Ford Motor Company 1Q April 27, 2017
*See endnote on page 4.
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│ NEWS
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1Q 2017
B/(W) 1Q 2016
EXECUTING STRATEGIC PRIORITIES
HIGHLIGHTS 1Q 2017*
Ford Delivers First Quarter Revenue of $39.1B;
$1.6B Net Income; $2.2B Adjusted Pre-Tax Profit
2 0 17 F I R S T Q U A R T E R F I N A N C I A L R E S U LT S
“This quarter was an investment in
Ford's future. From announcing
exciting vehicles like the all-new
Expedition and Lincoln Navigator, to
initiatives such as our investment in
Argo AI, we are fortifying our core
business, while also investing in
emerging opportunities that will deliver
profitable growth.”
Mark Fields, President & CEO
Revenue Net Income Adjusted Pre-Tax Profit EPS Adjusted EPS Auto Segment Auto Segment Operating
(GAAP) (GAAP) (Non-GAAP) (GAAP) (Non-GAAP) Operating Margin (GAAP) Cash Flow (GAAP)
$39.1B $1.6B $2.2B $0.40 $0.39 5.4% $2.0B
$1.4B $(0.9)B $(1.6)B $(0.21) $(0.29) (4.4) ppts $(0.7)B
First quarter total company revenue was $39.1B, up 4 percent
year over year, driven by favorable mix
EPS was $0.40 and adjusted EPS was $0.39
Lower profit year over year driven by higher cost, lower volume
and unfavorable exchange; higher cost due to warranty,
investments in new products and emerging opportunities for
future growth, and rising commodity costs
Average transaction prices in the U.S. were up $1,971 year
over year, nearly four times more than the industry average of
$506, driven by F-150, Super Duty and Lincoln
Automotive results were driven by North America; Europe and
Asia Pacific were also profitable. Ford Credit pre-tax profit was
$481M
For 2017: Continue to expect total company adjusted pre-tax
profit to be about $9B, also a platform from which to build
stronger results for 2018, led by gains in the core business
Expect full-year cost efficiencies of nearly $3B to mostly offset
costs outside of investments in emerging opportunities
Trucks: New F-150 going on sale
this fall; Ranger to North America
in 2019
Utilities: All-new Expedition going
on sale this fall; Bronco returning
globally in 2020
Performance: Mustang
best-selling sports car on the
planet
“Ford’s balance sheet remains strong –
ready and able to support our plans for
growth and to protect against adverse
changes in the business cycle. We’re
also pleased to have rewarded
shareholders with distributions in the
quarter of $800 million, including a
supplemental dividend.”
Bob Shanks
Executive Vice President & CFO
Introduced all-new Lincoln
Navigator; on sale this fall
Announced plans to manufacture
all-new Lincoln SUV in China
Russia financial results improved
year over year; ASEAN profitable
and improved
Announced 13 new electric
vehicles globally in the next five
years
Unveiled the industry’s first
pursuit-rated hybrid police car
Announced investment in Argo AI
to develop virtual driver system
Ford Motor Company 1Q April 27, 2017
A U T O M O T I V E S E G M E N T R E S U LT S
North America
South America
Europe
Middle East & Africa
Asia Pacific
F O R D C R E D I T R E S U LT S
Ford Credit
Wholesales Revenue
Market
Share
Operating
Margin
Pre-Tax
Results
2
Higher revenue driven by mix; wholesales lower year over
year due to market share and lower dealer stock build
Market share decrease driven by lower fleet sales, as
expected. U.S. retail share was up, reflecting higher share
in trucks, utilities and Lincoln
For 2017: Continue to expect North America operating
margin and profit to be strong, but lower than 2016, due to
headwinds on commodities and increased investment in
emerging opportunities, offset partially by net efficiencies
across all other remaining cost categories
1Q 2017 771K $24.0B 14.1% 8.3% $2.0B
B/(W)
1Q 2016
(43)K $0.1B (0.5) ppts (4.6) ppts $(1.1)B
All key metrics improved for the second consecutive quarter
Wholesales were up 11 percent; revenue up 29 percent
Market share also improved due to performance of Ka and
Ranger
For 2017: Continue to expect South America’s loss to
improve as a result of improving market factors as the
economy begins to recover.
1Q 2017 70K $1.1B 9.0% (22.5)% $(244)M
B/(W)
1Q 2016
7K $0.3B 0.6 ppts 7.9 ppts $12M
Region saw double-digit growth and continued profitability
in the quarter
Market share higher due to performance of Kuga and
commercial vehicles
For 2017: Continue to expect Europe to remain profitable,
although below 2016 levels, due to weaker sterling, higher
cost associated with launch of Fiesta and EcoSport, and
continued investment for future growth
1Q 2017 449K $7.6B 8.1% 2.3% $176M
B/(W)
1Q 2016
50K $0.7B 0.2 ppts (4.0) ppts $(258)M
Key metrics driven by unfavorable dealer stock changes,
lower market share and lower industry volume in the
Middle East
SAAR down 12 percent in markets where we participate
For 2017: Continue to expect results in the region to
improve compared to 2016 due to lower cost and favorable
exchange, with lower volume a partial offset
1Q 2017 30K $0.6B 3.8% (12.4)% $(80)M
B/(W)
1Q 2016
(16)K $(0.3)B (0.8) ppts (10.9) ppts $(66)M
Results in China drove the year over year changes in key
metrics, except for revenue; lower volume due to sales
being pulled ahead to fourth quarter of last year as tax
incentive was set to expire
Results in all major markets outside of China improved
For 2017: Continue to expect profits to improve from 2016
due to higher volume. Net pricing will be lower due to
negative industry pricing in China, while exchange expected
to be unfavorable due to weaker RMB
1Q 2017 383K $3.2B 3.4% 3.9% $124M
B/(W)
1Q 2016
(15)K $0.5B (0.4) ppts (4.3) ppts $(96)M
Wholesales
Revenue
(GAAP)
Market Share
Operating Margin
(GAAP)
Pre-Tax Profit
(GAAP)
1Q 2017 1,703K $36.5B 7.1% 5.4% $2.0B
B/(W) 1Q 2016 (17)K $1.3B (0.3) ppts (4.4) ppts $(1.5)B
Receivables grew year over year, while pre-tax profit was
lower, as expected
All key metrics in line with expectations
For 2017: On track to deliver full-year pre-tax profit of
about $1.5B
Pre-Tax Results
1Q 2017 $481M
B/(W)
1Q 2016
$(33)M
Ford Motor Company 1Q April 27, 2017 3
Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptions by our management and involve a
number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, including, without limitation:
Decline in industry sales volume, particularly in the United States, Europe, or China, due to financial crisis, recession, geopolitical events, or other
factors;
Lower-than-anticipated market acceptance of Ford’s new or existing products or services, or failure to achieve expected growth;
Market shift away from sales of larger, more profitable vehicles beyond Ford’s current planning assumption, particularly in the United States;
Continued or increased price competition resulting from industry excess capacity, currency fluctuations, or other factors;
Fluctuations in foreign currency exchange rates, commodity prices, and interest rates;
Adverse effects resulting from economic, geopolitical, protectionist trade policies, or other events;
Work stoppages at Ford or supplier facilities or other limitations on production (whether as a result of labor disputes, natural or man-made disasters,
tight credit markets or other financial distress, production constraints or difficulties, or other factors);
Single-source supply of components or materials;
Labor or other constraints on Ford’s ability to maintain competitive cost structure;
Substantial pension and other postretirement liabilities impairing liquidity or financial condition;
Worse-than-assumed economic and demographic experience for pension and other postretirement benefit plans (e.g., discount rates or investment
returns);
Restriction on use of tax attributes from tax law “ownership change;”
The discovery of defects in vehicles resulting in delays in new model launches, recall campaigns, or increased warranty costs;
Increased safety, emissions, fuel economy, or other regulations resulting in higher costs, cash expenditures, and/or sales restrictions;
Unusual or significant litigation, governmental investigations, or adverse publicity arising out of alleged defects in products, perceived environmental
impacts, or otherwise;
Adverse effects on results from a decrease in or cessation or claw back of government incentives related to investments;
Cybersecurity risks to operational systems, security systems, or infrastructure owned by Ford, Ford Credit, or a third party vendor or supplier;
Failure of financial institutions to fulfill commitments under committed credit and liquidity facilities;
Inability of Ford Credit to access debt, securitization, or derivative markets around the world at competitive rates or in sufficient amounts, due to credit
rating downgrades, market volatility, market disruption, regulatory requirements, or other factors;
Higher-than-expected credit losses, lower-than-anticipated residual values, or higher-than-expected return volumes for leased vehicles;
Increased competition from banks, financial institutions, or other third parties seeking to increase their share of financing Ford vehicles; and
New or increased credit regulations, consumer or data protection regulations, or other regulations resulting in higher costs and/or additional financing
restrictions.
We cannot be certain that any expectation, forecast, or assumption made in preparing forward-looking statements will prove accurate, or that any
projection will be realized. It is to be expected that there may be differences between projected and actual results. Our forward-looking statements speak
only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as
a result of new information, future events, or otherwise. For additional discussion, see "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the
year ended December 31, 2016, as updated by subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
R I S K F A C T O R S
Ford Motor Company 1Q April 27, 2017 4
Ford Motor Company [NYSE:F] releases its 2017 first quarter financial results at 7:00 a.m. EDT today.
Following the release, Mark Fields, Ford president and chief executive officer, and Bob Shanks, Ford executive vice president and chief
financial officer, will host a conference call at 9 a.m. EDT to discuss the results.
The presentation (listen-only) and supporting materials will be available at www.shareholder.ford.com. Representatives of the investment
community and the news media will have the opportunity to ask questions on the call.
Access Information - Thursday, April 27, 2017
Ford Earnings Call: 9 a.m. EDT
Toll-Free: 1.877.870.8664
International: 1.970.297.2423
Passcode: Ford Earnings
REPLAY
(Available after 1:00 p.m. EDT the day of the event through Thursday, May 4, 2017)
www.shareholder.ford.com
Toll-Free: 1.855.859.2056
International: 1.404.537.3406
Passcode: 95413407
About Ford Motor Company
Ford Motor Company is a global automotive and mobility company based in Dearborn, Michigan. With about 202,000 employees and 62
plants worldwide, the company’s core business includes designing, manufacturing, marketing and servicing a full line of Ford cars, trucks
and SUVs, as well as Lincoln luxury vehicles. To expand its business model, Ford is aggressively pursuing emerging opportunities with
investments in electrification, autonomy and mobility. Ford provides financial services through Ford Motor Credit Company. For more
information regarding Ford and its products and services, please visit www.corporate.ford.com.
* The following applies to the information throughout this release:
See tables at the end of this release for the nature and amount of special items, and reconciliations of the non-GAAP financial
measures designated as “adjusted” to the most comparable financial measures calculated in accordance with U.S. generally
accepted accounting principles (“GAAP”).
Wholesale unit sales and production volumes include Ford brand and Jiangling Motors Corporation (“JMC”) brand vehicles produced
and sold in China by our unconsolidated affiliates; revenue does not includes these sales. See materials supporting the April 27,
2017 conference call at www.shareholder.ford.com for further discussion of wholesale unit volumes.
Automotive segment operating margin is defined as Automotive segment pre-tax profit divided by Automotive segment revenue.
References to records related to Automotive segment pre-tax profit, Automotive segment operating cash flow, Automotive segment
operating margin and Automotive business unit results are since at least 2000.
Contact(s): Media Inquiries: Equity Investment Fixed Income Shareholder
Brad Carroll
Community:
Dawn Dombroski
Investment Community:
Karen Rocoff
Inquiries:
1.800.555.5259 or
1.313.390.5565 1.313.845.2868 1.313.621.0965 1.313.845.8540
bcarro37@ford.com
fordir@ford.com fixedinc@ford.com stockinf@ford.com
C O N F E R E N C E C A L L D E TA I L S
Ford Motor Company 1Q April 27, 2017 5
C O N S O L I D AT E D I N C O M E S T AT E M E N T
FORD MOTOR COMPANY AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
(in millions, except per share amounts)
For the periods ended March 31,
2016 2017
First Quarter
(unaudited)
Revenues
Automotive $ 35,257 $ 36,475
Financial Services 2,461 2,669
Other — 2
Total revenues 37,718 39,146
Costs and expenses
Cost of sales 30,517 32,708
Selling, administrative, and other expenses 2,690 2,764
Financial Services interest, operating, and other expenses 2,060 2,232
Total costs and expenses 35,267 37,704
Interest expense on Automotive debt 200 279
Non-Financial Services other income/(loss), net 768 712
Financial Services other income/(loss), net 91 22
Equity in net income of affiliated companies 541 346
Income before income taxes 3,651 2,243
Provision for/(Benefit from) income taxes 1,196 649
Net income 2,455 1,594
Less: Income/(Loss) attributable to noncontrolling interests 3 7
Net income attributable to Ford Motor Company $ 2,452 $ 1,587
EARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK
Basic income $ 0.62 $ 0.40
Diluted income 0.61 0.40
Cash dividends declared 0.40 0.20
Ford Motor Company 1Q April 27, 2017 6
C O N S O L I D AT E D B A L A N C E S H E E T
December 31,
2016
March 31,
2017
(unaudited)
ASSETS
Cash and cash equivalents $ 15,905 $ 17,823
Marketable securities 22,922 22,166
Financial Services finance receivables, net 46,266 48,605
Trade and other receivables, less allowances of $392 and $401 11,102 10,685
Inventories 8,898 10,535
Other assets 3,368 3,414
Total current assets 108,461 113,228
Financial Services finance receivables, net 49,924 50,694
Net investment in operating leases 28,829 27,914
Net property 32,072 32,668
Equity in net assets of affiliated companies 3,304 3,642
Deferred income taxes 9,705 10,055
Other assets 5,656 5,893
Total assets $ 237,951 $ 244,094
LIABILITIES
Payables $ 21,296 $ 23,257
Other liabilities and deferred revenue 19,316 18,790
Automotive debt payable within one year 2,685 3,100
Financial Services debt payable within one year 46,984 46,157
Total current liabilities 90,281 91,304
Other liabilities and deferred revenue 24,395 24,583
Automotive long-term debt 13,222 13,110
Financial Services long-term debt 80,079 83,610
Deferred income taxes 691 749
Total liabilities 208,668 213,356
Redeemable noncontrolling interest 96 97
EQUITY
Common Stock, par value $.01 per share (3,984 million shares issued of 6 billion authorized) 40 40
Class B Stock, par value $.01 per share (71 million shares issued of 530 million authorized) 1 1
Capital in excess of par value of stock 21,630 21,637
Retained earnings 15,634 16,992
Accumulated other comprehensive income/(loss) (7,013 ) (6,929 )
Treasury stock (1,122 ) (1,122 )
Total equity attributable to Ford Motor Company 29,170 30,619
Equity attributable to noncontrolling interests 17 22
Total equity 29,187 30,641
Total liabilities and equity $ 237,951 $ 244,094
FORD MOTOR COMPANY AND SUBSIDIARIES
CONS LIDATED BALANCE SHEET
(in millions)
Ford Motor Company 1Q April 27, 2017 7
C O N S O L I D AT E D S T AT E M E N T O F C A S H F L O W S
For the periods ended March 31,
2016 2017
First Quarter
(unaudited)
Cash flows from operating activities
Net cash provided by/(used in) operating activities $ 4,149 $ 4,336
Cash flows from investing activities
Capital spending (1,511 ) (1,706 )
Acquisitions of finance receivables and operating leases (12,677 ) (13,467 )
Collections of finance receivables and operating leases 9,674 10,695
Purchases of equity and debt securities (8,231 ) (8,878 )
Sales and maturities of equity and debt securities 5,679 9,551
Settlements of derivatives 104 156
Other (13 ) 10
Net cash provided by/(used in) investing activities (6,975 ) (3,639 )
Cash flows from financing activities
Cash dividends (1,588 ) (795 )
Purchases of Common Stock (145 ) —
Net changes in short-term debt (121 ) 658
Proceeds from issuance of other debt 15,623 13,253
Principal payments on other debt (9,431 ) (11,911 )
Other (59 ) (85 )
Net cash provided by/(used in) financing activities 4,279 1,120
Effect of exchange rate changes on cash and cash equivalents 192 101
Net increase/(decrease) in cash and cash equivalents $ 1,645 $ 1,918
Cash and cash equivalents at January 1 $ 14,272 $ 15,905
Net increase/(decrease) in cash and cash equivalents 1,645 1,918
Cash and cash equivalents at March 31 $ 15,917 $ 17,823
FORD MOTOR COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED ST TEMENT OF CASH FLOWS
(in millions)
Ford Motor Company 1Q April 27, 2017 8
S U P P L E M E N TA L F I N A N C I A L I N F O R M AT I O N
The tables below provide supplemental consolidating financial information. The data is presented by our
reportable segments, Automotive and Financial Services. All Other, Special Items, and Adjustments include our
operating segments that did not meet the quantitative threshold to qualify as a reportable segment, special items,
eliminations of intersegment transactions, and deferred tax netting.
Selected Income Statement Information. The following table provides supplemental income statement
information, by segment (in millions):
For the period ended March 31, 2017
Automotive
Financial
Services
All Other,
Special Items,
& Adjustments Consolidated
R venu $ 36,475 $ 2,669 $ 2 $ 39,146
Total costs and expenses 35,480 2,232 (8 ) 37,704
I t rest expens on Automotive debt — — 279 279
Other income/(loss), net 630 22 82 734
Equity in net income of affiliated companies 340 7 (1 ) 346
Income/(loss) before income taxes 1,965 466 (188 ) 2,243
Provision for/(Benefit from) income taxes 560 148 (59 ) 649
Net income/(loss) $ 1,405 $ 318 $ (129 ) $ 1,594
Ford Motor Company 1Q April 27, 2017 9
S U P P L E M E N TA L F I N A N C I A L I N F O R M AT I O N
Selected Balance Sheet Information. The following tables provide supplemental balance sheet information,
by segment, (in millions):
March 31, 2017
Assets Automotive
Financial
Services
All Other,
Special Items,
& Adjustments
Consolidated
Cash and cash equivalents $ 9,549 $ 8,268 $ 6 $ 17,823
Marketable securities 18,479 3,687 — 22,166
Financial Services finance receivables, net — 48,605 — 48,605
Trade and other receivables, less allowances 4,618 6,067 — 10,685
Inventories 10,535 — — 10,535
Other assets 2,483 931 — 3,414
Receivable from other segments 13 1,855 (1,868 ) —
Total current assets 45,677 69,413 (1,862 ) 113,228
Financial Services finance receivables, net — 50,694 — 50,694
Net investment in operating leases 1,486 26,428 — 27,914
Net property 32,504 161 3 32,668
Equity in net assets of affiliated companies 3,463 165 14 3,642
Deferred income taxes 13,639 206 (3,790 ) 10,055
Other assets 4,323 1,517 53 5,893
Receivable from other segments — 1,064 (1,064 ) —
Total assets $ 101,092 $ 149,648 $ (6,646 ) $ 244,094
Liabilities Automotive
Financial
Services
All Other,
Special Items,
& Adjustments Consolidated
Payables $ 22,146 $ 1,110 $ 1 $ 23,257
Other liabilities and deferred revenue 17,802 976 12 18,790
Automotive debt payable within one year 3,100 — — 3,100
Financial Services debt payable within one year — 46,157 — 46,157
Payable to other segments 1,852 — (1,852 ) —
Total current liabilities 44,900 48,243 (1,839 ) 91,304
Other liabilities and deferred revenue 23,493 1,087 3 24,583
Automotive long-term debt 13,110 — — 13,110
Financial Services long-term debt — 83,610 — 83,610
Deferred income taxes 183 4,356 (3,790 ) 749
Payable to other segments 1,064 — (1,064 ) —
Total liabilities $ 82,750 $ 137,296 $ (6,690 ) $ 213,356
Ford Motor Company 1Q April 27, 2017 10
S U P P L E M E N TA L F I N A N C I A L I N F O R M AT I O N
Selected Cash Flow Information. The following tables provide supplemental cash flow information, by segment,
(in millions):
* We measure and evaluate our Automotive segment operating cash flow on a different basis than Net cash provided by/(used in) operating activities
in our consolidated statement of cash flows. Automotive segment operating cash flow includes additional elements management considers to be
related to our Automotive operating activities, primarily capital spending and non-designated derivatives, and excludes outflows for funded pension
contributions, separation payments, and other items that are considered operating cash flows under U.S. GAAP. The table above quantifies the
reconciling adjustments to Net cash provided by/(used in) operating activities for the period ended March 31, 2017.
For the period ended March 31, 2017
Cash flows from operating activities Automotive
Financial
Services
All Other,
Special Items,
& Adjustments
Consolidated
Net cash provided by/(used in) operating activities $ 3,262 $ 1,084 $ (10 ) $ 4,336
Reconciling Adjustments to Automotive Segment Operating Cash Flows*
Aut moti e apital spending (1,696 )
Net cash flows from non-designated derivatives 134
Funded pension contributions 236
Separation payments 28
Other 52
Automotive Segment Operating Cash Flows $ 2,016
_________
For the period ended March 31, 2017
Cash flows from investing activities Automotive
Financial
Services
All Other,
Special Items,
& Adjustments
Consolidated
Capital spending $ (1,696 ) $ (10 ) $ — $ (1,706 )
Acquisitions of finance receivables and operating leases — (13,467 ) — (13,467 )
Collections of finance receivables and operating leases — 10,695 — 10,695
Purchases of equity and debt securities (6,994 ) (1,883 ) (1 ) (8,878 )
Sales and maturities of equity and debt securities 8,072 1,479 — 9,551
Settlements of derivatives 134 22 — 156
Other (4 ) 20 (6 ) 10
Investing activity (to)/from other segments (24 ) (3 ) 27 —
Net cash provided by/(used in) investing activities $ (512 ) $ (3,147 ) $ 20 $ (3,639 )
Cash flows from financing activities Automotive
Finan ial
Services
ll t r,
Special Items,
& Adjustments Consolidated
Cash dividends $ (7 5 $ — $ — $ (795 )
Purchases of Common Stock — — — —
Net changes in short-term debt ( 1 ) 709 — 658
Proceeds from issuance of other debt 10 13,243 — 13,253
Princip l paym ts on other debt (180 ) (11,731 ) — (11,911 )
Other (50 ) (35 ) — (85 )
Financing activity to/(from) other segments — 12 (12 ) —
Net cash provided by/(used in) financing activities $ (1,066 ) $ 2,198 $ (12 ) $ 1,120
Effect of exchange rate changes on cash and cash equivalents $ 45 $ 56 $ — $ 101
Ford Motor Company 1Q April 27, 2017 11
N O N - G A A P F I N A N C I A L M E A S U R E S T H AT S U P P L E M E N T G A A P M E A S U R E S
N E T I N C O M E R E C O N C I L I AT I O N T O A D J U S T E D P R E - TA X P R O F I T
We use both GAAP and non-GAAP financial measures for operational and financial decision making, and to assess
Company and segment business performance. The non-GAAP measures listed below are intended to be considered by
users as supplemental information to their equivalent GAAP measures, to aid investors in better understanding our
financial results. We believe that these non-GAAP measures provide useful perspective on underlying business results
and trends, and a means to assess our period-over-period results. These non-GAAP measures should not be considered
as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. These non-
GAAP measures may not be the same as similarly titled measures used by other companies due to possible differences in
method and in items or events being adjusted.
Total Company Adjusted Pre-tax Profit (Most Comparable GAAP Measure: Net income attributable to Ford) – The non-
GAAP measure is useful to management and investors because it allows users to evaluate our pre-tax results excluding
pre-tax special items. Pre-tax special items consist of (i) pension and OPEB remeasurement gains and losses that are not
reflective of our underlying business results, (ii) significant restructuring actions related to our efforts to match production
capacity and cost structure to market demand and changing model mix, and (iii) other items that we do not necessarily
consider to be indicative of earnings from ongoing operating activities. When we provide guidance for adjusted pre-tax
profit, we do not provide guidance on a net income basis because the GAAP measure will include potentially significant
special items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end, specifically
pension and OPEB remeasurement gains and losses.
Adjusted Earnings Per Share (Most Comparable GAAP Measure: Earnings Per Share) – Measure of Company’s diluted net
earnings per share adjusted for impact of pre-tax special items (described above), and tax special items. The measure
provides investors with useful information to evaluate performance of our business excluding items not indicative of
underlying run rate of our business. When we provide guidance for adjusted earnings per share, we do not provide
guidance on an earnings per share basis because the GAAP measure will include potentially significant special items that
have not yet occurred and are difficult to predict with reasonable certainty prior to year-end, specifically pension and
OPEB remeasurement gains and losses.
The following tables provide reconciliations of non-GAAP measures to the most comparable GAAP measures.
(Mils) Memo:
2016 2017 FY 2016
N t in ome / (Loss) attributable to Ford (GAAP) 2,452$ 1,587$ 4,596$
Inc / (Loss) attributable to non-controlling interests 3 7 11
N t in ome / (Loss) 2,455$ 1,594$ 4,607$
Le : (Provision for) / Benefit from income taxes (1,196) (649) (2,189)
Income / (Loss) before income taxes 3,651$ 2,243$ 6,796$
Less: Special items pre-tax (186) 24 (3,579)
Adjusted pre-tax profit (Non-GAAP) 3,837$ 2,219$ 10,375$
1Q
Ford Motor Company 1Q April 27, 2017 12
T O TA L C O M PA N Y S P E C I A L I T E M S
E A R N I N G S P E R S H A R E R E C O N C I L I AT I O N T O A D J U S T E D E A R N I N G S P E R S H A R E
* Includes related tax effect on special items and tax special items
(Mils)
2016 2017
Separation-related actions (174)$ (22)$
Other Items
San Luis Potosi plant cancellation -$ 46$
Japan, Indonesia market closure (12) -
Total other items (12)$ 46$
Total pre-tax special items (186)$ 24$
Tax special items (66)$ (15)$
Memo:
Special items impact on earnings per share* (0.07)$ 0.01$
1Q
1Q 2017
Diluted After-Tax Results (Mils)
Diluted after-tax results (GAAP) 1,587$
Less: Impact of re-tax and tax special items 9
Adjusted net income – diluted (Non-GAAP) 1,578$
Basic and Diluted Shares (Mils)
Basic shares (average shares outstanding) 3,976
Net dilutive options and unvested restricted stock units 23
Diluted shares 3,999
Earnings per share – diluted (GAAP) 0.40$
Less: Net impact of adjustments 0.01
Adjusted earnings per share – diluted (Non-GAAP) 0.39$