(Mark One) | |
þ | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended March 31, 2019 | |
or | |
o | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the transition period from __________ to __________ | |
Commission file number 1-3950 |
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) |
Table of Contents | Page | ||
Part I - Financial Information | |||
Item 1 | Financial Statements | ||
Consolidated Income Statement | |||
Consolidated Statement of Comprehensive Income | |||
Consolidated Balance Sheet | |||
Condensed Consolidated Statement of Cash Flows | |||
Consolidated Statement of Equity | |||
Notes to the Financial Statements | |||
Item 2 | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||
Overview | |||
Results of Operations | |||
Automotive Segment | |||
Mobility Segment | |||
Ford Credit Segment | |||
Corporate Other | |||
Interest on Debt | |||
Special Items | |||
Taxes | |||
Liquidity and Capital Resources | |||
Credit Ratings | |||
Outlook | |||
Non-GAAP Financial Measure Reconciliations | |||
Supplemental Information | |||
Cautionary Note on Forward-Looking Statements | |||
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 6 | Exhibits | ||
Signature |
For the periods ended March 31, | |||||||
2018 | 2019 | ||||||
First Quarter | |||||||
(unaudited) | |||||||
Revenues | |||||||
Automotive | $ | 39,012 | $ | 37,239 | |||
Ford Credit | 2,943 | 3,097 | |||||
Mobility | 4 | 6 | |||||
Total revenues (Note 3) | 41,959 | 40,342 | |||||
Costs and expenses | |||||||
Cost of sales | 35,753 | 33,942 | |||||
Selling, administrative, and other expenses | 2,747 | 2,843 | |||||
Ford Credit interest, operating, and other expenses | 2,338 | 2,355 | |||||
Total costs and expenses | 40,838 | 39,140 | |||||
Interest expense on Automotive debt | 275 | 231 | |||||
Interest expense on Other debt | 14 | 14 | |||||
Other income/(loss), net (Note 4) | 863 | 628 | |||||
Equity in net income of affiliated companies | 224 | 25 | |||||
Income before income taxes | 1,919 | 1,610 | |||||
Provision for/(Benefit from) income taxes | 174 | 427 | |||||
Net income | 1,745 | 1,183 | |||||
Less: Income/(Loss) attributable to noncontrolling interests | 9 | 37 | |||||
Net income attributable to Ford Motor Company | $ | 1,736 | $ | 1,146 | |||
EARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 6) | |||||||
Basic income | $ | 0.44 | $ | 0.29 | |||
Diluted income | 0.43 | 0.29 |
For the periods ended March 31, | |||||||
2018 | 2019 | ||||||
First Quarter | |||||||
(unaudited) | |||||||
Net income | $ | 1,745 | $ | 1,183 | |||
Other comprehensive income/(loss), net of tax (Note 20) | |||||||
Foreign currency translation | 295 | 243 | |||||
Marketable securities | (47 | ) | 63 | ||||
Derivative instruments | 33 | (446 | ) | ||||
Pension and other postretirement benefits | 8 | 5 | |||||
Total other comprehensive income/(loss), net of tax | 289 | (135 | ) | ||||
Comprehensive income | 2,034 | 1,048 | |||||
Less: Comprehensive income/(loss) attributable to noncontrolling interests | 8 | 37 | |||||
Comprehensive income attributable to Ford Motor Company | $ | 2,026 | $ | 1,011 | |||
December 31, 2018 | March 31, 2019 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and cash equivalents (Note 7) | $ | 16,718 | $ | 20,848 | |||
Marketable securities (Note 7) | 17,233 | 16,882 | |||||
Ford Credit finance receivables, net (Note 8) | 54,353 | 55,444 | |||||
Trade and other receivables, less allowances of $94 and $98 | 11,195 | 12,016 | |||||
Inventories (Note 10) | 11,220 | 12,333 | |||||
Other assets | 3,930 | 3,672 | |||||
Total current assets | 114,649 | 121,195 | |||||
Ford Credit finance receivables, net (Note 8) | 55,544 | 54,332 | |||||
Net investment in operating leases (Note 11) | 29,119 | 29,229 | |||||
Net property | 36,178 | 36,145 | |||||
Equity in net assets of affiliated companies | 2,709 | 2,605 | |||||
Deferred income taxes | 10,412 | 10,316 | |||||
Other assets | 7,929 | 9,459 | |||||
Total assets | $ | 256,540 | $ | 263,281 | |||
LIABILITIES | |||||||
Payables | $ | 21,520 | $ | 23,325 | |||
Other liabilities and deferred revenue (Note 13) | 20,556 | 21,364 | |||||
Automotive debt payable within one year (Note 16) | 2,314 | 2,523 | |||||
Ford Credit debt payable within one year (Note 16) | 51,179 | 51,895 | |||||
Other debt payable within one year (Note 16) | — | 130 | |||||
Total current liabilities | 95,569 | 99,237 | |||||
Other liabilities and deferred revenue (Note 13) | 23,588 | 24,216 | |||||
Automotive long-term debt (Note 16) | 11,233 | 11,087 | |||||
Ford Credit long-term debt (Note 16) | 88,887 | 91,055 | |||||
Other long-term debt (Note 16) | 600 | 470 | |||||
Deferred income taxes | 597 | 647 | |||||
Total liabilities | 220,474 | 226,712 | |||||
Redeemable noncontrolling interest (Note 19) | 100 | 135 | |||||
EQUITY | |||||||
Common Stock, par value $.01 per share (4,011 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 | 22,006 | 22,026 | |||||
Retained earnings | 22,668 | 23,226 | |||||
Accumulated other comprehensive income/(loss) (Note 20) | (7,366 | ) | (7,501 | ) | |||
Treasury stock | (1,417 | ) | (1,394 | ) | |||
Total equity attributable to Ford Motor Company | 35,932 | 36,398 | |||||
Equity attributable to noncontrolling interests | 34 | 36 | |||||
Total equity | 35,966 | 36,434 | |||||
Total liabilities and equity | $ | 256,540 | $ | 263,281 |
The following table includes assets to be used to settle liabilities of the consolidated variable interest entities (“VIEs”). These assets and liabilities are included in the consolidated balance sheet above. | |||||||
December 31, 2018 | March 31, 2019 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 2,728 | $ | 2,990 | |||
Ford Credit finance receivables, net | 58,662 | 60,745 | |||||
Net investment in operating leases | 16,332 | 16,013 | |||||
Other assets | 27 | 14 | |||||
LIABILITIES | |||||||
Other liabilities and deferred revenue | $ | 24 | $ | 45 | |||
Debt | 53,269 | 52,248 |
For the periods ended March 31, | |||||||
2018 | 2019 | ||||||
First Quarter | |||||||
(unaudited) | |||||||
Cash flows from operating activities | |||||||
Net cash provided by/(used in) operating activities | $ | 3,514 | $ | 3,544 | |||
Cash flows from investing activities | |||||||
Capital spending | (1,779 | ) | (1,633 | ) | |||
Acquisitions of finance receivables and operating leases | (15,683 | ) | (12,595 | ) | |||
Collections of finance receivables and operating leases | 12,956 | 12,336 | |||||
Purchases of marketable and other securities | (7,867 | ) | (3,923 | ) | |||
Sales and maturities of marketable and other securities | 6,040 | 4,441 | |||||
Settlements of derivatives | (61 | ) | (14 | ) | |||
Other | (150 | ) | 54 | ||||
Net cash provided by/(used in) investing activities | (6,544 | ) | (1,334 | ) | |||
Cash flows from financing activities | |||||||
Cash payments for dividends and dividend equivalents | (1,113 | ) | (597 | ) | |||
Purchases of common stock | (89 | ) | — | ||||
Net changes in short-term debt | (909 | ) | 420 | ||||
Proceeds from issuance of long-term debt | 16,953 | 15,411 | |||||
Principal payments on long-term debt | (12,360 | ) | (13,277 | ) | |||
Other | (68 | ) | (84 | ) | |||
Net cash provided by/(used in) financing activities | 2,414 | 1,873 | |||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 115 | 29 | |||||
Net increase/(decrease) in cash, cash equivalents, and restricted cash | $ | (501 | ) | $ | 4,112 | ||
Cash, cash equivalents, and restricted cash at January 1 (Note 7) | $ | 18,638 | $ | 16,907 | |||
Net increase/(decrease) in cash, cash equivalents, and restricted cash | (501 | ) | 4,112 | ||||
Cash, cash equivalents, and restricted cash at March 31 (Note 7) | $ | 18,137 | $ | 21,019 |
Equity Attributable to Ford Motor Company | |||||||||||||||||||||||||||||||
Capital Stock | Cap. in Excess of Par Value of Stock | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) (Note 20) | Treasury Stock | Total | Equity Attributable to Non-controlling Interests | Total Equity | ||||||||||||||||||||||||
Balance at December 31, 2017 | $ | 41 | $ | 21,843 | $ | 21,906 | $ | (6,959 | ) | $ | (1,253 | ) | $ | 35,578 | $ | 28 | $ | 35,606 | |||||||||||||
Net income | — | — | 1,736 | — | — | 1,736 | 9 | 1,745 | |||||||||||||||||||||||
Other comprehensive income/(loss), net of tax | — | — | — | 290 | — | 290 | (1 | ) | 289 | ||||||||||||||||||||||
Common stock issued (including share-based compensation impacts) | — | (2 | ) | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||||||
Treasury stock/other | — | — | — | — | (89 | ) | (89 | ) | — | (89 | ) | ||||||||||||||||||||
Cash dividends declared (a) | — | — | (1,113 | ) | — | — | (1,113 | ) | — | (1,113 | ) | ||||||||||||||||||||
Balance at March 31, 2018 | $ | 41 | $ | 21,841 | $ | 22,529 | $ | (6,669 | ) | $ | (1,342 | ) | $ | 36,400 | $ | 36 | $ | 36,436 | |||||||||||||
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 of tax | — | — | — | (135 | ) | — | (135 | ) | — | (135 | ) | ||||||||||||||||||||
Common stock issued (including share-based compensation impacts) | — | 20 | — | — | — | 20 | — | 20 | |||||||||||||||||||||||
Treasury stock/other | — | — | — | — | 23 | 23 | (35 | ) | (12 | ) | |||||||||||||||||||||
Dividends and dividend equivalents declared (a) | — | — | (601 | ) | — | — | (601 | ) | — | (601 | ) | ||||||||||||||||||||
Balance at March 31, 2019 | $ | 41 | $ | 22,026 | $ | 23,226 | $ | (7,501 | ) | $ | (1,394 | ) | $ | 36,398 | $ | 36 | $ | 36,434 |
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 | |
Note 9 | Ford Credit Allowance for Credit Losses | |
Note 10 | Inventories | |
Note 11 | Net Investment in Operating Leases | |
Note 12 | Goodwill | |
Note 13 | Other Liabilities and Deferred Revenue | |
Note 14 | Retirement Benefits | |
Note 15 | Lease Commitments | |
Note 16 | Debt | |
Note 17 | Derivative Financial Instruments and Hedging Activities | |
Note 18 | Employee Separation Actions and Exit and Disposal Activities | |
Note 19 | Redeemable Noncontrolling Interest | |
Note 20 | Accumulated Other Comprehensive Income/(Loss) | |
Note 21 | Commitments and Contingencies | |
Note 22 | Segment Information |
Balance at December 31, 2018 | Adjustments due to ASU 2016-02 | Balance at January 1, 2019 | ||||||||||
Balance sheet | ||||||||||||
Assets | ||||||||||||
Other assets, current | $ | 3,930 | $ | (8 | ) | $ | 3,922 | |||||
Other assets, non-current | 7,929 | 1,324 | 9,253 | |||||||||
Deferred income taxes | 10,412 | (4 | ) | 10,408 | ||||||||
Liabilities | ||||||||||||
Other liabilities and deferred revenue, current | 20,556 | 316 | 20,872 | |||||||||
Other liabilities and deferred revenue, non-current | 23,588 | 983 | 24,571 | |||||||||
Equity | ||||||||||||
Retained earnings | 22,668 | 13 | 22,681 |
ASU | Effective Date | ||
2018-17 | Targeted Improvements to Related Party Guidance for Variable Interest Entities | January 1, 2019 | |
2018-16 | Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes | January 1, 2019 | |
2018-13 | Fair Value Measurement - Changes to the Disclosure Requirements for Fair Value Measurement | January 1, 2019 | |
2018-08 | Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made | January 1, 2019 | |
2018-07 | Stock Compensation - Improvements to Nonemployee Share-Based Payment Accounting | January 1, 2019 | |
2018-02 | Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (a) | January 1, 2019 |
First Quarter 2018 | |||||||||||||||
Automotive | Mobility | Ford Credit | Consolidated | ||||||||||||
Vehicles, parts, and accessories | $ | 37,417 | $ | — | $ | — | $ | 37,417 | |||||||
Used vehicles | 928 | — | — | 928 | |||||||||||
Extended service contracts | 329 | — | — | 329 | |||||||||||
Other revenue | 219 | 4 | 55 | 278 | |||||||||||
Revenues from sales and services | 38,893 | 4 | 55 | 38,952 | |||||||||||
Leasing income | 119 | — | 1,415 | 1,534 | |||||||||||
Financing income | — | — | 1,432 | 1,432 | |||||||||||
Insurance income | — | — | 41 | 41 | |||||||||||
Total revenues | $ | 39,012 | $ | 4 | $ | 2,943 | $ | 41,959 | |||||||
First Quarter 2019 | |||||||||||||||
Automotive | Mobility | Ford Credit | Consolidated | ||||||||||||
Vehicles, parts, and accessories | $ | 35,576 | $ | — | $ | — | $ | 35,576 | |||||||
Used vehicles | 1,020 | — | — | 1,020 | |||||||||||
Extended service contracts | 333 | — | — | 333 | |||||||||||
Other revenue | 213 | 6 | 51 | 270 | |||||||||||
Revenues from sales and services | 37,142 | 6 | 51 | 37,199 | |||||||||||
Leasing income | 97 | — | 1,477 | 1,574 | |||||||||||
Financing income | — | — | 1,528 | 1,528 | |||||||||||
Insurance income | — | — | 41 | 41 | |||||||||||
Total revenues | $ | 37,239 | $ | 6 | $ | 3,097 | $ | 40,342 |
First Quarter | |||||||
2018 | 2019 | ||||||
Net periodic pension and other postretirement employee benefits (OPEB) income/(cost), excluding service cost | $ | 477 | $ | 272 | |||
Investment-related interest income | 146 | 203 | |||||
Interest income/(expense) on income taxes | 1 | (20 | ) | ||||
Realized and unrealized gains/(losses) on cash equivalents, marketable securities, and other securities | (5 | ) | 67 | ||||
Gains/(Losses) on changes in investments in affiliates | 58 | 3 | |||||
Royalty income | 143 | 84 | |||||
Other | 43 | 19 | |||||
Total | $ | 863 | $ | 628 |
First Quarter | |||||||
2018 | 2019 | ||||||
Basic and Diluted Income Attributable to Ford Motor Company | |||||||
Basic income | $ | 1,736 | $ | 1,146 | |||
Diluted income | 1,736 | 1,146 | |||||
Basic and Diluted Shares | |||||||
Basic shares (average shares outstanding) | 3,974 | 3,973 | |||||
Net dilutive options, unvested restricted stock units, and unvested restricted stock shares | 23 | 24 | |||||
Diluted shares | 3,997 | 3,997 |
December 31, 2018 | |||||||||||||||||
Fair Value Level | Automotive | Mobility | Ford Credit | Consolidated | |||||||||||||
Cash and cash equivalents | |||||||||||||||||
U.S. government | 1 | $ | 220 | $ | — | $ | 139 | $ | 359 | ||||||||
U.S. government agencies | 2 | 496 | — | 25 | 521 | ||||||||||||
Non-U.S. government and agencies | 2 | 169 | — | 114 | 283 | ||||||||||||
Corporate debt | 2 | 174 | — | 884 | 1,058 | ||||||||||||
Total marketable securities classified as cash equivalents | 1,059 | — | 1,162 | 2,221 | |||||||||||||
Cash, time deposits, and money market funds | 5,999 | 53 | 8,445 | 14,497 | |||||||||||||
Total cash and cash equivalents | $ | 7,058 | $ | 53 | $ | 9,607 | $ | 16,718 | |||||||||
Marketable securities | |||||||||||||||||
U.S. government | 1 | $ | 3,014 | $ | — | $ | 289 | $ | 3,303 | ||||||||
U.S. government agencies | 2 | 1,953 | — | 65 | 2,018 | ||||||||||||
Non-U.S. government and agencies | 2 | 4,674 | — | 610 | 5,284 | ||||||||||||
Corporate debt | 2 | 5,614 | — | 198 | 5,812 | ||||||||||||
Equities (a) | 1 | 424 | — | — | 424 | ||||||||||||
Other marketable securities | 2 | 246 | — | 146 | 392 | ||||||||||||
Total marketable securities | $ | 15,925 | $ | — | $ | 1,308 | $ | 17,233 | |||||||||
Restricted cash | $ | 16 | $ | 33 | $ | 140 | $ | 189 | |||||||||
March 31, 2019 | |||||||||||||||||
Fair Value Level | Automotive | Mobility | Ford Credit | Consolidated | |||||||||||||
Cash and cash equivalents | |||||||||||||||||
U.S. government | 1 | $ | 1,044 | $ | — | $ | 1,112 | $ | 2,156 | ||||||||
U.S. government agencies | 2 | 325 | — | 599 | 924 | ||||||||||||
Non-U.S. government and agencies | 2 | 658 | — | 394 | 1,052 | ||||||||||||
Corporate debt | 2 | 484 | — | 639 | 1,123 | ||||||||||||
Total marketable securities classified as cash equivalents | 2,511 | — | 2,744 | 5,255 | |||||||||||||
Cash, time deposits, and money market funds | 6,481 | 123 | 8,989 | 15,593 | |||||||||||||
Total cash and cash equivalents | $ | 8,992 | $ | 123 | $ | 11,733 | $ | 20,848 | |||||||||
Marketable securities | |||||||||||||||||
U.S. government | 1 | $ | 2,769 | $ | — | $ | 241 | $ | 3,010 | ||||||||
U.S. government agencies | 2 | 1,940 | — | 40 | 1,980 | ||||||||||||
Non-U.S. government and agencies | 2 | 4,219 | — | 803 | 5,022 | ||||||||||||
Corporate debt | 2 | 5,375 | — | 556 | 5,931 | ||||||||||||
Equities (a) | 1 | 478 | — | — | 478 | ||||||||||||
Other marketable securities | 2 | 255 | — | 206 | 461 | ||||||||||||
Total marketable securities | $ | 15,036 | $ | — | $ | 1,846 | $ | 16,882 | |||||||||
Restricted cash | $ | 6 | $ | 44 | $ | 121 | $ | 171 |
December 31, 2018 | |||||||||||||||||||||||||||
Fair Value of Securities with Contractual Maturities | |||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Within 1 Year | After 1 Year through 5 Years | After 5 Years | |||||||||||||||||||||
Automotive | |||||||||||||||||||||||||||
U.S. government | $ | 2,933 | $ | 5 | $ | (10 | ) | $ | 2,928 | $ | 1,714 | $ | 1,214 | $ | — | ||||||||||||
U.S. government agencies | 1,920 | — | (18 | ) | 1,902 | 797 | 1,087 | 18 | |||||||||||||||||||
Non-U.S. government and agencies | 3,841 | 4 | (37 | ) | 3,808 | 194 | 3,614 | — | |||||||||||||||||||
Corporate debt | 4,010 | 3 | (33 | ) | 3,980 | 1,148 | 2,830 | 2 | |||||||||||||||||||
Other marketable securities | 207 | — | — | 207 | 1 | 134 | 72 | ||||||||||||||||||||
Total | $ | 12,911 | $ | 12 | $ | (98 | ) | $ | 12,825 | $ | 3,854 | $ | 8,879 | $ | 92 | ||||||||||||
March 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 | $ | 2,914 | $ | 7 | $ | (5 | ) | $ | 2,916 | $ | 1,884 | $ | 1,027 | $ | 5 | ||||||||||||
U.S. government agencies | 1,972 | 1 | (10 | ) | 1,963 | 1,106 | 851 | 6 | |||||||||||||||||||
Non-U.S. government and agencies | 3,639 | 8 | (17 | ) | 3,630 | 362 | 3,263 | 5 | |||||||||||||||||||
Corporate debt | 5,154 | 21 | (9 | ) | 5,166 | 2,199 | 2,964 | 3 | |||||||||||||||||||
Other marketable securities | 212 | 1 | — | 213 | 1 | 135 | 77 | ||||||||||||||||||||
Total | $ | 13,891 | $ | 38 | $ | (41 | ) | $ | 13,888 | $ | 5,552 | $ | 8,240 | $ | 96 |
First Quarter | |||||||
2018 | 2019 | ||||||
Automotive | |||||||
Sales proceeds | $ | 1,339 | $ | 1,142 | |||
Gross realized gains | — | 2 | |||||
Gross realized losses | 6 | 5 |
December 31, 2018 | |||||||||||||||||||||||
Less than 1 year | 1 Year or Greater | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
Automotive | |||||||||||||||||||||||
U.S. government | $ | 199 | $ | (1 | ) | $ | 1,637 | $ | (9 | ) | $ | 1,836 | $ | (10 | ) | ||||||||
U.S. government agencies | 193 | (1 | ) | 1,596 | (17 | ) | 1,789 | (18 | ) | ||||||||||||||
Non-U.S. government and agencies | 341 | (1 | ) | 2,445 | (36 | ) | 2,786 | (37 | ) | ||||||||||||||
Corporate debt | 1,816 | (16 | ) | 856 | (17 | ) | 2,672 | (33 | ) | ||||||||||||||
Other marketable securities | 125 | — | — | — | 125 | — | |||||||||||||||||
Total | $ | 2,674 | $ | (19 | ) | $ | 6,534 | $ | (79 | ) | $ | 9,208 | $ | (98 | ) | ||||||||
March 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 | $ | 324 | $ | — | $ | 685 | $ | (5 | ) | $ | 1,009 | $ | (5 | ) | |||||||||
U.S. government agencies | 90 | — | 1,524 | (10 | ) | 1,614 | (10 | ) | |||||||||||||||
Non-U.S. government and agencies | 25 | — | 2,171 | (17 | ) | 2,196 | (17 | ) | |||||||||||||||
Corporate debt | 233 | (1 | ) | 1,110 | (8 | ) | 1,343 | (9 | ) | ||||||||||||||
Other marketable securities | 22 | — | 48 | — | 70 | — | |||||||||||||||||
Total | $ | 694 | $ | (1 | ) | $ | 5,538 | $ | (40 | ) | $ | 6,232 | $ | (41 | ) |
December 31, 2018 | March 31, 2019 | ||||||
Cash and cash equivalents | $ | 16,718 | $ | 20,848 | |||
Restricted cash (a) | 189 | 171 | |||||
Total cash, cash equivalents, and restricted cash | $ | 16,907 | $ | 21,019 |
(a) | Included in Other assets in the non-current assets section of our consolidated balance sheet. |
December 31, 2018 | March 31, 2019 | ||||||
Consumer | |||||||
Retail installment contracts, gross | $ | 70,874 | $ | 69,258 | |||
Finance leases, gross | 8,748 | 9,011 | |||||
Retail financing, gross | 79,622 | 78,269 | |||||
Unearned interest supplements | (3,508 | ) | (3,478 | ) | |||
Consumer finance receivables | 76,114 | 74,791 | |||||
Non-Consumer | |||||||
Dealer financing | 34,372 | 35,498 | |||||
Non-Consumer finance receivables | 34,372 | 35,498 | |||||
Total recorded investment | $ | 110,486 | $ | 110,289 | |||
Recorded investment in finance receivables | $ | 110,486 | $ | 110,289 | |||
Allowance for credit losses | (589 | ) | (513 | ) | |||
Finance receivables, net | $ | 109,897 | $ | 109,776 | |||
Current portion | $ | 54,353 | $ | 55,444 | |||
Non-current portion | 55,544 | 54,332 | |||||
Finance receivables, net | $ | 109,897 | $ | 109,776 | |||
Net finance receivables subject to fair value (a) | $ | 101,471 | $ | 101,122 | |||
Fair value (b) | 100,877 | 100,823 |
(a) | Net finance receivables subject to fair value exclude finance leases. Previously, certain consumer financing products in Europe were classified as retail installment contracts. We now classify these products as finance leases. Comparative information has been revised to reflect this change. |
(b) | The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy. |
March 31, 2019 | ||||
Within one year | $ | 2,064 | ||
After one year and within two years | 1,955 | |||
After two years and within three years | 1,646 | |||
After three years and within four years | 691 | |||
After four years and within five years | 124 | |||
After five years | 2 | |||
Total future cash payments | 6,482 | |||
Less: Present value discount | (315 | ) | ||
Finance lease receivables | $ | 6,167 |
March 31, 2019 | ||||
Finance lease receivables | $ | 6,167 | ||
Unguaranteed residual assets | 2,713 | |||
Initial direct costs | 131 | |||
Finance leases, gross | 9,011 | |||
Unearned interest supplements from Ford and affiliated companies | (340 | ) | ||
Allowance for credit losses | (17 | ) | ||
Finance leases, net | $ | 8,654 |
December 31, 2018 | March 31, 2019 | ||||||
Consumer | |||||||
31-60 days past due | $ | 859 | $ | 563 | |||
61-90 days past due | 123 | 82 | |||||
91-120 days past due | 39 | 34 | |||||
Greater than 120 days past due | 39 | 40 | |||||
Total past due | 1,060 | 719 | |||||
Current | 75,054 | 74,072 | |||||
Consumer finance receivables | 76,114 | 74,791 | |||||
Non-Consumer | |||||||
Total past due | 76 | 81 | |||||
Current | 34,296 | 35,417 | |||||
Non-Consumer finance receivables | 34,372 | 35,498 | |||||
Total recorded investment | $ | 110,486 | $ | 110,289 |
• | Pass – current to 60 days past due; |
• | Special Mention – 61 to 120 days past due and in intensified collection status; and |
• | Substandard – greater than 120 days past due and for which the uncollectible portion of the receivables has already been charged off, as measured using the fair value of collateral less costs to sell. |
• | Group I – strong to superior financial metrics; |
• | Group II – fair to favorable financial metrics; |
• | Group III – marginal to weak financial metrics; and |
• | Group IV – poor financial metrics, including dealers classified as uncollectible. |
December 31, 2018 | March 31, 2019 | ||||||
Dealer Financing | |||||||
Group I | $ | 27,032 | $ | 28,097 | |||
Group II | 5,635 | 5,744 | |||||
Group III | 1,576 | 1,533 | |||||
Group IV | 129 | 124 | |||||
Total recorded investment | $ | 34,372 | $ | 35,498 |
First Quarter 2018 | |||||||||||
Consumer | Non-Consumer | Total | |||||||||
Allowance for credit losses | |||||||||||
Beginning balance | $ | 582 | $ | 15 | $ | 597 | |||||
Charge-offs | (131 | ) | (2 | ) | (133 | ) | |||||
Recoveries | 39 | 1 | 40 | ||||||||
Provision for credit losses | 92 | 2 | 94 | ||||||||
Other | 2 | — | 2 | ||||||||
Ending balance | $ | 584 | $ | 16 | $ | 600 | |||||
Analysis of ending balance of allowance for credit losses | |||||||||||
Collective impairment allowance | $ | 563 | $ | 15 | $ | 578 | |||||
Specific impairment allowance | 21 | 1 | 22 | ||||||||
Ending balance | 584 | 16 | 600 | ||||||||
Analysis of ending balance of finance receivables | |||||||||||
Collectively evaluated for impairment | $ | 75,846 | $ | 36,067 | $ | 111,913 | |||||
Specifically evaluated for impairment | 380 | 108 | 488 | ||||||||
Recorded investment | 76,226 | 36,175 | 112,401 | ||||||||
Ending balance, net of allowance for credit losses | $ | 75,642 | $ | 36,159 | $ | 111,801 |
First Quarter 2019 | |||||||||||
Consumer | Non-Consumer | Total | |||||||||
Allowance for credit losses | |||||||||||
Beginning balance | $ | 566 | $ | 23 | $ | 589 | |||||
Charge-offs | (137 | ) | (17 | ) | (154 | ) | |||||
Recoveries | 43 | 2 | 45 | ||||||||
Provision for credit losses | 24 | 9 | 33 | ||||||||
Other | — | — | — | ||||||||
Ending balance | $ | 496 | $ | 17 | $ | 513 | |||||
Analysis of ending balance of allowance for credit losses | |||||||||||
Collective impairment allowance | $ | 477 | $ | 16 | $ | 493 | |||||
Specific impairment allowance | 19 | 1 | 20 | ||||||||
Ending balance | 496 | 17 | 513 | ||||||||
Analysis of ending balance of finance receivables | |||||||||||
Collectively evaluated for impairment | $ | 74,432 | $ | 35,374 | $ | 109,806 | |||||
Specifically evaluated for impairment | 359 | 124 | 483 | ||||||||
Recorded investment | 74,791 | 35,498 | 110,289 | ||||||||
Ending balance, net of allowance for credit losses | $ | 74,295 | $ | 35,481 | $ | 109,776 |
December 31, 2018 | March 31, 2019 | ||||||
Raw materials, work-in-process, and supplies | $ | 4,536 | $ | 4,653 | |||
Finished products | 6,684 | 7,680 | |||||
Total inventories | $ | 11,220 | $ | 12,333 |
December 31, 2018 | March 31, 2019 | |||||||
Automotive Segment | ||||||||
Vehicles, net of depreciation | $ | 1,705 | $ | 1,656 | ||||
Ford Credit Segment | ||||||||
Vehicles and other equipment, at cost (a) | 33,557 | 33,551 | ||||||
Accumulated depreciation | (6,143 | ) | (5,978 | ) | ||||
Total Ford Credit Segment | 27,414 | 27,573 | ||||||
Total | $ | 29,119 | $ | 29,229 |
(a) | Includes Ford Credit’s operating lease assets of $16.3 billion and $16 billion at December 31, 2018 and March 31, 2019, respectively, which have been included in certain lease securitization transactions. These net investments in operating leases are available only for payment of the debt or other obligations issued or arising in the securitization transactions; they are not available to pay other obligations or the claims of other creditors. |
2019 | 2020 | 2021 | 2022 | 2023 | Total | |||||||||||||||||||
Minimum rentals on operating leases | $ | 4,708 | $ | 2,929 | $ | 1,083 | $ | 83 | $ | 6 | $ | 8,809 |
Within one year | After one year and within two years | After two years and within three years | After three years and within four years | After four years and within five years | Total |