SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 11-K
(Mark One)
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
X SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
--------
For the fiscal year ended December 31, 1995
OR
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
______ SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ________________ to _______________
Commission file number 1-3950
FORD MICROELECTRONICS, INC.
SALARIED RETIREMENT AND SAVINGS PLAN
(Full title of the plan)
FORD MOTOR COMPANY
The American Road
Dearborn, Michigan 48121
(Name of issuer of the securities held
pursuant to the plan and the address of
its principal executive office)
<PAGE>
Required Information
- --------------------
Financial Statements
--------------------
Statement of Net Assets Available for Benefits, as of
December 31, 1995 and 1994.
Statement of Changes in Net Assets Available for Benefits
for the Year Ended December 31, 1995.
Schedule I - Schedule of Assets Held for Investment Purposes
as of December 31, 1995.
Schedule II - Reportable Transactions for the Year Ended
December 31, 1995.
Exhibit
Designation Description Method of Filing
- ----------- ----------- ----------------
Exhibit 23 Consent of Coopers Filed with this Report.
& Lybrand L.L.P.
Signature
---------
Pursuant to the requirements of the Securities Exchange Act of
1934, the Ford Microelectronics, Inc. Salaried Retirement and
Savings Plan Committee has duly caused this Annual Report to be
signed by the undersigned thereunto duly authorized.
FORD MICROELECTRONICS, INC.
By:/s/John A. Sullivan
-------------------------
John A. Sullivan, Chairman
Ford Microelectronics, Inc.
Salaried Retirement and Savings Plan Committee
June 27, 1996
<PAGE>
EXHIBIT INDEX
Sequential
Page Number
Designation Description at Which Found
- ----------- ----------- --------------
Exhibit 23 Consent of Coopers & Lybrand L.L.P.
<PAGE>
Ford Microelectronics, Inc. Salaried Retirement Savings Plan
Index of Financial Statements and Supplemental Schedules
Pages
Report of Independent Accountants 2
Financial Statements:
Statement of Net Assets Available for Plan
Benefits with fund information's of December 31, 1995 3
Statement of Changes in Net Assets Available for
Plan with fund information Benefits for the
Year Ended December 31, 1995 4
Notes to Financial Statements 5-9
Supplemental Schedules:
Schedule I - Item 27a - Schedule of Assets Held
for Investment Purposes as of December 31, 1995 10
Schedule II - Item 27d - Reportable Transactions
for the Year Ended December 31, 1995 11-12
<PAGE>
Report of Independent Accountants
To the Boards of Directors of
Ford Motor Company and
Ford Microelectronics, Inc.:
We have audited the accompanying statement of net assets
available for plan benefits with fund information of the Ford
Microelectronics, Inc. Salaried Retirement Savings Plan as of
December 31, 1995 and the related statement of changes in net
assets available for plan benefits with fund information for the
year ended December 31, 1995. These financial statements are the
responsibility of the plan's management. Our responsibility is
to express an opinion on these financial statements based on our
audit.
We conducted our audit in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the net assets
available for benefits of the Plan as of December 31, 1995 and
the changes in net assets available for benefits for the year
ended December 31, 1995, in conformity with generally accepted
accounting principles.
Our audit was performed for the purpose of forming an opinion on
the basic financial statements taken as a whole. The
supplemental schedules of the Ford Microelectronics, Inc.
Salaried Retirement Savings Plan as of December 31, 1995 are
presented for the purpose of additional analysis and are not a
required part of the basic financial statements, but are
supplementary information required by the Department of Labor's
Rules and Regulations for Reporting and Disclosure under the
Employee Retirement Income Security Act of 1974. The fund
information in the statement of net assets available and the
statement of changes in net assets available for benefits is
presented for purposes of additional analysis rather than to
present the net assets available for plan benefits and changes in
net assets available for plan benefits of each fund. The
supplemental schedules and fund information have been subjected
to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, are fairly stated, in
all material respects, in relation to the basic financial
statements taken as a whole.
/s/Coopers & Lybrand
Detroit, Michigan
June 14, 1996
3
<PAGE>
Ford Microelectronics, Inc. Salaried Retirement Savings Plan
Statement of Net Assets Available for Plan Benefits with Fund Information
as of December 31, 1995
<TABLE>
<CAPTION>
Ford Motor Spectrum
Company Short-Term Medium of Choice Participant
Common Investment Cap 500 Bond Aggressive Loans
Stock Fund Index Fund Index Fund Index Fund Fund Receivables Total
----------- ---------- ----------- ---------- -- -------- ----------- ----------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Cash $ 1,887 $ 1,987
Investment, at
fair value 6,513,102 $1,881,820 $300,832 $ 2,519,339 $ 337,009 $339,048 $417,356 12,308,506
--------- ---------- -------- ---------- ----------- --------- ----------- ----------
Net assets
available
for benefits $6,515,089 $ 1,881,820 $300,832 $2,519,339 $ 337,009 $339,048 $417,356 $12,310,493
========== =========== ======== ========== ========= ======== ======== ===========
The accompanying notes are an integral part of the financial statements.
</TABLE>
3
<PAGE>
Ford Microelectronics, Inc. Salaried Retirement Savings Plan
Statement of Changes in Net Assets Available for Plan Benefits
with Fund Information
as of December 31, 1995
<TABLE>
<CAPTION>
Ford Motor Spectrum
Company Short-Term Medium of Choice
Common Investment Cap 500 Bond Aggressive Income Loan
Stock Fund Index Fund Index Fund Index Fund Fund Fund Fund Total
----------- ---------- ----------- ----------- ------------- ---------- ------- ------ ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Interest and
dividend income $ 238,776 $ 84,060 $19,832 $ 79,555 $20,209 $ 442,432
Net appreciation
in fair value
of investments 859,196 251,059 $ 40,135 $ 336,112 44,961 $ 45,233 1,586,696
Loan repayments
(principal) 15,198 150,993 433 1,034 173 520 (168,351) -
Loan repayments
(interest) 857 18,865 90 268 61 88 (20,209)
Employee
contributions 635,411 183,532 29,340 245,709 32,668 30,067 1,159,927
Employer
contributions 1,799,721 1,790,721
Transfer from
predecessor plan 4,497,111 783,798 1,718,431 215,724 770,831 7,985,895
Withdrawal of
participant accounts (295,760) (148,345) (958) (169,707) (5,548) (3,565) (28,670) (2,625) (655,178)
Net transfers between
funds (1,167,221) 1,030,637 239,842 414,269 32,837 271,352 (821,716) -
Loan funds transferred
(out)in (69,200) (472,779) (8,050) (26,777) (3,899) (7,627) 588,332 -
--------- -------- ------- ------- ------ ------- -------- ------- ---------
Net increase in plan
equity for the year 6,515,089 1,881,820 300,832 2,519,339 337,009 339,048 - 417,356 12,310,493
---------- --------- -------- --------- -------- -------- -------- ------- ----------
Net assets available
for plan benefits,
end of year $6,515,089 $1,881,820 $300,832 $2,519,339 $337,009 $339,048 - $417,356 $12,310,493
========== ========== ======== ========== ========= ======== ======== ======== ===========
The accompanying notes are an integral part of the financial statements.
4
</TABLE>
Ford Microelectronics, Inc. Salaried Retirement Savings Plan
Notes to Financial Statements
1. Summary of Significant Accounting Policies:
a. Investments: The investment in Ford Company Stock Fund,
the Medium Cap, the 500, and the Bond Index Funds and the
Spectrum of Choice Aggressive Portfolio are valued on the
basis of established year-end quoted market prices.
Investments in the Short-Term Fund are carried at cost, which
approximates fair value, due to the average maturity being
less than 60 days.
b. Contributions: Contributions to the Ford
Microelectronics, Inc. Salaried Retirement Savings Plan (the
"Plan") from employees and from Ford Microelectronics, Inc.
(the "Company") are recorded in the period that payroll
deductions are made from the Plan participants.
c. Other: Purchases and sales of securities are reflected
on a trade-date basis. Gains and losses on sales of
securities are based on average cost.
Dividend income is recorded on the ex-dividend date.
Income from other investments is recorded as earned.
The Plan presents in the Statement of Changes in Net
Assets Available for Plan Benefits the appreciation
(depreciation) in the fair value of its investments which
consists of the realized gains or losses and the unrealized
appreciation (depreciation) on those investments.
d. Use of Estimates: The preparation of financial
statements in conformity with generally accepted accounting
principles requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reported
period. Actual results could differ from those estimates.
2. Description of the Plan:
The Plan became effective September 30, 1994. However, the
Plan did not become operational until January 1, 1995.
The following description of the Plan provides only general
information. The provisions of the Plan are governed in all
respects by the detailed terms and conditions contained in
the Plan itself. Participants should refer to the Plan
agreement for a complete description of the Plan's
provisions.
a. Type and Purpose of the Plan: The Plan is a defined
contribution plan established to encourage and facilitate
systematic savings and investment by eligible salaried
employees and to provide them with an opportunity to become
stockholders of Ford Motor Company ("Ford)".
5
<PAGE>
Notes to Financial Statements, Continued
2. Description of the Plan, continued:
b. Eligibility: With certain exceptions, regular full-time
salaried employees having at least three months of continuous
service are eligible to participate in the contributory
portion of the Plan. All full-time employees are eligible to
participate in the discretionary portion of the Plan.
Participation in the Plan is voluntary.
c. Contributions: Under the Plan and subject to limits
required to be imposed by the Internal Revenue Code,
participants may defer up to 15 percent in pre-tax
contributions and 10 percent in post-tax contributions with a
corresponding matching contribution made to the Plan by the
Company on their behalf. Such contributions are excluded
from the participants' taxable income. The Company match is
at the rate of 100% of the first 3 percent of the
participants' base salaries contributed and at the rate of
$.60 for each dollar of the next 7 percent of participants'
base salaries contributed. All Company matching
contributions are invested in units of the Ford
Common Stock Fund. The Company may also contribute an
additional amount determined at the discretion of the
Company. In 1995, the Company made a discretionary
contribution in the amount of 3 percent for each regular
active employee with covered compensation. Those
contributions were made monthly.
d. Transfer of Assets: Effective April 1995, all assets
belonging to employees of the Company that had been
participating in the Ford Motor Company Savings and Stock
Investment Plan for Salaried Employees were transferred into
the Plan. Net assets of $7,985,895 were transferred into the
Plan.
The Plan permits the participants to transfer assets
among investment elections.
e. Investment Programs and Participation: Participant
contributions are invested in accordance within the
participant's election in one or more of the investment
programs. The types of investment programs, and the number
of participants in each program in December 1995, are as
follows:
Number of
Participants
------------
Ford Company Stock Fund 289
Short-Term Investment Fund 179
Medium Cap Index Fund 96
500 Index Fund 180
Bond Index Fund 81
Spectrum of Choice Aggressive Fund 123
Participants may elect to contribute to a Short-Term Fund.
The Short-Term fund is a short term fixed income fund with an
average maturity between 15 and 60 days. The objective of
the fund is maximization of current income consistent with
maintaining liquidity and preserving capital.
6
<PAGE>
Notes to Financial Statements, Continued
2. Description of the Plan, continued:
e. Investment Programs and Participation, continued:
Investments are made in debt obligations consisting of
repurchase agreements, domestic bank certificates of deposit,
bankers acceptances and commercial paper. The interest rate
paid is variable. The interest income reported on the
Statement of Changes in Net Assets Available for Plan
Benefits, with Fund Information for the Short Term Investment
Fund includes interest related to participants' loan
repayments.
Participants may elect to contribute to a Medium Cap
Index Fund, a commingled index fund. The objective of the
fund is to provide investment results that closely correspond
to the price and yield performance of the publicly traded
common stock of the 400 companies included in the Standard
and Poor's Mid Cap 400 Index. A small portion of the fund is
invested in short-term cash equivalents.
Participants may elect to contribute to a 500 Index
Fund, a commingled index fund. The objective of the fund is
to provide investment results that closely correspond to the
price and yield performance of the publicly traded common
stocks of the 500 corporations included in Standard and
Poor's 500 Index. A small portion of the fund is invested in
short-term cash equivalents.
Participants may elect to contribute to a Bond Index
Fund. The objective of the fund is to provide investment
results that closely correspond to the price and yield
performance of the Lehman Brothers Index. The funds are
invested in a portfolio of fixed income instruments issued by
the U. S. Government, federal agencies, and corporations
that, in the aggregate, typify the securities that are
included in the Lehman Brothers Index. A small portion of
the fund is invested in short-term cash equivalents.
Participants may elect to contribute to a Spectrum of
Choice Aggressive portfolio. The objective of the fund is to
provide longer term higher returns for participants willing
to accept greater risk and short-term fluctuation.
Investments are made in large, medium and small domestic
company stocks, as well as U. S. Government and Corporate
Bonds. A small portion of the fund is invested in short-term
cash equivalents.
Brokerage fees applicable to the above funds are paid
out of the applicable fund. Ford pays all fees associated
with the Ford Company Stock Fund.
7
<PAGE>
Notes to Financial Statements, Continued
2. Description of the Plan, continued:
f. Vesting and Distributions: Employee contributions and
investment earnings are fully vested. Company matching
contributions vest after five years of Plan service. Company
discretionary contributions vest when made. Upon completion
of five years of service, all assets attributable to Company
matching contributions held in participants' accounts are
fully vested and all future contributions vest when made. A
participant becomes fully vested in company matching
contributions automatically upon attainment of normal
retirement age, upon retirement due to disability, upon death
or upon termination of the plan. Participants are entitled
to receive the full amount of vested funds when their
employment is terminated.
3. Forfeitures:
The Plan permits the Company to use the Ford Stock Fund units
forfeited by participants to pay Plan administration expenses
and, to the extent not used to pay such expenses, to reduce
future Company contributions. As of December 31, 1995, units
having a value of $22,310 were forfeited by plan participants
and are available to pay future administrative expenses. To
the extent that forfeited units are not available to pay
administrative expenses, the Company pays such expenses.
4. Asset Value Per Unit:
The numbers of units and the asset value per unit, at
December 31, 1995 are as follows:
Asset
Number of Value
Units Per Unit
---------- -----------
Ford Motor Company Stock Fund 225,630.8124 $ 28.875
Short-Term Investment Fund 1,881,820.0000 1.000
Medium Cap Index Fund 1,865.1961 161.287
500 Index Fund 9,920.5327 253.952
Comerica Spectrum Aggressive Fund 2,776.9868 122.092
Bond Index Fund 1,746.5235 192.960
5. Tax Status:
The Plan has received a favorable determination letter from
the Internal Revenue Service that it is qualified under
section 401 of the Internal Revenue Code and that the related
trust is tax-exempt under Section 501 of the Internal Revenue
Code. Accordingly, the trusts, net investment income is
exempt from income taxes. The Plan sponsors believes that the
Plan, as amended, continues to qualify and to operate as
designed.
8
<PAGE>
6. Plan Termination:
The company, by action of the Board of Directors, may
terminate the Plan at any time. Termination of the Plan would
not affect the rights of a participant as to (a) the
continuance of investment, distribution or withdrawal of the
securities, cash and cash value of the units in the
participants' accounts as of the effective date of such
termination or (b) continuance of vesting of such securities
and cash attributable to company matching contributions or
earnings thereon. There are currently no plans to terminate
the Plan.
7. Other:
The differences between the data shown on pages 3 and 4 of
this report and the 1995 Form 5500 filed with the Department
of Labor are principally attributable to adjustments made by
the plan administrator to conform the plan to the accrual
basis of accounting.
9
<PAGE>
Ford Microelectronics, Inc. Salaried Retirement Savings Plan
Item 27a - Schedule of Assets Held for Investment Purposes
as of December 31, 1995
<TABLE>
<CAPTION>
Description of Investment
Identity of Issuer, Including Maturity Date,
Lessor, Borrower Rate of Interest, Collateral, Current
or Similar Party Par or Maturity Value Cost Value
- ------------------------ ---------------------------------- --------------------- -------------
<S> <C> <C> <C>
Ford Motor Company, Inc.* Ford Motor Company Common Stock, $ 5,599,322 $ 6,515,089
225,631 shares
Comerica Bank Short Term Investment Fund, 1,881,820
shares 1,881,820 1,881,820
Mid Cap 500 Fund, 1,865 shares 281,072 300,832
500 Cap Index Fund, 9,921 share 1,656,856 2,519,339
Spectrum Aggressive Fund, 2,777
shares 310,460 339,048
Bond Index Fund, 1,747 shares 302,907 337,009
Participant loans 6.5% to 9.0% interest rate 417,356 417,356
------------- -----------
Total 10,449,793 12,310,493
============= =============
</TABLE>
Notes: The market value of Ford Motor Company Common Stock is
based upon the closing price reported in the New York Stock
Exchange Composite Transactions listing as of the last trading
day of 1995. Market values also include interest and dividends
receivable.
*Party-in-interest.
10
<PAGE>
Ford Microelectronics, Inc. Salaried Retirement Savings Plan
Item 27d - Schedule of Reportable Transactions
for the year ended December 31, 1995
<TABLE>
<CAPTION>
Current
Identity of Purchase Selling Lease Expenses Cost Value Net Gain
Party Involved Description of Asset Price Price Rental Incurred of Asset of Asset or (Loss)
- --------------- ------------------------ ------------ ----------- ------ -------- ------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
REPORTING
CRITERION I Single transaction in
- ----------- excess of five percent
of current value of
plan assets.
None.
REPORTING
CRITERION II Series of transactions
- ------------ in other than securities
in excess if five percent
of current value of plan
assets.
None.
REPORTING
CRITERION III Series of transactions in
- ------------- securities in excess of
five percent of current
value of plan assets.
Fidelity Short-Term Investment Fund:
58 Purchases $6,528,466 $6,528,466 $6,528,466
83 Sales $4,691,239 $4,691,239
Bond Index Fund:
17 Purchases 365,121 365,121 365,121
9 Sales 51,263 50,924 $ 359
Specturm of Choice
Agressive Fund:
18 Purchases 315,309 315,309 315,309
10 Sales 23,328 21,776 1,552
Medium Cap Index Fund:
27 Purchases 361,561 361,561 361,561
9 Sales 92,996 88,623 4,373
500 Index Fund
28 Purchases 2,206,951 2,206,951 2,206,951
13 Sales 33,570 31,113 2,457
Ford Motor
Company Ford Motor Company
Common Stock:
17 Purchases 2,380,480 2,380,480 2,380,480
3 Sales 695,677 160,991 534,686
REPORTING
CRITERION IV
- ------------ Single transactions with
a nonregulated entity in
excess of five percent
of current value of
plan assets.
None.
11
</TABLE>
Consent of Independent Accountants
Ford Motor Company
The American Road
Dearborn, Michigan
Re: Ford Motor Company Registration Statement
Nos. 33-58785, 33-56785 on Form S-8
We consent to the incorporation by reference in the above
Registration Statements of our report dated June 13, 1996, to the
Board of Directors of Ford Motor Company and Ford Microelectronics, Inc.
with respect to the financial statements of the Ford Microelectronics, Inc.
Salaried Retirement Savings Plan at December 31, 1995 and 1994
and for the year ended December 31, 1995, which is included in
this Annual Report on Form 11-K.
/S/Coopers & Lybrand L.L.P.
400 Renaissance Center
Detroit, Michigan 48243
June 20, 1996
