2017 Q4 Form 10-K Financial Statement

#000003799619000012 Filed on February 21, 2019

View on sec.gov

Income Statement

Concept 2017 Q4 2017 Q3 2017 Q2
Revenue $41.33B $36.45B $39.85B
YoY Change 6.91% 1.41% 0.93%
Cost Of Revenue $37.37B $30.28B $33.34B
YoY Change 7.34% -1.28% 2.52%
Gross Profit $3.955B $6.176B $6.511B
YoY Change 3.08% 17.08% -6.49%
Gross Profit Margin 9.57% 16.94% 16.34%
Selling, General & Admin $3.088B $2.919B $2.756B
YoY Change 8.69% 9.86% -1.01%
% of Gross Profit 78.08% 47.26% 42.33%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization
YoY Change
% of Gross Profit
Operating Expenses $3.088B $2.919B $2.756B
YoY Change 8.69% 9.86% -1.01%
Operating Profit $867.0M $3.257B $3.755B
YoY Change -12.95% 24.41% -10.15%
Interest Expense $95.00M $284.0M $277.0M
YoY Change -169.85% 19.33% 30.66%
% of Operating Profit 10.96% 8.72% 7.38%
Other Income/Expense, Net $910.0M $754.0M $732.0M
YoY Change -145.75% 1.48% 35.56%
Pretax Income $1.872B $1.770B $2.266B
YoY Change -267.59% 27.61% -21.18%
Income Tax -$132.0M $191.0M $211.0M
% Of Pretax Income -7.05% 10.79% 9.31%
Net Earnings $2.520B $1.579B $2.055B
YoY Change -418.99% 64.99% 4.31%
Net Earnings / Revenue 6.1% 4.33% 5.16%
Basic Earnings Per Share $0.40 $0.51
Diluted Earnings Per Share $629.4K $0.39 $0.51
COMMON SHARES
Basic Shares Outstanding 3.972B shares 3.977B shares
Diluted Shares Outstanding 3.996B shares 3.996B shares

Balance Sheet

Concept 2017 Q4 2017 Q3 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $38.93B $38.08B $39.11B
YoY Change 0.26% 11.46% -0.48%
Cash & Equivalents $18.49B $17.59B $16.22B
Short-Term Investments $20.44B $20.49B $22.89B
Other Short-Term Assets $3.889B $3.570B $3.291B
YoY Change 15.47% 0.51% 7.8%
Inventory $11.18B $11.26B $11.09B
Prepaid Expenses
Receivables $10.60B $10.28B $10.16B
Other Receivables $52.21B $49.54B $49.89B
Total Short-Term Assets $116.8B $112.7B $113.5B
YoY Change 7.69% 8.9% 2.5%
LONG-TERM ASSETS
Property, Plant & Equipment $35.33B $34.76B $33.79B
YoY Change 10.15% 7.76% 5.8%
Goodwill $75.00M
YoY Change 50.0%
Intangibles
YoY Change
Long-Term Investments $3.085B $3.344B $3.241B
YoY Change -6.63% -11.88% -3.22%
Other Assets $8.104B $7.041B $6.602B
YoY Change 43.28% -0.98% -4.39%
Total Long-Term Assets $141.7B $139.1B $134.5B
YoY Change 8.96% 5.83% 4.33%
TOTAL ASSETS
Total Short-Term Assets $116.8B $112.7B $113.5B
Total Long-Term Assets $141.7B $139.1B $134.5B
Total Assets $258.5B $251.8B $248.0B
YoY Change 8.38% 7.19% 3.49%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $23.28B $23.57B $23.57B
YoY Change 9.33% 7.15% 5.13%
Accrued Expenses $3.295B $3.165B $3.073B
YoY Change 8.42% 9.48% 0.69%
Deferred Revenue
YoY Change
Short-Term Debt $49.66B $19.21B $16.95B
YoY Change 223.95% 48.27% 33.07%
Long-Term Debt Due $1.960B $31.97B $33.83B
YoY Change -94.29% -6.85% 5.29%
Total Short-Term Liabilities $94.60B $94.35B $94.30B
YoY Change 4.78% 5.79% 5.47%
LONG-TERM LIABILITIES
Long-Term Debt $102.7B $97.94B $95.24B
YoY Change 10.04% 8.88% 0.19%
Other Long-Term Liabilities $24.71B $24.82B $24.84B
YoY Change 1.3% 4.93% 6.08%
Total Long-Term Liabilities $24.71B $24.82B $24.84B
YoY Change 1.3% 4.93% 6.08%
TOTAL LIABILITIES
Total Short-Term Liabilities $94.60B $94.35B $94.30B
Total Long-Term Liabilities $24.71B $24.82B $24.84B
Total Liabilities $222.8B $217.9B $215.1B
YoY Change 6.77% 7.15% 3.21%
SHAREHOLDERS EQUITY
Retained Earnings $21.91B $19.41B $18.44B
YoY Change 40.12% 14.06% 10.72%
Common Stock $21.84B $21.80B $21.74B
YoY Change 0.98% 0.95% 0.88%
Preferred Stock
YoY Change
Treasury Stock (at cost) $1.253B $1.253B $1.253B
YoY Change 11.68% 11.68% 11.68%
Treasury Stock Shares
Shareholders Equity $35.58B $33.24B $32.24B
YoY Change
Total Liabilities & Shareholders Equity $258.5B $251.3B $247.5B
YoY Change 8.63% 6.94% 3.25%

Cashflow Statement

Concept 2017 Q4 2017 Q3 2017 Q2
OPERATING ACTIVITIES
Net Income $2.520B $1.579B $2.055B
YoY Change -418.99% 64.99% 4.31%
Depreciation, Depletion And Amortization
YoY Change
Cash From Operating Activities $3.147B $4.998B $5.615B
YoY Change 12.47% -3.16% -27.47%
INVESTING ACTIVITIES
Capital Expenditures -$2.113B -$1.672B -$1.558B
YoY Change 1.59% -1.99% -8.08%
Acquisitions
YoY Change
Other Investing Activities -$4.722B -$1.991B -$3.652B
YoY Change -8.56% -53.08% 6.19%
Cash From Investing Activities -$6.835B -$3.663B -$5.210B
YoY Change -5.65% -38.43% 1.48%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 4.559B -127.0M -2.158B
YoY Change -37.46% -95.59% 67.16%
NET CHANGE
Cash From Operating Activities 3.147B 4.998B 5.615B
Cash From Investing Activities -6.835B -3.663B -5.210B
Cash From Financing Activities 4.559B -127.0M -2.158B
Net Change In Cash 871.0M 1.208B -1.753B
YoY Change -69.37% -132.95% -233.11%
FREE CASH FLOW
Cash From Operating Activities $3.147B $4.998B $5.615B
Capital Expenditures -$2.113B -$1.672B -$1.558B
Free Cash Flow $5.260B $6.670B $7.173B
YoY Change 7.83% -2.87% -23.99%

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427000000 USD
CY2017Q4 us-gaap Redeemable Noncontrolling Interest Equity Carrying Amount
RedeemableNoncontrollingInterestEquityCarryingAmount
98000000 USD
CY2018Q4 us-gaap Redeemable Noncontrolling Interest Equity Carrying Amount
RedeemableNoncontrollingInterestEquityCarryingAmount
100000000 USD
CY2016 us-gaap Repayments Of Other Debt
RepaymentsOfOtherDebt
38797000000 USD
CY2017 us-gaap Repayments Of Other Debt
RepaymentsOfOtherDebt
40770000000 USD
CY2018 us-gaap Repayments Of Other Debt
RepaymentsOfOtherDebt
44172000000 USD
CY2016 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
7300000000 USD
CY2017 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
8000000000 USD
CY2018 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
8200000000 USD
CY2017Q4 us-gaap Restricted Cash
RestrictedCash
146000000 USD
CY2018Q4 us-gaap Restricted Cash
RestrictedCash
189000000 USD
CY2017Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
21906000000 USD
CY2018Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
22668000000 USD
CY2016 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
151800000000 USD
CY2017 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
156776000000 USD
CY2018 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
160338000000 USD
CY2016 us-gaap Revenues
Revenues
151800000000 USD
CY2017Q1 us-gaap Revenues
Revenues
39146000000 USD
CY2017Q2 us-gaap Revenues
Revenues
39853000000 USD
CY2017Q3 us-gaap Revenues
Revenues
36451000000 USD
CY2017Q4 us-gaap Revenues
Revenues
41326000000 USD
CY2017 us-gaap Revenues
Revenues
156776000000 USD
CY2018Q1 us-gaap Revenues
Revenues
41959000000 USD
CY2018Q2 us-gaap Revenues
Revenues
38920000000 USD
CY2018Q3 us-gaap Revenues
Revenues
37666000000 USD
CY2018Q4 us-gaap Revenues
Revenues
41793000000 USD
CY2018 us-gaap Revenues
Revenues
160338000000 USD
CY2016 us-gaap Royalty Income Nonoperating
RoyaltyIncomeNonoperating
714000000 USD
CY2017 us-gaap Royalty Income Nonoperating
RoyaltyIncomeNonoperating
678000000 USD
CY2018 us-gaap Royalty Income Nonoperating
RoyaltyIncomeNonoperating
491000000 USD
CY2016 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
10972000000 USD
CY2017 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
11527000000 USD
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
9.89
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Total Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodTotalFairValue
157000000 USD
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Total Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodTotalFairValue
175000000 USD
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Total Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodTotalFairValue
187000000 USD
CY2018 us-gaap Share Based Compensation
ShareBasedCompensation
191000000 USD
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
13.54
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
12.37
CY2018 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
11403000000 USD
CY2016 us-gaap Share Based Compensation
ShareBasedCompensation
210000000 USD
CY2017 us-gaap Share Based Compensation
ShareBasedCompensation
246000000 USD
CY2017 us-gaap Standard And Extended Product Warranty Accrual Foreign Currency Translation Gain Loss
StandardAndExtendedProductWarrantyAccrualForeignCurrencyTranslationGainLoss
118000000 USD
CY2018 us-gaap Standard And Extended Product Warranty Accrual Foreign Currency Translation Gain Loss
StandardAndExtendedProductWarrantyAccrualForeignCurrencyTranslationGainLoss
-141000000 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
35578000000 USD
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
35932000000 USD
CY2015Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
29223000000 USD
CY2016Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
29746000000 USD
CY2017Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
35606000000 USD
CY2018Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
35966000000 USD
CY2018Q4 us-gaap Tax Credit Carryforward Amount
TaxCreditCarryforwardAmount
9200000000 USD
CY2017Q4 us-gaap Treasury Stock Value
TreasuryStockValue
1253000000 USD
CY2018Q4 us-gaap Treasury Stock Value
TreasuryStockValue
1417000000 USD
CY2016Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
1586000000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
2063000000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
2047000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
22000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
133000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
263000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
0 USD
CY2017 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
44000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
45000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
716000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
90000000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits Interest On Income Taxes Accrued
UnrecognizedTaxBenefitsInterestOnIncomeTaxesAccrued
70000000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits Interest On Income Taxes Accrued
UnrecognizedTaxBenefitsInterestOnIncomeTaxesAccrued
29000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
10000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
0 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
2000000000 USD
CY2015Q4 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
2867000000 USD
CY2016Q4 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
2054000000 USD
CY2017Q4 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
2818000000 USD
CY2018Q4 us-gaap Valuation Allowances And Reserves Balance
ValuationAllowancesAndReservesBalance
2110000000 USD
CY2016 us-gaap Valuation Allowances And Reserves Charged To Cost And Expense
ValuationAllowancesAndReservesChargedToCostAndExpense
758000000 USD
CY2017 us-gaap Valuation Allowances And Reserves Charged To Cost And Expense
ValuationAllowancesAndReservesChargedToCostAndExpense
1244000000 USD
CY2018 us-gaap Valuation Allowances And Reserves Charged To Cost And Expense
ValuationAllowancesAndReservesChargedToCostAndExpense
140000000 USD
CY2016 us-gaap Valuation Allowances And Reserves Deductions
ValuationAllowancesAndReservesDeductions
1571000000 USD
CY2017 us-gaap Valuation Allowances And Reserves Deductions
ValuationAllowancesAndReservesDeductions
480000000 USD
CY2018 us-gaap Valuation Allowances And Reserves Deductions
ValuationAllowancesAndReservesDeductions
848000000 USD
CY2016 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
3999000000 shares
CY2017 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
3998000000 shares
CY2018 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
3998000000 shares
CY2016 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
3973000000 shares
CY2017 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
3975000000 shares
CY2018 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
3974000000 shares
CY2018 us-gaap Advertising Cost Policy Expensed Advertising Cost
AdvertisingCostPolicyExpensedAdvertisingCost
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">advertising costs are reported in </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Selling, administrative, and other expenses</font><font style="font-family:Arial;font-size:10pt;">.</font></div></div><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Advertising costs are expensed as incurred.</font></div></div>
CY2018 us-gaap Financing Receivable Allowance For Credit Losses Policy For Uncollectible Amounts
FinancingReceivableAllowanceForCreditLossesPolicyForUncollectibleAmounts
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The allowance for credit losses represents our estimate of the probable credit loss inherent in finance receivables as of the balance sheet date. The adequacy of the allowance for credit losses is assessed quarterly and the assumptions and models used in establishing the allowance are evaluated regularly. Because credit losses may vary substantially over time, estimating credit losses requires a number of assumptions about matters that are uncertain. The majority of credit losses are attributable to Ford Credit&#8217;s consumer receivables portfolio. </font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Additions to the allowance for credit losses are made by recording charges to </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Ford Credit interest, operating, and other expenses</font><font style="font-family:Arial;font-size:10pt;"> on our consolidated income statement. The uncollectible portion of finance receivables are charged to the allowance for credit losses at the earlier of when an account is deemed to be uncollectible or when an account is&#160;</font><font style="font-family:Arial;font-size:10pt;color:#000000;text-decoration:none;">120</font><font style="font-family:Arial;font-size:10pt;">&#160;days delinquent, taking into consideration the financial condition of the customer, borrower, or lessee, the value of the collateral, recourse to guarantors, and other factors. </font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In the event we repossess the collateral, the receivable is charged off and we record the collateral at its estimated fair value less costs to sell and report it in </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Other assets</font><font style="font-family:Arial;font-size:10pt;"> on our consolidated balance sheet. Charge-offs on finance receivables include uncollected amounts related to principal, interest, late fees, and other allowable charges. Recoveries on finance receivables previously charged off as uncollectible are credited to the allowance for credit losses.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">Consumer </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">We estimate the allowance for credit losses on our consumer receivables using a combination of measurement models and management judgment. The models consider factors such as historical trends in credit losses and recoveries (including key metrics such as delinquencies, repossessions, and bankruptcies), the composition of the present portfolio (including vehicle brand, term, risk evaluation, and new/used vehicles), trends in historical used vehicle values, and economic conditions. Estimates from these models rely on historical information and may not fully reflect losses inherent in the present portfolio. Therefore, we may adjust the estimate to reflect management judgment regarding observable changes in recent economic trends and conditions, portfolio composition, and other relevant factors.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">We make projections of two key assumptions to assist in estimating the consumer allowance for credit losses:</font></div><div style="line-height:120%;text-align:left;text-indent:20px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Frequency - number of finance receivables contracts that are expected to default over the loss emergence period (&#8220;LEP&#8221;), measured as repossessions; and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Loss severity - expected difference between the amount a customer owes when the finance contract is charged off and the amount received, net of expenses, from selling the repossessed vehicle.</font></div></td></tr></table><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Collective Allowance for Credit Losses.</font><font style="font-family:Arial;font-size:10pt;"> The collective allowance is evaluated primarily using a collective loss-to-receivables (&#8220;LTR&#8221;) model that, based on historical experience, indicates credit losses have been incurred in the portfolio even though the particular accounts that are uncollectible cannot be specifically identified. The LTR model is based on the most recent years of history. An LTR for each product is calculated by dividing credit losses (i.e., charge-offs net of recoveries) by average net finance receivables, excluding unearned interest supplements and allowance for credit losses. The average LTR that is calculated for each product is multiplied by the end-of-period balances for that given product. </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">NOTE&#160;11.</font><font style="font-family:Arial;font-size:10pt;font-weight:bold;"> </font><font style="font-family:Arial;font-size:10pt;font-weight:bold;">FORD CREDIT ALLOWANCE FOR CREDIT LOSSES</font><font style="font-family:Arial;font-size:10pt;font-weight:bold;"> </font><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">(Continued)</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Our largest markets also use a loss projection model to estimate losses inherent in the portfolio. The loss projection model applies recent monthly performance metrics, stratified by contract type (retail or lease), contract term, and risk rating to our active portfolio to estimate the losses that have been incurred.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The LEP is an assumption within our models and represents the average amount of time between when a loss event first occurs to when it is charged off. This time period starts when the consumer begins to experience financial difficulty. It is evidenced, typically through delinquency, before eventually resulting in a charge-off. The LEP is a multiplier in the calculation of the collective consumer allowance for credit losses.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">For accounts greater than </font><font style="font-family:Arial;font-size:10pt;color:#000000;text-decoration:none;">120 days</font><font style="font-family:Arial;font-size:10pt;"> past due, the uncollectible portion is charged off, such that the remaining recorded investment is equal to the estimated fair value of the collateral less costs to sell.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Specific Allowance for Impaired Receivables</font><font style="font-family:Arial;font-size:10pt;">. Consumer receivables involved in TDRs are specifically assessed for impairment. A specific allowance is estimated based on the present value of the expected future cash flows of the receivable discounted at the contract&#8217;s original effective interest rate or the fair value of any collateral adjusted for estimated costs to sell. </font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">After establishing the collective and specific allowance for credit losses, if management believes the allowance does not reflect all losses inherent in the portfolio due to changes in recent economic trends and conditions, or other relevant factors, an adjustment is made based on management judgment.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">Non-Consumer </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">We estimate the allowance for credit losses for non-consumer receivables based on historical LTR ratios, expected future cash flows, and the fair value of collateral. </font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Collective Allowance for Credit Losses</font><font style="font-family:Arial;font-size:10pt;">. We estimate an allowance for non-consumer receivables that are not specifically identified as impaired using an LTR model for each financing product based on historical experience. This LTR is an average of the most recent historical experience and is calculated consistent with the consumer receivables LTR approach. All accounts that are specifically identified as impaired are excluded from the calculation of the non-specific or collective allowance. </font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Specific Allowance for Impaired Receivables</font><font style="font-family:Arial;font-size:10pt;">. Dealer financing is evaluated by segmenting individual loans by the risk characteristics of the loan (such as the amount of the loan, the nature of the collateral, and the financial status of the debtor). The loans are analyzed to determine whether individual loans are impaired, and a specific allowance is estimated based on the present value of the expected future cash flows of the receivable discounted at the loan&#8217;s original effective interest rate or the fair value of the collateral adjusted for estimated costs to sell.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">After establishing the collective and the specific allowance for credit losses, if management believes the allowance does not reflect all losses inherent in the portfolio due to changes in recent economic trends and conditions, or other relevant factors, an adjustment is made based on management judgment.</font></div></div>
CY2018 us-gaap Guarantees Indemnifications And Warranties Policies
GuaranteesIndemnificationsAndWarrantiesPolicies
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Guarantees and indemnifications are recorded at fair value at their inception. We regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the amount of probable payment is recorded.</font></div><div style="line-height:120%;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">We guarantee the resale value of vehicles sold in certain arrangements to daily rental companies. The maximum potential payment of </font><font style="font-family:Arial;font-size:10pt;">$995&#160;million</font><font style="font-family:Arial;font-size:10pt;"> as of </font><font style="font-family:Arial;font-size:10pt;">December&#160;31, 2018</font><font style="font-family:Arial;font-size:10pt;"> included in the table above represents the total proceeds we guarantee the rental company will receive on re-sale.&#160; Reflecting our present estimate of proceeds the rental companies will receive on resale from third parties, we have recorded </font><font style="font-family:Arial;font-size:10pt;">$311&#160;million</font><font style="font-family:Arial;font-size:10pt;"> as our best estimate of the amount we will have to pay under the guarantee.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">We also 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 2033, and guarantees will terminate on payment and/or cancellation of the underlying obligation. A payment by us would be triggered by failure of the joint venture or other third party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from a 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. </font></div><div style="line-height:120%;text-align:left;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">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 and are not limited to claims relating to any of the following: 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 generally would be triggered by a breach of terms of the contract or by a third-party claim. While some of these indemnifications are limited in nature, many of them do not limit potential payment. Therefore, we are unable to estimate a maximum amount of future payments that could result from claims made under these unlimited indemnities.</font></div></div><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Warranty and Field Service Actions</font></div><div style="line-height:120%;text-align:left;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">We accrue obligations for warranty costs and field service actions (i.e., safety recalls, emission recalls, and other product campaigns) at the time of sale using a patterned estimation model that includes historical information regarding the nature, frequency, and average cost of claims for each vehicle line by model year. Warranty and field service action obligations are reported in </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Other liabilities and deferred revenue</font><font style="font-family:Arial;font-size:10pt;">. We reevaluate the adequacy of our accruals on a regular basis. </font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">We recognize the benefit from a recovery of the costs associated with our warranty and field service actions when specifics of the recovery have been agreed with our supplier and the amount of the recovery is virtually certain. Recoveries are reported in </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Trade and other receivables</font><font style="font-family:Arial;font-size:10pt;"> and</font><font style="font-family:Arial;font-size:10pt;font-style:italic;"> Other assets.</font></div></div>
CY2018 us-gaap Revenue Recognition Leases Operating
RevenueRecognitionLeasesOperating
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Leasing Income. </font><font style="font-family:Arial;font-size:10pt;">We sell vehicles to daily rental companies with an obligation to repurchase the vehicles for a guaranteed amount, exercisable at the option of the customer. The transactions are accounted for as operating leases. Upon the transfer of vehicles to the daily rental companies, we record proceeds received in </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Other liabilities and deferred revenue. </font><font style="font-family:Arial;font-size:10pt;">The difference between the proceeds received and the guaranteed repurchase amount is recorded in </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Automotive revenues </font><font style="font-family:Arial;font-size:10pt;">over the term of the lease using a straight-line method. The cost of the vehicle is recorded in </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Net investment in operating leases</font><font style="font-family:Arial;font-size:10pt;"> on our consolidated balance sheet and the difference between the cost of the vehicle and the estimated auction value is depreciated in </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Cost of sales</font><font style="font-family:Arial;font-size:10pt;"> over the term of the lease. </font></div></div>
CY2018 us-gaap Revenue Recognition Revenue Reductions
RevenueRecognitionRevenueReductions
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Finance and Lease Incentives</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">We offer special financing and lease incentives to customers who choose to finance or lease Ford or Lincoln vehicles with Ford Credit. The cost for these incentives is included in our estimate of variable consideration when the vehicle is sold to the dealer. Ford Credit records a reduction to the finance receivable or reduces the cost of the vehicle operating lease when it records the underlying finance contract and we transfer to it the amount of the incentive on behalf of the dealer&#8217;s customer. See Note </font><font style="font-family:Arial;font-size:10pt;">1</font><font style="font-family:Arial;font-size:10pt;"> for additional information regarding transactions between Automotive and Ford Credit. </font></div></div>
CY2018 us-gaap Revenue Recognition Sales Of Services
RevenueRecognitionSalesOfServices
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Extended Service Contracts. </font><font style="font-family:Arial;font-size:10pt;">We sell separately priced service contracts that extend mechanical and maintenance coverages beyond our base warranty agreements to vehicle owners. The separately priced service contracts range from </font><font style="font-family:Arial;font-size:10pt;">12</font><font style="font-family:Arial;font-size:10pt;"> to </font><font style="font-family:Arial;font-size:10pt;">120 months</font><font style="font-family:Arial;font-size:10pt;">. We receive payment at contract inception and recognize revenue over the term of the agreement in proportion to the costs we expect to incur in satisfying the contract obligations. At January&#160;1,&#160;2017 and </font><font style="font-family:Arial;font-size:10pt;">December&#160;31,</font><font style="font-family:inherit;font-size:10pt;">&#160;</font><font style="font-family:Arial;font-size:10pt;">2017</font><font style="font-family:Arial;font-size:10pt;">, </font><font style="font-family:Arial;font-size:10pt;">$3.5 billion</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">$3.8 billion</font><font style="font-family:Arial;font-size:10pt;">, respectively, of unearned revenue associated with outstanding contracts was reported in </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Other liabilities and deferred revenue. </font><font style="font-family:Arial;font-size:10pt;">We recognized</font><font style="font-family:Arial;font-size:10pt;font-style:italic;"> </font><font style="font-family:Arial;font-size:10pt;">$1 billion</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">$1.1 billion</font><font style="font-family:Arial;font-size:10pt;"> of the unearned amounts as revenue during the years ended </font><font style="font-family:Arial;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">2018</font><font style="font-family:Arial;font-size:10pt;">, respectively. At </font><font style="font-family:Arial;font-size:10pt;">December&#160;31, 2018</font><font style="font-family:Arial;font-size:10pt;">, the unearned amount was </font><font style="font-family:Arial;font-size:10pt;">$4&#160;billion</font><font style="font-family:Arial;font-size:10pt;font-style:italic;">.</font><font style="font-family:Arial;font-size:10pt;"> We expect to recognize approximately </font><font style="font-family:Arial;font-size:10pt;">$1.2 billion</font><font style="font-family:Arial;font-size:10pt;"> of the unearned amount in </font><font style="font-family:Arial;font-size:10pt;">2019</font><font style="font-family:Arial;font-size:10pt;">, </font><font style="font-family:Arial;font-size:10pt;">$1.1&#160;billion</font><font style="font-family:Arial;font-size:10pt;"> in </font><font style="font-family:Arial;font-size:10pt;">2020</font><font style="font-family:Arial;font-size:10pt;">, and </font><font style="font-family:Arial;font-size:10pt;">$1.7 billion</font><font style="font-family:Arial;font-size:10pt;"> thereafter. </font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">We record a premium deficiency reserve to the extent we estimate the future costs associated with these contracts exceed the unrecognized revenue. Amounts paid to dealers to obtain these contracts are deferred and recorded as </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Other assets</font><font style="font-family:Arial;font-size:10pt;">. These costs are amortized to expense consistent with how the related revenue is recognized. We had a balance of </font><font style="font-family:Arial;font-size:10pt;">$232 million</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">and</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">$247 million</font><font style="font-family:Arial;font-size:10pt;"> in deferred costs as of </font><font style="font-family:Arial;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">and</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">2018</font><font style="font-family:Arial;font-size:10pt;">, respectively, and recognized </font><font style="font-family:Arial;font-size:10pt;">$63&#160;million</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">$73 million</font><font style="font-family:Arial;font-size:10pt;"> of amortization during the years ended </font><font style="font-family:Arial;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">2018</font><font style="font-family:Arial;font-size:10pt;">, respectively.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Other Revenue. </font><font style="font-family:Arial;font-size:10pt;">Other revenue consists primarily of net commissions received for serving as the agent in facilitating the sale of a third party&#8217;s products or services to our customers, payments for vehicle</font><font style="font-family:inherit;font-size:10pt;">-</font><font style="font-family:Arial;font-size:10pt;">related design and testing services we perform for others, and revenue associated with various Mobility operations. We have applied the practical expedient to recognize </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Automotive revenues</font><font style="font-family:Arial;font-size:10pt;"> for vehicle-related design and testing services over the </font><font style="font-family:Arial;font-size:10pt;">two</font><font style="font-family:Arial;font-size:10pt;"> to </font><font style="font-family:Arial;font-size:10pt;">three</font><font style="font-family:Arial;font-size:10pt;"> year term of these agreements in proportion to the amount we have the right to invoice.</font></div></div>
CY2018 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The preparation of financial statements requires us to make estimates and assumptions that affect our results. Estimates are used to account for certain items such as marketing accruals, warranty costs, employee benefit programs, etc.&#160;&#160;Estimates are based on assumptions that we believe are reasonable under the circumstances. Due to the inherent uncertainty involved with estimates, actual results may differ.</font></div></div>

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