(State of incorporation) | (I.R.S. Employer Identification No.) | ||
(Address of principal executive offices) | (Zip code) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||
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) | $ | $ | ( | ) | |||
Depreciation and tooling amortization | |||||||
Other amortization | ( | ) | ( | ) | |||
Held-for-sale impairment charges | |||||||
Provision for credit and insurance losses | |||||||
Pension and other post-retirement employee benefits (“OPEB”) expense/(income) | ( | ) | |||||
Equity investment dividends received in excess of (earnings)/losses | |||||||
Foreign currency adjustments | ( | ) | |||||
Net (gain)/loss on changes in investments in affiliates | ( | ) | ( | ) | |||
Stock compensation | |||||||
Provision for deferred income taxes | |||||||
Decrease/(Increase) in finance receivables (wholesale and other) | |||||||
Decrease/(Increase) in accounts receivable and other assets | ( | ) | |||||
Decrease/(Increase) in inventory | ( | ) | |||||
Increase/(Decrease) in accounts payable and accrued and other liabilities | ( | ) | |||||
Other | ( | ) | |||||
Net cash provided by/(used in) operating activities | |||||||
Cash flows from investing activities | |||||||
Capital spending | ( | ) | ( | ) | |||
Acquisitions of finance receivables and operating leases | ( | ) | ( | ) | |||
Collections of finance receivables and operating leases | |||||||
Proceeds from sale of business (Note 17) | |||||||
Purchases of marketable securities and other investments | ( | ) | ( | ) | |||
Sales and maturities of marketable securities and other investments | |||||||
Settlements of derivatives | |||||||
Other | |||||||
Net cash provided by/(used in) investing activities | ( | ) | ( | ) | |||
Cash flows from financing activities | |||||||
Cash payments for dividends and dividend equivalents | ( | ) | ( | ) | |||
Purchases of common stock | |||||||
Net changes in short-term debt | ( | ) | |||||
Proceeds from issuance of long-term debt | |||||||
Principal payments on long-term debt | ( | ) | ( | ) | |||
Other | ( | ) | ( | ) | |||
Net cash provided by/(used in) financing activities | ( | ) | |||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | ( | ) | |||||
Net increase/(decrease) in cash, cash equivalents, and restricted cash | $ | $ | |||||
Cash, cash equivalents, and restricted cash at beginning of period (Note 7) | $ | $ | |||||
Net increase/(decrease) in cash, cash equivalents, and restricted cash | |||||||
Cash, cash equivalents, and restricted cash at end of period (Note 7) | $ | $ |
For the periods ended June 30, | |||||||||||||||
2019 | 2020 | 2019 | 2020 | ||||||||||||
Second Quarter | First Half | ||||||||||||||
(unaudited) | |||||||||||||||
Revenues | |||||||||||||||
Automotive | $ | $ | $ | $ | |||||||||||
Ford Credit | |||||||||||||||
Mobility | |||||||||||||||
Total revenues (Note 3) | |||||||||||||||
Costs and expenses | |||||||||||||||
Cost of sales | |||||||||||||||
Selling, administrative, and other expenses | |||||||||||||||
Ford Credit interest, operating, and other expenses | |||||||||||||||
Total costs and expenses | |||||||||||||||
Operating income/(loss) | ( | ) | ( | ) | |||||||||||
Interest expense on Automotive debt | |||||||||||||||
Interest expense on Other debt | |||||||||||||||
Other income/(loss), net (Note 4) | |||||||||||||||
Equity in net income/(loss) of affiliated companies | ( | ) | ( | ) | |||||||||||
Income/(Loss) before income taxes | ( | ) | |||||||||||||
Provision for/(Benefit from) income taxes | ( | ) | |||||||||||||
Net income/(loss) | ( | ) | |||||||||||||
Less: Income/(Loss) attributable to noncontrolling interests | |||||||||||||||
Net income/(loss) attributable to Ford Motor Company | $ | $ | $ | $ | ( | ) | |||||||||
EARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 6) | |||||||||||||||
Basic income/(loss) | $ | $ | $ | $ | ( | ) | |||||||||
Diluted income/(loss) | ( | ) | |||||||||||||
Weighted-average shares used in computation of earnings per share | |||||||||||||||
Basic shares | |||||||||||||||
Diluted shares |
For the periods ended June 30, | |||||||||||||||
2019 | 2020 | 2019 | 2020 | ||||||||||||
Second Quarter | First Half | ||||||||||||||
(unaudited) | |||||||||||||||
Net income/(loss) | $ | $ | $ | $ | ( | ) | |||||||||
Other comprehensive income/(loss), net of tax (Note 18) | |||||||||||||||
Foreign currency translation | ( | ) | ( | ) | ( | ) | |||||||||
Marketable securities | |||||||||||||||
Derivative instruments | ( | ) | ( | ) | |||||||||||
Pension and other postretirement benefits | |||||||||||||||
Total other comprehensive income/(loss), net of tax | ( | ) | ( | ) | ( | ) | |||||||||
Comprehensive income/(loss) | ( | ) | |||||||||||||
Less: Comprehensive income/(loss) attributable to noncontrolling interests | |||||||||||||||
Comprehensive income/(loss) attributable to Ford Motor Company | $ | $ | $ | $ | ( | ) |
December 31, 2019 | June 30, 2020 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and cash equivalents (Note 7) | $ | $ | |||||
Marketable securities (Note 7) | |||||||
Ford Credit finance receivables, net of allowance for credit losses of $162 and $396 (Note 8) | |||||||
Trade and other receivables, less allowances of $63 and $75 | |||||||
Inventories (Note 9) | |||||||
Assets held for sale (Note 17) | |||||||
Other assets | |||||||
Total current assets | |||||||
Ford Credit finance receivables, net of allowance for credit losses of $351 and $889 (Note 8) | |||||||
Net investment in operating leases | |||||||
Net property | |||||||
Equity in net assets of affiliated companies | |||||||
Deferred income taxes | |||||||
Other assets | |||||||
Total assets | $ | $ | |||||
LIABILITIES | |||||||
Payables | $ | $ | |||||
Other liabilities and deferred revenue (Note 12) | |||||||
Automotive debt payable within one year (Note 14) | |||||||
Ford Credit debt payable within one year (Note 14) | |||||||
Other debt payable within one year (Note 14) | |||||||
Liabilities held for sale (Note 17) | |||||||
Total current liabilities | |||||||
Other liabilities and deferred revenue (Note 12) | |||||||
Automotive long-term debt (Note 14) | |||||||
Ford Credit long-term debt (Note 14) | |||||||
Other long-term debt (Note 14) | |||||||
Deferred income taxes | |||||||
Total liabilities | |||||||
EQUITY | |||||||
Common Stock, par value $.01 per share (4,025 million shares issued of 6 billion authorized) | |||||||
Class B Stock, par value $.01 per share (71 million shares issued of 530 million authorized) | |||||||
Capital in excess of par value of stock | |||||||
Retained earnings | |||||||
Accumulated other comprehensive income/(loss) (Note 18) | ( | ) | ( | ) | |||
Treasury stock | ( | ) | ( | ) | |||
Total equity attributable to Ford Motor Company | |||||||
Equity attributable to noncontrolling interests | |||||||
Total equity | |||||||
Total liabilities and equity | $ | $ |
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 sheets above. | |||||||
December 31, 2019 | June 30, 2020 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | $ | |||||
Ford Credit finance receivables, net | |||||||
Net investment in operating leases | |||||||
Other assets | |||||||
LIABILITIES | |||||||
Other liabilities and deferred revenue | $ | $ | |||||
Debt |
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 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | |||||||||||||||||||
Adoption of accounting standards | |||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||
Other comprehensive income/(loss), net | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
Common stock issued (a) | |||||||||||||||||||||||||||||||
Treasury stock/other | ( | ) | ( | ) | |||||||||||||||||||||||||||
Dividends and dividend equivalents declared ($0.15 per share) (b) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
Balance at March 31, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | |||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||
Other comprehensive income/(loss), net | |||||||||||||||||||||||||||||||
Common stock issued (a) | |||||||||||||||||||||||||||||||
Treasury stock/other | |||||||||||||||||||||||||||||||
Dividends and dividend equivalents declared ($0.15 per share) (b) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | |||||||||||||||||||
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 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | |||||||||||||||||||
Adoption of accounting standards | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
Net income/(loss) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
Other comprehensive income/(loss), net | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
Common stock issued (a) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
Treasury stock/other | |||||||||||||||||||||||||||||||
Dividends and dividend equivalents declared ($0.15 per share) (b) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
Balance at March 31, 2020 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | |||||||||||||||||||
Net income/(loss) | |||||||||||||||||||||||||||||||
Other comprehensive income/(loss), net | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
Common stock issued (a) | |||||||||||||||||||||||||||||||
Treasury stock/other | ( | ) | ( | ) | |||||||||||||||||||||||||||
Dividends and dividend equivalents declared | |||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ |
(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 | $ | $ | ( | ) | $ | |||||||
Trade and other receivables, net | ( | ) | ||||||||||
Ford Credit finance receivables, net, non-current | ( | ) | ||||||||||
Equity in net assets of affiliated companies | ( | ) | ||||||||||
Deferred income taxes | ||||||||||||
Liabilities | ||||||||||||
Deferred income taxes | ( | ) | ||||||||||
Equity | ||||||||||||
Retained earnings | ( | ) |
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 | $ | $ | $ | $ | |||||||||||
Used vehicles | |||||||||||||||
Extended service contracts | |||||||||||||||
Other revenue | |||||||||||||||
Revenues from sales and services | |||||||||||||||
Leasing income | |||||||||||||||
Financing income | |||||||||||||||
Insurance income | |||||||||||||||
Total revenues | $ | $ | $ | $ | |||||||||||
Second Quarter 2020 | |||||||||||||||
Automotive | Mobility | Ford Credit | Consolidated | ||||||||||||
Vehicles, parts, and accessories | $ | $ | $ | $ | |||||||||||
Used vehicles | |||||||||||||||
Extended service contracts | |||||||||||||||
Other revenue | |||||||||||||||
Revenues from sales and services | |||||||||||||||
Leasing income | |||||||||||||||
Financing income | |||||||||||||||
Insurance income | |||||||||||||||
Total revenues | $ | $ | $ | $ | |||||||||||
First Half 2019 | |||||||||||||||
Automotive | Mobility | Ford Credit | Consolidated | ||||||||||||
Vehicles, parts, and accessories | $ | $ | $ | $ | |||||||||||
Used vehicles | |||||||||||||||
Extended service contracts | |||||||||||||||
Other revenue | |||||||||||||||
Revenues from sales and services | |||||||||||||||
Leasing income | |||||||||||||||
Financing income | |||||||||||||||
Insurance income | |||||||||||||||
Total revenues | $ | $ | $ | $ | |||||||||||
First Half 2020 | |||||||||||||||
Automotive | Mobility | Ford Credit | Consolidated | ||||||||||||
Vehicles, parts, and accessories | $ | $ | $ | $ | |||||||||||
Used vehicles | |||||||||||||||
Extended service contracts | |||||||||||||||
Other revenue | |||||||||||||||
Revenues from sales and services | |||||||||||||||
Leasing income | |||||||||||||||
Financing income | |||||||||||||||
Insurance income | |||||||||||||||
Total revenues | $ | $ | $ | $ |
Second Quarter | First Half | ||||||||||||||
2019 | 2020 | 2019 | 2020 | ||||||||||||
Net periodic pension and OPEB income/(cost), excluding service cost | $ | $ | $ | $ | |||||||||||
Investment-related interest income | |||||||||||||||
Interest income/(expense) on income taxes | ( | ) | ( | ) | ( | ) | |||||||||
Realized and unrealized gains/(losses) on cash equivalents, marketable securities, and other investments | ( | ) | ( | ) | |||||||||||
Gains/(Losses) on changes in investments in affiliates (a) | ( | ) | |||||||||||||
Gains/(Losses) on extinguishment of debt | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Royalty income | |||||||||||||||
Other | |||||||||||||||
Total | $ | $ | $ | $ |
(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) | $ | $ | $ | $ | ( | ) | |||||||||
Diluted income/(loss) | ( | ) | |||||||||||||
Basic and Diluted Shares | |||||||||||||||
Basic shares (average shares outstanding) | |||||||||||||||
Net dilutive options, unvested restricted stock units, and unvested restricted stock shares (a) | |||||||||||||||
Diluted shares |
(a) |
December 31, 2019 | |||||||||||||||||
Fair Value Level | Automotive | Mobility | Ford Credit | Consolidated | |||||||||||||
Cash and cash equivalents | |||||||||||||||||
U.S. government | 1 | $ | $ | $ | $ | ||||||||||||
U.S. government agencies | 2 | ||||||||||||||||
Non-U.S. government and agencies | 2 | ||||||||||||||||
Corporate debt | 2 | ||||||||||||||||
Total marketable securities classified as cash equivalents | |||||||||||||||||
Cash, time deposits, and money market funds | |||||||||||||||||
Total cash and cash equivalents | $ | $ | $ | $ | |||||||||||||
Marketable securities | |||||||||||||||||
U.S. government | 1 | $ | $ | $ | $ | ||||||||||||
U.S. government agencies | 2 | ||||||||||||||||
Non-U.S. government and agencies | 2 | ||||||||||||||||
Corporate debt | 2 | ||||||||||||||||
Equities (a) | 1 | ||||||||||||||||
Other marketable securities | 2 | ||||||||||||||||
Total marketable securities | $ | $ | $ | $ | |||||||||||||
Restricted cash | $ | $ | $ | $ | |||||||||||||
Cash, cash equivalents, and restricted cash in held-for-sale assets | $ | $ | $ | $ | |||||||||||||
June 30, 2020 | |||||||||||||||||
Fair Value Level | Automotive | Mobility | Ford Credit | Consolidated | |||||||||||||
Cash and cash equivalents | |||||||||||||||||
U.S. government | 1 | $ | $ | $ | $ | ||||||||||||
U.S. government agencies | 2 | ||||||||||||||||
Non-U.S. government and agencies | 2 | ||||||||||||||||
Corporate debt | 2 | ||||||||||||||||
Total marketable securities classified as cash equivalents | |||||||||||||||||
Cash, time deposits, and money market funds | |||||||||||||||||
Total cash and cash equivalents | $ | $ | $ | $ | |||||||||||||
Marketable securities | |||||||||||||||||
U.S. government | 1 | $ | $ | $ | $ | ||||||||||||
U.S. government agencies | 2 | ||||||||||||||||
Non-U.S. government and agencies | 2 | ||||||||||||||||
Corporate debt | 2 | ||||||||||||||||
Equities (a) | 1 | ||||||||||||||||
Other marketable securities | 2 | ||||||||||||||||
Total marketable securities | $ | $ | $ | $ | |||||||||||||
Restricted cash | $ | $ | $ | $ | |||||||||||||
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 | $ | $ | $ | ( | ) | $ | $ | $ | $ | ||||||||||||||||||
U.S. government agencies | ( | ) | |||||||||||||||||||||||||
Non-U.S. government and agencies | ( | ) | |||||||||||||||||||||||||
Corporate debt | |||||||||||||||||||||||||||
Other marketable securities | |||||||||||||||||||||||||||
Total | $ | $ | $ | ( | ) | $ | $ | $ | $ | ||||||||||||||||||
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 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
U.S. government agencies | |||||||||||||||||||||||||||
Non-U.S. government and agencies | |||||||||||||||||||||||||||
Corporate debt | ( | ) | |||||||||||||||||||||||||
Other marketable securities | |||||||||||||||||||||||||||
Total | $ | $ | $ | ( | ) | $ | $ | $ | $ |
Second Quarter | First Half | ||||||||||||||
2019 | 2020 | 2019 | 2020 | ||||||||||||
Automotive | |||||||||||||||
Sales proceeds | $ | $ | $ | $ | |||||||||||
Gross realized gains | |||||||||||||||
Gross realized losses |
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 | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | |||||||||||||
U.S. government agencies | ( | ) | ( | ) | |||||||||||||||||||
Non-U.S. government and agencies | ( | ) | ( | ) | |||||||||||||||||||
Corporate debt | |||||||||||||||||||||||
Other marketable securities | |||||||||||||||||||||||
Total | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | |||||||||||
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 | $ | $ | $ | $ | $ | $ | |||||||||||||||||
U.S. government agencies | |||||||||||||||||||||||
Non-U.S. government and agencies | |||||||||||||||||||||||
Corporate debt | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Other marketable securities | |||||||||||||||||||||||
Total | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) |
December 31, 2019 | June 30, 2020 | ||||||
Cash and cash equivalents (a) | $ | $ | |||||
Restricted cash (b) | |||||||
Cash, cash equivalents, and restricted cash in held-for-sale assets | |||||||
Total cash, cash equivalents, and restricted cash | $ | $ |
(a) | Includes a $ |
(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 | $ | $ | |||||
Finance leases, gross | |||||||
Retail financing, gross | |||||||
Unearned interest supplements | ( | ) | ( | ) | |||
Consumer finance receivables | |||||||
Non-Consumer | |||||||
Dealer financing | |||||||
Non-Consumer finance receivables | |||||||
Total recorded investment | $ | $ | |||||
Recorded investment in finance receivables | $ | $ | |||||
Allowance for credit losses | ( | ) | ( | ) | |||
Total finance receivables, net | $ | $ | |||||
Current portion | $ | $ | |||||
Non-current portion | |||||||
Total finance receivables, net | $ | $ | |||||
Net finance receivables subject to fair value (a) | $ | $ | |||||
Fair value (b) |
(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 | $ | |||
61 - 120 days past due | ||||
Greater than 120 days past due | ||||
Total past due | ||||
Current | ||||
Total | $ |
Amortized Cost Basis by Origination Year | ||||||||||||||||||||||||||||
Prior to 2016 | 2016 | 2017 | 2018 | 2019 | 2020 | Total | ||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
31 - 60 days past due | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
61 - 120 days past due | ||||||||||||||||||||||||||||
Greater than 120 days past due | ||||||||||||||||||||||||||||
Total past due | ||||||||||||||||||||||||||||
Current | ||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
• | 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. |
Total | ||||
Dealer financing | ||||
Group I | $ | |||
Group II | ||||
Group III | ||||
Group IV | ||||
Total (a) | $ |
(a) | Total past due dealer financing receivables at December 31, 2019 were $ |
Amortized Cost Basis by Origination Year | Wholesale Loans | |||||||||||||||||||||||||||||||||||
Dealer Loans | ||||||||||||||||||||||||||||||||||||
Prior to 2016 | 2016 | 2017 | 2018 | 2019 | 2020 | Total | Total | |||||||||||||||||||||||||||||
Group I | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Group II | ||||||||||||||||||||||||||||||||||||
Group III | ||||||||||||||||||||||||||||||||||||
Group IV | ||||||||||||||||||||||||||||||||||||
Total (a) | $ | $ | $ | $ | $ | $ | $ | $ | $ |
(a) | Total past due dealer financing receivables at June 30, 2020 were $ |
Second Quarter 2019 (a) | First Half 2019 (a) | ||||||||||||||||||||||
Consumer | Non-Consumer | Total | Consumer | Non-Consumer | Total | ||||||||||||||||||
Allowance for credit losses | |||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Charge-offs | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Recoveries | |||||||||||||||||||||||
Provision for credit losses | ( | ) | |||||||||||||||||||||
Other (c) | |||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ |
Second Quarter 2020 | First Half 2020 | ||||||||||||||||||||||
Consumer | Non-Consumer | Total | Consumer | Non-Consumer | Total | ||||||||||||||||||
Allowance for credit losses | |||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Adoption of ASU 2016-13 (b) | |||||||||||||||||||||||
Charge-offs (c) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Recoveries (c) | |||||||||||||||||||||||
Provision for credit losses | ( | ) | |||||||||||||||||||||
Other (d) | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ |
(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 | $ | $ | |||||
Finished products | |||||||
Total inventories | $ | $ |
December 31, 2019 | June 30, 2020 | ||||||
Current | |||||||
Dealer and dealers’ customer allowances and claims | $ | $ | |||||
Deferred revenue | |||||||
Employee benefit plans | |||||||
Accrued interest | |||||||
OPEB (a) | |||||||
Pension (a) | |||||||
Operating lease liabilities | |||||||
Other | |||||||
Total current other liabilities and deferred revenue | $ | $ | |||||
Non-current | |||||||
Pension (a) | $ | $ | |||||
OPEB (a) | |||||||
Dealer and dealers’ customer allowances and claims | |||||||
Deferred revenue | |||||||
Operating lease liabilities | |||||||
Employee benefit plans | |||||||
Other | |||||||
Total non-current other liabilities and deferred revenue | $ | $ |
(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 $ |
Second Quarter | |||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Worldwide OPEB | |||||||||||||||||||||
2019 | 2020 | 2019 | 2020 | 2019 | 2020 | ||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Amortization of prior service costs/(credits) | ( | ) | ( | ) | |||||||||||||||||||
Net remeasurement (gain)/loss | ( | ) | ( | ) | |||||||||||||||||||
Separation programs/other | |||||||||||||||||||||||
Settlements and curtailments | ( | ) | |||||||||||||||||||||
Net periodic benefit cost/(income) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | $ | |||||||||||
First Half | |||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Worldwide OPEB | |||||||||||||||||||||
2019 | 2020 | 2019 | 2020 | 2019 | 2020 | ||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Amortization of prior service costs/(credits) | ( | ) | ( | ) | |||||||||||||||||||
Net remeasurement (gain)/loss | ( | ) | ( | ) | |||||||||||||||||||
Separation programs/other | |||||||||||||||||||||||
Settlements and curtailments | ( | ) | ( | ) | |||||||||||||||||||
Net periodic benefit cost/(income) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | $ |
December 31, 2019 | June 30, 2020 | ||||||
Automotive | |||||||
Debt payable within one year | |||||||
Short-term | $ | $ | |||||
Long-term payable within one year | |||||||
Credit facilities (a) | |||||||
U.S. Department of Energy Advanced Technology Vehicles Manufacturing (“DOE ATVM”) Incentive Program (b) | |||||||
Other debt | |||||||
Unamortized (discount)/premium | ( | ) | |||||
Total debt payable within one year | |||||||
Long-term debt payable after one year | |||||||
Public unsecured debt securities (c) | |||||||
Credit facilities (a) | |||||||
Delayed draw term loan | |||||||
DOE ATVM Incentive Program (b) | |||||||
Other debt (d) | |||||||
Unamortized (discount)/premium | ( | ) | ( | ) | |||
Unamortized issuance costs | ( | ) | ( | ) | |||
Total long-term debt payable after one year | |||||||
Total Automotive | $ | $ | |||||
Fair value of Automotive debt (e) | $ | $ | |||||
Ford Credit | |||||||
Debt payable within one year | |||||||
Short-term | $ | $ | |||||
Long-term payable within one year | |||||||
Unsecured debt | |||||||
Asset-backed debt | |||||||
Unamortized (discount)/premium | |||||||
Unamortized issuance costs | ( | ) | ( | ) | |||
Fair value adjustments (f) | ( | ) | |||||
Total debt payable within one year | |||||||
Long-term debt payable after one year | |||||||
Unsecured debt | |||||||
Asset-backed debt | |||||||
Unamortized (discount)/premium | |||||||
Unamortized issuance costs | ( | ) | ( | ) | |||
Fair value adjustments (f) | |||||||
Total long-term debt payable after one year | |||||||
Total Ford Credit | $ | $ | |||||
Fair value of Ford Credit debt (e) | $ | $ | |||||
Other | |||||||
Long-term debt payable within one year | $ | $ | |||||
Long-term debt payable after one year | |||||||
Unsecured debt | |||||||
Unamortized (discount)/premium and issuance costs | ( | ) | ( | ) | |||
Total long-term debt payable after one year | |||||||
Total Other | $ | $ | |||||
Fair value of Other debt | $ | $ |
(a) | We drew $ |
(b) | In June 2020, our DOE ATVM loan was modified, reducing quarterly principal payments from $ |
(c) | Public unsecured debt securities increased by $ |
(d) | Includes a £ |
(e) | The fair value of debt includes $ |
(f) | These adjustments relate to fair value hedges. The carrying value of hedged debt was $ |
Second Quarter | First Half | ||||||||||||||
Cash flow hedges (a) | 2019 | 2020 | 2019 | 2020 | |||||||||||
Reclassified from AOCI to Cost of sales | |||||||||||||||
Foreign currency exchange contracts | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Commodity contracts | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Fair value hedges | |||||||||||||||
Interest rate contracts | |||||||||||||||
Net interest settlements and accruals on hedging instruments | ( | ) | ( | ) | |||||||||||
Fair value changes on hedging instruments | |||||||||||||||
Fair value changes on hedged debt | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Derivatives not designated as hedging instruments | |||||||||||||||
Foreign currency exchange contracts (b) | ( | ) | ( | ) | |||||||||||
Cross-currency interest rate swap contracts | ( | ) | |||||||||||||
Interest rate contracts | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Commodity contracts | ( | ) | ( | ) | ( | ) | |||||||||
Total | $ | $ | ( | ) | $ | $ |
(a) | For the second quarter and first half of 2019, a $ |
(b) |
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 | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Commodity contracts | |||||||||||||||||||||||
Fair value hedges | |||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||
Foreign currency exchange contracts | |||||||||||||||||||||||
Cross-currency interest rate swap contracts | |||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||
Total derivative financial instruments, gross (a) (b) | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Current portion | $ | $ | $ | $ | |||||||||||||||||||
Non-current portion | |||||||||||||||||||||||
Total derivative financial instruments, gross | $ | $ | $ | $ |
(a) | At December 31, 2019 and June 30, 2020, we held collateral of $ |
(b) |
Second Quarter | First Half | ||||||||||||||
2019 | 2020 | 2019 | 2020 | ||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||
Changes in accruals (a) | |||||||||||||||
Payments | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Foreign currency translation | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Ending balance | $ | $ | $ | $ |
December 31, 2019 | June 30, 2020 | ||||||
Assets | |||||||
Trade and other receivables, net | $ | $ | |||||
Inventories | |||||||
Other assets, current | |||||||
Net property | |||||||
Other assets, non-current | |||||||
Total assets of held-for-sale operations | |||||||
Less: Intercompany asset balances | ( | ) | ( | ) | |||
Automotive segment total assets of held-for-sale operations (a) | $ | $ | |||||
Liabilities | |||||||
Payables | $ | $ | |||||
Other liabilities and deferred revenue, current | |||||||
Automotive debt payable within one year | |||||||
Other liabilities and deferred revenue, non-current | |||||||
Total liabilities of held-for-sale operations | |||||||
Less: Intercompany liability balances | ( | ) | ( | ) | |||
Automotive segment total liabilities of held-for-sale operations (a) | $ | $ |
(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 | $ | ||
Ford Credit finance receivables, net, current | |||
Trade and other receivables, net | |||
Other assets, current | |||
Ford Credit finance receivables, net, non-current | |||
Net property | |||
Deferred income taxes | |||
Other assets, non-current | |||
Total assets of held-for-sale operations | |||
Less: Intercompany asset balances | ( | ) | |
Ford Credit segment total assets of held-for-sale operations (a) | $ | ||
Liabilities | |||
Payables | $ | ||
Other liabilities and deferred revenue, current | |||
Ford Credit long-term debt | |||
Deferred income taxes | |||
Total liabilities of held-for-sale operations | |||
Less: Intercompany liability balances | ( | ) | |
Ford Credit segment total liabilities of held-for-sale operations (a) | $ |
(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 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Gains/(Losses) on foreign currency translation | ( | ) | ( | ) | ( | ) | |||||||||
Less: Tax/(Tax benefit) | ( | ) | ( | ) | ( | ) | |||||||||
Net gains/(losses) on foreign currency translation | ( | ) | ( | ) | ( | ) | |||||||||
(Gains)/Losses reclassified from AOCI to net income (a) | ( | ) | ( | ) | |||||||||||
Other comprehensive income/(loss), net of tax | ( | ) | ( | ) | ( | ) | |||||||||
Ending balance | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Marketable securities | |||||||||||||||
Beginning balance | $ | $ | $ | ( | ) | $ | |||||||||
Gains/(Losses) on available for sale securities | |||||||||||||||
Less: Tax/(Tax benefit) | |||||||||||||||
Net gains/(losses) on available for sale securities | |||||||||||||||
(Gains)/Losses reclassified from AOCI to net income | ( | ) | ( | ) | |||||||||||
Less: Tax/(Tax benefit) | ( | ) | ( | ) | |||||||||||
Net (gains)/losses reclassified from AOCI to net income | ( | ) | ( | ) | |||||||||||
Other comprehensive income/(loss), net of tax | |||||||||||||||
Ending balance | $ | $ | $ | $ | |||||||||||
Derivative instruments | |||||||||||||||
Beginning balance | $ | ( | ) | $ | $ | $ | ( | ) | |||||||
Gains/(Losses) on derivative instruments | ( | ) | ( | ) | |||||||||||
Less: Tax/(Tax benefit) | ( | ) | ( | ) | |||||||||||
Net gains/(losses) on derivative instruments | ( | ) | ( | ) | |||||||||||
(Gains)/Losses reclassified from AOCI to net income | ( | ) | ( | ) | |||||||||||
Less: Tax/(Tax benefit) | ( | ) | ( | ) | |||||||||||
Net (gains)/losses reclassified from AOCI to net income (b) | ( | ) | ( | ) | |||||||||||
Other comprehensive income/(loss), net of tax | ( | ) | ( | ) | |||||||||||
Ending balance | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Pension and other postretirement benefits | |||||||||||||||
Beginning balance | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Amortization and recognition of prior service costs/(credits) | |||||||||||||||
Less: Tax/(Tax benefit) | |||||||||||||||
Net prior service costs/(credits) reclassified from AOCI to net income | |||||||||||||||
Translation impact on non-U.S. plans | ( | ) | |||||||||||||
Other comprehensive income/(loss), net of tax | |||||||||||||||
Ending balance | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Total AOCI ending balance at June 30 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(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 $ |
First Half | |||||||
2019 | 2020 | ||||||
Beginning balance | $ | $ | |||||
Payments made during the period | ( | ) | ( | ) | |||
Changes in accrual related to warranties issued during the period | |||||||
Changes in accrual related to pre-existing warranties | |||||||
Foreign currency translation and other | ( | ) | |||||
Ending balance | $ | $ |
Automotive | Mobility | Ford Credit | Corporate Other | Interest on Debt | Special Items | Adjustments | Total | ||||||||||||||||||||||||
Second Quarter 2019 | |||||||||||||||||||||||||||||||
Revenues | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Income/(loss) before income taxes | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Equity in net income/(loss) of affiliated companies | |||||||||||||||||||||||||||||||
Cash, cash equivalents, marketable securities, and restricted cash | |||||||||||||||||||||||||||||||
Total assets | ( | ) | (a) | ||||||||||||||||||||||||||||
Second Quarter 2020 | |||||||||||||||||||||||||||||||
Revenues | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Income/(loss) before income taxes | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Equity in net income/(loss) of affiliated companies | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Cash, cash equivalents, marketable securities, and restricted cash | |||||||||||||||||||||||||||||||
Total assets | ( | ) | (a) | ||||||||||||||||||||||||||||
Automotive | Mobility | Ford Credit | Corporate Other | Interest on Debt | Special Items | Adjustments | Total | ||||||||||||||||||||||||
First Half 2019 | |||||||||||||||||||||||||||||||
Revenues | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Income/(loss) before income taxes | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Equity in net income/(loss) of affiliated companies | |||||||||||||||||||||||||||||||
First Half 2020 | |||||||||||||||||||||||||||||||
Revenues | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Income/(loss) before income taxes | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Equity in net income/(loss) of affiliated companies | ( | ) | ( | ) | ( | ) | ( | ) |
(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 |
Change in EBIT by Causal Factor (in millions) | ||||
Second Quarter 2019 EBIT | $ | 1,373 | ||
Volume / Mix | (5,671 | ) | ||
Net Pricing | 1,330 | |||
Cost | 1,096 | |||
Exchange | (118 | ) | ||
Other | (99 | ) | ||
Second Quarter 2020 EBIT | $ | (2,089 | ) |
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 |
Change in EBIT by Causal Factor (in millions) | ||||
Second Quarter 2019 EBIT | $ | 1,696 | ||
Volume / Mix | (4,330 | ) | ||
Net Pricing | 813 | |||
Cost | 758 | |||
Exchange | 30 | |||
Other | 59 | |||
Second Quarter 2020 EBIT | $ | (974 | ) |
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 |
Change in EBIT by Causal Factor (in millions) | ||||
Second Quarter 2019 EBIT | $ | (205 | ) | |
Volume / Mix | (93 | ) | ||
Net Pricing | 103 | |||
Cost | 50 | |||
Exchange | (6 | ) | ||
Other | (14 | ) | ||
Second Quarter 2020 EBIT | $ | (165 | ) |
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. |
Change in EBIT by Causal Factor (in millions) | ||||
Second Quarter 2019 EBIT | $ | 110 | ||
Volume / Mix | (957 | ) | ||
Net Pricing | 392 | |||
Cost | 38 | |||
Exchange | (106 | ) | ||
Other | (141 | ) | ||
Second Quarter 2020 EBIT | $ | (664 | ) |
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. |
Change in EBIT by Causal Factor (in millions) | ||||
Second Quarter 2019 EBIT | $ | (155 | ) | |
Volume / Mix | (34 | ) | ||
Net Pricing | (12 | ) | ||
Cost | 59 | |||
Exchange | (34 | ) | ||
Other (Including Joint Ventures) | 40 | |||
Second Quarter 2020 EBIT | $ | (136 | ) |
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. |
Change in EBIT by Causal Factor (in millions) | ||||
Second Quarter 2019 EBIT | $ | (73 | ) | |
Volume / Mix | (256 | ) | ||
Net Pricing | 33 | |||
Cost | 191 | |||
Exchange | (2 | ) | ||
Other | (43 | ) | ||
Second Quarter 2020 EBIT | $ | (150 | ) |
• | 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. |
Change in EBT by Causal Factor (in millions) | ||||
Second Quarter 2019 EBT | $ | 831 | ||
Volume / Mix | (46 | ) | ||
Financing Margin | (13 | ) | ||
Credit Loss | (33 | ) | ||
Lease Residual | (127 | ) | ||
Exchange | (6 | ) | ||
Other | (63 | ) | ||
Second Quarter 2020 EBT | $ | 543 |
• | 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. |
Dated: | July 30, 2020 | /s/ Tim Stone |
Tim Stone | ||
Chief Financial Officer | ||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,118 | $ 150 | $ (875) | $ 1,333 |
Foreign currency translation | (102) | (127) | (1,555) | 116 |
Marketable Securities | 99 | 59 | 113 | 122 |
Derivative instruments | (24) | 117 | 668 | (329) |
Pension and other postretirement benefits | 17 | 16 | 31 | 21 |
Total other comprehensive income/(loss), net of tax | (10) | 65 | (743) | (70) |
Comprehensive income | 1,108 | 215 | (1,618) | 1,263 |
Less: Comprehensive income/(loss) attributable to noncontrolling interests | 1 | 2 | 1 | 39 |
Comprehensive income attributable to Ford Motor Company | $ 1,107 | $ 213 | $ (1,619) | $ 1,224 |
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) shares in Millions, $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
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ASSETS | ||
Allowance for trade and other receivables | $ 75 | $ 63 |
Financing Receivable, after Allowance for Credit Loss, Current | 396 | 162 |
Financing Receivable, Allowance for Credit Loss, Noncurrent | $ 889 | $ 351 |
Common Stock | ||
EQUITY | ||
Common Stock, par value (in dollars per share) | $ 0.01 | |
Common Stock, shares issued (in shares) | 4,025 | |
Common Stock, Shares Authorized (in shares) | 6,000 | |
Class B Stock | ||
EQUITY | ||
Common Stock, par value (in dollars per share) | $ 0.01 | |
Common Stock, shares issued (in shares) | 71 | |
Common Stock, Shares Authorized (in shares) | 530 |
Presentation |
6 Months Ended |
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Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
PRESENTATION | PRESENTATION For purposes of this report, “Ford,” the “Company,” “we,” “our,” “us,” or similar references mean Ford Motor Company, our consolidated subsidiaries, and our consolidated VIEs of which we are the primary beneficiary, unless the context requires otherwise. We also make reference to Ford Motor Credit Company LLC, herein referenced to as Ford Credit. Our consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, instructions to the Quarterly Report on Form 10-Q, and Rule 10-01 of Regulation S-X. In the opinion of management, these unaudited financial statements reflect a fair statement of our results of operations and financial condition for the periods, and at the dates, presented. The results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2019 (“2019 Form 10-K Report”). Global Pandemic On March 11, 2020, the World Health Organization characterized the outbreak of COVID-19 as a global pandemic and recommended containment and mitigation measures. As a result, extraordinary actions were taken by international, federal, state, and local public health and governmental authorities to contain and combat the outbreak and spread of COVID-19 in regions throughout the world. These actions included travel bans, quarantines, “stay-at-home” orders, and similar mandates for many individuals to substantially restrict daily activities and for many businesses to curtail or cease normal operations. Although restrictions have been eased in many locations, some areas that had previously eased restrictions have reverted to more stringent limitations on daily activities. Consistent with the actions taken by governmental authorities, by late March 2020, we had idled all of our significant manufacturing operations in regions around the world. By May 2020, we restarted manufacturing operations in a phased manner at locations around the world. We have since returned to pre-COVID-19 production levels in several major markets. Our results include adjustments to our assets and liabilities made due to the impact of COVID-19, the most significant of which were a valuation allowance on certain deferred tax assets of $228 million and $1.1 billion for the second quarter and first half of 2020, respectively (see Note 5), and a charge to the provision for credit losses on Ford Credit’s finance receivables of $46 million and $532 million during the second quarter and first half of 2020, respectively (see Note 8). Our assessments of the effect of COVID-19 on our financial statements, including estimates, are based on a variety of factors and are subject to many uncertainties. The impact of the COVID-19 pandemic on our full year financial results will depend on future developments, such as the ultimate duration and scope of the outbreak, its impact on our operations, customers, dealers, and suppliers, and the rate at which economic conditions return to pre-COVID-19 levels.
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New Accounting Standards (Notes) |
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New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS Adoption of New Accounting Standards Accounting Standards Update (“ASU”) 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments. On January 1, 2020, we adopted the new credit loss standard and all of the related amendments, which replaced the incurred loss impairment method with a method that reflects lifetime expected credit losses. We adopted the changes in accounting for credit losses by recognizing the cumulative effect of initially applying the new credit loss standard as an adjustment to the opening balance of Retained earnings. The comparative information has not been restated and continues to be reported under the accounting standard in effect for those periods. The cumulative effect of the changes made to our consolidated balance sheet at January 1, 2020, for the adoption of ASU 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments, was as follows (in millions):
ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. On April 1, 2020, we adopted the new standard, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform (e.g., discontinuation of LIBOR) if certain criteria are met. As of June 30, 2020, we have not yet elected any optional expedients provided in the standard. We will apply the accounting relief as relevant contract and hedge accounting relationship modifications are made during the reference rate reform transition period. We do not expect the standard to have a material impact on our consolidated financial statements. We also adopted the following ASUs during 2020, none of which had a material impact to our consolidated financial statements or financial statement disclosures:
Accounting Standards Issued But Not Yet Adopted The Company considers the applicability and impact of all ASUs. ASUs were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements.
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Revenue (Notes) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE | REVENUE The following table disaggregates our revenue by major source for the periods ended June 30 (in millions):
NOTE 3. REVENUE (Continued) The amount of consideration we receive and revenue we recognize on our vehicles, parts, and accessories varies with changes in return rights and marketing incentives we offer to our customers and their customers. Estimates of marketing incentives are based on expected retail and fleet sales volumes, mix of products to be sold, and incentive programs to be offered. Customer acceptance of products and programs, as well as other market conditions, will impact these estimates. As a result of changes in our estimate of marketing incentives, we recorded a decrease in revenue of $350 million in the second quarter of 2019 and an increase in revenue of $48 million in the second quarter of 2020 related to revenue recognized in prior periods. We sell separately-priced service contracts that extend mechanical and maintenance coverages beyond our base warranty agreements to vehicle owners (“extended service contracts”). We had a balance of $4.2 billion and $4 billion of unearned revenue associated with outstanding contracts reported in Other liabilities and deferred revenue at December 31, 2019 and June 30, 2020, respectively. We expect to recognize approximately $600 million of the unearned amount in the remainder of 2020, $1.1 billion in 2021, and $2.3 billion thereafter. We recognized $285 million and $276 million of unearned amounts as revenue during the second quarter of 2019 and 2020, respectively, and $590 million and $606 million in the first half of 2019 and 2020, respectively. Amounts paid to dealers to obtain these contracts are deferred and recorded as Other assets. We had a balance of $270 million and $276 million in deferred costs as of December 31, 2019 and June 30, 2020, respectively. We recognized $20 million and $19 million of amortization during the second quarter of 2019 and 2020, respectively, and $39 million in the first half of both 2019 and 2020.
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Other Income/(Loss) (Notes) |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Other Expense Disclosure [Text Block] | OTHER INCOME/(LOSS) The amounts included in Other income/(loss), net for the periods ended June 30 were as follows (in millions):
__________ (a) See Note 17 for additional information relating to our Argo AI, LLC (“Argo AI”) and Volkswagen AG (“VW”) transaction.
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Income Taxes (Notes) |
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Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For interim tax reporting, we estimate one single effective tax rate for tax jurisdictions not subject to a valuation allowance, which is applied to the year-to-date ordinary income/(loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. |
Capital Stock and Earnings Per Share (Notes) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CAPITAL STOCK AND EARNINGS PER SHARE | CAPITAL STOCK AND EARNINGS PER SHARE Earnings Per Share Attributable to Ford Motor Company Common and Class B Stock Basic and diluted income/(loss) per share were calculated using the following (in millions):
__________ (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.
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Cash, Cash Equivalents, and Marketable Securities (Notes) |
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Cash, Cash Equivalents, and Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents, and Marketable Securities [Text Block] | CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES Cash Equivalents Cash and cash equivalents are highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of change in value due to interest rate, quoted price, or penalty on withdrawal. A debt security is classified as a cash equivalent if it meets these criteria and if it has a remaining time to maturity of three months or less from the date of acquisition. Amounts on deposit and available upon demand, or negotiated to provide for daily liquidity without penalty, are classified as cash and cash equivalents. Time deposits, certificates of deposit, and money market accounts that meet the above criteria are reported at par value on our consolidated balance sheets. Marketable Securities Investments in securities with a maturity date greater than three months at the date of purchase, and other securities for which there is more than an insignificant risk of change in value due to interest rate, quoted price, or penalty on withdrawal, are classified as marketable securities. Realized gains and losses and interest income on all of our marketable securities and unrealized gains and losses on securities not classified as available for sale are recorded in Other income/(loss), net. Unrealized gains and losses on available-for-sale securities are recognized in Unrealized gains and losses on securities, a component of Other comprehensive income/(loss), net of tax. Realized gains and losses and reclassifications of accumulated other comprehensive income into net income are measured using the specific identification method. On a quarterly basis, we review our available-for-sale debt securities for credit losses. We compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis of the security, we determine if a credit loss allowance is necessary. If a credit loss allowance is necessary, we will record an allowance, limited by the amount that fair value is less than the amortized cost basis, and recognize the corresponding charge in Other income/(loss), net. Factors we consider include the severity of the impairment, the reason for the decline in value, interest rate changes, and counterparty long-term ratings. NOTE 7. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES (Continued) The fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis were as follows (in millions):
__________ (a) Net unrealized gains/losses incurred during the reporting periods on equity securities still held at December 31, 2019 and June 30, 2020 were a $44 million loss and a $29 million loss, respectively. NOTE 7. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES (Continued) The cash equivalents and marketable securities accounted for as available-for-sale (“AFS”) securities were as follows (in millions):
Sales proceeds and gross realized gains/losses from the sale of AFS securities for the periods ended June 30 were as follows (in millions):
NOTE 7. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES (Continued) The present fair values and gross unrealized losses for cash equivalents and marketable securities accounted for as AFS securities that were in an unrealized loss position, aggregated by investment category and the length of time that individual securities have been in a continuous loss position, were as follows (in millions):
We determine credit losses on available-for-sale debt securities using the specific identification method. During the first half of 2020, we did not recognize any credit loss. The unrealized losses on securities are due to changes in interest rates and market liquidity. Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash, as reported in the consolidated statements of cash flows, were as follows (in millions):
__________
(b) Included in Other assets in the non-current assets section of our consolidated balance sheets.
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Ford Credit Finance Receivables (Notes) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES | FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES Ford Credit manages finance receivables as “consumer” and “non-consumer” portfolios. The receivables are generally secured by the vehicles, inventory, or other property being financed. Finance receivables are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses. For all finance receivables, Ford Credit defines "past due" as any payment, including principal and interest, that is at least 31 days past the contractual due date. Ford Credit finance receivables, net were as follows (in millions):
__________
Ford Credit’s finance leases are comprised of sales-type and direct financing leases. Financing revenue from finance leases for the second quarter of 2019 and 2020 was $97 million and $77 million, respectively, and for the first half of 2019 and 2020 was $189 million and $172 million, respectively, and is included in Ford Credit revenues on our consolidated income statements. At December 31, 2019 and June 30, 2020, accrued interest was $251 million and $215 million, respectively, which we report in Other assets in the current assets section of our consolidated balance sheets. Included in the recorded investment in finance receivables at December 31, 2019 and June 30, 2020, were consumer receivables of $38.3 billion and $42.1 billion, respectively, and non-consumer receivables of $26.8 billion and $17.8 billion, respectively, that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. The receivables 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 or the claims of Ford Credit’s other creditors. 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. NOTE 8. FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) The value of finance receivables considered held for sale at December 31, 2019 was $1.5 billion, primarily made up of $1.2 billion of Forso Nordic AB (“Forso”) related finance receivables. At June 30, 2020, there were $50 million of certain wholesale finance receivables specifically identified as held for sale. These held-for-sale values are reported in Assets held for sale on our consolidated balance sheets. See Note 17 for additional information. Credit Quality Consumer Portfolio. Credit quality ratings for consumer receivables are based on aging. Consumer receivables credit quality ratings are as follows:
The credit quality analysis of consumer receivables at December 31, 2019 was as follows (in millions):
The credit quality analysis of consumer receivables at June 30, 2020 was as follows (in millions):
Non-Consumer Portfolio. Ford Credit uses a proprietary model to assign each dealer a risk rating. This model uses historical dealer performance data to identify key factors about a dealer that are considered most significant in predicting a dealer’s ability to meet its financial obligations. Ford Credit also considers numerous other financial and qualitative factors of the dealer’s operations, including capitalization and leverage, liquidity and cash flow, profitability, and credit history with Ford Credit and other creditors. The credit quality of dealer financing receivables is evaluated based on an internal dealer risk rating analysis. NOTE 8. FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) Dealers are assigned to one of four groups according to risk ratings as follows:
The credit quality analysis of dealer financing receivables at December 31, 2019 was as follows (in millions):
__________
The credit quality analysis of dealer financing receivables at June 30, 2020 was as follows (in millions):
__________
Non-Accrual of Revenue. The accrual of financing revenue is discontinued at the time a receivable is determined to be uncollectible or when it is 90 days past due. Accounts may be restored to accrual status only when a customer settles all past-due deficiency balances and future payments are reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received. Payments are generally applied first to outstanding interest and then to the unpaid principal balance. Troubled Debt Restructuring (“TDR”). A restructuring of debt constitutes a TDR if a concession is granted to a debtor for economic or legal reasons related to the debtor’s financial difficulties that Ford Credit otherwise would not consider. Consumer and non-consumer receivables that have a modified interest rate below market rate or that were modified in reorganization proceedings pursuant to the U.S. Bankruptcy Code, except non-consumer receivables that are current with minimal risk of loss, are considered to be TDRs. Ford Credit does not grant concessions on the principal balance of the receivables. If a receivable is modified in a reorganization proceeding, all payment requirements of the reorganization plan need to be met before remaining balances are forgiven. Ford Credit has offered various programs to provide relief to customers and dealers impacted by COVID-19. These programs, which were broadly available to customers and dealers, included payment extensions. Ford Credit concluded that these programs did not meet TDR criteria. As of June 30, 2020, in the United States, Ford Credit has received payments on 88% of the pandemic extensions offered to its customers, and no dealers are delinquent on their payments. NOTE 8. FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) Allowance for Credit Losses The allowance for credit losses represents an estimate of the lifetime expected credit losses inherent in finance receivables as of the balance sheet date. Additions to the allowance for credit losses are made by recording charges to Ford Credit interest, operating, and other expenses on our consolidated income statements. The uncollectible portion of a finance receivable is charged to the allowance for credit losses at the earlier of when an account is deemed to be uncollectible or when an account is 120 days delinquent, taking into consideration the financial condition of the customer or borrower, the value of the collateral, recourse to guarantors, and other factors. Charge-offs on finance receivables include uncollected amounts related to principal, interest, late fees, and other allowable charges. Recoveries on finance receivables previously charged off as uncollectible are credited to the allowance for credit losses. In the event Ford Credit repossesses the collateral, the receivable is charged off and the collateral is recorded at its estimated fair value less costs to sell and reported in Other assets on our consolidated balance sheets. Consumer Portfolio Receivables in this portfolio include products offered to individuals and businesses that finance the acquisition of Ford and Lincoln vehicles from dealers for personal or commercial use. Retail financing includes retail installment contracts for new and used vehicles and finance leases with retail customers, government entities, daily rental companies, and fleet customers. For consumer receivables that share similar risk characteristics such as product type, initial credit risk, term, vintage, geography, and other relevant factors, Ford Credit estimates the lifetime expected credit loss allowance based on a collective assessment using measurement models and management judgment. The lifetime expected credit losses for the receivables is determined by applying probability of default and loss given default models to monthly expected exposures, then discounting these cash flows to present value using the receivable’s original effective interest rate or the current effective interest rate for a variable rate receivable. Probability of default models are developed from internal risk scoring models taking into account the expected probability of payment and time to default, adjusted for macroeconomic outlook and recent performance. The models consider factors such as risk evaluation at the time of origination, historical trends in credit losses (which include the impact of TDRs), and the composition and recent performance of the present portfolio (including vehicle brand, term, risk evaluation, and new / used vehicles). The loss given default is the percentage of the expected balance due at default that is not recoverable, taking into account the expected collateral value and trends in recoveries (including key metrics such as delinquencies, repossessions, and bankruptcies). Monthly exposures are equal to the receivables’ expected outstanding principal and interest balance. The loss allowance incorporates forward-looking macroeconomic conditions for baseline, upturn, and downturn scenarios. Three separate credit loss allowances are calculated from these scenarios. They are then probability-weighted to determine the credit loss allowance recognized in the financial statements. Ford Credit uses forecasts from a third party that revert to a long-term historical average after a reasonable and supportable forecasting period, which is specific to the particular macroeconomic variable and which varies by market. Ford Credit updates the forward-looking macroeconomic forecasts quarterly. If management does not believe these models reflect lifetime expected credit losses for the portfolio, an adjustment is made to reflect management judgment regarding observable changes in recent or expected economic trends and conditions, portfolio composition, and other relevant factors. On an ongoing basis, Ford Credit reviews its models, including macroeconomic factors, the selection of macroeconomic scenarios, and their weighting, to ensure they reflect the risk of the portfolio. NOTE 8. FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) Non-Consumer Portfolio Dealer financing includes wholesale loans to dealers to finance vehicle inventory, also known as floorplan financing, as well as loans to dealers to finance working capital, improvements to dealership facilities, the purchase of dealership real estate, and other dealer programs. Dealer financing is evaluated on an individual dealer basis by segmenting dealers by risk characteristics (such as the amount of the loans, the nature of the collateral, the financial status of the dealer, and any TDR modifications) to determine if an individual dealer requires a specific allowance for credit loss. If required, the allowance is based on the present value of the expected future cash flows of the dealer’s receivables discounted at the loans’ original effective interest rate or the fair value of the collateral adjusted for estimated costs to sell. For the remaining dealer financing, Ford Credit estimates an allowance for credit losses on a collective basis. Wholesale Loans. Ford Credit estimates the allowance for credit losses for wholesale loans based on historical loss-to-receivable (LTR) ratios, expected future cash flows, and the fair value of collateral. For wholesale loans with similar risk characteristics, the allowance for credit losses is estimated on a collective basis using the LTR model and management judgment. The LTR model is based on the most recent years of history. An LTR is calculated by dividing credit losses (i.e., charge-offs net of recoveries) by average net finance receivables, excluding unearned interest supplements and allowance for credit losses. The average LTR is multiplied by the end-of-period balances, representing the lifetime expected credit loss reserve. Dealer Loans. Ford Credit uses a weighted-average remaining maturity method to estimate the lifetime expected credit loss reserve for dealer loans. The loss model is based on the industry-wide commercial real estate credit losses, adjusted to factor in the historical credit losses for the dealer loans portfolio. The expected credit loss is calculated under different economic scenarios that are weighted to provide the total lifetime expected credit loss. After establishing the collective and specific allowance for credit losses, if management believes the allowance does not reflect all losses inherent in the portfolio due to changes in recent economic trends and conditions, or other relevant forward-looking economic factors, an adjustment is made based on management judgment. NOTE 8. FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued) An analysis of the allowance for credit losses related to finance receivables for the periods ended June 30 was as follows (in millions):
__________
During the second quarter and first half of 2020, the allowance for credit losses increased $54 million and $772 million, respectively. The change in the second quarter reflects an increase of $46 million, primarily attributable to COVID-19, and an increase for translation adjustments. The change in the first half reflects an increase to the reserve of $252 million related to the adoption of ASU 2016-13 and an increase of $532 million, primarily attributable to COVID-19, offset by a decrease for translation adjustments. The first half change to the reserve reflects economic uncertainty which, along with the expectation of continued higher unemployment, is expected to increase the probability of default and loss given default rates in our consumer portfolio, especially in the United States. These economic trends and conditions are also expected to negatively impact the dealers. The relatively moderate reserve increase in the second quarter reflects Ford Credit's view that future economic conditions are largely unchanged from its assumptions at March 31. Although net charge-offs during the second quarter and first half of 2020 remained low, reflecting government relief programs, customer payment deferral programs, and Ford Credit's decision to temporarily suspend involuntary repossessions, the future impact of COVID-19 on credit losses is expected to be adverse.
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Inventories (Notes) |
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES Inventories were as follows (in millions):
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Other Investments Other Investments (Notes) |
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Jun. 30, 2020 | |
Other Investments [Abstract] | |
Cost and Equity Method Investments Disclosure [Text Block] | OTHER INVESTMENTS We have investments in entities not accounted for under the equity method for which fair values are not readily available. We record these investments at cost (less impairment, if any), adjusted for observable price changes in orderly transactions for the identical or a similar investment of the same issuer. We report the carrying value of these investments in Other assets in the non-current assets section of our consolidated balance sheets. These investments were $1.2 billion and $1.6 billion at December 31, 2019 and June 30, 2020, respectively. The increase from December 31, 2019 primarily reflects our preferred security investment in Argo AI. See Note 17 for additional information relating to our Argo AI and VW transaction. In the second quarter of 2020, there were no material adjustments to the fair values of these investments held at June 30, 2020.
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Goodwill (Notes) |
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Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Disclosure [Text Block] | GOODWILL |
Other Liabilities and Deferred Revenue (Notes) |
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Other Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER LIABILITIES AND DEFERRED REVENUE | OTHER LIABILITIES AND DEFERRED REVENUE Other liabilities and deferred revenue were as follows (in millions):
__________ (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.
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Retirement Benefits (Notes) |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RETIREMENT BENEFITS | RETIREMENT BENEFITS Defined Benefit Plans - Expense The pre-tax net periodic benefit cost/(income) for our defined benefit pension and OPEB plans for the periods ended June 30 were as follows (in millions):
The service cost component is included in Cost of sales and Selling, administrative, and other expenses. Other components of net periodic benefit cost/(income) are included in Other income/(loss), net on our consolidated income statements. As part of our ongoing global redesign activities, we recognized additional expense of $232 million and $51 million in the second quarter of 2019 and 2020, respectively, and $245 million and $75 million in the first half of 2019 and 2020, respectively, related to separation programs. In addition, in the second quarter, we recognized settlements and curtailments, which required plan remeasurements at current discount rates, asset returns, and economic conditions. This resulted in remeasurement gains of $148 million and $170 million in the second quarter and first half of 2020, respectively. Until our global redesign actions are completed, we anticipate further adjustments to our plans in subsequent periods. Pension Plan Contributions During 2020, we expect to contribute between $500 million and $700 million of cash to our global funded pension plans. We also expect to make about $350 million of benefit payments to participants in unfunded plans. In the first half of 2020, we contributed $282 million to our worldwide funded pension plans and made $176 million of benefit payments to participants in unfunded plans.
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Debt (Notes) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT The carrying value of Automotive, Ford Credit, and Other debt was as follows (in millions):
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(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.
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Derivative Financial Instruments and Hedging Activities (Notes) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES In the normal course of business, our operations are exposed to global market risks, including the effect of changes in foreign currency exchange rates, certain commodity prices, and interest rates. To manage these risks, we enter into highly effective derivative contracts. We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting. Income Effect of Derivative Financial Instruments The gains/(losses), by hedge designation, reported in income for the periods ended June 30 were as follows (in millions):
__________
NOTE 15. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued) Balance Sheet Effect of Derivative Financial Instruments Derivative assets and liabilities are reported on our consolidated balance sheets at fair value and are presented on a gross basis. The notional amounts of the derivative instruments do not necessarily represent amounts exchanged by the parties and are not a direct measure of our financial exposure. We also enter into master agreements with counterparties that may allow for netting of exposures in the event of default or breach of the counterparty agreement. Collateral represents cash received or paid under reciprocal arrangements that we have entered into with our derivative counterparties, which we do not use to offset our derivative assets and liabilities. The fair value of our derivative instruments and the associated notional amounts were as follows (in millions):
__________
(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.
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Employee Separation Actions and Exit and Disposal Activities (Notes) |
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Restructuring and Related Activities Disclosure [Text Block] | EMPLOYEE SEPARATION ACTIONS AND EXIT AND DISPOSAL ACTIVITIES We record costs associated with voluntary separations at the time of employee acceptance, unless the acceptance requires explicit approval by the Company. We record costs associated with involuntary separation programs when management has approved the plan for separation, the affected employees are identified, and it is unlikely that actions required to complete the separation plan will change significantly. Costs associated with benefits that are contingent on the employee continuing to provide service are accrued over the required service period. Automotive Segment Global Redesign As previously announced, we are executing a global redesign of our business. Redesign-related activities, including employee separation costs, payments to dealers and suppliers, and other charges, are recorded in Cost of sales and Selling, administrative, and other expenses. Below are actions we have initiated as part of the redesign. Brazil. In February 2019, Ford Motor Company Brasil Ltda. (“Ford Brazil”), our subsidiary in Brazil, committed to a plan to exit the commercial heavy truck business in South America. As a result, Ford Brazil ceased production at the São Bernardo do Campo plant in Brazil during 2019. Russia. In March 2019, Ford Sollers Netherlands B.V. (“Ford Sollers”), a joint venture between Ford and Sollers PJSC (“Sollers”) in which Ford had control, announced its plan to restructure its business in Russia to focus exclusively on commercial vehicles and to exit the passenger car segment. As a result of these actions, Ford acquired 100% ownership of Ford Sollers and ceased production at the Naberezhnye Chelny and St. Petersburg vehicle assembly plants and the Elabuga engine plant during the second quarter of 2019. Subsequent to completion of the restructuring actions, in July 2019, Ford sold a 51% controlling interest in the restructured entity to Sollers, which resulted in deconsolidation of the Ford Sollers subsidiary. Our continued involvement in Ford Sollers is accounted for as an equity method investment. United Kingdom. In June 2019, Ford Motor Company Limited (“Ford of Britain”), a subsidiary of Ford, announced its plan to exit the Ford Bridgend plant in South Wales in 2020. India. In the third quarter of 2019, Ford committed to a plan to sell specific net assets in our India Automotive operations. See Note 17 for additional information concerning this plan. Other Global Redesign Actions. In 2018, we announced our plan to end production at the Ford Aquitaine Industries plant in Bordeaux, France, and in March 2019, we announced our plan to phase-out the production of the C-Max at the Saarlouis Body and Assembly Plant in Germany. Furthermore, we are reducing our global workforce and taking other restructuring actions. The following table summarizes the redesign-related activities for the periods ended June 30, which are recorded in Other liabilities and deferred revenue (in millions):
__________ (a) Excludes pension costs of $182 million and $51 million in the second quarter of 2019 and 2020, respectively, and $195 million and $75 million in the first half of 2019 and 2020, respectively. NOTE 16. EMPLOYEE SEPARATION ACTIONS AND EXIT AND DISPOSAL ACTIVITIES (Continued) We also recorded $291 million and $36 million in the second quarter of 2019 and 2020, respectively, and $542 million and $50 million in the first half of 2019 and 2020, respectively, for accelerated depreciation and other non-cash items. We estimate that we will incur total charges in 2020 that range between $700 million and $1.2 billion related to the actions above, primarily attributable to employee separations, accelerated depreciation, and dealer and supplier settlements. Other Actions United Automobile, Aerospace and Agricultural Implement Workers of America (“UAW”) Voluntary Separation Packages. As agreed in the collective bargaining agreement ratified in November 2019, during the first quarter of 2020, we offered voluntary separation packages to our UAW hourly workforce who were eligible for normal or early retirement, and recorded associated costs of $201 million in Cost of sales. All separations are expected to occur before the end of the year.
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Held-for-Sale Operations and Changes in Investments in Affiliates (Notes) |
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Held for Sale Operations Automotive Segment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | HELD-FOR-SALE OPERATIONS AND CHANGES IN INVESTMENTS IN AFFILIATES Automotive Segment In the third quarter of 2019, we committed to a plan to sell specific net assets in our India Automotive operations. We entered into a definitive agreement to form a joint venture with Mahindra & Mahindra Limited (“Mahindra”), with Mahindra owning a 51% controlling stake and Ford owning a 49% stake. Under the terms of the transaction, which is expected to close in 2020, we will sell certain India Automotive operations to the joint venture. Accordingly, we have reported the assets and liabilities of these operations as held for sale and ceased depreciation and amortization of those assets. The assets and liabilities of our India Automotive operations classified as held for sale were as follows (in millions):
__________
NOTE 17. HELD-FOR-SALE OPERATIONS AND CHANGES IN INVESTMENTS IN AFFILIATES (Continued) We recognized pre-tax impairment charges of $804 million in 2019, and $15 million and $18 million in the second quarter and first half of 2020, respectively, to adjust the carrying value of the held-for-sale assets to fair value less cost to sell. These charges are reported in Cost of sales. The value is measured on a nonrecurring basis and categorized within Level 3 of the fair value hierarchy. We determined fair value using a market approach, estimated based on expected proceeds to be received, which we conclude is most representative of the value of the assets given the current market conditions, the characteristics of viable market participants, and the pending sales transaction. The transaction is subject to regulatory approvals and satisfaction of other closing conditions that may impact the final proceeds received. Mobility Segment On June 1, 2020, we completed a transaction with VW that reduced our ownership interest in the autonomous vehicle technology company Argo AI and resulted in Ford and VW holding equal interests in Argo AI, with the remaining interest consisting of incentive units and founders’ equity. The transaction involved us selling a portion of our Argo AI equity to VW for $500 million and VW making additional investments in Argo AI, including contributing its Autonomous Intelligent Driving company. As a result of the transaction, we deconsolidated Argo AI, remeasured our retained investment in Argo AI at fair value, and recognized a $3.5 billion gain in Other income/(loss), of which $2.9 billion related to our retained investment in Argo AI. We measured the fair value of Argo AI using the income approach. The significant assumptions used in the valuation included Argo AI’s projected long-term cash flows and related terminal value, discounted at a rate typically used for a company at Argo AI’s stage of development. Our retained investment in Argo AI consists of an equity method investment of $2.4 billion and a preferred equity security investment of $400 million, reflected on our consolidated balance sheets in Equity in net assets of affiliated companies and Other assets, respectively. The difference between the fair value of our equity method investment and the carrying value of Argo AI’s net assets is primarily related to indefinite-lived assets. We also have agreed to future funding of Argo AI of $600 million, subject to capital calls, which will increase our preferred equity investment. Argo AI is a variable interest entity of which we are not the primary beneficiary. As of June 30, 2020, our maximum exposure to any potential losses associated with Argo AI is limited to our $2.8 billion of investments. NOTE 17. HELD-FOR-SALE OPERATIONS AND CHANGES IN INVESTMENTS IN AFFILIATES (Continued) Ford Credit Segment In the fourth quarter of 2019, Ford Credit committed to a plan to sell its operations in Forso, a wholly owned subsidiary of Ford Credit, which provides retail and dealer financing in Denmark, Finland, Norway, and Sweden. As a result, we classified the assets and liabilities of these operations as held for sale and recognized a pre-tax fair value impairment charge of $20 million, reported in Other income/(loss), net, in the fourth quarter of 2019. The assets and liabilities of the Forso operations classified as held for sale at December 31, 2019 were as follows (in millions):
__________
On February 28, 2020, Ford Credit completed the sale of Forso recognizing a pre-tax loss of $4 million, reported in Other income/(loss), net, and cash proceeds of $1.3 billion.
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Accumulated Other Comprehensive Income/(Loss) (Notes) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) The changes in the balances for each component of accumulated other comprehensive income/(loss) attributable to Ford Motor Company for the periods ended June 30 were as follows (in millions):
__________
(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.
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Commitments and Contingencies (Notes) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments and contingencies primarily consist of guarantees and indemnifications, litigation and claims, and warranty and field service actions. Guarantees and Indemnifications Financial Guarantees. Financial guarantees and indemnifications are recorded at fair value at their inception. Subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. The probability of default is applied to the expected exposure at the time of default less recoveries to determine the expected payments. Factors to consider when estimating the probability of default include the obligor’s financial position, forecasted economic environment, historical loss rates, and other communications. The liability recorded represents Ford’s exposure to credit risk. The maximum potential payments for financial guarantees were $162 million and $429 million at December 31, 2019 and June 30, 2020, respectively. The carrying value of recorded liabilities related to financial guarantees was $33 million and $43 million at December 31, 2019 and June 30, 2020, respectively. Our financial guarantees consist of debt and lease obligations of certain joint ventures, as well as certain financial obligations of outside third parties, including suppliers, to support our business and economic growth. Expiration dates vary through 2033, and guarantees will terminate on payment and/or cancellation of the underlying obligation. A payment by us would be triggered by failure of the joint venture or other third party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from a third party amounts paid by us under the guarantee. However, our ability to enforce these rights is sometimes stayed until the guaranteed party is paid in full, and may be limited in the event of insolvency of the third party or other circumstances. Non-Financial Guarantees. Non-financial guarantees and indemnifications are recorded at fair value at their inception. We regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the amount of probable payment is recorded. The maximum potential payments for non-financial guarantees were $587 million and $415 million at December 31, 2019 and June 30, 2020, respectively. The carrying value of recorded liabilities related to non-financial guarantees was $200 million and $110 million at December 31, 2019 and June 30, 2020, respectively. We guarantee the resale value of vehicles sold in certain arrangements to daily rental companies. The maximum potential payment of $410 million as of June 30, 2020 represents the total proceeds we guarantee the rental company will receive on re-sale. Reflecting our present estimate of proceeds the rental companies will receive on resale from third parties, we have recorded $109 million as our best estimate of the amount we will have to pay under the guarantee. In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction, such as the sale of a business. These indemnifications might include and are not limited to claims relating to any of the following: environmental, tax, and shareholder matters; intellectual property rights; power generation contracts; governmental regulations and employment-related matters; dealer, supplier, and other commercial contractual relationships; and financial matters, such as securitizations. Performance under these indemnities generally would be triggered by a breach of terms of the contract or a third-party claim. While some of these indemnifications are limited in nature, many of them do not limit potential payment. Therefore, we are unable to estimate a maximum amount of future payments that could result from claims made under these unlimited indemnities. NOTE 19. COMMITMENTS AND CONTINGENCIES (Continued) Litigation and Claims Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include, but are not limited to, matters arising out of alleged defects in our products; product warranties; governmental regulations relating to safety, emissions, and fuel economy or other matters; government incentives; tax matters; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer, supplier, and other contractual relationships; intellectual property rights; environmental matters; shareholder or investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages in very large amounts, or demands for field service actions, environmental remediation programs, sanctions, loss of government incentives, assessments, or other relief, which, if granted, would require very large expenditures. The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome. We accrue for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time. For the majority of matters, which generally arise out of alleged defects in our products, we establish an accrual based on our extensive historical experience with similar matters. We do not believe there is a reasonably possible outcome materially in excess of our accrual for these matters. For the remaining matters, where our historical experience with similar matters is of more limited value (i.e., “non-pattern matters”), we evaluate the matters primarily based on the individual facts and circumstances. For non-pattern matters, we evaluate whether there is a reasonable possibility of a material loss in excess of any accrual that can be estimated. Our estimate of reasonably possible loss in excess of our accruals for all material matters currently reflects indirect tax and customs matters, for which we estimate the aggregate risk to be a range of up to about $400 million. In addition, we have a reasonably possible risk of loss for an emission certification matter. At this stage, we cannot estimate the risk of loss or predict the outcome, and cannot provide reasonable assurance that it will not have a material adverse effect on us. As noted, the litigation process is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance. Our assessments are based on our knowledge and experience, but the ultimate outcome of any matter could require payment substantially in excess of the amount that we have accrued and/or disclosed. NOTE 19. COMMITMENTS AND CONTINGENCIES (Continued) Warranty and Field Service Actions We accrue the estimated cost of both base warranty coverages and field service actions at the time of sale. We establish our estimate of base warranty obligations using a patterned estimation model, using historical information regarding the nature, frequency, and average cost of claims for each vehicle line by model year. We establish our estimates of field service action obligations using a patterned estimation model, using historical information regarding the nature, frequency, severity, and average cost of claims for each model year. In addition, from time to time, we issue extended warranties at our expense, the estimated cost of which is accrued at the time of issuance. Warranty and field service action obligations are reported in Other liabilities and deferred revenue. We reevaluate the adequacy of our accruals on a regular basis. We recognize the benefit from a recovery of the costs associated with our warranty and field service actions when specifics of the recovery have been agreed with our supplier and the amount of recovery is virtually certain. Recoveries are reported in Trade and other receivables, net and Other assets. The estimate of our future warranty and field service action costs, net of estimated supplier recoveries, for the periods ended June 30 was as follows (in millions):
Changes to our estimated costs are reported as changes in accrual related to pre-existing warranties in the table above.
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Segment Information (Notes) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION We report segment information consistent with the way our chief operating decision maker evaluates the operating results and performance of the Company. Accordingly, we analyze the results of our business through the following segments: Automotive, Mobility, and Ford Credit. Below is a description of our reportable segments and other activities. Automotive Segment Our Automotive segment primarily includes the sale of Ford and Lincoln vehicles, service parts, and accessories worldwide, together with the associated costs to develop, manufacture, distribute, and service the vehicles, parts, and accessories. This segment includes revenues and costs related to our electrification vehicle programs. The segment includes the following regional business units: North America, South America, Europe, China (including Taiwan), and the International Markets Group. Mobility Segment Our Mobility segment primarily includes development costs related to our autonomous vehicles and our investment in mobility through Ford Smart Mobility LLC (“FSM”). Autonomous vehicles includes self-driving systems development and vehicle integration, autonomous vehicle research and advanced engineering, autonomous vehicle transportation-as-a-service network development, user experience, and business strategy and business development teams. FSM designs and builds mobility products and subscription services on its own, and collaborates with service providers and technology companies. Ford Credit Segment The Ford Credit segment is comprised of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Corporate Other Corporate Other primarily includes corporate governance expenses, interest income (excluding interest earned on our extended service contract portfolio that is included in our Automotive segment) and gains and losses from our cash, cash equivalents, marketable securities, and other investments, and foreign exchange derivatives gains and losses associated with intercompany lending. Corporate governance expenses are primarily administrative, delivering benefit on behalf of the global enterprise, and are not allocated to specific Automotive business units or operating segments. These include expenses related to setting and directing global policy, providing oversight and stewardship, and promoting the Company’s interests. The underlying assets and liabilities associated with these activities remain with the respective Automotive and Mobility segments. Interest on Debt Interest on Debt is presented as a separate reconciling item and consists of interest expense on Automotive and Other debt. The underlying liability is reported in the Automotive segment and in Corporate Other. Special Items Special Items are presented as a separate reconciling item. They 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. Our management excludes these items from its review of the results of the operating segments for purposes of measuring segment profitability and allocating resources. We also report these special items separately to help investors track amounts related to these activities and to allow investors analyzing our results to identify certain infrequent significant items that they may wish to exclude when considering the trend of ongoing operating results. NOTE 20. SEGMENT INFORMATION (Continued) Key financial information for the periods ended or at June 30 was as follows (in millions):
__________ (a) Includes eliminations of intersegment transactions occurring in the ordinary course of business and deferred tax netting.
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Presentation Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | For purposes of this report, “Ford,” the “Company,” “we,” “our,” “us,” or similar references mean Ford Motor Company, our consolidated subsidiaries, and our consolidated VIEs of which we are the primary beneficiary, unless the context requires otherwise. We also make reference to Ford Motor Credit Company LLC, herein referenced to as Ford Credit. Our consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, instructions to the Quarterly Report on Form 10-Q, and Rule 10-01 of Regulation S-X.
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Basis of Accounting, Policy [Policy Text Block] | Our consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, instructions to the Quarterly Report on Form 10-Q, and Rule 10-01 of Regulation S-X. |
New Accounting Standards New Accounting Standards (Policies) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Standards Update (“ASU”) 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments. On January 1, 2020, we adopted the new credit loss standard and all of the related amendments, which replaced the incurred loss impairment method with a method that reflects lifetime expected credit losses. We adopted the changes in accounting for credit losses by recognizing the cumulative effect of initially applying the new credit loss standard as an adjustment to the opening balance of Retained earnings. The comparative information has not been restated and continues to be reported under the accounting standard in effect for those periods. The cumulative effect of the changes made to our consolidated balance sheet at January 1, 2020, for the adoption of ASU 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments, was as follows (in millions):
ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. On April 1, 2020, we adopted the new standard, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform (e.g., discontinuation of LIBOR) if certain criteria are met. As of June 30, 2020, we have not yet elected any optional expedients provided in the standard. We will apply the accounting relief as relevant contract and hedge accounting relationship modifications are made during the reference rate reform transition period. We do not expect the standard to have a material impact on our consolidated financial statements.
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Revenue Revenue (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue [Policy Text Block] | The amount of consideration we receive and revenue we recognize on our vehicles, parts, and accessories varies with changes in return rights and marketing incentives we offer to our customers and their customers. Estimates of marketing incentives are based on expected retail and fleet sales volumes, mix of products to be sold, and incentive programs to be offered. Customer acceptance of products and programs, as well as other market conditions, will impact these estimates. As a result of changes in our estimate of marketing incentives, we recorded a decrease in revenue of $350 million in the second quarter of 2019 and an increase in revenue of $48 million in the second quarter of 2020 related to revenue recognized in prior periods. |
Income Taxes Income Taxes (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax, Policy [Policy Text Block] |
Cash, Cash Equivalents, and Marketable Securities Cash, Cash Equivalents, and Marketable Securities (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Cash, Cash Equivalents, and Marketable Securities [Abstract] | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents are highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of change in value due to interest rate, quoted price, or penalty on withdrawal. A debt security is classified as a cash equivalent if it meets these criteria and if it has a remaining time to maturity of three months or less from the date of acquisition. Amounts on deposit and available upon demand, or negotiated to provide for daily liquidity without penalty, are classified as cash and cash equivalents. Time deposits, certificates of deposit, and money market accounts that meet the above criteria are reported at par value on our consolidated balance sheets.
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Marketable Securities, Policy [Policy Text Block] | Investments in securities with a maturity date greater than three months at the date of purchase, and other securities for which there is more than an insignificant risk of change in value due to interest rate, quoted price, or penalty on withdrawal, are classified as marketable securities. |
Ford Credit Finance Receivables and Allowance for Credit Losses Ford Credit Finance Receivables (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Financing Receivable, Allowance for Credit Losses, Policy for Uncollectible Amounts [Policy Text Block] | The allowance for credit losses represents an estimate of the lifetime expected credit losses inherent in finance receivables as of the balance sheet date. Additions to the allowance for credit losses are made by recording charges to Ford Credit interest, operating, and other expenses on our consolidated income statements. The uncollectible portion of a finance receivable is charged to the allowance for credit losses at the earlier of when an account is deemed to be uncollectible or when an account is 120 days delinquent, taking into consideration the financial condition of the customer or borrower, the value of the collateral, recourse to guarantors, and other factors. Charge-offs on finance receivables include uncollected amounts related to principal, interest, late fees, and other allowable charges. Recoveries on finance receivables previously charged off as uncollectible are credited to the allowance for credit losses. In the event Ford Credit repossesses the collateral, the receivable is charged off and the collateral is recorded at its estimated fair value less costs to sell and reported in Other assets on our consolidated balance sheets.
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Financing Receivable [Policy Text Block] | Ford Credit manages finance receivables as “consumer” and “non-consumer” portfolios. The receivables are generally secured by the vehicles, inventory, or other property being financed. Finance receivables are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses. For all finance receivables, Ford Credit defines "past due" as any payment, including principal and interest, that is at least 31 days past the contractual due date.
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Other Investments Other Investments - (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity and Cost Method Investments, Policy [Policy Text Block] |
Retirement Benefits Pension and Other Postemployment Benefits (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Pension and Other Postretirement Plans, Pensions, Policy [Policy Text Block] | The service cost component is included in Cost of sales and Selling, administrative, and other expenses. Other components of net periodic benefit cost/(income) are included in Other income/(loss), net on our consolidated income statements.
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Derivative Financial Instruments and Hedging Activities Derivative Financial Instruments and Hedging Activities (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Policy [Policy Text Block] | In the normal course of business, our operations are exposed to global market risks, including the effect of changes in foreign currency exchange rates, certain commodity prices, and interest rates. To manage these risks, we enter into highly effective derivative contracts. We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting. Derivative assets and liabilities are reported on our consolidated balance sheets at fair value and are presented on a gross basis. The notional amounts of the derivative instruments do not necessarily represent amounts exchanged by the parties and are not a direct measure of our financial exposure. We also enter into master agreements with counterparties that may allow for netting of exposures in the event of default or breach of the counterparty agreement. Collateral represents cash received or paid under reciprocal arrangements that we have entered into with our derivative counterparties, which we do not use to offset our derivative assets and liabilities. |
Employee Separation Actions and Exit and Disposal Activities (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Restructuring Charges [Abstract] | |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block] | We record costs associated with voluntary separations at the time of employee acceptance, unless the acceptance requires explicit approval by the Company. We record costs associated with involuntary separation programs when management has approved the plan for separation, the affected employees are identified, and it is unlikely that actions required to complete the separation plan will change significantly. Costs associated with benefits that are contingent on the employee continuing to provide service are accrued over the required service period. |
Held-for-Sale Operations and Changes in Investments in Affiliates Description and Timing of Sale (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Costs Associated with Exit or Disposal Activity or Restructuring [Policy Text Block] | We recognized pre-tax impairment charges of $804 million in 2019, and $15 million and $18 million in the second quarter and first half of 2020, respectively, to adjust the carrying value of the held-for-sale assets to fair value less cost to sell. These charges are reported in Cost of sales. The value is measured on a nonrecurring basis and categorized within Level 3 of the fair value hierarchy. We determined fair value using a market approach, estimated based on expected proceeds to be received, which we conclude is most representative of the value of the assets given the current market conditions, the characteristics of viable market participants, and the pending sales transaction. The transaction is subject to regulatory approvals and satisfaction of other closing conditions that may impact the final proceeds received.
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Commitments and Contingencies Commitments and Contingencies (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies, Policy [Policy Text Block] | As noted, the litigation process is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance. Our assessments are based on our knowledge and experience, but the ultimate outcome of any matter could require payment substantially in excess of the amount that we have accrued and/or disclosed. Litigation and Claims Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include, but are not limited to, matters arising out of alleged defects in our products; product warranties; governmental regulations relating to safety, emissions, and fuel economy or other matters; government incentives; tax matters; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer, supplier, and other contractual relationships; intellectual property rights; environmental matters; shareholder or investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages in very large amounts, or demands for field service actions, environmental remediation programs, sanctions, loss of government incentives, assessments, or other relief, which, if granted, would require very large expenditures. The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome. We accrue for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time. For the majority of matters, which generally arise out of alleged defects in our products, we establish an accrual based on our extensive historical experience with similar matters. We do not believe there is a reasonably possible outcome materially in excess of our accrual for these matters. |
Guarantees, Indemnifications and Warranties Policies [Policy Text Block] | Warranty and Field Service Actions We accrue the estimated cost of both base warranty coverages and field service actions at the time of sale. We establish our estimate of base warranty obligations using a patterned estimation model, using historical information regarding the nature, frequency, and average cost of claims for each vehicle line by model year. We establish our estimates of field service action obligations using a patterned estimation model, using historical information regarding the nature, frequency, severity, and average cost of claims for each model year. In addition, from time to time, we issue extended warranties at our expense, the estimated cost of which is accrued at the time of issuance. Warranty and field service action obligations are reported in Other liabilities and deferred revenue. We reevaluate the adequacy of our accruals on a regular basis. We recognize the benefit from a recovery of the costs associated with our warranty and field service actions when specifics of the recovery have been agreed with our supplier and the amount of recovery is virtually certain. Recoveries are reported in Trade and other receivables, net and Other assets. We guarantee the resale value of vehicles sold in certain arrangements to daily rental companies. The maximum potential payment of $410 million as of June 30, 2020 represents the total proceeds we guarantee the rental company will receive on re-sale. Reflecting our present estimate of proceeds the rental companies will receive on resale from third parties, we have recorded $109 million as our best estimate of the amount we will have to pay under the guarantee. In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction, such as the sale of a business. These indemnifications might include and are not limited to claims relating to any of the following: environmental, tax, and shareholder matters; intellectual property rights; power generation contracts; governmental regulations and employment-related matters; dealer, supplier, and other commercial contractual relationships; and financial matters, such as securitizations. Performance under these indemnities generally would be triggered by a breach of terms of the contract or a third-party claim. While some of these indemnifications are limited in nature, many of them do not limit potential payment. Therefore, we are unable to estimate a maximum amount of future payments that could result from claims made under these unlimited indemnities.
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Segment Information Segment Information (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting, Policy [Policy Text Block] | We report segment information consistent with the way our chief operating decision maker evaluates the operating results and performance of the Company. Accordingly, we analyze the results of our business through the following segments: Automotive, Mobility, and Ford Credit. Below is a description of our reportable segments and other activities. Automotive Segment Our Automotive segment primarily includes the sale of Ford and Lincoln vehicles, service parts, and accessories worldwide, together with the associated costs to develop, manufacture, distribute, and service the vehicles, parts, and accessories. This segment includes revenues and costs related to our electrification vehicle programs. The segment includes the following regional business units: North America, South America, Europe, China (including Taiwan), and the International Markets Group. Mobility Segment Our Mobility segment primarily includes development costs related to our autonomous vehicles and our investment in mobility through Ford Smart Mobility LLC (“FSM”). Autonomous vehicles includes self-driving systems development and vehicle integration, autonomous vehicle research and advanced engineering, autonomous vehicle transportation-as-a-service network development, user experience, and business strategy and business development teams. FSM designs and builds mobility products and subscription services on its own, and collaborates with service providers and technology companies. Ford Credit Segment The Ford Credit segment is comprised of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Corporate Other Corporate Other primarily includes corporate governance expenses, interest income (excluding interest earned on our extended service contract portfolio that is included in our Automotive segment) and gains and losses from our cash, cash equivalents, marketable securities, and other investments, and foreign exchange derivatives gains and losses associated with intercompany lending. Corporate governance expenses are primarily administrative, delivering benefit on behalf of the global enterprise, and are not allocated to specific Automotive business units or operating segments. These include expenses related to setting and directing global policy, providing oversight and stewardship, and promoting the Company’s interests. The underlying assets and liabilities associated with these activities remain with the respective Automotive and Mobility segments. Interest on Debt Interest on Debt is presented as a separate reconciling item and consists of interest expense on Automotive and Other debt. The underlying liability is reported in the Automotive segment and in Corporate Other. Special Items Special Items are presented as a separate reconciling item. They 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. Our management excludes these items from its review of the results of the operating segments for purposes of measuring segment profitability and allocating resources. We also report these special items separately to help investors track amounts related to these activities and to allow investors analyzing our results to identify certain infrequent significant items that they may wish to exclude when considering the trend of ongoing operating results.
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New Accounting Standards New Accounting Pronouncements or Change in Accounting Principle (Tables) |
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Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The cumulative effect of the changes made to our consolidated balance sheet at January 1, 2020, for the adoption of ASU 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments, was as follows (in millions):
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Revenue (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation Of Revenue | The following table disaggregates our revenue by major source for the periods ended June 30 (in millions):
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Other Income/(Loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | The amounts included in Other income/(loss), net for the periods ended June 30 were as follows (in millions):
__________ (a) See Note 17 for additional information relating to our Argo AI, LLC (“Argo AI”) and Volkswagen AG (“VW”) transaction.
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Capital Stock and Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block] | Basic and diluted income/(loss) per share were calculated using the following (in millions):
__________ (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.
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Cash, Cash Equivalents, and Marketable Securities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Cash, Cash Equivalents, and Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | The fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis were as follows (in millions):
__________ (a) Net unrealized gains/losses incurred during the reporting periods on equity securities still held at December 31, 2019 and June 30, 2020 were a $44 million loss and a $29 million loss, respectively.
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Available-for-sale Securities [Table Text Block] | The cash equivalents and marketable securities accounted for as available-for-sale (“AFS”) securities were as follows (in millions):
Sales proceeds and gross realized gains/losses from the sale of AFS securities for the periods ended June 30 were as follows (in millions):
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Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block] | The present fair values and gross unrealized losses for cash equivalents and marketable securities accounted for as AFS securities that were in an unrealized loss position, aggregated by investment category and the length of time that individual securities have been in a continuous loss position, were as follows (in millions):
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Schedule Cash, Cash Equivalents, and Restricted Cash [Table Text Block] | Cash, cash equivalents, and restricted cash, as reported in the consolidated statements of cash flows, were as follows (in millions):
__________
(b) Included in Other assets in the non-current assets section of our consolidated balance sheets.
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Ford Credit Finance Receivables (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable, Past Due [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable, Past Due [Table Text Block] | The credit quality analysis of consumer receivables at December 31, 2019 was as follows (in millions):
The credit quality analysis of consumer receivables at June 30, 2020 was as follows (in millions):
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Net finance receivables [Table Text Block] | Finance receivables are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses. For all finance receivables, Ford Credit defines "past due" as any payment, including principal and interest, that is at least 31 days past the contractual due date. Ford Credit finance receivables, net were as follows (in millions):
__________
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Financing receivable credit quality indicators [Table Text Block] | The credit quality analysis of dealer financing receivables at December 31, 2019 was as follows (in millions):
__________
The credit quality analysis of dealer financing receivables at June 30, 2020 was as follows (in millions):
__________ (a) Total past due dealer financing receivables at June 30, 2020 were $143 million.
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Ford Credit Finance Receivables and Allowance for Credit Losses Allowance for Credit Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable, Allowance for Credit Loss [Table Text Block] | An analysis of the allowance for credit losses related to finance receivables for the periods ended June 30 was as follows (in millions):
__________
(d) Primarily represents amounts related to translation adjustments.
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Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory [Table Text Block] | Inventories were as follows (in millions):
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Other Liabilities and Deferred Revenue (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities and Deferred Revenue [Table Text Block] | Other liabilities and deferred revenue were as follows (in millions):
__________ (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.
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Retirement Benefits (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans - Expense | The pre-tax net periodic benefit cost/(income) for our defined benefit pension and OPEB plans for the periods ended June 30 were as follows (in millions):
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Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt outstanding [Table Text Block] | The carrying value of Automotive, Ford Credit, and Other debt was as follows (in millions):
__________
(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.
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Derivative Financial Instruments and Hedging Activities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Effect of Derivative Instruments [Table Text Block] | The gains/(losses), by hedge designation, reported in income for the periods ended June 30 were as follows (in millions):
__________
(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.
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Balance Sheet Effect of Derivative Instruments [Table Text Block] | The fair value of our derivative instruments and the associated notional amounts were as follows (in millions):
__________
(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.
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Employee Separation Actions and Exit and Disposal Activities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the redesign-related activities for the periods ended June 30, which are recorded in Other liabilities and deferred revenue (in millions):
__________ (a) Excludes pension costs of $182 million and $51 million in the second quarter of 2019 and 2020, respectively, and $195 million and $75 million in the first half of 2019 and 2020, respectively.
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Held-for-Sale Operations and Changes in Investments in Affiliates (Tables) - Operating Segments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Automotive | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations [Table Text Block] | The assets and liabilities of our India Automotive operations classified as held for sale were as follows (in millions):
__________ (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.
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Ford Credit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations [Table Text Block] | The assets and liabilities of the Forso operations classified as held for sale at December 31, 2019 were as follows (in millions):
__________
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Accumulated Other Comprehensive Income/(Loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The changes in the balances for each component of accumulated other comprehensive income/(loss) attributable to Ford Motor Company for the periods ended June 30 were as follows (in millions):
__________
(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.
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Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty [Table Text Block] | The estimate of our future warranty and field service action costs, net of estimated supplier recoveries, for the periods ended June 30 was as follows (in millions):
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Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Key financial information for the periods ended or at June 30 was as follows (in millions):
__________ (a) Includes eliminations of intersegment transactions occurring in the ordinary course of business and deferred tax netting.
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Presentation Global Pandemic (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2020 |
Jun. 30, 2020 |
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Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 228 | $ 1,100 |
Ford Credit | ||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 54 | 772 |
Ford Credit | Global Pandemic [Member] | ||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | $ 46 | $ 532 |
Revenue Revenue - Narrative (Details) - Operating Segments - Automotive - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
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Vehicles, parts, and accessories | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue Performance Obligation Satisfied In Prior Period | $ 48 | $ (350) | |||
Extended service contracts | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract with Customer, Liability | 4,000 | $ 4,000 | $ 4,200 | ||
Contract with Customer, Liability, Revenue Recognized | 276 | 285 | 606 | $ 590 | |
Capitalized Contract Cost, Net | 276 | 276 | $ 270 | ||
Capitalized Contract Cost, Amortization | $ 19 | $ 20 | $ 39 | $ 39 |
Other Income/(Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
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Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | $ 544 | $ 111 | $ 995 | $ 383 |
Investment-related interest income | 122 | 207 | 284 | 410 |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 12 | (1) | (11) | (21) |
Gain (Loss) on Investments | 47 | (187) | 15 | (120) |
Gains (Losses) On Changes In Investments In Affiliates | 3,465 | (1) | 3,480 | 2 |
Gain (Loss) on Extinguishment of Debt | (1) | (53) | (1) | (53) |
Royalty income | 94 | 108 | 183 | 192 |
Other | 35 | 88 | 53 | 107 |
Total | $ 4,318 | $ 272 | $ 4,998 | $ 900 |
Income Taxes Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2020 |
Jun. 30, 2020 |
|
Income Taxes [Line Items] | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 228 | $ 1,100 |
Capital Stock and Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 25 | |
Basic and Diluted Income Attributable to Ford Motor Company [Abstract] | ||||
Basic income/(loss) | $ 1,117 | $ 148 | $ (876) | $ 1,294 |
Diluted income/(loss) | $ 1,117 | $ 148 | $ (876) | $ 1,294 |
Basic and Diluted Shares [Abstract] | ||||
Basic shares (average shares outstanding) | 3,975 | 3,984 | 3,969 | 3,979 |
Net dilutive options, unvested restricted stock units, and unvested restricted stock shares (a) | 17 | 29 | 0 | 26 |
Diluted shares | 3,992 | 4,013 | 3,969 | 4,005 |
Cash, Cash Equivalents, and Marketable Securities Sales Proceeds and Realized Gains/Losses (Details) - Operating Segments - Automotive - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Debt Securities, Available-for-sale [Line Items] | ||||
Sales proceeds | $ 2,452 | $ 1,858 | $ 4,317 | $ 3,000 |
Gross realized gains | 21 | 3 | 28 | 5 |
Gross realized losses | $ 3 | $ 5 | $ 10 | $ 10 |
Inventories (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials, work-in-process, and supplies | $ 4,367 | $ 4,402 |
Finished products | 5,853 | 6,384 |
Total inventories | $ 10,220 | $ 10,786 |
Other Investments Other Investments (Details) - USD ($) |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Other Investments [Abstract] | |||
Equity Securities without Readily Determinable Fair Value, Amount | $ 1,200,000,000 | ||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $ 0 | $ 0 |
Goodwill (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 254 | $ 278 |
Other Liabilities and Deferred Revenue (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Dealer and dealers’ customer allowances and claims | $ 11,632 | $ 13,113 |
Deferred revenue | 2,021 | 2,091 |
Employee benefit plans | 1,483 | 1,857 |
Accrued interest | 1,117 | 1,128 |
OPEB (a) | 327 | 332 |
Pension (a) | 184 | 185 |
Operating lease liabilities | 339 | 367 |
Other | 3,689 | 3,914 |
Total current other liabilities and deferred revenue | 20,792 | 22,987 |
Accounts Payable and Accrued Liabilities, Noncurrent [Abstract] | ||
Pension (a) | 9,487 | 9,878 |
OPEB (a) | 5,661 | 5,740 |
Dealer and dealers’ customer allowances and claims | 2,464 | 1,921 |
Deferred revenue | 4,257 | 4,191 |
Operating lease liabilities | 914 | 1,047 |
Employee benefit plans | 1,105 | 1,104 |
Other | 1,503 | 1,443 |
Total non-current other liabilities and deferred revenue | 25,391 | 25,324 |
Net pension assets | $ 3,800 | $ 3,200 |
Retirement Benefits Narrative (Details) - Global Redesign - Pension Plan - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | $ 51 | $ 232 | $ 75 | $ 245 |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Remeasurement due to Settlement | $ (148) | $ (170) |
Employee Separation Actions and Exit and Disposal Activities Other Actions (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2020
USD ($)
| |
Voluntary Separation Package | Cost of Sales | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | $ 201 |
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