Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Company — Q2 2019 Earnings Presentation
64 slides from Ford Mtr Co Del's earnings presentation, Jul 24, 2019
Slide 1: 2Q Earnings Review
2Q Earnings Review July 24, 2019
Slide 2: Creating Tomorrow, Together
Creating Tomorrow, Together Our Freedom of movement drives human progress. Belief Our To become the world’s most trusted company, Aspiration designing smart vehicles for a smart world. Passion for Product & Deep Customer Insight Our Plan for Value Creation Winning Propulsion Autonomous Mobility Port
Slide 3: Financial Highlights
Financial Highlights Company Adj. $0.2B 2Q Up $2B YoY Free Cash Flow* $2.1B YTD Up 80% YoY Company Cash* – June 30 $23.2B Above $20B Target Liquidity – June 30 $37.3B Above $30B Target 2Q Company Revenue $38.9B ~ Flat YoY 2Q Company Adj. EBIT* $1.7B ~ Flat YoY 2Q Company Adj. EBIT Margin* 4.3% ~ Fla
Slide 4: Strategic Focus
Strategic Focus • Fortifying franchise strengths with new products • Improving mix with higher ATPs and margins Winning Portfolio • Strengthened electric vehicle plan, including future vehicles with Rivian and VW • Improving free cash flow, driven by Automotive • Improving operating leverage and bre
Slide 5: Winning Portfolio – 2019 And 2020
Winning Portfolio – 2019 And 2020 Mustang-Inspired Territory BEV SUV Corsair Super Duty Bronco Explorer Transit 2T F-150 Ranger Aviator Small, Rugged Escape / Kuga Off-Road Utility Puma Truck And Utility Launches Fortify Franchise Strengths And Further Improve Mix North America South America Europe
Slide 6: Winning Portfolio
Winning Portfolio Ranger Picture To Be Added Explorer Aviator F-150 Ranger Adventure-Ready SUVs Truck & Commercial Vehicle Quality No-Compromise Hybrids (CV) Leadership • All-new Explorer – broadest lineup • Ford and Lincoln both rank in • 2Q – our best quarter for U.S. pickup ever, including ST and
Slide 7: Ford In Europe: Roadmap To Sustainable Profitability
Ford In Europe: Roadmap To Sustainable Profitability NEW CUSTOMER-FOCUSED BUSINESS GROUPS Commercial Vehicles Passenger Vehicles Imports • Grow further as Europe’s #1 CV brand • European-built cars and SUVs • Niche portfolio of iconic models • Strengthen pickup segment leadership • Every new passeng
Slide 8: Ford And Volkswagen Collaboration Creates Global Strategy
Ford And Volkswagen Collaboration Creates Global Strategy To Win In AVs, EVs And Commercial Vehicles January announcement to develop commercial vans and 1 medium-sized pickups for global market Leading positions Working toward AV leadership by strengthening Argo AI with 2 Broad geographic equal owne
Slide 9: Tim Stone, Chief Financial Officer – Financial Review
Tim Stone Chief Financial Officer Financial Review
Slide 10: Summary
Summary • 2019 and 2020 are robust launch years – as we bolster our Winning Portfolio, reallocate capital to higher-return growth opportunities and execute changeovers of our most profitable and highest-volume vehicles • Global Redesign and Fitness initiatives progressing well – improving the trajec
Slide 11: Key Metrics Summary
Company Key Metrics Summary • 2Q revenue flat YoY, with strong SECOND QUARTER YEAR TO DATE mix and pricing offset by lower 2018 2019 H / (L) 2018 2019 H / (L) launch-related Explorer volume and exchange Market Share (%) 6.7 % 6.2 % (0.5) ppts 6.6 % 6.1 % (0.5) ppts Wholesale Units (000) 1,493 1,364
Slide 12: Key Financial Metrics
Company Key Financial Metrics Company Adjusted Free Cash Flow ($B) Company Revenue ($B) $3.0 $1.5 $1.9 $42.0 $41.8 $0.1 $0.2 $40.3 $38.9 $38.9 $37.6 $(1.8) 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 YoY Growth 48% N/M 108% (32)% (36)% 111% YoY Gro
Slide 13: 2Q 2019 Revenue YoY Bridge ($B)
Company 2Q 2019 Revenue YoY Bridge ($B) • Company revenue flat YoY; up 3% excluding exchange • Pricing was positive in all regions, led by North America’s franchise strengths in trucks and utilities • Adverse exchange driven primarily by Europe and South America 2Q 2018 Volume / Mix Pricing Other Ex
Slide 14: 2Q 2019 Results ($M)
Company 2Q 2019 Results ($M) • Company adj. EBIT driven by another strong quarter of Auto $1,654 and Credit performance $1,373 $831 • Auto grew 19% YoY; sequential EBIT decline driven by volume $148 impact of all-new Explorer launch $(57) • Credit grew 29% YoY $(264) $(286) $(244) • Continued strate
Slide 15: 2Q 2019 EBIT By Region ($M)
Automotive 2Q 2019 EBIT By Region ($M) $1,696 $1,373 $(322) • Auto EBIT of $1.4B was driven by North America which earned $1.7B • Operations outside North America $53 $30 improved 46% YoY, driven by progress in China and Europe $(45) $(205) $(155) North South Asia Pacific Middle East Automotive Amer
Slide 16: Mobility 2Q 2019 EBIT YoY Bridge ($M)
Mobility 2Q 2019 EBIT YoY Bridge ($M) • Continued strategic investment in future Mobility • Ramp-up of Autonomous Vehicles includes nearly 50% YoY growth of Argo headcount Ford Smart Autonomous 2Q 2018 Mobility Vehicles 2Q 2019 16
Slide 17: Ford Credit Key Metrics
Ford Credit Key Metrics SECOND QUARTER YEAR TO DATE 2018 2019 H / (L) 2018 2019 H / (L) • Strong EBT up 29% YoY Net Receivables ($B) $ 143 $ 143 - % $ 143 $ 143 - % • Receivables about flat from a Managed Receivables* ($B) $ 151 $ 152 - % $ 151 $ 152 - % year ago Loss-to-Receivables** (LTR) 40 bps 3
Slide 18: Cash Flow And Balance Sheet ($B)
Company • 2Q Company adj. free cash flow Cash Flow And Balance Sheet ($B) includes impact of Explorer launch and is up $2B YoY 2018 2019 2018 2019 2Q 2Q YTD YTD • First half cash flow up 80% YoY Company Cash Flow Company Adj. Free Cash Flow* $ (1.8) $ 0.2 $ 1.2 $ 2.1 • Committed to investment grade
Slide 19: Special Items ($M)
Company Special Items ($M) SECOND QUARTER YEAR TO DATE Global Redesign ($B) 2018 2019 2018 2019 Future Actions Recorded This Quarter Global Redesign Recorded In Prior Quarters South America São Bernardo closure $ - $ (169) $ - $ (362) Other South America (16) (66) (24) (74) ~$11 Russia - (211) - (38
Slide 20: 2019 Outlook
Company 2019 Outlook 2018 2019** Improvement Adj. Free Cash Flow* $2.8B From 2018 Adj. EBIT* $7.0B $7.0 - $7.5B Adj. EPS* $1.30 $1.20 - $1.35*** * See Appendix for reconciliation to GAAP and definitions ** Replaces 2019 Outlook from first quarter of 2019 *** Assumes an 18 - 20% adjusted effective ta
Slide 21: Questions & Answers
Questions & Answers
Slide 22: Creating Tomorrow, Together
Creating Tomorrow, Together • Our second quarter results Our demonstrate the global redesign Freedom of movement drives human progress. Belief of Ford is driving positive shifts in our business Our To become the world’s most trusted company, Aspiration designing smart vehicles for a smart world. • W
Slide 23: Supplemental Materials
Supplemental Materials Financial Review
Slide 24: 2019 Announcements
2019 Announcements COMPANY NORTH AMERICA SOUTH AMERICA MOBILITY • Redesign of management Launched all-new Explorer and • Exiting heavy truck production • Selected third city for AV structure Aviator at São Bernardo; discontinuing business operations and Fiesta commercial deployment • Rivian invest
Slide 25: Results ($M)
Company Results ($M) 2018 2019 1Q 2Q 3Q 4Q Full Year 1Q 2Q North America $ 1,935 $ 1,753 $ 1,960 $ 1,959 $ 7,607 $ 2,205 $ 1,696 South America (149) (178) (152) (199) (678) (158) (205) Europe 119 (73) (245) (199) (398) 57 53 China (150) (483) (378) (534) (1,545) (128) (155) Asia Pacific Operations 3
Slide 26: Automotive Key Metrics
Automotive Key Metrics SECOND QUARTER YEAR TO DATE 2018 2019 H / (L) 2018 2019 H / (L) • 2Q EBIT grew 19% YoY driven by our franchise strengths and Global SAAR (M) 97.3 95.7 (2) % 96.3 94.9 (1) % benefits of global redesign Market Share (%) 6.7 % 6.2 % (0.5) ppts 6.6 % 6.1 % (0.5) ppts • Reduction i
Slide 27: Automotive 2Q 2019 EBIT YoY Bridge ($M)
Automotive 2Q 2019 EBIT YoY Bridge ($M) • Automotive EBIT grew 19% YoY • Favorable market factors included positive mix in North America reflecting our franchise strengths and strong pricing in every region Commodities $ (83) • Adverse exchange of $260M Warranty (188) driven by the euro, Argentine O
Slide 28: Automotive Key Financial Trends
Automotive Key Financial Trends Wholesale Units (000) Revenue ($B) 1,662 1,493 1,474 $39.0 $38.7 1,425 $37.2 $35.9 $34.7 $35.8 1,353 1,364 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 YoY Growth (2)% (10)% (10)% (16)% (14)% (9)% YoY Growth 7% (3)% 3
Slide 29: North America Key Metrics
North America Key Metrics SECOND QUARTER YEAR TO DATE 2018 2019 H / (L) 2018 2019 H / (L) • 2Q reduction in wholesale units due to launch-related volume SAAR (M) 21.4 21.2 (1) % 21.5 21.2 (1) % impact of the all-new Explorer U.S. 17.5 17.5 - % 17.6 17.5 (1) % Market Share (%) 14.0 % 13.8 % (0.2) ppt
Slide 30: North America 2Q 2019 EBIT YoY Bridge ($M)
North America 2Q 2019 EBIT YoY Bridge ($M) • North America EBIT down 3% YoY, reflecting primarily lower volume, including the impact of all-new Explorer launch • Favorable mix and net pricing largely offset cost increases, Commodities $ (37) including higher YoY warranty Warranty (175) Other Contrib
Slide 31: North America Key Financial Trends
North America Key Financial Trends Wholesale Units (000) Revenue ($B) 796 742 738 753 644 693 $25.9 $25.4 $24.8 $23.7 $24.0 $22.3 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 YoY Growth 3% (8)% (1)% -.% (5)% (7)% YoY Growth 3% (3)% 7% 7% 2% 1% EBIT
Slide 32: U.S. Pickup Performance
North America U.S. Pickup Performance F-Series Total Sales* (000) F-Series Retail Average Transaction Price** 2017 F-Series Ram 2018 Silverado Segment Avg. Excl. Ford 2019 $46,955 $47,389 229 228 238 230 225 237 234 $46,728 205 214 215 $46,077 $43,857 $44,241 $43,810 $41,698 $42,488 $42,929 $42,796
Slide 33: South America Key Metrics
South America Key Metrics • 2Q SAAR YoY decline driven by 56% industry reduction in SECOND QUARTER YEAR TO DATE Argentina 2018 2019 H / (L) 2018 2019 H / (L) • Reduction in wholesale units driven primarily by lower SAAR (M) 4.5 4.4 (2) % 4.6 4.4 (4) % industry volumes and the Brazil 2.5 2.9 16 % 2.5
Slide 34: South America 2Q 2019 EBIT YoY Bridge ($M)
South America 2Q 2019 EBIT YoY Bridge ($M) • South America EBIT down 15% YoY, driven by lower Argentina industry volume and $59M adverse exchange Commodities $(31) • On track for São Bernardo plant Other Inflationary Cost (87) Cost Performance 29 closure by end of the year Volume / Net Other / 2Q 20
Slide 35: South America Key Financial Trends
South America Key Financial Trends Wholesale Units (000) Revenue ($B) 86 96 94 89 75 $1.3 $1.5 $1.3 68 $1.2 $0.9 $1.0 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 YoY Growth 23% 3% (9)% (17)% (21)% (22)% YoY Growth 22% -.% (19)% (28)% (30)% (33)% EB
Slide 36: Europe Key Metrics
Europe Key Metrics SECOND QUARTER YEAR TO DATE 2018 2019 H / (L) 2018 2019 H / (L) SAAR (M) 21.6 21.0 (3) % 21.6 21.0 (3) % • 2Q YoY revenue decline of 1% driven by adverse exchange Market Share (%) 6.9 % 6.7 % (0.2) ppts 7.3 % 6.9 % (0.4) ppts Wholesale Units* (000) 367 379 3 % 816 770 (6) % • #1 C
Slide 37: Europe 2Q 2019 EBIT YoY Bridge ($M)
Europe 2Q 2019 EBIT YoY Bridge ($M) Contribution Cost $(64) Structural Cost (31) • Europe EBIT improved $126M YoY, driven by favorable market factors • Market factors improvement of $272M reflecting higher volume and favorable pricing on the strength of commercial vehicles • Cost increase due to $13
Slide 38: Europe Key Financial Trends
Europe Key Financial Trends Wholesale Units (000) Revenue ($B) 449 $8.9 367 356 361 391 379 $7.6 $7.4 $7.4 $7.6 $7.6 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 YoY Growth -.% (2)% 4% (13)% (13)% 3% YoY Growth 18% 7% 7% (8)% (14)% (1)% EBIT ($M) EB
Slide 39: China Key Metrics
China Key Metrics SECOND QUARTER YEAR TO DATE • 2Q revenue, EBIT and margin 2018 2019 H / (L) 2018 2019 H / (L) improved YoY SAAR (M) 28.7 29.2 2 % 27.8 28.1 1 % • Market share is lower YoY and Market Share (%) 3.2 % 2.3 % (0.9) ppts 3.2 % 2.2 % (1.0) ppts up 0.2 ppts. sequentially Wholesale Units*
Slide 40: China 2Q 2019 EBIT YoY Bridge ($M)
China 2Q 2019 EBIT YoY Bridge ($M) Consolidated Operations – $324M • China loss narrowed by 68% YoY, due to higher Lincoln volume, favorable tariffs, structural cost reductions and $51M favorable exchange • Dealer inventories in good shape Contribution Cost $13 overall Structural Cost 98 Volume / Ne
Slide 41: China Key Financial Trends
China Key Financial Trends Wholesale Units (000) Consolidated Revenue ($B) 222 184 171 $1.6 153 $1.2 115 126 $1.2 $0.9 $0.9 $0.6 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 YoY Growth (26)% (32)% (48)% (54)% (48)% (32)% YoY Growth (15)% (60)% (30)%
Slide 42: Asia Pacific Operations Key Metrics
Asia Pacific Operations Key Metrics SECOND QUARTER YEAR TO DATE 2018 2019 H / (L) 2018 2019 H / (L) SAAR (M) 17.3 16.8 (3) % 17.0 16.8 (1) % • In 2Q, Asia Pacific Operations Market Share (%) 1.9 % 1.8 % (0.1) ppts 1.9 % 1.8 % (0.1) ppts revenue was nearly flat despite Wholesale Units (000) 77 70 (9)
Slide 43: Asia Pacific Operations 2Q 2019 EBIT YoY Bridge ($M)
Asia Pacific Operations 2Q 2019 EBIT YoY Bridge ($M) • 2Q Asia Pacific Operations EBIT down $59M YoY, driven by $57M adverse exchange, Contribution Cost $ 96 Structural Cost (14) primarily the Australian dollar Volume / Net Other / 2Q 2018 Mix Pricing Cost Exchange 2Q 2019 Market Factors $(29) 43
Slide 44: Asia Pacific Operations Key Financial Trends
Asia Pacific Operations Key Financial Trends Wholesale Units (000) Revenue ($B) 84 82 80 $2.1 77 76 $2.0 $1.9 $1.8 $1.8 $1.8 70 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 YoY Growth 4% (7)% (8)% 3% (10)% (9)% YoY Growth 23% (6)% (2)% 10% (13)% (1)
Slide 45: Middle East & Africa Key Metrics
Middle East & Africa Key Metrics SECOND QUARTER YEAR TO DATE 2018 2019 H / (L) 2018 2019 H / (L) SAAR (M) 3.9 3.0 (23) % 3.8 3.4 (11) % Market Share (%) 2.6 % 3.1 % 0.5 ppts 2.8 % 2.9 % 0.1 ppts • In 2Q, lower Middle East & Africa revenue driven by Wholesale Units (000) 27 21 (22) % 52 43 (17) % vol
Slide 46: Middle East & Africa 2Q 2019 EBIT YoY Bridge ($M)
Middle East & Africa 2Q 2019 EBIT YoY Bridge ($M) Contribution Cost $(36) Structural Cost 45 • Middle East & Africa EBIT down $94M YoY, explained by $108M adverse exchange, primarily the rand Volume / Net Other / 2Q 2018 Mix Pricing Cost Exchange 2Q 2019 Market Factors $24 46
Slide 47: Middle East & Africa Key Financial Trends
Middle East & Africa Key Financial Trends Wholesale Units (000) Revenue ($B) 32 27 $0.8 25 25 $0.6 $0.7 22 21 $0.6 $0.6 $0.6 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 YoY Growth (17)% 13% (17)% (9)% (12)% (22)% YoY Growth (1)% 39% (6)% (12)% (6)%
Slide 48: Ford Credit 2Q 2019 EBT YoY Bridge ($M)
Ford Credit 2Q 2019 EBT YoY Bridge ($M) • Ford Credit EBT up 29% • Lease residual reflects benefit from lower supplemental Supplemental Depreciation $ 151 depreciation on vehicles in Auction Performance (76) Ford Credit lease portfolio Derivatives Market Valuation $ 125 • Favorable derivatives marke
Slide 49: U.S. Automotive Financing Trends
Ford Credit U.S. Automotive Financing Trends Lease Share of Retail Sales (%) Lease Return Vol. (000) and Auction Values** Ford Credit Industry* 36-Month Return Volume $18,435 $18,950 $18,035 $18,465 $17,610 $17,345 31% 30% 31% 30% 29% 29% 68 71 71 71 74 75 23% 23% 21% 21% 23% 20% • Lease share below
Slide 50: Cash Flow ($B)
Company Cash Flow ($B) SECOND QUARTER YEAR TO DATE 2018 2019 2018 2019 Company Adjusted EBIT* $ 1.7 $ 1.7 $ 3.9 $ 4.1 Excluding: Ford Credit EBT (0.7) (0.8) (1.3) (1.6) • 2Q Company adj. free cash flow Subtotal $ 1.0 $ 0.8 $ 2.6 $ 2.5 includes impact of Explorer Capital spending $ (1.9) $ (1.9) $ (3
Slide 51: Cautionary Note On Forward-Looking Statements
Cautionary Note On Forward-Looking Statements Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptio
Slide 52: Appendix
APPENDIX ADDITIONAL MATERIALS Shareholder Distributions A1 RECONCILIATIONS TO GAAP Adjusted EBIT A2 Adjusted Free Cash Flow A3 Adjusted Free Cash Flow – Trailing 5 Quarters A4 Adjusted Earnings Per Share A5 Adjusted Effective Tax Rate A6 Adjusted ROIC A7 Ford Credit Managed Receivables A8 Ford Credi
Slide 53: Shareholder Distributions ($B)
Company Shareholder Distributions ($B) Supplemental Dividend Anti-Dilutive Share Repurchases $21.0 Regular Dividends $1.7 $3.1 • Planned FY 2019 total shareholder distributions of $2.6B • Declared 2019 third quarter regular dividend of 15¢ per $16.2 share $3.5 $2.3 $2.7 $3.1 $2.6 $0.6 $1.0 $2.4 $2.4
Slide 54: Net Income Reconciliation To Adjusted EBIT ($M)
Company Net Income Reconciliation To Adjusted EBIT ($M) 2Q YTD Memo: 2018 2019 2018 2019 FY 2018 Net income / (Loss) attributable to Ford (GAAP) $ 1,066 $ 148 $ 2,802 $ 1,294 $ 3,677 Income / (Loss) attributable to non-controlling interests 3 2 12 39 18 Net income / (Loss) $ 1,069 $ 150 $ 2,814 $ 1,
Slide 55: Net Cash Provided By Operating Activities Reconciliation
Company Net Cash Provided By / (Used In) Operating Activities Reconciliation To Company Adjusted Free Cash Flow ($M) 2Q YTD 2018 2019 2018 2019 Net cash provided by / (used in) operating activities (GAAP) $ 4,972 $ 6,463 $ 8,486 $ 10,007 Less: Items not included in Company Adjusted Free Cash Flows F
Slide 56: Reconciliation To Company Adjusted Free Cash Flow ($M)
Company Reconciliation To Company Adjusted Free Cash Flow ($M) 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 Net cash provided by / (Used in) operating activities (GAAP) $ 3,514 $ 4,972 $ 5,179 $ 1,357 $3,544 $6,463 Less: Items Not Included in Company Adjusted Free Cash Flows Ford Credit operating
Slide 57: Earnings Per Share Reconciliation To Adjusted Earnings Per Share
Company Earnings Per Share Reconciliation To Adjusted Earnings Per Share 2Q YTD 2018 2019 2018 2019 Diluted After-Tax Results ($M) Diluted after-tax results (GAAP) $ 1,066 $ 148 $ 2,802 $ 1,294 Less: Impact of pre-tax and tax special items (33) (989) $ (14) $ (1,574) Less: Non-controlling interests
Slide 58: Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate
Company Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate 2019 Memo: 2Q YTD FY 2018 Pre-Tax Results ($M) Income / (Loss) before income taxes (GAAP) $ 205 $ 1,815 $ 4,345 Less: Impact of special items (1,205) (1,797) (1,429) Adjusted earnings before taxes (Non-GAAP) $ 1,410 $ 3,612 $ 5
Slide 59: Adjusted ROIC ($B)
Company Adjusted ROIC ($B) Four Quarters Ending 2Q 2018 2Q 2019 Adjusted Net Operating Profit After Cash Tax Net income attributable to Ford $ 6.9 $ 2.2 Add: Non-controlling interest - - Less: Income tax - (0.7) Add: Cash tax (0.6) (0.8) Less: Interest on debt (1.2) (1.1) Less: Total pension / OPEB
Slide 60: Total Net Receivables Reconciliation To Managed Receivables ($B)
Ford Credit Total Net Receivables Reconciliation To Managed Receivables ($B) 2017 2018 2018 2019 Dec 31 Jun 30 Dec 31 Jun 30 Ford Credit finance receivables, net (GAAP)* $ 108.4 $ 107.7 $ 109.9 $ 107.6 Net investment in operating leases (GAAP)* 26.7 27.3 27.4 27.7 Consolidating adjustments** 7.6 8.2
Slide 61: Financial Statement Leverage Reconciliation To Managed Leverage ($B)
Ford Credit Financial Statement Leverage Reconciliation To Managed Leverage ($B) 2018 2018 2019 2019 June 30 Dec 31 Mar 31 June 30 Leverage Calculation Total debt* $ 136.7 $ 140.1 $ 142.9 $ 141.5 Adjustments for cash** (10.7) (10.2) (12.8) (14.1) Adjustments for derivative accounting*** 0.5 0.2 (0.1
Slide 62: Non-GAAP Financial Measures That Supplement GAAP Measures
Non-GAAP Financial Measures That Supplement GAAP Measures We use both GAAP and non-GAAP financial measures for operational and financial decision making, and to assess Company and segment business performance. The non-GAAP measures listed below are intended to be considered by users as supplemental
Slide 63: Non-GAAP Financial Measures That Supplement GAAP Measures
Non-GAAP Financial Measures That Supplement GAAP Measures • Company Adjusted Free Cash Flow (Most Comparable GAAP Measure: Net Cash Provided By / (Used In) Operating Activities) – Measure of Company’s operating cash flow excluding Ford Credit’s operating cash flows. The measure contains elements man
Slide 64: Definitions And Calculations
Definitions And Calculations Automotive Records • References to Automotive records for EBIT margin and business units are since at least 2009 Wholesales and Revenue • Wholesale unit volumes include all Ford and Lincoln badged units (whether produced by Ford or by an unconsolidated affiliate) that ar