CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS (USD $) | ||||
In Millions, except Per Share data | 3 Months Ended
Sep. 30, 2009 | 3 Months Ended
Sep. 30, 2008 | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
Sales and revenues | ||||
Automotive sales | $27,870 | $27,733 | $73,227 | $103,907 |
Financial Services revenues | 3,022 | 4,013 | 9,632 | 12,233 |
Total sales and revenues | 30,892 | 31,746 | 82,859 | 116,140 |
Costs and expenses | ||||
Automotive cost of sales | 25,176 | 25,001 | 70,284 | 100,451 |
Selling, administrative and other expenses | 3,076 | 4,575 | 9,968 | 16,974 |
Interest expense | 1,623 | 2,413 | 5,245 | 7,430 |
Financial Services provision for credit and insurance losses | 125 | 399 | 946 | 1,341 |
Total costs and expenses | 30,000 | 32,388 | 86,443 | 126,196 |
Automotive interest income and other non-operating income/(expense), net (Note 9) | 151 | (244) | 5,146 | (344) |
Financial Services other income/(loss), net (Note 9) | 131 | 300 | 431 | 935 |
Equity in net income/(loss) of affiliated companies | 41 | 13 | (27) | 119 |
Income/(Loss) before income taxes | 1,215 | (573) | 1,966 | (9,346) |
Provision for/(Benefit from) income taxes | 139 | (463) | (40) | (811) |
Income/(Loss) from continuing operations | 1,076 | (110) | 2,006 | (8,535) |
Income/(Loss) from discontinued operations (Note 12) | 0 | 0 | 5 | 9 |
Net income/(loss) | 1,076 | (110) | 2,011 | (8,526) |
Less: Income/(Loss) attributable to noncontrolling interests | 79 | 51 | 180 | 262 |
Net income/(loss) attributable to Ford Motor Company | 997 | (161) | 1,831 | (8,788) |
NET INCOME/(LOSS) ATTRIBUTABLE TO FORD MOTOR COMPANY | ||||
Income/(Loss) from continuing operations | 997 | (161) | 1,826 | (8,797) |
Income/(Loss) from discontinued operations (Note 12) | 0 | 0 | 5 | 9 |
Net income/(loss) | 997 | (161) | 1,831 | (8,788) |
Basic income/(loss) | ||||
Income/(Loss) from continuing operations | 0.31 | -0.07 | 0.63 | -3.94 |
Income/(Loss) from discontinued operations | $0 | $0 | $0 | $0 |
Net income/(loss) | 0.31 | -0.07 | 0.63 | -3.94 |
Diluted income/(loss) | ||||
Income/(Loss) from continuing operations | 0.29 | -0.07 | 0.61 | -3.94 |
Income/(Loss) from discontinued operations | $0 | $0 | $0 | $0 |
Net income/(loss) | 0.29 | -0.07 | 0.61 | -3.94 |
Automotive [Member] | ||||
Sales and revenues | ||||
Automotive sales | 27,870 | 27,733 | 73,227 | 103,907 |
Costs and expenses | ||||
Automotive cost of sales | 25,176 | 25,001 | 70,284 | 100,451 |
Selling, administrative and other expenses | 2,027 | 2,740 | 6,182 | 8,804 |
Interest expense | 311 | 493 | 1,161 | 1,566 |
Total costs and expenses | 27,203 | 27,741 | 76,466 | 109,255 |
Operating income/(loss) | 667 | (8) | (3,239) | (5,348) |
Automotive interest income and other non-operating income/(expense), net (Note 9) | 151 | (244) | 5,146 | (344) |
Equity in net income/(loss) of affiliated companies | 38 | 13 | 107 | 109 |
Income/(Loss) before income taxes | 545 | (732) | 853 | (7,149) |
Financial Services [Member] | ||||
Sales and revenues | ||||
Financial Services revenues | 3,022 | 4,013 | 9,632 | 12,233 |
Costs and expenses | ||||
Interest expense | 1,312 | 1,920 | 4,084 | 5,864 |
Depreciation | 862 | 1,596 | 3,261 | 7,544 |
Operating and other expenses | 187 | 239 | 525 | 626 |
Financial Services provision for credit and insurance losses | 125 | 399 | 946 | 1,341 |
Total costs and expenses | 2,486 | 4,154 | 8,816 | 15,375 |
Financial Services other income/(loss), net (Note 9) | 131 | 300 | 431 | 935 |
Equity in net income/(loss) of affiliated companies | 3 | 0 | (134) | 10 |
Income/(Loss) before income taxes | $670 | $159 | $1,113 | ($2,197) |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET (USD $) | ||
In Millions | Sep. 30, 2009
| Dec. 31, 2008
|
ASSETS | ||
Cash and cash equivalents | $25,798 | $22,049 |
Marketable securities | 22,568 | 17,411 |
Finance receivables, net (Note 2) | 75,613 | 93,484 |
Other receivables, net | 7,296 | 5,674 |
Net investment in operating leases | 18,803 | 25,250 |
Inventories (Note 3) | 6,560 | 6,988 |
Equity in net assets of affiliated companies | 1,544 | 1,599 |
Net property | 24,812 | 24,143 |
Deferred income taxes | 3,664 | 3,108 |
Goodwill and other net intangible assets (Note 5) | 225 | 246 |
Assets of held-for-sale operations (Note 12) | 9,023 | 8,612 |
Other assets | 7,200 | 9,734 |
Total assets | 203,106 | 218,298 |
LIABILITIES | ||
Payables | 15,209 | 13,145 |
Accrued liabilities and deferred revenue | 55,151 | 59,526 |
Debt (Note 7) | 132,017 | 152,577 |
Deferred income taxes | 2,644 | 2,035 |
Liabilities of held-for-sale operations (Note 12) | 5,355 | 5,542 |
Total liabilities | 210,376 | 232,825 |
EQUITY | ||
Common Stock, par value $0.01 per share (3,244 million shares issued) | 32 | 23 |
Class B Stock, par value $0.01 per share (71 million shares issued) | 1 | 1 |
Capital in excess of par value of stock | 14,698 | 10,875 |
Accumulated other comprehensive income/(loss) | (8,704) | (10,085) |
Treasury stock | (178) | (181) |
Retained earnings/(Accumulated deficit) | (14,524) | (16,355) |
Total equity/(deficit) attributable to Ford Motor Company (Note 19) | (8,675) | (15,722) |
Equity/(Deficit) attributable to noncontrolling interests (Note 19) | 1,405 | 1,195 |
Total equity/(deficit) (Note 19) | (7,270) | (14,527) |
Total liabilities and equity | 203,106 | 218,298 |
Ford [Member] | ||
ASSETS | ||
Intersector elimination | (3,245) | (2,535) |
Total assets | 205,896 | 222,947 |
LIABILITIES | ||
Intersector elimination | (3,245) | (2,535) |
Total liabilities | 213,166 | 237,474 |
EQUITY | ||
Total liabilities and equity | 205,896 | 222,947 |
Automotive [Member] | ||
ASSETS | ||
Cash and cash equivalents | 10,176 | 6,377 |
Marketable securities | 14,572 | 9,296 |
Total cash and marketable securities | 24,748 | 15,673 |
Receivables, Net | 3,747 | 3,065 |
Deferred income taxes | 428 | 302 |
Other current assets | 2,796 | 3,450 |
Current receivable from Financial Services | 2,588 | 2,035 |
Total current assets | 40,867 | 31,513 |
Inventories (Note 3) | 6,560 | 6,988 |
Equity in net assets of affiliated companies | 1,412 | 1,076 |
Net property | 24,627 | 23,930 |
Deferred income taxes | 5,733 | 7,204 |
Goodwill and other net intangible assets (Note 5) | 216 | 237 |
Assets of held-for-sale operations (Note 12) | 8,112 | 8,414 |
Other assets | 1,544 | 1,441 |
Total assets | 82,511 | 73,815 |
LIABILITIES | ||
Trade payables | 11,622 | 9,193 |
Other payables | 2,367 | 1,982 |
Accrued liabilities and deferred revenue | 27,638 | 29,584 |
Deferred income taxes | 2,894 | 2,790 |
Debt payable within one year (Note 7) | 1,635 | 1,191 |
Total current liabilities | 46,156 | 44,740 |
Long-term debt (Note 7) | 25,254 | 23,036 |
Other liabilities | 22,030 | 23,766 |
Deferred income taxes | 495 | 614 |
Liabilities of held-for-sale operations (Note 12) | 5,355 | 5,487 |
Total liabilities | 99,290 | 97,643 |
Financial Services [Member] | ||
ASSETS | ||
Cash and cash equivalents | 15,622 | 15,672 |
Marketable securities | 8,642 | 8,607 |
Finance receivables, net (Note 2) | 79,173 | 96,101 |
Net investment in operating leases | 16,819 | 23,120 |
Equity in net assets of affiliated companies | 132 | 523 |
Goodwill and other net intangible assets (Note 5) | 9 | 9 |
Assets of held-for-sale operations (Note 12) | 911 | 198 |
Other assets | 5,322 | 7,437 |
Total assets | 126,630 | 151,667 |
LIABILITIES | ||
Payables | 1,220 | 1,970 |
Debt (Note 7) | 105,774 | 128,842 |
Deferred income taxes | 2,045 | 3,280 |
Other Liabilities And Deferred Income | 5,494 | 6,184 |
Liabilities of held-for-sale operations (Note 12) | 0 | 55 |
Payable to Automotive | 2,588 | 2,035 |
Total liabilities | $117,121 | $142,366 |
PARENTHETICAL DATA TO THE CONSO
PARENTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEET (USD $) | |
Share data in Millions | Sep. 30, 2009
|
EQUITY | |
Common Stock, par value (in dollars per share) | 0.01 |
Common Stock, shares issued (in shares) | 3,244 |
Class B Common Stock, par value (in dollars per share) | 0.01 |
Class B Common Stock, shares issued (in shares) | 71 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | ||||
In Millions | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 | Dec. 31, 2008
| Dec. 31, 2007
|
Cash flows from operating activities of continuing operations | ||||
Net cash (used in)/provided by operating activities | $15,630 | $3,269 | ||
Cash flows from investing activities of continuing operations | ||||
Capital expenditures | (3,391) | (4,875) | ||
Acquisitions of retail and other finance receivables and operating leases | (21,214) | (36,932) | ||
Collections of retail and other finance receivables and operating leases | 31,713 | 32,278 | ||
Purchases of securities | (61,461) | (49,881) | ||
Sales and maturities of securities | 56,927 | 47,852 | ||
Settlements of derivatives | 451 | 1,826 | ||
Proceeds from sale of businesses | 380 | 6,293 | ||
Cash paid for acquisitions | 0 | (13) | ||
Transfer of cash balances upon disposition of discontinued/held-for-sale operations | 0 | (925) | ||
Other | (609) | 348 | ||
Net cash (used in)/provided by investing activities | 2,796 | (4,029) | ||
Cash flows from financing activities of continuing operations | ||||
Sales of Common Stock | 2,270 | 663 | ||
Changes in short-term debt | (5,668) | (4,422) | ||
Proceeds from issuance of other debt | 35,642 | 27,565 | ||
Principal payments on other debt | (46,072) | (32,768) | ||
Other | (743) | (531) | ||
Net cash (used in)/provided by financing activities | (14,571) | (9,493) | ||
Effect of exchange rate changes on cash | 524 | (136) | ||
Cumulative correction of Financial Services prior period error (Note 1) | (630) | 0 | ||
Net increase/(decrease) in cash and cash equivalents from continuing operations | 3,749 | (10,389) | ||
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 | 3,749 | (10,389) | ||
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 | 3,749 | (10,389) | ||
Less: cash and cash equivalents of discontinued/held-for-sale operations at September 30 | 0 | 0 | 0 | 0 |
Cash and cash equivalents at September 30 | 25,798 | 24,894 | 22,049 | 35,283 |
Automotive [Member] | ||||
Cash flows from operating activities of continuing operations | ||||
Net cash (used in)/provided by operating activities | 754 | (7,242) | ||
Cash flows from investing activities of continuing operations | ||||
Capital expenditures | (3,377) | (4,815) | ||
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 | (40,974) | (33,430) | ||
Sales and maturities of securities | 36,201 | 33,676 | ||
Settlements of derivatives | (52) | 1,136 | ||
Proceeds from sale of businesses | 6 | 2,595 | ||
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 | 9 | ||
Other | (735) | 71 | ||
Net cash (used in)/provided by investing activities | (8,916) | (1,696) | ||
Cash flows from financing activities of continuing operations | ||||
Sales of Common Stock | 2,270 | 663 | ||
Changes in short-term debt | 242 | 56 | ||
Proceeds from issuance of other debt | 11,412 | 116 | ||
Principal payments on other debt | (952) | (456) | ||
Financing activity to Automotive | 0 | 0 | ||
Other | (193) | (206) | ||
Net cash (used in)/provided by financing activities | 12,779 | 173 | ||
Effect of exchange rate changes on cash | 246 | (64) | ||
Net change in intersector receivables/payables and other liabilities | (1,064) | (1,242) | ||
Cumulative correction of Financial Services prior period error (Note 1) | 0 | 0 | ||
Net increase/(decrease) in cash and cash equivalents from continuing operations | 3,799 | (10,071) | ||
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 | 3,799 | (10,071) | ||
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 | 3,799 | (10,071) | ||
Less: cash and cash equivalents of discontinued/held-for-sale operations at September 30 | 0 | 0 | 0 | 0 |
Cash and cash equivalents at September 30 | 10,176 | 10,607 | 6,377 | 20,678 |
Financial Services [Member] | ||||
Cash flows from operating activities of continuing operations | ||||
Net cash (used in)/provided by operating activities | 4,203 | 8,088 | ||
Cash flows from investing activities of continuing operations | ||||
Capital expenditures | (14) | (60) | ||
Acquisitions of retail and other finance receivables and operating leases | (21,214) | (36,932) | ||
Collections of retail and other finance receivables and operating leases | 31,824 | 32,643 | ||
Net (increase)/decrease in wholesale receivables | 9,435 | 2,058 | ||
Purchases of securities | (22,135) | (16,721) | ||
Sales and maturities of securities | 21,128 | 14,176 | ||
Settlements of derivatives | 503 | 690 | ||
Proceeds from sale of businesses | 374 | 3,698 | ||
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 | ||
Other | 126 | 277 | ||
Net cash (used in)/provided by investing activities | 20,027 | (171) | ||
Cash flows from financing activities of continuing operations | ||||
Sales of Common Stock | 0 | 0 | ||
Changes in short-term debt | (5,910) | (4,478) | ||
Proceeds from issuance of other debt | 24,230 | 27,449 | ||
Principal payments on other debt | (42,747) | (32,042) | ||
Financing activity to Automotive | (15) | (9) | ||
Other | (550) | (325) | ||
Net cash (used in)/provided by financing activities | (24,992) | (9,405) | ||
Effect of exchange rate changes on cash | 278 | (72) | ||
Net change in intersector receivables/payables and other liabilities | 1,064 | 1,242 | ||
Cumulative correction of Financial Services prior period error (Note 1) | (630) | 0 | ||
Net increase/(decrease) in cash and cash equivalents from continuing operations | (50) | (318) | ||
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 | (50) | (318) | ||
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 | (50) | (318) | ||
Less: cash and cash equivalents of discontinued/held-for-sale operations at September 30 | 0 | 0 | 0 | 0 |
Cash and cash equivalents at September 30 | $15,622 | $14,287 | $15,672 | $14,605 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | ||||
In Millions | 3 Months Ended
Sep. 30, 2009 | 3 Months Ended
Sep. 30, 2008 | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
Net income/(loss) | $1,076 | ($110) | $2,011 | ($8,526) |
Other comprehensive income/(loss), net of tax | ||||
Foreign currency translation | 513 | (2,061) | 2,209 | (2,615) |
Net gain/(loss) on derivative instruments | (68) | (109) | (191) | (136) |
Employee benefit-related | (131) | 1,442 | (587) | 2,722 |
Net holding gain/(loss) | 2 | (12) | (1) | (45) |
Total other comprehensive income/(loss), net of tax | 316 | (740) | 1,430 | (74) |
Comprehensive income/(loss) | 1,392 | (850) | 3,441 | (8,600) |
Less: Comprehensive income/(loss) attributable to noncontrolling interests (Note 19) | 94 | 15 | 229 | 203 |
Comprehensive income/(loss) attributable to Ford Motor Company | $1,298 | ($865) | $3,212 | ($8,803) |
PRINCIPLES OF PRESENTATION AND
PRINCIPLES OF PRESENTATION AND CONSOLIDATION | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Principles of Presentation and Consolidation [Abstract] | |
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 Rule10-01 of Regulation S-X.We show certain of our financial statements on both a consolidated and a sector basis for our 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.The operating 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 December31,2008 ("2008Form 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 primary beneficiary, 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 $630million 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 annual and interim financial statements was not material. Subsequent Events.We evaluated the effects of all subsequent events from the end of the third quarter through November6,2009, the date we filed our financial statements with the U.S. Securities and Exchange Commission ("SEC"). Noncontrolling Interests.We adopted the Financial Accounting Standards Board's ("FASB") revised standard on accounting for noncontrolling interests on its effective date, January1,2009.This standard establishes accounting and reporting requirements for the noncontrolling interest (formerly "minority interest") in a subsidiary and for the deconsolidation of a subsidiary.The standard 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 periods.This requirement changed the presentation of our |
FINANCE RECEIVABLES FINANCIAL S
FINANCE RECEIVABLES FINANCIAL SERVICES SECTOR | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Finance Receivables - Financial Services Sector [Abstract] | |
FINANCE RECEIVABLES - FINANCIAL SERVICES SECTOR | NOTE 2.FINANCE RECEIVABLES FINANCIAL SERVICES SECTOR Net finance receivables were as follows (in millions): September 30, 2009 December 31, 2008 Retail (including direct financing leases) $ 60,269 $ 67,316 Wholesale 18,489 27,483 Other finance receivables 3,708 4,057 Total finance receivables 82,466 98,856 Unearned interest supplements (1,830 ) (1,343 ) Allowance for credit losses (1,486 ) (1,417 ) Other 23 5 Net finance receivables sector balance sheet $ 79,173 $ 96,101 Net finance receivables subject to fair value $ 74,022 $ 91,584 Fair value $ 74,669 $ 84,615 Net finance receivables sector balance sheet $ 79,173 $ 96,101 Reclassification of receivables purchased from Automotive sector and Other Financial Services to Other receivables, net (3,560 ) (2,617 ) Net finance receivables consolidated balance sheet $ 75,613 $ 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. |
INVENTORIES
INVENTORIES | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Inventories [Abstract] | |
INVENTORIES | NOTE 3.INVENTORIES Inventories are summarized as follows (in millions): September 30, 2009 December 31, 2008 Raw materials, work-in-process and supplies $ 3,057 $ 2,747 Finished products 4,336 5,091 Total inventories under first-in, first-out method ("FIFO") 7,393 7,838 Less: Last-in, first-out method ("LIFO") adjustment (833 ) (850 ) Total inventories $ 6,560 $ 6,988 Inventories are stated at lower of cost or market.About one-fourth of inventories were determined under the LIFO method. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Variable Interest Entities [Abstract] | |
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 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 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 entities described below include purchasing the majority, and in some cases substantially all, of the entity's output under a cost-plus-margin arrangement and/or volume-dependent pricing.These contractual arrangements may require us to absorb entity losses when production volume targets are not met and/or allow us to receive bonuses when production volume targets are exceeded. Effective January 1, 2010, we will adopt FASB's new standard for determining VIE consolidation.Issued in June 2009, FASB's new standard replaces the quantitative-based risks and rewards calculation with an approach that is primarily qualitative.The new standard requires ongoing reassessment of the appropriateness of consolidation.The standard also requires additional disclosure about involvement with VIEs.At this time, we expect that adoption of this standard may result in the deconsolidation of several of our joint ventures, including Ford Otosan (discussed below), which is reported within our Ford Europe segment results.Although we continue to examine the potential impact of this standard on our financial condition, results of operations, and financial statement disclosures, we anticipate that the adoption may negatively impact Income/(Loss) before income taxes and in particular Ford Europe's pre-tax results.The standard would have no effect onNet income/(loss) attributable to Ford Motor Company. Described below are the significant VIEs that we consolidated as of September30,2009: 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. First Aquitaine Industries SAS ("First Aquitaine") operates a transmission plant in Bordeaux, France which manufactures automatic transmissions for 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 with the new owner to purchase all of the plant's output.As a result, we now consider this entity to be a VIE of which we are the primary beneficiary.See Note8 for discussion of the impairment of our investment in this plant. 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 a 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 |
GOODWILL AND OTHER NET INTANGIB
GOODWILL AND OTHER NET INTANGIBLES | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Goodwill and Other Net Intangibles [Abstract] | |
GOODWILL AND OTHER NET INTANGIBLES | NOTE 5.GOODWILL AND OTHER NET INTANGIBLE ASSETS The components of goodwill and other net intangible assets are as follows (in millions): September 30, 2009 December 31, 2008 Gross Carrying Amount Less: Accumulated Amortization Net Carrying Amount Gross Carrying Amount Less: Accumulated Amortization Net Carrying Amount Automotive Sector Ford Europe goodwill $ 34 $ $ 34 $ 31 $ $ 31 Manufacturing and production incentive rights 298 (204 ) 94 227 (113 ) 114 License and advertising agreements 92 (30 ) 62 85 (23 ) 62 Other intangible assets 74 (48 ) 26 71 (41 ) 30 Total Automotive sector 498 (282 ) 216 414 (177 ) 237 Financial Services Sector Ford Credit goodwill 9 9 9 9 Other intangible assets 4 (4 ) 4 (4 ) Total Financial Services sector 13 (4 ) 9 13 (4 ) 9 Total Company $ 511 $ (286 ) $ 225 $ 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 September30,2009 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): Third Quarter First Nine Months 2009 2008 2009 2008 Pre-tax amortization expense $ 22 $ 27 $ 61 $ 77 Intangible asset amortization is forecasted to be approximately $70million to $80million per year through 2010, and $10million thereafter. |
RESTRICTED CASH
RESTRICTED CASH | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Restricted Cash [Abstract] | |
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.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. Restricted cash reflected on our balance sheet is as follows (in millions): September 30, 2009 December 31, 2008 Automotive sector $ 803 $ 363 Financial Services sector 519 449 Total Company $ 1,322 $ 812 |
DEBT AND COMMITMENTS
DEBT AND COMMITMENTS | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Debt and Commitments [Abstract] | |
DEBT AND COMMITMENTS | NOTE 7.DEBT AND COMMITMENTS Debt outstanding is shown below (in millions). Amount Outstanding September 30, 2009 December 31, 2008 Automotive Sector Debt payable within one year Short-term $ 810 $ 543 Long-term payable within one year Public unsecured debt securities 334 Secured term loan 70 70 Other debt 421 578 Total debt payable within one year 1,635 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 3,077 3,027 Secured term loan 4,486 6,790 Secured revolving loan 10,166 U.S. Department of Energy loans 886 Other debt 1,065 951 Total long-term debt payable after one year 25,519 24,799 Unamortized discount (a) (265 ) (1,763 ) Total long-term debt payable after one year 25,254 23,036 Total Automotive sector $ 26,889 $ 24,227 Fair value of debt $ 23,057 $ 9,480 Financial Services Sector Short-term debt Asset-backed commercial paper $ 6,571 $ 11,503 Other asset-backed short-term debt 5,198 5,569 Ford Interest Advantage (b) 3,146 1,958 Other short-term debt 983 1,538 Total short-term debt 15,898 20,568 Long-term debt Unsecured debt Notes payable within one year 11,608 15,712 Notes payable after one year 33,636 37,249 Unamortized discount (558 ) (256 ) Fair value adjustment (c) 290 334 Asset-backed debt Notes payable within one year 21,503 26,501 Notes payable after one year 23,397 28,734 Total long-term debt 89,876 108,274 Total Financial Services sector $ 105,774 $ 128,842 Fair value of debt $ 105,962 $ 112,389 Total Automotive and Financial Services sectors $ 132,663 $ 153,069 Intersector elimination (d) (646 ) (492 ) Total Company $ 132,017 $ 152,577 (a) Includes unamortized discount on convertible notes per the change in the accounting standards for convertible debt instruments that, upon conversion, may be settled in cash. (b) The Ford Interest Advantage program consists of Ford Credit's 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 ac |
IMPAIRMENTS
IMPAIRMENTS | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Impairments [Abstract] | |
IMPAIRMENTS | 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 $650million relating to Volvo and $421million 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 the Financial Service's investment in DFOPartnership.DFO Partnership holds a portfolio of "non-core" diversified leveraged lease assets (e.g., railcars, aircraft, and energy facilities).Information obtained from bids was used to assist in determining a $200million fair value of the investment in DFO Partnership.As a result, during the first quarter of 2009, an other-than-temporary impairment of the investment in DFO Partnership of $141million was recorded in Financial Services equity in net income/(loss) of affiliated companies.The fair value of the investment was classified in Level 2 of our fair-value hierarchy. During the third quarter of 2009, the Financial Services se |
OTHER INCOME
OTHER INCOME (LOSS) | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Other Income (Loss) [Abstract] | |
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): Third Quarter First Nine Months 2009 2008 2009 2008 Interest income $ 47 $ 203 $ 160 $ 809 Realized and unrealized gains/(losses) on cash equivalents and marketable securities 93 (430 ) 326 (812 ) Gains/(Losses) on the sale of held-for-sale operations, equity and cost investments, and other dispositions (48 ) (15 ) (441 ) Gains/(Losses) on extinguishment of debt 8 34 4,666 107 Other* 3 (3 ) 9 (7 ) Total $ 151 $ (244 ) $ 5,146 $ (344 ) *First nine months of 2009 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): Third Quarter First Nine Months 2009 2008 2009 2008 Interest income (non-financing related) $ 22 $ 135 $ 87 $ 419 Realized and unrealized gains/(losses) on cash equivalents and marketable securities 31 34 43 (14 ) Gains/(Losses) on the sale of held-for-sale operations, equity and cost investments, and other dispositions 12 (2 ) 15 33 Gains/(Losses) on extinguishment of debt * (4 ) 73 Investment and other income related to sales of receivables (49 ) 69 (30 ) 186 Insurance premiums earned, net 20 28 76 110 Other 99 36 167 201 Total $ 131 $ 300 $ 431 $ 935 *Included in the first nine months of 2009 is a gain of $4million based on extinguishment of debt from exercise of a contractually-permitted put option. |
EMPLOYEE SEPARATION ACTIONS AND
EMPLOYEE SEPARATION ACTIONS AND EXIT AND DISPOSAL ACTIVITIES | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Employee Separation Actions and Exit and Disposal Activities [Abstract] | |
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 September30,2009 and December31,2008, the related liabilities were $76million and $411million, respectively.During the third quarter of 2009 and 2008, we recorded in Automotive cost of sales a reduction of expense of $22million and $320million, respectively.In the first nine months of 2009 and 2008, we recorded a reduction of expense of $336million and $264million, respectively. Separation Actions The costs of voluntary employee separation actions are recorded at the time of employees' acceptances, unless the acceptances require explicit approval by the Company.The costs of conditional voluntary separations are accrued when all conditions are satisfied.Payments made to employees who have separated and for which there are ongoing eligibility requirements are accrued when the requirements 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.Wehave a separation reserve established for voluntary employee separation actions recorded at the time of employees' acceptances.At September30,2009 and December31,2008, this reserve was $58million and $162million, respectively.The ending balance in the reserve primarily represents the cost of separation packages for employees who accepted separation 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. We recorded pre-tax charges in Automotive cost of sales of $15million and $45million for the third quarter of 2009 and 2008, respectively, and $111million and $236million for the first nine months of 2009 and 2008, respectively.The charges result from acceptances of voluntary employee separations actions in the periods and the ongoing costs related to continued eligibility requirements that were met by employees who were previously separated. Other Employee Separation Actions.The following table shows pre-tax charges for other hourly and salaried employee separation actions for the third quarter and first nine months of 2009 and 2008, respectively, which are recorded in Automot |
INCOME TAXES
INCOME TAXES | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Income Taxes [Abstract] | |
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 U.S. GAAP, 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 income tax provision of $196million through the first nine months of 2009, primarily resulting from the refund of prior Canadian tax payments. On September11,2009, our Board of Directors adopted a tax benefit preservation plan (the "Plan") designed to preserve shareholder value and the value of certain tax assets including net operating losses, capital losses and tax credit carryforwards ("Tax Attributes").At December31,2008, we had Tax Attributes that would offset $19billion of U.S. taxable income.Our ability to use these Tax Attributes would be substantially limited if there were an "ownership change" as defined under Section 382 of the Internal Revenue Code.In general, an ownership change would occur if 5-percent shareholders (as defined under U.S. federal income tax laws) collectively increase their ownership in Ford by more than 50percentage points over a rolling three-year period. In connection with the Plan, our Board of Directors declared a dividend of one preferred share purchase right for each share of Ford Common and Class B Stock as of the close of business on September 25, 2009.In accordance with the Plan, shares held by any person who acquires, without the approval of our Board of Directors, beneficial ownership of 4.99% or more of outstanding Ford Common Stock (including any ownership interest held by that person's affiliates and associates as defined under the Plan) could be subject to significant dilution. |
DISCONTINUED OPERATIONS HELD FO
DISCONTINUED OPERATIONS HELD FOR SALE OPERATIONS OTHER DISPOSITIONS AND ACQUISITIONS | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Discontinued Operations, Held-For-Sale Operations, Other Dispositions, and Acquisitions [Abstract] | |
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 |
AMOUNTS PER SHARE ATTRIBUTABLE
AMOUNTS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Amounts Per Share Attributable to Ford Motor Company Common and Class B Stock [Abstract] | |
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): Third Quarter First Nine Months 2009 2008 2009 2008 Basic and Diluted Income/(Loss) Attributable to Ford Motor Company Basic income/(loss) from continuing operations $ 997 $ (161 ) $ 1,826 $ (8,797 ) Effect of dilutive Convertible Notes (a)(b) 10 110 Effect of dilutive Trust Preferred Securities (a)(c) 46 Diluted income/(loss) from continuing operations $ 1,053 $ (161 ) $ 1,936 $ (8,797 ) Basic and Diluted Shares Average shares outstanding 3,260 2,280 2,887 2,236 Restricted and uncommitted-ESOP shares (1 ) (1 ) (1 ) (1 ) Basic shares 3,259 2,279 2,886 2,235 Net dilutive options and restricted and uncommitted-ESOP shares (d) 102 75 Dilutive Convertible Notes (b) 63 231 Dilutive convertible Trust Preferred Securities (c) 160 Diluted shares 3,584 2,279 3,192 2,235 (a) As applicable, includes interest expense, amortization of discount, amortization of fees, and other changes in income or loss that would result from the assumed conversion. Not included in calculation of diluted earnings per share due to their antidilutive effect: (b) 538million shares for the third quarter of 2008 and the first nine months of 2008, and the related income effect for Convertible Notes. (c) 162million shares for the third quarter of 2008, and 160million shares and 162million shares for the first nine months of 2009 and 2008, respectively, and the related income effect for Trust Preferred Securities. (d) 28million contingently-issuable shares for third quarter of 2008 and 26million contingently-issuable shares for first nine months of 2008. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Derivative Financial Instruments and Hedging Activities [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 14.DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Derivative Financial Instruments and Hedge Accounting We adopted FASB newly-issued standard for derivative instruments and hedging activities on its effective date, January1,2009.The standard 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 September30,2009 was approximately $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.In the third quarter of 2009, we began posting cash collateral with certain counterparties based on our net position with regard to foreign currency and commodity derivative contracts.As of September30,2009, we posted $19million in cash collateral related to derivative instruments, which is included in restricted cash and reported in Other assets on our consolidated balance sheet. 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 acco |
RETIREMENT BENEFITS
RETIREMENT BENEFITS | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Retirement Benefits [Abstract] | |
RETIREMENT BENEFITS | NOTE 15.RETIREMENT BENEFITS Pension and OPEB expense is summarized as follows (in millions): Third Quarter Pension Benefits* U.S. Plans Non-U.S. Plans OPEB 2009 2008 2009 2008 2009 2008 Service cost $ 85 $ 94 $ 76 $ 91 $ 102 $ 80 Interest cost 674 672 326 357 225 356 Expected return on assets (822 ) (865 ) (342 ) (382 ) (32 ) (64 ) Amortization of: Prior service costs/(credits) 94 93 22 24 (228 ) (232 ) (Gains)/Losses and Other 4 5 51 56 21 60 Separation programs 43 11 24 1 (Gain)/Loss from curtailment (1 ) (2,603 ) Net expense/(income) $ 35 $ 42 $ 144 $ 170 $ 87 $ (2,402 ) First Nine Months Pension Benefits* U.S. Plans Non-U.S. Plans OPEB 2009 2008 2009 2008 2009 2008 Service cost $ 257 $ 283 $ 215 $ 327 $ 306 $ 236 Interest cost 2,023 2,016 923 1,218 673 1,217 Expected return on assets (2,466 ) (2,597 ) (963 ) (1,374 ) (98 ) (223 ) Amortization of: Prior service costs/(credits) 281 281 62 78 (682 ) (670 ) (Gains)/Losses and Other 12 13 128 164 62 237 Separation programs 7 248 122 66 2 12 (Gain)/Loss from curtailment (4 ) (2,714 ) Net expense/(income) $ 114 $ 244 $ 487 $ 479 $ 259 $ (1,905 ) *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 nine months of 2009, we contributed $1.1billion 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 $300million 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. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Fair Value Measurements [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 16.FAIR VALUE MEASUREMENTS 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, matrix pricing models for similar assets are used. Retained Interest in Securitized Assets.Ford Credit estimates the fair value of retained interests using internal valuation models, market inputs, and its 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 may 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 September30,2009 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 at September 30, 2009 Automotive Sector Assets Cash equivalents financial instruments (a) U.S. government $ 152 $ $ $ 152 Government-sponsored enterprises 779 779 Government non U.S. 140 140 Corporate debt 1,897 1,897 Total cash equivalents financial instruments 152 2,816 2,968 Marketable securities (b) U.S. government 8,667 8,667 Government-sponsored enterprises 2,421 2 2,423 Corporate debt 519 9 528 Mortgage-backed and other asset-backed 362 31 393 Equity 895 1 896 Government non U.S. 405 2 407 Other liquid investments (c) 611 611 Total marketable securities 9,562 4,319 44 13,925 Derivative financial instruments 112 6 118 Total assets at fair value $ 9,714 $ 7,247 $ 50 $ 17,011 Liabilities |
SEGMENT INFORMATION
SEGMENT INFORMATION | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Segment Information [Abstract] | |
SEGMENT INFORMATION | NOTE 17.SEGMENT INFORMATION (In millions) Automotive Sector Ford North America Ford South America Ford Europe Ford Asia Pacific Africa Volvo Mazda Jaguar Land Rover Other Total THIRD QUARTER 2009 Sales/Revenues External customer $ 13,718 $ 2,089 $ 7,584 $ 1,484 $ 2,995 $ $ $ $ 27,870 Intersegment 65 168 8 241 Income/(Loss) Income/(Loss) before income taxes 223 241 177 21 25 (142 ) 545 THIRD QUARTER 2008 Sales/Revenues External customer $ 10,748 $ 2,712 $ 9,660 $ 1,697 $ 2,916 $ $ $ $ 27,733 Intersegment 172 174 18 364 Income/(Loss) Income/(Loss) before income taxes (36 ) 480 29 (24 ) (484 ) (1 ) (37 ) (659 ) (732 ) Financial Services Sector Total Company Ford Credit Other Financial Services Elims Total Elims * Total THIRD QUARTER 2009 Sales/Revenues External customer $ 2,937 $ 85 $ $ 3,022 $ $ 30,892 Intersegment 104 4 108 (349 ) Income/(Loss) Income/(Loss) before income taxes 677 (7 ) 670 1,215 THIRD QUARTER 2008 Sales/Revenues External customer $ 3,939 $ 74 $ $ 4,013 $ $ 31,746 Intersegment 171 2 173 (537 ) Income/(Loss) Income/(Loss) before income taxes 161 (2 ) 159 (573 ) *Includes intersector transactions occurring in the ordinary course of business. (In millions) Automotive Sector Ford North America Ford South America Ford Europe Ford Asia Pacific Africa Volvo Mazda Jaguar Land Rover Other Total FIRST NINE MONTHS 2009 Sales/Revenues External customer $ 34,705 $ 5,333 $ 20,811 $ 3,855 $ 8,523 $ $ $ $ 73,227 Intersegment 262 539 35 836 Income/(Loss) Income/(Loss) before income taxes (1,600 ) 37 |
GUARANTEES
GUARANTEES | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Guarantees [Abstract] | |
GUARANTEES | NOTE 18.GUARANTEES At September30,2009, 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 $256million and $206 million at September30,2009 and December31,2008, respectively.The carrying value of our recorded liabilities related to guarantees was $72million and $24million at September30,2009 and December31,2008, respectively.Our assessment of performance risk under these guarantees is reviewed regularly, and have resulted in no changes to our initial valuation. 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 Financing 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 September30,2009 and December31,2008, the deferred gain related to the letters of credit was $10million and $14million, respectively.We believe future performance under these letters of credit is remote. 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 |
EQUITY
EQUITY (DEFICIT) ATTRIBUTABLE TO FORD MOTOR COMPANY AND NONCONTROLLING INTERESTS | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Equity Deficit Attributable To Ford Motor Comany And Noncontrolling Interests [Abstract] | |
EQUITY/(DEFICIT) ATTRIBUTABLE TO FORD MOTOR COMPANY AND NONCONTROLLING INTERESTS | NOTE 19.EQUITY/(DEFICIT) ATTRIBUTABLE TO FORD MOTOR COMPANY AND NONCONTROLLING INTERESTS We adopted the revised standard on accounting for noncontrolling interests on January1,2009, pursuant to which noncontrolling interests are considered a component of equity.The standard also 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 the fair value option for financial assets and financial liabilities 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 ) |
Document Information
Document Information | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | 2009-09-30 |
Entity Information
Entity Information (USD $) | |||
9 Months Ended
Sep. 30, 2009 | Oct. 29, 2009
| Jun. 30, 2008
| |
Entity Information [Line Items] | |||
Entity Registrant Name | FORD MOTOR CO | ||
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 | 3,236,248,800 |