(Mark One) | |
R | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended June 30, 2015 | |
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) |
Table of Contents | Page | ||
Part I - Financial Information | |||
Item 1 | Financial Statements | ||
Consolidated Income Statement | |||
Consolidated Statement of Comprehensive Income | |||
Sector Income Statement | |||
Consolidated Balance Sheet | |||
Sector Balance Sheet | |||
Condensed Consolidated Statement of Cash Flows | |||
Condensed Sector Statement of Cash Flows | |||
Consolidated Statement of Equity | |||
Notes to the Financial Statements | |||
Report of Independent Registered Public Accounting Firm | |||
Item 2 | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||
Results of Operations | |||
Automotive Sector | |||
Financial Services Sector | |||
Liquidity and Capital Resources | |||
Production Volumes | |||
Outlook | |||
Accounting Standards Issued But Not Yet Adopted | |||
Other Financial Information | |||
Item 3 | Quantitative and Qualitative Disclosures About Market Risk | ||
Automotive Sector | |||
Financial Services Sector | |||
Item 4 | Controls and Procedures | ||
Part II - Other Information | |||
Item 1 | Legal Proceedings | ||
Item 1A | Risk Factors | ||
Item 2 | Unregistered Sales of Equity Securities and Use of Proceeds | ||
Item 6 | Exhibits | ||
Signature | |||
Exhibit Index |
For the periods ended June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Second Quarter | First Half | ||||||||||||||
(unaudited) | |||||||||||||||
Revenues | |||||||||||||||
Automotive | $ | 35,105 | $ | 35,365 | $ | 66,905 | $ | 69,241 | |||||||
Financial Services | 2,158 | 2,046 | 4,258 | 4,046 | |||||||||||
Total revenues | 37,263 | 37,411 | 71,163 | 73,287 | |||||||||||
Costs and expenses | |||||||||||||||
Automotive cost of sales | 30,602 | 31,247 | 59,304 | 62,268 | |||||||||||
Selling, administrative, and other expenses | 3,718 | 3,476 | 7,327 | 6,848 | |||||||||||
Financial Services interest expense | 607 | 683 | 1,254 | 1,361 | |||||||||||
Financial Services provision for credit and insurance losses | 106 | 104 | 179 | 143 | |||||||||||
Total costs and expenses | 35,033 | 35,510 | 68,064 | 70,620 | |||||||||||
Automotive interest expense | 190 | 207 | 355 | 415 | |||||||||||
Automotive interest income and other income/(loss), net (Note 14) | 272 | 270 | 462 | 484 | |||||||||||
Financial Services other income/(loss), net (Note 14) | 70 | 87 | 144 | 155 | |||||||||||
Equity in net income of affiliated companies | 486 | 67 | 923 | 486 | |||||||||||
Income before income taxes | 2,868 | 2,118 | 4,273 | 3,377 | |||||||||||
Provision for/(Benefit from) income taxes (Note 16) | 982 | 803 | 1,462 | 1,073 | |||||||||||
Net income | 1,886 | 1,315 | 2,811 | 2,304 | |||||||||||
Less: Income/(Loss) attributable to noncontrolling interests | 1 | 4 | 2 | 4 | |||||||||||
Net income attributable to Ford Motor Company | $ | 1,885 | $ | 1,311 | $ | 2,809 | $ | 2,300 | |||||||
EARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 18) | |||||||||||||||
Basic income | $ | 0.47 | $ | 0.33 | $ | 0.71 | $ | 0.58 | |||||||
Diluted income | 0.47 | 0.32 | 0.70 | 0.57 | |||||||||||
Cash dividends declared | 0.15 | 0.125 | 0.30 | 0.25 |
For the periods ended June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Second Quarter | First Half | ||||||||||||||
(unaudited) | |||||||||||||||
Net income | $ | 1,886 | $ | 1,315 | $ | 2,811 | $ | 2,304 | |||||||
Other comprehensive income/(loss), net of tax (Note 13) | |||||||||||||||
Foreign currency translation | 328 | 317 | (308 | ) | 82 | ||||||||||
Derivative instruments | (76 | ) | (287 | ) | (166 | ) | (195 | ) | |||||||
Pension and other postretirement benefits | (107 | ) | 53 | 245 | 236 | ||||||||||
Total other comprehensive income/(loss), net of tax | 145 | 83 | (229 | ) | 123 | ||||||||||
Comprehensive income | 2,031 | 1,398 | 2,582 | 2,427 | |||||||||||
Less: Comprehensive income/(loss) attributable to noncontrolling interests | — | 4 | 1 | 4 | |||||||||||
Comprehensive income attributable to Ford Motor Company | $ | 2,031 | $ | 1,394 | $ | 2,581 | $ | 2,423 |
For the periods ended June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Second Quarter | First Half | ||||||||||||||
(unaudited) | |||||||||||||||
AUTOMOTIVE | |||||||||||||||
Revenues | $ | 35,105 | $ | 35,365 | $ | 66,905 | $ | 69,241 | |||||||
Costs and expenses | |||||||||||||||
Cost of sales | 30,602 | 31,247 | 59,304 | 62,268 | |||||||||||
Selling, administrative, and other expenses | 2,686 | 2,551 | 5,302 | 5,027 | |||||||||||
Total costs and expenses | 33,288 | 33,798 | 64,606 | 67,295 | |||||||||||
Interest expense | 190 | 207 | 355 | 415 | |||||||||||
Interest income and other income/(loss), net (Note 14) | 272 | 270 | 462 | 484 | |||||||||||
Equity in net income of affiliated companies | 478 | 59 | 907 | 471 | |||||||||||
Income before income taxes — Automotive | 2,377 | 1,689 | 3,313 | 2,486 | |||||||||||
FINANCIAL SERVICES | |||||||||||||||
Revenues | 2,158 | 2,046 | 4,258 | 4,046 | |||||||||||
Costs and expenses | |||||||||||||||
Interest expense | 607 | 683 | 1,254 | 1,361 | |||||||||||
Depreciation on vehicles subject to operating leases | 858 | 742 | 1,674 | 1,448 | |||||||||||
Operating and other expenses | 174 | 183 | 351 | 373 | |||||||||||
Provision for credit and insurance losses | 106 | 104 | 179 | 143 | |||||||||||
Total costs and expenses | 1,745 | 1,712 | 3,458 | 3,325 | |||||||||||
Other income/(loss), net (Note 14) | 70 | 87 | 144 | 155 | |||||||||||
Equity in net income of affiliated companies | 8 | 8 | 16 | 15 | |||||||||||
Income before income taxes — Financial Services | 491 | 429 | 960 | 891 | |||||||||||
TOTAL COMPANY | |||||||||||||||
Income before income taxes | 2,868 | 2,118 | 4,273 | 3,377 | |||||||||||
Provision for/(Benefit from) income taxes (Note 16) | 982 | 803 | 1,462 | 1,073 | |||||||||||
Net income | 1,886 | 1,315 | 2,811 | 2,304 | |||||||||||
Less: Income/(Loss) attributable to noncontrolling interests | 1 | 4 | 2 | 4 | |||||||||||
Net income attributable to Ford Motor Company | $ | 1,885 | $ | 1,311 | $ | 2,809 | $ | 2,300 |
June 30, 2015 | December 31, 2014 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 12,897 | $ | 10,757 | |||
Marketable securities | 18,405 | 20,393 | |||||
Finance receivables, net (Note 4) | 82,821 | 81,111 | |||||
Other receivables, net | 12,666 | 11,708 | |||||
Net investment in operating leases | 26,148 | 23,217 | |||||
Inventories (Note 6) | 9,438 | 7,866 | |||||
Equity in net assets of affiliated companies | 3,469 | 3,357 | |||||
Net property | 30,750 | 30,126 | |||||
Deferred income taxes | 12,497 | 13,639 | |||||
Other assets | 6,954 | 6,353 | |||||
Total assets | $ | 216,045 | $ | 208,527 | |||
LIABILITIES | |||||||
Payables | $ | 21,844 | $ | 20,035 | |||
Other liabilities and deferred revenue (Note 7) | 43,649 | 43,577 | |||||
Debt (Note 9) | 123,526 | 119,171 | |||||
Deferred income taxes | 578 | 570 | |||||
Total liabilities | 189,597 | 183,353 | |||||
Redeemable noncontrolling interest (Note 10) | 93 | 342 | |||||
EQUITY | |||||||
Capital stock | |||||||
Common Stock, par value $.01 per share (3,959 million shares issued of 6 billion authorized) | 40 | 39 | |||||
Class B Stock, par value $.01 per share (71 million shares issued of 530 million authorized) | 1 | 1 | |||||
Capital in excess of par value of stock | 21,317 | 21,089 | |||||
Retained earnings | 26,175 | 24,556 | |||||
Accumulated other comprehensive income/(loss) (Note 13) | (20,260 | ) | (20,032 | ) | |||
Treasury stock | (939 | ) | (848 | ) | |||
Total equity attributable to Ford Motor Company | 26,334 | 24,805 | |||||
Equity attributable to noncontrolling interests | 21 | 27 | |||||
Total equity | 26,355 | 24,832 | |||||
Total liabilities and equity | $ | 216,045 | $ | 208,527 |
June 30, 2015 | December 31, 2014 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 2,355 | $ | 2,094 | |||
Finance receivables, net | 43,563 | 39,522 | |||||
Net investment in operating leases | 11,878 | 9,631 | |||||
Other assets | 55 | 27 | |||||
LIABILITIES | |||||||
Other liabilities and deferred revenue | $ | 30 | $ | 22 | |||
Debt | 40,595 | 37,156 |
June 30, 2015 | December 31, 2014 | ||||||
ASSETS | (unaudited) | ||||||
Automotive | |||||||
Cash and cash equivalents | $ | 6,130 | $ | 4,567 | |||
Marketable securities | 14,599 | 17,135 | |||||
Total cash and marketable securities | 20,729 | 21,702 | |||||
Receivables, less allowances of $403 and $455 | 5,793 | 5,789 | |||||
Inventories (Note 6) | 9,438 | 7,866 | |||||
Deferred income taxes | 2,779 | 2,039 | |||||
Net investment in operating leases | 2,765 | 1,699 | |||||
Other current assets | 1,372 | 1,347 | |||||
Total current assets | 42,876 | 40,442 | |||||
Equity in net assets of affiliated companies | 3,323 | 3,216 | |||||
Net property | 30,623 | 29,795 | |||||
Deferred income taxes | 12,151 | 13,331 | |||||
Other assets | 3,555 | 2,798 | |||||
Non-current receivable from Financial Services | — | 497 | |||||
Total Automotive assets | 92,528 | 90,079 | |||||
Financial Services | |||||||
Cash and cash equivalents | 6,767 | 6,190 | |||||
Marketable securities | 3,806 | 3,258 | |||||
Finance receivables, net (Note 4) | 88,796 | 86,141 | |||||
Net investment in operating leases | 23,383 | 21,518 | |||||
Equity in net assets of affiliated companies | 146 | 141 | |||||
Other assets | 3,229 | 3,613 | |||||
Receivable from Automotive | 256 | 527 | |||||
Total Financial Services assets | 126,383 | 121,388 | |||||
Intersector elimination | (256 | ) | (1,024 | ) | |||
Total assets | $ | 218,655 | $ | 210,443 | |||
LIABILITIES | |||||||
Automotive | |||||||
Payables | $ | 20,640 | $ | 18,876 | |||
Other liabilities and deferred revenue (Note 7) | 18,382 | 17,934 | |||||
Deferred income taxes | 334 | 270 | |||||
Debt payable within one year (Note 9) | 2,188 | 2,501 | |||||
Current payable to Financial Services | 241 | 527 | |||||
Total current liabilities | 41,785 | 40,108 | |||||
Long-term debt (Note 9) | 11,525 | 11,323 | |||||
Other liabilities and deferred revenue (Note 7) | 23,346 | 23,793 | |||||
Deferred income taxes | 301 | 367 | |||||
Non-current payable to Financial Services | 15 | — | |||||
Total Automotive liabilities | 76,972 | 75,591 | |||||
Financial Services | |||||||
Payables | 1,204 | 1,159 | |||||
Debt (Note 9) | 109,813 | 105,347 | |||||
Deferred income taxes | 2,553 | 1,849 | |||||
Other liabilities and deferred income (Note 7) | 1,921 | 1,850 | |||||
Payable to Automotive | — | 497 | |||||
Total Financial Services liabilities | 115,491 | 110,702 | |||||
Intersector elimination | (256 | ) | (1,024 | ) | |||
Total liabilities | 192,207 | 185,269 | |||||
Redeemable noncontrolling interest (Note 10) | 93 | 342 | |||||
EQUITY | |||||||
Capital stock | |||||||
Common Stock, par value $.01 per share (3,959 million shares issued of 6 billion authorized) | 40 | 39 | |||||
Class B Stock, par value $.01 per share (71 million shares issued of 530 million authorized) | 1 | 1 | |||||
Capital in excess of par value of stock | 21,317 | 21,089 | |||||
Retained earnings | 26,175 | 24,556 | |||||
Accumulated other comprehensive income/(loss) (Note 13) | (20,260 | ) | (20,032 | ) | |||
Treasury stock | (939 | ) | (848 | ) | |||
Total equity attributable to Ford Motor Company | 26,334 | 24,805 | |||||
Equity attributable to noncontrolling interests | 21 | 27 | |||||
Total equity | 26,355 | 24,832 | |||||
Total liabilities and equity | $ | 218,655 | $ | 210,443 |
For the periods ended June 30, | |||||||
2015 | 2014 | ||||||
First Half | |||||||
(unaudited) | |||||||
Cash flows from operating activities | |||||||
Net cash provided by/(used in) operating activities | $ | 7,623 | $ | 6,970 | |||
Cash flows from investing activities | |||||||
Capital spending | (3,533 | ) | (3,428 | ) | |||
Acquisitions of finance receivables and operating leases | (26,505 | ) | (24,616 | ) | |||
Collections of finance receivables and operating leases | 18,844 | 18,277 | |||||
Purchases of marketable securities | (21,282 | ) | (26,468 | ) | |||
Sales and maturities of marketable securities | 23,193 | 24,397 | |||||
Settlements of derivatives | 192 | 29 | |||||
Other | 141 | 124 | |||||
Net cash provided by/(used in) investing activities | (8,950 | ) | (11,685 | ) | |||
Cash flows from financing activities | |||||||
Cash dividends | (1,190 | ) | (987 | ) | |||
Purchases of Common Stock | (91 | ) | (862 | ) | |||
Net changes in short-term debt | 176 | (3,188 | ) | ||||
Proceeds from issuance of other debt | 24,912 | 22,755 | |||||
Principal payments on other debt | (19,787 | ) | (15,925 | ) | |||
Other | (279 | ) | 9 | ||||
Net cash provided by/(used in) financing activities | 3,741 | 1,802 | |||||
Effect of exchange rate changes on cash and cash equivalents | (274 | ) | 18 | ||||
Net increase/(decrease) in cash and cash equivalents | $ | 2,140 | $ | (2,895 | ) | ||
Cash and cash equivalents at January 1 | $ | 10,757 | $ | 14,468 | |||
Net increase/(decrease) in cash and cash equivalents | 2,140 | (2,895 | ) | ||||
Cash and cash equivalents at June 30 | $ | 12,897 | $ | 11,573 |
For the periods ended June 30, | |||||||||||||||
2015 | 2014 | ||||||||||||||
First Half | |||||||||||||||
Automotive | Financial Services | Automotive | Financial Services | ||||||||||||
(unaudited) | |||||||||||||||
Cash flows from operating activities | |||||||||||||||
Net cash provided by/(used in) operating activities (a) | $ | 4,461 | $ | 3,020 | $ | 6,108 | $ | 2,553 | |||||||
Cash flows from investing activities | |||||||||||||||
Capital spending | (3,505 | ) | (28 | ) | (3,402 | ) | (26 | ) | |||||||
Acquisitions of finance receivables and operating leases (excluding wholesale and other) | — | (26,505 | ) | — | (24,616 | ) | |||||||||
Collections of finance receivables and operating leases (excluding wholesale and other) | — | 18,844 | — | 18,277 | |||||||||||
Net change in wholesale and other receivables (b) | — | (1,273 | ) | — | (3,256 | ) | |||||||||
Purchases of marketable securities | (14,583 | ) | (6,699 | ) | (19,465 | ) | (7,003 | ) | |||||||
Sales and maturities of marketable securities | 17,050 | 6,143 | 18,499 | 5,898 | |||||||||||
Settlements of derivatives | 29 | 163 | 91 | (62 | ) | ||||||||||
Other | 73 | 68 | 40 | 84 | |||||||||||
Investing activity (to)/from Financial Services (c) | 28 | — | 21 | — | |||||||||||
Interest supplements and residual value support from Automotive (a) | — | 1,415 | — | 1,565 | |||||||||||
Net cash provided by/(used in) investing activities | (908 | ) | (7,872 | ) | (4,216 | ) | (9,139 | ) | |||||||
Cash flows from financing activities | |||||||||||||||
Cash dividends | (1,190 | ) | — | (987 | ) | — | |||||||||
Purchases of Common Stock | (91 | ) | — | (862 | ) | — | |||||||||
Net changes in short-term debt | 29 | 147 | 192 | (3,380 | ) | ||||||||||
Proceeds from issuance of other debt | 581 | 24,331 | 100 | 22,655 | |||||||||||
Principal payments on other debt | (1,006 | ) | (18,781 | ) | (656 | ) | (15,269 | ) | |||||||
Other | (223 | ) | (56 | ) | 75 | (66 | ) | ||||||||
Financing activity to/(from) Automotive (c) | — | (28 | ) | — | (21 | ) | |||||||||
Net cash provided by/(used in) financing activities | (1,900 | ) | 5,613 | (2,138 | ) | 3,919 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (90 | ) | (184 | ) | 23 | (5 | ) | ||||||||
Net increase/(decrease) in cash and cash equivalents | $ | 1,563 | $ | 577 | $ | (223 | ) | $ | (2,672 | ) | |||||
Cash and cash equivalents at January 1 | $ | 4,567 | $ | 6,190 | $ | 4,959 | $ | 9,509 | |||||||
Net increase/(decrease) in cash and cash equivalents | 1,563 | 577 | (223 | ) | (2,672 | ) | |||||||||
Cash and cash equivalents at June 30 | $ | 6,130 | $ | 6,767 | $ | 4,736 | $ | 6,837 |
(a) | Operating activities include outflows of $1,415 million and $1,565 million for the periods ended June 30, 2015 and 2014, respectively, of interest supplements and residual value support to Financial Services. Interest supplements and residual value support from Automotive to Financial Services are eliminated in the condensed consolidated statement of cash flows. |
(b) | Reclassified to operating activities in the condensed consolidated statement of cash flows. |
(c) | Eliminated in the condensed consolidated statement of cash flows. |
Equity Attributable to Ford Motor Company | |||||||||||||||||||||||||||||||
Capital Stock | Cap. in Excess of Par Value of Stock | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) (Note 13) | Treasury Stock | Total | Equity Attributable to Non-controlling Interests | Total Equity | ||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 40 | $ | 21,089 | $ | 24,556 | $ | (20,032 | ) | $ | (848 | ) | $ | 24,805 | $ | 27 | $ | 24,832 | |||||||||||||
Net income | — | — | 2,809 | — | — | 2,809 | 2 | 2,811 | |||||||||||||||||||||||
Other comprehensive income/(loss), net of tax | — | — | — | (228 | ) | — | (228 | ) | (1 | ) | (229 | ) | |||||||||||||||||||
Common stock issued (including share-based compensation impacts) | 1 | 228 | — | — | — | 229 | — | 229 | |||||||||||||||||||||||
Treasury stock/other | — | — | — | — | (91 | ) | (91 | ) | (1 | ) | (92 | ) | |||||||||||||||||||
Cash dividends declared | — | — | (1,190 | ) | — | — | (1,190 | ) | (6 | ) | (1,196 | ) | |||||||||||||||||||
Balance at June 30, 2015 | $ | 41 | $ | 21,317 | $ | 26,175 | $ | (20,260 | ) | $ | (939 | ) | $ | 26,334 | $ | 21 | $ | 26,355 | |||||||||||||
Balance at December 31, 2013 | $ | 40 | $ | 21,422 | $ | 23,386 | $ | (18,230 | ) | $ | (506 | ) | $ | 26,112 | $ | 33 | $ | 26,145 | |||||||||||||
Net income | — | — | 2,300 | — | — | 2,300 | 4 | 2,304 | |||||||||||||||||||||||
Other comprehensive income/(loss), net of tax | — | — | — | 123 | — | 123 | — | 123 | |||||||||||||||||||||||
Common stock issued (including share-based compensation impacts) | — | 201 | — | — | — | 201 | — | 201 | |||||||||||||||||||||||
Treasury stock/other | — | (18 | ) | — | — | (955 | ) | (973 | ) | (4 | ) | (977 | ) | ||||||||||||||||||
Cash dividends declared | — | — | (987 | ) | — | — | (987 | ) | (2 | ) | (989 | ) | |||||||||||||||||||
Balance at June 30, 2014 | $ | 40 | $ | 21,605 | $ | 24,699 | $ | (18,107 | ) | $ | (1,461 | ) | $ | 26,776 | $ | 31 | $ | 26,807 |
Footnote | Page | |
Note 1 | Presentation | |
Note 2 | Accounting Standards Issued But Not Yet Adopted | |
Note 3 | Fair Value Measurements | |
Note 4 | Financial Services Sector Finance Receivables | |
Note 5 | Financial Services Sector Allowance for Credit Losses | |
Note 6 | Inventories | |
Note 7 | Other Liabilities and Deferred Revenue | |
Note 8 | Retirement Benefits | |
Note 9 | Debt | |
Note 10 | Redeemable Noncontrolling Interest | |
Note 11 | Variable Interest Entities | |
Note 12 | Derivative Financial Instruments and Hedging Activities | |
Note 13 | Accumulated Other Comprehensive Income/(Loss) | |
Note 14 | Other Income/(Loss) | |
Note 15 | Employee Separation Actions and Exit and Disposal Activities | |
Note 16 | Income Taxes | |
Note 17 | Changes in Investments in Affiliates | |
Note 18 | Capital Stock and Earnings Per Share | |
Note 19 | Segment Information | |
Note 20 | Commitments and Contingencies |
June 30, 2015 | December 31, 2014 | ||||||
Sector balance sheet presentation of deferred income tax assets | |||||||
Automotive sector current deferred income tax assets | $ | 2,779 | $ | 2,039 | |||
Automotive sector non-current deferred income tax assets | 12,151 | 13,331 | |||||
Financial Services sector deferred income tax assets (a) | 177 | 185 | |||||
Total | 15,107 | 15,555 | |||||
Reclassification for netting of deferred income taxes | (2,610 | ) | (1,916 | ) | |||
Consolidated balance sheet presentation of deferred income tax assets | $ | 12,497 | $ | 13,639 | |||
Sector balance sheet presentation of deferred income tax liabilities | |||||||
Automotive sector current deferred income tax liabilities | $ | 334 | $ | 270 | |||
Automotive sector non-current deferred income tax liabilities | 301 | 367 | |||||
Financial Services sector deferred income tax liabilities | 2,553 | 1,849 | |||||
Total | 3,188 | 2,486 | |||||
Reclassification for netting of deferred income taxes | (2,610 | ) | (1,916 | ) | |||
Consolidated balance sheet presentation of deferred income tax liabilities | $ | 578 | $ | 570 |
(a) | Financial Services deferred income tax assets are included in Financial Services Other assets on our sector balance sheet. |
Standard | Effective Date | |||
2015-09 | Insurance - Disclosures about Short-Duration Contracts | January 1, 2016 | ||
2015-07 | Fair Value Measurement - Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) | January 1, 2016 | ||
2015-05 | Internal-Use Software - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement | January 1, 2016 | ||
2015-03 | Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs | January 1, 2016 | ||
2015-02 | Consolidation - Amendments to the Consolidation Analysis | January 1, 2016 | ||
2015-01 | Extraordinary and Unusual Items - Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items | January 1, 2016 | ||
2014-16 | Derivatives and Hedging - Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity | January 1, 2016 | ||
2014-13 | Consolidation - Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity | January 1, 2016 | ||
2014-12 | Stock Compensation - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period | January 1, 2016 | ||
2014-15 | Going Concern - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern | December 31, 2016 | ||
2015-11 | Inventory - Simplifying the Measurement of Inventory | January 1, 2017 |
June 30, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Automotive Sector | |||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Cash equivalents – financial instruments | |||||||||||||||||||||||||||||||
U.S. government and agencies | $ | — | $ | 8 | $ | — | $ | 8 | $ | — | $ | 64 | $ | — | $ | 64 | |||||||||||||||
Non-U.S. government and agencies | — | 249 | — | 249 | — | 122 | — | 122 | |||||||||||||||||||||||
Corporate debt | — | 10 | — | 10 | — | 20 | — | 20 | |||||||||||||||||||||||
Total cash equivalents (a) | — | 267 | — | 267 | — | 206 | — | 206 | |||||||||||||||||||||||
Marketable securities | |||||||||||||||||||||||||||||||
U.S. government and agencies | 846 | 3,706 | — | 4,552 | 969 | 5,789 | — | 6,758 | |||||||||||||||||||||||
Non-U.S. government and agencies | — | 6,068 | — | 6,068 | — | 7,004 | — | 7,004 | |||||||||||||||||||||||
Corporate debt | — | 3,617 | — | 3,617 | — | 2,738 | — | 2,738 | |||||||||||||||||||||||
Equities | 15 | — | — | 15 | 322 | — | — | 322 | |||||||||||||||||||||||
Other marketable securities | — | 347 | — | 347 | — | 313 | — | 313 | |||||||||||||||||||||||
Total marketable securities | 861 | 13,738 | — | 14,599 | 1,291 | 15,844 | — | 17,135 | |||||||||||||||||||||||
Derivative financial instruments (b) | — | 521 | — | 521 | — | 517 | — | 517 | |||||||||||||||||||||||
Total assets at fair value | $ | 861 | $ | 14,526 | $ | — | $ | 15,387 | $ | 1,291 | $ | 16,567 | $ | — | $ | 17,858 | |||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Derivative financial instruments (b) | $ | — | $ | 991 | $ | 1 | $ | 992 | $ | — | $ | 710 | $ | 3 | $ | 713 | |||||||||||||||
Total liabilities at fair value | $ | — | $ | 991 | $ | 1 | $ | 992 | $ | — | $ | 710 | $ | 3 | $ | 713 | |||||||||||||||
Financial Services Sector | |||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Cash equivalents – financial instruments | |||||||||||||||||||||||||||||||
Non-U.S. government and agencies | $ | — | $ | 419 | $ | — | $ | 419 | $ | — | $ | 341 | $ | — | $ | 341 | |||||||||||||||
Corporate debt | — | 50 | — | 50 | — | 10 | — | 10 | |||||||||||||||||||||||
Total cash equivalents (a) | — | 469 | — | 469 | — | 351 | — | 351 | |||||||||||||||||||||||
Marketable securities | |||||||||||||||||||||||||||||||
U.S. government and agencies | 669 | 700 | — | 1,369 | 17 | 1,251 | — | 1,268 | |||||||||||||||||||||||
Non-U.S. government and agencies | — | 630 | — | 630 | — | 405 | — | 405 | |||||||||||||||||||||||
Corporate debt | — | 1,780 | — | 1,780 | — | 1,555 | — | 1,555 | |||||||||||||||||||||||
Other marketable securities | — | 27 | — | 27 | — | 30 | — | 30 | |||||||||||||||||||||||
Total marketable securities | 669 | 3,137 | — | 3,806 | 17 | 3,241 | — | 3,258 | |||||||||||||||||||||||
Derivative financial instruments (b) | — | 823 | — | 823 | — | 859 | — | 859 | |||||||||||||||||||||||
Total assets at fair value | $ | 669 | $ | 4,429 | $ | — | $ | 5,098 | $ | 17 | $ | 4,451 | $ | — | $ | 4,468 | |||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Derivative financial instruments (b) | $ | — | $ | 378 | $ | — | $ | 378 | $ | — | $ | 167 | $ | — | $ | 167 | |||||||||||||||
Total liabilities at fair value | $ | — | $ | 378 | $ | — | $ | 378 | $ | — | $ | 167 | $ | — | $ | 167 |
(a) | Excludes time deposits, certificates of deposit, money market accounts, and other cash equivalents reported at par value on our balance sheet totaling $4.6 billion and $3.3 billion for Automotive sector and $3.9 billion and $3.8 billion for Financial Services sector at June 30, 2015 and December 31, 2014, respectively. In addition to these cash equivalents, we also had cash on hand totaling $1.2 billion and $1.1 billion for Automotive sector and $2.4 billion and $2 billion for Financial Services sector at June 30, 2015 and December 31, 2014, respectively. |
(b) | See Note 12 for additional information regarding derivative financial instruments. |
June 30, 2015 | December 31, 2014 | ||||||
Consumer | |||||||
Retail financing, gross | $ | 57,646 | $ | 55,856 | |||
Unearned interest supplements | (1,739 | ) | (1,760 | ) | |||
Consumer finance receivables | 55,907 | 54,096 | |||||
Non-Consumer | |||||||
Dealer financing | 32,093 | 31,340 | |||||
Other financing | 1,131 | 1,026 | |||||
Non-Consumer finance receivables | 33,224 | 32,366 | |||||
Total recorded investment | $ | 89,131 | $ | 86,462 | |||
Recorded investment in finance receivables | $ | 89,131 | $ | 86,462 | |||
Allowance for credit losses | (335 | ) | (321 | ) | |||
Finance receivables, net (a) | $ | 88,796 | $ | 86,141 | |||
Net finance receivables subject to fair value (b) | $ | 87,026 | $ | 84,468 | |||
Fair value | 88,315 | 85,941 |
(a) | On the consolidated balance sheet at June 30, 2015 and December 31, 2014, $6 billion and $5 billion, respectively, are reclassified to Other receivables, net, resulting in Finance receivables, net of $82.8 billion and $81.1 billion, respectively. |
(b) | At June 30, 2015 and December 31, 2014, excludes $1.8 billion and $1.7 billion, respectively, of certain receivables (primarily direct financing leases) that are not subject to fair value disclosure requirements. |
June 30, 2015 | December 31, 2014 | ||||||
Consumer | |||||||
31-60 days past due | $ | 566 | $ | 718 | |||
61-90 days past due | 85 | 97 | |||||
91-120 days past due | 23 | 29 | |||||
Greater than 120 days past due | 39 | 52 | |||||
Total past due | 713 | 896 | |||||
Current | 55,194 | 53,200 | |||||
Consumer finance receivables | 55,907 | 54,096 | |||||
Non-Consumer | |||||||
Total past due | 110 | 117 | |||||
Current | 33,114 | 32,249 | |||||
Non-Consumer finance receivables | 33,224 | 32,366 | |||||
Total recorded investment | $ | 89,131 | $ | 86,462 |
• | Pass – current to 60 days past due |
• | Special Mention – 61 to 120 days past due and in intensified collection status |
• | Substandard – greater than 120 days past due and for which the uncollectible portion of the receivables has already been charged off, as measured using the fair value of collateral |
• | Group I – strong to superior financial metrics |
• | Group II – fair to favorable financial metrics |
• | Group III – marginal to weak financial metrics |
• | Group IV – poor financial metrics, including dealers classified as uncollectible |
June 30, 2015 | December 31, 2014 | ||||||
Dealer Financing | |||||||
Group I | $ | 24,088 | $ | 23,125 | |||
Group II | 6,500 | 6,350 | |||||
Group III | 1,402 | 1,783 | |||||
Group IV | 103 | 82 | |||||
Total recorded investment | $ | 32,093 | $ | 31,340 |
Second Quarter 2015 | First Half 2015 | ||||||||||||||||||||||
Consumer | Non-Consumer | Total | Consumer | Non-Consumer | Total | ||||||||||||||||||
Allowance for credit losses | |||||||||||||||||||||||
Beginning balance | $ | 301 | $ | 13 | $ | 314 | $ | 305 | $ | 16 | $ | 321 | |||||||||||
Charge-offs | (70 | ) | (2 | ) | (72 | ) | (150 | ) | (1 | ) | (151 | ) | |||||||||||
Recoveries | 31 | 1 | 32 | 61 | 3 | 64 | |||||||||||||||||
Provision for credit losses | 57 | — | 57 | 110 | (4 | ) | 106 | ||||||||||||||||
Other (a) | 3 | 1 | 4 | (4 | ) | (1 | ) | (5 | ) | ||||||||||||||
Ending balance (b) | $ | 322 | $ | 13 | $ | 335 | $ | 322 | $ | 13 | $ | 335 | |||||||||||
Analysis of ending balance of allowance for credit losses | |||||||||||||||||||||||
Collective impairment allowance | $ | 303 | $ | 13 | $ | 316 | |||||||||||||||||
Specific impairment allowance | 19 | — | 19 | ||||||||||||||||||||
Ending balance (b) | 322 | 13 | 335 | ||||||||||||||||||||
Analysis of ending balance of finance receivables | |||||||||||||||||||||||
Collectively evaluated for impairment |