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FORD MOTOR COMPANY AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
(in millions, except per share amounts)
For the periods ended September 30,
2016 2017 2016 2017
Third Quarter First Nine Months
(unaudited)
Revenues
Automotive $ 33,331 $ 33,646 $ 105,520 $ 107,234
Financial Services 2,612 2,802 7,626 8,209
Other — 3 — 7
Total revenues 35,943 36,451 113,146 115,450
Costs and expenses
Cost of sales 30,668 30,288 93,707 96,345
Selling, administrative, and other expenses 2,657 2,919 8,131 8,439
Financial Services interest, operating, and other expenses 2,200 2,273 6,518 6,722
Total costs and expenses 35,525 35,480 108,356 111,506
Interest expense on Automotive debt 238 284 650 840
Non-Financial Services other income/(loss), net 672 709 2,126 2,079
Financial Services other income/(loss), net 132 45 305 141
Equity in net income of affiliated companies 403 316 1,342 935
Income before income taxes 1,387 1,757 7,913 6,259
Provision for/(Benefit from) income taxes 426 186 2,525 1,044
Net income 961 1,571 5,388 5,215
Less: Income/(Loss) attributable to noncontrolling interests 4 7 9 22
Net income attributable to Ford Motor Company $ 957 $ 1,564 $ 5,379 $ 5,193
EARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK
Basic income $ 0.24 $ 0.39 $ 1.35 $ 1.31
Diluted income 0.24 0.39 1.35 1.30
Cash dividends declared 0.15 0.15 0.70 0.50
FORD MOTOR COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions)
December 31,
2016
September 30,
2017
(unaudited)
ASSETS
Cash and cash equivalents $ 15,905 $ 17,589
Marketable securities 22,922 20,492
Financial Services finance receivables, net 46,266 49,541
Trade and other receivables, less allowances of $392 and $407 11,102 10,277
Inventories 8,898 11,263
Other assets 3,368 3,570
Total current assets 108,461 112,732
Financial Services finance receivables, net 49,924 54,323
Net investment in operating leases 28,829 28,714
Net property 32,072 34,760
Equity in net assets of affiliated companies 3,304 3,344
Deferred income taxes 9,705 10,359
Other assets 5,656 7,041
Total assets $ 237,951 $ 251,273
LIABILITIES
Payables $ 21,296 $ 23,566
Other liabilities and deferred revenue 19,316 19,612
Automotive debt payable within one year 2,685 3,551
Financial Services debt payable within one year 46,984 47,623
Total current liabilities 90,281 94,352
Other liabilities and deferred revenue 24,395 24,819
Automotive long-term debt 13,222 12,633
Financial Services long-term debt 80,079 85,305
Deferred income taxes 691 804
Total liabilities 208,668 217,913
Redeemable noncontrolling interest 96 97
EQUITY
Common Stock, par value $.01 per share (3,986 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 21,804
Retained earnings 15,634 19,405
Accumulated other comprehensive income/(loss) (7,013 ) (6,759 )
Treasury stock (1,122 ) (1,253 )
Total equity attributable to Ford Motor Company 29,170 33,238
Equity attributable to noncontrolling interests 17 25
Total equity 29,187 33,263
Total liabilities and equity $ 237,951 $ 251,273
FORD MOTOR COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
For the periods ended September 30,
2016 2017
First Nine Months
(unaudited)
Cash flows from operating activities
Net cash provided by/(used in) operating activities $ 17,052 $ 14,949
Cash flows from investing activities
Capital spending (4,912 ) (4,936 )
Acquisitions of finance receivables and operating leases (43,746 ) (43,054 )
Collections of finance receivables and operating leases 30,254 32,988
Purchases of equity and debt securities (22,049 ) (20,550 )
Sales and maturities of equity and debt securities 22,022 22,953
Settlements of derivatives 330 62
Other 43 (5 )
Net cash provided by/(used in) investing activities (18,058 ) (12,542 )
Cash flows from financing activities
Cash dividends (2,780 ) (1,988 )
Purchases of common stock (145 ) (131 )
Net changes in short-term debt 1,200 1,899
Proceeds from issuance of other debt 31,956 30,557
Principal payments on other debt (30,019 ) (31,378 )
Other (102 ) (124 )
Net cash provided by/(used in) financing activities 110 (1,165 )
Effect of exchange rate changes on cash and cash equivalents (36 ) 442
Net increase/(decrease) in cash and cash equivalents $ (932 ) $ 1,684
Cash and cash equivalents at January 1 $ 14,272 $ 15,905
Net increase/(decrease) in cash and cash equivalents (932 ) 1,684
Cash and cash equivalents at September 30 $ 13,340 $ 17,589
Selected Income Statement Information. The following table provides supplemental income statement information, by
segment (in millions):
For the period ended September 30, 2017
Third Quarter
Automotive
Financial
Services
All Other,
Special Items,
& Adjustments Consolidated
Total revenues $ 33,646 $ 2,802 $ 3 $ 36,451
Total costs and expenses 32,987 2,273 220 35,480
Interest expense on Automotive debt — — 284 284
Other income/(loss), net 704 45 5 754
Equity in net income of affiliated companies 305 10 1 316
Income/(loss) before income taxes 1,668 584 (495 ) 1,757
Provision for/(Benefit from) income taxes 146 185 (145 ) 186
Net income/(Loss) 1,522 399 (350 ) 1,571
Less: Income/(Loss) attributable to noncontrolling interests 7 — — 7
Net income/(Loss) attributable to Ford Motor Company $ 1,515 $ 399 $ (350 ) $ 1,564
For the period ended September 30, 2017
First Nine Months
Automotive
Financial
Services
All Other,
Special Items,
& Adjustments Consolidated
Total revenues $ 107,234 $ 8,209 $ 7 $ 115,450
Total costs and expenses 104,282 6,722 502 111,506
Interest expense on Automotive debt — — 840 840
Other income/(loss), net 1,962 141 117 2,220
Equity in net income of affiliated companies 910 25 — 935
Income/(loss) before income taxes 5,824 1,653 (1,218 ) 6,259
Provision for/(Benefit from) income taxes 887 507 (350 ) 1,044
Net income/(Loss) 4,937 1,146 (868 ) 5,215
Less: Income/(Loss) attributable to noncontrolling interests 22 — — 22
Net income/(Loss) attributable to Ford Motor Company $ 4,915 $ 1,146 $ (868 ) $ 5,193
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 Balance Sheet Information. The following tables provide supplemental balance sheet information, by
segment (in millions):
September 30, 2017
Assets Automotive
Financial
Services
All Other &
Adjustments Consolidated
Cash and cash equivalents $ 8,753 $ 8,835 $ 1 $ 17,589
Marketable securities 17,391 3,101 — 20,492
Financial Services finance receivables, net — 49,541 — 49,541
Trade and other receivables, less allowances 4,443 5,834 — 10,277
Inventories 11,263 — — 11,263
Other assets 2,400 1,169 1 3,570
Receivable from other segments 34 1,537 (1,571 ) —
Total current assets 44,284 70,017 (1,569 ) 112,732
Financial Services finance receivables, net — 54,323 — 54,323
Net investment in operating leases 1,783 26,931 — 28,714
Net property 34,571 176 13 34,760
Equity in net assets of affiliated companies 3,238 106 — 3,344
Deferred income taxes 14,347 244 (4,232 ) 10,359
Other assets 5,311 1,660 70 7,041
Receivable from other segments — 1,156 (1,156 ) —
Total assets $ 103,534 $ 154,613 $ (6,874 ) $ 251,273
Liabilities Automotive
Financial
Services
All Other &
Adjustments Consolidated
Payables $ 22,341 $ 1,219 $ 6 $ 23,566
Other liabilities and deferred revenue 18,379 1,218 15 19,612
Automotive debt payable within one year 3,551 — — 3,551
Financial Services debt payable within one year — 47,623 — 47,623
Payable to other segments 1,534 — (1,534 ) —
Total current liabilities 45,805 50,060 (1,513 ) 94,352
Other liabilities and deferred revenue 23,663 1,155 1 24,819
Automotive long-term debt 12,633 — — 12,633
Financial Services long-term debt — 85,305 — 85,305
Deferred income taxes 169 4,867 (4,232 ) 804
Payable to other segments 1,146 — (1,146 ) —
Total liabilities $ 83,416 $ 141,387 $ (6,890 ) $ 217,913
Selected Cash Flow Information. The following tables provide supplemental cash flow information, by segment (in
millions):
For the period ended September 30, 2017
First Nine Months
Cash flows from operating activities Automotive
Financial
Services
All Other &
Adjustments Consolidated
Net cash provided by/(used in) operating activities $ 5,575 $ 9,418 $ (44 ) $ 14,949
Reconciling Adjustments to Automotive Segment Operating Cash Flows*
Automotive capital spending (4,901 )
Settlements of derivatives 110
Funded pension contributions 720
Separation payments 100
Other 28
Automotive Segment Operating Cash Flows $ 1,632
_________
* 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 September 30, 2017.
For the period ended September 30, 2017
First Nine Months
Cash flows from investing activities Automotive
Financial
Services
All Other &
Adjustments Consolidated
Capital spending $ (4,901 ) $ (35 ) $ — $ (4,936 )
Acquisitions of finance receivables and operating leases — (43,054 ) — (43,054 )
Collections of finance receivables and operating leases — 32,988 — 32,988
Purchases of equity and debt securities (16,188 ) (4,359 ) (3 ) (20,550 )
Sales and maturities of equity and debt securities 18,389 4,564 — 22,953
Settlements of derivatives 110 (48 ) — 62
Other (17 ) 18 (6 ) (5 )
Investing activity (to)/from other segments 286 — (286 ) —
Net cash provided by/(used in) investing activities $ (2,321 ) $ (9,926 ) $ (295 ) $ (12,542 )
Cash flows from financing activities Automotive
Financial
Services
All Other &
Adjustments Consolidated
Cash dividends $ (1,988 ) $ — $ — $ (1,988 )
Purchases of common stock (131 ) — — (131 )
Net changes in short-term debt 208 1,691 — 1,899
Proceeds from issuance of other debt 575 29,982 — 30,557
Principal payments on other debt (1,087 ) (30,291 ) — (31,378 )
Other (49 ) (75 ) — (124 )
Financing activity to/(from) other segments — (332 ) 332 —
Net cash provided by/(used in) financing activities $ (2,472 ) $ 975 $ 332 $ (1,165 )
Effect of exchange rate changes on cash and cash equivalents $ 151 $ 291 $ — $ 442
* 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, eparation pay ents, and other it ms that re considered operating cash flows under U.S. GAAP. The tabl
above quantifie th reconciling djustments to Net cash provided by/(used in) operating activities for the p riod ended September 30, 2017.
(Mils) Memo:
2016 2017 2016 2017 FY 2016
Net income / (Loss) attributable to Ford (GAAP) 957$ 1,564$ 5,379$ 5,193$ 4,596$
Income / (Loss) attributable to non-controlling interests 4 7 9 22 11
Net income / (Loss) 961$ 1,571$ 5,388$ 5,215$ 4,607$
Less: (Provision for) / Benefit from income taxes (426) (186) (2,525) (1,044) (2,189)
Income / (Loss) before income taxes 1,387$ 1,757$ 7,913$ 6,259$ 6,796$
Less: Special items pre-tax (26) (217) (330) (441) (3,579)
Adjusted pre-tax profit (Non-GAAP) 1,413$ 1,974$ 8,243$ 6,700$ 10,375$
3Q YTD
2017
3Q YTD
Diluted After-Tax Results (Mils)
Diluted after-tax results (GAAP) 1,564$ 5,193$
Less: Impact of pre-tax and tax special items (170) (363)
Adjusted net income – diluted (Non-GAAP) 1,734$ 5,556$
Basic and Diluted Shares (Mils)
Basic shares (average shares outstanding) 3,972 3,975
Net dilutive options and unvested restricted stock units 24 21
Diluted shares 3,996 3,996
Earnings per share – diluted (GAAP) 0.39$ 1.30$
Less: Net impact of adjustments (0.04) (0.09)
Adjusted earnings per share – diluted (Non-GAAP) 0.43$ 1.39$
2017 Memo:
3Q YTD FY 2016
Pre-Tax Results (Mils)
Income / (Loss) before income taxes (GAAP) 1,757$ 6,259$ 6,796$
Less: Impact of special items (217) (441) (3,579)
Adjusted pre-tax profit (Non-GAAP) 1,974$ 6,700$ 10,375$
Taxes (Mils)
(Provision for) / Benefit from income taxes (GAAP) (186)$ (1,044)$ (2,189)$
Less: Impact of special items 47 78 1,121
Adjusted (provision for) / benefit from income taxes (Non-GAAP) (233)$ (1,122)$ (3,310)$
Tax Rate (Pct)
Effective tax rate (GAAP) 10.6% 16.7% 32.2%
Adjusted effective tax rate (Non-GAAP) 11.8% 16.7% 31.9%
(Mils) Memo:
2016 2017 2016 2017 FY 2016
Pension and OPEB remeasurement gain / (loss) -$ -$ (11)$ -$ (2,996)$
Separation-related actions (17)$ (230)$ (293)$ (259)$ (304)$
Other Items
San Luis Potosi plant cancellation -$ (12)$ -$ 41$ (199)$
Japan, Indonesia market closure (9) - (26) - (80)
Next-generation Focus footprint change - 25 - (223) -
Total other items (9)$ 13$ (26)$ (182)$ (279)$
Total pre-tax special items (26)$ (217)$ (330)$ (441)$ (3,579)$
Tax special items (60)$ 47$ (127)$ 78$ 1,121$
Memo:
Special items impact on earnings per share* (0.02)$ (0.04)$ (0.11)$ (0.09)$ (0.61)$
3Q YTD
For the periods ended September 30,
2016 2017 2016 2017
Third Quarter First Nine Months
(unaudited)
Financing revenue
Operating leases $ 1,409 $ 1,394 $ 4,115 $ 4,141
Retail financing 780 891 2,273 2,518
Dealer financing 450 462 1,333 1,389
Other 10 17 29 51
Total financing revenue 2,649 2,764 7,750 8,099
Depreciation on vehicles subject to operating leases (1,085 ) (989 ) (3,174 ) (3,090 )
Interest expense (697 ) (810 ) (2,030 ) (2,308 )
Net financing margin 867 965 2,546 2,701
Other revenue
Insurance premiums earned 38 38 118 120
Fee based revenue and other — 61 — 177
Total financing margin and other revenue 905 1,064 2,664 2,998
Expenses
Operating expenses 287 324 891 930
Provision for credit losses 138 169 403 420
Insurance expenses 22 28 113 121
Total expenses 447 521 1,407 1,471
Other income, net 109 57 224 173
Income before income taxes 567 600 1,481 1,700
Provision for income taxes 181 186 441 507
Net income $ 386 $ 414 $ 1,040 $ 1,193
FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
(in millions)
)
)
December 31,
2016
September 30,
2017
(unaudited)
ASSETS
Cash and cash equivalents $ 8,077 $ 8,835
Marketable securities 3,280 3,101
Finance receivables, net 102,981 110,597
Net investment in operating leases 27,209 26,931
Notes and accounts receivable from affiliated companies 811 957
Derivative financial instruments 909 982
Other assets 2,822 3,075
Total assets $ 146,089 $ 154,478
LIABILITIES
Accounts payable
Customer deposits, dealer reserves, and other $ 1,065 $ 1,236
Affiliated companies 336 705
Total accounts payable 1,401 1,941
Debt 126,492 132,380
Deferred income taxes 3,230 3,633
Derivative financial instruments 166 420
Other liabilities and deferred income 1,997 2,020
Total liabilities 133,286 140,394
SHAREHOLDER’S INTEREST
Shareholder’s interest 5,227 5,227
Accumulated other comprehensive income/(loss) (890 ) (405 )
Retained earnings 8,466 9,262
Total shareholder’s interest attributable to Ford Motor Credit Company 12,803 14,084
Shareholder’s interest attributable to noncontrolling interests — —
Total shareholder’s interest 12,803 14,084
Total liabilities and shareholder’s interest $ 146,089 $ 154,478
FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions)
FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
For the periods ended September 30,
2016 2017
First Nine Months
(unaudited)
Cash flows from operating activities
Net cash provided by/(used in) operating activities $ 4,807 $ 4,451
Cash flows from investing activities
Purchases of finance receivables (29,605 ) (30,543 )
Collections of finance receivables 24,174 27,254
Purchases of operating lease vehicles (10,974 ) (9,935 )
Liquidations of operating lease vehicles 6,090 6,623
Net change in wholesale receivables and other short-duration receivables 836 1,560
Purchases of marketable securities (5,794 ) (4,359 )
Proceeds from sales and maturities of marketable securities 4,368 4,564
Settlements of derivatives 8 (48 )
All other investing activities (152 ) (20 )
Net cash provided by/(used in) investing activities (11,049 ) (4,904 )
Cash flows from financing activities
Proceeds from issuances of long-term debt 31,789 29,982
Principal payments on long-term debt (29,499 ) (30,291 )
Change in short-term debt, net 905 1,709
Cash distributions to parent — (406 )
All other financing activities (90 ) (74 )
Net cash provided by/(used in) financing activities 3,105 920
Effect of exchange rate changes on cash and cash equivalents (74 ) 291
Net increase/(decrease) in cash and cash equivalents $ (3,211 ) $ 758
Cash and cash equivalents at January 1 $ 8,886 $ 8,077
Net increase/(decrease) in cash and cash equivalents (3,211 ) 758
Cash and cash equivalents at September 30 $ 5,675 $ 8,835