(Mark One) | |
R | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended March 31, 2013 | |
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 Statement of Comprehensive Income | |||
Condensed Consolidated Statement of Cash Flows | |||
Condensed Sector Statement of Cash Flows | |||
Item 2 | |||
Other Financial Information | |||
Item 3 | |||
Automotive Sector | |||
Financial Services Sector | |||
Item 4 | |||
Part II - Other Information | |||
Item 1 | |||
Item 2 | Unregistered Sales of Equity Securities and Use of Proceeds | ||
Item 6 | |||
Exhibit Index |
For the periods ended March 31, | |||||||
2013 | 2012 | ||||||
First Quarter | |||||||
(unaudited) | |||||||
Revenues | |||||||
Automotive | $ | 33,858 | $ | 30,525 | |||
Financial Services | 1,952 | 1,920 | |||||
Total revenues | 35,810 | 32,445 | |||||
Costs and expenses | |||||||
Automotive cost of sales | 30,005 | 26,934 | |||||
Selling, administrative, and other expenses | 3,285 | 2,878 | |||||
Financial Services interest expense | 706 | 826 | |||||
Financial Services provision for credit and insurance losses | 40 | (16 | ) | ||||
Total costs and expenses | 34,036 | 30,622 | |||||
Automotive interest expense | 206 | 185 | |||||
Automotive interest income and other income/(loss), net (Note 15) | 245 | 232 | |||||
Financial Services other income/(loss), net (Note 15) | 96 | 73 | |||||
Equity in net income/(loss) of affiliated companies | 214 | 95 | |||||
Income before income taxes | 2,123 | 2,038 | |||||
Provision for/(Benefit from) income taxes (Note 16) | 511 | 640 | |||||
Net income | 1,612 | 1,398 | |||||
Less: Income/(Loss) attributable to noncontrolling interests | 1 | 2 | |||||
Net income attributable to Ford Motor Company | $ | 1,611 | $ | 1,396 | |||
AMOUNTS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 18) | |||||||
Basic income | $ | 0.41 | $ | 0.37 | |||
Diluted income | $ | 0.40 | $ | 0.35 | |||
Cash dividends declared | $ | 0.10 | $ | 0.05 |
For the periods ended March 31, | |||||||
2013 | 2012 | ||||||
First Quarter | |||||||
(unaudited) | |||||||
Net income | $ | 1,612 | $ | 1,398 | |||
Other comprehensive income/(loss), net of tax (Note 14) | |||||||
Foreign currency translation | (367 | ) | 523 | ||||
Derivative instruments | 97 | (63 | ) | ||||
Pension and other postretirement benefits | 591 | (40 | ) | ||||
Total other comprehensive income/(loss), net of tax | 321 | 420 | |||||
Comprehensive income | 1,933 | 1,818 | |||||
Less: Comprehensive income/(loss) attributable to noncontrolling interests | 1 | 2 | |||||
Comprehensive income attributable to Ford Motor Company | $ | 1,932 | $ | 1,816 |
For the periods ended March 31, | |||||||
2013 | 2012 | ||||||
First Quarter | |||||||
(unaudited) | |||||||
AUTOMOTIVE | |||||||
Revenues | $ | 33,858 | $ | 30,525 | |||
Costs and expenses | |||||||
Cost of sales | 30,005 | 26,934 | |||||
Selling, administrative, and other expenses | 2,481 | 2,135 | |||||
Total costs and expenses | 32,486 | 29,069 | |||||
Interest expense | 206 | 185 | |||||
Interest income and other income/(loss), net (Note 15) | 245 | 232 | |||||
Equity in net income/(loss) of affiliated companies | 209 | 79 | |||||
Income before income taxes — Automotive | 1,620 | 1,582 | |||||
FINANCIAL SERVICES | |||||||
Revenues | 1,952 | 1,920 | |||||
Costs and expenses | |||||||
Interest expense | 706 | 826 | |||||
Depreciation on vehicles subject to operating leases | 644 | 590 | |||||
Operating and other expenses | 160 | 153 | |||||
Provision for credit and insurance losses | 40 | (16 | ) | ||||
Total costs and expenses | 1,550 | 1,553 | |||||
Other income/(loss), net (Note 15) | 96 | 73 | |||||
Equity in net income/(loss) of affiliated companies | 5 | 16 | |||||
Income before income taxes — Financial Services | 503 | 456 | |||||
TOTAL COMPANY | |||||||
Income before income taxes | 2,123 | 2,038 | |||||
Provision for/(Benefit from) income taxes (Note 16) | 511 | 640 | |||||
Net income | 1,612 | 1,398 | |||||
Less: Income/(Loss) attributable to noncontrolling interests | 1 | 2 | |||||
Net income attributable to Ford Motor Company | $ | 1,611 | $ | 1,396 |
March 31, 2013 | December 31, 2012 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 13,820 | $ | 15,659 | |||
Marketable securities | 20,521 | 20,284 | |||||
Finance receivables, net (Note 5) | 71,823 | 71,510 | |||||
Other receivables, net | 11,384 | 10,828 | |||||
Net investment in operating leases | 17,265 | 16,451 | |||||
Inventories (Note 7) | 8,423 | 7,362 | |||||
Equity in net assets of affiliated companies | 3,291 | 3,246 | |||||
Net property | 25,795 | 24,942 | |||||
Deferred income taxes | 14,479 | 15,185 | |||||
Net intangible assets | 84 | 87 | |||||
Assets held for sale (Note 17) | 571 | — | |||||
Other assets | 5,554 | 5,000 | |||||
Total assets | $ | 193,010 | $ | 190,554 | |||
LIABILITIES | |||||||
Payables | $ | 20,600 | $ | 19,308 | |||
Accrued liabilities and deferred revenue (Note 9) | 46,454 | 49,407 | |||||
Debt (Note 11) | 107,356 | 105,058 | |||||
Deferred income taxes | 638 | 470 | |||||
Total liabilities | 175,048 | 174,243 | |||||
Redeemable noncontrolling interest (Note 13) | 324 | 322 | |||||
EQUITY | |||||||
Capital stock | |||||||
Common Stock, par value $.01 per share (3,889 million shares issued) | 39 | 39 | |||||
Class B Stock, par value $.01 per share (71 million shares issued) | 1 | 1 | |||||
Capital in excess of par value of stock | 21,094 | 20,976 | |||||
Retained earnings | 19,296 | 18,077 | |||||
Accumulated other comprehensive income/(loss) (Note 14) | (22,533 | ) | (22,854 | ) | |||
Treasury stock | (302 | ) | (292 | ) | |||
Total equity attributable to Ford Motor Company | 17,595 | 15,947 | |||||
Equity attributable to noncontrolling interests | 43 | 42 | |||||
Total equity | 17,638 | 15,989 | |||||
Total liabilities and equity | $ | 193,010 | $ | 190,554 |
March 31, 2013 | December 31, 2012 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 2,977 | $ | 2,911 | |||
Finance receivables, net | 47,426 | 47,515 | |||||
Net investment in operating leases | 6,557 | 6,308 | |||||
Other assets | 47 | 4 | |||||
LIABILITIES | |||||||
Accrued liabilities and deferred revenue | 60 | 134 | |||||
Debt | 40,527 | 40,245 |
March 31, 2013 | December 31, 2012 | ||||||
ASSETS | (unaudited) | ||||||
Automotive | |||||||
Cash and cash equivalents | $ | 5,989 | $ | 6,247 | |||
Marketable securities | 18,190 | 18,178 | |||||
Total cash and marketable securities | 24,179 | 24,425 | |||||
Receivables, less allowances of $119 and $115 | 5,677 | 5,361 | |||||
Inventories (Note 7) | 8,423 | 7,362 | |||||
Deferred income taxes | 3,828 | 3,488 | |||||
Net investment in operating leases | 1,036 | 1,415 | |||||
Other current assets | 1,197 | 1,124 | |||||
Current receivable from Financial Services | 565 | — | |||||
Total current assets | 44,905 | 43,175 | |||||
Equity in net assets of affiliated companies | 3,165 | 3,112 | |||||
Net property | 25,671 | 24,813 | |||||
Deferred income taxes | 12,081 | 13,325 | |||||
Net intangible assets | 84 | 87 | |||||
Non-current receivable from Financial Services | 107 | — | |||||
Other assets | 2,025 | 1,946 | |||||
Total Automotive assets | 88,038 | 86,458 | |||||
Financial Services | |||||||
Cash and cash equivalents | 7,831 | 9,412 | |||||
Marketable securities | 2,331 | 2,106 | |||||
Finance receivables, net (Note 5) | 76,632 | 75,770 | |||||
Net investment in operating leases | 16,229 | 15,036 | |||||
Equity in net assets of affiliated companies | 126 | 134 | |||||
Assets held for sale (Note 17) | 571 | — | |||||
Other assets | 3,532 | 3,450 | |||||
Receivable from Automotive | — | 252 | |||||
Total Financial Services assets | 107,252 | 106,160 | |||||
Intersector elimination | (672 | ) | (252 | ) | |||
Total assets | $ | 194,618 | $ | 192,366 | |||
LIABILITIES | |||||||
Automotive | |||||||
Payables | $ | 19,280 | $ | 18,151 | |||
Accrued liabilities and deferred revenue (Note 9) | 14,528 | 15,358 | |||||
Deferred income taxes | 185 | 81 | |||||
Debt payable within one year (Note 11) | 1,244 | 1,386 | |||||
Current payable to Financial Services | — | 252 | |||||
Total current liabilities | 35,237 | 35,228 | |||||
Long-term debt (Note 11) | 14,761 | 12,870 | |||||
Other liabilities (Note 9) | 28,840 | 30,549 | |||||
Deferred income taxes | 409 | 514 | |||||
Total Automotive liabilities | 79,247 | 79,161 | |||||
Financial Services | |||||||
Payables | 1,320 | 1,157 | |||||
Debt (Note 11) | 91,351 | 90,802 | |||||
Deferred income taxes | 1,652 | 1,687 | |||||
Other liabilities and deferred income (Note 9) | 3,086 | 3,500 | |||||
Payable to Automotive | 672 | — | |||||
Total Financial Services liabilities | 98,081 | 97,146 | |||||
Intersector elimination | (672 | ) | (252 | ) | |||
Total liabilities | 176,656 | 176,055 | |||||
Redeemable noncontrolling interest (Note 13) | 324 | 322 | |||||
EQUITY | |||||||
Capital stock | |||||||
Common Stock, par value $.01 per share (3,889 million shares issued) | 39 | 39 | |||||
Class B Stock, par value $.01 per share (71 million shares issued) | 1 | 1 | |||||
Capital in excess of par value of stock | 21,094 | 20,976 | |||||
Retained earnings | 19,296 | 18,077 | |||||
Accumulated other comprehensive income/(loss) (Note 14) | (22,533 | ) | (22,854 | ) | |||
Treasury stock | (302 | ) | (292 | ) | |||
Total equity attributable to Ford Motor Company | 17,595 | 15,947 | |||||
Equity attributable to noncontrolling interests | 43 | 42 | |||||
Total equity | 17,638 | 15,989 | |||||
Total liabilities and equity | $ | 194,618 | $ | 192,366 |
For the periods ended March 31, | |||||||
2013 | 2012 | ||||||
First Quarter | |||||||
(unaudited) | |||||||
Cash flows from operating activities of continuing operations | |||||||
Net cash provided by/(used in) operating activities | $ | 211 | $ | 2,075 | |||
Cash flows from investing activities of continuing operations | |||||||
Capital expenditures | (1,483 | ) | (1,093 | ) | |||
Acquisitions of retail and other finance receivables and operating leases | (10,358 | ) | (8,929 | ) | |||
Collections of retail and other finance receivables and operating leases | 8,224 | 7,850 | |||||
Purchases of securities | (38,953 | ) | (19,816 | ) | |||
Sales and maturities of securities | 38,761 | 17,704 | |||||
Cash change due to initial consolidation of businesses | 9 | — | |||||
Proceeds from sale of business | — | 5 | |||||
Settlements of derivatives | (217 | ) | (201 | ) | |||
Other | 166 | (31 | ) | ||||
Net cash provided by/(used in) investing activities | (3,851 | ) | (4,511 | ) | |||
Cash flows from financing activities of continuing operations | |||||||
Cash dividends | (392 | ) | (190 | ) | |||
Purchases of Common Stock | (10 | ) | (27 | ) | |||
Changes in short-term debt | (1,428 | ) | (1,651 | ) | |||
Proceeds from issuance of other debt | 11,242 | 10,318 | |||||
Principal payments on other debt | (7,548 | ) | (8,164 | ) | |||
Other | 103 | 84 | |||||
Net cash provided by/(used in) financing activities | 1,967 | 370 | |||||
Effect of exchange rate changes on cash and cash equivalents | (166 | ) | 162 | ||||
Net increase/(decrease) in cash and cash equivalents | $ | (1,839 | ) | $ | (1,904 | ) | |
Cash and cash equivalents at January 1 | $ | 15,659 | $ | 17,148 | |||
Net increase/(decrease) in cash and cash equivalents | (1,839 | ) | (1,904 | ) | |||
Cash and cash equivalents at March 31 | $ | 13,820 | $ | 15,244 |
For the periods ended March 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
First Quarter | |||||||||||||||
Automotive | Financial Services | Automotive | Financial Services | ||||||||||||
(unaudited) | |||||||||||||||
Cash flows from operating activities of continuing operations | |||||||||||||||
Net cash provided by/(used in) operating activities | $ | 721 | $ | 1,552 | $ | 875 | $ | 1,269 | |||||||
Cash flows from investing activities of continuing operations | |||||||||||||||
Capital expenditures | (1,471 | ) | (12 | ) | (1,083 | ) | (10 | ) | |||||||
Acquisitions of retail and other finance receivables and operating leases | — | (10,576 | ) | — | (9,043 | ) | |||||||||
Collections of retail and other finance receivables and operating leases | — | 8,224 | — | 7,850 | |||||||||||
Net collections/(acquisitions) of wholesale receivables | — | (1,844 | ) | — | 45 | ||||||||||
Purchases of securities | (29,697 | ) | (9,256 | ) | (14,302 | ) | (5,514 | ) | |||||||
Sales and maturities of securities | 29,740 | 9,021 | 13,525 | 4,380 | |||||||||||
Cash change due to initial consolidation of businesses | 9 | — | — | — | |||||||||||
Proceeds from sale of business | — | — | — | 5 | |||||||||||
Settlements of derivatives | (177 | ) | (40 | ) | (174 | ) | (27 | ) | |||||||
Investing activity (to)/from Financial Services | (129 | ) | — | 45 | — | ||||||||||
Other | 147 | 19 | 10 | (41 | ) | ||||||||||
Net cash provided by/(used in) investing activities | (1,578 | ) | (4,464 | ) | (1,979 | ) | (2,355 | ) | |||||||
Cash flows from financing activities of continuing operations | |||||||||||||||
Cash dividends | (392 | ) | — | (190 | ) | — | |||||||||
Purchases of Common Stock | (10 | ) | — | (27 | ) | — | |||||||||
Changes in short-term debt | (240 | ) | (1,188 | ) | (19 | ) | (1,632 | ) | |||||||
Proceeds from issuance of other debt | 2,059 | 9,183 | 674 | 9,644 | |||||||||||
Principal payments on other debt | (823 | ) | (6,725 | ) | (132 | ) | (8,233 | ) | |||||||
Financing activity to/(from) Automotive | — | 129 | — | (45 | ) | ||||||||||
Other | 43 | 60 | 9 | 75 | |||||||||||
Net cash provided by/(used in) financing activities | 637 | 1,459 | 315 | (191 | ) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | (38 | ) | (128 | ) | 85 | 77 | |||||||||
Net increase/(decrease) in cash and cash equivalents | $ | (258 | ) | $ | (1,581 | ) | $ | (704 | ) | $ | (1,200 | ) | |||
Cash and cash equivalents at January 1 | $ | 6,247 | $ | 9,412 | $ | 7,965 | $ | 9,183 | |||||||
Net increase/(decrease) in cash and cash equivalents | (258 | ) | (1,581 | ) | (704 | ) | (1,200 | ) | |||||||
Cash and cash equivalents at March 31 | $ | 5,989 | $ | 7,831 | $ | 7,261 | $ | 7,983 |
Equity/(Deficit) Attributable to Ford Motor Company | |||||||||||||||||||||||||||||||
Capital Stock | Cap. in Excess of Par Value of Stock | Retained Earnings/ (Accumulated Deficit) | Accumulated Other Comprehensive Income/(Loss) (Note 14) | Treasury Stock | Total | Equity/(Deficit) Attributable to Non-controlling Interests | Total Equity/ (Deficit) | ||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 40 | $ | 20,976 | $ | 18,077 | $ | (22,854 | ) | $ | (292 | ) | $ | 15,947 | $ | 42 | $ | 15,989 | |||||||||||||
Net income | — | — | 1,611 | — | — | 1,611 | 1 | 1,612 | |||||||||||||||||||||||
Other comprehensive income/(loss), net of tax | — | — | — | 321 | — | 321 | — | 321 | |||||||||||||||||||||||
Common stock issued (including share-based compensation impacts) | — | 118 | — | — | — | 118 | — | 118 | |||||||||||||||||||||||
Treasury stock/other | — | — | — | — | (10 | ) | (10 | ) | — | (10 | ) | ||||||||||||||||||||
Cash dividends declared | — | — | (392 | ) | — | — | (392 | ) | — | (392 | ) | ||||||||||||||||||||
Balance at March 31, 2013 | $ | 40 | $ | 21,094 | $ | 19,296 | $ | (22,533 | ) | $ | (302 | ) | $ | 17,595 | $ | 43 | $ | 17,638 | |||||||||||||
Balance at December 31, 2011 | $ | 38 | $ | 20,905 | $ | 12,985 | $ | (18,734 | ) | $ | (166 | ) | $ | 15,028 | $ | 43 | $ | 15,071 | |||||||||||||
Net income | — | — | 1,396 | — | — | 1,396 | 2 | 1,398 | |||||||||||||||||||||||
Other comprehensive income/(loss), net of tax | — | — | — | 420 | — | 420 | — | 420 | |||||||||||||||||||||||
Common stock issued (including share-based compensation impacts) | 1 | (21 | ) | — | — | — | (20 | ) | — | (20 | ) | ||||||||||||||||||||
Treasury stock/other | — | — | — | — | (27 | ) | (27 | ) | (1 | ) | (28 | ) | |||||||||||||||||||
Cash dividends declared | — | — | (191 | ) | — | — | (191 | ) | — | (191 | ) | ||||||||||||||||||||
Balance at March 31, 2012 | $ | 39 | $ | 20,884 | $ | 14,190 | $ | (18,314 | ) | $ | (193 | ) | $ | 16,606 | $ | 44 | $ | 16,650 |
Footnote | Page | |
Note 1 | Presentation | |
Note 2 | Accounting Standards Issued But Not Yet Adopted | |
Note 3 | Fair Value Measurements | |
Note 4 | Restricted Cash | |
Note 5 | Finance Receivables | |
Note 6 | Allowance for Credit Losses | |
Note 7 | Inventories | |
Note 8 | Variable Interest Entities | |
Note 9 | Accrued Liabilities and Deferred Revenue | |
Note 10 | Retirement Benefits | |
Note 11 | Debt and Commitments | |
Note 12 | Derivative Financial Instruments and Hedging Activities | |
Note 13 | Redeemable Noncontrolling Interest | |
Note 14 | Accumulated Other Comprehensive Income/(Loss) | |
Note 15 | Other Income/(Loss) | |
Note 16 | Income Taxes | |
Note 17 | Changes in Investments in Affiliates and Assets Held For Sale | |
Note 18 | Amounts Per Share Attributable to Ford Motor Company Common and Class B Stock | |
Note 19 | Segment Information | |
Note 20 | Commitments and Contingencies |
March 31, 2013 | December 31, 2012 | ||||||
Sector balance sheet presentation of deferred income tax assets | |||||||
Automotive sector current deferred income tax assets | $ | 3,828 | $ | 3,488 | |||
Automotive sector non-current deferred income tax assets | 12,081 | 13,325 | |||||
Financial Services sector deferred income tax assets (a) | 178 | 184 | |||||
Total | 16,087 | 16,997 | |||||
Reclassification for netting of deferred income taxes | (1,608 | ) | (1,812 | ) | |||
Consolidated balance sheet presentation of deferred income tax assets | $ | 14,479 | $ | 15,185 | |||
Sector balance sheet presentation of deferred income tax liabilities | |||||||
Automotive sector current deferred income tax liabilities | $ | 185 | $ | 81 | |||
Automotive sector non-current deferred income tax liabilities | 409 | 514 | |||||
Financial Services sector deferred income tax liabilities | 1,652 | 1,687 | |||||
Total | 2,246 | 2,282 | |||||
Reclassification for netting of deferred income taxes | (1,608 | ) | (1,812 | ) | |||
Consolidated balance sheet presentation of deferred income tax liabilities | $ | 638 | $ | 470 |
(a) | Financial Services deferred income tax assets are included in Financial Services other assets on our sector balance sheet. |
First Quarter | |||||||
2013 | 2012 | ||||||
Automotive net cash provided by/(used in) operating activities | $ | 721 | $ | 875 | |||
Financial Services net cash provided by/(used in) operating activities | 1,552 | 1,269 | |||||
Total sector net cash provided by/(used in) operating activities | 2,273 | 2,144 | |||||
Reclassifications from investing to operating cash flows | |||||||
Wholesale receivables (a) | (1,844 | ) | 45 | ||||
Finance receivables (b) | (218 | ) | (114 | ) | |||
Consolidated net cash provided by/(used in) operating activities | $ | 211 | $ | 2,075 | |||
Automotive net cash provided by/(used in) investing activities | $ | (1,578 | ) | $ | (1,979 | ) | |
Financial Services net cash provided by/(used in) investing activities | (4,464 | ) | (2,355 | ) | |||
Total sector net cash provided by/(used in) investing activities | (6,042 | ) | (4,334 | ) | |||
Reclassifications from investing to operating cash flows | |||||||
Wholesale receivables (a) | 1,844 | (45 | ) | ||||
Finance receivables (b) | 218 | 114 | |||||
Reclassifications from investing to financing cash flows | |||||||
Maturity of Financial Services sector debt held by Automotive sector (c) | — | (201 | ) | ||||
Elimination of investing activity to/(from) Financial Services in consolidation | 129 | (45 | ) | ||||
Consolidated net cash provided by/(used in) investing activities | $ | (3,851 | ) | $ | (4,511 | ) | |
Automotive net cash provided by/(used in) financing activities | $ | 637 | $ | 315 | |||
Financial Services net cash provided by/(used in) financing activities | 1,459 | (191 | ) | ||||
Total sector net cash provided by/(used in) financing activities | 2,096 | 124 | |||||
Reclassifications from investing to financing cash flows | |||||||
Maturity of Financial Services sector debt held by Automotive sector (c) | — | 201 | |||||
Elimination of investing activity to/(from) Financial Services in consolidation | (129 | ) | 45 | ||||
Consolidated net cash provided by/(used in) financing activities | $ | 1,967 | $ | 370 |
(a) | In addition to the cash flow from vehicles sold by us, the cash flow from wholesale finance receivables (being reclassified from investing to operating) includes dealer financing by Ford Credit of used and non-Ford vehicles. One hundred percent of cash flows from these wholesale finance receivables have been reclassified for consolidated presentation as the portion of these cash flows from used and non-Ford vehicles is impracticable to separate. |
(b) | Includes cash flows of finance receivables purchased/collected by the Financial Services sector from certain divisions and subsidiaries of the Automotive sector. |
(c) | 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. |
• | Level 1 - inputs include quoted prices for identical instruments and are the most observable |
• | Level 2 - inputs include quoted prices for similar instruments and observable inputs such as interest rates, currency exchange rates, and yield curves |
• | Level 3 - inputs include data not observable in the market and reflect management judgment about the assumptions market participants would use in pricing the instruments |
March 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Automotive Sector | |||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Cash equivalents – financial instruments | |||||||||||||||||||||||||||||||
U.S. government | $ | 50 | $ | — | $ | — | $ | 50 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
U.S. government-sponsored enterprises | — | 400 | — | 400 | — | 718 | — | 718 | |||||||||||||||||||||||
Non-U.S. government | — | — | — | — | — | 139 | — | 139 | |||||||||||||||||||||||
Non-U.S. government agencies (a) | — | 410 | — | 410 | — | 365 | — | 365 | |||||||||||||||||||||||
Corporate debt | — | 4 | — | 4 | — | — | — | — | |||||||||||||||||||||||
Total cash equivalents – financial instruments (b) | 50 | 814 | — | 864 | — | 1,222 | — | 1,222 | |||||||||||||||||||||||
Marketable securities | |||||||||||||||||||||||||||||||
U.S. government | 3,613 | — | — | 3,613 | 4,493 | — | — | 4,493 | |||||||||||||||||||||||
U.S. government-sponsored enterprises | — | 5,295 | — | 5,295 | — | 5,459 | — | 5,459 | |||||||||||||||||||||||
Non-U.S. government agencies (a) | — | 5,811 | — | 5,811 | — | 4,794 | — | 4,794 | |||||||||||||||||||||||
Corporate debt | — | 2,270 | — | 2,270 | — | 1,871 | — | 1,871 | |||||||||||||||||||||||
Mortgage-backed and other asset-backed | — | 27 | — | 27 | — | 25 | — | 25 | |||||||||||||||||||||||
Equities | 201 | — | — | 201 | 142 | — | — | 142 | |||||||||||||||||||||||
Non-U.S. government | — | 948 | — | 948 | — | 1,367 | — | 1,367 | |||||||||||||||||||||||
Other liquid investments (c) | — | 25 | — | 25 | — | 27 | — | 27 | |||||||||||||||||||||||
Total marketable securities | 3,814 | 14,376 | — | 18,190 | 4,635 | 13,543 | — | 18,178 | |||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||||||||||
Foreign currency exchange contracts | — | 395 | — | 395 | — | 218 | — | 218 | |||||||||||||||||||||||
Commodity contracts | — | 10 | 11 | 21 | — | 19 | 4 | 23 | |||||||||||||||||||||||
Total derivative financial instruments (d) | — | 405 | 11 | 416 | — | 237 | 4 | 241 | |||||||||||||||||||||||
Total assets at fair value | $ | 3,864 | $ | 15,595 | $ | 11 | $ | 19,470 | $ | 4,635 | $ | 15,002 | $ | 4 | $ | 19,641 | |||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 479 | $ | — | $ | 479 | $ | — | $ | 486 | $ | — | $ | 486 | |||||||||||||||
Commodity contracts | — | 90 | 4 | 94 | — | 112 | 12 | 124 | |||||||||||||||||||||||
Total derivative financial instruments (d) | — | 569 | 4 | 573 | — | 598 | 12 | 610 | |||||||||||||||||||||||
Total liabilities at fair value | $ | — | $ | 569 | $ | 4 | $ | 573 | $ | — | $ | 598 | $ | 12 | $ | 610 |
(a) | Includes notes issued by non-U.S. government agencies, as well as notes issued by supranational institutions. |
(b) | Excludes time deposits, certificates of deposit, money market accounts, and other cash equivalents reported at par value on our balance sheet totaling $3.4 billion and $3 billion at March 31, 2013 and December 31, 2012, respectively, for the Automotive sector. In addition to these cash equivalents, our Automotive sector also had cash on hand totaling $1.7 billion and $2 billion at March 31, 2013 and December 31, 2012, respectively. |
(c) | Includes certificates of deposit and time deposits subject to changes in value. |
(d) | See Note 12 for additional information regarding derivative financial instruments. |
March 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Financial Services Sector | |||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Cash equivalents – financial instruments | |||||||||||||||||||||||||||||||
U.S. government | $ | 2 | $ | — | $ | — | $ | 2 | $ | 200 | $ | — | $ | — | $ | 200 | |||||||||||||||
U.S. government-sponsored enterprises | — | 136 | — | 136 | — | 20 | — | 20 | |||||||||||||||||||||||
Non-U.S. government | — | 42 | — | 42 | — | 103 | — | 103 | |||||||||||||||||||||||
Corporate debt | — | 3 | — | 3 | — | 1 | — | 1 | |||||||||||||||||||||||
Total cash equivalents – financial instruments (a) | 2 | 181 | — | 183 | 200 | 124 | — | 324 | |||||||||||||||||||||||
Marketable securities | |||||||||||||||||||||||||||||||
U.S. government | 629 | — | — | 629 | 620 | — | — | 620 | |||||||||||||||||||||||
U.S. government-sponsored enterprises | — | 297 | — | 297 | — | 12 | — | 12 | |||||||||||||||||||||||
Non-U.S. government agencies (b) | — | 182 | — | 182 | — | 95 | — | 95 | |||||||||||||||||||||||
Corporate debt | — | 1,120 | — | 1,120 | — | 1,155 | — | 1,155 | |||||||||||||||||||||||
Mortgage-backed and other asset-backed | — | 54 | — | 54 | — | 67 | — | 67 | |||||||||||||||||||||||
Non-U.S. government | — | 39 | — | 39 | — | 142 | — | 142 | |||||||||||||||||||||||
Other liquid investments (c) | — | 10 | — | 10 | — | 15 | — | 15 | |||||||||||||||||||||||
Total marketable securities | 629 | 1,702 | — | 2,331 | 620 | 1,486 | — | 2,106 | |||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||||||||||
Interest rate contracts | — | 1,220 | — | 1,220 | — | 1,291 | — | 1,291 | |||||||||||||||||||||||
Foreign currency exchange contracts | — | 51 | — | 51 | — | 9 | — | 9 | |||||||||||||||||||||||
Cross-currency interest rate swap contracts | — | 45 | — | 45 | — | — | — | — | |||||||||||||||||||||||
Total derivative financial instruments (d) | — | 1,316 | — | 1,316 | — | 1,300 | — | 1,300 | |||||||||||||||||||||||
Total assets at fair value | $ | 631 | $ | 3,199 | $ | — | $ | 3,830 | $ | 820 | $ | 2,910 | $ | — | $ | 3,730 | |||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | 215 | $ | — | $ | 215 | $ | — | $ | 256 | $ | — | $ | 256 | |||||||||||||||
Foreign currency exchange contracts | — | 14 | — | 14 | — | 8 | — | 8 | |||||||||||||||||||||||
Cross-currency interest rate swap contracts | — | 26 | — | 26 | — | 117 | — | 117 | |||||||||||||||||||||||
Total derivative financial instruments (d) | — | 255 | — | 255 | — | 381 | — | 381 | |||||||||||||||||||||||
Total liabilities at fair value | $ | — | $ | 255 | $ | — | $ | 255 | $ | — | $ | 381 | $ | — | $ | 381 |
(a) | Excludes time deposits, certificates of deposit, and money market accounts reported at par value on our balance sheet totaling $5.4 billion and $6.5 billion at March 31, 2013 and December 31, 2012, respectively. In addition to these cash equivalents, we also had cash on hand totaling $2.2 billion and $2.6 billion at March 31, 2013 and December 31, 2012, respectively. |
(b) | Includes notes issued by non-U.S. government agencies, as well as notes issued by supranational institutions. |
(c) | Includes certificates of deposit and time deposits subject to changes in value. |
(d) | See Note 12 for additional information regarding derivative financial instruments. |
March 31, 2013 | December 31, 2012 | ||||||
Financial Services Sector | |||||||
North America | |||||||
Retail receivables | $ | 44 | $ | 52 | |||
Dealer loans | 1 | 2 | |||||
Total North America | 45 | 54 | |||||
International | |||||||
Retail receivables | 24 | 26 | |||||
Total International | 24 | 26 | |||||
Total Financial Services sector | $ | 69 | $ | 80 |
Total Gains/(Losses) | |||||||
First Quarter | |||||||
2013 | 2012 | ||||||
Financial Services Sector | |||||||
North America | |||||||
Retail receivables | $ | (21 | ) | $ | (11 | ) | |
Dealer loans | (1 | ) | — | ||||
Total North America | (22 | ) |