Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor — Q4 2018 Earnings Presentation
67 slides from Ford Mtr Co Del's earnings presentation, Jan 23, 2019
Slide 1: 4Q 2018 And Full Year Earnings Review And 2019 Outlook
4Q 2018 And Full Year Earnings Review And 2019 Outlook January 23, 2019 (Preliminary Results)
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 FOURTH QUARTER FULL YEAR Company Revenue $41.8B 1% $160.3B 2% Company Adj. EBIT* $ Company Adj. EBIT Margin* $1.5B 3.5% $7.0B 4.4% NA EBIT Margin 7.6% 7.9% Ford Credit EBT $0.7B $2.6B Company Adj. Op. Cash Flow* $1.5B $2.8B Company Cash* Liquidity $23.1B $34.2B $23.1B $34.2B Adj
Slide 4: Strategic Highlights
Strategic Highlights F-Series: Over 1 million sold globally in 2018; largest-ever lead on competition; ATPs about $2k higher than segment Winning Ranger: In the U.S., launched Ranger, the second best selling medium pickup outside of the U.S. All-new Focus in China: Higher ATP than segment; new
Slide 5: Financial Review
Bob Shanks Chief Financial Officer Financial Review SECRET
Slide 6: Company Key Metrics Summary
Company Key Metrics Summary FOURTH QUARTER FULL YEAR • All 4Q key metrics lower YoY 2017 2018 H / (L) 2017 2018 H / (L) except revenue; mainly reflects performance in China and Wholesales (000) 1,749 1,474 (16) % 6,607 5,982 (9) % Europe Market Share (Pct) 6.6 % 5.9 % (0.7) ppts 7.0 % 6.3 % (0.7) pp
Slide 7: Company Key Financial Metrics
Company Key Financial Metrics Company Revenue (Bils) Company Adjusted EBIT Margin (Pct) $41.3 $42.0 $41.8 $38.9 4.9% 5.2% $37.6 4.3% 4.4% 3.5% 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 Company Adjusted EBIT (Bils) Company Adjusted Operating Cash Flow (Bils) $3.0
Slide 8: 4Q 2018 Company Results
• 4Q Company adj. EBIT of $1.5B 4Q 2018 Company Results (Mils) driven by Auto and Ford Credit; YoY decline due mainly to Auto, driven by China and Europe • Loss at Mobility due to planned $1,457 investment increases for $1,131 development of services and $663 autonomous vehicle business • Corporate
Slide 9: 4Q 2018 Automotive EBIT By Region
4Q 2018 Automotive EBIT By Region (Mils) • 4Q Automotive EBIT of $1.1B more than explained by $1,959 North America, which improved YoY • Operations outside $1,131 North America at an EBIT loss $(828) of $828M, down $692M due to China and Europe • Within Asia Pacific, China a loss of $534M, a YoY dec
Slide 10: Ford Credit Key Metrics
Ford Credit Key Metrics FOURTH QUARTER FULL YEAR 2017 2018 H / (L) 2017 2018 H / (L) Net Receivables (Bils) $ 143 $ 146 3 % $ 143 $ 146 3 % Managed Receivables* (Bils) $ 151 $ 155 3 % $ 151 $ 155 3 % Loss-to-Receivables** (LTR) 60 bps 55 bps (5) bps 53 bps 46 bps (7) bps • Strong 4Q and best FY EBT
Slide 11: Company Cash Flow And Balance Sheet
Company Cash Flow And Balance Sheet (Bils) 2017 2018 2017 2018 4Q 4Q FY FY Company Cash Flow Company Adj. Op. Cash Flow* $ 2.2 $ 1.5 $ 4.2 $ 2.8 • 4Q and FY Company adj. Change in Company Cash 0.3 (0.6) (1.0) (3.4) operating cash flow at $1.5B and $2.8B, respectively 2017 2018 • Company cash and liq
Slide 12: FY 2018 Company Results
FY 2018 Company Results (Mils) • FY Company adj. EBIT of $7B driven by Auto and Ford Credit; YoY decline of $2.6B largely $7,002 explained by lower China and $5,422 Europe results in Auto $3,677 • Loss at Mobility due to planned $2,627 investment increases for development of autonomous vehicle busin
Slide 13: FY 2018 Automotive EBIT By Region
FY 2018 Automotive EBIT By Region (Mils) • FY Automotive EBIT of $5.4B $7,607 driven by North America • North America EBIT lower YoY $5,422 due to higher warranty cost • Operations outside $(2,185) North America at an EBIT loss of $2.2B, compared to last year’s breakeven result. Loss driven by Asia
Slide 14: 2019 Company Outlook
2019 Company Outlook Longer-Term 2018 2019 Target Revenue Growth 2% > Global GDP $ Adj. EBIT Margin* 4.4% 8%+ Potential Adj. ROIC* 7.1% Improvement High Teens+ From 2018 Adj. Cash Conversion* 40% 65%+ Adj. Debt To EBITDA* 3.0 <2.5 * See Appendix for reconciliation to GAAP, calculations and definitio
Slide 15: Actions to Improve Performance
Actions to Improve Performance China Europe Higher than segment average transaction Extend brand leadership in LCV share from Growth prices on all-new Focus and Escort 14.1% 10 new product launches in 2019 Ranger and Transit upgrades; Transit PHEV Improved dealer engagement and Focus on
Slide 16: Questions & Answers
Gerd» Questions & Answers SECRET
Slide 17: Creating Tomorrow, Together
Creating Tomorrow, Together Our • 2018 laid the foundation for Freedom of movement drives human progress. Belief global redesign Our To become the world’s most trusted company, • 2019 clear vision to improve Aspiration designing smart vehicles for a smart world. profitability and returns; now in Pas
Slide 18: Supplemental Materials Financial Review
Supplemental Materials Financial Review SECRET
Slide 19: 4Q 2018 Company Revenue YoY Bridge
4Q 2018 Company Revenue YoY Bridge (Bils) • 4Q Company revenue of $42B up 1%; driven by favorable mix and higher net pricing in North America Net 4Q 2017 Volume Mix Pricing Exchange Other 4Q 2018 19
Slide 20: FY 2018 Company Revenue YoY Bridge
FY 2018 Company Revenue YoY Bridge (Bils) • FY Company revenue of $160B up 2%; driven by favorable mix, mainly North America, and higher net pricing in all regions except China Net 2017 Volume Mix Pricing Exchange Other 2018 20
Slide 21: Automotive Key Metrics
Automotive Key Metrics • 4Q Automotive key metrics FOURTH QUARTER FULL YEAR lower YoY except revenue 2017 2018 H / (L) 2017 2018 H / (L) • Global SAAR down 9% driven Global SAAR (Mils) 99.6 90.8 (9) % 95.0 94.2 (1) % by China with smaller declines in Europe and North America Market Share (Pct) 6.6 %
Slide 22: Automotive 4Q 2018 EBIT YoY Bridge
Automotive 4Q 2018 EBIT YoY Bridge (Mils) • 4Q Automotive EBIT of $1.1B down $504M YoY; driven by Industry $ (67) higher warranty cost, lower Share (608) Stocks 371 volume at the China JVs, Mix 583 tariff-related cost and other Other (41) China JVs $(419) China JV Royalties (104) commodity headwinds
Slide 23: Automotive FY 2018 EBIT YoY Bridge
Automotive FY 2018 EBIT YoY Bridge (Mils) • FY Automotive EBIT of $5.4B down $2.7B YoY • Decline more than explained by $1.8B from tariff-related cost Exchange $(1,010) and other commodity China JVs & Royalties (1,291) Parts & Accessories 174 headwinds, lower volume at Other 427 China JVs and higher
Slide 24: North America Key Metrics
North America Key Metrics FOURTH QUARTER FULL YEAR • 4Q North America revenue and 2017 2018 H / (L) 2017 2018 H / (L) bottom-line metrics improved YoY; volume-related metrics SAAR (Mils) 22.1 21.6 (2) % 21.5 21.5 - % lower U.S. 18.2 18.0 (1) % 17.6 17.7 1 % Market Share (Pct) 13.6 % 12.8 % (0.8) ppt
Slide 25: North America 4Q 2018 EBIT YoY Bridge
North America 4Q 2018 EBIT YoY Bridge (Mils) • 4Q North America EBIT at $2B, up $188M YoY • Healthy improvement in market factors due to strong mix and higher net pricing Industry $ 49 Share (569) • Headwinds represented by Stocks 495 Mix 444 Commodities $(301) higher warranty and commodity Other (4
Slide 26: North America FY 2018 EBIT YoY Bridge
North America FY 2018 EBIT YoY Bridge (Mils) • FY North America EBIT of $7.6B, down $450M YoY • EBIT decline mainly reflects Industry $ 219 higher commodity cost, Share (1,272) including tariff-related effects, Stocks 651 Mix 1,919 Commodities $(1,108) and warranty cost; higher Other 70 Warranty (1,
Slide 27: South America Key Metrics
• All 4Q South America metrics South America Key Metrics down YoY except SAAR FOURTH QUARTER FULL YEAR • South America SAAR up 2% 2017 2018 H / (L) 2017 2018 H / (L) with growth of 17% in Brazil and a reduction of 44% in SAAR (Mils) 4.3 4.4 2 % 4.2 4.5 7 % Argentina; Brazil higher for the Brazil 2.3
Slide 28: South America 4Q 2018 EBIT YoY Bridge
South America 4Q 2018 EBIT YoY Bridge (Mils) Commodities $ (74) Other Inflationary Cost (130) Cost Performance 125 • 4Q South America EBIT loss of $199M, about flat from year ago • Higher net pricing and favorable cost performance about offset by weaker currencies and inflationary effects, including
Slide 29: South America FY 2018 EBIT YoY Bridge
South America FY 2018 EBIT YoY Bridge (Mils) Commodities $(224) Other Inflationary Cost (407) Cost Performance 208 • FY South America EBIT loss of $678M improved $75M YoY • Higher net pricing and favorable Industry $ 76 cost performance about offset Other (15) by weaker currencies and inflationary e
Slide 30: Europe Key Metrics
Europe Key Metrics FOURTH QUARTER FULL YEAR • All 4Q Europe metrics lower 2017 2018 H / (L) 2017 2018 H / (L) YoY except market share which was unchanged SAAR (Mils) 21.2 19.6 (8) % 20.9 20.9 - % Market Share (Pct) 7.3 % 7.3 % - ppts 7.5 % 7.2 % (0.3) ppts • Europe SAAR down 8%, including Turkey dow
Slide 31: Europe 4Q 2018 EBIT YoY Bridge
Europe 4Q 2018 EBIT YoY Bridge (Mils) • 4Q Europe EBIT loss at $199M – an EBIT decline of $288M YoY Industry $(73) Share 62 • Decline due mainly to higher Stocks (69) Net Product $(75) Mix 84 Other Contribution Cost (157) cost, adverse exchange and Structural Cost (40) Other (71) lower industry volu
Slide 32: Europe FY 2018 EBIT YoY Bridge
Europe FY 2018 EBIT YoY Bridge (Mils) Net Product $(441) Commodities (206) Other Cost (123) • FY Europe EBIT loss at $398M, a decline YoY of $765M • Market factors up YoY, the most since 2015, driven by new product, but insufficient to counter higher net product cost, Industry $ (28) including regul
Slide 33: Middle East & Africa Key Metrics
Middle East & Africa Key Metrics • 4Q MEA top-line metrics lower FOURTH QUARTER FULL YEAR YoY; EBIT and EBIT margin 2017 2018 H / (L) 2017 2018 H / (L) higher SAAR (Mils) 3.7 3.9 5 % 3.6 3.8 6 % • MEA SAAR up 5%, though down 9% in markets where we Market Share (Pct) 4.3 % 3.0 % (1.3) ppts 3.8 % 3.0
Slide 34: Middle East & Africa 4Q 2018 EBIT YoY Bridge
Middle East & Africa 4Q 2018 EBIT YoY Bridge (Mils) • 4Q MEA EBIT loss of $49M, improved $17M YoY due to lower cost Volume / Net 4Q 2017 Mix Pricing Cost Other 4Q 2018 Market Factors $4 34
Slide 35: Middle East & Africa FY 2018 EBIT YoY Bridge
Middle East & Africa FY 2018 EBIT YoY Bridge (Mils) • FY MEA EBIT about breakeven, up $239M YoY with improvements in all factors Volume / Net 2017 Mix Pricing Cost Other 2018 Market Factors $101 35
Slide 36: Asia Pacific Key Metrics
Asia Pacific Key Metrics FOURTH QUARTER FULL YEAR • All 4Q Asia Pacific metrics 2017 2018 H / (L) 2017 2018 H / (L) down YoY driven by China SAAR (Mils) 48.2 41.4 (14) % 44.8 43.5 (3) % • Revenue decline of 5% driven China 31.4 24.4 (22) % 28.2 26.2 (7) % by exchange and lower volume Market Share (P
Slide 37: Asia Pacific 4Q 2018 EBIT YoY Bridge
Asia Pacific 4Q 2018 EBIT YoY Bridge (Mils) China JVs $(419) JV Royalties (89) Exchange / Other 6 • 4Q Asia Pacific EBIT at $381M loss, down $411M YoY – China down $515M with Other Asia Pacific up $104M • Lower China result due entirely to Contribution Cost $53 lower JV equity income and lower Struc
Slide 38: China 4Q 2018 EBIT YoY Bridge
China 4Q 2018 EBIT YoY Bridge (Mils) • 4Q China EBIT loss at $534M – $213M at JVs and $321M at consolidated operations • China EBIT YoY decline of $515M driven by China JVs – mainly lower volume and net pricing – and lower royalty income because of the lower JV volume Net Equity Income $(419) Royalt
Slide 39: Asia Pacific FY 2018 EBIT YoY Bridge
Asia Pacific FY 2018 EBIT YoY Bridge (Mils) • FY Asia Pacific EBIT loss at Industry $ (22) Share (142) $1.1B, down $1.8B YoY – Stocks (261) $1.7B in China and $0.1B in Mix 70 Other (4) Other Asia Pacific Exchange $ (199) China JVs (1,025) JV Royalties (204) • China EBIT decline due to lower Other 98
Slide 40: China FY 2018 EBIT YoY Bridge
China FY 2018 EBIT YoY Bridge (Mils) • FY China EBIT loss at $1.5B – $110M at JVs and $1.4B at consolidated operations • China EBIT YoY decline of $1.7B largely due to China JVs – mainly lower volume and net pricing • Consolidated China EBIT decline due to lower volume and net pricing for Explorer a
Slide 41: Mobility Key Metrics And 4Q 2018 EBIT YoY Bridge
Mobility Key Metrics And 4Q 2018 EBIT YoY Bridge (Mils) Key Metrics FOURTH QUARTER FULL YEAR 2017 2018 H / (L) 2017 2018 H / (L) EBIT (Mils) $ (100) $ (195) $ (95) $ (299) $ (674) $ (375) • 4Q Mobility EBIT loss of $195M, down $95M due to increased investment for mobility services 4Q 2018 EBIT YoY B
Slide 42: Mobility FY 2018 EBIT YoY Bridge
Mobility FY 2018 EBIT YoY Bridge (Mils) • FY Mobility EBIT loss at $674M, down $375M due to increased investment for AV business development and mobility services Ford Smart Autonomous 2017 Mobility Vehicles 2018 42
Slide 43: Ford Credit 4Q 2018 EBT YoY Bridge
Ford Credit 4Q 2018 EBT YoY Bridge (Mils) Supplemental Depreciation $129 Residual Losses (38) • 4Q Ford Credit EBT at $663M, up $53M YoY driven by favorable lease residual performance and volume and mix Volume / Financing Credit Lease 4Q 2017 Mix Margin Loss Residual Exchange Other 4Q 2018 43
Slide 44: Ford Credit FY 2018 EBT YoY Bridge
Ford Credit FY 2018 EBT YoY Bridge (Mils) • FY Ford Credit EBT at $2.6B, up $317M YoY; reflects favorable lease residual Supplemental Depreciation $193 Residual Losses 127 performance, driven by higher auction values, and volume and mix DMV $(175) Operating Costs & Other (69) • Other primarily refle
Slide 45: Ford Credit U.S. Automotive Financing Trends
Ford Credit U.S. Automotive Financing Trends Lease Share of Retail Sales (Pct) Lease Return Vol. (000) and Auction Values** Ford Credit Industry* 36-Month Return Volume $18,295 $18,785 $17,830 $17,865 $17,505 $17,440 31% 30% 28% 28% 29% 29% • 4Q lease share flat sequentially 71 71 71 70 61 68 and be
Slide 46: Company Cash Flow
Company Cash Flow (Bils) FOURTH QUARTER FULL YEAR 2017 2018 2017 2018 Company Adjusted EBIT* $ 2.0 $ 1.5 $ 9.6 $ 7.0 Excluding: Ford Credit EBT (0.6) (0.7) (2.3) (2.6) Subtotal $ 1.4 $ 0.8 $ 7.3 $ 4.4 Capital spending $ (2.1) $ (2.1) $ (7.0) $ (7.7) • 4Q and FY Company adj. Depreciation and tooling
Slide 47: 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 48: Appendix Additional Materials
APPENDIX ADDITIONAL MATERIALS Special Items A1 2018 Results A2 2017 Results A3 Revised Reporting – Adjusted ROIC A4 Shareholder Distributions A5 RECONCILIATIONS TO GAAP Adjusted EBIT A6 Adjusted Operating Cash Flow A7 Adjusted Operating Cash Flow – Trailing 5 Quarters A8 Adjusted Earnings Per Share
Slide 49: Company Special Items
Company Special Items (Mils) 4Q FY 2017 2018 2017 2018 Pension and OPEB gain / (loss) Year end net pension and OPEB remeasurement $ (162) $ (877) $ (162) $ (877) Other pension remeasurement - - - 26 Pension curtailment 354 - 354 15 Total Pension and OPEB gain / (loss) $ 192 $ (877) $ 192 $ (836) Sep
Slide 50: 2018 Results
2018 Results (Mils) 2018 1Q 2Q 3Q 4Q Full Year North America $ 1,935 $ 1,753 $ 1,960 $ 1,959 $ 7,607 South America (149) (178) (152) (199) (678) Europe 119 (73) (245) (199) (398) Middle East & Africa (54) 49 47 (49) (7) Asia Pacific (119) (394) (208) (381) (1,102) Automotive $ 1,732 $ 1,157 $ 1,402
Slide 51: 2017 Results
2017 Results (Mils) 2017 1Q 2Q 3Q 4Q Full Year North America $ 2,130 $ 2,332 $ 1,824 $ 1,771 $ 8,057 South America (237) (177) (150) (189) (753) Europe 209 122 (53) 89 367 Middle East & Africa (75) (49) (56) (66) (246) Asia Pacific 148 167 314 30 659 Automotive $ 2,175 $ 2,395 $ 1,879 $ 1,635 $ 8,08
Slide 52: Adjusted ROIC
Adjusted ROIC (Bils) 2014 2015 2016 2017 2018 Adjusted Net Operating Profit After Cash Tax Net income attributable to Ford $ 1.3 $ 7.3 $ 4.6 $ 7.7 $ 3.7 Add: Non-controlling interest (0.0) (0.0) 0.0 0.0 0.0 Less: Income tax (0.0) (2.9) (2.2) (0.4) (0.7) Add: Cash tax (0.5) (0.6) (0.7) (0.6) (0.8) Le
Slide 53: Shareholder Distributions
Shareholder Distributions (Bils) Supplemental Dividend $18.4 Anti-Dilutive Share Repurchases Regular Dividends $1.7 $2.9 • 2018 total shareholder distributions of $3.1B • Declared 2019 first quarter regular dividend of 15¢ per share $13.8 $3.5 $2.7 $3.1 $2.3 $1.0 $0.6 $2.4 $1.7 $2.4 $2.4 Average 201
Slide 54: Company Net Income Reconciliation To Adjusted EBIT
Company Net Income Reconciliation To Adjusted EBIT (Mils) 4Q FY 2017 2018 2017 2018 Net income / (Loss) attributable to Ford (GAAP) $ 2,520 $ (116) $ 7,731 $ 3,677 Income / (Loss) attributable to non-controlling interests 4 4 26 18 Net income / (Loss) $ 2,524 $ (112) $ 7,757 $ 3,695 Less: (Provision
Slide 55: Operating Activities Reconciliation To Company Adjusted Operating Cash Flow
Net Cash Provided By / (Used In) Operating Activities Reconciliation To Company Adjusted Operating Cash Flow (Mils) 4Q FY 2017 2018 2017 2018 Net cash provided by / (used in) operating activities (GAAP) $ 3,147 $ 1,357 $ 18,096 $ 15,022 Less: Items not included in Company Adjusted Operating Cash Flo
Slide 56: Reconciliation To Company Adjusted Operating Cash Flow Trailing Five Quarters
Reconciliation To Company Adjusted Operating Cash Flow Trailing Five Quarters (Mils) 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 Net cash provided by / (Used in) operating activities (GAAP) $ 3,147 $ 3,514 $ 4,972 $ 5,179 $1,357 Less: Items Not Included in Company Adjusted Operating Cash Flows Ford Cred
Slide 57: Company Earnings Per Share Reconciliation To Adjusted Earnings Per Share
Company Earnings Per Share Reconciliation To Adjusted Earnings Per Share 4Q FY 2017 2018 2017 2018 Diluted After-Tax Results (Mils) Diluted after-tax results (GAAP) $ 2,520 $ (116) $ 7,731 $ 3,677 Less: Impact of pre-tax and tax special items 971 (1,320) 608 (1,517) Adjusted net income – diluted (No
Slide 58: Company Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate
Company Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate 2018 Memo: 4Q FY FY 2017 Pre-Tax Results (Mils) Income / (Loss) before income taxes (GAAP) $ (17) $ 4,345 $ 8,159 Less: Impact of special items (1,179) (1,429) (289) Adjusted earnings before taxes (Non-GAAP) $ 1,162 $ 5,774 $ 8
Slide 59: Adjusted Debt / EBITDA Reconciliation
Adjusted Debt / EBITDA Reconciliation 2017 2018 Adjusted Debt Debt (excl. Ford Credit) $ 16,530 $ 14,147 Add: Unamortized discount & issuance costs 394 316 Add: Operating Lease Adjustment 1,406 1,447 Add: Net pension liability excl. prepaid assets 10,161 9,627 Adjusted Debt $ 28,491 $ 25,537 EBITDA
Slide 60: Ford Credit Total Net Receivables Reconciliation To Managed Receivables
Ford Credit Total Net Receivables Reconciliation To Managed Receivables (Bils) 2016 2017 2018 Dec 31 Dec 31 Dec 31 Ford Credit finance receivables, net (GAAP)* $ 96.2 $ 108.4 $ 109.9 Net investment in operating leases (GAAP)* 27.2 26.7 27.4 Consolidating adjustments** 6.8 7.6 8.9 Total net receivabl
Slide 61: Ford Credit Financial Statement Leverage Reconciliation To Managed Leverage
Ford Credit Financial Statement Leverage Reconciliation To Managed Leverage (Bils) 2016 2017 2018 Dec 31 Dec 31 Dec 31 Leverage Calculation Total debt* $ 126.5 $ 137.8 $ 140.1 Adjustments for cash** (10.8) (11.8) (10.2) Adjustments for derivative accounting*** (0.3) - 0.2 Total adjusted debt $ 115.4
Slide 62: Employment Data
Employment Data* (000s) 2017 2018 Dec 31 Dec 31 North America 100 100 South America 14 12 Europe 54 53 Middle East & Africa 3 4 Asia Pacific 23 22 Total Automotive 194 191 Ford Credit 7 7 Mobility 1 1 Total Company 202 199 * Employment data includes the approximate number of individuals employed by
Slide 63: Pension Update
Pension Update 2018 B / (W) 2017 2018 2017 Pension Funded Status (Bils) U.S. Plans $ (2.2) $ (2.5) $ (0.3) Non-U.S. Plans (4.4) (3.8) 0.6 Total Global Pension $ (6.6) $ (6.3) $ 0.3 • Underfunded status of pension plans at $6.3B; improved $0.3B Year-End Discount Rate (Weighted Average) versus a year
Slide 64: 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 65: Non-GAAP Financial Measures That Supplement GAAP Measures
Non-GAAP Financial Measures That Supplement GAAP Measures • Company Adjusted Operating 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 element
Slide 66: Non-GAAP Financial Measures That Supplement GAAP Measures
Non-GAAP Financial Measures That Supplement GAAP Measures • Ford Credit Managed Receivables – (Most Comparable GAAP Measure: Net Finance Receivables plus Net Investment in Operating Leases) – Measure of Ford Credit’s Total net receivables, excluding unearned interest supplements and residual support
Slide 67: 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