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Ford Motor Company / 2011 Annual Report
PROFITABLE GROWTH FOR ALL

Table of contents

  • Page 1
    PROFITABLE GROWTH FOR ALL Ford Motor Company / 2011 Annual Report

  • Page 2
    ..., investors, suppliers, unions/councils and communities. ONE PLAN: • Aggressively restructure to operate profitably at the current demand and changing model mix. • Accelerate development of new products our customers want and value. • Finance our plan and improve our balance sheet. • Work...

  • Page 3
    ... Lincoln. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford and its products worldwide, please visit www.corporate.ford.com. For more information visit our interactive Annual Report at www.annualreport.ford.com Ford Motor Company | 2011...

  • Page 4
    ... done by our employees around the world. Working together as a global team has enabled us to reward our shareholders and other stakeholders. But the success we have achieved so far is just a starting point, not a finish line. In 2012 we will go further to build great products, a strong business and...

  • Page 5
    ... Our cost structure has been dramatically improved and our balance sheet greatly strengthened. We have taken a leadership role in addressing issues of global concern. Now we want to go further. Ford is a growing company operating in a rapidly expanding global automotive market. We have increased our...

  • Page 6
    ... Brown. Strong Business* Our 2011 full year pre-tax operating profit was $8.8 billion, or $1.51 per share, an increase of $463 million from a year ago. Strong results from North America and Ford Credit offset challenges in other parts of the world. Overall it was our most profitable year since 1998...

  • Page 7
    ... development and American legacy, and auto-related safety education. Ford employees around the world also helped out in their communities through our Ford Volunteer Corps. • Finance the plan and improve the balance sheet. • Work together effectively as one team, leveraging our global assets...

  • Page 8
    ... Frederiek Toney Global Ford Customer Service Division Raymond F. Day Communications Barb J. Samardzich Product Development, Ford of Europe Roelant de Waard Marketing, Sales and Service, Ford of Europe Neil M. Schloss Treasurer *As of March 14, 2012 6 Ford Motor Company | 2011 Annual Report

  • Page 9
    ... in India. 2) Focus Job #1 launch at a new Assembly Plant in Chongqing, China. 3) FordSollers Plant in Vsevolozhsk, Russia builds its 500,000th vehicle; the first Russian Ford Focus wagon. 2 3 PROFITABLE GROWTH FOR ALL Ford recognizes the importance of a competitive global strategy and diverse...

  • Page 10
    ... of new global commercial vehicle products. 7) Ford will offer fuel-efficient EcoBoost engines in 11 North American vehicles in 2012. 2 GREAT PRODUCTS Across global markets where Ford Motor Company does FORD'S CHANGING GEOGRAPHIC MIX OF VOLUME business, the product strategy remains consistent...

  • Page 11
    ... the compact sport utility EcoSport. The Ranger will also be available in Europe. These new vehicles, fine-tuned to the regions they serve, reinforce our commitment to offering a balanced, full-line global product range in Percent of Ford's total sales FORD'S CHANGING PRODUCT SEGMENTATION 100 39...

  • Page 12
    .... From Fiesta, Focus, and the all-new Fusion, our global sedans deliver style, strength and safety with driving dynamics that turn drivers into enthusiasts and customers into advocates. For North America, Ford has upgraded the full-size 2013 Taurus and added more power and increased fuel efficiency...

  • Page 13
    ... Explorer entered the 2012 model year with an expanded color palette and an all-new Ford EcoBoost four-cylinder engine delivering class-leading fuel economy and responsive performance. The Edge and Flex were refreshed as well. 1) Ford EcoSport is the latest global product, helping to expand...

  • Page 14
    ..., outstanding safety, excellent fuel economy and high standards of quality and comfort. Designed and developed by a global team headquartered in Australia, the new Ranger platform takes advantage of global Ford assets. Ranger will be manufactured on three continents and sold in 180 markets, making...

  • Page 15
    ... manufacturers. Initiatives include two-person teams to assist customers and cameras in service bays so customers can see the work performed on their vehicle from their mobile devices. Starting this year, Lincoln plans to offer 7 new or significantly refreshed products by 2015. 2 3 1) The MKZ...

  • Page 16
    ... to data from Global Quality Research System. The warranty repair rate at three months has fallen 19 percent from 2007. The good news continues even as the vehicle ages - repair rates at 12 months have fallen 21 percent from 2007 levels. Part of Ford's long-term plan includes a laser-focus on all...

  • Page 17
    ... a special kind of dandelion as a potential resource for rubber. And the Focus Electric features seat fabric partly made of recycled plastic bottles and post-consumer waste. For more information visit our interactive Annual Report at www.annualreport.ford.com Ford Motor Company | 2011 Annual Report...

  • Page 18
    ... and Innovation Center, upgrades were made to the state-of-the-art VIRtual Test Track EXperiment (VIRTTEX) simulator. The improved image rendering technologies and capabilities of VIRTTEX will help in the development of safety and driver-aid technologies. 16 Ford Motor Company | 2011 Annual Report

  • Page 19
    ... destination information to their vehicle using their smartphone. 4) Performance upgrades and new features for MyFord Touch® begins with 2013 models. 5) Lane Keeping System alerts and assists the driver when the car is drifting out of the lane. 4 2 3 5 Ford Motor Company | 2011 Annual Report...

  • Page 20
    ...company plans to invest $16 billion in U.S. product development and manufacturing operations. Full-time hourly UAW employees received the highest average profit sharing of the last decade, while salaried employees received bonuses. Ford Motor Credit Company had another strong year in 2011, reporting...

  • Page 21
    ..., China, to help them finance their businesses and sell Ford Motor Company vehicles. 3) Mark Fields, Executive Vice President and President, the Americas at the launch of the 2012 Ford Focus with employees, dealers, suppliers, media and guests at Michigan Assembly Plant. 4) Ford annual meeting of...

  • Page 22
    ...all-new Ford Focus marked the launch of a more flexible manufacturing model for Ford. This combination engineering and product development model enables us to make more efficient use of vehicle platforms globally. We can build multiple models on one or more platforms in one plant, responding quickly...

  • Page 23
    ... America, Edge and Explorer opened the next chapter in the EcoBoost strategy as the first vehicles to offer a 2.0-liter EcoBoost engine, taking fuel efficiency for utility customers to an unprecedented level. And later this year, EcoBoost's expanded availability in the high-volume Fusion and Escape...

  • Page 24
    ...help, putting teams of Ford volunteers on the job in 45 countries from Europe and Asia to Africa and the Americas. Ford volunteers are on the job in communities throughout the year, but when employees around the world come together as One Ford during Ford Global Week of Caring, it's a powerful force...

  • Page 25
    ... in South Africa helped paint, garden and provide juice and goodie bags at the Le Amogetswe Safe Home for abandoned children. 2 3 4 PEOPLE HELPING PEOPLE Ford volunteers are the face of Ford in the community, building on the company's history of caring and community service, and getting...

  • Page 26
    ... Power of Choice. Ford's plan calls for it to triple production capacity of its electrified vehicle line-up by 2013 as we build on our commitment to give customers the Power of Choice. In December, production started at Ford's worldclass Michigan Assembly Plant of the 2012 Focus Electric, the first...

  • Page 27
    ... Data Employment Data Management's Report on Internal Control Over Financial Reporting 182 New York Stock Exchange Required Disclosures * Financial information contained herein (pages 26-182) is excerpted from the Annual Report on Form 10-K for the year ended December 31, 2011 of Ford Motor Company...

  • Page 28
    ... of business. For example, we offer special retail and lease incentives to dealers' customers who choose to finance or lease our vehicles from Ford Credit. The estimated cost for these incentives is recorded as revenue reduction to Automotive sales at the later of the date the related vehicle sales...

  • Page 29
    ...business and improve profitability as we expand around the world, invest in new products and technologies, respond to increasing industry sales volume and grow our market share. Automotive total costs and expenses for full-year 2011 was $122.4 billion. Material costs (including commodity costs) make...

  • Page 30
    ... interest rates, could drive a higher cost of capital over our planning period. Higher interest rates and/or taxes to address the higher deficits also may impede real growth in gross domestic product and, therefore, vehicle sales over our planning period. 28 Ford Motor Company | 2011 Annual Report

  • Page 31
    ...restructure to operate profitably at the current demand and changing model mix; Accelerate development of new products our customers want and value; Finance our plan and improve our balance sheet; and Work together effectively as one team, leveraging our global assets. Despite the external economic...

  • Page 32
    ... new or significantly refreshed Lincoln products by 2015. Developing products our customers want and value for Ford and Lincoln demands consistent focus on the four pillars of our global product strategy - Drive Quality, Drive Green, Drive Safe, and Drive Smart. 30 Ford Motor Company | 2011 Annual...

  • Page 33
    ... systems that represent an important part of the long-term future for the industry. We remain committed to our goal to deliver leadership or among the best fuel efficiency in every major new vehicle launch. Nearly one-third of Ford's vehicle lines will feature a model with 40 mpg or more in 2012...

  • Page 34
    ... have begun offering the next suite of new safety features and driver assistance technologies -- we will introduce Lane Keeping Aid and Driver Alert on the 2013 model year Lincoln MKS and MKT, and Ford Flex, Explorer, Fusion, Mondeo and the Focus in Europe. 32 Ford Motor Company | 2011 Annual Report

  • Page 35
    ... brand discounts and increase revenue across our portfolio. This overall combination of cost efficiency and revenue enhancement that is being realized from One Ford and our global product strategy will help us continue to profitably grow and "Go Further." Ford Motor Company | 2011 Annual Report 33

  • Page 36
    Management's Discussion and Analysis of Financial Condition and Results of Operations Finance Our Plan and Strengthen Our Balance Sheet As discussed in more detail in "Liquidity and Capital Resources" below, during 2011 we generated positive Automotive operating-related cash flow of $5.6 billion. We...

  • Page 37
    ..." to provide useful information to investors about the nature of the special items. The first category includes items related to our efforts to match production capacity and cost structure to market demand and changing model mix and therefore helps investors track amounts related to those activities...

  • Page 38
    ... dealer actions Job Security Benefits/Other Retiree health care and related charges Total Personnel and Dealer-Related Items Other Items Automotive Sector Belgium pension settlement Debt reduction actions Sale of Volvo and related charges (a) Gain on sale of Ford Russia operations Other (including...

  • Page 39
    ... vehicle lines and mix of trim levels and options within a vehicle line. Net pricing - Primarily measures profit variance driven by changes in wholesale prices to dealers and marketing incentive programs such as rebate programs, low-rate financing offers, and special lease offers. Contribution costs...

  • Page 40
    ... costs, higher structural costs (including the effect of higher volumes, new product launches, and investments to support our future product, capacity, and brandbuilding plans), higher compensation costs in North America, and unfavorable exchange. 38 Ford Motor Company | 2011 Annual Report

  • Page 41
    ...our investment in Mazda. For 2012, we expect interest expense net of interest income to be about the same as 2011. While interest expense will be reduced reflecting our lower debt levels, the effect of lower interest rates will be reduced interest income. Ford Motor Company | 2011 Annual Report 39

  • Page 42
    Management's Discussion and Analysis of Financial Condition and Results of Operations Ford North America Segment. The charts below detail key metrics and the change in 2011 pre-tax operating profit compared with 2010 by causal factor. As shown above, full-year wholesale volume and revenue improved ...

  • Page 43
    Management's Discussion and Analysis of Financial Condition and Results of Operations Ford South America Segment. The charts below detail key metrics and the change in 2011 pre-tax operating profit compared with 2010 by causal factor. As shown above, full-year wholesales and revenue increased ...

  • Page 44
    Management's Discussion and Analysis of Financial Condition and Results of Operations Ford Europe Segment. The charts below detail key metrics and the change in 2011 pre-tax operating profit compared with 2010 by causal factor. As shown above, full-year wholesale volume and revenue improved in 2011...

  • Page 45
    ... higher net pricing. We expect Ford Asia Pacific Africa to grow volume and be profitable for 2012, even as we continue to invest in additional capacity and our product line-up for an even stronger future, in line with implementation of our One Ford plan. Ford Motor Company | 2011 Annual Report 43

  • Page 46
    ... Africa, offset partially by lower Volvo wholesales (reflecting the sale of Volvo). The improvement in total Automotive results primarily reflects favorable volume and mix, net pricing (mainly in North America), changes in currency exchange, and the non-recurrence of Volvo operating losses from 2009...

  • Page 47
    ... UAW VEBA Trust that was added at the end of 2009 and prepaid in full during 2010, and the interest expense associated with our convertible debt issued in November 2009, offset partially by lower interest expense on our revolving debt which was 90% repaid in 2010. Ford Motor Company | 2011 Annual...

  • Page 48
    ... pricing, and changes in currency exchange, offset partially by unfavorable cost changes. The unfavorable cost changes primarily reflect higher structural costs driven primarily by higher manufacturing costs to support higher volume and product launches. 46 Ford Motor Company | 2011 Annual Report

  • Page 49
    ... production in Venezuela. The increase in earnings is more than explained by favorable net pricing, changes in currency exchange, and favorable volume and mix, offset partially by unfavorable cost changes (primarily higher commodity and structural costs). Ford Motor Company | 2011 Annual Report...

  • Page 50
    ... of prior-year reductions in dealer stocks). The favorable cost changes primarily reflect material cost reductions and lower warranty costs, offset partially by higher structural costs (in part to support product launches and growth of our product plans). 48 Ford Motor Company | 2011 Annual Report

  • Page 51
    ... volume and mix (higher industry volume offset partially by unfavorable mix) and favorable cost changes (material cost reductions and lower freight and warranty costs, offset by higher structural costs to support investment in our product and growth plans). Ford Motor Company | 2011 Annual Report...

  • Page 52
    ... vehicles sold at a gain, and lower credit loss reserve reductions. The full-year increase in its International segment pre-tax results is more than explained by foreign currency translation adjustments related to the discontinuation of financing in Australia. 50 Ford Motor Company | 2011 Annual...

  • Page 53
    ... $ 39.1 $ 42.3 2010 2009 Receivables at December 31, 2011 increased from year-end 2010, primarily due to higher Ford and Lincoln receivables, partially offset by the discontinuation of financing for Jaguar, Land Rover, Mazda, Volvo, and Mercury and changes in currency exchange rates. At December 31...

  • Page 54
    ... pay. At December 31, 2011 and 2010, Ford Credit classified between 5% - 6% of its outstanding U.S. retail finance and lease contracts in its portfolio as high risk at contract inception. Residual Risk. Ford Credit is exposed to residual risk on operating leases and similar balloon payment products...

  • Page 55
    ... vehicle prices. In 2011, Ford Credit's strong auction values for 36-month vehicles continued, increasing by $740 per unit from 2010. Ford Credit's worldwide net investment in operating leases was $11.1 billion at the end of 2011, up from $10 billion in 2010. Ford Motor Company | 2011 Annual Report...

  • Page 56
    Management's Discussion and Analysis of Financial Condition and Results of Operations 2010 Compared with 2009 The chart below details the change in 2010 pre-tax operating profit compared with 2009 by causal factor. The full-year increase was explained primarily by a lower provision for credit ...

  • Page 57
    ... of these investments ranges from 90 days to up to one year and is adjusted based on market conditions and liquidity needs. We monitor our cash levels and average maturity on a daily basis. In managing our business, we classify changes in Automotive gross cash into operating-related and other...

  • Page 58
    ... Discussion and Analysis of Financial Condition and Results of Operations trade payables are based primarily on industry-standard production supplier payment terms generally ranging between 30 to 45 days. As a result, our cash flow tends to improve as wholesale volumes increase, but can deteriorate...

  • Page 59
    ... November 30, 2013 to November 30, 2015, and to make certain other modifications to the Credit Agreement. U.S. Department of Energy ("DOE") Advanced Technology Vehicle Manufacturer ("ATVM") Incentive Program. We submitted to the DOE an application dated November 18, 2008 for term loans totaling $11...

  • Page 60
    ... partially by an increase in low-cost government loans to support advanced technology vehicle development. See Note 18 of the Notes to the Financial Statements for our debt maturity table as of December 31, 2011 and additional debt disclosures. Pension Plan Contributions and Strategy. Worldwide, our...

  • Page 61
    ... business. Within the limitations provided under our Credit Agreement, on December 8, 2011, our Board of Directors declared a dividend of $0.05 per share on our Common and Class B Stock, payable on March 1, 2012 to stockholders of record on January 31, 2012. Ford Motor Company | 2011 Annual Report...

  • Page 62
    ... cash balances and committed capacity that meet its business and funding requirements in all global market conditions. Ford Credit completed its full year funding plan despite volatile market conditions. In 2011, it completed $35 billion of term funding, including $19 billion in the public market...

  • Page 63
    ... assets and related enhancements. (c) Excludes marketable securities related to insurance activities. At year-end 2011, managed receivables were $85 billion. Ford Credit ended the year with $12.1 billion in cash, and securitized funding was 55% of managed receivables. Ford Credit is projecting 2012...

  • Page 64
    Management's Discussion and Analysis of Financial Condition and Results of Operations For 2012, Ford Credit projects full-year public term funding in the range of $18 billion to $23 billion, consisting of $8 billion to $11 billion of unsecured debt and $10 billion to $12 billion of public ...

  • Page 65
    Management's Discussion and Analysis of Financial Condition and Results of Operations marketable securities (excluding marketable securities related to insurance activities) primarily include U.S. Treasury obligations, federal agency securities, bank time deposits with investment-grade institutions ...

  • Page 66
    Management's Discussion and Analysis of Financial Condition and Results of Operations Ford Credit's balance sheet is inherently liquid because of the short-term nature of its finance receivables, investment in operating leases, and cash. Maturities of investment in operating leases consist primarily...

  • Page 67
    ...-balance sheet transactions. Securitization transactions have an effect on Ford Credit's financial condition, operating results, and liquidity. Ford Credit securitizes its assets because the securitization market provides it with a lower cost source of funding compared with unsecured debt given Ford...

  • Page 68
    ... securitization transactions were no longer available to Ford Credit, it would have a material adverse impact on Ford Credit's financial condition and results of operations, which could adversely affect its ability to support the sale of Ford vehicles. 66 Ford Motor Company | 2011 Annual Report

  • Page 69
    Management's Discussion and Analysis of Financial Condition and Results of Operations On-Balance Sheet Arrangements All of Ford Credit's securitization transactions involve sales to consolidated entities or it maintains control over the assets and, therefore, the securitized assets and related debt ...

  • Page 70
    ... to operate profitably, accelerate development of new products customers want and value, finance our plan and strengthen our balance sheet, and work together effectively as one team leveraging our global assets - provides the right strategy to achieve our objectives. Our projected vehicle production...

  • Page 71
    ...Automotive operating margin defined as Automotive pre-tax results excluding Other Automotive divided by Automotive revenue. (d) Structural cost changes are measured primarily at present-year exchange, and exclude special items and discontinued operations. Ford Motor Company | 2011 Annual Report 69

  • Page 72
    ... special items Automotive pre-tax operating profit to improve Ford Credit to be solidly profitable, although at a lower level Total Company pre-tax operating profit to be about equal Automotive structural costs to increase by less than $2 billion as we support higher volumes, new product launches...

  • Page 73
    ... cost structure; • Substantial pension and postretirement health care and life insurance liabilities impairing our liquidity or financial condition; • Worse-than-assumed economic and demographic experience for our postretirement benefit plans (e.g., discount rates or investment returns...

  • Page 74
    .... Benefit payments are discounted at the rates on the curve and a single discount rate specific to the plan is determined. Expected return on plan assets. The expected return on plan assets assumption reflects historical returns and long-run inputs from a range of advisors for capital market returns...

  • Page 75
    ... Note 17 of the Notes to the Financial Statements for more information regarding costs and assumptions for employee retirement benefits. Sensitivity Analysis. The December 31, 2011 pension funded status and 2012 expense are affected by year-end 2011 assumptions. These sensitivities may be asymmetric...

  • Page 76
    ...Discussion and Analysis of Financial Condition and Results of Operations Sensitivity Analysis. The effect on U.S. and Canadian plans of a one percentage point increase/(decrease) in the assumed discount rate would be a (decrease)/increase in the postretirement health care benefit expense for 2012 of...

  • Page 77
    ... assets for our South America operations. Allowance for Credit Losses The allowance for credit losses is Ford Credit's estimate of the probable credit losses inherent in finance receivables and operating leases at the date of the balance sheet. Consistent with its normal practices and policies, Ford...

  • Page 78
    ... volume. Ford Credit's projection of the number of vehicles that will be returned to us at lease-end. • See Note 8 of the Notes to the Financial Statements for more information regarding accumulated depreciation on vehicles subject to operating leases. 76 Ford Motor Company | 2011 Annual Report

  • Page 79
    ...statement of operations in Depreciation, in each case under the Financial Services sector. ACCOUNTING STANDARDS ISSUED BUT NOT YET ADOPTED For information on accounting standards issued but not yet adopted, see Note 3 of the Notes to the Financial Statements. Ford Motor Company | 2011 Annual Report...

  • Page 80
    ... 31, 2011 (in millions): Payments Due by Period 2012 Automotive Sector On-balance sheet Long-term debt (a) (b) (excluding capital leases) Interest payments relating to long-term debt (c) Capital leases Off-balance sheet Purchase obligations Operating leases Total Automotive sector Financial Services...

  • Page 81
    ... variety of economic or business cycles. As discussed in greater detail in "Management's Discussion and Analysis of Financial Condition and Results of Operations" our funding sources include sales of receivables in securitizations and other structured financings, unsecured debt issuances, equity and...

  • Page 82
    ... in order to manage this risk. Exposures primarily relate to investments in fixed income instruments and derivative contracts used for managing interest rate, foreign currency exchange rate and commodity price risk. We, together with Ford Credit, establish exposure limits for each counterparty...

  • Page 83
    .... Fixed-rate retail installment sale and lease contracts are originated principally with maturities ranging between two and six years and generally require customers to make equal monthly payments over the life of the contract. Wholesale receivables are originated to finance new and used vehicles...

  • Page 84
    ...as of December 31, 2011 was an asset of about $1.1 billion, compared to an asset of $712 million as of December 31, 2010. For additional information regarding our Financial Services sector derivatives, see Note 25 of the Notes to the Financial Statements. 82 Ford Motor Company | 2011 Annual Report

  • Page 85
    Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of Ford Motor Company In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations, of equity and of cash flows, including pages 84 through 179, ...

  • Page 86
    Consolidated Statement of Operations FORD MOTOR COMPANY AND SUBSIDIARIES For the Years Ended December 31, 2011, 2010, and 2009 (in millions, except per share amounts) 2011 Revenues Automotive Financial Services Total revenues Costs and expenses Automotive cost of sales Selling, administrative and ...

  • Page 87
    ... Statement of Operations FORD MOTOR COMPANY AND SUBSIDIARIES For the Years Ended December 31, 2011, 2010, and 2009 (in millions, except per share amounts) 2011 AUTOMOTIVE Revenues Costs and expenses Cost of sales Selling, administrative and other expenses Total costs and expenses Operating income...

  • Page 88
    ... Net property Other assets LIABILITIES Payables Accrued liabilities and deferred revenue Debt The accompanying notes are part of the financial statements. $ 3,402 49,795 - 6,354 - - 157 - 97 41,421 $ 4,062 50,473 13 6,121 19 31 28 16 222 40,247 86 Ford Motor Company | 2011 Annual Report

  • Page 89
    ... 31, 2011 ASSETS Automotive Cash and cash equivalents Marketable securities (Note 6) Total cash and marketable securities Receivables, less allowances of $126 and $228 Inventories (Note 10) Deferred income taxes Net investment in operating leases (Note 8) Other current assets Current receivable from...

  • Page 90
    ... investing activities Cash flows from financing activities of continuing operations Sales of Common Stock Changes in short-term debt Proceeds from issuance of other debt Principal payments on other debt Payments on notes/transfer of cash equivalents to the UAW Voluntary Employee Benefit Association...

  • Page 91
    ...013 5,542 (27,555) 28,326 554 911 374 - - - - 321 22,078 $ 9,368 $ 2,405 $ 6,363 $ 3,798 $ 2,874 $ 5,805 Financial Services 2010 Automotive Financial Services 2009 Automotive Financial Services The accompanying notes are part of the financial statements. Ford Motor Company | 2011 Annual Report 89

  • Page 92
    ... tax) Employee benefit related (net of $302 of tax benefit & other) Net holding gain/(loss) (net of $0 of tax) Comprehensive income/(loss) Common Stock issued Impact of deconsolidation of AutoAlliance International, Inc. Treasury stock/other Cash dividends declared Balance at end of year YEAR ENDED...

  • Page 93
    ... of Accounting Policies Accounting Standards Issued But Not Yet Adopted Fair Value Measurements Restricted Cash Marketable and Other Securities Finance Receivables Net Investment in Operating Leases Allowance for Credit Losses Inventories Equity in Net Assets of Affiliated Companies Significant...

  • Page 94
    ...consolidated financial statements to conform to current year presentation. In the first quarter of 2009, our wholly-owned subsidiary Ford Motor Credit Company LLC ("Ford Credit") recorded a $630 million cumulative adjustment to correct for the overstatement of Financial Services sector cash and cash...

  • Page 95
    ... deferred income tax assets are included in Financial Services other assets on our sector balance sheet. $ 40 255 1,301 1,596 (900) 696 $ $ 392 344 1,505 2,241 (1,106) 1,135 $ $ 1,791 13,932 302 16,025 (900) 15,125 $ $ 359 2,468 282 3,109 (1,106) 2,003 2010 Ford Motor Company | 2011 Annual Report...

  • Page 96
    ... Financial Services Debt" in Note 18 for discussion of these transactions. Cash inflows related to these transactions are reported as financing activities on the consolidated statement of cash flows and investing activities on the sector statement of cash flows. 94 Ford Motor Company | 2011 Annual...

  • Page 97
    ... value support that Ford Credit provides to retail customers. (c) Primarily wholesale receivables with entities that are consolidated subsidiaries of Ford. (d) Sale-leaseback agreement between Automotive and Financial Services sectors relating to vehicles that we lease to our employees. (e) Amounts...

  • Page 98
    ... as deferred revenue, respectively. See Note 8 for additional information. Income generated from cash and cash equivalents and investments in marketable securities is reported in Automotive interest income and other non-operating income/(expense), net. 96 Ford Motor Company | 2011 Annual Report

  • Page 99
    ... and investments in marketable securities is reported in Financial Services other income/(loss), net. Retail and Lease Incentives We offer special retail and lease incentives to dealers' customers who choose to finance or lease Ford-brand vehicles from Ford Credit. Generally, the estimated cost for...

  • Page 100
    ... half 2011 Ford North America profits, with the remainder of the 2011 profit sharing payment to be made in the first quarter of 2012. Payments made pursuant to the Agreement are recognized in Automotive cost of sales. Selected Other Costs Freight, engineering, and research and development costs are...

  • Page 101
    ... the balance sheet but for which the fair value is disclosed, and to expand existing disclosures. The standard is effective for us as of January 1, 2012 and will impact our financial statement disclosures. Transfers and Servicing - Repurchase Agreements. In April 2011, the FASB issued a new standard...

  • Page 102
    ... including quoted prices (the closing price in an exchange market), bid prices (the price at which a buyer stands ready to purchase), and other market information. For securities that are not actively traded, the pricing services obtain quotes for similar fixed-income securities or utilize broker...

  • Page 103
    ...(d) U.S. government U.S. government-sponsored enterprises Non-U.S. government agencies (c) Corporate debt Mortgage-backed and other asset-backed Equities Non-U.S. government Other liquid investments (e) Total marketable securities Derivative financial instruments Foreign exchange contracts Commodity...

  • Page 104
    ... of deposit, money market accounts, and other cash equivalents reported at par value on our balance sheet totaling $6 billion as of December 31, 2011 for the Financial Services sector. In addition to these cash equivalents, our Financial Services sector also had cash on hand totaling $3 billion as...

  • Page 105
    ...) 2010 Level 1 (a) Automotive Sector Assets Cash equivalents - financial instruments (b) U.S. government U.S. government-sponsored enterprises Non-U.S. government Non-U.S. government agencies (c) Corporate debt Total cash equivalents - financial instruments Marketable securities (d) U.S. government...

  • Page 106
    ... of deposit, money market accounts, and other cash equivalents reported at par value on our balance sheet totaling $5.7 billion as of December 31, 2010 for the Financial Services sector. In addition to these cash equivalents, our Financial Services sector also had cash on hand totaling $2 billion as...

  • Page 107
    ... sheet for the years ended December 31 (in millions): 2011 Marketable Securities MortgageBacked and Other Non-U.S. Corporate AssetGovernment Debt Backed 1 - (1) - (1) Non-U.S. Government Agencies Automotive Sector Beginning balance Realized/unrealized gains/(losses) Cost of sales Interest income...

  • Page 108
    ... and Other Total Corporate AssetNon-U.S. Marketable Debt Backed Government Securities $ 8 $ 17 $ - $ 25 Non-U.S. Government Agencies Automotive Sector Beginning balance $ Realized/unrealized gains/ (losses) Cost of sales Interest income and other non-operating income/ (expense), net Other...

  • Page 109
    ... statement of operations for the years ended December 31 related to items still held on our balance sheet at those dates (in millions): Total Gains / (Losses) 2011 Automotive Sector First Aquitaine investment (a) U.S. consolidated dealership investment (a) Total Automotive sector Financial Services...

  • Page 110
    ... minimum balances or cash securing debt issued through securitization transactions. Restricted cash reflected on our balance sheet at December 31 was as follows (in millions): 2011 Automotive sector Financial Services sector Total Company $ $ 330 149 479 $ $ 2010 433 298 731 NOTE 6. MARKETABLE AND...

  • Page 111
    ... significant influence are recorded at cost and included in Other assets. These cost method investments at December 31 were as follows (in millions): 2011 Automotive sector Financial Services sector Total Company $ $ 21 5 26 $ $ 2010 92 5 97 NOTE 7. FINANCE RECEIVABLES Finance receivables reflected...

  • Page 112
    ... charge-offs and any unamortized deferred fees or costs. At December 31, 2011 and 2010, the recorded investment in Ford Credit's finance receivables excluded $180 million and $176 million of accrued uncollected interest receivable, respectively, which we report in Other assets on the balance sheet...

  • Page 113
    ...): 2011 North America Total minimum lease rentals to be received $ Initial direct costs Estimated residual values Less: Unearned income Less: Unearned interest supplements Recorded investment in direct financing leases Less: Allowance for credit losses Net investment in direct financing leases...

  • Page 114
    ... employment history, financial stability, and capacity to pay. Subsequent to origination, Ford Credit reviews the credit quality of retail and direct financing lease receivables based on customer payment activity. As each customer develops a payment history, Ford Credit uses an internally-developed...

  • Page 115
    ...of approved lines of credit to purchase new Ford and Lincoln vehicles as well as used vehicles. Each commercial lending request is evaluated by taking into consideration the borrower's financial condition and the underlying collateral securing the loan. Ford Credit uses a proprietary model to assign...

  • Page 116
    ...share the same risk rating. The credit quality analysis of wholesale and dealer loan receivables at December 31 was as follows (in millions): 2011 Wholesale North America Group I Group II Group III Group IV Subtotal International Group I Group II Group III Group IV Subtotal Total recorded investment...

  • Page 117
    ... receivable exceeds its estimated fair value. The allowance for credit losses related to non-consumer TDRs was $6 million at December 31, 2011. See Note 9 for additional information related to the development of Ford Credit's allowance for credit losses. Ford Motor Company | 2011 Annual Report 115

  • Page 118
    ... to the Financial Statements NOTE 8. NET INVESTMENT IN OPERATING LEASES Net investment in operating leases on our balance sheet consists primarily of lease contracts for new and used vehicles with retail customers, daily rental companies, government entities, and fleet customers. Assets subject to...

  • Page 119
    ... off and we record the collateral at its estimated fair value less costs to sell and report it in Other assets on the balance sheet. Recoveries on finance receivables and investment in operating leases previously charged-off as uncollectible are credited to the allowance for credit losses. Consumer...

  • Page 120
    ...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. 118 Ford Motor Company | 2011 Annual Report

  • Page 121
    ... 864 1,271 $ (606) 247 (195) (10) 707 $ 1,351 $ (647) 281 (197) (11) 777 $ $ _____ (a) Primarily represents amounts related to translation adjustments. (b) Finance receivables and net investment in operating leases before allowance for credit losses. Ford Motor Company | 2011 Annual Report 119

  • Page 122
    ...de R.L. de C.V. Ford Performance Vehicles Pty Ltd. Blue Diamond Parts, LLC Automotive Fuel Cell Cooperation Corporation Ford Motor Company Capital Trust II ("Trust II") (b) Other Total Automotive sector Financial Services Sector Forso Nordic AB FFS Finance South Africa (Pty) Limited RouteOne LLC CNF...

  • Page 123
    ...Payables Total liabilities $ $ 16 16 $ $ 2010 9 13 19 31 2 74 The financial performance of the VIEs reflected on our statement of operations at December 31, 2011, 2010, and 2009 includes consolidated sales of $10 million, $58 million, and $1,907 million, respectively, and consolidated cost of sales...

  • Page 124
    ...2011 Investments Guarantees Total maximum exposure $ $ 229 6 235 $ $ 2010 417 10 427 Financial Services Sector VIEs of which we are the primary beneficiary: Our Financial Services sector uses special purpose entities to issue asset-backed securities in transactions to public and private investors...

  • Page 125
    ... consolidated balance sheet at December 31 were as follows (in billions): 2011 Finance Receivables, Net and Net Investment in Operating Leases $ 31.9 17.9 49.8 6.4 $ 56.2 $ $ Cash and Cash Equivalents Finance receivables Retail Wholesale Total finance receivables Net investment in operating leases...

  • Page 126
    ...on our consolidated balance sheet. The financial performance of the consolidated VIEs that support Ford Credit's securitization transactions reflected in our statement of operations for the years ended December 31 was as follows (in millions): 2011 Derivative Expense VIEs financial performance $ 31...

  • Page 127
    ...in Financial Services other assets on our sector balance sheet. $ $ 2011 384 10,129 34,363 1,917 1,311 48,104 (32,874) 15,230 6,999 22,229 142 22,371 $ $ 2010 336 10,348 35,780 1,888 1,102 49,454 (33,900) 15,554 7,473 23,027 152 23,179 Automotive sector property-related expenses for the years ended...

  • Page 128
    ... expense for the years ending December 31 was as follows (in millions): 2011 Pre-tax amortization expense $ 12 $ 2010 97 $ 2009 86 Amortization for current intangible assets is forecasted to be approximately $12 million in 2012 and each year thereafter. 126 Ford Motor Company | 2011 Annual Report

  • Page 129
    ... customer allowances and claims Deferred revenue Employee benefit plans Other Total Automotive non-current Total Automotive sector Financial Services Sector Total sectors Intersector elimination (a) Total Company _____ (a) Accrued interest related to Ford's acquisition of Ford Credit debt securities...

  • Page 130
    ... after June 1, 2001 are covered by a separate plan that provides for annual company allocations to employee-specific notional accounts to be used to fund postretirement health care benefits. The Plan also covers Ford hourly non-UAW represented employees in the United States hired before November 19...

  • Page 131
    ...the Financial Statements NOTE 17. RETIREMENT BENEFITS (Continued) A summary of the transaction and related net loss is as follows (in billions): December 31, 2009 Liabilities Transferred UAW postretirement health care obligation Plan Assets Net liability transferred Assets Transferred Cash New Notes...

  • Page 132
    ...): Pension Benefits (a) U.S. Plans 2011 Service cost Interest cost Expected return on assets Amortization of: Prior service costs/ (credits) (Gains)/Losses and Other Separation programs (Gains)/Losses from curtailments and settlements Net expense/(income) $ _____ (a) Includes Volvo for 2009 - 2010...

  • Page 133
    ... plan assets at December 31 Funded status at December 31 Amounts Recognized on the Balance Sheet Prepaid assets Accrued liabilities Total Amounts Recognized in Accumulated Other Comprehensive Loss Unamortized prior service costs/(credits) Unamortized net (gains)/losses and other Total Pension Plans...

  • Page 134
    ... above and is recorded in Automotive cost of sales and Selling, administrative and other expenses. Pension Benefits U.S. Plans 2011 Weighted Average Assumptions Used to Measure our Benefit Obligations and Plan Assets at December 31 Discount rate Expected return on assets Average rate of increase in...

  • Page 135
    ...assets relative to U.S. pension liabilities and to ensure assets are sufficient to pay plan benefits. Our prior target asset allocations disclosed in our 2010 Form 10-K Report were about 30% public equity investments, 45% fixed income investments, and up to 25% alternative investments (e.g., private...

  • Page 136
    ... market value of our assets in major worldwide plans, we held less than 2% of fixed income investments in the obligations of Greece, Ireland, Italy, Portugal, and Spain. Also at year-end 2011, we held less than 2% in Ford securities. Expected Long-Term Rate of Return on Assets. The long-term return...

  • Page 137
    ... to the Financial Statements NOTE 17. RETIREMENT BENEFITS (Continued) Alternative Assets. Hedge funds generally hold liquid and readily priceable securities, such as public equities in long/ short funds, exchange-traded derivatives in macro/commodity trading advisor funds, and corporate bonds in...

  • Page 138
    ... (36%). (g) Primarily short-term investment funds to provide liquidity to plan investment managers and cash held to pay benefits. (h) Primarily cash related to net pending trade purchases/sales and net pending foreign exchange purchases/sales. 136 Ford Motor Company | 2011 Annual Report

  • Page 139
    ... provide liquidity to plan investment managers. (h) Primarily Ford-Werke GmbH ("Ford-Werke") plan assets (insurance contract valued at $3,406 million) and cash related to net pending trade purchases/sales and net pending foreign exchange purchases/sales. Ford Motor Company | 2011 Annual Report 137

  • Page 140
    ...-added and opportunistic. (g) Primarily short-term investment funds to provide liquidity to plan investment managers and cash held to pay benefits. (h) Primarily cash related to net pending trade purchases/sales and net pending foreign exchange purchases/sales. 138 Ford Motor Company | 2011 Annual...

  • Page 141
    ...-term investment funds to provide liquidity to plan investment managers. (h) Primarily Ford-Werke plan assets (insurance contract valued at $3,371 million) and cash related to net pending trade purchases/sales and net pending foreign exchange purchases/sales. Ford Motor Company | 2011 Annual Report...

  • Page 142
    ...-U.S. government Corporate bonds Investment grade High yield Other credit Mortgage/other asset-backed Derivative financial instruments Interest rate contracts Credit contracts Other contracts Total fixed income Alternatives Hedge funds Private equity Real estate Total alternatives Other Total Level...

  • Page 143
    ...-U.S. Plans Return on plan assets Fair Value at January 1, 2011 Asset Category Equity U.S. companies International companies Commingled funds Total equity Fixed Income U.S. government U.S. government-sponsored enterprises Non-U.S. government Corporate bonds Investment grade High yield Other credit...

  • Page 144
    ...-U.S. government Corporate bonds Investment grade High yield Other credit Mortgage/other asset-backed Derivative financial instruments Interest rate contracts Credit contracts Other contracts Total fixed income Alternatives Hedge funds Private equity Real estate Total alternatives Other Total Level...

  • Page 145
    ... by institutional and retail investors. In addition, Ford Credit sponsors securitization programs that provide short-term and long-term asset-backed financing through institutional investors in the U.S. and international capital markets. Debt is recorded on our balance sheet at par value adjusted...

  • Page 146
    ...2011 and 2010. (e) The Ford Interest Advantage program consists of Ford Credit's floating-rate demand notes. (f) Adjustments related to designated fair value hedges of unsecured debt. (g) Debt related to Ford's acquisition of Ford Credit debt securities. 144 Ford Motor Company | 2011 Annual Report

  • Page 147
    ..., 2011 were as follows (in millions): 2012 Automotive Sector Public unsecured debt securities Unamortized discount (a) Convertible notes Unamortized discount (a) U.S. DOE loans Short-term and other debt (b) Total Automotive debt Financial Services Sector Unsecured debt Asset-backed debt Unamortized...

  • Page 148
    ...on the New York Stock Exchange. Excludes 9.215% Debentures due September 15, 2021 with an outstanding balance at December 31, 2011 of $180 million. The proceeds from these securities were on-lent by Ford to Ford Holdings to fund Financial Services activity and are reported as Financial Services debt...

  • Page 149
    ... reduction of about $3 billion in Automotive debt and lower annualized interest costs of about $190 million. It also resulted in a 2011 first quarter pre-tax charge of $60 million in Automotive interest income and other non-operating income/(expense), net. Ford Motor Company | 2011 Annual Report 147

  • Page 150
    ... all amounts related to the term loans under our Credit Agreement. 2010 Secured Term Loan Actions. Pursuant to the requirement to use a portion of the cash proceeds from the sale of Volvo upon the closing thereof to partially prepay certain outstanding term loans under the Credit Agreement, we paid...

  • Page 151
    ... used to fund costs for the research and development of fuel-efficient engines and commercial vehicles with lower emissions, and related upgrades to an engine manufacturing plant. The facility was fully drawn in the third quarter of 2010, and Ford of Britain had outstanding $698 million of loans at...

  • Page 152
    ... to fund operations and to maintain liquidity. Ford Credit's securitization transactions are recorded as asset-backed debt and the associated assets are not derecognized and continue to be included in our financial statements. The finance receivables and net investment in operating leases that...

  • Page 153
    ...non-operating income/(expense), net. On our consolidated balance sheet, we net the remaining debt purchased by Ford with the outstanding debt of Ford Credit, reducing our consolidated marketable securities and debt balances by $201 million and $201 million at December 31, 2011 and 2010, respectively...

  • Page 154
    ... terminated if the performance of the underlying assets deteriorates beyond specified levels. Based on Ford Credit's experience and knowledge as servicer of the related assets, it does not expect any of these programs to be terminated due to such events. 152 Ford Motor Company | 2011 Annual Report

  • Page 155
    ... of the awards under the two plans is calculated differently: 1998 LTIP - Fair value is the average of the high and low market price of our Common Stock on the grant date. 2008 LTIP - Fair value is the closing price of our Common Stock on the grant date. Ford Motor Company | 2011 Annual Report 153

  • Page 156
    ... anniversary. Stock options expire ten years from the grant date and are expensed in Selling, administrative, and other expenses using a three-year graded vesting methodology. We issue new shares of Common Stock upon settlement of RSU-stock and options settleable in shares. During 2012, we intend...

  • Page 157
    ... million, and $2 million, respectively. Compensation cost for stock options was as follows (in millions): 2011 Compensation cost (a) _____ (a) Net of tax benefit of $17 million, $0, and $0 in 2011, 2010, and 2009, respectively. $ 30 $ 2010 34 $ 2009 29 Ford Motor Company | 2011 Annual Report 155

  • Page 158
    ... targets, and company-wide performance targets. Other share-based compensation cost was as follows (in millions): 2011 Compensation cost (a) _____ (a) Net of tax of $3 million, $0, and $0 in 2011, 2010, and 2009, respectively. $ (9) $ 2010 6 $ 2009 11 156 Ford Motor Company | 2011 Annual Report

  • Page 159
    ...): 2011 Ford Europe Ford North America Ford South America Ford Asia Pacific Africa $ 67 154 15 38 $ 2010 56 110 3 1 $ 2009 109 225 20 17 The charges above exclude costs for pension and OPEB. Financial Services Sector Separation Actions We recorded in Selling, administrative and other expenses pre...

  • Page 160
    ... companies accounted for after-tax (in millions) U.S. Non-U.S. Total Provision for/(Benefit from) income taxes (in millions) Current Federal Non-U.S. State and local Total current Deferred Federal Non-U.S. State and local Total deferred Total Reconciliation of effective tax rate U.S. statutory rate...

  • Page 161
    ...2011 Deferred tax assets Employee benefit plans Net operating loss carryforwards Tax credit carryforwards Research expenditures Dealer and customer allowances and claims Other foreign deferred tax assets Allowance for credit losses All other Total gross deferred tax assets Less: valuation allowances...

  • Page 162
    ... transfer pricing disputes exist for years dating back to 1994. We recorded in our consolidated statement of operations approximately $77 million, $45 million, and $54 million in tax-related interest income for the years ended December 31, 2011, 2010, and 2009. As of December 31, 2011 and 2010, we...

  • Page 163
    ...-operating income/(expense), net. As part of the agreement between Ford and Geely, we continue to supply Volvo with various vehicle components. Due to our continued involvement with Volvo after separation, we did not classify Volvo as a discontinued operation. Ford Motor Company | 2011 Annual Report...

  • Page 164
    ... and wholesale financing in certain Asia Pacific markets. These adjustments decreased Accumulated other comprehensive income (foreign currency translation) and increased pre-tax income, which was recorded to Financial Services other income/loss, net. 162 Ford Motor Company | 2011 Annual Report

  • Page 165
    ... Directors declared a dividend on our Common and Class B Stock of $0.05 per share payable on March 1, 2012, to stockholders of record on January 31, 2012. Accordingly, we recorded a reduction to retained earnings of $190 million in the fourth quarter of 2011. Ford Motor Company | 2011 Annual Report...

  • Page 166
    ... a public offering at a price of $4.75 per share, resulting in total gross proceeds of $1.6 billion. As discussed in Note 18, we issued shares of Ford Common Stock from time to time pursuant to an equity distribution agreement and used the proceeds to purchase outstanding Ford Credit debt securities...

  • Page 167
    ... the Financial Statements NOTE 25. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES In the normal course of business, our operations are exposed to global market risks, including the effect of changes in foreign currency exchange rates, certain commodity prices, and interest rates. To manage...

  • Page 168
    ... elected to apply the normal purchases and normal sales classification for physical supply contracts that are entered into for the purpose of procuring commodities to be used in production over a reasonable period in the normal course of our business. 166 Ford Motor Company | 2011 Annual Report

  • Page 169
    ... the FUEL notes (see Note 4). In 2010, a net gain of $7 million of foreign currency translation on net investment hedges was transferred from Accumulated other comprehensive income/(loss) to earnings due to the sale of investments in foreign affiliates. Ford Motor Company | 2011 Annual Report 167

  • Page 170
    ...) (119) (241) $ 2010 2 $ (7) (17) (22) $ 2009 129 (86) (41) 2 $ We expect to reclassify existing net losses of $158 million from Accumulated other comprehensive income/(loss) to Automotive cost of sales during the next twelve months as the underlying exposures are realized. Balance Sheet Effect of...

  • Page 171
    ... our net position with regard to foreign currency and commodity derivative contracts. We posted $70 million and $11 million as of December 31, 2011 and December 31, 2010, respectively, which is reported in Other assets on our consolidated balance sheet. Ford Motor Company | 2011 Annual Report 169

  • Page 172
    ...82 (169) (37) (421) 171 2010 Automotive Net income/(loss) attributable to Ford Motor Company Depreciation and special tools amortization Other amortization Provision for credit and insurance losses Net (gain)/loss on extinguishment of debt Net (gain)/loss on investment securities Net (gain)/loss on...

  • Page 173
    ...)/loss on settlement of U.S. hourly retiree health care obligation Net losses/(earnings) from equity investments in excess of dividends received Foreign currency adjustments Net (gain)/loss on sale of businesses Stock option expense Cash changes in operating assets and liabilities were as follows...

  • Page 174
    ... sale of Volvo-brand vehicles and related service parts throughout the world (including in North America, South America, Europe, Asia Pacific, and Africa), which were reported as operating results through 2009. In August 2010 we completed the sale of Volvo. Results for Volvo are reported as special...

  • Page 175
    ... Financial Services. Ford Credit provides vehicle-related financing, leasing, and insurance. Other Financial Services includes a variety of businesses including holding companies, real estate, and the financing and leasing of some Volvo vehicles in Europe. Special Items In the second quarter of 2010...

  • Page 176
    ... special tools 2,033 amortization Amortization of intangibles 10 Interest expense - Interest income 55 Cash outflow for capital 2,374 expenditures Unconsolidated affiliates Equity in net income/(loss) 91 Total assets at year-end (b) _____ (a) As reported on our sector balance sheet. (b) Total assets...

  • Page 177
    ... income reflected on this line for Financial Services sector is non-financing related. Interest income in the normal course of business for Financial Services sector is reported in Financial Services revenues. (c) As reported on our sector balance sheet. Ford Motor Company | 2011 Annual Report...

  • Page 178
    ... Net Sales and Revenues Long-Lived Assets (a) 2009 Net Sales and Revenues Long-Lived Assets (a) _____ (a) Includes Net property from our consolidated balance sheet and Financial Services Net investment in operating leases from the sector balance sheet. 176 Ford Motor Company | 2011 Annual Report

  • Page 179
    ... release of almost all of the valuation allowance against our net deferred tax assets. The pre-tax income of $280 million in the fourth quarter of 2010 includes a $962 million loss on the conversion of our 2016 and 2036 Convertible Notes to Ford Common Stock. Ford Motor Company | 2011 Annual Report...

  • Page 180
    ... economy or other matters; government incentives; tax matters; financial services; employment-related matters; dealer, supplier, and other contractual relationships; intellectual property rights; environmental matters; shareholder or investor matters; and financial reporting matters. Certain of the...

  • Page 181
    ... related to pre-existing warranties Foreign currency translation and other Ending balance $ $ 3,855 (2,799) 2,215 690 (46) 3,915 $ $ 2010 4,204 (2,475) 1,801 387 (62) 3,855 Excluded from the table above are costs accrued for customer satisfaction actions. Ford Motor Company | 2011 Annual Report...

  • Page 182
    ...of change in accounting principles Net income/(loss) Cash dividends Common Stock price range (NYSE Composite Intraday) High Low Average number of shares of Ford Common and Class B Stock outstanding (in millions) SECTOR BALANCE SHEET DATA AT YEAR-END Assets Automotive sector Financial Services sector...

  • Page 183
    ... to increase U.S. hourly labor costs by less than 1% annually over the four-year contract period. We also expect this increase will be more than offset by more flexible work rules that will allow us to increase manufacturing utilization and efficiency. Ford Motor Company | 2011 Annual Report 181

  • Page 184
    ... of the Company's internal control over financial reporting as of December 31, 2011 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in its report included herein. New York Stock Exchange Required Disclosures On June 3, 2011, Ford's Chief...

  • Page 185
    ... of dividends) Company / Index FORD MOTOR COMPANY S&P 500 INDEX Dow Jones Automobiles & Parts Titans 30 Index Base Period Dec. 2006 Dec. 2007 100 90 100 105 100 93 Dec. 2008 30 66 38 Years Ending Dec. 2009 Dec. 2010 133 224 84 97 75 116 Dec. 2011 143 99 87 Ford Motor Company | 2011 Annual Report...

  • Page 186
    ... Security analysts and institutional investors may contact: Ford Motor Company Investor Relations One American Road Dearborn, MI 48126 Telephone: (313) 390-4563 Fax: (313) 845-6073 E-mail: [email protected] [email protected] STOCK EXCHANGES Ford Common Stock is listed and traded on the New York Stock...

  • Page 187
    ... of dealer and customer financing products and services globally in support of Ford Motor Company vehicle sales • As of year-end 2011, Ford Credit was financing more than 5,700 Ford and Lincoln dealers and more than 3.7 million retail customers around the world Customer Assistance 1.800.727.7000...

  • Page 188
    Ford Motor Company Ford Motor Company One American Road Dearborn, Michigan 48126 www.fordmotorcompany.com 2011 Annual Report Printed in U.S.A. 10% post-consumer waste paper. Ford encourages you to please recycle this document.