FORD MOTOR CO (F) SEC Filing 10-K Annual report for the fiscal year ending Saturday, December 31, 2016

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Ford Motor Company 4Q January 26, 2017 H I G H L I G H T S P R O D U C T S & S E R V I C E S *See endnote on page 4. For news releases, related materials and high-resolution photos and video, visit www.media.ford.com. Follow at www.facebook.com/ford, www.twitter.com/ford or www.youtube.com/fordvideo1 │ NEWS www.facebook.com/ford www.twitter.com/ford Full Year 2016 B/(W) FY 2015 4Q 2016 B/(W) 4Q 2015 Ford Finishes 2016 Strong; Fourth Quarter and Full-Year Profits in Line with Expectations 2 0 1 6 F U L L - Y E A R A N D F O U R T H Q U A R T E R F I N A N C I A L R E S U LT S * 2017 F-Series Super Duty 2017 Lincoln Continental Fusion Hybrid AV Test Vehicle Ford F-Series officially became the best-selling truck in the U.S. for 40 straight years. Thanks in part to the all-new Super Duty, which raised the bar with its all-new chassis and high-strength military grade aluminum alloy body, updated powertrains and up to 20 segment-exclusive features. Lincoln had a strong 2016, with sales up 24 percent globally, 17 percent in the U.S. and nearly triple in China. The company sold 159,000 vehicles while also receiving third–party recognition for product appeal, quality and customer satisfaction. San Francisco-based Chariot, an app-based, crowd-sourced ride-sharing service, was expanded to Austin, Texas in the fourth quarter. Chariot will expand to eight cities by the end of 2017, including at least one global city. Chariot Ride-Sharing Service In December, Ford launched the next-generation Fusion Hybrid Autonomous Development Vehicle, bringing its test fleet size to 30 vehicles making it one of the largest in the auto industry. In 2017, the company plans to triple the size of the fleet for a total of about 90 vehicles. “We achieved a solid 2016 net income of $4.6 billion, as well as an adjusted pre-tax company profit of $10.4 billion, which was our second best ever – building on the all-time record we had set the year before. This underscores the substantial progress we are making in expanding our business to be an auto and a mobility company. This year, we’re focused on building on our strengths, transforming underperforming parts of our business and investing in the emerging opportunities that will provide even more profitable growth in the future.” Mark Fields, President & CEO Adjusted Pre-Tax Profit Automotive Segment Automotive Segment Net Income (Non-GAAP) Revenue Wholesales Operating Margin Operating Cash Flow $4.6B $10.4B $151.8B 6,651K 6.7% $6.4B $(2.8)B $(0.4)B $2.2B 16K (0.1) ppts $(0.9)B $(0.8)B $2.1B $38.7B 1,707K 5.7% $1.5B $(2.7)B $(0.5)B $(1.6)B (68)K (0.4) ppts $(0.6)B  Full-year net income $4.6B, down $2.8B from a year ago due to $3.0B 4Q pre-tax pension remeasurement; full-year total company adjusted pre-tax profit $10.4B, down slightly from a year ago  Full-year earnings per share $1.15, down $0.69 from a year ago; adjusted earnings per share $1.76, down $0.17  Second-best profit sharing payments to more than 56,000 eligible hourly UAW-represented employees; approximately $9,000 for employees on a full-year basis  Full-year global market share of 7.3 percent, down one-tenth of a percentage point from a year ago  Full-year Automotive segment pre-tax profit $9.4B, down $0.1B; Automotive segment operating margin 6.7 percent, down 0.1 ppts; both close to the record results in 2015  North America full-year operating margin 9.7 percent, including record 4Q operating margin of 8.5 percent  Record full-year performance in Europe; $1.2 billion pre-tax profit and operating margin of 4.2 percent; Asia Pacific, second-best full-year pre-tax profit of $627M  Automotive operations outside North America delivered a full-year profit of $421 million, nearly double 2015  Strong cash and liquidity including Automotive cash of $27.5B; cash net of debt $11.6B  Full-Year Automotive segment operating cash flow $6.4B, down $0.9B from a year ago  Ford Credit full-year pre-tax profit of $1.9B  Launched 11 global products in 2016, including first all-new F-Series Super Duty in 18 years, the flagship Lincoln Continental and Focus RS  Rewarded shareholders by distributing $3.5 billion, including first supplemental dividend of $1 billion  2017 guidance: Consistent with previous guidance, 2017 company outlook generally lower than 2016, driven by investments in emerging opportunities


The following information was filed by FORD MOTOR CO on Thursday, January 26, 2017 as an 8K 2.02 statement, which is a 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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  • f_10k_2017-02-09_79_263
    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 financial crisis, recession, geopolitical events, or other factors, the decline could have a substantial adverse effect on our financial condition, results of operations, and cash flow.
  • f_10k_2017-02-09_644_2694
    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_2017-02-09_432_983
    Revenue - Geography
    The improvement in Europe reflects favorable market factors and improved costs flowing through to the bottom line, partially offset by unfavorable exchange and the consolidation of Ford Sollers, our joint venture in Russia.
  • f_10k_2017-02-09_365_870
    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_2017-02-09_654_1295
    Financial - Expense
    This refinement has no effect on the measurement of our plan obligations or on full year pension and OPEB expense as lower service and interest costs recorded quarterly are offset in the fourth quarter remeasurement.
  • f_10k_2017-02-09_651_1284
    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_2017-02-09_203_575
    Financial - Expense
    Specifically, we include in cost of sales each of the following: material costs including commodity costs freight costs warranty, including product recall and customer satisfaction program costs labor and other costs related to the development and manufacture of our products depreciation and amortization and other associated costs.
  • f_10k_2017-02-09_89_301
    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_2017-02-09_88_298
    Revenue - Geography
    This uncertainty could cause financial and capital markets within and outside Europe to constrict, thereby negatively impacting our ability to finance our business or, if a country within the euro area were to default on its debt or withdraw from the euro currency, or- in a more extreme circumstance the euro currency were to be dissolved entirely, the impact on markets around the world, and on Fords global business, could be immediate and significant.
  • f_10k_2017-02-09_451_1014
    Revenue - Product
    The improvement is more than explained by favorable volume and mix, driven by growth in all products globally.
  • f_10k_2017-02-09_79_261
    Revenue - Product
    Decline in industry sales volume, particularly in the United States, Europe, or China, due to financial crisis, recession, geopolitical events, or other factors.
  • f_10k_2017-02-09_549_2620
    Revenue - Product
    Decline in industry sales volume, particularly in the United States, Europe, or China, due to financial crisis, recession, geopolitical events, or other factors
  • f_10k_2017-02-09_180_526
    Financial - Shares / Equity
    The plan authorized repurchases of up to 10.7 million shares of Ford Common Stock.
  • f_10k_2017-02-09_414_956
    Revenue - Product
    Favorable volume and mix and higher net pricing drove North Americas pre-tax profit higher than a year ago.
  • f_10k_2017-02-09_476_1074
    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_2017-02-09_1586_2292
    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_2017-02-09_1484_2239
    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_2017-02-09_298_2549
    Revenue - Geography
    Included in North Americas profit is about $600 million for the door latch recall we announced in the third quarter, which negatively impacted North Americas operating margin by six-tenths of a percentage point.
  • f_10k_2017-02-09_1209_2053
    Revenue - Product
    We will adopt the new revenue guidance effective January 1, 2017, by recognizing the cumulative effect of initially applying the new standard as an increase to the opening balance of retained earnings.
  • f_10k_2017-02-09_223_641
    Other - Other
    Over a period of time, the emerging weakness of the yen can contribute to other countries pursuing weak currency policies by intervening in the exchange rate markets.
  • f_10k_2017-02-09_448_2597
    Financial - Earnings
    Ford Credit earned a pre-tax profit of $2.1 billion in 2015, up $232 million from 2014, and its receivables were higher than 2014.
  • f_10k_2017-02-09_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 and trucks and the availability and cost of financing and fuel.
  • f_10k_2017-02-09_266_2534
    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_2017-02-09_250_723
    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_2017-02-09_1609_2328
    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_2017-02-09_442_995
    Revenue - Product
    The industry volume for the region was 39.1 million units, down 600,000 units from a year ago, primarily explained by a decrease in the China industry volume.
  • f_10k_2017-02-09_337_825
    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_2017-02-09_1183_2021
    Financial - Expense
    When we pass the risks and rewards of ownership to our suppliers, including inventory risk, market price risk, and credit risk for the raw material, we record both the cost of the raw material and the income from the subsequent sale to the supplier in Cost of sales.
  • f_10k_2017-02-09_786_1543
    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_2017-02-09_676_1337
    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_2017-02-09_436_2593
    Revenue - Product
    The industry volume for the region was flat and our market share declined two-tenths of a percentage point due to industry growth in markets in which we do not participate.
  • f_10k_2017-02-09_575_1224
    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_2017-02-09_340_2566
    Revenue - Geography
    Asia Pacifics full year 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_2017-02-09_239_683
    Revenue - Product
    Sales for Lincoln were up 24% globally and tripled in China in 2016, and Lincoln is being recognized for product appeal, quality, and customer satisfaction.
  • f_10k_2017-02-09_1427_2183
    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_2017-02-09_1448_2215
    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_2017-02-09_402_2586
    Financial - Earnings
    Automotive operating margin was up 2.2 points or nearly 50%, and
  • f_10k_2017-02-09_324_806
    Revenue - Geography
    Improved results in Russia also contributed to Europes favorable year-over-year profit improvement.
  • f_10k_2017-02-09_252_727
    Financial - Expense
    Cost of sales and Selling, administrative, and other expenses for the full year 2016 were $138.8 billion, an increase of about $4.2 billion compared with 2015.
  • f_10k_2017-02-09_81_271
    Financial - Earnings
    A shift in consumer preferences away from larger, more profitable vehicles 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_2017-02-09_37_76
    Revenue - Product
    These programs increase Ford Credits financing volume and share.
  • f_10k_2017-02-09_505_1145
    Other - Other
    Managed leverage is above the targeted range reflecting growth in receivables and the continued impact of a strong U.S. dollar, but it continues to trend toward the target range.
  • f_10k_2017-02-09_1003_1877
    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_2017-02-09_318_2558
    Revenue - Geography
    Europe delivered a record full year profit of $1.2 billion and a record operating margin of 4.2%, both up sharply from a year ago.
  • f_10k_2017-02-09_653_1290
    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_2017-02-09_336_824
    Financial - Shares / Equity
    The improvement in share was driven by new product introductions, including Taurus, Edge, Lincoln MKX, and Lincoln MKZ.
  • f_10k_2017-02-09_407_942
    Financial - Expense
    Cost increases were mainly product-related costs and manufacturing and engineering expense that supported our growth in 2015, and will support further growth in 2016 and beyond.
  • f_10k_2017-02-09_834_2767
    Other - Other
    Executive Separation Allowance Plan as amended and restated effective as of January 1, 2012**
  • f_10k_2017-02-09_844_1627
    Other - Other
    Supplemental Executive Retirement Plan, amended and restated effective as of January 1, 2013.
  • f_10k_2017-02-09_846_1631
    Other - Other
    Defined Contribution Supplemental Executive Retirement Plan, effective January 1, 2013.
  • f_10k_2017-02-09_867_1673
    Other - Other
    Select Retirement Plan, amended and restated effective as of January 1, 2014.
  • f_10k_2017-02-09_1168_1977
    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_2017-02-09_85_287
    Revenue - Geography
    As a result, substantial unfavorable changes in foreign currency exchange rates, commodity prices, or interest rates could have a substantial adverse effect on our financial condition and results of operations.
  • f_10k_2017-02-09_796_1563
    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_2017-02-09_445_1002
    Revenue - Product
    Favorable volume was driven by strong industry in China, where we were able to leverage the government incentive program with our strong line-up of vehicles with 1.6L or smaller engines.
  • f_10k_2017-02-09_328_2562
    Revenue - Geography
    Middle East & Africas operating margin and pre-tax results were down sharply, reflecting difficult external conditions resulting in lower volume and unfavorable exchange, primarily the South African rand.
  • f_10k_2017-02-09_1550_3242
    Revenue - Product
    Average effective rates reflect the average contractual interest rate plus amortization of discounts, premiums, and issuance costs.
  • f_10k_2017-02-09_1220_2071
    Financial - Expense
    In addition, our results include Special items that consist of i pension and other postretirement employee benefits 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_2017-02-09_411_951
    Financial - Shares / Equity
    In addition, although not shown above, U.S. retail share increased one-tenth of a percentage point to 13.0% driven by strong demand for our newest products, including F-150 and Mustang.
  • f_10k_2017-02-09_337_827
    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_2017-02-09_786_1541
    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_2017-02-09_664_2697
    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_2017-02-09_205_581
    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_2017-02-09_1789_2446
    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_2017-02-09_645_1264
    Other - Other
    Changes in estimates used in these and other items could have a material impact on our financial statements.
  • f_10k_2017-02-09_113_411
    Revenue - Product
    Actual return volumes may be higher than expected and can be influenced by contractual lease-end values relative to auction values, marketing programs for new vehicles, and general economic conditions.
  • f_10k_2017-02-09_325_809
    Revenue - Geography
    We also expect continued improvements from our business in Russia.
  • f_10k_2017-02-09_407_941
    Revenue - Geography
    The improvement was driven by $7.4 billion of favorable market factors, reflecting the success of our new product launches, our Asia Pacific growth strategy, as well as industry growth in North America and Europe.
  • f_10k_2017-02-09_511_2607
    Financial - Income
    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_2017-02-09_343_2568
    Revenue - Product
    Volume and mix were up reflecting higher industry volume in China and improved mix from new product launches.
  • f_10k_2017-02-09_41_94
    Financial - Expense
    As OBD requirements become more complex and challenging over time, they could lead to increased vehicle recalls and warranty costs.
  • f_10k_2017-02-09_1495_2272
    Other - Other
    The Ford-Werke GmbH Ford-Werke defined benefit plan is primarily funded through a group insurance contract.
  • f_10k_2017-02-09_212_600
    Financial - Expense
    Our Automotive segments material and commodity costs make up the largest portion of these costs and expenses, representing in 2016 about two-thirds of the total amount.
  • f_10k_2017-02-09_1002_1868
    Other - Other
    The Companys management is responsible for these financial statements and the financial statement schedule, 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_2017-02-09_95_322
    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_2017-02-09_418_964
    Revenue - Product
    Wholesale volume, revenue, and operating margin were each lower than a year ago, reflecting the continued deterioration of the business environment in South America.
  • f_10k_2017-02-09_85_286
    Financial - Expense
    In addition, because of intense price competition and our high level of fixed costs, we may not be able to address such changes even if foreseeable.
  • f_10k_2017-02-09_192_536
    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_2017-02-09_1622_2343
    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_2017-02-09_1204_2041
    Financial - Earnings
    We will adopt the standard effective January 1, 2017 by recognizing a one-time increase of about $500 million to retained earnings and deferred tax assets related to cumulative excess tax benefits previously unrecognized.
  • f_10k_2017-02-09_441_2596
    Revenue - Geography
    Our China joint ventures contributed $1.5 billion to pre-tax profit in 2015, reflecting our equity share of the unconsolidated joint ventures after-tax earnings this was $234 million higher than last year.
  • f_10k_2017-02-09_1448_2214
    Financial - Expense
    Service and interest costs in 2016 were about $580 million lower with the new method than they would have been under the prior method.
  • f_10k_2017-02-09_765_1481
    Revenue - Geography
    Foreign currency risk is the possibility that our financial results could be better or worse than planned because of changes in currency exchange rates.
  • f_10k_2017-02-09_401_2585
    Revenue - Product
    Automotive revenue was up 4%, or 9% at constant exchange,
  • f_10k_2017-02-09_297_775
    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_2017-02-09_387_908
    Financial - Earnings
    Net income attributable to Ford for full year 2015 was $7.4 billion or $1.84 diluted earnings per share of Common and Class B Stock, an increase of $6.1 billion or $1.53 per share compared with 2014.
  • f_10k_2017-02-09_803_1578
    Other - Other
    Based on this assessment, management concluded that our internal control over financial reporting was effective as of December 31, 2016.
  • f_10k_2017-02-09_353_852
    Other - Other
    For additional information on the allowance for credit losses, refer to the Critical Accounting Estimates - Allowance for Credit Losses section below
  • f_10k_2017-02-09_1171_1986
    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_2017-02-09_792_2748
    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_2017-02-09_77_259
    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 including for emerging opportunities.
  • f_10k_2017-02-09_334_2565
    Revenue - Product
    Wholesale volume increased by 10% while revenue from consolidated operations was up 12%.
  • f_10k_2017-02-09_400_2584
    Revenue - Product
    Wholesale volume was up 5%,
  • f_10k_2017-02-09_243_699
    Other - Other
    In each area, we are leveraging the strengths of our core business, as well as synergies across the three areas.
  • f_10k_2017-02-09_314_795
    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_2017-02-09_214_609
    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_2017-02-09_759_1467
    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_2017-02-09_765_1482
    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_2017-02-09_1748_3403
    Other - Other
    The amount of unrecognized tax benefits that would affect the effective tax rate if recognized were
  • f_10k_2017-02-09_705_1406
    Other - Other
    Changes in the assumptions used to derive frequency and severity would affect the allowance for credit losses.
  • f_10k_2017-02-09_1285_3034
    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_2017-02-09_19_41
    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_2017-02-09_148_507
    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_2017-02-09_1158_1947
    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_2017-02-09_774_1509
    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_2017-02-09_97_334
    Other - Other
    In 2015, we renewed for an additional three-year period our tax benefit preservation plan the Plan to reduce the risk of an ownership change under Section 382.
  • f_10k_2017-02-09_490_1113
    Other - Other
    The calendarization of the funding plan may result in quarterly fluctuations of the securitized funding percentage.
  • f_10k_2017-02-09_1622_2346
    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_2017-02-09_344_834
    Revenue - Geography
    For 2017, we expect Asia Pacifics profit to improve due to favorable volume and mix.
  • f_10k_2017-02-09_1174_1998
    Revenue - Product
    The difference between the proceeds and the guaranteed repurchase amount is recognized in Automotive revenues over the term of the lease using a straight line method.
  • f_10k_2017-02-09_222_635
    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_2017-02-09_107_377
    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_2017-02-09_329_814
    Revenue - Product
    Industry volume for the region, at 3.6 million units, was down 700,000 units from 2015.
  • f_10k_2017-02-09_419_966
    Revenue - Geography
    The South America industry volume, at 4.2 million units, was down 1.1 million units.
  • f_10k_2017-02-09_432_984
    Financial - Earnings
    Returning to profitability in 2015 reflected the progress of our Transformation Plan announced in 2012.
  • f_10k_2017-02-09_274_2540
    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_2017-02-09_216_621
    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_2017-02-09_107_373
    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_2017-02-09_224_649
    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_2017-02-09_1002_1873
    Other - Other
    Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.
  • f_10k_2017-02-09_344_835
    Revenue - Geography
    This will be offset, in part, by lower net pricing which will be lower due to continued negative China industry pricing and unfavorable exchange, mainly the Chinese renminbi.
  • f_10k_2017-02-09_727_2716
    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, 2016-09, and 2016-13 to our financial statements or financial statement disclosures:
  • f_10k_2017-02-09_1357_2160
    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_2017-02-09_703_1404
    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_2017-02-09_451_1016
    Revenue - Geography
    The higher credit losses, primarily in North America, reflect reserve increases in 2015 compared with reserve releases in 2014.
  • f_10k_2017-02-09_435_990
    Revenue - Product
    Wholesale volume and revenue declined compared to a year ago.
  • f_10k_2017-02-09_292_767
    Revenue - Geography
    Market factors were favorable, driven by strong mix in all regions except South America.
  • f_10k_2017-02-09_1448_2213
    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_2017-02-09_36_72
    Other - Other
    See Item 7 and Notes 6, 7, and 8 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_2017-02-09_410_948
    Financial - Earnings
    We delivered substantial top-line growth, operating margin at 10.2%, and full year pre-tax profit of $9.3 billion up 26%.
  • f_10k_2017-02-09_667_2699
    Other - Other
    For 2017, the expected long-term rate of return on assets is 6.75% for U.S. plans unchanged from 2016, and 5.19% for non-U.S. plans, down 37 basis points compared with a year ago, primarily reflecting lower consensus on capital market return expectations from advisors.
  • f_10k_2017-02-09_828_2766
    Financial - Shares / Equity
    Tax Benefit Preservation Plan TBPP dated September 11, 2009 between Ford Motor Company and Computershare Trust Company, N.A.
  • f_10k_2017-02-09_191_533
    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_2017-02-09_785_1540
    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_2017-02-09_562_2633
    Financial - Expense
    Increased safety, emissions, fuel economy, or other regulations resulting in higher costs, cash expenditures, and/or sales restrictions
  • f_10k_2017-02-09_101_348
    Financial - Expense
    Increased safety, emissions, fuel economy, or other regulations resulting in higher costs, cash expenditures, and/or sales restrictions.
  • f_10k_2017-02-09_895_1729
    Other - Other
    Long-Term Incentive Plan, as amended and restated effective as of January 1, 2003.
  • f_10k_2017-02-09_515_1160
    Financial - Income
    Asset returns for our non-U.S. plans were 14%, reflecting fixed income gains and favorable exchange.
  • f_10k_2017-02-09_897_1733
    Other - Other
    Amendment to Ford Motor Company 1998 Long-Term Incentive Plan effective as of January 1, 2006.
  • f_10k_2017-02-09_234_677
    Other - Other
    Our parts and service business continues to grow, including a significant expansion of Quick Lane globally, adding to customer satisfaction and owner loyalty.
  • f_10k_2017-02-09_463_1034
    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_2017-02-09_82_272
    Other - Other
    Continued or increased price competition resulting from industry excess capacity, currency fluctuations, or other factors.
  • f_10k_2017-02-09_552_2623
    Other - Other
    Continued or increased price competition resulting from industry excess capacity, currency fluctuations, or other factors
  • f_10k_2017-02-09_680_1343
    Financial - Expense
    The sensitivity of pension expense to an increase in discount rates assumptions may not be linear.
  • f_10k_2017-02-09_1493_2265
    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_2017-02-09_540_1201
    Other - Other
    After a strong 2016, we expect to deliver another good year in 2017.
  • f_10k_2017-02-09_72_253
    Financial - Expense
    Achieving high NCAP ratings can add complexity and cost to vehicles.
  • f_10k_2017-02-09_723_1437
    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_2017-02-09_113_407
    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_2017-02-09_389_912
    Financial - Expense
    Cost of sales and Selling, administrative, and other expenses for full year 2015 were $134.5 billion, a decrease of $2.3 billion compared with 2014.
  • f_10k_2017-02-09_191_531
    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_2017-02-09_1351_2150
    Other - Other
    Each LTR is calculated by dividing credit losses by average finance receivables excluding unearned interest supplements and allowance for credit losses.
  • f_10k_2017-02-09_54_159
    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_2017-02-09_54_160
    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_2017-02-09_371_2576
    Other - Other
    The average placement terms and average FICO score have remained stable for several years, reflecting Ford Credits disciplined and consistent underwriting practices.
  • f_10k_2017-02-09_18_36
    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_2017-02-09_1623_2351
    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_2017-02-09_770_1495
    Other - Other
    Commodity price risk is the possibility that our financial results could be better or 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_2017-02-09_395_921
    Financial - Earnings
    We achieved a record Company full-year adjusted pre-tax profit of $10.8 billion in 2015.
  • f_10k_2017-02-09_305_785
    Revenue - Product
    Our incentives were up as a percent of revenue, but less than the industry average.
  • f_10k_2017-02-09_1615_3293
    Other - Other
    Commodity contracts, including forwards, that are used to manage commodity price risk
  • f_10k_2017-02-09_1329_2120
    Revenue - Product
    For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received.
  • f_10k_2017-02-09_1799_3440
    Financial - Expense
    Revisions to our estimated costs are reported as changes in accrual related to pre-existing warranties in the table above.
  • f_10k_2017-02-09_691_1372
    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_2017-02-09_1344_2136
    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_2017-02-09_420_2588
    Financial - Shares / Equity
    Fords market share in South America, at 9.6%, was up seven-tenths of a percentage point reflecting our strong performance in Brazil with the all-new Ka.
  • f_10k_2017-02-09_61_189
    Other - Other
    In separate legislation, complementary measures have been mandated, including requirements related to fuel economy indicators, and more-efficient low-CO2 mobile air conditioning systems.
  • f_10k_2017-02-09_840_1619
    Other - Other
    Benefit Equalization Plan, as amended and restated as of January 1, 2012.
  • f_10k_2017-02-09_395_923
    Revenue - Geography
    In Europe, we earned $259 million, reflecting the progress of our Transformation Plan announced in 2012.
  • f_10k_2017-02-09_1428_2188
    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_2017-02-09_102_354
    Other - Other
    In recent years, we have made significant changes to our product cycle plan to improve the overall fuel economy of vehicles we produce, thereby reducing their GHG emissions.
  • f_10k_2017-02-09_1138_1909
    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_2017-02-09_89_300
    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_2017-02-09_97_332
    Financial - Shares / Equity
    For these purposes, an ownership change occurs if 5 percent shareholders of an issuers outstanding common stock, collectively, increase their ownership percentage by more than 50 percentage points over a rolling three-year period.
  • f_10k_2017-02-09_114_419
    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_2017-02-09_769_1491
    Revenue - Geography
    presented is hypothetical and assumes foreign exchange rate changes are instantaneous and adverse across all currencies.
  • f_10k_2017-02-09_744_1444
    Revenue - Product
    We will adopt the new revenue guidance effective January 1, 2017.
  • f_10k_2017-02-09_760_1470
    Other - Other
    Regular audits are conducted to ensure that appropriate controls are in place and that they remain effective.
  • f_10k_2017-02-09_69_231
    Other - Other
    The standards became effective on January 1, 2016 and will be fully phased in by the end of 2017.
  • f_10k_2017-02-09_954_1843
    Other - Other
    Form of James D. Farley, Jr. Agreement Amendment, effective as of October 12, 2008.
  • f_10k_2017-02-09_1203_2037
    Other - Other
    The new standard is effective as of January 1, 2020, and early adoption is permitted as of January 1, 2019.
  • f_10k_2017-02-09_1205_2046
    Other - Other
    The new standard is effective as of January 1, 2019, and early adoption is permitted.
  • f_10k_2017-02-09_1601_2312
    Other - Other
    As a result, effective March 31, 2015, we consolidated the joint venture for financial reporting purposes.
  • f_10k_2017-02-09_1613_2332
    Other - Other
    To manage these risks, we enter into highly effective derivative contracts:
  • f_10k_2017-02-09_1689_2383
    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_2017-02-09_1532_2283
    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_2017-02-09_760_1468
    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_2017-02-09_369_877
    Financial - Shares / Equity
    Over the last several years, we have seen industry lease share grow.
  • f_10k_2017-02-09_68_223
    Other - Other
    Additional tax reductions are available if further fuel efficiency improvements are achieved.
  • f_10k_2017-02-09_286_755
    Revenue - Product
    Global industry volume, estimated at 91.4 million units, was up 3.2 million units or 4%.
  • f_10k_2017-02-09_1442_3154
    Other - Other
    Effective interest rate on benefit obligation
  • f_10k_2017-02-09_195_545
    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_2017-02-09_292_768
    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_2017-02-09_100_343
    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_2017-02-09_803_1576
    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, 2016.
  • f_10k_2017-02-09_108_387
    Other - Other
    A significant cyber incident could impact production capability, harm our reputation and/or subject us to regulatory actions or litigation.
  • f_10k_2017-02-09_141_489
    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_2017-02-09_763_1477
    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_2017-02-09_875_1689
    Other - Other
    Amendment to the Ford Motor Company Annual Incentive Compensation Plan effective as of December 31, 2008.
  • f_10k_2017-02-09_499_1129
    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_2017-02-09_31_66
    Revenue - Product
    Ford Credit makes wholesale loans to dealers to finance the purchase of vehicle inventory i.e., 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_2017-02-09_330_2563
    Revenue - Geography
    For 2017, we expect results in Middle East & Africa to improve due to lower costs, higher net pricing, and favorable exchange.
  • f_10k_2017-02-09_342_832
    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_2017-02-09_1287_2087
    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_2017-02-09_355_855
    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_2017-02-09_1141_1917
    Other - Other
    We capitalize and amortize our finite-lived intangible assets over their estimated useful lives.
  • f_10k_2017-02-09_668_1323
    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_2017-02-09_708_1416
    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_2017-02-09_1361_2167
    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_2017-02-09_106_367
    Financial - Expense
    Compliance with governmental standards, however, does not necessarily prevent individual or class actions, which can entail significant cost and risk.
  • f_10k_2017-02-09_60_188
    Revenue - Product
    We face the risk of advance premium payment requirements if, for example, unexpected market fluctuation within a quarter negatively impact our average fleet performance.
  • f_10k_2017-02-09_191_532
    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_2017-02-09_1626_2360
    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_2017-02-09_1319_3061
    Other - Other
    Group II fair to favorable financial metrics
  • f_10k_2017-02-09_1488_2253
    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_2017-02-09_697_1390
    Other - Other
    Each LTR is calculated by dividing credit losses by average finance receivables or average operating leases, excluding unearned interest supplements and allowance for credit losses.
  • f_10k_2017-02-09_80_267
    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_2017-02-09_1146_1922
    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_2017-02-09_1330_2125
    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_2017-02-09_1429_2194
    Other - Other
    We record a curtailment gain when the employees who are entitled to the benefits terminate their employment we record a curtailment loss when it becomes probable a loss will occur.
  • f_10k_2017-02-09_423_2589
    Revenue - Geography
    The full year pre-tax loss in South America was less severe than a year ago, reflecting higher net pricing and market share, partially offset by lower industry.
  • f_10k_2017-02-09_428_977
    Revenue - Geography
    Our total Europe market share in the region was up five-tenths of a percentage point to 7.7%, reflecting the strength of EcoSport and Mondeo and geographic mix.
  • f_10k_2017-02-09_1488_2255
    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_2017-02-09_1603_2315
    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_2017-02-09_388_911
    Revenue - Product
    Company revenue for full year 2015 was $149.6 billion, $5.5 billion higher than 2014.
  • f_10k_2017-02-09_407_940
    Financial - Earnings
    As shown above, our full year Automotive segment pre-tax profit improved by $3.3 billion.
  • f_10k_2017-02-09_681_1345
    Financial - Expense
    The weighted average discount rate used to determine the benefit obligation for worldwide OPEB plans at December 31, 2015 was 4.23%, compared with 4% at December 31, 2016, resulting in a worldwide loss of about $200 million which has been recognized within net periodic benefit cost and reported as a special item.
  • f_10k_2017-02-09_715_1422
    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_2017-02-09_404_934
    Revenue - Product
    Global industry volume, estimated at 88.2 million units, was up 0.1 million units from a year ago.
  • f_10k_2017-02-09_580_1236
    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_2017-02-09_654_1294
    Financial - Expense
    We believe this approach provides a more precise measurement of service and interest costs.
  • f_10k_2017-02-09_113_406
    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_2017-02-09_1688_2377
    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_2017-02-09_808_2752
    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_2017-02-09_404_935
    Financial - Shares / Equity
    Our global market share, at 7.4%, was up three-tenths of a percentage point with gains in South America and Europe.
  • f_10k_2017-02-09_329_816
    Financial - Shares / Equity
    Our market share for the region was 4.5%, up one-tenth of a percentage point.
  • f_10k_2017-02-09_335_822
    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_2017-02-09_793_1553
    Other - Other
    If interest rates or other factors change, Ford Credits actual prepayment experience could be different than projected.
  • f_10k_2017-02-09_482_1092
    Other - Other
    Ford Credits primary funding and liquidity objective is to maintain a strong investment grade balance sheet with 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_2017-02-09_1687_2374
    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_2017-02-09_211_598
    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_2017-02-09_241_696
    Revenue - Geography
    We achieved significant year-over-year growth in production in India in 2016, driven primarily by strong exports.
  • f_10k_2017-02-09_1813_3454
    Other - Other
    Net change in inventory allowances, including translation adjustments.
  • f_10k_2017-02-09_365_871
    Revenue - Geography
    Lease residual performance primarily reflects higher depreciation in North America as we expect lower auction values in the future.
  • f_10k_2017-02-09_230_664
    Other - Other
    The new Super Duty is off to a strong start, with high average transaction price and mix.
  • f_10k_2017-02-09_764_2741
    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_2017-02-09_217_625
    Other - Other
    Over the longer term, commodity prices are likely to trend higher given expectations for global demand growth.
  • f_10k_2017-02-09_1704_2398
    Other - Other
    We received approximately $58 million in proceeds from the exercise of stock options in 2016.
  • f_10k_2017-02-09_260_2530
    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_2017-02-09_216_620
    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_2017-02-09_1185_2026
    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_2017-02-09_1768_3420
    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_2017-02-09_473_1062
    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_2017-02-09_1428_2190
    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_2017-02-09_1296_3043
    Other - Other
    Contractual maturities of total finance receivables outstanding at
  • f_10k_2017-02-09_1383_3107
    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_2017-02-09_1794_3435
    Financial - Expense
    The estimate of our future warranty and field service action costs, net of supplier recoveries, for the years ended December 31 were as follows in millions:
  • f_10k_2017-02-09_19_43
    Other - Other
    We have approximately 48,000 active patents and pending patent applications globally, with an average age for patents in our active patent portfolio of just over five years.
  • f_10k_2017-02-09_460_1030
    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 dividend, and provide protection within an uncertain global economic environment.
  • f_10k_2017-02-09_101_352
    Revenue - Product
    Californias ZEV rules also mandate steep increases in the sale of electric vehicles and other advanced technology vehicles beginning in the 2018 model year.
  • f_10k_2017-02-09_220_632
    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_2017-02-09_1564_3254
    Financial - Debt
    Our public, unsecured debt securities outstanding at December 31 were as follows in millions:
  • f_10k_2017-02-09_428_976
    Revenue - Geography
    The Europe industry volume was 600,000 units higher compared to a year ago, more than explained by the improvement in the Europe 20 markets.
  • f_10k_2017-02-09_654_1293
    Financial - Expense
    With this refinement, we measure service and interest costs by applying the specific spot rates along that yield curve to the relevant projected cash flows for each component.
  • f_10k_2017-02-09_370_882
    Financial - Shares / Equity
    Ford Credits 2016 full year lease share was flat compared with 2015 and remains below the industry, reflecting the parameters of our leasing strategy which focuses on supporting sales, protecting residual values, and managing the trade cycle.
  • f_10k_2017-02-09_42_100
    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_2017-02-09_1704_2395
    Other - Other
    For the years ended December 31, 2015 and 2016, stock options outstanding were 45.4 million and 35.5 million, respectively, and stock options exercisable were 39.3 million and 33.4 million, respectively.
  • f_10k_2017-02-09_1299_2091
    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_2017-02-09_1140_1914
    Other - Other
    Trade receivables initially are recorded at the transaction amount and are typically outstanding for less than 30 days.
  • f_10k_2017-02-09_215_615
    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 39 million units per year during the period from 2017 to 2021.
  • f_10k_2017-02-09_796_1561
    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_2017-02-09_19_42
    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_2017-02-09_1142_2931
    Other - Other
    The net carrying amount of our intangible assets was $124 million and $198 million at December 31, 2015 and 2016, respectively, and are reported in Other assets in the non-current assets section of our consolidated balance sheet.
  • f_10k_2017-02-09_325_807
    Revenue - Geography
    For 2017, we expect Europe to remain profitable, although at levels below 2016 due mainly to a weaker sterling resulting from Brexit and higher costs associated with continued investment in the business, including the launch of Fiesta and Ecosport.
  • f_10k_2017-02-09_251_726
    Revenue - Product
    Company revenue for full year 2016 was $151.8 billion, $2.2 billion higher than a year ago.
  • f_10k_2017-02-09_1172_1988
    Financial - Expense
    For employees who are temporarily idled, we expense the benefits on an as-incurred basis.
  • f_10k_2017-02-09_100_342
    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_2017-02-09_204_580
    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_2017-02-09_515_1161
    Financial - Income
    The fixed income mix in our non-U.S. plans at year-end 2016 was 76%, two percentage points higher than year-end 2015.
  • f_10k_2017-02-09_194_542
    Other - Other
    The measure provides an ongoing effective rate which investors find useful for historical comparisons and for forecasting.
  • f_10k_2017-02-09_71_245
    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_2017-02-09_773_1503
    Other - Other
    Interest rate risk relates to the gain or loss we could incur in our Automotive segment investment portfolios due to a change in interest rates.
  • f_10k_2017-02-09_1493_2263
    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_2017-02-09_265_2533
    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_2017-02-09_63_199
    Revenue - Geography
    The introduction of WLTP in Europe is likely to require updates to CO2 labeling as early as 2018 and will increase certain consumer label values, thereby impacting taxes in countries with a CO2 tax scheme.
  • f_10k_2017-02-09_1427_2182
    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_2017-02-09_1488_2254
    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_2017-02-09_41_95
    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_2017-02-09_49_142
    Other - Other
    The EU accelerated efforts to finalize its RDE testing program as described above.
  • f_10k_2017-02-09_329_815
    Revenue - Product
    Lower industry volume was the primary driver in the 14% reduction in our wholesale volume.
  • f_10k_2017-02-09_335_821
    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_2017-02-09_691_1373
    Other - Other
    See Note 8 of the Notes to the Financial Statements for more information regarding allowance for credit losses.
  • f_10k_2017-02-09_704_2708
    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_2017-02-09_709_2709
    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_2017-02-09_1358_3085
    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_2017-02-09_1362_3087
    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_2017-02-09_1616_3294
    Other - Other
    Interest rate contracts, including swaps, that are used to manage the effects of interest rate fluctuations and
  • f_10k_2017-02-09_987_1863
    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_2017-02-09_258_737
    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_2017-02-09_1164_1974
    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_2017-02-09_1477_2228
    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_2017-02-09_112_403
    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_2017-02-09_771_1498
    Other - Other
    The net fair value of commodity forward contracts including adjustments for credit risk as of December 31, 2015 was a liability of $24 million compared with an asset of $5 million as of December 31, 2016.
  • f_10k_2017-02-09_744_1443
    Revenue - Product
    The FASB has issued the following updates to the Revenue from Contracts with Customers standard: Accounting Standard Update ASU 2015-14 Deferral of the Effective Date, ASU 2016-08 Principal versus Agent Considerations Reporting Revenue Gross versus Net, ASU 2016-10 Identifying Performance Obligations and Licensing, and ASU 2016-12 Narrow-Scope Improvements and Practical Expedients.
  • f_10k_2017-02-09_1478_2233
    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_2017-02-09_469_1052
    Financial - Cash Flow
    Automotive total cash flow of $3.9 billion in 2016 includes $2.8 billion in proceeds from our unsecured debt issuance in the United States.
  • f_10k_2017-02-09_793_1549
    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_2017-02-09_1315_3058
    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_2017-02-09_1346_2140
    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_2017-02-09_141_492
    Financial - Expense
    Annual payout and defense costs may become significant in the future.
  • f_10k_2017-02-09_210_592
    Financial - Expense
    We also have varying degrees of discretion when it comes to controlling the different elements within our structural costs.
  • f_10k_2017-02-09_71_246
    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_2017-02-09_702_2707
    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_2017-02-09_58_170
    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_2017-02-09_445_1001
    Revenue - Geography
    Asia Pacific delivered an outstanding year with a record pre-tax profit of $765 million, up 29% from a year ago.
  • f_10k_2017-02-09_1754_2417
    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_2017-02-09_95_323
    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_2017-02-09_798_1567
    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_2017-02-09_820_2763
    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_2017-02-09_508_1151
    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_2017-02-09_70_239
    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_2017-02-09_1002_1867
    Other - Other
    Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2016, based on criteria established in Internal Control - Integrated Framework 2013 issued by the Committee of Sponsoring Organizations of the Treadway Commission COSO.
  • f_10k_2017-02-09_1162_1961
    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_2017-02-09_287_757
    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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  • Form Type: Annual
  • Number of times amended: 0
  • Accession Number: 0000037996-17-000013
  • Submitted to the SEC: Thursday, February 9, 2017
  • Accepted by the SEC: Thursday, February 9, 2017
  • Period Ending: December 2016
Companies
 

F Morningstar

FORD MOTOR CO

$11.62 -0.05 (-0.43%)

Day's Range:
$11.55 to $11.77

52-Week Range:
$11.07 to $14.22

Volume:
43,772,442

Volume (Avg):
37,793,700

Earnings per Share:
$1.15

PEG / Short / PE Ratios:
2.44 / 2.38 / 10.10

Market Cap:
$46.18B

Book Value:
7.34

EBITDA:
$13.30B