# Ford Motor Co: Form 10-Q for the period ended Mar 31, 2011

- Company: [Ford Motor Co](/companies/f.md) (CIK 37996)
- Form: 10-Q
- Filed: 2011-05-10
- Accepted by EDGAR: May 10, 2011, 20:46 ET
- Period: 2011-03-31
- Accession: 0001157523-11-002989
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/37996/000115752311002989/a6708785.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/37996/000115752311002989/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2011-03-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2011-01-01 to 2011-03-31 | $33.11bn | us-gaap:Revenues |
| Cost of revenue | 3 months, 2011-01-01 to 2011-03-31 | $26.78bn | us-gaap:CostOfGoodsAndServicesSold |
| Selling, general and administrative | 3 months, 2011-01-01 to 2011-03-31 | $2.73bn | us-gaap:SellingGeneralAndAdministrativeExpense |
| Interest expense | 3 months, 2011-01-01 to 2011-03-31 | $1.17bn | us-gaap:InterestExpense |
| Income tax | 3 months, 2011-01-01 to 2011-03-31 | $220.0m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2011-01-01 to 2011-03-31 | $2.55bn | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2011-01-01 to 2011-03-31 | $0.61 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2011-01-01 to 2011-03-31 | $0.68 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2011-01-01 to 2011-03-31 | 4,266,000,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months, 2011-01-01 to 2011-03-31 | $2.50bn | us-gaap:NetCashProvidedByUsedInOperatingActivitiesContinuingOperations |
| Capital expenditure | 3 months, 2011-01-01 to 2011-03-31 | $929.0m | us-gaap:PaymentsToAcquireProductiveAssets |
| Cash and equivalents | at 2011-03-31 | $21.32bn | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Total assets | at 2011-03-31 | $167.39bn | us-gaap:Assets |
| Total liabilities | at 2011-03-31 | $164.93bn | us-gaap:Liabilities |
| Shareholders' equity | at 2011-03-31 | $2.43bn | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 6,272 characters.

At March 31, 2011, Ford Credit's liquidity available for use was lower than year-end 2010 by about $4 billion, reflecting cash payments for debt maturities, repurchases and calls, distributions and tax payments that were lower than the liquidity generated from the impact of lower receivables, profits and new debt issuances. Liquidity available for use was 21% of managed receivables. In addition to the $18.2 billion of liquidity available for use, the $6.6 billion of capacity in excess of eligible receivables provides Ford Credit with an alternative for funding future purchases or originations and gives Ford Credit flexibility to shift capacity among markets and asset classes.

*Cash, Cash Equivalents, and Marketable Securities.* At March 31, 2011, Ford Credit's cash, cash equivalents, and marketable securities (excluding marketable securities related to insurance activities) totaled $13 billion, compared with $14.6 billion at year-end 2010. In the normal course of Ford Credit's funding activities, Ford Credit may generate more proceeds than are required for its immediate funding needs. These excess amounts are maintained primarily as highly liquid investments, which provide liquidity for Ford Credit's short-term funding needs and give it flexibility in the use of its other funding programs. Cash, cash equivalents, and marketable securities (excluding marketable securities related to insurance activities) primarily include U.S. Treasury obligations, federal agency securities, bank time deposits, investment-grade corporate securities, A-1/P-1 (or higher) rated commercial paper, debt obligations of certain foreign governments, foreign government agencies, and supranational institutions and money market funds that carry the highest possible ratings. The average maturity of these investments ranges from 90 days to up to one year and is adjusted based on market conditions and liquidity needs. Ford Credit monitors its cash levels and average maturity on a daily basis. Cash, cash equivalents, and marketable securities include amounts to be used only to support Ford Credit's on-balance sheet securitization transactions of $4.5 billion and $4.2 billion at March 31, 2011 and December 31, 2010, respectively.

Ford Credit's substantial liquidity and cash balance have provided the opportunity to selectively call and repurchase its unsecured debt on the open market. In the first quarter of 2011, Ford Credit called about $500 million of its unsecured debt maturities and repurchased about $200 million.

*Committed Liquidity Programs.* Ford Credit and its subsidiaries, including FCE, have entered into agreements with a number of bank-sponsored asset-backed commercial paper conduits and other financial institutions whereby such parties are contractually committed, at Ford Credit's option, to purchase from Ford Credit eligible retail or wholesale assets or to purchase or make advances under asset-backed securities backed by retail, lease or wholesale assets for proceeds of up to $23.8 billion at March 31, 2011 ($12.9 billion retail, $9.1 billion wholesale and $1.8 billion supported by various retail, lease or wholesale assets) of which $7.9 billion are commitments to FCE. These committed liquidity programs have varying maturity dates, with $19.1 billion having maturities within the next twelve months (of which $3.8 billion relates to FCE commitments), and the remaining balance having maturities between April 2011 and May 2015. Ford Credit plans to achieve capacity renewals to protect its global funding needs, optimize capacity utilization and maintain sufficient liquidity. Ford Credit's ability to obtain funding under these programs is subject to having a sufficient amount of assets eligible for these programs as well as its ability to obtain interest rate hedging arrangements for certain securitization transactions. Ford Credit's capacity in excess of eligible receivables would protect it against the risk of lower than planned renewal rates. At March 31, 2011, $9.9 billion of these commitments were in use. These programs are free of material adverse change clauses, restrictive financial covenants (for example, debt-to-equity limitations and minimum net worth requirements), and credit rating triggers that could limit Ford Credit's ability to obtain funding. However, the unused portion of these commitments may be 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.

*Asset-Backed Commercial Paper.* At March 31, 2011, Ford Credit had $8.7 billion of contractually-committed liquidity facilities provided by banks to support its FCAR program, of which $4.5 billion expire in 2011, $92 million expire in 2012, and $4.1 billion expire in 2013. Utilization of these facilities is subject to conditions specific to the FCAR program and Ford Credit having a sufficient amount of eligible assets for securitization. The FCAR program must be supported by liquidity facilities equal to at least 100% of the outstanding balance. At March 31, 2011, $8.7 billion of FCAR's bank liquidity facilities were available to support FCAR's asset-backed commercial paper, subordinated debt, or FCAR's purchase of Ford Credit's asset-backed securities. At March 31, 2011, the outstanding commercial paper balance for the FCAR program was $6.8 billion.

*Credit Facilities.* At March 31, 2011, Ford Credit and its majority-owned subsidiaries, including FCE, had $1.1 billion of contractually-committed unsecured credit facilities with financial institutions. Ford Credit had $549 million available for use, of which $474 million expire in 2011 and $75 million expire in 2012. Almost all of Ford Credit's contractually-committed unsecured credit facilities are FCE worldwide credit facilities and may be used, at FCE's option, by any of FCE's direct or indirect, majority-owned subsidiaries. FCE will guarantee any such borrowings. All of the worldwide credit facilities are free of material adverse change clauses, restrictive financial covenants, and credit rating triggers that could limit Ford Credit's ability to obtain funding.

## Market risk

As filed, 2,691 characters.

*Commodity Price Risk.* The net fair value of commodity forward and option contracts (including adjustments for credit risk) as of March 31, 2011 was an asset of $39 million, compared to an asset of $63 million as of December 31, 2010. The potential decrease in fair value of commodity forward and option contracts (excluding adjustments for credit risk), assuming a 10% decrease in the underlying commodity prices, would be $124 million at March 31, 2011, compared with a decrease of $60 million at December 31, 2010. If adjustments for credit risk were to be included, the decrease would be smaller.

*Foreign Currency Risk.* The net fair value of foreign exchange forward and option contracts (including adjustments for credit risk) as of March 31, 2011 was an asset of $105 million compared to a liability of $35 million as of December 31, 2010. The potential decrease in fair value of foreign exchange forward and option contracts (excluding adjustments for credit risk), assuming a 10% adverse change in the underlying foreign currency exchange rates versus the U.S. dollar, would be $599 million at March 31, 2011 compared with a decrease of $334 million as of December 31, 2010. If adjustments for credit risk were to be included, the decrease would be smaller.

### Financial Services Sector

*Interest Rate Risk.* To provide a quantitative measure of the sensitivity of Ford Credit’s pre-tax cash flow to changes in interest rates, Ford Credit uses interest rate scenarios that assume a hypothetical, instantaneous increase or decrease in interest rates of 100 basis points (or 1%) across all maturities, as well as a base case that assumes that interest rates remain constant at existing levels. These interest rate scenarios are purely hypothetical and do not represent Ford Credit’s view of future interest rate movements. The differences in pre-tax cash flow between these scenarios and the base case over a twelve-month period represent an estimate of the sensitivity of Ford Credit's pre-tax cash flow. Under this model, Ford Credit estimates that at March 31, 2011, all else constant, such an increase in interest rates would decrease pre-tax cash flow by $3 million over the next twelve months, compared with $22 million at December 31, 2010. The sensitivity analysis presented above assumes a one-percentage point interest rate change to the yield curve that is both instantaneous and parallel. In reality, interest rate changes are rarely instantaneous or parallel and rates could move more or less than the one percentage point assumed in Ford Credit’s analysis. As a result, the actual impact to pre-tax cash flow could be higher or lower than the results detailed above.

## Controls and procedures

As filed, 1,079 characters.

*Evaluation of Disclosure Controls and Procedures.* Alan Mulally, our Chief Executive Officer ("CEO"), and Lewis Booth, our Chief Financial Officer ("CFO"), have performed an evaluation of the Company’s disclosure controls and procedures, as that term is defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended ("Exchange Act"), as of March 31, 2011, and each has concluded that such disclosure controls and procedures are effective to ensure that information required to be disclosed in our periodic reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by SEC rules and forms, and that such information is accumulated and communicated to the CEO and CFO to allow timely decisions regarding required disclosures.

*Changes in Internal Control over Financial Reporting.* We had no changes in internal control over financial reporting during the quarter ended March 31, 2011 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Filed May 10, 2011.
Source: SEC EDGAR, the filing index for accession 0001157523-11-002989. Last ingested by Listed: Oct 24, 2026, 14:52 ET. No prices; not investment advice.