
(59
|
)
|
|
$
|
71
|
|
Gains/(Losses) on available for sale securities
|
74
|
|
|
146
|
|
|
154
|
|
|
165
|
|
||||
Less: Tax/(Tax benefit)
|
17
|
|
|
33
|
|
|
36
|
|
|
38
|
|
||||
Net gains/(losses) on available for sale securities
|
57
|
|
|
113
|
|
|
118
|
|
|
127
|
|
||||
(Gains)/Losses reclassified from AOCI to net income
|
2
|
|
|
(18
|
)
|
|
5
|
|
|
(18
|
)
|
||||
Less: Tax/(Tax benefit)
|
—
|
|
|
(4
|
)
|
|
1
|
|
|
(4
|
)
|
||||
Net (gains)/losses reclassified from AOCI to net income
|
2
|
|
|
(14
|
)
|
|
4
|
|
|
(14
|
)
|
||||
Other comprehensive income/(loss), net of tax
|
59
|
|
|
99
|
|
|
122
|
|
|
113
|
|
||||
Ending balance
|
$
|
63
|
|
|
$
|
184
|
|
|
$
|
63
|
|
|
$
|
184
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative instruments
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
(245
|
)
|
|
$
|
204
|
|
|
$
|
201
|
|
|
$
|
(488
|
)
|
Gains/(Losses) on derivative instruments
|
168
|
|
|
(64
|
)
|
|
(342
|
)
|
|
732
|
|
||||
Less: Tax/(Tax benefit)
|
24
|
|
|
(23
|
)
|
|
(78
|
)
|
|
150
|
|
||||
Net gains/(losses) on derivative instruments
|
144
|
|
|
(41
|
)
|
|
(264
|
)
|
|
582
|
|
||||
(Gains)/Losses reclassified from AOCI to net income
|
(38
|
)
|
|
18
|
|
|
(87
|
)
|
|
102
|
|
||||
Less: Tax/(Tax benefit)
|
(11
|
)
|
|
1
|
|
|
(22
|
)
|
|
16
|
|
||||
Net (gains)/losses reclassified from AOCI to net income (b)
|
(27
|
)
|
|
17
|
|
|
(65
|
)
|
|
86
|
|
||||
Other comprehensive income/(loss), net of tax
|
117
|
|
|
(24
|
)
|
|
(329
|
)
|
|
668
|
|
||||
Ending balance
|
$
|
(128
|
)
|
|
$
|
180
|
|
|
$
|
(128
|
)
|
|
$
|
180
|
|
|
|
|
|
|
|
|
|
||||||||
Pension and other postretirement benefits
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
(2,703
|
)
|
|
$
|
(2,671
|
)
|
|
$
|
(2,708
|
)
|
|
$
|
(2,685
|
)
|
Amortization and recognition of prior service costs/(credits)
|
13
|
|
|
22
|
|
|
25
|
|
|
26
|
|
||||
Less: Tax/(Tax benefit)
|
3
|
|
|
3
|
|
|
5
|
|
|
4
|
|
||||
Net prior service costs/(credits) reclassified from AOCI to net income
|
10
|
|
|
19
|
|
|
20
|
|
|
22
|
|
||||
Translation impact on non-U.S. plans
|
6
|
|
|
(2
|
)
|
|
1
|
|
|
9
|
|
||||
Other comprehensive income/(loss), net of tax
|
16
|
|
|
17
|
|
|
21
|
|
|
31
|
|
||||
Ending balance
|
$
|
(2,687
|
)
|
|
$
|
(2,654
|
)
|
|
$
|
(2,687
|
)
|
|
$
|
(2,654
|
)
|
|
|
|
|
|
|
|
|
||||||||
Total AOCI ending balance at June 30
|
$
|
(7,436
|
)
|
|
$
|
(8,471
|
)
|
|
$
|
(7,436
|
)
|
|
$
|
(8,471
|
)
|
(a)
|
Reclassified to Other income/(loss), net.
|
(b)
|
Reclassified to Cost of sales. During the next twelve months we expect to reclassify existing net gains on cash flow hedges of $165 million. See Note 15 for additional information.
|
|
First Half
|
||||||
|
2019
|
|
2020
|
||||
Beginning balance
|
$
|
5,137
|
|
|
$
|
5,702
|
|
Payments made during the period
|
(2,192
|
)
|
|
(1,945
|
)
|
||
Changes in accrual related to warranties issued during the period
|
1,424
|
|
|
1,253
|
|
||
Changes in accrual related to pre-existing warranties
|
715
|
|
|
1,183
|
|
||
Foreign currency translation and other
|
23
|
|
|
(112
|
)
|
||
Ending balance
|
$
|
5,107
|
|
|
$
|
6,081
|
|
|
Automotive
|
|
Mobility
|
|
Ford Credit
|
|
Corporate
Other
|
|
Interest
on Debt
|
|
Special Items
|
|
Adjustments
|
|
Total
|
||||||||||||||||
Second Quarter 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues
|
$
|
35,758
|
|
|
$
|
6
|
|
|
$
|
3,089
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
38,853
|
|
Income/(loss) before income taxes
|
1,373
|
|
|
(264
|
)
|
|
831
|
|
|
(286
|
)
|
|
(244
|
)
|
|
(1,205
|
)
|
|
—
|
|
|
205
|
|
||||||||
Equity in net income/(loss) of affiliated companies
|
72
|
|
|
7
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
87
|
|
||||||||
Cash, cash equivalents, marketable securities, and restricted cash
|
23,106
|
|
|
142
|
|
|
14,989
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,237
|
|
||||||||
Total assets
|
102,641
|
|
|
1,153
|
|
|
163,141
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,751
|
)
|
(a)
|
262,184
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Second Quarter 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues
|
$
|
16,622
|
|
|
$
|
10
|
|
|
$
|
2,739
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19,371
|
|
Income/(loss) before income taxes
|
(2,089
|
)
|
|
(332
|
)
|
|
543
|
|
|
(68
|
)
|
|
(450
|
)
|
|
3,480
|
|
|
—
|
|
|
1,084
|
|
||||||||
Equity in net income/(loss) of affiliated companies
|
(9
|
)
|
|
(12
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(25
|
)
|
||||||||
Cash, cash equivalents, marketable securities, and restricted cash
|
39,220
|
|
|
63
|
|
|
18,039
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57,322
|
|
||||||||
Total assets
|
114,414
|
|
|
4,112
|
|
|
154,674
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,834
|
)
|
(a)
|
269,366
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Automotive
|
|
Mobility
|
|
Ford Credit
|
|
Corporate
Other
|
|
Interest
on Debt
|
|
Special Items
|
|
Adjustments
|
|
Total
|
||||||||||||||||
First Half 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues
|
$
|
72,997
|
|
|
$
|
12
|
|
|
$
|
6,186
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
79,195
|
|
Income/(loss) before income taxes
|
3,382
|
|
|
(552
|
)
|
|
1,632
|
|
|
(361
|
)
|
|
(489
|
)
|
|
(1,797
|
)
|
|
—
|
|
|
1,815
|
|
||||||||
Equity in net income/(loss) of affiliated companies
|
89
|
|
|
9
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
112
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
First Half 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues
|
$
|
47,962
|
|
|
$
|
23
|
|
|
$
|
5,706
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
53,691
|
|
Income/(loss) before income taxes
|
(2,266
|
)
|
|
(666
|
)
|
|
573
|
|
|
(219
|
)
|
|
(677
|
)
|
|
3,193
|
|
|
—
|
|
|
(62
|
)
|
||||||||
Equity in net income/(loss) of affiliated companies
|
(56
|
)
|
|
(12
|
)
|
|
8
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(66
|
)
|
(a)
|
Includes eliminations of intersegment transactions occurring in the ordinary course of business and deferred tax netting.
|
|
Second Quarter
|
|
First Half
|
||||||||||||
|
2019
|
|
2020
|
|
2019
|
|
2020
|
||||||||
Global Redesign
|
|
|
|
|
|
|
|
||||||||
Europe excl. Russia
|
$
|
(707
|
)
|
|
$
|
(94
|
)
|
|
$
|
(822
|
)
|
|
$
|
(199
|
)
|
India
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
(18
|
)
|
||||
South America
|
(235
|
)
|
|
(1
|
)
|
|
(436
|
)
|
|
(18
|
)
|
||||
Russia
|
(211
|
)
|
|
(3
|
)
|
|
(385
|
)
|
|
17
|
|
||||
China
|
(2
|
)
|
|
(6
|
)
|
|
(2
|
)
|
|
(6
|
)
|
||||
Separations and Other (not included above)
|
(56
|
)
|
|
—
|
|
|
(80
|
)
|
|
(1
|
)
|
||||
Subtotal Global Redesign
|
$
|
(1,211
|
)
|
|
$
|
(119
|
)
|
|
$
|
(1,725
|
)
|
|
$
|
(225
|
)
|
Other Items
|
|
|
|
|
|
|
|
||||||||
Gain on transaction with Argo AI and VW
|
$
|
—
|
|
|
$
|
3,454
|
|
|
$
|
—
|
|
|
$
|
3,454
|
|
Other incl. Focus Cancellation, Transit Connect Customs Ruling*,
UAW Retirement Buyout, and Chariot
|
(5
|
)
|
|
(3
|
)
|
|
(83
|
)
|
|
(206
|
)
|
||||
Subtotal Other Items
|
$
|
(5
|
)
|
|
$
|
3,451
|
|
|
$
|
(83
|
)
|
|
$
|
3,248
|
|
Pension and OPEB Gain/(Loss)
|
|
|
|
|
|
|
|
||||||||
Pension and OPEB remeasurement
|
$
|
10
|
|
|
$
|
148
|
|
|
$
|
10
|
|
|
$
|
170
|
|
Pension curtailment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Subtotal Pension and OPEB Gain/(Loss)
|
$
|
10
|
|
|
$
|
148
|
|
|
$
|
10
|
|
|
$
|
170
|
|
Total EBIT Special Items
|
$
|
(1,205
|
)
|
|
$
|
3,480
|
|
|
$
|
(1,797
|
)
|
|
$
|
3,193
|
|
|
|
|
|
|
|
|
|
||||||||
Cash effect of Global Redesign (incl. separations)
|
$
|
(222
|
)
|
|
$
|
(99
|
)
|
|
$
|
(358
|
)
|
|
$
|
(271
|
)
|
|
|
|
|
|
|
|
|
||||||||
Tax special items**
|
$
|
216
|
|
|
$
|
(955
|
)
|
|
$
|
223
|
|
|
$
|
(1,742
|
)
|
*
|
Transit Connect impact of $187 million was accrued in the third quarter of 2019.
|
**
|
Includes related tax effect on special items and tax special items.
|
|
Second Quarter
|
|
First Half
|
||||||||||||||||||||
|
2019
|
|
2020
|
|
H / (L)
|
|
2019
|
|
2020
|
|
H / (L)
|
||||||||||||
GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash Flows from Operating Activities ($B)
|
$
|
6.5
|
|
|
$
|
9.1
|
|
|
$
|
2.7
|
|
|
$
|
10.0
|
|
|
$
|
8.6
|
|
|
$
|
(1.4
|
)
|
Revenue ($M)
|
38,853
|
|
|
19,371
|
|
|
(50
|
)%
|
|
79,195
|
|
|
53,691
|
|
|
(32
|
)%
|
||||||
Net Income/(Loss) ($M)
|
148
|
|
|
1,117
|
|
|
969
|
|
|
1,294
|
|
|
(876
|
)
|
|
(2,170
|
)
|
||||||
Net Income/(Loss) Margin (%)
|
0.4
|
%
|
|
5.8
|
%
|
|
5.4 ppts
|
|
|
1.6
|
%
|
|
(1.6
|
)%
|
|
(3.3) ppts
|
|
||||||
EPS (Diluted)
|
$
|
0.04
|
|
|
$
|
0.28
|
|
|
$
|
0.24
|
|
|
$
|
0.32
|
|
|
$
|
(0.22
|
)
|
|
$
|
(0.54
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-GAAP Financial Measures *
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Company Adj. Free Cash Flow ($B)
|
$
|
0.2
|
|
|
$
|
(5.3
|
)
|
|
$
|
(5.5
|
)
|
|
$
|
2.1
|
|
|
$
|
(7.6
|
)
|
|
$
|
(9.6
|
)
|
Company Adj. EBIT ($M)
|
1,654
|
|
|
(1,946
|
)
|
|
(3,600
|
)
|
|
4,101
|
|
|
(2,578
|
)
|
|
(6,679
|
)
|
||||||
Company Adj. EBIT Margin (%)
|
4.3
|
%
|
|
(10.0
|
)%
|
|
(14.3) ppts
|
|
|
5.2
|
%
|
|
(4.8
|
)%
|
|
(10.0) ppts
|
|
||||||
Adjusted EPS (Diluted)
|
$
|
0.28
|
|
|
$
|
(0.35
|
)
|
|
$
|
(0.63
|
)
|
|
$
|
0.72
|
|
|
$
|
(0.59
|
)
|
|
$
|
(1.31
|
)
|
Adjusted ROIC (Trailing Four Quarters)
|
8.5
|
%
|
|
(3.1
|
)%
|
|
(11.6) ppts
|
|
|
|
|
|
|
|
*
|
See Non-GAAP Financial Measure Reconciliations section for reconciliation to GAAP.
|
|
|
Second Quarter
|
|
First Half
|
||||||||||||||||||||
|
|
2019
|
|
2020
|
|
H / (L)
|
|
2019
|
|
2020
|
|
H / (L)
|
||||||||||||
Automotive
|
|
$
|
1,373
|
|
|
$
|
(2,089
|
)
|
|
$
|
(3,462
|
)
|
|
$
|
3,382
|
|
|
$
|
(2,266
|
)
|
|
$
|
(5,648
|
)
|
Mobility
|
|
(264
|
)
|
|
(332
|
)
|
|
(68
|
)
|
|
(552
|
)
|
|
(666
|
)
|
|
(114
|
)
|
||||||
Ford Credit
|
|
831
|
|
|
543
|
|
|
(288
|
)
|
|
1,632
|
|
|
573
|
|
|
(1,059
|
)
|
||||||
Corporate Other
|
|
(286
|
)
|
|
(68
|
)
|
|
218
|
|
|
(361
|
)
|
|
(219
|
)
|
|
142
|
|
||||||
Company Adjusted EBIT *
|
|
1,654
|
|
|
(1,946
|
)
|
|
(3,600
|
)
|
|
4,101
|
|
|
(2,578
|
)
|
|
(6,679
|
)
|
||||||
Interest on Debt
|
|
(244
|
)
|
|
(450
|
)
|
|
206
|
|
|
(489
|
)
|
|
(677
|
)
|
|
188
|
|
||||||
Special Items
|
|
(1,205
|
)
|
|
3,480
|
|
|
(4,685
|
)
|
|
(1,797
|
)
|
|
3,193
|
|
|
(4,990
|
)
|
||||||
Taxes / Noncontrolling Interests
|
|
(57
|
)
|
|
33
|
|
|
(90
|
)
|
|
(521
|
)
|
|
(814
|
)
|
|
293
|
|
||||||
Net Income/(Loss)
|
|
$
|
148
|
|
|
$
|
1,117
|
|
|
$
|
969
|
|
|
$
|
1,294
|
|
|
$
|
(876
|
)
|
|
$
|
(2,170
|
)
|
*
|
See Non-GAAP Financial Measure Reconciliations section for reconciliation to GAAP.
|
|
|
Second Quarter
|
|
First Half
|
||||||||||||||||||||
|
|
2019
|
|
2020
|
|
H / (L)
|
|
2019
|
|
2020
|
|
H / (L)
|
||||||||||||
North America
|
|
$
|
1,696
|
|
|
$
|
(974
|
)
|
|
$
|
(2,670
|
)
|
|
$
|
3,900
|
|
|
$
|
(628
|
)
|
|
$
|
(4,528
|
)
|
South America
|
|
(205
|
)
|
|
(165
|
)
|
|
40
|
|
|
(362
|
)
|
|
(278
|
)
|
|
84
|
|
||||||
Europe
|
|
110
|
|
|
(664
|
)
|
|
(774
|
)
|
|
195
|
|
|
(807
|
)
|
|
(1,002
|
)
|
||||||
China (including Taiwan)
|
|
(155
|
)
|
|
(136
|
)
|
|
19
|
|
|
(283
|
)
|
|
(377
|
)
|
|
(94
|
)
|
||||||
International Markets Group
|
|
(73
|
)
|
|
(150
|
)
|
|
(77
|
)
|
|
(68
|
)
|
|
(176
|
)
|
|
(108
|
)
|
||||||
Automotive Segment
|
|
$
|
1,373
|
|
|
$
|
(2,089
|
)
|
|
$
|
(3,462
|
)
|
|
$
|
3,382
|
|
|
$
|
(2,266
|
)
|
|
$
|
(5,648
|
)
|
|
Second Quarter
|
|
First Half
|
||||||||||||||||||||
Key Metrics
|
2019
|
|
2020
|
|
H / (L)
|
|
2019
|
|
2020
|
|
H / (L)
|
||||||||||||
Market Share (%)
|
6.2
|
%
|
|
5.9
|
%
|
|
(0.3) ppts
|
|
|
6.1
|
%
|
|
5.9
|
%
|
|
(0.2) ppts
|
|
||||||
Wholesale Units (000)
|
1,364
|
|
|
645
|
|
|
(719
|
)
|
|
2,789
|
|
|
1,771
|
|
|
(1,018
|
)
|
||||||
Revenue ($M)
|
$
|
35,758
|
|
|
$
|
16,622
|
|
|
$
|
(19,136
|
)
|
|
$
|
72,997
|
|
|
$
|
47,962
|
|
|
$
|
(25,035
|
)
|
EBIT ($M)
|
1,373
|
|
|
(2,089
|
)
|
|
(3,462
|
)
|
|
3,382
|
|
|
(2,266
|
)
|
|
(5,648
|
)
|
||||||
EBIT Margin (%)
|
3.8
|
%
|
|
(12.6
|
)%
|
|
(16.4) ppts
|
|
|
4.6
|
%
|
|
(4.7
|
)%
|
|
(9.4) ppts
|
|
|
Second Quarter
|
|
First Half
|
||||||||||||||||||||
Key Metrics
|
2019
|
|
2020
|
|
H / (L)
|
|
2019
|
|
2020
|
|
H / (L)
|
||||||||||||
Market Share (%)
|
13.8
|
%
|
|
14.2
|
%
|
|
0.4 ppts
|
|
|
13.7
|
%
|
|
13.8
|
%
|
|
0.1 ppts
|
|
||||||
Wholesale Units (000)
|
693
|
|
|
272
|
|
|
(421
|
)
|
|
1,446
|
|
|
890
|
|
|
(556
|
)
|
||||||
Revenue ($M)
|
$
|
23,970
|
|
|
$
|
10,943
|
|
|
$
|
(13,027
|
)
|
|
$
|
49,359
|
|
|
$
|
32,752
|
|
|
$
|
(16,607
|
)
|
EBIT ($M)
|
1,696
|
|
|
(974
|
)
|
|
(2,670
|
)
|
|
3,900
|
|
|
(628
|
)
|
|
(4,528
|
)
|
||||||
EBIT Margin (%)
|
7.1
|
%
|
|
(8.9
|
)%
|
|
(16.0) ppts
|
|
|
7.9
|
%
|
|
(1.9
|
)%
|
|
(9.8) ppts
|
|
|
Second Quarter
|
|
First Half
|
||||||||||||||||||||
Key Metrics
|
2019
|
|
2020
|
|
H / (L)
|
|
2019
|
|
2020
|
|
H / (L)
|
||||||||||||
Market Share (%)
|
7.4
|
%
|
|
6.5
|
%
|
|
(0.9) ppts
|
|
|
7.5
|
%
|
|
6.8
|
%
|
|
(0.7) ppts
|
|
||||||
Wholesale Units (000)
|
75
|
|
|
14
|
|
|
(61
|
)
|
|
143
|
|
|
73
|
|
|
(70
|
)
|
||||||
Revenue ($M)
|
$
|
976
|
|
|
$
|
242
|
|
|
$
|
(734
|
)
|
|
$
|
1,901
|
|
|
$
|
970
|
|
|
$
|
(931
|
)
|
EBIT ($M)
|
(205
|
)
|
|
(165
|
)
|
|
40
|
|
|
(362
|
)
|
|
(278
|
)
|
|
84
|
|
||||||
EBIT Margin (%)
|
(21.0
|
)%
|
|
(68.3
|
)%
|
|
(47.3) ppts
|
|
|
(19.1
|
)%
|
|
(28.6
|
)%
|
|
(9.6) ppts
|
|
|
Second Quarter
|
|
First Half
|
||||||||||||||||||||
Key Metrics
|
2019
|
|
2020
|
|
H / (L)
|
|
2019
|
|
2020
|
|
H / (L)
|
||||||||||||
Market Share (%)
|
7.0
|
%
|
|
7.1
|
%
|
|
0.1 ppts
|
|
|
7.3
|
%
|
|
7.0
|
%
|
|
(0.3) ppts
|
|
||||||
Wholesale Units * (000)
|
368
|
|
|
154
|
|
|
(214
|
)
|
|
750
|
|
|
442
|
|
|
(308
|
)
|
||||||
Revenue ($M)
|
$
|
7,329
|
|
|
$
|
3,613
|
|
|
$
|
(3,716
|
)
|
|
$
|
14,777
|
|
|
$
|
9,860
|
|
|
$
|
(4,917
|
)
|
EBIT ($M)
|
110
|
|
|
(664
|
)
|
|
(774
|
)
|
|
195
|
|
|
(807
|
)
|
|
(1,002
|
)
|
||||||
EBIT Margin (%)
|
1.5
|
%
|
|
(18.4
|
)%
|
|
(19.9) ppts
|
|
|
1.3
|
%
|
|
(8.2
|
)%
|
|
(9.5) ppts
|
|
*
|
Includes Ford brand vehicles produced and sold by our unconsolidated affiliate in Turkey (about 7,000 units in Q2 2019 and 9,000 units in Q2 2020). Revenue does not include these sales.
|
|
Second Quarter
|
|
First Half
|
||||||||||||||||||||
Key Metrics
|
2019
|
|
2020
|
|
H / (L)
|
|
2019
|
|
2020
|
|
H / (L)
|
||||||||||||
Market Share (%)
|
2.3
|
%
|
|
2.5
|
%
|
|
0.2 ppts
|
|
|
2.2
|
%
|
|
2.4
|
%
|
|
0.2 ppts
|
|
||||||
Wholesale Units * (000)
|
126
|
|
|
169
|
|
|
43
|
|
|
241
|
|
|
251
|
|
|
10
|
|
||||||
Revenue ($M)
|
$
|
915
|
|
|
$
|
803
|
|
|
$
|
(112
|
)
|
|
$
|
1,774
|
|
|
$
|
1,396
|
|
|
$
|
(378
|
)
|
EBIT ($M)
|
(155
|
)
|
|
(136
|
)
|
|
19
|
|
|
(283
|
)
|
|
(377
|
)
|
|
(94
|
)
|
||||||
EBIT Margin (%)
|
(17.0
|
)%
|
|
(17.0
|
)%
|
|
— ppts
|
|
|
(16.0
|
)%
|
|
(27.0
|
)%
|
|
(11.0) ppts
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
China Unconsolidated Affiliates
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Wholesales (000)
|
108
|
|
|
156
|
|
|
48
|
|
|
207
|
|
|
228
|
|
|
21
|
|
||||||
Ford Equity Income/(Loss) ($M)
|
$
|
7
|
|
|
$
|
3
|
|
|
$
|
(4
|
)
|
|
$
|
(34
|
)
|
|
$
|
(88
|
)
|
|
$
|
(54
|
)
|
*
|
Includes Ford brand and JMC brand vehicles produced and sold in China by our unconsolidated affiliates. Revenue does not include these sales.
|
|
Second Quarter
|
|
First Half
|
||||||||||||||||||||
Key Metrics
|
2019
|
|
2020
|
|
H / (L)
|
|
2019
|
|
2020
|
|
H / (L)
|
||||||||||||
Market Share (%)
|
2.1
|
%
|
|
1.7
|
%
|
|
(0.4) ppts
|
|
|
2.0
|
%
|
|
1.6
|
%
|
|
(0.4) ppts
|
|
||||||
Wholesale Units * (000)
|
103
|
|
|
36
|
|
|
(66
|
)
|
|
210
|
|
|
114
|
|
|
(96
|
)
|
||||||
Revenue ($M)
|
$
|
2,568
|
|
|
$
|
1,021
|
|
|
$
|
(1,547
|
)
|
|
$
|
5,186
|
|
|
$
|
2,983
|
|
|
$
|
(2,203
|
)
|
EBIT ($M)
|
(73
|
)
|
|
(150
|
)
|
|
(77
|
)
|
|
(68
|
)
|
|
(176
|
)
|
|
(108
|
)
|
||||||
EBIT Margin (%)
|
(2.8
|
)%
|
|
(14.7
|
)%
|
|
(11.8) ppts
|
|
|
(1.3
|
)%
|
|
(5.9
|
)%
|
|
(4.6) ppts
|
|
*
|
Includes Ford brand vehicles produced and sold by our unconsolidated affiliate in Russia (about 11,000 units in Q2 2019 and 2,000 units in Q2 2020). Revenue after Q2 2019 does not include these sales.
|
•
|
Market Factors (exclude the impact of unconsolidated affiliate wholesale units):
|
◦
|
Volume and Mix – primarily measures EBIT variance from changes in wholesale unit 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 unit 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. These costs could be affected by volume for operating pattern actions such as overtime, line-speed, and shift schedules
|
▪
|
Engineering – consists primarily of costs for engineering personnel, prototype materials, testing, and outside engineering services
|
▪
|
Spending-Related – consists primarily of depreciation and amortization of our manufacturing and engineering assets, but also includes asset retirements and operating leases
|
▪
|
Advertising and Sales Promotions – includes costs for advertising, marketing programs, brand promotions, customer mailings and promotional events, and auto shows
|
▪
|
Administrative and Selling – includes primarily costs for salaried personnel and purchased services related to our staff activities and selling functions, as well as associated information technology costs
|
▪
|
Pension and OPEB – consists primarily of past service pension costs and other postretirement employee benefit costs
|
•
|
Exchange – primarily measures 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
|
•
|
Other – includes a variety of items, such as parts and services earnings, royalties, government incentives, and compensation-related changes
|
•
|
Wholesales and Revenue – wholesale unit volumes include all Ford and Lincoln badged units (whether produced by Ford or by an unconsolidated affiliate) that are sold to dealerships, units manufactured by Ford that are sold to other manufacturers, units distributed by Ford for other manufacturers, and local brand units produced by our China joint venture, Jiangling Motors Corporation, Ltd. (“JMC”), that are sold to dealerships. Vehicles sold to daily rental car companies that are subject to a guaranteed repurchase option (i.e., rental repurchase), as well as other sales of finished vehicles for which the recognition of revenue is deferred (e.g., consignments), also are included in wholesale unit volumes. Revenue from certain vehicles in wholesale unit volumes (specifically, Ford badged vehicles produced and distributed by our unconsolidated affiliates, as well as JMC brand vehicles) are not included in our revenue
|
•
|
Industry Volume and Market Share – based, in part, on estimated vehicle registrations; includes medium and heavy duty trucks
|
•
|
SAAR – seasonally adjusted annual rate
|
|
Second Quarter
|
|
First Half
|
||||||||||||||||||||
GAAP Financial Measures
|
2019
|
|
2020
|
|
H / (L)
|
|
2019
|
|
2020
|
|
H / (L)
|
||||||||||||
Net Receivables ($B)
|
$
|
143
|
|
|
$
|
130
|
|
|
(9
|
)%
|
|
$
|
143
|
|
|
$
|
130
|
|
|
(9
|
)%
|
||
Loss-to-Receivables * (bps)
|
39
|
|
|
15
|
|
|
(24
|
)
|
|
48
|
|
|
37
|
|
|
(11
|
)
|
||||||
Auction Values **
|
$
|
20,115
|
|
|
$
|
19,755
|
|
|
(2
|
)%
|
|
$
|
19,525
|
|
|
$
|
19,435
|
|
|
(1
|
)%
|
||
EBT ($M)
|
$
|
831
|
|
|
$
|
543
|
|
|
$
|
(288
|
)
|
|
$
|
1,632
|
|
|
$
|
573
|
|
|
$
|
(1,059
|
)
|
ROE (%)
|
16
|
%
|
|
12
|
%
|
|
(4) ppts
|
|
|
16
|
%
|
|
6
|
%
|
|
(10) ppts
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other Balance Sheet Metrics
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt ($B)
|
|
|
|
|
|
|
$
|
141
|
|
|
$
|
135
|
|
|
(4
|
)%
|
|||||||
Net Liquidity ($B)
|
|
|
|
|
|
|
34
|
|
|
32
|
|
|
(6
|
)%
|
|||||||||
Financial Statement Leverage (to 1)
|
|
|
|
|
|
|
9.5
|
|
|
9.8
|
|
|
0.3
|
|
*
|
U.S. retail financing only.
|
**
|
U.S. 36-month off-lease second quarter auction values at Q2 2020 mix and YTD amounts at 2020 YTD mix.
|
|
First Half
|
|||||||||
Non-GAAP Financial Measures
|
2019
|
|
2020
|
|
H / (L)
|
|||||
Managed Receivables * ($B)
|
$
|
152
|
|
|
$
|
139
|
|
|
(9
|
)%
|
Managed Leverage ** (to 1)
|
8.6
|
|
|
8.5
|
|
|
(0.1
|
)
|
*
|
See Non-GAAP Financial Measure Reconciliations section for reconciliation to GAAP.
|
**
|
See Liquidity and Capital Resources - Ford Credit Segment section for reconciliation to GAAP.
|
•
|
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 vehicles sold and leased, the extent to which Ford Credit purchases retail financing and operating 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 within each 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 forward looking macroeconomic conditions. For additional information, refer to the “Critical Accounting Estimates” section
|
•
|
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. Accumulated depreciation reflects early termination losses on operating leases due to customer default events for all periods presented. 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 2019 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 in the Funding Structure, Liquidity, and Leverage tables) – Cash, cash equivalents, and marketable securities, excluding amounts related to insurance activities
|
•
|
Debt (as shown in the Key Metrics and Leverage tables) – Debt on Ford Credit’s balance sheets. 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
|
•
|
Earnings Before Taxes (EBT) – Reflects Ford Credit’s income before income taxes
|
•
|
Return on Equity (ROE) (as shown in the Key Metrics table) – Reflects return on equity calculated by annualizing net income for the period and dividing by monthly average equity for the period
|
•
|
Securitization Cash (as shown in the Liquidity table) – Cash held for the benefit of the securitization investors (for example, a reserve fund)
|
•
|
Securitizations (as shown in the Public Term Funding Plan table) – Public securitization transactions, Rule 144A offerings sponsored by Ford Credit, and widely distributed offerings by Ford Credit Canada
|
•
|
Term Asset-Backed Securities (as shown in the Funding Structure table) – Obligations issued in securitization transactions that are payable only out of collections on the underlying securitized assets and related enhancements
|
•
|
Total Net Receivables (as shown in the Key Metrics and Ford Credit Net Receivables Reconciliation To Managed Receivables tables) – Includes finance receivables (retail financing 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 sheets 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
|
|
December 31,
2019 |
|
June 30,
2020 |
||||
Balance Sheets ($B)
|
|
|
|
||||
Company Cash *
|
$
|
22.3
|
|
|
$
|
39.3
|
|
Liquidity
|
35.4
|
|
|
39.8
|
|
||
Debt
|
(15.3
|
)
|
|
(40.0
|
)
|
||
Cash Net of Debt
|
7.0
|
|
|
(0.7
|
)
|
||
|
|
|
|
||||
Pension Funded Status ($B) **
|
|
|
|
||||
Funded Plans
|
$
|
(0.4
|
)
|
|
$
|
0.4
|
|
Unfunded Plans
|
(6.4
|
)
|
|
(6.2
|
)
|
||
Total Global Pension
|
$
|
(6.8
|
)
|
|
$
|
(5.8
|
)
|
|
|
|
|
||||
Total Funded Status OPEB
|
$
|
(6.1
|
)
|
|
$
|
(6.0
|
)
|
*
|
Includes a $290 million cash compensating balance at June 30, 2020 in an interest-bearing savings account related to a $498 million debt obligation.
|
**
|
Balances at June 30, 2020 reflect net underfunded status at December 31, 2019, updated for service and interest cost, expected return on assets, curtailment and settlement gains and associated interim remeasurement (where applicable), separation expense, actual benefit payments, and cash contributions. For plans without interim remeasurement, the discount rate and rate of expected return assumptions are unchanged from year-end 2019.
|
|
Second Quarter
|
|
First Half
|
||||||||||||
|
2019
|
|
2020
|
|
2019
|
|
2020
|
||||||||
Company Excluding Ford Credit
|
|
|
|
|
|
|
|
||||||||
Company Adjusted EBIT* excluding Ford Credit
|
$
|
0.8
|
|
|
$
|
(2.5
|
)
|
|
$
|
2.5
|
|
|
$
|
(3.2
|
)
|
|
|
|
|
|
|
|
|
||||||||
Capital spending
|
$
|
(1.9
|
)
|
|
$
|
(1.2
|
)
|
|
$
|
(3.5
|
)
|
|
$
|
(2.9
|
)
|
Depreciation and tooling amortization
|
1.4
|
|
|
1.3
|
|
|
2.7
|
|
|
2.7
|
|
||||
Net spending
|
$
|
(0.5
|
)
|
|
$
|
0.2
|
|
|
$
|
(0.8
|
)
|
|
$
|
(0.2
|
)
|
|
|
|
|
|
|
|
|
||||||||
Receivables
|
$
|
0.2
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
|
$
|
0.6
|
|
Inventory
|
(0.1
|
)
|
|
1.2
|
|
|
(1.2
|
)
|
|
0.1
|
|
||||
Trade Payables
|
(0.2
|
)
|
|
(2.2
|
)
|
|
1.5
|
|
|
(2.7
|
)
|
||||
Changes in working capital
|
$
|
(0.1
|
)
|
|
$
|
(0.9
|
)
|
|
$
|
0.3
|
|
|
$
|
(2.1
|
)
|
|
|
|
|
|
|
|
|
||||||||
Ford Credit distributions
|
$
|
0.7
|
|
|
$
|
0.3
|
|
|
$
|
1.3
|
|
|
$
|
0.6
|
|
All other and timing differences
|
(0.6
|
)
|
|
(2.4
|
)
|
|
(1.3
|
)
|
|
(2.6
|
)
|
||||
Company adjusted free cash flow *
|
$
|
0.2
|
|
|
$
|
(5.3
|
)
|
|
$
|
2.1
|
|
|
$
|
(7.6
|
)
|
|
|
|
|
|
|
|
|
||||||||
Global Redesign (including separations)
|
$
|
(0.2
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
(0.3
|
)
|
Changes in debt
|
0.3
|
|
|
9.6
|
|
|
0.3
|
|
|
24.7
|
|
||||
Funded pension contributions
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.4
|
)
|
|
(0.3
|
)
|
||||
Shareholder distributions
|
(0.6
|
)
|
|
—
|
|
|
(1.2
|
)
|
|
(0.6
|
)
|
||||
All other (including acquisitions and divestitures)
|
(0.5
|
)
|
|
0.9
|
|
|
(0.3
|
)
|
|
1.0
|
|
||||
Change in cash
|
$
|
(1.0
|
)
|
|
$
|
5.0
|
|
|
$
|
0.2
|
|
|
$
|
17.0
|
|
*
|
See Non-GAAP Financial Measure Reconciliations section for reconciliation to GAAP.
|
*
|
Note: Numbers may not sum due to rounding.
|
•
|
Maintain strong liquidity; continue to renew and expand committed ABS capacity
|
•
|
Prudently access public markets
|
•
|
Flexibility to increase ABS mix as needed; preserving assets and committed capacity
|
•
|
Target managed leverage of 8:1 to 9:1
|
•
|
Maintain self-liquidating balance sheet
|
|
June 30,
2019 |
|
December 31,
2019 |
|
June 30,
2020 |
||||||
Term Debt (incl. Bank Borrowings)
|
$
|
74
|
|
|
$
|
73
|
|
|
$
|
73
|
|
Term Asset-Backed Securities
|
57
|
|
|
57
|
|
|
55
|
|
|||
Commercial Paper
|
4
|
|
|
4
|
|
|
2
|
|
|||
Ford Interest Advantage / Deposits
|
6
|
|
|
7
|
|
|
6
|
|
|||
Other
|
10
|
|
|
9
|
|
|
6
|
|
|||
Equity
|
15
|
|
|
14
|
|
|
14
|
|
|||
Adjustments for Cash
|
(14
|
)
|
|
(12
|
)
|
|
(17
|
)
|
|||
Total Managed Receivables *
|
$
|
152
|
|
|
$
|
152
|
|
|
$
|
139
|
|
|
|
|
|
|
|
||||||
Securitized Funding as Percent of Managed Receivables
|
38
|
%
|
|
38
|
%
|
|
39
|
%
|
*
|
See Non-GAAP Financial Measure Reconciliations section for reconciliation to GAAP.
|
|
|
2018
Actual
|
|
2019
Actual
|
|
2020
Forecast
|
|
Through
July 29
|
||||||
Unsecured
|
|
$
|
13
|
|
|
$
|
17
|
|
|
$ 7 - 10
|
|
$
|
5
|
|
Securitizations *
|
|
14
|
|
|
14
|
|
|
11 - 14
|
|
7
|
|
|||
Total public
|
|
$
|
27
|
|
|
$
|
31
|
|
|
$ 18 - 24
|
|
$
|
12
|
|
*
|
See Definitions and Information Regarding Ford Credit Causal Factors section.
|
*
|
Note: Numbers may not sum due to rounding.
|
|
June 30,
2019 |
|
December 31,
2019 |
|
June 30,
2020 |
||||||
Liquidity Sources *
|
|
|
|
|
|
||||||
Cash
|
$
|
14.1
|
|
|
$
|
11.7
|
|
|
$
|
17.1
|
|
Committed asset-backed facilities
|
35.7
|
|
|
36.6
|
|
|
37.1
|
|
|||
Other unsecured credit facilities
|
2.9
|
|
|
3.0
|
|
|
2.5
|
|
|||
Ford corporate credit facility allocation
|
3.0
|
|
|
3.0
|
|
|
—
|
|
|||
Total liquidity sources
|
$
|
55.7
|
|
|
$
|
54.3
|
|
|
$
|
56.7
|
|
|
|
|
|
|
|
||||||
Utilization of Liquidity *
|
|
|
|
|
|
||||||
Securitization cash
|
$
|
(4.0
|
)
|
|
$
|
(3.5
|
)
|
|
$
|
(3.6
|
)
|
Committed asset-backed facilities
|
(17.5
|
)
|
|
(17.3
|
)
|
|
(17.7
|
)
|
|||
Other unsecured credit facilities
|
(0.9
|
)
|
|
(0.8
|
)
|
|
(0.6
|
)
|
|||
Ford corporate credit facility allocation
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total utilization of liquidity
|
$
|
(22.4
|
)
|
|
$
|
(21.6
|
)
|
|
$
|
(21.9
|
)
|
|
|
|
|
|
|
||||||
Gross liquidity
|
$
|
33.3
|
|
|
$
|
32.7
|
|
|
$
|
34.8
|
|
Adjustments **
|
0.3
|
|
|
0.4
|
|
|
(2.4
|
)
|
|||
Net liquidity available for use
|
$
|
33.6
|
|
|
$
|
33.1
|
|
|
$
|
32.4
|
|
*
|
See Definitions and Information Regarding Ford Credit Causal Factors section.
|
**
|
Includes asset-backed capacity in excess of eligible receivables and cash related to the Ford Credit Revolving Extended Variable-utilization program (“FordREV”), which can be accessed through future sales of receivables.
|
|
|
July - December
2020
|
|
2021
|
|
2022
|
|
2023 and Beyond
|
||||||||
Balance Sheet Liquidity Profile
|
|
|
|
|
|
|
|
|
||||||||
Assets (a)
|
|
$
|
64
|
|
|
$
|
95
|
|
|
$
|
121
|
|
|
$
|
154
|
|
Total debt (b)
|
|
35
|
|
|
75
|
|
|
97
|
|
|
134
|
|
||||
Memo: Unsecured Long-Term Debt Maturities
|
|
8
|
|
|
17
|
|
|
13
|
|
|
30
|
|
(a)
|
Includes gross finance receivables less the allowance for credit losses (including certain finance receivables that are reclassified in consolidation to Trade and other receivables), investment in operating leases net of accumulated depreciation, cash and cash equivalents, and marketable securities (excluding amounts related to insurance activities). Amounts shown include the impact of expected prepayments.
|
(b)
|
Excludes unamortized debt (discount) / premium, unamortized issuance costs, and fair value adjustments.
|
•
|
Prolonged disruption of the debt and securitization markets;
|
•
|
Global capital market volatility;
|
•
|
Market capacity for Ford- and Ford Credit-sponsored investments;
|
•
|
General demand for the type of securities Ford Credit offers;
|
•
|
Ford Credit’s ability to continue funding through asset-backed financing structures;
|
•
|
Performance of the underlying assets within Ford Credit’s asset-backed financing structures;
|
•
|
Inability to obtain hedging instruments;
|
•
|
Accounting and regulatory changes (including LIBOR); and
|
•
|
Ford Credit’s ability to maintain credit facilities and committed asset-backed facilities.
|
|
|
June 30,
2019 |
|
December 31,
2019 |
|
June 30,
2020 |
||||||
Leverage Calculation
|
|
|
|
|
|
|
||||||
Debt
|
|
$
|
141.5
|
|
|
$
|
140.0
|
|
|
$
|
135.3
|
|
Adjustments for cash
|
|
(14.1
|
)
|
|
(11.7
|
)
|
|
(17.1
|
)
|
|||
Adjustments for derivative accounting *
|
|
(0.6
|
)
|
|
(0.5
|
)
|
|
(1.8
|
)
|
|||
Total adjusted debt
|
|
$
|
126.8
|
|
|
$
|
127.8
|
|
|
$
|
116.4
|
|
|
|
|
|
|
|
|
||||||
Equity **
|
|
$
|
14.9
|
|
|
$
|
14.3
|
|
|
$
|
13.8
|
|
Adjustments for derivative accounting *
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|||
Total adjusted equity
|
|
$
|
14.8
|
|
|
$
|
14.3
|
|
|
$
|
13.8
|
|
|
|
|
|
|
|
|
||||||
Financial statement leverage (to 1) (GAAP)
|
|
9.5
|
|
|
9.8
|
|
|
9.8
|
|
|||
Managed leverage (to 1) (Non-GAAP)
|
|
8.6
|
|
|
8.9
|
|
|
8.5
|
|
*
|
Related primarily to market valuation adjustments to derivatives due to movements in interest rates. Adjustments to debt are related to designated fair value hedges and adjustments to equity are related to retained earnings.
|
**
|
Total shareholder’s interest reported on Ford Credit’s balance sheets.
|
|
Four Quarters Ending
|
||||||
|
June 30,
2019 |
|
June 30,
2020 |
||||
Adjusted Net Operating Profit After Cash Tax
|
|
|
|
||||
Net income/(loss) attributable to Ford
|
$
|
2.2
|
|
|
$
|
(2.1
|
)
|
Add: Noncontrolling interest
|
—
|
|
|
—
|
|
||
Less: Income tax
|
(0.7
|
)
|
|
0.4
|
|
||
Add: Cash tax
|
(0.8
|
)
|
|
(0.4
|
)
|
||
Less: Interest on debt
|
(1.1
|
)
|
|
(1.2
|
)
|
||
Less: Total pension/OPEB income/(cost)
|
(0.8
|
)
|
|
(2.0
|
)
|
||
Add: Pension/OPEB service costs
|
(1.1
|
)
|
|
(1.1
|
)
|
||
Net operating profit/(loss) after cash tax
|
$
|
3.0
|
|
|
$
|
(0.7
|
)
|
Less: Special items (excl. pension/OPEB) pre-tax
|
(2.3
|
)
|
|
1.4
|
|
||
Adjusted net operating profit after cash tax
|
$
|
5.3
|
|
|
$
|
(2.1
|
)
|
|
|
|
|
||||
Invested Capital
|
|
|
|
||||
Equity
|
$
|
36.1
|
|
|
$
|
30.9
|
|
Redeemable noncontrolling interest
|
—
|
|
|
—
|
|
||
Debt (excl. Ford Credit)
|
14.6
|
|
|
40.0
|
|
||
Net pension and OPEB liability
|
11.2
|
|
|
11.8
|
|
||
Invested capital (end of period)
|
$
|
62.0
|
|
|
$
|
82.6
|
|
Average invested capital
|
$
|
62.7
|
|
|
$
|
67.9
|
|
|
|
|
|
||||
ROIC *
|
4.8
|
%
|
|
(1.1
|
)%
|
||
Adjusted ROIC (Non-GAAP) **
|
8.5
|
%
|
|
(3.1
|
)%
|
*
|
Calculated as the sum of net operating profit after cash tax from the last four quarters, divided by the average invested capital over the last four quarters.
|
**
|
Calculated as the sum of adjusted net operating profit after cash tax from the last four quarters, divided by the average invested capital over the last four quarters.
|
*
|
Note: Numbers may not sum due to rounding.
|
•
|
On May 7, 2020, Fitch downgraded the credit ratings for Ford and Ford Credit (to BB+ from BBB-) and maintained a negative outlook.
|
•
|
On May 21, 2020, DBRS downgraded the credit ratings for Ford and Ford Credit (to BB (high) from BBB), and maintained a negative outlook.
|
•
|
On May 27, 2020, Moody’s concluded its review of Ford and Ford Credit for possible downgrade, confirmed their ratings at Ba2, and revised the outlook to negative from under review for downgrade.
|
|
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
|
BB (high)
|
|
BB (high)
|
|
Negative
|
|
BB (high)
|
|
R-4
|
|
Negative
|
|
BBB (low)
|
Fitch
|
BB+
|
|
BB+
|
|
Negative
|
|
BB+
|
|
B
|
|
Negative
|
|
BBB-
|
Moody’s
|
N/A
|
|
Ba2
|
|
Negative
|
|
Ba2
|
|
NP
|
|
Negative
|
|
Baa3
|
S&P
|
BB+
|
|
BB+
|
|
CreditWatch with negative implications
|
|
BB+
|
|
B
|
|
CreditWatch with negative implications
|
|
BBB-
|
|
|
2020 Guidance
|
Total Company
|
|
|
Adjusted EBIT *
|
|
|
Q3
|
|
$0.5 - $1.5 billion
|
Q4
|
|
Loss
|
Full Year
|
|
Loss
|
Capital spending
|
|
$6.1 - $6.6 billion
|
Pension contributions
|
|
$0.5 - $0.7 billion
|
Global Redesign EBIT charges
|
|
$0.7 - $1.2 billion
|
Global Redesign cash effects
|
|
$0.7 - $1.2 billion
|
|
|
|
Ford Credit
|
|
|
Auction values
|
|
Down about 5%**
|
Securitized funding as percent of managed receivables
|
|
Increase modestly by year-end
|
Total public funding issuances
|
|
$18 - $24 billion
|
*
|
When we provide guidance for Adjusted EBIT we do not provide guidance for net income/(loss), the most comparable GAAP measure, because, as described in more detail below in “Non-GAAP Measures That Supplement GAAP Measures,” it includes items that are difficult to predict with reasonable certainty prior to year-end, including pension and OPEB remeasurement gains and losses.
|
**
|
On average compared with full year 2019 at constant mix.
|
•
|
Ford and Ford Credit’s financial condition and results of operations have been and may continue to be adversely affected by public health issues, including epidemics or pandemics such as COVID-19;
|
•
|
Ford’s long-term competitiveness depends on the successful execution of global redesign and fitness actions;
|
•
|
Ford’s vehicles could be affected by defects that result in delays in new model launches, recall campaigns, or increased warranty costs;
|
•
|
Ford may not realize the anticipated benefits of existing or pending strategic alliances, joint ventures, acquisitions, divestitures, or new business strategies;
|
•
|
Operational systems, security systems, and vehicles could be affected by cyber incidents;
|
•
|
Ford’s production, as well as Ford’s suppliers’ production, could be disrupted by labor issues, 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;
|
•
|
Ford’s ability to attract and retain talented, diverse, and highly skilled employees is critical to its success and competitiveness;
|
•
|
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;
|
•
|
With a global footprint, Ford’s results could be adversely affected by economic, geopolitical, protectionist trade policies, or other events, including tariffs and Brexit;
|
•
|
Industry sales volume in any of our key markets can be volatile and could decline if there is a financial crisis, recession, or significant geopolitical event;
|
•
|
Ford may face increased price competition or a reduction in demand for its products resulting from industry excess capacity, currency fluctuations, competitive actions, or other factors;
|
•
|
Fluctuations in commodity prices, foreign currency exchange rates, interest rates, and market value of our investments can have a significant effect on results;
|
•
|
Ford and 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’s receipt of government incentives could be subject to reduction, termination, or clawback;
|
•
|
Ford Credit could experience higher-than-expected credit losses, lower-than-anticipated residual values, or higher-than-expected return volumes for leased vehicles;
|
•
|
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;
|
•
|
Pension and other postretirement liabilities could adversely affect Ford’s liquidity and financial condition;
|
•
|
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 may need to substantially modify its product plans to comply with safety, emissions, fuel economy, autonomous vehicle, and other regulations that may change in the future;
|
•
|
Ford and Ford Credit could be affected by the continued development of more stringent privacy, data use, and data protection laws and regulations as well as consumer expectations for the safeguarding of personal information; and
|
•
|
Ford Credit could be subject to new or increased credit regulations, consumer protection regulations, or other regulations.
|
•
|
Company Adjusted EBIT (Most Comparable GAAP Measure: Net Income Attributable to Ford) – Earnings before interest and taxes (EBIT) 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 aligned with industry reporting. Pre-tax special items consist of (i) pension and OPEB remeasurement gains and losses, (ii) significant personnel expenses, dealer-related costs, and facility-related charges 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 aligned with industry reporting.
|
•
|
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), tax special items and restructuring impacts in noncontrolling interests. 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 Free 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, global redesign (including separations), and other items that are considered operating cash flows 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 free 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 ROIC – Calculated as the sum of adjusted net operating profit after cash tax from the last four quarters, divided by the average invested capital over the last four quarters. 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.
|
•
|
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.
|
|
|
Second Quarter
|
|
First Half
|
||||||||||||
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|||||||||
Net income/(loss) attributable to Ford (GAAP)
|
|
$
|
148
|
|
|
$
|
1,117
|
|
|
$
|
1,294
|
|
|
$
|
(876
|
)
|
Income/(Loss) attributable to noncontrolling interests
|
|
2
|
|
|
1
|
|
|
39
|
|
|
1
|
|
||||
Net income/(loss)
|
|
$
|
150
|
|
|
$
|
1,118
|
|
|
$
|
1,333
|
|
|
$
|
(875
|
)
|
Less: (Provision for)/Benefit from income taxes
|
|
(55
|
)
|
|
34
|
|
|
(482
|
)
|
|
(813
|
)
|
||||
Income/(Loss) before income taxes
|
|
$
|
205
|
|
|
$
|
1,084
|
|
|
$
|
1,815
|
|
|
$
|
(62
|
)
|
Less: Special items pre-tax
|
|
(1,205
|
)
|
|
3,480
|
|
|
(1,797
|
)
|
|
3,193
|
|
||||
Income/(Loss) before special items pre-tax
|
|
$
|
1,410
|
|
|
$
|
(2,396
|
)
|
|
$
|
3,612
|
|
|
$
|
(3,255
|
)
|
Less: Interest on debt
|
|
(244
|
)
|
|
(450
|
)
|
|
(489
|
)
|
|
(677
|
)
|
||||
Adjusted EBIT (Non-GAAP)
|
|
$
|
1,654
|
|
|
$
|
(1,946
|
)
|
|
$
|
4,101
|
|
|
$
|
(2,578
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Memo:
|
|
|
|
|
|
|
|
|
||||||||
Revenue ($B)
|
|
$
|
38.9
|
|
|
$
|
19.4
|
|
|
$
|
79.2
|
|
|
$
|
53.7
|
|
Net income/(loss) margin (%)
|
|
0.4
|
%
|
|
5.8
|
%
|
|
1.6
|
%
|
|
(1.6
|
)%
|
||||
Adjusted EBIT margin (%)
|
|
4.3
|
%
|
|
(10.0
|
)%
|
|
5.2
|
%
|
|
(4.8
|
)%
|
|
|
Second Quarter
|
|
First Half
|
||||||||||||
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|||||||||
Diluted After-Tax Results ($M)
|
|
|
|
|
|
|
|
|
||||||||
Diluted after-tax results (GAAP)
|
|
$
|
148
|
|
|
$
|
1,117
|
|
|
$
|
1,294
|
|
|
$
|
(876
|
)
|
Less: Impact of pre-tax and tax special items
|
|
(989
|
)
|
|
2,525
|
|
|
(1,574
|
)
|
|
1,451
|
|
||||
Less: Noncontrolling interests impact of Russia restructuring
|
|
—
|
|
|
—
|
|
|
(35
|
)
|
|
—
|
|
||||
Adjusted net income/(loss) – diluted (Non-GAAP)
|
|
$
|
1,137
|
|
|
$
|
(1,408
|
)
|
|
$
|
2,903
|
|
|
$
|
(2,327
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Basic and Diluted Shares (M)
|
|
|
|
|
|
|
|
|
||||||||
Basic shares (average shares outstanding)
|
|
3,984
|
|
|
3,975
|
|
|
3,979
|
|
|
3,969
|
|
||||
Net dilutive options, unvested restricted stock units and restricted stock
|
|
29
|
|
|
17
|
|
|
26
|
|
|
—
|
|
||||
Diluted shares
|
|
4,013
|
|
|
3,992
|
|
|
4,005
|
|
|
3,969
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share – diluted (GAAP)
|
|
$
|
0.04
|
|
|
$
|
0.28
|
|
|
$
|
0.32
|
|
|
$
|
(0.22
|
)
|
Less: Net impact of adjustments
|
|
(0.24
|
)
|
|
0.63
|
|
|
(0.40
|
)
|
|
0.37
|
|
||||
Adjusted earnings per share – diluted (Non-GAAP)
|
|
$
|
0.28
|
|
|
$
|
(0.35
|
)
|
|
$
|
0.72
|
|
|
$
|
(0.59
|
)
|
|
|
Second Quarter
|
|
First Half
|
|
|
||||||||||||||
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
Memo:
FY 2019
|
||||||||||
Pre-Tax Results ($M)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income/(Loss) before income taxes (GAAP)
|
|
$
|
205
|
|
|
$
|
1,084
|
|
|
$
|
1,815
|
|
|
$
|
(62
|
)
|
|
$
|
(640
|
)
|
Less: Impact of special items
|
|
(1,205
|
)
|
|
3,480
|
|
|
(1,797
|
)
|
|
3,193
|
|
|
(5,999
|
)
|
|||||
Adjusted earnings before taxes (Non-GAAP)
|
|
$
|
1,410
|
|
|
$
|
(2,396
|
)
|
|
$
|
3,612
|
|
|
$
|
(3,255
|
)
|
|
$
|
5,359
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxes ($M)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Provision for)/Benefit from income taxes (GAAP)
|
|
$
|
(55
|
)
|
|
$
|
34
|
|
|
$
|
(482
|
)
|
|
$
|
(813
|
)
|
|
$
|
724
|
|
Less: Impact of special items
|
|
216
|
|
|
(955
|
)
|
|
223
|
|
|
(1,742
|
)
|
|
1,323
|
|
|||||
Adjusted (provision for) / benefit from income taxes (Non-GAAP)
|
|
$
|
(271
|
)
|
|
$
|
989
|
|
|
$
|
(705
|
)
|
|
$
|
929
|
|
|
$
|
(599
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tax Rate (%)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Effective tax rate (GAAP)
|
|
26.6
|
%
|
|
(3.1
|
)%
|
|
26.5
|
%
|
|
(1,311
|
)%
|
|
113.1
|
%
|
|||||
Adjusted effective tax rate (Non-GAAP)
|
|
19.2
|
%
|
|
41.3
|
%
|
|
19.5
|
%
|
|
28.5
|
%
|
|
11.2
|
%
|
|
|
Second Quarter
|
|
First Half
|
||||||||||||
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|||||||||
Net cash provided by / (used in) operating activities (GAAP)
|
|
$
|
6,463
|
|
|
$
|
9,115
|
|
|
$
|
10,007
|
|
|
$
|
8,642
|
|
|
|
|
|
|
|
|
|
|
||||||||
Less: Items not included in Company Adjusted Free Cash Flows
|
|
|
|
|
|
|
|
|
||||||||
Ford Credit operating cash flows
|
|
$
|
5,267
|
|
|
$
|
13,413
|
|
|
$
|
6,385
|
|
|
$
|
13,546
|
|
Funded pension contributions
|
|
(106
|
)
|
|
(107
|
)
|
|
(400
|
)
|
|
(282
|
)
|
||||
Global Redesign (including separations)
|
|
(222
|
)
|
|
(99
|
)
|
|
(358
|
)
|
|
(271
|
)
|
||||
Ford Credit tax payments / (refunds) under tax sharing agreement
|
|
—
|
|
|
569
|
|
|
98
|
|
|
1,044
|
|
||||
Other, net
|
|
175
|
|
|
(178
|
)
|
|
55
|
|
|
(193
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Add: Items included in Company Adjusted Free Cash Flows
|
|
|
|
|
|
|
|
|
||||||||
Automotive and Mobility capital spending
|
|
$
|
(1,911
|
)
|
|
$
|
(1,165
|
)
|
|
$
|
(3,531
|
)
|
|
$
|
(2,935
|
)
|
Ford Credit distributions
|
|
650
|
|
|
275
|
|
|
1,325
|
|
|
550
|
|
||||
Settlement of derivatives
|
|
86
|
|
|
64
|
|
|
60
|
|
|
36
|
|
||||
Company adjusted free cash flow (Non-GAAP)
|
|
$
|
174
|
|
|
$
|
(5,309
|
)
|
|
$
|
2,081
|
|
|
$
|
(7,551
|
)
|
|
|
June 30,
2019 |
|
December 31,
2019 |
|
June 30,
2020 |
||||||
Ford Credit finance receivables, net (GAAP) *
|
|
$
|
107.6
|
|
|
$
|
107.4
|
|
|
$
|
96.7
|
|
Net investment in operating leases (GAAP) *
|
|
27.7
|
|
|
27.6
|
|
|
26.4
|
|
|||
Consolidating adjustments **
|
|
8.1
|
|
|
7.0
|
|
|
7.2
|
|
|||
Total net receivables
|
|
$
|
143.4
|
|
|
$
|
142.0
|
|
|
$
|
130.3
|
|
|
|
|
|
|
|
|
||||||
Held-for-sale receivables (GAAP)
|
|
$
|
—
|
|
|
$
|
1.5
|
|
|
$
|
—
|
|
Ford Credit unearned interest supplements and residual support
|
|
6.9
|
|
|
6.7
|
|
|
6.5
|
|
|||
Allowance for credit losses
|
|
0.5
|
|
|
0.5
|
|
|
1.3
|
|
|||
Other, primarily accumulated supplemental depreciation
|
|
1.1
|
|
|
1.0
|
|
|
1.3
|
|
|||
Total managed receivables (Non-GAAP)
|
|
$
|
151.9
|
|
|
$
|
151.7
|
|
|
$
|
139.4
|
|
*
|
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 sheets 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.
|
**
|
Primarily includes Automotive segment receivables purchased by Ford Credit which are classified to Trade and other receivables on our consolidated balance sheets. Also includes eliminations of intersegment transactions.
|
*
|
Note: Numbers may not sum due to rounding.
|
|
|
For the period ended June 30, 2020
|
||||||||||||||
|
|
First Half
|
||||||||||||||
Cash flows from operating activities
|
|
Company excluding Ford Credit
|
|
Ford Credit
|
|
Eliminations
|
|
Consolidated
|
||||||||
Net income/(loss)
|
|
$
|
(1,303
|
)
|
|
$
|
428
|
|
|
$
|
—
|
|
|
$
|
(875
|
)
|
Depreciation and tooling amortization
|
|
2,743
|
|
|
2,059
|
|
|
—
|
|
|
4,802
|
|
||||
Other amortization
|
|
28
|
|
|
(618
|
)
|
|
—
|
|
|
(590
|
)
|
||||
Held-for-sale impairment charges
|
|
18
|
|
|
—
|
|
|
—
|
|
|
18
|
|
||||
Provision for credit and insurance losses
|
|
34
|
|
|
745
|
|
|
—
|
|
|
779
|
|
||||
Pension and OPEB expense/(income)
|
|
(454
|
)
|
|
—
|
|
|
—
|
|
|
(454
|
)
|
||||
Equity investment dividends received in excess of (earnings)/losses
|
177
|
|
|
(8
|
)
|
|
—
|
|
|
169
|
|
|||||
Foreign currency adjustments
|
|
160
|
|
|
(47
|
)
|
|
—
|
|
|
113
|
|
||||
Net (gain)/loss on changes in investments in affiliates
|
|
(3,472
|
)
|
|
(8
|
)
|
|
—
|
|
|
(3,480
|
)
|
||||
Stock compensation
|
|
105
|
|
|
2
|
|
|
—
|
|
|
107
|
|
||||
Provision for deferred income taxes
|
|
1,347
|
|
|
(692
|
)
|
|
—
|
|
|
655
|
|
||||
Decrease/(Increase) in finance receivables (wholesale and other)
|
—
|
|
|
9,772
|
|
|
—
|
|
|
9,772
|
|
|||||
Decrease/(Increase) in intersegment receivables/payables
|
(35
|
)
|
|
35
|
|
|
—
|
|
|
—
|
|
|||||
Decrease/(Increase) in accounts receivable and other assets
|
242
|
|
|
(22
|
)
|
|
—
|
|
|
220
|
|
|||||
Decrease/(Increase) in inventory
|
|
66
|
|
|
—
|
|
|
—
|
|
|
66
|
|
||||
Increase/(Decrease) in accounts payable and accrued and other liabilities
|
(2,365
|
)
|
|
(120
|
)
|
|
—
|
|
|
(2,485
|
)
|
|||||
Other
|
|
(130
|
)
|
|
(45
|
)
|
|
—
|
|
|
(175
|
)
|
||||
Interest supplements and residual value support to Ford Credit
|
(2,065
|
)
|
|
2,065
|
|
|
—
|
|
|
—
|
|
|||||
Net cash provided by/(used in) operating activities
|
|
$
|
(4,904
|
)
|
|
$
|
13,546
|
|
|
$
|
—
|
|
|
$
|
8,642
|
|
Cash flows from investing activities
|
|
Company excluding Ford Credit
|
|
Ford Credit
|
|
Eliminations
|
|
Consolidated
|
||||||||
Capital spending
|
|
$
|
(2,935
|
)
|
|
$
|
(20
|
)
|
|
$
|
—
|
|
|
$
|
(2,955
|
)
|
Acquisitions of finance receivables and operating leases
|
|
—
|
|
|
(27,113
|
)
|
|
—
|
|
|
(27,113
|
)
|
||||
Collections of finance receivables and operating leases
|
|
—
|
|
|
22,923
|
|
|
—
|
|
|
22,923
|
|
||||
Proceeds from sale of business
|
|
—
|
|
|
1,340
|
|
|
|
|
1,340
|
|
|||||
Purchases of marketable and other investments
|
|
(15,485
|
)
|
|
(4,139
|
)
|
|
—
|
|
|
(19,624
|
)
|
||||
Sales and maturities of marketable securities and other investments
|
8,379
|
|
|
2,425
|
|
|
—
|
|
|
10,804
|
|
|||||
Settlements of derivatives
|
|
36
|
|
|
37
|
|
|
—
|
|
|
73
|
|
||||
Other
|
|
338
|
|
|
(1
|
)
|
|
—
|
|
|
337
|
|
||||
Investing activity (to)/from other segments
|
|
550
|
|
|
(11
|
)
|
|
(539
|
)
|
|
—
|
|
||||
Net cash provided by/(used in) investing activities
|
|
$
|
(9,117
|
)
|
|
$
|
(4,559
|
)
|
|
$
|
(539
|
)
|
|
$
|
(14,215
|
)
|
Cash flows from financing activities
|
|
Company excluding Ford Credit
|
|
Ford Credit
|
|
Eliminations
|
|
Consolidated
|
||||||||
Cash payments for dividends and dividend equivalents
|
|
$
|
(596
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(596
|
)
|
Purchases of common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net changes in short-term debt
|
|
879
|
|
|
(1,668
|
)
|
|
—
|
|
|
(789
|
)
|
||||
Proceeds from issuance of long-term debt
|
|
24,157
|
|
|
20,146
|
|
|
—
|
|
|
44,303
|
|
||||
Principal payments on long-term debt
|
|
(380
|
)
|
|
(22,965
|
)
|
|
—
|
|
|
(23,345
|
)
|
||||
Other
|
|
(141
|
)
|
|
(41
|
)
|
|
—
|
|
|
(182
|
)
|
||||
Financing activity to/(from) other segments
|
|
11
|
|
|
(550
|
)
|
|
539
|
|
|
—
|
|
||||
Net cash provided by/(used in) financing activities
|
|
$
|
23,930
|
|
|
$
|
(5,078
|
)
|
|
$
|
539
|
|
|
$
|
19,391
|
|
|
|
|
|
|
|
|
|
|
||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
|
$
|
(204
|
)
|
|
$
|
—
|
|
|
$
|
(174
|
)
|
|
$
|
(378
|
)
|
|
|
For the period ended June 30, 2020
|
||||||||||||||||||||||
|
|
Second Quarter
|
||||||||||||||||||||||
|
|
Company excluding Ford Credit
|
|
|
|
|
||||||||||||||||||
|
|
Automotive
|
|
Mobility
|
|
Other (a)
|
|
Subtotal
|
|
Ford Credit
|
|
Consolidated
|
||||||||||||
Revenues
|
|
$
|
16,622
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
16,632
|
|
|
$
|
2,739
|
|
|
$
|
19,371
|
|
Total costs and expenses
|
19,303
|
|
|
361
|
|
|
233
|
|
|
19,897
|
|
|
2,233
|
|
|
22,130
|
|
|||||||
Operating income/(loss)
|
(2,681
|
)
|
|
(351
|
)
|
|
(233
|
)
|
|
(3,265
|
)
|
|
506
|
|
|
(2,759
|
)
|
|||||||
Interest expense on Automotive debt
|
—
|
|
|
—
|
|
|
439
|
|
|
439
|
|
|
—
|
|
|
439
|
|
|||||||
Interest expense on Other debt
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|||||||
Other income/(loss), net
|
601
|
|
|
31
|
|
|
3,651
|
|
|
4,283
|
|
|
35
|
|
|
4,318
|
|
|||||||
Equity in net income/(loss) of affiliated companies
|
(9
|
)
|
|
(12
|
)
|
|
(6
|
)
|
|
(27
|
)
|
|
2
|
|
|
(25
|
)
|
|||||||
Income/(Loss) before income taxes
|
(2,089
|
)
|
|
(332
|
)
|
|
2,962
|
|
|
541
|
|
|
543
|
|
|
1,084
|
|
|||||||
Provision for/(Benefit from) income taxes
|
(922
|
)
|
|
(79
|
)
|
|
831
|
|
|
(170
|
)
|
|
136
|
|
|
(34
|
)
|
|||||||
Net income/(loss)
|
(1,167
|
)
|
|
(253
|
)
|
|
2,131
|
|
|
711
|
|
|
407
|
|
|
1,118
|
|
|||||||
Less: Income/(Loss) attributable to noncontrolling interests
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||||
Net income/(loss) attributable to Ford Motor Company
|
$
|
(1,168
|
)
|
|
$
|
(253
|
)
|
|
$
|
2,131
|
|
|
$
|
710
|
|
|
$
|
407
|
|
|
$
|
1,117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
For the period ended June 30, 2020
|
||||||||||||||||||||||
|
|
First Half
|
||||||||||||||||||||||
|
|
Company excluding Ford Credit
|
|
|
|
|
||||||||||||||||||
|
|
Automotive
|
|
Mobility
|
|
Other (a)
|
|
Subtotal
|
|
Ford Credit
|
|
Consolidated
|
||||||||||||
Revenues
|
|
$
|
47,962
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
47,985
|
|
|
$
|
5,706
|
|
|
$
|
53,691
|
|
Total costs and expenses
|
51,409
|
|
|
742
|
|
|
700
|
|
|
52,851
|
|
|
5,157
|
|
|
58,008
|
|
|||||||
Operating income/(loss)
|
(3,447
|
)
|
|
(719
|
)
|
|
(700
|
)
|
|
(4,866
|
)
|
|
549
|
|
|
(4,317
|
)
|
|||||||
Interest expense on Automotive debt
|
—
|
|
|
—
|
|
|
653
|
|
|
653
|
|
|
—
|
|
|
653
|
|
|||||||
Interest expense on Other debt
|
—
|
|
|
—
|
|
|
24
|
|
|
24
|
|
|
—
|
|
|
24
|
|
|||||||
Other income/(loss), net
|
1,237
|
|
|
65
|
|
|
3,680
|
|
|
4,982
|
|
|
16
|
|
|
4,998
|
|
|||||||
Equity in net income/(loss) of affiliated companies
|
(56
|
)
|
|
(12
|
)
|
|
(6
|
)
|
|
(74
|
)
|
|
8
|
|
|
(66
|
)
|
|||||||
Income/(Loss) before income taxes
|
(2,266
|
)
|
|
(666
|
)
|
|
2,297
|
|
|
(635
|
)
|
|
573
|
|
|
(62
|
)
|
|||||||
Provision for/(Benefit from) income taxes
|
(701
|
)
|
|
(159
|
)
|
|
1,528
|
|
|
668
|
|
|
145
|
|
|
813
|
|
|||||||
Net income/(loss)
|
(1,565
|
)
|
|
(507
|
)
|
|
769
|
|
|
(1,303
|
)
|
|
428
|
|
|
(875
|
)
|
|||||||
Less: Income/(Loss) attributable to noncontrolling interests
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||||
Net income/(loss) attributable to Ford Motor Company
|
$
|
(1,566
|
)
|
|
$
|
(507
|
)
|
|
$
|
769
|
|
|
$
|
(1,304
|
)
|
|
$
|
428
|
|
|
$
|
(876
|
)
|
|
|
June 30, 2020
|
||||||||||||||
Assets
|
|
Company excluding Ford Credit
|
|
Ford Credit
|
|
Eliminations
|
|
Consolidated
|
||||||||
Cash and cash equivalents
|
|
$
|
18,151
|
|
|
$
|
12,838
|
|
|
$
|
—
|
|
|
$
|
30,989
|
|
Marketable securities
|
|
21,105
|
|
|
5,036
|
|
|
—
|
|
|
26,141
|
|
||||
Ford Credit finance receivables, net
|
|
—
|
|
|
42,720
|
|
|
—
|
|
|
42,720
|
|
||||
Trade and other receivables, net
|
|
3,065
|
|
|
6,042
|
|
|
—
|
|
|
9,107
|
|
||||
Inventories
|
|
10,220
|
|
|
—
|
|
|
—
|
|
|
10,220
|
|
||||
Assets held for sale
|
|
670
|
|
|
50
|
|
|
—
|
|
|
720
|
|
||||
Other assets
|
|
2,171
|
|
|
2,043
|
|
|
—
|
|
|
4,214
|
|
||||
Receivable from other segments
|
|
253
|
|
|
2,157
|
|
|
(2,410
|
)
|
|
—
|
|
||||
Total current assets
|
|
55,635
|
|
|
70,886
|
|
|
(2,410
|
)
|
|
124,111
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Ford Credit finance receivables, net
|
|
—
|
|
|
53,987
|
|
|
—
|
|
|
53,987
|
|
||||
Net investment in operating leases
|
|
1,349
|
|
|
26,367
|
|
|
—
|
|
|
27,716
|
|
||||
Net property
|
|
35,064
|
|
|
212
|
|
|
—
|
|
|
35,276
|
|
||||
Equity in net assets of affiliated companies
|
|
4,539
|
|
|
112
|
|
|
—
|
|
|
4,651
|
|
||||
Deferred income taxes
|
|
12,319
|
|
|
153
|
|
|
(1,406
|
)
|
|
11,066
|
|
||||
Other assets
|
|
9,613
|
|
|
2,946
|
|
|
—
|
|
|
12,559
|
|
||||
Receivable from other segments
|
|
7
|
|
|
11
|
|
|
(18
|
)
|
|
—
|
|
||||
Total assets
|
|
$
|
118,526
|
|
|
$
|
154,674
|
|
|
$
|
(3,834
|
)
|
|
$
|
269,366
|
|
Liabilities
|
|
Company excluding Ford Credit
|
|
Ford Credit
|
|
Eliminations
|
|
Consolidated
|
||||||||
Payables
|
|
$
|
15,312
|
|
|
$
|
1,048
|
|
|
$
|
—
|
|
|
$
|
16,360
|
|
Other liabilities and deferred revenue
|
|
19,233
|
|
|
1,559
|
|
|
—
|
|
|
20,792
|
|
||||
Automotive debt payable within one year
|
|
2,084
|
|
|
—
|
|
|
—
|
|
|
2,084
|
|
||||
Ford Credit debt payable within one year
|
|
—
|
|
|
53,260
|
|
|
—
|
|
|
53,260
|
|
||||
Other debt payable within one year
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Liabilities held for sale
|
|
284
|
|
|
—
|
|
|
—
|
|
|
284
|
|
||||
Payable to other segments
|
|
2,410
|
|
|
—
|
|
|
(2,410
|
)
|
|
—
|
|
||||
Total current liabilities
|
|
39,323
|
|
|
55,867
|
|
|
(2,410
|
)
|
|
92,780
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities and deferred revenue
|
|
24,156
|
|
|
1,235
|
|
|
—
|
|
|
25,391
|
|
||||
Automotive long-term debt
|
|
37,409
|
|
|
—
|
|
|
—
|
|
|
37,409
|
|
||||
Ford Credit long-term debt
|
|
—
|
|
|
82,007
|
|
|
—
|
|
|
82,007
|
|
||||
Other long-term debt
|
|
470
|
|
|
—
|
|
|
—
|
|
|
470
|
|
||||
Deferred income taxes
|
|
56
|
|
|
1,804
|
|
|
(1,406
|
)
|
|
454
|
|
||||
Payable to other segments
|
|
18
|
|
|
—
|
|
|
(18
|
)
|
|
—
|
|
||||
Total liabilities
|
|
$
|
101,432
|
|
|
$
|
140,913
|
|
|
$
|
(3,834
|
)
|
|
$
|
238,511
|
|
|
Increase/
(Decrease)
|
||
Net income
|
$
|
(0.9
|
)
|
Shareholder distributions
|
(0.6
|
)
|
|
Adoption of accounting standards
|
(0.2
|
)
|
|
Other comprehensive income
|
(0.7
|
)
|
|
Total
|
$
|
(2.4
|
)
|
|
U.S. Sales
|
|
U.S. Wholesales
|
||
Trucks
|
237,891
|
|
|
138,496
|
|
SUVs
|
151,328
|
|
|
74,633
|
|
Cars
|
44,650
|
|
|
26,001
|
|
Total Vehicles
|
433,869
|
|
|
239,130
|
|
ASU
|
|
Effective Date (a)
|
|
2019-12
|
Simplifying the Accounting for Income Taxes
|
|
January 1, 2021
|
2018-12
|
Targeted Improvements to the Accounting for Long Duration Contracts
|
|
January 1, 2022
|
(a)
|
Early adoption for each of the standards is permitted.
|
Designation
|
|
Description
|
|
Method of Filing
|
|
Defined Contribution Supplemental Executive Retirement Plan, as amended and restated.
|
|
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
|
|
Interactive Data Files pursuant to Rule 405 of Regulation S-T formatted in Inline Extensible Business Reporting Language (“Inline XBRL”).
|
|
*
|
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.
|
|
*
|
Exhibit 104
|
|
Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).
|
|
*
|
By:
|
/s/ Cathy O’Callaghan
|
|
Cathy O’Callaghan, Controller
|
|
(principal accounting officer)
|
|
|
Date:
|
July 30, 2020
|
2.01
|
“Affiliate” shall mean, as applied with respect to any person or legal entity specified, a person or legal entity that directly or indirectly, through one or more intermediaries, controls or is controlled by, or is under common control with, the person or legal entity specified.
|
2.02
|
“Base Monthly Salary” shall mean for the purposes of the Plan, the monthly base salary rate of such Eligible Executive during each month, prior to giving effect to any salary reduction agreement pursuant to an employee benefit plan, as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended, (i) to which Code Section 125 or Code Section 402(e)(3), applies or (ii) which provides for the elective deferral of compensation. It shall not include supplemental compensation or any other kind of extra or additional compensation.
|
2.03
|
“Code” shall mean the Internal Revenue Code of 1986, as amended.
|
2.04
|
“Committee” shall mean the Chief Human Resources Officer and the Vice President and Chief Financial Officer (or, in the event of changes in titles, such officers’ functional equivalents), and such person or persons to whom the Chief Human Resources Officer and the Vice President and Chief Financial Officer delegate authority to administer the Plan.
|
2.05
|
“Company” shall mean Ford Motor Company and such of the subsidiaries of Ford Motor Company as, with the consent of Ford Motor Company, shall have adopted this Plan.
|
2.06
|
“Company Service” shall mean the years and any fractional years that an individual is employed at Ford Motor Company.
|
2.07
|
“Compensation Committee” shall mean the Compensation Committee of the Board of Directors of Ford Motor Company.
|
2.08
|
“Designated Third Party Administrator” shall mean the service provider employed by the Company to act as record keeper to maintain the Notional Accounts and process notional investment elections.
|
2.09
|
“Eligible Executive(s)” shall mean a Company employee in Leadership Level Four or above, or its equivalent, who satisfies the requirements of Section 3.01. “Eligible Executive” shall not include any supplemental employee.
|
2.10
|
“Eligibility Service” shall mean Company Service while an Eligible Executive.
|
2.11
|
“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.
|
2.12
|
“Named Executive Officer(s)” shall mean any Chief Executive Officer that served during the last completed fiscal year, any Chief Financial Officer that served during the last completed fiscal year, the next three most highly compensation executive officers at the end of the last completed fiscal year, and up to two additional individuals who would have been among the most three highly compensated executive officers had they been executive officers at the end of the previous fiscal year end.
|
2.13
|
“Notional Account(s)” shall mean the book entry account, which shall include Notional Credits, and any interest equivalents, dividend equivalents or other earnings credited to such book entry account, established by the Company for each Eligible Executive.
|
2.14
|
“Notional Credit(s)” shall mean the amounts credited to the Eligible Executive’s Notional Account each pay period as described under Section 3.02.
|
2.15
|
“Plan” shall mean the Ford Motor Company Defined Contribution Supplemental Executive Retirement Plan, as amended.
|
2.16
|
“Plan Administrator” shall mean such person or persons to whom the Committee shall delegate authority to administer the Plan, who does not already act as a Committee member.
|
2.17
|
“Separation From Service” shall be determined to have occurred on the date on which an Eligible Executive incurs a “separation from service” within the meaning of Code Section 409A.
|
2.18
|
“Special Supplemental Benefit(s)” shall mean benefits payable under this Plan as determined in accordance with Section 3.06.
|
2.19
|
“Specified Employee” shall mean an employee of the Company who is a “Key Employee” as defined in Code Section 416(i)(1)(A)(i), (ii) or (iii), applied in accordance with the regulations thereunder and disregarding Subsection 416(i)(5). A Specified Employee shall be identified as of December 31st of each calendar year and such identification shall apply to any Specified Employee who shall incur a Separation From Service in the 12-month period commencing April 1st of the immediately succeeding calendar year. An employee who is determined to be a Specified Employee shall remain
|
2.20
|
“SSIP” shall mean the Savings and Stock Investment Plan for Salaried Employees, as amended.
|
2.21
|
“Subsidiary” shall mean, as applied with respect to any person or legal entity specified, (i) a person or legal entity, a majority of the voting stock of which is owned or controlled, directly or indirectly, by the person or legal entity specified, or (ii) any other type of business organization in which the person or legal entity specified owns or controls, directly or indirectly, a majority interest.
|
2.22
|
“Supplemental Benefit(s)” shall mean benefits payable under this Plan as determined in accordance with Section 3.
|
2.23
|
“Valuation Date” shall mean March 15th of each calendar year, or the next preceding business day for which valuation information is available, and shall be the date on which a Notional Account shall be valued for purposes of determining the amount to be distributed in a particular distribution year.
|
3.01
|
Eligibility. Each Eligible Executive who:
|
3.02
|
Notional Credits. A Notional Account shall be established for each Eligible Executive. Each pay period, the Eligible Executive’s Notional Account shall be credited with Notional Credits representing an amount equal to the product of such Eligible Executive’s Base Monthly Salary received multiplied by the applicable percentage below which is based on the Eligible Executive’s whole age at the end of the present calendar year and Leadership Level during that month:
|
Applicable Percentage
|
||||
|
|
Age < 40
|
Age 40-49
|
Age 50+
|
Leadership Level One
- Executive Chairman, Chairman, Vice Chairman, Chief Executive Officer, President, Chief Operating Officer
|
|
16.50%
|
15.50%
|
14.50%
|
- Executive Vice President
|
|
10.50%
|
9.50%
|
8.50%
|
- Group Vice President & Vice President
|
|
7.50%
|
6.50%
|
5.50%
|
Leadership Level Two
|
|
4.50%
|
3.50%
|
2.50%
|
Leadership Level Three & Four
|
|
3.00%
|
2.00%
|
1.00%
|
3.03
|
Supplemental Benefit. The Eligible Executive’s Supplemental Benefit shall be equal to the value of such Eligible Executive’s Notional Account at the time of distribution.
|
3.04
|
Payments.
|
(a)
|
Except as otherwise provided below, distribution of the Supplemental Benefit shall be made in five annual installment payments, with such annual installments beginning on, or as soon as reasonably practicable after, the first Valuation Date following the one year anniversary of the Eligible Executive’s Separation From Service. Thereafter, each installment shall be paid annually on, or as soon as reasonably practicable after, each successive Valuation Date.
|
(b)
|
Prior to the March 15th immediately following an Eligible Executive’s Separation From Service, an Eligible Executive may elect to defer payment of the Supplemental Benefit in accordance with this Subsection. Distribution of a deferred Supplemental Benefit shall be made in five annual installment payments, with such annual installments beginning on, or as soon as reasonably practicable after, the first Valuation Date following the fifth anniversary of the Valuation Date on which payment would have commenced had the Eligible Executive not elected to defer commencement of the Supplemental Benefit.
|
(c)
|
Notwithstanding any other provision of the Plan to the contrary, but subject to the earning out provisions of Section 4, if a Specified Employee incurs a Separation From Service, other than as a result of such Specified Employee's death, payment of any Supplemental Benefit to such Specified Employee shall commence on, or as soon as reasonably practicable after, the first day of the seventh month following the Separation From Service. A Specified Employee who is subject to a six-month distribution delay pursuant to this Section 3.04 will be permitted to continue to manage the investment elections applicable to such Specified Employee’s Notional Account during the six-month distribution delay. Any payment delayed under this Section shall not bear interest over and above the notional investment earnings credited to such Specified Employee’s book entry account during the period of delay.
|
(d)
|
Except as provided in Section 3.05, payments with respect to an Eligible Executive hereunder shall cease at the Eligible Executive’s death.
|
3.05
|
Death Benefits.
|
(a)
|
Upon death, but before Separation From Service, if the Eligible Executive has satisfied the eligibility requirements under Section 3.01(i), (ii) and (iii), the Eligible Executive's Notional Account shall be distributed in its entirety to the Eligible Executive’s beneficiary or deemed beneficiary under the SSIP. All such distributions shall occur on, or as soon as reasonably practicable after, such Eligible Executive’s date of death.
|
(b)
|
If the Eligible Executive’s death occurs after Separation From Service and before all five annual payments are made, the Eligible Executive’s Notional Account balance shall be distributed in its entirety to the Eligible Executive’s beneficiary or deemed beneficiary under the SSIP. All such distributions shall occur on, or as soon as reasonably practicable after, such Eligible Executive’s date of death.
|
3.06
|
Special Supplemental Benefits. In addition to, or in place of, any other Supplemental Benefits otherwise provided under this Plan, the Company may, in its sole discretion, provide Special Supplemental Benefits to certain Eligible Executives, including providing that certain Eligible Executives shall not be eligible for a Supplemental Benefits or shall
|
3.07
|
Effect of Separation from Service Prior to Eligibility. In the event an Eligible Executive incurs a Separation From Service prior to meeting the eligibility requirements of Section 3.01, no Supplemental Benefit or Special Supplemental Benefit shall be payable under the Plan and such Eligible Executive’s Notional Account shall be closed.
|
5.01
|
Plan Administration and Interpretation.
|
(a)
|
Notwithstanding any other provisions of the Plan to the contrary, the terms of the Plan shall determine the benefits payable to any person under the Plan and no person shall be eligible for any benefit under the Plan that would be inconsistent with such terms.
|
(b)
|
Except as otherwise provided, full authority to administer and interpret this Plan shall be vested in the Committee. The Committee is authorized, in its sole discretion, from time to time, to establish such rules and regulations as it deems appropriate for the proper administration of the Plan, and to make such determinations under, and such interpretations of, and to take such actions in connection with, the Plan as it deems necessary or advisable. Each determination, interpretation, or other action hereunder by the Committee shall be final, binding and conclusive upon all persons for all purposes under the Plan. The Committee may act, in its sole discretion, to delegate administrative and interpretative authority under this Section to the Plan Administrator.
|
(c)
|
In the event that an Article, Section or paragraph of the Code or Treasury Regulations is renumbered, such renumbered Article, Section or paragraph shall apply to applicable references in this Plan.
|
5.02
|
Local Payment Authorities. The Vice President and Treasurer and the Assistant Treasurer (or, in the event of a change in title, such officer’s functional equivalent) may act individually to delegate authority to administrative personnel for purposes of paying benefits under the Plan to any person.
|
5.03
|
Deductions. The Company may deduct from any payment of Supplemental Benefits to an Eligible Executive, or from any payment of Supplemental Benefits to a beneficiary, any and all amounts owed to it by such Eligible Executive or beneficiary for any reason, and all taxes required by law or government regulation to be deducted or withheld.
|
5.04
|
Tax Liabilities. The Company has no duty to design its compensation policies in a manner that minimizes an individual’s tax liabilities, including tax liabilities arising as a result of Supplemental Benefits provided under the Plan. No claim shall be made against the Plan relating to tax liabilities arising from employment with the Company and/or any compensation or benefit arrangements sponsored or maintained by the Company, including this Plan.
|
5.05
|
No Contract of Employment. The Plan is an expression of the Company's present policy with respect to Eligible Executives; it is not a part of any contract of employment. No Eligible Executive, beneficiary or any other person shall have any legal or other right to any benefit under this Plan.
|
5.06
|
Supplemental Benefits Not Funded. The Company's obligations under this Plan shall not be funded and Supplemental Benefits under this Plan shall be payable only out of the general funds of the Company.
|
5.07
|
Governing Law. Except as otherwise provided under Federal law, the Plan and all rights thereunder shall be governed, construed and administered in accordance with the laws of the State of Michigan.
|
5.08
|
Amendment or Termination. The Company shall have the right to amend, modify, discontinue or terminate this Plan, in whole or in part, at any time, without notice; provided, however, that no distribution of Supplemental Benefits shall occur upon termination of this Plan, unless applicable requirements of Code Section 409A have been met. Notwithstanding anything to the contrary herein, benefits payable under this Plan remain subject to the claims of the Company’s general creditors at all times.
|
5.09
|
Terms Not Otherwise Defined. Capitalized terms not otherwise defined in this Plan shall have the same meanings ascribed to such terms under the applicable plan.
|
5.10
|
No Alienation of Benefits. An Eligible Executive may not assign or alienate any Supplemental Benefits, and the Plan will not recognize a domestic relations order that purports to assign the Supplemental Benefit to another person.
|
5.11
|
Recovery of Overpayment. Any individual shall repay promptly any and all Supplemental Benefits received by the individual to which the individual is not entitled. Written notice of any overpayment, the amount owed and actions that may be taken in connection with the overpayment will be sent to the individual. If an individual fails to make timely repayment, this Plan shall proceed to recover the overpaid amount. This Plan reserves the right to initiate formal recovery action through the use of a collection agency or through any applicable legal proceedings
|
(a)
|
The provisions of Code Section 409A are incorporated into the Plan by reference to the extent necessary for any benefit provided under the Plan that is subject to Code Section 409A to comply with such requirements and, except as otherwise expressly determined by the Company, the Plan shall be administered in accordance with Code Section 409A as if the requirements of Code Section 409A were set forth herein. The Company reserves the right to take such action, on a uniform and consistent basis, as the Company deems necessary or desirable to ensure compliance with Code Section 409A, and applicable additional regulatory guidance thereunder, or to achieve the goals of the Plan without having adverse tax consequences under this Plan for any employee or beneficiary. Unless determined otherwise by the Company, any such action shall be taken in a manner that will enable any benefit provided under the Plan that is intended to be exempt from Code Section 409A to continue to be so exempt, or to enable any benefit provided under the Plan that is intended to comply with Code Section 409A to continue to so comply.
|
(b)
|
In no event shall any transfer of liabilities to or from this Plan result in an impermissible acceleration or deferral of Supplemental Benefits under Code Section 409A. In the event such a transfer would cause an impermissible acceleration or deferral under Code Section 409A, such transfer shall not occur.
|
(c)
|
In no event will application of any eligibility requirements under this Plan cause an impermissible acceleration or deferral of any Plan benefits under Code Section 409A.
|
(d)
|
In the event an Eligible Executive receiving, or entitled to receive, a Supplemental Benefit and/or a Special Supplemental Benefit is reemployed following a Separation From Service, distribution of any Supplemental Benefit or Special Supplemental Benefit shall not cease or be deferred upon such Eligible Executive's reemployment. Any additional Supplemental Benefits to which such Eligible Executive may become entitled following reemployment shall be determined and paid, independent of any other Supplemental Benefit or Special Supplemental Benefit, in accordance with the terms and conditions of this Plan, including Section 3 and Subsection 4.03.
|
(e)
|
After receipt of any benefits under the Plan, the obligations of the Company with respect to such benefits shall be satisfied and no Eligible Executive, beneficiary, or other person shall have any further claims against the Plan or the Company with respect to Plan benefits.
|
(f)
|
Notwithstanding any other provisions of the Plan to the contrary, any payment deferral election made pursuant to Section 3.04(ii) shall be made not less than 12 months prior to the Valuation Date on which payment of such Supplemental Benefit or Special Supplemental Benefit otherwise would have commenced without such deferral election and such election shall not take effect until at least 12 months after the date on which such election is made. Further, commencement of payments with respect to which such a deferral election is made shall be deferred for a period of not less than five years from the date such payments otherwise would have commenced.
|
7.01
|
Denial of a Claim. A claim for benefits under the Plan shall be submitted in writing to the Plan Administrator. If a claim for benefits or participation is denied in whole or in part by the Plan Administrator, the claimant will receive written notification within 90 days from the date the claim for benefits or participation is received. Such notice shall be deemed given upon mailing, full postage prepaid in the United States mail or on the date sent electronically to the claimant. If the Plan Administrator determines that an extension of time to consider a claim and render a decision is needed, written notice of the extension shall be furnished to the claimant as soon as practical.
|
7.02
|
Review of Denial of Claim. In the event that the Plan Administrator denies a claim for benefits or participation, the claimant may request a review by filing a written appeal. If the appeal is from an active Leadership Level One employee, a Named Executive Officer or any individual who, at any time, shall have been a member of the Board of Directors, the appeal will be heard by the Compensation Committee. If the appeal is from any other appellant, the appeal will be heard by the Committee. All appeals must be filed within sixty (60) days of the date of the written notification of denial. The appeal will be considered and a decision shall be rendered within 90 days from the date the appeal is received. Under special circumstances, an extension of time to consider the appeal and render a decision may be needed, in which case a decision shall be rendered as soon as practical. In the event such an extension of time is needed to consider the appeal and render a decision, written notice of such time extension shall be provided to the appellant.
|
7.03
|
Decision on Appeal. The decision on review of the appeal shall be in writing. Such notice shall be deemed given upon mailing, full postage prepaid in the United States mail or on the date sent electronically to the appellant. Decisions rendered on the appeal are final and conclusive and are only subject to the arbitrary and capricious standard of judicial review.
|
7.04
|
Limitations Period. No legal action for benefits under the Plan may be brought against the Plan until after the claim and appeal procedures have been exhausted. Legal actions under the Plan for benefits must be brought no later than two (2) years after the date of the denial of the appeal. No other action may be brought against the Plan more than six (6) months after the date of the last action that gave rise to the claim.
|
7.05
|
Venue. An individual shall only bring an action in connection with the Plan in the United States District Court for the Eastern District of Michigan.
|
Eligible Executive
|
Special Supplemental Benefit
|
Alan Mulally
|
Shall be excluded from Plan participation entirely
|
Jim Farley
|
Shall be excluded from Plan participation until June 30, 2017; provided however, service earned prior to that date shall be used for purposes of determining Eligibility Service
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the period ended June 30, 2020 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:
|
July 30, 2020
|
/s/ James P. Hackett
|
|
|
James P. Hackett
|
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the period ended June 30, 2020 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:
|
July 30, 2020
|
/s/ Tim Stone
|
|
|
Tim Stone
|
|
|
Chief Financial Officer
|
|
|
|
1.
|
The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2020, 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
|
2.
|
The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated:
|
July 30, 2020
|
/s/ James P. Hackett
|
|
|
James P. Hackett
|
|
|
President and Chief Executive Officer
|
1.
|
The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2020, 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
|
2.
|
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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July 30, 2020
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/s/ Tim Stone
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Tim Stone
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Chief Financial Officer
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