1-3950 | 38-0549190 |
(Commission File Number) | (IRS Employer Identification No.) |
One American Road, Dearborn, Michigan | 48126 |
(Address of principal executive offices) | (Zip Code) |
Designation | Description | Method of Filing |
Exhibit 99.1 | News release dated January 7, 2016 | Filed with this Report |
Exhibit 99.2 | Revised financial information for 2013, 2014, and the first nine months of 2015 | Filed with this Report |
* | Any reference in the attached exhibit(s) to our corporate website(s) and/or other social media sites or platforms, and the contents thereof, is provided for convenience only; such websites or platforms and the contents thereof are not incorporated by reference into this Report nor deemed filed with the Securities and Exchange Commission. |
FORD MOTOR COMPANY | ||
(Registrant) | ||
Date: January 7, 2016 | By: | /s/ Corey M. MacGillivray |
Corey M. MacGillivray | ||
Assistant Secretary |
Designation | Description |
Exhibit 99.1 | News release dated January 7, 2016 |
Exhibit 99.2 | Revised financial information for 2013, 2014, and the first nine months of 2015 |
| | NEWS | ||||
www.facebook.com/ford | www.twitter.com/ford |
• | Company builds upon significant pension funding and de-risking progress made to date |
• | Mark-to-market recognizes current performance of pension and OPEB plans; no effect on cash, pension funding requirements or employees’ pension and OPEB benefits |
• | 2015 company pre-tax profit, excluding special items, will increase by $1.5 billion and is now expected to be $10 billion to $11 billion |
Contacts: | Media: | Equity Investment Community: | Fixed Income Investment Community: | Shareholder Inquiries: | ||
Whitney Eichinger | Erik Eliason | Stephen Dahle | 1.800.555.5259 or | |||
1.313.390.5565 | 1.313.594.0613 | 1.313.621.0881 | 1.313.845.8540 | |||
weiching@ford.com | fordir@ford.com | fixedinc@ford.com | stockinf@ford.com | |||
• | Decline in industry sales volume, particularly in the United States, Europe, or China, due to financial crisis, recession, geopolitical events, or other factors; |
• | Decline in Ford’s market share or failure to achieve growth; |
• | Lower-than-anticipated market acceptance of Ford’s new or existing products; |
• | Market shift away from sales of larger, more profitable vehicles beyond Ford’s current planning assumption, particularly in the United States; |
• | An increase in or continued volatility of fuel prices, or reduced availability of fuel; |
• | Continued or increased price competition resulting from industry excess capacity, currency fluctuations, or other factors; |
• | Fluctuations in foreign currency exchange rates, commodity prices, and interest rates; |
• | Adverse effects resulting from economic, geopolitical, or other events; |
• | Economic distress of suppliers that may require Ford to provide substantial financial support or take other measures to ensure supplies of components or materials and could increase costs, affect liquidity, or cause production constraints or disruptions; |
• | Work stoppages at Ford or supplier facilities or other limitations on production (whether as a result of labor disputes, natural or man-made disasters, tight credit markets or other financial distress, production constraints or difficulties, or other factors); |
• | Single-source supply of components or materials; |
• | Labor or other constraints on Ford’s ability to maintain competitive cost structure; |
• | Substantial pension and postretirement health care and life insurance liabilities impairing liquidity or financial condition; |
• | Worse-than-assumed economic and demographic experience for postretirement benefit plans (e.g., discount rates or investment returns); |
• | Restriction on use of tax attributes from tax law “ownership change;” |
• | The discovery of defects in vehicles resulting in delays in new model launches, recall campaigns, or increased warranty costs; |
• | Increased safety, emissions, fuel economy, or other regulations resulting in higher costs, cash expenditures, and/or sales restrictions; |
• | Unusual or significant litigation, governmental investigations, or adverse publicity arising out of alleged defects in products, perceived environmental impacts, or otherwise; |
• | A change in requirements under long-term supply arrangements committing Ford to purchase minimum or fixed quantities of certain parts, or to pay a minimum amount to the seller (“take-or-pay” contracts); |
• | Adverse effects on results from a decrease in or cessation or clawback of government incentives related to investments; |
• | Inherent limitations of internal controls impacting financial statements and safeguarding of assets; |
• | Cybersecurity risks to operational systems, security systems, or infrastructure owned by Ford, Ford Credit, or a third-party vendor or supplier; |
• | Failure of financial institutions to fulfill commitments under committed credit and liquidity facilities; |
• | Inability of Ford Credit to access debt, securitization, or derivative markets around the world at competitive rates or in sufficient amounts, due to credit rating downgrades, market volatility, market disruption, regulatory requirements, or other factors; |
• | Higher-than-expected credit losses, lower-than-anticipated residual values, or higher-than-expected return volumes for leased vehicles; |
• | Increased competition from banks, financial institutions, or other third parties seeking to increase their share of financing Ford vehicles; and |
• | New or increased credit, consumer, or data protection or other regulations resulting in higher costs and/or additional financing restrictions. |
Automotive Sector | |||||||||||||||||||||||
Operating Segments | Reconciling Items | ||||||||||||||||||||||
North America | Europe | Rest of World (a) | Other Automotive | Special Items | |||||||||||||||||||
Total | |||||||||||||||||||||||
For the First Nine Months Ended September 30, 2015 | |||||||||||||||||||||||
Income/(Loss) before income taxes - Previously Reported | $ | 6,607 | $ | (381 | ) | $ | (204 | ) | $ | (542 | ) | $ | 166 | $ | 5,646 | ||||||||
Elimination of (gain)/loss amortization | 579 | 478 | 2 | — | — | 1,059 | |||||||||||||||||
Other - primarily asset fair value change and inventory effects | 130 | 31 | 4 | — | — | 165 | |||||||||||||||||
Net remeasurement gain/(loss) | — | — | — | — | — | — | |||||||||||||||||
Income/(Loss) before income taxes - Automotive Sector - Revised | $ | 7,316 | $ | 128 | $ | (198 | ) | $ | (542 | ) | $ | 166 | $ | 6,870 | |||||||||
Income before income taxes - Financial Services Sector | 1,486 | ||||||||||||||||||||||
Income before income taxes | $ | 8,356 | |||||||||||||||||||||
(Provision for)/Benefit from income taxes | (2,849 | ) | |||||||||||||||||||||
(Income)/Loss attributable to noncontrolling interests | (2 | ) | |||||||||||||||||||||
Net income attributable to Ford Motor Company | $ | 5,505 | |||||||||||||||||||||
Diluted earnings per common share - Revised | $ | 1.38 | |||||||||||||||||||||
Memo: Diluted earnings per common share excluding special items | $ | 1.35 | |||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||
Income/(Loss) before income taxes - Previously Reported | $ | 6,898 | $ | (1,062 | ) | $ | (593 | ) | $ | (755 | ) | $ | (1,940 | ) | $ | 2,548 | |||||||
Elimination of (gain)/loss amortization | 481 | 411 | (1 | ) | — | — | 891 | ||||||||||||||||
Other - primarily asset fair value change and inventory effects | 64 | 53 | 3 | — | — | 120 | |||||||||||||||||
Net remeasurement gain/(loss) and other special items (b) (c) | — | — | — | — | (4,119 | ) | (4,119 | ) | |||||||||||||||
Income/(Loss) before income taxes - Automotive Sector - Revised | $ | 7,443 | $ | (598 | ) | $ | (591 | ) | $ | (755 | ) | $ | (6,059 | ) | $ | (560 | ) | ||||||
Income before income taxes - Financial Services Sector | 1,794 | ||||||||||||||||||||||
Income before income taxes | $ | 1,234 | |||||||||||||||||||||
(Provision for)/Benefit from income taxes | (4 | ) | |||||||||||||||||||||
(Income)/Loss attributable to noncontrolling interests | 1 | ||||||||||||||||||||||
Net income attributable to Ford Motor Company | $ | 1,231 | |||||||||||||||||||||
Diluted earnings per common share - Revised | $ | 0.31 | |||||||||||||||||||||
Memo: Diluted earnings per common share excluding special items | $ | 1.34 | |||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||
Income/(Loss) before income taxes - Previously Reported | $ | 8,809 | $ | (1,442 | ) | $ | 225 | $ | (656 | ) | $ | (1,568 | ) | $ | 5,368 | ||||||||
Elimination of (gain)/loss amortization | 1,054 | 443 | 2 | — | — | 1,499 | |||||||||||||||||
Other - primarily asset fair value change and inventory effects | 14 | (26 | ) | — | — | — | (12 | ) | |||||||||||||||
Net remeasurement gain/(loss) and other special items (c) | — | — | — | — | 5,844 | 5,844 | |||||||||||||||||
Income/(Loss) before income taxes - Automotive Sector - Revised | $ | 9,877 | $ | (1,025 | ) | $ | 227 | $ | (656 | ) | $ | 4,276 | $ | 12,699 | |||||||||
Income before income taxes - Financial Services Sector | 1,672 | ||||||||||||||||||||||
Income before income taxes | $ | 14,371 | |||||||||||||||||||||
(Provision for)/Benefit from income taxes | (2,425 | ) | |||||||||||||||||||||
(Income)/Loss attributable to noncontrolling interests | 7 | ||||||||||||||||||||||
Net income attributable to Ford Motor Company | $ | 11,953 | |||||||||||||||||||||
Diluted earnings per common share - Revised | $ | 2.94 | |||||||||||||||||||||
Memo: Diluted earnings per common share excluding special items | $ | 1.86 |
(a) | Includes South America, Middle East & Africa, and Asia Pacific Automotive segments. |
(b) | Included in 2014 net remeasurement gain/(loss) is a $(782) million adjustment to correct for an understatement in the year-end 2014 valuation of our U.S. pension benefit obligation previously recorded in the first quarter of 2015 and disclosed in our Quarterly Reports on Form 10-Q filed in 2015. |
(c) | Other special items include the reversal of settlement expense related to recognition of unamortized gains/losses. |
Automotive Sector | |||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||||||||||||
North America | . | ||||||||||||||||||||||||||
Income/(Loss) before income taxes - Previously Reported | $ | 2,670 | $ | 2,597 | $ | 1,340 | $ | 1,548 | $ | 1,410 | $ | 2,440 | $ | 1,500 | |||||||||||||
Elimination of (gain)/loss amortization | 192 | 193 | 194 | 120 | 121 | 120 | 120 | ||||||||||||||||||||
Other - primarily asset fair value change and inventory effects | 47 | 48 | 35 | (54 | ) | 6 | 7 | 105 | |||||||||||||||||||
Income/(Loss) before income taxes - Revised | $ | 2,909 | $ | 2,838 | $ | 1,569 | $ | 1,614 | $ | 1,537 | $ | 2,567 | $ | 1,725 | |||||||||||||
Europe | . | ||||||||||||||||||||||||||
Income/(Loss) before income taxes - Previously Reported | $ | (182 | ) | $ | (14 | ) | $ | (185 | ) | $ | (443 | ) | $ | (439 | ) | $ | 14 | $ | (194 | ) | |||||||
Elimination of (gain)/loss amortization | 160 | 156 | 162 | 99 | 104 | 105 | 103 | ||||||||||||||||||||
Other - primarily asset fair value change and inventory effects | 31 | 19 | (19 | ) | 47 | 5 | 5 | (4 | ) | ||||||||||||||||||
Income/(Loss) before income taxes - Revised | $ | 9 | $ | 161 | $ | (42 | ) | $ | (297 | ) | $ | (330 | ) | $ | 124 | $ | (95 | ) | |||||||||
Rest of World (a) | . | ||||||||||||||||||||||||||
Income/(Loss) before income taxes - Previously Reported | $ | (158 | ) | $ | (39 | ) | $ | (7 | ) | $ | (174 | ) | $ | (141 | ) | $ | (113 | ) | $ | (165 | ) | ||||||
Elimination of (gain)/loss amortization | — | 1 | 1 | (1 | ) | — | — | — | |||||||||||||||||||
Other - primarily asset fair value change and inventory effects | 2 | 1 | 1 | 1 | — | 1 | 1 | ||||||||||||||||||||
Income/(Loss) before income taxes - Revised | $ | (156 | ) | $ | (37 | ) | $ | (5 | ) | $ | (174 | ) | $ | (141 | ) | $ | (112 | ) | $ | (164 | ) | ||||||
Other Automotive | . | ||||||||||||||||||||||||||
Income/(Loss) before income taxes - Previously Reported | $ | (163 | ) | $ | (167 | ) | $ | (212 | ) | $ | (218 | ) | $ | (144 | ) | $ | (171 | ) | $ | (222 | ) | ||||||
Elimination of (gain)/loss amortization | — | — | — | — | — | — | — | ||||||||||||||||||||
Other - primarily asset fair value change and inventory effects | — | — | — | — | — | — | — | ||||||||||||||||||||
Income/(Loss) before income taxes - Revised | $ | (163 | ) | $ | (167 | ) | $ | (212 | ) | $ | (218 | ) | $ | (144 | ) | $ | (171 | ) | $ | (222 | ) | ||||||
Special Items | . | ||||||||||||||||||||||||||
Income/(Loss) before income taxes - Previously Reported | $ | 166 | $ | — | $ | — | $ | (1,177 | ) | $ | (160 | ) | $ | (481 | ) | $ | (122 | ) | |||||||||
Net remeasurement gain/(loss) and other special items (b) | — | — | — | (4,119 | ) | — | — | — | |||||||||||||||||||
Income/(Loss) before income taxes - Revised | $ | 166 | $ | — | $ | — | $ | (5,296 | ) | $ | (160 | ) | $ | (481 | ) | $ | (122 | ) | |||||||||
Total | . | ||||||||||||||||||||||||||
Income/(Loss) before income taxes - Previously Reported | $ | 2,333 | $ | 2,377 | $ | 936 | $ | (464 | ) | $ | 526 | $ | 1,689 | $ | 797 | ||||||||||||
Elimination of (gain)/loss amortization | 352 | 350 | 357 | 218 | 225 | 225 | 223 | ||||||||||||||||||||
Other - primarily asset fair value change and inventory effects | 80 | 68 | 17 | (6 | ) | 11 | 13 | 102 | |||||||||||||||||||
Special items | — | — | — | (4,119 | ) | — | — | — | |||||||||||||||||||
Income/(Loss) before income taxes - Revised | $ | 2,765 | $ | 2,795 | $ | 1,310 | $ | (4,371 | ) | $ | 762 | $ | 1,927 | $ | 1,122 |
(a) | Includes South America, Middle East & Africa, and Asia Pacific Automotive segments. |
(b) | Included in fourth quarter 2014 net remeasurement gain/(loss) is a $(782) million adjustment to correct for an understatement in the year-end 2014 valuation of our U.S. pension benefit obligation previously recorded in the first quarter of 2015 and disclosed in our Quarterly Reports on Form 10-Q filed in 2015. Other special items includes the reversal of settlement expense related to recognition of unamortized gains/losses. |
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