(Mark One) | |
R | Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the fiscal year ended December 31, 2016 | |
or | |
o | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the transition period from __________ to __________ | |
Commission file number 1-3950 |
Delaware | 38-0549190 |
(State of incorporation) | (I.R.S. Employer Identification No.) |
One American Road, Dearborn, Michigan | 48126 |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered* | |
Common Stock, par value $.01 per share | New York Stock Exchange |
Document | Where Incorporated | |
Proxy Statement* | Part III (Items 10, 11, 12, 13, and 14) |
* | As stated under various Items of this Report, only certain specified portions of such document are incorporated by reference in this Report. |
• | Report of Independent Registered Public Accounting Firm. |
• | Consolidated Income Statement for the years ended December 31, 2014, 2015, and 2016. |
• | Consolidated Statement of Comprehensive Income for the years ended December 31, 2014, 2015, and 2016. |
• | Consolidated Balance Sheet at December 31, 2015 and 2016. |
• | Consolidated Statement of Cash Flows for the years ended December 31, 2014, 2015, and 2016. |
• | Consolidated Statement of Equity for the years ended December 31, 2014, 2015, and 2016. |
• | Notes to the Financial Statements. |
Designation | Description |
Schedule II | Valuation and Qualifying Accounts |
Designation | Description | Method of Filing | ||
Exhibit 3-A | Restated Certificate of Incorporation, dated August 2, 2000. | Filed as Exhibit 3-A to our Annual Report on Form 10-K for the year ended December 31, 2000.* | ||
Exhibit 3-A-1 | Certificate of Designation of Series A Junior Participating Preferred Stock filed on September 11, 2009. | Filed as Exhibit 3.1 to our Current Report on Form 8-K filed September 11, 2009.* | ||
Exhibit 3-B | By-laws. | Filed as Exhibit 3.2 to our Form 8-A/A filed on September 11, 2015.* | ||
Exhibit 4-A | Tax Benefit Preservation Plan (“TBPP”) dated September 11, 2009 between Ford Motor Company and Computershare Trust Company, N.A. | Filed as Exhibit 4.1 to our Current Report on Form 8-K filed September 11, 2009.* | ||
Exhibit 4-A-1 | Amendment No. 1 to TBPP dated September 11, 2012. | Filed as Exhibit 4 to our Current Report on Form 8-K filed September 12, 2012.* | ||
Exhibit 4-A-2 | Amendment No. 2 to TBPP dated September 9, 2015. | Filed as Exhibit 4.3 to our Current Report on Form 8-K filed September 11, 2015.* | ||
Exhibit 10-A | Executive Separation Allowance Plan as amended and restated effective as of January 1, 2012** | Filed as Exhibit 10-A to our Annual Report on Form 10-K for the year ended December 31, 2012.* | ||
Exhibit 10-B | Deferred Compensation Plan for Non-Employee Directors, as amended and restated as of January 1, 2012.** | Filed as Exhibit 10-B to our Annual Report on Form 10-K for the year ended December 31, 2011.* | ||
Exhibit 10-C | 2014 Stock Plan for Non-Employee Directors** | Filed as Exhibit 10-C to our Annual Report on Form 10-K for the year ended December 31, 2013.* | ||
Exhibit 10-D | Benefit Equalization Plan, as amended and restated as of January 1, 2012.** | Filed as Exhibit 10-C to our Annual Report on Form 10-K for the year ended December 31, 2012.* | ||
Exhibit 10-E | Description of financial counseling services provided to certain executives.** | Filed as Exhibit 10-F to our Annual Report on Form 10-K for the year ended December 31, 2002.* |
Designation | Description | Method of Filing | ||
Exhibit 10-F | Supplemental Executive Retirement Plan, amended and restated effective as of January 1, 2013.** | Filed as Exhibit 10-E to our Annual Report on Form 10-K for the year ended December 31, 2012.* | ||
Exhibit 10-F-1 | Defined Contribution Supplemental Executive Retirement Plan, effective January 1, 2013.** | Filed as Exhibit 10-E-1 to our Annual Report on Form 10-K for the year ended December 31, 2012.* | ||
Exhibit 10-G | Description of Director Compensation as of July 13, 2006.** | Filed as Exhibit 10-G-3 to our Quarterly Report on Form 10-Q for the quarter ended September 30, 2006.* | ||
Exhibit 10-G-1 | Amendment to Description of Director Compensation as of February 8, 2012.** | Filed as Exhibit 10-F-3 to our Annual Report on Form 10-K for the year ended December 31, 2011.* | ||
Exhibit 10-G-2 | Amendment to Description of Director Compensation as of July 1, 2013.** | Filed as Exhibit 10-G-2 to our Annual Report on Form 10-K for the year ended December 31, 2013.* | ||
Exhibit 10-G-3 | Amendment to Description of Director Compensation as of January 1, 2017.** | Filed with this Report.# | ||
Exhibit 10-H | 2008 Long-Term Incentive Plan.** | Filed as Exhibit 10.1 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2008.* | ||
Exhibit 10-I | Description of Matching Gift Program and Vehicle Evaluation Program for Non-Employee Directors.** | Filed as Exhibit 10-I to our Annual Report on Form 10-K/A for the year ended December 31, 2005.* | ||
Exhibit 10-J | Non-Employee Directors Life Insurance and Optional Retirement Plan as amended and restated as of December 31, 2010.** | Filed as Exhibit 10-I to our Annual Report on Form 10-K for the year ended December 31, 2010.* | ||
Exhibit 10-K | Description of Non-Employee Directors Accidental Death, Dismemberment and Permanent Total Disablement Indemnity.** | Filed as Exhibit 10-S to our Annual Report on Form 10-K for the year ended December 31, 1992.* | ||
Exhibit 10-K-1 | Description of Amendment to Basic Life Insurance and Accidental Death & Dismemberment Insurance.** | Filed as Exhibit 10-K-1 to our Annual Report on Form 10-K for the year ended December 31, 2013.* | ||
Exhibit 10-L | Description of Compensation Arrangements for Mark Fields.** | Filed as Exhibit 10-L to our Annual Report on Form 10-K for the year ended December 31, 2014.* | ||
Exhibit 10-M | Select Retirement Plan, amended and restated effective as of January 1, 2014.** | Filed as Exhibit 10-M to our Annual Report on Form 10-K for the year ended December 31, 2013.* | ||
Exhibit 10-N | Deferred Compensation Plan, as amended and restated as of December 31, 2010.** | Filed as Exhibit 10-M to our Annual Report on Form 10-K for the year ended December 31, 2010.* | ||
Exhibit 10-N-1 | Suspension of Open Enrollment in Deferred Compensation Plan.** | Filed as Exhibit 10-M-1 to our Annual Report on Form 10-K for the year ended December 31, 2009.* | ||
Exhibit 10-O | Annual Incentive Compensation Plan, as amended and restated as of March 1, 2008.** | Filed as Exhibit 10.2 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2008.* | ||
Exhibit 10-O-1 | Amendment to the Ford Motor Company Annual Incentive Compensation Plan (effective as of December 31, 2008).** | Filed as Exhibit 10-N-1 to our Annual Report on Form 10-K for the year ended December 31, 2008.* | ||
Exhibit 10-O-2 | Annual Incentive Compensation Plan Metrics for 2015.** | Filed as Exhibit 10-O-5 to our Annual Report on Form 10-K for the year ended December 31, 2014.* | ||
Exhibit 10-O-3 | Annual Incentive Compensation Plan Metrics for 2016.** | Filed as Exhibit 10-O-4 to our Annual Report on Form 10-K for the year ended December 31, 2015.* | ||
Exhibit 10-O-4 | Annual Incentive Compensation Plan Metrics for 2017.** | Filed with this Report.# | ||
Exhibit 10-O-5 | Performance-Based Restricted Stock Unit Metrics for 2012.** | Filed as Exhibit 10-N-9 to our Annual Report on Form 10-K for the year ended December 31, 2011.* | ||
Exhibit 10-O-6 | Performance-Based Restricted Stock Unit Metrics for 2013.** | Filed as Exhibit 10-N-9 to our Annual Report on Form 10-K for the year ended December 31, 2012.* | ||
Exhibit 10-O-7 | Performance-Based Restricted Stock Unit Metrics for 2014.** | Filed as Exhibit 10-O-9 to our Annual Report on Form 10-K for the year ended December 31, 2013.* | ||
Exhibit 10-O-8 | Performance-Based Restricted Stock Unit Metrics for 2015.** | Filed as Exhibit 10-O-11 to our Annual Report on Form 10-K for the year ended December 31, 2014.* | ||
Exhibit 10-O-9 | Performance-Based Restricted Stock Unit Metrics for 2016.** | Filed as Exhibit 10-O-9 to our Annual Report on Form 10-K for the year ended December 31, 2015.* | ||
Exhibit 10-O-10 | Performance-Based Restricted Stock Unit Metrics for 2017.** | Filed with this Report.# | ||
Exhibit 10-O-11 | Executive Compensation Recoupment Policy.** | Filed as Exhibit 10-N-8 to our Annual Report on Form 10-K for the year ended December 31, 2010.* | ||
Exhibit 10-O-12 | Incremental Bonus Description.** | Filed as Exhibit 10-N-9 to our Annual Report on Form 10-K for the year ended December 31, 2010.* | ||
Exhibit 10-P | 1998 Long-Term Incentive Plan, as amended and restated effective as of January 1, 2003.** | Filed as Exhibit 10-R to our Annual Report on Form 10-K for the year ended December 31, 2002.* | ||
Exhibit 10-P-1 | Amendment to Ford Motor Company 1998 Long-Term Incentive Plan (effective as of January 1, 2006).** | Filed as Exhibit 10-P-1 to our Annual Report on Form 10-K/A for the year ended December 31, 2005.* | ||
Exhibit 10-P-2 | Form of Stock Option Agreement (NQO) with Terms and Conditions.** | Filed as Exhibit 10-P-2 to our Annual Report on Form 10-K/A for the year ended December 31, 2005.* |
Designation | Description | Method of Filing | |||
Exhibit 10-P-3 | Form of Stock Option (NQO) Terms and Conditions for 2008 Long-Term Incentive Plan.** | Filed as Exhibit 10-O-3 to our Annual Report on Form 10-K for the year ended December 31, 2008.* | |||
Exhibit 10-P-4 | Form of Stock Option (NQO) Agreement for 2008 Long-Term Incentive Plan.** | Filed as Exhibit 10-O-4 to our Annual Report on Form 10-K for the year ended December 31, 2008.* | |||
Exhibit 10-P-5 | Form of Stock Option Agreement (ISO) with Terms and Conditions.** | Filed as Exhibit 10-P-3 to our Annual Report on Form 10-K/A for the year ended December 31, 2005.* | |||
Exhibit 10-P-6 | Form of Stock Option (ISO) Terms and Conditions for 2008 Long-Term Incentive Plan.** | Filed as Exhibit 10-O-6 to our Annual Report on Form 10-K for the year ended December 31, 2008.* | |||
Exhibit 10-P-7 | Form of Stock Option Agreement (ISO) for 2008 Long-Term Incentive Plan.** | Filed as Exhibit 10-O-7 to our Annual Report on Form 10-K for the year ended December 31, 2008.* | |||
Exhibit 10-P-8 | Form of Stock Option Agreement (U.K. NQO) with Terms and Conditions.** | Filed as Exhibit 10-P-4 to our Annual Report on Form 10-K/A for the year ended December 31, 2005.* | |||
Exhibit 10-P-9 | Form of Stock Option (U.K.) Terms and Conditions for 2008 Long-Term Incentive Plan.** | Filed as Exhibit 10-O-9 to our Annual Report on Form 10-K for the year ended December 31, 2009.* | |||
Exhibit 10-P-10 | Form of Stock Option Agreement (U.K.) for 2008 Long-Term Incentive Plan.** | Filed as Exhibit 10-O-10 to our Annual Report on Form 10-K for the year ended December 31, 2009.* | |||
Exhibit 10-P-11 | Form of Restricted Stock Grant Letter.** | Filed as Exhibit 10-O-14 to our Annual Report on Form 10-K for the year ended December 31, 2008.* | |||
Exhibit 10-P-12 | Form of Restricted Stock Grant Letter as of January 1, 2011.** | Filed as Exhibit 10-O-12 to our Annual Report on Form 10-K for the year ended December 31, 2010.* | |||
Exhibit 10-P-13 | Form of Final Award Notification Letter for Performance-Based Restricted Stock Units.** | Filed as Exhibit 10-P-13 to our Annual Report on Form 10-K for the year ended December 31, 2015.* | |||
Exhibit 10-P-14 | Form of Performance-Based Restricted Stock Unit Opportunity Letter (2008 Long-Term Incentive Plan).** | Filed as Exhibit 10-P-14 to our Annual Report on Form 10-K for the year ended December 31, 2015.* | |||
Exhibit 10-P-15 | 2008 Long-Term Incentive Plan Restricted Stock Unit Agreement.** | Filed as Exhibit 10-O-22 to our Annual Report on Form 10-K for the year ended December 31, 2008.* | |||
Exhibit 10-P-16 | 2008 Long-Term Incentive Plan Restricted Stock Unit Terms and Conditions.** | Filed as Exhibit 10-P-16 to our Annual Report on Form 10-K for the year ended December 31, 2015.* | |||
Exhibit 10-P-17 | Form of Final Award Agreement for Performance-Based Restricted Stock Units under 2008 Long-Term Incentive Plan.** | Filed as Exhibit 10-O-26 to our Annual Report on Form 10-K for the year ended December 31, 2008.* | |||
Exhibit 10-P-18 | Form of Final Award Terms and Conditions for Performance-Based Restricted Stock Units under 2008 Long-Term Incentive Plan.** | Filed as Exhibit 10-P-18 to our Annual Report on Form 10-K for the year ended December 31, 2015.* | |||
Exhibit 10-P-19 | Form of Notification Letter for Time-Based Restricted Stock Units.** | Filed as Exhibit 10-P-19 to our Annual Report on Form 10-K for the year ended December 31, 2015.* | |||
Exhibit 10-Q | Agreement dated January 13, 1999 between Ford Motor Company and Edsel B. Ford II.** | Filed as Exhibit 10-X to our Annual Report on Form 10-K for the year ended December 31, 1998.* | |||
Exhibit 10-Q-1 | Amendment dated May 5, 2010 to the Consulting Agreement between Ford Motor Company and Edsel B. Ford II.** | Filed as Exhibit 10.3 to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2010.* | |||
Exhibit 10-Q-2 | Amendment dated January 1, 2012 to the Consulting Agreement between Ford Motor Company and Edsel B. Ford II.** | Filed as Exhibit 10-P-2 to our Annual Report on Form 10-K for the year ended December 31, 2011.* | |||
Exhibit 10-R | Amended and Restated Relationship Agreement dated April 30, 2015 between Ford Motor Company and Ford Motor Credit Company LLC. | Filed as Exhibit 10.2 to our Current Report on Form 8-K filed May 1, 2015.* | |||
Exhibit 10-S | Form of Trade Secrets/Non-Compete Statement between Ford and certain of its Executive Officers.** | Filed as Exhibit 10-V to our Annual Report on Form 10-K for the year ended December 31, 2003.* | |||
Exhibit 10-T | Arrangement between Ford Motor Company and William C. Ford, Jr., dated February 25, 2009.** | Filed as Exhibit 10-V to our Annual Report on Form 10-K for the year ended December 31, 2008.* | |||
Exhibit 10-U | 2015 Incentive Compensation Grants - Exclusion of Pension & OPEB Accounting Change.** | Filed as Exhibit 10-U to our Annual Report on Form 10-K for the year ended December 31, 2015.* | |||
Exhibit 10-V | Description of Company Practices regarding Club Memberships for Executives.** | Filed as Exhibit 10-BB to our Annual Report on Form 10-K for the year ended December 31, 2006.* | |||
Exhibit 10-W | Accession Agreement between Ford Motor Company and James D. Farley, Jr. as of October 9, 2007.** | Filed as Exhibit 10-W to our Annual Report on Form 10-K for the year ended December 31, 2012.* | |||
Exhibit 10-W-1 | Form of James D. Farley, Jr. Agreement Amendment, effective as of October 12, 2008.** | Filed as Exhibit 10-W-1 to our Annual Report on Form 10-K for the year ended December 31, 2012.* | |||
Exhibit 10-X | Amended and Restated Credit Agreement dated as of November 24, 2009. | Filed as Exhibit 99.2 to our Current Report on Form 8-K filed November 25, 2009.* | |||
Exhibit 10-X-1 | Seventh Amendment dated as of March 15, 2012 to our Credit Agreement dated as of December 15, 2006, as amended and restated as of November 24, 2009, and as further amended. | Filed as Exhibit 99.2 to our Current Report on Form 8-K filed March 15, 2012.* |
Designation | Description | Method of Filing | ||
Exhibit 10-X-2 | Ninth Amendment dated as of April 30, 2013 to our Credit Agreement dated as of December 15, 2006, as amended and restated as of November 24, 2009, and as further amended. | Filed as Exhibit 10 to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2013.* | ||
Exhibit 10-X-3 | Tenth Amendment dated as of April 30, 2014 to our Credit Agreement dated as of December 15, 2006, as amended and restated as of November 24, 2009, and as further amended. | Filed as Exhibit 10.1 to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2014.* | ||
Exhibit 10-X-4 | Eleventh Amendment dated as of April 30, 2015 to our Credit Agreement dated as of December 15, 2006, as amended and restated as of November 24, 2009, as amended and restated as of April 30, 2014, and as further amended, including the Third Amended and Restated Credit Agreement. | Filed as Exhibit 10.1 to our Current Report on Form 8-K filed May 1, 2015.* | ||
Exhibit 10-X-5 | Twelfth Amendment dated as of April 29, 2016 to our Credit Agreement dated as of December 15, 2006, as amended and restated as of November 24, 2009, as amended and restated as of April 30, 2014, and as further amended and restated as of April 30, 2015. | Filed as Exhibit 10 to our Current Report on Form 8-K filed April 29, 2016.* | ||
Exhibit 10-Y | Loan Arrangement and Reimbursement Agreement between Ford Motor Company and the U.S. Department of Energy dated as of September 16, 2009. | Filed as Exhibit 10.1 to our Current Report on Form 8-K filed September 22, 2009.* | ||
Exhibit 10-Z | Note Purchase Agreement dated as of September 16, 2009 among the Federal Financing Bank, Ford Motor Company, and the U.S. Secretary of Energy. | Filed as Exhibit 10.2 to our Current Report on Form 8-K filed September 22, 2009.* | ||
Exhibit 12 | Calculation of Ratio of Earnings to Fixed Charges. | Filed with this Report.# | ||
Exhibit 21 | List of Subsidiaries of Ford as of January 31, 2017. | Filed with this Report.# | ||
Exhibit 23 | Consent of Independent Registered Public Accounting Firm. | Filed with this Report.# | ||
Exhibit 23.1 | Consent of Independent Accountants regarding opinion in Exhibit 99. | Filed with this Report.## | ||
Exhibit 24 | Powers of Attorney. | Filed with this Report.# | ||
Exhibit 31.1 | Rule 15d-14(a) Certification of CEO. | Filed with this Report.# | ||
Exhibit 31.2 | Rule 15d-14(a) Certification of CFO. | Filed with this Report.# | ||
Exhibit 31.3 | Rule 15d-14(a) Certification of CEO. | Filed with this Report.## | ||
Exhibit 31.4 | Rule 15d-14(a) Certification of CFO. | Filed with this Report.## | ||
Exhibit 32.1 | Section 1350 Certification of CEO. | Furnished with this Report.# | ||
Exhibit 32.2 | Section 1350 Certification of CFO. | Furnished with this Report.# | ||
Exhibit 32.3 | Section 1350 Certification of CEO. | Furnished with this Report.## | ||
Exhibit 32.4 | Section 1350 Certification of CFO. | Furnished with this Report.## | ||
Exhibit 99 | Financial Statements of Changan Ford Automobile Corporation Limited. | Filed with this Report.## | ||
Exhibit 101.INS | XBRL Instance Document. | ***# | ||
Exhibit 101.SCH | XBRL Taxonomy Extension Schema Document. | ***# | ||
Exhibit 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | ***# | ||
Exhibit 101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | ***# | ||
Exhibit 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | ***# | ||
Exhibit 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | ***# |
# | Incorporated by reference to the corresponding exhibit to the Original 10-K. |
## | Filed or furnished with the Amended 10-K. |
* | Incorporated by reference as an exhibit to this Report (file number reference 1-3950, unless otherwise indicated). |
** | Management contract or compensatory plan or arrangement. |
By: | /s/ John Lawler |
John Lawler, Vice President and Controller | |
(principal accounting officer) | |
Date: | March 29, 2017 |
1. | I have reviewed this Annual Report on Form 10-K/A for the period ended December 31, 2016 of Ford Motor Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report. |
Dated: | March 29, 2017 | /s/ Mark Fields |
Mark Fields | ||
President and Chief Executive Officer |
1. | I have reviewed this Annual Report on Form 10-K/A for the period ended December 31, 2016 of Ford Motor Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report. |
Dated: | March 29, 2017 | /s/ Bob Shanks |
Bob Shanks | ||
Executive Vice President and | ||
Chief Financial Officer |
1. | The Company’s Annual Report on Form 10-K/A for the period ended December 31, 2016, to which this statement is furnished as an exhibit (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: | March 29, 2017 | /s/ Mark Fields |
Mark Fields | ||
President and Chief Executive Officer |
1. | The Company’s Annual Report on Form 10-K/A for the period ended December 31, 2016, to which this statement is furnished as an exhibit (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: | March 29, 2017 | /s/ Bob Shanks |
Bob Shanks | ||
Executive Vice President and | ||
Chief Financial Officer |
For the years ended December 31, | ||||||||
2014 | 2015 | 2016 | ||||||
Revenues | ||||||||
Revenues (Note 8) | 105,319,803 | 115,469,704 | 124,504,387 | |||||
Less: Revenue taxes (Note 2) | 5,063,454 | 5,492,982 | 6,071,087 | |||||
Total revenues | 100,256,349 | 109,976,722 | 118,433,300 | |||||
Costs and expenses | ||||||||
Cost of sales (Note 8) | 73,019,782 | 79,493,254 | 86,461,886 | |||||
Selling expenses (Note 8) | 5,286,724 | 5,153,385 | 6,293,107 | |||||
General and administrative expense (Note 8) | 4,850,337 | 5,181,158 | 5,676,819 | |||||
Research and development costs (Notes 2 and 8) | 1,534,788 | 1,968,925 | 1,794,410 | |||||
Impairment of assets | 41,621 | 107,806 | 472,395 | |||||
Loss/(Gain) on disposal of property, plant, and equipment, net | (73 | ) | 3,037 | 20,310 | ||||
Total costs and expenses | 84,733,179 | 91,907,565 | 100,718,927 | |||||
Interest Income, net | 166,463 | 155,477 | 183,091 | |||||
Foreign exchange gain/(loss), net | (102,391 | ) | (179,226 | ) | (174 | ) | ||
Government grant income (Note 2) | 971,183 | 2,421,175 | 3,713,517 | |||||
Other income/(expense), net | 35,236 | 127,909 | 32,613 | |||||
Income before income taxes | 16,593,661 | 20,594,492 | 21,643,420 | |||||
Income tax expense (Note 13) | 2,258,780 | 3,204,464 | 3,567,237 | |||||
Net income | 14,334,881 | 17,390,028 | 18,076,183 | |||||
Less: Income attributable to non-controlling interests | 11,458 | 7,832 | 9,937 | |||||
Net income attributable to Changan Ford Automobile Corporation Limited | 14,323,423 | 17,382,196 | 18,066,246 |
December 31, 2015 | December 31, 2016 | ||||
ASSETS | |||||
Cash and cash equivalents (Note 5) | 12,868,830 | 15,063,726 | |||
Financial assets (Note 6) | 65,428 | 61,363 | |||
Interest receivable | 301 | — | |||
Accounts and notes receivable | 745,578 | 890,385 | |||
Other receivables | 1,915,249 | 2,584,472 | |||
Advances to suppliers | 61,139 | 86,441 | |||
Inventories (Note 7) | 7,688,797 | 5,791,872 | |||
Amounts due from related parties (Note 8) | 549,963 | 608,460 | |||
Total current assets | 23,895,285 | 25,086,719 | |||
Property, plant, and equipment, net (Note 9) | 21,988,964 | 22,176,399 | |||
Prepaid land leases, net (Note 10) | 1,287,034 | 1,349,778 | |||
Long term prepaid expense | 83,963 | — | |||
Deferred tax assets (Note 13) | 2,636,572 | 3,016,237 | |||
Prepayments for acquisition of plant and equipment | 580,449 | 324,532 | |||
Total non-current assets | 26,576,982 | 26,866,946 | |||
Total assets | 50,472,267 | 51,953,665 | |||
LIABILITIES | |||||
Accounts payable | 16,941,424 | 16,908,341 | |||
Advances from customers | 217,491 | 26,687 | |||
Accrued payroll and related expenses | 1,062,845 | 1,111,754 | |||
Taxes payable | 2,207,522 | 2,086,593 | |||
Deferred government grants and other | 373,545 | 526,951 | |||
Other payables and accrued liabilities (Note 11) | 8,648,157 | 10,263,191 | |||
Warranty liabilities (Note 15) | 365,902 | 308,614 | |||
Financial liabilities (Note 6) | 15,976 | 22,022 | |||
Amounts due to related parties (Note 8) | 6,228,686 | 5,567,145 | |||
Total current liabilities | 36,061,548 | 36,821,298 | |||
Deferred government grants and other | 2,291,993 | 2,367,241 | |||
Warranty liabilities (Note 15) | 956,129 | 1,266,346 | |||
Total non-current liabilities | 3,248,122 | 3,633,587 | |||
Total liabilities | 39,309,670 | 40,454,885 | |||
EQUITY | |||||
Paid-in capital | 1,903,383 | 1,903,383 | |||
Capital reserve | 8 | 8 | |||
Statutory reserves (Note 2) | 333,803 | 369,399 | |||
Retained earnings | 8,880,467 | 9,171,117 | |||
Total equity attributable to Changan Ford Automobile Corporation Limited | 11,117,661 | 11,443,907 | |||
Equity attributable to non-controlling interests | 44,936 | 54,873 | |||
Total equity | 11,162,597 | 11,498,780 | |||
Total liabilities and equity | 50,472,267 | 51,953,665 |
For the years ended December 31, | ||||||||
2014 | 2015 | 2016 | ||||||
Cash flows from operating activities | ||||||||
Net cash provided by operating activities (Note 14) | 20,523,015 | 24,648,357 | 24,401,971 | |||||
Cash flows from investing activities | ||||||||
Proceeds from disposal of property, plant, and equipment | 19,708 | 6,321 | 14,533 | |||||
Purchase of property, plant, and equipment and prepaid land leases | (7,202,472 | ) | (6,406,691 | ) | (4,491,253 | ) | ||
Net cash used in investing activities | (7,182,764 | ) | (6,400,370 | ) | (4,476,720 | ) | ||
Cash flows from financing activities | ||||||||
Cash received from short-term loan | — | — | 2,000,000 | |||||
Dividends paid to shareholders, net of withholding taxes (Note 14) | (15,144,500 | ) | (15,855,500 | ) | (17,740,000 | ) | ||
Payment of short-term loan | — | — | (2,000,000 | ) | ||||
Payment of financing costs | — | — | (3,884 | ) | ||||
Net cash used in financing activities | (15,144,500 | ) | (15,855,500 | ) | (17,743,884 | ) | ||
Effect of exchange rate changes on cash and cash equivalents | (20,609 | ) | (8,551 | ) | 13,529 | |||
Net increase/(decrease) in cash and cash equivalents | (1,824,858 | ) | 2,383,936 | 2,194,896 | ||||
Cash and cash equivalents, beginning of year | 12,309,752 | 10,484,894 | 12,868,830 | |||||
Cash and cash equivalents, end of year | 10,484,894 | 12,868,830 | 15,063,726 |
Equity attributable to Changan Ford Automobile Corporation Limited | ||||||||||||||||||||
Paid-in capital | Capital reserve | Statutory reserves | Accumulated retained earnings | Total | Equity attributable to non-controlling Interests | Total Equity | ||||||||||||||
Balance at December 31, 2013 (unaudited) | 1,903,383 | 8 | 271,133 | 8,237,518 | 10,412,042 | 25,646 | 10,437,688 | |||||||||||||
Net income | — | — | — | 14,323,423 | 14,323,423 | 11,458 | 14,334,881 | |||||||||||||
Appropriation to statutory reserve | — | — | 31,190 | (31,190 | ) | — | — | — | ||||||||||||
Dividends paid to shareholders | — | — | — | (15,400,000 | ) | (15,400,000 | ) | — | (15,400,000 | ) | ||||||||||
Balance at December 31, 2014 | 1,903,383 | 8 | 302,323 | 7,129,751 | 9,335,465 | 37,104 | 9,372,569 | |||||||||||||
Balance at December 31, 2014 | 1,903,383 | 8 | 302,323 | 7,129,751 | 9,335,465 | 37,104 | 9,372,569 | |||||||||||||
Net income | — | — | — | 17,382,196 | 17,382,196 | 7,832 | 17,390,028 | |||||||||||||
Appropriation to statutory reserve | — | — | 31,480 | (31,480 | ) | — | — | — | ||||||||||||
Dividends paid to shareholders | — | — | — | (15,600,000 | ) | (15,600,000 | ) | — | (15,600,000 | ) | ||||||||||
Balance at December 31, 2015 | 1,903,383 | 8 | 333,803 | 8,880,467 | 11,117,661 | 44,936 | 11,162,597 | |||||||||||||
Balance at December 31, 2015 | 1,903,383 | 8 | 333,803 | 8,880,467 | 11,117,661 | 44,936 | 11,162,597 | |||||||||||||
Net income | — | — | — | 18,066,246 | 18,066,246 | 9,937 | 18,076,183 | |||||||||||||
Appropriation to statutory reserve | — | — | 35,596 | (35,596 | ) | — | — | — | ||||||||||||
Dividends paid to shareholders | — | — | — | (17,740,000 | ) | (17,740,000 | ) | — | (17,740,000 | ) | ||||||||||
Balance at December 31, 2016 | 1,903,383 | 8 | 369,399 | 9,171,117 | 11,443,907 | 54,873 | 11,498,780 |
Footnote | Page | |
Note 1 | Presentation | F-7 |
Note 2 | Summary of Significant Accounting Policies | F-7 |
Note 3 | New Accounting Standards | F-12 |
Note 4 | Fair Value Measurements | F-13 |
Note 5 | Cash and Cash Equivalents | F-14 |
Note 6 | Financial Assets/(Liabilities) | F-14 |
Note 7 | Inventories | F-14 |
Note 8 | Related Parties | F-15 |
Note 9 | Property, Plant, and Equipment | F-16 |
Note 10 | Prepaid Land Leases | F-17 |
Note 11 | Other Payables and Accrued Liabilities | F-18 |
Note 12 | Employee Benefits | F-18 |
Note 13 | Income Taxes | F-18 |
Note 14 | Notes to Cash Flows | F-21 |
Note 15 | Warranties | F-22 |
Contributed Capital | Ownership Percentage | |||||
Changan Automobile | $ | 120,500,000 | 50 | % | ||
FAPAH | 84,350,000 | 35 | % | |||
Ford China | 36,150,000 | 15 | % |
Portion of Share Capital Owned | |||||||||||
Registered Address | Principal Business | Registered Capital (RMB thousands) | Directly | Indirectly | Portion of Voting Shares | ||||||
Chongqing Ante Imp & Exp Co., Ltd. (“Ante Trading”) | Chongqing, China | Import & export trading and wholesale for components of vehicles | 30,000 | 80% | — | 80% |
Applicable Tax Rate | |
Cylinder capacity | |
Less than 1.0 liter (including 1.0 liter) | 1% |
From 1.0 liters to 1.5 liters (including 1.5 liters) | 3% |
From 1.5 liters to 2.0 liters (including 2.0 liters) | 5% |
From 2.0 liters to 2.5 liters (including 2.5 liters) | 9% |
From 2.5 liters to 3.0 liters (including 3.0 liters) | 12% |
From 3.0 liters to 4.0 liters (including 4.0 liters) | 25% |
Over 4.0 liters | 40% |
• | A grant relating to income, such as a compensation for future costs, is recognized as deferred income initially, and as other income when the related cost is incurred. A grant as compensation for costs already incurred is recognized as other income for the current period; |
• | A grant relating to the construction or acquisition of assets is recognized as deferred income initially, and recognized as other income evenly based on the useful lives of the related assets. |
• | A reserve fund, a staff welfare and bonus fund, and an enterprise expansion fund shall be created, and the annual amount of funding shall be decided by the board of directors. |
• | In addition to its use in making up the losses of the joint venture, the reserve fund may be used to increase the capital of the joint venture and expand its production upon approval by the relevant authorities; and |
• | Any distributable profit remaining after the establishment of the three funds shall be distributed to the parties to the joint venture in proportion to their capital contribution when the board of directors decides to distribute such profit. |
Reserve Fund | Enterprise Expansion Fund | Total | ||||||
December 31, 2013 (unaudited) | 153,221 | 117,912 | 271,133 | |||||
Appropriation to statutory reserve | 15,595 | 15,595 | 31,190 | |||||
December 31, 2014 | 168,816 | 133,507 | 302,323 | |||||
Appropriation to statutory reserve | 15,740 | 15,740 | 31,480 | |||||
December 31, 2015 | 184,556 | 149,247 | 333,803 | |||||
Appropriation to statutory reserve | 17,798 | 17,798 | 35,596 | |||||
December 31, 2016 | 202,354 | 167,045 | 369,399 |
• | Level 1 - inputs include quoted prices in active markets for identical assets or liabilities. |
• | Level 2 - inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
• | Level 3 - unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
December 31, 2015 | December 31, 2016 | ||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets/(Liabilities) at fair value | — | 49 | — | 49 | — | 39 | — | 39 |
December 31, 2015 | December 31, 2016 | ||||
Materials-in-transit | 1,913,555 | 1,575,406 | |||
Raw materials and work in progress | 3,142,610 | 2,555,525 | |||
Finished goods | 2,764,059 | 1,799,201 | |||
Total inventories | 7,820,224 | 5,930,132 | |||
Provisions | (131,427 | ) | (138,260 | ) | |
Inventories, net | 7,688,797 | 5,791,872 |
December 31, 2015 | December 31, 2016 | ||||
Balance at beginning of year | 71,775 | 131,427 | |||
Additions | 103,636 | 411,747 | |||
Written off | (43,984 | ) | (404,914 | ) | |
Balance at end of year | 131,427 | 138,260 |
For the years ended December 31, | ||||||||
2014 | 2015 | 2016 | ||||||
Revenue and cost of sales | ||||||||
Sales of vehicles, parts, and components | 7,001,517 | 6,019,045 | 7,081,894 | |||||
Services rendered | — | 252,123 | 175,474 | |||||
Purchase of raw materials, parts and services | 20,868,623 | 15,239,594 | 12,417,853 | |||||
Selling expenses | ||||||||
Transportation service fee | 1,930,420 | 1,783,673 | 2,072,434 | |||||
General and administrative expense | ||||||||
General and administrative expense | 3,049,736 | 3,614,337 | 4,134,782 | |||||
Research and development costs | ||||||||
Technology development service fee | 431,969 | 1,025,052 | 1,032,887 | |||||
Purchase of property, plant, and equipment | ||||||||
Purchase of property, plant, and equipment | 833,128 | 1,280,584 | 644,807 |
December 31, 2015 | December 31, 2016 | ||||
Cash placed in financial institution of related party | 3,244,600 | 31 | |||
Accounts receivables | 513,901 | 507,680 | |||
Other receivables | 32,034 | 96,752 | |||
Prepayments | 4,028 | 4,028 | |||
Total amounts due from related parties | 549,963 | 608,460 | |||
Accounts payable | 3,466,155 | 3,144,504 | |||
Other payables and accrued liabilities | 2,760,183 | 2,422,641 | |||
Advance from customers | 2,348 | — | |||
Total amounts due to related parties | 6,228,686 | 5,567,145 |
Useful life | Residual value rate | Annual depreciation rate | |||
Buildings | 20 years | 10% | 4.50% | ||
Machinery and equipment | 10 years | 10% | 9% | ||
Electronic and office equipment | 5 years | 10% | 18% | ||
Vehicles | 5 years | 10% | 18% | ||
Tooling | 5 years | 0% | 20% |
December 31, 2015 | December 31, 2016 | ||||
Buildings | 5,747,864 | 6,059,260 | |||
Machinery and equipment | 11,395,069 | 14,154,971 | |||
Electronic and office equipment | 840,262 | 904,129 | |||
Vehicles | 182,243 | 171,309 | |||
Tooling | 9,920,848 | 10,442,400 | |||
Construction in progress | 2,160,972 | 1,560,385 | |||
Total property, plant, and equipment | 30,247,258 | 33,292,454 | |||
Accumulated depreciation and impairment | (8,258,294 | ) | (11,116,055 | ) | |
Total property, plant, and equipment, net | 21,988,964 | 22,176,399 |
December 31, 2015 | December 31, 2016 | ||||
Prepaid land leases | 1,414,862 | 1,508,381 | |||
Accumulated amortization | (127,828 | ) | (158,603 | ) | |
Total prepaid land leases, net | 1,287,034 | 1,349,778 |
2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||
Estimated amortization expense | 31,633 | 31,633 | 31,633 | 31,633 | 31,633 |
December 31, 2015 | December 31, 2016 | ||||
Other payables | |||||
Payables for the acquisition of property, plant, and equipment | 3,306,183 | 2,810,304 | |||
Dealers’ deposits | 106,992 | 72,748 | |||
Dealers’ incentives | 52,088 | 157,171 | |||
Others | 120,379 | 179,794 | |||
Total of other payables | 3,585,642 | 3,220,017 | |||
Accrued liabilities | |||||
Payables of marketing, sales and after-sales service costs | 3,926,939 | 5,625,437 | |||
Other accrued expenses | 815,124 | 975,569 | |||
Payables related to engineering services | 320,452 | 442,168 | |||
Total of accrued liabilities | 5,062,515 | 7,043,174 | |||
Total of other payables and accrued liabilities | 8,648,157 | 10,263,191 |
For the years ended December 31, | ||||||||
2014 | 2015 | 2016 | ||||||
Current income tax expense | 2,786,928 | 3,840,763 | 3,946,902 | |||||
Deferred income tax benefit | (528,148 | ) | (636,299 | ) | (379,665 | ) | ||
Total income tax expense | 2,258,780 | 3,204,464 | 3,567,237 |
For the years ended December 31, | ||||||||
2014 | 2015 | 2016 | ||||||
Income before income taxes | 16,593,661 | 20,594,492 | 21,643,420 | |||||
PRC statutory rate | 25 | % | 25 | % | 25 | % | ||
Income tax expense at statutory tax rate | 4,148,415 | 5,148,623 | 5,410,855 | |||||
Effect of preferential tax rate | (1,874,514 | ) | (1,947,155 | ) | (1,833,817 | ) | ||
Others | (15,121 | ) | 2,996 | (9,801 | ) | |||
Total income tax expenses | 2,258,780 | 3,204,464 | 3,567,237 |
December 31, 2015 | December 31, 2016 | ||||
Deferred tax assets | |||||
Inventory provision | 22,014 | 23,463 | |||
Change in fair value of financial instrument | 2,676 | 3,737 | |||
Accrued liabilities and accrued payroll | 1,825,265 | 2,079,445 | |||
Long-term assets provision | 16,464 | 24,157 | |||
Deferred government grants and other | 559,671 | 628,577 | |||
Warranty liabilities | 221,441 | 267,271 | |||
Total deferred tax assets | 2,647,531 | 3,026,650 | |||
Deferred tax liabilities | |||||
Change in fair value of financial instrument | 10,959 | 10,413 | |||
Total deferred tax liabilities | 10,959 | 10,413 | |||
Total net deferred tax assets | 2,636,572 | 3,016,237 |
For the years ended December 31, | ||||||||
2014 | 2015 | 2016 | ||||||
Net income | 14,334,881 | 17,390,028 | 18,076,183 | |||||
Inventory write-downs | 26,756 | 97,685 | 411,747 | |||||
Provision for impaired long-lived assets | 14,865 | 10,121 | 60,468 | |||||
Depreciation of property, plant, and equipment | 1,679,754 | 2,807,272 | 3,272,960 | |||||
Amortization of prepaid land leases | 23,709 | 27,979 | 30,775 | |||||
Amortization of deferred government grants and others | (36,474 | ) | (106,818 | ) | (601,477 | ) | ||
Loss/(Gain) on disposal of property, plant, and equipment | (73 | ) | 3,037 | 20,310 | ||||
Unrealized loss/(gain) from changes in fair value of financial instruments | 177,504 | (222,066 | ) | 10,111 | ||||
Finance expenses | 20,609 | 8,551 | (9,645 | ) | ||||
Changes of deferred income tax | (528,148 | ) | (636,298 | ) | (379,665 | ) | ||
Changes in operating assets and liabilities: | ||||||||
Decrease/(Increase) in inventories | (869,897 | ) | (2,082,921 | ) | 1,496,637 | |||
Decrease/(Increase) in accounts and notes receivable | (120,991 | ) | (310,870 | ) | (144,807 | ) | ||
Decrease/(Increase) in interest receivable | 45,942 | (301 | ) | 301 | ||||
Decrease/(Increase) in long-term prepaid expense | (18,222 | ) | (65,741 | ) | — | |||
Decrease/(Increase) in other receivables | 93,086 | (352,643 | ) | 54,429 | ||||
Decrease/(Increase) in advances to suppliers | (267,090 | ) | 220,234 | (25,302 | ) | |||
Decrease/(Increase) in amounts due from related parties | 28,781 | (180,259 | ) | (58,497 | ) | |||
Increase/(Decrease) in accounts payable | 1,202,207 | 6,100,078 | (33,083 | ) | ||||
Increase/(Decrease) in advances from customers | 35,951 | (18,102 | ) | (190,804 | ) | |||
Increase/(Decrease) in accrued payroll and related expenses | 233,330 | 154,625 | 48,909 | |||||
Increase/(Decrease) in taxes payable | 2,411,409 | (727,031 | ) | (232,975 | ) | |||
Increase/(Decrease) in other payables and accrued liabilities | 1,161,758 | 382,083 | 2,110,914 | |||||
Increase/(Decrease) in warranty liabilities | 882,185 | (475,636 | ) | 252,929 | ||||
Increase/(Decrease) in deferred government grants and other | 934,987 | 976,626 | 914,094 | |||||
Increase/(Decrease) in amounts due to related parties | (943,804 | ) | 1,648,724 | (682,721 | ) | |||
Net cash provided by operating activities | 20,523,015 | 24,648,357 | 24,401,791 |
For the years ended December 31, | ||||||||
2014 | 2015 | 2016 | ||||||
Cash paid during the year for: | ||||||||
Interest | 1,754 | 1,472 | 4,395 | |||||
Income taxes | 2,554,889 | 3,757,200 | 4,196,589 |
For the years ended December 31, | ||||||||
2014 | 2015 | 2016 | ||||||
Decrease/(Increase) of prepayments for acquisition of plant, and equipment | (349,888 | ) | 458,267 | 255,917 | ||||
Increase/(Decrease) of payables and accrued liabilities | (64,131 | ) | 507,518 | (174,009 | ) | |||
Increase/(Decrease) of amounts due to related parties | (128,999 | ) | 33,260 | 21,179 | ||||
Total changes of prepayments and payables | (543,018 | ) | 999,045 | 103,087 |
For the years ended December 31, | ||||||||
2014 | 2015 | 2016 | ||||||
Increase/(Decrease) of dividend withholding taxes payable | 255,500 | (255,500 | ) | — |
December 31, 2015 | December 31, 2016 | ||||
Beginning balance | 1,797,667 | 1,322,031 | |||
Payments made during the period | (951,478 | ) | (1,031,304 | ) | |
Changes in accrual related to warranties issued during the period | 967,666 | 728,829 | |||
Changes in accrual related to pre-existing warranties | (491,824 | ) | 555,404 | ||
Ending balance | 1,322,031 | 1,574,960 | |||
Warranty liabilities - current | 365,902 | 308,614 | |||
Warranty liabilities - non current | 956,129 | 1,266,346 | |||
Total warranty liabilities | 1,322,031 | 1,574,960 |
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