Learning Outcomes
- Report non-current liabilities on the balance sheet
| Description | December 31, 2018 | December 31, 2019 |
|---|---|---|
| Subcategory, LIABILITIES | ||
| Payables | $ 21,520 | $ 20,673 |
| Other liabilities and deferred revenue (Note 17) | 20,556 | 22,987 |
| Automotive debt payable within one year (Note 20) | 2,314 | 1,445 | Ford Credit debt payable within one year (Note 20) | 51,179 | 52,371 |
| Other debt payable within one year (Note 20) | — | 130 |
| Liabilities held for sale (Note 24) | — | 526 |
| Total current liabilities | Single line 95,569 |
Single line 98,132 |
| Other liabilities and deferred revenue (Note 17) | 23,588 | 25,324 |
| Automotive long-term debt (Note 20) | 11,233 | 13,233 | Ford Credit long-term debt (Note 20) | 88,887 | 87,658 |
| Other long-term debt (Note 20) | 600 | 470 | Deferred income taxes (Note 7) | 597 | 490 |
| Total liabilities | Single line 220,474 |
Single line 225,307 |
You can probably see some of the inter-relationships between current and non-current liabilities. The most notable is that long-term debt includes a current portion that has to be split out on the face of the financial statements. It is usually entitled “current portion of long-term debt”, but on the Ford Motor Company balance sheet, it is conveniently called “debt payable within one year” and is detailed in Note 20.
In addition, note the amount of $25.324 billion reported as “Other liabilities and deferred revenue: is detailed in Note 17 (along with details of the current other liabilities of $22.987 billion):
| NOTE 17. OTHER LIABILITIES AND DEFERRED REVENUE | ||
|---|---|---|
| Other liabilities and deferred revenue at December 31 were as follows (in millions): | ||
| Description | 2018 | 2019 |
| Subcategory, Current | ||
| Dealer and dealers’ customer allowances and claims | $ 11,369 | $ 13,113 |
| Deferred revenue | 2,095 | 2,091 |
| Employee benefit plans | 1,755 | 1,857 | Accrued interest | 988 | 1,128 |
| OPEB | 339 | 332 |
| Pension | 204 | 184 |
| Operating lease liabilities | — | 367 |
| Other | 3,806 | 3,914 |
| Total current other liabilities and deferred revenue | Single line $ 20,556Double line |
Single line $ 22,987Double line |
| Subcategory, Non-current | ||
| Pension | $ 9,423 | $ 9,878 | OPEB | 5,220 | 5,740 |
| Dealer and dealers’ customer allowances and claims | 2,497 | 1,921 |
| Deferred revenue | 3,985 | 4,191 |
| Operating lease liabilities | — | 1,047 |
| Employee benefit plans | 1,080 | 1,104 |
| Other | 1,383 | 1,443 |
| Total non-current other liabilities and deferred revenue | Single line $ 23,588Double line |
Single line $ 25,324Double line |
The Pension and OPEB (other post-employment benefits, such as health insurance) are long-term liabilities because they represent the present value of the future payments to employees who have or will retire and qualify for company benefits.
On the income statement, for finance leases, interest on the finance right-of-use liability and amortization (depreciation) on the finance right-of-use asset are presented in the same manner as the entity presents all other interest and depreciation expenses on similar assets. For operating leases, lease expense is included in the operating expenses.
Practice Question
