FORD MOTOR COF
FORD MOTOR CO Fair Value Disclosure
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES
The fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis were as follows (in millions):
| December 31, 2019 | |||||||||||||||||||||||||||||
| Fair Value Level | Automotive | Mobility | Ford Credit | Consolidated | |||||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||||||||
| U.S. government | 1 | $ | 520 | $ | — | $ | — | $ | 520 | ||||||||||||||||||||
| U.S. government agencies | 2 | 125 | — | — | 125 | ||||||||||||||||||||||||
| Non-U.S. government and agencies | 2 | 601 | — | 350 | 951 | ||||||||||||||||||||||||
| Corporate debt | 2 | 642 | — | 604 | 1,246 | ||||||||||||||||||||||||
Total marketable securities classified as cash equivalents | 1,888 | — | 954 | 2,842 | |||||||||||||||||||||||||
| Cash, time deposits, and money market funds | 6,432 | 117 | 8,113 | 14,662 | |||||||||||||||||||||||||
| Total cash and cash equivalents | $ | 8,320 | $ | 117 | $ | 9,067 | $ | 17,504 | |||||||||||||||||||||
| Marketable securities | |||||||||||||||||||||||||||||
| U.S. government | 1 | $ | 2,930 | $ | — | $ | 195 | $ | 3,125 | ||||||||||||||||||||
| U.S. government agencies | 2 | 1,548 | — | 210 | 1,758 | ||||||||||||||||||||||||
| Non-U.S. government and agencies | 2 | 4,217 | — | 2,408 | 6,625 | ||||||||||||||||||||||||
| Corporate debt | 2 | 4,802 | — | 193 | 4,995 | ||||||||||||||||||||||||
| Equities (a) | 1 | 81 | — | — | 81 | ||||||||||||||||||||||||
| Other marketable securities | 2 | 273 | — | 290 | 563 | ||||||||||||||||||||||||
| Total marketable securities | $ | 13,851 | $ | — | $ | 3,296 | $ | 17,147 | |||||||||||||||||||||
| Restricted cash | $ | 15 | $ | 21 | $ | 139 | $ | 175 | |||||||||||||||||||||
| Cash, cash equivalents, and restricted cash in held-for-sale assets | $ | — | $ | — | $ | 62 | $ | 62 | |||||||||||||||||||||
| December 31, 2020 | |||||||||||||||||||||||||||||
| Fair Value Level | Automotive | Mobility | Ford Credit | Consolidated | |||||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||||||||
| U.S. government | 1 | $ | 2,940 | $ | — | $ | 3,255 | $ | 6,195 | ||||||||||||||||||||
| U.S. government agencies | 2 | 850 | — | 640 | 1,490 | ||||||||||||||||||||||||
| Non-U.S. government and agencies | 2 | 600 | — | 717 | 1,317 | ||||||||||||||||||||||||
| Corporate debt | 2 | 605 | — | 970 | 1,575 | ||||||||||||||||||||||||
Total marketable securities classified as cash equivalents | 4,995 | — | 5,582 | 10,577 | |||||||||||||||||||||||||
| Cash, time deposits, and money market funds | 5,830 | 69 | 8,767 | 14,666 | |||||||||||||||||||||||||
| Total cash and cash equivalents | $ | 10,825 | $ | 69 | $ | 14,349 | $ | 25,243 | |||||||||||||||||||||
| Marketable securities | |||||||||||||||||||||||||||||
| U.S. government | 1 | $ | 4,709 | $ | — | $ | 1,082 | $ | 5,791 | ||||||||||||||||||||
| U.S. government agencies | 2 | 3,259 | — | 485 | 3,744 | ||||||||||||||||||||||||
| Non-U.S. government and agencies | 2 | 4,448 | — | 2,693 | 7,141 | ||||||||||||||||||||||||
| Corporate debt | 2 | 7,095 | — | 308 | 7,403 | ||||||||||||||||||||||||
| Equities (a) | 1 | 113 | — | — | 113 | ||||||||||||||||||||||||
| Other marketable securities | 2 | 234 | — | 292 | 526 | ||||||||||||||||||||||||
| Total marketable securities | $ | 19,858 | $ | — | $ | 4,860 | $ | 24,718 | |||||||||||||||||||||
| Restricted cash | $ | 38 | $ | 7 | $ | 647 | $ | 692 | |||||||||||||||||||||
Cash, cash equivalents, and restricted cash in held-for-sale assets | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
__________
(a) Net unrealized gains/losses incurred during the reporting periods on equity securities still held at December 31, 2019 and 2020 were a $44 million loss and a $24 million gain, respectively.
NOTE 9. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES (Continued)
The cash equivalents and marketable securities accounted for as available-for-sale (“AFS”) securities were as follows (in millions):
| December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
| Fair Value of Securities with Contractual Maturities | |||||||||||||||||||||||||||||||||||||||||
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Within 1 Year | After 1 Year through 5 Years | After 5 Years | |||||||||||||||||||||||||||||||||||
| Automotive | |||||||||||||||||||||||||||||||||||||||||
| U.S. government | $ | 2,839 | $ | 11 | $ | (1) | $ | 2,849 | $ | 1,028 | $ | 1,772 | $ | 49 | |||||||||||||||||||||||||||
| U.S. government agencies | 1,445 | 2 | (1) | 1,446 | 830 | 589 | 27 | ||||||||||||||||||||||||||||||||||
| Non-U.S. government and agencies | 3,925 | 20 | (1) | 3,944 | 1,546 | 2,398 | — | ||||||||||||||||||||||||||||||||||
| Corporate debt | 5,029 | 53 | — | 5,082 | 1,837 | 3,245 | — | ||||||||||||||||||||||||||||||||||
| Other marketable securities | 230 | 1 | — | 231 | — | 149 | 82 | ||||||||||||||||||||||||||||||||||
Total | $ | 13,468 | $ | 87 | $ | (3) | $ | 13,552 | $ | 5,241 | $ | 8,153 | $ | 158 | |||||||||||||||||||||||||||
| December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
| Fair Value of Securities with Contractual Maturities | |||||||||||||||||||||||||||||||||||||||||
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Within 1 Year | After 1 Year through 5 Years | After 5 Years | |||||||||||||||||||||||||||||||||||
| Automotive | |||||||||||||||||||||||||||||||||||||||||
| U.S. government | $ | 2,894 | $ | 44 | $ | — | $ | 2,938 | $ | 1,649 | $ | 1,286 | $ | 3 | |||||||||||||||||||||||||||
| U.S. government agencies | 2,588 | 15 | — | 2,603 | 772 | 1,629 | 202 | ||||||||||||||||||||||||||||||||||
| Non-U.S. government and agencies | 2,926 | 31 | — | 2,957 | 1,330 | 1,617 | 10 | ||||||||||||||||||||||||||||||||||
| Corporate debt | 7,482 | 102 | (1) | 7,583 | 3,566 | 3,987 | 30 | ||||||||||||||||||||||||||||||||||
Other marketable securities | 212 | 3 | — | 215 | 1 | 147 | 67 | ||||||||||||||||||||||||||||||||||
Total | $ | 16,102 | $ | 195 | $ | (1) | $ | 16,296 | $ | 7,318 | $ | 8,666 | $ | 312 | |||||||||||||||||||||||||||
Sales proceeds and gross realized gains/losses from the sale of AFS securities for the years ended December 31 were as follows (in millions):
| 2018 | 2019 | 2020 | |||||||||||||||
| Automotive | |||||||||||||||||
| Sales proceeds | $ | 5,512 | $ | 5,753 | $ | 8,574 | |||||||||||
| Gross realized gains | 1 | 13 | 56 | ||||||||||||||
| Gross realized losses | 21 | 10 | 11 | ||||||||||||||
NOTE 9. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES (Continued)
The present fair values and gross unrealized losses for cash equivalents and marketable securities accounted for as AFS securities that were in an unrealized loss position, aggregated by investment category and the length of time that individual securities have been in a continuous loss position, were as follows (in millions):
| December 31, 2019 | |||||||||||||||||||||||||||||||||||
| Less than 1 Year | 1 Year or Greater | Total | |||||||||||||||||||||||||||||||||
| Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
| Automotive | |||||||||||||||||||||||||||||||||||
| U.S. government | $ | 183 | $ | (1) | $ | 50 | $ | — | $ | 233 | $ | (1) | |||||||||||||||||||||||
| U.S. government agencies | 370 | (1) | 344 | — | 714 | (1) | |||||||||||||||||||||||||||||
| Non-U.S. government and agencies | 463 | — | 390 | (1) | 853 | (1) | |||||||||||||||||||||||||||||
| Corporate debt | 29 | — | 53 | — | 82 | — | |||||||||||||||||||||||||||||
| Other marketable securities | 59 | — | 17 | — | 76 | — | |||||||||||||||||||||||||||||
Total | $ | 1,104 | $ | (2) | $ | 854 | $ | (1) | $ | 1,958 | $ | (3) | |||||||||||||||||||||||
| December 31, 2020 | |||||||||||||||||||||||||||||||||||
| Less than 1 Year | 1 Year or Greater | Total | |||||||||||||||||||||||||||||||||
| Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
| Automotive | |||||||||||||||||||||||||||||||||||
| U.S. government | $ | 181 | $ | — | $ | — | $ | — | $ | 181 | $ | — | |||||||||||||||||||||||
| U.S. government agencies | 83 | — | — | — | 83 | — | |||||||||||||||||||||||||||||
| Non-U.S. government and agencies | 164 | — | 10 | — | 174 | — | |||||||||||||||||||||||||||||
| Corporate debt | 1,538 | (1) | 9 | — | 1,547 | (1) | |||||||||||||||||||||||||||||
| Other marketable securities | 23 | — | 13 | — | 36 | — | |||||||||||||||||||||||||||||
| Total | $ | 1,989 | $ | (1) | $ | 32 | $ | — | $ | 2,021 | $ | (1) | |||||||||||||||||||||||
We determine credit losses on AFS debt securities using the specific identification method. During the years ended December 31, 2018, 2019, and 2020, we did not recognize any credit loss. The unrealized losses on securities are due to changes in interest rates and market liquidity.
Cash, Cash Equivalents, and Restricted Cash
Cash, cash equivalents, and restricted cash as reported in the consolidated statements of cash flows were as follows (in millions):
| December 31, 2019 | December 31, 2020 | ||||||||||
| Cash and cash equivalents | $ | 17,504 | $ | 25,243 | |||||||
| Restricted cash (a) | 175 | 692 | |||||||||
| Cash, cash equivalents, and restricted cash in held-for-sale assets | 62 | — | |||||||||
| Total cash, cash equivalents, and restricted cash | $ | 17,741 | $ | 25,935 | |||||||
__________
(a)Included in Other assets in the non-current assets section of our consolidated balance sheets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2020 | Feb 5, 2021 | Showing above |
| 2015 | Feb 11, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.