1000 - CONSOLIDATED STATEMENT O
1000 - CONSOLIDATED STATEMENT OF OPERATIONS (USD $) | ||||
In Millions, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Sales and revenues | ||||
Automotive sales | $23,989 | $37,057 | $45,357 | $76,174 |
Financial Services revenues | 3,200 | 4,045 | 6,610 | 8,220 |
Total sales and revenues | 27,189 | 41,102 | 51,967 | 84,394 |
Costs and expenses | ||||
Automotive cost of sales | 23,446 | 39,994 | 45,108 | 75,450 |
Selling, administrative and other expenses | 3,165 | 7,305 | 6,892 | 12,399 |
Interest expense | 1,686 | 2,442 | 3,622 | 5,017 |
Financial Services provision for credit and insurance losses | 419 | 598 | 821 | 942 |
Total costs and expenses | 28,716 | 50,339 | 56,443 | 93,808 |
Automotive interest income and other non-operating income/(expense), net (Note 9) | 3,652 | (192) | 4,995 | (100) |
Financial Services other income/(loss), net (Note 9) | 187 | 406 | 300 | 635 |
Equity in net income/(loss) of affiliated companies | 59 | (36) | (68) | 106 |
Income/(Loss) before income taxes | 2,371 | (9,059) | 751 | (8,773) |
Provision for/(benefit from) income taxes | 25 | (443) | (179) | (348) |
Income/(Loss) from continuing operations | 2,346 | (8,616) | 930 | (8,425) |
Income/(Loss) from discontinued operations (Note 12) | 5 | 8 | 5 | 9 |
Net income/(loss) | 2,351 | (8,608) | 935 | (8,416) |
Less: Income/(loss) attributable to noncontrolling interests | 90 | 89 | 101 | 211 |
Net income/(loss) attributable to Ford Motor Company | 2,261 | (8,697) | 834 | (8,627) |
NET INCOME/(LOSS) ATTRIBUTABLE TO FORD MOTOR COMPANY | ||||
Income/(Loss) from continuing operations | 2,256 | (8,705) | 829 | (8,636) |
Income/(Loss) from discontinued operations (Note 12) | 5 | 8 | 5 | 9 |
Net income/(loss) | $2,261 | ($8,697) | $834 | ($8,627) |
Basic income/(loss) | ||||
Income/(Loss) from continuing operations | 0.75 | -3.89 | 0.31 | -3.9 |
Income/(Loss) from discontinued operations | $0 | $0 | $0 | $0 |
Net income/(loss) | 0.75 | -3.89 | 0.31 | -3.9 |
Diluted income/(loss) | ||||
Income/(Loss) from continuing operations | 0.69 | -3.89 | 0.3 | -3.9 |
Income/(Loss) from discontinued operations | $0 | $0 | $0 | $0 |
Net income/(loss) | 0.69 | -3.89 | 0.3 | -3.9 |
1500 - SECTOR STATEMENT OF OPER
1500 - SECTOR STATEMENT OF OPERATIONS (USD $) | ||||
In Millions, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
AUTOMOTIVE | ||||
Sales | $23,989 | $37,057 | $45,357 | $76,174 |
Costs and expenses | ||||
Cost of sales | 23,446 | 39,994 | 45,108 | 75,450 |
Selling, administrative and other expenses | 2,111 | 2,955 | 4,155 | 6,064 |
Total costs and expenses | 25,557 | 42,949 | 49,263 | 81,514 |
Operating income/(loss) | (1,568) | (5,892) | (3,906) | (5,340) |
Interest expense | 366 | 515 | 850 | 1,073 |
Interest income and other non-operating income/(expense), net (Note 9) | 3,652 | (192) | 4,995 | (100) |
Equity in net income/(loss) of affiliated companies | 58 | (40) | 69 | 96 |
Income/(Loss) before income taxes - Automotive | 1,776 | (6,639) | 308 | (6,417) |
FINANCIAL SERVICES | ||||
Revenues | 3,200 | 4,045 | 6,610 | 8,220 |
Costs and expenses | ||||
Interest expense | 1,320 | 1,927 | 2,772 | 3,944 |
Depreciation | 964 | 4,112 | 2,399 | 5,948 |
Operating and other expenses | 90 | 238 | 338 | 387 |
Provision for credit and insurance losses | 419 | 598 | 821 | 942 |
Total costs and expenses | 2,793 | 6,875 | 6,330 | 11,221 |
Other income/(loss), net (Note 9) | 187 | 406 | 300 | 635 |
Equity in net income/(loss) of affiliated companies | 1 | 4 | (137) | 10 |
Income/(Loss) before income taxes - Financial Services | 595 | (2,420) | 443 | (2,356) |
TOTAL COMPANY | ||||
Income/(Loss) before income taxes | 2,371 | (9,059) | 751 | (8,773) |
Provision for/(benefit from) income taxes | 25 | (443) | (179) | (348) |
Income/(Loss) from continuing operations | 2,346 | (8,616) | 930 | (8,425) |
Income/(Loss) from discontinued operations (Note 12) | 5 | 8 | 5 | 9 |
Net income/(loss) | 2,351 | (8,608) | 935 | (8,416) |
Less: Income/(loss) attributable to noncontrolling interests | 90 | 89 | 101 | 211 |
Net income/(loss) attributable to Ford Motor Company | 2,261 | (8,697) | 834 | (8,627) |
NET INCOME/(LOSS) ATTRIBUTABLE TO FORD MOTOR COMPANY | ||||
Income/(Loss) from continuing operations | 2,256 | (8,705) | 829 | (8,636) |
Income/(Loss) from discontinued operations (Note 12) | 5 | 8 | 5 | 9 |
Net income/(loss) | $2,261 | ($8,697) | $834 | ($8,627) |
Basic income/(loss) | ||||
Income/(Loss) from continuing operations | 0.75 | -3.89 | 0.31 | -3.9 |
Income/(Loss) from discontinued operations | $0 | $0 | $0 | $0 |
Net income/(loss) | 0.75 | -3.89 | 0.31 | -3.9 |
Diluted income/(loss) | ||||
Income/(Loss) from continuing operations | 0.69 | -3.89 | 0.3 | -3.9 |
Income/(Loss) from discontinued operations | $0 | $0 | $0 | $0 |
Net income/(loss) | 0.69 | -3.89 | 0.3 | -3.9 |
2000 - CONSOLIDATED BALANCE SHE
2000 - CONSOLIDATED BALANCE SHEET (USD $) | ||
In Millions | Jun. 30, 2009
| Dec. 31, 2008
|
ASSETS | ||
Cash and cash equivalents | $24,011 | $22,049 |
Marketable securities | 17,123 | 17,411 |
Finance receivables, net (Note 2) | 80,296 | 93,484 |
Other receivables, net | 6,643 | 5,674 |
Net investment in operating leases | 20,808 | 25,250 |
Inventories (Note 3) | 6,603 | 6,988 |
Equity in net assets of affiliated companies | 1,742 | 1,599 |
Net property | 24,801 | 24,143 |
Deferred income taxes | 3,015 | 3,108 |
Goodwill and other net intangible assets (Note 5) | 235 | 246 |
Assets of held-for-sale operations (Note 12) | 7,530 | 8,612 |
Other assets | 7,383 | 9,734 |
Total assets | 200,190 | 218,298 |
LIABILITIES | ||
Payables | 13,971 | 13,145 |
Accrued liabilities and deferred revenue | 55,798 | 59,526 |
Debt (Note 7) | 133,066 | 152,577 |
Deferred income taxes | 1,788 | 2,035 |
Liabilities of held-for-sale operations (Note 12) | 4,985 | 5,542 |
Total liabilities | 209,608 | 232,825 |
EQUITY | ||
Capital in excess of par value of stock | 13,929 | 10,875 |
Accumulated other comprehensive income/(loss) | (9,005) | (10,085) |
Treasury stock | (179) | (181) |
Retained earnings/(Accumulated deficit) | (15,521) | (16,355) |
Total equity/(deficit) attributable to Ford Motor Company | (10,743) | (15,722) |
Equity/(Deficit) attributable to noncontrolling interests | 1,325 | 1,195 |
Total equity/(deficit) | (9,418) | (14,527) |
Total liabilities and equity | 200,190 | 218,298 |
Common Stock (3,165 million shares issued) | ||
EQUITY | ||
Common Stock, par value $0.01 per share | 32 | 23 |
Class B Stock (71 million shares issued) | ||
EQUITY | ||
Common Stock, par value $0.01 per share | $1 | $1 |
2010 - Parenthetical Data to th
2010 - Parenthetical Data to the Consolidated Balance Sheet (USD $) | |
Jun. 30, 2009
| |
Common Stock (3,165 million shares issued) | |
EQUITY | |
Common Stock, par value (in dollars per share) | 0.01 |
Common Stock, shares issued (in shares) | 3,165 |
Class B Stock (71 million shares issued) | |
EQUITY | |
Common Stock, par value (in dollars per share) | 0.01 |
Common Stock, shares issued (in shares) | 71 |
2500 - SECTOR BALANCE SHEET
2500 - SECTOR BALANCE SHEET (USD $) | ||
In Millions | Jun. 30, 2009
| Dec. 31, 2008
|
Automotive | ||
Cash and cash equivalents | $11,857 | $6,377 |
Marketable securities | 9,703 | 9,296 |
Total cash and marketable securities | 21,560 | 15,673 |
Receivables, net | 3,825 | 3,065 |
Inventories (Note 3) | 6,603 | 6,988 |
Deferred income taxes | 439 | 302 |
Other current assets | 2,843 | 3,450 |
Current receivable from Financial Services | 2,130 | 2,035 |
Total current assets | 37,400 | 31,513 |
Equity in net assets of affiliated companies | 1,380 | 1,076 |
Net property | 24,603 | 23,930 |
Deferred income taxes | 6,441 | 7,204 |
Goodwill and other net intangible assets (Note 5) | 226 | 237 |
Assets of held-for-sale operations (Note 12) | 7,530 | 8,414 |
Other assets | 1,672 | 1,441 |
Total Automotive assets | 79,252 | 73,815 |
Financial Services | ||
Cash and cash equivalents | 12,154 | 15,672 |
Marketable securities | 7,777 | 8,607 |
Finance receivables, net (Note 2) | 83,118 | 96,101 |
Net investment in operating leases | 18,722 | 23,120 |
Equity in net assets of affiliated companies | 362 | 523 |
Goodwill and other net intangible assets (Note 5) | 9 | 9 |
Assets of held-for-sale operations (Note 12) | 0 | 198 |
Other assets | 5,425 | 7,437 |
Total Financial Services assets | 127,567 | 151,667 |
Intersector elimination | (2,491) | (2,535) |
Total assets | 204,328 | 222,947 |
Automotive | ||
Trade payables | 10,615 | 9,193 |
Other payables | 2,013 | 1,982 |
Accrued liabilities and deferred revenue | 28,146 | 29,584 |
Deferred income taxes | 2,797 | 2,790 |
Debt payable within one year (Note 7) | 1,792 | 1,191 |
Total current liabilities | 45,363 | 44,740 |
Long-term debt (Note 7) | 24,307 | 23,036 |
Other liabilities | 22,424 | 23,766 |
Deferred income taxes | 521 | 614 |
Liabilities of held-for-sale operations (Note 12) | 4,985 | 5,487 |
Total Automotive liabilities | 97,600 | 97,643 |
Financial Services | ||
Payables | 1,343 | 1,970 |
Debt (Note 7) | 107,324 | 128,842 |
Deferred income taxes | 2,608 | 3,280 |
Other liabilities and deferred income | 5,232 | 6,184 |
Liabilities of held-for-sale operations (Note 12) | 0 | 55 |
Payable to Automotive | 2,130 | 2,035 |
Total Financial Services liabilities | 118,637 | 142,366 |
Intersector elimination | (2,491) | (2,535) |
Total liabilities | 213,746 | 237,474 |
EQUITY | ||
Capital in excess of par value of stock | 13,929 | 10,875 |
Accumulated other comprehensive income/(loss) | (9,005) | (10,085) |
Treasury stock | (179) | (181) |
Retained earnings/(Accumulated deficit) | (15,521) | (16,355) |
Total equity/(deficit) attributable to Ford Motor Company | (10,743) | (15,722) |
Equity/(Deficit) attributable to noncontrolling interests | 1,325 | 1,195 |
Total equity/(deficit) | (9,418) | (14,527) |
Total liabilities and equity | 204,328 | 222,947 |
Common Stock (3,165 million shares issued) | ||
EQUITY | ||
Common Stock, par value $0.01 per share | 32 | 23 |
Class B Stock (71 million shares issued) | ||
EQUITY | ||
Common Stock, par value $0.01 per share | $1 | $1 |
2510 - Parenthetical Data to th
2510 - Parenthetical Data to the Sector Balance Sheet (USD $) | |
Jun. 30, 2009
| |
Common Stock (3,165 million shares issued) | |
EQUITY | |
Common Stock, par value (in dollars per share) | 0.01 |
Common Stock, shares issued (in shares) | 3,165 |
Class B Stock (71 million shares issued) | |
EQUITY | |
Common Stock, par value (in dollars per share) | 0.01 |
Common Stock, shares issued (in shares) | 71 |
3000 - CONDENSED CONSOLIDATED S
3000 - CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | ||
In Millions | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Cash flows from operating activities of continuing operations | ||
Net cash (used in)/provided by operating activities | $9,779 | $2,161 |
Cash flows from investing activities of continuing operations | ||
Capital expenditures | (2,388) | (3,128) |
Acquisitions of retail and other finance receivables and operating leases | (13,322) | (25,483) |
Collections of retail and other finance receivables and operating leases | 20,184 | 22,150 |
Purchases of securities | (37,366) | (33,015) |
Sales and maturities of securities | 38,065 | 28,390 |
Settlements of derivatives | 1,019 | 1,630 |
Proceeds from sale of businesses | 171 | 6,150 |
Cash paid for acquisitions | 0 | (13) |
Transfer of cash balances upon disposition of discontinued/held-for-sale operations | 0 | (925) |
Other | (661) | 239 |
Net cash (used in)/provided by investing activities | 5,702 | (4,005) |
Cash flows from financing activities of continuing operations | ||
Sales of Common Stock | 1,651 | 144 |
Changes in short-term debt | (5,652) | (1,049) |
Proceeds from issuance of other debt | 25,282 | 20,726 |
Principal payments on other debt | (33,951) | (23,396) |
Other | (521) | (267) |
Net cash (used in)/provided by financing activities | (13,191) | (3,842) |
Effect of exchange rate changes on cash | 302 | 469 |
Cumulative correction of Financial Services prior period error (Note 1) | (630) | 0 |
Net increase/(decrease) in cash and cash equivalents from continuing operations | 1,962 | (5,217) |
Cash flows from discontinued operations | ||
Cash flows from operating activities of discontinued operations | 0 | 0 |
Cash flows from investing activities of discontinued operations | 0 | 0 |
Cash flows from financing activities of discontinued operations | 0 | 0 |
Net increase/(decrease) in cash and cash equivalents | 1,962 | (5,217) |
Cash and cash equivalents at January 1 | 22,049 | 35,283 |
Cash and cash equivalents of discontinued/held-for-sale operations at January 1 | 0 | 0 |
Net increase/(decrease) in cash and cash equivalents | 1,962 | (5,217) |
Less: cash and cash equivalents of discontinued/held-for-sale operations at June 30 | 0 | 0 |
Cash and cash equivalents at June 30 | $24,011 | $30,066 |
3500 - CONDENSED SECTOR STATEME
3500 - CONDENSED SECTOR STATEMENT OF CASH FLOWS (USD $) | ||||
In Millions | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 | Jan. 01, 2009
| Jan. 01, 2008
|
Automotive [Member] | ||||
Cash flows from operating activities of continuing operations | ||||
Net cash (used in)/provided by operating activities | ($2,170) | ($1,560) | ||
Cash flows from investing activities of continuing operations | ||||
Capital expenditures | (2,379) | (3,077) | ||
Acquisitions of retail and other finance receivables and operating leases | 0 | 0 | ||
Collections of retail and other finance receivables and operating leases | 0 | 0 | ||
Net (increase)/decrease in wholesale receivables | 0 | 0 | ||
Purchases of securities | (26,133) | (23,683) | ||
Sales and maturities of securities | 26,067 | 23,349 | ||
Settlements of derivatives | 71 | 887 | ||
Proceeds from sale of businesses | 3 | 2,451 | ||
Cash paid for acquisitions | 0 | (13) | ||
Transfer of cash balances upon disposition of discontinued/held-for-sale operations | 0 | (925) | ||
Investing activity from Financial Services | 15 | 0 | ||
Investing activity to Financial Services | 0 | 0 | ||
Other | (673) | 27 | ||
Net cash (used in)/provided by investing activities | (3,029) | (984) | ||
Cash flows from financing activities of continuing operations | ||||
Sales of Common Stock | 1,651 | 144 | ||
Changes in short-term debt | 330 | 0 | ||
Proceeds from issuance of other debt | 10,401 | 78 | ||
Principal payments on other debt | (728) | (266) | ||
Financing activity to Automotive | 0 | 0 | ||
Other | (209) | (176) | ||
Net cash (used in)/provided by financing activities | 11,445 | (220) | ||
Effect of exchange rate changes on cash | 90 | 270 | ||
Net change in intersector receivables/payables and other liabilities | (856) | (1,236) | ||
Cumulative correction of prior period error (Note 1) | 0 | 0 | ||
Net increase/(decrease) in cash and cash equivalents from continuing operations | 5,480 | (3,730) | ||
Cash flows from discontinued operations | ||||
Cash flows from operating activities of discontinued operations | 0 | 0 | ||
Cash flows from investing activities of discontinued operation | 0 | 0 | ||
Cash flows from financing activities of discontinued operations | 0 | 0 | ||
Net increase/(decrease) in cash and cash equivalents | 5,480 | (3,730) | ||
Cash and cash equivalents at January 1 | 6,377 | 20,678 | ||
Cash and cash equivalents of discontinued/held-for-sale operations at January 1 | 0 | 0 | ||
Net increase/(decrease) in cash and cash equivalents | 5,480 | (3,730) | ||
Less: cash and cash equivalents of discontinued/held-for-sale operations at June 30 | 0 | 0 | 0 | 0 |
Cash and cash equivalents at June 30 | 11,857 | 16,948 | 6,377 | 20,678 |
Financial Services [Member] | ||||
Cash flows from operating activities of continuing operations | ||||
Net cash (used in)/provided by operating activities | 2,639 | 5,151 | ||
Cash flows from investing activities of continuing operations | ||||
Capital expenditures | (9) | (51) | ||
Acquisitions of retail and other finance receivables and operating leases | (13,373) | (25,483) | ||
Collections of retail and other finance receivables and operating leases | 20,184 | 22,188 | ||
Net (increase)/decrease in wholesale receivables | 8,234 | (1,468) | ||
Purchases of securities | (12,288) | (9,332) | ||
Sales and maturities of securities | 12,133 | 5,041 | ||
Settlements of derivatives | 948 | 743 | ||
Proceeds from sale of businesses | 168 | 3,699 | ||
Cash paid for acquisitions | 0 | 0 | ||
Transfer of cash balances upon disposition of discontinued/held-for-sale operations | 0 | 0 | ||
Investing activity from Financial Services | 0 | 0 | ||
Investing activity to Financial Services | 0 | 0 | ||
Other | 12 | 212 | ||
Net cash (used in)/provided by investing activities | 16,009 | (4,451) | ||
Cash flows from financing activities of continuing operations | ||||
Sales of Common Stock | 0 | 0 | ||
Changes in short-term debt | (5,982) | (1,049) | ||
Proceeds from issuance of other debt | 14,881 | 20,648 | ||
Principal payments on other debt | (31,176) | (23,130) | ||
Financing activity to Automotive | (15) | 0 | ||
Other | (312) | (91) | ||
Net cash (used in)/provided by financing activities | (22,604) | (3,622) | ||
Effect of exchange rate changes on cash | 212 | 199 | ||
Net change in intersector receivables/payables and other liabilities | 856 | 1,236 | ||
Cumulative correction of prior period error (Note 1) | (630) | 0 | ||
Net increase/(decrease) in cash and cash equivalents from continuing operations | (3,518) | (1,487) | ||
Cash flows from discontinued operations | ||||
Cash flows from operating activities of discontinued operations | 0 | 0 | ||
Cash flows from investing activities of discontinued operation | 0 | 0 | ||
Cash flows from financing activities of discontinued operations | 0 | 0 | ||
Net increase/(decrease) in cash and cash equivalents | (3,518) | (1,487) | ||
Cash and cash equivalents at January 1 | 15,672 | 14,605 | ||
Cash and cash equivalents of discontinued/held-for-sale operations at January 1 | 0 | 0 | ||
Net increase/(decrease) in cash and cash equivalents | (3,518) | (1,487) | ||
Less: cash and cash equivalents of discontinued/held-for-sale operations at June 30 | 0 | 0 | 0 | 0 |
Cash and cash equivalents at June 30 | $12,154 | $13,118 | $15,672 | $14,605 |
4000 - CONSOLIDATED STATEMENT O
4000 - CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | ||||
In Millions | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Net income/(loss) | $2,351 | ($8,608) | $935 | ($8,416) |
Other comprehensive income/(loss), net of tax | ||||
Foreign currency translation | 2,211 | (1,425) | 1,696 | (554) |
Net gain/(loss) on derivative instruments | (36) | (252) | (123) | (27) |
Employee benefit-related | (451) | 1,184 | (456) | 1,280 |
Net holding gain/(loss) | (2) | (6) | (3) | (33) |
Total other comprehensive income/(loss), net of tax | 1,722 | (499) | 1,114 | 666 |
Comprehensive income/(loss) | 4,073 | (9,107) | 2,049 | (7,750) |
Less: Comprehensive income/(loss) attributable to noncontrolling interests (Note 19) | 193 | 116 | 135 | 188 |
Comprehensive income/(loss) attributable to Ford Motor Company | $3,880 | ($9,223) | $1,914 | ($7,938) |
6000 - PRINCIPLES OF PRESENTATI
6000 - PRINCIPLES OF PRESENTATION AND CONSOLIDATION | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Principles of Presentation and Consolidation | |
Principles of Presentation and Consolidation | NOTE 1. PRINCIPLES OF PRESENTATION AND CONSOLIDATION Our financial statements are presented in accordance with generally accepted accounting principles ("GAAP") in the United States for interim financial information, and instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. We show certain of our financial statements on both a consolidated and a sector basis forour Automotive and Financial Services sectors. All intercompany items and transactions have been eliminated in both the consolidated and sector basis financial statements. Reconciliations of certain line items are explained below in this Note, where the presentation of these intercompany eliminations or consolidated adjustments differs between the consolidated and sector financial statements. In the opinion of management, these unaudited financial statements reflect a fair statement of the results of operations and financial condition of Ford Motor Company and its consolidated subsidiaries and consolidated variable interest entities ("VIEs") of which we are the primary beneficiary for the periods and at the dates presented. Theoperating results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2008 ("2008 Form 10-K Report"). For purposes of this report, "Ford," the "Company," "we," "our," "us" or similar references mean Ford Motor Company and our consolidated subsidiaries and our consolidated VIEs of which we are the primarybeneficiary, unless the context requires otherwise. All held-for-sale assets and liabilities are excluded from the footnotes unless otherwise noted. See Note 12 for details of held-for-sale operations. In the first quarter of 2009, our wholly-owned subsidiary Ford Motor Credit Company LLC ("Ford Credit") recorded a $630 million cumulative adjustment to correct for the overstatement of Financial Services sector cash and cash equivalents and certain accounts payable that originated in prior periods. The impact on previously-issued annualand interim financial statements was not material. Subsequent Events. We evaluated the effects of all subsequent events from the end of the second quarter through August 5, 2009, the date we filed our financial statements with the U.S. Securities and Exchange Commission ("SEC"). Noncontrolling Interests. We adopted Statement of Financial Accounting Standards ("SFAS") No. 160, Noncontrolling Interests in Consolidated Financial Statements ? an amendment of ARB No. 51 ("SFAS No. 160") on January 1, 2009.This standard establishes accounting and reporting requirements for the noncontrolling interest (formerly "minority interest") in a subsidiary and for the deconsolidation of a subsidiary. SFAS No. 160 clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. The presentation and disclosure requirements of this standard must be applied retrospectively for all perio |
6010 - FINANCE RECEIVABLES FINA
6010 - FINANCE RECEIVABLES FINANCIAL SERVICES SECTOR | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Finance Receivables - Financial Services Sector | |
Finance Receivables - Financial Services Sector | NOTE 2.FINANCE RECEIVABLES FINANCIAL SERVICES SECTOR Net finance receivables at June30,2009 and December31,2008 were as follows (in millions): June 30, 2009 December 31, 2008 Retail (including direct financing leases) $ 62,976 $ 67,316 Wholesale 19,535 27,483 Other finance receivables 3,858 4,057 Total finance receivables 86,369 98,856 Unearned interest supplements (1,687 ) (1,343 ) Allowance for credit losses (1,585 ) (1,417 ) Other 21 5 Net finance receivables sector balance sheet $ 83,118 $ 96,101 Net finance receivables subject to fair value $ 77,850 $ 91,584 Fair Value $ 76,477 $ 84,615 Net finance receivables sector balance sheet $ 83,118 $ 96,101 Reclassification of receivables purchased from Automotive sector and Other Financial Services to Other receivables, net (2,822 ) (2,617 ) Net finance receivables consolidated balance sheet $ 80,296 $ 93,484 The fair value of finance receivables is generally calculated by discounting future cash flows using an estimated discount rate that reflects the current credit, interest rate and prepayment risks associated with similar types of instruments. |
6020 - INVENTORIES
6020 - INVENTORIES | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Inventories | |
Inventories | NOTE 3.INVENTORIES Inventories are summarized as follows (in millions): June 30, December 31, 2009 2008 Raw materials, work-in-process and supplies $ 2,978 $ 2,747 Finished products 4,469 5,091 Total inventories under first-in, first-out method ("FIFO") 7,447 7,838 Less: Last-in, first-out method ("LIFO") adjustment (844 ) (850 ) Total inventories $ 6,603 $ 6,988 Inventories are stated at lower of cost or market.About one-fourth of inventories were determined under the LIFO method. |
6030 - VARIABLE INTEREST ENTITI
6030 - VARIABLE INTEREST ENTITIES | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Variable Interest Entities | |
Variable Interest Entities | NOTE 4.VARIABLE INTEREST ENTITIES We consolidate VIEs of which we are the primary beneficiary.The liabilities recognized as a result of consolidating these VIEs do not necessarily represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIEs.Conversely, assets recognized as a result of consolidating these VIEs do not necessarily represent additional assets that could be used to satisfy claims against our general assets. Automotive Sector VIEs of which we are the primary beneficiary: Activities with the joint ventures described below include purchasing substantially all of the joint ventures' output under a cost-plus-margin arrangement and/or volume dependent pricing.These contractual arrangements may require us to absorb joint venture losses when production volume targets are not met or allow us, in some cases, to receive bonuses when production volume targets are exceeded.Described below are the significant VIEs that we consolidated as of June30,2009. AutoAlliance International, Inc. ("AAI") is a 50/50 joint venture with Mazda Motor Corporation ("Mazda") in North America.AAI is engaged in the manufacture of automobiles on behalf of Ford and Mazda, primarily for sale in North America. Ford Otomotiv Sanayi Anonim Sirketi ("Ford Otosan") is a 41/41/18 joint venture in Turkey with the Koc Group of Turkey and public investors.Ford Otosan is the single-source supplier of the Ford Transit Connect model, and an assembly supplier of the Ford Transit van model, both of which we sell primarily in Europe. Getrag Ford Transmissions GmbH ("GFT") is a 50/50 joint venture with Getrag Deutsche Venture GmbH and Co. KG.GFT is the primary supplier of manual transmissions for use in our European vehicles. Getrag All Wheel Drive AB is a 40/60 joint venture between Volvo Cars and Getrag Dana Holding GmbH.The joint venture produces all-wheel-drive components.The assets and liabilities associated with this joint venture that were classified during the first quarter of 2009 as held for sale are shown in the table below and are included in the assets and liabilities of Volvo classified as held-for-sale operations in Note 12. Tekfor Cologne GmbH ("Tekfor") is a 50/50 joint venture with Neumayer Tekfor GmbH.Tekfor produces transmission and chassis components for use in our vehicles. Pininfarina Sverige, AB is a 40/60 joint venture between Volvo Cars and Pininfarina, S.p.A.The joint venture was established to engineer and manufacture niche vehicles.The assets and liabilities associated with this joint venture that were classified during the first quarter of 2009 as held for sale are shown in the table below and are included in the assets and liabilities of Volvo classified as held-for-sale operations in Note 12. First Aquitaine Industries SAS ("First Aquitaine") is our Bordeaux transmission plant in France, which manufactures automatic transmissions for the Ford Explorer, Ranger, and Mustang vehicles.During the second quarter of 2009, we transferred legal ownership of First Aquitaine to HZ Holding France.We also entered into a volume-dependent pricing agreement wit |
6040 - GOODWILL AND OTHER NET I
6040 - GOODWILL AND OTHER NET INTANGIBLES | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Goodwill and Other Net Intangibles | |
Goodwill and Intangible Assets Disclosure | NOTE 5.GOODWILL AND OTHER NET INTANGIBLES The components of goodwill and other net intangible assets are as follows (in millions): June 30, 2009 December 31, 2008 Gross Carrying Amount Less: Accumulated Amortization Net Intangible Assets Gross Carrying Amount Less: Accumulated Amortization Net Intangible Assets Automotive Sector Ford Europe goodwill $ 33 $ $ 33 $ 31 $ $ 31 Manufacturing and production incentive rights 274 (170 ) 104 227 (113 ) 114 License and advertising agreements 91 (28 ) 63 85 (23 ) 62 Other 72 (46 ) 26 71 (41 ) 30 Total Automotive sector 470 (244 ) 226 414 (177 ) 237 Financial Services Sector Ford Credit goodwill 9 9 9 9 Other 4 (4 ) 4 (4 ) Total Financial Services sector 13 (4 ) 9 13 (4 ) 9 Total Company $ 483 $ (248 ) $ 235 $ 427 $ (181 ) $ 246 Changes in the goodwill balances are attributable to the impact of foreign currency translation.We also have goodwill recorded within Equity in net assets of affiliated companies of $34million at June30,2009 and December31,2008. Our recognized intangible assets are comprised of manufacturing and production incentive rights acquired in 2006 with a useful life of 4years, license and advertising agreements with amortization periods of 5years to 25years, and other intangibles with various amortization periods (primarily patents, customer contracts, technology, and land rights). Pre-tax amortization expense was as follows (in millions): Second Quarter First Half 2009 2008 2009 2008 Pre-tax amortization expense $21 $26 $39 $50 Intangible asset amortization is forecasted to be approximately $70million to $80million per year for the next two years, and $10million thereafter. |
6050 - RESTRICTED CASH
6050 - RESTRICTED CASH | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Restricted Cash | |
Restricted Cash | NOTE 6.RESTRICTED CASH We classify as restricted cash in Other assets on our consolidated balance sheet any cash and cash equivalents to which we do not have unilateral access as a result of legally-enforceable agreements.At June30,2009 and December31,2008, we had restricted cash balances of $741million and $363million, respectively.Restricted cash does not include required minimum balances, or cash securing debt raised through securitization transactions ("securitization cash").See Note 7 for discussion of the minimum balance requirement related to our Credit Agreement, and securitization cash. |
6060 - DEBT AND COMMITMENTS
6060 - DEBT AND COMMITMENTS | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Debt and Commitments | |
Debt And Commitments | NOTE 7.DEBT AND COMMITMENTS Debt at June30,2009 and December31,2008 are shown below (in millions). Amount Outstanding June 30, 2009 December 31, 2008 Automotive Sector Debt payable within one year Short-term $ 873 $ 543 Long-term payable within one year Public unsecured debt securities 334 Secured term loan 70 70 Other debt 515 578 Total debt payable within one year 1,792 1,191 Long-term debt payable after one year Public unsecured debt securities 5,260 9,148 Convertible Notes 579 4,883 Subordinated convertible debentures 3,030 3,027 Secured term loan 4,549 6,790 Secured revolving loan 10,066 Other debt 1,094 951 Total long-term debt payable after one year 24,578 24,799 Unamortized discount (a) (271 ) (1,763 ) Total long-term debt payable after one year 24,307 23,036 Total Automotive sector $ 26,099 $ 24,227 Fair value of debt $ 17,920 $ 9,480 Financial Services Sector Short-term debt Asset-backed commercial paper $ 6,568 $ 11,503 Other asset-backed short-term debt 4,590 5,569 Ford Interest Advantage (b) 2,516 1,958 Other short-term debt 1,098 1,538 Total short-term debt 14,772 20,568 Long-term debt Unsecured debt Notes payable within one year 12,600 15,712 Notes payable after one year 32,573 37,249 Unamortized discount (419 ) (256 ) Fair value adjustment (c) 253 334 Asset-backed debt Notes payable within one year 22,827 26,501 Notes payable after one year 24,718 28,734 Total long-term debt 92,552 108,274 Total Financial Services sector $ 107,324 $ 128,842 Fair value of debt $ 102,441 $ 112,389 Total Automotive and Financial Services sectors $ 133,423 $ 153,069 Intersector elimination (d) (357 ) (492 ) Total Company $ 133,066 $ 152,577 (a) Includes unamortized discount on convertible notes per FSP APB 14-1. (b) The Ford Interest Advantage program consists of our floating rate demand notes. (c) Adjustments related to designated fair value hedges of debt. (d) Debt related to Ford's acquisition of Ford Credit debt securities; see Note 1 for additional detail. The fair value of debt is estimated based on quoted market prices, current market rates for similar debt within approximately the same remaining maturities, or discounted cash flow models utilizing current market rates.Fair value of debt reflects interest accrued but not yet paid.Interest accrued on Automotive sector debt is reported in Accrued liabilities and deferred revenue and was $364million and $438million at June30,2009 and December31,2008, respectively.Interest accrued on |
6070 - IMPAIRMENTS
6070 - IMPAIRMENTS | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Impairments | |
Asset Impairment Charges | NOTE 8.IMPAIRMENTS Automotive Sector Held-for-Sale Impairments In the first quarter of 2009 and the first quarter of 2008 we recorded held-for-sale impairments of $650 millionrelating to Volvo and $421 million relating to Jaguar Land Rover, respectively.See Note 12 for discussion of our held-for-sale impairments. Long-Lived Asset Impairments North America Long-Lived Assets.In the second quarter of 2008, we recorded a pre-tax impairment charge of $5.3billion in Automotive cost of sales related to the long-lived assets in our Ford North America segment. The table below describes the significant components of the second quarter 2008long-lived asset impairment (inmillions): Ford North America Land $ Buildings and land improvements 698 Machinery, equipment and other 2,833 Special tools 1,769 Total $ 5,300 Other Impairments First Aquitaine.During the second quarter of 2009, we recorded an other-than-temporary impairment of our investment in the Bordeaux automatic transmission plant of $79million in Automotive cost of sales.The fair value measurement of $241million used to determine the impairment was based on the cost approach and considered the condition of the plant's fixed assets.The fair value of our investment is classified in Level 3 of our fair-value hierarchy. U.S. Consolidated Dealerships.During the first quarter of 2009, we recorded an other-than-temporary impairment of our investment in our consolidated dealerships of $78million in Automotive cost of sales.The fair value measurement used to determine the impairment was based on the market approach and reflected anticipated proceeds that are expected to be de minimis.The fair value of our investment was classified in Level 2 of our fair-value hierarchy.In the first quarter of 2008, we recorded an other-than-temporary impairment of $88million in Automotive cost of sales related to our consolidated dealerships. Financial Services Sector Long-Lived Asset Impairments Certain Vehicle Line Operating Leases.In the second quarter of 2008, we recorded a pre-tax impairment charge of $2.1billion in Selling, administrative and other expenses on our consolidated income statement and in Financial Services depreciation on our sector income statement related to certain vehicle lines in Ford Credit's North America operations operating lease portfolio. Other Impairments DFO Partnership.In March 2009, our Board approved a potential sale of our investment in DFO Partnership.DFOPartnership holds a portfolio of "non-core" diversified leveraged lease assets (e.g., railcars, aircraft, energy facilities).We used information obtained from bids to assist in determining a $200million fair value of our investment in DFOPartnership.As a result, during the first quarter of 2009, we recorded an other-than-temporary impairment of our investment in DFO Partnership of $141million in Financial Services equity in net income/(loss) of affiliated companies.The fair value of our investment is classified in Level 2 of our fair-value hierarchy. |
6080 - OTHER INCOME
6080 - OTHER INCOME (LOSS) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Other Income/(Loss) | |
Other Income/(Loss) | NOTE 9.OTHER INCOME/(LOSS) Automotive Sector.The following table summarizes the amounts included in Automotive interest income and other non-operating income/(expense), net (in millions): Second Quarter First Half 2009 2008 2009 2008 Interest income $ 51 $ 262 $ 113 $ 606 Realized and unrealized gains/(losses) on cash equivalents and marketable securities 239 (111 ) 233 (382 ) Gains/(Losses) on the sale of held-for-sale operations, equity and cost investments, and other dispositions (28 ) (399 ) (15 ) (393 ) Gains/(Losses) on extinguishment of debt 3,381 57 4,660 73 Other* 9 (1 ) 4 (4 ) Total $ 3,652 $ (192 ) $ 4,995 $ (100 ) _________ *Includes $4million in other income associated with the overall debt reduction actions discussed in Note 7. Financial Services Sector.The following table summarizes the amounts included in Financial Services other income/(loss), net (in millions): Second Quarter First Half 2009 2008 2009 2008 Interest income (non-financing related) $ 21 $ 139 $ 65 $ 284 Realized and unrealized gains/(losses) on cash equivalents and marketable securities 25 (44 ) 12 (48 ) Gains/(Losses) on the sale of held-for-sale operations, equity and cost investments, and other dispositions 1 29 3 35 Gains/(Losses) on extinguishment of debt 12 77 Investment and other income related to sales of receivables 9 48 19 117 Insurance premiums earned, net 27 42 56 82 Other 92 192 68 165 Total $ 187 $ 406 $ 300 $ 635 |
6090 - EMPLOYEE SEPARATION ACTI
6090 - EMPLOYEE SEPARATION ACTIONS AND EXIT AND DISPOSAL ACTIVITIES | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Employee Separation Actions and Exit and Disposal Activities | |
Employee Separation Actions And Exit And Disposal Activities | NOTE 10.EMPLOYEE SEPARATION ACTIONS AND EXIT AND DISPOSAL ACTIVITIES Automotive Sector Transitional Benefits During the first quarter of 2009, we reached an agreement with the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America ("UAW") to modify the 2007 collective bargaining agreement between us and the UAW.We renegotiated Job Security Benefits, modified Supplemental Unemployment Benefits, and established a new Transition Assistance Plan. Our collective bargaining agreement with the National Automobile, Aerospace, Transportation, and General Workers Union of Canada ("CAW") contains a provision pursuant to which we are required to pay idled employees a portion of their wages and certain benefits for a specified period of time based on the number of credits an employee has received. We establish liabilities for employee benefits that we expect to provide under our collective bargaining agreements.At June30,2009 and December31,2008, the related liabilities were $94million and $411million, respectively.During the second quarter and first half of 2009, we recorded in Automotive cost of sales a reduction of expense of $22million and $314million, respectively, related to the decrease of the liability.In the second quarter and first half of 2008, we recorded an expense of $149million and $56million, respectively, related to additional employee benefits that were expected to be paid. Separation Actions The cost of voluntary employee separation actions is recorded at the time of an employee's acceptance, unless the acceptance requires explicit approval by the Company.The costs of conditional voluntary separations are accrued when all conditions are satisfied.The costs of involuntary separation programs are accrued when management has approved the program and the affected employees are identified. UAW Voluntary Separations.During the first half of 2009, we continued to offer voluntary separation packages to our UAW hourly workforce.These actions resulted in pre-tax charges of $72million and $43million for the second quarter of 2009 and 2008, respectively, and $96million and $191million for the first half of 2009 and 2008, respectively.We recorded the expense in Automotive cost of sales.Wehave a separation reserve established for these costs, and at June30,2009 and December31,2008, the reserve was $108million and $162million, respectively.The ending balance in the reserve primarily represents the cost of separation packages for employees who accepted packages but have not yet left the Company, as well as employees who accepted a retirement package and ceased duties but remain on our employment rolls until they reach retirement eligibility. Other Employee Separation Actions.The following table shows pre-tax charges for other hourly and salaried employee separation actions for the second quarter and first half of 2009 and 2008, respectively, which are reported in Automotive cost of sales and Selling, administrative and other expenses (in millions): Second Quarter First Half 2009 2008 2009 2008 Ford Europe $ 68 $ 6 $ 72 $ 10 |
6100 - INCOME TAXES
6100 - INCOME TAXES | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Income Taxes | |
Income Taxes | NOTE 11.INCOME TAXES Generally, for interim tax reporting we estimate one single tax rate for tax jurisdictions not subject to a valuation allowance, which is applied to the year-to-date ordinary income/(loss).We manage our operations by multi-jurisdictional business units, however, and thus are unable to reasonably compute one overall effective tax rate.Accordingly, our worldwide tax provision is calculated pursuant to FASB Interpretation No.18, Accounting for Income Taxes in Interim Periods, which provides that tax (or benefit) in each foreign jurisdiction not subject to valuation allowance be separately computed as ordinary income/(loss) occurs within the jurisdiction. The U.S. and Canadian governments have reached agreement on our transfer pricing methodologies.The agreement covers a number of years and has resulted in a favorable impact to the second quarter income tax provision of $190million, primarily related to the expected refund of prior Canadian tax payments. |
6110 - DISCONTINUED OPERATIONS
6110 - DISCONTINUED OPERATIONS HELD FOR SALE OPERATIONS OTHER DISPOSITIONS AND ACQUISITIONS | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Discontinued Operations, Held-For-Sale Operations, Other Dispositions, and Acquisitions | |
Discontinued Operations, Held-For-Sale Operations, Other Dispositions, And Acquisitions | NOTE 12.DISCONTINUED OPERATIONS, HELD-FOR-SALE OPERATIONS, OTHER DISPOSITIONS, AND ACQUISITIONS Automotive Sector Discontinued Operations Automotive Protection Corporation ("APCO").In 2007, we completed the sale of APCO and realized a pre-tax gain of $51million (net of transaction costs and working capital adjustments), reported in Income/(Loss) from discontinued operations.In the second quarter of 2009, Ford received additional proceeds related to the settlement of a state and local tax matter that was unresolved at the time of sale and recognized after-tax gain of $3million in Income/(Loss) from discontinued operations. Held-for-Sale Operations Volvo. In the fourth quarter of 2008, we performed annual goodwill impairment testing for our Volvo reporting unit.We compared the carrying value of our Volvo reporting unit to its fair value, and concluded that the goodwill was not impaired.We performed this measurement relying primarily on the income approach, applying a discounted cash flow methodology.Our valuation was based on an in-use premise which considered a discount rate, after-tax return on sales rate, growth rate, and terminal value consistent with assumptions we believed principal market participants (i.e., other global automotive manufacturers) would use.This methodology produced appropriate valuations for entities we disposed of in recent years; in light of worsening economic conditions, however, we also considered other valuations, including a discounted cash flow analysis using more conservative assumptions than we initially used.This alternative analysis incorporated a significantly higher discount rate, offset partially by a higher growth rate; a much lower after-tax return on sales rate; and a lower terminal value.This alternative analysis reduced the valuation of our Volvo reporting unit by about50%.Even this more conservative analysis, however, did not support an impairment of Volvo goodwill at year-end. As previously disclosed, in recent years we have undertaken efforts to divest non-core assets in order to allow us to focus exclusively on our global Ford brand.Toward that end, in 2007 we sold our interest in Aston Martin; in 2008, we sold our interest in Jaguar Land Rover, and a significant portion of our ownership in Mazda.During the first quarter of 2009, based on our strategic review of Volvo and in light of our goal to focus on the global Ford brand, our Board of Directors committed to actively market Volvo for sale, notwithstanding the current distressed market for automotive-related assets.Accordingly, in the first quarter of 2009 we reported Volvo as held for sale and we ceased depreciation of its long-lived assets in the second quarter of 2009. Our commitment to actively market Volvo for sale also triggered a held-for-sale impairment test in the first quarter of 2009.We received information from our discussions with potential buyers that provided us a value for Volvo using a market approach, rather than an income approach.We concluded that the information we received from our discussions with potential buyers was more representative of the value of Volvo given the current market conditions, the |
6120 - AMOUNTS PER SHARE ATTRIB
6120 - AMOUNTS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Amounts Per Share Attributable to Ford Motor Company Common and Class B Stock | |
Amounts Per Share Attributable To Ford Motor Company Common And Class B Stock | NOTE 13.AMOUNTS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK The calculation of diluted income/(loss) per share of Ford Common Stock and Class B Stock takes into account the effect of obligations, such as restricted stock unit awards, stock options, and convertible notes and securities, considered to be potentially dilutive.Basic and diluted income/(loss) per share were calculated using the following (in millions): Second Quarter First Half 2009 2008 2009 2008 Basic and Diluted Income/(Loss) Attributable to Ford Motor Company Basic income/(loss) from continuing operations $ 2,256 $ (8,705 ) $ 829 $ (8,636 ) Effect of dilutive Convertible Notes (a) 16 Effect of dilutive Trust Preferred Securities (b) 47 Diluted income/(loss) from continuing operations $ 2,319 $ (8,705 ) $ 829 $ (8,636 ) Basic and Diluted Shares Average shares outstanding 3,002 2,238 2,700 2,214 Restricted and uncommitted-ESOP shares (1 ) (1 ) (1 ) (1 ) Basic shares 3,001 2,237 2,699 2,213 Net dilutive options and restricted and uncommitted-ESOP shares (c) 91 62 Dilutive Convertible Notes (a) 99 Dilutive convertible Trust Preferred Securities (b) 160 Diluted shares 3,351 2,237 2,761 2,213 Not included in calculation of diluted earnings per share due to their antidilutive effect: (a)538 million shares for the second quarter 2008, and 315 million shares and 538 million shares for the first half of 2009 and 2008, respectively, and the related income effect for Convertible Notes. (b)162 million shares for the second quarter 2008, and 161 million shares and 162 million shares for the first half of 2009 and 2008, respectively, and the related income effect for Trust Preferred Securities. (c)29 million contingently-issuable shares for second quarter 2008 and 25 million contingently-issuable shares for first half 2008. |
6130 - DERIVATIVE FINANCIAL INS
6130 - DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Derivative Financial Instruments and Hedging Activities | |
Derivative Financial Instruments and Hedging Activities | NOTE 14.DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Derivative Financial Instruments and Hedge Accounting We adopted SFAS No. 161, Disclosure about Derivative Instruments and Hedging Activities ("SFAS No. 161"), on January1,2009.SFAS No. 161 enhances the current disclosure framework for derivative instruments and hedging activities.In this initial year of adoption, we have elected not to present earlier periods. In the normal course of business, our operations are exposed to global market risks, including the effect of changes in foreign currency exchange rates, certain commodity prices, and interest rates.To manage these risks, we enter into various derivatives contracts.Foreign currency exchange contracts including forwards, options, and futures are used to manage foreign exchange exposure.Commodity contracts including forwards and options are used to manage commodity price risk.Interest rate contracts including swaps, caps, and floors are used to manage the effects of interest rate fluctuations.Cross-currency interest rate swap contracts are used to manage foreign currency and interest rate exposures on foreign-denominated debt.The vast majority of our derivatives are over-the-counter customized derivative transactions and are not exchange-traded.Management reviews our hedging program, derivative positions, and overall risk management strategy on a regular basis.We only enter into transactions that we believe will be highly effective at offsetting the underlying risk. Our use of derivatives does generate the risk that a counterparty may default on a derivative contract.We establish exposure limits for each counterparty to minimize this risk and provide counterparty diversification.Substantially all of our derivative exposures are with counterparties that have long-term credit ratings of single-A or better.The aggregate fair value of derivative instruments in asset positions on June30,2009 was $2billion, representing the maximum loss that we would recognize at that date if all counterparties failed to perform as contracted.We enter into master agreements with counterparties that generally allow for netting of certain exposures; therefore, the actual loss we would recognize if all counterparties failed to perform as contracted would be significantly lower. To ensure consistency in our treatment of derivative and non-derivative exposures with regard to our master agreements, we do not net our derivative position by counterparty for purposes of balance sheet presentation and disclosure. All derivatives are recognized on the balance sheet at fair value.We have elected to apply hedge accounting to certain derivatives in both the Automotive and Financial Services sectors; derivatives that receive designated hedge accounting treatment are documented and evaluated for effectiveness at the time they are designated, as well as throughout the hedge period.Cash flows associated with designated hedges are reported in the same category as the underlying hedged item. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting.We report changes in the fair value of derivatives |
6140 - RETIREMENT BENEFITS
6140 - RETIREMENT BENEFITS | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Retirement Benefits | |
Retirement Benefits | NOTE 15.RETIREMENT BENEFITS Pension and OPEB expense is summarized as follows (in millions): Second Quarter Pension Benefits* U.S. Plans Non-U.S. Plans OPEB 2009 2008 2009 2008 2009 2008 Service cost $ 86 $ 95 $ 71 $ 113 $ 102 $ 78 Interest cost 675 672 305 418 225 428 Expected return on assets (822 ) (866 ) (318 ) (474 ) (33 ) (80 ) Amortization of: Prior service costs/(credits) 93 94 27 (227 ) (222 ) (Gains)/Losses and Other 4 4 59 57 20 88 Separation programs 32 81 18 4 (Gain)/Loss from curtailment (1 ) (100 ) Net expense/(income) $ 36 $ 31 $ 198 $ 159 $ 86 $ 196 First Half Pension Benefits* U.S. Plans Non-U.S. Plans OPEB 2009 2008 2009 2008 2009 2008 Service cost $ 172 $ 189 $ 139 $ 236 $ 204 $ 156 Interest cost 1,349 1,344 597 861 448 861 Expected return on assets (1,644 ) (1,732 ) (621 ) (992 ) (66 ) (159 ) Amortization of: Prior service costs/(credits) 187 188 54 (454 ) (438 ) (Gains)/Losses and Other 8 8 117 108 41 177 Separation programs 7 205 111 42 2 11 (Gain)/Loss from curtailment (3 ) (111 ) Net expense/(income) $ 79 $ 202 $ 343 $ 309 $ 172 $ 497 __________ *Includes Volvo for 2008 and 2009, and Jaguar Land Rover for 2008. Plan Contributions and Drawdowns Our policy for funded plans is to contribute annually, at a minimum, amounts required by applicable laws and regulations.From time to time, we make contributions beyond those legally required. Pension.In the first half of 2009, we contributed about $900million to our worldwide pension plans, including benefit payments paid directly by the Company for unfunded plans.We expect to contribute from Automotive cash and cash equivalents an additional $500million in 2009, for a total of $1.4billion this year.Based on current assumptions and regulations, we do not expect to have a legal requirement to fund our major U.S. pension plans in 2009. |
6150 - FAIR VALUE MEASUREMENTS
6150 - FAIR VALUE MEASUREMENTS | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Fair Value Measurements | |
Fair Value Measurements | NOTE 16.FAIR VALUE MEASUREMENTS In determining fair value, we use various valuation techniques and prioritize the use of observable inputs.We assess the inputs used to measure fair value using a three-tier hierarchy based on the extent to which inputs used in measuring fair value are observable in the market. Level1 inputs include quoted prices for identical instruments and are the most observable. Level2 inputs include quoted prices for similar assets and observable inputs such as interest rates, currency exchange rates and yield curves. Level3 inputs are not observable in the market and include managements judgments about the assumptions market participants would use in pricing the asset or liability. Cash equivalents financial instruments.Cash and all highly liquid investments with a maturity of 90days or less at date of purchase are classified as Cash and cash equivalents.We measure financial instruments classified as cash equivalents at fair value.We use quoted prices where available to determine fair value for U.S. Treasury securities and industry-standard valuation models using market-based inputs when quoted prices are unavailable, such as for government agency securities and corporate obligations. Marketable securities.Investments including U.S. government and non-U.S. government securities, corporate obligations and equities, and asset-backed securities with a maturity date greater than 90days at the date of purchase are classified as marketable securities.Where available, including for U.S. Treasury securities and corporate equities, we use quoted market prices to measure fair value.If quoted market prices are not available, such as for government agency securities, asset-backed securities, and corporate obligations, prices for similar assets and matrix pricing models are used. Retained interest in securitized assets.Ford Credit estimates the fair value of retained interests using internal valuation models, market inputs, and their own assumptions in estimating cash flows from the sales of retail receivables. Derivative financial instruments.Detail on valuation methodologies used to measure fair value of derivative instruments can be found in Note 14. The fair value of debt and loan receivables are presented together with the related carrying value in Notes 2 and 7, respectively.These notes also include a description of valuation methodologies. The following table summarizes the fair value at June 30, 2009 of those financial instruments that are measured at fair value on a recurring basis (in millions): Items Measured at Fair Value on a Recurring Basis Level 1 Level 2 Level 3 Balance as of June30, 2009 Automotive Sector Assets Cash equivalents financial instruments (a) U.S. government $ 1,319 $ $ $ 1,319 Government-sponsored enterprises 4,727 4,727 Government non U.S. 195 195 Corporate debt 812 812 Total cash equivalents financial instruments 1,319 5,734 7,053 Marketable securit |
6160 - SEGMENT INFORMATION
6160 - SEGMENT INFORMATION | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Segment Information | |
Segment Information | NOTE 17.SEGMENT INFORMATION (In millions) Automotive Sector Ford North America Ford South America Ford Europe Volvo Ford Asia Pacific Africa Mazda Jaguar Land Rover Other Total SECOND QUARTER 2009 Sales/Revenues External customer $ 10,826 $ 1,840 $ 7,234 $ 2,883 $ 1,206 $ $ $ $ 23,989 Intersegment 51 200 15 266 Income/(Loss) Income/(Loss) before income taxes (1,048 ) 73 (101 ) (98 ) (26 ) 5 2,971 1,776 SECOND QUARTER 2008 Sales/Revenues External customer $ 14,219 $ 2,346 $ 11,559 $ 4,326 $ 1,778 $ $ 2,829 $ $ 37,057 Intersegment 71 263 30 22 386 Income/(Loss) Income/(Loss) before income taxes (7,153 ) 388 579 (152 ) 43 (111 ) 75 (308 ) (6,639 ) Financial Services Sector Total Company Other Ford Financial Credit Services Elims Total Elims * Total SECOND QUARTER 2009 Sales/Revenues External customer $ 3,125 $ 75 $ $ 3,200 $ $ 27,189 Intersegment 101 3 104 (370 ) Income/(Loss) Income/(Loss) before income taxes 646 (51 ) 595 2,371 SECOND QUARTER 2008 Sales/Revenues External customer $ 3,980 $ 65 $ $ 4,045 $ $ 41,102 Intersegment 215 3 218 (604 ) Income/(Loss) Income/(Loss) before income taxes (2,380 ) (40 ) (2,420 ) (9,059 ) __________ * Includes intersector transactions occurring in the ordinary course of business. (In millions) Automotive Sector Ford North America Ford South America Ford Europe Volvo Ford Asia Pacific Africa Mazda Jaguar Land Rover Other Total FIRST HALF 2009 Sales/Revenues External customer $ 20,987 $ 3,244 $ 13,227 $ 5,528 $ 2,371 $ $ $ $ 45,357 Intersegment 197 371 27 595 Income/(Loss) Income/(Loss) before income taxes (1,823 ) 136 (656 ) (1,019 ) (129 ) 3 3,796 308 Total assets at June 30 79,252 FIRST HALF 2008 Sales/Revenues External customer $ 31,329 $ 4,188 $ 21,714 $ 8,523 $ 3,446 $ $ 6,974 $ $ 76,174 Intersegment 289 489 57 63 898 Income/(Loss) Income/(Loss) before income taxes (7,598 ) 645 1,307 (303 ) 39 (62 ) 75 (520 ) (6,417 ) Total assets at June 30 108,307 Financial Services Sector Total Company Other Ford Financial Credit Services Elims Total Elims * Total FIRST HALF 2009 Sales/Revenues |
6170 - GUARANTEES
6170 - GUARANTEES | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Guarantees | |
Guarantees | NOTE 18.GUARANTEES At June30,2009, the following guarantees were issued and outstanding: Guarantees related to affiliates and third parties.We guarantee debt and lease obligations of certain joint ventures, as well as certain financial obligations of outside third parties including suppliers to support our business and economic growth.Expiration dates vary through 2017, and guarantees will terminate on payment and/or cancellation of the obligation.A payment by us would be triggered by failure of the guaranteed party to fulfill its obligation covered by the guarantee.In some circumstances, we are entitled to recover from the third party amounts paid by us under the guarantee.However, our ability to enforce these rights is sometimes stayed until the guaranteed party is paid in full, and may be limited in the event of insolvency of the third party or other circumstances.Maximum potential payments under guarantees total $268million and $206 million at June30,2009 and December31,2008, respectively.The carrying value of our recorded liabilities related to guarantees was $85million and $24million at June30,2009 and December31,2008, respectively. In December 2005, we completed the sale of Hertz.As part of this transaction, we provided cash-collateralized letters of credit in an aggregate amount of $200million to support the asset-backed portion of the buyer's financing for the transaction.Our commitment to provide the letters of credit expires no later than December21,2011 and supports the payment obligations of Hertz Vehicle Finance LLC under one or more series of asset-backed notes.The letters of credit can be drawn upon on any date funds allocated to pay interest on the asset-backed notes are insufficient to pay scheduled interest payments, principal amounts due on the legal final maturity date, or when the balance of assets supporting the asset-backed notes is less than the outstanding balance of the asset-backed notes.As of June30,2009 and December31,2008, the deferred gain related to the letters of credit was $11million and $14million, respectively. Indemnifications.In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction, such as the sale of a business.These indemnifications might include claims regarding any of the following, among others:environmental, tax, and shareholder matters; intellectual property rights; power generation contracts; governmental regulations and employment-related matters; dealer, supplier, and other commercial contractual relationships; and financial matters, such as securitizations.Performance under these indemnities would generally be triggered by a breach of terms of the contract or by a third-party claim.We regularly evaluate the probability of having to incur costs associated with these indemnifications and have accrued for expected losses that are probable.As part of the sale of Jaguar Land Rover, we provided the buyer a customary set of indemnifications, some of which are subject to an aggregate limit of $805million and some of which (e.g., warranties related to our capacity and authority to enter in |
6180 - EQUITY
6180 - EQUITY (DEFICIT) ATTRIBUTABLE TO FORD MOTOR COMPANY AND NONCONTROLLING INTERESTS | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Equity/(Deficit) Attributable To Ford Motor Company and Noncontrolling Interests | |
Equity/(Deficit) Attributable To Ford Motor Company and Noncontrolling Interests | NOTE 19.EQUITY/(DEFICIT) ATTRIBUTABLE TO FORD MOTOR COMPANY AND NONCONTROLLING INTERESTS We adopted SFAS No. 160 on January1,2009, pursuant to which noncontrolling interests are now considered a component of equity.In addition, SFAS No. 160 changes the presentation and accounting for noncontrolling interests, and requires that equity/(deficit) presented in our consolidated financial statements include amounts attributable to Ford Motor Company stockholders and the noncontrolling interests.The following schedule presents changes in consolidated equity/(deficit) attributable to Ford Motor Company and the noncontrolling interests (in millions): 2009 2008 Equity/(Deficit) Attributable to Ford Motor Company Equity/(Deficit) Attributable to Noncontrolling Interests Total Equity/ (Deficit) Equity/(Deficit) Attributable to Ford Motor Company Equity/(Deficit) Attributable to Noncontrolling Interests Total Equity/ (Deficit) Beginning balance, January 1 $ (15,722 ) $ 1,195 $ (14,527 ) $ 7,363 $ 1,421 $ 8,784 Total comprehensive income/(loss) Net income/(loss) (1,427 ) 11 (1,416 ) 70 122 192 Other comprehensive income/(loss): Foreign currency translation (446 ) (69 ) (515 ) 921 (50 ) 871 Net gain/(loss) on derivative instruments (87 ) (87 ) 225 225 Employee benefit-related (5 ) (5 ) 96 96 Net holding gain/(loss) (1 ) (1 ) (27 ) (27 ) Total other comprehensive income/(loss) (539 ) (69 ) (608 ) 1,215 (50 ) 1,165 Total comprehensive income/(loss) (1,966 ) (58 ) (2,024 ) 1,285 72 1,357 Other changes in equity: Capital in excess of par value of stock for debt conversion, employee benefit plans, and other 110 110 154 154 Adoption of SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities including an amendment of FASB Statement No.115 12 12 Dividends (32 ) (32 ) (9 ) (9 ) Other 1 (5 ) (4 ) 2 (18 ) (16 ) Ending balance, March 31 $ (17,577 ) $ 1,100 $ (16,477 ) $ 8,816 $ 1,466 $ 10,282 Beginning balance, March 31 $ (17,577 ) $ 1,100 $ (16,477 ) $ 8,816 $ 1,466 $ 10,282 Total comprehensive income/(loss) Net income/(loss) 2,261 90 2,351 (8,697 ) 89 (8,608 ) Other comprehensive income/(loss): Foreign currency translation 2,107 104 2,211 (1,452 ) 27 (1,425 ) Net gain/(loss) on derivative instruments (36 ) (36 ) (252 ) (252 ) Employee benefit-related (450 ) (1 ) (451 ) 1,184 1,184 Net holding gain/(loss) (2 ) (2 ) (6 ) (6 ) Total other comprehensive income/(loss) 1,619 103 1,722 (526 ) 27 (499 ) Total comprehensive income/(loss) 3,880 193 4,073 (9,223 ) 116 (9,107 ) Other changes in equity: Capital in excess of par value of stock for equity issuance, debt conversion, employee benefit plans, and other 2,944 2,944 398 398 Div |
Document Information
Document Information | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Amendment Description | none |
Document Period End Date | 2009-06-30 |
Entity Information
Entity Information (USD $) | |||
6 Months Ended
Jun. 30, 2009 | Jul. 28, 2009
| Jun. 30, 2008
| |
Entity Information [Line Items] | |||
Entity Registrant Name | Ford Motor Company | ||
Entity Central Index Key | 0000037996 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $10,499,067,476 | ||
Entity Common Stock, Shares Outstanding | 3,221,289,753 |