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Cover and table of contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

☑ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2025

☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from __________ to __________

Commission file number 1-3950

Ford Motor Company

(Exact name of Registrant as specified in its charter)


Delaware		38-0549190
(State of incorporation)		(I.R.S. Employer Identification No.)

One American Road
Dearborn,	Michigan	48126
(Address of principal executive offices)		(Zip code)

313-322-3000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbols	Name of each exchange on which registered
Common Stock, par value $.01 per share	F	New York Stock Exchange
6.200% Notes due June 1, 2059	FPRB	New York Stock Exchange
6.000% Notes due December 1, 2059	FPRC	New York Stock Exchange
6.500% Notes due August 15, 2062	FPRD	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of July 28, 2025, Ford Motor Company had outstanding 3,909,008,221 shares of Common Stock and 70,852,076 shares of Class B Stock.

Exhibit Index begins on page 68

FORD MOTOR COMPANY

QUARTERLY REPORT ON FORM 10-Q

For the Quarter Ended June 30, 2025


	Table of Contents	Page
	Part I - Financial Information
Item 1	Financial Statements	3
	Consolidated Income Statements	3
	Consolidated Statements of Comprehensive Income	3
	Consolidated Balance Sheets	4
	Consolidated Statements of Cash Flows	5
	Consolidated Statements of Equity	6
	Notes to the Financial Statements	7
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
	Recent Developments	34
	Results of Operations	36
	Ford Blue Segment	38
	Ford Model e Segment	39
	Ford Pro Segment	39
	Ford Credit Segment	41
	Corporate Other	44
	Interest on Debt	44
	Taxes	44
	Liquidity and Capital Resources	45
	Credit Ratings	54
	Outlook	55
	Cautionary Note on Forward-Looking Statements	56
	Non-GAAP Financial Measures That Supplement GAAP Measures	58
	Non-GAAP Financial Measure Reconciliations	60
	Supplemental Information	62
	Accounting Standards Issued But Not Yet Adopted	65
Item 3	Quantitative and Qualitative Disclosures About Market Risk	66
Item 4	Controls and Procedures	66

	Part II - Other Information
Item 1	Legal Proceedings	67
Item 5	Other Information	67
Item 6	Exhibits	68
	Signature	69

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements.

FORD MOTOR COMPANY AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(in millions, except per share amounts)


	For the periods ended June 30,
	2024		2025		2024		2025
	Second Quarter				First Half
	(unaudited)
Revenues
Company excluding Ford Credit	$	44,811	$	46,943	$	84,701	$	84,365
Ford Credit	2,997		3,241		5,884		6,478
Total revenues (Note 3)	47,808		50,184		90,585		90,843

Costs and expenses
Cost of sales	40,489		44,245		76,965		79,433
Selling, administrative, and other expenses	2,678		2,706		5,054		5,137
Ford Credit interest, operating, and other expenses	2,758		2,722		5,458		5,443
Total costs and expenses	45,925		49,673		87,477		90,013
Operating income/(loss)	1,883		511		3,108		830
Interest expense on Company debt excluding Ford Credit	270		297		548		585
Other income/(loss), net (Note 4)	628		577		1,126		1,073
Equity in net income/(loss) of affiliated companies	197		(250)		364		(156)
Income/(Loss) before income taxes	2,438		541		4,050		1,162
Provision for/(Benefit from) income taxes	605		570		883		718
Net income/(loss)	1,833		(29)		3,167		444
Less: Income/(Loss) attributable to noncontrolling interests	2		7		4		9
Net income/(loss) attributable to Ford Motor Company	$	1,831	$	(36)	$	3,163	$	435

EARNINGS/(LOSS) PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 6)
Basic income/(loss)	$	0.46	$	(0.01)	$	0.79	$	0.11
Diluted income/(loss)	0.46		(0.01)		0.79		0.11

Weighted-average shares used in computation of earnings/(loss) per share
Basic shares	3,985		3,980		3,982		3,974
Diluted shares	4,022		3,980		4,022		4,018

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)


	For the periods ended June 30,
	2024		2025		2024		2025
	Second Quarter				First Half
	(unaudited)
Net income/(loss)	$	1,833	$	(29)	$	3,167	$	444
Other comprehensive income/(loss), net of tax (Note 16)
Foreign currency translation	(521)		1,272		(635)		1,793
Marketable securities	28		36		20		103
Derivative instruments	43		(410)		248		(539)
Pension and other postretirement benefits	24		17		51		39
Total other comprehensive income/(loss), net of tax	(426)		915		(316)		1,396
Comprehensive income/(loss)	1,407		886		2,851		1,840
Less: Comprehensive income/(loss) attributable to noncontrolling interests	1		6		3		8
Comprehensive income/(loss) attributable to Ford Motor Company	$	1,406	$	880	$	2,848	$	1,832

The accompanying notes are part of the consolidated financial statements.

Item 1. Financial Statements (continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in millions)


	December 31, 2024		June 30, 2025
	(unaudited)
ASSETS
Cash and cash equivalents (Note 7)	$	22,935	$	23,020
Marketable securities (Note 7)	15,413		14,484
Ford Credit finance receivables, net of allowance for credit losses of $247 and $258 (Note 8)	51,850		47,593
Trade and other receivables, less allowances of $84 and $98	14,723		19,709
Inventories (Note 9)	14,951		17,270
Other assets	4,602		4,536
Total current assets	124,474		126,612
Ford Credit finance receivables, net of allowance for credit losses of $617 and $632 (Note 8)	59,786		59,867
Net investment in operating leases	22,947		25,336
Net property	41,928		43,877
Equity in net assets of affiliated companies	6,821		5,038
Deferred income taxes	16,375		17,320
Other assets	12,865		14,675
Total assets	$	285,196	$	292,725

LIABILITIES
Payables	$	24,128	$	27,756
Other liabilities and deferred revenue (Note 10 and Note 18)	27,782		30,360
Debt payable within one year (Note 12)
Company excluding Ford Credit	1,756		3,591
Ford Credit	53,193		53,281

Total current liabilities	106,859		114,988
Other liabilities and deferred revenue (Note 10 and Note 18)	28,832		30,242
Long-term debt (Note 12)
Company excluding Ford Credit	18,898		16,742
Ford Credit	84,675		84,113
Deferred income taxes	1,074		1,559
Total liabilities	240,338		247,644

EQUITY
Common Stock, par value $0.01 per share (4,129 million shares issued of 6 billion authorized)	41		41
Class B Stock, par value $0.01 per share (71 million shares issued of 530 million authorized)	1		1
Capital in excess of par value of stock	23,502		23,715
Retained earnings	33,740		32,352
Accumulated other comprehensive income/(loss) (Note 16)	(9,639)		(8,242)
Treasury stock	(2,810)		(2,810)
Total equity attributable to Ford Motor Company	44,835		45,057
Equity attributable to noncontrolling interests	23		24
Total equity	44,858		45,081
Total liabilities and equity	$	285,196	$	292,725


The following table includes assets to be used to settle liabilities of the consolidated variable interest entities (“VIEs”). These assets and liabilities are included in the consolidated balance sheets above.
	December 31, 2024		June 30, 2025
	(unaudited)
ASSETS
Cash and cash equivalents	$	2,494	$	2,364
Ford Credit finance receivables, net	60,717		55,627
Net investment in operating leases	13,309		12,436
Other assets	34		15
LIABILITIES
Other liabilities and deferred revenue	$	100	$	105
Debt	50,855		47,620

The accompanying notes are part of the consolidated financial statements.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)


	For the periods ended June 30,
	2024		2025
	First Half
	(unaudited)
Cash flows from operating activities
Net income/(loss)	$	3,167	$	444
Depreciation and tooling amortization	3,795		3,747
Other amortization	(772)		(929)
Provision for credit and insurance losses	317		323
Pension and other postretirement employee benefits (“OPEB”) expense/(income) (Note 11)	201		187
Equity method investment (earnings)/losses and impairments in excess of dividends received	(124)		261
Foreign currency adjustments	173		62
Net realized and unrealized (gains)/losses on cash equivalents, marketable securities, and other investments (Note 4)	8		(43)
Stock compensation	275		275
Provision for/(Benefit from) deferred income taxes	206		212
Decrease/(Increase) in finance receivables (wholesale and other)	(1,865)		2,927
Decrease/(Increase) in accounts receivable and other assets	(1,603)		(3,500)
Decrease/(Increase) in inventory	(1,845)		(1,476)
Increase/(Decrease) in accounts payable and accrued and other liabilities	5,269		7,293
Other	(309)		213
Net cash provided by/(used in) operating activities	6,893		9,996

Cash flows from investing activities
Capital spending	(4,194)		(3,906)
Acquisitions of finance receivables and operating leases	(29,542)		(24,438)
Collections of finance receivables and operating leases	22,530		22,542
Purchases of marketable securities and other investments	(6,069)		(4,440)
Sales and maturities of marketable securities and other investments	6,812		5,593
Settlements of derivatives	(237)		(104)
Capital contributions to equity method investments	(1,299)		(138)
Returns of capital from equity method investments (Note 17)	16		1,700
Other	62		180
Net cash provided by/(used in) investing activities	(11,921)		(3,011)

Cash flows from financing activities
Cash payments for dividends and dividend equivalents	(1,925)		(1,793)
Purchases of common stock	(244)		—
Net changes in short-term debt	(1,008)		(1,110)
Proceeds from issuance of long-term debt	28,960		20,469
Payments of long-term debt	(25,145)		(24,828)
Other	(254)		(146)
Net cash provided by/(used in) financing activities	384		(7,408)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(240)		483

Net increase/(decrease) in cash, cash equivalents, and restricted cash	$	(4,884)	$	60

Cash, cash equivalents, and restricted cash at beginning of period (Note 7)	$	25,110	$	23,190
Net increase/(decrease) in cash, cash equivalents, and restricted cash	(4,884)		60
Cash, cash equivalents, and restricted cash at end of period (Note 7)	$	20,226	$	23,250

The accompanying notes are part of the consolidated financial statements.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

(in millions, unaudited)


	Equity Attributable to Ford Motor Company
	Capital Stock		Cap. in Excess of Par Value of Stock		Retained Earnings		Accumulated Other Comprehensive Income/(Loss) (Note 16)		Treasury Stock		Total		Equity Attributable to Non-controlling Interests		Total Equity
Balance at December 31, 2023	$	42	$	23,128	$	31,029	$	(9,042)	$	(2,384)	$	42,773	$	25	$	42,798
Net income/(loss)	—		—		1,332		—		—		1,332		2		1,334
Other comprehensive income/(loss), net	—		—		—		110		—		110		—		110
Common Stock issued (a)	—		(3)		—		—		—		(3)		—		(3)
Treasury stock/other	—		—		—		—		—		—		—		—
Dividends and dividend equivalents declared ($0.33 per share) (b)	—		—		(1,342)		—		—		(1,342)		—		(1,342)
Balance at March 31, 2024	$	42	$	23,125	$	31,019	$	(8,932)	$	(2,384)	$	42,870	$	27	$	42,897
Net income/(loss)	—		—		1,831		—		—		1,831		2		1,833
Other comprehensive income/(loss), net	—		—		—		(425)		—		(425)		(1)		(426)
Common Stock issued (a)	—		145		—		—		—		145		—		145
Treasury stock/other	—		—		—		—		(244)		(244)		—		(244)
Dividends and dividend equivalents declared ($0.15 per share) (b)	—		—		(610)		—		—		(610)		—		(610)
Balance at June 30, 2024	$	42	$	23,270	$	32,240	$	(9,357)	$	(2,628)	$	43,567	$	28	$	43,595







Balance at December 31, 2024	$	42	$	23,502	$	33,740	$	(9,639)	$	(2,810)	$	44,835	$	23	$	44,858
Net income/(loss)	—		—		471		—		—		471		2		473
Other comprehensive income/(loss), net	—		—		—		481		—		481		—		481
Common Stock issued (a)	—		60		—		—		—		60		—		60
Treasury stock/other	—		—		—		—		—		—		—		—
Dividends and dividend equivalents declared ($0.30 per share) (b)	—		—		(1,212)		—		—		(1,212)		—		(1,212)
Balance at March 31, 2025	$	42	$	23,562	$	32,999	$	(9,158)	$	(2,810)	$	44,635	$	25	$	44,660
Net income/(loss)	—		—		(36)		—		—		(36)		7		(29)
Other comprehensive income/(loss), net	—		—		—		916		—		916		(1)		915
Common Stock issued (a)	—		153		—		—		—		153		—		153
Treasury stock/other	—		—		—		—		—		—		—		—
Dividends and dividend equivalents declared ($0.15 per share) (b)	—		—		(611)		—		—		(611)		(7)		(618)
Balance at June 30, 2025	$	42	$	23,715	$	32,352	$	(8,242)	$	(2,810)	$	45,057	$	24	$	45,081

(a)Includes impact of share-based compensation.

(b)Dividends and dividend equivalents declared for Common and Class B Stock. In the first quarter of 2024 and 2025, in addition to a regular dividend of $0.15 per share, we declared a supplemental dividend of $0.18 per share and $0.15 per share, respectively.

The accompanying notes are part of the consolidated financial statements.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

Table of Contents


Footnote		Page
Note 1	Presentation	8
Note 2	New Accounting Standards	8
Note 3	Revenue	9
Note 4	Other Income/(Loss)	11
Note 5	Income Taxes	11
Note 6	Capital Stock and Earnings/(Loss) Per Share	11
Note 7	Cash, Cash Equivalents, and Marketable Securities	12
Note 8	Ford Credit Finance Receivables and Allowance for Credit Losses	14
Note 9	Inventories	18
Note 10	Other Liabilities and Deferred Revenue	18
Note 11	Retirement Benefits	19
Note 12	Debt	20
Note 13	Derivative Financial Instruments and Hedging Activities	21
Note 14	Employee Separation Actions and Exit and Disposal Activities	23
Note 15	Acquisitions and Divestitures	23
Note 16	Accumulated Other Comprehensive Income/(Loss)	24
Note 17	Variable Interest Entities	25
Note 18	Commitments and Contingencies	26
Note 19	Segment Information	29

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1. PRESENTATION

For purposes of this report, “Ford,” the “Company,” “we,” “our,” “us,” or similar references mean Ford Motor Company, our consolidated subsidiaries, and our consolidated VIEs of which we are the primary beneficiary, unless the context requires otherwise. We also make reference to Ford Motor Credit Company LLC, herein referenced to as Ford Credit. Our consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, instructions to the Quarterly Report on Form 10-Q, and Rule 10-01 of Regulation S-X. We reclassified certain prior year amounts in our consolidated financial statements to conform to the current year presentation.

In the opinion of management, these unaudited financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of our results of operations and financial condition for the periods, and at the dates, presented. The results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2024 (“2024 Form 10-K Report”).

NOTE 2. NEW ACCOUNTING STANDARDS

Adoption of New Accounting Standards

Accounting Standards Updates (“ASUs”) adopted during 2025 did not have a material impact to our consolidated financial statements or financial statement disclosures.

Accounting Standards Issued But Not Yet Adopted

ASU 2023-09, Improvements to Income Tax Disclosures. In December 2023, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard to enhance the transparency and decision usefulness of income tax disclosures. The new standard is effective for our 2025 annual financial statements and will be reflected therein, primarily related to the effective tax rate reconciliation and cash paid for income taxes. There will be no impact to our consolidated income statements, balance sheets, or statements of cash flows.

ASU 2024-03, Disaggregation of Income Statement Expenses (“DISE”). In November 2024, the FASB issued a new accounting standard to improve the disclosures about an entity’s expenses and address requests from investors for more detailed information about the types of expenses included in commonly presented expense captions. The new standard is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with retrospective application permitted. We are assessing the effect on our consolidated financial statement disclosures; however, adoption will not impact our consolidated income statements, balance sheets, or statements of cash flows.

All other ASUs issued but not yet adopted were assessed and determined to be not applicable or are not expected to have a material impact on our consolidated financial statements or financial statement disclosures.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3. REVENUE

The following tables disaggregate our revenue by major source for the periods ended June 30 (in millions):


	Second Quarter 2024
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	43,542	$	—	$	43,542
Used vehicles	489		—		489
Services and other revenue (a)	726		42		768
Revenues from sales and services	44,757		42		44,799

Leasing income	54		1,030		1,084
Financing income	—		1,889		1,889
Insurance income	—		36		36
Total revenues	$	44,811	$	2,997	$	47,808

	Second Quarter 2025
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	45,202	$	—	$	45,202
Used vehicles	780		—		780
Services and other revenue (a)	884		19		903
Revenues from sales and services	46,866		19		46,885

Leasing income	77		1,176		1,253
Financing income	—		2,008		2,008
Insurance income	—		38		38
Total revenues	$	46,943	$	3,241	$	50,184

	First Half 2024
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	82,187	$	—	$	82,187
Used vehicles	999		—		999
Services and other revenue (a)	1,414		62		1,476
Revenues from sales and services	84,600		62		84,662

Leasing income	101		2,047		2,148
Financing income	—		3,708		3,708
Insurance income	—		67		67
Total revenues	$	84,701	$	5,884	$	90,585

	First Half 2025
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	81,069	$	—	$	81,069
Used vehicles	1,465		—		1,465
Services and other revenue (a)	1,687		37		1,724
Revenues from sales and services	84,221		37		84,258

Leasing income	144		2,307		2,451
Financing income	—		4,054		4,054
Insurance income	—		80		80
Total revenues	$	84,365	$	6,478	$	90,843

(a)Includes extended service contract revenue.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3. REVENUE (Continued)

The amount of consideration we receive and revenue we recognize on our vehicles, parts, and accessories varies with changes in return rights, marketing incentives we offer to our customers and their customers, and other pricing adjustments. Estimates of marketing incentives and other pricing adjustments are based on our expectation of retail and fleet sales volumes, mix of products to be sold, competitor actions, and incentive programs to be offered. Customer acceptance of products and programs, as well as other market conditions, will impact these estimates. As a result of changes in our estimate of variable consideration (e.g., marketing incentives), we recorded a decrease in revenue of $256 million in the second quarter of 2024 and an increase in revenue of $90 million in the second quarter of 2025 related to revenue recognized in prior periods.

We had a balance of $5.3 billion and $5.8 billion of unearned revenue associated primarily with outstanding extended service contracts reported in Other liabilities and deferred revenue at December 31, 2024 and June 30, 2025, respectively*.* We expect to recognize approximately $1.0 billion of the unearned amount in the remainder of 2025, $1.6 billion in 2026, and $3.2 billion thereafter. We recognized $427 million and $516 million of unearned amounts from prior years as revenue during the second quarter of 2024 and 2025, respectively, and $858 million and $1.0 billion in the first half of 2024 and 2025, respectively.

Amounts paid to dealers to obtain extended service contracts are deferred and recorded as Other assets. Our deferred cost balances were $312 million and $317 million as of December 31, 2024 and June 30, 2025, respectively. We recognized $27 million and $22 million of amortization during the second quarter of 2024 and 2025, respectively, and $53 million and $52 million in the first half of 2024 and 2025, respectively.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 4. OTHER INCOME/(LOSS)

The amounts included in Other income/(loss), net for the periods ended June 30 were as follows (in millions):


	Second Quarter				First Half
	2024		2025		2024		2025
Net periodic pension and OPEB income/(cost), excluding service cost (Note 11)	$	105	$	14	$	81	$	25
Investment-related interest income	367		368		777		719
Interest income/(expense) on income taxes	(9)		1		(23)		(16)
Realized and unrealized gains/(losses) on cash equivalents, marketable securities, and other investments	21		11		(8)		43
Gains/(Losses) on changes in investments in affiliates	17		1		24		8
Royalty income	113		107		237		214
Other	14		75		38		80
Total	$	628	$	577	$	1,126	$	1,073

NOTE 5. INCOME TAXES

For interim tax reporting, we estimate one single effective tax rate for tax jurisdictions not subject to a valuation allowance, which is applied to the year-to-date ordinary income/(loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.

Our effective tax rate for the second quarter and first half of 2025 was 105.4% and 61.8%, respectively. These rates were impacted by a non-cash charge to deferred tax assets in the second quarter of $471 million associated with resolving transfer pricing matters in certain non-U.S. operations.

On July 4, 2025, P.L. 119-21 (otherwise known as the “One Big Beautiful Bill Act”) was signed into law. We are analyzing the provisions within the act; however, we do not expect a material impact on our 2025 consolidated financial statements.

During the third quarter of 2025, we expect to recognize a non-cash charge to deferred tax assets of about $400 million to recognize the impact of tax legislation enacted in Germany on July 18, 2025.

NOTE 6. CAPITAL STOCK AND EARNINGS/(LOSS) PER SHARE

Earnings/(Loss) Per Share Attributable to Ford Motor Company Common and Class B Stock

Basic and diluted earnings/(loss) per share were calculated using the following (in millions):


	Second Quarter				First Half
	2024		2025		2024		2025
Net income/(loss) attributable to Ford Motor Company	$	1,831	$	(36)	$	3,163	$	435

Basic and Diluted Shares
Basic shares (average shares outstanding)	3,985		3,980		3,982		3,974
Net dilutive options, unvested restricted stock units, unvested restricted stock shares, and convertible debt	37		—		40		44
Diluted shares	4,022		3,980		4,022		4,018

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 7. 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, 2024
	Fair Value Level	Company excluding Ford Credit		Ford Credit		Consolidated
Cash and cash equivalents
U.S. government	1	$	1,099	$	854	$	1,953
U.S. government agencies	2	2,529		400		2,929
Non-U.S. government and agencies	2	1,073		370		1,443
Corporate debt	2	659		339		998
Total marketable securities classified as cash equivalents		5,360		1,963		7,323
Cash, time deposits, and money market funds		8,303		7,309		15,612
Total cash and cash equivalents		$	13,663	$	9,272	$	22,935

Marketable securities
U.S. government	1	$	3,530	$	185	$	3,715
U.S. government agencies	2	1,691		—		1,691
Non-U.S. government and agencies	2	2,272		79		2,351
Corporate debt	2	6,676		252		6,928
Equities	1	22		—		22
Other marketable securities	2	516		190		706
Total marketable securities		$	14,707	$	706	$	15,413

Restricted cash		$	120	$	88	$	208

Cash, cash equivalents, and restricted cash - held for sale (Note 15)		$	47	$	—	$	47

		June 30, 2025
	Fair Value Level	Company excluding Ford Credit		Ford Credit		Consolidated
Cash and cash equivalents
U.S. government	1	$	—	$	466	$	466
U.S. government agencies	2	2,297		400		2,697
Non-U.S. government and agencies	2	2,545		443		2,988
Corporate debt	2	785		450		1,235
Total marketable securities classified as cash equivalents		5,627		1,759		7,386
Cash, time deposits, and money market funds		8,924		6,710		15,634
Total cash and cash equivalents		$	14,551	$	8,469	$	23,020

Marketable securities
U.S. government	1	$	3,446	$	231	$	3,677
U.S. government agencies	2	1,427		—		1,427
Non-U.S. government and agencies	2	2,378		86		2,464
Corporate debt	2	5,984		255		6,239
Equities	1	26		—		26
Other marketable securities	2	469		182		651
Total marketable securities		$	13,730	$	754	$	14,484

Restricted cash		$	131	$	99	$	230

Cash, cash equivalents, and restricted cash - held for sale		$	—	$	—	$	—

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 7. 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, 2024
									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
Company excluding Ford Credit
U.S. government	$	3,476	$	1	$	(27)	$	3,450	$	282	$	3,168	$	—
U.S. government agencies	1,755		1		(30)		1,726		697		1,010		19
Non-U.S. government and agencies	2,039		1		(39)		2,001		559		1,429		13
Corporate debt	7,295		35		(21)		7,309		2,272		5,033		4
Other marketable securities	486		3		(1)		488		—		411		77
Total	$	15,051	$	41	$	(118)	$	14,974	$	3,810	$	11,051	$	113

	June 30, 2025
									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
Company excluding Ford Credit
U.S. government	$	3,137	$	17	$	(6)	$	3,148	$	436	$	2,641	$	71
U.S. government agencies	1,997		10		(16)		1,991		696		1,261		34
Non-U.S. government and agencies	1,702		4		(18)		1,688		429		1,206		53
Corporate debt	6,676		64		(3)		6,737		2,100		4,528		109
Other marketable securities	439		3		—		442		72		366		4
Total	$	13,951	$	98	$	(43)	$	14,006	$	3,733	$	10,002	$	271

Sales proceeds and gross realized gains/losses from the sale of AFS securities for the periods ended June 30 were as follows (in millions):


	Second Quarter				First Half
	2024		2025		2024		2025
Company excluding Ford Credit
Sales proceeds	$	2,715	$	992	$	6,434	$	3,441
Gross realized gains	3		4		5		9
Gross realized losses	8		1		16		4

We determine credit losses on AFS debt securities using the specific identification method. During the first half of 2025, 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 on our consolidated statements of cash flows, were as follows (in millions):


	December 31, 2024		June 30, 2025
Cash and cash equivalents	$	22,935	$	23,020
Restricted cash (a)	208		230
Cash, cash equivalents, and restricted cash - held for sale (Note 15)	47		—
Total cash, cash equivalents, and restricted cash	$	23,190	$	23,250

(a)Included in Other assets in the non-current assets section of our consolidated balance sheets.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 8. FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES

Ford Credit manages finance receivables as “consumer” and “non-consumer” portfolios. The receivables are generally secured by the vehicles, inventory, or other property being financed.

Finance receivables are recorded at the time of origination or purchase at fair value and are subsequently reported at amortized cost, net of any allowance for credit losses.

For all finance receivables, Ford Credit defines “past due” as any payment, including principal and interest, that is at least 31 days past the contractual due date.

Ford Credit finance receivables, net were as follows (in millions):


	December 31, 2024		June 30, 2025
Consumer
Retail installment contracts, gross	$	79,459	$	78,542
Finance leases, gross	8,357		9,391
Retail financing, gross	87,816		87,933
Unearned interest supplements	(4,598)		(4,330)
Consumer finance receivables	83,218		83,603
Non-Consumer
Dealer financing	29,282		24,747
Non-Consumer finance receivables	29,282		24,747
Total recorded investment	$	112,500	$	108,350

Recorded investment in finance receivables	$	112,500	$	108,350
Allowance for credit losses	(864)		(890)
Total finance receivables, net	$	111,636	$	107,460

Current portion	$	51,850	$	47,593
Non-current portion	59,786		59,867
Total finance receivables, net	$	111,636	$	107,460

Net finance receivables subject to fair value (a)	$	103,755	$	98,614
Fair value (b)	103,231		98,947

(a)Net finance receivables subject to fair value exclude finance leases.

(b)The fair value of finance receivables is categorized within Level 3 of the fair value hierarchy.

Ford Credit’s finance leases are comprised of sales-type and direct financing leases. Financing revenue from finance leases for the second quarter of 2024 and 2025 was $122 million and $148 million, respectively, and for the first half of 2024 and 2025 was $239 million and $285 million, respectively, and is included in Ford Credit revenues on our consolidated income statements.

At December 31, 2024 and June 30, 2025, accrued interest was $335 million and $291 million, respectively, which we report in Other assets in the current assets section of our consolidated balance sheets.

Included in the recorded investment in finance receivables at December 31, 2024 and June 30, 2025 were consumer receivables of $47.6 billion and $43.0 billion, respectively, and non-consumer receivables of $24.4 billion and $21.9 billion, respectively, (including Ford Blue, Ford Model e, and Ford Pro receivables sold to Ford Credit, which we report in Trade and other receivables) that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements. The receivables are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions; they are not available to pay the other obligations or the claims of Ford Credit’s other creditors. Ford Credit holds the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 8. FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Credit Quality

Consumer Portfolio. Credit quality ratings for consumer receivables are based on aging. Receivables over 60 days past due are in intensified collection status.

The credit quality analysis of consumer receivables at December 31, 2024 and gross charge-offs during the year ended December 31, 2024 were as follows (in millions):


	Amortized Cost Basis by Origination Year
	Prior to 2020		2020		2021		2022		2023		2024		Total		Percent
Consumer
31 - 60 days past due	$	43	$	93	$	104	$	187	$	242	$	203	$	872	1.0	%
Greater than 60 days past due	15		27		35		57		82		59		275		0.4
Total past due	58		120		139		244		324		262		1,147		1.4
Current	788		3,162		5,458		12,275		24,153		36,235		82,071		98.6
Total	$	846	$	3,282	$	5,597	$	12,519	$	24,477	$	36,497	$	83,218	100.0	%

Gross charge-offs	$	46	$	58	$	71	$	152	$	191	$	50	$	568

The credit quality analysis of consumer receivables at June 30, 2025 and gross charge-offs during the first half of 2025 were as follows (in millions):


	Amortized Cost Basis by Origination Year
	Prior to 2021		2021		2022		2023		2024		2025		Total		Percent
Consumer
31 - 60 days past due	$	84	$	79	$	148	$	219	$	233	$	45	$	808	1.0	%
Greater than 60 days past due	30		31		53		76		78		23		291		0.3
Total past due	114		110		201		295		311		68		1,099		1.3
Current	2,268		3,687		9,187		19,846		32,089		15,427		82,504		98.7
Total	$	2,382	$	3,797	$	9,388	$	20,141	$	32,400	$	15,495	$	83,603	100.0	%

Gross charge-offs	$	31	$	30	$	64	$	92	$	92	$	4	$	313

Non-Consumer Portfolio. The credit quality of dealer financing receivables is evaluated based on Ford Credit’s internal dealer risk rating analysis. Ford Credit uses a proprietary model to assign each dealer a risk rating. This model uses historical dealer performance data to identify key factors about a dealer that are considered most significant in predicting a dealer’s ability to meet its financial obligations. Ford Credit also considers numerous other financial and qualitative factors of the dealer’s operations, including capitalization and leverage, liquidity and cash flow, profitability, and credit history with Ford Credit and other creditors.

Dealers are assigned to one of four groups according to risk ratings as follows:

Group I – strong to superior financial metrics;
Group II – fair to favorable financial metrics;
Group III – marginal to weak financial metrics; and
Group IV – poor financial metrics, including dealers classified as uncollectible.

Ford Credit generally suspends credit lines and extends no further funding to dealers classified in Group IV.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 8. FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

The credit quality analysis of dealer financing receivables at December 31, 2024 and gross charge-offs during the year ended December 31, 2024 were as follows (in millions):


	Amortized Cost Basis by Origination Year														Wholesale Loans
	Dealer Loans
	Prior to 2020		2020		2021		2022		2023		2024		Total				Total			Percent
Group I	$	270	$	63	$	97	$	47	$	217	$	245	$	939	$	25,257		$	26,196		89.4	%
Group II	13		—		3		1		28		31		76		2,494			2,570			8.8
Group III	—		—		2		—		1		4		7		462			469			1.6
Group IV	—		—		—		—		—		1		1		46			47			0.2
Total (a)	$	283	$	63	$	102	$	48	$	246	$	281	$	1,023	$	28,259		$	29,282		100.0	%

Gross charge-offs	$	1	$	—	$	—	$	—	$	—	$	—	$	1	$	6		$	7

(a)Total past due dealer financing receivables at December 31, 2024 were $8 million.

The credit quality analysis of dealer financing receivables at June 30, 2025 and gross charge-offs during the first half of 2025 were as follows (in millions):


	Amortized Cost Basis by Origination Year														Wholesale Loans
	Dealer Loans
	Prior to 2021		2021		2022		2023		2024		2025		Total				Total			Percent
Group I	$	315	$	78	$	34	$	196	$	118	$	130	$	871	$	20,047		$	20,918		84.5	%
Group II	24		9		3		35		10		39		120		3,044			3,164			12.8
Group III	1		—		—		—		1		7		9		590			599			2.4
Group IV	—		—		—		—		—		1		1		65			66			0.3
Total (a)	$	340	$	87	$	37	$	231	$	129	$	177	$	1,001	$	23,746		$	24,747		100.0	%

Gross charge-offs	$	—	$	—	$	—	$	3	$	—	$	—	$	3	$	11		$	14

(a)Total past due dealer financing receivables at June 30, 2025 were $4 million.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 8. FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

Allowance for Credit Losses

The allowance for credit losses represents an estimate of the lifetime expected credit losses inherent in finance receivables as of the balance sheet date. The adequacy of the allowance for credit losses is assessed quarterly.

Adjustments to the allowance for credit losses are made by recording charges to Ford Credit interest, operating, and other expenses on our consolidated income statements. The uncollectible portion of a finance receivable is charged to the allowance for credit losses at the earlier of when an account is deemed to be uncollectible or when an account is 120 days delinquent, taking into consideration the financial condition of the customer or borrower, the value of the collateral, recourse to guarantors, and other factors*.*

Charge-offs on finance receivables include uncollected amounts related to principal, interest, late fees, and other allowable charges. Recoveries on finance receivables previously charged off as uncollectible are credited to the allowance for credit losses. In the event Ford Credit repossesses the collateral, the receivable is charged off and the collateral is recorded at its estimated fair value less costs to sell and reported in Other assets on our consolidated balance sheets.

An analysis of the allowance for credit losses related to finance receivables for the periods ended June 30 was as follows (in millions):


	Second Quarter 2024						First Half 2024
	Consumer		Non-Consumer		Total		Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	877	$	3	$	880	$	879	$	3	$	882
Charge-offs	(124)		(7)		(131)		(253)		(7)		(260)
Recoveries	42		—		42		81		3		84
Provision for credit losses	87		8		95		178		5		183
Other (a)	(6)		—		(6)		(9)		—		(9)
Ending balance	$	876	$	4	$	880	$	876	$	4	$	880


	Second Quarter 2025						First Half 2025
	Consumer		Non-Consumer		Total		Consumer		Non-Consumer		Total
Allowance for credit losses
Beginning balance	$	872	$	9	$	881	$	860	$	4	$	864
Charge-offs	(147)		(13)		(160)		(313)		(14)		(327)
Recoveries	45		—		45		85		—		85
Provision for credit losses	105		9		114		240		14		254
Other (a)	10		—		10		13		1		14
Ending balance	$	885	$	5	$	890	$	885	$	5	$	890

(a) Primarily represents amounts related to foreign currency translation adjustments.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 9. INVENTORIES

Inventories were as follows (in millions):


	December 31, 2024		June 30, 2025
Raw materials, work-in-process, and supplies	$	5,394	$	5,865
Finished products	9,557		11,405
Total inventories	$	14,951	$	17,270

Our finished product inventory at June 30, 2025 was higher than at December 31, 2024, reflecting higher in-transit and in-plant inventory.

NOTE 10. OTHER LIABILITIES AND DEFERRED REVENUE

Other liabilities and deferred revenue were as follows (in millions):


	December 31, 2024		June 30, 2025
Current
Dealer and dealers’ customer allowances and claims	$	14,140	$	15,250
Deferred revenue	3,331		4,526
Employee benefit plans	2,457		2,386
Accrued interest	1,346		1,399
Operating lease liabilities	558		584
OPEB (a)	335		339
Pension (a)	215		223
Other (b)	5,400		5,653
Total current other liabilities and deferred revenue	$	27,782	$	30,360

Non-current
Dealer and dealers’ customer allowances and claims	$	9,836	$	11,221
Deferred revenue	4,910		5,090
Pension (a)	4,470		4,149
OPEB (a)	4,080		4,076
Operating lease liabilities	1,782		1,928
Employee benefit plans	806		764
Other (b)	2,948		3,014
Total non-current other liabilities and deferred revenue	$	28,832	$	30,242

(a)Balances at June 30, 2025 reflect pension and OPEB liabilities at December 31, 2024, updated for: service and interest cost; expected return on assets; curtailments, settlements, and associated interim remeasurement (where applicable); separation expense; actual benefit payments; and cash contributions. The discount rate and rate of expected return assumptions are unchanged from year-end 2024. Included in Other assets are pension assets of $4.1 billion and $4.5 billion at December 31, 2024 and June 30, 2025, respectively.

(b)Includes current derivative liabilities of $1.0 billion and $0.7 billion at December 31, 2024 and June 30, 2025, respectively. Includes non-current derivative liabilities of $0.9 billion and $0.7 billion at December 31, 2024 and June 30, 2025, respectively (see Note 13).

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 11. RETIREMENT BENEFITS

Defined Benefit Plans - Expense

The pre-tax net periodic benefit cost/(income) for our defined benefit pension and OPEB plans for the periods ended June 30 were as follows (in millions):


	Second Quarter
	2024						2025
	Pension Benefits				OPEB		Pension Benefits				OPEB
	U.S. Plans		Non-U.S. Plans		Worldwide		U.S. Plans		Non-U.S. Plans		Worldwide
Service cost	$	73	$	61	$	6	$	52	$	50	$	5
Interest cost	401		233		56		393		238		55
Expected return on assets	(455)		(252)		—		(457)		(289)		—
Amortization of prior service costs/(credits)	24		6		3		22		6		2
Net remeasurement (gain)/loss	—		(172)		—		—		—		—
Separation costs/other	1		53		—		5		11		—
Settlements and curtailments	—		(3)		—		—		—		—
Net periodic benefit cost/(income)	$	44	$	(74)	$	65	$	15	$	16	$	62

	First Half
	2024						2025
	Pension Benefits				OPEB		Pension Benefits				OPEB
	U.S. Plans		Non-U.S. Plans		Worldwide		U.S. Plans		Non-U.S. Plans		Worldwide
Service cost	$	146	$	124	$	12	$	104	$	98	$	10
Interest cost	801		468		113		786		462		110
Expected return on assets	(910)		(507)		—		(913)		(567)		—
Amortization of prior service costs/(credits)	47		12		5		44		12		4
Net remeasurement (gain)/loss	—		(183)		—		—		(10)		—
Separation costs/other	9		67		—		12		35		—
Settlements and curtailments	—		(3)		—		—		—		—
Net periodic benefit cost/(income)	$	93	$	(22)	$	130	$	33	$	30	$	124

The service cost component is included in Cost of sales and Selling, administrative, and other expenses. Other components of net periodic benefit cost/(income) are included in Other income/(loss), net on our consolidated income statements.

Pension Plan Contributions

During 2025, we continue to expect to contribute about $800 million of cash to our global funded pension plans. We also expect to make about $450 million of benefit payments to participants in unfunded plans. In the first half of 2025, we contributed $515 million to our global funded pension plans and made $218 million of benefit payments to participants in unfunded plans.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 12. DEBT

The carrying value of Company debt excluding Ford Credit and Ford Credit debt was as follows (in millions):


	December 31, 2024		June 30, 2025
Company excluding Ford Credit
Debt payable within one year
Short-term	$	632	$	913
Long-term debt payable within one year
U.K. Export Finance Program	784		—
Public unsecured debt securities	176		176
Convertible notes (a)	—		2,300
Other debt (including finance leases) (b)	176		208
Unamortized (discount)/premium	(11)		(1)
Unamortized issuance costs	(1)		(5)
Total debt payable within one year	1,756		3,591
Long-term debt payable after one year
Public unsecured debt securities	14,759		14,759
Convertible notes (a)	2,300		—
U.K. Export Finance Program (c)	940		1,028
Other debt (including finance leases) (b)	1,160		1,199
Unamortized (discount)/premium	(109)		(105)
Unamortized issuance costs	(152)		(139)
Total long-term debt payable after one year	18,898		16,742
Total Company excluding Ford Credit	$	20,654	$	20,333
Fair value of Company debt excluding Ford Credit (d)	$	20,178	$	19,659
Ford Credit
Debt payable within one year
Short-term	$	17,413	$	17,039
Long-term payable within one year
Unsecured debt	12,871		14,362
Asset-backed debt	23,050		21,960
Unamortized (discount)/premium	2		—
Unamortized issuance costs	(18)		(21)
Fair value adjustments (e)	(125)		(59)
Total debt payable within one year	53,193		53,281
Long-term debt payable after one year
Unsecured debt	49,607		52,005
Asset-backed debt	36,224		32,615
Unamortized (discount)/premium	(20)		(21)
Unamortized issuance costs	(217)		(214)
Fair value adjustments (e)	(919)		(272)
Total long-term debt payable after one year	84,675		84,113
Total Ford Credit	$	137,868	$	137,394
Fair value of Ford Credit debt (d)	$	140,046	$	139,148

(a)As of June 30, 2025, each $1,000 principal amount of the notes will be convertible into 73.523 shares of our Common Stock, which is equivalent to a conversion price of approximately $13.60 per share. We recognized issuance cost amortization of $2 million during both the second quarter of 2024 and 2025 and $3 million during both the first half of 2024 and 2025.

(b)At December 31, 2024 and June 30, 2025, long-term finance leases payable within one year were $94 million and $119 million, respectively, and long-term finance leases payable after one year were $711 million and $751 million, respectively.

(c)On July 23, 2025, Ford of Britain entered into a £1 billion term loan credit facility. Although not included in the table above, on July 28, 2025, Ford of Britain drew the full £1 billion available under the facility.

(d)At December 31, 2024 and June 30, 2025, the fair value of debt includes $632 million and $913 million of Company excluding Ford Credit short-term debt, respectively, and $16.2 billion and $15.9 billion of Ford Credit short-term debt, respectively, carried at cost, which approximates fair value. All other debt is categorized within Level 2 of the fair value hierarchy.

(e)These adjustments are related to hedging activity and include discontinued hedging relationship adjustments of $(450) million and $(411) million at December 31, 2024 and June 30, 2025, respectively. The carrying value of hedged debt was $41.1 billion and $41.8 billion at December 31, 2024 and June 30, 2025, respectively.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 13. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

In the normal course of business, our operations are exposed to global market risks, including the effect of changes in foreign currency exchange rates, certain commodity prices, and interest rates. To manage these risks, we enter into derivative contracts. We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the hedge period. Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting.

Income Effect of Derivative Financial Instruments

The gains/(losses), by hedge designation, reported in income for the periods ended June 30 were as follows (in millions):


	Second Quarter				First Half
Cash flow hedges	2024		2025		2024		2025
Reclassified from AOCI to Cost of sales
Foreign currency exchange contracts (a)	$	50	$	21	$	64	$	95
Commodity contracts (b)	(3)		(1)		(29)		10
Fair value hedges
Interest rate contracts
Net interest settlements and accruals on hedging instruments	(106)		(44)		(202)		(92)
Fair value changes on hedging instruments	(26)		235		(269)		564
Fair value changes on hedged debt	17		(219)		237		(543)
Cross-currency interest rate swap contracts
Net interest settlements and accruals on hedging instruments	(35)		(18)		(64)		(43)
Fair value changes on hedging instruments	(47)		358		(111)		504
Fair value changes on hedged debt	40		(339)		102		(475)
Derivatives not designated as hedging instruments
Foreign currency exchange contracts (c)	126		(69)		195		(9)
Cross-currency interest rate swap contracts	(30)		246		(196)		348
Interest rate contracts	3		(18)		51		(63)
Commodity contracts	9		11		(11)		22
Total	$	(2)	$	163	$	(233)	$	318

(a)For the second quarter and first half of 2024, a $49 million gain and a $337 million gain, respectively, were reported in Other comprehensive income/(loss), net of tax. For the second quarter and first half of 2025, a $527 million loss and a $605 million loss, respectively, were reported in Other comprehensive income/(loss), net of tax.

(b)For the second quarter and first half of 2024, a $54 million gain and a $22 million gain, respectively, were reported in Other comprehensive income/(loss), net of tax. For the second quarter and first half of 2025, a $12 million gain and an $8 million gain, respectively, were reported in Other comprehensive income/(loss), net of tax.

(c)For the second quarter and first half of 2024, an $81 million gain and a $58 million gain, respectively, were reported in Cost of sales, and a $45 million gain and a $137 million gain, respectively, were reported in Other income/(loss), net. For the second quarter and first half of 2025, a $56 million gain and a $126 million gain, respectively, were reported in Cost of sales, and a $125 million loss and a $135 million loss, respectively, were reported in Other income/(loss), net.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 13. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)

Balance Sheet Effect of Derivative Financial Instruments

Derivative assets and liabilities are reported on our consolidated balance sheets at fair value and are presented on a gross basis. The notional amounts of the derivative instruments do not necessarily represent amounts exchanged by the parties and are not a direct measure of our financial exposure. We also enter into master agreements with counterparties that may allow for netting of exposures in the event of default or breach of the counterparty agreement. Collateral represents cash received or paid under reciprocal arrangements that we have entered into with our derivative counterparties, which we do not use to offset our derivative assets and liabilities.

The fair value of our derivative instruments and the associated notional amounts were as follows (in millions):


	December 31, 2024						June 30, 2025
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Cash flow hedges
Foreign currency exchange contracts	$	20,027	$	578	$	123	$	17,900	$	75	$	245
Commodity contracts	959		22		13		966		19		9
Fair value hedges
Interest rate contracts	16,194		66		645		19,563		457		309
Cross-currency interest rate swap contracts	3,802		9		139		3,802		381		—
Derivatives not designated as hedging instruments
Foreign currency exchange contracts	20,799		301		192		26,220		291		315
Cross-currency interest rate swap contracts	5,455		133		246		5,325		352		49
Interest rate contracts	76,977		305		845		84,941		330		804
Commodity contracts	944		14		31		882		19		20
Total derivative financial instruments, gross (a) (b)	$	145,157	$	1,428	$	2,234	$	159,599	$	1,924	$	1,751

Current portion			$	869	$	1,311			$	544	$	1,017
Non-current portion			559		923				1,380		734
Total derivative financial instruments, gross			$	1,428	$	2,234			$	1,924	$	1,751

(a)At December 31, 2024 and June 30, 2025, we held collateral of $27 million and $38 million, respectively, and we posted collateral of $127 million and $125 million, respectively.

(b)At December 31, 2024 and June 30, 2025, the fair value of assets and liabilities available for counterparty netting was $780 million and $1,067 million, respectively. All derivatives are categorized within Level 2 of the fair value hierarchy.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 14. EMPLOYEE SEPARATION ACTIONS AND EXIT AND DISPOSAL ACTIVITIES

We generally record costs associated with voluntary separations at the time of employee acceptance. We generally record costs associated with involuntary separation programs when management has approved the plan for separation, the affected employees are identified, and it is unlikely that actions required to complete the separation plan will change significantly. Costs associated with benefits that are contingent on the employee continuing to provide service are accrued over the required service period.

Company Excluding Ford Credit

Employee separation actions and exit and disposal activities include employee separation costs, facility and other asset-related charges (e.g., impairment, accelerated depreciation), dealer and supplier payments, other statutory and contractual obligations, and other expenses, which are recorded in Cost of sales and Selling, administrative, and other expenses. Below are actions we have initiated:

In 2021, we ceased vehicle manufacturing in Sanand, India and exited manufacturing operations in Brazil. In 2022, we ceased manufacturing in Chennai, India and ceased production of the Mondeo in Valencia, Spain. We do not expect significant additional costs for these actions; however, the remaining cash outflows are expected to be finalized over several years.

In 2023, we announced our plan to phase-out production of the Focus at our Saarlouis Body and Assembly plant in Germany. We will cease production in 2025, and we plan to repurpose the facility into a technology center, retaining 1,000 positions.

In 2023, 2024, and 2025, we also had separation programs for salaried workers, primarily in Europe, and expect these programs to be substantially complete by the end of 2027. In addition, in 2024, we offered voluntary separation packages to certain members of our hourly workforce in North America, and these programs are substantially complete.

The following table summarizes the activities for the periods ended June 30, which are recorded in Other liabilities and deferred revenue (in millions):


	Second Quarter				First Half
	2024		2025		2024		2025
Beginning balance	$	1,466	$	999	$	1,086	$	1,098
Changes in accruals (a)	195		51		789		98
Payments	(315)		(67)		(503)		(245)
Foreign currency translation and other	(13)		67		(39)		99
Ending balance	$	1,333	$	1,050	$	1,333	$	1,050

(a)Excludes pension costs of $50 million and $11 million in the second quarter of 2024 and 2025, respectively, and $64 million and $35 million in the first half of 2024 and 2025, respectively.

We recorded costs of $853 million and $133 million in the first half of 2024 and 2025, respectively, related to the initiated actions above. We estimate that we will incur about $500 million in total charges in 2025 related to such actions, primarily attributable to employee separations; some charges are related to plans that are subject to negotiations with a works council, union, or other social partner. In addition, we continue to review our global businesses and may take additional restructuring actions where a path to sustained profitability is not feasible.

NOTE 15. ACQUISITIONS AND DIVESTITURES

Ford Motor Company A/S (“Denmark”). In the third quarter of 2024, we entered into an agreement to sell 100% of our equity interest in Denmark. The entity was classified as held for sale in the fourth quarter of 2024 once all criteria were met. Accordingly, as of December 31, 2024, we reported $52 million of held-for-sale assets, including $47 million of cash, and $33 million of held-for-sale liabilities in Other assets and Other liabilities, respectively. We determined the assets held for sale were not impaired. On January 2, 2025, we completed the sale of Denmark. The consideration received approximated the carrying value of Denmark at the time of sale.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 16. ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

The changes in the balances for each component of accumulated other comprehensive income/(loss) attributable to Ford Motor Company for the periods ended June 30 were as follows (in millions):


	Second Quarter				First Half
	2024		2025		2024		2025
Foreign currency translation
Beginning balance	$	(5,557)	$	(6,378)	$	(5,443)	$	(6,899)
Gains/(Losses) on foreign currency translation	(496)		1,229		(614)		1,726
Less: Tax/(Tax benefit) (a)	23		(44)		19		(72)
Net gains/(losses) on foreign currency translation	(519)		1,273		(633)		1,798
(Gains)/Losses reclassified from AOCI to net income (b)	(1)		—		(1)		(4)
Other comprehensive income/(loss), net of tax (c)	(520)		1,273		(634)		1,794
Ending balance	$	(6,077)	$	(5,105)	$	(6,077)	$	(5,105)

Marketable securities
Beginning balance	$	(178)	$	17	$	(170)	$	(50)
Gains/(Losses) on available for sale securities	30		51		15		139
Less: Tax/(Tax benefit)	5		13		3		32
Net gains/(losses) on available for sale securities	25		38		12		107
(Gains)/Losses reclassified from AOCI to net income	5		(3)		11		(5)
Less: Tax/(Tax benefit)	2		(1)		3		(1)
Net (gains)/losses reclassified from AOCI to net income (b)	3		(2)		8		(4)
Other comprehensive income/(loss), net of tax	28		36		20		103
Ending balance	$	(150)	$	53	$	(150)	$	53

Derivative instruments
Beginning balance	$	(126)	$	148	$	(331)	$	277
Gains/(Losses) on derivative instruments	103		(515)		359		(597)
Less: Tax/(Tax benefit)	24		(120)		84		(139)
Net gains/(losses) on derivative instruments	79		(395)		275		(458)
(Gains)/Losses reclassified from AOCI to net income	(47)		(20)		(35)		(105)
Less: Tax/(Tax benefit)	(11)		(5)		(8)		(24)
Net (gains)/losses reclassified from AOCI to net income (d)	(36)		(15)		(27)		(81)
Other comprehensive income/(loss), net of tax	43		(410)		248		(539)
Ending balance	$	(83)	$	(262)	$	(83)	$	(262)

Pension and other postretirement benefits
Beginning balance	$	(3,071)	$	(2,945)	$	(3,098)	$	(2,967)
Amortization and recognition of prior service costs/(credits)	33		30		64		60
Less: Tax/(Tax benefit)	7		8		15		15
Net prior service costs/(credits) reclassified from AOCI to net income	26		22		49		45
Translation impact on non-U.S. plans	(2)		(5)		2		(6)
Other comprehensive income/(loss), net of tax	24		17		51		39
Ending balance	$	(3,047)	$	(2,928)	$	(3,047)	$	(2,928)

Total AOCI ending balance at June 30	$	(9,357)	$	(8,242)	$	(9,357)	$	(8,242)

(a)We do not recognize deferred taxes for a majority of the foreign currency translation gains and losses because we do not anticipate reversal in the foreseeable future. However, we have made elections to tax certain non-U.S. operations simultaneously in U.S. tax returns, and have recorded deferred taxes for temporary differences that will reverse, independent of repatriation plans, in U.S. tax returns. Taxes or tax benefits resulting from foreign currency translation of the temporary differences are recorded in Other comprehensive income/(loss), net of tax.

(b)Reclassified to Other income/(loss), net.

(c)Excludes a $1 million loss related to noncontrolling interests in both 2024 and 2025, respectively.

(d)Reclassified to Cost of sales. During the next twelve months, we expect to reclassify existing net losses on cash flow hedges of $136 million (see Note 13).

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 17. VARIABLE INTEREST ENTITIES

Certain of our affiliates are VIEs in which we are not the primary beneficiary. Our maximum exposure to any potential losses associated with these unconsolidated affiliates is limited to our equity investments, accounts receivable, loans, and guarantees and was $9.3 billion and $7.6 billion at December 31, 2024 and June 30, 2025, respectively. The guarantee exposure is related to certain debt at our unconsolidated affiliates, which includes amounts outstanding as well as potential future draws up to a maximum amount of $4.9 billion at both December 31, 2024 and June 30, 2025, related to certain obligations of our VIEs, and is also included in Note 18.

In July 2022, Ford, SK On Co., Ltd., and SK Battery America, Inc. (a wholly owned subsidiary of SK On) completed the creation of BlueOval SK, LLC (“BOSK”), a 50/50 joint venture that is building and will operate electric vehicle battery plants in Tennessee and Kentucky to supply batteries to Ford and Ford affiliates. BOSK is a VIE of which we are not the primary beneficiary, and we use the equity method of accounting for our investment. In December 2024, BOSK entered into a loan agreement with the United States Department of Energy (“DOE”) of up to $9.6 billion (the “BOSK DOE Loan”). In conjunction with the loan agreement, Ford has agreed to guarantee its 50% share of BOSK’s payment obligations under the BOSK DOE Loan. After drawing on the BOSK DOE Loan, BOSK has distributed $3.1 billion (including $1.7 billion in the first quarter of 2025) to Ford as returns of capital. As of June 30, 2025, Ford has recognized contributions (net of returns of capital) to BOSK of $2.6 billion of its agreed capital contribution of up to $6.6 billion through 2026. The total amount of capital contributions is subject to adjustments agreed to by the parties.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 18. COMMITMENTS AND CONTINGENCIES

Commitments and contingencies primarily consist of guarantees and indemnifications, litigation and claims, and warranty and field service actions.

Guarantees and Indemnifications

Financial Guarantees. Financial guarantees and indemnifications are recorded at fair value at their inception. Subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. The maximum potential payments for financial guarantees were $5.3 billion and $5.4 billion at December 31, 2024 and June 30, 2025, respectively. See Note 17 for additional information. The carrying value of recorded liabilities related to financial guarantees was $144 million and $109 million at December 31, 2024 and June 30, 2025, respectively.

Our financial guarantees consist of debt and lease obligations of certain joint ventures, as well as certain financial obligations of outside third parties, including suppliers, to support our business and economic growth. Expiration dates vary through 2040, and guarantees will terminate on payment and/or cancellation of the underlying obligation. A payment by us would be triggered by failure of the joint venture or other third party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from a third party amounts paid by us under the guarantee.

Non-Financial Guarantees. Non-financial guarantees and indemnifications are recorded at fair value at their inception. We regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the probable amount of payment is recorded. The maximum potential payments and carrying values of recorded liabilities related to non-financial guarantees were de minimis at both December 31, 2024 and June 30, 2025.

In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction, such as the sale of a business. These indemnifications might include and are not limited to claims relating to any of the following: environmental, tax, and shareholder matters; intellectual property rights; power generation contracts; governmental regulations and employment-related matters; dealer, supplier, and other commercial contractual relationships; and financial matters, such as securitizations. Performance under these indemnities generally would be triggered by a breach of contract claim brought by a counterparty, including a joint venture or alliance partner, or a third-party claim. While some of these indemnifications are limited in nature, many of them do not limit potential payment. Therefore, we are unable to estimate a maximum amount of future payments that could result from claims made under these unlimited indemnities.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 18. COMMITMENTS AND CONTINGENCIES (Continued)

Litigation and Claims

Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted against us. These include, but are not limited to, matters arising out of alleged defects in our products; product warranties; governmental regulations relating to safety, emissions, and fuel economy or other matters; government incentives; tax matters, including trade and customs; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer, supplier, and other contractual relationships; intellectual property rights; environmental matters; shareholder or investor matters; and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages that are significant, or demands for field service actions, environmental remediation programs, sanctions, loss of government incentives, assessments, or other relief, which, if granted, would require significant expenditures.

The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate outcome.

We accrue for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood that we will prevail, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time.

For the majority of matters, which generally arise out of alleged defects in our products, we establish an accrual based on our extensive historical experience with similar matters. We do not believe there is a reasonably possible outcome materially in excess of our accrual for these matters. For the remaining matters, where our historical experience with similar matters is of more limited value (i.e., “non-pattern matters”), we evaluate the matters primarily based on the individual facts and circumstances. For non-pattern matters, we evaluate whether there is a reasonable possibility of a material loss in excess of any accrual that can be estimated.

Our estimate of reasonably possible loss in excess of our accruals for all material matters currently reflects indirect tax and regulatory matters, for which we estimate the aggregate risk to be a range of up to about $0.6 billion.

As noted, the litigation process is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance. Our assessments are based on our knowledge and experience, but the ultimate outcome of any matter could require payment substantially in excess of the amount that we have accrued and/or disclosed.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 18. COMMITMENTS AND CONTINGENCIES (Continued)

Warranty and Field Service Actions

We accrue the estimated cost of both base warranty coverages and field service actions at the time of sale. We establish our estimate of base warranty obligations using a patterned estimation model, using historical information regarding the nature, frequency, and average cost of claims for each vehicle line by model year. We establish our estimates of field service action obligations using a patterned estimation model, using historical information regarding the nature, frequency, severity, and average cost of claims for each model year. In addition, from time to time, we issue extended warranties at our expense, the estimated cost of which is accrued at the time of issuance. Warranty and field service action obligations are reported in Other liabilities and deferred revenue. We reevaluate the adequacy of our accruals on a regular basis.

We recognize the benefit from a recovery of the costs associated with our warranty and field service actions when specifics of the recovery have been agreed with our supplier and the amount of recovery is virtually certain. Recoveries are reported in Trade and other receivables, net and Other assets.

The estimate of our future warranty and field service action costs, net of estimated supplier recoveries, for the periods ended June 30 was as follows (in millions):


	First Half
	2024		2025
Beginning balance	$	11,504	$	14,032
Payments made during the period	(2,862)		(2,801)
Changes in accrual related to warranties issued during the period	2,671		3,351
Changes in accrual related to pre-existing warranties	1,438		1,586
Foreign currency translation and other	(198)		69
Ending balance	$	12,553	$	16,237

Changes to our estimated costs are reported as changes in accrual related to pre-existing warranties in the table above, which includes a $571 million charge in the second quarter of 2025 for a field service action related to fuel injectors. In addition, our estimate of reasonably possible costs in excess of our accruals for material field service actions and customer satisfaction actions is a range of up to about $1.7 billion in the aggregate.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 19. SEGMENT INFORMATION

We report segment information consistent with the way our chief operating decision maker (“CODM”), our President and Chief Executive Officer, evaluates the operating results and performance of the Company. Accordingly, we analyze the results of our business through the following segments: Ford Blue, Ford Model e, Ford Pro, and Ford Credit.

Beginning January 1, 2025, the expenses and investments for emerging business initiatives in vehicle-adjacent market segments (previously the Ford Next segment) are reflected in the reportable segments that benefit from those expenses and investments or Corporate Other. Prior period amounts were adjusted retrospectively to reflect the change.

Below is a description of our reportable segments and other activities.

Ford Blue Segment

Ford Blue primarily includes the sale of Ford and Lincoln internal combustion engine (“ICE”) and hybrid vehicles, service parts, accessories, and digital services for retail customers, together with the associated costs of development, manufacture, and distribution of the vehicles, parts, accessories, and services. This segment focuses on developing Ford and Lincoln ICE and hybrid vehicles. Additionally, this segment provides hardware engineering and manufacturing capabilities to Ford Model e and manufactures vehicles on behalf of Ford Pro and, in certain cases, Ford Model e. Ford Blue also includes:

All sales for markets not presently in scope for Ford Model e or Ford Pro (as further described below)
In markets outside of the United States and Canada, sales to commercial, government, and rental customers of ICE and hybrid vehicles not considered core to Ford Pro
Sales of electric vehicles (“EVs”) by our unconsolidated affiliates in China
All sales of vehicles manufactured and sold to other OEMs

Ford Model e Segment

Ford Model e primarily includes the sale of our electric vehicles, service parts, accessories, and digital services for retail customers, together with the associated costs of development, manufacture, and distribution of the vehicles, parts, accessories, and services. This segment focuses on developing EV and digital vehicle technologies, as well as software development. Additionally, this segment provides software and connected vehicle technologies on behalf of the enterprise, and manufactures certain EVs, including for Ford Pro. Ford Model e operates in North America, Europe, and China. Ford Model e also includes EV and related sales not considered core to Ford Pro to commercial, government, and rental customers in Europe, China, and Mexico.

Ford Pro Segment

Ford Pro primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. Included in this segment are sales of all core Ford Pro vehicles, such as Super Duty and the Transit range of vans in North America and Europe and all sales of Ranger in Europe. In the United States and Canada, Ford Pro also includes all vehicle sales to commercial, government, and rental customers. This segment focuses on selling ICE, hybrid, and electric vehicles, and providing digital and physical services to optimize and maintain fleets, including telematics and EV charging solutions. This segment reflects external sales of vehicles produced by Ford Blue and Ford Model e, and the costs (including intersegment markup) associated with acquiring vehicles for sale and providing services are reflected in this segment. Ford Pro operates in North America and Europe.

Ford Credit Segment

The Ford Credit segment is comprised of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 19. SEGMENT INFORMATION (Continued)

Corporate Other

Corporate Other primarily includes corporate governance expenses, past service pension and OPEB income and expense, interest income (excluding Ford Credit interest income and interest earned on our extended service contract portfolio) and gains and losses from our cash, cash equivalents, and marketable securities, and foreign exchange derivatives gains and losses associated with intercompany lending. Corporate governance expenses are primarily administrative, delivering benefit on behalf of the global enterprise, that are not allocated to operating segments. These include expenses related to setting and directing global policy, providing oversight and stewardship, and promoting the Company’s interests. Corporate Other assets include: cash, cash equivalents, and marketable securities; tax-related assets; defined benefit pension plan net assets; and other assets managed centrally.

Interest on Debt

Interest on Debt is presented as a separate reconciling item and consists of interest expense on Company debt excluding Ford Credit.

Special Items

Special Items are presented as a separate reconciling item. They consist of (i) pension and OPEB remeasurement gains and losses, (ii) significant personnel expenses, supplier- and dealer-related costs, and facility-related charges stemming from our efforts to match production capacity and cost structure to market demand and changing model mix, and (iii) other items that we do not generally consider to be indicative of earnings from ongoing operating activities. Our management excludes these items from its review of the results of the operating segments for purposes of measuring segment profitability and allocating resources. We also report these special items separately to help investors track amounts related to these activities and to allow investors analyzing our results to identify certain infrequent significant items that they may wish to exclude when analyzing operating results.

CODM Evaluation of the Business

When we report segment earnings before interest and taxes (“Segment EBIT”) for each of the Ford Blue, Ford Model e, and Ford Pro segments, it consists of the earnings for the particular segment and does not include interest and taxes. Ford Credit segment earnings include interest and exclude taxes (“Segment EBT”). Each segment’s EBIT/EBT also excludes the results reported in Corporate Other and Special Items. For the Ford Blue, Ford Model e, and Ford Pro segments, our CODM reviews Segment EBIT and Segment EBIT margin, as well as market share, revenue, and wholesale volume to evaluate performance and allocate resources, predominately in the budgeting, planning, and forecasting processes. For Segment EBIT, our CODM reviews the year-over-year change in EBIT, sequential change in EBIT, and change in EBIT from internal forecasts/budgets. Revenue and certain of our costs, such as material costs, generally vary directly with changes in volume and mix of vehicles. As a result, our CODM reviews the EBIT impact driven by changes in volume and mix, the EBIT impact driven by changes in exchange, and the EBIT impact driven by changes in net pricing and cost categories at constant volume and mix and/or exchange. For the Ford Credit segment, our CODM reviews Segment EBT to evaluate performance and allocate resources. Expense information is provided to and reviewed by the CODM on a consolidated basis to evaluate cost efficiency and company level performance.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 19. SEGMENT INFORMATION (Continued)

Segment Revenue, Cost, and Asset Principles for Ford Blue, Ford Model e, and Ford Pro

External vehicle and digital services revenue is generally vehicle-specific and included in the segment responsible for the external vehicle sale. A majority of parts and accessories revenue and cost is attributed to customer sales channels or vehicle lines based on recent end-customer sales and is included in the respective segment.

In the normal course of business, Ford Blue, Ford Model e, and Ford Pro transact between segments and cooperate to leverage synergies, including developing and manufacturing vehicles on behalf of another segment. When one segment produces a vehicle that is sold externally by another segment, an intersegment transaction occurs. The producing segment will report intersegment revenue to recoup the costs associated with the unit produced. This includes material cost, labor and overhead (including depreciation and amortization), inbound freight, and an intersegment markup. The intersegment markup amount is set to deliver a competitive return to the producing segment for its manufacturing and distribution service. Costs are reflected in the associated segment externally reporting the vehicle sale, as detailed in the table below:


Income Statement Elements	Examples	Segment Reporting
Costs specific to a particular vehicle	Bill of material cost and initial warranty accrual	Reported in the segment externally selling the vehicle
Costs identifiable by product line	Manufacturing and logistics costs, depreciation & amortization expense, direct research & development costs	Typically identifiable to the product line or production location. Reported in the segment externally selling the vehicle, based on relative volume
Shared costs	Selling, general & administrative expense, and indirect/cross product line research & development costs	Typically shared across all segments, generally based on relative volume. Certain costs clearly linked to a segment are reported in the specific segment
Intersegment markup costs for intersegment vehicle transactions	Contract manufacturing and distribution fees	Reported in the segment externally selling the vehicle, for each applicable vehicle transaction

Assets are reported in each segment, aligned to the appropriate operational responsibility. Manufacturing assets, e.g., our plants and the machinery and equipment therein, are included in our Ford Blue and Ford Model e segments. Manufacturing assets producing only, or primarily, EVs and related components are reflected in Ford Model e. Manufacturing assets that support the production of ICE and hybrid vehicles, including those producing ICE and electric vehicles in the same facility, are included in Ford Blue. Company-owned vendor tooling dedicated to producing EV parts is reported in Ford Model e. Purchased regulatory credit compliance assets are reported in Ford Blue. There are no Ford manufacturing, Company-owned vendor tooling, or regulatory credit compliance assets reported in Ford Pro. Depreciation and amortization expense is reflected on the basis of production volume. Regulatory compliance credit expense is allocated by vehicle line between the Ford Blue and Ford Pro segments. Regardless of the segment reporting the asset, the related expenses are reported in the segment that reports the external vehicle sale.

Equity in net income/(loss) of affiliated companies is included in Income/(Loss) before income taxes, based primarily on which segment the entity supports or has the majority of the entity’s purchases or sales. The table below shows the segment reporting for our most significant unconsolidated entities:


Ford Blue	Ford Model e	Ford Pro
∘ Changan Ford Automobile Corporation, Ltd. (“CAF”)	∘ BlueOval SK, LLC	∘ Ford Otomotiv Sanayi Anonim Sirketi (“Ford Otosan”)
∘ Jiangling Motors Corporation, Ltd. (“JMC”)
∘ AutoAlliance (Thailand) Co., Ltd. (“AAT”)

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 19. SEGMENT INFORMATION (Continued)

Key financial information for the periods ended or at June 30 was as follows (in millions):


	Ford Blue		Ford Model e		Ford Pro		Ford Credit		Unallocated Amounts and Eliminations (a)		Total
Second Quarter 2024
External revenues	$	26,670	$	1,150	$	16,988	$	2,997	$	3	$	47,808
Intersegment revenues (b)	11,306		112		—		—		(11,418)		—
Total revenues	$	37,976	$	1,262	$	16,988	$	2,997	$	(11,415)	$	47,808
Other segment items (c)	36,809		2,412		14,426		2,654
Segment EBIT/EBT	$	1,167	$	(1,150)	$	2,562	$	343			$	2,922
Reconciliation of Segment EBIT/EBT
Unallocated amounts:
Corporate Other											(165)
Interest on debt (excludes $1,897 of Ford Credit interest on debt)											(270)
Special items (d)											(49)
Income/(Loss) before income taxes											$	2,438

Other Segment Disclosures
Depreciation and tooling amortization	$	754	$	152	$	356	$	623	$	29	$	1,914
Investment-related interest income	41		—		13		122		191		367
Equity in net income/(loss) of affiliated companies	95		(20)		111		10		1		197
Cash outflow for capital spending (e)	1,051		973		8		22		46		2,100
Total assets	59,907		16,861		3,287		150,159		46,372		276,586

Second Quarter 2025
External revenues	$	25,784	$	2,357	$	18,797	$	3,241	$	5	$	50,184
Intersegment revenues (b)	13,527		192		—		—		(13,719)		—
Total revenues	$	39,311	$	2,549	$	18,797	$	3,241	$	(13,714)	$	50,184
Other segment items (c)	38,650		3,878		16,479		2,596
Segment EBIT/EBT	$	661	$	(1,329)	$	2,318	$	645			$	2,295
Reconciliation of Segment EBIT/EBT
Unallocated amounts:
Corporate Other											(155)
Interest on debt (excludes $1,759 of Ford Credit interest on debt)											(297)
Special items (f)											(1,302)
Income/(Loss) before income taxes											$	541

Other Segment Disclosures
Depreciation and tooling amortization	$	764	$	154	$	349	$	615	$	17	$	1,899
Investment-related interest income	50		1		15		91		211		368
Equity in net income/(loss) of affiliated companies	52		(17)		96		13		(394)		(250)
Cash outflow for capital spending (e)	1,063		952		16		34		23		2,088
Total assets	64,141		16,304		4,566		157,804		49,910		292,725

Next: Item 1. Financial Statements (Continued)