Financials

Debt And Pension

Overview

Ford Motor Company reports consolidated income statement and balance sheet data in its Securities and Exchanges Commission (SEC) form 10-K and 10-Q reports, reflecting data from both the Automotive and Financial Services segments of our operations.

Automotive Segment

Automotive segment operations include designing, manufacturing, marketing and servicing a full line of Ford cars, trucks, SUVs, and electrified vehicles, as well as Lincoln luxury vehicles.

Financial Services Segment

The Financial Services segment primarily consists of Ford Credit, an indirect, wholly owned subsidiary of Ford. Ford Credit offers a wide variety of automotive financing products to and through automotive dealers throughout the world. The predominant share of its business consists of financing Ford and Lincoln vehicles and supporting the dealers of those brands.

Ford Credit is a self-funding operation and its debt, which is used to fund its financing operations, is evaluated separately from Automotive segment debt both internally and by the major credit rating agencies. Ford Credit is a stand-alone registrant that files independent Form 10-K and 10-Q reports with the SEC.

The Automotive and Financial segments are managed independently, with separate balance sheets and leverage metrics. We believe that this separation best reflects the true scope of our operations.

For more information about Ford Credit, please visit credit.ford.com.

Debt/Unfunded Pension

BALANCE SHEET METRICS – AUTOMOTIVE SEGMENT & FORD CREDIT

For the Automotive segment, one of our key priorities is to maintain a strong balance sheet, while at the same time having resources available to grow our core business and invest in emerging opportunities. We believe we have sufficient liquidity and capital resources to continue to invest in new products and services that our customers want and value, transform and grow our business, pay our debts and obligations as and when they come due, pay a sustainable dividend, and provide protection within an uncertain global economic environment.

Ford Credit's primary funding and liquidity objective is to maintain a strong investment grade balance sheet with ample liquidity to support its financing activities and growth under a variety of market conditions, including short-term and long-term market disruptions.

Balance Sheet

DEBT-AUTOMOTIVE SEGMENT

We manage Automotive debt levels with a leverage framework to maintain strong, investment grade credit ratings through a normal business cycle.

Segment Debt

DEBT – FORD CREDIT

Ford Credit's funding is diversified across markets, channels, and investors. Managed receivables are funded primarily with term debt and term asset-backed securities.

Financial Statement

PENSION

Our strategy is to reduce the risk of our funded defined benefit pension plans, including minimizing the volatility of the value of our pension assets relative to pension liabilities and the need for unplanned use of capital resources to fund the plans. The strategy reduces balance sheet, cash flow and income exposures and, in turn, reduces our risk profile.

Pension Update

For additional information, please see Ford Motor Company's 2017 10-K at
http://corporate.ford.com/investors.html and Ford Credit's 2017 10-K at https://www.ford.com/finance/investor-center.