filings.toolsItem 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
SUPPLEMENTAL INFORMATION
The tables below provide supplemental consolidating financial information, other financial information, and U.S. sales by type. Company excluding Ford Credit includes our Ford Blue, Ford Model e, Ford Pro, and Ford Next reportable segments, Corporate Other, Interest on Debt, and Special Items. Eliminations, where presented, primarily represent eliminations of intersegment transactions and deferred tax netting.
Selected Cash Flow Information. The following tables provide supplemental cash flow information (in millions):
| For the period ended June 30, 2023 | |||||||||||||||||||||||
| First Half | |||||||||||||||||||||||
| Cash flows from operating activities | Company excluding Ford Credit | Ford Credit | Eliminations | Consolidated | |||||||||||||||||||
| Net income/(loss) | $ | 3,144 | $ | 535 | $ | — | $ | 3,679 | |||||||||||||||
| Depreciation and tooling amortization | 2,640 | 1,135 | — | 3,775 | |||||||||||||||||||
| Other amortization | (8) | (546) | — | (554) | |||||||||||||||||||
| Provision for/(Benefit from) credit and insurance losses | 55 | 157 | — | 212 | |||||||||||||||||||
| Pension and OPEB expense/(income) | 612 | — | — | 612 | |||||||||||||||||||
| Equity method investment dividends received in excess of (earnings)/losses and impairments | 146 | (4) | — | 142 | |||||||||||||||||||
| Foreign currency adjustments | (92) | (5) | — | (97) | |||||||||||||||||||
| Net realized and unrealized (gains)/losses on cash equivalents, marketable securities, and other investments | 175 | (12) | — | 163 | |||||||||||||||||||
| Net (gain)/loss on changes in investments in affiliates | (17) | — | — | (17) | |||||||||||||||||||
| Stock compensation | 232 | 6 | — | 238 | |||||||||||||||||||
| Provision for/(Benefit from) deferred income taxes | (10) | 13 | — | 3 | |||||||||||||||||||
| Decrease/(Increase) in finance receivables (wholesale and other) | — | (1,473) | — | (1,473) | |||||||||||||||||||
| Decrease/(Increase) in intersegment receivables/payables | 261 | (261) | — | — | |||||||||||||||||||
| Decrease/(Increase) in accounts receivable and other assets | (1,750) | (43) | — | (1,793) | |||||||||||||||||||
| Decrease/(Increase) in inventory | (3,354) | — | — | (3,354) | |||||||||||||||||||
| Increase/(Decrease) in accounts payable and accrued and other liabilities | 6,068 | 66 | — | 6,134 | |||||||||||||||||||
| Other | 245 | (80) | — | 165 | |||||||||||||||||||
| Interest supplements and residual value support to Ford Credit | (1,719) | 1,719 | — | — | |||||||||||||||||||
| Net cash provided by/(used in) operating activities | $ | 6,628 | $ | 1,207 | $ | — | $ | 7,835 |
| Cash flows from investing activities | Company excluding Ford Credit | Ford Credit | Eliminations | Consolidated | |||||||||||||||||||
| Capital spending | $ | (3,691) | $ | (38) | $ | — | $ | (3,729) | |||||||||||||||
| Acquisitions of finance receivables and operating leases | — | (26,231) | — | (26,231) | |||||||||||||||||||
| Collections of finance receivables and operating leases | — | 22,517 | — | 22,517 | |||||||||||||||||||
| Purchases of marketable and other investments | (3,164) | (1,696) | — | (4,860) | |||||||||||||||||||
| Sales and maturities of marketable securities and other investments | 5,974 | 1,610 | — | 7,584 | |||||||||||||||||||
| Settlements of derivatives | 20 | (52) | — | (32) | |||||||||||||||||||
| Capital contributions to equity method investments | (1,047) | — | — | (1,047) | |||||||||||||||||||
| Other | (359) | — | — | (359) | |||||||||||||||||||
| Investing activity (to)/from other segments | — | 1 | (1) | — | |||||||||||||||||||
| Net cash provided by/(used in) investing activities | $ | (2,267) | $ | (3,889) | $ | (1) | $ | (6,157) |
| Cash flows from financing activities | Company excluding Ford Credit | Ford Credit | Eliminations | Consolidated | |||||||||||||||||||
| Cash payments for dividends and dividend equivalents | $ | (3,794) | $ | — | $ | — | $ | (3,794) | |||||||||||||||
| Purchases of common stock | — | — | — | — | |||||||||||||||||||
| Net changes in short-term debt | (104) | (554) | — | (658) | |||||||||||||||||||
| Proceeds from issuance of long-term debt | — | 26,401 | — | 26,401 | |||||||||||||||||||
| Payments of long-term debt | (138) | (22,075) | — | (22,213) | |||||||||||||||||||
| Other | (102) | (95) | — | (197) | |||||||||||||||||||
| Financing activity to/(from) other segments | (1) | — | 1 | — | |||||||||||||||||||
| Net cash provided by/(used in) financing activities | $ | (4,139) | $ | 3,677 | $ | 1 | $ | (461) | |||||||||||||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | $ | (11) | $ | 77 | $ | — | $ | 66 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
Selected Income Statement Information. The following table provides supplemental income statement information (in millions):
| For the period ended June 30, 2023 | |||||||||||||||||
| Second Quarter | |||||||||||||||||
| Company excluding Ford Credit | Ford Credit | Consolidated | |||||||||||||||
| Revenues | $ | 42,427 | $ | 2,527 | $ | 44,954 | |||||||||||
| Total costs and expenses | 40,221 | 2,272 | 42,493 | ||||||||||||||
| Operating income/(loss) | 2,206 | 255 | 2,461 | ||||||||||||||
| Interest expense on Company debt excluding Ford Credit | 304 | — | 304 | ||||||||||||||
| Other income/(loss), net | 127 | 128 | 255 | ||||||||||||||
| Equity in net income/(loss) of affiliated companies | (131) | 7 | (124) | ||||||||||||||
| Income/(Loss) before income taxes | 1,898 | 390 | 2,288 | ||||||||||||||
| Provision for/(Benefit from) income taxes | 177 | 95 | 272 | ||||||||||||||
| Net income/(loss) | 1,721 | 295 | 2,016 | ||||||||||||||
| Less: Income/(Loss) attributable to noncontrolling interests | 99 | — | 99 | ||||||||||||||
| Net income/(loss) attributable to Ford Motor Company | $ | 1,622 | $ | 295 | $ | 1,917 | |||||||||||
| For the period ended June 30, 2023 | |||||||||||||||||
| First Half | |||||||||||||||||
| Company excluding Ford Credit | Ford Credit | Consolidated | |||||||||||||||
| Revenues | $ | 81,512 | $ | 4,916 | $ | 86,428 | |||||||||||
| Total costs and expenses | 77,396 | 4,458 | 81,854 | ||||||||||||||
| Operating income/(loss) | 4,116 | 458 | 4,574 | ||||||||||||||
| Interest expense on Company debt excluding Ford Credit | 612 | — | 612 | ||||||||||||||
| Other income/(loss), net | 258 | 221 | 479 | ||||||||||||||
| Equity in net income/(loss) of affiliated companies | (8) | 14 | 6 | ||||||||||||||
| Income/(Loss) before income taxes | 3,754 | 693 | 4,447 | ||||||||||||||
| Provision for/(Benefit from) income taxes | 610 | 158 | 768 | ||||||||||||||
| Net income/(loss) | 3,144 | 535 | 3,679 | ||||||||||||||
| Less: Income/(Loss) attributable to noncontrolling interests | 5 | — | 5 | ||||||||||||||
| Net income/(loss) attributable to Ford Motor Company | $ | 3,139 | $ | 535 | $ | 3,674 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
Selected Balance Sheet Information. The following tables provide supplemental balance sheet information (in millions):
| June 30, 2023 | ||||||||||||||||||||||||||
| Assets | Company excluding Ford Credit | Ford Credit | Eliminations | Consolidated | ||||||||||||||||||||||
| Cash and cash equivalents | $ | 14,945 | $ | 11,461 | $ | — | $ | 26,406 | ||||||||||||||||||
| Marketable securities | 14,809 | 1,606 | — | 16,415 | ||||||||||||||||||||||
| Ford Credit finance receivables, net | — | 42,557 | — | 42,557 | ||||||||||||||||||||||
| Trade and other receivables, net | 5,070 | 9,412 | — | 14,482 | ||||||||||||||||||||||
| Inventories | 17,703 | — | — | 17,703 | ||||||||||||||||||||||
| Other assets | 2,775 | 1,374 | — | 4,149 | ||||||||||||||||||||||
| Receivable from other segments | 353 | 1,761 | (2,114) | — | ||||||||||||||||||||||
| Total current assets | 55,655 | 68,171 | (2,114) | 121,712 | ||||||||||||||||||||||
| Ford Credit finance receivables, net | — | 52,567 | — | 52,567 | ||||||||||||||||||||||
| Net investment in operating leases | 1,022 | 20,640 | — | 21,662 | ||||||||||||||||||||||
| Net property | 38,250 | 253 | — | 38,503 | ||||||||||||||||||||||
| Equity in net assets of affiliated companies | 3,464 | 114 | — | 3,578 | ||||||||||||||||||||||
| Deferred income taxes | 15,685 | 175 | — | 15,860 | ||||||||||||||||||||||
| Other assets | 10,889 | 1,220 | — | 12,109 | ||||||||||||||||||||||
| Receivable from other segments | — | 15 | (15) | — | ||||||||||||||||||||||
| Total assets | $ | 124,965 | $ | 143,155 | $ | (2,129) | $ | 265,991 |
| Liabilities | Company excluding Ford Credit | Ford Credit | Eliminations | Consolidated | ||||||||||||||||||||||
| Payables | $ | 26,711 | $ | 1,038 | $ | — | $ | 27,749 | ||||||||||||||||||
| Other liabilities and deferred revenue | 21,037 | 2,888 | — | 23,925 | ||||||||||||||||||||||
| Debt payable within one year | 410 | 48,931 | — | 49,341 | ||||||||||||||||||||||
| Payable to other segments | 2,114 | — | (2,114) | — | ||||||||||||||||||||||
| Total current liabilities | 50,272 | 52,857 | (2,114) | 101,015 | ||||||||||||||||||||||
| Other liabilities and deferred revenue | 23,659 | 2,095 | — | 25,754 | ||||||||||||||||||||||
| Long-term debt | 19,169 | 74,726 | — | 93,895 | ||||||||||||||||||||||
| Deferred income taxes | 753 | 968 | — | 1,721 | ||||||||||||||||||||||
| Payable to other segments | 15 | — | (15) | — | ||||||||||||||||||||||
| Total liabilities | $ | 93,868 | $ | 130,646 | $ | (2,129) | $ | 222,385 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
Selected Other Information.
Equity. At June 30, 2023, total equity attributable to Ford was $43.7 billion, an increase of $0.5 billion compared with December 31, 2022. The detail for this change is shown below (in billions):
| Increase/ (Decrease) | |||||
| Net income/(loss) | $ | 3.7 | |||
| Shareholder distributions | (3.8) | ||||
| Other comprehensive income/(loss), net | 0.4 | ||||
| Common stock issued (including share-based compensation impacts) | 0.2 | ||||
| Total | $ | 0.5 |
U.S. Sales by Type. The following table shows second quarter 2023 U.S. sales volume and U.S. wholesales segregated by electric, hybrid, and internal combustion vehicles. U.S. sales volume represents primarily sales by dealers, sales to the government, and leases to Ford management, and is based, in part, on estimated vehicle registrations and includes medium and heavy trucks.
| U.S. Sales | U.S. Wholesales | ||||||||||
| Electric Vehicles | 14,843 | 30,055 | |||||||||
| Hybrid Vehicles | 34,589 | 35,135 | |||||||||
| Internal Combustion Vehicles | 482,230 | 466,571 | |||||||||
| Total Vehicles | 531,662 | 531,761 |
ACCOUNTING STANDARDS ISSUED BUT NOT YET ADOPTED
For a discussion of recent accounting standards, see Note 2 of the Notes to the Financial Statements.
Previous: Item 1. Financial Statements (Continued) · Next: Item 3. Quantitative and Qualitative Disclosures About Market Risk.