Exhibit 99.1
Ford Motor Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
--------------------------------
For the Periods Ended December 31, 2001 and 2000
(in millions)
Fourth Quarter Full Year
------------------------ --------------------------
2001 2000 2001 2000
--------- --------- --------- ---------
(unaudited) (unaudited)
<s> <c> <c> <c> <c>
AUTOMOTIVE
Sales $33,772 $35,107 $131,528 $141,230
Costs and expenses
Costs of sales 37,400 31,361 129,159 126,114
Selling, administrative and other expenses 2,753 2,823 9,937 9,884
------- ------- -------- --------
Total costs and expenses 40,153 34,184 139,096 135,998
Operating income (loss) (6,381) 923 (7,568) 5,232
Interest income 149 349 766 1,488
Interest expense 373 371 1,378 1,383
------- ------- ------- --------
Net interest income (expense) (224) (22) (612) 105
Equity in net income (loss) of affiliated companies (170) (6) (856) (70)
------- ------- ------- --------
Income (loss) before income taxes - Automotive (6,775) 895 (9,036) 5,267
FINANCIAL SERVICES
Revenues 7,378 7,493 30,884 28,828
Costs and expenses
Interest expense 2,139 2,544 9,470 9,519
Depreciation 2,691 2,375 10,564 9,408
Operating and other expenses 1,478 1,254 5,733 4,971
Provision for credit and insurance losses 1,528 616 3,665 1,963
------- ------- ------- --------
Total costs and expenses 7,836 6,789 29,432 25,861
------- ------- ------- --------
Income (loss) before income taxes - Financial Services (458) 704 1,452 2,967
-------- ------- ------- --------
TOTAL COMPANY
Income (loss) before income taxes (7,233) 1,599 (7,584) 8,234
Provision for income taxes (2,153) 506 (2,151) 2,705
------- ------- -------- --------
Income (loss) before minority interests (5,080) 1,093 (5,433) 5,529
Minority interests in net income of subsidiaries (12) 16 20 119
-------- ------- ------- --------
Income (loss) from continuing operations (5,068) 1,077 (5,453) 5,410
Income from discontinued operation (Note 2) - - - 309
Loss on spin-off of discontinued operation (Note 2) - - - (2,252)
-------- ------- ------- --------
Net income (loss) $(5,068) $ 1,077 $(5,453) $ 3,467
======== ======= ======= ========
Income (loss) attributable to Common and Class B Stock
after Preferred Stock dividends $(5,072) $ 1,073 $(5,468) $ 3,452
Average number of shares of Common and Class B
Stock outstanding (Note 3) 1,810 1,873 1,820 1,483
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK (Note 3)
Basic income
Income (loss) from continuing operations $ (2.81) $ 0.58 $ (3.02) $ 3.66
Income from discontinued operation - - - 0.21
Loss on spin-off of discontinued operation - - - (1.53)
------- ------- ------- ---------
Net income (loss) $ (2.81) $ 0.58 $ (3.02) $ 2.34
Diluted income
Income (loss) from continuing operations $ (2.81) $ 0.57 $ (3.02) $ 3.59
Income from discontinued operation - - - 0.21
Loss on spin-off of discontinued operation - - - (1.50)
------- ------- ------- ---------
Net income (loss) $ (2.81) $ 0.57 $ (3.02) $ 2.30
Cash dividends $ 0.15 $ 0.30 $ 1.05 $ 1.80
The accompanying notes are part of the financial statements.
Ford Motor Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
--------------------------
As of December 31, 2001 and 2000
(in millions)
2001 2000
---------------- ---------------
(unaudited)
<s> <c> <c>
ASSETS
Automotive
Cash and cash equivalents $ 4,079 $ 3,374
Marketable securities 10,949 13,116
-------- --------
Total cash and marketable securities 15,028 16,490
Receivables 2,214 4,685
Inventories (Note 4) 6,191 7,514
Deferred income taxes 2,595 2,239
Other current assets 6,155 5,318
Current receivable from Financial Services 938 1,587
-------- --------
Total current assets 33,121 37,833
Equity in net assets of affiliated companies 2,450 2,949
Net property 33,121 37,508
Deferred income taxes 5,996 3,342
Other assets 13,631 12,680
-------- --------
Total Automotive assets 88,319 94,312
Financial Services
Cash and cash equivalents 3,139 1,477
Investments in securities 628 817
Finance receivables, net 111,958 125,164
Net investment in operating leases 47,262 46,593
Other assets 21,525 12,390
Receivable from Automotive 3,712 2,637
-------- --------
Total Financial Services assets 188,224 189,078
-------- --------
Total assets $276,543 $283,390
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Automotive
Trade payables $ 15,677 $ 15,075
Other payables 4,577 4,011
Accrued liabilities 23,990 23,369
Income taxes payable - 449
Debt payable within one year 302 277
-------- --------
Total current liabilities 44,546 43,181
Long-term debt 13,492 11,769
Other liabilities 30,868 29,610
Deferred income taxes 362 353
Payable to Financial Services 3,712 2,637
-------- --------
Total Automotive liabilities 92,980 87,550
Financial Services
Payables 3,095 5,297
Debt 153,543 153,510
Deferred income taxes 9,703 8,677
Other liabilities and deferred income 7,826 7,486
Payable to Automotive 938 1,587
-------- --------
Total Financial Services liabilities 175,105 176,557
Company-obligated mandatorily redeemable preferred securities of a subsidiary
ttrust holding solely junior subordinated debentures of the Company 672 673
Stockholders' equity
Capital stock
Preferred Stock, par value $1.00 per share (aggregate liquidation preference
of $177 million) * *
Common Stock, par value $0.01 per share (1,837 million shares issued) 18 18
Class B Stock, par value $0.01 per share (71 million shares issued) 1 1
Capital in excess of par value of stock 6,001 6,174
Accumulated other comprehensive income (5,913) (3,432)
ESOP loan and treasury stock (2,823) (2,035)
Earnings retained for use in business 10,502 17,884
-------- --------
Total stockholders' equity 7,786 18,610
-------- --------
Total liabilities and stockholders' equity $276,543 $283,390
======== ========
- - - - - -
*Less than $1 million
The accompanying notes are part of the financial statements.
Ford Motor Company and Subsidiaries
CONSOLIDATED STATEMENT OF CASH FLOWS
------------------------------------
For the Years Ended December 31, 2001, 2000 and 1999
(in millions)
2001 2000 1999
-------------------------- --------------------------- ------------------------------
Financial Financial Financial
Automotive Services Automotive Services Automotive Services
----------- -------------- -------------- ------------ --------------- --------------
(unaudited)
<s> <c> <c> <c> <c> <c> <c>
Cash and cash equivalents at January 1 $ 3,374 $ 1,477 $ 2,793 $ 1,588 $ 3,143 $ 1,151
Cash flows from operating activities 10,102 13,712 18,307 15,457 14,851 12,540
Cash flows from investing activities
Capital expenditures (6,357) (651) (7,393) (955) (7,069) (590)
Acquisitions of other companies (1,998) (737) (2,662) (112) (5,763) (144)
Acquisitions of receivables and lease
Investments - (96,505) - (96,512) - (80,422)
Collections of receivables and lease
Investments
Investments - 47,288 - 54,290 - 46,646
Net acquisitions of daily rental vehicles - (1,412) - (2,107) - (1,739)
Purchases of securities (11,924) (734) (5,395) (564) (3,609) (900)
Sales and maturities of securities 11,830 759 4,938 557 2,352 1,100
Proceeds from sales of receivables and
lease investments
lease investments - 41,419 - 19,439 - 9,931
Net investing activity with
Financial Services
Financial Services 186 - 645 - 1,329 -
Other 367 250 - (320) (70) 119
-------- -------- -------- -------- -------- --------
Net cash used in investing activities (7,896) (10,323) (9,867) (26,284) (12,830) (25,999)
Cash flows from financing activities
Cash dividends
Cash dividends (1,929) - (2,751) - (2,290) -
Issuance of Common Stock 453 - 592 - 274 -
Purchase of Ford treasury stock (1,838) - (1,821) - (707) -
Changes in short-term debt 38 (18,311) (776) (6,406) (429) 5,547
Proceeds from issuance of other debt 2,088 44,129 2,363 37,086 3,143 37,184
Principal payments on other debt (1,122) (26,135) (1,277) (17,158) (821) (28,672)
Value Enhancement Plan payments - - (5,555) - - -
Net debt repayments from discontinued
Operation - - 650 - - -
Net cash distribution to
discontinued operation - - (85) - - -
Net financing activity with Automotive - (186) - (645) - (1,329)
Other 261 (424) 139 (585) (127) 88
-------- -------- -------- -------- -------- --------
Net cash (used in)/provided by
financing activities
financing activities ( 2,049) (927) (8,521) 12,292 (957) 12,818
Effect of exchange rate changes on c (101) (151) (55) (859) (57) (279)
Net transactions with Automotive/
Financial Services
Financial Services 649 (649) 717 (717) (1,357) 1,357
-------- -------- -------- -------- -------- --------
Net increase/(decrease) in cash and
cash
equivalents
cash equivalents 705 1,662 581 (111) (350) 437
-------- -------- -------- -------- --------- --------
Cash and cash equivalents at December 31 $ 4,079 $ 3,139 $ 3,374 $ 1,477 $ 2,793 $ 1,588
======== ======== ======== ======== ======== ========
The accompanying notes are part of the financial statements.
Ford Motor Company and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(unaudited)
1. Financial Statements - The financial data presented herein are unaudited,
but in the opinion of management reflect those adjustments, consisting only
of normal recurring adjustments, necessary for a fair statement of such
information. Reference should be made to the financial statements contained
in the registrant's 2000 Annual Report on Form 10-K for the year ended
December 31, 2000. For purposes of Notes to Financial Statements, "Ford" or
the "Company" means Ford Motor Company and its majority owned subsidiaries
unless the context requires otherwise. Certain amounts for prior periods
were reclassified to conform with present period presentation.
2. Discontinued Operation - On June 28, 2000, we distributed our 100%
ownership interest in Visteon Corporation, our former automotive components
subsidiary, by means of a tax-free spin-off in the form of a dividend on
Ford Common and Class B Stock. The total value of the distribution was $2.1
billion for an after-tax loss of $2.3 billion. This loss represented the
excess of the carrying value of our net investment over the market value on
the distribution date. Our financial statements reflect Visteon as a
"discontinued operation" for all periods shown.
In connection with the spin-off of Visteon, certain people working for
Visteon remain Ford employees, with Visteon reimbursing Ford for the
expenses, and Ford retaining certain pension and postretirement benefit
obligations for qualified employees that are working or who have worked for
Visteon.
Visteon's revenues, not included in Ford's revenues, totaled $10.5 billion
and $19.4 billion for the years ended December 31, 2000 and 1999. Income
from discontinued operations for the years ended December 31, 2000 and 1999
is reported net of income tax expense of $182 million and $422 million.
3. Income Per Share of Common and Class B Stock - The calculation of diluted
income per share of Common and Class B Stock takes into account the effect
of obligations, such as stock options, considered to be potentially
dilutive. Basic and diluted income per share were calculated using the
following (in millions):
Fourth Quarter Full Year
------------------------- -----------------------
2001 2000 2001 2000
---------- ---------- ---------- ---------
<s> <c> <c> <c> <c>
Average shares outstanding 1,812 1,873 1,820 1,483
Issuable and uncommitted ESOP shares (5) (13) (9) (9)
----- ----- ----- -----
Basic shares 1,807 1,860 1,811 1,474
Contingently issuable shares (1) (1)
Net dilutive effect of options a/ - 35 - 30
----- ----- ----- -----
Diluted shares 1,806 1,895 1,810 1,504
===== ===== ===== =====
- - - - -
a/ Incremental shares relating to stock options of 30 million were not
included in the calculation of diluted EPS for 2001 due to their
antidilutive effect.
4. Inventories - Automotive Sector - Inventories at December 31 were as follows
(in millions):
2001 2000
--------------- -------------
<s> <c> <c>
Raw materials, work-in-process and supplies $ 2,436 $ 3,284
Finished products 4,660 5,325
------- -------
Total inventories at FIFO $ 7,096 $ 8,609
Less LIFO adjustment (905) (1,095)
------- -------
Total Inventories $ 6,191 $ 7,514
======= =======
Inventories are stated at lower of cost or market. About one-third of
inventories were determined under the last-in, first-out method. Reduction
of FIFO inventory in 2001 resulted in a decrement of a base year LIFO
layer, reducing cost of sales by $63 million.
5. Derivative Financial Instruments - We adopted Statement of Financial
Accounting Standard ("SFAS") 133, Accounting for Derivative Instruments and
Hedging Activities, as amended, on January 1, 2001. Our operations are
exposed to global market risks, including the effect of changes in currency
exchange rates, commodity prices, and interest rates. We use derivatives to
manage these financial exposures as an integral part of our overall risk
management program. We do not use derivatives for speculative purposes. We
recognize fair value hedges through earnings and cash flow hedges through
other comprehensive income. In prior years, gains and losses on currency and
interest rate derivatives were deferred and recognized through earnings with
the related underlying transactions.
Exchange rate risk is managed by use of foreign currency agreements,
including forward contracts, swaps, and options. Commodity price risk is
managed by use of forward price contracts and options. Exchange rate and
commodity risk derivatives are primarily accounted for as cash flow hedges
and generally mature in 3 years or less, with a maximum maturity of 8 years.
Interest rate risk is managed by entering into interest rate swap agreements
to change the interest rate characteristics of our debt (primarily used in
the Financial Services sector) to match the interest rate characteristics of
related assets. These interest rate derivatives are designated as either
cash flow or fair value hedges. In addition, we use forward contracts to
hedge certain net investments in foreign operations and hold other
derivatives that presently do not qualify for hedge accounting treatment
under SFAS 133. During the fourth quarter of 2001, we reevaluated our plans
with respect to certain forward purchase commitments for various commodities
that were previously excluded from the scope of SFAS 133 and determined that
they no longer qualify for exclusion. Accordingly, we recorded a
mark-to-market adjustment of $450 million as of December 31, 2001.
Derivatives accounted for as cash flow hedges comprise most of the balance
of SFAS 133 activity reported as a part of stockholders' equity.
Adjustments to income and to stockholders' equity for the quarter and at
December 31, 2001, were (in millions):
Automotive Financial Services Total Company
--------------------- ---------------------- ------------------------
Fourth Full Fourth Full Fourth Full
Quarter Year Quarter Year Quarter Year
--------- ---------- ---------- ---------- ------------ -----------
<s> <c> <c> <c> <c> <c> <c>
Income before income taxes a/ $(454) $(588) $(160) (251) $ (614) $ (839)
Net income (295) (387) (99) (157) (394) (544)
Stockholders' equity b/ 28 (1,099)
a/ Automotive recorded in cost of sales; Financial Services recorded in
operating and other expenses
b/ Recorded in accumulated other comprehensive income
The $1,099 million recorded in stockholders' equity is comprised of amounts
remaining from the $550 million transition adjustment on January 1, 2001 and
net losses on derivative instruments for the year (net of $144 million of
such amounts reclassified to income (loss) during the year). We expect to
reclassify losses of $289 million ($96 million relates to transition
adjustment) from stockholders' equity to net income during the next twelve
months. These amounts are net of tax impact.
6. Summary Quarterly Financial Data
--------------------------------
(in millions, except amounts per share)
2001 2000
------------------------------------------- ---------------------------------------
First Second Third Fourth First Second Third Fourth
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
--------- ----------- ---------- ---------- --------- --------- --------- ---------
<s> <c> <c> <c> <c> <c> <c> <c>
Automotive
Sales $34,650 $34,552 $28,554 $33,772 $36,175 $37,366 $32,582 $35,107
Operating income (loss) 1,329 (1,432) (1,084) (6,381) 2,322 1,413 574 923
Financial Services
Revenues 7,796 7,762 7,948 7,378 6,729 7,133 7,473 7,493
Income (loss) before income
taxes 594 690 626 (458) 643 764 856 704
Total Company
Income (loss) from
continuing operations 1,059 (752) (692) (5,068) 1,932 1,513 888 1,077
Common and Class B per share
Basic income (loss) from
continuing operations $ 0.58 $ (0.42) $ (0.39) $ (2.81) $ 1.61 $ 1.26 $ 0.54 $ 0.58
Diluted (loss) income from
continuing operations a/ 0.56 (0.42) (0.39) (2.81) 1.58 1.24 0.53 0.57
a/ Diluted earnings per share amounts have been revised to
account for the antidilutive effect of stock options.