Form 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549




FORM 8-K


CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report: December 21, 2005
(Date of earliest event reported)


FORD MOTOR COMPANY
(Exact name of registrant as specified in its charter)


Delaware
(State or other jurisdiction of incorporation)



1-3950
38-0549190
(Commission File Number)
(IRS Employer Identification No.)
   
One American Road, Dearborn, Michigan
48126
(Address of principal executive offices)
(Zip Code)



Registrant's telephone number, including area code 313-322-3000


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 140.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





Item 2.01. Completion of Acquisition or Disposition of Assets.
 
Pursuant to a Stock Purchase Agreement dated as of September 12, 2005, Ford Motor Company, through its wholly-owned subsidiary, Ford Holdings LLC, sold its 100% ownership interest in The Hertz Corporation to CCMG Holdings, Inc. (or a wholly owned subsidiary) (the “Buyer”) on December 21, 2005. The Buyer is owned by an investor group composed of Clayton Dubilier & Rice, The Carlyle Group and Merrill Lynch Global Private Equity.

Ford received $5.6 billion in cash for the sale of Hertz. As part of the transaction, Ford provided cash-collateralized letters of credit in an aggregate amount of $200 million to support the asset-backed portion of the Buyer's financing for the transaction. These letters of credit will expire no later than December 21, 2011. The value of these letters of credit (estimated at $27 million) will reduce the gain Ford will recognize on the sale of Hertz, which gain is estimated to be in the range of $1.1 billion to $1.3 billion pre-tax. The actual amount of the gain is dependent on Hertz' results to be consolidated by Ford through December 20, 2005.
 
Item 9.01. Financial Statements and Exhibits.
 
The following unaudited pro forma condensed statements of income (consolidated and sector) for the year ended December 31, 2004 and the nine months ended September 30, 2005 have been prepared to present Ford’s results of operations with the deletion of the previously consolidated Hertz' results of operations as if the sale of Hertz had occurred on January 1, 2004 and do not include the nonrecurring gain from the sale of Hertz. The unaudited pro forma condensed balance sheets (consolidated and sector) as of September 30, 2005 have been prepared to present Ford’s financial position as if the sale of Hertz had occurred on September 30, 2005.

The unaudited pro forma statements do not purport to be indicative of the financial position or results of operations of Ford as of such date or for such periods, nor are they indicative of future results. Furthermore, these unaudited pro forma financial statements do not reflect changes which may occur as a result of activities after the sale of Hertz.

 
 
 


Item 9.01. Financial Statements and Exhibits (Continued)
 
FORD MOTOR COMPANY AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share amounts)

   
Nine Months Ended September 30, 2005
  
Year Ended December 31, 2004
  
       
Pro Forma
          
Pro Forma
      
   
Historical
  
Adjustments
  
Pro Forma
  
Historical
  
Adjustments
  
Pro Forma
  
   
Statement
  
-- Hertz --
  
Statement
  
Statement
  
-- Hertz --
  
Statement
  
                           
       
(a)
          
(a)
      
Sales and revenues
                                      
Automotive sales
  
$
112,692
  
$
—
  
$
112,692
  
$
147,128
  
$
—
  
$
147,128
  
Financial Services revenues
    
17,848
    
(5,639
)
  
12,209
    
24,518
    
(6,681
)
  
17,837
  
Total sales and revenues
    
130,540
    
(5,639
)
  
124,901
    
171,646
    
(6,681
)
  
164,965
  
                                       
Costs and expenses
                                      
Cost of sales
    
105,803
    
—
    
105,803
    
135,852
    
—
    
135,852
  
Selling, administrative and other expenses
    
18,200
    
(4,597
)
  
13,603
    
23,901
    
(5,627
)
  
18,274
  
Interest expense
    
5,659
    
(379
)
  
5,280
    
7,071
    
(408
)
  
6,663
  
Provision for credit and insurance losses
    
350
    
(127
)
  
223
    
1,212
    
(153
)
  
1,059
  
Total costs and expenses
    
130,012
    
(5,103
)
  
124,909
    
168,036
    
(6,188
)
  
161,848
  
                                       
Automotive interest income and other non-operating income/(expense), net
    
1,111
    
—
    
1,111
    
988
    
—
    
988
  
Automotive equity in net income/(loss) of affiliated companies
    
259
    
—
    
259
    
255
    
—
    
255
  
Income/(loss) before income taxes
    
1,898
    
(536
)
  
1,362
    
4,853
    
(493
)
  
4,360
  
Provision for/(benefit from) income taxes
    
(127
)
  
(120
)
  
(247
)
  
938
    
(134
)
  
804
  
Income/(loss) before minority interests
    
2,025
    
(416
)
  
1,609
    
3,915
    
(359
)
  
3,556
  
Minority interests in net income/(loss) of subsidiaries
    
196
    
(9
)
  
187
    
282
    
(3
)
  
279
  
Income/(loss) from continuing operations
  
$
1,829
  
$
(407
)
$
1,422
  
$
3,633
  
$
(356
)
$
3,277
  
                                       
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
                                      
Basic income/(loss)
                                      
Income/(loss) from continuing operations
  
$
0.99
  
$
(0.22
)
$
0.77
  
$
1.99
  
$
(0.20
)
$
1.79
  
Number of shares used to compute amounts per share
    
1,839
    
—
    
1,839
    
1,826
    
—
    
1,826
  
Diluted income/(loss)
                                      
Income/(loss) from continuing operations
  
$
0.93
  
$
(0.19
)
$
0.74
  
$
1.80
  
$
(0.16
)
$
1.64
  
Number of shares used to compute amounts per share
    
2,131
    
—
    
2,131
    
2,126
    
—
    
2,126
  
__________
(a) To delete Hertz' results of operations previously consolidated in Ford's historical statements.

 

Item 9.01. Financial Statements and Exhibits (Continued)
 
FORD MOTOR COMPANY AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED SECTOR STATEMENTS OF INCOME
(in millions, except per share amounts)

   
Nine Months Ended September 30, 2005
  
Year Ended December 31, 2004
  
       
Pro Forma
          
Pro Forma
      
   
Historical
  
Adjustments
  
Pro Forma
  
Historical
  
Adjustments
  
Pro Forma
  
   
Statement
  
-- Hertz --
  
Statement
  
Statement
  
-- Hertz --
  
Statement
  
                           
       
(a)
          
(a)
      
AUTOMOTIVE
                                      
Sales
  
$
112,692
  
$
—
  
$
112,692
  
$
147,128
  
$
—
  
$
147,128
  
Costs and expenses
                                      
Cost of sales
    
105,803
    
—
    
105,803
    
135,852
    
—
    
135,852
  
Selling, administrative and other expenses
    
8,996
    
—
    
8,996
    
11,453
    
—
    
11,453
  
Total costs and expenses
    
114,799
    
—
    
114,799
    
147,305
    
—
    
147,305
  
Operating income/(loss)
    
(2,107
)
  
—
    
(2,107
)
  
(177
)
  
—
    
(177
)
                                       
Interest expense
    
960
    
—
    
960
    
1,221
    
—
    
1,221
  
                                       
Interest income and other non-operating income/(expense), net
    
1,111
    
—
    
1,111
    
988
    
—
    
988
  
Equity in net income/(loss) of affiliated companies
    
259
    
—
    
259
    
255
    
—
    
255
  
Income/(loss) before income taxes — Automotive
    
(1,697
)
  
—
    
(1,697
)
  
(155
)
  
—
    
(155
)
                                       
FINANCIAL SERVICES
                                      
Revenues
    
17,848
    
(5,639
)
  
12,209
    
24,518
    
(6,681
)
  
17,837
  
Costs and expenses
                                      
Interest expense
    
4,699
    
(379
)
  
4,320
    
5,850
    
(408
)
  
5,442
  
Depreciation
    
4,591
    
(1,214
)
  
3,377
    
6,618
    
(1,603
)
  
5,015
  
Operating and other expenses
    
4,613
    
(3,383
)
  
1,230
    
5,830
    
(4,024
)
  
1,806
  
Provision for credit and insurance losses
    
350
    
(127
)
  
223
    
1,212
    
(153
)
  
1,059
  
Total costs and expenses
    
14,253
    
(5,103
)
  
9,150
    
19,510
    
(6,188
)
  
13,322
  
Income/(loss) before income taxes — Financial Services 
    
3,595
    
(536
)
  
3,059
    
5,008
    
(493
)
  
4,515
  
                                       
TOTAL COMPANY
                                      
Income/(loss) before income taxes
    
1,898
    
(536
)
  
1,362
    
4,853
    
(493
)
  
4,360
  
Provision for/(benefit from) income taxes
    
(127
)
  
(120
)
  
(247
)
  
938
    
(134
)
  
804
  
Income/(loss) before minority interests
    
2,025
    
(416
)
  
1,609
    
3,915
    
(359
)
  
3,556
  
Minority interests in net income/(loss) of subsidiaries
    
196
    
(9
)
  
187
    
282
    
(3
)
  
279
  
Income/(loss) from continuing operations
  
$
1,829
  
$
(407
)
$
1,422
  
$
3,633
  
$
(356
)
$
3,277
  
                                       
AMOUNTS PER SHARE OF COMMON AND CLASS B STOCK
                                      
Basic income/(loss)
                                      
Income/(loss) from continuing operations
  
$
0.99
  
$
(0.22
)
$
0.77
  
$
1.99
  
$
(0.20
)
$
1.79
  
Number of shares used to compute amounts per share
    
1,839
    
—
    
1,839
    
1,826
    
—
    
1,826
  
Diluted income/(loss) 
                                      
Income/(loss) from continuing operations
  
$
0.93
  
$
(0.19
)
$
0.74
  
$
1.80
  
$
(0.16
)
$
1.64
  
Number of shares used to compute amounts per share
    
2,131
    
—
    
2,131
    
2,126
    
—
    
2,126
  
__________
(a) To delete Hertz' results of operations previously consolidated in Ford's historical statements.
 

 


Item 9.01. Financial Statements and Exhibits (Continued)
 
FORD MOTOR COMPANY AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
September 30, 2005
(in millions)

       
Pro Forma
          
   
Historical
  
Adjustment
      
Pro Forma
  
   
Statement
  
-- Hertz --
      
Statement
  
ASSETS
                          
Cash and cash equivalents
  
$
28,200
  
$
5,396
    
(a
)
$
33,596
  
Marketable securities
    
8,614
    
—
          
8,614
  
Loaned securities
    
579
    
—
          
579
  
Finance receivables, net
    
91,774
    
—
          
91,774
  
Other receivables, net
    
5,268
    
—
          
5,268
  
Net investment in operating leases
    
23,007
    
—
          
23,007
  
Retained interest in sold receivables
    
4,415
    
—
          
4,415
  
Inventories
    
11,687
    
—
          
11,687
  
Equity in net assets of affiliated companies
    
2,594
    
—
          
2,594
  
Net property
    
41,887
    
—
          
41,887
  
Deferred income taxes
    
4,611
    
(1,394
)
  
(b
)
  
3,217
  
Goodwill and other intangible assets
    
6,072
    
—
          
6,072
  
Assets of discontinued/held-for-sale operations
    
15,535
    
(15,513
)
  
(c
)
  
22
  
Other assets
    
24,052
    
204
    
(a
)
  
24,256
  
Total assets
  
$
268,295
  
$
(11,307
)
      
$
256,988
  
                           
LIABILITIES AND STOCKHOLDERS’ EQUITY
                          
Payables
  
$
22,991
  
$
127
    
(d
)
$
23,118
  
Accrued and other liabilities
    
71,382
    
27
    
(e
)
  
71,409
  
Debt
    
141,738
    
—
          
141,738
  
Deferred income taxes
    
4,617
    
—
          
4,617
  
Liabilities of discontinued/held-for-sale operations
    
12,522
    
(11,837
)
  
(c
)
  
10
  
           
(675
)
  
(b
)
      
Total liabilities
    
253,250
    
(12,358
)
        
240,892
  
Minority interests
    
1,058
    
(10
)
  
(c
)
  
1,048
  
Stockholders’ equity
                          
Capital stock
                          
Common Stock, par value $0.01 per share (1,837 million shares issued)
    
18
    
—
          
18
  
Class B Stock, par value $0.01 per share (71 million shares issued)
    
1
    
—
          
1
  
Capital in excess of par value of stock
    
4,956
    
—
          
4,956
  
Accumulated other comprehensive income/(loss)
    
(2,454
)
  
(99
)
  
(c
)
  
(2,553
)
Treasury stock
    
(1,031
)
  
—
          
(1,031
)
Earnings retained for use in business
    
12,497
    
1,160
    
(f
)
  
13,657
  
Total stockholders’ equity
    
13,987
    
1,061
          
15,048
  
Total liabilities and stockholders’ equity
  
$
268,295
  
$
(11,307
)
      
$
256,988
  


 





The accompanying notes are part of the pro forma balance sheets.

Item 9.01. Financial Statements and Exhibits (Continued)
 
FORD MOTOR COMPANY AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED SECTOR BALANCE SHEET
September 30, 2005
(in millions)
       
Pro Forma
          
   
Historical
  
Adjustment
      
Pro Forma
  
   
Statement
  
-- Hertz --
      
Statement
  
ASSETS
                          
Automotive
                          
Cash and cash equivalents
  
$
9,096
  
$
5,336
    
(a
)
$
14,432
  
Marketable securities
    
7,900
    
—
          
7,900
  
Loaned securities
    
579
    
—
          
579
  
Total cash, marketable and loaned securities
    
17,575
    
5,336
          
22,911
  
Deferred income taxes
    
3,397
    
—
          
3,397
  
Other current assets
    
22,583
    
—
          
22,583
  
Total current assets
    
43,555
    
5,336
          
48,891
  
Deferred income taxes
    
10,436
    
(1,394
)
  
(b
)
  
9,042
  
Assets of discontinued/held-for-sale operations
    
22
    
—
          
22
  
Other assets
    
59,091
    
204
    
(a
)
  
59,295
  
Total Automotive assets
    
113,104
    
4,146
          
117,250
  
Financial Services
                          
Cash and cash equivalents
    
19,104
    
60
    
(a
)
  
19,164
  
Investments in securities
    
714
    
—
          
714
  
Finance receivables, net
    
93,745
    
—
          
93,745
  
Net investment in operating leases
    
23,007
    
—
          
23,007
  
Retained interest in sold receivables
    
4,415
    
—
          
4,415
  
Goodwill and other intangible assets
    
18
    
—
          
18
  
Assets of discontinued/held-for-sale operations
    
15,513
    
(15,513
)
  
(c
)
  
—
  
Other assets
    
7,936
    
—
          
7,936
  
Receivable from Automotive
    
1,592
    
—
          
1,592
  
Total Financial Services assets
    
166,044
    
(15,453
)
        
150,591
  
Intersector elimination
    
(1,592
)
  
—
          
(1,592
)
Total assets
  
$
277,556
  
$
(11,307
)
      
$
266,249
  
                           
LIABILITIES AND STOCKHOLDERS’ EQUITY
                          
Automotive
                          
Total current liabilities
  
$
53,390
  
$
—
          $
53,390
  
Long-term debt
    
17,255
    
—
          
17,255
  
Other liabilities
    
37,675
    
—
          
37,675
  
Deferred income taxes
    
1,862
    
—
          
1,862
  
Liabilities of discontinued/held-for-sale operations
    
10
    
—
          
10
  
Payable to Financial Services
    
378
    
—
          
378
  
Total Automotive liabilities
    
110,570
    
—
          
110,570
  
Financial Services
                          
Payables
    
1,623
    
127
    
(d
)
  
1,750
  
Debt
    
123,502
    
—
          
123,502
  
Deferred income taxes
    
9,686
    
—
          
9,686
  
Other liabilities and deferred income
    
6,210
    
27
    
(e
)
  
6,237
  
Liabilities of discontinued/held-for-sale operations
    
12,512
    
(11,837
)
  
(c
)
  
—
  
           
(675
)
  
(b
)
      
Total Financial Services liabilities
    
153,533
    
(12,358
)
        
141,175
  
Minority interests
    
1,058
    
(10
)
  
(c
)
  
1,048
  
Stockholders’ equity
                          
Capital stock
                          
Common Stock, par value $0.01 per share (1,837 million shares issued)
    
18
    
—
          
18
  
Class B Stock, par value $0.01 per share (71 million shares issued)
    
1
    
—
          
1
  
Capital in excess of par value of stock
    
4,956
    
—
          
4,956
  
Accumulated other comprehensive income/(loss)
    
(2,454
)
  
(99
)
  
(c
)
  
(2,553
)
Treasury stock
    
(1,031
)
  
—
          
(1,031
)
Earnings retained for use in business
    
12,497
    
1,160
    
(f
)
  
13,657
  
Total stockholders’ equity
    
13,987
    
1,061
          
15,048
  
Intersector elimination
    
(1,592
)
  
—
          
(1,592
)
Total liabilities and stockholders’ equity
  
$
277,556
  
$
(11,307
)
      
$
266,249
  

 
 

The accompanying notes are part of the pro forma balance sheets.


Item 9.01. Financial Statements and Exhibits (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE UNAUDITED PRO FORMA BALANCE SHEETS
 
 


(a)  
The adjustments to Cash and cash equivalents are detailed below (in millions):


   
Financial Services
Sector
  
Automotive
Sector
      
 
Consolidated
  
Cash proceeds from sale received by Ford Holdings LLC
  
$
5,600
  
$
—
        
$
5,600
  
Distribution from Ford Holdings LLC to Ford Motor Company
    
(5,540
)
  
5,540
          
—
  
Cash collateral provided in support of letters of credit *
    
—
    
(204
)
  
 
    
(204
)
Net cash
  
$
60
  
$
5,336
        
$
5,396
  
__________
      
* Cash collateral for letters of credit described in Item 2.01 herewith is reflected in Other assets on the pro forma balance sheets.
 
(b)  
Recognize Hertz' pre-sale tax liability and the tax consequences related to the sale of Hertz.
(c)  
Remove assets, liabilities (excluding deferred taxes - see (b) above), minority interests and other comprehensive income of Hertz included in Ford's historical statements.
(d)  
Recognize net payable to Hertz previously eliminated as an intercompany payable/receivable in Ford's historical balances and payables for estimated costs related to the sale of Hertz.
(e)  
Recognize liability for the estimated fair value of the letters of credit.
(f)  
Recognize estimated gain on sale of Hertz as if sold on September 30, 2005.




SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

   
FORD MOTOR COMPANY
   
(Registrant)
     
Date: December 22, 2005
By:
/s/Kathryn S. Lamping
   
Kathryn S. Lamping
   
Assistant Secretary