FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
(in millions)
For the Years Ended December 31, | |||||||||||
2015 | 2016 | 2017 | |||||||||
(unaudited) | |||||||||||
Financing revenue | |||||||||||
Operating leases | $ | 4,865 | $ | 5,555 | $ | 5,552 | |||||
Retail financing | 2,819 | 3,070 | 3,451 | ||||||||
Dealer financing | 1,539 | 1,760 | 1,903 | ||||||||
Other | 57 | 38 | 70 | ||||||||
Total financing revenue | 9,280 | 10,423 | 10,976 | ||||||||
Depreciation on vehicles subject to operating leases | (3,640 | ) | (4,329 | ) | (4,135 | ) | |||||
Interest expense | (2,416 | ) | (2,755 | ) | (3,175 | ) | |||||
Net financing margin | 3,224 | 3,339 | 3,666 | ||||||||
Other revenue | |||||||||||
Insurance premiums earned | 133 | 156 | 158 | ||||||||
Fee based revenue and other | — | — | 243 | ||||||||
Total financing margin and other revenue | 3,357 | 3,495 | 4,067 | ||||||||
Expenses | |||||||||||
Operating expenses | 1,139 | 1,274 | 1,295 | ||||||||
Provision for credit losses | 347 | 547 | 588 | ||||||||
Insurance expenses | 69 | 125 | 124 | ||||||||
Total expenses | 1,555 | 1,946 | 2,007 | ||||||||
Other income, net | 284 | 330 | 250 | ||||||||
Income before income taxes | 2,086 | 1,879 | 2,310 | ||||||||
Provision for / (Benefit from) income taxes | 723 | 506 | (697 | ) | |||||||
Net income | $ | 1,363 | $ | 1,373 | $ | 3,007 |
FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions)
December 31, 2016 | December 31, 2017 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 8,077 | $ | 9,558 | |||
Marketable securities | 3,280 | 2,881 | |||||
Finance receivables, net | 102,981 | 116,003 | |||||
Net investment in operating leases | 27,209 | 26,661 | |||||
Notes and accounts receivable from affiliated companies | 811 | 1,076 | |||||
Derivative financial instruments | 909 | 935 | |||||
Other assets | 2,822 | 3,329 | |||||
Total assets | $ | 146,089 | $ | 160,443 | |||
LIABILITIES | |||||||
Accounts payable | |||||||
Customer deposits, dealer reserves, and other | $ | 1,065 | $ | 1,171 | |||
Affiliated companies | 336 | 592 | |||||
Total accounts payable | 1,401 | 1,763 | |||||
Debt | 126,492 | 137,828 | |||||
Deferred income taxes | 3,230 | 2,386 | |||||
Derivative financial instruments | 166 | 310 | |||||
Other liabilities and deferred income | 1,997 | 2,272 | |||||
Total liabilities | 133,286 | 144,559 | |||||
SHAREHOLDER’S INTEREST | |||||||
Shareholder’s interest | 5,227 | 5,227 | |||||
Accumulated other comprehensive income / (loss) | (890 | ) | (419 | ) | |||
Retained earnings | 8,466 | 11,076 | |||||
Total shareholder’s interest attributable to Ford Motor Credit Company | 12,803 | 15,884 | |||||
Shareholder’s interest attributable to noncontrolling interests | — | — | |||||
Total shareholder’s interest | 12,803 | 15,884 | |||||
Total liabilities and shareholder’s interest | $ | 146,089 | $ | 160,443 |
FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
For the Years Ended December 31, | |||||||||||
2015 | 2016 | 2017 | |||||||||
(unaudited) | |||||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 1,363 | $ | 1,373 | $ | 3,007 | |||||
Adjustments to reconcile net income to net cash provided by operations | |||||||||||
Provision for credit losses | 347 | 547 | 588 | ||||||||
Depreciation and amortization | 4,465 | 5,121 | 4,928 | ||||||||
Amortization of upfront interest supplements | (1,078 | ) | (1,341 | ) | (1,686 | ) | |||||
Net change in deferred income taxes | 1,042 | 340 | (923 | ) | |||||||
Net change in other assets | 129 | (413 | ) | (606 | ) | ||||||
Net change in other liabilities | (348 | ) | 462 | 480 | |||||||
All other operating activities | (210 | ) | 142 | (123 | ) | ||||||
Net cash provided by / (used in) operating activities | $ | 5,710 | $ | 6,231 | $ | 5,665 | |||||
Cash flows from investing activities | |||||||||||
Purchases of finance receivables | (39,512 | ) | (37,494 | ) | (43,232 | ) | |||||
Principal collections of finance receivables | 31,560 | 30,924 | 37,277 | ||||||||
Purchases of operating lease vehicles | (14,355 | ) | (14,441 | ) | (12,780 | ) | |||||
Proceeds from termination of operating lease vehicles | 6,570 | 7,920 | 8,538 | ||||||||
Net change in wholesale receivables and other short-duration receivables | (5,126 | ) | (1,499 | ) | (874 | ) | |||||
Purchases of marketable securities | (12,199 | ) | (7,289 | ) | (5,899 | ) | |||||
Proceeds from sales and maturities of marketable securities | 12,704 | 6,756 | 6,316 | ||||||||
Settlements of derivatives | 210 | 215 | (117 | ) | |||||||
All other investing activities | 20 | (164 | ) | (34 | ) | ||||||
Net cash provided by / (used in) investing activities | (20,128 | ) | (15,072 | ) | (10,805 | ) | |||||
Cash flows from financing activities | |||||||||||
Proceeds from issuances of long-term debt | 48,124 | 42,971 | 44,994 | ||||||||
Principal payments on long-term debt | (31,474 | ) | (38,000 | ) | (39,372 | ) | |||||
Change in short-term debt, net | 1,229 | 3,403 | 1,195 | ||||||||
Cash distributions to parent | (250 | ) | — | (406 | ) | ||||||
All other financing activities | (101 | ) | (103 | ) | (105 | ) | |||||
Net cash provided by / (used in) financing activities | 17,528 | 8,271 | 6,306 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (403 | ) | (239 | ) | 315 | ||||||
Net increase / (decrease) in cash and cash equivalents | $ | 2,707 | $ | (809 | ) | $ | 1,481 | ||||
Cash and cash equivalents at January 1 | $ | 6,179 | $ | 8,886 | $ | 8,077 | |||||
Net increase / (decrease) in cash and cash equivalents | 2,707 | (809 | ) | 1,481 | |||||||
Cash and cash equivalents at December 31 | $ | 8,886 | $ | 8,077 | $ | 9,558 |