FORD MOTOR CO (F) SEC Filing 10-K Annual report for the fiscal year ending Saturday, December 31, 2016
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_263Revenue - ProductIf 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_2694Other - OtherWe 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_983Revenue - GeographyThe 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_870Revenue - ProductFavorable 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_1295Financial - ExpenseThis 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_1284Financial - ExpenseThe 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_575Financial - ExpenseSpecifically, 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_301Other - OtherFurther, 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_298Revenue - GeographyThis 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_1014Revenue - ProductThe improvement is more than explained by favorable volume and mix, driven by growth in all products globally.
- f_10k_2017-02-09_79_261Revenue - ProductDecline 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_2620Revenue - ProductDecline 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_526Financial - Shares / EquityThe plan authorized repurchases of up to 10.7 million shares of Ford Common Stock.
- f_10k_2017-02-09_414_956Revenue - ProductFavorable volume and mix and higher net pricing drove North Americas pre-tax profit higher than a year ago.
- f_10k_2017-02-09_476_1074Financial - DebtThe 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_2292Financial - DebtThe 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_2239Financial - IncomeIn 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_2549Revenue - GeographyIncluded 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_2053Revenue - ProductWe 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_641Other - OtherOver 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_2597Financial - EarningsFord 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_8Financial - ExpenseThe 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_2534Financial - ExpenseContribution 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_723Financial - EarningsNet 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_2328Other - OtherIn 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_995Revenue - ProductThe 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_825Revenue - GeographyOur 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_2021Financial - ExpenseWhen 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_1543Financial - Cash FlowAs 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_1337Financial - IncomeThe 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_2593Revenue - ProductThe 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_1224Financial - EarningsThe 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_2566Revenue - GeographyAsia 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_683Revenue - ProductSales 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_2183Other - OtherThe 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_2215Financial - ExpenseThis 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_2586Financial - EarningsAutomotive operating margin was up 2.2 points or nearly 50%, and
- f_10k_2017-02-09_324_806Revenue - GeographyImproved results in Russia also contributed to Europes favorable year-over-year profit improvement.
- f_10k_2017-02-09_252_727Financial - ExpenseCost 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_271Financial - EarningsA 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_76Revenue - ProductThese programs increase Ford Credits financing volume and share.
- f_10k_2017-02-09_505_1145Other - OtherManaged 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_1877MA - OtherA 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_2558Revenue - GeographyEurope 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_1290Financial - Cash FlowOur 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_824Financial - Shares / EquityThe improvement in share was driven by new product introductions, including Taurus, Edge, Lincoln MKX, and Lincoln MKZ.
- f_10k_2017-02-09_407_942Financial - ExpenseCost 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_2767Other - OtherExecutive Separation Allowance Plan as amended and restated effective as of January 1, 2012**
- f_10k_2017-02-09_844_1627Other - OtherSupplemental Executive Retirement Plan, amended and restated effective as of January 1, 2013.
- f_10k_2017-02-09_846_1631Other - OtherDefined Contribution Supplemental Executive Retirement Plan, effective January 1, 2013.
- f_10k_2017-02-09_867_1673Other - OtherSelect Retirement Plan, amended and restated effective as of January 1, 2014.
- f_10k_2017-02-09_1168_1977Other - OtherThe 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_287Revenue - GeographyAs 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_1563Revenue - GeographyWhen 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_1002Revenue - ProductFavorable 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_2562Revenue - GeographyMiddle 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_3242Revenue - ProductAverage effective rates reflect the average contractual interest rate plus amortization of discounts, premiums, and issuance costs.
- f_10k_2017-02-09_1220_2071Financial - ExpenseIn 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_951Financial - Shares / EquityIn 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_827Financial - EarningsThe 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_1541Financial - Cash FlowTo 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_2697Other - OtherAssumptions 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_581Financial - EarningsAs 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_2446Other - OtherOur 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_1264Other - OtherChanges in estimates used in these and other items could have a material impact on our financial statements.
- f_10k_2017-02-09_113_411Revenue - ProductActual 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_809Revenue - GeographyWe also expect continued improvements from our business in Russia.
- f_10k_2017-02-09_407_941Revenue - GeographyThe 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_2607Financial - IncomeProgressively 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_2568Revenue - ProductVolume and mix were up reflecting higher industry volume in China and improved mix from new product launches.
- f_10k_2017-02-09_41_94Financial - ExpenseAs 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_2272Other - OtherThe Ford-Werke GmbH Ford-Werke defined benefit plan is primarily funded through a group insurance contract.
- f_10k_2017-02-09_212_600Financial - ExpenseOur 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_1868Other - OtherThe 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_322Other - OtherThese 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_964Revenue - ProductWholesale 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_286Financial - ExpenseIn 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_536Financial - ExpensePre-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_2343Financial - Cash FlowThe 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_2041Financial - EarningsWe 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_2596Revenue - GeographyOur 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_2214Financial - ExpenseService 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_1481Revenue - GeographyForeign 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_2585Revenue - ProductAutomotive revenue was up 4%, or 9% at constant exchange,
- f_10k_2017-02-09_297_775Revenue - GeographyOur 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_908Financial - EarningsNet 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_1578Other - OtherBased 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_852Other - OtherFor 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_1986Financial - ExpenseCosts 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_2748Financial - Cash FlowPre-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_259Other - OtherWe 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_2565Revenue - ProductWholesale volume increased by 10% while revenue from consolidated operations was up 12%.
- f_10k_2017-02-09_400_2584Revenue - ProductWholesale volume was up 5%,
- f_10k_2017-02-09_243_699Other - OtherIn 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_795Financial - ExpenseThis 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_609Other - OtherIn 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_1467Other - OtherWe 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_1482Revenue - ProductAccordingly, 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_3403Other - OtherThe amount of unrecognized tax benefits that would affect the effective tax rate if recognized were
- f_10k_2017-02-09_705_1406Other - OtherChanges in the assumptions used to derive frequency and severity would affect the allowance for credit losses.
- f_10k_2017-02-09_1285_3034Financial - ExpenseFinance 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_41Other - OtherOur 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_507Revenue - GeographyTwo 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_1947Financial - IncomeFor 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_1509Other - OtherAt 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_334Other - OtherIn 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_1113Other - OtherThe calendarization of the funding plan may result in quarterly fluctuations of the securitized funding percentage.
- f_10k_2017-02-09_1622_2346Financial - IncomeIf 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_834Revenue - GeographyFor 2017, we expect Asia Pacifics profit to improve due to favorable volume and mix.
- f_10k_2017-02-09_1174_1998Revenue - ProductThe 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_635Financial - ExpenseIn 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_377Revenue - GeographyAs 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_814Revenue - ProductIndustry volume for the region, at 3.6 million units, was down 700,000 units from 2015.
- f_10k_2017-02-09_419_966Revenue - GeographyThe South America industry volume, at 4.2 million units, was down 1.1 million units.
- f_10k_2017-02-09_432_984Financial - EarningsReturning to profitability in 2015 reflected the progress of our Transformation Plan announced in 2012.
- f_10k_2017-02-09_274_2540Financial - EarningsExchange 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_621Revenue - GeographyIn 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_373Other - OtherWe 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_649Financial - DebtThe 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_1873Other - OtherOur 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_835Revenue - GeographyThis 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_2716Other - OtherThe 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_2160Financial - Cash FlowA 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_1404Financial - Cash FlowA 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_1016Revenue - GeographyThe higher credit losses, primarily in North America, reflect reserve increases in 2015 compared with reserve releases in 2014.
- f_10k_2017-02-09_435_990Revenue - ProductWholesale volume and revenue declined compared to a year ago.
- f_10k_2017-02-09_292_767Revenue - GeographyMarket factors were favorable, driven by strong mix in all regions except South America.
- f_10k_2017-02-09_1448_2213Financial - Cash FlowWe 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_72Other - OtherSee 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_948Financial - EarningsWe 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_2699Other - OtherFor 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_2766Financial - Shares / EquityTax Benefit Preservation Plan TBPP dated September 11, 2009 between Ford Motor Company and Computershare Trust Company, N.A.
- f_10k_2017-02-09_191_533Other - OtherThese 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_1540Other - OtherFord 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_2633Financial - ExpenseIncreased safety, emissions, fuel economy, or other regulations resulting in higher costs, cash expenditures, and/or sales restrictions
- f_10k_2017-02-09_101_348Financial - ExpenseIncreased safety, emissions, fuel economy, or other regulations resulting in higher costs, cash expenditures, and/or sales restrictions.
- f_10k_2017-02-09_895_1729Other - OtherLong-Term Incentive Plan, as amended and restated effective as of January 1, 2003.
- f_10k_2017-02-09_515_1160Financial - IncomeAsset returns for our non-U.S. plans were 14%, reflecting fixed income gains and favorable exchange.
- f_10k_2017-02-09_897_1733Other - OtherAmendment to Ford Motor Company 1998 Long-Term Incentive Plan effective as of January 1, 2006.
- f_10k_2017-02-09_234_677Other - OtherOur 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_1034Financial - DebtOur 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_272Other - OtherContinued or increased price competition resulting from industry excess capacity, currency fluctuations, or other factors.
- f_10k_2017-02-09_552_2623Other - OtherContinued or increased price competition resulting from industry excess capacity, currency fluctuations, or other factors
- f_10k_2017-02-09_680_1343Financial - ExpenseThe sensitivity of pension expense to an increase in discount rates assumptions may not be linear.
- f_10k_2017-02-09_1493_2265Other - OtherLevel 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_1201Other - OtherAfter a strong 2016, we expect to deliver another good year in 2017.
- f_10k_2017-02-09_72_253Financial - ExpenseAchieving high NCAP ratings can add complexity and cost to vehicles.
- f_10k_2017-02-09_723_1437Revenue - ProductThe 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_407Other - OtherThe 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_912Financial - ExpenseCost 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_1782_2435Legal - OtherSome of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages in very large amounts, or demands for field service actions, environmental remediation programs, sanctions, loss of government incentives, assessments, or other relief, which, if granted, would require very large expenditures.
- f_10k_2017-02-09_191_531Other - OtherThe 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_2150Other - OtherEach 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_159Other - OtherThe 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_160Other - OtherManufacturers 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_2576Other - OtherThe 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_36Other - OtherThere 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_2351Financial - DebtThe 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_1495Other - OtherCommodity 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_921Financial - EarningsWe achieved a record Company full-year adjusted pre-tax profit of $10.8 billion in 2015.
- f_10k_2017-02-09_305_785Revenue - ProductOur incentives were up as a percent of revenue, but less than the industry average.
- f_10k_2017-02-09_1615_3293Other - OtherCommodity contracts, including forwards, that are used to manage commodity price risk
- f_10k_2017-02-09_1329_2120Revenue - ProductFor receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received.
- f_10k_2017-02-09_1799_3440Financial - ExpenseRevisions 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_1372Other - OtherBecause 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_2136Other - OtherBecause 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_2588Financial - Shares / EquityFords 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_189Other - OtherIn 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_1619Other - OtherBenefit Equalization Plan, as amended and restated as of January 1, 2012.
- f_10k_2017-02-09_395_923Revenue - GeographyIn Europe, we earned $259 million, reflecting the progress of our Transformation Plan announced in 2012.
- f_10k_2017-02-09_1428_2188Other - OtherThe 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_354Other - OtherIn 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_1909Revenue - ProductUpon 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_300Other - OtherThese 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_332Financial - Shares / EquityFor 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_419Financial - EarningsCompetition 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_1491Revenue - Geographypresented is hypothetical and assumes foreign exchange rate changes are instantaneous and adverse across all currencies.
- f_10k_2017-02-09_744_1444Revenue - ProductWe will adopt the new revenue guidance effective January 1, 2017.
- f_10k_2017-02-09_760_1470Other - OtherRegular audits are conducted to ensure that appropriate controls are in place and that they remain effective.
- f_10k_2017-02-09_69_231Other - OtherThe standards became effective on January 1, 2016 and will be fully phased in by the end of 2017.
- f_10k_2017-02-09_954_1843Other - OtherForm of James D. Farley, Jr. Agreement Amendment, effective as of October 12, 2008.
- f_10k_2017-02-09_1203_2037Other - OtherThe 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_2046Other - OtherThe new standard is effective as of January 1, 2019, and early adoption is permitted.
- f_10k_2017-02-09_1601_2312Other - OtherAs a result, effective March 31, 2015, we consolidated the joint venture for financial reporting purposes.
- f_10k_2017-02-09_1613_2332Other - OtherTo manage these risks, we enter into highly effective derivative contracts:
- f_10k_2017-02-09_1689_2383Financial - Shares / EquityThe 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_2283Revenue - ProductDiscounts, 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_1468Other - OtherDirect 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_877Financial - Shares / EquityOver the last several years, we have seen industry lease share grow.
- f_10k_2017-02-09_68_223Other - OtherAdditional tax reductions are available if further fuel efficiency improvements are achieved.
- f_10k_2017-02-09_286_755Revenue - ProductGlobal industry volume, estimated at 91.4 million units, was up 3.2 million units or 4%.
- f_10k_2017-02-09_1442_3154Other - OtherEffective interest rate on benefit obligation
- f_10k_2017-02-09_195_545Financial - EarningsThe 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_768Revenue - GeographyThis 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_343Other - OtherShould 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_1576Other - OtherUnder 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_387Other - OtherA 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_489Other - OtherThe 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_1603_2317Legal - OtherLiabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets rather, they represent claims against the specific assets of the consolidated VIEs.
- f_10k_2017-02-09_763_1477Revenue - GeographyOur 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_1689Other - OtherAmendment to the Ford Motor Company Annual Incentive Compensation Plan effective as of December 31, 2008.
- f_10k_2017-02-09_499_1129Other - OtherThis 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_66Revenue - ProductFord 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_2563Revenue - GeographyFor 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_832Financial - ExpenseUnfavorable 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_2087Revenue - ProductDealer 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_855Other - OtherResidual 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_1917Other - OtherWe capitalize and amortize our finite-lived intangible assets over their estimated useful lives.
- f_10k_2017-02-09_668_1323Other - OtherWe 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_1416Financial - Cash FlowThe 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_2167Financial - Cash FlowThe 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_367Financial - ExpenseCompliance 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_188Revenue - ProductWe 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_532Other - OtherWe 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_2360Revenue - GeographyForeign 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_3061Other - OtherGroup II fair to favorable financial metrics
- f_10k_2017-02-09_1488_2253Financial - IncomeFixed 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_1390Other - OtherEach 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_267Other - OtherOffering 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_1922Revenue - ProductEvents 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_2125Other - OtherIf 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_2194Other - OtherWe 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_2589Revenue - GeographyThe 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_977Revenue - GeographyOur 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_2255Other - OtherSecurities 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_2315Other - OtherWe 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_911Revenue - ProductCompany revenue for full year 2015 was $149.6 billion, $5.5 billion higher than 2014.
- f_10k_2017-02-09_407_940Financial - EarningsAs shown above, our full year Automotive segment pre-tax profit improved by $3.3 billion.
- f_10k_2017-02-09_681_1345Financial - ExpenseThe 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_1422MA - OtherIf 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_934Revenue - ProductGlobal industry volume, estimated at 88.2 million units, was up 0.1 million units from a year ago.
- f_10k_2017-02-09_580_1236Other - OtherAll 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_1294Financial - ExpenseWe believe this approach provides a more precise measurement of service and interest costs.
- f_10k_2017-02-09_113_406Financial - DebtCredit 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_2377Financial - ExpenseThe 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_2752Financial - Shares / EquityThe 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_935Financial - Shares / EquityOur 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_816Financial - Shares / EquityOur market share for the region was 4.5%, up one-tenth of a percentage point.
- f_10k_2017-02-09_335_822Other - OtherThe 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_1553Other - OtherIf interest rates or other factors change, Ford Credits actual prepayment experience could be different than projected.
- f_10k_2017-02-09_482_1092Other - OtherFord 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_2374Financial - Shares / EquityPerformance-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_598Financial - ExpenseFor 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_696Revenue - GeographyWe achieved significant year-over-year growth in production in India in 2016, driven primarily by strong exports.
- f_10k_2017-02-09_1813_3454Other - OtherNet change in inventory allowances, including translation adjustments.
- f_10k_2017-02-09_365_871Revenue - GeographyLease residual performance primarily reflects higher depreciation in North America as we expect lower auction values in the future.
- f_10k_2017-02-09_230_664Other - OtherThe new Super Duty is off to a strong start, with high average transaction price and mix.
- f_10k_2017-02-09_764_2741Revenue - GeographyForeign 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_625Other - OtherOver the longer term, commodity prices are likely to trend higher given expectations for global demand growth.
- f_10k_2017-02-09_1704_2398Other - OtherWe received approximately $58 million in proceeds from the exercise of stock options in 2016.
- f_10k_2017-02-09_260_2530Revenue - GeographyIn 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_1137_1904Legal - OtherWe remeasure monetary assets and liabilities denominated in a currency that is different than a reporting entitys functional currency from the transactional currency to the legal entitys functional currency.
- f_10k_2017-02-09_216_620Other - OtherOver 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_2026Financial - ExpenseEngineering, 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_3420Other - OtherCertain 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_1062Financial - Cash FlowAs 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_2190Financial - ExpenseActuarial 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_3043Other - OtherContractual maturities of total finance receivables outstanding at
- f_10k_2017-02-09_1383_3107Financial - Shares / EquityWe 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_3435Financial - ExpenseThe 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_43Other - OtherWe 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_1030Financial - DebtBased 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_352Revenue - ProductCalifornias 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_632Financial - EarningsIn 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_3254Financial - DebtOur public, unsecured debt securities outstanding at December 31 were as follows in millions:
- f_10k_2017-02-09_428_976Revenue - GeographyThe 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_1293Financial - ExpenseWith 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_882Financial - Shares / EquityFord 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_107_379Legal - OtherA decrease in, expiration without renewal of, or other cessation or clawback of government incentives for any of our business units, as a result of administrative decision or otherwise, could have a substantial adverse impact on our financial condition and results of operations.
- f_10k_2017-02-09_42_100Revenue - ProductBy 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_2395Other - OtherFor 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_2091Revenue - ProductFor 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_1914Other - OtherTrade receivables initially are recorded at the transaction amount and are typically outstanding for less than 30 days.
- f_10k_2017-02-09_215_615Other - OtherAccording 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_1561Financial - DebtFord 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_42Other - OtherWe 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_2931Other - OtherThe 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_807Revenue - GeographyFor 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_726Revenue - ProductCompany revenue for full year 2016 was $151.8 billion, $2.2 billion higher than a year ago.
- f_10k_2017-02-09_1172_1988Financial - ExpenseFor employees who are temporarily idled, we expense the benefits on an as-incurred basis.
- f_10k_2017-02-09_100_342Other - OtherNHTSAs 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_580Revenue - ProductAs 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_1161Financial - IncomeThe 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_542Other - OtherThe measure provides an ongoing effective rate which investors find useful for historical comparisons and for forecasting.
- f_10k_2017-02-09_71_245Revenue - GeographyAny 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_1503Other - OtherInterest 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_2263Revenue - ProductExchange-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_2533Financial - EarningsNet 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_199Revenue - GeographyThe 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_2182Other - OtherDefined 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_2254Other - OtherPricing 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_95Other - OtherCompliance 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_142Other - OtherThe EU accelerated efforts to finalize its RDE testing program as described above.
- f_10k_2017-02-09_329_815Revenue - ProductLower industry volume was the primary driver in the 14% reduction in our wholesale volume.
- f_10k_2017-02-09_335_821Revenue - GeographyAsia 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_1373Other - OtherSee Note 8 of the Notes to the Financial Statements for more information regarding allowance for credit losses.
- f_10k_2017-02-09_704_2708Other - OtherAfter 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_2709Other - OtherAfter 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_3085Other - OtherAfter 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_3087Other - OtherAfter 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_3294Other - OtherInterest rate contracts, including swaps, that are used to manage the effects of interest rate fluctuations and
- f_10k_2017-02-09_987_1863Financial - DebtInstruments 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_737Financial - EarningsOur 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_1974Financial - ExpenseWe 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_2228Other - OtherStrategies 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_403Financial - EarningsA 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_1498Other - OtherThe 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_1443Revenue - ProductThe 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_2233Other - OtherAlternative 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_1052Financial - Cash FlowAutomotive 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_1549Other - OtherWhile 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_3058Financial - ExpenseSubstandard 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_2140Financial - ExpenseIn 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_492Financial - ExpenseAnnual payout and defense costs may become significant in the future.
- f_10k_2017-02-09_210_592Financial - ExpenseWe also have varying degrees of discretion when it comes to controlling the different elements within our structural costs.
- f_10k_2017-02-09_71_246Revenue - GeographyNew 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_2707Financial - ExpenseFor 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_170Other - OtherWith 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_1001Revenue - GeographyAsia 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_2417Financial - IncomeBasic 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_323Financial - Cash FlowIf 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_1567Other - OtherThe 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_2763Other - OtherThe 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_1151Other - OtherOur 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_239Financial - ExpenseShould 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_1867Other - OtherAlso 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_1961Financial - Cash FlowThese 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_757Financial - Shares / EquityGlobal 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
FORD MOTOR CO
$11.62 -0.05 (-0.43%)
$11.55 to $11.77
$11.07 to $14.22
Earnings per Share:
PEG / Short / PE Ratios:
2.44 / 2.38 / 10.10
$11.55 to $11.77
$11.07 to $14.22
Earnings per Share:
PEG / Short / PE Ratios:
2.44 / 2.38 / 10.10