FORD MOTOR CO (F) SEC Filing 10-K Annual report for the fiscal year ending Sunday, December 31, 2017

View amendments to this 10-K report filed on 3/28/2018
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FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT (in millions, except per share amounts) For the years ended December 31, 2015 2016 2017 Revenues (unaudited) Automotive $ 140,566 $ 141,546 $ 145,653 Financial Services 8,992 10,253 11,113 Other — 1 10 Total revenues 149,558 151,800 156,776 Costs and expenses Cost of sales 124,446 126,183 131,332 Selling, administrative, and other expenses 10,763 10,972 11,527 Financial Services interest, operating, and other expenses 7,368 8,904 9,104 Total costs and expenses 142,577 146,059 151,963 Interest expense on Automotive debt 773 894 1,133 Non-Financial Services other income/(loss), net 1,854 (269 ) 3,060 Financial Services other income/(loss), net 372 438 207 Equity in net income of affiliated companies 1,818 1,780 1,201 Income before income taxes 10,252 6,796 8,148 Provision for/(Benefit from) income taxes 2,881 2,189 520 Net income 7,371 4,607 7,628 Less: Income/(Loss) attributable to noncontrolling interests (2 ) 11 26 Net income attributable to Ford Motor Company $ 7,373 $ 4,596 $ 7,602 EARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK Basic income $ 1.86 $ 1.16 $ 1.91 Diluted income 1.84 1.15 1.90 Cash dividends declared 0.60 0.85 0.65


 
FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (in millions) December 31, 2016 December 31, 2017 ASSETS (unaudited) Cash and cash equivalents $ 15,905 $ 18,492 Marketable securities 22,922 20,435 Financial Services finance receivables, net 46,266 52,210 Trade and other receivables, less allowances of $392 and $412 11,102 10,599 Inventories 8,898 10,277 Other assets 3,368 3,889 Total current assets 108,461 115,902 Financial Services finance receivables, net 49,924 56,182 Net investment in operating leases 28,829 28,235 Net property 32,072 35,327 Equity in net assets of affiliated companies 3,304 3,085 Deferred income taxes 9,705 10,973 Other assets 5,656 8,104 Total assets $ 237,951 $ 257,808 LIABILITIES Payables $ 21,296 $ 23,282 Other liabilities and deferred revenue 19,316 19,697 Automotive debt payable within one year 2,685 3,356 Financial Services debt payable within one year 46,984 48,265 Total current liabilities 90,281 94,600 Other liabilities and deferred revenue 24,395 24,711 Automotive long-term debt 13,222 12,575 Financial Services long-term debt 80,079 90,091 Deferred income taxes 691 815 Total liabilities 208,668 222,792 Redeemable noncontrolling interest 96 98 EQUITY Common Stock, par value $.01 per share (3,987 million shares issued of 6 billion authorized) 40 40 Class B Stock, par value $.01 per share (71 million shares issued of 530 million authorized) 1 1 Capital in excess of par value of stock 21,630 21,843 Retained earnings 15,634 21,218 Accumulated other comprehensive income/(loss) (7,013 ) (6,959 ) Treasury stock (1,122 ) (1,253 ) Total equity attributable to Ford Motor Company 29,170 34,890 Equity attributable to noncontrolling interests 17 28 Total equity 29,187 34,918 Total liabilities and equity $ 237,951 $ 257,808


 
FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (in millions) For the years ended December 31, 2015 2016 2017 Cash flows from operating activities (unaudited) Net income $ 7,371 $ 4,607 $ 7,628 Depreciation and tooling amortization 7,993 9,023 9,122 Other amortization (27 ) (306 ) (669 ) Provision for credit and insurance losses 418 672 717 Pension and other postretirement employee benefits (“OPEB”) expense 512 2,667 (608 ) Equity investment (earnings)/losses in excess of dividends received (333 ) (178 ) 240 Foreign currency adjustments 710 283 (403 ) Net (gain)/loss on changes in investments in affiliates (42 ) (139 ) (7 ) Stock compensation 199 210 246 Net change in wholesale and other receivables (5,090 ) (1,449 ) (836 ) Provision for deferred income taxes 2,120 1,478 (232 ) Decrease/(Increase) in accounts receivable and other assets (3,563 ) (2,855 ) (2,297 ) Decrease/(Increase) in inventory (1,155 ) (815 ) (959 ) Increase/(Decrease) in accounts payable and accrued and other liabilities 7,758 6,595 6,089 Other (645 ) 57 65 Net cash provided by/(used in) operating activities 16,226 19,850 18,096 Cash flows from investing activities Capital spending (7,196 ) (6,992 ) (7,049 ) Acquisitions of finance receivables and operating leases (57,217 ) (56,007 ) (59,354 ) Collections of finance receivables and operating leases 38,130 38,834 44,641 Purchases of equity and debt securities (41,279 ) (31,428 ) (27,567 ) Sales and maturities of equity and debt securities 40,766 29,354 29,898 Settlements of derivatives 134 825 100 Other 500 62 (61 ) Net cash provided by/(used in) investing activities (26,162 ) (25,352 ) (19,392 ) Cash flows from financing activities Cash dividends (2,380 ) (3,376 ) (2,584 ) Purchases of common stock (129 ) (145 ) (131 ) Net changes in short-term debt 1,646 3,864 1,229 Proceeds from issuance of other debt 48,860 45,961 45,801 Principal payments on other debt (33,358 ) (38,797 ) (40,770 ) Other (373 ) (107 ) (151 ) Net cash provided by/(used in) financing activities 14,266 7,400 3,394 Effect of exchange rate changes on cash and cash equivalents (815 ) (265 ) 489 Net increase/(decrease) in cash and cash equivalents $ 3,515 $ 1,633 $ 2,587 Cash and cash equivalents at January 1 $ 10,757 $ 14,272 $ 15,905 Net increase/(decrease) in cash and cash equivalents 3,515 1,633 2,587 Cash and cash equivalents at December 31 $ 14,272 $ 15,905 $ 18,492


 
The tables below provide supplemental consolidating financial information. The data is presented by our reportable segments, Automotive and Financial Services. All Other, Special Items, and Adjustments include our operating segments that did not meet the quantitative threshold to qualify as a reportable segment, special items, eliminations of intersegment transactions, and deferred tax netting. Selected Income Statement Information. The following table provides supplemental income statement information, by segm nt (in milli ns): For the year ended December 31, 2017 (unaudited) Automotive Financial Servi es All Other, Special Items, & Adjustments Consolidated Total revenues $ 145,653 $ 11,113 $ 10 $ 156,776 costs and expenses 2 268 9, 04 591 1 963 Interest expe se on Automotive debt — — 1,133 ,13 Other income/(loss), net 2,705 207 355 3,267 Equity in net income of affiliated companies 1,169 32 — 1, 01 Income/(loss) before income taxes 7,25 2,248 (1,359 ) 8,148 Provision for/(B nefit from) income taxes 2 365 (696) 14 520 Net income/(Loss) 4,894 2,944 (210 ) 7,6 8 L ss: Income/(Loss) attributable to noncontrolling interests 26 — — 26 Net income/(Los ) attributable to Ford Motor Company $ 4,868 $ 2,944 $ (210 ) $ 7,602 For the year ended December 31, 2017 (unaudited) Automotive Financial Services All Other, Special Items, & Adjustments Consolidated Total revenues $ 145,653 $ 11,113 $ 10 $ 156,776 Total costs and expenses 142,268 9,104 591 151,963 Inter st expen e on Automotive debt — — 1,133 1,133 O her inc /(loss), net 2,705 207 355 3,267 Equity in net income of affiliated companies 1,169 32 — 1,201 Income/(loss) before income taxes 7,259 2,248 (1,359 ) 8,148 Provisio for/(Be fit from) income t xes 3 (696 ( 49) 520 Net inco e/(Loss) 94 2,944 8 Less: Income/(Loss) attributable to noncontrolling interests 26 — — 26 Net income/(Loss) attributable to Ford Motor Company $ 4,868 $ 2,944 $ (210 ) $ 7,602 )


 
Selected Balance Sheet Information. The following tables provide supplemental balance sheet information, by segment (in millions): December 31, 2017 (unaudited) Assets Automotive Financial Services All Other & Adjustments Consolidated Cash and cash equivalents $ 8,930 $ 9,558 $ 4 $ 18,492 Marketable securities 17,554 2,881 — 20,435 Financial Services finance receivables, net — 52,210 — 52,210 Trade and other receivables, less allowances 4,049 6,548 2 10,599 Inventories 10,277 — — 10,277 Other assets 2,631 1,258 — 3,889 Receivable from other segments 57 1,948 (2,005 ) — Total current assets 43,498 74,403 (1,999 ) 115,902 Financial Services finance receivables, net — 56,182 — 56,182 Net investment in operating leases 1,574 26,661 — 28,235 Net property 35,133 177 17 35,327 Equity in net assets of affiliated companies 2,984 101 — 3,085 Deferred income taxes 13,367 247 (2,641 ) 10,973 Other assets 6,329 1,702 73 8,104 Receivable from other segments — 865 (865 ) — Total assets $ 102,885 $ 160,338 $ (5,415 ) $ 257,808 Liabilities Payables $ 22,115 $ 1,162 $ 5 $ 23,282 Other liabilities and deferred revenue 18,278 1,403 16 19,697 Automotive debt payable within one year 3,356 — — 3,356 Financial Services debt payable within one year — 48,265 — 48,265 Payable to other segments 1,945 — (1,945 ) — Total current liabilities 45,694 50,830 (1,924 ) 94,600 Other liabilities and deferred revenue 23,602 1,107 2 24,711 Automotive long-term debt 12,575 — — 12,575 Financial Services long-term debt — 90,091 — 90,091 Deferred income taxes 155 3,301 (2,641 ) 815 Payable to other segments 853 — (853 ) — Total liabilities $ 82,879 $ 145,329 $ (5,416 ) $ 222,792


 
* We measure and evaluate our Automotive segment operating cash flow on a different basis than Net cash provided by/(used in) operating activities in our consolidated statement of cash flows. Automotive segment operating cash flow includes additional elements management considers to be related to our Automotive operating activities, primarily capital spending and non-designated derivatives, and excludes outflows for funded pension contributions, separation payments, and other items that are considered operating cash flows under U.S. GAAP. The table above quantifies the reconciling adjustments to Net cash provided by/(used in) operating activities for the period ended December 31, 2017. Selected Cash Flow Information. The following tables provide supplemental cash flow information, by segment (in millions): For the year ended December 31, 2017 (unaudited) Cash flows from operating activities Automotive Financial Services All Other & Adjustments Consolidated Net income $ 4,894 $ 2,944 $ (210 ) $ 7,628 Depreciation and tooling amortization 4,963 4,159 — 9,122 Other amortization 134 (803 ) — (669 ) Provision for credit and insurance losses 6 711 — 717 Pension and OPEB expense (608 ) — — (608 ) Equity investment (earnings)/losses in excess of dividends received 271 (31 ) — 240 Foreign currency adjustments (395 ) (8 ) — (403 ) Net (gain)/loss on changes in investments in affiliates (7 ) — — (7 ) Stock compensation 233 10 3 246 Net change in wholesale and other receivables — (836 ) — (836 ) Provision for deferred income taxes 651 (883 ) — (232 ) Decrease/(Increase) in intersegment receivables/payables 7 (28 ) 21 — Decrease/(Increase) in accounts receivable and other assets (1,824 ) (470 ) (3 ) (2,297 ) Decrease/(Increase) in inventory (959 ) — — (959 ) Increase/(Decrease) in accounts payable and accrued and other liabilities 5,777 301 11 6,089 Other 307 (346 ) 104 65 Interest supplements and residual value support to Financial Services (4,524 ) 4,524 — — Net cash provided by/(used in) operating activities 8,926 $ 9,244 $ (74 ) $ 18,096 Reconciling Adjustments to Automotive Segment Operating Cash Flows* Automotive capital spending (7,001 ) Settlements of derivatives 217 Funded pension contributions 1,434 Separation payments 281 Other 51 Automotive Segment Operating Cash Flows $ 3,908 _________


 
Selected Cash Flow Information. The following tables provide supplemental cash flow information, by segment (in millions): Item 7. Management ’s Discussion and Analysis of Financial Condition and Results of Operations (Continued) For the year ended December 31, 2017 (unaudited) Cash flows from investing activities Automotive Financial Services All Other & Adjustments Consolidated Capital spending $ (7,001 ) $ (45 ) $ (3 ) $ (7,049 ) Acquisitions of finance receivables and operating leases — (59,354 ) — (59,354 ) Collections of finance receivables and operating leases — 44,641 — 44,641 Purchases of equity and debt securities (21,665 ) (5,898 ) (4 ) (27,567 ) Sales and maturities of equity and debt securities 23,582 6,316 — 29,898 Settlements of derivatives 217 (117 ) — 100 Other (71 ) 17 (7 ) (61 ) Investing activity (to)/from other segments 231 — (231 ) — Net cash provided by/(used in) investing activities $ (4,707 ) $ (14,440 ) $ (245 ) $ (19,392 ) Cash flows from financing activities Automotive Financial Services All Other & Adjustments Consolidated Cash dividends $ (2,584 ) $ — $ — $ (2,584 ) Purchases of common stock (131 ) — — (131 ) Net changes in short-term debt 69 1,160 — 1,229 Proceeds from issuance of other debt 807 44,994 — 45,801 Principal payments on other debt (1,398 ) (39,372 ) — (40,770 ) Other (46 ) (105 ) — (151 ) Financing activity to/(from) other segments — (315 ) 315 — Net cash provided by/(used in) financing activities $ (3,283 ) $ 6,362 $ 315 $ 3,394 Effect of exchange rate changes on cash and cash equivalents $ 174 $ 315 $ — $ 489


 


 
(Mils) 2016 2017 2016 2017 Net income / (Loss) attributable to Ford (GAAP) (783)$ 2,409$ 4,596$ 7,602$ Income / (Loss) attributable to non-controlling interests 2 4 11 26 Net income / (Loss) (781)$ 2,413$ 4,607$ 7,628$ Less: (Provision for) / Benefit from income taxes 336 524 (2,189) (520) Income / (Loss) before income taxes (1,117)$ 1,889$ 6,796$ 8,148$ Less: Special items pre-tax (3,249) 152 (3,579) (289) Adjusted pre-tax profit (Non-GAAP) 2,132$ 1,737$ 10,375$ 8,437$ 4Q FY 2017 4Q FY Diluted After-Tax Results (Mils) Diluted after-tax results (GAAP) 2,409$ 7,602$ Less: Impact of pre-tax and tax special items 849 486 Adjusted net income – diluted (Non-GAAP) 1,560$ 7,116$ Basic and Diluted Shares (Mils) Basic shares (average shares outstanding) 3,973 3,975 Net dilutive options and nvested restri ted stock units 27 23 Diluted shares 4,000 3,998 Earnings per share – diluted (GAAP) 0.60$ 1.90$ Less: Net impact of adjustments 0.21 0.12 Adjusted earnings per share – diluted (Non-GAAP) 0.39$ 1.78$


 
* Includes related tax effect on special items and tax special items 2017 Memo: 4Q FY FY 2016 Pre-Tax Results (Mils) Income / (Loss) before income taxes (GAAP) 1,889$ 8,148$ 6,796$ Less: Impact of special items 152 (289) (3,579) Adjusted pre-tax profit (Non-GAAP) 1,737$ 8,437$ 10,375$ Taxes (Mils) (Provision for) / Benefit from income taxes (GAAP) 524$ (520)$ (2,189)$ Less: Impact of special ite s 697 775 1,121 Adjusted (provision for) / benefit from income taxes (Non-GAAP) (173)$ (1,295)$ (3,310)$ Tax Rate (Pct) Effective tax rate (GAAP) (27.7)% 6.4% 32.2% Adjusted effective tax rate (Non-GAAP) 10.0 15.3 31.9 (Mils) 2016 2017 2016 2017 Pension and OPEB gain / (loss) Year end net pension and OPEB remeasurement loss (2,985)$ (162)$ (2,985)$ (162)$ Other pension remeasurement loss - - (11) - Pension curtailment gain - 354 - 354 Separation-related actions (11) (38) (304) (297) Other Items San Luis Pot i plant cancellation (199) - (199) 41 Japan, Indonesia market closure (54) - (80) - Next-generation Focus footprint change - (2) - (225) Total pre-tax spe i l i (3,249)$ 152$ (3,579)$ (289)$ T x special items 1,248$ 697$ 1,121$ 775$ Memo: Special items impact on earnings per share* (0.50)$ 0.21$ (0.61)$ 0.12$ 4Q FY


 
FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES CONSOLIDATED INCOME ST TEMENT (in millions) For the Years Ended December 31, 2015 2016 2017 (unaudited) Financing revenue Operating leases $ 4,865 $ 5,555 $ 5,552 Retail financing 2,819 3,070 3,451 Dealer financing 1,539 1,760 1,903 Other 57 38 70 Total financing revenue 9,280 10,423 10,976 Depreciation on vehicles subject to operating leases (3,640 ) (4,329 ) (4,135 ) Interest expense (2,416 ) (2,755 ) (3,175 ) Net financing margin 3,224 3,339 3,666 Other revenue Insurance premiums earned 133 156 158 Fee based revenue and other — — 243 Total financing margin and other revenue 3,357 3,495 4,067 Expenses Operating expenses 1,139 1,274 1,295 Provision for credit losses 347 547 588 Insurance expenses 69 125 124 Total expenses 1,555 1,946 2,007 Other income, net 284 330 250 Income before income taxes 2,086 1,879 2,310 Provision for / (Benefit from) income taxes 723 506 (697 ) Net income $ 1,363 $ 1,373 $ 3,007


 
FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (in millions) December 31, 2016 December 31, 2017 (unaudited) ASSETS Cash and cash equivalents $ 8,077 $ 9,558 Marketable securities 3,280 2,881 Finance receivables, net 102,981 116,003 Net investment in operating leases 27,209 26,661 Notes and accounts receivable from affiliated companies 811 1,076 Derivative financial instruments 909 935 Other assets 2,822 3,329 Total assets $ 146,089 $ 160,443 LIABILITIES Accounts payable Customer deposits, dealer reserves, and other $ 1,065 $ 1,171 Affiliated companies 336 592 Total accounts payable 1,401 1,763 Debt 126,492 137,828 Deferred income taxes 3,230 2,386 Derivative financial instruments 166 310 Other liabilities and deferred income 1,997 2,272 Total liabilities 133,286 144,559 SHAREHOLDER’S INTEREST Shareholder’s interest 5,227 5,227 Accumulated other comprehensive income / (loss) (890 ) (419 ) Retained earnings 8,466 11,076 Total shareholder’s interest attributable to Ford Motor Credit Company 12,803 15,884 Shareholder’s interest attributable to noncontrolling interests — — Total shareholder’s interest 12,803 15,884 Total liabilities and shareholder’s interest $ 146,089 $ 160,443


 
FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (in millions) For the Years Ended December 31, 2015 2016 2017 (unaudited) Cash flows from operating activities Net income $ 1,363 $ 1,373 $ 3,007 Adjustments to reconcile net income to net cash provided by operations Provision for credit losses 347 547 588 Depreciation and amortization 4,465 5,121 4,928 Amortization of upfront interest supplements (1,078 ) (1,341 ) (1,686 ) Net change in deferred income taxes 1,042 340 (923 ) Net change in other assets 129 (413 ) (606 ) Net change in other liabilities (348 ) 462 480 All other operating activities (210 ) 142 (123 ) Net cash provided by / (used in) operating activities $ 5,710 $ 6,231 $ 5,665 Cash flows from investing activities Purchases of finance receivables (39,512 ) (37,494 ) (43,232 ) Principal collections of finance receivables 31,560 30,924 37,277 Purchases of operating lease vehicles (14,355 ) (14,441 ) (12,780 ) Proceeds from termination of operating lease vehicles 6,570 7,920 8,538 Net change in wholesale receivables and other short-duration receivables (5,126 ) (1,499 ) (874 ) Purchases of marketable securities (12,199 ) (7,289 ) (5,899 ) Proceeds from sales and maturities of marketable securities 12,704 6,756 6,316 Settlements of derivatives 210 215 (117 ) All other investing activities 20 (164 ) (34 ) Net cash provided by / (used in) investing activities (20,128 ) (15,072 ) (10,805 ) Cash flows from financing activities Proceeds from issuances of long-term debt 48,124 42,971 44,994 Principal payments on long-term debt (31,474 ) (38,000 ) (39,372 ) Change in short-term debt, net 1,229 3,403 1,195 Cash distributions to parent (250 ) — (406 ) All other financing activities (101 ) (103 ) (105 ) Net cash provided by / (used in) financing activities 17,528 8,271 6,306 Effect of exchange rate changes on cash and cash equivalents (403 ) (239 ) 315 Net increase / (decrease) in cash and cash equivalents $ 2,707 $ (809 ) $ 1,481 Cash and cash equivalents at January 1 $ 6,179 $ 8,886 $ 8,077 Net increase / (decrease) in cash and cash equivalents 2,707 (809 ) 1,481 Cash and cash equivalents at December 31 $ 8,886 $ 8,077 $ 9,558


 

The following information was filed by FORD MOTOR CO on Wednesday, January 24, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Click a sentiment analysis snippet below from FORD MOTOR CO's Management Discussions to find these positive and negative remarks within their 10-K Annual report:
  • f_10k_2018-02-08_660_2658
    Other - Other
    We consider an accounting estimate to be critical if: 1 the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and 2 changes in the estimate that are reasonably likely to occur from period to period, or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations.
  • f_10k_2018-02-08_87_274
    Revenue - Product
    If industry vehicle sales were to decline to levels significantly below our planning assumption, particularly in the United States, Europe, or China, due to a financial crisis, recession, or significant geopolitical event, the decline could have a substantial adverse effect on our financial condition, results of operations, and cash flow.
  • f_10k_2018-02-08_463_926
    Revenue - Product
    Favorable volume and mix, driven by growth in consumer and non-consumer finance receivables globally and operating leases in North America, was a partial offset.
  • f_10k_2018-02-08_667_1193
    Financial - Expense
    The estimation of our defined benefit pension and OPEB plan obligations and expenses requires that we make use of estimates of the present value of the projected future payments to all participants, taking into consideration the likelihood of potential future events such as demographic experience and health care cost increases.
  • f_10k_2018-02-08_97_312
    Other - Other
    Further, the U.S. government, other governments, and international organizations could impose additional sanctions that could restrict us from doing business directly or indirectly in or with certain countries or parties, which could include affiliates.
  • f_10k_2018-02-08_203_557
    Financial - Expense
    Specifically, we include in cost of sales each of the following: material costs including commodity costs freight costs warranty, including product recall costs labor and other costs related to the development and manufacture of our products depreciation and amortization and other associated costs.
  • f_10k_2018-02-08_180_507
    Financial - Shares / Equity
    The plan authorized repurchases of up to 11.8 million shares of Ford Common Stock.
  • f_10k_2018-02-08_1682_2243
    Financial - Debt
    The corporate credit facility is unsecured and free of material adverse change conditions to borrowing, restrictive financial covenants for example, interest or fixed charge coverage ratio, debt-to-equity ratio, and minimum net worth requirements, and credit rating triggers that could limit our ability to obtain funding.
  • f_10k_2018-02-08_488_984
    Financial - Debt
    The corporate credit facility is unsecured and free of material adverse change conditions to borrowing, restrictive financial covenants for example, interest or fixed charge coverage ratio, debt-to-equity ratio, and minimum net worth requirements, and credit rating triggers that could limit our ability to obtain funding.
  • f_10k_2018-02-08_1579_2183
    Financial - Income
    In order to ensure assets are sufficient to pay benefits, a portion of plan assets is allocated to growth assets that are expected over time to earn higher returns with more volatility than fixed income investments which more closely match pension obligations.
  • f_10k_2018-02-08_417_2538
    Revenue - Geography
    Included in North Americas profit is about $600 million for the door latch recall we announced in the third quarter of 2016, which negatively impacted North Americas operating margin by six-tenths of a percentage point.
  • f_10k_2018-02-08_4_8
    Financial - Expense
    The decision whether to purchase a vehicle may be affected significantly by slowing economic growth, geopolitical events, and other factors including the cost of purchasing and operating cars, trucks, and SUVs and the availability and cost of financing and fuel.
  • f_10k_2018-02-08_263_2469
    Financial - Expense
    Contribution Costs primarily measures profit 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
  • f_10k_2018-02-08_223_623
    Other - Other
    Over a period of time, a weak yen can contribute to other countries pursuing weak currency policies by intervening in the exchange rate markets.
  • f_10k_2018-02-08_390_815
    Financial - Earnings
    Net income attributable to Ford for full year 2016 was $4.6 billion or $1.15 diluted earnings per share of Common and Class B Stock, a decrease of $2.8 billion or $0.69 per share compared with 2015.
  • f_10k_2018-02-08_1768_2320
    Other - Other
    In most cases, the bankruptcy remote SPEs meet the definition of VIEs for which we have determined we have both the power to direct the activities of the entity that most significantly impact the entitys performance and the obligation to absorb losses or the right to receive benefits of the entity that could be significant, and would therefore also be consolidated.
  • f_10k_2018-02-08_451_905
    Revenue - Geography
    Our China joint ventures contributed $1.4 billion to Asia Pacifics pre-tax profit, reflecting our equity share of the unconsolidated JVs after-tax earnings this was $75 million lower than in 2015.
  • f_10k_2018-02-08_376_2526
    Financial - Earnings
    Ford Credits full year 2017 pre-tax profit was $431 million higher than 2016, led primarily by receivables growth, lease residual performance, and financing margin.
  • f_10k_2018-02-08_794_1447
    Financial - Cash Flow
    As a result, the actual impact to pre-tax cash flow could be higher or lower than the results detailed in the table below.
  • f_10k_2018-02-08_689_1237
    Financial - Income
    The fixed income asset sensitivity shown excludes other fixed income return components e.g., changes in credit spreads, bond coupon and active management excess returns, and growth asset returns.
  • f_10k_2018-02-08_592_1133
    Financial - Earnings
    The following charts show our Non-GAAP financial measure reconciliations for: Adjusted Pre-Tax Profit, Adjusted Earnings Per Share, Adjusted Effective Tax Rate, and Ford Credit Managed Receivables.
  • f_10k_2018-02-08_454_2551
    Revenue - Geography
    Asia Pacifics full year 2016 profit was $627 million, down $138 million from 2015, reflecting lower net pricing, adverse exchange effects mainly a weaker Chinese renminbi, and unfavorable cost performance.
  • f_10k_2018-02-08_302_2491
    Other - Other
    The favorable mix was driven by the strength of F-Series and utilities.
  • f_10k_2018-02-08_1518_2124
    Other - Other
    The measurement of projected future benefits is dependent on the provisions of each specific plan, demographics of the group covered by the plan, and other key measurement assumptions.
  • f_10k_2018-02-08_561_2583
    Financial - Earnings
    Ford Credit profit to remain strong but lower than 2017 due to adverse financing margin from interest rates and derivative revaluation.
  • f_10k_2018-02-08_1542_2158
    Financial - Expense
    This refinement had no effect on the measurement of our plan obligations or on full year net periodic benefit cost/income as lower service and interest costs recorded quarterly are offset in net remeasurement gain/loss .
  • f_10k_2018-02-08_342_753
    Financial - Earnings
    Net income margin was 10.9%, down 3.7 percentage points.
  • f_10k_2018-02-08_291_2486
    Revenue - Geography
    Favorable market factors were driven by improved mix in all regions, excluding South America, and higher net pricing in all regions, except Asia Pacific, reflecting negative industry pricing in China.
  • f_10k_2018-02-08_435_2545
    Revenue - Geography
    Europe delivered a record full year profit of $1.2 billion and a record operating margin of 4.2% in 2016, both up sharply from 2015.
  • f_10k_2018-02-08_440_889
    Revenue - Geography
    Improved results in Russia also contributed to Europes favorable year-over-year profit improvement.
  • f_10k_2018-02-08_1840_3435
    Revenue - Geography
    The fourth quarter 2017 results include a curtailment gain of $354 million relating to a plan amendment to our principal salaried defined benefit pension plan in the United States.
  • f_10k_2018-02-08_1520_2136
    Other - Other
    A curtailment gain is recorded when the employees who are entitled to a benefit terminate their employment, or when a plan suspension or amendment that results in a curtailment gain is adopted.
  • f_10k_2018-02-08_248_658
    Financial - Expense
    Cost of sales and Selling, administrative, and other expenses for full year 2017 were $142.9 billion, an increase of $5.7 billion compared with 2016.
  • f_10k_2018-02-08_392_819
    Financial - Expense
    Cost of sales and Selling, administrative, and other expenses for the full year 2016 were $137.2 billion, an increase of about $1.9 billion compared with 2015.
  • f_10k_2018-02-08_43_84
    Revenue - Product
    These programs increase Ford Credits financing volume and share.
  • f_10k_2018-02-08_997_1741
    MA - Other
    A companys internal control over financial reporting includes those policies and procedures that i pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company ii provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company and iii provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.
  • f_10k_2018-02-08_283_2484
    Revenue - Product
    Wholesale volumes were about flat while Automotive revenue was up 3% due to favorable mix, higher volume from consolidated operations, and favorable net pricing.
  • f_10k_2018-02-08_328_2505
    Revenue - Product
    Wholesale volume was lower than a year ago, as the sharp and sustained decline of the Middle East industries required the distributors to adjust their stock level in line with the lower industry level.
  • f_10k_2018-02-08_669_1199
    Financial - Cash Flow
    Our discount rate assumption is based primarily on the results of a cash flow matching analysis, which matches the future cash outflows for each major plan to a yield curve based on high-quality bonds specific to the country of the plan.
  • f_10k_2018-02-08_559_2581
    Financial - Earnings
    Automotive profit to be flat to lower than in 2017 with continued headwinds from commodities and exchange, and higher market factors driven by mix and net pricing
  • f_10k_2018-02-08_450_904
    Financial - Shares / Equity
    The improvement in share was driven by new product introductions, including Taurus, Edge, Lincoln MKX, and Lincoln MKZ.
  • f_10k_2018-02-08_842_2725
    Other - Other
    Executive Separation Allowance Plan, as amended and restated effective as of January 1, 2018**
  • f_10k_2018-02-08_848_1523
    Other - Other
    Benefit Equalization Plan, as amended and restated effective as of January 1, 2018.
  • f_10k_2018-02-08_852_1531
    Other - Other
    Defined Benefit Supplemental Executive Retirement Plan, as amended and restated effective as of January 1, 2018.
  • f_10k_2018-02-08_854_1535
    Other - Other
    Defined Contribution Supplemental Executive Retirement Plan, as amended and restated effective as of January 1, 2017.
  • f_10k_2018-02-08_878_1583
    Other - Other
    Select Retirement Plan, as amended and restated effective as of January 1, 2018.
  • f_10k_2018-02-08_1157_1831
    Other - Other
    The fair value of collateral for dealer loans is determined by reviewing various appraisals, which include total adjusted appraised value of land and improvements, alternate use appraised value, brokers opinion of value, and purchase offers.
  • f_10k_2018-02-08_804_1467
    Revenue - Geography
    When a different currency is used, Ford Credit may use foreign currency swaps and foreign currency forwards to convert substantially all of its foreign currency debt obligations to the local country currency of the receivables.
  • f_10k_2018-02-08_443_2548
    Revenue - Geography
    Middle East & Africas operating margin and pre-tax results in 2016 were down sharply from 2015, reflecting difficult external conditions resulting in lower volume and unfavorable exchange, primarily the South African rand.
  • f_10k_2018-02-08_1643_3285
    Revenue - Product
    Average effective rates reflect the average contractual interest rate plus amortization of discounts, premiums, and issuance costs.
  • f_10k_2018-02-08_1173_1863
    Financial - Expense
    Prior to this amendment, excess tax benefits resulting from the difference between the deduction for tax purposes and the compensation costs recognized for financial reporting were not recognized until the deduction reduced taxes payable.
  • f_10k_2018-02-08_451_907
    Financial - Earnings
    The decline in margin reflects negative industry pricing in China and a higher mix of vehicles with engine displacement of 1.6 liters or lower.
  • f_10k_2018-02-08_342_754
    Financial - Earnings
    The decline in margin reflects negative industry pricing in China and a higher mix of vehicles with engine displacement of 1.6 liters or lower.
  • f_10k_2018-02-08_773_1384
    Revenue - Geography
    Foreign currency risk is the possibility that our financial results could be worse than planned because of changes in currency exchange rates.
  • f_10k_2018-02-08_579_2598
    Financial - Expense
    Fords vehicles could be affected by defects that result in delays in new model launches, recall campaigns, or increased warranty costs
  • f_10k_2018-02-08_104_334
    Financial - Expense
    Fords vehicles could be affected by defects that result in delays in new model launches, recall campaigns, or increased warranty costs.
  • f_10k_2018-02-08_794_1445
    Financial - Cash Flow
    To provide a quantitative measure of the sensitivity of its pre-tax cash flow to changes in interest rates, Ford Credit uses interest rate scenarios that assume a hypothetical, instantaneous increase or decrease of one percentage point in all interest rates across all maturities a parallel shift , as well as a base case that assumes that all interest rates remain constant at existing levels.
  • f_10k_2018-02-08_1808_2377
    Financial - Expense
    Our results include special items that consist of i pension and OPEB remeasurement gains and losses, ii significant personnel and dealer-related costs stemming from our efforts to match production capacity and cost structure to market demand and changing model mix, and iii certain infrequent significant items that we generally do not consider to be indicative of our ongoing operating activities.
  • f_10k_2018-02-08_317_2498
    Revenue - Geography
    In 2017, Europe delivered a full year pre-tax profit of $234 million and an operating margin of 0.8%, both down sharply from a year ago.
  • f_10k_2018-02-08_679_2661
    Other - Other
    Assumptions are set at each year-end and are generally not changed during the year unless there is a major plan event such as a significant curtailment or settlement that would trigger a plan remeasurement.
  • f_10k_2018-02-08_207_567
    Financial - Earnings
    As a result, we analyze the profit impact of certain cost changes holding constant present-year volume and mix and currency exchange, in order to evaluate our cost trends absent the impact of varying production and currency exchange levels.
  • f_10k_2018-02-08_1787_2354
    Other - Other
    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
  • f_10k_2018-02-08_569_2588
    Revenue - Product
    Industry sales volume, particularly in the United States, Europe, or China, could decline if there is a financial crisis, recession, or significant geopolitical event
  • f_10k_2018-02-08_87_272
    Revenue - Product
    Industry sales volume, particularly in the United States, Europe, or China, could decline if there is a financial crisis, recession, or significant geopolitical event.
  • f_10k_2018-02-08_661_1173
    Other - Other
    Changes in estimates used in these and other items could have a material impact on our financial statements.
  • f_10k_2018-02-08_91_287
    Financial - Earnings
    A shift in consumer preferences away from larger, more profitable vehicles including trucks and SUVs at levels beyond our current planning assumption whether because of spiking fuel prices, a decline in the construction industry, government actions or incentives, or other reasons could result in an immediate and substantial adverse effect on our financial condition and results of operations.
  • f_10k_2018-02-08_521_2561
    Financial - Income
    Continue progressively re-balancing assets to more fixed income investments, with a target asset allocation of about 80% fixed income investments and 20% growth assets, which will provide a better matching of plan assets to the characteristics of the liabilities, thereby reducing our net exposure and
  • f_10k_2018-02-08_1239_1929
    Revenue - Product
    Proceeds from the sale of these vehicles are recognized in Automotive revenues upon transfer of control of the vehicle to the customer and the related vehicle carrying value is recognized in Cost of sales.
  • f_10k_2018-02-08_257_2465
    Financial - Earnings
    Our adjusted earnings per share of Common and Class B Stock was $1.78, an increase of $0.02 per share, due to favorable tax planning actions.
  • f_10k_2018-02-08_457_2553
    Revenue - Product
    Volume and mix were up reflecting higher industry volume in China and improved mix from new product launches.
  • f_10k_2018-02-08_47_102
    Financial - Expense
    As OBD requirements become more complex and challenging over time, they could lead to increased vehicle recalls and warranty costs.
  • f_10k_2018-02-08_1590_2216
    Other - Other
    The Ford-Werke GmbH Ford-Werke defined benefit plan is primarily funded through a group insurance contract.
  • f_10k_2018-02-08_212_582
    Financial - Expense
    Our Automotive segments material and commodity costs make up the largest portion of these costs and expenses, representing in 2017 about two-thirds of the total amount.
  • f_10k_2018-02-08_994_1735
    Other - Other
    The Companys management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Managements Report on Internal Control over Financial Reporting appearing under Item 9A.
  • f_10k_2018-02-08_115_387
    Financial - Debt
    Ford Credits 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.
  • f_10k_2018-02-08_584_2603
    Financial - Debt
    Ford Credits 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
  • f_10k_2018-02-08_100_328
    Other - Other
    These benefit plans impose significant liabilities on us and could require us to make additional cash contributions, which could impair our liquidity.
  • f_10k_2018-02-08_285_688
    Financial - Shares / Equity
    Global market share, at 7%, was down two-tenths of a percentage point, reflecting lower share in Asia Pacific, Europe, and Middle East & Africa.
  • f_10k_2018-02-08_574_2593
    Other - Other
    With a global footprint, Fords results could be adversely affected by economic, geopolitical, protectionist trade policies, or other events
  • f_10k_2018-02-08_94_300
    Other - Other
    With a global footprint, Fords results could be adversely affected by economic, geopolitical, protectionist trade policies, or other events.
  • f_10k_2018-02-08_297_704
    Financial - Shares / Equity
    The increase was driven by F-Series with share up four-tenths, utilities, and Lincoln.
  • f_10k_2018-02-08_191_514
    Financial - Expense
    Pre-tax special items consist of i pension and other postretirement employee benefits OPEB remeasurement gains and losses that are not reflective of our underlying business results, ii significant restructuring actions related to our efforts to match production capacity and cost structure to market demand and changing model mix, and iii other items that we do not necessarily consider to be indicative of earnings from ongoing operating activities.
  • f_10k_2018-02-08_1703_2272
    Financial - Cash Flow
    The effective portion of changes in the fair value of cash flow hedges is deferred in Accumulated other comprehensive income/loss and is recognized in Cost of sales when the hedged item affects earnings.
  • f_10k_2018-02-08_214_588
    Other - Other
    The related shifts in capital flows have contributed to increased volatility for both developed and emerging market currencies globally.
  • f_10k_2018-02-08_310_2496
    Financial - Shares / Equity
    Our market share for the region, at 8.9%, was up one-tenth of a percentage point due to the strong performance of Ka in Brazil.
  • f_10k_2018-02-08_416_856
    Revenue - Geography
    Our North America market share was down one-tenth of a percentage point, with U.S. share down by one-tenth of a point to 14.6%.
  • f_10k_2018-02-08_1232_1906
    Revenue - Product
    Revenue is recognized when obligations under the terms of a contract with our customer are satisfied generally this occurs with the transfer of control of our vehicles, parts, accessories, or services.
  • f_10k_2018-02-08_811_1482
    Other - Other
    Based on this assessment, management concluded that our internal control over financial reporting was effective as of December 31, 2017.
  • f_10k_2018-02-08_357_775
    Other - Other
    For additional information on the allowance for credit losses, refer to the Critical Accounting Estimates - Allowance for Credit Losses section
  • f_10k_2018-02-08_334_2507
    Financial - Expense
    Favorable cost performance and exchange, reflecting the stronger South African rand and euro, offset lower volume.
  • f_10k_2018-02-08_1160_1840
    Financial - Expense
    Costs associated with benefits that are contingent on the employee continuing to provide service are accrued over the required service period.
  • f_10k_2018-02-08_800_2706
    Financial - Cash Flow
    Pre-tax cash flow sensitivity given a one percentage point decrease in interest rates requires an assumption of negative interest rates in markets where existing interest rates are below one percent.
  • f_10k_2018-02-08_547_2575
    Revenue - Geography
    Brazil volume in the mid-2 million unit range, up roughly 20 percent from 2017
  • f_10k_2018-02-08_448_2550
    Revenue - Product
    Wholesale volume increased by 10% while revenue from consolidated operations was up 12%.
  • f_10k_2018-02-08_778_1398
    Other - Other
    Commodity price risk is the possibility that our financial results could be worse than planned because of changes in the prices of commodities used in the production of motor vehicles, such as base metals e.g., steel, copper, and aluminum, precious metals e.g., palladium, energy e.g., natural gas and electricity, and plastics/resins e.g., polypropylene.
  • f_10k_2018-02-08_432_878
    Financial - Expense
    This was more than explained by the unfavorable effects of high local inflation and weaker local currencies exceeding higher net pricing and favorable cost performance.
  • f_10k_2018-02-08_214_591
    Other - Other
    In most markets, exchange rates are market-determined, and all are impacted by many different macroeconomic and policy factors, and thus likely to remain volatile.
  • f_10k_2018-02-08_767_1370
    Other - Other
    We protect against these risks through the purchase of commercial insurance that is designed to protect us above our self-insured retentions against events that could generate significant losses.
  • f_10k_2018-02-08_372_791
    Other - Other
    Receivables were higher with growth globally led by retail receivables.
  • f_10k_2018-02-08_562_2584
    Other - Other
    We expect an adjusted effective tax rate in 2018 of about 15%, which is similar to 2017.
  • f_10k_2018-02-08_773_1385
    Revenue - Product
    Accordingly, our normal practice is to use derivative instruments, when available, to hedge our economic exposure with respect to forecasted revenues and costs, assets, liabilities, and firm commitments denominated in foreign currencies.
  • f_10k_2018-02-08_1320_3025
    Other - Other
    The amount of unrecognized tax benefits that would affect the effective tax rate if recognized were
  • f_10k_2018-02-08_720_1310
    Other - Other
    Changes in the assumptions used to derive frequency and severity would affect the allowance for credit losses.
  • f_10k_2018-02-08_1374_3073
    Financial - Expense
    Finance receivables are recorded at time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses.
  • f_10k_2018-02-08_525_1075
    Financial - Income
    Asset returns for our non-U.S. plans were 4.5%, reflecting fixed income gains offset by unfavorable exchange.
  • f_10k_2018-02-08_18_38
    Other - Other
    Our policy is to protect our competitive position by, among other methods, filing U.S. and international patent applications to protect technology and improvements that we consider important to the development of our business.
  • f_10k_2018-02-08_148_488
    Revenue - Geography
    Two Brazilian states and the Brazilian federal tax authority currently have outstanding substantial tax assessments against Ford Brazil related to state and federal tax incentives Ford Brazil receives for its operations in the Brazilian state of Bahia.
  • f_10k_2018-02-08_341_2511
    Revenue - Geography
    Asia Pacific achieved record full-year Lincoln sales in China, up 55% from a year ago.
  • f_10k_2018-02-08_1147_1801
    Financial - Income
    For fixed income securities that are not actively traded, the pricing services use alternative methods to determine fair value for the securities, including quotes for similar fixed-income securities, matrix pricing, discounted cash flow using benchmark curves, or other factors.
  • f_10k_2018-02-08_1776_2326
    Revenue - Product
    The maximum potential payment of $1.2 billion as of December 31, 2017 included in the table above represents the total proceeds we guarantee the rental company will receive on re-sale.
  • f_10k_2018-02-08_782_1413
    Other - Other
    At any time, a rise in interest rates could have a material adverse impact on the fair value of our portfolios.
  • f_10k_2018-02-08_1227_1898
    Other - Other
    In August 2017, the FASB issued a new accounting standard which aligns hedge accounting with risk management activities and simplifies the requirement to qualify for hedge accounting.
  • f_10k_2018-02-08_502_1022
    Other - Other
    The calendarization of the funding plan will result in quarterly fluctuations of the securitized funding percentage.
  • f_10k_2018-02-08_1703_2275
    Financial - Income
    If it becomes probable that the originally forecasted transaction will not occur, the related amount included in Accumulated other comprehensive income/loss is reclassified and recognized in earnings.
  • f_10k_2018-02-08_256_670
    Revenue - Geography
    In total, our Automotive operations outside North America generated a loss of $252 million, $673 million lower than in 2016 driven largely by expected Brexit effects in Europe.
  • f_10k_2018-02-08_568_2587
    Other - Other
    Fords long-term competitiveness depends on the successful execution of fitness actions
  • f_10k_2018-02-08_86_269
    Other - Other
    Fords long-term competitiveness depends on the successful execution of fitness actions.
  • f_10k_2018-02-08_377_2527
    Other - Other
    The improvement in lease residual performance was driven by higher than expected auction values.
  • f_10k_2018-02-08_548_2576
    Revenue - Geography
    Total Europe volume in the low-21 million unit range, up slightly from 2017 and
  • f_10k_2018-02-08_222_617
    Financial - Expense
    In addition, government regulations aimed at reducing emissions and increasing fuel efficiency may increase the cost of vehicles by more than the perceived benefit to the consumer.
  • f_10k_2018-02-08_111_369
    Revenue - Geography
    As a result, the performance of our South American operations has been impacted favorably by government incentives to a substantial extent.
  • f_10k_2018-02-08_444_894
    Revenue - Product
    Industry volume for the region, at 3.6 million units, was down 700,000 units from 2015.
  • f_10k_2018-02-08_329_737
    Revenue - Product
    Industry volume for the region, at 3.6 million units, was down 100,000 units from 2016.
  • f_10k_2018-02-08_318_2499
    Revenue - Product
    Wholesale volume increased by 3% and revenue was up 4% from a year ago.
  • f_10k_2018-02-08_308_2494
    Revenue - Product
    Wholesale volume increased by 15% and revenue was up 21% from a year ago.
  • f_10k_2018-02-08_585_2604
    Revenue - Product
    Ford Credit could experience higher-than-expected credit losses, lower-than-anticipated residual values, or higher-than-expected return volumes for leased vehicles
  • f_10k_2018-02-08_116_394
    Revenue - Product
    Ford Credit could experience higher-than-expected credit losses, lower-than-anticipated residual values, or higher-than-expected return volumes for leased vehicles.
  • f_10k_2018-02-08_549_2577
    Revenue - Geography
    China volume in the mid-28 million units range, up slightly from 2017
  • f_10k_2018-02-08_271_2475
    Financial - Earnings
    Exchange primarily measures profit 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
  • f_10k_2018-02-08_337_2508
    Revenue - Geography
    In 2017, Asia Pacific generated a pre-tax profit of $561 million and an operating margin of 4%, both down from a year ago.
  • f_10k_2018-02-08_216_603
    Revenue - Geography
    In Europe, the excess capacity situation was exacerbated by weakening demand and the lack of reductions in existing capacity, such that negative pricing pressure is expected to continue for the foreseeable future.
  • f_10k_2018-02-08_111_365
    Other - Other
    We receive economic benefits from national, state, and local governments in various regions of the world in the form of incentives designed to encourage manufacturers to establish, maintain, or increase investment, workforce, or production.
  • f_10k_2018-02-08_224_629
    Financial - Debt
    The eventual implications of higher government deficits and debt, with potentially higher long-term interest rates, may drive a higher cost of capital over our planning period.
  • f_10k_2018-02-08_742_2681
    Other - Other
    The Financial Accounting Standards Board FASB has issued the following standards, which are not expected to have a material impact with the exception of standards 2016-02 and 2016-13 to our financial statements or financial statement disclosures:
  • f_10k_2018-02-08_1121_1753
    Other - Other
    Effective January 1, 2017, the financing Ford Credit provides under this agreement is reflected on our balance sheet in
  • f_10k_2018-02-08_1436_2094
    Financial - Cash Flow
    A specific allowance is estimated based on the present value of the expected future cash flows of the receivable discounted at the contracts original effective interest rate or the fair value of any collateral adjusted for estimated costs to sell.
  • f_10k_2018-02-08_716_1304
    Financial - Cash Flow
    A specific allowance is estimated based on the present value of the expected future cash flows of the receivable discounted at the contracts original effective interest rate or the fair value of any collateral adjusted for estimated costs to sell.
  • f_10k_2018-02-08_1542_2157
    Financial - Expense
    Service and interest costs in 2016 and 2017 were about $580 million lower and about $450 million lower, respectively, under the new method.
  • f_10k_2018-02-08_781_1407
    Other - Other
    Interest rate risk relates to the loss we could incur in our Automotive segment investment portfolios due to a change in interest rates.
  • f_10k_2018-02-08_411_848
    Revenue - Geography
    Market factors were favorable, driven by strong mix in all regions except South America.
  • f_10k_2018-02-08_1542_2156
    Financial - Cash Flow
    We now apply the specific spot rates along the yield curve to the relevant cash flows instead of using a single effective discount rate.
  • f_10k_2018-02-08_42_80
    Other - Other
    See Item 7 and Notes 10, 11, and 13 of the Notes to the Financial Statements for a detailed discussion of Ford Credits receivables, credit losses, allowance for credit losses, loss-to-receivables ratios, funding sources, and funding strategies.
  • f_10k_2018-02-08_576_2595
    Financial - Expense
    Fords ability to maintain a competitive cost structure could be affected by labor or other constraints
  • f_10k_2018-02-08_99_318
    Financial - Expense
    Fords ability to maintain a competitive cost structure could be affected by labor or other constraints.
  • f_10k_2018-02-08_836_2724
    Financial - Shares / Equity
    Tax Benefit Preservation Plan TBPP dated September 11, 2009 between Ford Motor Company and Computershare Trust Company, N.A.
  • f_10k_2018-02-08_190_511
    Other - Other
    These non-GAAP measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
  • f_10k_2018-02-08_793_1444
    Other - Other
    Ford Credits Asset-Liability Committee reviews the re-pricing mismatch and exposure every month and approves interest rate swaps required to maintain exposure within approved thresholds prior to execution.
  • f_10k_2018-02-08_1240_1933
    Revenue - Product
    We receive payment at the inception of the contract and recognize revenue over the term of the agreement in proportion to the costs expected to be incurred in satisfying the obligations under the contract.
  • f_10k_2018-02-08_905_1637
    Other - Other
    Long-Term Incentive Plan, as amended and restated effective as of January 1, 2003.
  • f_10k_2018-02-08_907_1641
    Other - Other
    Amendment to Ford Motor Company 1998 Long-Term Incentive Plan effective as of January 1, 2006.
  • f_10k_2018-02-08_475_945
    Financial - Debt
    Our Automotive cash investments primarily include U.S. Department of Treasury obligations, federal agency securities, bank time deposits with investment-grade institutions, corporate investment-grade securities, commercial paper rated A-1/P-1 or higher, and debt obligations of a select group of non-U.S. governments, non-U.S. governmental agencies, and supranational institutions.
  • f_10k_2018-02-08_92_288
    Other - Other
    Ford may face increased price competition resulting from industry excess capacity, currency fluctuations, or other factors.
  • f_10k_2018-02-08_572_2591
    Other - Other
    Ford may face increased price competition resulting from industry excess capacity, currency fluctuations, or other factors
  • f_10k_2018-02-08_695_1247
    Financial - Expense
    The sensitivity of pension expense to an increase in discount rates assumptions may not be linear.
  • f_10k_2018-02-08_1588_2209
    Other - Other
    Level 3 derivatives typically are priced by dealers and pricing services that use proprietary pricing models which incorporate unobservable inputs, including extrapolated or model derived assumptions such as volatilities and yield and credit spread assumptions.
  • f_10k_2018-02-08_79_258
    Financial - Expense
    Achieving high NCAP ratings can add complexity and cost to vehicles.
  • f_10k_2018-02-08_737_1340
    Revenue - Product
    The impact of the change in assumptions on future auction values and return volumes would increase or decrease accumulated supplemental depreciation and depreciation expense over the remaining terms of the operating leases.
  • f_10k_2018-02-08_116_397
    Other - Other
    The level of credit losses Ford Credit may experience could exceed its expectations and adversely affect its financial condition and results of operations.
  • f_10k_2018-02-08_1430_2084
    Other - Other
    An LTR for each product 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.
  • f_10k_2018-02-08_296_2489
    Revenue - Geography
    North America and U.S. industry volume, at 21.5 million units and 17.5 million units, respectively, were each down 300,000 units.
  • f_10k_2018-02-08_190_509
    Other - Other
    The non-GAAP measures listed below are intended to be considered by users as supplemental information to their equivalent GAAP measures, to aid investors in better understanding our financial results.
  • f_10k_2018-02-08_61_170
    Other - Other
    Manufacturers also can earn credits for GHG reductions not specifically tied to fuel economy, such as improvements in air conditioning systems.
  • f_10k_2018-02-08_61_169
    Other - Other
    The rules include the opportunity for manufacturers to earn credits for technologies that achieve real-world CO2 reductions and fuel economy improvements that are not captured by the EPA fuel economy test procedures.
  • f_10k_2018-02-08_17_33
    Other - Other
    There always are risks and uncertainties with respect to the supply of raw materials, however, which could impact availability in sufficient quantities to meet our needs.
  • f_10k_2018-02-08_1704_2280
    Financial - Debt
    The risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark interest rate.
  • f_10k_2018-02-08_424_868
    Revenue - Product
    Our incentives were up as a percent of revenue, but less than the industry average.
  • f_10k_2018-02-08_194_525
    Financial - Cash Flow
    This measure is useful to management and investors because it is consistent with managements assessment of the Companys operating cash flow performance.
  • f_10k_2018-02-08_347_2514
    Financial - Expense
    Favorable cost performance reflects our continued focus on material cost reductions.
  • f_10k_2018-02-08_1696_3328
    Other - Other
    Commodity contracts, including forwards, that are used to manage commodity price risk
  • f_10k_2018-02-08_1418_2061
    Revenue - Product
    For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received.
  • f_10k_2018-02-08_1423_2070
    Other - Other
    Because credit losses may vary substantially over time, estimating credit losses requires a number of assumptions about matters that are uncertain.
  • f_10k_2018-02-08_1797_3398
    Financial - Expense
    Revisions to our estimated costs are reported as changes in accrual related to pre-existing warranties in the table above.
  • f_10k_2018-02-08_706_1276
    Other - Other
    Because credit losses can vary substantially over time, estimating credit losses requires a number of assumptions about matters that are uncertain.
  • f_10k_2018-02-08_239_2459
    Other - Other
    We announced a plan to achieve 100% connectivity for new vehicles in the United States by 2019 and 90% globally by 2020
  • f_10k_2018-02-08_1519_2129
    Other - Other
    The funded status of the benefit plans, which represents the difference between the benefit obligation and fair value of plan assets, is calculated on a plan-by-plan basis.
  • f_10k_2018-02-08_1125_1765
    Revenue - Product
    Upon sale or upon complete or substantially complete liquidation of an investment in a foreign subsidiary, the amount of accumulated foreign currency translation related to the entity is reclassified to income and recognized as part of the gain or loss on the investment.
  • f_10k_2018-02-08_97_311
    Other - Other
    These investments may expose us to heightened risks of economic, geopolitical, or other events, including governmental takeover i.e., nationalization of our manufacturing facilities or intellectual property, restrictive exchange or import controls, disruption of operations as a result of systemic political or economic instability, outbreak of war or expansion of hostilities, and acts of terrorism, each of which could have a substantial adverse effect on our financial condition and results of operations.
  • f_10k_2018-02-08_117_409
    Financial - Earnings
    Competition from such institutions and alternative finance sources could adversely affect Ford Credits profitability and the volume of its retail business.
  • f_10k_2018-02-08_777_1394
    Revenue - Geography
    The sensitivity analysis presented is hypothetical and assumes foreign exchange rate changes are instantaneous and adverse across all currencies.
  • f_10k_2018-02-08_752_1347
    Other - Other
    We will adopt the new leases guidance effective January 1, 2019.
  • f_10k_2018-02-08_76_235
    Other - Other
    The standards became effective on January 1, 2016 and became fully phased in at the end of 2017.
  • f_10k_2018-02-08_768_1373
    Other - Other
    Regular audits are conducted to ensure that appropriate controls are in place and that they remain effective.
  • f_10k_2018-02-08_941_1707
    Other - Other
    Form of James D. Farley, Jr. Agreement Amendment, effective as of October 12, 2008.
  • f_10k_2018-02-08_1227_1899
    Other - Other
    We will adopt the new standard effective January 1, 2018.
  • f_10k_2018-02-08_1228_1903
    Other - Other
    The new standard is effective January 1, 2018.
  • f_10k_2018-02-08_1222_1886
    Other - Other
    The new standard is effective as of January 1, 2020, and early adoption is permitted as of January 1, 2019.
  • f_10k_2018-02-08_1226_1892
    Other - Other
    We plan to adopt the new standard on its effective date of January 1, 2019.
  • f_10k_2018-02-08_1694_2261
    Other - Other
    To manage these risks, we enter into highly effective derivative contracts:
  • f_10k_2018-02-08_1728_2299
    Other - Other
    As a result, effective March 31, 2015, we consolidated the joint venture for financial reporting purposes.
  • f_10k_2018-02-08_1625_2227
    Revenue - Product
    Discounts, premiums, and costs directly related to the issuance of debt are capitalized and amortized over the life of the debt or to the put date and are recorded in interest expense using the effective interest method.
  • f_10k_2018-02-08_1262_1978
    Financial - Shares / Equity
    The limit may be increased up to 3% in any year, with a corresponding reduction in shares available for grants in future years.
  • f_10k_2018-02-08_84_267
    Other - Other
    We engage in engineering, research, and development primarily to improve the performance including fuel efficiency, safety, and customer satisfaction of our products, and to develop new products and services.
  • f_10k_2018-02-08_768_1371
    Other - Other
    Direct responsibility for the execution of our market risk management strategies resides with our Treasurers Office and is governed by written policies and procedures.
  • f_10k_2018-02-08_228_640
    Revenue - Product
    The growth of internet sales has resulted in more deliveries, which is compounding the problem of city congestion.
  • f_10k_2018-02-08_75_227
    Other - Other
    Additional tax reductions are available if further fuel efficiency improvements are achieved and maintained through 2020.
  • f_10k_2018-02-08_405_836
    Revenue - Product
    Global industry volume, estimated at 91.4 million units, was up 3.2 million units or 4%.
  • f_10k_2018-02-08_1533_3195
    Other - Other
    Effective interest rate on benefit obligation
  • f_10k_2018-02-08_369_2525
    Other - Other
    Term Asset-Backed Securities as shown on the Funding Structure chart Obligations issued in securitization transactions that are payable only out of collections on the underlying securitized assets and related enhancements
  • f_10k_2018-02-08_195_527
    Financial - Earnings
    The measure is useful to management and investors as it closely approximates the customers outstanding balance on the receivables, which is the basis for earning revenue.
  • f_10k_2018-02-08_411_849
    Revenue - Geography
    This more than offset unfavorable dealer stock changes which reflected stock reductions this year compared to increases in 2015 in North America, Europe, and Asia Pacific.
  • f_10k_2018-02-08_104_337
    Other - Other
    Should we or government safety regulators determine that a safety or other defect or a noncompliance exists with respect to certain of our vehicles prior to the start of production, the launch of such vehicle could be delayed until such defect is remedied.
  • f_10k_2018-02-08_811_1480
    Other - Other
    Under the supervision and with the participation of our management, including our CEO and CFO, we conducted an assessment of the effectiveness of our internal control over financial reporting as of December 31, 2017.
  • f_10k_2018-02-08_199_542
    Revenue - Product
    Proceeds from the sale of vehicles at auction are recognized in revenue upon transfer of control of the vehicle to the customer.
  • f_10k_2018-02-08_112_382
    Other - Other
    A significant cyber incident could impact production capability, harm our reputation, and/or subject us to regulatory actions or litigation.
  • f_10k_2018-02-08_141_470
    Other - Other
    The extent of our financial exposure to asbestos litigation remains very difficult to estimate and could include both compensatory and punitive damage awards.
  • f_10k_2018-02-08_1361_3063
    Revenue - Product
    Sales proceeds and gross realized gains/losses from the sale of AFS securities prior to maturity, recorded in the income statement for the years ended December 31 were as follows in millions:
  • f_10k_2018-02-08_888_1603
    Other - Other
    Annual Incentive Compensation Plan, as amended and restated effective as of March 1, 2018.
  • f_10k_2018-02-08_284_686
    Revenue - Product
    Global industry volume, estimated at 94.9 million units, was up 2.2 million units or 2% compared to a year ago.
  • f_10k_2018-02-08_771_1380
    Revenue - Geography
    Our Automotive segment frequently has expenditures and receipts denominated in foreign currencies, including the following: purchases and sales of finished vehicles and production parts, debt and other payables, subsidiary dividends, and investments in foreign operations.
  • f_10k_2018-02-08_886_1599
    Other - Other
    Amendment to the Ford Motor Company Annual Incentive Compensation Plan effective as of December 31, 2008.
  • f_10k_2018-02-08_510_1041
    Other - Other
    This positive maturity profile is intended to provide Ford Credit with additional liquidity after all of its assets have been funded.
  • f_10k_2018-02-08_1376_2029
    Revenue - Product
    Dealer financing includes wholesale loans to dealers to finance the purchase of vehicle inventory, also known as floorplan financing, as well as loans to dealers to finance working capital and improvements to dealership facilities, finance the purchase of dealership real estate, and finance other dealer programs.
  • f_10k_2018-02-08_456_912
    Financial - Expense
    Unfavorable cost performance was driven by cost increases to support higher volumes and continued investment for future product and regulatory actions.
  • f_10k_2018-02-08_37_71
    Revenue - Product
    Ford Credit makes wholesale loans to dealers to finance the purchase of vehicle inventory, also known as floorplan financing, as well as loans to dealers to finance working capital and improvements to dealership facilities, finance the purchase of dealership real estate, and finance other dealer vehicle programs.
  • f_10k_2018-02-08_359_778
    Other - Other
    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.
  • f_10k_2018-02-08_1132_1779
    Other - Other
    We capitalize and amortize our finite-lived intangible assets over their estimated useful lives.
  • f_10k_2018-02-08_683_1227
    Other - Other
    We employ a broad global de-risking strategy which increases the matching characteristics of our assets relative to our obligation as funded status improves.
  • f_10k_2018-02-08_255_668
    Financial - Earnings
    Our Company adjusted pre-tax profit consisted of Automotive segment profit of $7.3 billion, a strong profit of $2.2 billion in the Financial Services segment, and a loss of $1.1 billion in All Other.
  • f_10k_2018-02-08_682_2663
    Financial - Income
    For 2018, the expected long-term rate of return on assets is 6.75% for U.S. plans, unchanged from 2017, and 4.51% for non-U.S. plans, down about 70 basis points compared with a year ago, primarily reflecting an increased allocation to fixed income assets and a lower consensus on capital market return expectations from advisors.
  • f_10k_2018-02-08_303_714
    Revenue - Product
    Our incentives were up slightly as a percent of revenue, but less than the industry average.
  • f_10k_2018-02-08_723_1320
    Financial - Cash Flow
    The loans are analyzed to determine whether individual loans are impaired, and a specific allowance is estimated based on the present value of the expected future cash flows of the receivable discounted at the loans original effective interest rate or the fair value of the collateral adjusted for estimated costs to sell.
  • f_10k_2018-02-08_1440_2101
    Financial - Cash Flow
    The loans are analyzed to determine whether individual loans are impaired, and a specific allowance is estimated based on the present value of the expected future cash flows of the receivable discounted at the loans original effective interest rate or the fair value of the collateral adjusted for estimated costs to sell.
  • f_10k_2018-02-08_240_2460
    Revenue - Product
    We announced that we are shifting toward a lower volume passenger car lineup in North America and Europe, and we are playing to our strengths by investing in authentic off-roaders and high performance city crossovers
  • f_10k_2018-02-08_110_359
    Financial - Expense
    Compliance with governmental standards, however, does not necessarily prevent individual or class actions, which can entail significant cost and risk.
  • f_10k_2018-02-08_67_196
    Revenue - Product
    We face the risk of advance premium payment requirements if, for example, unexpected market fluctuation within a quarter negatively impacts our average fleet performance.
  • f_10k_2018-02-08_190_510
    Other - Other
    We believe that these non-GAAP measures provide useful perspective on underlying business results and trends, and a means to assess our period-over-period results.
  • f_10k_2018-02-08_1710_2289
    Revenue - Geography
    Foreign currency revaluation on accrued interest along with gains and losses on foreign exchange contracts and cross currency interest rate swaps are reported in Financial Services other income/loss, net.
  • f_10k_2018-02-08_1408_3100
    Other - Other
    Group II fair to favorable financial metrics
  • f_10k_2018-02-08_1583_2197
    Financial - Income
    Fixed income securities are valued based on quotes received from independent pricing services or from dealers who make markets in such securities.
  • f_10k_2018-02-08_90_282
    Other - Other
    Offering vehicles and services that customers want and value can mitigate the risks of increasing price competition and declining demand, but products and services that are perceived to be less desirable whether in terms of price, quality, styling, safety, overall value, fuel efficiency, or other attributes can exacerbate these risks.
  • f_10k_2018-02-08_1136_1783
    Revenue - Product
    Events that trigger a test for recoverability include material adverse changes in projected revenues and expenses, significant underperformance relative to historical and projected future operating results, significant negative industry or economic trends, and a significant adverse change in the manner in which an asset group is used or in its physical condition.
  • f_10k_2018-02-08_1419_2066
    Other - Other
    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.
  • f_10k_2018-02-08_1583_2199
    Other - Other
    Securities categorized as Level 3 typically are priced by dealers and pricing services that use proprietary pricing models which incorporate unobservable inputs.
  • f_10k_2018-02-08_1762_2307
    Other - Other
    We consider ourselves the primary beneficiary of a VIE when we have both the power to direct the activities that most significantly impact the entitys economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE.
  • f_10k_2018-02-08_247_657
    Revenue - Product
    Company revenue for full year 2017 was $156.8 billion, $5 billion higher than 2016.
  • f_10k_2018-02-08_696_1249
    Financial - Expense
    The weighted average discount rate used to determine the benefit obligation for worldwide OPEB plans at December 31, 2016 was 4%, compared with 3.61% at December 31, 2017, resulting in a worldwide loss of about $293 million which has been recognized within net periodic benefit cost and reported as a special item.
  • f_10k_2018-02-08_728_1322
    MA - Other
    If Ford Credit believes that the expected residual values for its vehicles have changed, it revises depreciation to ensure that net investment in operating leases equal to the acquisition value of the vehicles less accumulated depreciation will be adjusted to reflect Ford Credits revised estimate of the expected residual value at the end of the lease term.
  • f_10k_2018-02-08_597_1145
    Other - Other
    All Other, Special Items, and Adjustments include our operating segments that did not meet the quantitative threshold to qualify as a reportable segment, special items which primarily consists of our pension and OPEB remeasurement gains and losses, eliminations of intersegment transactions, and deferred tax netting.
  • f_10k_2018-02-08_1261_1971
    Financial - Expense
    The fair value of performance-based RSUs is expensed when it is probable and estimable as measured against the performance metrics over the shorter of the performance or required service periods.
  • f_10k_2018-02-08_116_396
    Financial - Debt
    Credit risk which is heavily dependent upon economic factors including unemployment, consumer debt service burden, personal income growth, dealer profitability, and used car prices has a significant impact on Ford Credits business.
  • f_10k_2018-02-08_816_2710
    Financial - Shares / Equity
    The information required by Item 12 is incorporated by reference from the information under the captions Equity Compensation Plan Information and Corporate Governance Beneficial Stock Ownership in our Proxy Statement.
  • f_10k_2018-02-08_194_523
    Other - Other
    The measure contains elements management considers operating activities, including Automotive and Mobility capital spending and settlement of derivatives.
  • f_10k_2018-02-08_1242_1948
    Revenue - Product
    The difference between the proceeds received and the guaranteed repurchase amount is recorded in Automotive revenues over the term of the lease using a straight-line method.
  • f_10k_2018-02-08_444_896
    Financial - Shares / Equity
    Our market share for the region was 4.5%, up one-tenth of a percentage point.
  • f_10k_2018-02-08_1520_2135
    Other - Other
    A curtailment results from an event that significantly reduces the expected years of future service or eliminates the accrual of defined benefits for the future services of a significant number of employees.
  • f_10k_2018-02-08_681_1225
    Financial - Expense
    In total, these differences, in addition to demographic and other updates, resulted in a net gain of $131 million which has been recognized within net periodic benefit cost and reported as a special item.
  • f_10k_2018-02-08_449_902
    Other - Other
    The increase was driven by the government purchase tax incentive for vehicles with engine displacements of 1.6 liters or lower.
  • f_10k_2018-02-08_801_1457
    Other - Other
    If interest rates or other factors change, Ford Credits actual prepayment experience could be different than projected.
  • f_10k_2018-02-08_494_1001
    Other - Other
    Ford Credits primary funding and liquidity objective is to be well capitalized with a strong, investment grade balance sheet and ample liquidity to support its financing activities and growth under a variety of market conditions, including short-term and long-term market disruptions.
  • f_10k_2018-02-08_1260_1966
    Financial - Shares / Equity
    Performance-based RSUs have two components: one based on Fords internal financial performance metrics, and the other based on Fords total shareholder return relative to total shareholder returns of an industrial and automotive peer group.
  • f_10k_2018-02-08_211_580
    Financial - Expense
    For example, increases in structural costs are necessary to grow our business and improve profitability as we expand around the world, invest in new products and technologies, respond to increasing industry sales volume, and grow our market share.
  • f_10k_2018-02-08_100_323
    Other - Other
    Pension and other postretirement liabilities could adversely affect Fords liquidity and financial condition.
  • f_10k_2018-02-08_577_2596
    Other - Other
    Pension and other postretirement liabilities could adversely affect Fords liquidity and financial condition
  • f_10k_2018-02-08_1855_3450
    Other - Other
    Net change in inventory allowances, including translation adjustments.
  • f_10k_2018-02-08_463_927
    Revenue - Geography
    Lease residual performance primarily reflects higher depreciation in North America as we expect lower auction values in the future.
  • f_10k_2018-02-08_772_2699
    Revenue - Geography
    Foreign currency risk, commodity risk, and interest rate risk are measured and quantified using a model to evaluate the sensitivity of market value to instantaneous, parallel shifts in rates and/or prices.
  • f_10k_2018-02-08_400_2535
    Revenue - Geography
    In total, our Automotive operations outside North America delivered a full year profit of $421 million, $198 million higher than in 2015.
  • f_10k_2018-02-08_1277_1993
    Other - Other
    We received approximately $16.9 million in proceeds from the exercise of stock options in 2017.
  • f_10k_2018-02-08_1294_2004
    Financial - Income
    This act includes, among other items, a permanent reduction to the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018, and requires immediate taxation of accumulated, unremitted non-U.S. earnings.
  • f_10k_2018-02-08_216_602
    Other - Other
    Over the long term, intense competition and excess capacity will continue to put downward pressure on inflation-adjusted prices for similarly-contented vehicles in the United States and contribute to a challenging pricing environment for the automotive industry.
  • f_10k_2018-02-08_1168_1858
    Financial - Expense
    Engineering, research, and development costs are expensed as incurred when performed internally or when performed by a supplier if we guarantee reimbursement.
  • f_10k_2018-02-08_1247_1957
    Financial - Income
    Financing income represents interest earned on the finance receivables including direct financing leases.
  • f_10k_2018-02-08_373_792
    Other - Other
    Average placement FICO scores remained strong, and Ford Credits origination, servicing, and collection practices continued to be disciplined and consistent.
  • f_10k_2018-02-08_112_374
    Other - Other
    Operational systems, security systems, and vehicles could be affected by cyber incidents.
  • f_10k_2018-02-08_583_2602
    Other - Other
    Operational systems, security systems, and vehicles could be affected by cyber incidents
  • f_10k_2018-02-08_323_2502
    Revenue - Geography
    Europes full year 2017 pre-tax profit was $971 million lower than a year ago driven by Brexit effects, reflecting the weaker sterling and lower U.K. industry, offset partially by favorable net pricing in the United Kingdom higher commodities, mainly steel and other metals Fiesta launch effects, reflecting lower volume and higher costs, both product and structural costs, offset partially by favorable net pricing and higher warranty costs.
  • f_10k_2018-02-08_1837_3432
    Other - Other
    Certain of the quarterly results identified in the table above include material unusual or infrequently occurring items as follows on a pre-tax basis, except for tax items:
  • f_10k_2018-02-08_485_972
    Financial - Cash Flow
    As a result, our cash flow tends to improve as wholesale volumes increase, but can deteriorate significantly when wholesale volumes drop sharply.
  • f_10k_2018-02-08_1519_2131
    Financial - Expense
    Actuarial gains and losses resulting from plan remeasurement are recognized in net periodic benefit cost in the period of the remeasurement.
  • f_10k_2018-02-08_1385_3082
    Other - Other
    Contractual maturities of total finance receivables outstanding at
  • f_10k_2018-02-08_1487_3157
    Financial - Shares / Equity
    We use the equity method of accounting for our investments in entities over which we do not have control, but over whose operating and financial policies we are able to exercise significant influence.
  • f_10k_2018-02-08_307_2493
    Other - Other
    All full year key metrics were improved from a year ago, as macroeconomic conditions continue to show signs of improvement.
  • f_10k_2018-02-08_106_346
    Other - Other
    We are continuing to make changes to our product cycle plan to improve the fuel economy of our petroleum-powered vehicles and to offer more electrified vehicles with lower GHG emissions.
  • f_10k_2018-02-08_370_786
    Financial - Debt
    Includes debt issued in securitizations and payable only out of collections on the underlying securitized assets and related enhancements.
  • f_10k_2018-02-08_472_941
    Financial - Debt
    Based on our planning assumptions, we believe we have sufficient liquidity and capital resources to continue to invest in new products and services that customers want and value, transform and grow our business, pay our debts and obligations as and when they come due, pay a sustainable regular dividend at the current level, and provide protection within an uncertain global economic environment.
  • f_10k_2018-02-08_1792_3393
    Financial - Expense
    The estimate of our future warranty and field service action costs, net of estimated supplier recoveries, for the years ended December 31 were as follows in millions:
  • f_10k_2018-02-08_220_614
    Financial - Earnings
    In general, larger vehicles tend to command higher prices and be more profitable than smaller vehicles, both across and within vehicle segments.
  • f_10k_2018-02-08_1656_3296
    Financial - Debt
    Our public, unsecured debt securities outstanding at December 31 were as follows in millions:
  • f_10k_2018-02-08_229_642
    Revenue - Product
    In response to these trends, we refined our strategy in 2017 to focus on resetting revenue and attacking costs in the short-term, and redesigning our business to compete and win in the future.
  • f_10k_2018-02-08_48_108
    Revenue - Product
    By the 2025 model year, approximately 15% of a manufacturers total California sales volume will need to be made up of such vehicles.
  • f_10k_2018-02-08_1130_1770
    Other - Other
    Trade receivables initially are recorded at the transaction amount and are typically outstanding for less than 30 days.
  • f_10k_2018-02-08_1388_2032
    Revenue - Product
    For wholesale receivables, which are included in dealer financing, maturities stated above are estimated based on historical trends, as maturities on outstanding amounts are scheduled upon the sale of the underlying vehicle by the dealer.
  • f_10k_2018-02-08_1277_1990
    Other - Other
    For the years ended December 31, 2016 and 2017, stock options outstanding were 35.5 million and 31.7 million, respectively, and stock options exercisable were 33.4 million and 31.7 million, respectively.
  • f_10k_2018-02-08_93_297
    Financial - Earnings
    Changes in commodity prices, currency exchange rates, and interest rates cannot always be predicted, hedged, or offset with price increases to eliminate earnings volatility.
  • f_10k_2018-02-08_215_597
    Other - Other
    According to production capacity data projected by IHS Automotive, global excess capacity conditions could continue for several years at an average of about 40 million units per year during the period from 2018 to 2023.
  • f_10k_2018-02-08_804_1465
    Financial - Debt
    Ford Credit faces exposure to currency exchange rates if a mismatch exists between the currency of receivables and the currency of the debt funding those receivables.
  • f_10k_2018-02-08_779_1402
    Other - Other
    The net fair value of commodity forward contracts including adjustments for credit risk as of December 31, 2016 was an asset of $5 million compared with an asset of $33 million as of December 31, 2017.
  • f_10k_2018-02-08_18_39
    Other - Other
    We have generated a large number of patents, and expect this portfolio to continue to grow as we actively pursue additional technological innovation.
  • f_10k_2018-02-08_1131_2890
    Other - Other
    Net Intangible Assets and Goodwill
  • f_10k_2018-02-08_1133_1781
    Other - Other
    The net carrying amount of our intangible assets was $198 million and $213 million at December 31, 2016 and 2017, respectively.
  • f_10k_2018-02-08_1135_2892
    Other - Other
    The carrying amount of intangible assets and goodwill is reported in Other assets in the non-current asset section of our consolidated balance sheet.
  • f_10k_2018-02-08_330_2506
    Financial - Shares / Equity
    Our market share was 3.9%, down six-tenths of a percentage point due to unfavorable market mix and market performance in the Middle East.
  • f_10k_2018-02-08_391_818
    Revenue - Product
    Company revenue for full year 2016 was $151.8 billion, $2.2 billion higher than a year ago.
  • f_10k_2018-02-08_1161_1842
    Financial - Expense
    For employees who are temporarily idled, we expense the benefits on an as-incurred basis.
  • f_10k_2018-02-08_104_336
    Other - Other
    NHTSAs enforcement strategy has shifted to a significant increase in civil penalties levied and the use of consent orders requiring direct oversight by NHTSA of certain manufacturers safety processes, a trend that could continue.
  • f_10k_2018-02-08_204_562
    Revenue - Product
    As we have seen in recent years, annual production volumes are heavily impacted by external economic factors, including the pace of economic growth and factors such as the availability of consumer credit and cost of fuel.
  • f_10k_2018-02-08_525_1076
    Financial - Income
    The fixed income mix in our non-U.S. plans at year-end 2017 was 80%, four percentage points higher than year-end 2016.
  • f_10k_2018-02-08_1543_3204
    Other - Other
    We recognized a curtailment gain of
  • f_10k_2018-02-08_193_520
    Other - Other
    The measure provides an ongoing effective rate which investors find useful for historical comparisons and for forecasting.
  • f_10k_2018-02-08_78_249
    Revenue - Geography
    Any difference between North American and UN-ECE based regulations can add complexity and costs to the development of global platform vehicles, and we continue to support efforts to harmonize regulations to reduce vehicle design complexity while providing a common level of safety performance several recently launched bilateral negotiations on free trade can potentially contribute to this goal.
  • f_10k_2018-02-08_262_2468
    Financial - Earnings
    Net Pricing primarily measures profit variance driven by changes in wholesale prices to dealers and marketing incentive programs such as rebate programs, low-rate financing offers, special lease offers, and stock adjustments on dealer inventory
  • f_10k_2018-02-08_1588_2207
    Revenue - Product
    Exchange-traded derivatives for which market quotations are readily available are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1.
  • f_10k_2018-02-08_1518_2123
    Other - Other
    Defined benefit pension and OPEB plan obligations are remeasured at least annually as of December 31 based on the present value of projected future benefit payments for all participants for services rendered to date.
  • f_10k_2018-02-08_1583_2198
    Other - Other
    Pricing services utilize matrix pricing, which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity, and type, as well as dealer-supplied prices, and generally are categorized as Level 2 inputs in the fair value hierarchy.
  • f_10k_2018-02-08_47_103
    Other - Other
    Compliance with automobile emission standards depends in part on the widespread availability of high-quality and consistent automotive fuels that the vehicles were designed to use.
  • f_10k_2018-02-08_525_1074
    Financial - Income
    The fixed income mix in our U.S. plans at year-end 2017 was 76%, one percentage point higher than year-end 2016.
  • f_10k_2018-02-08_57_152
    Other - Other
    The EU accelerated efforts to finalize its RDE testing program as described above.
  • f_10k_2018-02-08_444_895
    Revenue - Product
    Lower industry volume was the primary driver in the 14% reduction in our wholesale volume.
  • f_10k_2018-02-08_449_901
    Revenue - Geography
    Asia Pacific industry was 42.1 million units, up 3.0 million units from 2015, primarily explained by a 2.9 million unit increase in China industry volume, estimated at 26.4 million units.
  • f_10k_2018-02-08_706_1277
    Other - Other
    See Note 11 of the Notes to the Financial Statements for more information regarding allowance for credit losses.
  • f_10k_2018-02-08_747_2686
    Financial - Expense
    Nonrefundable Fees and Other Costs - Premium Amortization on Purchased Callable Debt Securities
  • f_10k_2018-02-08_724_2673
    Other - Other
    After establishing the collective and specific allowance for credit losses, if Ford Credit 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 factors, an adjustment is made based on management judgment.
  • f_10k_2018-02-08_717_2672
    Other - Other
    After establishing the collective and specific allowance for credit losses, if Ford Credit 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 factors, an adjustment is made based on management judgment.
  • f_10k_2018-02-08_1437_3117
    Other - Other
    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 factors, an adjustment is made based on management judgment.
  • f_10k_2018-02-08_1441_3119
    Other - Other
    After establishing the collective and the 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 factors, an adjustment is made based on management judgment.
  • f_10k_2018-02-08_193_521
    Other - Other
    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.
  • f_10k_2018-02-08_1697_3329
    Other - Other
    Interest rate contracts, including swaps, that are used to manage the effects of interest rate fluctuations and
  • f_10k_2018-02-08_976_1729
    Financial - Debt
    Instruments defining the rights of holders of certain issues of long-term debt of Ford and of certain consolidated subsidiaries and of any unconsolidated subsidiary, for which financial statements are required to be filed with this Report, have not been filed as exhibits to this Report because the authorized principal amount of any one of such issues does not exceed 10% of the total assets of Ford and our subsidiaries on a consolidated basis.
  • f_10k_2018-02-08_398_829
    Financial - Earnings
    Our total Company adjusted pre-tax profit consisted of our second-best Automotive segment profit of $9.4 billion, a solid profit of $1.8 billion in the Financial Services segment, and a loss of $867 million in All Other.
  • f_10k_2018-02-08_1156_1828
    Financial - Expense
    We use the fair value of collateral, adjusted for estimated costs to sell, to determine the fair value of our receivables.
  • f_10k_2018-02-08_1572_2172
    Other - Other
    Strategies to address the goal of ensuring sufficient assets to pay benefits include target allocations to a broad array of asset classes, and strategies within asset classes that provide adequate returns, diversification, and liquidity.
  • f_10k_2018-02-08_115_393
    Financial - Earnings
    A significant reduction in the amount of receivables Ford Credit purchases or originates would significantly reduce its ongoing profits and could adversely affect its ability to support the sale of Ford vehicles.
  • f_10k_2018-02-08_1236_1918
    Revenue - Product
    The amount of consideration we receive and revenue we recognize varies with changes in marketing incentives and returns we offer to our customers and their customers.
  • f_10k_2018-02-08_1573_2177
    Other - Other
    Alternative investment managers are permitted to employ leverage including through the use of derivatives or other tools that may alter economic exposure.
  • f_10k_2018-02-08_801_1453
    Other - Other
    While the sensitivity analysis presented is Ford Credits best estimate of the impacts of the specified assumed interest rate scenarios, its actual results could differ from those projected.
  • f_10k_2018-02-08_715_2671
    Financial - Expense
    For accounts greater than 120 days past due, the uncollectible portion is charged off, such that the remaining recorded investment is equal to the estimated fair value of the collateral less costs to sell.
  • f_10k_2018-02-08_78_250
    Revenue - Geography
    New safety and recall requirements in China, India, and Gulf Cooperation Council countries also may add substantial costs and complexity to our global recall practice.
  • f_10k_2018-02-08_1226_1894
    Financial - Expense
    We plan to elect the practical expedients upon transition that will retain the lease classification and initial direct costs for any leases that exist prior to adoption of the standard.
  • f_10k_2018-02-08_1425_2074
    Financial - Expense
    In the event we repossess the collateral, the receivable is charged off and we record the collateral at its estimated fair value less costs to sell and report it in Other assets on the balance sheet.
  • f_10k_2018-02-08_141_473
    Financial - Expense
    Annual payout and defense costs may become significant in the future.
  • f_10k_2018-02-08_1404_3097
    Financial - Expense
    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.
  • f_10k_2018-02-08_210_574
    Financial - Expense
    We also have varying degrees of discretion when it comes to controlling the different elements within our structural costs.
  • f_10k_2018-02-08_367_2523
    Other - Other
    Cash as shown on the Funding Structure, Liquidity Sources, and Leverage charts Cash, cash equivalents, and marketable securities, excluding amounts related to insurance activities
  • f_10k_2018-02-08_65_180
    Other - Other
    With the adoption of the federal One National Program standards discussed above, California and the other states have agreed that compliance with the federal program would satisfy compliance with any purported state GHG requirements for the 2012 2025 model years.
  • f_10k_2018-02-08_1326_2015
    Financial - Income
    Basic EPS excludes dilution and is computed by dividing income available to Common and Class B Stock holders by the weighted-average number of Common and Class B Stock outstanding for the period.
  • f_10k_2018-02-08_100_329
    Financial - Cash Flow
    If our cash flows and capital resources were insufficient to meet any pension or OPEB obligations, we could be forced to reduce or delay investments and capital expenditures, suspend dividend payments, seek additional capital, or restructure or refinance our indebtedness.
  • f_10k_2018-02-08_806_1471
    Other - Other
    The Report of Independent Registered Public Accounting Firm, our Financial Statements, the accompanying Notes to the Financial Statements, and the Financial Statement Schedule that are filed as part of this Report are listed under Item 15.
  • f_10k_2018-02-08_828_2721
    Other - Other
    The Report of Independent Registered Public Accounting Firm, the Consolidated Financial Statements, and the Notes to the Financial Statements listed above are filed as part of this Report and are set forth beginning on page FS-1 immediately following the signature pages of this Report.
  • f_10k_2018-02-08_519_1062
    Other - Other
    Our strategy is to reduce the risk of our funded defined benefit pension plans, including minimizing the volatility of the value of our pension assets relative to pension liabilities and the need for unplanned use of capital resources to fund the plans.
  • f_10k_2018-02-08_77_243
    Financial - Expense
    Should we or NHTSA determine that either a safety defect or noncompliance issue exists with respect to any of our vehicles, the cost of such recall campaigns could be substantial.
  • f_10k_2018-02-08_528_1082
    Other - Other
    The contributions in 2017 included a pull-ahead of about $500 million of 2018 planned funding into the fourth quarter of 2017 to achieve a cash tax benefit.
  • f_10k_2018-02-08_1567_2162
    Other - Other
    The contributions in 2017 included a pull ahead of about $500 million of 2018 planned funding into the fourth quarter of 2017 to achieve a cash tax benefit.
  • f_10k_2018-02-08_1154_1815
    Financial - Cash Flow
    These models project future cash flows and discount the future amounts to a present value using market-based expectations for interest rates, foreign exchange rates, commodity prices, and the contractual terms of the derivative instruments.
  • f_10k_2018-02-08_993_1734
    Other - Other
    Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework 2013 issued by the COSO.
  • f_10k_2018-02-08_406_838
    Financial - Shares / Equity
    Global market share was down one-tenth of a percentage point driven by lower market share in North America and South America.

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Exhibit 10.O-2 - MATERIAL CONTRACT

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Exhibit 10.P-2 - MATERIAL CONTRACT

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Exhibit 10.P-3 - MATERIAL CONTRACT

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Exhibit 10.P-4 - MATERIAL CONTRACT

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Exhibit 10.P-5 - MATERIAL CONTRACT

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Exhibit 10.P-6 - MATERIAL CONTRACT

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Exhibit 10.P-7 - MATERIAL CONTRACT

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Exhibit 10.P-8 - MATERIAL CONTRACT

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Exhibit 10.P-9 - MATERIAL CONTRACT

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Exhibit 10.P-10 - MATERIAL CONTRACT

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Exhibit 10.P-11 - MATERIAL CONTRACT

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Exhibit 10.P-12 - MATERIAL CONTRACT

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Exhibit 10.P-13 - MATERIAL CONTRACT

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Exhibit 10.P-14 - MATERIAL CONTRACT

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Exhibit 10.P-15 - MATERIAL CONTRACT

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Exhibit 12 - STATEMENT REGARDING CALCULATION OF RATIOS

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Exhibit 21 - SUBSIDARIES OF THE REGISTRANT

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Exhibit 23 - CONSENTS OF EXPERTS AND COUNSEL

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Exhibit 24 - POWER OF ATTORNEY

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Exhibit 31.1 - RULE 13A-14A/15D-14A CERTIFICATION

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Exhibit 31.2 - RULE 13A-14A/15D-14A CERTIFICATION

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Exhibit 32.1 - SECTION 1350 CERTIFICATION

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Exhibit 32.2 - SECTION 1350 CERTIFICATION

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  • Form Type: Annual
  • Number of times amended: 1
  • Accession Number: 0000037996-18-000015
  • Submitted to the SEC: Thursday, February 8, 2018 11:41:16 AM EST
  • Accepted by the SEC: Thursday, February 8, 2018
  • Fiscal Year ending: December 2017
  • Industry: Motor Vehicles And Passenger Car Bodies